Michigan Landlord Magazine - September 2021 by RPOA

SEP TEM BER 2021 | w ww. rp oaonl ine.o rg

Eviction Moratorium Lifted—Again: Blocked by Supreme Court Common Misconceptions About Section 8

1.45 Million Mortgages Remain Seriously Past Due — page 10

Land Banks Are on the Rise — page 18

Home Values Keep Rising in Opportunity Zones — page 24

A P UB L I CATI O N O F TH E RENTAL PRO PERT Y OWNERS AS S O CIATIO N

R E N TA L P R O P E R T Y O W N E R S A S S O C I AT I O N

Each week we discuss topics, tips and techniques designed to make you a more confident and successful rental property owner and real estate investor. Our guests include buy and hold investors, flippers, wholesalers, property managers, brokers, legal advisors, insurance providers, mortgage brokers— you name it; we’re talking to some of the top names in the real estate investing business in Michigan.

“

Top 100 Business/ Investing Podcasts on iTunes. Listen On

“ Our host, Brian Hamrick from Hamrick Investment Group, is a successful investor in apartments, self-storage, and non-performing notes. He has bought and sold over 450 units in West Michigan.

rpoaonline.org /podcasts AND :

REAL ESTATE INVESTOR & LANDLORD NETWORKING BREAKFAST Join us every Friday morning at 8 am! The Friday Morning REI breakfast is an open, informal networking session for vendors, lenders, landlords and investors who are invited to share their haves and wants. Where: Russ’ Restaurant 3966 Plainfield Ave NE Grand Rapids, MI 49525

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CO N TEN T S FEAT URE S 5

WELCOME NEW MEMBERS!

KNOWLEDGE BASE: COMMON

ZONES 30

PENDING HOME SALES DOWN 1.9% IN JUNE

MISCONCEPTIONS OF SECTION 8 16

MEMBER-TO-MEMBER DISCOUNTS

UPCOMING COURSES & EVENTS

AR T I CLE S 10

EXISTING HOME SALES UP 2% IN JULY

NEW SINGLE-FAMILY HOME SALES UP IN JULY

HOUSING STARTS DOWN 7% IN JULY

1.45 MILLION MORTGAGES REMAIN SERIOUSLY PAST DUE

94% OF METRO AREAS SAW DOUBLE-DIGIT PRICE GROWTH IN Q2 ’2021

EVICTION MORATORIUM LIFTED—AGAIN: BLOCKED BY SUPREME COURT

SCOTT MEYERS: HOW TO INVEST IN SELF-

VOLUME 57, ISSUE 9 www.rpoaonline.org

STORAGE TO CREATE PASSIVE INCOME—2021

The MICHIGAN LANDLORD magazine's goal is to

RPOA VIRTUAL CONFERENCE

provide a forum for real estate investment and rental

LAND BANKS ARE ON THE RISE

property ownership and management ideas and news.

USING A KEY WORD HELPS YOU GET THE RIGHT TENANT

RENTS ARE RISING AT RECORD SPEED

HUD, FHFA TEAM UP TO BOOST FAIR HOUSING ENFORCEMENT

HOME VALUES KEEP RISING IN OPPORTUNITY

Our articles, columns, and other features should not be construed as 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 2021

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W H E R E R E A L E S TAT E I N V E S TO R S A N D L A N D L O R D S G O F O R S U C C E S S

WELCOME NEW MEMBERS!

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

(616) 454-3385 • Fax: (616) 454-6163

Email: contactrpoa@rpoaonline.org Websites: www.rpoaonline.org www.MIrentalguide.com Hours:

Monday - Friday 9:00 AM - 4:00 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.

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KNOWLEDGE BASE COMMON MISCONCEPTIONS ABOUT SECTION 8

The Housing Choice Voucher (HCV) or commonly

landlords will fall into this category. Housing Quality

named “Section 8” is funded through Housing and

Standards (HQS) Inspections are standard practice

Urban Development (HUD). It is an income based

to ensure a unit qualifies for a participant. HUD

rental assistance program designed to help provide

requires that PHAs use the more stringent between

those in need with affordable, safe, sanitary, and

standards of local or federal policy. If an inspection

decent housing.

fails, it does not mean the unit is disqualified; time is given for repairs and a reinspection may

Subsidy amounts will vary as it is based on several

be completed.

factors, including the applicant’s income, unit type, bedroom size, rental amount, and utilities the applicant would be responsible for.

2. There is too much paperwork. When processing an application for a unit, the following is the only additional required paperwork:

All applicants go through a similar process, including

• HUD Request for Tenancy Approval form (RFTA).

applying for the waitlist and, if selected, they must

It is a two-page form, that provides the details on

complete an eligibility process to determine if

the unit, necessary to determine if the applicant

they qualify for assistance. Once the applicant is

qualifies for the unit.

determined qualified, they are issued a voucher.

