Rental Housing Journal Utah August 2017

August 2017 - Vol. 9 Issue 8

Rental Housing Journal Utah

2. President’s Message – How the UAA PAC Protects You 3. Director’s Message – Abuse of Assistance Animal Laws 4. How Do You Decide How Much to Charge For Rent?

5. 7 Questions and Answers On Canine Liability Insurance 6. Ask the Attorney – What Every Landlord Should Know About Utah’s Fit Premises Act

UPCOMING EVENTS Good Landlord Class Ogden ................... Tues, Oct 24th 8:30am Salt Lake.......................Fri, Oct 6th 8:30am www.GoodLandlordingTraining.com General Membership Meeting Ogden ................... Tues, Oct 24th 7:00 pm Salt Lake..............Thurs, Oct 26st 7:00 pm

EVENTS UPRO Invesment Class ..................... Fri, Oct 20th 8:30am UAA Office

(448 E Winchester #460, Murray)

UAA PAC Luncheon

TopGolf, Midvale............................................... October 11,2017

Maintenance Mania

Wheeler Farm/UAA Offices..................... October 27, 2017

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

Salt Lake County Property Tax Appeals

The Pros and Cons of Using a Property Manager

M

any landlords in Salt Lake County over the last several weeks have opened a seemingly innocuous envelope from the county government, only to nearly have a heart attack over what it told them.

Several have been notified that their property taxes have increased dramatically (in some cases almost double what they paid last year).

Before you pass out or throw in the towel, there are some steps that you can take to try to reduce the amount of taxes you owe.

By Paul Smith

Utah Apartment Association

E

very landlord is different and has different needs, concerns, tenants, and problems than the other. For some landlords running their own rentals, and doing the work themselves is the way to go; but for many others, a property management company is nothing short of a miracle for their rental unit. And the amount of work they do can vary based on your needs.

If you need someone to completely take over the property, or if just finding tenants to fill vacancies will suffice, a personal customizable n Wednesday, August 30th plan is out there. the UAA held a record The following chart can help breaking reverse trade asses if a property manager is right show that raised $13,054 for the for you: UAA PAC. "This was a record breaking year," continued on page 7 said Kirk Cullimore Jr. "Our goal for the PAC this year is $100,000 by year end so this money goes a long way towards our 2017 goal.

The reverse trade s how is a forum where company owners and executives volunteer three hours and sit behind a table. Suppliers and service providers, buy tickets to the event and get undivided attention of decision makers for seven minute increments.

continued on page 5

Reverse Trade Show a Success

Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007

PRSRT STD US Postage P A I D Sound Publishing Inc 98204

O

Salt Lake City

continued on page 4

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

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

How the UAA PAC Protects You

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

ne of the biggest reasons for having an Apartment Association is to represent us as an industry in the Government Affairs arena. This is why the Utah Apartment Association was founded over 80 years ago, and this is why advocacy at all levels of government continues to be a major priority for us today.

For the past 10 years the Utah Apartment Association has been

one of the most energetic, proactive and pragmatic advocacy groups in our state. We have helped to find solutions for problems, proposed fair regulations, and worked with other groups such as city governments, tenant advocates, and the courts to negotiate win/ win solutions for the issues that have come up in our industry.

This has enormous value for us.

As members of the association and

Tenant Screening 44 Less...

Tenant Screening Less...

“Screen Your Tenants Online Anytime” Tenant Screening 4 Less...

