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Volume 36 Issue 2 • March 2015 • Connecting the Rental Community Right Next Door and Across the State
WAA/WRHLC Legislative Day is
Wednesday, March 18!See page 6
for the day’s agenda & all the details.
Check out the “new and improved” WAA Conference, now the Landlord Education Day & Trade Show! See the 2015 schedule for Saturday, October 10.
Register by May 31 to save $$!on pages 12-13
4 Tips to Create a Crisis Management Plan
on page 5Obamacare & Your 2014
Tax Returnon page 10
Avoid Fair Housing Trouble with a Tenant Selection Plan
on page 19
2015 Roster of Events (for a full calendar of events, visit our website at www.waalonline.org)
BOARD MEETINGS
Saturday, April 18, 2015 ● 10:00 a.m. — 4:00 p.m.
Leadership & Committee Work Day! Chula Vista Resort, 2501 River Rd, WI Dells ● Room I
Lunch (optional) will be a sandwich and soup buffet served at noon in room E. Cost is $15 and includes coffee, tea, or milk.
Please RSVP to Kristy at the WAA office no later than Monday, April 13th.
March 2015 ●
2015 WAA/WRHLC Legislative Day
Wednesday, March 18
WAA/WRHLC
with the Apartment Association of Southeastern WI (AASEW)
want YOU to join us at the State Capitol to band together!
Registration begins at 10 a.m.
See page 6 for the full agenda and details of the day.
Cost is only $25/person & includes all materials, lunch, & reception.
Please register by sending your name & local
with a check made payable to WAA for $25 no later than March 13th.
Cut out & Save!
2015 WAA DATES
Wednesday, March 18 WAA Legislative Day
State Capitol, Madison
Saturday, April 18 Leadership/Committee
Work Day Chula Vista Resort, WI Dells
Saturday, September 19 Board Meeting
Ho-Chunk, Baraboo
Saturday, October 10 2015 Landlord Education Day
& Trade Show Chula Vista Resort, WI Dells
Saturday, November 14 Board Meeting
Ho-Chunk, Baraboo
WIN! WIN! WIN!
A Pizza Party for
YOUR Local Association…
Grow your Membership!
$100 Pizza Party
for the Local with highest percentage growth
over 2014!
$100 Pizza Party
for the Local with the highest number of new members
over 2014!
See page 17 for ideas on how to grow your local membership this year and WIN!
WAA Directory
President: Dean Ramsden
(C) 715-421-6403
Past President: Dale Hicks
(C) 608-201-3774
Vice President: Sherrie Dorn
(C) 262-497-0516
Secretary: Adele Vogel
(H) 262-781-4044
Treasurer: Chris Mokler
(O) 920-235-6470
Northeastern: Hank Dreschler
(H) 920-766-3104
North Central: Kris Mueller
(H) 715-676-2353
Northwestern: Pamela Strittmater
(C) 608-317-3678
South Central: Matt Ruch
608-361-6896
Southeastern: Gus Orozco
(C) 847-668-7658
WAA Administrative Assistant/
Newsletter Editor/Designer
Kristy Weinke
920-230-WAA1 (9221)
Legislative Liaison (WRHLC)
Gary Goyke
(office) 608-237-8121
WAA/RHR Executive Committee
Regional Directors
WAA/RHR Staff
Beloit Property Mgrs Assoc.
Matt Ruch* (608) 361-6896
Joe Hansen (608) 365-8427
Eau Claire
(Chippewa Valley A.A.)
Diana West** (715) 456-7588
Fond du Lac Area Apt Assoc.
Vicki Garthwaite** (920) 923-4135
Gary Schwefel (920) 924-5746
Mary Ruplinger (920) 921-3791
Green Bay (Apt. Assoc.
of Northeastern WI)
Nancy Behnke** (920) 639-7557
Gary Heilmann (920) 499-5019
Nancy Kuehn (920) 619-8563
Hudson (St. Croix Valley
Apartment Association)
Allan Brown (715) 778-5809
Rob Peifer (651) 470-6679
Janesville Area Rental
Property Association
Dale Hicks** (608) 752-3104
Don Chapin (608) 755-1121
Kenosha Landlord Assoc. Inc.
Brian Hervat* (262) 652-8000
La Crosse (Apartment Assoc.
of the La Crosse Area)
Pamela Strittmater***
(608) 317-3678 [email protected]
Duane Roesler* (608) 792-4111
Jessica Olson (608) 782-0808
Marshfield Area Apt. Assoc.
Chuck Virnig (715) 305-1232
Kris Mueller** (715) 676-2353
* WAA Regional Director
** Education Chair ***Both RD & Education
Bold: Forms Representative
Oshkosh (Winnebago
Apartment Association)
Tracy Frost (920) 233-5810
Donn Lord** (920) 420-0662
Racine (S. WI Landlord Assoc.)
Wendy Wade (262) 221-6627
David Pioro (262) 939-9022
Dave Bybee** (262) 681-7233
Waukesha Area Apt. Assoc.
Norm Vogel** (262) 781-4044
Wausau Area Apt. Assoc.
Larry Sommer (715) 581-0160
Tom Holster (715) 432-5733
Wisconsin Rapids Area Rental
Property Owners Association
Sharon Jacoby (715) 510-0000
Harold Streekstra &
Helen Streekstra** (715) 424-2105
We need YOU! Our association is only as strong as our members and member participation is critical for our growth and
success. We have established a number of standing committees (teams) to ensure that our association continues to meet
goals that are set, retains and adds members, and provides education, leadership, and representation to ensure that YOU are
able to operate your rental business successfully, ethically, and responsibly in our state. These members have agreed to
volunteer their opinions, skills, and time to make this association the best it can be. Please consider getting involved as well
and help make a difference in YOUR association, the Wisconsin Apartment Association!
