Landlords & Property Managers

Housing Provider Compliance: Nuts and Bolts of Safety

2011-11-07T10:48:00.003-05:00

Housing Provider Compliance: Nuts and Bolts of Safety, Health and Environmental Compliance DHCD Director, John E. Hall, and the Housing Regulation Administration staff would like to invite you to attend a safety, health and environmental discussion on Tuesday, November 8, 2011 from 1:00pm to 4:00pm, at 441 4th Street, NW, Room 1114 South.

Guest speakers will identify best practices in preparing for successful inspections and abating lead base paint and bedbug infestation. They will also identify government programs that provide grants to remediate lead.

The DC Department of Consumer and Regulatory Affairs Director, Nicholas A. Majett will respond to stakeholder questions regarding inspection and compliance procedures. Gerald Brown, Program Director of the Rodent and Vector Control Division of the District of Columbia Department of Health will address housing provider abatement strategies and city initiatives to assist housing providers in abatement of bedbug infestation.

Gian Cossa, Chief of Compliance and Enforcement of the Lead and Healthy Housing Division, District Department of the Environment will discuss the city's lead base paint compliance. Usenobong Bassey and Constance Irvin of the Residential and Community Services Division of the DC Department of Housing and Community Development will provide information on the District of Columbia Lead Safe Washington Program. The program provides grant funds for remediation of lead to all qualified residents before and after citation enforcement.

Anticipated attendees include tenants, landlords, realtors, attorneys and District staff. All are welcome.

If you are able to attend the meeting, please confirm with Ms. Vivian Portis, Outreach Specialist, at (202) 442-7275 or email at vivian.portis@dc.gov.

Tonya M. Butler-Truesdale, Housing Provider Ombudsman Housing Regulation Administration Department of Housing and Community Development
1800 Martin Luther King Jr., Avenue SE
Washington, DC 20020
(202) 442-7214
tonya.butler-truesdale@dc.gov

http://www.dhcd.dc.gov/dhcd/frames.asp?doc=/dhcd/lib/dhcd/pdf/hpo_flyer_final01.pdf

Property Managers: Tips for Improving Your After-Hours Maintenance Hotline

2011-09-09T02:47:00.005-04:00

While it is easy to contact a property management answering service or call center and set up an after-hours maintenance hotline , making sure that it works well for you and your tenants requires a bit more effort. Below are some tips you can follow to make sure you are doing everything you can to get the most out of the service and keep your tenants happy.

1. Personalize the service as much as possible

The default property management script that your call center provider has on file will get the job done, but it’s always better to personalize it to fit your business.

For example, the default way that operators answer the phone may be “Thank you for calling, may I help you?” Instead of leaving this the way it is, modify it to include the name of your property and the purpose of the line, such as “Thank you for calling Forest Pines Condominiums after-hours maintenance hotline, may I help you?” It’s a minor change, but it makes people more comfortable knowing that they’re calling your dedicated line.

Or, for instance, if the hotline will be used for apartments that are all in the same building and have the same address, make sure operators only request the apartment number. It’s annoying being forced to provide your entire address when all that’s needed is the number. This goes for properties in the same City and State, as well. No need to ask questions that you already know the answer to.

2. Clearly communicate to tenants what constitutes an emergency

Your tenants should know what is considered an emergency by your company and what isn’t. Unfortunately, property managers often give criteria to their call center but not tenants, resulting in a lot of heated conversations. Instead of just giving your tenants a number to call after office hours, give them the same list of emergencies that you give your call center and let them know what will result in an after-hours maintenance visit and what will hold for the office.

Alternatively, you can scrap the list of emergencies altogether, instead relying on a question that asks the tenant whether they feel their situation is urgent and requires attention before regular office hours. The potential for abuse here is obvious, but it’s definitely a more customer friendly approach.

Ultimately, only you can decide what is best for your situation, but either approach will work well if everyone is properly educated.

3. Stick to your office hours or prepare your call center to field additional types of calls

Understandably, having the power to forward your lines to the after-hours service whenever you want is sometimes too alluring to pass up. If you’re going to leave the office or stop taking calls during your regular business hours, be sure that your call center is prepared to handle the different types of calls that they will be receiving. It’s bad for business to force callers into a call center that can’t do anything for them and has no information regarding what’s going on in the office. By communicating with your call center and telling them what your schedule is and when you’ll be out, they will have more information to provide callers and be more confident handling your calls. In addition, the scripting and instructions they follow should be appropriate for type of calls they’re taking and what they are telling callers.

As an example, while it’s perfectly acceptable after-hours to tell a caller with a non-urgent concern to call back the next business day, it’s ineffective and confusing to be told that at 1 in the afternoon on a Thursday. Call centers can easily set up variable scripting, so make sure that you have them do so. “The office is out to lunch at the moment, but I can ask someone to return your call when they get back this afternoon” is much more appropriate.

4. Take advantage of the additional services, functionality, and technology that your call center has available

Today’s call centers are more advanced than the simple message taking services that came before them. Sometimes just taking a message and delivering it properly is all that’s needed, but you should look into the additional features and technology that your call center has available in order to determine if there’s more they could be doing for you. If so, there’s a good chance the additional service will improve the effectiveness of your call center and improve the level of customer service they’re able to provide.

Examples of additional services include payment processing, scheduling showings on your behalf, and integrating with your CRM or database in order to look-up tenant information easier and automatically create work tickets in your system. Whether these services make sense for you often depend on your size and the investment needed to have the technology configured. When deciding whether to spend the extra money, be sure to factor in the time it takes you to perform certain tasks, whether the changes will reduce or increase your monthly bill (by increasing or reducing call times), and whether having a more advanced call center will help you decrease vacancies and improve the relationship you have with existing tenants.

I hope these tips make your call center experiences more prosperous. If you’re working with a reputable call center and they’re doing everything they can on their end, following this list should be all you need to make the relationship a success.

If you have any feedback on using an answering service/call center with your property management operation, I’d love to hear from you. Whether your relationship was a success or a complete disaster, I always find it advantageous to speak with people and learn more about what is working and what isn’t.

About the author:

Gere Jordan works in business development, marketing and operations at Continental Message Solution, Inc. (CMS), a nationwide provider of property management answering services and call center outsourcing based in Columbus, Ohio. He has experience designing and implementing effective call center solutions, improving communication workflows, and helping companies share their success via the web. For more information, or to talk shop, you can reach him via email at gere.jordan@continentalmessage.com.

Mold Dangers & Resources

2009-04-13T19:24:00.004-04:00

We've been getting lots of requests for information about molds in apartment units. There are links below that explain the dangers of mold and how to properly, and hopefully, permanently clean it up so that it does not return.

Unfortunately, we are not lawyers and cannot give out legal advice. We encourage everyone to read each lease and all attachments carefully and thoroughly. The signed lease (including any attachments) is the binding contract between a landlord and tenant. Both can hold each other accountable to what is contained in the lease.

We suggest that people review the Landlord Tenant Laws for your state, the Uniform Residential Landlord and Tenant Act of 1972 (including Amendments), Lease Termination Notice Requirements and Finding a Lawyer. You may find some helpful books in our recently updated Books & Reference area.

All tenants are entitled to a livable, safe and sanitary apartment. An implied warranty of habitability is a warranty implied by law that by leasing (renting) a residential property, the lessor (landlord) is promising that it is suitable to be lived in, and will remain so for the duration of the lease. Failure to provide heat or hot water on a regular basis, or to rid an apartment of insect infestation are examples of a violation of the warranty of habitability. Conditions that violate the implied warranty of habitability vary depending on the state and jurisdiction the apartments are located. Public areas of a building may also covered by the warranty of habitability. The warranty of habitability may also apply to cooperative apartments, but may not apply to condominiums. Any uninhabitable condition caused by the tenant or person(s) under his direction or control does not constitute a breach of the warranty of habitability. For more information on landlord obligations, see Sec. 2.104. Landlord to Maintain Premise of the Uniform Residential Landlord and Tenant Act .

