Pass it on . . . Doing Something Good for Newtown

Yesterday, I noticed on my Facebook friend hat Dan Schwartz, a long time lawyer friend in Connecticut had put up a post about collecting some gift cards.  His law firm has employees that live in Newtown, CT and while none were directly affected, clearly all know people who were.  I shared the post on my personal page and put up a little something on the Tanowitz Law Office, P.C. facebook page. 

This morning, Dan posted this on his blog and I thought it worthwhile to post one more thing about this project.  So check it out and pass it on, if you'd like.

Commercial Landlord's Repair Obligations

     Here is an interesting blog post, by my Attorney Joel Sowalsky about commercial landlords and their obligation to repair. Commercial landlords are different than those of residential landlords.  If you are a residential landlord, your tenants cannot waive your obligation to repair and requiring them to do so, violates the consumer protection act.. 

Welcome to Kim Alley, our newest addition to Tanowitz Law!

  This post and announcement is well overdue.  I am pleased to announce that Kimberly Alley joined Tanowitz Law Office, P.C. in August as of counsel.  Kim has been practicing for nearly two decades.  In addition to handling commercial, civil litigation cases, Kim also handles employment matters, both counseling and disputes, personal injury cases and criminal matters.  You can see her full biography on our website.

    

Hurricane Sandy and Repairs

     Massachusetts came through Hurricane Sandy relatively unscathed in comparison to New York and New Jersey.  However, many people have sustained damage and need repairs.  Contractors in Massachusetts who are performing renovations on one to four family homes must be registered with the Office of Consumer Affairs under Mass.Gen.L. ch. 142A  In a post I wrote earlier this year, I discussed how to select a contractor.  As I detailed there, you should check references, check the Office of Consumer Affairs website and the Department of Public Safety for the contractor's licenses.  The law requires that contractors follow a number of rules regarding payment, requirements in your contract and that the work must be performed according to the Massachusetts Building Code.

    Once you find a contractor you want to hire, make sure that your contract clearly states the work to be performed, the materials to be used, the payment schedule and provisions for termination.  You should seriously consider having a lawyer take a look at the contract.  While it will cost you money up front, the cost of a few hours of a lawyer's time to review the contract up front is very small in comparison to what you will spend if you have to litigate the matter.

   

How to Be a Good Renter

Boston.com posted another interesting article last week about what landlords should look for in a tenant and how to be a good renter.  The article, posted by Rona Fischman, gives an insider's perspective on what landlords like and how renters, in a very competitive market, can differentiate themselves from competitors.

What landlords should look for in a tenant and how to be a good renter - Boston.com

Our firm is hosting a free seminar on Wednesday, July 25th at 7:00 p.m. to discuss these and other tips and tricks for the landlord.  Please join us!  The link to our event site is below.  We hope to see you there.

Tanowitz Law Seminar: Landlord Missteps That Will Cost You Money

Can a Landlord charge an Application Fee?

We had a full house for our seminar for residential landlords last night. One of the people attending asked me if she could charge an application fee. My instinct said no, but I promised her I'd look into it. And so I did and I stand by my initial statement. A landlord cannot collect a fee for an application or a credit check. Section 15B of Chapter 186 provides that a landlord can only collect the first and last months' rent, a security deposit and a fee to change the lock. No other fees are permissible. You cannot disguise the fee by calling it a credit fee or anything else. When you need to rent a unit, make sure you factor in the cost to find tenants as you set the rent.

Residential Landlord Seminar Tonight

Do not forget we are offering a FREE seminar on how to navigate the perils of the landlord/tenant relationship in Massachusetts tonight at 7:00 p.m.  We still have a few spots left, so please sign up and join us!

Be A Smart Residential Landlord: How to Make Money and Avoid Legal Trouble

Amenity Use Fees - Hermida v. Archstone

A Massachusetts federal court recently came down with an important and interesting ruling regarding security deposits and fees that can be taken by a landlord prior to the commencement of a tenancy.  Under the Massachusetts SecurityDeposit Statute, landlords are restricted as to how much they can charge a new tenant for upfront fees, including first and last months’ rent, security deposit, and fees for changing locks; but what about fees for the use of community amenities such as pools and gyms?

