Categories
Code Enforcement Foreclosures

“Forcings,” the opposite of takings and emminate domain

Interesting paper on forced ownership i.e. prohibitions against abandonment by owners or lenders

Forcings by Lee Anne Fennell::SSRN

Despite some efforts to force lenders to foreclose when mortgagors vacate the premises and cease paying, defaulting mortgagors may be forced to retain ownership and the obligations that follow from it—including liability for homeowner association dues. A sale of the property is often blocked by the fact that the mortgage balance far exceeds the likely sales price. The inability of the homeowner to come up with the difference locks her into ownership, unless the lender either agrees to a short sale or forecloses on the property—and it may legally choose to do neither.

Categories
employees Insurance Maintenance & Repairs

Avoiding responsiblities for a worker’s injuries

A reader of the ApartmentAssoc Yahoo Group asks:

I am about to hire someone to cut some trees around houses. I told him that I would like him sign something to knowledge that I will not be responsible of his personal injury from this job if it happens. What kind of form and where I can find it? and is it enough or something else I have to do to insure that I will be absolutely OK if his personal injury from work actually happens

It is not possible to have someone sign away their rights or your liability under Wisconsin worker comp laws.  The only safe options are to have a minimum worker comp policy of your own or only hire companies that are insured.

Remember that a dwelling liability policy will not cover injuries to those working on the property.  This is an area that a lot of owners of small multi families run into problems with when they assign a tenant to do lawn work or snow removal for a discount in rent.

There is really a great risk in not having the coverage or in hiring people without coverage. I had an employee that was making a minor repair to a small first floor porch overhang. He made a wrong move, fell and the worker comp carrier had to pay out $140,000.  If we would have been uninsured that would have been me paying out the $140k, and probably more as insurers get discounts from the medical providers.

If you have employees, or non employees deemed to be statutory employees,  then the law requires coverage.

I think the minimum worker comp policies are around a grand a year, but am not positive.

Categories
Uncategorized

Crooked houses – a diversion

My wife, Carmen Ballering, is preparing for Miami Art Basel (Dec 5-8) If you’ve been to my office you’ve seen her house paintings in acrylic. Crooked Houses is done in uninflated balloons and acrylic over canvas.

You can see a lot of her work including couture fashion from balloons at GotLatex.com

crooked_houses
Crooked Houses by Carmen Ballering
Categories
Fair Housing Filling Vacancies Tenant Screening WI L/T law

Why can I only have three unrelated people in my four bedroom home?

In Milwaukee the city enforces a prohibition against occupancies with more than three unrelated people.  The answer on where in the code this resides is a bit  convoluted, but this is how the city arrives at that answer:

200-08-74. ROOMING HOUSE means any  building or part of any building or dwelling unit  occupied by more than 3 persons who are not a family or by a family and more than 2 other  persons for periods of occupancy usually longer  than one night and where a bathroom or toilet  room is shared.

If you meet this requirement you must have a rooming house license.  Now if each person has a bathroom and they promise not to pee in the other person’s bathroom can you have as many occupants as bathrooms?  I would think so.

200-8-33. FAMILY means, unless otherwise specified, a person occupying a dwelling unit, or dwelling unit with one or more persons who are legally related to such occupant by virtue of being husband or wife, son or daughter, mother or father, sister or brother, uncle or aunt, grandparent, grandchild, niece or nephew, first-cousin, mother-in-law or father-in-law, all of whom comprise no more than one nuclear family unit per household. Included in the term family are 4 or fewer legally assigned foster children, except that more than 4 may be legally assigned if all are related to one another as brothers or sisters. Family also means a domestic partnership of 2 individuals who meet all conditions of s. 350-245-3-a to e and at least 3 of the conditions of s. 350-245-5

As mentioned in the last post, WI Fair Housing recognizes housing code occupancy restrictions based on quantity of people.  It does not appear to recognize  ordinances based on relationship of the occupants:

106.50(5m)(e) It is not discrimination based on family status to comply with any reasonable federal, state or local government restrictions relating to the maximum number of occupants permitted to occupy a dwelling unit.

Are you breaking state law in complying with the city code?  Who knows, but it seems like the city ordinance conflicts with the Fair Housing law.