“Screen Your Tenants Online Anytime” (FREE Membership Available) (FREE Membership Available) “Screen Your Tenants Online Anytime” (FREE Membership Available)

“Low-Cost • Fast • Easy • Tenant Screening” “Low-Cost • Fast • Easy • Tenant Screening” You can save money by becoming a “Volume Discount Member” You can save money•by becoming a “Volume Discount Member” “Low-Cost Fast • Easy • Tenant Screening” Receive All This: Discount Member” You can save money You by becoming a “Volume You Receive All This: • National Credit Report • FICO Score •• National Report FICO You Receive•• All This:Score National Credit Eviction Report Tenant Qualifier Report •• National Report National Eviction Credit Report •With National Eviction Report Your “Volume Discount

•• Tenant Qualifier Report FICO Score • Tenant Qualifier Report

99

$$ 99 99 $ 99

With Your “Volume Discount Membership” You Receive All Membership” You Receive All With “Volume of theYour Above ReportsDiscount For Only of the Above Reports For Only Membership” You Receive All If you do more than 16 credit and eviction reports a year, ofIf the Above Reports For Only youour do more than 16 credit and evictionisreports “Volume Discount Membership” for you.a year,

30+ Years 30+ Years Serving Serving Housing 30+ Years Housing Providers Serving Providers Housing Providers

part of the rental housing industry we have all benefited significantly from the Utah Apartment Association’s advocacy efforts.

Contributing to the PAC is so important because it enables the association to fulfill one of its main goals and functions of representing your interests and your rights to the State and local governments.

Every year things are proposed that can negatively affect landlords and your bottom line.

Through the PAC we are able to foster respectful working relationships and help educate others about the issues important to our industry and to our members. We work hard to find lasting solutions through common ground and compromise that will benefit our members both now and in the future, and which will have a positive impact on all parties involved.

We can only accomplish these goals with donations from members like you. Your PAC contributions make a real and lasting impact. No matter what kind of rental homes you have, or how many you have, the UAA is here to help you succeed. Let’s all work together to make sure it stays that way.

On October 11th the UAA will host a PAC Luncheon at Top Golf in Midvale. This event is held to honor those who have helped the industry by donating to the UAA PAC. It also helps raise awareness regarding pressing issues landlords face every year.

This event is designed to be a fundraiser and includes: yBottomless y soda, water, and tea yLunch y yLifetime y membership at Top Golf

our “Volume Discount Membership” is for you.

If you do more than 16 credit and eviction reports a year, • You will save $4.95Membership” on every eviction/credit report our “Volume Discount is for you.

• You will save $4.95 every eviction/credit4report $9.00 on with the recommended Star Tenant Screening Report • You will save $9.00 with the recommended 4 Star Tenant Screening Report Membership is only $77 a year • Volume You will Discount save $4.95 on every eviction/credit report • Volume Discount Membership isAvailable only $77 a year Freewill Non-Discount • You save $9.00Membership with the recommended 4 Star Tenant Screening Report • Free Non-Discount Membership Available • Volume Discount Membership is only $77 a year To Register or Start Your Free Membership • Free Non-Discount Membership Available

To or Start Your Free Membership Go Register To www.tenantscreening4less.com Go Register To www.tenantscreening4less.com To or Start Your Free Membership 888-802-7020 Go To www.tenantscreening4less.com 888-802-7020

y1.5 y hour Q & A with political officials and UAA lobbyists y3 y Hours of unlimited Top Golf yOpportunity y to network and mingle with members of the Utah Apartment Association and other industry leaders If you are interested in attending, please email info@uaahq.org for more details.

888-802-7020

Rental Housing Journal Utah · August 2017

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

Abuse of Assistance Animal Laws

L. Paul Smith, CAE UAA Executive Director Utah Apartment Association

U

nder Federal Law people who have disabilities are allowed to request that we accommodate animals that help treat their disability. We call this process making a request for an assistance animal, such as allowing a seeing-eye dog for the blind, or a calming animal for someone with PTSD. At the Utah Apartment Association we support these laws as a matter of fairness.

However, because so many non-disabled people try to abuse these laws that protect disabled people, we have to verify requests.

If you don’t know how to do this, contact us and we will give you the forms and teach you the process that we have worked out with the Department of Housing and Urban Development to do certify if someone indeed has a disability and if the animal is a medical necessity for their disability.

Some people ask why we bother verify at all. According to Kirk Cullimore, our attorney who negotiated with HUD on behalf of the UAA to create the forms we use, HUD has acknowledged that 50% or more of the requests for assistance animals are fraudulent.