• The Housing Assistance Payment (HAP) Contract and a W-9. A contract between the owner/landlord

The voucher allows them to begin searching for a unit

and the Public Housing Agency (PHA) to ensure

through private owners/landlords. Owners/Landlords

the owner/landlord follows general regulations, to

then have the ability to screen the applicant as they

ensure payment.

would for any other non-subsidized tenant. Once an

• A direct deposit form for HUD funds, if you choose

applicant is approved through an owner/landlord,

your funds to be deposited instead of receiving a

the unit would be reviewed for affordability for the

paper check. This is optional.

applicant. It must meet the approved voucher size for the applicant and pass Housing Quality Standards

• Annually the owner/landlord will receive a renewal form.

(HQS) inspection before the applicant can move into the unit.

3. The PHA determines how much an owner/ landlord can charge in rent. PHAs cannot

Misconceptions of Section 8

determine rental rates for owners/landlords. HUD will annually issue a fair market rent that the PHA

1. Inspections are too rigorous. HUD requires units

must consider when qualifying an applicant for a

to be safe, decent, and sanitary. Most owners/

unit. The PHA can inform an owner/landlord if or if

W H E R E R E A L E S TAT E I N V E S TO R S A N D L A N D L O R D S G O F O R S U C C E S S

not the applicant income qualifies. If the applicant

the same tenants. Anyone on the lease, must be

is responsible for more than 40% of their annual

included on the participant’s voucher. If they are

income, it is considered not affordable to the

not on the participant’s voucher, they cannot co-

participant. An owner/landlord may lower the rent

sign.

to allow the applicant to qualify, however, they are not obligated to do so. The rental amount can then be raised after the 1st year.

6. Owners/landlords cannot raise rent for Section 8 participants. Rent increases are allowed after the initial 12-month lease for a participant. All

4. Owners/landlords cannot evict Section 8

that is required is a 60-day written notice provided

participants and they must use different approval

to the tenant and PHA. Additionally, the PHA will

processes for applications. To comply with

send renewal paperwork approximately 90 days

Fair Housing, Section 8 participants cannot be

prior to the end of the lease for each participant

treated any differently than un-subsidized tenants,

which allows an owner/landlord to submit a rental

whether that be in the approval process or as

increase annually if they so wish.

tenants. If eviction or other actions are justified, the only difference is the PHA requires that the

7. PHAs can enforce an owner’s/landlord’s lease.

owner/landlord notify the participants coordinator

PHAs can only hold participants responsible for

of any negative actions.

the HCV Program using the PHA’s policies. A PHA cannot enforce the lease, that must be done

5. Section 8 allows cosigners. If the owner/landlord

between the owner/landlord and the tenant.

requires a co-signer for the applicant to qualify,

If there are serious violations that the owner/

generally the co-signer is incorporated into the

landlord would like the PHA to consider against

lease. The lease and the voucher must include

the HCV policy, there must be written verification SEPTEMBER 2021

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provided.

more accurate estimate.

8. PHAs can help owners/landlords collect money

Knowing that this is a federally funded program, it

owed to them. Housing agencies cannot collect

will have regulations that the PHAs must adhere

money owed from participants on behalf of

to and these regulations are in place to ensure

owners/landlords. As mentioned in #7 we can

the participants are treated fairly and the owners/

hold participants responsible for the HCV program

landlords are compensated and responsible for their

based on policies and require written verification

properties.

if there is an outstanding balance. It is the goal of PHAs to have a positive relationship 9. Owners/landlords must sign up or register

with both tenants and owners/landlords.

for Section 8 or register to rent to an HCV participant. There is no required registration or

Housing is detrimental in the lives of everyone.

required training for owners/landlords to rent to

Understanding that the goal is housing families, while

HCV participants. If you have questions regarding

maintaining the owners/landlords lease, the PHAs

the process, most PHAs can answer questions

policies and HUD regulations will create a better

directly, may have owner/landlord manuals or

experience for all.

some may even conduct owner/landlord trainings. Article by the Wyoming Housing Commission. 10. PHAs are not interested, nor do they listen to concerns of owners/landlords. PHAs are always interested in listening to owner/landlord concerns, we are here to work with you not against you! If there are any concerns in general or regarding a participant or applicant, please reach out to the

It pays to upgrade your properties!