Education Committee – Dale Hicks-Co-Chair (JARPA, Janesville), Matt Ruch-Co-Chair (BPMA-Beloit), Sherrie Dorn
(SWLA, Racine), Julie Fay-Krivitz (Associate), and Pamela Strittmater (AALA, La Crosse)
Legislative Committee – Chris Mokler-Co-Chair (Winnebago, Oshkosh), Dale Hicks-Co-Chair (JARPA, Janesville), and
Jessica Olson (AALA, La Crosse)
Membership Committee – Paul Winans-Chair (AALA, La Crosse), Julie Fay-Krivitz (Associate), Pamela Strittmater
(AALA, La Crosse), Jeff Pralle (AALA, La Crosse), Kris Mueller (MAAA, Marshfield), and Gus Orozco (SWLA, Racine)
Conference Committee - Diane Orozco-Chair (SWLA-Racine), Kathy Haines (Associate), Julie Fay-Krivitz (Associate),
Kelly Jensen (SWLA, Racine), Bill White (Associate), Dawn Powell (KLA, Kenosha), Lori Thurloff (AANW, Green Bay), and
Dale Hicks (JARPA, Janesville)
Website/Newsletter - Pamela Strittmater-Co-Chair (AALA, La Crosse), Diana West-Co--Chair (CVAA-Eau Claire), John Dorn
SWLA, Racine), and Hank Drechsler (Member at Large)
● March 2015
President’s Letter
Dear Landlords…It’s time again to write the President’s letter for our March
newsletter and I hope you have enjoyed the past letters. I have to say that
our newsletter is one of the benefits of being a member of the WAA and lots
of effort, from many people, go into this newsletter. Many hours are
volunteered from many members of the WAA and it would be hard for me to
be able to “Thank” everyone for their dedication and service to the WAA! I
would be afraid that I would miss someone.
Please review the Local Affiliate Updates in this newsletter. We need all
locals to report to the WAA any past or present news from their local. This
section of the newsletter was specifically dedicated so the locals can share,
with the other locals throughout the state, information that would be helpful to the rest. I would like
to see more participation in this area. If your local is not reporting any information, please contact
the person responsible on your local board and help them with this. They may need a helping hand
with this project.
I also want to “Thank” everyone represented at our last Board Meeting. I think it was the best
represented meeting and we are making progress. It was great to see many involved in the
committee meetings including Marketing/Membership, our “new and improved” annual Landlord
Education Day & Trade Show, Education, and Website/Newsletter.
Our next Board meeting on Saturday, April 18, will mainly consist of a Leadership/Committee Work
Day at Chula Vista Resort in Wisconsin Dells. I encourage as many of members as possible to
attend! Without YOUR support, ideas, and dedication, we would not be able to move the WAA
forward. It takes ALL OF US to grow the WAA! Please also bring someone with you from your
local organization! We want to encourage everyone’s voice to be heard and, collectively, they will
hear us in Madison!
We also need YOUR attendance for the 2015 WAA/WRHLC Legislative Day on Wednesday,
March 18. We need YOU at the State Capitol! Gary Goyke has a great day planned for us…
please see the full agenda on page 6.
In closing, I want to “Thank” everyone for YOUR contribution and support to the WAA! Your
financial support and participation keeps the WAA a professional organization in Wisconsin! As
government continues to regulate our industry, we need YOU to step forward and lend a helping
hand.
I look forward to seeing everyone in Madison on Wednesday, March 18 and at the Leadership/
Committee meeting on Saturday, April 18, in Wisconsin Dells. Make sure you also register early
for the 2015 Landlord Education Day & Trade Show on Saturday, October 10! You can find the
schedule on page 12 and the registration form on page 13. Remember, the WAA needs YOUR
involvement!
Sincerely,
Dean Ramsden
WAA President
March 2015 ●
Landlord Tip
● March 2015
4 Tips to Create a Crisis
Management Plan
From www.american-apartment-owners-association.org
It is a scenario that you hope you never have to experience: a catastrophe strikes and your property is in the line of destruction. It does not pay to ignore the facts that at any time, some sort of crisis could hit your property. While natural disasters probably top your list of possibilities, there are plenty of man-made issues – broken water main, anyone? – that can crop up as well. Having an effective crisis management plan in place can make a chaotic event less so and increase the comfort level of your tenants as well.
Formulate a Plan Long before there is ever a need for it, make a crisis management plan. Though it might be difficult – and seem tedious to do so – try to incorporate every crisis situation that might affect your property. For a property in Florida, for example, you would not likely have to plan for a blizzard to move through the area. This does not mean, though, that you should not have a strategy in place to deal with a freak snowstorm that can make an unexpected appearance. Your crisis management plan should, of course, include accommodations for hurricanes and other severe weather related incidents that are common to the area.
Communicate With Your Tenants Foster a sense of transparency and set a tone of being proactive. This will help your tenants feel safe and that their concerns are being heard. Gather the facts pertaining to the crisis and present them in a format that is easy for all of your tenants to understand.
Provide written materials that residents can refer to again at a later time if further questions arise. Be available to answer questions and concerns or designate a go-to person to handle that aspect of the crisis.
Understand What Occurred Whether it was a natural occurrence or the result of human error, briefly outline the incident as well as the impact faced by the residents. If the incident occurred because of something that you or your staff did – or if it was exacerbated by the actions or inaction of management – issue a formal apology. With this apology, include steps that have been set into place to ensure that the incident does not occur in the future.
Establish a Chain of Command Your residents will want to speak to someone in charge who has the answers to their questions – or at least the authority to disseminate information. If that person is in an organization outside your own, do your best to provide your tenants with the correct contact information so that they can have their questions and concerns addressed.
If your agency is the one who is in charge, be sure to designate someone who has the authority to speak on the behalf of your organization. This person should be as updated as possible on the incident as well as the steps that management is taking to address the issue.
Use Multiple Communication Channels While putting things down in writing is important, the delivery of that information will likely need to encompass a variety of different media outlets. While delivering a copy of your incident statement to each door on your property is a good start, it is possible that not everyone will see it in a timely manner. Utilizing social media such as Facebook, Instagram and Twitter, as well as sending emails, to reach tenants helps you cover all the bases in shorter amount of time and using less manpower to do so.
While a crisis can occur at your property at any time, its presence does not need to spell disaster for you. Establishing a clear and concise crises management plan can help you stay in control of the situation while keeping your tenants in the loop.
2015 Legislative Day Agenda
March 2015 ●
Wisconsin Apartment Association and the
Wisconsin Rental Housing Legislative Council with the
Apartment Association of Southeastern Wisconsin
2015 Legislative Day
Wednesday, March 18th
10:00 a.m. – 10:30 a.m. Registration.
