Michigan Landlord Magazine May June 2014

MICHIGAN

LANDLORD MAY/JUNE 2014

www.rpoaonline.org

WWW.RPOAONLINE.ORG

A PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION

IN THIS ISSUE:

Succeeding in the Urban Core 13 Items your Insurance won’t cover

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

tenants

FaIR housIng vIolatIons costly

evIctIons

destRuctIve

tenants

ongoIng polIce calls otheR complaInIng tenants nasty letteRs FRom neIghboRs costly lIabIlIty laWsuIts IncoRRect

FoRms

WHERE LANDLORDS GO FOR HELP

www.rpoaonline.org

WHERE LANDLORDS GO FOR HELP

IN THIS EDITION

9 22

16

FEATURES 4

FROM THE DIRECTOR

5

NEW MEMBERS

14 MEMBER-TO-MEMBER DISCOUNT PROGRAM 29

CREDIT REPORTING PROCEDURES

30

UPCOMING SEMINARS & EVENTS

37 AD-O-GRAMS

ARTICLES 6

RPOA PARTNERS WITH WEST MICHIGAN REI CLUB

VOLUME 50, NUMBER 3

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ANOTHER GREAT CONFERENCE

www.rpoaonline.org

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CONGRATS TO THE BIG PRIZE WINNERS

8

CHECK OUT OUR NEW WEBSITE

10

RESIDENTIAL PERMIT PARKING AVAILABLE NOW IN GR

11

MEMBERS RECEIVE HOME DEPOT REBATES.

endorsement by the Rental Property Owners Association

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MARIJUANA LAW, LANDLORD CHOICES

of Kent County or the Real Estate Investors of Michigan

11

TIP OF THE WEEK!

12

KNOW YOUR OBLIGATION WHEN PURCHASING FORECLOSED PROPERTY

15

DO IT YOURSELF

16

SUCCEEDING IN THE URBAN CORE

21

LAWMAKERS SETTLE ON FY’14 SUPPLEMENTAL

22

13 ITEMS YOUR INSURANCE WON’T COVER

24

FAIR HOUSING CENTER PLANS 27TH ANNUAL EVENT

27

SECTION 8 OCCUPANCY CHANGES

MICHIGAN LANDLORD editorial goal is to provide a forum for real estate investment and rental property ownership and management ideas and news. Our articles, columns, and other features should not be construed as investment advice, nor does their appearance imply an

of any specific real estate investment or management strategy. An investor’s and manager’s best course of action must be based on individual circumstances.

May/June 2014 MICHIGAN LANDLORD 3

RENTAL PROPERTY OWNERS ASSOCIATION

From the desk of the Director CLAY POWELL

IT’S HERE! We’ve been giddy with excitement to

announce the Grand “Opening” of our new website!

We think you’re going to be just as excited as we are!

We’ve taken all your feedback through various surveys, comments and website experiences and have built a site that we think will exceed our member’s expectations and put our association on the cutting edge of website services for landlord associations.

What’s new? There is a ton of new benefits and services

to enjoy directly through the site. For starters, you’ll find online training videos for our popular courses. The first two available for purchase are “how to do garnishments and collections” and “buying and selling rental property.” You can purchase these courses at any time and watch them as many times as you like for up to 30 days—right from the comfort of your own home office or mobile device. These are the same courses held live at the RPOA office! We’ll keep adding more as fast as we can so check back and see what’s new. We also plan to post free short training courses on various topics. Let us know what types of short videos would interest you.

In addition to being able to use most of our forms for free online as in the past, you’ll now be able to buy hardcopies of forms through the website at any time.

Pay for them with a credit or debit card and we’ll ship them to you as soon as possible. You might even discover some forms you didn’t know we had! You can look for forms by looking at the various categories or search for a form using the website search box. Each form has a detailed description for its use and its format.

No more struggling to find an RPOA “referred vendor!”

