MI Landlord Resource Guide Sample Issue by RPOA

MICHIGAN

LANDLORD JANUARY/FEBRUARY 2015

www.rpoaonline.org

SPECIAL EDITION: ANNUAL RESOURCE GUIDE & CONFERENCE PROGRAM Sponsored by:

2015 FREE Annual Conference & Event February 26-28, 2015 DeVos Place

FEATURING: Robyn Thompson Rehabbing & Flipping for Wealth

Mike Butler

Landlording On Autopilot

Alan Cargill

Private Lending for Real Estate

Cynthia Schmidt

Collecting Back Rent

WHERE LANDLORDS GO FOR HELP

A PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION

NON-MEMBER

RPOA MEMBER

n o t I c e o F v I o l at I o n s

peace oF mInd

non-payIng

tenants

FaIR housIng vIolatIons costly

evIctIons

destRuctIve

tenants

ongoIng polIce calls otheR complaInIng tenants nasty letteRs FRom neIghboRs costly lIabIlIty laWsuIts IncoRRect

FoRms

WHERE LANDLORDS GO FOR HELP

www.rpoaonline.org

WHERE LANDLORDS GO FOR HELP

IN THIS EDITION

6 20

FEATURES 4

FROM THE DIRECTOR

NEW MEMBERS

14 MEMBER-TO-MEMBER DISCOUNT PROGRAM 29

CREDIT REPORTING PROCEDURES

UPCOMING SEMINARS & EVENTS

33 AD-O-GRAMS

ARTICLES

VOLUME 50, NUMBER 5

HOW THE U.S. APARTMENT MARKET IS SHOWING SUCH STAYING POWER

www.rpoaonline.org

RPOA’S PARTNERSHIP WITH THE OTHER WAY MINISTRIES KICKS OFF

for real estate investment and rental property ownership

3 THINGS THAT MAKE A GREAT REAL ESTATE INVESTMENT

columns, and other features should not be construed as

LEGISLATIVE NEWS

HOW TO HANDLE RESIDENTS THAT HOARD

14 IDEAS FOR ZERO RESIDENT TURNOVER

COMPOSTING RULES IN GR

MICHIGAN LANDLORD editorial goal is to provide a forum and management ideas and news. Our articles, investment advice, nor does their appearance imply an endorsement by the Rental Property Owners Association of Kent County or the Real Estate Investors of Michigan of any specific real estate investment or management strategy. An investor’s and manager’s best course of action must be based on individual circumstances.

September/October 2014 MICHIGAN LANDLORD 3

RENTAL PROPERTY OWNERS ASSOCIATION

From the desk of the Director CLAY POWELL

A landlord once jokingly said to me, “If it wasn’t for tenants, this business would be great.” We all know that it can feel this way sometimes. But, the reality is, just like with any business, we have customers we love and some—not so much. The real trick is attracting and keeping the good customers while limiting our exposure to the bad ones. In our September/October issue of the Michigan Landlord, we’ve included some excellent articles on reducing tenant turnover and dealing with troublesome tenants. Don’t miss Brent Williams’ article on “14 Ideas for Zero Resident Turnover” on page 20. The article on hoarders is not to be missed on page 16.

Screening for great tenants is one of the most important things we can do as landlords. For some, it has become an art form. For others, it’s a painful experience—and one they tend to avoid. Caution: It is never a good idea to avoid the screening process. Join me on September 11 for an indepth course on Marketing & Screening for Paying Tenants. Even experienced landlords that have taken the course say it’s worthwhile. Register online at our website http:// rpoaonline.org/events/marketing-screening-for-payingtenants/ or call the office at 616-454-3385. Enjoy this edition of the Michigan Landlord. And, if you’d like to hear more on a topic, let us know.

How the U.S. Apartment Market Is Showing Such Staying Power The continued strength of the apartment community sales market has been a relief to many owners who were concerned the sector would weaken. Apartments were among the first types of commercial real estate to rebound after the Great Recession. However, as early as 2011, some analysts were forecasting that the sector would cool off due to competition from improving home prices and the fledgling singlefamily rental market. However, the competition from the sales market has been weaker than anticipated mainly because mortgage lending has continued to be so tight. Nationally, rental apartment values are up 14 percent from peak 2007 levels, reports a Green Street Advisors index that tracks the performance of listed apartment owners. Both rents and occupancy rates are up nationwide. From January through March, rents climbed another 0.6 percent and are now up 13 percent since the upswing started in 2009. Meanwhile, vacancies slipped to 4 percent, states Reis Inc. Few developers are building “workforce housing” right now, leaving that niche wide open for high returns. Real Capital managing director Dan Fasulo notes that workforce housing has less risk than upscale apartments because there is less new supply in the pipeline. He remarks, “If the overall economy does improve, you’ll basically reap the benefits.” Looking at individual markets, Denver remains among the most intriguing with rents having risen there for the past five years and are up 20 percent since peak 2007 levels. Some, though, are concerned that an oversupply of upscale housing will flood the market. The supply of multifamily housing in Denver is on pace to increase 8.1 percent over the next four years, projects Green Street. - See more at: http://www. naahq.org/read/industry-insider/07-01-2014#733415

Digested From “Apartment Market Shows Staying Power,” Wall Street Journal (06/25/14) Dulaney, Chelsey. Source: NA

CONTRACTOR AND VENDOR RESOURCE GUIDE EXCLUSIVE DISCOUNTS FOR LANDLORDS & REAL ESTATE INVESTORS SAVE $1,000′S WITH MEMBER DISCOUNTS It pays to be a member of the RPOA!

RPOA members are eligible for discounts from a wide variety of local and national companies*. Some discounts are exclusively for RPOA members.

WHERE LANDLORDS GO FOR HELP

EXCLUSIVE MEMBERSHIP DISCOUNTS Sign up for the Home Depot rebate program through the RPOA and receive 2%* rebate on all your purchases–no matter how small or big. Call the RPOA office! Republic Waste Services offers exclusive deep discounts for RPOA members. 96 gallon carts are only $11 per month (curbside only). Call 616-6626862 to start your service. Jack’s Lawn Service is offering an exclusive discount to RPOA members only. Call for your exclusive discount today Rylee’s Ace Hardware offers a 10% discount for all RPOA members with every cash purchase. Amera Mortgage Corporation offers free appraisal for 1 to 4 family unit homes with closed loan application for RPOA members only. Call Jim Riley, at 616-292-4491. Bender Maintenance and Home Improvement offers 10% off hourly rate. Property maintenance, general repairs, property prep for rental, inspection compliance. General Contractor, Certified Lead Renovator, RPOA Member. 616-975-0126. Cash Flow Solutions special rates. Collect Bad Checks with Bounce Back Check Recovery! To access this discount, contact the RPOA office. Jeff Lamborne Farm Bureau Insurance Agency offers group discounts. Call Jeff for details. 616447-0274. Grand Rapids Carpet & Cleaning

Grand Rapids Carpet & Cleaning. Receive 4th Room Free. Member Carpet Cleaning Special: For every 3 rooms cleaned, receive 4th room FREE. Call Dave at 616-453-5368. Hungerford Nichols CPA Advisors. Free initial consultation on tax, accounting, and consulting services to RPOA members. Contact Kyle Sischo at 616-949-3200. Indoor Climate Solutions. Offering all RPOA members Grand Rapids heating inspection stickers for $40.00 each and 5% discount on repair or replacement of any HVAC equipment. 616-8914328. J.B. Harrison Insurance group discounts! AutoOwners, AAA, Citizens, Hastings, Hartford, Pioneer State Mutual, Progressive. Call Mike Murphy at 616-868-0050.

Compass Realty Services, RPOA exclusive discount! Up to $500 of listing services. Call Tom at 616-550-4447. MLive $35 for 30 days print and online! Grand Rapids Press, Kalamazoo Gazette, Muskegon Chronicle. Includes a 5 line print ad for a single rental unit as well as appearing with expanded text and up to 8 photos on mlive.com. Call the Classified Sales Supervisor at The Grand Rapids Press at 616-222-5527. OfficeMax offers special discounts on expensive supplies like ink cartridges. More than a vendor or supplier…they’re your strategic partner, your ally, your advocate. To access this discount, contact the RPOA office. Pawlowski & Reens, PLC. Free limited legal advice & discounts. Discounted fees and free limited phone consultation on any legal issue. Call Bill Reens at 616-458-7800. ProSource. 50% off carpet, pad and sheet vinyl and 30% off all hard surface. Call Peggy, 616-2573200. Rentals.com Save 20% on standard listings. An online business tool designed to rent your property faster & maximize your investment. To access this discount contact the RPOA office. RMS Free towing! Towing of abandoned and improperly parked cars on your property. Offered to RPOA members at no cost. Free signage for RPOA members if required by State of Michigan laws. Call 616–475-9836. Sherwin Williams offers a 30% discount on paint products and also offers a 30% discount on paint sundries. Applicators are discounted 35%. Other pricing is very competitive within the local market. A special discount card must be obtained from the RPOA. Sun Rentals 15% off any rental. Pay cash and receive 15% off any rental, any time. Call 616-454-7982. USA MLS NET Listings $30 per month. RPOA Members $30 per month, unlimited listings. Free custom website with listings displayed, plus many more benefits. USA-mls.com. Call 1-800-206-0080. West Michigan Pro Clean 20% discount. RPOA members receive a 20% discount on their first cleaning. Call 616-299-1757.

