“Landlords Helping Landlords” NWCLA · benefits of membership listed above for the extra added value. Plus the combined experience of over . 100 landlords. in our association,

NWCLANorthern Worcester County Landlord Association

“Landlords Helping Landlords”“Landlords Helping Landlords”

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Volume 61 December 2009Landlords Helping Landlords

NWCLA President’s December LetterDear NWCLA Membership,

Tis the season to be thankful and jolly!

Looking back on some of the events of 2009 there have been lots of great things happening in our

landlord association. I first want to thank all of our new members who have joined this year who have added so much of their wealth of knowledge to our association by becoming NWCLA members. I also want to thank our seasoned board members who keep coming up with new innovations to make our membership experience even better every year. And I also want to thank all of our new board members who have taken full stride into their volunteer posts and as a result we now have several new programs to offer our membership.

There is now a new feature offered in the newsletter and at the monthly meetings called Sponsor Spotlight. Select vendors in the Sponsor Spotlight now donate up to (and sometimes over) $100 dollars off of services to NWCLA members in a monthly raffle, but you need to attend the meetings to win. That alone is worth more than your annual dues if you should choose to decide to come to just one meeting, enter the raffle, and walk out as a winner. We also ask that you visit our sponsor’s page on the web site and support the vendors that are loyal to supporting our association. You can also visit the media table display at our monthly meetings to pick up our sponsors flyers, brochures, and business cards too.

We also have a more robust web site this year with more information about the monthly topics for discussion complete with contact info for any of our past speakers should you need their counsel or services. There is now an improved members section where all of the community links have been updated. You can also download all of the previous NWCLA newsletters dating back to 2003. This was implemented this year as part of our ongoing plan to go green to save resources and cut our bottom line expenses moving forward.

We have also added a new Legislation Page to the web site where we are now working more closely with Massachusetts Rental Housing Association to keep you updated on bills on the house floor that affect all of us in the rental housing business. There are email blasts that are sent out to members to notify members of bill hearings where it is critical that our voices are heard and our numbers be counted as taxpayers and voters in the state.

We have also added within the past few months a new automated calling service to notify members of upcoming meeting topics and other NWCLA events and activities to keep you in the front lines of taking action and

being better equipped as landlords. The phone message is delivered on the Sunday preceding the membership meeting and stands as a friendly reminder for the following Thursday meeting. We always want to see our members at the meetings and hear what you have to say in our open forum discussions. Your comments and questions help all of us.

And or course, we can’t forget the food! If you did the math, you would figure that just for the cost of membership alone, you are getting 10 meals plus drinks, desserts, snacks and coffee, not to mention all of the other benefits of membership listed above for the extra added value. Plus the combined experience of over 100 landlords in our association, willing to help one another, that total up to over 200+ years of experience and know how in the rental business. No other landlord association in the state gives you more than what we offer our members at the NWCLA.

And it gets even better. At the Annual 2009 NWCLA Holiday Gala Event on December 10th you have the opportunity to save even more money by prepaying your subscription dues to the NWCLA for 2010. The annual cost of membership is $80.00 per year, but if you pay the annual dues before the end of December you get an added $10.00 off which is a 12% savings. We have worked harder and smarter this year to bring you more education, more information on the web site, better membership services, meeting topics that you want to hear about – and have done it all without having to raise the costs of membership even though our operation costs have risen.

I must truly thank each of our members and all of our board members for making it a great year again in 2009. Looking forward to 2010 to be even better. Happy Holidays and see you at the party December 10th! Warmest Regards To All, Brian LucierNWCLA President 2009 – [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 2009 NWCLA Holiday Party on Dec 10th! 5 NWCLA Testimonial: Jeff Pace of Economic Enviro Techs, Inc. 5 Web Site: http://www.mlri.org/publications 5 FICO Reveals How Common Credit Mistakes Can Affect Your Scores 6 - 8 30 Day Demand Letter (M.G.L. c. 93A) 7 - 11 Ten Important Tips to Successful Real Estate Investing 8 - 9 3 Cost Effective Ways for Landlords to Communicate with Tenants 9 Real Estate Capital Gains Tax Laws 10 Schmidt’s Smorgasbord 12


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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

www.realestateinvestor.com

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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 CommitteeTheresa [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]

Legislation DirectorJamie Merrill 978-407-7174 [email protected]

Board MemberMatthew Moore 978-345-7971 [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.