Simply click on the new “Contractors & Vendors” link and you’ll be taken to a complete list of all contractors and vendors with the referred vendors shown with a bold orange bar. You can even search for vendors by using the company name, contact name or the city where they are located. You can also see a complete list of all members through the membership list under “Member Resources.”

Want to read the Michigan Landlord magazine online?

You can now do that! Issues of the magazine are posted online for quick access and the issues from March/April 2014 and forward will all be online in 4-color. You’ll be able to flip through the magazine right on your desktop computer screen or mobile device. How cool is that?

Forget what discounts we offer? We’ve provided a quick 4

link straight from the home page to a complete list of all the business to member discounts offered through the RPOA, including the rewarding The Home Depot and SherwinWilliams national discount programs—all the details are just a couple of clicks away. There are now over 25 businesses to member discounts! Are you getting all the savings you can as a member?

We’ve also built in an events calendar and registration straight from the website! Look for any courses coming up through our extensive list or look on the calendar to see what is coming up soon. Each course has a description, various dates and times offered, and pricing. Find something you like, register online instantly.

Another new feature is updated news. You can link straight to the latest news items straight from the home page. To look for all the past articles, simply search the website.

You’re likely to find what you need without even calling the RPOA office. Answers to most of your questions can be found through articles, knowledge base/FAQ articles or through back issues of the Michigan Landlord magazine. In case you can’t find what you’re looking for, you can still Get Help Now by clicking on the staff or board member list for telephone numbers and emails.

I could go on—but it’s more fun to dive right into the website and take a test drive yourself! Have fun!

(For more details on getting started and becoming familiar with what’s available, go to page 10 in this issue of the magazine. If you have issues logging in, please give us a call so we can get you on as soon as possible!)

WHERE LANDLORDS GO FOR HELP

WELCOME, NEW MEMBERS 8:18 Creative Investing A-1 Heating & Air Conditioning Access Property Management Group LLC Apex Concrete Construction LLC Baars, Lisa Bauer, Thomas Baumgart, Lawrence Benedict, Stephen Bin There Dump That Boerema, John Burns, Carl & Marcia Canales, Jesus Cerven, Janice V Clark, Martie Compass Realty Services Crisp, Dionna Daenzer, Mark De Maagd, David Decker, April Decker, Jason Dice, Robert Efficient Lawn Maintenance LLC Erb, Arnold Fetrow, Doug Finnie, Alan & Lisa

Flick, John Fountain, Melvin Frain, Matthew Garnaat, Ken & Cathy, Rich & Mindi Gerulis, Peter E GnR Associates LLC Gowdy, Daniel Great Lakes Commercial Sales Inc Grenier, Pierre GXV Pro LLC Halpin, Scott & Donna Hearthland Properties LLC Henry, Christopher John Honeybee Homes LLC Howard, Cato W Jr Jeffries, Alan C Jubilee Holdings LLC Kalejs, Janis Kirchgessner, David Kolbe Properties KSC Investment LLC LangCo Builders Langenberg, Tom Lease This Place LLC Leder, Olga

Lowing, Pam Mannikko, Debra Meekhof, David Miller, Eric & Silvia MNR Properties Group LLC Mojica, Zeke Morris, Michael Muddy Puddle LLC Myers-Nelson, Judy Near, Cecily Nemic, Jason Newgen Properties LLC Nickelson, Ted Noordhoek, Tim Nowak, Wayne ONE Enterprises LLC Penta T Properties LLC Powell, Dwayne Jr R2N Home Solutions Roberts, Alexander Roberts, Gerald Rodriguez, Ernesto Ron Upright Enterprises LLC Savage, Barbara Savara, John

Schall, Rick & Renee Slabbekoorn, Christopher Smits, Carl & Diana Sorenson, Phil SOS Home Rehab Steffens, Robert Steinman, Debra & Jim Tamizi, Majid Tew, Steve The Holiday Bar Trowbridge Law Firm PC VanDenBerg, Craig VanderLoo, Kay VanOs, Lowell VerifyValid LLC Wallace, Joseph A Warner, Patricia Warstler, Todd Work’n It Properties LLC Yuhanick, Robert Zide Properties LLC/Charles DeVos Zimmerman, Harold

May/June 2014 MICHIGAN LANDLORD 5

RENTAL PROPERTY OWNERS ASSOCIATION

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. 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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WHERE LANDLORDS GO FOR HELP

ANOTHER GREAT CONFERENCE!