PHA. However, A PHA cannot assist if they are not informed. Please do not wait until the issue is months or years in the making to attempt a resolution. It is difficult for a PHA to enforce a policy or regulation without timely documentation. 11. Applicants do not know how much their voucher is worth. Voucher amounts vary based on income, unit type, number of bedrooms, rental amount, and utilities an applicant would be responsible for. We do our best to provide estimated budgets to our applicants and participants, if you want a specific amount that a PHA would pay for toward rent then you can contact the PHA with the above listed information on the unit and a staff can provide a

With a FREE Home Energy Analysis from Consumers Energy, you’ll find ways to improve the energy efficiency of your properties, while enjoying free upgrades that may include: • Programmable thermostats • LED bulbs and nightlights • Pipe wrap, aerators and showerheads* *Electric water heater customers

Learn more about upgrading your properties and saving you and your tenants up to $150 yearly on energy costs in the process! Contact Erin Donnelly at 810-429-0627 or edonnelly@seelllc.com for more information!

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Sign Up for The Home Depot Rebate Now! The RPOA's membership in the National Real Estate Investors Association (NREIA) 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 Please note: If the credit/debit card for the HD Pro Account is changed, please make sure the NREIA code is also added to that account in order to continue to get the discounts. DO NOT delete the old card from the account. * For semi-annual purchases over $5,000. Rebate checks are sent out semi-annually, usually in March and August.

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EXISTING HOME SALES UP 2% IN JULY The National Association of Realtors is reporting that existing home sales were up 2% in July to a seasonally-adjusted annual rate of 5.99 million (up 1.5% from one year ago). Total housing inventory at the end of July was 1.32 million units, up 7.3% from one year ago. Unsold inventory sits at a 2.6-month supply at the current sales pace with properties remaining on the market for around 17 days. The median existing-home price for all housing types was $359,900, up 17.8% from July, 2020.

NEW SINGLE-FAMILY HOME SALES UP IN JULY The U.S. Government is reporting that sales of new single-family houses in July, 2021 were at a seasonally adjusted annual rate of 708k, which is 1% higher than June’s revised rate and is 27.2% lower than one year ago. The median sales price of new houses sold in July was $390,500 with an average sales price of $446k. There were an estimated 367k new houses for sale at the end of July representing a 6.2-month supply at the current sales rate.

HOUSING STARTS DOWN 7% IN JULY The U.S. government is reporting that privately-owned housing starts in July were at a seasonally adjusted annual rate of 1,534,000, which is 7% lower than June’s revised number. However, this figure is 2.5% higher than one year ago. July’s rate for units in buildings with five units or more was 412k. Privately-owned housing units authorized by building permits in July were at a seasonally adjusted annual rate of 1,635,000, which was 2.6% higher than June’s revised number. Authorizations of units in buildings with five units or more were at a rate of 532k in July.

1.45 MILLION MORTGAGES REMAIN SERIOUSLY PAST DUE According to Black Knight’s “first look” report for July, 2021, overall delinquency volumes continued to edge closer to their prepandemic levels, however the number of serious delinquencies were still significantly elevated at the end of July. They point out that around 1.45 million borrowers remained 90+ days past due (not yet in foreclosure) entering August. Black Knight says the potential foreclosure activity in the coming months warrants close observation.

Advertise in

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

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Is it time to check your

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.

Smoke Detectors?

Smoke alarm safety is very important! Having enough smoke alarms and keeping them in working condition are important ﬁre safety steps you can take to save lives in your home and in the homes of your renters.

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.

Grand Rapids - 1234 Michigan St. NE * 616.451.0724

1205 Fulton St. West 616.233.4711

Walker - 4300 Remembrance Rd. 616.453.7741

Rockford - 643 Northland Dr. 616.866.9155

WE’RE HERE TO HELP MONDAY - SATURDAY 8AM - 8PM, SUNDAY 9AM - 6PM

*OPEN AT 7AM MONDAY - FRIDAY

94% of Metro Areas Saw Double-Digit Price Growth in Q2 2021 According to the National Association of Realtors Metropolitan Median Area Prices and Affordability and Housing Affordability Index for Q2, 2021, the median sales price of singlefamily existing homes rose 22.9% to $357,900, an increase of $66,800 from one year ago. The median sales price rose in 99% of measured metro areas in Q2 of 2021 compared to one year ago—with double-digit price gains in 94% of their markets. However, the NAR says these price gains won’t be repeated in 2022. “Home price gains and the accompanying housing wealth accumulation have been spectacular over the past year, but are unlikely to be repeated in 2022… There are signs of more supply reaching the market and some tapering of demand… The housing market looks to move from ‘super-hot’ to ‘warm’ with markedly slower price gains.” Said Lawrence Yun, the NAR’s chief economist. SEPTEMBER 2021

