Michigan Landlord Magazine March-April 2014

MICHIGAN

LANDLORD March/April 2014

www.rpoaonline.org

IN THIS ISSUE: Time-saving tips for landlords Getting your six-year rental certs?

Senate judiciary takes on squatters, felons

11 Mistakes Inexperienced Landlords Make A PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

NON-MEMBER

RPOA MEMBER

n o t I c e o F v I o l at I o n s

peace oF mInd

non-payIng

In this Edition

6

tenants

evIctIons

destRuctIve

32

FEATURES

FaIR housIng vIolatIons costly

35

4

From the Director

5

New Members

14 Member-to-Member Discount Program

tenants

27 Credit Reporting Procedures 28

ongoIng polIce calls

Upcoming Seminars & Events

37 Ad-o-Grams

otheR complaInIng tenants

ARTICLES

nasty letteRs FRom neIghboRs

4 RPOA Partners with West Michigan REI Club

costly lIabIlIty laWsuIts IncoRRect

FoRms

Volume 50, number 2 www.rpoaonline.org

6 11 Mistakes Inexperienced Landlords Make

MICHIGAN LANDLORD editorial goal is to provide a forum

9

Time-Saving Tips For Landlords

and management ideas and news. Our articles,

10 Mackinac Center Highlights Failure of Land Bank to Address Blight

investment advice, nor does their appearance imply an

for real estate investment and rental property ownership columns, and other features should not be construed as endorsement by the Rental Property Owners Association

11

Getting Your Six-Year Rental Certs?

of Kent County or the Real Estate Investors of Michigan

12

Solid Strategies = Solid Success

of any specific real estate investment or management

19 Local Fair Housing News 20

strategy. An investor’s and manager’s best course of action must be based on individual circumstances.

Earn $100 and Win a Cruise for Two!

21 RPOA Annual Conference

Event Schedule

WHERE LANDLORDS GO FOR HELP

32 Personal Property at Termination of Tenancy

www.rpoaonline.org

35 Senate Judiciary Takes on Squatters, Felons March/April 2014 MICHIGAN LANDLORD 3

RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

From the desk of the Director Clay Powell

The New Year is behind us and, as they do every spring, things are going to start to crank up. With the economy still on an upward trend, this should be a gangbuster year for the rental property industry. To help get you off on the right track, we’ve put together lots of great articles.

I’m a big proponent of not making mistakes others have made before me. The article by Katie Adams on the “11 Mistakes Inexperienced Landlords Make” is essential reading—and not just for the inexperienced. The RPOA staff regularly discovers not so green landlords that make some of these mistakes over and over again.

Other helpful articles are included to help you get going, including time-saving tips and the top 9 most popular and useful online rental property management services. We’ve also included insight into how to get six-year certs for your rentals in Grand Rapids.

You’ll also find an announcement in the article below about our new partnership with the West Michigan REI Club. The partnership was formed to provide a new networking opportunity in the evenings for those that can’t make it to the Friday morning RPOA Breakfast Real Estate Networking event. The West Michigan REI Club meets monthly, generally the 2 nd Wednesday of the month from 6–7 p.m. at a local restaurant. To join the group of 80 plus investors and to learn the dates and locations of the meetings, sign up on MeetUp.com and request to join the West Michigan REI Club. The event is free unless you buy something to eat or drink. (Instead of registering with the RPOA office, you’ll note whether or not you plan to attend through the MeetUp group page.)

RPOA Partners with West Michigan REI Club In order to offer as many networking opportunities as possible, the RPOA has joined up with the West Michigan REI Club sponsoring monthly evening meet ups for active and wanna-be real estate investors. All real estate investors are welcome. continued on page 5

Welcome, New Members A-1 Heating & Air Conditioning Bin There Dump That Cerven, Janice V Compass Realty Services Cook, Joel M & Gail L Decker, April Efficient Lawn Maintenance LLC

Kline, Roy & Barbara Kramer, Christine KSC Investment LLC Maier, Cheryl Miller, Eric & Silvia Near, Cecily Nickelson, Ted

RPOA Partners with West Michigan REI Club

Roberts, Alexander Roberts, Gerald Siebrasse, Tom Steinman, Debra & Jim Tiscareno, Tammy VanderLoo, Kay

cont.

The discussions cover a wide array of topics, including cash flow, real estate investing, real estate foreclosures, investment strategies, financing and more. To connect with the group and keep up-to-date on meetings and more, join the MeetUp. com group West Michigan REI Club at http://www.meetup.com/WestMichiganREIClub/. You’ll need to register to use MeetUp.com before joining the group. The locations of the networking meetings may change from time to time so it’s important to stay connected with the group online. For more information on the group, contact volunteer Michael Lerch at michael.j.lerch@gmail.com. Enjoy this great new opportunity to connect with over 70 real estate investors from the West Michigan area.

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March/April 2014 MICHIGAN LANDLORD 5

WHERE LANDLORDS GO FOR HELP

With the housing market collapse, many investors who have been fortunate enough to preserve their cash or maintain access to credit are snapping up incredible deals on residential properties to try their hand at real estate investing.

While it may sound easy enough—buy a home, make a few renovations and rent it out for more than the monthly mortgage payment—successfully managing your own investment properties requires the mindset of a business professional.

Without experience, it can be easy to quickly lose money, time and sleep by making these common new landlord mistakes.

1. Not running adequate checks on a potential tenant.

11 Mistakes Inexperienced Landlords Make

As anxious as you may be to get a tenant in and paying rent, it’s not worth rushing ahead without checking your tenant’s credentials first. Use a rental application form that will provide you with adequate information; pay the money necessary to obtain a credit report (to check on a history of late payments, delinquent accounts, etc) and take the time to verify references including employers and former landlords. Even if the tenant is “desperate” to move in and can make the deposit amount immediately, check out their background first. Don’t allow yourself to feel rushed or pressured into making a potentially costly mistake.

2. Thinking the property will always be rented.

Before closing on a property, you need to do your own financial due diligence and ensure that you can pay the mortgage (if you’re taking a loan) in the event that you have months with no tenant paying rent. Don’t risk potential foreclosure and financial ruin because you failed to do a simple cash flow analysis and maintain sufficient funds to cover the mortgage payments when renters are few and far between.

3. Underestimating the cost of repairs or ongoing property maintenance.

by Katie Adams Posted on Dec. 1, 2013 by AOA of California, INC in all

In order to keep tenants interested in (and paying for) the property, you will

need to maintain it. Make sure you’re charging enough in rent to at least help cover a portion of ongoing maintenance costs (i.e. painting, cleaning and carpet cleaning between tenants). Also, plan on having to pull money either out of the business or your own pocket in the event that you don’t have the cash needed to make major one-time repairs such as repairing structural damage or replacing appliances, etc.

4. Viewing it as a hobby.

Owning rental properties is a business and in order to turn a profit, you’ll need to operate it as such. That means establishing separate bank accounts for deposits and expenses, using a bookkeeping system and consulting a tax professional to ensure you are correctly handling and paying taxes on your business.

5. Relying on a handshake.

In business, you can’t rely on promises.

For your own legal protection, it’s essential that your tenants sign a lease agreement to reside in your property and ensure that he or she understands the terms of the contract. If you run into problems with your tenant, you will need written, binding documentation such as a lease in order for the judge to make a ruling. Know your state’s laws regarding leases and ensure that you use an appropriate form for your state.

6. Asking illegal interview questions.

You don’t want to run the risk of giving a potential tenant sufficient grounds to sue you for discrimination by asking the wrong questions during the screening interview.

The Fair Housing Act of the Civil Rights Act of 1968 requires that you cannot deny a tenant’s application based on race, color, religion, national origin, sex, marital status, handicap or family status, (i.e. if they plan on having children).

7. Neglecting tenants.

The home(s) you are renting out are your responsibility. If you do not regularly check in with your tenants and on the condition of the property, you will have no one to blame but yourself if something goes wrong.

However, make sure that you are not violating your state’s laws regarding tenant privacy before stopping by the property unannounced. You may inadvertently give them the right to sue you or be released from the terms of your lease agreement.

8. Not meeting state and local housing codes.

As a landlord, you’re required to make sure the property meets health and safety standards. If you don’t take care of your end of the legal bargain, your tenants may have grounds to break the terms of your lease agreement, potentially sue you and even to be legally entitled to compensation for damage or injury due to your neglect.