CONGRATS TO THE BIG PRIZE WINNERS!

The 2014 Conference may have been the best yet. David Phillips, an attendee stated, “I want to congratulate everyone. In my opinion, this was the best conference ever.” Over 300 landlords and investors were on hand with over 30 exhibitors for the three day event. Attendees from all over the state enjoyed over 12 breakout sessions and presentations from five national speakers at the free event.

A successful annual conference and membership drive resulted in some great prizes for a few lucky members! The biggest prize, a Caribbean cruise for two with the National Real Estate Investors Association, was won by George Meier of Belmont for his help on the membership drive. The drive was tremendously successful with over 95 new members coming on board. A big thank you goes out to all those that helped!

THANKS TO ALL THE EXHIBITORS & SPONSORS! SPONSORS A1 Heating and Cooling Beckett Property Mgmt. & Top Flite Financial Culver CPA Group DTE GR Metro Plumbing Indoor Climate Solutions Koetsier Realty LLC Landlord’s Supply, LLC Quest IRA, Inc. S & G Properties LLC Sherwin Williams Window World of West Michigan

Paul Brink won a Samsung flat screen HD TV in a drawing for all those that registered early for the conference and attended the Jeffrey Taylor presentation.

Other winners in both drawings won a set of luggage, The Home Depot gift certificate, $200 and $100 VISA gift cards.

A big thanks to everyone for making this the biggest and best conference yet. Overwhelming responses from those that attended stated that this year’s speakers were the best yet. The conference was attended by landlords and real estate investors from across the state, including folks from Traverse City, Detroit, Flint, Lansing, Battle Creek, Kalamazoo, Muskegon and more.

EXHIBITORS Banner Drywall Co. Compass Property Management First Financial Resource Great Lakes Commercial Laundry Sales, Inc. JB Harrison Insurance LakeShoreDune.com Mal’s Repair Service, Cooks Cleaning & Best Plumbing Priority Painting Selewski Speciality Underwriting Simple Home Management United Bank Mortgage Corp United Properties of West Michigan VanderBilt CPA Group LLC Western Star Insurance Services, Inc. Williams Distributing

May/June 2014 MICHIGAN LANDLORD 7

RENTAL PROPERTY OWNERS ASSOCIATION

WWW.RPOAONLINE.ORG

We hope you enjoy the new website and find it very useful! Let us know what you think and any suggestions you might have. Thanks!

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WHERE LANDLORDS GO FOR HELP

If you haven’t had a chance yet, take a few moments and check out the RPOA’s brand new website!

We’ve completely redesigned our website from the ground up with your feedback using cutting edge design practices. We’re sure you’re going to like it!

Most things are only accessible by members—so don’t forget to login! If you’re already registered to use the old website and still a member in good standing, you should be able to log in with your old username and password. If not, give us a quick call or send us an email and we’ll get back to you as soon as possible so you can take advantage of all the great new features. Click around and see what’s there!

HERE’S A COMPLETE LIST OF ALL THE FEATURES ON THE SITE: About the RPOA

Contractor & Vendor List and Discounts

• Staff contact list

• Searchable list of vendors

• Board contact list

• Searchable list of RPOA members

• Committee information

Online Michigan Landlord Magazine

• List of the services RPOA offers

• Current issue

Get Help Now

• Past issues

Knowledge base and FAQ

Online Rental Advertising

Access to legal services

• Quick links to get your rentals online in various locations for free.

