“Landlords Helping Landlords” NWCLA · 2011-04-25 · “Landlords Helping Landlords ... discuss your secret tips and tricks for marketing your units, pre-screening applicants,

NWCLANorthern Worcester County Landlord Association

“Landlords Helping Landlords”“Landlords Helping Landlords”

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Volume 64 March 2010Landlords Helping Landlords

NWCLA President’s March LetterDear NWCLA Membership,

I want to thank the membership for the opportunity to speak at the February NWCLA meeting to discuss the benefits of using the NWCLA web site and cover some of the ideas and methods of traditional and

online marketing for your rental units. I had a great time being with you all and as always, learned as much from the members as I gave out in the presentation. You are a great group of landlords with much to offer and I am proud to be of service to you all. If you missed the last meeting, you can go onto the NWCLA web site under the “Meeting Topics” section and download the presentation in PDF form. I updated the presentation from that night to include all of the web sites you, the members, recommended as resources in our open forum discussion. All of the links to web sites in the PDF are active so if you see a web site in the presentation you like, just click on it to launch that page in your browser. I got feedback from many members that really enjoyed the parts of the presentation where we opened up the floor to members to discuss your secret tips and tricks for marketing your units, pre-screening applicants, and tenant retention. Lots of great ideas from the floor. Thanks again to all who were willing to share.

Speaking of sharing, I want to Thank Board members David Fleckner and Jeff Landry for delivering on the time sensitive information about the new EPA RRP (Rehab, Renovate, Paint) law that is now in effect. Not only is the new law in effect, but as of April 22nd, 2010, non-compliance with the law can levy fines of $32,500 per incident. Yes, per incident. So what does this mean? It means if you do not go through the required training for moderate lead remediation, and are caught doing work on a property that you own for profit built before 1978 - then you are in violation of the law and can be fined. So at $32,500 per incident, swapping out 10 new vinyl replacement windows, could cost you $320,500 dollars in fines if you perform the work yourself without the proper certification training.

Once again, you can find more information about training and compliance on the NWCLA web site at the top of the “Legislation” page. There you will find links to the EPA web site that describe and explain the law, as well as links to local training that you can take to get your moderate level lead remediation certification. It only costs a couple hundred dollars for the 8 hours of training you will receive to be certified. If you want to further be certified by the EPA after you get this training, there is also more information on the web site on how to do this too. This also cost a few hundred dollars, so for a fee of about $500 you can be in full compliance

with the law. You just have to be super careful to abide by what you learn in the training when you decide to Repair, Renovate or Paint.

From remediation to mediation. Our March special guest speakers are Constable Raymond Gonzales and guest speakers from the staff of Remediation Services of Northern Worcester County. Raymond has been instrumental in resolving many of our housing court execution orders as well as serving Summary Process papers and other types of documents when we are in need of his services. Raymond is a reliable constable gifted with a silver tongue and has had solid results in negotiating with tenants to do as the court has ordered usually having the tenant move out without the need of hiring trucks, movers, and paying for storage for three months. In a few instances, Raymond was even able to have the tenant clean the apartment and remove all of their “belongings” from the rental unit when they left.

We also have Remediation Services of Northern Worcester County coming in to discuss methods and strategies to resolve landlord – tenant issues with win – win situations without the need or expense of housing court. They have an interactive presentation planned for us on Thursday that will hopefully make all of us better listeners when dealing with potential disagreements with tenants.

I also want to offer my sincere thanks and gratitude to all of you members who have consistently brought non-perishable food donations to every meeting to go to Ginny’s Food pantry in Leominster Mass. It warms the heart to see such generosity in such hard times for all. Keep up the great work there and don’t forget to receive your bonus raffle tickets to win door prizes for your food donations to Ginny’s Food pantry.

See you all in March at the members’ meeting. Warmest Regards To All, Brian LucierNWCLA President 2010 – [email protected]

In This Issue Page President’s Letter 1

NWCLA Useful Notes 2 NWCLA Members’ Sponsor Testimonial Program 2 Upcoming Topics, 4 BUY-SELL-TRADE-FREE 4

Is “Friending” in Your Future? Better Pay Your Taxes First 5 Web Site: http://www.pbp1.com/ 5

Real Estate Marketing 6 Seven Reasons You Should Get a Home Inspection 7 Ten Important Tips to Successful Real Estate Investing 8 How to Write a No-Smoking Lease 8 - 9 Laws Affecting Landlords 9 - 11 Short Sale? Foreclosure? Consult Your Accountant FIRST! 11