RPOA CONTRACTOR AND VENDOR LIST ACCOUNTING & BOOKKEEPING Culver CPA Group

Duane Culver Grand Rapids, MI 616-456-6464 culvercpagroup.com

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Hungerford Nichols CPAs & Advisors Heather Halligan Grand Rapids, MI 616-949-3200 hungerfordnichols.com

AIR & ENVIRONMENTAL SERVICES BioSweep of West Michigan Thomas McNally Ada, MI 616-614-2531 BioSweepwestmi.com

APPLIANCE DEALERS Great Lakes Commercial Sales Inc Jon Gerard Wyoming, MI 616-531-8810 greatlakeslaundry.com

Gerritâ&#x20AC;&#x2122;s Appliance, Inc.

Brian Hooyer Wyoming, MI 616-532-3626 gerritsappliances.com

Werdon, Bruce K

Bruce Werdon Grand Rapids, MI 616-456-7039 modernappliancegrandrapids.com

APPRAISALS Post & Associates Kim Post 616-891-0500

Caledonia, MI

ARCHITECTS Todd, Timothy & Michelle Michelle Todd 616-291-1848

Grand Rapids, MI

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JB Harrison Insurance

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Referred RPOA Member Vondor. RPOA members recommend certain contractors and vendors based upon quality of service, professionalism and price.

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Sample Contractor/Vendor Contact Name 616-555-5555

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Sample Contractor/Vendor Contact Name 616-555-5555

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Referred RPOA Member Vondor. RPOA members recommend certain contractors and vendors based upon quality of service, professionalism and price.

SAMPLE HEADER Sample Contractor/Vendor Contact Name 616-555-5555

Grand Rapids, MI

Sample Contractor/Vendor Contact Name 616-555-5555

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PROPERTY MANAGEMENT

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Compass Property Management LLC Mark Troy 616-452-7080 compas101.com

Wyoming, MI

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RPOA CONTRACTOR AND VENDOR LIST SAMPLE HEADER Sample Contractor/Vendor Contact Name 616-555-5555

Grand Rapids, MI

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SAMPLE HEADER Sample Contractor/Vendor Contact Name 616-555-5555

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Sample Contractor/Vendor Contact Name 616-555-5555

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Referred RPOA Member Vondor. RPOA members recommend certain contractors and vendors based upon quality of service, professionalism and price.

WHERE LANDLORDS GO FOR HELP

WELCOME, NEW MEMBERS Briggs, Tom Castle Charlies Party Store Ciccarelli, David M CIT Holdings, Inc Davis, Shane Dempkey, Brian Envision Investing LLC Farmer, Lee Ann C Fedko-Nelson, Michelle FLM Development Garcia, Jose Ruben

H2 Real Estate LLC Hoag, Deborah Jones, Mark & Stacy JSP Ventures LLC Keystone Properties of Lowell LLC Kharmai, Neilrani & Nancumar Lighthouse Property Solutions Meyers, Josh and Trisha MJA Rentals Mulliner, Pamela & Phillip Naumann Group LC Red Snail LLC

Richard & Judith Mann River Valley Homes LLC Sanders, Carl J Jr Schreuder, Andy & Katrina Scully, Jeremy Shutich, Carole Tepp, Dirk S Tuohy, William J II & Nancy VanderPol, Mark Wakefield, Samuel T Woodcreek Apartments Wotli, David

ONLY $11 PER MONTH FOR 96 GALLON RUBBISH CART As a member of the RPOA, you can take advantage of the extremely low rate of only $11 per month for a 96 gallon rubbish cart through Republic Waste Services. Other discounts are also available for roll-offs and other containers. Call 616-662-6862 to start your service and start saving today! September/October 2014 MICHIGAN LANDLORD 11

RENTAL PROPERTY OWNERS ASSOCIATION

RPOAâ&#x20AC;&#x2122;s Partnership with The Other Way Ministries Kicks Off THE RPOA IS PARTNERING WITH THE OTHER WAY MINISTRIES YOUTH EMPLOYMENT SERVICES (YES) PROGRAM AGAIN THIS SUMMER. ONE PROJECT HAS BEEN COMPLETED AND SEVERAL ARE BEING LINED UP TO START SOON. In order to tackle problem properties in neighborhoods with grass, weed and trash issues, the RPOA continues to support YES program (www.theotherway.org) and neighborhood associations by providing financial support for certain cleanup projects. The RPOA asks neighborhood associations to identify properties of the greatest concern and report them to the YES staff. YES contacts the owner of the property to let them know of the offer to do the cleanup and schedule the service. The RPOA provides financial support for the cost of the cleanup through the RPOA Charitable Fund. The first project completed was for a disabled senior citizen living at 1047 Hamilton NW, Grand Rapidsthat could no longer maintain his yard. The property had become overgrown with shrubs, volunteer trees, and weeds. The YES crew was able to remove all of the overgrown vegetation and get the property back into shape. The YES program is a summer non-profit ministry program that hires teenagers to do yard work. The program is used to provide teens with work experience and character development. Teens are employed and one teen assistant supervisor to mow approximately 40 lawns each week. Teens participate in a variety of skill and character development exercises. The RPOA supports the work and goals of the YES program and hopes to support that program indefinitely. The lead supervisors for the YES program this summer are Kelli Kortman and Seth Hamrick. To make a tax deductible contribution to the RPOA Charitable Fund, make checks payable to the RPOA Charitable Fund and mail or deliver them to: 1459 Michigan Street NE, Grand Rapids, MI 49503.

WHERE LANDLORDS GO FOR HELP

September/October 2014 MICHIGAN LANDLORD 13

RENTAL PROPERTY OWNERS ASSOCIATION

LEGISLATIVE NEWS BILL INTRODUCED TO PROTECT DOMESTIC VIOLENCE VICTIMS A bill was introduced late in the spring legislative session that would add victims of domestic violence, sexual assault or stalking to the list of protected classes in the State of Michigan. The additional language would be added to Sec. 502 of MCL 37.2502. The change would prevent landlords from discriminating against a person under these conditions when screening for tenants and prevent real estate professionals from discriminating against them during real estate transactions. For a copy of the complete bill, go to http://www.legislature.mi.gov/documents/2013-2014/ billintroduced/House/pdf/2014-HIB-5656.pdf

INSPECTION BILL SB 313 PASSES SENATE WITH OVERWHELMING SUPPORT! No More Outlandish Registration Fees A bill that will change municipal rental inspection programs passed the Senate with an overwhelming majority on June 4 with just three no votes. Senate Bill 313, also known as the “inspection bill,” sponsored by Sen. David Robertson and supported by the RPOA of Michigan (RPOA-M) and the Apartment Association of Michigan (AAM), will make changes to the Housing Law of Michigan which controls how cities of 10,000 or more operate their rental inspection program. The bill will, in part, do the following: • Provide the registration of rental properties only occurs upon change of ownership or at the time of re-registration when additional units are added to a rental property. • Cap the amount an enforcing agency can charge for rental registration by prohibiting the agency from charging a new registration fee until there is a change in ownership or re-registration. • Registration fees are redefined to only include fees associated with the registration of the rental property—not inspections, re-inspections or otherwise—further limiting the amount an agency can charge for registration.

The bill was seriously watered down in the negotiation process, but, for those landlords facing frequent and/or

sizable registration fees, this bill will equal a savings of thousands of dollars over a several year period. The bill now has to jump through the hurdles of the Michigan House of Representatives. The RPOA-M Director, Clay Powell, is hopeful that the bill will pass in the Fall. Here’s the text of the full bill as passed by the Senate. http://www.legislature. mi.gov/documents/2013-2014/billengrossed/Senate/ pdf/2013-SEBS-0313.pdf

“POP UP” TAX REFORM POPPED FROM PANEL Elimination of Inheritance Tax for Homes Passes House Homeowners could pass along their homes to family members or put them into a trust without having their heirs’ pay what is called the “pop up” tax, under legislation that moved out of the House Tax Policy Committee this morning on a party-line vote. House Bill 5552, sponsored by Rep. Peter Pettalia (R-Presque Isle), pushed his first version of this idea in 2011 as a way to keep family cottages and property in the family without heirs being faced with huge property tax bills they can’t afford to keep. The Department of Treasury, Democrats and local government groups argue the bill is taking away potential future revenue for cities, townships and counties, but Pettalia is arguing that the bill doesn’t cost anybody anything. “It’s not reducing property taxes. At worst, it’s keeping things revenue neutral.” As a sweetener to get Proposal A passed in the mid-1990s, the state agreed to let taxable property values any higher than the rate of inflation or 5 percent, whichever was less. But, when the homeowner sold his or her home the property tax bill for the new homeowner “pops up” to 50 percent of the parcel’s market value. This “popped up” value, after about 20 years, can be significant and make the difference between a mother, father, brother, sibling, child or grandchild being in a position to keep the property after the homeowners passes it along. The Department of Treasury is estimating that without the language allowing for the passage of property to a trust, the cost to local governments will be around $2 million lost a year.

