Rental Housing Journal Utah December 2016

December 2016 - Vol. 8 Issue 12

Rental Housing Journal Utah

2. President’s Message – The 4 Values of the Utah Apartment Association 3. Director’s Message – 2016: Year in Review 4. Ask the Attorney – Starting an Eviction – Eviction Orders & Disputed Evictions

UPCOMING EVENTS Good Landlord Class South Ogden .................... Jan 18th 6:00 pm Salt Lake............................ Jan 20th 8:30am www.GoodLandlordingTraining.com EVENTS

UAA Tribute Awards .................................. Jan 27th Little America, Salt Lake City

Day at the Hill ............................................... Feb 14th Utah State Capitol, Salt Lake City

5. UAA Asked to Help Idaho Apartment Association

www.rentalhousingjournal.com • Professional Publishing, Inc Official Publication of The Utah Apartment Association Utah’s Leading Advocate for the Rental Housing Industry – 888-244-0401 – WWW.UAAHQ.ORG

2017 UPRO Classes Now Available

T

he upcoming schedule for UPRO classes has recently been approved for 2017, with classes on Legal Regulations and Maintenance scheduled for the early part of the year.

“These UPRO classes offer a unique opportunity for people in our industry to come discuss some of the issues they face on a regular basis – whether they own a handful of units they manage for themselves, manage a large apartment community, or operate a Property Management company for other owners” according to Taylor Smith, the UAA Education Coordinator in charge of creating the class schedule. “One of the most rewarding parts of the classes have been having the participants talk to each other and share tips, experiences, referrals and ideas. It’s like nothing I’ve ever seen before.”

The Utah Professional Rental Operators designation provides in depth coverage of what a participant need to know in order to

Warning!

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by Taylor Smith Utah Apartment Association

A

while ago the UAA received a call from one of our members asking about a letter they had received from “the Labor Regulatory Compliance Office” saying that they owed $285.00 in order to avoid prosecution. It includes “notices” about the requirement of employers to post information fliers informing employees employees of their rights – or face a fine up to $17,000. The continued on page 7

What is a Landlord Utility Agreement?

I

magine the following scenario: your tenant in a lower level unit calls you early on a Saturday morning late in December to let you know that there is a leak coming through the ceiling. You show up and knock on the unit directly above the tenant who called you – the tenant you know has been struggling to make their rent payment. Nobody answers the door, so you peak through the window and your eyes are greeted with a mag-

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Utah Apartment Association

President’s Message

448 E Winchester St Ste. 460 Salt Lake City, UT 84107 Ph: (801) 487-5619 Fax: (801) 484-8649 www.uaahq.org

The 4 Values of the Utah Apartment Association

Peter Harradine, AIT, CAM 2017 UAA Board Chair Utah Apartment Association

I

recently had the privilege of being reelected for another year as the UAA Board Chair. I am grateful for the continued opportunity to serve, and to the other board members, volunteers, staff and members who make the association work.

A few weeks ago during a planning session the UAA adopted the following four values as the ideals

that inspire and animate the as- 3 – Adapting quickly in a sociation. I feel like it important Changing World to share these values so that the We can adapt, accommodate, members can understand how we move quickly and embrace and not intend to serve their interests. resist constant change. We contribute ideas but ultimately move 1 - Passionate about in the direction chosen by the orRental Housing Success ganization. We also need to be able We are high energy, passionate to let go and move forward. about serving people and doing our best work. We aren’t apathetic, 4 – World class Resources low energy, or negative people – we & Programs want passion, channeled to serve We take pride in developing and the rental housing industry. maintaining the highest quality 2 – Connecting & Engaging and most relevant resources and programs in a timely manner. We People recognize our mission to advocate, We like people and want to con- educate and connect in the adnect and engage with others and vancement of the industry. help them to connect and engage with each other. We enjoy meeting and working with others and facilitating connections.

Moving forward in 2017 As we look to the future we anticipate that we will continue to face numerous challenges and opportunities. But whatever may come, you can rest assured that working together we will continue to fulfill our mission to be “Utah’s leading advocate and resource for the owners, real estate professionals, developers, management teams, suppliers and service providers dedicated to quality rental housing.”

ARIZONA, ALASKA, CALIFORNIA, COLORADO, DELAWARE, FLORIDA, GEORGIA, ILLINOIS, INDIANA, KANSAS, KENTUCKY, MASSACHUSETTS, NEVADA, NEW JERSEY, NEW YORK, NORTH CAROLINA, OHIO, OREGON, PENNSYLVANIA, TEXAS, UTAH, WASHINGTON, WASHINGTON D.C., WEST VIRGINIA & MORE.

