Habitability

What is habitability and why is it so important? Essentially, it is anything that endangers the livability of the property and the health and welfare of the tenants. Many common problems are heat, plumbing, major roof leaks, unsafe electrical, carpeting, stairways, or sidewalks, etc. Very few things can be more costly to an investor than ignoring anything that involves tenant safety.


If a problem exists and the property owner does not provide the maintenance required to solve the problem, they can incur major losses of rents and/or damages. The court has a very dim view of property owners that ignore the safety of their tenants. The court puts the burden of proof on the owner.


In some states the Uniform Residential Landlord and Tenant Act, the URLTA has been passed; a number of states have based their statutory law on this act or the Model Residential Landlord-Tenant Code. Pennsylvania’s law is the Landlord Tenant Act of 1951, however the legal principles of habitability were not well established in the original law. In Pennsylvania, the Supreme Court in the case of Pugh v. Holmes established the rule of “Implied Warranty of Habitability”and over the years, courts have made many habitability rulings based on this case. Interpretations can vary with different judges and in different jurisdictions. Many people are unaware of the existence of this case its impact on tenant relations.

When faced with a difficult case between Landlord and Tenant, a judge will often consult the many points of law before rendering a decision. Important Federal and State Landlord/Tenant Law often stems from these judgments.

Landlord-tenant law in the United States originated from English common law developed within an agricultural society. Habitability stems from this. The basic points are:

▪ Are there any documented code violations
▪ Are there any dangers or hazards in the dwelling
▪ Does the electric and plumbing system
▪ Has the same problem reoccurred numerous times

Unfortunately, many property owners often ignore the potential liabilities of maintenance that involves “habitability.” These actions have lead to major legislation, such as Fair Housing; lead based paint, and mold, which has a far-reaching effect on property owners and tenants.

As professional property managers, we have the expertise to help your investors with these issues. Have your clients contact us so we can assist them with their investment.

Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting BetterByDesignRE.com. Nothing Contained within this post shall constitute the creation of an agency relationship between Better by Design Real Estate, LLC and the reader of this post. An agency relationship shall only be created upon mutual written agreement. The Real Estate Law requires that I provide you with a written consumer notice that describes the various business relationship choices that you may have with a real estate licensee. Since we are discussing real estate without you having the benefit of the Consumer Notice, I have the duty to advise you that any information you give me at this time is not considered to be confidential, and any information you give me will not be considered confidential unless and until you and I enter into a business relationship. At our first meeting I will provide you with a written consumer notice which explains those business relationships and my corresponding duties to you. Nothing contained within this post shall be construed as providing legal advice. Anyone with specific questions regarding legal matters should consult the advice of a licensed attorney.

What Are The Benefits?

Many times owners are hesitant to use property management services because of management fee costs. After quoting our fees to a prospective client, we often hear - “you want that much money for just collecting the rent?” Of course, there is much more to managing rental property than “just collecting the rent,” and we are sure that you realize this as well. Although our management fees show up prominently on our statements, if you look at the complete picture, the fees are absorbed many ways.

Tax Benefits

The most obvious benefit is that all management fees are tax deductible, immediately reducing the full cost of the fees on the bottom line.

Reduced Maintenance Costs

Reduced maintenance costs offset management fees several ways. Because our company handles maintenance on a volume basis, we are generally able to procure reliable vendors at a better rate than many property owners can, particularly if they do not live locally. A savings on a major repair, such as exterior painting or carpet installation, can add up to several monthly management fees.

It is a necessity for us to be current on what labor and maintenance costs should be. For example, if an owner has not shopped for a roof replacement in years, they may be unaware of current prices and newer materials. They could pay more than they should for the job and still not obtain the best workmanship.

Additionally, because we take the “preventative approach” to maintenance, this can mean great savings over time, further reducing both maintenance and management costs.

Professional Expertise

A major benefit to our management services is our professional expertise. It may seem that a vacancy is too long, but we know that the wrong tenant can be a much more expensive experience. Moreover, knowing and implementing current legislation can reduce costly mistakes when handling tenants. There are owners that have paid, literally, millions of dollars because of mold, lead-based paint, and other similar lawsuits. Again, we use a preventative approach to save you unnecessary legal costs.