9. Delaying an eviction.

Not beginning eviction proceedings as soon as legally possible can be a very costly mistake. If you run into problems with a tenant and are unsure about your rights or how to proceed, contact an eviction attorney as soon as possible.

10. Not enforcing lease terms.

If you outlined that late rent payments would incur a penalty, charge it. If you noted that no pets are allowed and your new tenant buys a Great Dane, enforce the penalty. If your tenants realize that you are lax about the terms of the lease, they will likely follow suit.

Set—and enforce—the standard you want upheld. continued on page 17

March/April 2014 MICHIGAN LANDLORD 7

RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

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Increase Productivity

Time-Saving Tips For Landlords Time management is a vital skill in property management. Without proper planning, it’s easy for time to get away from you.

Getting behind could mean taking days to catch up, with other tasks piling up in the meanwhile. So, you may wish to take your resident filling system to the next level to help you get work done in a more timely manner.

Take a look at all your business activities and how you can tweak your most time-consuming operations to open up more of your day.

Using outdated technology

Are you still relying on spreadsheets (paperwork) to keep track of your properties? Or a desktop computer from the ‘90s that freezes if you run more than two programs at once? By investing in the latest technology, you’ll save yourself the frustration of dealing with completely avoidable hiccups. Know the best programs that will help you run your numbers, manage your social media accounts, and keep track of your properties. Technology should help you do your job easily, not slow you down or drive you crazy.

Processing checks and paperwork manually

If you have 20 residents, processing checks, sending memos, and keeping track of resident files can eat up a lot of your time. Instead of having to stamp checks and mail notifications via snail mail, have residents pay rent online or directly at the bank. You’ll eliminate the time needed to process rent payments each month, as well as reduce the likelihood of late rent payments with the convenience of automation.

Using too many software programs

Do you find yourself jumping between all your different property management software programs to do accounting and tracking residents? An integrated software program will help you save time by eliminating duplicate information.

With everything in one place, you’ll also get a better picture of how your business is doing overall.

Jennifer Chan, article source: ZillowBlog.com, published in Clark County Rental Association, CCRAWA.org Editor’s Note: One way to effectively manage your properties is to use an online property management software such as Property Manager Cloud, which is a program that can be accessed from any computer, at any time. Easily manage everything from accounting to maintenance reports and more. You can try this service for FREE for up to 4 months.

Learn more at: onlinepropertymanagersoftware.com Reprinted from Mr. Landlord, Volume 28, #7.

Full service plumbing and drain cleaning

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RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

Mackinac Center Highlights

Failure of Land Bank to Address Blight The Mackinac Center has produced a video highlighting the failure of the Kent County Land Bank to address blight in Grand Rapids. The Land Bank worked out a deal and purchased tax foreclosed properties from the City of Grand Rapids before the properties went to public auction. The Land Bank avoided buying blighted properties and purchased marketable properties instead.

The data presented by the Mackinac Center clearly shows that the Land Bank is not focused on blight but rather is acting like a private real estate investment firm. The question then comes to mind: what is the Land Bank’s goal? Kent County Treasurer, Ken Parrish, comments in the video that the Land Bank is buying properties before the auction to prevent investors and others that might flip or simply rent out the properties without first making repairs and/or bringing the properties up to code.

The problem with the approach Parrish presents is that the properties the Land Bank has purchased could have easily been flipped or rented with little repair or rehab work. There was no danger of these properties remaining in disrepair—and they certainly weren’t blighted. The properties highlighted in the video make it clear that addressing blight is not the goal of the Land Bank but rather to gain control of who buys foreclosed tax property.

How far will governments go? Should we all be worried that Grand Rapids will step in and insist on approving all the buyers of real estate in the city? Will Grand Rapids insist on approving who can start a business in Grand Rapids? Will they want to approve our tenants? The precedent being set is very scary.

To view the Mackinaw Center’s video, go here. https://www.youtube.com/watch?v=HrmAicEc8JY

616.913.0069

working hard hard working you for our for clients At Beckett Property Management we seek to build long term relationships with our clients, residents and community.

Because we are family owned and owner operated, Beckett Property Management stands apart from other property management companies. Our owner mentality means we have our owner’s best interest at heart. We go above and beyond the call of duty to serve our owners. We understand what it means when a rent check isn’t paid. Our state of the art software system helps and allows us to be efficient, proactive and successful in all that we do.

Visit www.BeckettPropertyManagement.com for services available.

Getting Your Six-Year Rental Certs?

Members are reporting that sometimes they do not receive a six-year rental certificate of compliance in the City of Grand Rapids unless they specifically ask for it. After some investigation by the RPOA, we discovered that, indeed, some units were not certified for six years as they should have been. The City is now in the process of correcting these certs and reissuing new six-year certifications (from the date of certification). If you feel you should have received a six-year cert but didn’t, contact the inspector that issued your cert and ask them to review the case.

The requirements to receive a six-year certificate of compliance are: (a) The property has been owned by the same owner since the last certification. (b) The property has no recorded or verified violations since the last certification. (Not including nuisance violations.) (c) The property owner contacts the City for a Certificate of Compliance inspection within ninety (90) days prior to the expiration of the current Certificate of Compliance. (d) The property is registered prior to the expiration of the Certificate of Compliance. (e) No outstanding fees, taxes, or assessments are assessed against the property.

Wise landlords will request a cert inspection when they have a vacancy and just after they have completed all the repairs and have upgraded the property. The City of Grand Rapids takes inspection request—even if the current certificate hasn’t expired. Here are some upsides to having an inspection without tenants: • The unit is at its best condition.

• No struggles with obtaining permission from the tenant to enter the unit.

• Easier to schedule an inspection that fits your timetable.

• No chance of a tenant pointing out all the things they’ve broken during their tenancy and blaming it on you.

• No chance tenant will try to withhold rent due to things found by the inspector.

• No subsequent list of repairs—or very few.

• Verbal orders for repairs.

• Easy access to the unit to make repairs.

• Potential for a six-year certification.

Note: Since single-family units were not previously certified, a six-year certification is not available for the first certification process but will be available the next time certification is due.

If after reviewing a case an inspector denies you a six-year certification and you still believe you have met the criteria as outlined above, contact Virginia Million, Code Compliance Manager, at (616) 456-3053. Be sure to ask for a six-year cert during future inspections.

Requesting a Cert During a Vacancy A Good Thing There is no doubt that a rental certification inspection goes much smoother for all involved when the building is vacant.

1555 Plainfield NE Grand Rapids, MI 49505

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March/April 2014 MICHIGAN LANDLORD 11

WHERE LANDLORDS GO FOR HELP

RENTAL PROPERTY OWNERS ASSOCIATION

Solid Strategies = Solid Success It is not enough to merely list each task you need to do; you need to build the tasks into your schedule. So many hours each day should be dedicated to working on specific actions that will lead to accomplishing your definite objectives.

And finally, build in the monitoring mechanism that will help you keep track of your progress toward implementing your plan. It is one thing to have a “gutlevel feeling” that you must be doing something right because you are always working hard. But it is far better to design simple mechanisms to let you know precisely how much progress you are making.

Look for a few key indicators that will help you stay on track, and monitor those like a doctor would monitor the vital signs of a patient. It doesn’t matter how much activity is going on.

Solid Strategies = Solid Success Success results from a solid strategy.

Even the greatest ideas are of little value unless they are backed up by a practical and workable plan of action.

The word strategy comes from an ancient Greek term that literally means to be a general, leading troops into battle. Setting up a good strategic plan involves five steps: The first step is to translate your vision into measurable and achievable goals. You decide specifically what you want to accomplish during the next five to ten years— those are your long-range goals. Next, you break those goals down into intermediate goals—things you want to accomplish during the next six months or year. Then you break them down further into short-term goals covering the next month or six weeks.

The second step is to break your goals down into achievable objectives. Dr. Robert Schuller says, “Yard

by yard life is hard, inch by inch it’s a cinch.” Working by objectives help you concentrate on what’s important, instead of spinning your wheels on those things that seem urgent but don’t lead to your long-term goals.

Objectives add purpose and direction to all your activities.