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Eviction Moratorium Lifted—Again: Blocked by Supreme Court In a decision late Thursday evening (8/26), The U.S. Supreme Court blocked the CDC from enforcing a federal moratorium on evictions that was recently reinstated by the Biden Administration. CNBC said called it a defeat for the Biden administration’s efforts to continue the eviction moratorium despite an earlier signal from the court that the government lacked the proper legal basis. Evictions can now move forward as normal within the limitations of the local courts. According to the The Wall Street Journal, in the unsigned opinion, the court’s conservative majority said the temporary eviction ban exceeded the CDC’s authority to combat communicable diseases, forcing landlords to bear the pandemic’s costs. “It would be one thing if Congress had specifically authorized the action that the CDC has taken. But that has not happened. Instead, the CDC has imposed a nationwide moratorium on evictions in reliance on a decades-old statute that authorizes it to implement measures like fumigation and pest extermination.” Said the majority of 6 justices, in an unsigned opinion, as reported by CNBC. “The moratorium has put…millions of landlords across the country, at risk of irreparable harm by depriving them of rent payments with no guarantee of eventual recovery,” the court said. “Many landlords have modest means. And preventing them from evicting tenants who breach their leases intrudes on one of the most fundamental elements of property ownership—the right to exclude.” Said the majority of 6 justices, in an unsigned decision, as reported by the Wall Street Journal. “After almost a year of the unconstitutional eviction moratorium, at least the Supreme Court is interested in returning to the rule of law, now numerous states and municipalities need to Open the courts and allow access to justice for all.” Charles Tassell, COO of National REIA. Of course, this doesn’t solve the problem of passed due rent owed to 1,000’s of landlords in Michigan. Landlords should reach out to the local organization assisting tenants with past due and future rent and past due utilities as soon as possible to get the ball rolling to receive payment. Once the tenant is evicted—assistance is no longer available. Go here to find the local organization providing assistance through Michigan’s CERA program. 12

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2021 MICHIGAN LANDLORD & REAL ESTATE INVESTOR

VIRTUAL

ANNUAL CONFERENCE & EXPO

Scott Meyers, the nation's leading expert on self-storage investing, will join us for a FREE 2-hour virtual event on Thursday, September 16th, 2021 at 11am EST to discuss the benefits of investing in self-storage, the latest self-storage investing strategies and teach you how you can take advantage of the incredible demand for self-storage facilities to make massive profits! Scott Meyers has been involved in the self-storage industry as a developer, owner, syndicator and operator since 2005. He owns and operates 22 facilities in nine states and has bought, developed, and sold over 4,200 units and over 4 million square feet of commercial and self-storage properties.

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PLUS More National Speakers!

Larry Goins

Shaun McCloskey

Make Filthy Riches by Buying Cheap Houses October 21st

Building an Insane Real Estate Business You’ll Love November 18th

Larry Goins has been buying dirt cheap houses that

For 13 years, Shaun McCloskey has been coaching

one else wants for $5,000 or less and selling them

entrepreneurs to create a vision that allows them to

for $30,000 without a buyers’ list, cash or credit

live the life they want starting with their vision and

and will teach you how you can do it too!

then helping them build their business around that.

Thank You to Our Sponsors!

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RPOA Member-to-Member Discounts GREAT LAKES ACE 10% discount on all 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. 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) 885-0132. BERGSMA PLUMBING Bergsma Plumbing is offering a 15% discount to RPOA members when they mention seeing this listing on the website. Members must provide their RPOA member number to receive this discount. COMPASS REALTY RPOA exclusive discount! Free 1 hour real estate consultation. Call Allison Koetsier at 616-6339445. CONSUMERS ENERGY AC Peak Cycling Program: Join the movement, choose clean and cut costs for you and your tenants. Enroll in Consumers Energy’s AC Peak Cycling program to save energy and receive $25 for each rental unit where a device is installed. (Ex.: 16

100 units is $2,500 for you!) Tenants also receive $25 in addition to earning up to $32 in bill credits each year from June to September. DISCOUNT HOME IMPROVEMENT RPOA members: receive 6% off your order. (616) 451-3600. FOUNDATION SPECIALIST Foundation Specialist is offering to waive inspection fees and give free estimates for customers who mention they are a member of the RPOA when scheduling. (616) 4380551. GRAND RAPIDS CARPET & FURNITURE CLEANERS RPOA members receive 4th room free! Call Dave at (616) 4535368. GRAND RAPIDS PRESS $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. HD RECOVERY HD Recovery is offering free impound service for abandoned vehicles. Call Jordan Morren at (616) 3255751 with questions! HOME DEPOT Sign up for the

Home Depot rebate program through the RPOA and receive a 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. *2% OF TOTAL PURCHASES OVER $5,000 SEMI-ANNUALLY. INDOOR CLIMATE SOLUTIONS Offering all RPOA members Grand Rapids heating inspection stickers for $50.00 each and a 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). 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. J R MORTGAGE SERVICES LLC Free appraisals for 1 to 4 family unit homes with closed loan

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Take advantage of these great RPOA member-only discounts!

