Courts could hold rental company leaders liable for unpaid charges

A court may hold certain LLC members and managers, and corporate directors and officers, personally responsible for qualifying unpaid charges. This applies when an LLC or corporation rents residential property. It covers the listed LLC members and managers, and corporate directors and officers. At least three charges must concern the residential property, and at least three must still be unpaid on the first day of the thirteenth month after the first charge was due. Notice must go to the listed owners and business contacts, and to recorded mortgage holders and other lienholders identified in the landlord’s registration. This notice rule does not apply when the landlord is unregistered in violation of the law. A member of a member-managed LLC must hold at least a 10 percent business interest. A person may avoid liability if the court finds they could not ensure payment and that this removes their blame for the nonpayment. Only charges issued after the act takes effect are covered. The act would take effect immediately.