THE BASICS OF LANDLORD TENANT LAW Presented by: Daniel G. Vitek, Esquire Senior Housing Attorney Neighborhood Legal Services Association 928 Penn Avenue Pittsburgh, PA 15222 Today’s Agenda 1 • What Laws Apply and When? 2 • The Lease and its Terms. 3 • Security Deposits 4 • Recovery of the Property (The Eviction Process) What are we talking about when we talk about Landlord Tenant Law? • Landlord Tenant Law is the specific rules and requirements that govern the landlord’s relationship with it’s tenant. • To apply, there must be a “Landlord Tenant” relationship between the owner and the occupier of the real estate. • If a landlord tenant relationship does not exist, then the rules and requirements under Landlord Tenant Law do not apply. A “Landlord Tenant” relationship Defined: • No specific definition or action triggers a “landlord tenant” relationship. • Must consider the circumstances: – Lease: written or oral; implied or expressed – Payment of Rent – Exclusiveness of the residence – Services provided Side Note: What is NOT a “Landlord Tenant” Relationship? Land-Sale Contracts Guests (i.e. family members who don’t pay rent) Boarding Houses/Inns/Nursing Homes – Courts will look at the circumstances, not the language used by the owner to define the housing situation What Laws Apply to “Landlord Tenant” relationships The State and Federal Constitutions Federal Law State Law Common Law (Court Decisions) Local Government Law (i.e. Municipal Ordinances) The Contract – also known as the LEASE Limited Role of Constitution and Federal Law • The State and Federal Constitutions: – Right to Due Process of Law: no self help evictions – Right to Freedom of Association • Federal Law: – Fair Housing Act and the Americans With Disabilities Act (ADA) – Residential Lead-Based Paint Hazard Reduction Act State and Local Laws play a more active role • State Law – Landlord Tenant Act of 1951 (68 P.S. § 250.101 et seq.) – General Consumer Protection Statutes • Plain Language Act • Fair Credit Extension Uniformity Act • Unfair Trade Practices and Consumer Protection Act – Pennsylvania Human Relations Action • Local Laws – Tenant registration requirements – Zoning and Building Code enforcement – Nuisance tenant laws Common Law (Court Decisions related to Landlord Tenant Issues) i.e.: Pugh v. Holmes, 384 A.2d 1234 (1978) – Created an Implied Warranty of Habitability for all residential rental agreements – Landlord Tenant relationship to be viewed as a consumer contract, rather than a real estate transaction. The LEASE Contract between the parties that establishes the rights and responsibilities of the parties Look to the lease to define the rights and responsibilities that are not defined by the other sources of law What makes a LEASE • Parties must have “expressed” or “implied” agreement to rent property – “Whether a lease has been created is a question of law for the court’s determination” Mirizio v Joseph, 4 A.3d 1073 (Pa.Super. 2010) • The Parties must have the capacity to enter into a contract – Pennsylvania requires a person to be at least 18 years old) • A lease may be written or oral Oral LEASES • The law will impose certain requirements on an oral lease – Cannot be over 3 years – Cannot waive requirement to give notice to quit • When other terms are unclear, the law will look to the actions of the parties to define the rights/responsibilities of the parties – i.e. term of the lease, amount of rent, utility services, number of occupants Written LEASES • Clearly define the terms of the tenancy – i.e. describe the property to be rented, including access to common areas like a basement or garage • Use plain language – The Pennsylvania Plain Language Act: must use short words, sentences, and paragraphs; not technical, legal or archaic terms • Examples: responsible person signing below v. v. liable undersigned • Have both Parties sign the agreement – Provide a copy to the tenant/keep a copy for yourself Written LEASES • Many form leases can be found in use and online – Be careful the lease is drafted to your specific needs and situation and is consistent with Pennsylvania law – Make sure it conforms to the Plain Language Act • The Pennsylvania Attorney General’s Office will review your lease and approve it’s language as being in compliance with the Plain Language Act Written LEASES Side Note on changing terms of a lease – Have the tenant initial any changes or hand written additions to the lease – After a lease is executed, there must be additional consideration for any changes to the lease during the term of the lease – Provide written notice well in advance of the end of the lease term of any changes taking affect after the lease term is over LEASE Terms Length of the Lease Important to define a set period of time Commonly month-to-month or year long terms Define what happens at the end of the lease period Does the lease automatically renew for the same period, change to month-to-month? Allows