application for RPOA members only. Call Jim Riley at (616) 292-4491. KABINET With a Kabinet Business Plan, add one property to your account and get the second property free for the 1st year (a $39.99 savings) with code “RPOA”. Kabinet is a secure digital platform allowing you to keep track of your entire real estate portfolio in one place, anytime and anywhere. kabinethome.com MODERNISTIC CLEANING & RESTORATION Protect your investment! RPOA members, call for special pricing. Need something other than carpet cleaning? We provide FREE ESTIMATES on all of our services: air duct and dryer vent cleaning, tile and grout cleaning, and flood/fire/mold restoration. Call the simple & quick cleaning and restoration experts! (616) 531-1666. OFFICE MAX/OFFICE DEPOT Office Max 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. PRIORITY PAINTING LLC Priority Painting LLC is offering a 10% discount to RPOA members. Contact David at (616) 8937932

RENTAL HERO Accounting software for rental property owners. RPOA members get the first year for only $79 then pay only $7.95/month, billed annually at $95 after that. Free 30-day trial. To sign up, visit rentalhero.io/rpoami. 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) 730-2058. 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. SIMPLIFYEM SimplifyEm is an easy-to-use property management software designed by real estate professionals. They are offering a 25% discount for a 1 year subscription and a 50% discount for a 3 year subscription. Contact Bert

Foreman at (510) 876-7070 for more information. VREDEVOOGD-BRUMMEL RISK MANAGEMENT & INSURANCE Independent insurance agency representing multiple insurance companies. Always providing home and auto insurance but specializing in rental and vacant property insurance. We do all the shopping for you and special RPOA member discounts are available. Call Joel Emerson at 616-797-9988 for more details. WEST MICHIGAN AIR DUCT AND HVAC Offering all RPOA members an exclusive 10% discount on all service repairs, installs, and tune ups. They also offer a pricing tool on their website at quotemyhvac. com that gives immediate furnace, AC, and water heater replacement estimates. Call David Mellema at 616-4215610 to learn more.

ASSOCIATE MEMBERS WHO WOULD L I K E T O PA R T I C I PAT E I N T H E DISCOUNT PROGRAM SHOULD CALL THE RPOA OFFICE AT 616-454-3385.

"The promotion of offers, including discounts, rebates and other such benefits, goods, and services provided by the Rental Property Owners Association of Kent County (“RPOA”) members and advertisers within the Michigan Landlord magazine (collectively, the “Offers”), are for informational purposes only and are not an endorsement or recommendation. The Offers are not made by the RPOA or the Michigan Landlord magazine and the advertiser/member is solely responsible to you for the delivery of any goods or services. Your correspondence or business dealings with, or participation in the Offers or promotions of, advertisers/members found in the Michigan Landlord magazine, including payment and delivery of related goods or services, and any other terms, conditions, warranties or representations associated with such dealings, are solely between you and such advertiser/member. Neither the RPOA nor the Michigan Landlord magazine guarantees the existence or continued existence of any Offers, which may change from time to time. You agree to waive and release the RPOA and the Michigan Landlord magazine from and against any and all liability, loss or damage of any sort, incurred as the result of any such dealings with, or as the result of the presence of, any advertisement or promotion within the Michigan Landlord magazine.”

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LAND BANKS ARE ON THE RISE More communities are turning to land banks to help address vacant, abandoned, and tax-delinquent properties. Since 2010, over 200 land banks have launched nationwide, said Brian Larkin, director of the National Land Bank Network at the Center for Community Progress. Land banks acquire and maintain distressed properties with the goal of transferring them back to responsible ownership and productive use, thereby aiding the revitalization of communities. Larkin spoke on Tuesday at the National Association of REALTORS®’ “Land Banks: A Tool for Recovery and Stabilization” webinar. He presented the findings from NLBN’s “State of Land Banks” survey, which invited land banks throughout the U.S. to share their data to help assess the impact that the entities are having on vacant and abandoned properties. Sixteen states currently have comprehensive enabling legislation, which grants states the authority they need to intervene and act on tax-foreclosed properties, and an additional three have state enabling legislation, which supports actions by cities and counties. According to Larkin, states need more of both. “Land banks are public entities,” he said. “All action starts with the state, and that’s where we need to see legislation. State laws enable the processes that expedite and clear the titles to distressed property.” Funding for land banks is another area where action is required. The survey found that 47% of land banks have a staff of one full-time equivalent employee or less. And 50% of land banks don’t have the data and software necessary to identify current and potential inventory. “There is a huge need here,” said Larkin. “Land banks are looking to chart their future, and they need greater resources.” 18

