A recent case out of Scottsdale has sparked national attention—and it’s a cautionary tale for landlords using outdated or illegal lease language. Here’s what happened and why it matters:
What Happened
- A Scottsdale renter left negative reviews online after issues with the condition of his rental condo.
- In response, the property manager fined him $2,000 per review, citing a “non-disparagement clause” in the lease.
- This clause prohibited any reviews rated 3 stars or less, across all platforms.
- The tenant saw a $4,000 charge suddenly appear in his account.
- After media attention, the clause was removed from the lease.
Why It Matters for Landlords
- Consumer Review Fairness Act (2016): It’s illegal to penalize tenants for leaving honest online reviews.
- Legal liability risk: Including unenforceable clauses can open landlords up to state and federal scrutiny.
- Damage to reputation: Attempting to suppress reviews often backfires, especially in the age of social media.
- Tenants are increasingly vocal and protected under federal law.
Takeaway for Arizona Investors
- Ensure your lease language is up-to-date and legally compliant.
- Partner with property managers who know the law and operate with transparency.
- Protect your reputation by delivering real value, not by silencing criticism.