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NWCLA Membership $80 Membership Benefits Include:• Monthly NWCLA Newsletter• Local Drug Arrest List • Housing Court Eviction List• Member to Member Support• Informative Monthly Seminars• Association Attorney• Legislative Updates• E-mail Alerts on Housing Issues• Web Site - www.nwcla.com• NWCLA Blog posts at

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PresidentBrian Lucier [email protected]

Vice PresidentDebbie Greelish [email protected]

TreasurerTina [email protected]

Secretary/ClerkTheresa [email protected]

Membership DirectorBrenda [email protected]

Newsletter DirectorRick Dupuis [email protected]

Welcoming CommitteeRick Dupuis [email protected]

Marketing DirectorLaura Schmidt [email protected]

Web Site DirectorBrian Lucier [email protected]

Oil Program DirectorJay Johnson [email protected] Food CommitteeLaura Schmidt [email protected]

Program ManagerJeff Landry [email protected]

Board MemberDavid Fleckner [email protected]

Board MemberRon LeShane Jr. [email protected]

Board MemberJay Johnson [email protected]

NWCLA Board Members “NWCLA – Landlords Helping Landlords”

We are proud to serve the following communities:Ashby Ashburnham Athol Clinton

Fitchburg Gardner Harvard Hubbardston

Lancaster Leominster Lunenburg Phillipston

Princeton Sterling Townsend Westminster

Winchendon

P.O. Box 276 – Fitchburg, MA 01420 – 978-345-1887 – http://www.nwcla.com

NWCLA Members Testimonial Program Every month we are going to extend to you an opportunity to highlight the positive experi-ences you’ve had with any of the vendors in our newsletter. Please take a moment to e-mail me a few words describing the work that was done for you and the name of the contractor who completed the job. Your affirmative input will let other property owners in our group know that working with our advertisers can be a positive experience. This is also a great way to say “thanks” to the business men and women who contribute to the Northern Worcester County Landlord As-sociation and our goal of being the best landlords that we can be!

Laura’s e-mail is [email protected] or mail her stories to:NWCLA, ATTN: Laura Schmidt, P.O. Box 276, Fitchburg, MA 01420

NWCLA Useful Notes• Summary Process Summons &

Complaint Forms are available for $5.00 NWCLA meetings

• The newsletter committee needs you to E-mail your stories, ads, helpful hints, to [email protected]

• The Successful Landlord is avail-able to purchase at our meeting. Cost is $40.00. While supplies last

• Anyone seeking past eviction lists please go to our web site to download the latest copy.

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Does Your Real Estate Attorney Guarantee Your Satisfaction?

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Please Note: The information in this newsletter is not intended to be construed as legal, accounting, or other professional advice. Seek legal advice from licensed professionals for answers relating to your particular questions and circumstances.

Michelle Schmidt Realtor Cell: 978-828-0817 Email: [email protected]

“Call me today!

I’m glad to help with allof your real estate needs!”


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FOR SALE 2 Stoves 2 Refrigerators1 Washing Machine1 3-bay metal sink1 plastic utility sinkGreat for your apartments! Starting at $100.00Call Tim Damon @ 978-297-5254 __________________________ http://www.forrentorsale.net/ 3 different Ken Roberts training videos, and tapes complete with the manuals. Call Mark @ 978-502-5723 or e-mail: [email protected] __________________________NEW, sliding glass door unit for a 4 foot tub enclosure. Hard to find. Paid $200., Will sell for $100. Call Marria @ 978-534-5982 ___________________________ 1.) Used HP MX.70 17 inch desktop monitor color grey apx 4 yrs old not used for 2. Complete with box manual, pwr cord Excellent condition like new.Asking $65.00 or BO. First $50.00 takes it2.) Also have HP 845c color ink jet printer (grey) excellent condition like new with pwr adapter, no ink. Asking $35.00 or Bo. First $25.00 takes it.

Will sell all items above for $75.00 cash. All items are in working order and sold as is. I have all boxes; will deliver for slight fee w/i 30 mile radius of Fitchburg. These are my sons units - I need the room, he needs the money. Call Ken @ 978-342-0639 or e-mail: [email protected]___________________________36” x 80” outside door, hardwood with 6 windows, with frame. Dead-bolt lock included. $50.00 or BRO call Ken Anderson at 978-534-9533 or 508-641-1559 ___________________________

3 COLOR MONITORS!!! 19”& 20” VIEWSONIC Each in excellent condition. Left overs from recent professional graphics studio upgrades. Asking $80 each or BRO call Brian at 978-448-3873 or [email protected].

