Jul 11

A worthy read:

Evictions: They Are Not The Terrible Landlord’s Fault

Jul 03

Milwaukee Journal has an article about Milwaukee’s new ordinance that requires deconstruction, as opposed to bulldozing, pre 1929 single families and duplexes.

A Milwaukee ordinance went into effect in January requiring single-family homes and duplexes built in 1929 or before to be deconstructed.


The extended timeline and need for more workers causes deconstruction to often cost nearly twice as much as demolition.

Bloomberg just had a piece on how recycling in general is failing.

Similarly a decade ago or so one of the Milwaukee TV stations followed a couple of DPW trucks full of recycling bin plastics to a landfill. The response was they were ‘just storing them underground’ until they could reuse the plastic.

None of these well-meaning things work as government mandates, but often take off when they are profit motivated.

Look at the electric car. Great for the environment but little interest among the general population. Then along came Musk with his Tesla Roadster. Not a utilitarian, save the planet vehicle, but a quick, sharp looking sports car that enthusiast liked, oh and it also happened to be electric. That changed the topic. His later vehicles are like little high tech spaceships from the Jetsons. Today, there is even Formula E racing, similar to F-1. The buying public, including gearheads, is now getting excited about electric cars and all the major manufactures are racing to beat Tesla. Soon gas may be a thing of the past.

Deconstruction will only work well when there is similar economic motivation to do so, such as a marketplace for used lumber and consumer desire for the materials.

But deconstruction of older properties has the additional problem that many of the materials cannot be reused due to containing lead, asbestos and who knows what other chemicals that will prevent its direct reuse.

 

May 27

The Milwaukee Journal is reporting that a provision in ACT 317 may stop attorneys from representing pro bono eviction clients.

The small change included in Act 317 “has a potential chilling effect” on lawyers volunteering at clinics like the Eviction Defense Project, said Dawn Caldart, director of pro bono and professional development at Quarles & Brady, a Milwaukee-based national law firm.

This article, like many others on evictions vilifies owners.

We need to get the other side of the story out there
 
… the one with frivolous legal defenses whose only goal is delay
… the one where tenants that strive to meet their obligations are the ones that ultimately are paying for those who tenants that do not
… the one where twenty million dollars a year of rent is not paid in Milwaukee county alone
… the one where mom and pop, moderate income owners are struggling to pay their own bills because the rent isn’t paid
… the one where elderly duplex owners are refusing to rent the other unit due to problems with prior tenants
…the one where no owner benefits when tenants fail and must be evicted.
 
May 22
A lot of PhDs say the same thing we’ve said for years about landlording in general and Section 8 in particular in peer reviewed papers.  Typically we only see those critical of owners, but there are many that accurately explain the dynamics of rental housing.
Here is a excerpt from two.
 
How to attract more landlords to the housing choice voucher program: a case study of landlord outreach efforts –  David P. Varady , Joseph Jaroscak b and Reinout Kleinhans
Our interviews suggest that existing stereotypes of Section 8 (HCVP) landlords as greedy and unconcerned about their tenants are inaccurate. Moreover, our findings provide new support for the classic studies of inner-city landlords cited earlier. Currently, many landlords in the HCVP are themselves experiencing significant financial burdens and risks as they try to deal with the low-income rental market. Tenants exhibiting various forms of problematic behavior, such as drug dealing, substance abuse, and violent crime, exacerbate the problem.
Urban Landlords and the Housing Choice Voucher Program – Prepared for U.S. Department of Housing and Urban Development by The Poverty and Inequality Research Lab Johns Hopkins University Philip Garboden Eva Rosen Meredith Greif Stefanie DeLuca Kathryn Edin
Of small properties with affordable rents (below the regional median), only those without debt service are viable. Only 25 percent of mortgaged properties have positive cash flow (Garboden and Newman, 2012). Taken together, these quantitative analyses and our own findings described in the following suggest that much of the stock is financially precarious, which could theoretically lead to under maintenance, abandonment, and conversion.
June 11th, 2018: The publication is back up on HUD USER at a new address above
Note: this publication has been removed from HUD USER.  I reached out to the authors who said it will be reposted soon, that the removal was to improve the formatting
Apr 23

Heartbreaking Photos Of Eviction Day In America

Matt Desmond’s NYT best seller “Evicted” is impacting our industry in ways that even he probably never predicted.

In speaking to him, my company had a small mention in the book as well as Desmond and I were on an NPR broadcast on evictions, I do not feel he is anti landlord, nor that he puts the blame solely on our industry. Rather his objective appears to be universal housing vouchers, kind of Rent Assist on steroids.

Let’s face it, evictions are economically hard on rental property owners as well. Anything that would address the root cause would be good for owners and tenants alike.

But many “advocates” are reading the title of the book, and probably not much more than that, combining it with the eviction statistics Desmond has assembled and are using this as a rallying cry to end all evictions, blaming landlords in the process. They fail to realize or admit that tenants that do not pay rent or are causing problems are increasing the costs to those tenants who are paying as they should.


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