MICHIGAN
LANDLORD JULY/AUGUST 2015
www.rpoaonline.org
FULL CREDIT REPORTS FOR
FREE!
RPOA NOW OFFERS NEW SERVICE!
ALSO FEATURING: Want to Save Money on An Eviction? A Fair Housing Complaint: Now What?
A PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION
WHERE LANDLORDS GO FOR HELP
IN THIS EDITION
6
22
14
FEATURES 4
FROM THE DIRECTOR
5
NEW MEMBERS
10 MEMBER-TO-MEMBER DISCOUNT PROGRAM 21
CREDIT REPORTING PROCEDURES
30
UPCOMING SEMINARS & EVENTS
33 AD-O-GRAMS
ARTICLES 4 OVER 120 CONTRACTORS & VENDORS READY TO SERVE 5
FHFA MANDATES 20 DAY MORATORIUM ON SALES TO INVESTORS
VOLUME 51, NUMBER 4
6
WANT TO SAVE MONEY ON AN EVICTION?
www.rpoaonline.org
9
DEMAND FOR ELECTRONIC NON - PAYMENT SERVICE SOON TO BE EFFECTED
MICHIGAN LANDLORD editorial goal is to provide a forum
13
REMINDER: WYOMING CODE CHANGES IN PLACE
and management ideas and news. Our articles,
61ST DISTRICT COURT TO INCREASE LATE FEE CAP
for real estate investment and rental property ownership columns, and other features should not be construed as investment advice, nor does their appearance imply an
14 MEMBERS PLEASED WITH NEW CREDIT REPORT SERVICE
endorsement by the Rental Property Owners Association
EPA CERTIFICATIONS EXTENDED
of any specific real estate investment or management
15
LANDLORD-FRIENDLY BILLS POSED TO PASS OR IN THE WORKS
strategy. An investor’s and manager’s best course of
of Kent County or the Real Estate Investors of Michigan
action must be based on individual circumstances.
17 WAGE GARNISHMENTS NO LONGER NEED TO BE RENEWED 18
$20 FROM HOME DEOPOT FOR NEW SIGN UPS!
22
A FAIR HOUSING COMPLAINT - NOW WHAT?
July/August 2015 MICHIGAN LANDLORD 3
RENTAL PROPERTY OWNERS ASSOCIATION
From the desk of the Director CLAY POWELL
The past couple of months have been very busy at the RPOA! We’ve added new services and new exclusive discounts for members. We’ve also been involved in helping to pass new legislation beneficial to landlords and kill legislation detrimental to our business. If you haven’t had a chance yet, check out our newest tenant screening service through ApplyConnect. Check out the full article on page 14, or go to our website and click on the link in the top banner to start getting full credit reports now on your prospective tenants. We’ve also negotiated a special rate for RPOA members with eviction cases in Grand Rapids, Kentwood and Wyoming. The first hearing is only $75. Check out more on page 6. (Special rates are also available for members outside of those cities.) There is a lot to digest in this month’s issue—especially the focus on fair housing and what to do if you receive a fair housing complaint. Fair housing is one of those topics that everyone seems to like to avoid, but when it comes up, the audience explodes with questions and challenging statements. This article by the “Fair Housing Coach” will give you all the information you need in case you’re ever formally challenged with a complaint. And, I know it seems early, but we’ve nailed down the dates for the 2016 RPOA Annual Conference & Expo. We know the 500+ in attendance last year won’t want to miss it again this time around. Mark your calendars for Thursday, February 25 through Saturday, February 27, 2016. The location will be the same as in the past, River Overlook area of the DeVos Place on the Grand River in downtown Grand Rapids. Until then, enjoy your summer!
OVER 120 CONTRACTORS & VENDORS READY TO SERVE Did you know that the RPOA has over 120 contractors and vendors available to serve your rental and real estate investment needs? Many offer special exclusive RPOA member discounts! Check out the list of all contractor and vendor members here. http://rpoaonline.org/contractors-vendors/ The list is searchable by name and by type of business.
4
WHERE LANDLORDS GO FOR HELP
WELCOME, NEW MEMBERS Advanced Rentals, LLC Bergsma Plumbing LLC Bujwa Consulting LLC Campeau, Cindy L Champney, Evelyn & Don Coffman, Nate Cripe, Mitch DeBoer & Suwyn LLC DiGiovanni, Michael D Fase, James H2Living Harris, Austin Higgins, Paul M Howard, Barbara
Johnston, Michael Jones, Alexander Maslowski, Robin Melinda Schmuck Law Mishra, Ram Northern City Properties LLC Padilla, Marc Person, Craig Pit Bull Collections LLC Simply Pest Control Solutions LLC Slonecki, Alicia Stein, Ruth Ver Burg, Brent
FHFA MANDATES 20 DAY MORATORIUM ON SALES TO INVESTORS In March 2015, new requirements were published by the Federal Housing Finance Agency (FHFA) disallowing sales to investors for 20 days for nonperforming loans that become REO property. Several other changes were also made in the guise of helping severely delinquent buyers. The change was, in part, due to a request from the National Association of REALTORS to delay sales to investors to give their members more time to sell the properties to homebuyers. On March 2, 2015, the Federal Housing Finance Agency (FHFA) announced enhanced non-performing loan (NPL) requirements for sales of NPLs by Freddie Mac and Fannie Mae (the Enterprises) that will reduce risk to taxpayers by transferring it to the private sector. FHFA believes that the sale of severely delinquent loans through NPL sales will reduce Enterprise losses and improve borrower and neighborhood outcomes. The enhanced NPL sale requirements draw upon the experience of Freddie Mac’s two pilot sales of NPLs last year and this year. The loans in these two transactions have an aggregate value of approximately one billion dollars in unpaid principal balance. The loans included in NPL sales will generally be severely delinquent — typically more than one year past due. FHFA’s goal is to achieve more favorable outcomes for the Enterprises and for borrowers by providing alternatives to foreclosure wherever possible. In addition, reporting by servicers on borrower outcomes will be required after the transactions close, which will allow the Enterprises to document whether the desired outcomes are being achieved. (More info at: http://www.fhfa.gov/Media/PublicAffairs/Pages/Non-Performing-Loan-(NPL)Sale-Requirements.aspx)
SAVED ON EVICTIONS LATELY? LOCAL ATTORNEY OFFERS RPOA MEMBERS SPECIAL EXCLUSIVE RATE
If it hasn’t hit your radar yet, make sure you put the newest exclusive RPOA member discount on yours. Attorney and RPOA member Melinda Schmuck is offering a substantial discount to RPOA members for evictions. Just $75 for the first hearing—not including filing fees and court costs. She is also offering a 10% discount across the board for all legal services. Contact Melinda today at 616- 616-987-1080 or melindaschmucklaw.com. See her article “Want to Save Money on an Eviction?” on page 6.
