Nov 17

An ordinance was proposed that would impose a requirement that all downtown construction with 20 or more residential units set aside units for affordable housing.  10%, if privately financed, or 20% if government subsidies.  If the developer was unwilling to do so, then the city would charge a fee of $125,000 per required affordable unit, PRIOR to issuing the permit.

While providing housing to struggling families is a noble concern, the problem with this type of proposal is it discourages development.  When you have the capability to do a $100, $200, $400 million dollar project, there are a lot of communities vying for the influx of development (I’ll assume as I never did anything close to that big)

Years ago I was in Vegas helping my wife do an event there.  I was standing in line to buy something and started talking to the guy in front of me. He was a large developer.  When he asked where I was from, I said Milwaukee.  His response was ‘you do not have a decent skyline and never will as your city is too hard on developers.”

Fortunately, this proposal was shot down by the Milwaukee city attorney  But there will be further attempts to keep Milwaukee at the economic bottom, I’m sure.

Nov 03

The Milwaukee Journal reports

Lax city oversight allowed sham nonprofit to snag and flip Milwaukee properties

The article has nothing to do with a landlord, and everything to do with with fraudsters using real estate as the vehicle for their criminal activity.
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Yet just like the other non-landlord related articles in the series, the html title tag is “Landlord Games:…” , the caption to the attached video reads “Some Milwaukee landlords game the system, taking advantage of potential renters and home buyers” and the footer:

Read the investigation

To read the Milwaukee Journal Sentinel’s Landlord Games investigation, which examines ways landlords game the system and how city officials allow it to happen, go to jsonline.com/landlordgames.


 Certainly not a “landlord game.”  But the Milwaukee Journal Sentinel continually mis-captions anything negative about housing as being  “landlord” caused.

Sep 27

Attorney Tristan Pettit, you know, the guy that writes the standard legal forms for Wisconsin Legal Blank, is doing his landlord-tenant Boot Camp again on Saturday, October 7th. There are still a few seats left.

You get a full day of landlord-tenant law training for the price you’ll spend for 30 minutes of attorney time after you make a mistake in this complex area of law,

All the details are at:
http://www.landlordbootcamp2017.com

But the proof of value is I send my staff to Tristan’s Boot Camps.  Even though I know the laws, it is of great value to have staff learn what they need to be concerned about in a different setting than the office.

Sep 25

Barrett’s budget [Link to J/S article on the Budget]:   Police and firefighter cuts, property tax increase

The City of Milwaukee would lose 33 police officer positions and 75 firefighter jobs under the 2018 budget plan, which Mayor Tom Barrett is set to introduce this week.

Every budget starts with cutting Fire Fighters and Police Officers, plus they usually throw out the idea of cutting out the mobile mammogram testing in the poorest neighborhoods, but that isn’t in the article so it may no longer exist.

Are Police and Fire Fighters really the only place to cut the City’s budget and more importantly, is it wise to reduce Police positions in Milwaukee, which  MSN reports as the 5th most dangerous city in the nation?

With out of control violent crime, it is harder to attract major businesses and thereby turn around the local economy – and an influx of jobs would cure a lot, including a reduction in crime.

The Effects of Unemployment on Crime Rates in the US – SMARTech
A one percent increase in the unemployment rate will increase the violent crime rate by 14.3 per 100,000 inhabitants. … A one percent increase in the poverty rate will increase the violent crime rate by 23.9 per 100,000 inhabitants, and is statistically significant at the 1% level.

Even property crimes hurt.  I can’t tell you how many times have I had good tenants move because they came out to their car in the morning to find the window broken and their $50 radio stolen.

Better from a long-term perspective would be a shift from an austerity to a prosperity mindset.  Milwaukee should have fought tooth and nail to have Foxconn locate within the City. That could have changed everything well into the future.

There are public hearings scheduled if you wish to comment on the budget, or call your Aldermen (414) 286-2221.

Aug 27

Seattle recently banned rental property owners from screening prospective tenants for criminal records.

Seattle tries to make this a landlord issue, ‘How dare landlords prohibit criminals from renting. These good people paid the price for their crime and should be free to live anywhere they want after being released from prison!‘ And Seattle’s landlords fell into this political trap, opposing the ordinance from a concerned landlords’ perspective, rather than what it really is – an assault on the rights of the vast majority of Seattleans that are not criminals.

Let’s step back and look at this situation truthfully.

Landlords screen for criminal backgrounds not for their benefit, but rather do so mostly out of concern for the safety and tranquility of their other tenants and neighbors. The selfish motivation of the owners, if you want to call it that, is crime devalues neighborhoods.  But that motivation is beneficial to all in the neighborhood as well as the city itself.

This ordinance may benefit the owners as it will:

  1. Raise rents. Seattle has a housing problem. There simply are not enough units for the population. By forcing owners to accept the ten or fifteen percent of residents that have criminal histories that exceed the HUD guidelines for criminal screening, the city fathers have worsened the housing crisis for the rest of the population seeking decent housing.
  2. Reduce owners civil liability for the bad acts of their tenants. Jimmie ‘the Hacksaw’ Smythe from 201 rapes and murders Ms. Jones in Apt 310.  ‘Don’t blame me. I could not screen for his previous twenty years of criminal activities. In fact feel sorry for me,  I now have two vacancies.”
  3. Likewise, owners will no longer be accountable to the municipality for disruptive tenants. ‘Hey, I just rented to the people you told me I had to take.’

In a sad, ironic way, the crime free leasing movement that started in the Pacific Northwest is about to die where it was born. Milwaukee’s Landlord Training Program had its roots in a 1997 Portland program. In fact Washington State passed a Crime-free rental housing program in 2010, a half decade before Wisconsin did.

The motivation behind screening out criminals was to make neighborhoods more stable and more desirable, thereby benefiting the municipality, the residents, and ultimately the property owners.

This screening prohibition is just another case of failed liberal governments harming the very people they purport to help and support.

Sadly, when this ordinance fails, and it will fail, rental owners will face criticism for the increase in crime happening to Seattle’s more affordable neighborhoods.  This time the landlords will be blamed for allowing the very criminals into their units that they were required to under this new ordinance.


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