In our personal opinion (not legal advice), if you find mold growing and returning frequently in a unit that you're living in, you may want to consider finding alternative housing, especially if you're experiencing health problems. Here is a link to Mold Dangers and Resources and "A Brief Guide to Mold, Moisture, and Your Home".

Renters: Report all plumbing leaks and moisture problems immediately to your building owner, manager, or superintendent. In cases where persistent water problems are not addressed, you may want to contact local, state, or federal health or housing authorities. [Note: Find your state health department contacts at www.epa.gov/iaq/whereyoulive.html (just click on your state).]

If you ever experience ordinance violations, you may wish to contact your local municipality and/or the local Department of Health to file a code violation complaint.

Be aware, that should they become involved, you may be forced out of your housing and NOT permitted to return until the violation has been corrected.

A&E Offers Help for Hoarders

2008-11-12T21:23:00.007-05:00

HELP FOR HOARDERS

Are you or someone you know struggling to overcome compulsive hoarding? The cable television network A&E is looking for people whose lives are in crisis because they are compulsive hoarders.

The crisis can take any form. For example:

• They are about to lose their homes
• Their spouse is threatening to leave
• They have health issues caused by the chaos
• They have to find tax papers so the IRS doesn't audit them
• Their kids are threatening to cut them off
• Or any other major issue that can only be resolved by cleaning out their home immediately!

We are casting for a groundbreaking new documentary television series that will provide a team of professionals that can help get those in need started toward cleaning their home, no matter how big or how full. A therapist or professional organizer will also be on hand to help our guest through this difficult process. Whether the guest is ready and able to clean out their entire home in this short period of time, with the assistance and guidance of a professional they will
learn valuable skills which will allow them to complete the task at their own pace and keep them from repeating the hoarding behavior in the future.

We are looking for people (as well as their friends and family if possible) willing to spend 3-5 days sharing their stories in the hopes of helping others and getting the help they need!

There is no cost to the guest. All clean up services are paid for in exchange for participating in the show.

Hoarding is a very serious problem affecting millions of Americans and their friends and families. But little is known about this disorder, and too often hoarders are misunderstood and can't find the help they need.

Our hope is that this groundbreaking new documentary television series helps the general public better understand compulsive hoarding while helping compulsive hoarders resolve a crisis.

If you or someone you know is a compulsive hoarder please contact us immediately at: hoarders@sfpseattle.com

MAREI Officially Launches Real Estate Investor Tele-Seminar Series

2008-07-10T12:55:00.006-04:00

News Release from Kim Tucker
Mid-America Association of Real Estate Investors

It's Official! Kim Tucker and MAREI have officially paved the way to start offering value based TeleSeminars as a no-charge educational and informational service to members and friends of MAREI.

These monthly, 60-90 minute calls will feature insight from well respected speakers, trainers and mentors who are well versed in the needs of investors and most often are very experienced, seasoned investors themselves.

In an effort to ascertain the investing topics members would most like to see featured in the TeleSeminar series, an online survey of is being conduced now at the new MAREI TeleSeminar Members' Site:

www.KCRealEstateCalls.com

The results will be tabulated an incorporated into the decision making process of which speakers and what topics will be offered.

This TeleSeminar series will be an excellent way for MAREI to offer members and friends of MAREI No Cost, No Travel education from the convenience of home or anywhere there's a cell connection.

MAREI TeleSeminar Series announcements will begin to appear in the coming weeks on home page, emails, General Meeting announcements and in other publications.

Take a minute to give your feed back on topics, speakers and more.
www.KCRealEstateCalls.com

Questions:
Kim Tucker
info@MAREInet.com
www.MAREInet.com
816-523-4400 x 222

Creative Finacing - Note Buying & Selling

2008-05-05T18:30:00.003-04:00

Do you own property, create lease-options or have monthly income you’d rather have a lump sum of cash for?

If you own property you wish to sell in this tough market, you probably already know that bank financing can be hard to find for any buyer even those with good credit to obtain. One solution is for the property owner to get creative and offer seller financing to potential buyers in order to sell their house or land more quickly (and at a higher price).

While applying seller financing techniques isn't more difficult than traditional real estate sales, it is important to recognize that the buyers looking for seller financing represent a different target market than typical bank-financed customers.

Once seller financing or the ‘note’ is created, the process for obtaining a lump sum cash payment varies from the conventional real estate closing technique as well.

Now you have monthly income which you may- one day or immediately-prefer to have a lump sum of cash for

Perhaps an immediate need arises for more cash than is available from the scheduled principal and interest payments you are receiving. In order to quickly obtain a large proportion of the money due from the loan you’ve just created, you could sell the monthly note payments to a buyer for a lump sum of cash. By locating someone willing to buy the note payments, you will have ready cash for any pressing financial need.

This is where I, your friendly note finder, come in. In the secondary finance industry, a unique group of individuals exists who specialize in locating note buyers. These cash flow specialists - often known simply as "finders" - have a unique understanding of what most buyers are looking for. These finders are happy to work with agents and their clients. Many of them utilize online marketing and have Internet websites to facilitate the buyer location process.

The best of the bunch also look in the newspaper for property sellers offering financing, so sometimes a good finder will contact the seller if their property is advertised as FSBO. Finders specialize in helping property sellers locate buyers for secured notes.

Once in contact with a finder, the seller should explain the details of the situation. While note finders won’t be able to offer any legal advice or assist with the creation of a note, they are qualified to give general recommendations about what types of terms are attractive to note purchasers. Most importantly, note finders will be able to help locate a buyer for a newly- created cash flow.

Remember, these finders are not note brokers, meaning they will not "show" the seller's note to buyers or act as a representative. They will only pass the information along to someone who would be interested. Once a commitment to purchase the cash flow has been established, the buyer will step in and complete the deal.

When working with a property seller who needs a lump sum of cash immediately after selling their real estate, contacting a finder early in the process of creating a real estate note makes sense. By involving a qualified note finder BEFORE a note is created, the property seller can receive invaluable input about the payment characteristics that note buyers prefer.

Fulfilling a Seller's Need for Cash

In order to streamline the seller finance sale situation, it is advisable to have potential buyers for the newly-created cash flow ready. A note finder can start looking for buyers before the note is created, or even before a seller-financed buyer is "lined up". This way, you could have a buyer for the payment stream ready to make the purchase as soon as the new private mortgage is created.

Locating the Right Note Buyer

On your own, you might wonder, what is the best method to find these note buyers? In stark contrast to locating seller-finance buyers for the real estate itself, a classified ad in the paper is not the best option. Most people looking to purchase a stream of monthly payments do not look in the newspaper for potential cash flows to add to their portfolios. An alternate marketing strategy is required for finding note buyers. This is the job of the note finder.

In recent years, the Internet has become the best place to find cash flow purchasers. Using keywords such as "buy monthly payments" or "buy mortgage payments" at a popular search engine website should lead to many interested buyers.

Sometimes there are so many potential buyers, it can be difficult to figure out where to start. Also, cash flow buyers tend to have distinctly different financial parameters; an opportunity that meets the needs of one person perfectly may not be attractive at all to another. Here again, it is often best to work with someone who could give you a general idea about how notes should be structured- your friendly neighborhood note finder.

Without this knowledge, the property could sell quickly with the creation of a new note, but you might end up collecting the payments long-term instead of being able to quickly "trade" the future payments for an upfront cash settlement. If you will need a large amount of cash quickly, it makes sense to plan ahead for a buyer to purchase the cash flow and involve the services of a note finder.