For instance, providers and attorneys say it is more common to receive a request for an assistance animal once a tenant is caught with an unauthorized animal, than it is to receive a bonafide request upon move in or when the disability occurs. When told all assistance animal requests need to be verified, about 25% of requests instead agree to pay the higher rents or fees associated with the standard pet rental process.

Why do so many tenants lie?

Below are five reasons tenants who don’t have a disability, make an assistance animal request: 1. Pet Bans – Bans on having a pet or certain pet sometimes leads pet owners who love their pets to falsify assistance animal requests to get around the rules.

2. Pet Fees – Some landlords charge pet fees as a legitimate way or mitigating risks and expense of allowing pets and compensating themselves for that risk, and some tenants don’t want to pay them.

3. Pet Deposit – Landlords regularly charge higher deposits for pets when they allow them, and some tenants think they can get around that.

4. Pet Rent – Another legitimate way landlords mitigate and compensate for risk to allowing animals is monthly pet rent per pet, which you cannot charge for an assistance animal.

5. Pet Set Up Fees – Many landlords are now charging for DNA

samples of approved pets to assure pet owners clean up after them or allow them to prove the origin of pet excrement, and tenants want to get around that requirement by claiming it is an assistance animal.

Below are example cost for a pet owner to rent (if the owner allows pets at all). NOTE: 57% of renters have a pet but not 100% of owners allow them due to legitimate concerns about risk and expenses.

One Year of Additional costs to tenant for two pets in a $1,000/month rental home Two Pets Two Assistance Animals (or not pet) Rent (12 Months)..........................................$12,000 Rent....................................... $12,000 Deposit...........................................................$1,000 Deposit..................................... $1,000 Pet Deposit ($500 × pet)................................$1,000 Pet Set Up Fee (DNA).........................................$300 Additional Pet Fee............................................ $600 Pet Rent ($75/pet × 12 months).....................$1,800 Total Extra Cost to have 2 pets: $3,700 Is it any wonder why so many tenants try to pass off their pets as an assistance animal? Correct use of the assistance animal verification process protects the legitimately disabled and protects landlords from those trying to game the system.

Because there is so much abuse and fraud in Utah, over the years many members have approached the UAA about getting legislation passed in Utah making fraudulent requests for a service animal a crime. Several states have recently done so. According to an article I just read “Twelve states now have laws criminalizing the misrepresentation of a pet as a service animal. In Massachusetts, a House bill seeks to apply a $500 fine to pet owners who even falsely imply that their animal may be a service dog. In California, the penalty is $1,000 and up to six months in jail.”

To some advocates for the disabled, this feels harsh and uncaring. What if they make a mistake on their request and it is deemed to be false? But to those interested in protecting the genuinely disabled, cracking down on fraudsters who are illegitimately gleaning benefits they are not entitled too is actually protecting and serving those who legitimately qualify for protections. Respect for the needs of disabled people means that we shouldn’t allow nondisabled to lie and get the same benefits.

The UAA is looking at the prospect of asking the legislature to protect the legitimately disabled by cracking down on fraudulent requests for assistance animals.

We would love you to weigh in. If you have a story or an opinion you would like to share, please send it to paul@uaahq.org.

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 · August 2017

3

Rental Housing Journal Utah

How Do You Decide How Much Should You Charge for Rent?

Reverse Trade Show ...continued from page 1

e can’t tell you how much you to charge for rent, doing so would violate anti-trust laws. But the UAA can give you some insight into the process most landlords and property managers use to decide what to charge.

little. It is the basic law of supply and demand.

"It's a little like speed dating,” said RileeJo Stone. "People sit down across from each other and every five minutes we ring a bell and they move. It's a high energy blast. Everyone, even the property managers that get hounded for two hours by vendors, love it."

"The Reverse Trade Show is a great opportunity for property managers to meet prospective vendors. And it's a great way for vendors to get in front of decision makers they would normally not have a chance to meet.