What matters is how successful you are in achieving your objectives.

One good example would be that you would target to connect three people each day to generate new business. At the end of the day, you’d know whether you have achieved that goal. Your plan is not complete until it has been communicated satisfactorily to every person in your organization who must help to implement it.

Source: Dr. Nido Qubein, KI Tech Tips, Nov. 2013

The third step is to set up your strategies for accomplishing your objectives. Strategies are the specific ways you will go about achieving your objectives. The more clearly thought-out they are, the more effective they will be.

Fourth, you choose each task you must accomplish each day to achieve your goals. This is where most planning breaks down. We tend to leave it vague—thinking that, as long as we are working hard all the time, we are achieving our goals. Most people I talk with are extremely busy—and most of them are working hard to do things right. The problem is they are not doing enough of the right things—the things that will help them achieve their goals.

March/April 2014 MICHIGAN LANDLORD 13

RENTAL PROPERTY OWNERS ASSOCIATION

Check out the discounts being made to RPOA members only:

Member-to-Member Discounts: $$$aving you dollars!

Amera Mortgage Free appraisal for 1 to 4 family unit homes with closed loan application for RPOA members only. Jim Riley, 616-292-4491.

Bender Maintenance & Home Improvement 10% off hourly rate for RPOA members.

Property maintenance, general repairs; prepare property to rent at acquisition; inspection compliance for Section 8, City of Grand Rapids. General Contractor, Certified Lead Renovator, RPOA Member.

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Landscaping includes all yard work.

Handyman ser vices include basic plumbing, electrical; drywall, painting, window and door repair. 10% discount on labor. Call Dina, CEO, 616-252-9220, Mitchell, 616-710-9080.

Grand Rapids Carpet & Furniture Cleaners RPOA Members receive 25% discount!

Call Dave, 616-453-5368.

Hungerford, Aldrin, Nichols & Carter, PC Free initial consultation on tax, accounting, and consulting services to RPOA members. Contact Kyle Sischo at 616-949-3200.

Indoor Climate Solutions Offering all RPOA members Grand Rapids heating inspection stickers for $40.00 each and 5% discount on repair or replacement of any HVAC equipment.

Over 40 years experience servicing and installing furnaces, boilers, air conditioning. 616-891-HEAT (4328)

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JB Harrison Insurance Agency Independent agents representing several companies (Auto-Owners, AAA, Citizens, Hastings, Hartford, Pioneer State Mutual, Progressive). We do the shopping for you. Group discounts available for RPOA members. Call Mike Murphy at 616-8680050 for details.

Jeff Lamborne Agency We represent several companies. We shop them for you. Group discounts available. Call Jeff Lamborne for details. 616-447-0274.

Koetsier Realty LLC Up to $500 off listing services to RPOA members. Call Tom, 616-550-4447.

Pawlowski & Reens, PLC, Attorneys at Law Discounted fees and free limited phone consultation on any legal issue. 616-4587800. republic Waste removal services Exclusive RPOA discount! $11/month for 96 gal. cart. Call Jeff Nienhuis at 616-3085760.

RMS LLC Towing of abandoned and improperly parked cars on your property. Offering to RPOA members at no cost. Free signage for RPOA members if required by State of Michigan laws. Call 616--475-9836 or email impounds@rmsonline.us.

RPOA is now a member of Prosource Wholesale Floorcovering!

Come to Prosource at 1575 Gezon Parkway, Suite A in Wyoming, and receive 50% off carpet, pad and sheet vinyl and 30% off all hard surface. Show us your membership card! Call Peggy, 616-257-3200.

Rylee’s Ace Hardware 10% discount on cash purchases. Some restrictions apply. Offer valid at Grand Rapids & Walker locations.

RPOA WANTS TO GIVE YOU $100 AND A CHANCE TO

WIN A CRUISE!

Sun Rentals Pay cash and receive 15% off any rental, any time. 616-454-7982.

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West Michigan Pro Clean WMPC is ready to handle your cleaning needs by offering move-in/move-out, carpet, post-construction, and general commercial cleaning. RPOA members receive a 20% discount on their first cleaning. Call 616-299-1757 or email wmp rocl ean @ yahoo.c o m fo r FREE estimate.

Associate members who would like to participate in the discount program should call Kathy Rozenek at 616454-3385.

Patronize one of our Associate members participating in the Memberto-Member Discount Program!

RPOA Membership Drive

January 1 - February 21, 2014.

For every new member you refer that joins during the membership drive, you will be PAID $100 and be entered into a drawing for a FREE CARIBBEAN CRUISE FOR 2 with the National Real Estate Investors Association (NREIA)*.

Everyone benefits from being a member of the RPOA. Encourage other landlords you know to support the RPOA’s legislative efforts and take advantage of all the great benefits and services.

New members receive an 18 MONTH MEMBERSHIP for the price of 12 MONTHS. What a great opportunity to invite others to support and join over 1,400 landlords in the benefits and services of the RPOA. - Additional prizes will be offered for 2nd and 3rd drawings - Approximate value of the cruise for two is $1,790 - Non RPOA members may participate in the Membership Drive * In the unlikelihood that NREIA does not have a 2015 cruise, a different Caribbean cruise package will be substituted at the discretion of the RPOA. Transportation and other expenses incurred to and from the port of departure are not included. Drawing will be held during the Annual Membership Meeting at the Annual Conference on Friday, February 28, 2014.

WHERE LANDLORDS GO FOR HELP Call: 616-454-3385 Visit our website: www.rpoaonline.org

RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

11 Mistakes Inexperienced Landlords Make

continued from page 7

11. Not writing it down.

It’s essential that you keep written documentation of interactions with your tenants in the event that you ever need to take him/her to court. Note phone conversations and keep copies of emails, voicemails or text messages, etc. to be able to support your allegations.

If you are unsure about how to successfully start your career as a landlord or fear that you may not have the time necessary to perform the job well, consider working with a professional property management company. Interview several companies, check out their backgrounds and references and ensure that, like your tenants, you understand and agree to the terms of a contractual relationship.

[Editor’s Note: You can’t make the same mistake twice. The second time you make it, it’s no longer a mistake—it’s a choice. Anonymous.}

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Top 9

Online Property Management Services TopTenReviews has rated the following online property management services within the top 10.

1. Propertyware 2. AppFolio Property Manager 3. Buildium Property Manager 4. Rent Manager Online 5. Point2 Property Manager 6. Promas Landlord Essentials 7. RenTec PM 8. Smart Property Systems 9. IRealty Manager Essential For a complete review and a detailed comparison, go to http://online-property-management-review. toptenreviews.com/

March/April 2014 MICHIGAN LANDLORD 17

RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

Lead-Safe Class Still Important!

Any landlord that hasn’t completed their course in lead-safe work practices required by the EPA still has the opportunity to do so.

Check out the listing of upcoming courses at www.rpoaonline.org.

Local Fair Housing

News

Traverse City, MI — In May 2013, the Center received a complaint from a client and her adult granddaughter alleging unlawful discrimination on the basis of familial status.

The client and her granddaughter lived in a two-bedroom apartment within an 18-unit apartment complex in Traverse City, MI. The client’s granddaughter was expecting her first child in August 2013. The client alleged that her landlord, after learning of the pregnancy, had told her that they would all have to move out of the complex after the baby was born because, as the landlord stated, “We can’t have babies here.” The landlord allegedly then began repeatedly asking the client when she would be moving out, and also told other residents that the client would be moving after the baby was born.

as housing for older persons, doing so insufficiently, and also that the landlord did not have any age verification procedures. Further, investigation revealed that the landlord had illegally discriminated against families with children in order to achieve the proportion of seniors within the complex.

The case settled in October 2013, allowing the client, her granddaughter and her newborn son, to stay in the apartment. The landlord must provide compensation to the client and her granddaughter, comply with fair housing regulations, and attend fair housing training.

Reprinted from FHCWM Notes & News.