Another creative solution to selling a home or commercial property is to create a lease-option

But again, when your need for cash arises, you may want to assist your tenant by creating a note so they can purchase the property and then you can sell this newly-created note immediately at a simultaneous closing to obtain cash. Everyone wins. With this situation, a note finder can assist in the same way as explained previously by adding input as to what note buyers prefer so as to avoid delays in obtaining your cash.

I would look forward to talking with anyone interested in any of these topics. I am always glad to try to help-please contact me. There are articles similar to this on my website, I can send you informative newsletters regularly (a $29.95 value FREE to members of LandlordAssociation.Org) and I can be reached via my website at www.NoteFundingResource.com. Thank you for you time and I wish you all the best!

HUD's Notice Re "Reasonable Accommodation" and Increasing Housing Voucher Payments for Persons with Disabilities

2008-04-11T18:12:00.010-04:00

Information Bulletin #243 (4/08)

HUD recently issued a new Notice (PIH 2008-13) entitled "Requests for Exception Payment Standards for Persons with Disability as a Reasonable Accommodation."

As many of you know, persons with disabilities who require mobility accessible housing units and who have a Housing Choice Voucher (aka Section 8 tenant-based voucher) often have great difficulty locating a unit that meets their needs. When they do find such a unit in the private market that would accept a voucher as payment, the rent most often exceeds the payment standard of the voucher.

In previous Information Bulletins, we explained that the federal regulations authorize Housing Authorities (the local agencies that administer the voucher program), on their own, to increase the value of a voucher up to 110% of the Fair Market Rent (FMR) (established by HUD for each local area). To increase the voucher from 110% up to 120% of the FMR, the Housing Authority must request the HUD Field Office for permission and to increase the voucher above 120% the HA must request HUD's national headquarters for permission.

In the past, there have been several problems which we believe (and hope) that the recent HUD Notice will correct: (1) Housing Authorities unwillingness to increase the value of the voucher so a person with a disability could rent an accessible unit, and (2) when HA s were willing to increase the voucher's payments, the HUD process for requests above 120% of the FRM was so cumbersome that by the time national HUD acted, the rental units were gone.

HUD's Notice 2008-13 (Google it and read it in its entirety) addresses both of these problems in ways that disability advocates must be aware of.

First, HUD emphasized that increased payments for vouchers for persons with disability to use with accessible units were a "reasonable accommodation" under Section 504 of the Rehabilitation Act. By recognizing that increased payments were often necessary to achieve equal access and equal opportunity in using vouchers, and therefore were a civil rights issue, this should force Housing Authorities to increase the voucher payments.

If you have an accessible unit and if the HA refuses to increase the payment as a reasonable accommodation or if the HA refuses to request HUD for permission to pay over 110% or over 120% of the FMR, the HA has potentially violated the civil rights' protections for persons with disabilities in Section 504 and can be sued. It is no different than if the HA refused to put up grab bars or a ramp as a reasonable accommodation.

Second, the Notice provides a specific person in national HUD office and her fax number and email address for voucher payments exceeding 120% of the FMR. We hope this will significantly expedite the process so persons, who finally find an accessible unit, do not lose it because HUD has taken too long to respond.

The Notice provides an example of the calculation process which should be followed and lists the types of documentation that should be provided.

These changes are potentially very important and should facilitate the equal opportunity for persons with disabilities to use vouchers in accessible units.

Steve Gold, The Disability Odyssey continues

Back issues of other Information Bulletins are available online at http://www.stevegoldada.com with a searchable Archive at this site divided into different subjects.

Building Wealth During Uncertain Times Workshop

2008-02-10T19:25:00.000-05:00

Don't miss this fabulous opportunity to spend an entire day with John Schaub.

Saturday 3-22-2008 - South San Francisco Conference Center (near SFO Airport)

Dateline Sonoma, CA 2-5-2008

Hello Friends,

You know, at our BAWB meetings from time to time we talk about the financial markets or the state of our economy.

I think I'd really be remiss if I didn't revisit with you some of this information again.

First, let's talk about some of the problems we're facing. Then I'll suggest a possible solution / opportunity Here's the problem:

These were some recent headlines on CNN.com:

"Recession Fears Slam Stocks"

"Feds Make Emergency Rate Cut"

As recession fears were slamming the stock market,
the Federal Reserve held an "emergency meeting," the first "emergency meeting" since 9/11.

Citing a "weakening economy," the Feds made the biggest interest rate cut in over 23 years (3/4 of a point), slashing the key Fed Funds Rate to 3.5% and the Discount Rate to 4%.

Additionally, our Cost of Living is soaring:

Last week the US Dept of Labor announced that inflation jumped higher in 2007 than in 17 years.

In November, the US Dept of Labor announced the biggest jump in producer prices in 34 years. Wholesale prices also posted their biggest gain in 22 years.

The prices we pay on imported goods jumped by 10.9% last year – the fastest rise in 25 years.

What this means is that you'll need MORE money this year just to stay even and a LOT more to keep improving your lifestyle.

And the Unemployment Rate is picking up speed:

We now have 7.7 Million unemployed people in this beautiful country of ours...almost One-Million more unemployed than last year!

And What about the Real Estate Market:

We have skyrocketing foreclosure rates throughout the country, a VERY tight credit market, huge unsold inventories of properties and the continuing sub-prime mortgage meltdown.

What does all this mean?

Now, if you're listening to the financial pundits, you'll be frozen in your tracks, like a deer facing headlights.

But it doesn't have to be you.

As the great Napoleon Hill says:

"ALL problems Create Opportunities." - isn't that TRUE

Rising foreclosures, increasing REO's,tight credit, and the sub-prime mortgage crisis are creating huge opportunities for those who know how to take advantage of today's real estate gold mine. If I were a weatherman - I might forecast this as "the perfect storm"

Finally! THIS is the opportunity of a lifetime we've been waiting for. Real-life experience gives us that insight that the timing is right.

I'd like to share with you the ability to have that professional "edge" at this FANTASTIC upcoming workshop you simply do not want to miss;

John Schaub's

"Building Wealth During Uncertain Times"

The entire day will be devoted to addressing this specific question:

"How Can I Make Money in "Today's" Real Estate Market?"

The truth is simple.

When foreclosure rates go up, money becomes tight, opportunities for more lucrative real estate deals go up exponentially....IF you know what to do and how to do it correctly.

So, take a few minutes right now and check out the in-depth details for this upcoming FULL DAY event here by going to this link:

http://www.bawb.info/documents/JohnSchaub.pdf

The cost is insanely low and I promise you it will be filled with "meaty" content not fluff and with strategies you can use right away.

I truly hope you will make the decision to be there!

Sincerely,
Michael Morrongiello
Program Director
BAWB, LLC
www.BAWB.info
The Bay Area Wealth Builders Association
# 707-996-6411

PS. Don't Delay – SEATING is VERY LIMITED - This event is being marketed Nationally and to assure yourself a seat we encourage your Pre-Registration. Do it today!

We Made It Into the "Top 50 Real Estate Marketing Bloggers" on International Listings

2007-12-18T00:57:00.000-05:00

Our blog was recently published in the "Top 50 Real Estate Marketing Bloggers" on International Listings. We are #33 and are listed under the category of Development Properties.

"Keep up the great blogging. Cheers," said Brian Thibault.

Kathy A. Hertzog, President, responded, "We are honored and thrilled to be included on your Top 50 List. This list is an excellent resource for those who have an interest in almost any facet of the real estate world. We just started blogging a few months ago and had hoped our members and other bloggers would begin to participate more with our blog. Your article will be of great use to others seeking more information. We have already added a link to this terrific resource on our blog to share with others. We are very thankful to you for including us in your Top 50 Real Estate Marketing Bloggers List."