Occupancy standards, yours or municipalities’ should be based on the number of occupants and not their relationships. There are a couple of good, interesting U.S. Supreme Court cases on the issue. Justice Marshall wrote a very interesting dissent in Belle Terre v. Boraas, 416 U.S. 1 (1974) which was prior to the inclusion of familiar status protections

The most relevant part of Belle Terre dissent:

  MR. JUSTICE MARSHALL, dissenting. 

The instant ordinance discriminates on the basis of just such a personal lifestyle choice as to household companions. It permits any number of persons related by blood or marriage, be it two or twenty, to live in a single household, but it limits to two the number of unrelated persons bound by profession, love, friendship, religious or political affiliation, or mere economics who can occupy a single home. Belle Terre imposes upon those who deviate from the community norm in their choice of living companions significantly greater restrictions than are applied to residential groups who are related by blood or marriage, and compose the established order within the community.  The village has, in [416 U.S. 1, 17] effect, acted to fence out those individuals whose choice of lifestyle differs from that of its current residents. 

A more recent case is Edmonds v. Oxford House, 517 U.S. 725 (1995) also is a good read

 

 

Categories
Fair Housing Tenant Screening

Can I reject an app for too many occupants

A reader asks:  I have a one bedroom unit that a family of four has applied for.  Do I have to accept them?

It depends on the local housing code.  If the housing code does not permit the number of occupants, then Wisconsin Fair Housing does not require you to accept them.  The law is:

106.50(5m)(e) It is not discrimination based on family status to comply with any reasonable federal, state or local government restrictions relating to the maximum number of occupants permitted to occupy a dwelling unit.

In the city of Milwaukee occupancy standards are in Chapter 275-44  A one room unit is limited to two people.  For units with two or more habitable rooms, rooms of 70-100 square feet are limited to one person and rooms of 100 or more feet are limited to two each. Remember that the age of the person is not a factor so kids count the same as grown ups.  Remember too that the code is for  “habitable rooms” not specifically  bedrooms.

A landlord may also have their own standards, but that is a lot more dicey.

Categories
Leases & Rental Agreements Uncategorized

The new Wisconsin landlord tenant law, criminal activity and leases

A reader of the ApartmentAssoc Yahoo Group questions how the new landlord tenant bill affects leases that attempt to deal with criminal activity.  The new law is:

704.44 (9) Allows the landlord to terminate the tenancy of a tenant based solely on the commission of a crime in or on the rental property if the tenant, or someone who lawfully resides with the tenant, is the victim, as defined in s. 950.02 (4), of that crime.

704.44 (9) is a prohibited lease provision. Therefore a lease is void if it allows you to evict the tenant solely because of a crime that the tenant or an authorized co occupant were the victim of.   The provision was meant to be a protection for domestic violence victims.

As I read this an example would be if the tenant’s door is broken.

  • If the damage was caused by the tenant and you use your lease to evict them for the damage all is good.
  • If the damage occurred during a burglary and you attempt to evict them based on a lease provision, you would fail and possibly be in trouble. It would be wrong even without this law to evict a victim of a crime.  ‘Oh, you were robbed of your tv and radio – well now you are losing your home too because having your door broken during a robbery is a lease violation’. – bad landlord.
  • If the door was broken by the ex boyfriend that they had a restraining order against, you would most certainly be in trouble.  But that is the current law under 106.50 (5m) (dm).
  • On the other hand if the door was broken during a robbery committed by a rival drug dealer and the police report indicated that, then a lease provision such as a crime free addendum would be fine.

I agree it is not the perfect language. However this is far better than the prior prohibition against a lease that permitted you to evict the tenant for a crime they could not have reasonably prevented.

Under the new wording you can evict a tenant if they fail to exercise reasonable control of the property.   An example is if the tenant’s grandson who does not live at the property comes over and sells drugs out of grandma’s unit.  Under the current law you would have a hard time crafting a lease that would be legal and permit you to evict as a means of stopping the drug traffic because it is very likely that granny could not reasonably prevent the activity. The only answer would be wait until the Police send an angry letter about the nuisance activity.  Under the new law your lease will be able to address this because granny is not a victim.

His second question is:

What happens if a tenant gets a Disorderly Conduct ticket, or a ticket for possession of marijuana, or a ticket for… Was there a commission of a crime?