a landlord to end the lease without needing a reason Can be helpful if tenant’s activities are hard to prove in court Caution: cannot use as a pretense to evict someone protected by the Fair Housing Act LEASE Terms Rent The amount of rent is a bargained-for exchange between the parties Generally, there is no limit on how much rent may be charged, as long as the parties agree Local rent control ordinances may apply Warning: Fair Housing Act violation if the rent is raised in order to exclude a protected person/family Always state the amount due and when it is due Always state where/how the rent should be paid Note: Good Practice to give receipts and keep excellent records of rent paid Always state that rent is due without demand LEASE Terms Late Fees Must clearly stated in the lease when the charge will apply and how much will apply Don’t use a % fee so that you avoid invoking the laws/regulations that apply to finance charges The amount must be reasonably related to the cost of a missed payment Excessive late fees will be considered a penalty, which is unenforceable under Pennsylvania contract law The Charge must be stated in plain language, avoid using confusing terms (i.e. discount for early payment) LEASE Terms Utilities Lease should specifically define responsibilities for payment Otherwise, law will presume landlord’s responsibility If keeping bill in your name but charging tenant, make sure to provide tenant with an actual copy of the bill Puts tenant on notice of unusually high usage Public Utilities vs Municipal Utilities Public Utilities are regulated by the PUC (also called regulated utilities) Examples: gas, electric, Penn American Water Debt is not lien on real estate Cannot charge tenants more than the rate set by PUC (the tariff), so must create a method of billing that reflects actual usage: can be very complicated if want to individually charge tenants of multi-unit building No Foreign Loads Municipal Utilities are supplied by local Municipal Authorities Debt is a lien on the real estate (even if bill in tenant’s name) No prohibition on how to charge tenants, but should apply the charges fairly LEASE Terms Note on Foreign Loads PUC prohibits foreign loads on any regulated utility Definition: when a tenant’s bill includes usages from another unit or from a common area Examples: hallway light, community laundry machine, basement storage used by landlord If discovered, utility company must put the entire account balance in landlord’s name and keep it in landlord’s name until the foreign load is removed. LEASE Terms Lead Paint Disclosure – Residential Lead-Based Paint Hazard Reduction Act (42 C.S.C. §§ 4851-4856) – Requirements: • Landlord MUST provide tenant with EPA approved pamphlet on lead-based paint – Go to http://www.epa.gov/lead/real-estate-disclosure • Landlord MUST disclose to tenant any known lead-based paint or lead-based paint hazards present in the home • Lease must include a standard warning about dangers of lead-based paint – Applies to any housing constructed prior to 1978 • Includes written or oral leases – Penalty includes up to $10,000.00 civil penalty; HUD can seek injunction against landlord – Lease is no valid until information is provided LEASE Terms Control over the property – Defining who may live in the unit • Put in the lease any limits on who is allowed to live in the unit (i.e. only those approved by landlord and on the lease) • Caution: Fair Housing Act violation if designed to limit families – Accessing the property • General rule: tenant has exclusive possession of the property • If routine inspections are desired, then should clearly state that in the lease • Landlord must provide tenant with reasonable notice prior to entering the residence (reasonable is not defined under the law, I find at least 48 hours) – Unless emergency conditions require immediate access – Excluding particular activity (i.e. running a business) • Must state in the lease that activity is prohibited • No Pet Clauses – Caution: Fair Housing Act violation if pet is necessary to help with tenant’s disability • Any legal activity (i.e. violation of zoning rule or drug dealing) is a violation of the lease under the Landlord Tenant Act (if it’s in the lease or not) LEASE Terms Maintenance of the Property – Responsibility for maintenance and repairs may be bargain for between landlord and tenant – The lease should clearly state any responsibilities that the tenant will have for maintaining the property (i.e. lawn care, snow removal, etc.) • Benefit to landlord of assigning responsibility to tenant is that it may relieve landlord of liability for injury that occurs as a result of a condition on the property that was unknown to landlord. • Problem for landlord is that tenant may not do a good job with the maintenance or repairs – Implied Warranty of Habitability: • Requires landlord to provide tenant with a safe, secure and sanitary home • Cannot be waived by