July/August 2015 MICHIGAN LANDLORD 5
RENTAL PROPERTY OWNERS ASSOCIATION
Want to
SAVE MONEY
6
WHERE LANDLORDS GO FOR HELP
on an Eviction?
LOCAL ATTORNEY, MELINDA SCHMUCK, TELLS YOU HOW TO DO IT RIGHT THE FIRST TIME. So you’ve decided to evict a tenant and now you’re asking yourself: how much more money do I need to invest before they’re finally out? How can I keep the costs as low as possible? And can I make the tenant reimburse me?
SERVE THE PROPER NOTICE. Serving the notice to quit is the first step in eviction and shouldn’t cost anything. There are free court approved forms available online. They’re easy to find with a google search and you just have to print them, fill them out, and mail them. Or, if you prefer to use the paper forms, you can buy them at the RPOA office for a small fee. The RPOA can help you complete the forms. You can also personally deliver them to the tenant to save on postage. Carefully select the correct notice related to the reason for eviction. For instance, a Demand Possession for NonPayment of Rent is the correct form for starting the eviction process for non-payment of rent and requires a 7-day notice. To terminate a tenancy for violations of the lease or to simply regain possession of the property at the end of a tenancy, a 30-day notice, Termination of Tenancy should be used. Serving the wrong notice will waste valuable time in the process and could go undiscovered until you’re in the court room—meaning, you’ll have to start all over!
BE SURE YOU FILE IN THE CORRECT COURT. Once the notice period has expired and the tenant has not remedied the situation or moved out, you can file
a complaint for eviction with the court. The proper court is the district court where the rental property is located. If you file in the wrong court you may have to start over from the beginning again. If you aren’t sure which court to use, confirm the proper court by calling the number listed on their website or call the RPOA office. Filing in the wrong court will be as big of a mistake as serving the wrong notice.
UNDERSTAND WHEN YOU NEED AN ATTORNEY. If you are operating under an LLC, in most courts, you are required to have an attorney represent you in eviction proceedings. I’ve seen landlords get all the way to court and then the case is thrown out because they are representing an LLC. The courts consider this an unauthorized practice of law and you could end up in bigger trouble than just having bad tenants. Attorney fees vary so one thing you can do is shop around. Newer, solo attorneys are usually cheaper and rest assured, there isn’t a terrible amount of skill required for typical eviction cases. (Sorry to fellow attorneys for blowing our cover!) If you are not operating as an LLC, you can do the (continued on page 8)
July/August 2015 MICHIGAN LANDLORD 7
RENTAL PROPERTY OWNERS ASSOCIATION
Saving Money on an Eviction Continued from Page 7 eviction yourself to avoid the cost of an attorney. However, if this is your first time doing it, you should at least consult with an attorney or the RPOA to make sure you have everything correct. You will save a lot of time and money by doing it right the first time.
USE THE CORRECT COMPLAINT FORMS AND BUDGET FOR FILING FEES. Once the notice period has expired, make sure to complete the proper complaint forms and fill them out correctly. For simple cases, the RPOA can provide assistance but for more difficult or confusing cases you’ll want to consider hiring an attorney. You’ll definitely need an attorney if you filing a complaint for an LLC in most courts. Using the wrong forms or filling them out incorrectly can result in your case being thrown out or—at the very least—the court clerk will send you back home to redo the paperwork correctly. Filing fees in Michigan are standard, and courts usually only accept cash or checks. Don’t make the trip all the way to the court or mail your complaint in without the proper amount of filing fees or your complaint will be returned to you. THE FILING FEES FOR MICHIGAN COURTS ARE AS FOLLOWS: Filing Fee for Possession Only
$45
Landlord-Tenent Filing Fees for Possession & Money Judgement: Claim is $600.00 and under
$70
Claim is $600.01 - $1,750.00
$90
Claim is $1,750.01 - $10,000.00
$110
Claim is $10,000.01 - $25,000.00
$195
Jury Demand Fee
$50
Motion Fee
$20
*$20 fee required on all motions, 2nd summons, alternate service.
8
MAKE SURE SERVICE IS PROPER. Once you’ve filed the complaint it will have to be served on each defendant. Two methods of service are required. Most courts will accept an addressed envelope with two stamps on it for each defendant as the first method of service. If you are requesting a money judgment the court rules also require personal service. Improper service will void the entire complaint and you’ll have to start from the beginning with notice again. You will not serve the summons and other paperwork yourself. A process server will. The court offers process servers, for $21 plus mileage fees, per defendant. This is billed to you after the service is completed. (Fees vary from court to court and from process server to process server. Members of the RPOA receive a special rate from certain process servers.)
BE SURE TO CONTINUE TO FOLLOW THE PROPER PROCEDURE. Once the eviction is ordered, the tenant still has 10 days to move out, or longer if the judge allows it. The judgment cannot be entered and enforced until the waiting period has expired. The Order of Eviction (authorization to put the tenant on the street) requires a $15 fee.
RECOVER THE MONEY FROM THE TENANT. The court will add the filing fee, process server fee, and a statutorily allowed amount for attorney fees into the total money judgement against the tenant, so be sure do double check the amounts!