WHERE LANDLORDS GO FOR HELP

LEGISLATIVE NEWS “We’re not talking about a lot of money here,” Pettalia said. “We’re talking about protecting Michigan families and the traditions and heritages in which they were raised. That’s our responsibility. Our responsibility isn’t to worry about potential revenue. This is protecting families.” However, the Michigan Education Association (MEA) and the American Federation of Teachers (AFT) have come out against the bill because they see this as a gradual chipping away of property tax revenue that was expected, eventually, to flow back into the schools. Holding property values at the rate of inflation of 5 percent in the post Proposal A was not meant to be a permanent property tax cap scheme, said Rep. Vicki Barnett (D-Farmington Hills). The “pop up” was designed to be a discount for voters who voted for Proposal A until they sold their home. This bill, she said, is “nicking and nicking and nicking the mechanism that was supposed to keep communities whole, the School Aid Fund whole and provide for the health, safety and welfare of local communities and the education community.” The huge drop in property values in 2008-2010 reduced the amount of money local entities received through property taxes. And now, due to this cap, they can only raise back to their former levels at the set level of 5 percent or the rate of inflation. “It’s going to take 20 years for local communities to recover the amount of money they lost in addition to the taking of $6 billion in revenue sharing money to local communities,” Barnett said. Rep. Jeff Farrington (R-Utica), chair of the House Tax Policy Committee, said he’s heard this argument for the last three years, but the realistic impact of this bill is “minute,” as is every other change in the tax code with the exception of the “sales tax on the difference” legislation. “They’re just hitting the same hole over and over again,” he said. “Politics.” Source: MIRS, http://www.mirsnews.com/

SHOULD LANDLORDS BE HELD ACCOUNTABLE FOR HUMAN TRAFFICKING IN A RENTAL UNIT? House Bill 5230 would tag any house that is damaged by “fire, wind, or flood, or that is dilapidated and becomes an attractive nuisance to children or a harbor for vagrants or criminals, or enables persons to commit a nuisance or an unlawful or immoral act on the premises” as a nuisance property. The bill would also add “human trafficking” to the list of nuisances that can trigger a local government seizure of a property. Under Michigan current nuisance abatement laws, local governments can compel property owners to clear debris, repair buildings, and stop illegal activities involving gambling, drugs, and prostitution. If the property owner fails to comply, a court can issue an order allowing the property where the nuisance activity occurred to be seized and forfeited. The nuisance activity must be proven with a police report. Once a property owner is informed of the illegal activity, the simple resolution is eviction of the residence occupying the unit where the illegal occurred. HB 5230 would significantly expand the nuisance law by opening the door wide open to any local government declaring a “dilapidated” property a nuisance by simply saying that the property has become an attractive nuisance. The RPOA envisions a significant abuse by local governments if this bill is passed. While the RPOA believes that landlords should cooperate with authorities in the efforts to eliminate human trafficking—including eviction of the tenants involved in the crime—the RPOA can’t support a bill that opens a wide door to abuse by local governments. Imagine dealing with a fire that has destroyed your profitable rental unit only to find a local official claiming the property is now an attractive nuisance to a crime and they are going to seize it. The RPOA supports adding human trafficking to the list of nuisances under the current law, but it can’t accept a law that will declare any property in disrepair a nuisance property subject to seizure and forfeiture. The RPOA will be working over the summer and fall to change the language in the bill. CONTINUED ON PAGE 12 September/October 2014 MICHIGAN LANDLORD 15

RENTAL PROPERTY OWNERS ASSOCIATION

3 THINGS

THAT MAKE A GREAT REAL ESTATE INVESTMENT If you’re looking into real estate investments, you likely want to earn wealth on real estate based on risk you are taking, while minimizing the amount of time you need to spend attending to the property. In order to accomplish this, you need to make some smart choices upfront when buying investment property. Your goal should be to strive to get as close as possible on as many of these optimal scenarios as possible:

#1 PAYS A FAIR CASH-ON-CASH RETURN

When you buy property you are taking money out of your liquid financial assets — stocks, bonds, CDs — and investing it into a very illiquid asset — real estate. You were earning a rate of return on your financial assets, such as 4 percent or 6 percent, and you should strive to earn a fair cash-on-cash rate of return on your real estate. To do this, you need to pro forma your deals and buy cash flowpositive properties that earn you decent returns — not those prize properties that are negative, negative, negative. For more guidance on this, see Smart Investing — A Tale of Two Townhomes.

#2 ISN’T TOO RISKY AN INVESTMENT

All real estate is extremely high risk. Development of real estate, land, TenantIn-Common (TIC) investments, private real estate funds, fixer uppers, etc., all have much higher risk profiles than just simply buying a nice established cash flow investment property. In many of those investments, you will never see a dime of your money again because there are just so many things that can go wrong! So if you want to own real estate, consider simply taking fee simple title in your own name — or an entity you wholly own — to the properties you purchase. In addition, you must do the proper due diligence, analyze, test, review reports, etc., to make a lower risk real estate decision.

DOESN’T REQUIRE A LOT OF TIME #3 OR MANAGING

Some properties just require way too much time and management to make them smart investments. Examples include vacation rentals, low quality properties in bad areas, college rentals, etc. Nice boring properties rented for as long as possible to decent credit profile tenants seem to take the least time to manage. In addition, treating your tenants fairly and with respect goes a long way towards keeping good relations with them; and reducing your hassles when there is an issue you need to address. And believe me — there will be issues!

It’s the nice, boring, wholly owned, in good shape, cash flow-positive properties that are the best investments. They are out there for your picking, but it’s not as simple as finding a property on the MLS and buying it. You need to do some hard work, research, read up, and make smart, educated decisions to acquire the best real estate investments! Source: Zillow.com

It’s the nice, boring, wholly owned, in good shape, cash flow-positive properties that are the best investments.

WHERE LANDLORDS GO FOR HELP

HOT Tip for SUCCESS

WE ARE CPA’S WHO OWN REAL ESTATE

Get it in writing! All leases, whether month-to-month or six months or a year, should be in writing. (All leases of one year or longer must be in writing.) Trying to evict a tenant for violating a lease agreement is pretty tough to do without a document to back it up. Collecting damages for unpaid rent or for other items that the tenant owes, such as a water payment, are nearly impossible to prove without something in writing. Written leases need to be in place to lay out what is expected of the tenant and where responsibility lies for maintenance, snow shoveling, etc. Even with a “verbal lease,” some things still have to be in writing under lease laws in Michigan to ensure the tenant is aware of their rights, e.g. their right to terminate the tenancy if they are facing a proven situation of physical abuse. This all seems obvious, but, believe it or not, there are still landlords that fly by the seat of their pants using verbal agreements. Don’t be one of them!

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RPOA MEMBERS BUY OVER $36,000 IN PAINT & SUPPLIES AT 30% DISCOUNT Over the past six months, RPOA members have spent over $36,000 at Sherwin Williams buying paint and paint supplies—at 30% off! Members save 35% on applicators! Are you getting the savings you deserve as a member of the RPOA? Do you have your Sherwin Williams RPOA card? If you don’t have a card, please contact the RPOA office and we’ll get you one right away! Don’t miss out on this valuable RPOA benefit. Here’s a link to all the discounts RPOA members receive as a member of the RPOA. https://rpoaonline. org/contractors-vendors/exclusive-rpoa-memberdiscounts/discounts/

September/October 2014 MICHIGAN LANDLORD 17

RENTAL PROPERTY OWNERS ASSOCIATION

LEGISLATIVE NEWS SQUATTER BILLS PASS SENATE The Michigan Senate passed a package of bills dealing with squatters in residential property. The bills (HB 5069, HB 5070 and HB 5071) aim to help the owners of homes where people have set up camp for free. “Squatting is becoming far more sophisticated,” said Rep. Kurt Heise (R-Plymouth), the sponsor of the bills. He said that squatters are referencing lists of foreclosed or vacant homes to pick a place. In addition, he said there were advocates out there telling the squatters how to use the legal system to their advantage in the situation. “Squatters, modern squatters, and the well-educated squatter is using those rules to their advantage,” Heise said. The bills provide that a property owner’s actions would not unlawfully interfere with an occupant’s possessory interest if the occupant were trespassing and allow a property owner to enter premises by force if the occupant took possession of the premises by force or trespass. The RPOA of Michigan (RPOA-M), a supporter of the bill, worked closely with Rep. Heise on the language of the bill to ensure its effectiveness. Clay Powell, Director of the RPOA-M, says that the organization is pleased with the final language in the bill. The bill will give property owners the authority and right to remove squatters from their properties without having to evict them as if they were a tenant. Powell cautioned property owners not to confuse this new law and squatters with additional persons moving into a rental unit. The law does not give a landlord the authority to throw out persons that have unknowingly moved into a rental unit with another tenant. “If a tenant is in violation of their lease by allowing additional persons to move in them without the knowledge and/or consent of the landlord, landlords must pursue action against the legal tenant to either resolve the situation or through eviction for violation of the lease.”

GOVERNOR SIGNS BILL HANDING LAND BANK LEADERSHIP TO MSHDA Gov. Rick Snyder issued an executive order placing the administration of the State Land Bank under the Michigan State Housing Development Authority (MSHDA).