24-Hour Heating & Plumbing Emergency ServiceFREE Estimates • Residential & Commercial Work

Senior, Active Military AND Volume $$DISCOUNTS$$Pre-Pay & Budget Plans • Online Bill Payments • Energy Saving Products

A Local Family Owned & Operated Business

Heating Oil • Diesel • Winter Blends

Full BURNER ServiceFull PLUMBING ServiceFull AIR CONDITIONING Service

“Why Make More Than ONE Call?. . .When COUNTRY FUEL Does it All!”

212 West St., Gardner, MA978-632-1100 • 800-995-6395

MA LIC #10588


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You have the right to choose the LOWEST COST Eviction Mover / Public Warehouser

See our web site at:www.evictionmover.com for information and licensing or call

1-617-966-6684

DON’T GET RIPPED OFF!

NWCLA MEMBER DISCOUNTS

Aubuchon HardwareGroup # 1000501 – Membership card required20% off Glidden paint 10% off merchandise

Grand Rental StationCash Acct. # *195 – Membership card and

Photo ID required 10% off

Maki’s Building Center Cash Acct. # *195 – Membership card and

Photo ID required 2% - 10% off

Sabourin HardwareMembership card and Photo ID required

Advanced Electrical Contracting 10% discount for any job above $125 for members

Quality Drywall 10% OFF to NWCLA members

Joe Goodbrake Electrical Services 10% discount for any job for members

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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 2009 - 2010 Dec 10, 2009 NWCLA Holiday Gala Party Event

Make sure to bring unwrapped toys and non-perishable food items

Jan 14, 2009 MOC Will be coming in to discuss several of the different programs that we can become involved in as landlords

Feb 11, 2009 NWCLA Web Site Demo. Q & A for New Password and Web Site Features


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Useful Web Site of the Month Submitted By David Fleckner

http://www.mlri.org/publications“Massachusetts Law Reform Institute” (MLRI) is a non-profit legal services organization committed to promoting social and economic justice through advocacy, education and legal action.

Our strategies advance systemic reforms that help hundreds of thousands of low-income people attain basic human needs and protect their rights with justice and dignity. MLRI provides nu-merous materials on laws and programs affecting low-income individuals and families.

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NWCLA Members – Did You Know?... That Legislation Director Jamie Merrill 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/

Don’t Forget About Our Food Pantry Drive & Toys For Children at the 2009 NWCLA Holiday Party on Dec 10th! Not only can you feel good about supporting your local community with gifts of food for Ginny’s Food Pantry, and the joy that you will bring to children this year for the holidays by donating toys at the party – but you can also be a BIG winner yourself by receiving raffles tickets for your “gift-giving” and WIN some of our HUGE door prizes!

Every year at our NWCLA Holiday Gala Event we pull out all of the stops to get ALL of our landlords in the Holiday Spirit. Throughout the year all of you support Ginny’s Food Pantry by bringing food gifts to the monthly meetings which we donate to the food pantry. We support Ginny, and reward you with raffles tickets for your donations. But this year, with things being tough all over for everyone, our charitable giving means even so much more to our community. I know you will do your best to share from your heart and provide for those less fortunate as you always do, and I am always excited like a child to see your generosity in giving to the families in need within our community. We are especially happy this year to have polled the member-ship at the November NWCLA meeting and had you pick our charity this year for the Toy Drive For Children. I am honored by your selection this year to recognize our Enlisted Military Families in service for our country. This year, we are donating all of our toys for the children of enlisted families to the Army Reserve Station located on West Broadway in Gardner Massa-chusetts. Thank you NWCLA members!