It's really a great event,” said Robert Watson with WSI services and a member of the UAA Board of Directors.

4.

Talk to other landlords

The following companies participated and donated this year:

presentations, the UAA partners with various companies to produce and distribute reports which give hard numbers on what the rental market is doing. One such company is CBRE which for two years now has been working with the UAA to document and publish quarterly rental growth rates along the Wasatch Front.

6.

Request a custom UAA Industry Insights Report

By Taylor Smith Utah Apartment Association

W

Don’t be shy of contacting other landlords in your area to find out what they are charging. Go online, looks at ads and call the other 1.

Check what the landlords up and ask if you can market is doing tour their property. Most are more Every year the UAA holds a Fall than happy to oblige. By getting a Economic Forecast at which several feel for what the tenants are seeing economists and market experts and hearing you can evaluate report on the state of the Rental your properties strengths and Housing market. This year the weaknesses and adjust your price event will be held on September 12, accordingly.

2017. Statistics on the average rent Use Property growths, average occupancy rate, 5.

Management Software and other information is presented Several Software Providers have at this event which will enable you to form a rough idea of what systems in place which are able to your rents should be doing for the calculate the optimum rent that next year. If you miss the meeting, you can charge for a specific unit. we also have some outlines from You will have to provide large the presentation that you can amounts of data, and the systems review afterwards available on our are generally not inexpensive, but they can make a difference for website. companies with a large number of In addition to these units.

For the last couple of years the UAA has been collecting data into an Industry Insights Report that for the first time tracks average rents throughout the state by different property types (including single family homes, apartments, townhomes, duplexes, etc.). You 2.

See what your can get a customized report for expenses are doing properties similar to yours in your If your expenses have increased area if you will send the following through increased taxes, utility information to info@uaahq.org: bills, inflation, or increased repair your properties zip code, the type costs then that should be reflected of property, the square footage, in the rent that you charge. and the number of bedrooms and Likewise, if you have made changes bathrooms. to the property that have increased its value and appeal to tenants, then you should be able to charge more for that.

3.

Watch how people respond to your marketing

Alliance Residential Company..........................................................$1,000 Hardy Manufacturing........................................................................... $579 Law Offices of Kirk A Cullimore.........................................................$500 Apartment List.......................................................................................$434 GroFire....................................................................................................$424 Real Property Management Cache Valley..........................................$400 Redi Carpet.............................................................................................$400 Western Reporting, LLC.......................................................................$400 Comcast...................................................................................................$400 Delta Disaster Services..........................................................................$400 Renters Legal Liability LLC.................................................................. $374 Precision Concrete Cutting.................................................................. $359 Entrata Inc.............................................................................................. $359 Mohawk Industries................................................................................$344 Evans Inc.................................................................................................$344 Alpine Cleaning & Restoration Specialists.........................................$344 For Rent Media Solutions......................................................................$344 Smart Rain & Lawn Butler....................................................................$344 ICAST...................................................................................................... $319 CSC ServiceWorks................................................................................. $318 Rentler.....................................................................................................$300 Thorn Pest Solutions..............................................................................$290 TransUnion.............................................................................................$289 Wakefield & Associates, Inc..................................................................$289 Hainsworth Laundry Co.......................................................................$289 Urban Surfaces.......................................................................................$289 Advanced Exercise Equipment............................................................. $259 BIO-ONE Utah....................................................................................... $229 American Family Insurance-Kandace Brewster................................$224 FITLOGISTIX........................................................................................ $214 U of U Off-Campus Housing Svc......................................................... $199 Set Up My Move..................................................................................... $199 ALN Apartment Data, Inc.................................................................... $199 Belfor Property Restoration.................................................................. $199 Kirk Law.................................................................................................. $199 National Credit Systems Inc................................................................. $199 Paul Davis Restoration of Utah............................................................ $199 Southwest Security, LLC....................................................................... $199 U of U Off-Campus Housing Svc......................................................... $145 Dwelo Inc..................................................................................................$60

THANK YOU!