Room 411 South, State Capitol.
Cost is $25 and includes all materials, luncheon, reception, and
beverages.
10:30 a.m. – 1:30 p.m. Introductions, logistics for the day, and welcoming comments
followed by special guests, legislative messaging, updates, and
luncheon.
2:00 p.m. – 2:30 p.m. News Conference.
2:30 p.m. – 4:30 p.m. Visit Legislative offices and breakout sessions on various issues.
4:30 p.m. – 6:00 p.m. 2015 WAA-WRHLC Awards Reception.
Signature Lounge-Best Western Inn on the Park
22 S. Carroll Street, Madison.
2015 Spirit Award:
Wausau Area Apartment Association
2015 Partnership Award:
Wisconsin Realtors Association
2015 Advocates of the Year:
Pamela Strittmater & Jessica Olson,
Apartment Association of the La Crosse Area
2015 Outstanding Public Service Award:
City of Milwaukee-Health Department
For questions, contact Gary R. Goyke at [email protected]
or call 608-237-8121 (daytime)/608-249-8118 (evenings).
To pre-register (preferred), please send your name and local, if applicable,
with a check made payable to WAA by March 13th
to:
PO Box 2922, Oshkosh, WI 54903-2922
Ask the Doctor
● March 2015
Ask the Doctor Monthly Q&A
By John H. Fischer, aka Dr. Rent
Welcome to the newest monthly column in the WAA News. John will provide an answer to a question that he recently or frequently receives. If you have a question you would like covered in a future ―Ask the Doctor‖ column, it can be submitted to John at [email protected].
Question:
I have had a tenant pass away and have some questions about who I am obligated to hand over keys to and what time frame they have to remove the personal belongings. When he signed the lease 2 years ago, he was the only adult on the lease and 1 daughter that was a minor. Now the child is 18 years old, and has the only key to the apartment. Unfortunately the family does not get along. The deceased has an ex-wife, that the daughter is staying with now. The mom of the deceased wants a key and the daughter will not answer any of her calls. Can I give a key to the mom? And how long do they have to get the personal prop-erty removed?
Answer:
As always, although sometimes expensive, contacting an attorney will go a long way to limiting any liability you may have depending on how you proceed.
That being said, since the lease was signed two years ago, I am going to assume that the rental agreement is now a month-to-month. As for how much time the tenant (family) has to empty the apartment, when you learned of the death would be considered the notice date on the month-to-month. WI SS 704.19 explains month-to-month notices, but for the most part the contact would terminate the last day of the month following the month you got the notice, unless you got the notice very early in the month. (However, if the tenant was in the middle of a lease term, per WI SS 704.165, the family has 60 days from when you learned about the death, or the lease end date, whichever is sooner.)
As for who you give a key to...its complicated. Does the 18 year old still ―reside‖ in the prop-erty? You say she is now staying with the ex-wife, but has she moved all of her stuff there? If she did not move completely and is only ―staying‖ with the ex-wife and she still has a large amount of personal property in the unit, she has leasehold rights that need to be protected. If she truly has moved out of the apartment, then it gets a little easier for you.
Hopefully, the estate has some type of probate it is going through. Find out from the family (or from the court) if there is a probate and who is the point of contact for that through the court. That becomes the person who you deal with. Keep in mind, you cannot require any family member to make any payments or be liable for any amounts. You can discuss payment with whomever is running the estate, but only as the representative of that estate. They are not personally liable, only the estate is.
If this is a no estate (and therefore no probate) situation, you may want to contact a lawyer. I think ―next of kin‖ would be the daughter. If the daughter is not responsive, I believe next of kin then goes to parents, after that siblings. No matter how you proceed, be sure to keep good written records of all communications and document, document, document.
Editor’s Note: Answers in this column are specific to Wisconsin, other states may have different landlord-tenant laws. Nothing in this article should be considered legal advice. Dr. Rent along with the Wisconsin Apartment Association recommends you contact an attorney familiar with landlord-tenant law if you need legal advice.
Associate Member Directory
COMMUNICATION
ACSI-Automated
Communication Services
Samuel Handziak
13120 County Rd 6, Ste 100
Plymouth, MN 55441
Ph: (763) 253-2321
Cell: (262) 689-8780
www.weareacsi.com
CONTRACTING/
DISASTER RECOVERY
ARC Restoration & Contracting
Bryan Hanke
2300 Holly Rd
Neenah, WI 54956
Ph: (877) 272-3200 ext 715
Fax: (877) 272-3200
www.arccontracting.com
CREDIT CHECKS
Landlord Services, LLC
Kathy Haines
1264 Cass St.
Green Bay, WI 54301
Ph: (920) 436-9855
Fax: (920) 436-9856
www.wicreditreports.com
ENVIRONMENTAL/ENERGY
CONSERVATION
Connor
Patrick Connor
1421 Clarkview Rd., Ste 100
Baltimore, MD 21209-2188
Ph: (410) 296-7971
Focus on Energy
Brody Vance
Multifamily Sr. Program Manager
15770 W. Cleveland Avenue
New Berlin, WI 53151
Ph: (866) 486-0832
Fax: (262) 786-1487
www.focusonenergy.com/multifamily
FINANCIAL
Baer Insurance (Formerly Independent
Insurance Services, Inc.)
9701 Brader Way
Madison, WI 53562
Ph: (608) 830-5815
Toll-Free: (888) 729-2237
Fax: (608) 830-5877
WaterStone Bank
Julie Fay-Krivitz
21505 E Moreland Blvd
Waukesha, WI 53186
Ph: (414) 459-4568
Fax: (414) 918-0933
www.wsbonline.com
FORMS
Wisconsin Legal Blank Printing & Forms
Rick Russell
749 N 37th St
Milwaukee, WI 53208
Ph: (414) 344-5155
Fax: (414) 344-0577
INSURANCE
Baer Insurance (Formerly Independent
Insurance Services, Inc.)