You will receive a raffle ticket for each unwrapped toy for a boy or girl you bring. You also will receive extra raffle tickets for food donations you bring for Ginny’s Food Pantry. Happy Holidays & New Years To All!!

NWCLA Members Testimonial for Our Advertisers Jeff Pace of Economic Enviro Techs, Inc.Testimonial Submitted By Brian Lucier

“Economic Enviro Tech, Inc did asbestos remediation at one of our multi-family buildings earlier this year. This would have been a routine job for EETI, but this project came with an unexpected twist. We had to evict a tenant after issuing over a half dozen 14-Day Notices for Non-Payment of rent within one year. We finally went to court after exhausting all of the “second chances,” then tenant became hostile and presented a list of claims for deficiencies at their unit including the base-ment which they had converted into a “weight room & storage facility” for his “construction business”. Storing his ladders in the rafters had actually caused some of the damages to loosen the asbestos from the pipes. After completing the rest of the punch list from the court order, we still had to remove the asbestos from the steam pipes in the cellar. Jeff immediately understood the complexity of the situation whereas the tenant could have easily had access to the pipes during remediation and made the matter worse. Jeff took action to plan a strategy not only to remove the asbestos safely, but to do so in such a way limiting any further liability and claims from the tenant. Not only did EETI do a fantastic job cleaning up the problem, but they protected our interests as landlords during the process. By the way, I have NEVER seen steam pipes as clean as when they had finished the project! Great job Economic Eviro Techs, you guys totally rock!”

Sincerely,Brian Lucier – Happy Investing!


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FICO Reveals How Common Credit Mistakes Can Affect Your ScoresBy Jeremy M. Simon

Disclosed for the 1st time, ‘damage points’ taken off for late payments

Borrowers already knew that late payments hurt their credit scores, but for the first time, they now know the extent of that damage.

Did you max out your credit card? Expect a credit score drop of 10 to 45 points. Declare bankruptcy? Your score will plummet by up to 240 points, and your odds of getting credit will nosedive with it.

The “damage points” data, un-veiled recently by FICO, are part of the most revealing glimpse into the firm’s once-secret -- and still mys-terious -- credit scoring model. The new information discloses how many points borrowers’ scores will drop when they make the most-common mistakes.

‘Help People Understand’ Scores

“I hope this information will help people to better understand FICO scores and the value for them of avoiding credit missteps. It illustrates key points such as the higher your score, the farther it

can fall if you stumble,” says FICO spokesman Craig Watts. “Getting and maintaining a good score isn’t compli-cated. We all just need to pay our bills on time, keep credit card balances low and take on new debt sparingly.“

The greater transparency about FICO scores is important because American consumers’ ability to get credit rises and falls with the number. FICO, the company that pioneered credit scoring, assigns consumers a three-digit number from 300 to 850, depending on how well they handle credit. Other companies also offer scores, but FICO’s version is the most widely used by lenders in determining whether a consumer can borrow, and at what rate.

FICO’s credit score has been around for decades, but only within the past decade have consumers gradually gained access to theirs. Though the raw numbers can be pur-chased, how they’re figured remains a FICO secret, as closely guarded as the formula for Coca-Cola. Until Thursday, FICO revealed only broad categories of factors influencing the score, but not the number of points at stake for consumers who fail to pay as agreed. The “damage points” information, revealed in a report by personal finance writer Liz Pul-liam Weston, will be made available through its myFICO.com Web site starting this weekend.

FICO’s information shows that bankruptcy does the most serious damage to a credit score (up to 240 points), followed by foreclosure (up to 160 points) while maxing out a credit card has the least numerical impact (as few as 10 points).

Those with good or excellent credit – so-called prime borrowers – put more points at risk with each mis-take. For example, someone with an average credit score of 680 who pays a bill 30 days late will see a drop of 60 to 80 points. But for someone with an excellent credit score – 780 – that same delinquency can send a FICO score tumbling by 90 to 100 points.