It is a common practice for people to start out with their advertisements on the high part of the range they expect to be able to get for the rent. If you don’t get any serious inquires or response to the ad, then it might be time to lower the price, or offer some other sort of incentive. Conversely, if you are being inundated with requests then you are probably charging too 4

Rental Housing Journal Utah · August 2017

Rental Housing Journal Utah

Property Tax Appeals ...continued from page 1

7 Questions and Answers On Canine Liability Insurance

Step 1 – Take a deep breath

Step 7 – Collect other market data (if applicable)

Stay calm and objective.

Handling things professionally and in an organized fashion will help you much more than freaking out will.

For commercial and income ebbie Turner got into the producing properties (other than canine liability insurance single family residences, duplexes, issue after she adopted a and condos) provide rent rolls from the prior year ending Dec 31 schnauzer, named Jazz, who had and expense statements. This will personality issues. help in determining the value of She began to learn the different the property. aspects of canine behavior so she could try and figure out why Jazz Step 8 – Consider hiring a was so broken. Jazz led a long and fee appraiser healthy life and ultimately died of Just make sure they compile a old age. report effective January 1, 2017 “But somewhere it just hit me that the insurance industry is not underwriting Step 9 – Take another the canine exposure," she said. She deep breath became interested in canine behavior Drink your favorite beverage, and "found insurance companies just take a walk, and enjoy a nice do not know how to underwrite this sunset. Then get back to work. risk,” she said in an interview about what led her to start Dean Insurance Step 10 – Send in your Agency and the website dogbitequote. appeal before the com. deadline

Step 2 – If you have a relationship with a professional (Realtor, Appraiser, or CPA) then give them a call These individuals can help you through the process. If you need a referral, please feel free to contact the UAA and we will send you information on professionals that might be able to assist you.

Step 3 – Begin the appeals process

Download the Appeal to the Salt Lake County Board of Equalization (you can find it online at www.slco. org) and begin filling it out and Generally, your appeal is due gathering the required evidence before September 15th. Send it in that the county has overestimated either by mail to P.O. Box 144575 the value of your property.

Salt Lake City, UT 84114-4575 or in person at 2001 South State Street in Step 4 - Know your time the lobby of the north building (a frame secure drop box is available). If it is Understand that any market going to be late, contact the county value evidence submitted should directly for more information. reflect a value as of January 1 of 2017. Make your comparison and Step 11 – Wait for the county to get back to you your estimates accordingly.

If you provided sufficient Step 5 - Review your evidence then it will be reviewed. building assessment The county will often contact characteristics you with an “informal reduction Look online at the characteristics proposal”. If not (or if you refuse listed by the county for your their offer), then you will proceed property (you can do so here). If to a hearing. there are errors in this then you may have grounds to file an appeal Step 12 – Win or lose, keep based on a factual error in assessing on going the property.

If you win, this is the time to celebrate! If you lose, this is the Step 6 – Review time to raise your rents when your comparable sales leases expire to cover the costs.

These properties should have Your tenants will complain, but been sold around January 1. You just show them the information should provide between three and from your appeal and educate five comparisons with similar them. style, quality, size, age, location, land area, and characteristics. If For more information visit possible, you should provide the www. slco.org/treasurer full-print MLS document from your real estate agent or another authorized user of the Multiple Listing Service.

Reports showing average change in value by area are not helpful in establishing a fair market value on your individual property because they may not be used by appraisers to conclusively establish a value.

Likewise, rates per square foot analyses are not helpful because appraisers value more than just square footage of your home.

Rental Housing Journal Utah · August 2017

D

Jazz the Schnauzer “I started working on this pet insurance and canine liability issue in the summer of 2010 doing a research paper. When a friend read it and said, ‘That’s not a research paper that is an insurance policy.’

“For me this is a passion. As a child I saw my mother dump our family pet on the side of the road. I looked back and saw him trying to catch us. I can remember screaming and crying. I guess there were not a lot of options back them. I did rescue for 10 years. So my passion – I think I am still trying to save that dog that was dropped off by my mother in the wilderness. That is how it all came about," she told Rental Housing Journal in an interview.