9701 Brader Way
Madison, WI 53562
Ph: (608) 830-5815
Toll-Free: (888) 729-2237
Fax: (608) 830-5877
www.indep-insurance.com
Bader Company
Dan Rego
Account Executive
9777N. College Avenue
Indianapolis, IN 46280
Ph: (888) 223-3725 ext 6092
Direct: (317) 706-6092
www.baderco.com
LAUNDRY EQUIPMENT
Coin Appliances, Inc
Bob Day
Geoff Erdman
6580 N 40th St
Milwaukee, WI 53209
Ph: (800) 242-5453
Ph: (608) 271-3880
Fax: (414) 353-2214
www.coinappliances.com
Great Lakes Commercial Sales, Inc.
Jason Dable
12705 Robin Lane
Brookfield, WI 53005
Ph: (262) 790-5885
Ph: (800) 236-5599
Fax: (262) 790-5886
www.greatlakeslaundry.com
March 2015 ●
Associate Member Directory
Wash Multifamily Laundry Systems
Bill White, District Sales Manager
WASH Multifamily Laundry Systems,
LLC Milwaukee Office
N30 W22383 Green Rd., Unit G,
Waukesha, WI 53186
Ph: (800) 421-6897 ext. 5340
PAINTING
Diamond Vogel
Appleton & Green Bay
- Mark Severson (920) 470-0052
Sheboygan & Milwaukee-Butler
- Gary Paul (920) 207-5271
Madison - Paul Schneider
(608) 219-0453
Milwaukee, Oak Creek, Racine,
Kenosha - Frederic Ryan
(414) 550-3241
Minnesota - www.diamonvogel.com
/Minnesota.html
Hallman Lindsay Paints
Mike Granitz
1717 N Bristol St
Sun Prairie, WI 53590
Ph: (608) 834-8844
Fax: (608) 837-1064
www.hallmanlindsay.com
PROFESSIONAL SERVICES
Newmark Grubb Pfefferle
Tom Scheuerman
200 E Washington St, Suite 2A
Appleton, WI 54911
Ph: (920) 540-5068
Fax: (920) 968-4300
SOFTWARE
Connor
Patrick Connor
1421 Clarkview Rd., Ste 100
Baltimore, MD 21209-2188
Ph: (410) 296-7971
TENANT ASSISTANCE/MIGRANT
UMOS Corporate Headquarters
Robert Forster - Administrator/
Management Analyst
300 S. Koeller St. Ste E
Oshkosh, WI 54902-5590
Ph: (920) 232-9611
Cell: (414) 791-0301
Fax: (920) 232-8129
www.umos.org
UTILITY BILLING/
SUBMETERING SERVICE
NWP Services Corporation
Annette VanDuren
Ph: (949) 529-8324
eFax: (630) 282-4771
www.nwpsc.com
UTILITIES
Dean’s Satellite Service, Inc.
Sonya Pennel
2350 Commercial Dr
Sparta, WI 54656
Ph: ( 608) 269-2897
Fax: (608) 269-5241
● March 2015
Tax Tip
March 2015 ●
Obamacare & Your 2014 Tax
Return: What You Need to
Know
Find out what is required on your tax return under the Affordable Care Act. By Stephen Fishman, J.D., www.nolo.com
The 2014 tax year is the first year that income tax returns are affected by the Affordable Care Act (also known as Obamacare). For most taxpayers, the effect will be minimal. But for some, new tax forms will have to be filed and potentially complex calculations made. Some taxpayers who did not obtain health coverage during 2014 will be required to pay penalties; while others who obtained subsidized Obamacare coverage may be required to pay back part (or even all) of the subsidy.
If You Had Regular Health Insurance During 2014 If you and your dependents had qualifying health insurance coverage for all of 2014 through a source other than the federal health insurance exchange (healthcare.gov) or one of the state exchanges, all you need do is check the appropriate box on your tax form indicating you had such coverage. This box is in line 61 on Form 1040. The IRS estimates that over three-quarters of all filers fall into this category.
Qualifying coverage includes coverage under most types of health care plans, including coverage that the majority of Americans obtain through their employers. If you’re not sure if you had qualifying coverage, check out the IRS chart at its Individual Shared Responsibility Provision - Minimum Essential Coverage webpage.
If you had qualifying coverage, you may be mailed some new tax forms. You may receive IRS Form 1095-B, Health Coverage, from your health insurer or Form 1095-C, Employer-Provided Health Insurance Offer and Coverage, from your employer if it provided you with coverage. Both forms are used to show that you had health coverage during the year. However, you may not receive either of these forms because they are optional for the 2014 tax year. This is no problem, because you need not file them with your return.
If you do receive either form, just keep it with your tax records.
You Obtained Obamacare Health Coverage If you obtained health coverage for yourself and your family through the federal health exchange or one of the state health insurance exchanges (also called marketplaces), your 2014 tax return will be more complex than in years past. First of all, you should receive new IRS Form 1095-A, Health Insurance Marketplace Statement. These are supposed to be postal mailed by the health exchanges by February 2, 2015. However, if you elected to receive the form electronically, you’ll be able to download it from your health exchange website. If you haven’t receive this form by early February, contact your health insurance exchange. You will need the information on this form to complete your 2014 income tax return. You need not file Form 1095-A with your return, but you should keep it with your 2014 tax records.
Form 1095-A shows the type of health coverage you and your family received, how much it cost, and the amount of advance premium payments, if any, that were paid each month to your health insurer on your behalf by the federal government. Now, here comes the tricky part. If, like most people who obtained Obamacare coverage, you qualified for health insurance premium subsidies and had them paid in advance to your health insurer during 2014, you need to determine if the amount of the subsidies that were paid was correct. This depends on your 2014 modified adjusted gross income as shown on your 2014 return.
When you applied for Obamacare subsidies, you made an estimate of what your income would be in 2014. If this estimate turned out to be accurate, there’s no problem. But if the estimate was too low, you may have to pay back part (or even all) of the premium payments made on your behalf. On the other hand, if your estimate was too low, you could qualify for extra premium payments which the IRS will pay to you. Reductions in your family size during 2014, such as a divorce or death, could also result in you having to pay back all or some of the subsidies.
(cont’d on page 11)
● March 2015
Tax Tip (cont’d)
(cont’d from page 10)
The amount you’ll have to pay back depends on your 2014 family income. If your 2014 income is below 400% of the federal poverty level ($45,960 for singles and $94,200 for a family of four), there is a cap on the amount you’ll have to pay back, even if you received more in assistance than the amount of the cap. However, at higher income levels you’ll have to pay back the entire amount you received. You list the amount you have to repay in “Tax and Credits” portion of your return (line 46 of Form 1040) and pay it with the rest of your income taxes.