Grant Cardone Tips on Buying A House

2007-10-21T20:06:00.000-04:00

While surfing the net today, we came across an interesting video which we wanted to share. Grant Cardone's tips for buying real estate are: buy in the best location, buy property that has commanded the highest price over time, and buy where there are barriers to entry - where nothing will be built near it.

Tenant Screening Services

2007-10-18T19:40:00.000-04:00

In today's mobile society, it is important to know who is occupying your rental properties. Occupants come and go, and they frequently offer far too little information about themselves, their past and present employment, and credit history. All landlords and property managers know that reliable tenant screening can save them trouble and money.

As of 7:00pm ET, on October 16, 2007, LandlordAssociation.Org was informed that due to circumstances beyond their control, IntelliCorp can no longer provide reports to individual landlords who have not incorporated as a business. IntelliCorp can only work with Business-2-Business clients. If you are a legal business in your state, we are still able to provide access to the IntelliCorp system.

LandlordAssociation.Org has worked out an arrangement with Fidelity Information Corporation/TenantAlert to provide tenant screening services to ALL landlords large and small, incorporated or not. The new service, which can access Experian or TransUnion, will be easy to use and easy to understand. We hope you will find this new service a valuable resource.

You will be required to register with the new service. Although there will be a minimal one-time registration fee, we are working with them to get a high amount of that fee credited back to you to cover the costs of your first report(s).

An individual, property management company, large company, or real estate broker can sign up selecting the $35 or $99 registration. The $99 registration includes the first $75 on-site inspection fee. If you sign up for the $35 registration, and later want an on-site inspection done, it will cost an additional $75, so if you sign up for the $99 registration, it will save you $11.

The difference is based on where you are conducting business. If you conduct business from a house or residential location, then you must pass an on-site inspection annually to maintain access to full credit reports. If it is from a commercial location, only a one-time inspection is required as long as your business remains at that location (if your business moves, another on-site inspection must be conducted at the new location).

Here's how it all works:

Fidelity Information Corporation/TenantAlert can provide both incorporated and non-incorporated individual landlords with what they call an "Instant Credit Decision" within a matter of 24 to 48 hours. The "Instant Credit Decision" provides complete access to eviction and criminal data, but limits access to the instant credit decision only. The "Instant Credit Decision" is computer generated recommendation based upon an analysis of the applicant's personal credit history as compared to a set of criteria specifically designed for the rental housing industry. Additional information that may appear on this report, such as eviction, criminal and sex offender history, have not been considered in making the recommendation. The provider of this report suggests the recommendation provided be used in conjunction with other information before making a final determination. Approval is conditional upon independent business verification.

Landlords who pass the on-site inspection process can obtain complete access to eviction data, criminal data, and full detail credit reports. Please note: If your physical address for verification is a residence, an annual on-site inspection costing $75 will be required to maintain eligibility for the full credit reports through Fidelity Information Corporation/TenantAlert. Passing verification is not guaranteed and there is no refund of application fees. Approval is conditional upon independent business verification. If, for any reason, you fail the inspection or choose not to go through another inspection, you will still have access to the "Instant Credit Decision" reports.

Kathy Hertzog Quoted in at Least Two Newspapers Across the Country

2007-10-08T17:31:00.000-04:00

Kathy A. Hertzog was recently quoted in at least two newspapers across the country that printed follow-up stories dated October 4, 2007 (additional articles may run on later dates in other papers). These articles ran in several papers, including ones in Ohio, Indianapolis and Nashville, Arizona, Kentucky. The articles contain information about the Fair Housing Act and how to identify and report different types of discrimination. Links to two of the papers carrying the story are shown below.

The Courier-Journal, Louisville, KY - CLOSED DOORS: Housing discrimination complaints on rise across country - Update: Landlords can set standards for tenants, buyers
DEBORAH BARFIELD BERRY, Gannett News Service, October 4, 2007

AZCentral.com (Main Story) - CLOSED DOORS: Housing discrimination complaints on rise across country
DEBORAH BARFIELD BERRY, Gannett News Service, October 4, 2007

AZCentral.com (Where Quoted) - CLOSED DOORS: Housing discrimination complaints on rise across country - Update: Landlords can set standards for tenants, buyers
DEBORAH BARFIELD BERRY, Gannett News Service, October 4, 2007

Update on ProposedTax Changes HB 3648

2007-10-08T15:09:00.000-04:00

Thank you! Here is some additional information regarding H.R. 3648. It has been sent to the Senate Finance Committee. Information can be tracked at thomas.loc.gov (Library of Congress) under "HB3648," summary & status. Below are the members of the Senate Subcommittee on Taxation. This bill has passed the House, but it has not yet passed the Senate.

Janet

SUBCOMMITTEE ON TAXATION AND IRS OVERSIGHT AND LONG-TERM GROWTH

Kent Conrad, ND, Chairman
Jon Kyl, AZ, Ranking Member


Democrats	Republicans

Max Baucus, MT Ron Wyden, OR Maria Cantwell, WA Charles E. Schumer, NY Debbie Stabenow, MI Ken Salazar, CO	Trent Lott, MS Pat Roberts, KS Olympia J. Snowe, ME Mike Crapo, ID Orrin G. Hatch, UT

New Tax Changes Proposed by the House Ways & Means Committee (Introduction by Janet Bergeron)

2007-10-06T20:40:00.000-04:00

There's a bill that was just put forth unanimously from the committee which takes away the tax exclusion of living in a house for two of the past five years, if it was a rental or vacation home.

There is some very minimal grandfathering, more of use to people getting out of the rental business sooner rather than those of us who want to hold. The whole banking industry is behind this bill: it's the one that relives people in foreclosure of their tax on debt relief - very popular right now. It will take lots of folks speaking up, but so far, all I've heard is silence in the press. You have a way of getting the word out. Some of the bill information is available at http://waysandmeans.house.gov.

Also, if it would be a concern that some landlords are in foreclosure, this doesn't have to be an either or. A bill can be written that eliminates tax on forgiven debt and does not take away the tax exclusion that so many landlords need when selling a house they have lived in & rented. But... the word has to get out. People's retirement savings is on the line!

House Committee on Ways and Means

For Immediate Release:
Thursday, October 4, 2007

Contact:
Matthew Beck or J. Jioni Palmer
(202) 225-8933

Housing Tax Relief Bill Passes Full House
Legislation would prevent families from receiving tax bill following mortgage foreclosure

WASHINGTON – The House of Representatives gave overwhelming bipartisan support to H.R. 3648, the Mortgage Forgiveness Debt Relief Act of 2007, today in response to some of the tax issues that have arisen as a result of problems in the subprime mortgage market. The measure passed the full House 386 to 27. Similar legislation is pending before the U.S. Senate.

Under current law, debt forgiven following mortgage foreclosure or renegotiation is considered income for tax purposes, resulting in tax liability for individuals and families.

The House bill, written by Ways and Means Committee Chairman Charles B. Rangel (D-NY), would provide tax relief to families by permanently excluding debt forgiven under these circumstances from tax liability. It is estimated that two million American families could lose their homes to foreclosure due to rising interest rates in the current housing market crisis.

"I am happy that Congress came together to give bipartisan support for this common sense bill to help alleviate the pressure American families are feeling due to the subprime mortgage crisis," said Ways and Means Committee Chairman Charles B. Rangel. "It is just not right or fair that families struggling through a foreclosure would then face a tax bill in addition to losing their homes when they have seen no increase in their net worth. This bill rights that wrong and provides tax relief to millions of American families."