FROM P. 9 The land bank, known formally as the State Land Bank Fast Track Authority, will cease to have a board of directors and executive director. The person who had been serving as interim director, Michel WILDMAN, was an executive on loan. She will return to MSHDA in her former capacity, according to the administration. The Land Bank’s board chair and vice chair positions were vacant, according to its website, and three other board positions included state Treasurer Kevin CLINTON, Mike FINNEY, president and CEO of the Michigan Economic Development Corp. (MEDC), and MSHDA Executive Director Scott Woolsey. Clinton or his designee already serves as chair of the MSHDA board. No jobs were lost as a result of the executive order, according to Snyder spokesperson Dave Murray. The land bank will continue to exist as its own entity within MSHDA, and its functions and duties will operate independently of MSHDA and its funds will be accounted separately from state and MSHDA funds, according to the Governor’s office. The state land bank was created in 2003 and works to promote the revitalization of neighborhoods and communities in Michigan, according to the Governor’s office. It encourages economic growth and community safety through blight removal projects, acquisition and sale of public property and support of local land bank operations. Recent projects the state land bank has been involved with include a jointly created entity with MSHDA that will house Michigan’s first statewide EB-5 visa center to attract foreign investment (See “Feds Approve Statewide Program To Attract More Foreign Investment,” 4/8/14). But the land bank also drew criticism from some for how it’s overseen the redevelopment of the state fairgrounds in Detroit. Just a year ago, Snyder transferred the land bank to MSHDA from the Michigan Strategic Fund. Source: MIRS

WHERE LANDLORDS GO FOR HELP

LEGISLATIVE NEWS SUPREME COURT RULING: LAND CONTRACT HOLDERS AND LANDLORDS NOT LIABLE FOR NUISANCES Several months ago we reported that the outcome of a case coming before the Michigan Supreme Court was critical for landlords and land contract holders. In the case, SHOLBERG v TRUMAN, the plaintiff argued that a land contract holder should be liable for a nuisance on the premises. A lower court found that land contract holders could be held liable. The case centered on a woman dying when her car struck a horse that was standing in the road. The horse was owned by the land contract buyer. (More…) The lower court held that the land contract seller was also liable. In short, the Michigan Supreme Court reversed the lower court’s decision and found that a land contract holder cannot be liable for a nuisance on the premises where that land contract holder does not have control or possession of the premises. This case was important to the rental industry due to its implications and the liability landlords may have faced regarding their tenants’ actions. The resulting Supreme Court’s ruling clearly prevents landlords for being held liable for their tenant’s wrongful actions or negligence. The RPOA provided financial support for an amicus brief in support of the defendant. Click here for the full opinion. http://publicdocs.courts.mi.gov:81/opinions/ final/sct/20140610_s146725_71_01_sholberg-op.pdf AROUND THE NATION

BILL PENDING IN U.S. CONGRESS WOULD OFFER TAX DEDUCTIONS TO HIGHLY EFFICIENT BUILDING PROPERTY OWNERS Recently introduced in the U.S. Senate is the Energy Efficiency Tax Incentives Act, S.2189. Among other things, the bill would “restore and enhance Section 179D which expired at the end of 2013 and offers a tax deduction to the owners of highly efficient commercial and multifamily buildings . . . . The bill would raise the maximum amount of deduction from $1.80 to $3.00 per square foot and would allow it to be claimed by other parties related to the project in place of the owner, such as the building designer or a commercial tenant . . . .” Source: The Energy Collective; http://theenergycollective.com

September/October 2014 MICHIGAN LANDLORD 19

Member-to-Member Discounts: $$$aving you dollars! AMERA MORTGAGE

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Free appraisal for 1 to 4 family unit homes with closed loan application for RPOA members only. Jim Riley, 616-292-4491.

Offering all RPOA members Grand Rapidsheating inspection stickers for $40.00 each and 5% discount on repair or replacement of any HVAC equipment. Over 40 years experience servicing and installing furnaces, boilers, air conditioning. 616-891-HEAT (4328)

Exclusive RPOA discount! $11/month for 96 gal. cart. Call Roy James at 616-662-6862.

BENDER MAINTENANCE & HOME IMPROVEMENT 10% off hourly rate for RPOA members. Property maintenance, general repairs; prepare property to rent at acquisition; inspection compliance for Section 8, City of Grand Rapids. General Contractor, Certified Lead Renovator, RPOA Member. 616-975-0126.

CASH FLOW SOLUTIONS INC Cash Flow Solutions special rates. Collect Bad Checks with Bounce Back Check Recovery! To access this discount, contact the RPOA office. 616-454-3385.

COMPASS REALTY SERVICES RPOA exclusive discount! Up to $500 off listing services. Call Tom at 616-550-4447.

FARM BUREAU Jeff Lamborne Farm Bureau Insurance Agency offers group discounts. Call Jeff for details. 616-447-0274.

GRAND RAPIDSCARPET & FURNITURE CLEANERS RPOA Members receive 25% discount! Call Dave, 616-453-5368.

HOME DEPOT Sign up for the Home Depot rebate program through the RPOA and receive 2%* rebate on all your purchases—no matter how small or big. Call the RPOA office to get your rebate program started now! 616-454-3385.

HUNGERFORD NICHOLS CPA’S & ADVISORS Free initial consultation on tax, accounting, and consulting services to RPOA members. Contact Sam DeMarco at 616-949-3200.

Check out the discounts being made to RPOA members only:

JACK’S LAWN SERVICE Jack’s Lawn Service is offering an exclusive discount to RPOA members only. Call for your exclusive discount today. 616-698-8616.

JB HARRISON INSURANCE AGENCY Independent agents representing several companies (Auto-Owners, AAA, Citizens, Hastings, Hartford, Pioneer State Mutual, Progressive). We do the shopping for you. Group discounts available for RPOA members. Call Mike Murphy at 616-868-0050 for details.

RMS LLC Towing of abandoned and improperly parked cars on your property. Offering to RPOA members at no cost. Free signage for RPOA members if required by State of Michigan laws. Call 616--475-9836 or email impounds@ rmsonline.us.

RPOA IS NOW A MEMBER OF PROSOURCE WHOLESALE FLOORCOVERING! Come to Prosource at 1575 Gezon Parkway, Suite A in Wyoming, and receive 50% off carpet, pad and sheet vinyl and 30% off all hard surface. Show us your membership card! Call Peggy, 616-257-3200.

JEFF LAMBORNE AGENCY

RYLEE’S ACE HARDWARE

We represent several companies. We shop them for you. Group discounts available. Call Jeff Lamborne for details. 616-447-0274.

10% discount on cash purchases. Some restrictions apply. Offer valid at our two Grand Rapidsstores, 1234 Michigan St. NE and 1205 Fulton St. West and our Walker store, 4300 Remembrance Rd. www.ryleesace.com.

MLIVE MEDIA GROUP A special exclusive offer just for RPOA members. $35 for 30 days print and online! Grand RapidsPress, Kalamazoo Gazette, Muskegon Chronicle. Includes a 5 line print ad for a single rental unit as well as appearing with expanded text and up to 8 photos on mlive.com. Call the Classified Sales Supervisor at the Grand RapidsPress. 616-254-0612.

SHERWIN WILLIAMS Sherwin Williams offers a 30% discount on paint products and also offers a 30% discount on paint sundries. Applicators are discounted 35%. Other pricing is very competitive within the local market. A special discount card must be obtained from the RPOA. 616-454-3385.

OFFICE MAX

SUN RENTALS

OfficeMax offers special discounts on expensive supplies like ink cartridges. More than a vendor or a supplier…they’re your strategic partner, your ally, your advocate. To access this discount, contact the RPOA office. 616-454-3385.

Pay cash and receive 15% off any rental, any time. 616-454-7982.

PAWLOWSKI & REENS, PLC, ATTORNEYS AT LAW Discounted fees and free limited phone consultation on any legal issue. 616-458-7800.

Associate members who would like to participate in the discount program should call Kathy Rozenek at 616-454-3385. Patronize one of our Associate members participating in the Member-to-Member Discount Program!

USA-MLS Advertise your properties on over 40 of the most popular Real Estate sites. RPOA Members $30 per month, unlimited listings. Free custom website with listings displayed, plus many more benefits. USA-mls.com. Call 1-800-206-0080.

WEST MICHIGAN PRO CLEAN WMPC is ready to handle your cleaning needs by offering move-in/move-out, carpet, postconstruction, and general commercial cleaning. RPOA members receive a 20% discount on their first cleaning. Call 616-299-1757 or email wmproclean@yahoo.com for FREE estimate.