You calculate whether the advance premium payments were correct on IRS Form 8962, Premium Tax Credit, which you must file with your return. Calculating whether the premium payments were correct is complex and something few taxpayers will be able to do with paper and pencil. If you prepare your taxes yourself, you should use tax preparation software, such as TurboTax, to help you complete this form.
You Were Uncovered for All or Part of 2014 If you or your dependents had no health coverage during all or part of 2014, or coverage that was not qualifying coverage, you may have to pay a penalty to the IRS, called a “shared responsibility payment.” The penalty is $95 per adult ($45.50 per child) or 1% of your household income, whichever is higher. However, the penalty is subject to a cap—for example, the 2014 cap is $2,448 for an individual, $12,240 for a family of five. The penalty is prorated if you had coverage for part of 2014. For more details on calculating the penalty, see the IRS Individual Shared Responsibility Provision – Reporting and Calculating the Payment page. If you owe a penalty, you list it in the “Other Taxes” section of your return (line 61 on Form 1040) and pay it with the rest of your income taxes.
However, you may be exempt from having to pay the penalty. There are around 20 different exemptions. You can find a useful online questionnaire you can use to determine if you qualify for an exemption on the TurboTax website’s Free tax calculators and tools page (it’s free for everyone to use).
You can apply for many of the more common exemptions directly on your tax return. These include the exemption for people who can’t afford coverage because it would cost more than 8% of their household income, or if you had a coverage lapse of three months or less. Other exemptions must be applied for through your health insurance exchange, which will issue an exemption certificate you must attach to your return. If you apply for an exemption, you must complete IRS Form 8965, Health Coverage Exemption, and attach it to your return.
The IRS has set up a special section at IRS.gov/aca with more information about the Affordable Care Act and the 2014 income tax return.
March 2015 ●
2015 Landlord Education Day Schedule
● March 2015
2015 Landlord Education Day Registration
Local Affiliate Updates
APARTMENT ASSOCIATION OF NORTHEAST WISCONSIN
(AANW), GREEN BAY
Info submitted by Kathy Haines
March-Brown County Health Department will educate us about Lead Paint.
Meetings are held the 2nd Wednesday of each month at the Hilton Garden Inn, 1015 Lombardi Ave., Green Bay
Networking at 6:00 p.m. & meeting at 6:30 p.m.
APARTMENT ASSOCIATION OF THE LA CROSSE AREA (AALA)
Info submitted by President Pamela Strittmater
At our February meeting, we had a CPA talk about the tax law changes that affect rental property owners.
Our March meeting will focus on code enforcement.
Meetings are held the 3rd Thursday of each month at the Moose Lodge
March 2015 ●
CHIPPEWA VALLEY APARTMENT ASSOCIATION (CVAA),
EAU CLAIRE
Info submitted by President Diana West
Check out our new website at www.cv-aa.org!
Meetings are held the 2nd Monday of each month at 7:00 p.m. at the Elks Lodge, 3411 Stein Blvd, Eau Claire
JANESVILLE AREA RENTAL PROPERTY ASSOCIATION (JARPA)
Info submitted by Dale Hicks
Our 2015 JARPA officers:
Left to right: Ann Courtney, Secretary; Roz Voegeli, Vice President; Dale Hicks, President; and Cindy Haberman, Treasurer
Meetings are held the 3rd Thursday of each month at 7:00 p.m. at Commercial Bank, 1400 Blackbridge Rd., Janesville
● March 2015
Local Affiliate Updates
MARSHFIELD AREA APARTMENT ASSOCIATION
Info submitted by President Kris Mueller
Starting in 2015, we have changed our Educational Seminars to the 3rd
Wednesday of every month. Since that falls on Legislative Day this year, we will be meeting in Madison this year. Call Kris at 715-676-2353 to make arrangements for a ride. It will be an all day event.
We had our Christmas Party in January. Plans are to invite the Mayor of Marshfield to our April Board meeting. The Marshfield City Council is discussing the creation of a potential city-owned subdivision. The City feels (from the survey they took last year) that families are not moving to Marshfield because the city doesn’t have affordable housing and if they had affordable housing then they would have jobs. The target for the houses in this new subdivision would be $125,000 to $200,000 homes. It is still in the planning stages and we will be keeping an eye on this.
Educational seminars are on the 3rd Wednesday of each month at Belvedere Supper Club, Marshfield
Networking & dinner (at your own expense) at 6:00 p.m. & seminar at 7:00 p.m.
Board meetings are held on the 1st Thursday of every month at the Sunrise Restaurant. Everyone is welcome!
WAUKESHA AREA APARTMENT ASSOCIATION
Info submitted by President Adele Vogel
March 18th – Legislative Day, Madison - Waukesha will pay the $25 (lunch & other fees) for up to 6 of our members who attend or if less than 6 attend, we will donate $100 to help cover the event costs.
October 10th - Waukesha members voted to offer 2 paid registrations for the 2015 Landlord Education Day & Trade Show at Chula Vista Resort via a drawing to be held at our June meeting. Each member who is in good standing receives one chance to win, simply by attending any of our local meetings or any other WAA sponsored/endorsed event, such as Legislative Day, a WAA Board meeting, or even our Annual Christmas Dinner.
Meetings are held the 3rd Wednesday of each month at the Waukesha Eagles Club, Grandview Ave, Waukesha
Networking/dinner at 6:30 p.m. & speaker begins at 7:00 p.m.; Business discussion to follow.
KENOSHA LANDLORD ASSOCIATION (KLA)
Info submitted by Secretary Jeanette Marchetti-Hamm
Meetings are held the 3rd Wednesday of each month at the Kenosha VFW Post 1865, 6618 39th Ave., Kenosha
Networking with refreshments at 6:30 p.m. & meeting at 7:00 p.m.
SOUTHERN WISCONSIN LANDLORD ASSOCIATION
(SWLA), RACINE
Info submitted by President Jon Frickensmith
March 16th - Mayoral Debate for upcoming City of Racine election.
Visit our website at www.racineswla.org!
Meetings are held the 3rd Monday of each month at Harbor Lite Yacht Club, 559 State St, Racine
Networking & food at 6:00 p.m. & meeting at 6:30 p.m.
