Categories
Carbon Monoxide Code Enforcement Maintenance & Repairs

Where to install CO detectors

A reader of the ApartmentAssoc Yahoo Group asks:

Am I correct when I say a 2 story 4 unit building w/ a basement would need 7 co detectors installed.  Can they be combo smoke/co detectors or do we need separate detectors for each function?  Any help would be appreciated…..Thanks

My reply cleaned up a bit from the original is below As of April 1st, 2010 Wisconsin began requiring CO detectors in all multifamily buildings. As of February 1st, 2011 the requirement expanded to all residential buildings including owner occupied single families.  There are a few exceptions such as units that have electric heat AND do not have attached garages AND do not have gas stoves; as well as those with sealed combustion furnaces and water heaters that are inspected regularly.But most WI residential buildings now must have carbon monoxide detectors.

Where to install and how many carbon monoxide detectors are required depends on a number of factors.

Categories
employees

Reducing the impact of Milwaukee’s Paid Sick Day Ordinance

With the Court of Appeals upholding Milwaukee’s paid sick leave ordinance yesterday many of us who have employees will be impacted to some degree, at least until the state legislature enacts a bill to prevent such ordinances.

How will this affect us and what can we do to minimize the impact at a time when many owners are struggling just to survive?

We knew this referendum would pass at the ballot box. Why wouldn’t it pass? The referendum was presented in a way that made is sound like you were voting for free beer or free rent.

On the surface it would appear that it could cost my company $35-45k in direct wages and probably $2-3k in compliance cost such as developing an effective method of tracking the hours earned.

A couple of years ago I was discussing this with another business owner. His reaction was similar to mine; move as much of the company as possible outside the city limits.

But once you read the ordinance it seems the impact can be much less.  We ultimately decided we could integrate the mandate into our business at minimal cost to us.  Two and a half years ago, the day after the referendum passed, we implemented a paid time off policy that complies with the ordinance without negatively impacting our costs nor negatively impacting our employees.

Categories
Uncategorized

Fellow Landlord John Chitko passed away Sunday morning

Long time Apartment Association member and founder of J & J Rentals and Construction, LLC John Chitko passed away Sunday morning.

In everyone’s life there are just a handful of people who make the greatest impact.  John was one of those people in my life.

The son of Polish immigrants, he quit school at a very young age to help run his family’s farm in northern WI after his father passed away.  Despite a start in life that would have held many back, John became one the largest Southside landlords.  Yet he remained humble and frugal.  I do not believe that he ever owned a new car.

Categories
Fair Housing Filling Vacancies Tenant Screening

Can I Reject Applicants Who Don’t Speak English?

On one of the landlording email list I participate in the following question was asked:

Am I obligated by law to rent to someone who does not speak English? I don’t have a problem with their ethnicity, but I see ALL kinds of problems ahead if they don’t speak or read English.

I think this is an important enough issue to share it here  – cleaned up from my original post :

While language is neither a Federal nor a Wisconsin protected class,  you need to be careful that the rejection is is not perceived to be discrimination against national origin, which is a protected class.

Categories
1099 employees Taxes

1099 Changes May Be Reversed

Call your favorite federal representative or senator and tell them to support the following:

On February 17, the House Ways and Means Committee approved H.R. 705, the Comprehensive 1099 Taxpayer Protection and Repayment of Exchange Subsidy Overpayment Act of 2011.

This bill will remove the requirements to give 1099 to suppliers of goods and to corporate service providers.  It also will remove the requirement for SMALL landlords to submit 1099’s

Also on February 17, the Senate voted to pass the FFA bill S 223 that also removes the 1099 requirements for suppliers of goods and to corporate service providers.

What are changes to  the 1099 rules and why they need to be changes?  Read my prior post here:

Much more paperwork for landlords in 2011

With or without changes the issue of having your contractors reclassified as statutory employees is a real risk:

Your handyman – cheap contractor or $60,000 mistake?

Categories
Code Enforcement Fair Housing Government Behaving Badly Magner v. Gallagher

Racially Based Code Enforcement Case reaches US Supreme Court

It is a sad reality that many communities use code enforcement to promote an illegal racially motivated agenda.  The ACLU outlines their view of the problem in an article, Renting While Black.

We see it here in Milwaukee where at least one Alderman appears to use Aldermanic Service Requests in a way that only the ku klux klan would be proud of.

Even if so called community leaders are not actively involved in the racially motivated inspections, a complaint based code enforcement  that permits anonymous exterior complaints opens the door for neighbors to promote their biases through code enforcement

There have been a number of federal lawsuits over the years alleging racially motivated code enforcement.  A list of some of those cases can be found here.

Typically if a case gets to the point that the  property owners may win the municipality quickly and quietly settles.  Usually not for the full compensation for the harm caused by the racially motivated enforcement.  But lets face it, it takes a lot of financial and mental tenacity for a small landlord to slug it out against cities with seemingly endless resources to defend their bad behavior.

However there is one such case that the landlords have held on for something like eight years now.  After the Federal Eighth CIrcuit Court of Appeals issued an opinion favorable to the landlords, the city of St Paul has petitioned the US Supreme Court for review (link to petition for review).  You can read the amended original complaint that started this case here.