WHERE LANDLORDS GO FOR HELP

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R.K. MECHANICAL Heating • Cooling • Gas Fireplaces Sales, Service, Installation Roy Kline Phone: (616) 677-3975 Cell: (616) 292-0462

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(616) 532-3626 or (888) 821-8846 Gerritsappliances.com

September/October 2014 MICHIGAN LANDLORD 21

RENTAL PROPERTY OWNERS ASSOCIATION

How to Handle Residents that Hoard By Lynn Dover

WHERE LANDLORDS GO FOR HELP

Resident hoarding can cause significant health and safety problems, both in the hoarderâ&#x20AC;&#x2122;s unit and in neighboring units. Hoarding can create pest infestations, mold problems, increase fire risk, interfere with entrance or exit of the unit or exceed maximum load bearing floor capacity. These things, of course, make it difficult to keep the surrounding residents happy. Hoarding is rarely selfreported by the hoarder. Instead, it is often discovered by maintenance staff making a repair in the hoarderâ&#x20AC;&#x2122;s unit or in a neighboring unit. Hoarding can create a problem for the surrounding units such as water intrusion, mold or a pest invasion in the neighboring unit. CONTINUED ON PAGE 24

September/October 2014 MICHIGAN LANDLORD 23

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WHERE LANDLORDS GO FOR HELP

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September/October 2014 MICHIGAN LANDLORD 25

RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

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2015 ANNUAL CONFERENCE PROGRAM GUIDE

2015 FREE Annual Conference & Event February 26-28, 2015 DeVos Place

FEATURING: Robyn Thompson Rehabbing & Flipping for Wealth

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Landlording On Autopilot

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Private Lending for Real Estate

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Collecting Back Rent

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Affectionately called the “Queen of Rehab,” Robyn brings a wealth of know-how on how to create a large amount of wealth rehabbing and flipping properties. Robyn’s approach works with quality housing—not just foreclosed properties needing significant repair. She’ll show you how to think about selling the property even before you buy it! Some of the biggest names in flipping give credit to Robyn for teaching them the ropes, including Than Merrill of A & E’s Flip this House. The current real estate market is perfect for what Robyn has to teach. You’ll get a chance to spend most of the day with Robyn on Thursday, February 26.

WHILE AT THE CONFERENCE, LOOK FOR OVER 30 EXHIBITORS AND THEIR PRODUCT AND SERVICE OFFERINGS! THE HOME DEPOT WILL BE ON HAND TO HELP YOU GET SET UP FOR THEIR PRO RPOA PROGRAM AND START SAVING ON ALL YOUR PURCHASES AND EARNING A 2% REBATE. WHERE LANDLORDS GO FOR HELP

CYNTHIA SCHMIDT, COLLECTING BACK RENT Tired of being left holding the bag—an empty rent collection bag? Fed up with not getting paid for damages? Cynthia is a nationally acclaimed expert at collecting rent. She’ll show you how to start the process before you even being the marketing process and start taking applications. As a landlord, Cynthia was fed up with tenants that wouldn’t pay their rent and damages and not being able to collect monies past due. She took it upon herself to change that for good and created a process to ensure she has a chance to collect every dime.

ALAN COWGILL, PRIVATE LENDING Looking for more money to do more deals? Alan is the guru on finding cash from private sources to expand your real estate empire. Learn how to negotiate the best terms and conditions to make more deals happen. If you have cash to loan, you might even find out new ways to make even more money through real estate investors.

MIKE BUTLER, LANDLORDING ON AUTOPILOT When Mike first became a successful landlord in Louisville, Kentucky, he thought to himself, it can’t be this hard and this much work, can it? After coming to the conclusion that being a landlord didn’t have to be as difficult as he was making it, he decided to create an approach that made landlording a breeze. Mike will share his Landlording on Autopilot system and various approaches to tenant management and bookkeeping that will save you hours and headaches.

Sponsored by: Window World • Koetsier Realty LLC • Culver CPA Group Landlord’s Supply LLC • DTE Multifamily Program

2015 ANNUAL CONFERENCE EVENT SCHEDULE THURSDAY, FEBRUARY 27, 2014 10:00 a.m. – 12:00 p.m.

Jeffrey Taylor (aka Mr. Landlord), Take Total Control of Your Rentals (Part 1)

12:00 p.m. – 1:00 p.m.

Lunch On Your Own, (Lunch Vendor Onsite, 2nd Floor, Near Escalator)

1:00 p.m. – 4:00 p.m.

Jeffrey Taylor (aka Mr. Landlord), Take Total Control of Your Rentals (Part 2)

4:00 p.m. – 5:00 p.m.

Welcome Cocktail Reception, River Overlook Area

FRIDAY, FEBRUARY 28, 2014 7:30 a.m. – 5:00 p.m.

Registration, North End of River Overlook Area

8:00 a.m. – 5:30 p.m.

Exposition Open, River Overlook Area

8:00 a.m. – 5:30 p.m.

PAC Auction, River Overlook North End

9:00 a.m. – 9:50 a.m.

First Breakout Sessions • Surviving City Rental Inspections • Working with Licensed Real Estate Professionals • How to Find & Keep Quality Contractors • Insurance: Protecting Your Valuable Assets

10:00 a.m. – 12:00 p.m.

John Hyre, Tax Free Investing, Overlook Meeting Room A & B

12:00 p.m. - 1:00 p.m.

Lunch with Exhibitors, Overlook Area (Lunch Vendor Onsite, 2nd Floor Near Escalator)

1:00 p.m. – 1:20 a.m.

RPOA Annual Membership Meeting with CARIBBEAN CRUISE GIVEAWAY!, Overlook Meeting Room A-B

1:30 p.m. – 3:30 p.m.

Shaun McCloskey, Short Sales & Wholesaling Wealth Building Strategies & Techniques, Overlook Meeting Room A & B

3:50 p.m. – 5:30 p.m.

Second Breakout Sessions • Self-Directed IRA’s • Successful Real Estate Investing: Idea-a-Minute • Determining How Much to Offer to Maximize Profit • Technology for Real Estate Investors

SATURDAY, MARCH 1, 2014 7:30 a.m. – 1:30 p.m.

Registration, North End of Overlook Area

8:00 a.m. – 6:30 p.m.

Exposition Open, Grand Gallery Exhibitor Hall

8:00 a.m. – 3:30 p.m.

PAC Auction, River Overlook North End

8:00 a.m. – 9:50 a.m.

Breakout Sessions • Fair Housing: How to Stay Out of Hot Water • Technology for Landlords • Don’t Do What I Did! Avoid Making Big Mistakes • Fixing to Flip or Rent: How Much is Enough

9:50 a.m. – 10:00 a.m.

Official Welcome & Main Sponsor Presentation – David Phillips

10:00 a.m. – 12:00 p.m.

Chris McClatchey, Power of Zero: Developing a Multi-Million Dollar Real Estate Portfolio, Overlook Meeting Rooms A & B

12:00 p.m. – 1:00 p.m

Lunch with the Exhibitors, Overlook Area (Lunch Vendor Onsite, 2nd Floor, Near Escalator)

1:00 p.m. – 1:30 pm.

EXHIBITOR PRIZE GIVE-A-WAYS

1:30 p.m.

PAC Auction Closes

HOUSE GIVE-A-WAY! During Presentation, Overlook Meeting Rooms A & B

(Must be in the room to win.)

WHERE LANDLORDS GO FOR HELP

Sponsored by: Window World • Koetsier Realty LLC • Culver CPA Group Landlord’s Supply LLC • DTE Multifamily Program

WHERE LANDLORDS GO FOR HELP

September/October 2014 MICHIGAN LANDLORD 31

~14 Ideas ~

RENTAL PROPERTY OWNERS ASSOCIATION

for Zero Resident Turnover By Brent Williams

It has been said that there will always be resident turnover at some point. Well, this got me thinking: What would be the steps to approach zero resident turnover? Obviously, zero resident turnover is not actually possible, but if we set our goal at the best possible outcome, we are more likely to get farther along than if we try to barely move the needle. So let’s have some fun brainstorming how to move the dial towards zero resident turnover!

Stop Pushing Residents Out of the Door 1. Customer Service and Maintenance. This is obviously step #1. If your residents have lingering maintenance requests, or if your customer service is not up to par, then you will easily drive them from your community. 2. Long-term Lease Contracts. Create alternatives to the standard one-year lease by offering longer term leases. Why do we constantly make our residents re-evaluate their living situation year after year? 3. Apply Concessions Immediately. Obviously, concessions are not recommended, but if they must be given, have it applied immediately to first months of lease. Therefore, the lease renewal isn’t coupled with a large increase in rent purely because of the concession expiring. 4. Release the Bad Apples. With your residents consolidated in such a small area, it is easy for one nuisance neighbor to make life miserable for several others, such as noise disturbances, trash, and other issues. Instead of placating these bad residents, we need to have good solutions to actually enforce our leases and drive these residents out the door. The key? Document, document, document!

5. Rent Increases Coupled With Benefit Increases. We obviously want to capitalize on market conditions that allow for higher rents. But honestly, we often get very lazy when it comes to the increase, with the mentality of “Take it or leave it, we’ll find someone else to lease your apartment.” But that means that although you have gotten your increase, you have to offset it with the turnover cost. And besides, residents don’t buy the market adjustment “sale”. Yes, if they move out they will get similar rent elsewhere, but

then at least they get a freshly painted apartment with possibly new carpet, etc. So if we are giving big increases, why not include some benefits as well to soften the blow? By escaping the turnover cost, you can easily afford some tantalizing renewal benefits if they take the large rent increase.

Inspire Residents to Actually Want to Stay 6. Establish Emotional Ownership. The more effort you put into something, the more likely you are to stick with it. A great example of this is Google+. So many people will not want to join Google+ because they have already established their social circle on Facebook, as well as putting so much effort into their profile. When it comes to renting, however, customizing and making the apartment their “home” is a bit more difficult, although renewal upgrades could be the sell here. 7. Create a “Sense of Community.” This is another factor that moves from pushing out residents through bad service to making them actively want to stay. Human connections are incredibly powerful, so we should be analyzing more direct strategies to foster them. 8. Long-Term Resident Benefits. Create a system where longer-term residents acquire special privileges, rights, etc the longer they live at your property. 9. Resident Referrals. Not only do resident referrals provide new leases, but they are inherently resident connections right from the start. Plus, having friends in the community essentially means you have an “undercover sales force”. If Jack’s friend is thinking about moving, but Jack’s lease doesn’t expire for seven months, he will actively try to convince his friend to renew! —continued on p. 23

WHERE LANDLORDS GO FOR HELP

September/October 2014 MICHIGAN LANDLORD 33

RENTAL PROPERTY OWNERS ASSOCIATION

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WHERE LANDLORDS GO FOR HELP

~14 Ideas ~

for Zero Resident Turnover

transient by requiring that they have stayed at their previous residence for longer than X years. Also, you might increase income requirements to lower the chance of default.