REAL ESTATELOOKING FOR INVESTORS!!!Seasoned real estate investor seeks other investors to partner on large apartment complexes. Call Brian at 978-448-3873 or e-mail. [email protected] ___________________________Looking for Property in Gardner, Leominster, Athol Areas. Any and all calls welcome for 10+ multi-family units. Have financing approved and ready to go. Call 978-448-3873 and ask for Brian. [email protected] ___________________________Time-shares Available For Rent in Aruba, Florida, Las Vegas. Any and all calls welcome 978-448-3873 and mention this ad and ask for Brian. [email protected] ___________________________Ad listings are free to members. There are three ways to submit your ad: (all ads are subject to review and editing)1.) Bring your classified ad(s) to the meeting

and post on the bulletin board2.) E-mail your classified ad(s) to: [email protected] 3.) Mail your classified ad(s) to: Attn Terry

NWCLA PO Box 276 Fitchburg, MA 01420 a.) State classification – Wanted, For Sale, Free, etc.b.) Describe the item – color, size, condition,

age, model number, price, etc. c.) Contact name – first and last name please

(must be NWCLA member)d.) Contact information – telephone and or

e-mail address All ads subject to space limitations in our newsletter.

BUY-SELL-TRADE-FREE

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NWCLA Program Schedule 2010 Mar 11, 2010 March’s speaker is Raymond Gonzales, who

is a local constable discussing, evictions and landlord – tenant issues.

Apr 08, 2010 April’s speaker is attorney Michael J. Ciota. Michael has been our long time NWCLA association legal advisor.

May 13, 2010 May’s meeting features representatives from Worcester Housing Court taking questions in a casual open forum.

June 10, 2010 Ed Nowak of JEES, Inc will focusing on how landlords should handle asbestos containing materials and mold contamination.



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NWCLA Members – Did You Know?... That NWCLA Board Members David Fleckner has been tracking pending legislation that effects all of us as landlords including helping members deal with out of town landlords? Be sure to visit the Legislation page on the NWCLA Web Site for this information and more related legislation topics. Take Action!!! http://www.nwcla.com/

Is “Friending” in Your Future? Better Pay Your Taxes FirstBy LAURA SAUNDERS

Tax deadbeats are finding someone actually reads their MySpace and Facebook postings: the taxman.

State revenue agents have begun nabbing scofflaws by mining information posted on social - networking Web sites, from relo-cation announcements to professional profiles to financial boasts.

In Minnesota, authorities were able to levy back taxes on the wages of a long - sought tax evader after he announced on MySpace that he would be returning to his home town to work as a real estate broker and gave his employer‘s name. The state collected several thousand dollars, the full amount due.

The IRS might be looking at your Facebook profile. Meanwhile, agents in Nebraska collected $2,000 from a deejay after he advertised on his MySpace page that he would be working at a big public party. In California, which has recently been so strapped for rev-enue it has had to pay some bills with IOUs, agents are also using social Web sites. When one delinquent was identified as a rigger of sails, a curious collection agent searched his name and the term online and found a discussion board used by local riggers. In one thread someone asked where the rigger was because his store had closed, and a reply was posted, “Oh, he moved across the bay.” The agent found the man and collected a four - figure sum. An Internal Revenue Service spokesman declined to say whether its agents use social - networking sites to pursue delinquent taxes or assist audits. Searches for tax dodgers typically begin with examinations of bank, employment, tax, and motor - vehicle records. “These new supplements are often far more efficient than the older ones, such as reading the local newspaper or making inquiries at barbershops and church meetings,” said Jim Eads, director of the Federation of Tax Administrators.

Now, when a tax dodger can‘t be found, said Nebraska tax official Steven Schroeder, agents often turn to Google. One agent collected $30,000 of unpaid tax from a resident after a Google search found him listed as a high - ranking local marketing rep for a national firm. If a Google online search isn‘t productive, agents use the social sites or chat rooms in a last-chance hunt for their quarries.

There are limits to what state agents can do on the Web. In Nebraska, agents are only allowed to use information that

is publicly available online. So, MySpace – owned by News Corp., publisher of The Wall Street Journal – tends to work best because its users often post more public information than do those of sites like Facebook, Mr. Schroeder said. The default settings for adults on MySpace create a public profile, while the default settings on Facebook create a profile only viewable by an approved list of friends.

“Agents are not allowed to ‘friend’ someone using false information,” Mr. Schroeder said. The same ethics rules hold in California, according to a spokesman for the state‘s Franchise Tax Board.

Not all state tax departments are jumping on the trend. Mas-sachusetts, long known for its aggressive tax collections, said it has “no systematic program” for trawling social media at the moment. According to Mr. Eads of the tax administrators‘ group, many state tax authorities currently block social sites on workplace computers to prevent employees from spending per-sonal time on them. “They may change their minds,” he said. “Using social media is something we will explore,” said Jessica Iverson, a spokesman for the Wisconsin Department of Revenue. A spokesman for Oregon’s revenue agency said his state is also “considering it.”

