If you're dealing with a larger property manager, they might. If you're dealing with a small-time landlord, it may be difficult for them to deal with the legal fees to get to that point. I'm guessing most would just eat the cost - once.

In either case the leases and the vetting process become that much worse for everyone else. Maybe the landlord starts doing random inspections to check for this. Basically everyone else's life gets a little worse. Tragedy of the commons, this is why we can't have nice things, etc etc.