Please feel free to contact Melinda Schmuck Law, PLLC with any questions about eviction. 616-987-1080 http://melindaschmucklaw.com/
WHERE LANDLORDS GO FOR HELP
DEMAND FOR NON-PAYMENT ELECTRONIC SERVICE SOON TO BE EFFECTED The Michigan House and Senate passed a bill in May to enable the delivery of a Demand for Possession for NonPayment of Rent via electronic service. The bill was signed by the Governor and will go into effect on August 19, 2015. To enable the new delivery method, landlords must obtain consent in writing from the tenant(s). The consent must be made through the “electronic service address� provided by the tenant. This could be an email address, cell phone text number or some other method of online electronic delivery. Once a request for consent is sent to the tenant at the provided electronic service address, the tenant must respond in the affirmative to the electronic message that they agree to receive Demand for Possession notices. The consent will need to be maintained for your records. The electronic service address provided during this process will remain as the correct and functioning service address until the tenant either informs the landlord of a new service address and the process in paragraph two above is repeated or the tenant notifies the landlord in writing that they no longer have an electronic service address. A landlord cannot refuse to enter into a lease with a tenant if the tenant declines to consent to the electronic service. The Demand for Possession for Non-Payment of Rent sent via electronic service must include a digital image of the Demand form originally produced on paper or by an electronic means, the output of which is readable by sight and can be printed to paper. The simplest way to accomplish this would be to complete the form, scan it and email it to the tenant. We expect new a creative ways will be developed for consent and for delivery of the Demand after the law is implemented. Other notices for eviction are not included under the bill. Those eviction notices, such as Termination of Tenancy for violations of lease provisions, must continue to be served in the traditional manner. For a complete copy of the bill as passed, go here. http://www.legislature.mi.gov/documents/2015-2016/ billconcurred/House/pdf/2015-HCB-4038.pdf
July/August 2015 MICHIGAN LANDLORD 9
Member-to-Member Discounts: $$$aving you dollars! RENTAL PROPERTY OWNERS ASSOCIATION
AMERA MORTGAGE
HOME SAVERS
JEFF LAMBORNE AGENCY
Free appraisal for 1 to 4 family unit homes with closed loan application for RPOA members only. Jim Riley, 616-292-4491.
HOMESAVERS exclusive offer for RPOA members! 50% off your first time using our carpet cleaning services for a studio, 1, 2, or 3 bedroom apar tment. Our other services include water damage clean up, mold removal and deodorization. See a full life of our services online at www.homesavers.com or call 616-534-2388. We have convenient online scheduling for apartment cleaning as well!
We represent several companies. We shop them for you. Group discounts available. Call Jeff Lamborne for details. 616-447-0274.
BENDER MAINTENANCE & HOME IMPROVEMENT 10% of f 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 616550-4447.
FARM BUREAU J e f f L a m b o r n e Fa r m B u r e a u Insurance Agency offers group discounts. Call Jeff for details. 616447-0274.
GRAND RAPIDS CARPET & FURNITURE CLEANERS RPOA Member s rec ei ve 2 5 % 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! 616454-3385.
HUNGERFORD NICHOLS CPA’S & ADVISORS Free initial consultation on tax, accounting, and consulting services to RPOA members. Contact Sam DeMarco at 616949-3200. 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. Over 40 years experience servicing and installing furnaces, boilers, air conditioning. 616-891HEAT (4328)
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 616868-0050 for details.
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! 10
MLIVE MEDIA GROUP A special exclusive offer just for RPOA members. $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. 616-254-0612.
OFFICE MAX 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.
PAWLOWSKI & REENS, PLC, ATTORNEYS AT LAW Discounted fees and free limited phone consultation on any legal issue. 616-458-7800.
REPUBLIC WASTE REMOVAL SERVICES Exclusive RPOA New Members and Existing Members discount $11.55 rate per month is good for one year. Rates will increase 3% after one year. Republic reserves the right to increase rates at any time. Call Roy James at 616-662-6862.
RMS LLC Towing of abandoned and improperly parked cars on your proper ty. 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
Check out the discounts being made to RPOA members only:
sheet vinyl and 30% off all hard surface. Show us your membership card! Call Peggy, 616-257-3200.
RYLEE’S ACE HARDWARE 10% discount on cash purchases. Some restrictions apply. Offer valid at our two Grand Rapids stores, 1234 Michigan St. NE and 1205 Fulton St. West and our Walker store, 4300 Remembrance Rd. www.ryleesace. com.
SHAPE YOUR LIFE STUDIOS Our Studio would like to offer RPOA members a chance to get healthy and fit! We have spinning classes (indoor cycling) and group personal training classes for everyone at a reasonable price—$10 an hour! We are offering 50% off your first 30 days with us! There are no contracts or extra fees at all EVER. Call 616-3183503; check out our website, www. shapeyourlifestudios.com.
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.
SUN RENTALS Pay cash and receive 15% off any rental, any time. 616-454-7982.
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, post-construction, and general commercial cleaning. RPOA members receive a 20% discount on their first cleaning. C a l l 616 - 2 9 9 - 17 57 o r e m a i l wmproclean@yahoo.com for FREE estimate.
RPOA AD OCT-NOV_Layout 1 9/12/14 4:54 PM Page 1
WHERE LANDLORDS GO FOR HELP
Is it time to check your
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Install a smoke detector in every bedroom of your home and in the hall that leads to one or two bedrooms, and make sure there is at least one on each floor of your home, even in your basement. Test your smoke detector each month and replace it if it doesn't work or if it is already 8 to 10 years old. Replace your smoke detector batteries at least once a year and especially when you hear the warning signal that the battery is low.
Hardware
1205 Fulton St. West 616.233.4711
Walker - 4300 Remembrance Rd. 616.453.7741
OPEN TO SERVE YOU: MONDAY - SATURDAY 8AM - 8PM, SUNDAY 10AM - 5PM
July/August 2015 MICHIGAN LANDLORD 11
RENTAL PROPERTY OWNERS ASSOCIATION
12
WHERE LANDLORDS GO FOR HELP
REMINDER: WYOMING CODE CHANGES IN PLACE Under the new code changes sought by the RPOA in Wyoming, 1 to 3 unit rental buildings will now be inspected every 4 years, instead of every 2 years. 4 or more unit buildings will continue to be inspected at 2 year intervals. Eligibility for a four-year certificate is determined based upon conditions of the property before and during the inspection. Any of the following issues will result in the denial of a fouryear certificate: • Smoke detector violations • Work completed without a permit • Eminent electrical hazards • Eminent mechanical hazards • Eminent building hazards • More than one window with broken or missing glazing. • Peeling paint on more than 25% of the building and or the garage. • Loose or damaged siding, fascia or soffit materials on the house or garage. Reasonable wear and minor maintenance concerns related to these items shall not disqualify property owners from a four year certification. • Damaged exterior doors on the house or garage that prevents the door from opening and/or closing, locking, or operating as designed or where more than 25% of the exterior surface area is dented, peeling or otherwise in disrepair. • Damaged or excessively worn roof/shingles. • In addition to any one (1) of the above, if a property has more than four maintenance code violations the property shall receive a two (2) year certification.