Staff contacts Leasing, Real Estate Forms, Eviction Forms, Small Claims Forms & Books • Free forms online to use • Ability to purchase hardcopies online

National & Local Discounts!

Complete list of over 25 local and national discounts available to members, including The Home Depot and Sherwin Williams paint

Tenant Screening Assistance

Latest Industry & RPOA News

• Tenant history website

Director’s Blog

• Decision report request forms and screening criteria

Important and Useful Links

• Info on getting full credit report services Training & Events

Important Information Regarding Other RPOA Services

• Event calendar & list

Site Search Box

• Online registration • Online training for instant purchase.

• Information on all the other training options and certifications available • Links to REIA Group MeetUps • Quick free training clips (coming soon!)

May/June 2014 MICHIGAN LANDLORD 9

RENTAL PROPERTY OWNERS ASSOCIATION

Residential Permit Parking Available now in GR Yes it is finally here. But there are requirements that need to be met to establish a resident‑only parking (RPP) on your block. Here are the needs: • The area needs to be at least 3 contiguous blocks and be 1,500 feet from a traffic generator (college, hospital, et al). An example could be a block(s) on Lafayette, a block(s) on Lyon, and a block(s) on Fountain.

• If the area meets this threshold, you need to get a petition signed by 60% of every resident in the specific area to support permit parking.

• The petition, the boundaries of the parking area, and the suggested hours of enforcement need to be submitted to your neighborhood association (Heritage Hill) and HHA would then submit it to the City. The hours of enforcement can be suited to the parking situation on the affected blocks. If daytime parking is the problem, it would be 8 to 5 or it could stretch into the evening hours if conditions warrant evening enforcement.

Once the application is submitted to the City, the City will analyze the requested area for this necessary requirement: More than 75% of the parking spaces are occupied during the day and a minimum of 50% of the spaces are used by non residents. The City will verify that the spaces are used by non‑residents by surveying the streets at different times (the day use as compared to the night and weekend use for example).

If this requirement is met, the City will mail ballots to the affected property owners. More than 50% of the homeowners must approve the establishment of the residential permit parking district on their blocks. If this occurs, the City Commission will approve the district and the RPP zone will be in effect within 60 days of the Commission’s approval.

Parking permits will be required to park in the RPP zone and you will need to purchase a permit. The cost is $15 for January to June and another $15 for July to December. To purchase the permit you will need to provide a proof of residency, and a vehicle registration and a current driver’s license. Permit holders will be allowed guest permits for any guests that need to park in the residential permit parking district during the enforcement hours.

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WHERE LANDLORDS GO FOR HELP

Members Receive Their Home Depot Rebates.

Did you get yours?

Members who signed up for The Home Depot RPOA rebate program are receiving their rebate checks! Several have received several hundred dollars! Are you signed up? If not, if you’d like to start receiving a rebate on your purchase through The Home Depot, contact the RPOA office for your application form. If you’ve recently joined, you should be receiving a contact from The Home Depot to complete the application if you wish to do so.

Don’t forget, if you already have an account with The Home Depot, you’ll need to tie this account to the RPOA rebate program in order to be eligible for the rebate. The next checks will go out to members after July 1, 2014.

Remember…this is just one of the easy ways to make your RPOA membership pay for itself!

Landlords May Have Choice Under New Law Regarding Marijuana The Senate passed a bill, SB 783, on March 4, 2014 that would allow property owners/landlords to limit the smoking or growing of marijuana for medical purposes. A lease could be used to control the use. This is good news as current law left this area unaddressed. Many property owners are concerned about the dangers of increased crime from the growing of marijuana and the health of other tenants from secondhand marijuana smoke. Owners have also expressed concern that it wasn’t clear whether or not they could prevent someone from smoking medical marijuana—even if the unit was a non-smoking unit.

Tip of the Week!