March 2015 ●
Local Affiliate Updates
WISCONSIN RAPIDS AREA RENTAL PROPERTY OWNERS
Info submitted by Helen Streekstra
The Wisconsin Rapids landlord group hosted Landlord 101 with 24 interested people attending on January 3, 2015. Many questions and concerns, along with the knowledge, were shared. Our March 9th meeting will have a representative from our local fire department sharing current codes and answering our questions. A regular meeting will follow his presentation. Our meetings always are at the Hotel Mead beginning at 5:00 with a social time including a pizza buffet with the meeting starting at 6:00.
Meetings are held 4 times per year: Next meeting is Monday, March 9th at the Hotel Mead
Social/dinner at 5:00 p.m. & meeting at 6:00 p.m.
WINNEBAGO APARTMENT ASSOCIATION, OSHKOSH
Info submitted by President Donn Lord
The Winnebago Apartment Association will be holding its monthly meeting on Monday, March 9th at
7:00 p.m. at Benvenuto's Italian Grill, 300 S. Koeller Street, Oshkosh. Our speaker will be Jason Vander Velden, Weatherization Director for Advocap’s Weatherization Assistance Program. This program improves the energy efficiency of homes by using the most advanced technologies, testing equipment, and protocols available in the housing industry. Eligibility requirements and multiple programs offered by Advocap will be covered at this meeting. Information on other programs, includ-ing rebates and incentives offered by Energy Services, Focus on Energy, and Wisconsin Public ser-vice will also be presented.
Meetings are held the 2nd Monday of each month at Benvenuto’s Grill, 300 S. Koeller St., Oshkosh
Board meeting at 5:30 p.m., social (in the bar) at 6:30 p.m., & business meeting at 7:00 p.m. in the back room.
We’re waiting to hear from you . . . Beloit Property Managers Association and Fond du Lac Area Apartment Association.
WAUSAU AREA APARTMENT ASSOCIATION
Info submitted by Larry Sommer
Serving Marathon, Lincoln, Portage and Wood Counties. The Wausau Area Apartment Association currently has 72 members that manages approximately 7,000 properties.
Meetings are held the 3rd Tuesday of each month at Sam's Pizza, 5811 Bus. HWY 51 South, Schofield
Networking at 6:30 p.m. & meeting at 7:00 p.m.
Membership Tip
● March 2015
Membership Growth Q&A
By Paul Winans, WAA Membership Chair
Q: How can we gain new members in our Local Association?
A: Practice the “5-I’s” of membership development!
1. Identify Find out who owns those 4-plexes down the street, or ask your locksmith or carpet
cleaner to give you a few names of landlords he knows, or put up a flyer at the hardware store…be creative!
2. Invite Ask the landlord if they have ever considered joining your Local Association. Let them
know that, with everything going on at the State and local level, this would be a great year to get involved. Invite them to attend Legislative Day in Madison on Wednesday, March 18th. Invite them to your next meeting or to a special event you’re sponsoring. Tell them it’s a three-way exchange of education, networking, and fun. Let them know that their input would be appreciated and welcomed by others in the group!
3. Include Call ahead and/or email your prospect to remind them, and let them feel you’re looking
forward to seeing them. Welcome your guest before the meeting begins; maybe buy them a drink. Introduce them to a couple other members and to your President. Encourage them to participate during discussions, and acknowledge their legitimate opinions.
4. Inform Call or email them about upcoming topics and guest speakers at your Local meetings.
Keep them informed about gains that have been made through Gary Goyke’s lobbying activities and our Wisconsin Rental Housing Legislative Council (WRHLC). Let them know about educational and mentoring programs available through your Local.
5. Involve Recognize their talents, interests and experience. Ask them to utilize their “gifts” to
help your Local. You might suggest a committee that could use a little help, or simply ask them to help with meeting set ups. Be sure to let them know how much their help is appreciated!
Q: Who can get new members into our Local Association?
A: YOU CAN!
Remember, the local with the highest percentage growth over 2014 AND the local with the highest number of new members over 2014 will each win a $100 pizza party. Let’s spread the word, bring in new members, and grow WAA!
Maintenance Tip
March 2015 ●
3 Common Plumbing Issues &
How You Can Avoid Them
From www.american-apartment-owners-association.org
It’s the New Year, and you have made a resolution to expect the unexpected this year. Each morning, you wake up to an upbeat song
that fires you up for the day.
You’re Rocky, preparing for the big fight against Apollo. “Eye of the Tiger” plays in the background, and you think through your strategy for the day, hoping nothing goes wrong once you set foot in the building and face the rush of customers.
About midway through the morning, something goes wrong — terribly wrong. The entire floor of the restroom floods with water, forcing you to temporarily close it. What happens next? Do you:
1. Send an employee in to figure out the problem, hoping he figures it out before the lunch rush
2. Look up a local plumber and hope he/she gets there quickly to fix the issue
3. Call an experienced repair partner who has experience with your store and a reputation for fixing issues the first time
As you know, this scenario happens all too often in a retail environment. Sometimes the fix is simple: a toilet clog can be easily cleared with a few thrusts of a plunger.
Other times, the clog can result from months of customers placing miscellaneous items where they don’t belong. Common items we find in retail drains include security tags, feminine hygiene products, pregnancy tests, paper towels, children’s toys — we’ve even found T-shirts and other large pieces of clothing shoved into drains.
One way to prevent a backup from happen-ing — particularly in older buildings or high-traffic facilities— is to jet them. Think of the system like your arteries. Over time, residue builds up around the inside of the drain similar to the way plaque builds up in our arteries. Drain jetting clears this residue, and can be performed one or more times a year.
Other potential plumbing issues Backed up drain lines are just one of several potential plumbing situations that could derail your operations. A failing hot water heater could deliver another potential knock-out punch to your store— particularly if food is a part of your offering and you need hot water.
Rather than wait for the heater to go out, implement a preventative maintenance system so you can stay ahead of potential issues and identify them before it causes a disruption.
Frozen or burst pipes can also cause a substantial business interruption during cold temperatures. Could you imagine arriving at work and finding the entire store was flooded? Insulate exposed pipes before the tempera-tures drop to prevent this from happening.
