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.

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.
 
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.
.

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.

Jul 19

Perhaps excluding the likes of Amazon, Google, and Tesla, most well run, and effective businesses can achieve 10, 15, 20% or more sustainable improvement every couple of years by applying “Fresh Eyes” to their procedures and processes.

Your business is doing well, at least you think so. But you know it would do better if only you could just … [put your challenges and opportunities here] You say ‘I’ll jump on doing that next week, or after the vacation, or after Labor Day or by the end of the year.’ Sorry, buddy. Ain’t happenin’. You said the same last year and the year before and…

Let’s be honest you can’t see the opportunities and obstacles, and if you do, you cannot act on them. The excuses your staff and you have created to avoid doing what must be done have been internalized and are no longer even noticed. Processes that were in place and working have fallen by the wayside. You step over great opportunities sitting on your front step every morning, without even noticing them anymore or worse, curse them for being in your way.

We are blind to missed opportunities and obstacles because we are too close. In the past twenty-five years, I went from 175 to 200 pounds. I did not see even one of those pounds sneak up on me, but they are here today. Your business is the same, slowly getting fat, but not noticed.

‘Well, I’ll just have my staff take a look and make changes.’ Sorry, they have worse baggage than you.

What we’ve done at my company for many years now is to hire a temporary set of “Fresh Eyes.” This person must be a potential superstar, who is available to work for a couple of, or a few months. They are never hired to fill a current role.

Rather the “Fresh Eyes” position is to question everything we do. You know how it is easier to tell someone how they should run their business or their life than to do the same yourself. That is what we are looking for in a “Fresh Eyes” person.

Typically we hire people outside of the rental industry, so they have a different perspective than us. We’ve had a former Health Department inspector, a former Alderman, a couple of former community leaders, a former manager of a temp service. I lean towards people different than us, but who have proven themselves as leaders and producers.

The goal is to hit a sustainable 15% improvement with a two to four-month commitment to work with the “Fresh Eyes” employee.

To get value full value from this experience, you must remember that “Ego is the Enemy”* and do not allow yourself to feel insulted or defensive of your soon to be former bad ways.
——
*Ego is the Enemy is the title of a book on Stoicism by Ryan Holiday – It is worth the read. Find it on Amazon.

“MY OPPONENT IS MY TEACHER. MY EGO IS MY ENEMY.”
— RENZO GRACIE

May 03
Fox 6 did an expose on Alderman Stampler’s side gig as a landlord.
While Stampler may or may not be a good or bad landlord[1], the problem with this type of reporting is it stigmatizes everyone who is in this very tough business.  And it is a hard business. Many a well-funded nonprofit has failed trying to provide housing in lower income markets
So the Baird investment banker takes a public shaming that may be career-ending. An NBA star receives a public shaming that could potentially have forced him out of the league. An alderman takes a public shaming.
This relentless negative press on the industry creates a fear within those of slightly lesser means that if things go even a bit wrong, they will be publicly attacked. What a disincentive for those with adequate resources to invest in the poorer neighborhoods of the city, creating an environment that allows and perhaps even encourages predatory owners into the market due to the vacuum created by the of others unwillingness of others to take the chance.

[1] Stampler responded to the reporter “Put it this way, when she moved into that property it wasn’t like that, okay,
If the house had rodent problems, broken windows, defective detectors and damaged light fixtures when the tenant moved in shame on Stampler.  If the tenant did the damage and lived in a way that contributed to infestations and then blamed  Stampler in an attempt to ruin his career, then shame on her.
The home on N 22nd is a single family.  If the infestation was not present when she moved in, then the responsibility was that of the tenant under both state statutes, §704.07(3)(a), and Milwaukee ordinances  275-82-3-b.  The woman was a landlord herself prior to a handful of foreclosures in 2010.
DNS orders are not always what they appear to be. A defective detector often is one that the tenant simply took the batteries out of. A handrail violation? Many times DNS orders retrofitting of rails to newer standards, contrary to the codes. In DNS terms a defective roof could be an entire failed roof or a single missing tab.
Prior to 1986 Milwaukee’s code and building inspection held tenants responsible for things like removing batteries from detectors, housekeeping and the damage they did.  In 1986, File Number 85-1396-a,  the Council decided that tenant responsibility was a bad thing. The only recourse owners have now is an eviction or small claims judgments.  Judgments on uncollectible defendants are worthless.
Evictions are expensive, and the results are not satisfying despite what the author of Evicted may purport.  Not holding tenants accountable for their actions contributes to the decline in housing and neighborhood disorder.
We must return to a system where all parties are responsible for their acts and omissions, not just the landlord.

M.C.O. 275-82-3

b. Occupant’s Responsibility. Every occupant of a structure containing a single occupancy shall be responsible for the extermination of any insects, rodents or other pests on the premises. Every occupant of a structure containing more than one occupancy shall be responsible for extermination within the occupancy whenever the occupancy is the only one infested. Whenever infestation is caused by failure of the owner to maintain a structure in a reasonably rodent-proof or reasonably insect-proof condition, extermination shall be the responsibility of the owner.

Wis. Stats. §704.07

(3) Duty of tenant.
(a) If the premises are damaged, including by an infestation of insects or other pests, due to the acts or inaction of the tenant, the landlord may elect to allow the tenant to remediate or repair the damage and restore the appearance of the premises by redecorating. However, the landlord may elect to undertake the remediation, repair, or redecoration, and in such case the tenant must reimburse the landlord for the reasonable cost thereof; the cost to the landlord is presumed reasonable unless proved otherwise by the tenant.

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