The bill would also help would-be homeowners secure their investments and avoid high interest, "piggy-back" loans for down payments through a long-term extension of the tax deduction for mortgage insurance while also easing restrictions for qualifying as housing cooperative corporations. Finally, the bipartisan bill would tighten requirements taxpayers must meet to exclude gain from the sale of certain homes that have been used as a vacation home or rental property.

H.R. 3648 has received strong support from the housing and mortgage industries, including the National Association of Realtors, Mortgage Bankers Association and National Association of Homebuilders. Please click here to view a summary of the legislation and letters of support for H.R. 3648.

Click here to view Ways and Means Members Support for Housing Tax Relief Bill.

Gannet Newspapers Interview Landlord Association.Org President, Kathy A. Hertzog, for Follow-Up Regarding Fair Housing Law and Landlords

2007-10-03T22:45:00.000-04:00

Gannett Newspapers have been running a series on fair housing laws and discrimination.

Landlord Association.Org President, Kathy A. Hertzog, was interviewed by Deborah Berry, a reporter for the Gannet Newspapers, on October 3, 2007. Her comments may appear in a follow-up article expected to be published in October.

Here are links to the first in a series on fair housing laws and discrimination. If and when the follow-up story is run, it will be linked in another posting.

A growing number allege unfair treatment in housing market

September 29, 2007 09:47 AM ET

Discrimination complaints: Many run into problems

September 28, 2007 02:08 AM ET

Officials: Immigrant hostility fuels discriminatory housing laws

September 28, 2007 01:43 AM ET

Housing groups use ads to push anti-discrimination message

September 28, 2007 01:43 AM ET

Aggressive outreach, disability cases help explain high complaint ...

September 28, 2007 01:42 AM ET

Housing official says agency working to be more consistent

September 28, 2007 01:41 AM ET

Hoarding and Cluttering Conference 2007 - Progress Not Perfection: Improving Health, Safety and Comfort Through Harm Reduction

2007-09-28T21:14:00.000-04:00

I am a representative of the Mental Health Association of San Francisco. I would love your site's help in publicizing our event: Hoarding and Cluttering Conference 2007 on October 18. The event pertains to those who are landlords as hoarding and cluttering is highly correlated with eviction rates.

THE MENTAL HEALTH ASSOCIATION OF SAN FRANCISCO PRESENTS:

Hoarding and Cluttering Conference 2007 - Progress Not Perfection: Improving Health, Safety and Comfort Through Harm Reduction

Date: Thursday, October 18, 2007
Time: 9:00 a.m. - 4:00 p.m.
(Registration begins at 8:15 a.m.)
Location: St. Mary's Cathedral, 1111 Gough Street, San Francisco, CA 94109

Keynote Speaker: Michael A. Tompkins, Ph.D.

This is MHA-SF's 10th annual Conference on Hoarding and Cluttering.

Compulsive hoarding and cluttering refers to the acquisition of and failure to discard a large number of possessions, which appear to be useless or of limited value, in an attempt to decrease stress and anxiety. This serious and prevalent problem can lead to eviction and homelessness. It is often a feature of several psychiatric disorders such as obsessive-compulsive disorder, attention deficit disorder and major depression, and can be caused or aggravated by problems associated with increasing age or physical disabilities.

Online registration is now available from our website! Click here to register now!

For more information about the conference click here.
(http://www.mha-sf.org/programs/hcconf.cfm)

If the above registration link does not work, paste this URL into your browser to register now!:
https://app.etapestry.com/hosted/MentalHealthAssociationofS/HCRegistration

Do Heating Bills Leave You Cold? Natural Gas Costs To Rise Sharply In 2008- Are You Prepared?

2007-09-19T10:07:00.000-04:00

Do Heating Bills Leave You Cold?

Natural Gas Costs To Rise Sharply In 2008- Are You Prepared?

Utility costs are one of the largest operating expenses facing multifamily property owners. The demand for natural gas in the US has more than doubled over the past two decades and natural gas prices are constantly on the rise. In this heating season alone, natural gas prices are expected to increase sharply – by as much as 50%.

Until today, there was not an effective and reliable way to bill residents for heat system expenses because of device tampering and undetected hardware malfunctions. The industry has forged ahead despite some early challenges because the benefits of heat cost allocation far outweigh the risks. Thankfully, those early hurdles have been overcome and heat cost recovery systems are better than ever. Benefits include:

Recover gas costs, increasing the value of your property
Receive consulting on gas conservation and heat ventilation and air conditioning systems
Lower resident heat consumption
Improve resident satisfaction through lower heating bills
Manage costs through budgeting, analysis and cost recovery reporting tools

Heating Systems are Like Snowflakes

Every property has unique features to its heating system, and the heat cost recovery solution will need to be tailored to each location. When you select your service provider, make sure that they are staffed by certified technicians who are trained to perform a detailed, on-site survey to evaluate and recommend the most complete and efficient utility allocation system for your property.

Cool New Hardware Choices

There are many hardware solutions on the market that can measure time; there are also new solutions that measure both time and temperature for optimal accuracy. This technology allows property owners and managers to measure the individual use of forced hot air furnaces, hydronic baseboard and fan coil boiler/chiller systems, fireplaces and domestic hot water heaters.

These advanced devices detect and remotely communicate whether each monitoring device is working correctly and if it has been disabled, which ensures flawless and accurate heat cost monitoring to recover maximum gas costs and equitable billing of residents.

ista North America, with its OptiHeat™, and OptiCool™ services offers a unique combined solution with high tech hardware and billing services that provide owners an exceptional energy cost recovery program.

Heat Cost Monitoring Systems Save Money

A heat cost monitoring system helps recover the rising costs of natural gas, and provides a rapid return on investment, thereby increasing property value. Once you start monitoring your heating costs, you will also need to have a system in place to bill your residents. Many companies offer both hardware installation and billing and support services. When selecting a company to provide your heat cost monitoring and billing services, you should consider the following:

What hardware do they use?
How much experience does the company have billing for heat?
Are their technicians certified and prepared to conduct a thorough onsite survey?
Do they have in-house regulatory expertise that is familiar with the billing regulations in your state and county?
Are they prepared to customize a solution to meet your property’s unique circumstances?
Do they offer a call center for resident billing questions and disputes?
What kind of training will they provide to your on-property staff?
What kind of maintenance plan do they offer?
Do they offer financing options?
Do they offer any additional services that can enhance your billing program?

Resources:

www.ashrae.org - Ashrae Guideline 8p Energy Cost Allocation for Multiple-Occupancy Residential Buildings
http://www.price-hvac.com/media/trainingModule.aspx#flash – Basics of HVAC Flash module
www.ista-na.com

ZERO TOLERANCE - Learn About What It Means to Enforce A Zero Tolerance System

2007-08-02T00:36:00.000-04:00

So You're a Landlord? Or are you thinking about becoming one? Let me tell you it ain't easy!

You're probably sinking in your chair right about now thinking, "I'm not even two sentences into the article, and already I'm nervous." Don't be. We here at LandlordAssociation.Org believe in giving you the truth - nothing more, nothing less.

Let's talk about one of the fundamental aspects of our business that no one seems to talk enough about. This is the avenue of collections, i.e. you getting paid on time. We want you to develop what we call a "Zero Tolerance Policy." We're not advocating that you become a ruthless tyrant or an old man Potter from "It's a Wonderful Life", but we are saying that you ought to have a line that no one crosses. It's really up to you set that line, but you have to have one. It is an absolute must. This business that we are involved in is a very simple, yet very complicated business. Many times you are faced with decisions that, as a business owner, are easy, but as an individual, are difficult. In those times, you must remember why you are in this business . . .TO MAKE MONEY.