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503-933-6437 Rental Housing Journal Utah · December 2016

Utah Apartment Association 448 E Winchester St Ste. 460 Salt Lake City, UT 84107 Ph: (801) 487-5619 Fax: (801) 484-8649 www.uaahq.org

Director’s Message

2016: Year in Review individuals with a criminal history provided that they can clearly point to a legitimate business reason for the policy.

New developments with "Assistance Animals" under Fair Housing L. Paul Smith, CAE UAA Executive Director Utah Apartment Association

W

“Assistance Animals” continues to be the most contentious and problematic Fair Housing issue faced by landlords. However things have improved some this year as the Government has clarified that certifications issues by internet companies that do not have a treatment relationship with the tenant are not considered a legitimate way of verifying that a tenant has a disability and needs an assistance animal.

hat a year!!! We have been very busy this year at the UAA working to ensure that your rights and your voice are represented at all levels of Government, and that our members are educated about legal changes that impact them.

Here is a brief overview of some of the most important issues that Housing Authority Reform and the Section 8 program have come up in 2016.

a package for the 2017 legislature that will expand affordable housing initiatives and further reform the Section 8 program to protect participating landlords.

Ogden Good Landlord Pilot Program In October of 2016 Ogden City launched a new pilot program as part of their Good Landlord initiative. In an effort to be fair to people with a criminal history without exposing the community to undue risk the city will now make it so that those who would be otherwise excluded from renting in Ogden because of their criminal history can obtain a waiver from the city if they can demonstrate that they pose less risk to the landlord and the neighborhood.

Changes to the Eviction Hearing Process During the 2016 Legislative ses-

Federal Guidelines on how sion the UAA asked the Utah State On November 1, 2016 a new to handle applicants with Legislature to consider altering eviction procedure rule approved a criminal history state law to make it voluntary to by the Utah Courts went into efOn April 4, 2016 HUD issued a Guidance relating to using Criminal History on applicants for rental housing. This Guidance was based upon a recent Supreme Court decision on disparate impact. The Government says it may be a "disparate impact" upon minorities and thus, violate the Fair Housing Act for a landlord to utilize criminal history to deny an applicant. However, landlords can still refuse to rent to

work with a Housing Authority (current law requires all landlords with 4+ units to accept housing). Because the bill encountered enough opposition it was decided to study it during the summer.

Since then the UAA is happy to report that the Housing Authorities have seriously undertaken in house reforms to insure that they protect the interests of landlords.

We have worked with the housing advocates and legislature to create

fect designed to prevent “frivolous evictions”. In essence the new rule requires that landlords have to provide tenants who they are evicting with the following at least 48 hours before the hearing: a copy of the rental agreement, eviction notices, itemized rent leger, and contact information for any witnesses that might be called. Tenants have the same requirements for notification of any defense they intend to use during the hearing.

Update with meth rules, and progress with the County Health Departments Until recently Utah was the only state in the US that allowed a controversial type of testing for methamphetamine contamination that can result in false positives and require landlords to spend thousands of dollars needlessly. The state has worked with the UAA this year to create a new rule that will prevent such abusive practices.

What’s next for 2017?

The next legislative session is rapidly approaching. We anticipate several issues about affordable housing being raised. We are also prepared to defend the Rental Housing Industry from any bills or proposals that would unnecessarily or unfairly impact the rights of landlords and property managers. As always, if you have an issue you would like to see addressed by the state or by your city, please contact the UAA Government Affairs committee by emailing info@ uaahq.org.

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Rental Housing Journal Utah is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in Investing & Real Estate Investor Quarterly

www.rentalhousingjournal.com The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

Rental Housing Journal Utah · December 2016

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Rental Housing Journal Utah

Ask the Attorney

Starting an Eviction

Eviction Orders & Disputed Evictions

By Jeremy M Shorts Utah Eviction Law

O

ver the last few months we’ve been highlighting the eviction process. This month we’ll cover Step #3 – eviction hearings and disputed evictions. The only time the eviction process usually requires a hearing is if the tenant disputes the eviction with the court. If the tenant does not dispute the eviction, then the Court will usually issue a “default” without any hearing or other proceedings.