You do not have to differentiate between citations and crimes in the above.  The tenant was not a victim, they were the perpetrator of the act and therefore a lease provision that permits eviction would be valid under both the old and new law. Plus the law acknowledges that criminals are not victims of their own crimes

§950.02 (4) (b) “Victim” does not include the person charged with or alleged to have committed the crime.

However if the tenant was the victim of what could be considered a criminal act, I think you must treat the tenant as a victim regardless if the perp was given a citation or a state charge.  So if in the prior door broken by a burglar example you would be wrong in evicting a tenant even if the guy who did it only received a muni citation.

There will be more on this as a discussion of how to make the Crime Free Lease or addendum work within this new law.

Categories
Uncategorized

New WI law will require new leases

With the passage of SB179 and the previous passage of ACT 143 a lot has changed with Wisconsin landlord tenant law.

I am trying to assemble a working group of landlord/tenant attorneys and managers with a lot of experience to create a great Wisconsin lease that incorporates the changes in the new law as well as those from ACT 143.

First if you are one of the above group and want to be a participant, let me know.

However even if you are not a landlord tenant attorney or seasoned property manager, I would like to hear of instances that you found your lease defective or deficient.

Categories
crime Leases & Rental Agreements WI L/T law

Change required for WI Rental Agreements

SB179 that passed last week requires language in your leases regarding protections under the law to victims of Domestic Violence.  While the law is not yet in effect, there is really no good reason not to include the language now.  Here is the required language:

NOTICE OF DOMESTIC ABUSE PROTECTIONS

(1) As provided in section 106.50 (5m) (dm) of the Wisconsin statutes, a tenant has a defense to an eviction action if the tenant can prove that the landlord knew, or should have known, the tenant is a victim of domestic abuse, sexual assault, or stalking and that the eviction action is based on conduct related to domestic abuse, sexual assault, or stalking committed by either of the following:

(a) A person who was not the tenant’s invited guest.

(b) A person who was the tenant’s invited guest, but the tenant has done either of the following:

1. Sought an injunction barring the person from the premises.

2. Provided a written statement to the landlord stating that the person will no longer be an invited guest of the tenant and the tenant has not subsequently invited the person to be the tenant’s guest.

(2) A tenant who is a victim of domestic abuse, sexual assault, or stalking may have the right to terminate the rental agreement in certain limited situations, as provided in section 704.16 of the Wisconsin statutes. If the tenant has safety concerns, the tenant should contact a local victim service provider or law enforcement agency.

(3) A tenant is advised that this notice is only a summary of the tenant’s rights and the specific language of the statutes governs in all instances.

You will also need to update your disposal of property language to include the new language on stuff left behind after an eviction, but that can wait until this law is in effect.

Categories
Act 143 Omnibus Bill ATCP 134 DIY Evictions Evictions WI L/T law

Big change to WI landlord Tenant Law passes Assembly and Senate

Late yesterday the Wisconsin Senate approved an Assembly amendment to SB 179.  This law, which should be in effect around the first of 2014, makes sweeping changes to Wisconsin Landlord Tenant Law.   The bill was a combined effort of the Apartment Association of Southwestern WI, The Wisconsin Realtors and the Wisconsin Apartment Association.

The Legislative Council Memo on SB 179 puts the changes in fairly layman terms. AASEW past president Attorney Tristan Pettit worked extensively on the bill.  He will be providing information on the changes at the AASEW Fall 2013 Landlord Boot Camp.

Highlights of the bill taken from the Leg Council Memo are, and this is my analysis of what is important and not a legal opinion by an attorney because as you know I am Just A Landlord:

Restrictions on Local Ordinances [Sections 1 to 4]

Municipalities are currently prohibited from enacting or enforcing ordinances that:

  • Imposing a moratorium on eviction actions
  • Places certain limitations on what information a landlord may obtain and use for screening.

New law adds prohibitions against ordinances that:

  • Limits a tenant’s responsibility, or a landlord’s right to recover, for any damage or waste to, or neglect of, the premises that occurs during the tenant’s occupancy of the premises.
  • Limits a tenant’s responsibility or a landlord’s right to recover for any other costs, expenses, fees, payments, or damages for which the tenant is responsible under the rental agreement or applicable law.
  • Requires a landlord to communicate to the municipality any information concerning the landlord or tenants unless the information is required under federal or state law or is required of all residential real property owners.