According to the recent Massachusetts federal case of Hermida v. Archstone, Judge William Young upheld the strict interpretation of the Massachusetts Security Deposit Statute and held that “amenity use fees” collected prior to the commencement of a lease are illegal under the Statute.  In the Hermida case, the Hermidas were prospective tenants of Archstone Reading and were charged a one-time $475 amenity use fee prior to the start of their lease.  The Security Deposit Statute states that the landlord may not “require a tenant or prospective tenant to pay any amount in excess of” first and last months’ rent, a security deposit equal to the first month’s rent, and a fee for changing the locks.  The parties differed on the interpretation of that language.  The Hermidas contended that Archstone was prohibited from charging a fee that is not specifically enumerated under the Statute; however Archstone argued that the statutory language lists “calculable components which, summed all together, result in total maximum amount a landlord can charge at the inception of the tenancy.”  The court took a strict interpretation of the statute and disagreed with Archstone.  The court interpreted the statutory language as “prohibiting the landlord from charging a prospective tenant any amount for any purpose other than those listed, and in excess of the amount of each provision.”  In short, the amenity use fee was not explicitly allowed by the Statute, and thus violated the Security Deposit Statute.

It is important to note that the Hermida case focused solely on fees that may be charged by a landlord prior to the commencement of the lease.  Judge Young explicitly noted that the court would not determine the validity of any fees charged during or after the tenancy at this juncture.

The Security Deposit Statute is designed to protect both sides of the landlord-tenant relationship, so landlords and tenants alike should take this opportunity to clarify their rights under the Statute.  Landlords should review the up-front fees they typically charge to comply with court’s recent hardline decision; and tenants should be sure they understand each fee that the landlord is charging at the commencement of the lease and how it fits into Security Deposit Statute.

We will be discussing this important issue as well as other significant issues surrounding the practice of being a landlord in Massachusetts during our upcoming free seminar.  Please join us:  Be A Smart Residential Landlord

First of the Two-Part Discussion on Massachusetts Landlord-Tenant Law

Boston.com posted the first of a two-part discussion with Attorney Richard D. Vetstein today on minefields currently present in Massachusetts landlord-tenant law.  Attorney Vetstein takes a quick look at some of the more troublesome areas of the law for landlords and the penalties associated with each. 

Attorney Vetstein's discussion aptly points out the laws associated with rental property in Massachusetts are replete with ways for the average landlord to get in a whole host of trouble.  Click the link below for the full story:  
The time has come for landlord-tenant legal reform - Boston.com

Our firm is hosting a free seminar on Wednesday, June 13th at 7:00 p.m. to discuss these very issues.  Please join us to learn more about how landlords can navigate these laws and stay out of trouble.  The link to our event site is below.  We hope to see you there.
Be A Smart Residential Landlord: How to Make Money and Avoid Legal Trouble

Paying the Contractor and the Law

When you decide to hire a home improvement contractor, of course, he or she needs to get paid.  Massachusetts law Chapter 142A says several things about payment:

1.  A contractor cannot ask for more than 1/3 up front, unless there are special order items involved;
2.  A contractor cannot demand final payment until the project is completed to the mutual satisfaction of the parties;
3.  The contract must be in writing if it is in excess of $1,000 and must state the total amount agreed to be paid for the work performed; and
4. The contract must list a schedule of payments.

When you decide to undertake a home improvement project, make sure that your payment schedule is clear.  It may be a good idea to tie payments to completion milestones, such as when the framing is done or the floors installed.  Payments tied to a percentage completion can be murky and subject to disagreement. 

Make sure you are comfortable with the payment terms before you sign on the dotted line.

10 Years and Counting . . .

Ten years ago today, Tanowitz Law Office, was born.  In the past decade, the firm has grown from one person to three and we have moved offices 3 times.  Then years ago, I had a three year old and a three month old.  Now I have -- gasp -- a thirteen year old, a ten year old and as a bonus a nearly eight year old.  We look forward to many more years of helping people in the areas of home improvement disputes, landlord tenant issues, commercial collections and general business litigation.

How to Pick the Right Home Improvement Contractor

While winter is still upon us (despite the mild weather), now is the time when many people are planning a warm weather renovation.  If you fall into this category, before you hire a home improvement contractor, here are some things to think about before you sign on the dotted line.