Fair Housing Center of West Michigan 20 Hall Street S.E. Grand Rapids, MI 49507 T: (616) 451-2980 or 1-866-389-FAIR F: (616) 451-2657

The Center’s investigation and casework supported the client’s claim of familial status discrimination and a case was ultimately filed with the Michigan Department of Civil Rights. The landlord answered the complaint by alleging that she operated a senior community and was thus allowed to discriminate against children. However, investigation revealed that, although most residents were seniors, the landlord had only recently begun stating an intent to operate

Advertisers: The deadline for submission of and payment for ads is noon on the 15th day of the month for the following month’s newsletter. Contact RPOA Ad Salesperson, Tom Koetsier, at 616-550-4447 to reserve your Ad space today!

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March/April 2014 MICHIGAN LANDLORD 19

ANNUAL CONFERENCE GUIDE and EVENT SCHEDULE

RENTAL PROPERTY OWNERS ASSOCIATION

How to Earn an

Easy $100 and Win a Caribbean Cruise for Two

WHERE LANDLORDS GO FOR HELP

How do you earn an easy $100 and have a chance to win a Caribbean Cruise?

February 27 - March 1, 2014

It’s simple: Find one landlord that isn’t a member of the RPOA and encourage them to join, follow up to make sure they join and make sure the new member uses your name and member number as the referral!

Once the member joins, we’ll cut you a check for $100 and enter you in a drawing to win a Caribbean Cruise for two in early 2015 with the National Real Estate Investors Association*. Bonus: We’ll enter your name in the drawing for each person that you refer that joins!

RPOA’s President, Ann Finkler, believes avidly in the benefits of the RPOA and believes every landlord should be a member. She’s certain that other members feel the same way and are the best people to encourage other landlords to join. “Every landlord benefits from the RPOA regardless of the number of properties they own or whether or not they are full or part-time landlords. The RPOA not only provides benefits such as tenant screening and forms but it also fights the good fight for landlord’s rights. Joining the RPOA is an investment in your business.”

DeVos Place

Register Before February 1, 2014 and Be Entered to Win a Free Flat Screen T.V.!

Must be present to win.

River Overlook Rooms 303 Monroe Ave. Grand Rapids Michigan

FREE!

3 Full Days!

10th RPOA Annual Conference & Expo

Biggest Landlord & Real Estate Investor Conference in Michigan

It’s simple to refer potential members! Simply have them go online to the RPOA website at www.rpoaonline.org and click Join. Or, you can have them call the office and we can get them set up instantly with a membership. If they use a credit or debit card, processing is even faster.

The membership drive runs from January 2 through February 21, 2014. Prizes for the drawing will be awarded at the RPOA Annual Conference running from February 27 through March 1, 2014.

David H. Bigelow RPOA Member

Bus: 616-453-5368 Cell: 616-822-4710

John Hyre

Shaun McCloskey

Chris McClatchey

Andrew Cordle

Tax Free Real Estate Investing

Short Sale & Wholesaling Wealth Building Strategies & Techniques

Power of Zero: Developing a Multi-Million Dollar Real Estate Portfolio

Maximizing Rental Cash Flow & Creating Debt Free Properties

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Full Day Event with Mr. Landlord - Jeffrey Taylor Create a Goldmine: Take Total Control of Your Rentals

RPOA members receive a 25% Discount 20

Sponsored by: Window World • Koetsier Realty LLC • Culver CPA Group Landlord’s Supply LLC • DTE Multifamily Program

WIN A FREE HOUSE from Andrew!

register at www.rpoaonline.org

NATIONAL SPEAKER COURSE DESCRIPTIONS THURSDAY, FEBRUARY 27, 2014, 10:00 A.M. – 4:00 P.M. Create a Gold Mine: Take Total Control of Your Rentals Jeffrey Taylor (aka Mr. Landlord) Don’t miss the drawing for a FLAT SCREEN TV during Jeffrey’s session.

Spend the day with Jeffrey Taylor! Jeffrey has consistently delivered some of the most valuable content on landlording, increasing profits and cash flow. His extensive experience has helped 1,000’s achieve their real estate dreams. He is also known for his Mr. Landlord monthly newsletter and website. This is a unique opportunity to spend five hours with Jeffrey. You won’t want to miss a minute! He’s not only a proven expert that can deliver he delights his audience with very real and often entertaining anecdotes.

After this session you’ll be motivated to take on the world of landlording and succeed! Jeffrey Taylor says “I challenge you to join me at this upcoming conference and spend time with me to learn how to run—better yet—to learn how to MANAGE your rentals like a BUSINESS, whether you have one or two rentals or more. Let me help you learn how to manage your rentals so that they run successfully with or without you physically on the scene. And as a result, you increase your time, personal freedom, and financial freedom, which are the “Bigger Picture” goals that most of us got in this business for in the first place.”

THURSDAY, FEBRUARY 27, 2014, 4:00 – 5:00 P.M. Welcome Cocktail Reception – Cash Bar

FRIDAY, FEBRUARY 28, 2014, 10:00 A.M. – 12:00 P.M. Tax Free Real Estate Investing, John Hyre John Hyre, a tax attorney, accountant and real estate investor, has mastered cutting investors’ tax bills to an absolute minimum! John knows your pain and his approach uses aggressive—legal—techniques to save investors thousands. His delivery uses just the right amount of seriousness and funny to make it engaging and informative.

In his course you’ll learn: • How to keep your books and stop overpaying your tax preparer • How to save thousands of dollars on professional fees

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• How to do the books right and get the deductions you deserve • How to break out certain assets and increase depreciation deductions • How to get tax savings of up to $2,000 to $6,000 per year • How to take the deductions and avoid IRS penalties • How to keep your books so you can survive an IRS audit • How to train your accountant (if you use one) to do it RIGHT • And much, MUCH more

BREAKOUT SESSION COURSE DESCRIPTIONS FRIDAY, FEBRUARY 28, 2014, 9:00 – 9:50 A.M.

Successful Real Estate: An Idea-A-Minute, River Overlook D

Wholesaling & Short Sale Wealth Building Strategies

Surviving City Rental Inspections, River Overlook A/B

and Techniques, Shaun McCloskey

There’s an art to working through the inspection process to ensure you are treated fairly. This course will be taught by experienced landlords and property managers in the Grand Rapids, Wyoming and Kentwood areas.

You’ll learn what’s covered in an inspection and the get an overview of the codes. But, more importantly, learn how to plan ahead for an inspection and work with inspectors, department supervisors and appeal boards.

Introduced at last year’s conference, this fast-paced idea sharing session was very well received. Everyone has a new idea or twist on an old idea that can be beneficial to someone else. Investors from all experience levels can gain by learning from others in the business. Each attendee gets one minute to share their great idea.

FRIDAY, FEBRUARY 28, 2014, 1:30 P.M. – 3:30 P.M.

The time for real estate investing is now! And, Shaun, a successful real estate investor, truly understands the wide margin of difference between someone who “tries” to do real estate investing and wholesaling and someone who makes an absolute killing at it. He “walks the walks” and not just “talks the talks”. Shaun will share his strategies and techniques that have allowed him to achieve his dream of a “Lifeoniare.” He’ll show you how easy it is to achieve prosperity and success. It starts with getting on the right path and then following a simple plan down that path. He’ll show you how to do all this without debt and without allowing your real estate investment activities to take over your life.

Select Exhibitors will provide information and training in their area of expertise. Check the schedule at the conference.

Working with a Licensed Real Estate Salesperson, River Overlook D

SATURDAY, MARCH 1, 2014, 10:00 A.M. – 12:00 P.M. Power of Zero: Developing a Multi-Million Dollar Real Estate Portfolio, Chris McClatchey Chris prides himself on the ability to “Educate highly qualified individuals on how to build multi-million dollar real estate portfolios using creative financing techniques, private lenders, partnerships and retirement accounts”. He has developed a systematic approach to investing, which involves leveraging technology to ‘create more hours in the day’. Chris is known for his ability to make automation a luxury that everyone can understand and utilize in their own business. Chris will share his “Power of Zero” technique on how he purchased 80 rental units, valued over $5 million dollars, with no money down and/or 0% seller financing! He was able to retire at the age of 48 with over 90 free and clear properties, and he’s going to teach you how it can be done!

Many investors think the only way to buy a property and get a deal is to exclude a licensed real estate salesperson. This course will show you just how wrong that can be. Finding a real estate salesperson that can birddog properties for you in your neighborhoods or interest and see a deal when they know it can be invaluable. A real estate salesperson can also save you lots of time and paperwork. Learn how to work with them to be successful and increase profits.