Problem-Solve To Help Residents Stay 14. Helping Residents Who Are on Hard Times. In a time of high unemployment, we will have situations where residents want to stay but simply can’t because of finances. We can help in a variety of different ways:

CONTINUED FROM P. 21

Target Prospects Who Will Become Long-Term Residents 10. Targeted Niches. A resident will more likely stay at a community that ties in with their lifestyle in a focused way. For example, going beyond just “pet friendly” to a dog paradise would create multiple connection points beyond just having a “sparkling pool” and granite countertops. For example, an unbelievable dog park will actually inspire someone to say, “Duke LOVES the dog park – I would hate to take him away from that.” 11. Targeted Resident Traits. Some residents are predisposed to living at one place for long periods of time. Effectively targeting these types of residents can naturally lengthen the stay for the average resident. (Targeted traits could be professions, such as teachers potentially, and personality traits, such as those who don’t like change in their life). 12. Target Current Long-Term Residents From Other Communities. If someone is currently a long-term resident somewhere else, that means they have the personality type to stay at your community for a long time as well. In a nontargeted way, you could market special benefits to those that have rented/owned their current residence for over five years.

Exclude Prospects Who Will Not Likely Be Long-Term Residents 13. Tighten Up Resident Approval Process. Not only do you want to proactively reach out to those who could be long-term renters, but you also want to weed out those who surely won’t. Obviously, do not do anything that violates Fair Housing, but restrict residents who are obviously more

• Roommate Finder — Create a program that helps residents find roommates to help spread the cost of rent among multiple people. • Job Finder — We already have Preferred Employer Programs to get referrals from companies, but why not reverse the situation? Work with companies to establish a job board and special lead-ins for residents who have lost their job? Also, provide events that will help with finding a job, such as a resume development workshop. •, MIscellaneous — Your community should have a list of every reason someone decided to move. For each reason, there should be a way that you are actively countering that.

Bonus 15th and 16th Steps 15. Reward The Right Actions. Currently, we congratulate ourselves on new leases and give bonuses just for that purposes, but should we be celebrating what is really a fix to an earlier problem (the loss of the resident in the first place)? If you reward new leases rather than renewals, you are setting the culture of your company to say that leasing is more important than resident retention. 16. Train for Resident Retention Success. Raise your hand if you have had sales training as a leasing consultant. Now raise your hand if your training on community building and resident retention concepts were as in-depth as the sales training! Not too many of you, huh? If we want to be successful on the steps listed above, we need to make them a priority by giving them enough resources, such as training, funding, and time! Brent Williams is Chief Insider of Multifamily Insiders, the largest social network in the world for multifamily professionals. His background includes both property management and supplier, and he writes on all facets of the multifamily industry, although his focus lies in resident retention. For more information, visit www. multifamilyinsiders.com. Reprinted from AOA News and Buyers Guide, May 2014 issue. September/October 2014 MICHIGAN LANDLORD 35

RENTAL PROPERTY OWNERS ASSOCIATION

How to Handle Residents that Hoard By Lynn Dover

CONTINUED FROM P. 17 Not just a matter of poor housekeeping, hoarding is believed to be a form of anxiety disorder and/or obsessive-compulsive disorder (OCE). Depression can also be a component.

It should be recognized that even if the hoarder meets minimum health and safety standards, the unit may not be in an “optimal condition.”

HOARDING IS LOOSELY DEFINED AS: • The acquisition of a large number of possessions that appear to be useless or of limited value

Hoarders may not recognize the severity of the problem or be equipped to resolve the hoarding problem on their own. Some hoarders believe their hoarding is beneficial because they are savers, not wasters. Others deny that any problem exists. As a result, it may be helpful to involve a neutral third party such as a fire department, code enforcement or health inspector who can inspect the unit and identify code or other health and safety violations.

• Living spaces cluttered so they can no longer be used for their intended purpose and • Causing significant distress or functional impairment. Hoarding items may be valuable collectibles or trash or anything in between. Units can be literally packed floor to ceiling and wall-to-wall, with just a small path for movement in the unit. Because hoarding is caused by one or more psychological disorders, compulsive hoarders are generally considered disabled. Federal and state fair housing laws protect people with disabilities, including mental disabilities. Fair housing advocates contend that before eviction of a mentally disable resident whose disability is causing the person toe violate the terms of the lease or rules, good faith efforts must be made to accommodate the resident’s disability. This generally requires that the resident be given an opportunity to come into compliance so that he or she can remain a tenant. EXAMPLES OF POTENTIAL ACCOMMODATIONS • Setting scheduled unit re-inspections and establishing goals that the resident must meet • Providing the resident with a list of community resources that can assist the hoarder • Working with a fair housing and/or mental health advocacy group assisting the resident to develop a plan to bring the unit into compliance When dealing with a hoarding situation, the focus should be only on solving legitimate health and safety issues rather than attempting to achieve ideal housekeeping habits. 36

TERMINATION OF THE TENANCY MAY BE POSSIBLE IF: • The person is a clear, direct and immediate threat to the health and safety of other community residents • There are serious health and safety issues that cannot be mitigated through accommodation • The resident has caused serious monetary damage to the unit and will not reimburse the landlord for the cost to repair the unit • The hoarder will not engage in the accommodation process or cooperate to bring the unit back into compliance ACCOMMODATION AGREEMENT Even if health and safety issues are initially resolved, a hoarding resident may “slip” and re-hoard again in the future. Therefore, a written “Accommodation Agreement” should be considered, providing periodic unit inspections and a specified time period for correction of future health and safety issues. No two situations are alike. Each hoarding situation requires analysis based on the facts of the particular case. It is advisable to see legal advice before taking any action to terminate a tenancy if compulsive hoarding may be involved. Lynn Dover is a contributor to propertymanager.com. Reprinted with permission of the Wisconsin Apartment Association News. Reprinted from AOA News and Buyers Guide, May 2014 issue.

WHERE LANDLORDS GO FOR HELP

Start Earning Your Rebate!

RPOA Snags National Discount with Home Depot RPOA members can start receiving a 2% rebate* on all purchases made through Home Depot!

This rebate is on top of any other discount or sale price, including contractor rates. Itâ&#x20AC;&#x2122;s simple to get started. Use the form inserted into this issue of the Michigan Landlord to sign up, and fax it to the RPOA office at 616-454-6163. After we process the form, a person from Home Depot will contact you to obtain additional account information. To ensure that you are credited for all purchases, a Home Depot account number, debit card or credit card number (or all three) will be attached to your rebate account. Every time you use one of these payment methods, you will earn a 2%

rebate*.

Rebate checks are mailed every six months.

If you have any questions, contact a staff member at the RPOA office at 616-454-3385.

*2% rebate is earned on annual purchases of $1,250 or more.

September/October 2013 MICHIGAN LANDLORD 37 September/October 2014 MICHIGAN LANDLORD 37

RENTAL PROPERTY OWNERS ASSOCIATION

PASS THIS ON TO TENANTS!

COMPOSTING RULES IN GR WHAT IS COMPOST? Most simply, compost is decomposed organic materials used as a soil conditioner and fertilizer, also known as humus. Compost is known as“gardener’s gold” because it improves soil structure, retains water, encourages root growth, aerates soil and releases nutrients slowly. WHAT ARE THE BENEFITS OF COMPOSTING BEYOND GARDENING? • Recycles kitchen and yard waste(approximately 30% of household waste) • Reduces landfill waste • Reduces use of chemical fertilizers that harm the environment CAN I COMPOST IN THE CITY OF GRAND RAPIDS? Yes! You can compost on the premises of an occupied residential dwelling if you follow a few simple rules. 1) Place composting materials in a fully enclosed, commercially manufactured bin. 2) Place the bin(s) in the rear yard only. 3) Place only materials identified below as acceptable for composting in the bin(s). 4) Keep the bin(s) tightly covered, except when depositing and removing materials. Using the “pile” method or having exposed materials is not allowed. Bin placement is restricted to your rear yard. Placing animal waste, bones, meat, oils,fat, cooked foods, and other materials identified below under “NO” are strictly prohibited. WHAT WILL HAPPEN IF I DON’T COMPLY WITH THE CITY’S COMPOSTING RULES? The City desires to encourage composting and promote sustainable living,while preserving quality of life in our neighborhoods that is free from rodents,animal harborage and uncontrolled odors. Failure to follow the Residential Composting rules outlined above is a violation of City Code. Your property could be cited for such violations resulting in required removal of your compost materials and possible fines.