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Three federal bills that have the potential to provide some of the much-needed funding that could help land banks carry out their work, Larkin said. The American Rescue Plan Act, enacted in March, includes $360 billion in funding for state, local, and territorial governments for economic relief; the recently introduced Restoring Communities Left Behind Act could offer up to $5 billion to address community distress; and the still-in-the-works National Land Bank Network Act could provide up to $60 million specifically for cash-strapped land banks. “These bills all represent ways in which creative funding can be available for land banks,” said Larkin. “These funds could be used to create vibrant communities.” Other highlights from the survey: • Land banks have a median of 40 properties but an average of 1,887 properties. • Michigan and Ohio have the largest number of properties. In Ohio, Cleveland has 3,000, while in Michigan, Detroit has the most with 82,000. • 87% of parcels held by land banks are vacant lots. These vacant lots are where land banks can be particularly proactive partners, said Larkin. Land banks can help with strategizing—positioning properties to be the best value for the community around them. “We not only look at what is good for the individual property, but also what is good for the property right next to it. Land banks prioritize residents and the community around them.” Article by REALTOR® Magazine, August 18th, 2021.

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Using a Key Word Helps You Get the Right Tenant With summer finally here, I look forward to slipping on my waders, stepping into a river, and casting my fly rod in search of that trophy fish. But before I do, I always go through a list of things to prepare me for success. I check the local regulations and consult the local guides and experts to see where the fish are and what they are biting. Armed with this knowledge, it is left up to me to identify the specific fish (usually German brown or rainbow trout) I want to cast to and catch. Landlords across the country are going to be facing a similar situation this summer as the eviction moratorium looks to be ending soon. You will be casting into an ever-expanding pool of potential tenants and, as a landlord, you want a tenant that wants YOUR house, not just any house. A tenant who just wants any house, in a year when the lease is up, will be ready for any another house. A tenant who wants YOUR house will become a valuable business partner and stay there for years. One of the best methods for helping you find the perfect tenant for your property sounds mysterious but is quite simple and straight-forward; a key word, which might be a specific word or phrase you place in your listings that you request they use when they respond to your listing. With the increased number of online rental platforms available to you, using a key word in your listings will help you in the following ways: What is a 'Key Word'? Your key word should be something that you use to emphasize specific features or requirements of your property. They may include things like the property characteristics, availability date, smoking policy, length of lease, or anything else you want to highlight as important to you. A word of caution to avoid any words or phrasing that would indicate discrimination or violation of protected classes. A phrase like "Please acknowledge in your showing request that you understand this property does not allow pets" is a perfect example of a key word. 20

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Where Do I Place a Key Word? David Pickron, President of Rent Perfect, discussed this at length on a recent podcast (which can be found on RealEstatelnvestingToday.com). He advises that landlords place their key word in one of the last two sentences of the listing to find candidates that are responsible enough to read the entire listing, and not just hit "apply" to every possible property that comes across their view. When fishing it is critical to present your fly to the fish you are trying to catch, otherwise you are just fishing water. By having the right fly presented in the right way to attract the attention of the fish, you exponentially increase the odds of attracting the fish you want to catch. The same reasoning applies as you are trying to identify a responsible, attentive tenant for your property. If you have a potential tenant that reads an entire listing and sees your key word that says, "I will not respond to your request to view the property unless you acknowledge that this property is not available until July 1." When 20 potential tenants request a showing of the property and only two of them respond with the required key word/ phrase, I am only going to show the property to those two people. This attention to detail from a tenant signals that they will also read the entire lease and understand the relationship we are creating, which saves me a lot of time in showing the property to the 18 other people who would be happy with any property. A Key Word Saves You Time! Whether you are a full-time landlord or have a single property, time equals money, and showing the property and reviewing applications can be extremely time-consuming. Using a key word is just one way to prescreen applicants and free your time up for those individuals that are truly interested specifically in your property. With several of the rental property platforms in the market today, an applicant can pay a monthly fee and submit their application as many times as they want to as many properties as they want. If you've ever found yourself responding to an applicant inquiry only to have the applicant, ask, "now which property is yours," chances are they have applied all over town and will take any property that comes along. This person doesn't want your house, they want a house, and they are not the business partner you are looking to have for the next five years. Imagine how frustrated you would be if you planned a trip to catch cutthroat trout and showed up only to find that in addition to trout, the game warden had also stocked catfish, carp and bluegill. In the next few months, the places we go to find potential tenants will be flooded with all sorts of applicants, and likely many of them will have been recently evicted. By using a key word, along with the other tools we train on, you can make sure that the tenant you put into your property is the business partner worth $120,000 that you are fishing for. Article by Scot Aubrey, Vice President of Rent Perfect. Rent Perfect is a preferred vendor of the National Real Estate Investors Association. They offer the most accurate and thorough credit and background screening available. Members of NREIA receive a discounted set up fee. Learn more at www.rentperfect.com.