Maximizing Rental Cash Flow & Creating Debt Free Properties, Andrew Cordle Win a FREE HOUSE from Andrew!

Sign up at the Financial Momentum Exhibit.

Must be entered into the drawing and in the room to win!

You’ll learn: • The Cash flow formula- Building Wealth through proven real estate investment strategies.

Technology for Real Estate Investors, River Overlook F Each year we provide a course on the latest technological developments that can keep investors on the cutting edge. This course will cover software, social networking, smartphones and use of online tools.

SATURDAY, MARCH 1, 2014, 8:00 – 9:50 A.M.

Nothing is more frustrating than working with contractors who don’t get the job done, fail to show up or do a poor job. If you’ve struggled with finding and keeping good contractors or don’t even know where to start, this course will provide you with the skills and information needed to get the job done right—the first time.

Fair Housing: How to Stay Out of Hot Water, River Overlook A/B

Once you buy casualty insurance you’re good to go—right? Probably not! Experts from WesternStar Insurance will provide an overview of the various types of exposure landlords and real estate investors face and the insurance products available to them to cover their risk.

2 Hours of CE Credit!

Fair housing guidelines, laws and rules seem easy to understand at first but there are many nuances that get landlords caught up in infractions, fines and penalties. Learn from the experts at the Fair Housing Center of West Michigan about the specifics of the local, state and federal fair housing laws and how rental property owners are tested to ensure compliance.

Exhibitor Courses, River Overlook C Select Exhibitors will provide information and training in their area of expertise. Check the schedule at the conference.

Technology for Landlords, River Overlook D

FRIDAY, FEBRUARY 28, 2014, 3:50 – 5:30 P.M. Andrew Cordle, the founder of Financial Momentum, began in Real Estate just over ten years ago. His first rehab was the spark that ignited Andrew’s passion for flipping. His business formula enables Andrew to continue to buy, rehab, and sell properties for capital and use the capital to purchase CASH FLOW producing properties. Andrew will teach you how to create momentum in your finances and gain speed to live the life that you want.

2 Hours of CE Credit!

How do those investors drive by a house and know how much to offer? Is the asking price fair? How much can you afford to put into rehab and still get a good return on investment? What should you offer? What seller concessions should you ask for? Whether an investor does the calculations in their head, on paper or a computer, they are very likely using a similar formula and approach. Learn how to calculate return on investment and how much to offer and put into rehab using an APOD.

How to Find & Keep Quality Contractors, River Overlook E

Insurance: Protecting Your Valuable Assets, River Overlook F SATURDAY, MARCH 1, 2014, 1:30 – 3:30 P.M.

Self-Directed IRA’s for Bigger Profits, River Overlook A/B 2 Hours of CE Credit!

So you’ve found a great deal and did a smart rehab and sold it for huge profits…then the tax man cometh. Taxes are the bane of every investor.

Learn how you can use your traditional or Roth IRA to earn profits tax free. Self-directed IRA strategies should be in every investor’s portfolio—especially if the investor plans to retire on their real estate investment income.

Each year we provide a course on the latest technological developments that can keep landlords on the cutting edge. This course will cover software, social networking, smartphones and use of online tools.

Don’t Do What I Did! Avoid Making Big Mistakes, River Overlook E Ever wonder what got other investors in hot water? Learn from a panel of landlord and investor experts and from those in the audience that are willing to share what their biggest mistakes have been. Hindsight is truly 20/20.

Fixing to Flip or Rent: How Much is Enough?, River Overlook F

Exhibitor Courses, River Overlook C

• Cash flow IS the foundation of any successful business.

One of the first questions many new investors ask is how much do I need to rehab a unit to flip or rent it? Learning the old fashioned way—by making mistakes—can put a pinch in your wallet and kill a deal. This course will help you determine how much you can spend on a deal to maintain your return on

• Learning the downfalls of Capital Gain ONLY investing.

investment and not over-rehab.

• Running your Real Estate investing like a real business.

WHERE LANDLORDS GO FOR HELP

Exhibitor Courses, River Overlook C

Determining How Much to Offer to Maximize Profit, River Overlook E

• The essential elements for developing, analyzing, and managing your cash flow.

Select Exhibitors will provide information and training in their area of expertise. Check the schedule at the conference.

EVENT SCHEDULE

WHERE LANDLORDS GO FOR HELP

THURSDAY, FEBRUARY 27, 2014 10:00 a.m. – 12:00 p.m.

Jeffrey Taylor (aka Mr. Landlord), Take Total Control of Your Rentals (Part 1)

12:00 p.m. – 1:00 p.m.

Lunch On Your Own, (Lunch Vendor Onsite, 2nd Floor, Near Escalator)

1:00 p.m. – 4:00 p.m.

Jeffrey Taylor (aka Mr. Landlord), Take Total Control of Your Rentals (Part 2)

4:00 p.m. – 5:00 p.m.

Welcome Cocktail Reception, River Overlook Area

Win a Free Flat Screen T.V.

Drawing will take place during Jeffrey Taylor’s session

FRIDAY, FEBRUARY 28, 2014 7:30 a.m. – 5:00 p.m.

Registration, North End of River Overlook Area

8:00 a.m. – 5:30 p.m.

Exposition Open, River Overlook Area

8:00 a.m. – 5:30 p.m.

PAC Auction, River Overlook North End

9:00 a.m. – 9:50 a.m.

First Breakout Sessions

FRUSTRATED

Stop overpaying for property taxes.

Let us act as your agent to appeal your property tax assessment.

• Property taxes are your biggest expense. Don’t overpay.

• Increase cash flow by decreasing expenses.

• Keep more money in your pocket.

• Surviving City Rental Inspections • Working with Licensed Real Estate Professionals • How to Find & Keep Quality Contractors • Insurance: Protecting Your Valuable Assets 10:00 a.m. – 12:00 p.m.

John Hyre, Tax Free Investing, Overlook Meeting Room A & B

12:00 p.m. - 1:00 p.m.

Lunch with Exhibitors, Overlook Area (Lunch Vendor Onsite, 2nd Floor Near Escalator)

1:00 p.m. – 1:20 a.m.

RPOA Annual Membership Meeting with CARIBBEAN CRUISE GIVEAWAY!, Overlook Meeting Room A-B

1:30 p.m. – 3:30 p.m.

Shaun McCloskey, Short Sales & Wholesaling Wealth Building Strategies & Techniques,

Win a Caribbean Cruise!

During the Annual Membership Meeting

Overlook Meeting Room A & B 3:50 p.m. – 5:30 p.m.

by High Property Tax Assessments?

Second Breakout Sessions

We offer free, no obligation evaluations of your property to help determine your chance for success in appealing your property tax assessment. We will represent you and handle the necessary paperwork and attend the hearings. We prepare a comprehensive analysis, informational packet, and evaluation to support the true cash value of your property. This evaluation will include a property visit with photographs, market analysis, and comparable sales data to present at the Board of Review hearing. Property taxes can be appealed anytime you believe the assessed value of your property is overstated.

• Self-Directed IRA’s

Over the past 10 years, we have experienced an 85% success rate in achieving at least some relief from inflated assessed values.

• Successful Real Estate Investing: Idea-a-Minute • Determining How Much to Offer to Maximize Profit • Technology for Real Estate Investors

Call now to receive special RPOA discounted pricing.

SATURDAY, MARCH 1, 2014 7:30 a.m. – 1:30 p.m.

Registration, North End of Overlook Area

8:00 a.m. – 6:30 p.m.

Exposition Open, Grand Gallery Exhibitor Hall

8:00 a.m. – 3:30 p.m.

PAC Auction, River Overlook North End

8:00 a.m. – 9:50 a.m.

Breakout Sessions

Gold Sponsor – RPOA 2014 Annual Conference

• Fair Housing: How to Stay Out of Hot Water • Technology for Landlords • Don’t Do What I Did! Avoid Making Big Mistakes • Fixing to Flip or Rent: How Much is Enough 9:50 a.m. – 10:00 a.m.

Official Welcome & Main Sponsor Presentation – David Phillips

10:00 a.m. – 12:00 p.m.