The Cost in Dollars

In order to show just how badly a drop in your FICO score can hurt your wallet, we spoke with mem-bers of the home mortgage, auto and credit card lending industries. We presented hypothetical scenarios of a consumer who decided to apply for a $200,000, 30-year mortgage; a $20,000, five-year auto loan and a credit card. While all the industry insiders stressed that a FICO score isn’t the only factor in determin-ing who gets credit and at what cost (other factors they cited include the borrower ’s debt-to-income ratio and whether they have already estab-lished a relationship with the lender), they were able to provide an idea of what a borrower who had the follow-ing credit scores could expect.

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Story continued on Page 11

30 Day Demand Letter (M.G.L. c. 93A) Massachusetts Consumer Protection ActArticle from http://www.mass.gov/

If you are unable to resolve a complaint with a merchant informally, then you may decide to take legal action. If your problem involves an unfair or deceptive practice, which is a violation of the Massachusetts Consumer Protection Act, the law requires you to send the merchant a letter 30 days before filing a claim in court. (M.G.L. c. 93A). The letter must outline your complaint, the harm you suffered, and how you want the problem resolved. This is called a 30 Day Demand Letter.

The merchant must make a good faith response within 30 days, or it could subject him/her to triple damages and attorney’s fees. The 30 Day Demand Letter serves to encourage the merchant to negotiate and settle the claims out of court. It also establishes the amount of monetary damages you can recover if the charges are proven in court.

Taking the First Step

You must send a 30 Day-Demand Letter whether your action will be brought in Superior Court, District Court, Small Claims Court or Housing Court. You do not need to send this letter if the merchant does not maintain a place

of business or keep assets within Massachusetts. You also do not need to send this letter if you assert the claim in a counterclaim or cross-claim response to a merchant taking legal action against you.

Information that Must be Included in the 30-Day Demand Letter

To meet your legal obligations, include the following information in your 30 Day Demand Letter:

1. Your full name and address 2. The description of the unfair or

deceptive act or practice including all the unfair or deceptive practices claimed, the dates involved in the transaction, and any other important facts. If you know the regulation number of the regulation violated, you may wish to include it. However, you are not limited to written regulations or laws.

3. Clearly explain the injury you suffered as a result of the unlawful act such as:

* Failure to return a security deposit which results in the loss of money.

* Sale of a defective household appliance results in the ownership of a useless and worthless product.

* Failure of the TV repairman to repair a broken set results in payment for services improperly performed.

* Purchase of goods through “bait and switch” tactics results

in owning unwanted goods which are more expensive than originally planned.

Unfair and deceptive practices under Chapter 93A are defined in regulations available from the State House Bookstore (617/727-2834).

4. The demanded relief including the amount of money you are demanding to recover.

Although it is not required by law, the 30-Day Demand Letter should be sent by certified mail, return-receipt requested, so that you will have proof of delivery. Send the letter by regular mail also, and keep a copy for your files.

Written Offer of Settlement

Once you mail the 30 Day Demand Letter, the merchant has thirty days to respond in writing. You then must decide to either reject or accept the merchant’s offer. If you reject an offer which the Court later finds to be reasonable, then the Court may limit the amount of money you can collect. The Court may limit your recovery to the amount the merchant originally offered to you.

The Court may find in your favor because either the merchant never sent a settlement offer or sent you an unreasonable offer. You then may be able to recover you actual monetary damages, or $25, whichever is greater.


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For a Consumer Who Started With a FICO Score of 780:

• Following a 30-day late pay-ment, the consumer ’s car loan rate would jump nearly 3 percent, costing the borrower $26 more each month.

• Following a debt settlement, the consumer would pay as much as $109 more each month on a home mortgage.

For a Consumer Who Started With a FICO Score of 680:

• Following a 30-day late payment, the consumer would pay $41 more each month for a car loan.

• Following a 30-day late payment, the consumer would pay as much as $95 more each month on a home mortgage.