WHAT MATERIALS ARE ACCEPTABLE FOR COMPOSTING? To avoid animal harborage nuisances and odors, materials to be composted must be selected carefully. Items under “YES” can be placed in your compost bin, while items under “NO” are prohibited. YES Yes Yes Yes Yes Yes Yes Yes

Fruit and vegetable peelings. Lettuce leaves, egg shells. Coffee grounds, tea leaves/bags Grass and hedge trimmings Leaves (shredded, if possible) Spent flowers and garden clippings Young weeds without seeds.

NO NO NO NO NO NO NO NO

Cooked foods Grease, oils, fats Meat, fish, bones Dairy products, breads Animal waste, cat litter Diseased plants Invasive weeds, weeds with seeds

HOW DO I CONTROL ODORS? Having the correct balance of “green” (fresh grass clippings, fruit/ vegetable peelings) and“brown” (dry leaves/plants) materials is important for decomposition and odor control. The green materials have a high nitrogen content that causes the mixture to heat up and decompose more quickly. Turning or mixing the materials accelerates the rate of decomposition. A ratio of 1/3 green to 2/3 brown is a good mix.

WHERE CAN I PURCHASE A COMPOST BIN? Compost bins (also called composters or compost digesters) are available online and at local home improvement stores. They come in a variety of styles and price ranges. Reprinted from Heritage Herald, May/June 2014 issue.

Advertise in Michigan Landlord! Contact RPOA Ad Salesperson, Kathy Bartnick at 616-318-3503 to reserve your ad space today!

WHERE LANDLORDS GO FOR HELP

procedures & prices RPOA & REI DECISION REPORT REQUEST PLEASE FOLLOW THE PROCEDURES BELOW WHEN REQUESTING DECISION REPORTS FROM THE RPOA: ❑❑ When possible, please use the RPOA Decision Report Request Form and fax it to the RPOA office at 616-454-6163 OR send us an e-mail with the same information to: contactrpoa@rpoaonline.org. (DO NOT fax applications to us.) ❑❑ You must have the following minimum information to run a report: • First and last name of prospective tenant(s).

A Special Offer for KARHA, MARA and RPOA MEMBERS

$35 for 30 days print and online!* Kalamazoo Gazette, Muskegon Chronicle and/or Grand RapidsPress.

Fill your vacancies with Mlive Media Group print and online solutions!

• Current address of the prospective tenant, including street with number, city, state and zip code. • Social Security Number. • Date of Birth • Your RPOA member #, name of membership, and an indication on how you would like the completed reports handled, i.e. faxed back to you (if so, provide the fax number), or you will call the office for the report, or you will pick up the report in person. ❑❑ WAIT AT LEAST THREE (3) HOURS before contacting the RPOA office for your reports. Though we can sometimes get reports done quicker, there are many things out of our control that can interfere with this process, including but not limited to credit reporting agency computer problems. • Contact us for your decision report results promptly. For reasons of confidentiality we shred all reports after 3 days.

OTHER GUIDELINES FOR DECISION REPORTS:

*Includes a 5 line print ad for a single rental unit as well as appearing with expanded text and up to 8 photos on mlive.com Properties with more than 10 units are not eligible for this offer.

• You cannot run a decision report on yourself. • You can only run a decision report on another family member if you are doing a business transaction with that person that is related to real estate or rental property. • You cannot run a decision report for another business person, real estate agent or landlord. Your credit reporting privileges through RPOA extend only to your personal business. • You can only run a decision report for a legitimate business transaction where credit is required. These transactions include owner financed real estate, leasing, collections and land contracts. • You must follow all the rules and regulations of the Federal Fair Credit Reporting Act. A copy of this Act is available at the RPOA. • You must give a person denied housing or financing because of information contained in a credit report a notice to that effect. Examples of notices that you can use and what needs to be included in the notice can be found in the RPOA office; or log on to the RPOA website (www.rpoaonline.org) and go to Tenant Screening.

REPORT PRICES (AS OF JANUARY 15, 2014) Single: $14.95 Double: $24.95 Criminal Report: $7.00 each

September/October 2014 MICHIGAN LANDLORD 39

Upcoming Seminars and Events HELPING REAL ESTATE INVESTORS BECOME MORE SUCCESSFUL Sept. 11, 2014 • 6:00 p.m. to 8:00 p.m.

Sept. 23, 2014 • 10:00 a.m. to 12:00 p.m.

MARKETING & SCREENING FOR PAYING TENANTS - CE, PHP

FOUNDATIONS OF BUYING, LEASING AND SELLING RENTAL PROPERTY - CE

Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director

Con-Ed Approved Class for Realtors. Earn 2 hours credit! Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director

Clay presents a thorough look into getting your apartments rented by using different marketing strategies. This course covers the essentials needed to find and attract the best possible tenants. The participants will learn a wide variety of marketing strategies and methods for screening tenants to obtain the greatest profit.

The class will provide a complete overview of the entire rental business—from buying a property through management and selling. Some of the points to be covered in the course include:

Sept. 18, 2014 • 2:00 p.m. to 6:00 p.m.

RETIRING FROM YOUR REAL ESTATE CAREER IN STYLE: EXIT STRATEGIES FOR THE REAL ESTATE INDUSTRY Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Mark Andresky, CExP, ABI, CBI The Rental Property Owners Association (RPOA) is proud to host Mark Andresky, Certified Exit Planner, Real Estate Broker and Investor, who will share proven strategies to turn your real estate investments and business into a reliable stream of income that will last a lifetime. It’s never too early or too late to think about how you’re going to build wealth and plan for retirement. Real estate professionals can benefit immensely by understanding how their clients can best benefit from different real estate investment and exit strategies. Starting early and developing the right plan can produce the results you or your clients need to retire in style! The course will include, but not be limited to: • Determining when and how much you’ll need to retire • Maximizing your wealth from your real estate business and investments • Reinvesting real estate profits to increase wealth • Choosing the best transition option(s) • Reducing or eliminating taxes and expenses • Avoiding costly mistakes and leaving money on the table • Protecting your assets and minimizing risk • Passing on your wealth and leaving a legacy • Building a roadmap to success & security.

To be held at: RPOA Office, 1459 Michigan St. NE, Grand Rapids, MI 49503 Cost: $49/$69

• Proper due diligence before buying or turning your existing home into a rental property. • Federal, state and local regulations regarding rental property ownrship and management. • Methods for effective management, including tenant screening, dealing with problem tenants, evictions and more. • Setting rental rates and effectively advertising rental property. • Proper forms to use for leasing. • What to do before selling a rental property.

Sept. 30, 2014 • 10:00 a.m. to 12:00 p.m.

PROTECTING YOUR ASSETS - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Bill Reens, Attorney at Law As a landlord, do you know if you’re protected from vandalism, damage from burst pipes, or injuries resulting from environmental sources such as mold? Will your personal assets be protected from claims and creditors in a financial crisis? If you would like to know the answers to these questions, or have other questions about your legal rights and responsibilities as a landlord, this course is for you! Join Bill as he explains how to best protect your valuable assets from claims, lawsuits, and other un-doings.

Oct. 2, 2014 • 6:00 p.m. to 8:00 p.m.

MANAGING YOUR BOTTOM LINE - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours credit! Presented by Duane Culver, Certified Public Accountant Getting into real estate investment can be easy…keeping the financial records necessary to manage expenses, cash flow, rent collection and tax preparation for that investment can be challenging. Duane will teach the fundamentals of financial recordkeeping, cash vs. accrual, and a lot more.

continued

All events are held at the RPOA office unless otherwise noted. Cost: $25 Gold members, $35 Silver members and non-members unless otherwise noted.

CE = CERTIFIED COURSE FOR REAL ESTATE CONTINUING EDUCATION PHP = PROFESSIONAL HOUSING PROVIDER CREDIT

! s u n i o J

REAL ESTATE INVESTORS (REI) FRIDAY MORNING BREAKFAST ROUNDTABLE Held every Friday, 8–9 a.m. Cheshire Grill / 2162 Plainfield NE, Grand Rapids, MI

REAL ESTATE INVESTING KNOW-HOW FOR REALTORS® AND THEIR CLIENTS Do you want to become better at selling and helping your clients buy residential rental and real estate investment property? Residential investment property is one of the hottest games in town. This 6-hour real estate continuing education course is an excellent resource for those real estate professionals looking to hone their skills or learn the ropes. This two-part course includes in-depth training on buying and selling residential rental and real estate investment property and how to finance deals through unconventional financing techniques. The course also includes updates on Dodd-Frank Act rules & regulations.

latest laws and regulations regarding seller financing, i.e. the Dodd-Frank Act. This 2-part class is held at: GRAR Auditorium, 660 Kenmoor Ave SE, Grand RapidsMI. Registration Fee:

$49.99 GRAR & RPOA Members $69.99 Non-Members

Oct. 16, 2014 • 6:00 p.m. to 8:00 p.m.

PART 1 — 10:00 a.m. to 12:00 p.m.

TAX STRATEGIES FOR MAXIMUM PROFIT - CE, PHP

Buying and Selling Residential Real Estate Investment Properties, 2 Hours CE

Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Duane Culver, CPA & Investor

Buying and selling residential rental and investment real estate can be very profitable for you and your clients but is different than owner-occupied transactions. Learn the correct way to handle real estate deals and how to avoid complications and difficulties while saving money in the process and improving your clients return on investment. Tom Koetsier, experienced real estate investor, broker, landlord and GRAR member will eliminate the mystery from and smooth the way for your rental and real estate investment clients’ deals. Through his class you will learn about the current market and how to make deals more profitable as you negotiate inspections, title work, zoning, property maintenance regulations, transfer taxes, and other important real estate investment transaction nuances.