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Rents Are Rising at Record Speed A recent report from Bloomberg is highlighting how rents across the nation are rising at record speeds. They point out that the number of occupied rental-apartment units rose by about 500k in Q2, the biggest annual increase in data going back to 1993 (according to data from RealPage) as well as occupancy hitting a new high of 96.9. “Any desirable rental is going within hours, just like the desirable sales,” said Shannon Dopkins, a Realtor in Tampa. “One woman passed on a place that was beat up with water damage. Somebody else decided to rent it.” Additionally, according to the latest Yardi Matrix Multifamily Report, the average U.S. multifamily rents in July increased $26 to $1,510 (up 8.3% year-over-year). Yardi says single-family (built-to-rent) rents continue to grow at an even faster pace than multifamily, with national rents up 12.8% year-over-year. In addition, out of their top 30 markets, nearly half had double-digit year-over-year rent growth. “Strong demand for apartments has produced a remarkable recovery across the country. Lower cost metros that fared well during the pandemic continue to outperform, but Gateway metros are also roaring back.”

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HUD, FHFA Team Up to Boost Fair Housing Enforcement The Federal Housing Finance Agency and the Department of Housing and Urban Development announced that they are partnering to better enforce fair housing and fair lending regulations. The FHFA and HUD entered into what they called a first-of-its-kind collaborative agreement on Thursday, in which the two agencies have committed to sharing information and

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coordinating investigations and compliance reviews. HUD is primarily charged as the government agency that enforces the Fair Housing Act. The FHFA regulates the government-sponsored enterprises of Fannie Mae and Freddie Mac as well as the Federal Home Loan Banks. The memorandum will help strengthen their ability to enforce fair housing and fair lending requirements by promoting information sharing, coordination on investigations, compliance reviews, and the ongoing monitoring of Fannie Mae and Freddie Mac, said HUD and the FHFA in the announcement. They expect the agreement to lead to “stronger oversight that will help advance vigorous fair housing enforcement that can begin to redress our nation’s history of

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discriminatory housing practices.” The memorandum “is an important and historic step to advance and strengthen the enforcement of our nation’s fair housing and fair lending requirements,” said HUD Secretary Marcia L. Fudge. “FHFA oversees entities that have significant control over a large share of the mortgage market. Stepping up our collective fair housing oversight of their activities will make an enormous impact on lives and communities.” SEPTEMBER 2021

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Home Values Keep Rising in Opportunity Zones According to ATTOM Data’s second-quarter 2021 Opportunity Zones report median singlefamily home prices increased from Q2 of 2020 to the second quarter of 2021 in 75% of Opportunity Zones and rose by at least 15% in about half of them. In addition they report that price patterns in Oppor tunity Zones continued to roughly track trends in other areas of the U.S. “Housing markets kept chugging along in some of the nation’s poorest neighborhoods during the second quarter of this year in another sign that the decade long home-price boom across the nation knows pretty much no boundaries. Values kept rising inside specially designated Opportunity Zones at around the same rate as they did in other areas even as the Coronavirus pandemic continued causing economic hardship,” said Todd Teta, chief product officer with ATTOM.

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UPCOMING COURSES & EVENTS SCHEDULE SCOTT MEYERS: HOW TO INVEST IN SELF-STORAGE TO CREATE PASSIVE INCOME—2021 VIRTUAL CONFERENCE September 16th @ 11:00 am The self storage business is widely regarded as the most profitable and easily managed real estate investment in the country. It's one of the best ways to earn significant passive income without all the hassles of tenants, toilets, or trash! Scott Meyers is known as the nation's leading expert on self-storage investing. Investing in self-storage facilities offers many benefits including resistance to recession, high returns, low maintenance and more. Scott will join us on September 16th to discuss the many benefits of investing in self-storage, the latest selfstorage investing strategies and teach you how you can take advantage of the incredible demand for self-storage facilities to make massive profits! Scott will teach you: • Strategies that are working in the self-storage development sector today • How you can take advantage of the incredible demand for self-storage facilities in virtually every market and make significant amounts of passive income • The latest and most innovative business models in the self storage industry • How you can start developing your own self-storage facility Click here to register now!

RPOA WEEKLY REAL ESTATE INVESTOR & LANDLORD NETWORKING BREAKFAST Every Friday @ 8:00 am Join us at Russ’ Restaurant on Plainfield Ave in Grand Rapids for networking with landlords, investors, realtors,

lenders and vendors who are invited to share their haves and wants! No registration is necessary, but please note: the restaurant requests that all attendees please place a food order during the event. WHERE: Russ’ Restaurant 3966 Plainfield Ave NE Grand Rapids, MI 49525

UNDERSTANDING LEASES & CONTRACT LAW (ONLINE VIA ZOOM) September 8 @ 10:00 am 2 Hours LEGAL CE Credit for Licensed Real Estate Professionals Thinking of writing your own lease? Confused about the terminology used on leases? How about basic contract law? Do you know what a security deposit and an inventory checklist are? This course will provide a foundation of the requirements for leases in the State of Michigan. Learn about what can and can’t be in a lease, how tenants can walk away from a lease, clause requirements within a lease, and more. Presented by Lane Zabawa, attorney at Ventures Law Firm. Click here to register.

