Powerpoint - Housing Alliance of Pennsylvania

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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
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