Clearly, it pays to stay on top of maintenance issues and to avoid completing work not in compliance with local code. The RPOA recommends a regular inspection program at 6-month intervals, especially in the weeks preceding an inspection for certification. Regular inspections should include maintenance items such as changing furnace filters, looking for water leaks, cracked windows, peeling paint, etc., this is also a great time to find out if the tenant is maintaining housekeeping in compliance with rules and with municipal ordinances. Important note: The renewal process needs to be completed BEFORE a certificate expires. So, plan ahead and contact the city well before current and future certificate expiration dates. Fines and fees for non-compliance remain hefty. A $500 fine is applied for unregistered rental properties. The City is now using the 2012 International Property Maintenance Code for compliance inspections. A copy of the code is available from the RPOA online or in the office. http://rpoaonline.org/product/2012-internationalproperty-maintenance-code-booklet/ The RPOA is in ongoing discussions with
the City of Wyoming to include 4 unit properties under the 4-year cycle.
RPOA SUCCESSFUL: 61st DISTRICT COURT TO INCREASE LATE FEE CAP Earlier in April, the RPOA requested that the 61st District Court in Grand Rapids consider increasing the allowable maximum charge for late fees for rent from $25.00 to 10% of the monthly rental payment. In a letter dated April 16, 2015, Chief Judge David J. Buter informed the RPOA that the judges have “agreed to increase the maximum late fee limitation to the amount set forth in the lease agreement, but not to exceed $35 per month.” The previous $25 limit was in place for over 15 years. The last increase from $20 to $25 was also due to a request from the RPOA.
July/August 2015 MICHIGAN LANDLORD 13
RENTAL PROPERTY OWNERS ASSOCIATION
MEMBERS PLEASED WITH NEW CREDIT REPORT SERVICE Members are expressing their appreciation for the new credit reporting service now offered through the RPOA. Deb Bryker, with Bryker Properites, reports “I just started [using]this [the RPOA ApplyConnect credit reporting service] and now on to my second applicant! I am loving this! Thanks for getting this service! It’s so easy to use!” Sixteen landlords signed up for the service in the first part of May and are receiving full credit reports for the prospective tenants. The service includes a full Experian credit report with VantageScore, nationwide criminal and eviction search. The service is free. Check out how you can begin using the new service to screen your applicants. https://rpoa.applyconnect.com/
EPA’S ADMINISTRATOR SIGNED FINAL RULE TO EXTEND CERTIFICATIONS FOR CERTAIN RRP INDIVIDUAL RENOVATORS
To maintain renovator certification an individual must complete a renovator refresher course accredited by EPA within 5 years of the date the individual completed the initial course described in paragraph(a)(1) of this section. If the individual does not complete a refresher course within this time, the individual must re-take the initial course to become certified again. Individuals who completed a renovator course accredited by EPA or an EPA authorized program on or before March 31, 2010, must complete a renovator refresher course accredited by EPA or an EPA authorized program on or before March 31, 2016, to maintain renovator certification. Individuals who completed a renovator course accredited by EPA or an EPA authorized program between April 1, 2010 and March 31, 2011, will have one year added to their original 5-year certification. The RPOA offers the renovator refresher course. Check out the latest schedule here. http://rpoaonline.org/trainingevents/event-calendar/
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WHERE LANDLORDS GO FOR HELP
LANDLORD-FRIENDLY BILLS POISED TO PASS OR IN THE WORKS Several bills are moving through the State House and Senate that would benefit rental property owners. As reported in the RPOA’s weekly e-newsletter, House Bill 4038 passed and will take effect August 19. The bill will enable landlords to send Demand for Possession for Non-Payment of Rent notices via electronic service (email, text, etc.) as long as various conditions are met. Another bill sponsored by the same Representative would enable the inclusion of a clause in a lease that would waive the rights of a tenant to ask for a jury trial. So far this bill has not moved out of committee. Another bill, Senate Bill 72, would enable private property owners, including landlords, to deny smoking and growing of marijuana. The bill does not affect the use of marijuana by other means for those that have a legal right to do so under State law. (Growing, selling and possessing marijuana is still a Federal crime.) The bill passed out of the Senate and is now in the House. Action is expected on the bill before summer break. Other bills are in process to address issues regarding rental inspections, evictions, LLC’s, summons service and real estate fraud. When these bills see action depends on how fast the legislature can agree on a budget and road funding.
July/August 2015 MICHIGAN LANDLORD 15
RENTAL PROPERTY OWNERS ASSOCIATION
A Special Offer for KARHA, MARA and RPOA MEMBERS
$35 for 30 days print and online!* Kalamazoo Gazette, Muskegon Chronicle and/or Grand Rapids Press.
Fill your vacancies with Mlive Media Group print and online solutions! *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.
16
Q
: Can RPOA members save money on health insurance with the new Health Care Laws?
Answer:
Yes!
You can save up to 100% on your health insurance - that’s correct premiums could be as low as $0! • Coverage from well known local brand name carriers • No pre-existing conditions that prevent you from getting coverage
Call Kevin Martinez p. 616.862.7319 e. kevintoddmartinez@gmail.com
WHERE LANDLORDS GO FOR HELP
WAGE GARNISHMENTS NO LONGER NEED TO BE RENEWED Under a new Michigan law that will go into effect September 30, 2015, periodic (wage) garnishments will remain in effect until the balance is paid on the money judgment. That’s right—you no longer need to renew your periodic garnishments every 182 days. The RPOA was successful in the last legislative session getting the time period for renewal increased from 91 days to 182, but after legislators thought about it, they couldn’t see a reason why garnishments shouldn’t remain in effect until they are paid. The newest change will save a lot of time and money for landlords seeking payment on judgments. The landlord (plaintiff) has a couple of new responsibilities under the law: • First, they need to send the garnishee (the employer) and the tenant/past tenant a statement setting forth the balance remaining on the judgment, including interest and costs. • Second, they need to provide a statement to the same parties within 21 days of the garnishment being fulfilled, including interest and cost. For more assistance with garnishments, give Kathy Rozenek or Ava Grover a call at the RPOA office, 616-454-3385.