tenant (Fair v. Negley, 390 A.2d 240 (Pa 1978)) Note on Fair Housing Act • Applies to all landlords with more than 3 single family homes or with any multifamily dwelling – Pennsylvania Human Relations Act applies to all rental housing in the state • Prohibits discrimination on the basis of a protected class: – Race, color, religion, sex, national original or disability – Sexual Orientation is a common protected class added by municipal code • • Prohibited Acts: refusing to rent a property, advertising a preference or limitation, creating different terms, conditions or privileges for a tenant Penalty – Tenant may bring lawsuit against landlord for damages and injunctive relief – HUD or PHRC may investigate and enjoin landlord’s behavior • Reasonable Accommodations: – Prohibits denial of a tenant’s request for a reasonable accommodation to the rules that would allow a disabled tenant to take full advantage of his or her housing • • • Request must be reasonably related to the tenant’s disability Request cannot be an undue burden or financial hardship on landlord Tenant’s behavior must not be a direct threat to others Note on Fair Housing Act Example 1 Tenant occupies a one bedroom apartment with her boyfriend. They have a child. The landlord sued to evict the family because the landlord does not want more than 2 people living in the apartment. If the building code does not prohibit occupancy, then landlord may be violating the Fair Housing Act Example 2 Landlord has a no pets policy. Tenant applies and tells the landlord that he has a dog for emotional support. Landlord denies the tenant’s application because he doesn’t want pets in the building. If the tenant has a disability and the dog helps with the disability, then the landlord will need to accommodate the tenant’s pet. Security Deposits Landlord Tenant Act regulates the administration of Security Deposits Must hold Security Deposit in a separate escrow account Maximum Security Deposit: First year: up to 2 months rent Second and subsequent years: only 1 month’s rent Interest: After 2 years, must escrow the security deposit in an interest bearing account Must pay out interest to Tenant each year on the anniversary of the lease Landlord may deduct a fee equivalent of 1% interest Security Deposits Return of the Security Deposit Tenant must provide the landlord with a forwarding address Within 30 days, Landlord must send tenant: 1. 2. the full security deposit; OR an itemized list of the damages for which the Landlord is withholding all or some of the security deposit Failure to comply: If the landlord fails to provide the security deposit or the list of damages, then: Landlord cannot sue tenant for damages Tenant may sue Landlord for DOUBLE the security deposit The Law is unclear if this applies only to physical damage or to unpaid utility bills and rent as well – Be Safe and Send the List! Recovery of Property (Eviction) Grounds to Evict 1. End of Lease Term • • If oral lease, then generally month-to-month Consider any renewal clauses in lease if term has already expired 2. Failure to Rent • Requires a formal demand for rent before bringing suit unless demand for rent is waived by lease 3. Breach of a Term of the Lease • • • Must be a material breach of the lease Look to the defined terms of the lease Implied terms: no disturbing of other tenants/neighbors, no illegal activity (drug activity), no damage to the property Recovery of Property (Eviction) Damages (Request for money) – With a landlord tenant complaint, the landlord can also request compensation for any damages • i.e. unpaid rent, late fees, utility bills and property damage • If tenant has moved out, then the landlord files a standard civil action (different rules of court) – Landlord has a duty to mitigate damages – Landlord cannot charge Tenant for normal “wear and tear” on the property Recovery of Property (Eviction) Procedure Two methods to recover possession: 1. File Landlord Tenant Complaint at the Magisterial District Court where the property is located – Expedited process authorized by the Landlord Tenant Act 2. File an “Ejectment Action” in the Court of Common Pleas – Generally more complicated, may costs more and may take longer to obtain relief Recovery of Property (Eviction) Notice to Quit BEFORE filing a lawsuit, Landlord must provide Tenant with a Notice to Quit Must be in Writing (Make a COPY for your records) Must be clear, explicit and unequivocal Should state the ground(s) for eviction Notice to Quit must be provided: 10 days in advance for failure to pay rent cases 15 days in advance for end of the lease or breach of the lease Notice to Quit must be served personally or posted conspicuously on the residence Posting by first class mail does not meet the requirement! Certified mail, if signed for by tenant, may meet the “in person” requirement The lease can waive the requirement to send a Notice to Quit Since this is a waiver of a tenant right, the