You may be asking yourself, "How do I create a Zero Tolerance Policy?" This is what we recommend.

1. BE THE BANK. - The bank doesn't care about your inability to pay. They are all business - so are you.

2. DRAW THE LINE. - You don't have to throw people out on the street on the 2nd of the month. You should have a system set up. For example: The rent is always due on the first, there is a grace period until the fifth. After the fifth, there is a $25.00 late fee. If the rent is not received by the 10th, then the eviction starts.

3. KEEP FLEXIBILITY IN CHECK. - We're not trying to contradict our previous statements or confuse you, but this is your opportunity to be a humanitarian - without getting burned. You may choose to grant a one time extension to an individual who really needs it. This extension should not be so long that it leaves you exposed. A respectable extension could be five days. You should only decide to grant this extension, if the tenant has contacted you. Never, never, grant an extension to an individual that you have to contact for the rent. You will most likely be out five more days of rent. Also, make absolutely certain to inform your tenant that this is a one time extension and that this cannot become a habit. If after the five days, the tenant balks when you ask for the money, YOU EVICT.

4. STICK TO YOUR GUNS. - When the time comes, you will do what you have to do. This is not something that is fun or comfortable it's business. You have to put food on the table and you also have to pay a bank that doesn't accept excuses as payment.

5. OPERATE FROM A POSITION OF STRENGTH. - Make certain that you pace your business growth. Just because you can buy a piece of property doesn't mean that you can afford it. Understanding this principal will help keep you out of financial trouble. If you are desperate for money because you're spread thin and have no cushion in the bank, you're going to start playing "Let's Make a Deal." This is not a game you want to play when you're collecting rent. It is better to take the loss and evict, than to hope that some late payer will get you out of hot water. Believe me, money in the bank takes a lot of stress out of this business.

Don't deviate from the system! Don't do it! I know that there will be times that you will want to, but it is in your financial best interest not to. Believe me, I know!

Section 8 Voucher Reform

2007-07-18T21:28:00.000-04:00

On July 12th the House passed the Section 8 Voucher Reform Act of 2007, H.R. 1851. The legislation will change Housing and Urban Development's (HUD) Section 8 public housing programs - expanding rental assistance opportunities, improving program efficiency, and encouraging family self-sufficiency. The bill expands the number of families receiving vouchers by 20,000 a year for each of the next five years and ensures the program works effectively for the nation’s low income working families with children, elderly and disabled.

This legislation will:

Reform the voucher funding formula to increase eligibility and eliminate inefficiency. The bill reforms the formula used to allocate Section 8 voucher funds to housing agencies in order to increase the number of families receiving vouchers - through the elimination of inefficiencies that have resulted in $1.4 billion in unused funds and through incentives for agencies to use funds to assist more families.
Authorize 20,000 incremental Section 8 vouchers in each of the next 5 years, for a total of 100,000 new vouchers.
Encourage Economic Self-Sufficiency. The bill includes provisions to encourage economic self-sufficiency for low income voucher and public housing families, including:
- Reducing rent disincentives related to increases in earned income
- Making it easier for low income working families in rural areas to receive a voucher
- An improved funding mechanism to help families find employment
- Income exemptions for adult full time student dependents and for education savings accounts
- Helping low income families improve their credit score by allowing reporting of voucher and public housing rent payments
Promote Homeownership. The bill permits housing agencies to let families use a housing voucher as a down payment on a first-time home purchase.
Simplify the voucher, public housing, and Section 8 programs. The bill changes rent calculation, recertification, and inspection rules for the voucher, public housing, and project-based Section 8 programs, to reduce costs and compliance burdens for public housing agencies, landlords, and families. These changes are made while maintaining rules that target scarce resources to those families most in need and while maintaining rent calculation rules that ensure that rents are affordable.
Increase tenant protections. The bill makes a number of changes for the benefit of federally assisted families, including provisions to preserve voucher families’ ability to move to other areas, to address excessive voucher rent burdens, to provide for more accurate fair market rent calculations, and to protect voucher holders in units that are in need of repair.
Expand the Housing Innovation Program. The bill expands and renames the Moving to Work Program, which gives a limited number of housing agencies flexibility to experiment with development and rent policies, and strengthens the program’s evaluation process.
Attach vouchers to housing units. The bill includes changes to make it easier for housing agencies to attach vouchers to housing units – an important option in tight rental markets and in developing supportive housing for seniors, disabled persons and homeless persons.

Financial Services Committee Passes Section 8 Voucher Reform Act of 2007 on May 25, 2007

Washington, DC - The House Financial Services Committee today passed H.R. 1851, the Section 8 Voucher Reform Act of 2007. The bill passed by a wide bipartisan margin of 52 to 9. The legislation would reform the Section 8 funding formula to make it more efficient, revise the rent calculation process for Section 8 and public housing to expand work incentives and reduce administrative costs, increase flexibility to use vouchers for homeownership, amend voucher targeting rules to increase voucher opportunities for lower income working families in rural areas, and authorize an expansion in the number of families receiving vouchers by 20,000 a year for each of the next five years.

“It is important that we move forward on Section 8 Voucher reform, if for no other reason than to restore our responsibility for the program. Many important aspects of the program like the funding formula have had to be addressed by the appropriators because we did not reauthorize the Section 8 Voucher program. Several weeks ago the funding formula was put in the Continuing Resolution without any vetting of the issue within our Committee,” said Rep. Waters.

“A program of this importance to American communities needs to be more efficient to be effective. H.R. 1851 represents consensus around a federal housing program that can work for the nation’s low-income working families with children, and the elderly and disabled, as well the Public Housing Authorities (PHAs).”

The Financial Services Subcommittee on Housing and Community Opportunity held a hearing to examine Section 8 voucher issues on March 9, 2007. Rep. Waters introduced H.R. 1851 on March 29, 2007, with Committee Chairman Frank, Ranking Housing Subcommittee Member Biggert, and Rep. Shays as original cosponsors.

The full committee also voted today to adopt Rep. Waters’ Manager’s Amendment that would provide for the following provisions:

Using Vouchers for the Purchase of manufactured homes
Permits vouchers to be used for the full cost of purchasing manufactured homes on leased land.

Protecting Vouchers Reserved for Persons with Disabilities
Requires HUD to issue guidance to ensure that the 50,000+ vouchers created for persons with disabilities continue be reserved for such persons.

Breaking the Cap on the number of families a housing authority can serve
Permits housing agencies to exceed their limit on the number of voucher holders they can serve, thus encouraging more efficient use of voucher funds.

Voucher Reserves
Increases from 2% to 5% the percentage of reserves housing agencies can retain for the voucher program.

Portability
Provides for full funding for the cost of housing agencies accepting voucher holders from other communities, to strengthen the voucher program’s feature that lets families move from one community to another.

Family Self-Sufficiency Coordinators
Provides for a more reliable funding source for the cost of family self-sufficiency coordinators that assist public housing residents in finding employment.

More Accurate Market Rent and Funding Adjustments
Requires HUD to establish smaller areas for the purpose of calculating Fair Market Rent levels and providing annual voucher funding inflation adjustments, in order to improve the accuracy of such calculations.

Housing Innovation Program
Expands the number of public housing agencies that can participate in the Housing Innovation Program [renamed from “Moving to Work”], which lets agencies experiment with development, financing, and work incentive proposals, while also adding substantial tenant protections to the program.

Subsequently, the Committee passed a number of amendments, as follows:

A Waters amendment to expand the permissible number of Housing Innovation Program agencies by 20, plus a second category of 20 additional agencies under expanded tenant protections, including expanded resident participation in any proposals to demolish public housing units.