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July/August 2015 MICHIGAN LANDLORD 17
RENTAL PROPERTY OWNERS ASSOCIATION
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ONLINE SIGN UP INSTRUCTIONS: ❑❑ Click on the link above and you’ll be taken to the Pro Xtra login page. Click on “Sign up for free” button below the “Log in” button. ❑❑ Create your account by entering your company name, etc. into the form. ❑❑ Click “Sign Up” at the bottom of the form. ❑❑ Fill in your address and select whether or not you wish to receive electronic receipts and click on “I’m Done!” ❑❑ Close your browser and go to the email sent to you by The Home Depot and Click on the “To sign in to your Pro Xtra account click here” link. ❑❑ Click on “Skip All Tips” button at bottom left. ❑❑ Click on “Credit Cards & Accounts” in the menu on the left or your “Workbench.” ❑❑ Click “Add a Credit/Debit Card” orange button. (Important: You must register a credit card or debit card to start earning your rebates and receive the $20 coupon.) ❑❑ Click “Select This Level” under “Text2Confirm” column on the right of pop up. ❑❑ Enter your credit card number and other information under Authorize Card. ❑❑ Enter a mobile phone number (optional). ❑❑ Enter a Nick Name for your card (especially helpful if you plan to enter more than one card). ❑❑ IMPORTANT STEP: Click on “Yes, I have one.” under Do you have an Agreement Code? ❑❑ Enter NREIA in the box and then click the “Submit” button. If you have problems signing up or need further assistance, give us a call at 616-454-3385.
18
WHERE LANDLORDS GO FOR HELP
July/August 2015 MICHIGAN LANDLORD 19
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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). • Current address of the prospective tenant, including street with number, city, state and zip code. • Social Security Number.
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• 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.
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• Contact us for your decision report results promptly. For reasons of confidentiality we shred all reports after 3 days.
OTHER GUIDELINES FOR DECISION REPORTS: • 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
Advertisers: The deadline for submission of and payment for ads is noon on the 15th day of the month for the following month’s newsletter. Contact RPOA Ad Salesperson, Kathy Bartnick, at 616-318-3503 to reserve your ad space today!
July/August 2015 MICHIGAN LANDLORD 21
RENTAL PROPERTY OWNERS ASSOCIATION
A Fair Housing Complaint —
Now What?
22
WHERE LANDLORDS GO FOR HELP
In this month’s lesson, the Coach reviews what happens if someone files a fair housing claim against you. (continued on page 24)
July/August 2015 MICHIGAN LANDLORD 23
RENTAL PROPERTY OWNERS ASSOCIATION
A Fair Housing Complaint - Now What? Continued from page 23 It’s probably not a regular occurrence at your community, so you may be taken aback and not know what to do, particularly if you’ve never or only rarely received a formal fair housing complaint. When the complaint arrives, you may be suspicious—even outraged. You’ve probably put in a lot of time and money into your compliance efforts, so it may seem hard to believe that you or your staff has done anything to violate fair housing law. It may seem unfair that you have to devote time and money to deal with what may be a frivolous complaint—or worse, an effort to make a quick buck at your expense. Whatever your initial reaction, don’t let it affect how you handle a fair housing claim. It’s bad enough to get a formal complaint, but you could make matters worse if you mishandle your response or retaliate against the person who filed the claim against you. Remember, your efforts to comply with fair housing law aren’t wasted just because you’ve been named in a complaint. Investing the time and effort in developing policies and training staff will help ward off claims, but it can’t provide 100 percent protection against ever facing a complaint. Even if you dot all the “i’s” and cross all the “t’s,” you can’t prevent a discrimination claim, explains fair housing attorney Robin Hein. “But it does mean that you should have all the documentation and evidence needed to mitigate or minimize the damages, and win the claim,” he says. In this month’s lesson, we’ve compiled some FAQs— frequently asked questions—about the fair housing complaint process. We’ll cover the different types of fair housing complaints, who may file them, and how they are resolved, so you’ll know what to do—and what NOT to do— if you or your community faces a fair housing complaint. Finally, you can take the Coach’s Quiz to see how much you’ve learned.
WHAT DOES THE LAW SAY? The Fair Housing Act (FHA) is a federal law that prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin, and disability. In addition, nearly all states and many local governments have adopted their own fair housing laws, some of which go beyond federal requirements to cover age, marital status, and sexual orientation, to name a few additional protected characteristics.
24
13 FAQS ON THE FAIR HOUSING COMPLAINT PROCESS FAQ #1: Who Can File a Fair Housing Claim? Complaints may be filed by an “aggrieved party”—anyone who claims to have been injured by a discriminatory housing practice. That includes individuals like prospects, applicants, and residents, as well as private advocacy groups, which may file fair housing claims on their behalf. In some cases, private advocacy groups may file claims of their own based on the results of fair housing testing. HUD may file what’s known as a “Secretary-initiated complaint” when it has received an individual complaint, but believes that there may be additional victims of the discriminatory act or wants to obtain broader relief in the public interest. Even in the absence of a formal complaint by an aggrieved party, HUD may file a Secretary-initiated complaint when its own investigation indicates that a discriminatory housing practice has occurred or is about to occur. State and local government agencies also may file fair housing claims on behalf of an aggrieved party or on its own to protect the public interest.
FAQ #2: Who Can Face Liability for a Fair Housing Violation? Owners, managers, and employees all may be named in fair housing claims. Each may be liable for violating fair housing law based on their own discriminatory statements or actions. Owners and managers also face a second level of liability for fair housing violations. They may be held liable not only for their own discriminatory activities—such as adopting or enforcing discriminatory policies—but also for discriminatory conduct by employees or agents working on their behalf.
FAQ #3: How Are Fair Housing Claims Filed? There are basically two types of fair housing claims: One is an administrative complaint filed with HUD or its state or local counterpart; the other is a civil lawsuit filed in a state or federal court. It can get confusing because both start with a “complaint,” but the procedures involved in these two types of claims are very different, explains Hein. If you’re named in an administrative complaint with HUD, you’ll get notice by mail; if it’s a lawsuit, then you’ll be served by a deputy
WHERE LANDLORDS GO FOR HELP
sheriff or process server. Filing an administrative fair housing complaint essentially triggers an investiga tory process, he says. The end result of the investigation is a final investigatory report that doesn’t conclusively close the case. Unless the complaint is dismissed, the administrative process will end either with a “charge”—a finding that there’s enough evidence to believe that discrimination could have occurred—or with a dismissal. Issuance of a charge means there’s sufficient evidence to find that discrimination occurred, but it doesn’t mean that discrimination did in fact occur. It doesn’t make you liable for a fair housing violation, but it can be used against you in later proceedings. Issuance of a dismissal ends the administrative complaint and investigation in favor of the community owner, manager, or employee. The other option—filing a lawsuit—means that the claim goes through the court system to determine liability for a fair housing violation. The aggrieved party (an applicant, resident, or fair housing organization) may choose either option, though administrative complaints are often the first step of most fair housing claims and focus mainly on investigation, says Hein. The law requires administrative complaints to be filed within one year of the last discriminatory act; the deadline for filing a lawsuit in court is two years. Nevertheless, aggrieved parties may bypass the administrative process and go directly to court. Under the FHA, aggrieved parties are not required to file an administrative complaint with HUD before filing a lawsuit in court, though there may be different rules for claims filed at the state or local level. Furthermore, the two options are not mutually exclusive, so a resident could file an administrative complaint and sue you in court, though there are rules to prevent them from being heard at the same time or result in double recovery for the same violation.
