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.
 
Mar 07

Note: While Affordable accepts Rent Assist, I personally am opposed to mandating its acceptance.  Proposals like this reenforces the falsehood  that people who need Rent Assistance and not receiving it due to landlords not accepting the program.  This would make one believe that hundreds of eligible families are suffering  because no one would accept their voucher.  The truth is the waiting list is due to the County not providing enough vouchers to meet the demand.

This is more of the anti landlord posturing used by politicians to shift the blame for government actions and inaction onto our industry and make us look like the cause.

Here’s a legislative alert from AASEW Attorney Heiner Giese:

Here’s a big alert:

Milw Co. Supervisor Marina Dimitrijevic is proposing an ordinance to REQUIRE all landlords to accept Section 8 housing vouchers or any other kind of voucher for rental assistance. This would mean landlords would have to get a property registered under a section 8 program and submit their property for inspections. It would also require you to use one year leases — you could not rent month to month anymore because the Section 8 program mandates one year leases.

Further, it is so loosely drafted that a landlord could not evict a tenant who is behind on the rent if they get an Emergency Assistance check.

This may be coming up for a hearing before the County Economic Development Committee next Monday, March 12, starting at 9:00 AM.

We need people to appear and speak against this. Also, contact your County Supervisor..

The Milwaukee County Board of Supervisors does ordain as follows: 
 
Section 1. Chapter 107 of the Milwaukee County Code of General Ordinances is hereby amended as follows:
 
107.01. – Intent.
 
It is the intent of this chapter to render unlawful discrimination in housing and to enact this chapter pursuant to the authority granted to counties by s. 66.432(2) 66.1011, Wis. Stats. It is the declared policy of the county that all persons shall have an equal opportunity for housing regardless of sex, race, color, disability, religion, creed, national origin or ancestry, marital status of a person maintaining a household, lawful source of income, receipt of rental or housing assistance, age, sexual orientation, as defined in s. 111.32(13m), Wis. Stats., status as a victim of domestic abuse, sexual assault, or stalking, gender identity and gender expression, or status in a domestic partnership.
 
 
107.02. – Definitions.
 
(9) “Receipt of rental or housing assistance” means the receipt of any form of financial
contribution from a third party for the purposes of creating or keeping affordable housing for tenants, purchasers, or other potential housing recipients, including but not limited to, assistance provided pursuant to Title 42, United States Code, section 1437f (commonly known as the “Section 8” housing program), the HOME Partnership Program, the Community Development Block Grant program, or any other public or private rental assistance vouchers or programs.
 
 
Section 2.
The provisions of this Ordinance shall become effective upon passage and publication.

Atty Heiner Giese
1230  N. Prospect Ave.
Milwaukee, WI. 53202-3014
Tel. 414-276-7988 Fax: 414-276-8342

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.

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.

Jul 13
Below is the Apartment Association of Southeastern WI’s legislative alert regarding a proposed Milwaukee County Rent Abatement ordinance

Dear AASEW Members:
  .
The Milwaukee County Board is considering a proposal that would permit your tenants to abate rent for maintenance issues not addressed within 24 hours.
  .
For example, your tenant calls on Friday morning to say the bathroom faucet is not working correctly.  You go out and fix it on Sunday, 50 hours after the call came in.  This proposal would allow that tenant to deduct $200 from the rent – Yes! Under this proposal, the tenant can deduct TWO HUNDRED dollars even though you made a timely repair of a minor item that does not affect health or safety. 
  .
  .
There will be a hearing on this proposal at 9:00 AM Monday, July 17th, 2017 at the County Board Committee Hearing Room at the Milwaukee County Courthouse, 901 North 9th Street, RM 201B, Milwaukee, WI 53233 Phone: 414-278-4222.  Ironically this is two floors below the eviction courtroom where the legitimacy of each deduction will be decided.
  .
I encourage you to attend.  If you cannot attend you can still make an impact by reaching out to your County Supervisor and/or County Executive Chris Abele to let them know the potential negative impact of this proposal on both you as the property owner and on your tenants.  If you live in one of their districts please make an extra effort to contact your supervisor and attend.  Constituents of the supervisors make a bigger impact when in attendance.
  .
Who represents me?
           Here is the link to look up your County Supervisor:
           Here is the link for County Executive Chris Abele:
  .
Here are some talking points to help you get started when making your call.
  • How is maintenance even directly related to evictions?
  • Who will be responsible for verifying maintenance issues?  At what cost? In what time frame?
  • What is the plan if the issues are deemed inaccurate?
  • Cost of these abatements and the court costs to fight them will be passed on to good tenants
  • There is a risk of tenants seeing these types of abatements as a means to avoid paying legitimate rent.
  • This proposed system is just another layer of cost to the city
  • There are already programs in place to protect tenants through the Department of Neighborhood Services (DNS).  Why add this? If the current system is not working, why not improve what we have rather than create a new layer of bureaucracy and cost.
  • Evictions are not a result of non-repair, but a result of non-payment
  • This proposal will increase evictions, not decrease them.
Many of the tenants featured in the news surrounding the Eviction Defense Project (Milwaukee) are serial evictees.  This type of evictee increases the rents of good tenants; repeated court costs, employee time, and loss of rent will cause rents to rise.
 .
There are bigger issues to be addressed regarding evictions in Milwaukee.  We need to be looking at ways for landlords to be better landlords and tenants to be better tenants.  Many want to blame housing for all the problems in our communities.  A better approach for both housing and for the tenants that find themselves in eviction would be to look at the underlying cause of the tenant’s failure to pay rent and have both financial assistance and social intervention to make their future tenancies successful. Housing isn’t the problem, it’s part of the solution.  The money would be better spent on education, neighborhood programs, and increased police protection.
  .
The AASEW applauds efforts to reduce evictions as they are time-consuming and costly for the owners as well as negatively impacting the housing stock and the tenants.
Take action today; contact your supervisor or attend the meeting on Monday (7/17/17).
 .
Sincerely,
Ron Hegwood
AASEW President
Feb 09