A Green amendment, modified by an amendment by Rep. Bachus, to authorize 20,000 new incremental vouchers in each of the next five years.

A Waters amendment to strengthen protections for voucher families in units that fail to meet federal housing quality standards.

A Lynch/Murphy amendment to strengthen voucher provisions to address areas when families face high rent burdens.

A Watt amendment to ensure that families seeking public and assisted housing are only screened based on their ability to meet lease obligations.

A Murphy amendment to exclude income from Coverdell and Section 529 educational accounts from rent calculations.

A Moore [WI] amendment to increase voucher work incentives for severely disabled persons, in conjunction with State demonstration programs.

A Capuano/Lynch amendment to protect families making less than 95% of median income from being evicted from “Demo Dispo” and Section 8 limited equity cooperative developments.

A Green amendment to authorize 15 year contract terms for vouchers used in housing tax credit projects, to help facilitate financing for such projects.

A Capuano amendment to protect “empty nesters” from eviction from certain buildings when their units are oversized.

How to be an Effective Landlord - Rights and Responsibilities, by Bob Seigerim

2007-07-08T17:09:00.001-04:00

Many investors are wary of the idea of renting property and the responsibilities that go with it. Unfortunately, this keeps them out of a profitable investing arena.

Following is a basic guideline for good rental management effectiveness and profitability.

Choosing Tenants

Your primary responsibility is to the maintenance and use of your property. Select your tenants carefully. It's unlawful to discriminate against an applicant because of race, national origin, religion, marital status, sex or physical disabilities. Beyond this however, it's still your property and you can pick and choose who you want living there. Never rent to the first person through the door. Prospective tenants will be shopping around, and you should too.

Make sure all applicants completely fill out an "Application for Rental" form. Forms like these are available at stationary and office supply stores.

Perform a thorough check of each applicant. Call the applicant's employer to verify employment, contact the landlord of the applicant's current or previous residence. This is the most important phone call of all. Check credit references if necessary.

"For Rent" signs and newspaper ads are not the best ways to attract trustworthy tenants. If this is how you advertise for tenants, make sure you screen them well. It's usually best to find a family or a person that can be recommended by a current tenant of yours. You may offer your current tenants an incentive for recommending strong prospects.

When writing a newspaper ad to rent your unit, make sure to give accurate descriptions. This includes the monthly rental amount, any deposits if required, description of the property or unit, and any restrictions that you maintain, such as children, pets, number of occupants, etc.

Don't be overly eager to get a tenant in. Indicate to all applicants that they will receive full consideration. Select a tenant that meets your requirements.

Collecting Deposits

Even though most tenants do not like paying deposits, it is in your best interest as a landlord to collect the last month's rent in advance. If the tenant fails to live up to the terms of the agreement, this deposit will help you to defray some of the costs of evicting the tenant. Defraying the legal costs is the only reason for this payment or deposit. You can also collect a cleaning deposit and a security deposit. These deposits are applied to any damages that occur while the tenant is occupying the unit.

Returning Deposits

If a tenant has in any way damaged your property beyond what would be considered normal wear and tear, you have the right to keep funds considered as security deposits and/or cleaning deposits. Try to use good judgment when determining what is and what is not normal. Normal use will age any property to some extent. Don't attempt to keep a tenant's money merely for this sort usage. You should, however, use the funds in these deposits to repair any damage caused by the tenant and/or to clean the property sufficiently so as to have it ready to show.

Inspection

A good rental agreement should have the tenant give a 30 or 60 day notice of vacating the property. Include a statement in your rental agreement that requires an immediate inspection at the time the tenant gives notice of his leaving. An immediate inspection helps you plan your strategy early if the property is not in good condition. It also lets you tell your tenant right up front what will be necessary in order for you to return his or her security/cleaning deposit. Include a final inspection the last day the tenant occupies your property.

Unannounced Entry

There has been an increasing number of restrictions put on unannounced entries in the past few years. Do not trespass unlawfully. Enter to make emergency repairs if you have to, otherwise wait until you get approval from the tenant for all other work. Don't abuse your privilege, you could end up with a legal battle.

Setting the Rental Amount

Your main consideration for determining the rental amount is based on rents of comparable rental units in the area. Common sense dictates that similar units rent for similar amounts.

Make sure your tenants know exactly when the rent is due. If you extend a grace period, make sure the tenants do not exceed that date for payment. Make it clear that you expect prompt payment.

Non-Payment

Even though you carefully selected your tenant from all the other applicants, things can go wrong. Job loss, illness, divorce, all kinds of things can hinder someone's ability to make timely rental payments. You may want to go easy on a tenant with a good payment record. A new tenant who can't pay, however, you should want to evict immediately.

Converse with your tenant. Try to determine when the rent will be paid. Tell your him that it's not personal, but a matter of operating your business. How long you wait to collect your rent is up to you. Clearly, the sooner the better.

Eviction

When all attempts to resolve your tenant problems fail, you must evict. Select your best course of action. Do you need an attorney, or can you start the process yourself for less money? If you choose not to use an attorney, you may want to use a "Notice to Pay Rent or Quit" form. This is used only to recover unpaid rent. The notice tells the tenant that he has only three days to pay the rent or leave the premises. If the tenant pays the rent within that three day period, things revert to business as usual. You collect the rent and the tenant doesn't have to leave.

A tenant with chronic offensive behavior may be served a "Notice to Quit" form. Use this form to begin eviction of a tenant who is disturbing and constantly breaking the rules. If the tenant is in violation, you have the right as the property owner to reclaim your property. The tenant must be "served" in person or by registered mail. Both of these notices are available in stationary and office supply stores. Consult an attorney to obtain knowledge of local, state or federal laws, alternatives and his professional advice.

Crowd Control

The more people who live in a unit, the more wear and tear, noise, damage, etc. One way to keep the crowds down is to limit the number of tenants per unit. Have this stipulated in your rental agreement. You can also stipulate an additional charge for each extra person occupying one of your units. If booze and drug parties, loud noise or music, or property destruction occurs, you may have grounds for eviction. Other than that, try to select the best tenants to avoid problems. Do not interfere in your tenants lives. Rent to them, reject them, evict them, or deal with them.

Maintenance

To determine how much maintenance will be required for your properties, just multiply the number of rental units you have, times the number of headaches associated with each unit. You must be proficient in repairing cracks in walls, painting, plumbing, yard work, electrical, etc. You will save a lot of time, money and stress from tenants if you can do this work quickly and efficiently.

If you can't do this work yourself, consider a good handyman. A really good handyman may be hard to find, but is well worth the search. Make sure the person you hire can be on call when you need him. Make certain the work is done well and is competitively priced. A good handyman can make you a better landlord.

Pest control is the landlord's responsibility. Shop around for the best combination of service and price. If there is a pest problem due to unsanitary conditions caused by a tenant, you have the right to demand that they clean up or otherwise correct the unsanitary condition.

Conclusion

Always start with good tenants. Use common sense and good judgment to avoid future, costly problems.

Mortgage Credit News, by Lou Barnes

2007-06-22T23:53:00.000-04:00

As suspected here last week, long-term rates have stabilized: the all-powerful 10-year T-note in a broad range below 5.20%, mortgages 6.75-6.875%.

Everyone assumes the 10-year will make a run through 5.25%, and mortgages to 7.00%, but I don’t think we will stay that high unless there is worse news on inflation, or the global economy runs away from the central banks.

In the last week, the mortgage market has been glued to the demise of two Bear Stearns mortgage investment “hedge” funds. Their rise and demise tells the whole crazy-mortgage-credit story, abounds in black humor, and presages the untidy conclusion of an interval of excessive leverage in all markets.

