There are probably State laws that apply as well as local ordinances in some cities.Although I'm not 100% sure, I THINK a landlord is required to keep the rental "habitable" which I think includes things like hot water and a heating system but not things like lawn care or air conditioning. 

That is, is the work you are doing just a few punch list items, but the house is essentially habitable and ready for them to move in?

To make it habitable the exterior walls and roof would need to be replaced and a new furnace put in. 

I appreciate all of your input, I don’t believe AC is considered a right of habitability in new jersey and even if I’m being overly sympathetic I can’t see how lacking ac in 60 degree weather would constitute an emergency.

The few that we allow to stay usually have a lot of bad habits that we have to break.For example: currently 1031ing a condo for a tri-pled and a duplex.

I see lots and lots of self managers be soft and waive it and then it becomes a habit on both tenant and landlord side.   

Now if you have some capital saved up and you just throw your money at the problem it will go away but this is not a good habit.

If there is nothing fundamentally wrong... no harm done.

You will become more aware of your spending and saving habits.

However, we wanted to make sure our basement fit these requirements to make it a 3rd bedroom.1.402.1 Habitable Spaces2.403.1 Habitable Spaces3.404.2 min room widths4.404.3 Min ceiling heights5.404.4.5 Other requirements6.404.4 Bedroom and living room requirementsFrom the picturesthe basement window is greater than 44inches from the ground on the inside.