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Yep, you can be liable. The fact that you have knowledge of the dog (despite not allowing them), AND it's recent history of aggression pretty much guarantees you would be held liable if an incident occurred and the "victim" pursued legal action. One of the best things you can do as a landlord is require all tenants to carry renters insurance with animal coverage and periodically confirm the policy is current, and that the liability limits are adequate. YMMV...
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