Tuesday, December 28, 2010

Two Important New Year's Resolution

It is an introspective time of year when many of us review how we have done over the past year and evaluate what we can do to improve in the New Year. Many of us will make resolutions that are quickly abandoned, which is okay if you are one of those people that makes my gym extra crowed during the first few weeks of January. However, some resolutions are worth sticking to.

In no particular order I have two resolutions that I request that all landlords and property management professionals to consider. They are fairly interrelated, so if it makes you feel better you can consider them one resolution.

Resolution No. 1: I will take an active role in forming the laws that regulate the rental industry.

This is not nearly as hard as it sounds, and, like many things, pretty easy once you get started. It is important to be involved at the local(municipal) level, state and federal level. At each level laws and regulations are promulgated that will effect the ease with which you conduct your business and the costs and fees involved. In North Carolina we also have the ability to influence who our judges are too, which may influence how the laws and rules are applied.

Their are two ways to influence legislation. One is time and the other is money. Money is the simplest part. It is worthwhile to contribute to organizations, people and parties that align with your interest and what you are trying to do. Time is a little more difficult to define and can include: working on campaigns; contact your legislator by telephone or in writing about a particular issue or piece of legislation; taking part in public comment periods on legislation or rulemaking; and educating like minded people around you.

But, how do you find out about what is happening? Well, you can start by paying attention. Not just listening to the 6:00 o'clock news, but actually doing your own research. You can set up some RSS feeds on areas you are interested in, if you are technically inclined. You can also take advantage of the various real estate investment and landlording organizations and the many educational opportunities that they offer. This brings me to:

Resolution No. 2: I will increase my knowledge of the laws and rules affecting the landlord-tenant industry.

There are many ways to do this. Unfortunately, I don't think you will be able to go to Barnes and Noble and get a book or magazine that will educate you all that well. So you will have to take a more proactive approach. There are a few vendors such as Lorman and the National Business Institute(NBI) that will from time to time offer relevant seminars.

However, there are several local organizations that offer monthly opportunities for you to increase this knowledge, both through formal presentations and informal discussions with other people who have experience in landlording and real estate investment. I would highly recommend joining the Triangle Real Estate Investors Association (TREIA), the Wake County Apartment Association (I don't think you actually have to own your properties in Wake County), and the Triangle Apartment Association (TAA). Both TREIA and TAA are local affiliates of national organizations and have chapter throughout the state and throughout the country. Both the TAA and TREIA have committees that attempt to engage the legislators and influence the laws that affect your bottoms line. Also, these groups often have sub-groups that will further focus on your areas of interest. I hear you can often even get free legal advice at the meetings. Additionally, the level of sophistication of the members of all of these groups varies from newbies to the more experienced,and you should never feel intimidated about attending.

Happy New Year and Happy Landlording!

Norm Praet, Esq.

Saturday, December 4, 2010

Who Provides North Carolina Smoke and Carbon Monoxide Detectors

The short answer is usually you, the landlord do.

SMOKE DETECTORS

The statute on landlord responsibilities NCGS 42-42
spells out pretty clearly that:

1) It is the landlord's duty to provide operable smoke detectors, either battery‑operated or electrical, having an Underwriters' Laboratories, Inc., listing or other equivalent national testing laboratory approval.

2)The landlord must install the smoke detectors in accordance with either the standards of the National Fire Protection Association or the minimum protection designated in the manufacturer's instructions, which the landlord shall retain or provide as proof of compliance.

3)The landlord shall replace or repair the smoke detectors within 15 days of receipt of notification if the landlord is notified of needed replacement or repairs in writing by the tenant. The landlord shall ensure that a smoke detector is operable and in good repair at the beginning of each tenancy.

4)However, unless the landlord and the tenant have a written agreement to the contrary, the landlord shall place new batteries in a battery‑operated smoke detector at the beginning of a tenancy and the tenant shall replace the batteries as needed during the tenancy.

Carbon Monoxide Detectors:

Carbon Monoxide detector regulations only apply to a dwelling unit having a fossil‑fuel burning heater or appliance, fireplace, or an attached garage. If any of these is present then:

(1) At the beginning of each tenancy the landlord must provide a minimum of one operable carbon monoxide detector per rental unit per level, either battery‑operated or electrical, that is listed by a nationally recognized testing laboratory that is OSHA‑approved to test and certify to American National Standards Institute/Underwriters Laboratories Standards ANSI/UL2034 or ANSI/UL2075.

(2) The landlord shall install the carbon monoxide detectors in accordance with either the standards of the National Fire Protection Association or the minimum protection designated in the manufacturer's instructions, which the landlord shall retain or provide as proof of compliance.

(3) The landlord shall replace or repair the carbon monoxide detectors within 15 days of receipt of notification if the landlord is notified of needed replacement or repairs in writing by the tenant.

(4) Unless the landlord and the tenant have a written agreement to the contrary, the landlord shall place new batteries in a battery‑operated carbon monoxide detector at the beginning of a tenancy, and the tenant shall replace the batteries as needed during the tenancy. Failure of the tenant to replace the batteries as needed shall not be considered as negligence on the part of the tenant or the landlord.

(5) A carbon monoxide detector may be combined with smoke detectors if the combined detector does both of the following: (i) complies with ANSI/UL2034 or ANSI/UL2075 for carbon monoxide alarms and ANSI/UL217 for smoke detectors; and (ii) emits an alarm in a manner that clearly differentiates between detecting the presence of carbon monoxide and the presence of smoke.

Remedies

NCGS 42-44 provides the remedies for violations by the tenant or the landlord and states:

(a) Any right or obligation declared by this Chapter is enforceable by civil action, in addition to other remedies of law and in equity.

(b) If a landlord fails to provide, install, replace, or repair a smoke detector or a carbon monoxide detector within 30 days of having received written notice from the tenant or any agent of State or local government of the landlord's failure to do so, the landlord shall be responsible for an infraction and shall be subject to a fine of not more than two hundred fifty dollars ($250.00) for each violation. A landlord may temporarily disconnect a smoke detector or carbon monoxide detector in a dwelling unit or common area for construction or rehabilitation activities when such activities are likely to activate the smoke detector or carbon monoxide detector or make it inactive.

(c) If a smoke detector or carbon monoxide detector is disabled or damaged, other than through actions of the landlord, the landlord's agents, or acts of God, the tenant shall reimburse the landlord the reasonable and actual cost for repairing or replacing the smoke detector or carbon monoxide detector within 30 days of having received written notice from the landlord or any agent of State or local government of the need for the tenant to make such reimbursement. If the tenant fails to make reimbursement within 30 days, the tenant shall be responsible for an infraction and subject to a fine of not more than one hundred dollars ($100.00) for each violation. The tenant may temporarily disconnect a smoke detector or carbon monoxide detector in a dwelling unit to replace the batteries or when it has been inadvertently activated.

Words of wisdom:

Okay, first off, you should comply with the statute. It is not too expensive, it is the law, it is best for your property, and it is the right thing to do. Should the relationship break down between you and your tenants it is a good idea to have the tenant acknowledge in writing, either on the lease or the move in checklist, that the required smoke and carbon monoxide detectors are present.

Unfortunately this installment was not all that sexy but necessary all the same.

Happy landlording!

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The information you obtain at this site is not, nor is it intended to be, legal advice. You should consult an attorney for individual advice regarding your own situation. Nothing in this blog shall create an attorney-client relationship. The opinions expressed herein are those of the blogger and not of the PRAET LAW FIRM, PLLC.