lease must comply with the plain language act regarding the clarity of the language Federally Subsidized Housing has special rules for the contents and the delivery of the notice Recovery of Property (Eviction) Procedure at Magisterial District Judge File Complaint Magisterial District Court has standard form to be completed by landlord Magisterial District Court will serve tenant with notice of hearing and complaint Hearing before Magisterial District Judge Scheduled 7 to 15 days after complaint filed If not a lawyer and not the owner, then must have owner complete authorization form in order for third party to represent landlord’s interest in court No default judgments – must attend hearing and prove case Amendments (requests for additional rent) can only be made if tenant attends the hearing Continuances: granted at discretion of the Judge Judgment Issued by Magisterial District Judge Mailed to parties within 3 days of hearing Recovery of Property (Eviction) How to win your case Documents: Lease Rent Ledger Copy of Notice to Quit Photos of any damage Criminal Docket showing conviction for a criminal offense Witnesses! Note on Hearsay: an out of court statement made by someone other than the tenant who is not in court to testify Letters or written complaints from other tenants are hearsay Police Reports are hearsay Recovery of Property (Eviction) The Judgment Possession of the Property: 2 options 1. 2. Straight Possession: no right to cure Pay and Stay: tenant may stop the eviction if he/she pays all the rent that is due and the court costs – The total amount to be paid is only what the court states in the judgment, not any rent coming due thereafter Monetary Damages • Rent Arrears • Other damages (i.e. utilities, property damage) • Court Costs Monthly Rent: set by the Judge • Important in case the tenant files an appeal Recovery of Property (Eviction) Recovery of Property (Eviction) Appeal Process Appeals are made to the Court of Common Pleas Filing Deadline: 10 days from date of judgment to appeal judgment for possession 30 days from the date of judgment to appeal judgment for money only If Tenant appeals, must post bond with the Prothonotary to avoid eviction during the appeal This is known as the supersedeas bond Bond is 3 months of rent or the amount owed, which ever is less, at the time of the appeal and then one month’s rent each month thereafter Low income tenants need only pay 1/3 of a month’s rent at the time of the appeal, then 2/3 of a month’s rent within 20 days, and then one month’s rent each month thereafter If bond is not paid during the appeal, then landlord may file a praecipe with the Prothonotary (Department of Court Records) to terminate the supersedeas bond Recovery of Property (Eviction) Execution of the Possession Judgment After appeal period expires (10 days from the date of the judgment) or after the supersedeas bond is terminated, Landlord may apply for an Order for Possession Must request Order for Possession within 120 days of the judgment Constable will serve tenant with the Order for Possession Tenant will have 10 days to vacate. If Tenant fails to leave, then Landlord may instruct constable to forcibly evict tenant Order for Possession expires 60 days after it is issued Recovery of Property (Eviction) Self-Help Evictions are Illegal Must obtain court order and have officer of the court execute on the order to recover possession of the property Changing the locks, terminating the utilities, or otherwise interfering with the tenant’s use of the residence is illegal • Landlord may be liable for damages under the Pennsylvania Unfair Trade Practices and Consumer Protection Act Recovery of Property (Eviction) Disposition of Personal Property left behind Landlord Tenant Act (68 Pa. Stat. Ann. § 250.505a) requires tenant to remove personal property If tenant does not remove personal property, then landlord must: Send tenant a notice by mail Addressed to the property and any forwarding address Must state: “Personal property remaining at (address) is now considered to have been abandoned. Within ten days of the postmark date of this notice, you must retrieve any items you wish to keep or contact your landlord at (telephone number and address) to request that the property be retained or stored. If requested, storage will be provided for up to thirty days from the postmark date of this notice at a place of your landlord's choosing, and you will be responsible for costs of storage.” Store property for the tenant Tenant has 10 days to respond to landlord that he/she intents to come get personal property Landlord must store personal property up to 30 days Landlord cannot charge tenant for the first 10 days If tenant does not respond or retrieve personal property within the 30 days, then landlord may dispose of the property Landlord’s violation of the act exposes it to treble damages and attorney fees Does not apply when tenant dies Question Time THE END