Other states are looking for ways use Internet information to enhance not only collections but also audits and negotiations. A Minnesota tax official said that when firms try to negotiate pay-ments by claiming to be strapped for cash, agents always check their Web sites. At the time one tanning business was crying poverty to the state, agents pointed out that its site boasted of supplying all the tans for participants in a big body-building contest.


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Real Estate MarketingBy Gary K. Holden

Your home should be listed, whenever possible, in the local Multiple Listing Service (MLS) and on other websites, which have a huge online database of homes and virtually 100% of potential buyers who look for property on the Internet.

Advertising The largest expense for a real estate agent has traditionally been classified advertising in local newspapers. However, today properties are also exposed through popular Internet home search/listing services and real estate guides. Utilizing print advertising together with maximum internet exposure is critical to a successful marketing campaign. Even with these additional advertising venues, a real estate “For Sale” sign on the front lawn are still remarkably effective. Many realtors use brochure boxes along with these signs to market the property. When appropriate, and with your permis-sion, your agent may send a mailing about your property to neighbors. Sometimes one of them has a friend or relative who always wanted to live in the same neighborhood.

Showings and open houses To prepare your home for viewing, make it as light, cheerful and serene as possible. Your realtor will probably find a tactful way to suggest that you not be present while the house is being shown to prospective buyers. This is done because your presence will inhibit their actions and conversations. They won’t feel free to open closets and cabinets, test out the plumbing, and discuss their observations objectively as they walk through. It goes without saying that your children and pets should not be on the premises either. If your realtor has scheduled an open house, you may want to notify the neighbors, and assure them that they’ll be welcome. They’ll appreciate the chance to look around in your house, and some-times they can turn up a buyer among their friends. In preparing for an open house, you should:

• Pull the drapes back • Light lamps • Simmer a few drops of vanilla

on the stove • Light your fireplace • Set the dining room or kitchen

table if you have particularly nice linen or china

• Put fresh towels in the bathroom • Leave the house so your realtor

is free to deal with prospective buyers in a professional manner.

When preparing your home, think about the techniques that are used to show builders’ model homes. You want your home to look like a model home.

How long has your house been on the market? Professional appraisers sum up their en-tire body of knowledge in three words -- “Buyers make value.” Your home is worth as much as some member of the buying public will come forth and pay for it. After it’s been on the market for months, you’ve been given a clear message that the prop-erty may not be worth what you’re asking for it. This is particularly true if there haven’t been many prospects coming to see it. What you do at that point depends on whether you really need to sell, and whether you’re working with a time limit. If you’re not really motivated to move soon, you can always wait - years if neces-sary - and hope inflation will catch up with the price you want. Buyers become suspicious of a house that’s been for sale for a long time.

If, however, you do need or want to sell, discuss with your realtor a schedule for reducing your price gradually until you find a level that attracts buyers. There’s no point in saying, “We simply can’t sell our house.” Homes sell --- if the price is right. If you’re buying another home Don’t spend a great deal of time worry-ing about what will happen when you’re selling one home and buying another. You’re not alone. Realtors, lawyers, title and escrow companies have had plenty of experience in arranging contracts and loans so that the two transactions work together smoothly. In today’s real estate market it’s best to list your present home for sale first. Selling and buying a home is a very emotional event and if you create a “race” by locating your replacement property



before you sell your current home, you may lose it to another buyer, who does not need to sell in order to buy. If you do find just the house you want, you can always put in a purchase offer contingent (depen-dent) on selling your present one. Howev-er, in a hot market you will have difficulty getting the house you want this way. Sometimes the seller will sign a contract agreeing to wait a certain period of time while you find a buyer for your house sometimes not. What would you do if you were presented with such a proposal, from a buyer who also has a house to sell? If you do find that you need to buy the next house before you’ve received the proceeds from the present one, lending institutions can sometimes make you a short-term “bridge” loan to tide you over between the two transactions. Make sure you fully understand the exposure and emotional investment before proceeding with this type of loan.

Seven Reasons You Should Get a Home InspectionBy Gary K. Holden You might not think a home inspection is that important, but it can be one of the best things you can do for your invest-ment. In addition to alerting you to any problems your home currently has, an inspection can also warn you about prob-lems you could encounter in the future. As a result, it could save you from making a very costly investment without consider-ing how much more money you’ll need to put into the house in the near future. If you’re considering buying a new home, here are seven reasons you should con-sider getting a home inspection to protect the biggest investment of your life. 1. Home inspectors know the laws.