The funds were created only 10 months ago, the larger fund named in ultimate hubris, High Grade Structured Credit Strategies Enhanced Leverage Fund. Bear raised $1.5 billion in capital, mostly from institutions, and then its geniuses borrowed to establish about $30 billion in mortgage derivative positions (short and long, some offsetting, about one-third of the position in tranches of CDOs made up of tranches of other CDOs, black boxes within black boxes.). The lenders were the usual suspects, clones of Bear: Merrill, Morgan-Chase, Barclays, Goldman, Deutschebank, Citi, and BofA, some with better security than others.

By May, Bear had lost the capital, and to meet margin calls sold the high-quality assets, then forbade investors to withdraw, and by last week faced a creditor mob threatening to seize the remaining derivatives and liquidate the two funds altogether.

Then it got worse. After much huffing, the creditors realized that a fire sale was not such a hot idea, because they all have clients invested in the same stuff that Bear has, and gazillions more in loans out to each other secured by that same stuff. If Bear’s trash sold for thirty cents on the buck, then that would be the value of their trash and the collateral securing their other loans. On Monday Bear’s lenders were talking about injecting their own money into the funds to prop them up, and all week long lurched back and forth between a collateral scramble and a negotiated workout.

In some ways, a routine end to a bad idea. But... look again.

In the 2000-2006 Wall-Street-pushed extension of mortgage credit on suicidal terms, I had assumed normal Wall Street operations: if you’ve got a client desperate for yield and self-deceptive about risk, sell ‘em what they want, and caveat emptor. The SEC protects widows and orphans; institutions are on their own. You may not cheat other institutions, but you have no duty whatever to save them from themselves.

The stunning thing in this Bear fiasco: these are the insiders in the suicidal mortgage credit game, Bear and all its lenders. These are the guys who offered to buy mortgage trash from Main Street in any quantity, designed bizarre structures to satisfy their co-dependent credit rating agencies, and sold them to feed the insatiable global demand for yield. Insiders entered the market for mortgage trash in the fall of 2006 when several million civilians knew that you might as well juggle nitroglycerine.

It never occurred to me that the insiders didn’t know what they were doing. So drunk on money and power that they didn’t know their incompetence.

As of this morning, rumor has Bear offering a self-rescue injection of $3.2 billion (double the initial capital), theoretically for pride. I believe that there is more going on. It is a serious accusation, but the Street has for months appeared to be in a conspiracy of silence, working to conceal the real value of $1.5 trillion in bad mortgage ideas created ’04-’06, abetted by the glacial pace at S&P and Moody’s to acknowledge their massive rating error. The Fed is just as silent, which may preserve calm for a time, but transparency is the only antidote to episodes like this one.

Consequences for “A” mortgage paper are likely to be beneficial, as frightened money moves to quality, but credit standards will be tight. The Bear adventure could catalyze a leverage meltdown in other markets, likewise beneficial to quality loans.

Credentialing Required of Landlord Businesses Wanting Credit Reports

2007-06-21T21:15:00.000-04:00

We are informing landlords and property managers about changes coming from all three of the major credit bureaus requiring the credentialing of businesses wanting credit reports. This process is quite lengthy, costly, and frequently denies small home-based businesses [such as “mom and pop” landlords] access to credit reports.

Because of increasing difficulties nationwide resulting from fraud, identity theft, risk of casual disclosure or access, and overall mishandling of credit reports, the credit bureaus are adding more rules and regulations for accessing credit files. The new regulations affect the entire tenant screening industry. All tenant screening companies will be requiring an on-site inspection prior to granting access to credit reports.

On-site inspections will be required annually for landlords conducting business from their residences. More stringent documentation may also be required of such landlords. The annual on-site inspection is conducted to verify separation of office space from living quarters; as well as separation of office equipment such as a fax machine, telephones, computers, locked filing cabinets, etc. This separation is required to ensure that landlords are NOT working from their kitchen tables where they may accidentally leave a credit report laying around where it can be casually viewed. The onsite inspection fee must be paid in full before the inspection can be ordered.

Landlords will be able to obtain credit reports only if they successfully pass an on-site inspection by an authorized representative of the credit bureau. The authorized representative of the credit bureau will take pictures of your home and/or office, your workspace, and will ask you several required questions, such as your Tax ID and/or business license, etc., at an average cost of $100 (the actual cost may be more or less depending on the credit bureau).

To assist landlords, especially those conducting business from their residences, many tenant credit reporting agencies are now providing landlords with recommendations for “approval”, “approval with conditions” or “denial” instead of providing a detailed credit report. This way, landlords can obtain recommendations over the Internet almost instantly without sacrificing the security of a prospective tenant’s credit report.

We want to inform you that there are other alternatives available which will provide adequate background and financial information upon which a landlord of any size can base his/her rental decisions. A credit report is no longer the primary document needed to make a wise rental decision. IntelliCorp can have everyone validated for their other products within a matter of 1 to 2 days with as little as a rental agreement as proof of a landlord’s business. And, they can do it for much lower costs.

Here’s what’s happening:

All three major credit bureaus are now requiring a thorough credentialing of businesses wanting to obtain credit reports. In this new credentialing process, small home-based businesses [such as “mom and pop” landlords] are often denied access to credit reports. Because a lot of our members and visitors fall into this category, IntelliCorp has been unable to provide this service to as many people as they would like.

Some relief has recently been granted by TransUnion, but they still require an on-site inspection of the landlord’s business.

Here are the newest requirements set forth by Trans Union:

An End User [the landlord] operating from a home office may be approved [for access to credit reports] only if each of the following conditions are met:

1. The on-site inspection must confirm physical separation of the business from the living quarters.

2. The End User [the landlord] is listed in either the appropriate category of a reputable public business telephone directory (e.g., Yellow Pages, yellowpages.com, 411.com) or a national or state trade association or a current copy of the End User’s telephone bill reflects the same company name and address as the End User’s application for membership and the bill reflects commercial rate charges.

3. The End User [the landlord] must still show proof of a business (e.g., business license, vendors license, IRS tax ID) in order to have access to credit reports.

The process to obtain a credit report can take up to 2 weeks. This is because of the added paperwork, calling of bank and trade references, and finally completion of the on-site inspection (which costs $60.00 or more). This in depth process is mandated by TransUnion and is something IntelliCorp had to implement to offer credit reports to any client.

Once a client/business [landlord] has jumped through all these hoops and passed successfully, the client [landlord] will be permitted to obtain credit reports and can run as many as needed without having to fill out any additional paperwork.

Remember, there are faster, far less expensive alternatives to this cumbersome credentialing process. IntelliCorp has the ability to provide a landlord of any size with sufficient background and financial data upon which s/he can base their rental decisions without the need for a credit report.

If you have any questions or want to purchase one of our discounted bundled packages, please contact Michael Moats at 1-800-539-3717 ext. 148. Please use promo code "LLA1" to receive the discounts shown below.

Bundled Package #1 - Comprehensive Package $21.95
(after passing the credentialing process)

Criminal SuperSearchOne (1) Single County Search
Sex Offender Registry (all 50 states)
Social Security Verification with Address History
OFAC (Terrorist Database) Search
One (1) state Eviction Search
Credit Report from TransUnion

Bundled Package #2 - Smaller Package $9.95
(available to any landlord with a rental agreement as proof of their business)

Sex Offender Registry (All 50 States)
Social Security Verification with Address History
OFAC (Terrorist Database) Search
One (1) State Eviction Search
Bankruptcies, Liens and Judgments Search

Please, visit us at www.LandlordAssociation.Org for more information about our tenant screening services.

Welcome to Landlord Association.Org's Blog

2007-06-21T21:09:00.000-04:00

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