Chris McClatchey, Power of Zero: Developing a Multi-Million Dollar Real Estate Portfolio, Overlook Meeting Rooms A & B

12:00 p.m. – 1:00 p.m

Lunch with the Exhibitors, Overlook Area (Lunch Vendor Onsite, 2nd Floor, Near Escalator)

1:00 p.m. – 1:30 pm.

EXHIBITOR PRIZE GIVE-A-WAYS

1:30 p.m.

PAC Auction Closes

We are available to answer questions:

HOUSE GIVE-A-WAY! During Presentation, Overlook Meeting Rooms A & B (Must be in the room to win.)

1:30 p.m. – 3:30 p.m.

Andrew Cordle, Maximizing Cash Flow for Rentals and Creating Debt Free Properties, Overlook Meeting Rooms A & B

Win a FREE HOUSE!

During Andrew Cordle’s session.

Register at the Financial Momentum Exhibit

WHERE LANDLORDS GO FOR HELP

Contact Tom at 616-550-4447 or tkoetsier@grar.com Visit us at booth #15 at the RPOA Annual Conference.

Attend Tom Koetsier’s Property Tax Assessment Appeals Class on Saturday, February1st at 9 am at the RPOA Office

* The schedule is subject to change and is at the discretion of the RPOA.

Sponsored by: Window World • Koetsier Realty LLC • Culver CPA Group Landlord’s Supply LLC • DTE Multifamily Program

March/April 2014 MICHIGAN LANDLORD 25

RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

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procedures & prices RPOA & REI Decision Report request

Please follow the procedures below when requesting decision reports from the RPOA: ❑❑ When possible, please use the RPOA Decision Report Request Form and fax it to the RPOA office at 616-454-6163 OR send us an e-mail with the same information to: contactrpoa@rpoaonline.org. (DO NOT fax applications to us.) ❑❑ You must have the following minimum information to run a report: • First and last name of prospective tenant(s).

• Current address of the prospective tenant, including street with number, city, state and zip code.

• Social Security Number.

• Date of Birth • Your RPOA member #, name of membership, and an indication on how you would like the completed reports handled, i.e. faxed back to you (if so, provide the fax number), or you will call the office for the report, or you will pick up the report in person. ❑❑ WAIT AT LEAST THREE (3) HOURS before contacting the RPOA office for your reports. Though we can sometimes get reports done quicker, there are many things out of our control that can interfere with this process, including but not limited to credit reporting agency computer problems.

• Contact us for your decision report results promptly. For reasons of confidentiality we shred all reports after 3 days.

Other guidelines for decision reports: • You cannot run a decision report on yourself.

• You can only run a decision report on another family member if you are doing a business transaction with that person that is related to real estate or rental property.

• You cannot run a decision report for another business person, real estate agent or landlord. Your credit reporting privileges through RPOA extend only to your personal business.

• You can only run a decision report for a legitimate business transaction where credit is required. These transactions include owner financed real estate, leasing, collections and land contracts.

• You must follow all the rules and regulations of the Federal Fair Credit Reporting Act. A copy of this Act is available at the RPOA. • You must give a person denied housing or financing because of information contained in a credit report a notice to that effect.

Examples of notices that you can use and what needs to be included in the notice can be found in the RPOA office; or log on to the RPOA website (www.rpoaonline.org) and go to Tenant Screening.

report Prices (as of January 15, 2014) Single: $14.95 Double: $24.95 Criminal Report: $7.00 each

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March/April 2014 MICHIGAN LANDLORD 27

! s u n i o J

Upcoming Seminars and Events

Held every Friday, 8–9 a.m.

Cheshire Grill / 2162 Plainfield NE, Grand Rapids, MI

HELPING REAL ESTATE INVESTORS BECOME MORE SUCCESSFUL

REGISTER BY CALLING 800.701.7762 OR EMAIL CONTACTRPOA@RPOAONLINE.ORG

Mar. 6, 2014 • 6:00 p.m. to 8:00 p.m.

Apr. 29, 2014 • 10:00 a.m. to 12:00 p.m.

Home Inspections - CE, PHP

Understanding Leases & Contract Law

Con-Ed Approved Class for Realtors. Earn 2 hours!

Presented by Steve Brinks, Professional Housing Inspector

Con-Ed Approved Class for Realtors. Earn 2 Hours!

Presented by Bill Reens, Attorney at Law

estate professionals can benefit immensely by understanding how their clients can best benefit from different real estate investment and exit strategies. Starting early and developing the right plan can produce the results you or your clients need to retire in style!

Recognizing what to look for in terms of damage and cosmetic issues—and knowing the difference—is knowledge every investor needs. Most of us are not professional contractors and need help determining what kinds of repairs are needed or when a property is beyond repair. Steve teaches you how to analyze a property from top to bottom.

Thinking of writing your own lease? Confused about the terminology used on a lease? Bill Reens will provide a foundation of the requirements for leases in the State of Michigan.

Participants learn about what can and can’t be in a lease, how tenants can walk away from a lease, and more.

Mar. 13, 2014 • 8:00 a.m. to 5:00 p.m. 8-Hour Class

Renovation, Repair & Painting

The course will include, but not be limited to: • Determining when and how much you’ll need to retire • Maximizing your wealth from your real estate business and investments • Reinvesting real estate profits to increase wealth • Choosing the best transition option(s) • Reducing or eliminating taxes and expenses • Avoiding costly mistakes and leaving money on the table • Protecting your assets and minimizing risk • Passing on your wealth and leaving a legacy • Building a roadmap to success & security.

May 1, 2014 • 6:00 p.m. to 8:00 p.m.

Financing 101: The Basics - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours!

Presented by Brian Zeemering, Licensed Real Estate Salesperson, Mortgage Broker & Investor

Richard TenHoor, Certified Lead Safe Work Practices Trainer, Landlord and RPOA Member, will teach lead-safe work practices in a comprehensive session. Not knowing how to work in a leadsafe manner can expose your rental business to liability. The EPA now requires all landlords to use lead-safe work practices and be certified under the new RRP rules.

There is a lot of lingo in the financing business. Brian Zeemering helps you understand what it means and how to secure and manage financing.

May 20, 2014 • 10:00 a.m. to 12:00 p.m.

Future dates:

March 26, 2014

April 17, 2014

April 30, 2014

May 8, 2014

June 11, 2014

July 23, 2014

August 21, 2014

Landlord-Tenant Law: Avoiding Fines & Penalties

8 Hour CE; 8 Hour Construction Credit Limit: 6. Call RPOA for pricing.

Apr. 15, 2014 • 10:00 a.m. to 12:00 p.m.

Evictions Made Simple - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours legal!

Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director Ready to pull your hair out with a difficult or non-paying tenant?

Clay will show you how to quickly (and legally) evict troublesome tenants.

May 6, 2014 • 6:00 p.m. to 8:00 p.m.

Con-Ed Approved Class for Realtors. Earn 2 hours!

Presented by Bill Reens, Attorney at Law There’s more to managing rental property than meets the eye.

Bill Reens, Attorney at Law, will present Michigan landlord-tenant laws in an easy-to-understand session.

May 15, 2014 • 2:00 p.m. to 6:00 p.m.

Retiring from your real estate career in style: Exit strategies for the real estate industry The Rental Property Owners Association (RPOA) is proud to host Mark Andresky, Certified Exit Planner, Real Estate Broker and Investor, who will share proven strategies to turn your real estate investments and business into a reliable stream of income that will last a lifetime. It’s never too early or too late to think about how you’re going to build wealth and plan for retirement. Real

All events are held at the RPOA office unless otherwise noted.

Cost: $25 Gold members, $35 Silver members and non-members unless otherwise noted.

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Real Estate Investors (REI) Friday Morning Breakfast Roundtable

CE = CERTIFIED COURSE FOR REAL ESTATE CONTINUING EDUCATION PHP = PROFESSIONAL HOUSING PROVIDER CREDIT

To be held at: RPOA Office, 1459 Michigan St. NE, Grand Rapids, MI 49503 Cost: $49 / $69

Marketing & Screening for Paying Tenants - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours!

Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director Clay presents a thorough look into getting your apartments rented by using different marketing strategies. This course covers the essentials needed to find and attract the best possible tenants.

The participants will learn a wide variety of marketing strategies and methods for screening tenants to obtain the greatest profit.