When you hire a private home inspec-tor, you can be assured that they will check for anything that doesn’t meet the latest codes. Since they know about county, city and state regulations, they will alert you if anything needs to be fixed or replaced in order to bring it up to code. They’ll check the plumbing, electrical system, overall structure and everything else to ensure you’re making a good investment. 2. Home inspectors can see current and

future problems.

If there’s a crack in the home’s founda-

tion, a home inspector will be able to see that and warn you that it will be a costly problem in the future. They can also tell you if the hot water heater will need to be replaced any time soon or if there are any other problems on the horizon. 3. A home inspection provides

peace of mind.

Since the home inspector checks the wiring, the plumbing and everything else in the house, you can rest easy in your new home knowing that everything is working properly. You can be assured that there won’t be any faulty wiring problems causing a fire or a bad pipe causing your home to flood. As long as you keep with the proper home maintenance throughout the years, you can be sure everything will continue to perform properly. 4. A home inspector can find the critters.

To the untrained eye, things like ter-mites and ants aren’t noticeable. But with a home inspector’s experience and keen observation skills, they can tell if your potential house has a termite or insect problem. Insects aren’t a big problem, but termites could ruin the foundation or structure of the home in a short time. 5. Get problems fixed before you buy.

When you opt for a home inspection, you can either decide to purchase the house or not purchase it based on the findings. If the inspector finds some things wrong, you can also ask the sellers if they’d like to fix it if you agree to pur-chase it. That can save you thousand of dollars in repairs.

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The Successful Landlord This book is a must have for your landlord library. It is essen-tial in this state and covers the Massachu-setts housing laws and is now available to purchase at meetings.

Cost to members is $40.00. Available while supplies last. You may also pre-order the book at the sign-in table at our monthly meetings.


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6. The home inspector will look through the attic.

The inspector can tell a lot about the house from looking at the attic. The attic can show any previous fire damage or any possible problems with the roof that could happen in the near future. The attic will also show if there’s been any problems with rodents and if the house is properly insulated for maximum efficiency. 7. Sellers are sometimes unaware

of problems. Although sellers are typically required by state law to disclose any problems with the house, they can’t give you that information if they don’t know of any problems. With a home inspector, you can be sure of learning about any problems before making that important investment.

Ten Important Tips to Successful Real Estate InvestingBy Gary K. Holden Be a Real Estate Investor - 10 Important Secrets

When it comes to investing, everybody has certain goals and aspirations. However, we have found that there are certain guidelines every aspiring real estate investor needs to know:

1. Compare Property Values and Rents Financial statistics only go so far; the best measure of a property’s market value is often the sale prices of nearby proper-ties. The same holds true for area rents. A low price can often be justified by a reasonable rent; renters who can afford a high rent can afford to buy instead, so reasonably priced rent is a need. 2. Be Careful - Tax Laws May Change Don’t base your tax investment on cur-rent tax laws. The tax code is constantly changing, and a good investment is a good investment regardless of the tax code. The right property with the right financing is what you should look for as an investor. 3. Specialize In Something You Know Start in a market segment you know. Whether you focus on fixer-uppers, fore-closures, starter homes, low-down pay-ment properties, condominiums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of investment real estate properties. 4. Know The Costs Going In! Know the financial statements inside out. What are operating expenses?What are loan payments? Vacancy costs? Taxes? What does the cash flow statement look like? These are key issues that must be addressed before making a solid invest-ment. 5. Know Where Your Tenants

Are Coming From If the last rent increase was recent, your tenants may be considering a move. If ten-ants have a short-term lease, they may be living there simply to attract unsuspecting buyers. It is also important to collect the tenants’ security deposits at closing. 6. Assess The Tax Situation Taxes are an integral part of successful real estate investing, and they often make the difference between a positive cash flow and a negative one. Know the tax situation, and see how it can be manipu-lated to your advantage. It may be a good idea to consult a tax advisor.

7. Investigate Insurance Coverage If seller’s coverage is based on lower-than-current replacement value, your insurance cost may increase when you pay a higher purchase price. 8. Confirm Utility Costs Ask the local utilities to verify recent utility expenses, especially if any of these costs are included in your tenant’s rent. 9. Consult Your Accountant Taxation is a key element of successful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code. 10. Inspect! Inspect! Inspect! Make sure that you always perform a thorough inspection of the property before buying it. Never, ever buy any property without at least examining the site. In some cases, hiring professional inspec-tors to examine the structural mechanical system may be a sound investment.