• First, ask friends, family, colleagues, and neighbors for referrals. Receiving a referral from someone you know is often the best way to find the best person to do the job.
• Once you receive the referrals do not accept them without doing your own homework.  If your neighbor needed her half-bath redone and you want to add a huge addition, her contractor may not be the right one for you.  Some contractors specialize and you don't want to hire a kitchen and bath person if you plan on gutting the interior of your home.
• Don't just ask for references from the contractor. Rather, ask the contractor for the names of the last 3 projects he has completed or is presently working on. Also, ask to visit one or more of his current work sites. 
• Make sure your contractor is registered and licensed as a construction supervisor. A construction supervisor is licensed by the state and is required to take an examination.  Making sure your contractor is a registered HIC is the first step to being able to collect from a guaranty fund set up by the Commonwealth.  
• Make sure your contractor has insurance—worker’s compensation and comprehensive general liability for certain and errors and omissions if your contractor can find such a policy.  You may want to consider finding out whether you can purchase a rider to your own policy for a nominal cost. That way, if something goes wrong you will at least be reimbursed. The insurance companies can then fight out who ultimately pays the claim, not you.
• Seriously consider having a lawyer draft or review a contract for you.  There are many provisions which should be included and others which must be included as a matter of law.  

You can hear me talk more about hiring a home improvement contractor on March 29 at 7 pm at my office.  You can sign up here:  http://www.eventbrite.com/myevent?eid=2943609415

The Today Show on Renting

This morning the Today Show had a segment on renting property.  You can watch the segment at this link: 
  http://video.today.msnbc.msn.com/today/46219482 .  Barbara Corcoran has a lot of good advice, however, I question whether one should pay 6 months of rent in advance. In Massachusetts, it is not even clear to me that a tenant could do such a thing, even if it was completely voluntary.  In any event, paying in advance poses risks for both the landlord and the tenant.  When the tenant, pays in advance, he or she loses her leverage to withhold rent or to even threaten to withhold rent if something serious does go wrong.  Second, a landlord is only entitled to collect rent on the due date for the month it is due.  Even if a tenant voluntarily pays, the tenant could change his or her story and say that the 6 month payment was compulsory.  For those reasons, I'd say its not worth it to consider advance payments.

Second, in Massachusetts, every landlord must provide a written statement of condition for the tenant to fill out.  The tenant absolutely needs to point out what is wrong with the apartment when they move in so it can be fixed and so he or she is not charged for it on the way out.  On the flip side, if the landlord does not obtain that signed, written statement of condition, they are going to have a very difficult time deducting the damage from any security deposit at the end of the tenancy. 

The Importance of Lead Paint Disclosure

The U.S. Environmental Protection Agency (EPA) recently fined three Massachusetts property management companies for their failure to disclosure the presence of lead paint in 11 rental units. All together, the three companies agreed to pay $16,000 to resolve claims by the EPA that they violated the federal lead paint disclosure law. It is common knowledge these days that lead-based paint is a hazard, but few landlords know their responsibilities under the law regarding how to handle rental units that still possess lead paint. Moreover, landlords are not the only ones who need to be aware of their legal responsibilities – the federal lead paint disclosure law applies to property owners, property managers, and real estate agents alike.

Under Massachusetts law, landlords also have responsibilities regarding lead paint. In short, the existence of lead paint in a residential unit is a violation of the State Sanitary Code, though the landlord may delay a full de-leading under specific circumstances laid out by statute. A Massachusetts landlord is also required to supply prospective tenants with documents notifying the tenant of the presence of lead paint. Failure to comply with the lead paint statutes and regulations can subject the landlord to damages, and landlords who willfully fail to take action after notification of the presence of lead paint are liable for treble damages.

As the recent EPA fines prove, if you are a landlord, real estate agent, or anyone else who regularly deals with property management, you must know your responsibilities under the law, or suffer costly consequences.

Speaking Event: Be A Smart Residential Landlord

For 2012, I'll be speaking about one topic or another relating to my practice areas.  The first one is scheduled for February 15, 2012 at my office and the subject is "Be a Smart Residential Landlord:  How to Make Money and Stay Out of Trouble."

I'll be speaking about the various statutes and regulations that come into play when you are a residential landlord, and what you need to do legally and practically to, as the name states, stay out of trouble and make some money. 

Please join me for this free event.  My office is small so space is limited.  Please click the link below to sign up on eventbrite.

http://tinyurl.com/7d5nt56