R P O A M O N T H LY N E T W O R K I N G BREAKFAST (VIRTUAL NETWORKING) September 10 @ 8:00 am In addition to our weekly in-person Friday morning breakfast networking events, the RPOA has decided to add a monthly virtual networking breakfast on the second Friday of each month for those who are either unable to attend the weekly

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September 23 @ 3:00 pm

in-person event or just prefer to network remotely. Join us from 8am-9am for virtual networking with landlords, investors, realtors, lenders and vendors who are invited to share their haves and wants! Click here to register.

REHABBING FOR RENTAL AND FLIPPING PROFITS (3-PART COURSE) 8 Hours CE Credit for Licensed Real Estate Professionals 8 Hours Credit for RPOA REI Mastery Training Program September 21: 9 a.m. to 12 p.m. September 23: 9 a.m. to 12 p.m. September 28: 9 a.m. to 12 p.m. A successful real estate investment starts with buying the right property and doing the right rehab for the right type of investment. Newbies and experienced investors alike want to know how the successful investor finds properties, evaluates potential ROI and determines what kind and to what extent rehabbing a property is necessary. There’s a big difference between rehab jobs for buy and hold or flips. As they say, the devil is in the details. This course won’t be your typical overview. It will cover everything from A-Z and includes on-site visits to existing properties for real world estimation. When you’re done with this course, you’ll know everything you need to know to get started and do your first rehab for a rental or buy and flip. Justin Workman, experienced investor and licensed builder, will be the instructor for this multi-day course. Click here to register.

EVICTIONS IN MICHIGAN (ONLINE VIA ZOOM) 8 Hours CE Credit for Licensed Real Estate Professionals

A successful real estate investment starts with buying the right property and doing the right rehab for the right type of investment. Newbies and experienced investors alike want to know how the successful investor finds properties, evaluates potential ROI and determines what kind and to what extent rehabbing a property is necessary. There’s a big difference between rehab jobs for buy and hold or flips. As they say, the devil is in the details. • • • • • •

What an eviction is—and isn’t Different types of evictions The legal eviction process in Michigan What constitutes an illegal eviction The forms needed to complete an eviction How to physically put the tenant out

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A DVA N C E D F I N A N C I A L A N A LY S I S FOR COMMERCIAL & MULTIFAMILY PROPERTIES (ONLINE VIA ZOOM OR IN PERSON) 3 Hours CE Credit for Licensed Real Estate Professionals September 29 @ 9:00 am Are you ready to move beyond the basics of real estate investment analysis? Do you want to invest in something more than single family rentals? If yes, this class is for you. Whether you are a beginning or experienced real estate investor, landlord, or a broker looking to get the best value for your client, you need to understand and know how to run your numbers. While this is true for smaller deals, the numbers are even more important for large capital investments in commercial multifamily properties. A lot of people believe MATH is a four-letter word. But there’s no getting around the truth that in real estate MATH = MONEY! The instructor, Brian Hamrick, controls 380 units and has bought and has sold over $16 million in real estate assets. Brian also hosts the “Rental Property Owner & Real Estate Investor Podcast”, which is sponsored by the RPOA. Click here to register. SEPTEMBER 2021

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PENDING HOME SALES DOWN 1.9% IN JUNE The National Association of Realtors is reporting that pending home sales were down 1.9% in June, 2021. The NAR’s Pending Home Sales Index (a forward-looking indicator based on contract signings) fell to 112.8. In addition, they report that year-over-year contract signings were also down 1.9%. They say the moderate slowdown is largely due to huge spike in home prices. “Pending sales have seesawed since January, indicating a turning point for the market…Buyers are still interested and want to own a home, but record-high home prices are causing some to retreat.” However, “The Midwest region offers the most affordable costs for a home and hence that region has seen better sales activity compared to other areas in recent months.” Said Lawrence Yun, the NAR’s chief economist.

BOARD OF DIRECTORS Justin Workman, President Kevin Wright, President-Elect Kim Post, Past-President Mark Troy, Secretary Gary Hall, Treasurer Haley Clough Joel Emerson Jeremy Garcia Brian Hamrick Bert Heyboer James Loftus Rob Minch Sharon Olson Jon Smith Nick Wyma

RPOA STAFF: (616) 454-3385 Clay Powell, Director Email: clayp@rpoaonline.org Heather VandenBos Email: heatherv@rpoaonline.org Kathy Bartnick

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A 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