How to Write a No-Smoking LeaseBy Angela Stringfellow

Allowing tenants to smoke inside a property can increase maintenance costs by discoloring walls and leaving a lingering smell. Many landlords choose to make their properties nonsmoking and implement a nonsmoking lease to impose liability on tenants who choose to violate the terms. Adding a nonsmoking clause or addendum to a lease can protect property managers from damages caused by smoking.


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Difficulty To Implement: Moderately Easy – Instructions

Step 1 State the unit or property is nonsmok-ing directly below the title of the lease or next to the name of the unit. Place the words “Nonsmoking Unit” in parentheses below the words “Lease Agreement” at the beginning of the document or add the words “Nonsmoking Unit” after a comma following the name or address of the unit or property.

Step 2 Create a section of your lease entitled “Nonsmoking Policy.” This section fits well below the “Maintenance and Condi-tion” section or “Pets” section.

Step 3 State the purpose of the nonsmoking policy. In most cases, this will consist of negative health effects, comfort of adja-cent property owners, additional mainte-nance of the property and increased risk of fire.

Step 4 Define smoking. Failure to describe the types of smoking prohibited could lead to legal loopholes. For example, if you mention cigarette smoke and your tenant smokes cigars, they might have grounds to argue against any claims filed by you for damages. State that carrying lighted cigars, cigarettes or other lighted products through the property also is prohibited.

Step 5 Outline the terms of the nonsmoking agreement. State the tenant and land-lord agree the property is designated as nonsmoking and the tenant agrees not to

smoke in the property, on the grounds or in public areas connected to the property. Include a statement the tenant will pro-hibit guests and visitors from smoking on the property and in the unit as well.

Step 6 Add a disclaimer. If your rental prop-erty is multiunit, your tenants still might be subject to secondhand smoke by other tenants in violation of the no-smoking policy. State you are not guaranteeing a totally smoke-free environment or making any claims the air quality in the unit is safer than that of any other rental property.

Step 7 Describe the consequences for violat-ing the nonsmoking policy. The ten-ant might forfeit all or a portion of his security deposit or be subject to eviction for violating the policy. Be specific about what steps will be taken if the tenant is found to have violated this policy.

Spring is Coming!The Perfect Time to Spruce Up Your Properties…

Curbside Collection of Leaf and Yard Waste

Fitchburg:

Collection of leaves, grass clippings and other easily raked materials. Use only paper yard waste bags or clearly marked barrels – NO plastic bags.

Pick up is on the usual trash collection day during the weeks of:

April 26 – May 28 June 7 – June 11 July 5 – July 9 August 2 – August 6 October 18 – November 27

Gardner:

Collection of leaves, grass and other easily raked materials. Use only paper yard waste bags, open barrels or boxes. Branches less than 2” in diameter, not to exceed 3’ long must be bundled and left by your yard waste for pickup.

Pick up is on the first full collection week (Tuesday – Friday) that does not contain a holiday in:

April May June

Laws Affecting Landlords By LandlordOnline.com

Apartment Association Laws Affecting Landlords Minimizing risks related to owning and operating rental properties requires that real estate investors understand a wide variety of laws. Brief discussions of a number of categories of laws follow.

Fair Housing Laws Title VIII of the Civil Rights Act of 1968 (Fair Housing Act), as amended in 1988, prohibits discrimination in the sale, rental, and financing of dwellings, and in other housing-related transactions, based on race, color, national origin, religion, sex, familial status (including children under the age of 18 living with parents of legal custodians, pregnant women, and people securing custody of children under the age of 18), and handicap (disability). Some states and local jurisdictions have more stringent laws. Understanding the intricacies of fair housing laws and obey-ing them is arguably the most important issue regarding management of rental housing.

Landlord-Tenant Statutes These are primarily state level laws, but in some locations landlords are also sub-ject to county and municipal ordinances.


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The landlord-tenant laws of most states follow the Uniform Landlord-Tenant Act (ULTA), but most states’ statutes vary regarding the details. Among the issues covered in most states’ landlord-tenant statutes are security deposit regulation and the eviction process.

Rent Control Laws Only a very small percentage of juris-dictions have any form of rent control and rent control laws vary significantly among those jurisdictions. Rent control laws do more than regulate the rent. They also limit the reasons for termination of a lease or eviction and provide for code in-spections. Thus, rent control affects how a landlord manages his property.

The Fair Credit Reporting Act (FCRA)The FCRA was enacted in 1970 to pro-mote accuracy, fairness, and the privacy of personal information assembled by Credit Reporting Agencies (CRAs) and provided to businesses, including credit card companies, banks, employers, land-lords, and others. The FCRA is a complex statute that has since been significantly altered by Congress and by the Courts. Comprehensive amendments were made in the Consumer Credit Reporting Reform Act of 1996 and most recently by the enactment of the Fair and Accurate Credit Transactions Act of 2003 (FACTA).