Leases [Section 18]

Under current law, if a lease is void and unenforceable if it contains a provision that allows the landlord to terminate the tenancy of a tenant if a crime is committed in or on the rental property, even if the tenant could not reasonably have prevented the crime.  [s. 704.44 (9), Stats.]

The new law allows for Crime Free Lease Addendums as long as you include  a specified notice, in the lease agreement or an addendum to the lease agreement, of certain domestic abuse protections available under ss. 106.50 (5m) (dm) and 704.16, Stats.  The first of these sections prohibits a landlord from evicting a tenant because of the tenant’s status as a victim of domestic abuse, sexual assault, or stalking.  The second of these sections provides that a residential tenant may terminate his or her tenancy if the tenant or a child of the tenant faces an imminent threat of serious physical harm from another person if the tenant remains on the premise

 

Timing of return of Security Deposit with regard to evictions [Sections 15 and 16]

Under current law, if a tenant is evicted, a landlord must return the security deposit to the tenant, less any amounts that are appropriately withheld, within 21 days after the date on which the writ of restitution is executed or the date on which the landlord learns that the tenant has vacated the premises, whichever occurs first.  [s. 704.28 (4) (d), Stats.]

Under Senate Bill 179, If the tenant is evicted before that date, the landlord must return the security deposit within 21 days after the lease terminates or, if the landlord re-rents the premises before that day, the date on which the new tenant’s tenancy begins.  If the tenant is evicted after the termination date, the landlord must return the security deposit within 21 days after the date on which the landlord learns that the tenant has vacated the premises or the date the tenant is removed by eviction.

Service of Summons in Eviction Action [Section 22]

Allows courts to permit service of eviction summons by Certified Mail.  This will be on a county by county basis.

 

Allows LLC to appear by member or agent, rather than requiring attorneys [Section 21]

Under current law, in any small claims action, a property owned by an LLC must use an attorney or full time employee of the LLC

Senate Bill 179 eliminates the requirement that the employee be a full-time employee and also allows any small claims action by a member of the person, an agent of the member or an authorized employee of the agent.  This provision applies to all small claims actions, not only evictions.

Disposition of Property Left on Rental Premises After Eviction [Sections 9, 10 and 29 to 46]

Under current law, in Milwaukee County, the sheriff must remove and store the tenants’ property. In all other counties, the landlord may choose to be responsible for the removal and storage of the property.

Under Senate Bill 179, if a tenant is evicted and leaves property on the rental premises, the landlord is not required to store the property unless the landlord and tenant have entered into a written agreement which provides otherwise.  If the landlord does not intend to store personal property left behind by a tenant, the landlord must provide written notice either when the tenant enters into or renews the rental agreement. If this notice is provided, the landlord may dispose of the property, other than prescription medicine or medical equipment, in any manner that the landlord determines is appropriate.

Towing of Vehicles [Sections 5 to 8]

Under current law, a vehicle that is parked on a private parking lot or facility without the permission of the property owner may not be removed without the permission of the vehicle owner, unless a traffic or police officer issues a citation for illegal parking, or a repossession judgment is issued.

Under Senate Bill 179, a vehicle that is parked without authorization on private property that is properly posted may be towed immediately regardless of whether a parking citation is issued.

This final one is the most complex of the changes and requires some Administrative rules to be created.

There is also a change regarding Mobile Home Parks, but I am not impacted and therefore did not review them.

Categories
Leases & Rental Agreements Tenant Screening WI L/T law

AASEW Landlord Tenant Law Boot Camp Oct 26th, 2013

I am a strong supporter of both the Apartment Association of Southeastern WI as well as believing all landlords should know as much as possible about our business.  Seminars such as the AASEW Landlord Boot Camp were the foundation that I built my knowledge of rental laws upon.  I encourage you to attend this fall’s AASEW Boot Camp.

This Boot Camp may be more important for those with a good understanding of the laws as it will go into detail on what to expect when the new Wisconsin Landlord Tenant Law passes later this month.