If the Supreme Court hears this case it will have a huge impact on all landlords who follow fair housing practices, i.e. don’t reject tenants tenants simply because they are a different color, nationality, religion, etc than their neighbors.  One must really respect these property owners for the amount of sacrifice they have made to get this far.

The case alleges that St Paul housing inspection programs were used in a racially motivated manner to force racial minorities out of St Paul and that such actions violated the Fair Housing rights of the occupants.  A very interesting point is a number of city employees including inspectors are on the hook personally in this suit.  From a legal perspective they must defend themselves as they and their employer have disparate interest; for the city to win if the allegations are proven true they must claim rogue employees acting outside of the law.  For the inspectors to win they must argue that they were following instructions that they believed were legal. The inspectors may have a hard time claiming ignorance however as the owners had provided the inspectors with documentation that the inspectors’ acts were contrary to Fair Housing, yet the inspectors continued with their agenda.  At some point the inspectors will have to name their union as third party defendants as the union failed to stop management from allowing/forcing them to violate the rights of the tenants and owners

From my conversations with two of the plaintiffs over the past six or seven years they seem to be just a handful of hard working landlords who independently found themselves on the losing end of government behaving badly.  The current case is a consolidation of three or four cases that started independent of each other, but the claims were so similar that the federal court combined them.

Most of the cases claimed RICO (racketeering) on the part of the city employees. The RICO elements were dismissed due to procedural errors.  I’m certain that some future case will go to trial on that issue, whether in St Paul or somewhere else.

Categories
Foreclosures Investing Strategy

Unsettling new trend in Foreclosure cases

Wells Fargo v. Sandra A. Ford is a NJ case that started as a pro se defense to a foreclosure. It ends with Wells Fargo getting spanked by the NJ court of Appeals in what will be a published decision..  At appeal the defendant was represented by Legal Services of NJ, which is similar to Legal Action of WI.

My great interest in foreclose defense cases is twofold.

First I see some of these cases holding the potential of unraveling the entire real estate market by creating hundreds of thousands of “free” homes across the nation. I fear this will cause a second and more dramatic drop in housing prices as once the mortgages are wiped people can sell for practically nothing and make a profit.

Secondly, on a personal level, absent this new legal trend I feel that we are nearing the time to buy again in the two markets I’m interested in  (Milwaukee and Miami)  I am very concerned that these cases could proceed to a point that properties previously foreclosed upon could revert to the original owner if cases are allowed to be reopened on the basis of fraud on Court by the banks and/or MERS.  Wisconsin §806.07(1)(c) or 806.07(1)(g) would appear to allow cases to be reopened if there were to be a major Wisconsin, Florida or Federal ruling on this in the future.  (Florida is one of the states that has a high number of foreclosure cases being lost by the banks)

While title insurance would should cover the cost of the property, would you be able to recover the cost of repairs and improvements?

Categories
1099 employees Maintenance & Repairs Taxes

Senate Passes 1099 Repeal Amendment

Accounting Today has a good article on the Senate bill to amend the 1099 filing requirements

It looks like if this is signed into law we won’t have to send 1099s to the Home Depot.

However this does not appear to repeal the new 1099 requirements under the Small Business Jobs Act for landlords

As you recall the Small Business Jobs Act expanded the1099 reporting to all landlords when they pay more than $600 to non-corporate service providers such as your local handyman.

Categories
Carbon Monoxide Code Enforcement Maintenance & Repairs

Wisconsin CO Detector Law for One Families & Duplexes

With very few exceptions, all single family and duplexes in Wisconsin will be required to have carbon monoxide detectors installed as of February 1st 2011. You can read about the multi unit building version of the CO detector law here

The important part of the law for most of us is:

“101.647(3)(a) The owner of a dwelling shall install a functional carbon monoxide detector in the basement of the dwelling and on each floor level except the attic, garage, or storage area of each dwelling unit. A carbon monoxide detector wired to the dwelling’s electrical wiring system shall have a backup battery power supply. Except as provided under par. (b), the occupant of the dwelling unit shall maintain any carbon monoxide detector in that unit. This paragraph does not apply to the owner of a dwelling that has no attached garage, no fireplace, and no fuel-burning appliance.”

“(b) If any occupant who is not the owner of a dwelling, or any person authorized by state law or by city, village, town, or county ordinance or resolution to exercise powers or duties involving inspection of real or personal property, gives written notice to the owner that the carbon monoxide detector is not functional, the owner shall provide, within 5 days after receipt of that notice, any maintenance necessary to make that carbon monoxide detector functional.”

While the law does not contain a penalty for not complying, failing to have a working CO detector may result in additional liability should a problem occur at your property.. The law was passed and signed into law last year.


Categories
ATCP 134 Leases & Rental Agreements Security Deposit

Charging WI tenants a fee for breaking the lease

There was a discussion on the ApartmentAssoc@YahooGroups.com (link to home page) discussion list regarding charging a fee to a tenant who breaks a lease.

Liquidated damages, as they are referred to, are permitted in some states. For example in Florida you may give the tenant an option to be liable for the balance of the lease subject to mitigation or they can agree to liquidated damages up to two month’s rent. Most tenants seem to prefer the liquidated damages option because they know up front what they can expect if they must move before the end of the lease as opposed to needing to move to another locale and face owing perhaps eight or ten months rent.

However liquidated damages are not permitted in Wisconsin.  In fact having such language in your WI lease probably invalidates the entire lease. Why is this?