RENT Magazine Q1'26

WHY THIS MATTERS FOR LANDLORDS AND PROPERTY MANAGERS For landlords and property managers, the key takeaway is that courts are no longer treating this as a small technical mistake. These rulings show that judges view AI hallucinations as a serious misuse of the legal process because it forces courts and opposing parties to spend time and money chasing content that is not real. In landlord tenant disputes, this same issue can arise if AI generated documents misstate tenant protections, incorrectly cite rent control rules, or invent notice requirements. A mistake like that can turn a routine eviction or dispute into a costly setback. Once a document is served to a tenant or submitted to a judge, the landlord is responsible for every word in it. This risk matters because landlords and property managers frequently generate documents that carry legal implications, including: • Lease violation letters • Dispute responses • Vendor or contractor notices Using an open AI tool to create any of these documents may seem harmless, but if the output includes incorrect legal assumptions, outdated citations, misleading interpretations, or fabricated legal language, the liability falls on you, not the AI. Courts have already made their position clear: individuals are responsible for verifying AI-generated content. For landlords, failure to verify AI output could result in:

• Exposure to lawsuits

• Delays in eviction or collections

• Fines for noncompliant documentation

• Reputational damage with tenants, investors, or courts

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