Duane discusses the insight and techniques needed to reduce and potentially eliminate real estate investment taxes.

12:00 Noon – 1:00 p.m. Bag Lunch (Provided) Part 2 — 1:00 p.m. to 4:00 p.m. Building Wealth through Creative Seller Financing, 4 Hours CE Legal If you’re in real estate—whether you’re a licensed real estate professional, real estate investor or landlord—understanding seller financing is huge. In today’s market, not everyone can obtain conventional financing. Some buyers don’t want to or can’t deal with banks, and some prefer different terms and conditions than those offered by conventional sources. Seller financing, including land contracts, leases with options, seller held mortgages, etc., is a way to satisfy the needs and wants of different buyers. Brian Zeemering, real estate broker, investor, past mortgage broker and GRAR member, will share his wealth of knowledge on putting together land contracts, leases with options, and more. He’ll also cover the

Oct. 23, 2014 • Time TBA

BUILDING WEALTH WITH SELF-DIRECTED IRA’S AND REAL ESTATE - CE Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Joedy Patrick, Real Estate Broker, Real Estate Investor, Executive VP of Qwest IRA, Inc. Learn how to use self-directed IRA’s to finance real estate deals while increasing profits and avoiding taxes.

continued on page 32

Upcoming Seminars and Events CONTINUED FROM PAGE 31 Oct. 30, 2014 • 6:00 p.m. to 8:00 p.m.

EVICTIONS MADE SIMPLE - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours legal! Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director

All events are held at the RPOA office unless otherwise noted. Cost: $25 Gold members, $35 Silver members and non-members unless otherwise noted.

It is important to understand the rules and laws of real estate investment, whether you are a current owner or considering entering the market! There are many pitfalls and problems that can arise in real estate investment: learn how to avoid complications and difficulties while saving money in the process.

Ready to pull your hair out with a difficult or non-paying tenant? Clay will show you how to quickly (and legally) evict troublesome tenants.

Join Tom Koetsier, RPOA Board President and experienced real estate investor and broker, as he eliminates the mystery from purchasing real estate. Through his class you will learn how to KEEP IT LEGAL AND PROFITABLE as you negotiate inspections, title work, transfer taxes, and other important real estate transactions.

Nov. 4, 2014 • 10:00 a.m. to 12:00 p.m.

Don’t lose time or money by not being properly educated about investing!

FINANCING 101: THE BASICS - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Brian Zeemering, Licensed Real Estate Salesperson, Mortgage Broker & Investor There is a lot of lingo in the financing business. Brian Zeemering helps you understand what it means and how to secure and manage financing.

Nov. 6, 2014 • 6:00 p.m. to 8:00 p.m.

REAL ESTATE INVESTMENT ANALYSIS - CE Con-Ed approved Class for Realtors. Earn 2 hours! Presented by Russ VandenToorn, Realtor, Property Manager & Investor Do you know all the different kinds of returns from investment in real estate and how they are calculated? This course will help both realtors and investors to understand, analyze, and complete the key elements of the Annual Property Operating Data form.

Nov. 13, 2014 • 6:00 p.m. to 8:00 p.m.

UNDERSTANDING LEASES & CONTRACT LAW Con-Ed Approved Class for Realtors. Earn 2 Hours! Presented by Bill Reens, Attorney at Law Thinking of writing your own lease? Confused about the terminology used on a lease? Bill Reens will provide a foundation of the requirements for leases in the State of Michigan. Participants learn about what can and can’t be in a lease, how tenants can walk away from a lease, and more.

Dec. 9, 2014 • 10:00 a.m. to 12:00 p.m.

BUYING & SELLING REAL ESTATE FOR PROFIT Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Tom Koetsier, Real Estate Investor & Broker

CE = Certified course for real estate Continuing Education PHP = Professional Housing Provider credit 42

Dec. 11, 2014 • 6:00 p.m. to 8:00 p.m.

LANDLORD-TENANT LAW: AVOIDING FINES & PENALTIES Con-Ed Approved Class for Realtors. Earn 2 Hours! Presented by Bill Reens, Attorney at Law There’s more to managing rental property than meets the eye. Bill Reens, Attorney at Law, will present Michigan landlord-tenant laws in an easy-to-understand session.

WHERE LANDLORDS GO FOR HELP

Ad-o-Grams APPLIANCE SALE Refrigerators, ranges, washers & dryers. Nice selection, all guaranteed, and delivery service. Modern Appliance, 809 College NE, 616-4567039.

CARPET CLEANING RPOA members receive 25% discount. Premium carpet care at affordable prices. Call RPOA member Dave Bigelow at 616-822-4710 or Grand RapidsCarpet and Furniture Cleaners at 616-4535368.

EVICTION CLEAN-UP AND DUMPSTER RENTALS

Grand Valley Health Plan ranks

in the Nation! • Consumer Experience • Prevention • Treatment According to the U.S. News & World Report/NCQA America’s Best Health Plans 2008 rankings. “America’s Best Health Plans” is a trademark of U.S. News & World Report.

Grand Valley Health Plan is proud to be the only commercial health plan in Michigan to rank in the top 10 honor roll in the nation.

Never have stolen tags again! Clean-ups starting at $35. Or rent one of our 10-, 15-, or 20-yard dumpsters for your remodel or clean-ups. Starting at $175 including dump fees! Call Executive containers at 616-862-5246.

FOR SALE BY OWNER: Rental Property near GVSU downtown. 214 Gold Ave, NW. 3 bdrm, 2 Story Front Apt and 1 bdrm Back Apt. Substantial improvements. For details, pictures and financial information go to: http:// andyatwood.com/214-gold.html. Phone 616-9019816. Price: $85,000.

SOS HOME REHAB LLC Repair/remodeling for management companies/ homeowners. Inspections to evictions to move-in ready apartments. Certified in HVAC, lead and mold. Call Shane Sarver, 616-446-4899; email: ssarver@ soshomerehab.com. Licensed, insured, efficient.

Log onto www.ncqa.org for a complete list of rankings.

September/October 2014 MICHIGAN LANDLORD 43

RENTAL PROPERTY OWNERS ASSOCIATION

BOARD OF DIRECTORS President: Bert Heyboer (616) 719-0819 E-mail: bertheyboer@gmail.com President Elect: Tom Koetsier (616) 550-4447 E-mail: tkoetsier@grar.com Secretary: Mark Troy (616) 452-4200 Email: mtroy@compass101.com

1459 Michigan St. NE / Grand Rapids, MI 49503 Phone:

(616) 454-3385 / Fax: (616) 454-6163

E-mail:

contactrpoa@rpoaonline.org

Web Sites:

http://www.rpoaonline.org

www.MIrentalguide.com

Office Hours:

Mon 8:30 AM-5:30 PM

Tue–Thu 9:00 AM-5:30 PM

Fri 9:00 AM-5:00 PM

The Rental Property Owners Association/Real Estate Investors (REI) is a nonprofit business association whose mission is to support and facilitate its members’ success in real estate investment and management.

Lead-Safe Class Still Important! Any landlord that hasn’t completed their course in lead-safe work practices required by the EPA still has the opportunity to do so. Check out the listing of upcoming courses at www.rpoaonline.org.

Treasurer: Mark Andresky (616) 855-1979 E-mail: mark@performanceba.com

OTHER BOARD MEMBERS: Kathy Dennison Adrianse (616) 257-9577 E-mail: kdennison@grar.com Steve DeKoster (616) 776-0572

E-mail: sdeko@aol.com

Allison Koetsier (616) 633-9445

E-mail: akoetsier@compass101.com

Keith Littlepage (616) 669-8809

E-mail: successinvests@att.net

Phil Mol (616) 458-8200

E-mail: philmol@grar.com

David Phillips (616) 745-6683

E-mail: davidrphillips@charter.net

Kim Post (616) 891-0500

E-mail: kim@postandassociates.com

John Potter (616) 318-1549

E-mail: jpotter@grar.com

Russ VandenToorn (616) 965-2300

E-mail: russ@rentupm.com

Brian Zeemering (616) 608-0940

Email: bzeemering@gmail.com

Past President: Ann Siebelink-Finkler (616) 437-2164 E-mail: annfinkler@gmail.com

RPOA STAFF: (616) 454-3385 Clay Powell, Director Ava Grover E-mail: avag@rpoaonline.org Kathy Rozenek E-mail: kathyr1@rpoaonline.org Heather Vandenbos E-mail: heatherv@rpoaonline.org

RPOA DIRECTOR & MAGAZINE EDITOR: Clay Powell (616) 454-3385

AD SALES: Kathy Bartnick (616) 318-3503

RPOA ATTORNEY: William Reens (616) 458-7800 44

E-mail: clayp@rpoaonline.org

E-mail: kvallie@aol.com

MICHIGAN

LANDLORD THE PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION 1459 MICHIGAN STREET NE, GRAND RAPIDS, MI 49503 PHONE: 616.454.3385 FAX: 616.454.6163 CHANGE SERVICE REQUESTED

PRSRT STD U.S. Postage PAID

Grand Rapids, MI 49503

Permit No. 553