“Now I am saving pets every day all over the country,” Turner said because research shows the main reason pets end up in animal shelters is owners cannot find rental housing for themselves and their pets.

Matthew Wildman, former pet retention manager for The Humane Society of the United States told Rental Housing Journal last year, “There is so much misinformation out there. Our position is allowing pets in rental housing is good for business. Hundreds of properties allow dogs and cats without restrictions on breed.” He said the number one reason animals are sent to shelters is because of rental situations where they cannot keep a pet.

Turner said she gets a lot of questions from multifamily property owners, landlords, apartment property managers and tenants.

So she put together a list of seven of the most asked questions about pet insurance and canine liability insurance.

1. Can a landlord or property

manager require that tenants buy canine liability insurance? What about service dogs, emotional support dogs and therapy dogs?

Answer: Generally but they cannot require it if the dogs are any of the labels that the Fair Housing Act protects, like seeing eye or emotional support. The key to a true service dog, is one who has been trained to do one thing to improve the life of the owner. If it is a service dog you are allowed to ask what the dog does? If it is a dog being used as any of the many titles now being used the landlord could agree to pay for the policy ( a reasonable accommodation) the policy would be in the owner's name but the landlord would still be named as an additional insured. I also think there may be different rules if there are less than four units.

2. How much does it cost a year?

Answer: Each dog is rated as an individual so it varies, small dogs could be under $200 annually a Cane Corso just rated out, he weighed 130 pounds, for the $50,000 insurance limit at around $650 including the fees and taxes.

3. Can a landlord or property manager buy a canine liability policy to cover the whole apartment complex and all dogs in it?

Answer: Right now the only way is to require each dog owner to purchase a policy and add the Landlord as an additional insured, much the way typical renters insurance works.

4. How many people with dogs in apartment complexes have canine liability insurance?

Answer: More every day, the lawsuits are no longer just about bites. If your dog scratches, trips or knocks someone over you are liable.

Worst one yet was a child who knew the dog lived on a near-by property.

The child approached the property knowing the dog would be there. The dog never left its property, but when the child turned to run, he broke his ankle to the tune of $175,000.

5. Can you insure all breeds and types of dogs?

Answer: Yes, but I do not insure wolf hybrids as they are not considered a "dog."

6. Can you insure a dog that has bitten someone in the past?

Answer: I review the applications individually when certain behavior histories come up. For example, if the dog has killed another animal and the owner reached in to separate continued on page7 5

Rental Housing Journal Utah

Ask the Attorney

What Every Landlord Should Know About Utah's Fit Premises Act

By Jeremy Shorts, Esq.

U

tah’s laws are focused on defining what obligations landlords and tenants have to one another. Utah’s Fit Premises Act (“FPA”, Utah Code Ann. § 57-22-1, et. seq.) sets forth those obligations as they relate to the condition of the property. Here are three things that every Utah landlord should know about the FPA. First – There are two prongs before the FPA even applies. First, the issue must “affect the physical

health or safety of the ordinary renter”. Second, the tenant cannot claim protection under the FPA unless they are in compliance with their obligations under Utah law and the lease. If either of those prongs are not met, the FPA doesn’t apply.

Second – If the FPA applies, the tenant must serve a “Notice of Deficient Conditions” that gives the landlord time to address the issue (types of issues and the corrective timeframes are discussed below).

The notice has to be in writing, satisfy all of the requirements in the statute, and must be served to the landlord in the same manner a landlord would serve an eviction notice to the tenant (personal service, posted service, etc.).

Third – There are three types of conditions that are addressed in the FPA: (1) dangerous conditions that pose a substantial risk of imminent

Increase Your Laundry Room Capacity by as much as 50% And Save Up To 50% on Utility Costs

loss of life or significant physical harm, (2) deficient conditions that impact health or safety concerning the habitability of the home, or (3) obligations stated in the lease agreement.