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FAQ #4: How Should We Treat the Person Who Filed the Complaint? Take special care to avoid even the appearance of retaliation against anyone who has filed a fair housing complaint against your community. Under the FHA, it’s unlawful to “coerce, intimidate, threaten, or interfere with” anyone for exercising his rights under fair housing law—and anyone who has helped or encouraged someone to do so. Get legal advice before taking any adverse action against a resident who’s filed a complaint (like terminating his lease), because it could lead to a separate charge of (continued on page 26)
July/August 2015 MICHIGAN LANDLORD 25
RENTAL PROPERTY OWNERS ASSOCIATION
A Fair Housing Complaint - Now What? Contiued from page 25 retaliation. The FHA considers retaliation to be a separate offense, which means that you could be found liable for retaliation, even if the initial discrimination claim is ultimately found to be groundless. By the same token, you should be careful about how you treat employees or other residents if you find out that they helped someone to file a fair housing complaint against you. The FHA’s retaliation provisions prohibit coercion, intimidation, or interference with anyone who aided or encouraged any other person in the exercise of her fair housing rights.
FAQ #5: What’s the Process for Filing an Administrative Complaint? The administrative process starts when an aggrieved party files an administrative complaint with HUD, the federal agency responsible for enforcing the FHA. The complaint requires basic information, including the names and addresses of the parties, the location of where the allegedly discriminatory action occurred, a short description of what happened, and the date of the alleged violation. Complaints may be filed in person, by telephone, through the mail, and online through the agency’s website, or using HUD’s new mobile app. Complaints may also be filed with state or local government fair housing agencies. Most states have fair housing laws that are “substantially equivalent” to the FHA. The aggrieved party may file either with the state, HUD, or both. Complaints originally filed with HUD are often referred to the state or local agency. HUD and equivalent state and local agencies follow similar, though not identical, procedures for handling complaints, according to HUD. In cases filed with HUD, the agency will review the complaint to determine if it meets certain minimum standards. If it does, HUD will accept the complaint.
FAQ #6: When Do I Find Out About the Complaint — and What Should I Do? You should receive notice from HUD within 10 days after the complaint has been accepted. The HUD investigator sends the notice to all the “respondents”—that is, all parties accused of discrimination, including community owners, managers, and employees. The notice, which comes by first-class mail with return receipt requested, identifies the alleged discriminatory housing practice and explains procedural rights and obligations with a copy of the complaint. The notice from HUD may also contain
26
discovery requests called “interrogatories” and “requests for production of documents.” If you receive notice of a HUD complaint, it’s important to take it seriously. Don’t ignore the complaint or treat the HUD letter lightly, warns Hein. You should immediately notify your supervisor and the corporate office about the complaint. Get your attorney involved and contact risk management for evaluation and submission to any insurance carriers who may provide coverage, Hein says. Meanwhile, you should pull the resident file or application to start working on a timeline or chronology of what happened. Many times, the community manager is aware of the underlying facts related to the complaint because there was conflict or difficulty associated with the rental application or lease, Hein explains. You’ll have to act quickly since respondents should file an answer within 10 days of receiving the notice. Though it’s not required under federal law, Hein recommends filing an answer within that time since the FHA requires owners and managers to cooperate in responding to HUD investigations. Don’t try to write back or respond to HUD on your own—have your attorney handle it, he warns. Remember what they say in TV crime dramas: “Whatever you say can and will be used against you.” It may not be a criminal matter, but that maxim applies here: You may inadvertently say something that isn’t accurate in the context of what occurred—or that makes matters worse. Hein has seen that happen when landlords try to handle things themselves but make admissions in their initial response that cannot be undone or explained away very easily. For example, there may be a disconnect between the corporate office and rental office: A corporate-level regional property director may think that there are no real written rental qualification procedures and put that in the HUD response when in fact the on-site manager has a written set of rental criteria that she has always used at the property. It could also be just the opposite: The community manager responds with a misstatement without first running it by corporate or her supervisor at the regional level. COACH’S TIP: Formalized reporting procedures are important, Hein says. Make sure they’re covered in training and included in the management’s operating policies and procedures under the section on “What to do if you have a lawsuit or housing discrimination complaint.”
WHERE LANDLORDS GO FOR HELP
FAQ #7: What Happens During a HUD Investigation? The next step is a HUD investigation to determine whether there is reasonable cause to believe that a discriminatory housing practice has occurred. Among other things, the investigator (from HUD or state/local partner agency) may interview the parties and witnesses, obtain and review relevant documents, and conduct on-site investigations, when appropriate. Whatever you do, don’t alter or try to dispose of documents related to the applicant or resident, or tell your staff or others that they shouldn’t cooperate in answering HUD’s questions. Don’t be surprised when the investigator sends you discovery requests—long lists of questions to answer and documents to produce—even if you’ve filed a response denying the alleged discrimination. If you ignore the request and don’t respond at all, Hein warns that federal or state enforcement officials have the power to issue subpoenas and compel attendance to investigate the matter. Nevertheless, he says that you shouldn’t give statements or documents to the HUD investigator without the assistance of counsel. HUD investigations are supposed to be completed within 100 days, but they often take longer. HUD says it’s generally
impracticable to complete an investigation within 100 days when a complaint involves a great number of witnesses, large volumes of evidence, or particularly complex claims and evidence.
