Dec 02

Last week my son sent me the following text:

I read this from time to time and thank you for it

The Public Policy Forum a few months back said Milwaukee’s really short of low-cost rentals. If more people went into the business, researchers said, it could help. Yet Ballering, who’s owned for 32 years, told his son to find another occupation: “It’s such a difficult business,” said Ballering.

“There’s better things to do with your life.”

Not what a city in need of rental housing wants to hear from entrepreneurs who provide it.

Source: http://archive.jsonline.com/news/opinion/59534347.html/

The back story:

My son was nearing high school graduation.   I asked him what his plans were.  He said that he was going to follow me into the rental business.  He was initially upset with me when I told him no.  Today he is happy as a partner at a major marketing firm.

Although being in rental housing has done well for me, it is a harsh business.  There is little to no appreciation for the amount of work and risk involved. Many who enter the industry leave broke and broken. Your properties get damaged, your tenants do not pay and, to quote the late Rodney Dangerfield, we get no respect.

The government, who would benefit from successful rental housing, seldom support us or gives us the tools we need to succeed.  As an urban housing provider, you become responsible for the misdeeds of your tenants, while those who commit crimes are often not prosecuted.

There is an eviction crisis.  Yet instead of putting resources towards the causes, poverty and social issues, those claiming to want to solve the problem are providing more resources to free legal helps so that the nonpaying or disruptive tenant can stay a month or two longer due to an undotted i or uncrossed t.

So, yes, being a marketing professional seems like a much better life.

Jul 31

https://www.hud.gov/program_offices/healthy_homes/smokefree

This rule is helpful for private owners who wish to ban smoking, as well as offering a marketing opportunity, I guess, for owners that permit smoking.

I agree with HUD on this, the advantages of smoke-free housing outweigh any market advantage of allowing smoking.

https://archives.hud.gov/news/2016/pr16-184.cfm

HUD’s smoke-free rule will reduce damage and maintenance costs associated with smoking. According to the Centers for Disease Control and Prevention (CDC), HUD’s national smoke-free policy will save public housing agencies $153 million every year in repairs and preventable fires, including $94 million in secondhand smoke-related health care, $43 million in renovation of smoking-permitted units, and $16 million in smoking-related fire losses. It is estimated that smoking causes more than 100,000 fires each year nationwide, resulting in more than 500 deaths and nearly a half a billion dollars in direct property damage.

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.
 

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