The Act’s primary protection requires that CRAs follow “reasonable proce-dures” to protect the confidentiality, accuracy, and relevance of credit infor-mation. To do so, the FCRA establishes a framework of Fair Information Practices for personal information that include rights of data quality (right to access and correct), data security, use limitations, requirements for data destruction, notice, user participation (consent), and account-ability. Some states have more stringent laws.

Habitability Laws The implied warranty of habitability is a legal doctrine in most states that requires landlords to offer and maintain leased premises in a safe and sanitary condition fit for human habitation for the duration of the lease.

Most states have adopted the implied warranty of habitability through statute or judicial law. One approach uses local building codes which have specific mini-mum requirements for essential services such as water, plumbing, and heat. The other approach uses common law defini-tions of habitable housing conditions. The source of the warranty controls the landlord’s responsibilities and tenant’s remedies.

Health & Safety Laws Health and safety are regulated in a number of ways including building codes, permitting, fire codes, contractor licensing laws, and specific laws related to issues such as lead-based paint laws or mold.

Lead-Based Paint Laws The federal Residential Lead-Based Paint Hazard Reduction Act of 1992 requires the disclosure of known infor-mation on lead-based paint and lead-based paint hazards before the sale or lease of most housing built before 1978. Many states have their own lead hazard reduction laws which oftentimes are more stringent than the federal law.When renting units built before 1978 landlords must provide the required pamphlet and required disclosure form to prospective tenants prior to lease agree-ment signing.

Fair Debt Collections Practices Act (FDCPA) Title VIII Fair Debt Collection Practices Act (FDCPA) is a federal law that was enacted in 1977 to amend the Consumer Credit Protection Act to prohibit abu-sive practices by debt collectors and is enforced by the Federal Trade Commis-sion (FTC). Alarmed by the increased number of incidents of abusive collection practices, Congress created guidelines for the conduct of business by debt collec-tors, defined the rights of consumers in dealing with debt collectors, and imposed penalties for violations of the Act. The Act provides protections and remedies for debtors while allowing debt collection agencies to collect legitimate debts. Some states have more stringent laws.

Zoning Laws Zoning laws regulate what can be built in a particular location and can even pro-hibit improvement of an existing property or of its reconstruction if significantly damaged. Zoning is of particular impor-tance for a potential rehab candidate and may be even the most important factor because older properties are often rehab candidates and older properties poten-tially have zoning issues. Zoning laws can both determine what rehab you can do and what rehab you must do.

Building Codes & Permitting Improvements or even repairs that are not performed in accordance with building codes or that are done without a required building permit can become serious problems in a number of ways. Potential problems include increased li-ability if someone is injured due to unsafe conditions and issues when disclosures of the deficiencies are required at time of sale. Building codes can both determine what rehab you can do and what rehab you must do.

Tasks that might require a permit can vary significantly among jurisdictions. In some jurisdictions one can construct an entire house without worrying about building codes and without a single permit. In others, a permit is required to replace a leaking water heater or even to add an electrical outlet.

Contractor Licensing Laws Most states license building contractors. Many states set maximum dollar limits (e.g., $250 in CA and $1500 in AZ) and limit the types of work for which a license is not required. Some states even limit what an owner can do on his/her own property, particularly on rentals.Breaking these laws can increase the own-er’s liability if someone is injured due to work having been done by an unlicensed worker when that work is legally required to be performed by a licensed contractor.

General Business Laws All types of businesses are subject to a variety of general business laws in addi-tion to those laws specific to their busi-ness. These laws include:


http://www.realestateinvestor.com/groups/69/Start your own FREE NWCLA Blog discussion 11

Ginny’s FOOD DRIVE Bring your canned goods or non-perishable food items to the next NWCLA meeting Get involved and make a difference to what Ginny has been doing for years for the local com-munity. This is also another way to get the word out about how our landlord association is helping our community By participating in the food drive at the monthly meeting, you also get a free raffle ticket for our monthly member’s incentive program raffle for door prizes.

Invite NEW MEMBERS to Join Do you know someone thinking of becoming a landlord or property manager? If so, invite them to become an NWCLA member. It is the mission of the NWCLA to educate, inspire and assist landlords in their business. The member-ship of the NWCLA is filled with knowledgeable, experienced and helpful people. Meetings are held the second Thursday of each month at 7:00 PM. Contact Brian Lucier via e-mail at [email protected] or call (978) 448-3873 for more info.

NWCLA Bucks Up for Grabs For each new member that you refer to NWCLA , You will receive $10 (ten) dol-lars in NWCLA bucks. You may redeem these dollars at our monthly meetings to buy items that will be available for sale or… you may save them up towards your yearly membership fee.