We commonly have clients ask “We have a strong case, what could the tenant dispute?” Under Utah law there really isn’t any minimum required dispute for the tenant to fight the eviction. We joke that if the tenant used a Wendy’s napkin to write “I don’t think I should be evicted”, the court will probably hold a hearing. Even with a weak answer from the tenant, we usually recommend working toward a hearing to keep the case moving forward. It can easily take more time to dispute whether their “answer” was legitimate.

Under Utah law, landlords are entitled to an emergency eviction hearing if the eviction is based on (1) nonpayment, (2) criminal nuisance, (3) post foreclosure eviction, or (4) the landlord posts a possession bond with the court. Once an answer is filed with the court, an eviction hearing should be held within ten days. It is important to realize the purpose of the hearing – It is set up as an “Eviction Hearing” and not a “Judgment Hearing”.

The focus of an eviction hearing is to determine who should have possession of the property. Normally the judge makes that single decision and reserves all financial issues for future proceedings.

As the landlord’s attorney, I think it’s wise to only decide the eviction and not issue a judgment.

At an eviction hearing we don’t

4

really know the final judgment amount we should be asking for.

We usually know the rent owed at that point, but the landlord hasn’t had an opportunity to inspect and assess what damage has been done to the property or determine exactly how much lost rent is owed (i.e. how long did it take to repair the property and get a new tenant paying rent?). Deciding the eviction first allows the landlord time to determine the appropriate judgment amount.

An eviction hearing is a perfect example of why you should hire an attorney. First, an attorney is going to set the case up from the beginning so that if you end up at a hearing you’ve increased your chances of success. Second, based on the thousands of cases we have handled we know what facts are important and what the judge needs to hear to decide the case in our favor.

We recently had a case where the tenant came to the eviction hearing with large exhibits with blown up pictures they intended to present to the judge to explain why they shouldn’t be evicted. The pictures focused on two things: (1) they felt they should not have to pay rent because they felt the property was not up to code, and (2) they were experiencing personal hardships within their family that have made paying rent difficult. Both of these items impacted the tenants and forced the eviction, but as an attorney I knew (even if these facts were true) they should not impact the judge’s decision.

We presented our side to the judge very quickly and then allowed the tenant to give their story. We objected on the basis of relevance which the judge agreed.

The judge ruled we were entitled to an eviction and issued a three day eviction order. Without an attorney, I’m confident that the wrong issues would have been discussed and the wrong case would have been presented to the judge.

Jeremy Shorts is the managing partner of Utah Eviction Law. To contact Jeremy call 801610-9879 or email info@utahevictionlaw.com

Rental Housing Journal Utah · December 2016

Rental Housing Journal Utah

UAA Asked to Help Expand Idaho Apartment Association

By Taylor Smith Utah Apartment Association

B

oise Idaho – The National Apartment, an international association representing over 72,000 members operating 9 million housing units has announced it will launch its newest affiliate in Idaho, on January 1, which will be called the Idaho Apartment Association or IAA. The Utah Apartment Association staff has been asked by the NAA to help coordinate with the new association as it gets off the ground.

There are currently 6,000 units in Idaho who are members of the Idaho Rental owners and Managers Association (IROMA), which will become a committee of IAA and continue to hold monthly meetings geared towards independent owners of smaller rental properties.

IAA will hold monthly meetings

for all rental housing professionals and vendors in Idaho and will have annual events such as a Trade Show and Education Conference, a Maintenance Mania event, and Economic and Political Events.

“We are very pleased to enter Idaho and provide enhanced services to the rental housing industry,” said Marc Ross, with Ross Realty in San Antonio who served as 2016 National Apartment Association Chair. “We have two very talented individuals who will be helping us get Idaho set up and handed off to local industry professionals and staff – Paul Smith, from the Utah Apartment Association and Michael Fazio, with the National Apartment Association who is in charge of 27 affiliates in the Western Region.”

Idaho is leading the country in the creation and construction on new apartment product and is consistently one of the fast growing areas in multi-family construction.

Idaho hosts some very professional property management firms and more are popping up all the time.

National developers, owners, and companies are also taking interest in Idaho, according to Michael Fazio. “Idaho is a great place to be in the apartment industry right now,” he says.

Before moving to NAA, Michael led the Nevada Apartment Association. “I am so excited to help Idaho property owners and managers get tapped into the association and all of the benefits we will offer.

Michael will serve as President of the Idaho Apartment Association

for the first year and will be responsible for engaging recruiting and training local industry professionals to manage their Idaho Apartment Association.