• Following a debt settlement, the consumer would no longer qualify for a credit card.

Some Surprised By the Details

Consumer advocates say it’s important for borrowers to know what can damage their FICO scores. “If they know it in advance, they won’t go out and step in a pile of doo-doo. They won’t go out and do some of these things,” says Linda Sherry, director of national priorities with advocacy group Consumer Action. Even ex-perts found some surprises in today’s news. “FICO imposes bigger hits than I would have thought for being maxed out or 30-days late just once, reinforcing my view that it is a cruder, blunter instru-ment than they like to claim. Neverthe-less, it is a powerful, widely used crude blunt instrument,” says Ed Mierzwins-ki, consumer program director for the U.S. PIRG consumer advocacy group.

Of course, knowing the impact on a FICO score and actually avoid-ing these mistakes are two separate things: Amid rising unemployment and other daily financial struggles,

paying bills and staying on-track financially becomes a much bigger challenge for many borrowers.

“Some of these things are out of their control,” Sherry says of consumers.

Additionally, as Weston points out, consumers with identical FICO scores can have different credit histories. That means the same slip-up – such as maxing out a credit card – could have different impacts on consum-ers who have the same FICO score. In the examples they provided, FICO assumed each borrower had several active major credit cards, a mortgage, car loan and student loans.

Sherry acknowledges the benefit of putting a number to a financial blun-der. “I don’t think we necessarily knew the numbers that a bankruptcy could apply to a credit score,” Sherry says.

Helping You Make Better Decisions

While knowing the numbers may not keep you from filing for bank-ruptcy if given no other choice, the information may help you make the best decision when faced with a bad situation.

FICO scores – and the access to credit they provide – are a valu-able asset to consumers and sup-ply a safety net when incomes are stretched. It’s an asset that needs to be protected, Sherry says, even if job loss or catastrophic illness makes bill paying problematic.

“In that period of time, paying down debt is the last thing on your mind. Pay-ing the minimum payment may also be the last thing on your mind, but you’ll be doing yourself a big favor if you do,” Sherry says.

Ten Important Tips to Successful

Real Estate InvestingBy Gary K. Holden

When it comes to investing, every-body 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 properties. 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 current tax laws. The tax code is con-stantly changing, and a good invest-ment 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, foreclosures, starter homes, low-down payment properties, condomin-iums, or small apartment buildings, you’ll benefit from experience by specializing in one aspect of invest-ment real estate properties.

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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 investment.

5. Know Where Your Tenants Are Coming From

If the last rent increase was recent, your tenants may be considering a move. If tenants have a short-term lease, they may be living there sim-ply to attract unsuspecting buyers. It is also important to collect the ten-ants’ security deposits at closing.

6. Assess The Tax Situation Taxes are an integral part of success-ful 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 manipulated 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 ten-ant’s rent. 9. Consult Your Accountant Taxation is a key element of success-ful real estate investing, so be sure to find an accountant who is well-versed with the constantly evolving tax code. 10. Inspect Everything! 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 pro-fessional inspectors to examine the structural mechanical system may be a sound investment.

3 Cost Effective Ways for Landlords to Communicate with Tenants Posted by: ratracegrad

For years property managers used written correspondence as a method to communi-cate with their tenants. This method was expensive as it involved costs to produce the correspondence and make copies and then was labor intensive as the property management staff had to hand deliver it

to every apartment. If the communication was mailed, the costs greatly increased due to the cost of the stamp and envelope.

Forward thinking property management companies are taking advantage of tech-nology to reduce costs and improve their communication with tenants. Here are three cost effective ways to communicate with tenants.

Text MessagingWith the abundance of cell phones today almost all tenants have a cell phone and are familiar with text messaging. Proper-ty management companies and landlords can keep tenants up to date in real time using electronic communication such as text messaging. Sending a text message is free and can be sent instantly to 1 or 1,000 tenants. The only disadvantage of text messaging is messages are limited to 160 characters.