Keeping the lines open Your time is precious. You don’t want to lose time or experience a business interruption due to a potentially avoidable issue. In addition to the preventative steps that will help avert a plumbing-related catastrophe, you will want to identify a reliable partner who can respond to your call quickly and is equipped with the knowledge and equipment to fix your issue the first time.
Just like Rocky, a great operation always has the support of an experienced team or partner network. If you have an emergency situation that happens in your restaurant, you’ll want to call an experienced repair partner who has experience with your store and a reputation for fixing issues the first time.
Otherwise, a seemingly small plumbing issue could result in a knockout punch that derails your business.
Rental Tip
● March 2015
Avoid Fair Housing Trouble
with a Tenant Selection Plan
The value of letting rental applicants know your tenant screening and selection criteria. By Ron Leshnower, www.nolo.com
Many landlords don’t have a written tenant selection plan. Other landlords who have taken the time to prepare one choose to treat it as an internal document, seen only by themselves or staff (if any), such as a manager. The best approach, however, is to create a written tenant selection plan and make it available to all applicants before they even apply for an apartment.
Letting applicants see your tenancy criteria is smart for customer relations as well as for lowering the chances of a misunderstanding that can lead to an argument or even a fair housing lawsuit. If applicants first learn about an aspect of your screening criteria from a rejection letter, they’re far more likely to get angry and question the legitimacy of their rejection. On the other hand, letting applicants discover your qualifications for tenancy up front removes any mystery, which helps streamline the screening process and lower your risk for liability.
Make Your Tenant Selection Plan Easy to Understand Your tenant selection plan should be written in plain English. It does not need to be long or include legalese and formal language, since you want to communicate your selection criteria to applicants without any misunderstandings. When drafting a tenant selection plan for your rental property, aim to make the plan as clear and concise as possible.
Include All Your Criteria in Your Tenant Selection Plan Before you get started writing a written tenant selection plan, a good first step is to jot down all the criteria that you and your staff currently use to screen applicants. This means stating minimum requirements such as your income-to-rent ratio and minimum credit score, as well as indicating if you check an applicant’s employment history, rental payment history, credit report, and criminal background, and noting how such inquires affect an application.
In addition to outlining what you require of applicants, your tenant selection plan is a good place to communicate the fact that you follow all applicable fair housing laws and don’t engage in illegal discrimination. You can do this by including a short statement to this effect at the beginning of your plan. Also, include your state or local occupancy requirements (for example, up to two tenants per bedroom) and any other legal restrictions that you’re bound to follow when selecting tenants. This way, applicants will understand that the law may be to blame for a type of living arrangement they may seek at your rental property.
Give Your Tenant Selection Plan to All Applicants When applicants see your selection plan, they’ll know that you take tenant selection seriously and don’t choose tenants arbitrarily. They’ll also see exactly what your criteria are for tenancy. This way, applicants who know they won’t fit your criteria can save themselves (and you) time by not applying. On the flip side, it means you’re more likely to get applicants that have a good chance of passing your screening requirements, since they’ve reviewed those requirements before deciding to apply.
Most importantly, giving your tenant selection plan to all applicants helps prevent an all-too-common situation where a rejected applicant angrily rushes to accuse the landlord of discrimination. If you reject an applicant for valid reasons, in accordance with the framework set up in your tenant selection plan, the applicant will have an uphill battle contesting your decision or proving that you violated fair housing laws.
Keep Your Tenant Selection Plan Current Your tenant selection plan can become a liability trap if you let it get outdated. If you make a change to your policies (for example, you raise the minimum credit score or you begin to seek prior landlord references), promptly update your plan to reflect all revisions. This way, if a rejected applicant claims you acted unfairly, you won’t be in the difficult position of having to prove you followed your own policies despite what it may say in your tenant selection plan.
Financial Tip
March 2015 ●
4 Hidden Costs of Being a
Landlord
By Margarette Burnette, Bankrate.com
Life as a landlord may be tempting to home-owners unable to sell their homes and others looking to add properties to their investment portfolio.
However, many costs associated with rental properties catch novice landlords by surprise. The following are four hidden expenses experts say new landlords should consider.
1. Increased insurance costs Rental homes may cost more to insure. For example, homeowners who cannot sell their homes should be aware that renting out the home changes the owner's status from primary occupant to "investor," says Brian Mikelbank, an associate professor of urban studies at Cleveland State University, in Ohio.
As a result, it costs more money to insure the home with a special landlord insurance policy. According to the Insurance Information Institute, the premium is about 25 percent more than with typical homeowners insurance.
The tenant rent payment may help cover the increased expense, but Mikelbank says landlords shouldn't always count on it. "Homes will usually have tenants for less than 12 full months out of the year, since it takes time to find a renter, or a tenant could potentially leave before their lease is up," he says.
2. Legal fees and administrative charges Landlords should budget money and time for getting legal advice, learning their rights and drafting rental agreements, says Lisa Sevajian, a Realtor in North Andover, Mass. "Some attorneys will charge a flat rate of about $200 for landlord services," Sevajian says. Other lawyers may charge by the hour. Owners should also be prepared to pay for additional work if a tenant needs to be evicted, or there is some other legal dispute, she says.
In addition to legal expenses, landlords will have to pay for administrative costs related to interviewing potential tenants, running their credit histories and checking references, Sevajian says.
Property management companies can handle these tasks for the property investor, but typically charge about 10 percent of each month's rent for their services.
Many municipalities require owners to register rental homes and make them available for examination, Mikelbank says. "The city will send out an inspector to make sure the property is up to code," Mikelbank says. If there is a defect, the owner will have to pay to fix the problems, he says.
Some municipalities also ask new landlords to attend day-long training classes that cover topics such as how to find good tenants, best practices in property management, and how to spot and report potential illegal activity. Mikelbank says more cities are offering these classes because of an increase in "casual landlords" who may not understand all the legal regulations involved in owning rental property.
Fees for these administrative services add up. "The cost for registration, inspections and training can be a couple hundred dollars a year," Mikelbank says.
3. Cleaning, care and maintenance costs To attract tenants, landlords may have to spend up to $1,000 on paint, carpet and landscaping, Mikelbank says. Otherwise, it might be difficult to find a reliable tenant.