For the past couple of years, we have sold out both the spring and fall sessions of Attorney Tristan Pettit’s AASEW Landlord Tenant Law Boot Camp.

It looks like we are on track to do the same for the upcoming February 18th, 2017 Boot Camp.

Last fall I waited too long to sign up my new staff members and could not get them in. I signed up three staff people very early for this one. 😉

You may ask ‘Why would Tim pay $537 plus wages to send three people to Boot Camp when he knows the laws so well?’

The answer is easy: One small mistake or missed opportunity will cost us far more than this. It is important that my folks know the law as WI landlord Tenant Law is not always what a reasonable person would assume it to be. And this is ever evolving, with both new laws, new interpretations by courts and new tricks by tenant advocates*. This is not the first time we’ve sent staff either.

This course is presented by Attorney Tristan Pettit. Tristan’s law practice focuses on landlord-tenant law, he is a current board member of the Apartment Association as well as former president, and drumroll please, he writes all the standard landlord tenant forms for Wisconsin Legal Blank.

If you want to go, now that my seats are secure ;-), you can sign up online or call Joy at the Association 414-276-7378 and reserve a spot.

http://www.landlordbootcamp2017.com

* Most “tenant advocates” only advocate for tenants that break the rules. This ultimately costs the rest of the good tenants more in increased rents and decreased service or more noise and disruption… but this is another story for another day.

Dec 31
The rental industry needs to be more active legislatively.
The first step in legislative action is knowing who your elected officials are and sharing your concerns.  Here is a link to find yours.
Mar 13

The Milwaukee Journal Editorial based on Matt Desmond’s new book Evicted builds upon some misperceptions about the rental industry.

A NYT reader’s comment on Desmond’s Evicted more closely follows what typical owners see when trying to run lower income housing.

The Journal editorial echoes Desmond’s advocating for legal representation for tenants in most evictions.  If you frequent eviction court you seldom see a day without Legal Action representing tenants.  ATCP 134 provides enticement for attorneys to represent tenants  tenants tin cases where the owner is doing wrong.

Implying tenants need legal representation simply perpetuates a myth that wrongful evictions are common and owners somehow benefits from an eviction. In fact by the time it is over the owner has lost two to three months rent and often more.  Legal representation for tenants in evictions seldom does more than simply let the tenant get another month of nonpayment before leaving.
 
In an average month eviction judgments in Milwaukee County exceed $847,000 – every month.  But this is but a fraction of the losses suffered by property owners.  Of those evictions, only a third of the cases had money judgments other than the court applied fees.  Was this because the tenant did not owe rent?  No, more likely because the owner did not want to waste more time chasing a judgment they will never collect.  Those in our industry as well as those outside of the rental business will tell you that less than a quarter of uncollected rent ends up in eviction court.
 
This is money removed from housing and increases costs for the rest of the tenant population. While some tenants may use the money for real needs like shoes for kids, some use it for other things that further harm the community.
 