If you are a UAA member who has properties in Idaho, or know of any landlords with properties in Idaho, we would encourage you to contact the new association for more details. You can reach them at idaholandlordtraining@gmail. com or by calling 208-423-8173.

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Advertise in Rental Housing Journal Utah Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.

Call 503-221-1260 for more information Rental Housing Journal Utah · December 2016

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Rental Housing Journal Utah

UPRO Classes ...continued from page 1 successfully and professionally operate rental housing units in Utah.

Eight classes are taught in a continual cycle, with a total of 32 hours of core Real Estate continuing education credit available.

“We have set up the schedule so that if a student can only attend morning or evening classes they will have an opportunity to complete the classes as soon as possible, but also so that if somebody just wants to get the courses done they can take both evening and morning classes and get it finished earlier. And you don’t have to take the classes in any particular order, which helps make the program more flexible for those who can’t make it to every class.”

“In 2016 thirty-one UPRO class sessions were held, with more than

200 students attending at least one of the classes. But that is just scratching the surface of the people who could benefit from these classes” said Smith. “And of course, in addition to the great information in the classes themselves, one of the biggest benefits is that once you have completed all eight classes you are eligible to take a test and then receive an official certification that you are a Utah Professional Rental Operator.”

Classes are $59 each, or $399 if you want to sign up for all 8 classes at once. Below is the schedule of classes for the first part of the year.

Other classes are expected to come online, so check back frequently. For more information, or to be put on a list to notify of upcoming classes, email info@uaahq.org

Morning Classes (8:30 AM) January 20 Legal Regulations February 17 Legal Procedures March 17 Advanced Property Management & Investment April 14 Property Management 101 (Part 1 &Part 2) Evening Classes (6:00 PM) February 8 Maintenance & Property Management Resources April 12 Marketing & Systems

Text REALESTATE-ROI to 44222 to receive a digital copy of this year's Real Estate Opportunities in Investing (ROI) Finding Investing Success in Today's Housing Market 6

Rental Housing Journal Utah · December 2016

Rental Housing Journal Utah

Warning! Scam Targets Utah ...continued from page 1

member was confused since he is just a landlord and doesn’t have any employees. It sounded fishy, so we referred him to the Utah Labor Commission, and told him it sounded like a scam but he should check to make sure.

After doing some research we have figured out how this scam works. There are indeed requirements that business owners put up posters, and willful negligence can lead to fines. However, you can get those posters for free online from the State, and even if you are caught without them you will just be forced to put them up for a first time offense.

If you get a letter like this, don’t pay what they demand.

This is a nationwide problem.

Consumer advocates from Clark Howard to Bill Gephardt have

been talking about similar scams for years now. But the best way to avoid becoming a victim is to stay alert. If you get something that sounds funny, call somebody to find out if it is a real deal. If you do your homework, you are far less likely to be ripped off.

The Labor Commission Division of Consumer Protection has cited “the Labor Regulatory Compliance Office” for scamming consumers and businesses. If you have received a letter from them or any similar group, please contact the Utah Division of Consumer Protection to file a complaint.

Landlord Utility Agreement ...continued from page 1 ical sight of a winter wonderland.

Beautiful and fantastic crystalline structures made from ice with magnificent ice stalactites and stalagmites fill the center of the room.

It’s absolutely breathtaking – not just because it’s pretty but because it’s stunning that something so awful could happen when a tenant neglects to pay their heat bill.

The UAA strongly recommends that landlords contact their utility company and get a “Landlord Agreement” from the Utility Company for all their properties. Instead of shutting off utilities when tenants don’t pay or move (risking costly damage to your property and potential legal complications under the Utah Fit Premises Act), under such an agreement the utility company will switch responsibility for future payments to the owner and send a notice of transfer. You will not be responsible for the amount owed by your tenant, and no connection fee should be required to restore the utility service in your name.

If the tenant isn’t paying their utility bill, then you can give them a Three Day Notice to Comply or Vacate. Renters will be required to get utilities back on within three days or vacate the property,

or the landlord may began eviction proceedings.

What about payment though?

How are you going to be able to get money back from a tenant if they have let their utility bills get far enough behind that it would be about to get shut off? The best advice is to get a large enough deposits to pay for potential unpaid utilities in situations like this, especially if the tenant has poor credit or a history of struggling to pay for utilities or other bills.

The UAA is working with the larger utility providers to help them streamline the process. If you have questions, concerns or experiences you would like to share, please email info@uaahq.org to make sure that we can have your input into how we can improve the operation of these landlord agreements.

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Rental Housing Journal Utah · December 2016