Jun. 6, 2014 • 6:00 p.m. to 8:00 p.m.

Buying & Selling Real Estate for Profit Con-Ed Approved Class for Realtors. Earn 2 hours!

Presented by Tom Koetsier, Real Estate Investor & Broker It is important to understand the rules and laws of real estate investment, whether you are a current owner or considering entering the market! There are many pitfalls and problems that can arise in real estate investment: learn how to avoid complications and difficulties while saving money in the process.

Join Tom Koetsier, RPOA Board President and experienced real estate investor and broker, as he eliminates the mystery from purchasing real estate. Through his class you will learn how to KEEP IT LEGAL AND PROFITABLE as you negotiate inspections, title work, transfer taxes, and other important real estate transactions.

Don’t lose time or money by not being properly educated about investing!

Jun. 10, 2014 • 10:00 a.m. to 12:00 p.m.

It’s All About the Numbers: APOD 101 - ce Con-Ed approved Class for Realtors. Earn 2 hours!

Presented by Russ VandenToorn, Realtor, Property Manager & Investor Do you know all the different kinds of returns from investment in real estate and how they are calculated? This course will help both realtors and investors to understand, analyze, and complete the key elements of the Annual Property Operating Data form.

continued on page 30 May 29, 2014 • 6:00 p.m. to 8:00 p.m.

Protecting Your Assets - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours!

Presented by Bill Reens, Attorney at Law As a landlord, do you know if you’re protected from vandalism, damage from burst pipes, or injuries resulting from environmental sources such as mold? Will your personal assets be protected from claims and creditors in a financial crisis? If you would like to know the answers to these questions, or have other questions about your legal rights and responsibilities as a landlord, this course is for you!

Join Bill as he explains how to best protect your valuable assets from claims, lawsuits, and other un-doings.

RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

Upcoming Seminars and Events continued from page 29 Jun. 12, 2014 • 10:00 a.m. to 12:00 p.m.

Jul. 8, 2014 • 10:00 a.m. to 12:00 p.m.

Self-Directed IRA’s - CE

Foundations of Buying, Leasing and Selling Rental Property - CE

Con-Ed Approved Class for Realtors. Earn 2 hours!

Presented by Mark Andresky, CExP, ABI, CBI Learn how to use self-directed IRA’s to finance real estate deals while increasing profits and avoiding taxes.

Jun. 19, 2014 • 9:00 a.m. to 12:00 p.m.

Successfully Selling HUD Homes in Michigan - CE Con-Ed Approved Class for Realtors. Earn 3 hours!

Presented by Michael Childress, Licensed Realtor, HUD Certified Dealer Class includes current HUD Changes & Updates as well as:

• About HUD Homes — FAQs

• Bidding and Submitting Offers

• Sales Contracts

• Special Programs & Incentives

• Broker Registration Process

• Questions & Answers Cost of class: TBA Register soon! Limited seating!

June 24, 2014 • 6:00 p.m. to 8:00 p.m. (Part 1); and June 26, 2014 • 6:00 p.m. to 8:00 p.m. (Part 2)

Rehabbing for Profits - ce, php Con-Ed Approved Class for Realtors. Earn 2 Hours!

Presented by Darrell DeWard, Real Estate Investor and Landlord Darrell will teach various methods for determining the value of a property, developing repair budgets, accounting for hold and transaction costs, and calculating ROI. Part 2 of this seminar is on Thursday, June 26. Participants will be going on site at an investment property.

Cost: $50 / $70

Con-Ed Approved Class for Realtors. Earn 2 hours credit!

Presented by Clay Powell, Licensed Real Estate Salesperson & RPOA Director The class will provide a complete overview of the entire rental business—from buying a property through management and selling. Some of the points to be covered in the course include: • Proper due diligence before buying or turning your existing home into a rental property.

• Federal, state and local regulations regarding rental property ownrship and management.

• Methods for effective management, including tenant screening, dealing with problem tenants, evictions and more.

• Setting rental rates and effectively advertising rental property.

• Proper forms to use for leasing.

• What to do before selling a rental property.

Aug. 14, 2014 • 9:00 a.m. to 1:00 p.m.

Creating Wealth with Seller Finance - CE Con-Ed Approved Class for Realtors. Earn 4 hours credit.

Presented by Brian Zeemering, Licensed Real Estate Salesperson, Mortgage Broker & Investor If you’re in real estate—whether a licensed real estate professional, real estate investor or landlord—understanding seller financing is huge. Brian Zeemering will share his wealth of knowledge on putting together land contracts, leases with options, and more.

Aug. 19, 2014 • 10:00 a.m. to 12:00 p.m.

Appraising: The Inside Scoop - CE, PHP Con-Ed Approved Class for Realtors. Earn 2 hours!

Presented by Kim Post, Licensed Appraiser & Investor Learn how the professionals like Appraiser and real estate investor, Kim Post, determine value. Knowing how a property is valued is important for buying and selling. Learning the process will make you a smarter buyer and seller.

All events are held at the RPOA office unless otherwise noted.

Cost: $25 Gold members, $35 Silver members and non-members unless otherwise noted.

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CE = CERTIFIED COURSE FOR REAL ESTATE CONTINUING EDUCATION PHP = PROFESSIONAL HOUSING PROVIDER CREDIT

March/April 2014 MICHIGAN LANDLORD 31

WHERE LANDLORDS GO FOR HELP

The Creditors argued that when Stewart allegedly vacated the premises in 2009, she abandoned the Equipment either pursuant to the Lease’s abandonment clause or per her intent to abandon the leased premises under Michigan law. They contended that the Equipment then became the property of the landlord, Orion Village, which eventually transferred to the Creditors.

Personal Property at Termination of Tenancy

Commercial Lessee Vacates Premises but Leaves Restaurant Equipment Behind

Stewart argued that she never abandoned the Equipment, and that the Creditors, by refusing to return her Equipment, converted it and violated the automatic stay provisions of the federal Bankruptcy Code, 11 U.S.C.A. §§ 362(a)(3), (a) (6), and (a)(7), and 11 U.S.c.A. § 727.

DECISION: ORDERED ACCORDINGLY.

The United States Bankruptcy Court, E.D. Michigan, Southern Division, held that Stewart did not abandon the Equipment and therefore did not lose her rights to the Equipment. The court further concluded that the Creditors converted the Equipment in violation of the automatic slay statutes.

In sorting out the disputed property rights in the Equipment, the court looked to Michigan law. Under Michigan law, the unambiguous terms of a lease and the parties’ intent govern.

In bankruptcy proceeding, lessee and creditors dispute ownership of restaurant equipment still at premises.

Citation: In re Stewart, 499 B.R. 557 (Bankr. ED. Mich. 2013)

This case addresses the issue of whether a commercial tenant, by her actions or inaction, lost rights to personal property left at the premises after she vacated.

THE BACKGROUND/FACTS: In March 2005, Michelle Stewart (“Stewart”) entered into a five-year lease (the “Lease”) with Orion Village Crossing, LLC (“Orion Village”). Stewart used the leased space to operate a carry-out pizza restaurant.

From 2007 to 2009, the pizza restaurant had operating net losses. By 2009, Stewart was several months delinquent on her lease payments to Orion Village.

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In December 2009, Orion Village initiated an action against Stewart, seeking possession of the premises and $14,543 in back rent. At some point during late 2009 or early 2010, Stewart ceased operating the pizza restaurant. Thereafter she returned to the premises several times to clean and collect smaller items, but did not have the means to move or store several pieces of commercial restaurant equipment and related items (the “Equipment”), which she left at the premises.

Orion Village claimed ownership of this Equipment. Fifth Third Bank later foreclosed the mortgage held by Orion Village and claimed that the rights in the Equipment transferred to Fifth Third Bank via the foreclosure. It was also claimed that the rights in the Equipment were ultimately sold to Baldwin Summit LLC as part of an April 2010 shopping center sale transaction.

On January 18,2010, Stewart filed for Chapter 7 Bankruptcy protection. At that time, the Equipment was in the control of Royal Management, LLC, Marcus Evangelista, and Baldwin Summit, LLC (collectively the “Creditors”). Stewart filed a motion asking the Bankruptcy Court to compel release of the Equipment to her.