Then there is the comments about constructive (illegal) evictions.  While statements like this flame the fires of hatred against landlords, such acts seldom occur and when they do there is adequate remedies for the tenant.  I own two duplexes that a guy walked away from his 1/3 down and eight years of payments after he spent a weekend in jail because he threw the tenants’ belongings out on the front yard and changed the locks.  Seems the tenant did not pay rent and when he went to find out why, he also found they broke the front picture window.  His first stop after getting out of jail was my office to see if I would buy them for the remaining mortgage.  Small owners take these things too personally…
 
Desmond’s book has brought the issue to the forefront. And this is good.  Its is our industry’s job to make sure this does not turn from what it is, the bringing a real problem to light, into yet another excuse to bash the rental housing industry.
 
The part of the discussion that would be helpful to the overall community is increased housing vouchers.  Universal food stamps for people in need was a good first step many years ago. Housing and utilities vouchers for those who need them the most would be a good next step.
 

Mar 01

Governor Walker signs AB 568

AB 568 was signed into law on 2/29/2016 as WI ACT 176
 
Present at the signing were Attorney Tristan Pettit, to your left, WI Governor Walker’s right. Tristan presents the AASEW Landlord Tenant Law Boot Camp.
 
To your right, Governor’s left, is Joe Murray, the AASEW lobbyist.
 
Tristan and Joe, along with AASEW Attorney Heiner Giese and folks from the WAA, led by Gary Goyke, did a lot of work on this bill.
Feb 28

Yesterday I wrote about 2016 revision to the Wisconsin Landlord Tenant Law.  Over on FaceBook Brian Peters, whom I respect, responded.  I thought the discussion warranted bringing it over here for those who do not follow me on FaceBook.

Brian Peters Unfortunately, those changes, along with other changes in past, allow for abuses by bad landlords. Which is why I’ve been calling them the Slumlord Protection Acts.

For example, you mentioned drugs. I doubt people who do “white collar” crimes will find themselves tossed out. This will impact some people more than others.

This provision is also dangerous as it makes it easier for a landlord’s prejudices to come into play.  

Finally, do you really want landlords to be in that position? You once told me about how community prejudices would cause calls to building inspectors. Do you really want calls from neighbors claiming they saw suspicious activities and demanding you evict the person?

My response to Brian was as follows:

While you and I often agree on many issues, I think you have this one wrong.   

The notion that landlords enjoy or profit from evictions is a myth perpetrated by those with a bias against landlords or rental housing.  The typical eviction costs the owner at least two months rent, court fees and damage to the property. I have yet to meet an owner who enjoys the process or comes out ahead. Landlord’s prejudices, although rare today, most likely appear in the application selection process.   This law will not add to nor prevent this.
 
Owners already face demands by neighbors and city officials to evict for activity where there has been no arrest or even credible evidence that the tenant is engaged in wrong doing.  This provision will not add to nor prevent this as it is the result of the neighbors’ prejudices that elected officials willingly participate in hopes of getting reelected.  This is a nationwide issue. Google Minority Threat Theory to read many scholarly articles on this, or read the work of Matt Desmond that was based on his work in Milwaukee. Matt will be in Milwaukee for a book signing on Tuesday.  I will email you a copy of our HUD complaint.
 

The new law does not allow for eviction for use or simple possession, which actually makes it harder to evict by invalidating the Cobbs case, which permitted eviction for simple possession or use in Section 8 Housing 

The change in the law however allows owners to act when there is a major problem.  I would expect that you would want an owner to address rampant drug dealing or the violent person next door to your home.  This change allows that to happen easier, but contains protections for the tenant.

One change included that I wanted is the one that permits the use of 5 Day notices to address lease violation in month to month tenancies.  The law, as it was, only permitted the use of a 14 Day termination without the tenant having the right to cure when a month to month tenant violated the rental agreement.  Now we can give the tenant a 5 Day to address things like the pit bull they brought home.  If the tenant removes the dog, then they cannot be evicted and everyone wins.
Brian replies:

How does it benefit the tenant to not have the opportunity to cure the violation?

I was imprecise with my language earlier, BTW-good that you clarified it for anyone reading this.

Tim:

You have this backwards. The new law ADDS a right to cure notice for month to month breaches where none existed before.

We championed the addition of the right to cure notice because our industry wants to avoid evictions when possible, but we also want disruptive removed as soon as possible if they will not make the correction. Remember all evictions are costly to both landlord and tenant.

Brian:

I realize that. I guess you see the bad tenants while I see the bad landlords so we both have our perspectives.

Tim

Actually I see very few bad tenants. While some fail due to economic fragility, I would not call them bad. Out of approx a thousand tenants last year, it looks like we evicted 7 during the year that would be considered bad.

Tenants and landlords need each other just as Clownfish and anemones need each other. A quick view of this is at the post: The enemy of my customer is…. Of course it is more complex than that.

Both sides need to be careful not to be played by people who try to create strife between us only due to their dislike of tenants for reasons unrelated to housing.
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