EmailAnother cost effective way to communi-cate with tenants is sending emails. There is no cost to send emails. Unlike text mes-saging, there is no limit in the size of the email that is sent. Emails can be used to

send newsletters with information about upcoming events and other information.

WebsiteUpdating a website can incur costs as it requires someone with web knowledge to update the site. This can also be labor intensive. Websites require the tenants to manually visit the site to see the updated information. For this reason a website is be suited as a marketing tool.

If you are sure which method to utilize the consider asking your tenants. When you accept new tenants in your apartment building, make sure to collect their email address and cell phone numbers so you can communicate with them.

Property management companies can use a combination of these methods to com-municate with tenants. Each method has its own pros and cons. Text messaging can provide immediate communication to tenants and can be used in emergencies. Emails allow you to send more detailed communication. Utilizing technology can be a way to greatly reduce costs in managing a property.


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The Successful Landlord Is a must have for your landlord library and is now available to purchase at meetings. Cost to members is $40.00.

Real Estate Capital Gains Tax Laws

As a Realtor working in Metrowest Massachu-setts for the last twenty three years, it surprises me how often people do not realize the current tax laws regarding capital gains when selling their home.

The new capital gains tax law actually went into effect in 1997 and is known as the Tax-payer Relief Act of 1997.

The current capital gains tax law when selling your personal residence allows for an exclu-sion of up to $250,000 in profit if you are single and $500,000 if married. In order to be eligible you must have lived in your home for two of the last five years. Again it must be your personal residence and can not be an invest-ment property.

You can use this capital gains exclusion as many times as you like as long as it meets the above criteria. As an example lets say you were fortunate to purchase your home for $400,000 and it is now worth $700,000. Your $300,000 in profit or gain would not be taxed.

So what happens if you are going to make more than $500,000 in profit? Under the cur-rent tax plan you would be taxed at a 20% capital gains tax rate on the amount over the $500,000 threshold.

As far as living in the home for two out of the last five years there are no hard and fast rules regarding this. You could have lived in the home the 1st year, rented it the next three, and lived in it again in the last year and you would be fine as far as the exclusion goes.

There is a new law that just went into effect as of January 1st 2009 that closes a tax loop hole in the Capital Gains law. The recently signed 2008 Housing and Economic Recovery act has placed new restrictions on wealthy home own-ers who own two or more homes and plan to hop from one home to another to avoid paying capital gains.

Some home owners have avoided paying the capital gains tax by selling their primary home, claiming a full tax exclusion and then moving to a second or third home that they have owned for some time, making it their primary residence and then turning around and selling the home paying little or no capital gains tax.

The new modification says that the gain may not be excluded for periods of “non qualified use”, basically the period of time when the home was not used as the taxpayer’s primary residence.

While being married does offer the benefit of a larger tax exclusion, couples also have some other considerations when it comes to determining whether the home sale is tax-free or not.

Under the law, either spouse can meet the ownership test. For example, the IRS says it’s OK if you owned the home for the last two years, you get married and you decide you want to add your spouse to the title. In this case, lets say the marriage is a year old.

Since one of you owned the residence for the required time, as joint filers you have no prob-lem meeting the ownership test even though your spouse wasn’t an official owner for that long.

Both parties however must pass the use test. Each of the spouses must live in the residence for two years. One thing to note is that the shared use doesn’t have to be while you file jointly. If you and your spouse shared the home for one and a half years before getting married and then six months as newlyweds, the IRS will allow you to claim the exemption.

But if your spouse did not move in until the wedding day, you’re out of tax-exclusion luck.

One other thing to keep in mind under this couple requirement is that if either spouse sold a home and used the exclusion within two years of the sale of any jointly-owned property, the couple can not claim the tax exclusion. This means if your new spouse sold their home a few months before the wedding, then you will have to wait two years after that property’s sale date before you can sell your shared marital residence tax-free.