To contribute stories or articles for the newsletter or the web site contact Brian Lucier [email protected]

1. Professional licensing – Usually state level law that applies to those who receive compensation for representing others in the sale, purchase, manage-ment, and maintenance or improve-ment of property.

2. Business licensing – Usually local level law that applies to income property owners in some jurisdictions, but not in all.

Tax Laws Real estate in general is taxed in a variety of ways. The most common ways of direct taxation (as opposed to indirect or hidden) include property tax, rent tax, income tax, and estate tax.

Short Sale? Foreclosure? Consult Your Accountant FIRST! By Tom Smith

Investors face a different tax landscape than your average, underwater, homeowner. While it is politically popular to support owner occupants (between tax credits and no tax on debt forgiveness), investors are left to fend for themselves. As such, investors must be much more conscious of the conse-quences of short sales and foreclosures.

It doesn’t matter if you are a reluctant

landlord or intentional investor, you will most likely be treated the same – as a highly sophisticated, high net-worth individual, with a ready team of attorneys and accoun-tants to help you navigate the tax code mine fields. However, most real estate investors for single-family residential property don’t have LA Law working on their side. So, here are a few thoughts to ponder.

Debt “forgiveness” is simply the bank’s way of saying that they are writing off your loan as a loss (short sale or foreclosure) and going to claim that to their advantage for tax purposes. You will receive a 1099-C (Cancellation of Debt) with a declaration of the difference between what you owed and what the bank actually collected. This debt cancellation is essentially considered as income to you and normally taxed as such.

You need to be concerned with both federal tax laws and your state tax laws. Naturally, tax laws, especially with respect to debt “forgiveness”, vary by state and the states do not necessarily match federal.

Under the Emergency Economic Stabiliza-tion Act, for federal tax purposes, an owner occupant (i.e., of your principal residence) can exclude the cancelled debt from their taxable income (to certain limits) providing it occurs prior to the end of 2012. In states such as California, you are still liable for state income taxes.

However, if you are dealing with income property, then these benefits do not ap-ply and now you have not only your state income taxes, but also federal income taxes to consider.

As an example, a client came in the other day for consulting. Her real estate agent was going to help her get out from under an ex-cess $500 / month loss on one of several in-vestment properties. The client is looking at a short sale wherein the property is $310,000 upside-down. Although technically it is not the agent’s responsibility, the agent didn’t think she needed to worry about the tax consequences – she would have all year to figure it out.

He seemed to think it inconsequential. But instead it is a rather substantial amount. Taken in isolation and ignoring all addi-tional expenses of selling, debt cancellation of $310,000 will cost her $26,525 in California taxes and $87,443 in federal taxes, for a total of $113,968 or 36.76% of the cancelled debt. That tax obligation seems rather onerous, es-pecially considering the client cannot afford the $500 / mo. In fact, it she could pay the taxes at a $500/mo rate, it is equivalent to a 19-year mortgage.

The only possible out is not a pretty pic-ture. One IRS article states, “Normally, you are not required to include forgiven debts in income to the extent that you are insolvent. You are insolvent when your total liabilities exceed your total assets.”

As an investor, be sure you are fully aware of the tax consequences for your properties, and / or be sure you consult your accoun-tant, first.

Nothing in this post should be considered tax advice. Consult your tax professional for your situation.

May 2008Landlords Helping Landlords

NWCLAP.O. Box 276Fitchburg, MA 01420

Association of the year for 2003


NORTHERN WORCESTER COUNTY LANDLORD ASSOCIATION

Schmidt’s Smorgasbord NWCLA Monthly Meeting Menu

Mar 2010 Clam Chowder, cold cut sandwich-es, chips, salad and desert and DD coffee and an assortment teas

If you have menu suggestions or ideas, kindly talk Laura at the food table! We welcome your com-ments and suggestions.

Special thanks go out to all board members who par-ticipated in the Fitchburg Home & Garden Show last Saturday. We spoke with over 30+ landlord who did not even know we existed. If you see some new faces at the NWCLA meetings, be sure to say “Hello”!

NWCLA MEETING NOTICE

February’s meeting will feature

Constable Raymond Gonzales& Mediation Services of Northern

Worcester CountyThurs., March 11 th, 2010

7 PM – 9 PM ALL Members are welcome to

attend the meeting atThe Monty Tech Cafeteria located in Fitchburg, MA

Documents

“Landlords Helping Landlords” NWCLA · 2011-04-25 · “Landlords Helping Landlords ... discuss your secret tips and tricks for marketing your units, pre-screening applicants,