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3rd floor tenant use

Our Property is a split home. Built in 1908 and located in Rochester NY. It does not have ire escapes. My question. Are tenants allowed to sleep on the third floor? it has finished rooms with large windows that were designed to provide a 2nd egress. Is there any specific laws to govern this situation?
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To my knowledge NY state itself does not regulate as far as fire escapes unless you are in Manhattan.  You can always have store able fire escape ladders, and smoke detectors are the mandatory practice.
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