If a dangerous condition exists, the landlord should begin remedial action within 24 hours.

Deficient conditions require the landlord to take substantial action toward correcting the condition within three calendar days. And for conditions under the lease, the landlord has ten calendar days to take substantial action toward correcting the issue. Notice that these timeframes are not 24 hours, three days or ten days to COMPLETE the corrective action.

The landlord has those timeframes to begin or take substantial action toward correcting the issue.

Having said that, it’s best to not litigate whether substantial action was taken, so it’s best practice to do what is possible to correct the issue ASAP. If the problem was eliminated within the corrective timeframes, then there is nothing for the court to consider.

Fourth – A tenant cannot withhold rent or shirk their responsibilities under the law or the lease until AFTER all of these conditions have been met. In summary, the issue the tenant is complaining about must impact

the physical health or safety of the ordinary renter, they must be in compliance with all of their obligations (by statute and the lease), they must serve a notice of deficient conditions, and allow the landlord the proper time to correct the issue. If each of these occur and the landlord fails or refuses to correct the issue, then the tenant is protected under the FPA. Finally – As a practical matter, even if the tenant is not in compliance with the lease or Utah law, it is best practice to treat all requests professionally and promptly. As your attorneys, we would rather go into court stating “This isn’t an issue of health or safety and the tenant wasn’t in compliance with the lease, but the landlord still took action to comply with the FPA”. Taking this approach creates credibility with the court and builds a stronger case if we end up in front of the judge.

Jeremy Shorts, Esq. Utah Eviction Law Phone: 801-610-9879 Fax: 801-494-2058 Email: info@utahevictionlaw.com

Coin • Card Rent • Lease

HAINSWORTH LAUNDRY COMPANY

Life’s Good

6

Toll Free: (800) 526-0955 www.hainsworth.biz

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 Rental Housing Journal Utah · August 2017

Rental Housing Journal Utah

Canine Liability Insurance ...continued from page 5 the dogs and was bitten, there is a surcharge but I would probably write the policy.

7. What important advice do you have for landlords and property managers?

Answer: One of the most important things landlords should do is print out exactly what limit, $25,000, $50,000, $100,000, or $300,000 they want and the exact wording of the additional insured's information.

Otherwise every tenant will buy $25,000 without an additional insured endorsement.

We can change that but it can take several weeks to get the evidence from the insurance company. Also, all of these policies are not created equal I would urge the landlords to review the coverages. It is great to say you have insurance but quite another to find out when there is a claim that the policy was so narrowly defined that there is no coverage.

Dogs are still animals and they can bite in certain situations Turner says she has found out a lot from talking with animal control officers around the country.

“Many people say, ‘oh my dog won’t bite, or my dog will lick you to death.’ There is a total innocence among dog owners that their dog won’t hurt or bite anyone for any reason. I had a trainer tell me his dogs were bullet proof. But they are still animals and given the right set of circumstances will bite. That is scary when people say their dog is bullet proof because means they do not have any concept their dog could bite,” Turner said.

“I have written about 2,500 policies. The majority of the dogs insured are on the dangerous lists. I have very few little dogs.

Turner can offer solutions for several different situations.

“I tell landlords if they cannot get through my underwriting criteria, think twice about allowing that dog to come into the property,” she said.

She said some commercial liability policies are starting to take canine liability insurance out of those policies so owners, landlords and property managers should check.

Insurance companies and dog breeds they insure can vary

“It was difficult to convince the insurance companies that this would not have large loss ratios because they are positive that this is all about pit bulls and the list of dangerous dogs has grown from one or two to 10 or 15. But they are not the same for every company.

“One company will declare a Weimaraner is a dangerous dog.

No other company will declare it a dangerous dog. So what that tells me is they had a really bad claim with a Weimaraner. Now to fix it they are not going to insure any more Weimaraners. There is no logic in that, but I think that is the way this all ends up,” she said.