So, homeowners who can't sell and decide instead to rent their home should plan to spruce up the place -- just as they would before a sale. "The same upkeep problems that could be holding a house back on the 'for sale' market could also be holding it back from the rental market," Mikelbank says. "The difference is, houses can be sold 'as is,' but a renter may not be willing to rent 'as is.'"
When a tenant does move in, the landlord may be contractually obligated to fix new maintenance issues, such as a leaky toilet, Sevajian says.
(cont’d on page 21)
Financial Tip (cont’d)/Screening Tip
● March 2015
(cont’d from page 20)
Once the tenant moves out, the landlord will need to spend more money to clean up the home for the next resident, she added.
Landlords should be prepared to pay these expenses out of pocket, Sevajian says. "Owners can require a security deposit to help cover certain cleanup costs, but it won't pay for everything if the tenant stops paying rent early or badly trashes the house," she says.
4. Increased taxesMany states and municipalities have tax rules that favor owners who live in their homes, such as the homestead exemption, Mikelbank says.
These tax breaks don't apply to investment property. So, new landlords should be aware that they may have a higher tax burden on their investment property.
This issue is especially pertinent to homeown-ers who turn a primary home into a rental. An owner will probably have to give up the homestead exemption if he or she moves out of a property while continuing to own it. This would mean higher property taxes.
Once the real estate market rebounds, an owner may decide to put his or her home up for sale, Mikelbank says. But if that person hasn't lived in the dwelling for at least two of the previous five years, the owner likely will lose his or her capital gains tax exemption, which allows individual filers to keep $250,000 of profit from the sale tax-free.
Of course, other expenses related to rental properties actually generate tax breaks for the landlord. Mikelbank urges novice property investors to talk to an experienced tax professional to understand how becoming a landlord could affect the individual's tax situation.
5 Criteria for Tenant Screening
From alwaysscreening.com/blog, February 16, 2015
Chances are, if you are reading this as a landlord, you already know there’s value in apartment tenant
screening. It’s simple: you want to rent out what may well be your most valuable asset to people you know you can trust. But how do you interpret the results?
Before looking at that, it’s important to remember you can screen a lot just by evaluating your interactions with applicants. Are they on time? Polite in interactions and emails? Do they communicate well with questions that are clear and relevant? Pay attention to what your gut tells you on these issues.
A second criterion for screening is to be skeptical of your results. Make sure the information you get from a tenant screening company matches the information from the applicant. It would be both wrong and unfortunate for you if you rejected an ideal candidate simply because you were looking at the data for another renter.
Third, ask those applicants who passed your initial gut check above about discrepancies. Perhaps you see an arrest record on a report, for example—but the tenant can show that was mistaken and charges were dropped or they were acquitted.
Fourth, independent of any report, think through for yourself what a tenant’s likely expenses will be for the unit you are renting. If some or all utilities are paid by the renter, what sort of monthly expenses (including both those utilities and rent to you) are they likely to incur? What other costs, from furnish-ing the apartment to cleaning it regularly might they incur? In essence, draw up a budget as if you were the applicant. Then ask, what kind of income is needed to comfortably support these expenses? That will guide you about how to evaluate the applicant’s income history.
Lastly, don’t stop apartment tenant screening once a lease is signed. You may face choices later about extending a lease long term. Keep records of dates the rent checks were submitted to identify who is late or asking for extensions. If you enter the apartment to perform repairs, observe cleanliness and the general condition of the apartment—would you rent to these people again? Keep notes to be clear about each individual unit.
WAA Contact Information
March 2015 ●
*Information in these articles should be used as a guide only and should not be relied upon as the sole source of information relating to its content. Additional sources of information may be
listed herein. No warranty, either expressed or implied, is made with respect to the information contained herein. Neither WAA nor RHR is responsible for any loss, inconvenience, damage
(whether special or consequential) or claims arising out of the use of the information contained. You should always seek advice from your attorney regarding any legal matters.
● March 2015
Book Review/Quick Maintenance Tip
Understanding Your Taxes:
Your Business and Rental Income,
and Your Deduction for Depreciation
By Milton G. Boothe
Overview Understanding Your Taxes is a new series of tax publications designed to help taxpayers across the USA. The objective of these publications is to help taxpayers to understand United States income tax code as far as Form 1040; US Individual Tax Returns is concerned. With a good basic knowledge of the tax code, taxpayers will potentially be in the position to literally increase their income tax refunds (or decrease their tax liabilities) by thousands of dollars, simply by claiming all the tax deductions and tax credits that they are eligible for.
Doing your own taxes is actually not as difficult a task as your tax professional might want you to perceive it to be. Actually, tax preparation software has come a long way in the past few years, making it so easy for you to prepare your own taxes, that it's virtually impossible not to be able to understand the process, even with absolutely no knowledge of tax laws.
No longer do you have to be daunted by the complexity of the tax code. Unlike most other tax publications, these publications have been compiled specifically with the taxpayer in mind, and although very comprehensive, they are also concise, and very easy to understand. These publications are very "reader friendly"-having been compiled in layman's terms, using simple language, and avoiding tax jargon as much as possible, as they break down the relevant areas of the tax code into understandable segments. The reader, therefore, does not need to have any prior tax knowledge to easily follow what's contained therein.
Basement Preservation
By Dale Hicks, President of the Janesville Area Rental Property Association
How many landlords have rental property with lime or sand stone foundations? If you do, you know that in time they start losing sand and then the larger blocks can start to shift. What can you do? These foundations could be anywhere from 100 to 140 years old, and if left to their own demise, they eventually will fall apart.
I have several properties like this. I have been mortaring them up to stop the erosion using three parts mortar, one part Portland cement; add water to achieve the mix I desire. I trowel the mixture on and let it dry. I generally do this in the winter months or
when things are slow and have been doing this for a number of years.
I thought of getting rid of old paint that has been partially used but still on the shelf. Gathering up 36 one-gallon cans of different amounts and colors of paint, I started to mix them together. I ended up with 20 gallons of paint that turned out to be a lite lemon to almost a white color. I brush this on the newly mortared up walls, which brightens up the basement foundation and keeps me from having to take the old paint to the landfill. Hope this lasts as long as the original basement.
PO Box 2922
Oshkosh, WI 54903
(920) 230-9221
www.waaonline.org