FAQ #8: What Is Conciliation? During the investigation phase, the law requires HUD (or its partner agency) to try to work out a settlement through a process known as “conciliation.” Settlements may include monetary payments to the aggrieved party, civil penalties to the government, or doing things like changing policies or providing fair housing training to your staff. If the parties reach an agreement, HUD will close the complaint. Don’t rule out a settlement, even if you think you didn’t do anything wrong and the resident is just trying to harass you. You may be right (that you didn’t do anything wrong), but you could be wrong—confusing what you think the law should be, rather than what the law actually says. Either way, Hein says it ignores the realities of how the legal system works and closes off the most efficient way to respond, settle, or end the complaint. For example, Hein says many owners or managers will take a strong position saying, “We didn’t do anything wrong, (continued on page 28)
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July/August 2015 MICHIGAN LANDLORD 27
RENTAL PROPERTY OWNERS ASSOCIATION
A Fair Housing Complaint - Now What? Continued from page 27 and we are not going to pay a dime to this tenant.” So, they stand on principle instead of evaluating their options and the cost of each. They may feel that making any settlement offer is a sign of weakness and only encourages more claims in the future “once the word gets out.” But that approach is counterproductive because these cases are often settled easily with minimal out-of-pocket payments. Hein has seen cases where there was a risk to the owner or management and all the resident really wanted was to move out and avoid having the landlord come after him for a collection claim or put it on his credit report or give the next landlord a bad reference. The cost and risk in defending these cases can be considerable, he says.
FAQ #9: What Happens If the Case Doesn’t Settle Through Conciliation?
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If one of the parties elects to go to court, then the case will be handled by the Justice Department, which brings the case on behalf of the applicant or resident and the public interest. The applicant or resident also may request to have a private attorney represent his interests in court. Either party may request a jury trial. Otherwise, the case goes on for a hearing by an administrative law judge (ALJ) within HUD (or its state or local counterpart). During the proceedings, a government attorney with HUD will represent the aggrieved applicant or resident, who may also have a private attorney to represent him.
FAQ #11: What Is My Best Option If HUD Issues a Charge Against Me?
If the case doesn’t settle through conciliation, then the investigator completes the investigation and issues a final investigative report. Based on the results of the investigation, HUD will decide—one way or the other— whether there’s reasonable cause to believe that a discriminatory housing practice occurred. If HUD finds there’s no reasonable cause to believe that discrimination occurred, then the complaint will be dismissed. But that might not be the end of the matter, because the applicant or resident still can file a private lawsuit even if HUD dismisses the administrative complaint. If HUD finds that there was enough evidence to believe that discrimination occurred, then HUD will issue a determination of “reasonable cause” and charge the respondent (the community owner, manager, or employee) with violating fair housing law. Though it’s not a conclusive determination of a fair housing violation, Hein says that the HUD charge leaves owners and managers in a very risky and vulnerable position because it can now be used as evidence against you in the next stage of the proceedings.
There is really no “best option” when deciding between whether to take the case to court or go forward with an administrative proceeding, so you should consult your lawyer about which option makes the most sense in light of your individual circumstances. Electing to go to court will probably take longer and be more expensive. Either party can ask for a trial by jury, which may work against you since landlords often make unappealing defendants, says Hein. Remember, the HUD charge can be used against you, and if found liable for a fair housing violation, you could be ordered to pay punitive damages—in addition to compensatory damages—to the applicant or resident, along with her attorney’s fees and court costs. Having the case heard by an administrative law judge is likely to be quicker and less expensive. If the case is heard by HUD, then you won’t face liability for punitive damages, though you could be ordered to pay compensatory damages to the applicant or resident along with civil penalties to the government. If the applicant or resident had a private attorney to represent his interests, you could be liable to pay for his attorney’s fees.
FAQ #10: What Happens If HUD Issues a Charge?
FAQ #12: What Happens If the Case Goes to Court?
Once a charge has been issued, the parties have a decision to make: whether to go forward with administrative proceedings or take the matter to court. Either party may elect to go to federal court, but the election must be made within 20 days. The procedure may be similar but slightly different if the case is being handled by a state enforcement agency.
If either party elects to go to court, a government attorney will file a civil lawsuit on behalf of the aggrieved person and the public interest. The applicant or resident also may hire his own attorney to represent his interests in court, although he won’t be able to recover his attorney’s fees if he loses the case. Aggrieved applicants and residents often get help from
WHERE LANDLORDS GO FOR HELP
private advocacy groups, which may have staff attorneys or contacts with outside attorneys to represent them in fair housing claims. After being served with notice of the lawsuit, you’ll have 30 days to file an answer. If you fail to do so, the court could order a default judgment against you—possibly closing off your opportunity to defend yourself in court. Both parties are entitled to do “discovery,” a pretrial process designed to let both sides know what evidence the other side has in order to prevent surprises at trial. During discovery, the applicant or resident may request any documents you may have, ask you written questions, and take depositions, which means asking you or your witnesses questions under oath. Likewise, you can ask the same of the applicant or resident. Often, cases are resolved by written motions presented to the judge, unless there are disputes about the facts that must be resolved at a trial. Many cases are settled prior to trial. Otherwise, the court will conduct a trial. If the judge (or jury) rules against the applicant or resident, then the court will grant judgment in your favor. The court won’t require the applicant or resident to pay your attorney’s fees unless the suit was frivolous or filed in bad faith. If the court finds that you violated fair housing law, you could be ordered to pay damages, civil penalties, attorney’s fees, and court costs. The court could also issue injunctive relief—a court order requiring you to do something—or stop doing something—to remedy or prevent discrimination.
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FAQ #13: What Happens If the Case Goes for Hearing by an ALJ? If neither party elects to go to court, then the case goes on for a hearing by a HUD administrative law judge, who will issue an initial decision. If the judge finds no violation of fair housing law, the case will be dismissed. If the judge finds that housing discrimination has occurred, the judge can award a civil penalty to the government, actual damages to the aggrieved party, and attorney’s fees. The losing party has the right to ask for a review of the judge’s decision by the HUD Secretary, who may affirm, modify, or overturn the decision. Afterwards, a party may appeal the Secretary’s decision in federal court. Reprinted from Fair Housing Coach, June 2015 issue.
July/August 2015 MICHIGAN LANDLORD 29
Upcoming Seminars and Events HELPING REAL ESTATE INVESTORS BECOME MORE SUCCESSFUL
EPA Renovation, Repair & Painting Refresher Course
RENOVATION, REPAIR & PAINTING
DON’T MISS YOUR DEADLINE!