Canine liability and service dogs, emotional support dogs and therapy dogs “There are now a psychiatric care dogs and the things we are finding they can assist with grows by the day.

Service dogs are consideredby FHIA as a medical device. You cannot request a person with a service dog to do anything,” Turner said.

“Landlords asked me how to do this. If they make it mandatory for tenants to buy canine liability insurance, most will be happy to do it because they are delighted to live there with their dog. There might be a small percentage that know they cannot be required to buy canine liability insurance in that case I have suggested – it says you have to make “reasonable accommodate” and I am writing pit bulls for $300 – would that be considered a “reasonable accommodation?” By a court? I am thinking so.

“So I have suggested to landlords here is an option – if a tenant is resisting buying a policy go tell them what you would like to do is buy it on their behalf. It will be in their name and the landlord will be added as an additional insured and they will have the coverage for $300 a year. That is a huge solution to a major problem.

I have talked to people with true service dogs who have said they know they cannot be required to buy the insurance, but they like the idea anyway because they will be protected and the landlord will be protected so “ I am just going to buy it,’ they said. “ Turner thinks most people will buy the policies because of the difficulty of finding a place to rent with a pet.

Education is a still a huge issue.

“I started doing the statistics on what is the likelihood that any given dog will injure a person. There are 83 million dogs, more than 400 million people, and about 400,000 got to the hospital in a year because of an injury from a dog.

Rental Housing Journal Utah · August 2017

Using a Property Manager ...continued from page 1 You would benefit from having a property manager if:

Hiring a property manager is not for you if:

• If you could make more money doing something else • If the property is over an hour away from where you live • If you would like to focus your time on things other than rental problems • If the rental is causing much more stress than it is worth • If you’re more interested in making money than in saving money • If you are overly worried about making a mistake and being sued

• If margins on the property are very slim • If you own few properties that are close by and easy to access • If you enjoy what you’re doing, and enjoy the time you spend on the property and with your tenants • If you love to micro manage

Property manager’s fees vary. In large Apartments, management fees can range from 2-4%. In single family homes, that fee can be 8-13%. There are often additional fees beyond that. Make sure if you use a property manager you clearly understand the fees charge and their company policies.

The Utah Apartment Association has a list of property management companies that you can check out if you are interested. If you are thinking of hiring one, you should check out the companies you are considering and see if they are a good fit for you. Ask to speak with some of their other clients, carefully review their management

agreement, ask about what kinds of reports they will be providing for you, and about what policies they have in place for tenant screening, inspections, handling repairs and dealing with problem tenants.

If a property manager sounds like something you want to use give us a call and we will send you a list of prospects. Not only can these managers lift a huge burden off of a landlords shoulders; but they can increase revenue, eliminate problems on the property, and help the overall value of a rental unit. It also eliminates some of the burden you have to worry about fair housing laws and discrimination.

Publisher Will Johnson – will@propubinc.com Designer/Editor Kristin Flores – kristin@propubinc.com

Advertising Sales Will Johnson – will@propubinc.com Terry Hokenson – terry@propubinc.com Larry Surratt – larry@propubinc.com

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.

NAME ADDRESS CITY

STATE

ZIP

I am an: OWNER

INVESTOR

PROPERTY MANAGER

*Print subscriptions $25/year $15 each additional market $8 each additional market

VENDOR

E-mail subscriptions $15/year

I would like:

PRINT

E-MAIL

Editions:

ARIZONA SALEM/EUGENE, OR

COLORADO SEATTLE/TACOMA

VISA

OTHER

PORTLAND, OR UTAH

MASTER CARD

CARD NUMBER NAME ON CARD BILLING ADDRESS

EXP.

CVV

OR MAIL A CHECK TO: Rental Housing Journal PO Box 30327 Portland, OR 97294-3327

7

Rental Housing Journal Utah

LOWER MAINTENANCE COSTS AND LESS TENANT TURNOVER. GO SMOKE-FREE. www.tobaccofreeutah.org/muh-intro.html

8

Rental Housing Journal Utah · August 2017