Peace of Mind

Many owners simply find that just having someone else worry about the many details of handling a tenancy is simply worth the management fee. Reduced stress can only be a major benefit for everyone.

Pass these benefits on to your clients and refer them to us for a successful investment experience.


Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting BetterByDesignRE.com. Nothing Contained within this post shall constitute the creation of an agency relationship between Better by Design Real Estate, LLC and the reader of this post. An agency relationship shall only be created upon mutual written agreement. The Real Estate Law requires that I provide you with a written consumer notice that describes the various business relationship choices that you may have with a real estate licensee. Since we are discussing real estate without you having the benefit of the Consumer Notice, I have the duty to advise you that any information you give me at this time is not considered to be confidential, and any information you give me will not be considered confidential unless and until you and I enter into a business relationship. At our first meeting I will provide you with a written consumer notice which explains those business relationships and my corresponding duties to you. Nothing contained within this post shall be construed as providing legal advice. Anyone with specific questions regarding legal matters should consult the advice of a licensed attorney.

Handling Pets

Many owners are concerned when you mention pets in their property and have difficulty in making decisions in this area. This is a reasonable reaction since there are times when tenants allow their pets to cause considerable damage. However, when facing the issue of pets, investors often need to use a logical approach. Saying “no” to a pet right away can often lead to illegal pets or possibly missing a great tenant.


The Application


Whether or not an owner allows a pet, it is always advisable to have an area for disclosing pets in an application-to-rent. It is important to obtain as much information on the prospective tenant, particularly if you want to determine if they have pets. If another property owner reveals that the applicant has a pet that he or she did not disclose, this is solid ground for refusing the applicant.


Pets Negotiable


When the property is on the market for rent, use the term “pets negotiable.” The problem in stating a definite “no” is the prospective tenant may be the right person for the property. Well-qualified applicants generally extend the care for their pets to caring for the property. It would be better to have them list their pets, examine the information, and then make an informed decision.


Do Pets Work in The Property?


This is a logical step to consider. Obviously, a townhouse with a postage stamp backyard generally is not suitable for a German Shepherd, Springer Spaniel, or a Great Dane. Common sense must prevail when renting the property to someone with a pet or pets. Owners should look at the property objectively and discuss the issues with their property manager on what pets are suitable for the property before putting it on the market.


Avoiding Some Pets


There are pets to avoid and mostly this means “dangerous and destructive.” Examples of pets many people consider dangerous are Pit Bull, Rottweiler, Doberman, snakes, rats, etc. Any animal that is vicious, poisonous, or dangerous, whether large or small, can cause problems. That is not to say that all Pit Bulls, Rottweilers, etc are dangerous these animals can make wonder full pets to the "RIGHT PERSON". Good tenant screening often takes care of this problem. It is a good idea to have a list of unwanted pets that are completely unacceptable. Many insurance companies have a “dangerous pet” list and owners should find out what animals they list that could cause claim problems.


Service Animals are NOT Pets


Under Federal Fair Housing, you cannot charge any amount of deposit for a service animal. This is the most common area where property owners find themselves in trouble because they charge handicapped persons a pet deposit.


We have the expertise to counsel investors in making good decisions on whether to allow pets in their property. Have your clients contact us for Professional Property Management so they can avoid the pitfalls of pets in their property. If they have a positive property management experience, they are more likely to contact you to invest again or sell their property. Don’t wait, call us today.


Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting BetterByDesignRE.com. Nothing Contained within this post shall constitute the creation of an agency relationship between Better by Design Real Estate, LLC and the reader of this post. An agency relationship shall only be created upon mutual written agreement. The Real Estate Law requires that I provide you with a written consumer notice that describes the various business relationship choices that you may have with a real estate licensee. Since we are discussing real estate without you having the benefit of the Consumer Notice, I have the duty to advise you that any information you give me at this time is not considered to be confidential, and any information you give me will not be considered confidential unless and until you and I enter into a business relationship. At our first meeting I will provide you with a written consumer notice which explains those business relationships and my corresponding duties to you. Nothing contained within this post shall be construed as providing legal advice. Anyone with specific questions regarding legal matters should consult the advice of a licensed attorney.