Habitable units make for long-term tenancies
Bluestone and Hockley Real Estate Services
All renters expect basic levels of livability and habitability in their homes or apartments. It is the challenge and the responsibility of the landlord to address these fundamental needs.
Most of the work that keeps a unit habitable is preventative maintenance. The regular cleaning of gutters coupled with annual roof surveys, the annual servicing of residential furnaces (oil, gas, or electric) and regular property inspections maintains most properties at a very comfortable level. As a property management company Bluestone & Hockley Real Estate Services is committed to meeting habitability standards 24 hours a day 365 days a year. We have on call property managers and property maintenance technicians available to handle almost all emergency challenges. We also have vendors that back us up to meet those needs.
Unfortunately, property managers and owners cannot see everything and rely upon the tenants’ cooperation in reporting problems. Tenants can be hesitant to report ongoing problems because they think they will have to pay for the work or that their rent will be increased in order to cover the cost of repairs.
If you do not inspect your rental units, you will not know what problems might exist. This means that you may not find out there are problems until tenants move out, when your cash flow is at its lowest. In addition, to the usual costs associated with turning over a unit, you will also have to pay for maintenance upgrades. From a cash flow stand point, it is a better strategy to invest the money while the tenant is still in the unit. The tenants will be pleased, and if their home is in good condition, you delay their moving out. For every day they stay and you don’t have to find another tenant, you make more money.
At this point it might be good to review the key habitability issues:
- Plumbing systems must be in good working order. Cold and hot running water to at least 110 degrees Fahrenheit must be available. The drainage must work and connect to a municipal sewer (or septic) system. The water must be potable (i.e. drinking water).
- The heating system must be maintained in good working order and must be capable of heating every room.
- The exterior of the building must have effective waterproofing and afford weather protection. This includes the windows and the doors.
- Electrical systems and lighting must be in good working order and conform to the applicable code at the time of installation.
- Building and grounds must be free of filth, debris, rubbish, rodents and vermin and insect infestations.
- Landlord should supply garbage containers and garbage pickup service if so specified in the rental agreement.
- The floors, walls, ceilings, must be maintained in good repair.
- Ventilating and air conditioning systems and other facilities and appliance must be kept in good repair.
- Working smoke detectors must be provided at the beginning of each tenancy, providing a level of safety from fire hazards.
- Working locks must be provided for all dwelling entrance doors; working window latches for all windows.
- Building codes define the number of windows, electrical outlets and type of construction that is acceptable.
- Local and national codes define the number of people that can live in a unit.
Tenants also have responsibilities:
- They need to use the property they have been rented to in a reasonable manner: no changing of motorcycle oil on the white living room carpet.
- The tenant must keep the space free of accumulated debris, filth, rubbish, garbage, and conditions that may attract rodents and vermin.
- Dispose from the dwelling unit all garbage and waste in a clean and safe manner.
- Be a good housekeeper and clean up the apartment.
- Test the smoke alarms every six months, and replace batteries as necessary. Do not to tamper with or remove operating smoke alarms.
- Not deliberately or negligently destroy or deface any part of the property and not permit any of their guests to do so either.
- Behave as good neighbors and not disturb the peaceful enjoyment of the premises by their neighbors. Most jurisdictions limit the housing to two people per bedroom, but it is best to check locally.
- Occupy the premises as a dwelling unit and not as a business.
You can see it takes cooperation between a landlord and tenants to keep properties in habitable condition. In addition, to the basics, it is critical for a landlord to build a level of confidence and pride into the landlord/tenant relationship. If a renter feels that the landlord is making an effort, they will also have more incentive to make an effort too.
My favorite example occurred in an elevator-served building we manage. When we took over the elevator cab was in good condition. One day someone nicked the vinyl cab covering. Within the next week other visitors picked at it until finally some vandal ripped down a whole sheet of the vinyl. We immediately installed a new covering — in this case a carpeting cover. That was over 12 years ago the new covering is still there and in good condition. In other words, if something is a “little” broken, people will pick at it until it is really broken.
In summary, it is in both the landlord’s and tenant’s interest to keep units habitable, and comfortable to ensure a long-term rental relationship.
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This entry was posted on Sunday, August 1st, 2004 at 12:00 am and is filed under Articles, Investing, Property Management. You can follow any responses to this entry through the RSS 2.0 feed. Both comments and pings are currently closed.