The court first looked at whether the Lease was prematurely terminated by operation of law. The relevant provision in Stewart’s Lease provided: “Article 42—Condition of Premises At End of Lease Term . . . Any equipment, fixtures, furnishings, or other items of personal property that remain within the Premises shall be deemed to be abandoned and Tenant expressly consents to the transfer of ownership of such property to Landlord free and clear of any claims of Tenant.”

Given the title of that Lease provision, the court concluded that Stewart’s Equipment could only have been abandoned to Orion Village if the Lease had terminated and the Equipment had subsequently remained after its termination.

Here, the court found that the Lease had not terminated.

The five-year term of the Lease had not yet ended as of the date of Stewart’s bankruptcy filing. Also, the parties had not mutually agreed to terminate the Lease.

The Creditors had argued that Lease was prematurely terminated by Stewart’s actions or inaction. The Creditors maintained that the Lease term expired when Stewart allegedly vacated the premises and thus abandoned the Lease. The court explained that, under Michigan law, in order to establish that leased premises were abandoned two requirements must be met: (1) it must be shown that there

was intent to relinquish the property; and (2) there must be external acts that put that intention into effect.

Here, the court found that Stewart’s actions were insufficient to demonstrate intent to abandon the Lease. The court said that “[o]ne simply cannot perforce equate physically vacating leased premises—or reducing, suspending, or ending normal business operations, with abandonment of the lease covering those premises.” Here, the court found that Stewart’s failure to regularly or continuously do business from mid-2009 to early 2010 did not by itself constitute an abandonment of the Lease, especially given that there was no affirmative act, such as returning her keys, which would establish a manifestation of her intent to surrender the lease. Moreover, in an eviction case brought

by Orion Village against Stewart, the court entered an order stipulating that Stewart could not remove equipment.

The court found that Orion Village had sought that order, knowing Stewart was claiming a right to it and that she did not intend to simply leave it behind incident to intent to abandon the Lease.

Having concluded that, as a matter of fact and law, the Lease was not prematurely terminated by operation of law or by Stewart’s actions or inaction, the court determined that, at the time Stewart filed bankruptcy, the Equipment became property of the bankruptcy estate, superior to any property interests therein of the Creditors.

As such, the court further determined that the Creditors wrongly converted any Equipment that still remained at

Stewart argued that she never abandoned the Equipment,... the premises; the Creditors had no claim of right to the Equipment, yet nevertheless refused to surrender it. As such, the court also found the Creditors willfully violated the automatic stay provisions of the Bankruptcy Code. The court awarded Stewart possession of the Equipment or its fair market value, as well as actual damages and reasonable attorney’s fees.

See also: Sparling Plastic Industries, Inc. v. Sparling, 229 Mich.

App. 704, 583 N W2d 232 (1998).

See also: Jefferson Development Co. v. Heritage Cleaners, 109 Mich. App. 606, 311 NW2d 426 (1981).

See also: Belcher v. Ranney, 211 Mich. 438, 179 NW. 36 (1920).

Reprinted from Landlord Tenant Law Bulletin, December 2013, Volume 34, Issue 12.

March/April 2014 MICHIGAN LANDLORD 33

RENTAL PROPERTY OWNERS ASSOCIATION

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Senate Judiciary Takes on Squatters, Felons The Senate Judiciary Committee today reported packages of bills that aim to crack down on squatters.

HB 5069, HB 5070 and HB 5071 aim to help the owners of homes where people have set up camp for free. “Squatting is becoming far more sophisticated,” said Rep. Kurt Heise (R-Plymouth), the sponsor of the bills. He said that squatters are referencing lists of foreclosed or vacant homes to pick a place. In addition, he said there were advocates out there telling the squatters how to use the legal system to their advantage in the situation. “Squatters, modern squatters, and the well-educated squatter is using those rules to their advantage,” Heise said.

The bills provide that a property owner’s actions would not unlawfully interfere with a tenant’s possessory interest if the tenant were trespassing and allow a property owner to enter premises by force if the occupant took possession of the premises by force or trespass.

The RPOA of Michigan, a supporter of the bill, has been working closely with Rep. Heise on the language of the bill to ensure its effectiveness.

Jim Schaafsma of the Michigan Advocacy Project said in response, “It’s a dangerous bill.” He said that for decades Michigan has let courts and police do eviction work. Now it would create a dual system, where some homeowners would put themselves in harm’s way to get somebody out. “I’m not doubting that squatting exists, but there’s a question about how commonplace it is. And this law would go far beyond squatting,” Schaafsma said.

Committee Chair Rick Jones (R-Grand Ledge) has spoken with real estate agents and others in his area, and said squatting is a problem that isn’t unique to Detroit.

The bills which have already passed the House were reported out of the Senate committee on January 15 and will now go to the Senate floor.

Source: MIRS, http://www.mirsnews.com/bills/details/26762

“It’s a dangerous bill.”

www.koetsierrealty.com Tom Koetsier 616-550-4447 tkoetsier@grar.com

34

Allison Koetsier 616-633-9445 avkoetsier@sbcglobal.net

March/April 2014 MICHIGAN LANDLORD 35

RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

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To ensure that you are credited for all purchases, a Home Depot account number, debit card or credit card number (or all three) will be attached to your rebate account. Every time you use one of these payment methods, you will earn a 2%

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If you have any questions, contact a staff member at the RPOA office at 616-454-3385.

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Carpet cleaning RPOA members receive 25% discount. Premium carpet care at affordable prices. Call RPOA member Dave Bigelow at 616-822-4710 or Grand Rapids Carpet and Furniture Cleaners at 616-453-5368.

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September/October 2013 MICHIGAN LANDLORD 36 36

March/April 2014 MICHIGAN LANDLORD 37

RENTAL PROPERTY OWNERS ASSOCIATION

BOARD OF DIRECTORS President: Ann Siebelink-Finkler (616) 437-2164 E-mail: annfinkler@gmail.com Vice-President: Bert Heyboer (616) 719-0819 E-mail: bertheyboer@gmail.com Secretary: Tom Koetsier (616) 550-4447 E-mail: tkoetsier@grar.com

1459 Michigan St. NE / Grand Rapids, MI 49503 Phone:

(616) 454-3385 / Fax: (616) 454-6163

E-mail:

contactrpoa@rpoaonline.org

Web Sites:

http://www.rpoaonline.org

www.MIrentalguide.com

Office Hours:

Mon 8:30 AM-5:30 PM

Tue–Thu 9:00 AM-5:30 PM

Fri 9:00 AM-5:00 PM

The Rental Property Owners Association/Real Estate Investors (REI) is a nonprofit business association whose mission is to support and facilitate its members’ success in real estate investment and management.

Treasurer: Mark Andresky (616) 855-1979 E-mail: mark@performanceba.com

Other Board Members: Steve DeKoster (616) 776-0572

E-mail: sdeko@aol.com

Mark DeVries (616) 291-2923

E-mail: mark@northernmtg.com

Phil Mol (616) 458-8200

E-mail: philmol@grar.com

David Phillips (616) 745-6683

E-mail: davidrphillips@charter.net

Kim Post (616) 891-0500

E-mail: kim@postandassociates.net

Mark Troy (616) 452-4200

Email: mtroy@compass101.com

Russ VandenToorn (616) 965-2300

E-mail: russ@rentupm.com

Brian Zeemering (616) 608-0940

Email: bzeemering@gmail.com

RPOA Staff: (616) 454-3385 Clay Powell, Director Ava Grover E-mail: avag@rpoaonline.org Kathy Rozenek E-mail: kathyr1@rpoaonline.org Heather Vandenbos E-mail: heatherv@rpoaonline.org

RPOA Director & Newsletter Editor: Advertisers: The deadline for submission of and payment for ads is noon on the 15th day of the month for the following month’s newsletter. Contact RPOA Ad Salesperson, Tom Koetsier, at 616-550-4447 to reserve your Ad space today!

Clay Powell (616) 454-3385

E-mail: clayp@rpoaonline.org

Ad Sales: Tom Koetsier (616) 550-4447

E-mail: tkoetsier@grar.com

Newsletter typesetter: Michelle VanGeest (616) 949-7813

RPOA Attorney: 38

William Reens (616) 458-7800

E-mail: m.vangeest@att.net

MICHIGAN

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