Aug. 19, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 10 attendees. Sep. 30, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 10 attendees. Oct. 28, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 10 attendees. Dec. 9, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 10 attendees. . 4 Hour Refresher Classes Members: $130 / Non-Members: $145
If you have a current RRP Certification,
look at your expiration date. If you took the RRP class 5 years ago, you are due for a recertification. Don’t let your current certificate expire or you’ll have to retake the initial full-day course!. RPOA offers the Refresher class at a reasonable cost. Sign up before your expiration date to maintain your eligibility for this class. Those who wait until after the expiration date will be required to take the 8 hour class instead of the 4 hour class. You can register online at the RPOA website, www. rpoaonline.org. Check out the details on the calendar. Sign up now to maintain your eligibility and you will be good for another 5 years. This Course teaches rental property owners, contractors and other paid professionals how to work safely in housing with lead-based paint and comply with EPA’s Renovation, Repair, and Painting (RRP) Rule, and HUD’s Lead Safe Housing Rule. CLASS LIMITED TO FIRST 6 PAID REGISTRANTS
Richard TenHoor, Certified Lead Safe Work Practices Trainer, Landlord and RPOA Member, will teach lead-safe work practices in a comprehensive session. Not knowing how to work in a leadsafe manner can expose your rental business to liability. The EPA now requires all landlords to use lead-safe work practices and be certified under the new RRP rules. 8 Hour Initial Classes Members: $150 / Non-Members: $170
Aug. 12, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Sep. 10, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Sep. 24, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Oct. 7, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Oct. 14, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Nov. 11, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees. Nov. 17, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees.
July 7, 2015 • 9:30 a.m. to 12:00 p.m.
FOUNDATIONS OF BUYING, LEASING AND SELLING RENTAL PROPERTY - CE Con-Ed Approved Class for Realtors. Earn 2 hours credit! Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director 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: • 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.
All events are held at the RPOA office unless otherwise noted. Cost: $25 Gold members, $35 Silver members and non-members unless otherwise noted. 30
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Aug. 14, 2015 • 10:00 a.m. to 12:00 p.m.
UNDERSTANDING LEASES & CONTRACT LAW
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Aug. 13, 2015 • 6:00 p.m. to 8:00 p.m.
MARKETING & SCREENING FOR PAYING TENANTS - CE, PHP
The class will cover: • National & local discounts and rebates available to members. • Training on the use of the RPOA Website, including sign up, free form access, knowledge base and online videos. • How to sign up for and use the free Tenant History Website for tenant screening. • How to use Rentlinx.com and the free MIRentalGuide.com to list your rentals. • An update on current RPOA governmental affairs activities. • And more!
Aug. 25, 2015 • 10:00 a.m. to 12:00 p.m.
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.
Con-Ed Approved Class for Realtors. Earn 2 hours! Presented by Emma Person, Property Manager Emma 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.
CE = CERTIFIED COURSE FOR REAL ESTATE CONTINUING EDUCATION PHP = PROFESSIONAL HOUSING PROVIDER CREDIT
RENTAL PROPERTY OWNERS ASSOCIATION
Join Us! BREAKFAST NETWORKING
Real Estate Investors (REI) Breakfast Networking When Every Friday (except holidays) 8 a.m. – 9 a.m.
Where Cheshire Grill 2162 Plainfield NE, Grand Rapids, MI
Every Friday morning, dozens of real estate investors, landlords and vendors participate in the RPOA’s free breakfast networking event. Share deals with other investors; learn what’s happening now in the local real estate market; share your haves and wants; learn from other investors; hear short informational presentations on relevant topics. The event is free except for the cosyt of breakfast. No registration necessary! 32
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, 616-456-7039.
CARPET CLEANING RPOA members receive 25% discount. Premium carpet care at affordable prices. Call RPOA member Dave Bigelow at 616-822-4710 or Grand Rapids Carpet and Furniture Cleaners at 616-453-5368.
EVICTION CLEAN-UP AND DUMPSTER RENTALS 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.
An Investor’s Dream! 106 S. Camburn, Stanton, MI 48888 $300,000 MLS# 14050162
Commercial Real Estate Financing FAST! • Fix & Flip / Buy & Hold • • • •
Multifamily / Mixed Use Industrial / SBA & More Portfolio Loans Hotel / Motel
• Bridge Loans
Contact Paul Moma 734.365.6878 866.907.8936 info@b2bloansfast.com www.b2bloansfast.com
July/August 2015 MICHIGAN LANDLORD 33
RENTAL PROPERTY OWNERS ASSOCIATION
BOARD OF DIRECTORS President: Tom Koetsier (616) 550-4447 E-mail: tkoetsier@grar.com President Elect: Mark Troy (616) 452-4200 Email: mtroy@compass101.com Secretary: Kim Post (616) 891-0500
E-mail: kim@postandassociates.com
Treasurer: Russ VandenToorn (616) 965-2300 E-mail: russ@rentupm.com 1459 Michigan St. NE / Grand Rapids, MI 49503 Phone:
(616) 454-3385 / Fax: (616) 454-6163
E-mail:
contactrpoa@rpoaonline.org
Web Sites:
www.rpoaonline.org
www.MIrentalguide.com
www.tenanthistorywebsite.org
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 is a nonprofit business association whose mission is to support and facilitate its members’ success in real estate investment and management.
OTHER BOARD MEMBERS: Kathy Dennison Adrianse (616) 257-9577 E-mail: kdennison@grar.com Deb Bryker (616) 550-1168
E-mail: brykprop1725@sbcglobal.net
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
James Loftus (616) 889-0488
E-mail: loftja@gmail.com
Phil Mol (616) 458-8200
E-mail: philmol@grar.com
John Potter (616) 957-1294
E-mail: jpotter@grar.com
Mark VanderHyde (616) 301-0999
E-mail: grmetroplumbing.com
Brian Zeemering (616) 608-0940
Email: bzeemering@gmail.com
Past President: Bert Heyboer (616) 719-0819 E-mail: bertheyboer@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
E-mail: clayp@rpoaonline.org
AD SALES: Kathy Bartnick (616) 318-3503
RPOA ATTORNEY: David Hill (616) 254-8417 34
E-mail: kvallie@aol.com
Haven’t signed up yet? The Home Depot 2% RPOA Rebate Program Sign Up for The Home Depot Rebate Now! The RPOA membership in the National Real Estate Investors Association makes RPOA members eligible to receive this extremely valuable rebate. Sign up for The Home Depot rebate program through the RPOA and receive 2% back on all your purchases*— no matter how small or big. This rebate is on top of any other discount or sale price, including contractor rates! Call the RPOA today and start saving! 616-454-3385 * For semi-annual purchases over $1,249. Rebate checks are sent out semi-annually, usually in March and August.
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