Even if you don’t meet all the home sale exclusion tests there are certain circumstances where you still may be eligible for a tax break. When you need to sell your home because a change in health or a long distance relocation, you may be able to get a pro-rated tax deduc-tion. If you pass the requirements of this kind of case, you would calculate the fractional time your were in the home. For example if you were in the home for half the time and were relocated to another state you would be able to claim 12 out of the 24 months of exclusion or half the amount of the exclusion ($125,000).

If you are in the armed services there is also a special provision regarding the capital gains law as well. A law instituted in 2003 now exempts military personnel from the two-year use requirement for up to 10 years, letting you qualify for the full exclusion whenever you must move to fulfill your service commit-ments.

Don’t forget also that home improvements can be added to your tax basis reducing your capi-tal gains. For example if you add an addition to your home the cost of this improvement can be used to off set your gain.

The information contained here in is believed to be accurate, however every person’s indi-vidual tax situation may be different, therefore before acting on the information contained herein, the reader is urged to consult a quali-fied tax accountant or attorney.

http://www.nwcla.comMembers are given a password to access the member’s only section. We welcome feedback and hope you find it informative.



The Court may also find that the merchant’s violation of the Consumer Protection Act was “willful or knowing,” or that the merchant’s refusal to settle with you was made in bad faith. In either case, you may receive between two and three times the amount of your actual damages, or $25, whichever is greater.

If the Court finds in your favor, you are entitled to reasonable attorney’s fees and costs. However, the Court may not award you attorney’s fees if you initially rejected a reasonable settlement offer.

Asserting Your Rights

If you and the merchant are unable to reach an agreement on your own, you have several options.

Mediation: This allows both parties to reach a mutually acceptable solution with the help of a facilitator. Mediation is voluntary, requiring both parties’ consent. You may apply for mediation through your local consumer group, which is affiliated with the Attorney General’s Office.

Court: You may also pursue your claim through the court system. For claims under $2,000, Small Claims Court is the least costly option. Consumer Affairs publishes a Small Claims Court brochure available upon request. Larger claims may be more suitable to District or Superior Court. You should seek legal advice for all claims.

Story continued from Page 7

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]

Sample 30 Day Demand Letter

Your nameYour address

Your telephone number

DateName of MerchantMerchant’s address

Dear Merchant:

Under the provisions of Massachusetts General Laws, Chapter 93A, Section 9, I hereby make written demand for relief as outlined in that statute.

On or about {date}, the following unfair or deceptive act occurred:

{EXPLAIN WHAT HAPPENED}

This unfair or deceptive act or practice is, in my opinion, declared unlawful by Section 2 of Chapter 93A, (you may want to give regulation number, if applicable) which reads as follows:

{Quote text or section. Remember: You are not required to quote written regulations or laws to support the assertion that the merchant’s conduct was unfair or deceptive; it is, however, desirable. You will want to include all the regulations which you believe were violated.}

As a result of this unfair or deceptive act or practice, I suffered injury or loss of money as follows:

{Indicate Injury or Money or Property Loss}

Therefore, I hereby demand the following relief:

{Indicate Relief, or Payment for Damages, Which is Sought}

Chapter 93A gives you the opportunity to make a good-faith response to this letter within thirty (30) days. Your failure to do so-could subject you to triple damages, attorney’s fees and costs if I decide to institute legal action.

Sincerely,

Your Name

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

Dec 2009 NWCLA Holiday Party - Dinner Buffet prepared by NWCLA Board of Directors for the members. You will receive a raffle ticket for each unwrapped toy for a boy or girl you bring. You also will receive extra raffle tickets for food donations you bring for Ginny’s Food Pantry. See You There!

Laura Schmidt is our Food Director as well as Ad-vertising Director and she want to hear from you. If you have menu suggestions or ideas, kindly talk Laura at the food table! We welcome your comments.

NWCLA MEETING NOTICE

December’s meeting will feature our

2009 NWCLA MembershipHoliday Gala EventThurs., December 10 th, 2009

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 · benefits of membership listed above for the extra added value. Plus the combined experience of over . 100 landlords. in our association,