Many rental property owners choose to participate in the Section 8 Program (in most communities, the property owners does not have a choice). Some owners complain that their Section 8 tenants are not screened well enough by the local Section 8 administration department. Landlords should be aware that they do not have to accept any tenant—including a Section 8 tenant—if that tenant does not meet their legal renting criteria. Landlords should never rely solely on the screening done by the Section 8 administrators. They are not screening for the criteria you may choose to use for your rental property.

May/June 2014 MICHIGAN LANDLORD 11

RENTAL PROPERTY OWNERS ASSOCIATION

LANDLORD’S QUARTERS—A PLACE FOR LANDLORDS

Know your obligations when purchasing foreclosed property

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WHERE LANDLORDS GO FOR HELP

A California appeals court has concluded that leases in California survive foreclosure pursu­ant to the federal Protecting Tenants Against Foreclosure Act of 2009 (“PTFA”) (Pub.L. 111‑22, Div. A, Title VII, §§ 702‑704, May 20, 2009, 123 Stat. 1660), as amended in 2010 (Pub.L. 111‑203, Title XIV, § 1484, July 21, 2010, 124 Stat. 2204). Signifi­cantly, that court determined that the PTFA impliedly overrides state laws that provide less protection but ex­pressly allows states to retain the au­thority to enact greater protections.

Perhaps more significantly, that court also concluded that the PTFA does not simply provide an affirmative defense to judicial proceedings to oust a tenant from foreclosed property; rather, the court concluded that the PTFA could also be invoked affirmatively against successors in interest that interfere with tenants’ possessory rights (i.e., al­lowing state actions by tenants against such successors in interest as landlords).

Those considering the purchase of a foreclosed property— whether or not a financial institution—must understand not only the foreclosure process, but also the rights of tenants in foreclosed property.

FORECLOSURE BASICS. Foreclosure occurs when a mortgagor (property owner) is in default on mortgage pay­ ments to the mortgagee (usually a bank). Foreclosure itself is, specifi­cally, the proceeding under which the mortgagee obtains a court order termination of the mortgagor’s right to re­deem the property by paying the out­standing principal and interest due on the mortgage, plus foreclosure‑related costs.

In judicial foreclosure states, fore­closure must be initiated in court, and the court will authorize the lender’s auction of the property. In nonjudicial foreclosure states, a deed of trust usu­ally authorizes the lender to foreclose the property on owner default. In either case, if there are no buyers at auction, the property becomes lender‑owned and the lender can then sell it.

TENANTS RIGHTS UPON FORECLOSURE. As of May 20, 2009, and until the law sunsets on December 31, 2014 (or lon­ger as may be provided by state law), the federal PTFA protects certain resi­dential tenants from being evicted fol­lowing foreclosure. More specifically, the PTFA covers all residential prop­erty foreclosures regardless of the en­tity involved in the foreclosure and regardless of whether the tenants are recipients of any type of housing assistance.

The PTFA protects “bona fide” residential tenants under “bona fide leases” that are entered into before complete title to the property is trans­ferred to a successor entity or as a result of a court order or pursuant to the provision in

the mortgage, deed of trust, or security deed. Thus, the PTFA does not protect immediate family member‑tenants of mortgagors facing foreclosure. The PTFA also does not protect: tenants of leases that are not the result of an arm’s length transac­tion (i.e., where the landlord and tenant did not act independently when enter­ing the lease); or tenants with leases that are substantially less than fair mar­ket value for the property (except where the rent has been reduced due to a government subsidy). And, the PTFA does not protect tenants of leases en­tered into subsequent to transfer of title upon foreclosure.

As the California Appeals Court noted in the case highlighted in this bulletin, under the PTFA, bona fide tenants of bona fide leases are entitled to occupy the (now foreclosed) prem­ ises until the end of the remaining term of the lease—despite state laws that may provide lesser protections—subject, of course to compliance with the provisions of the lease.

Note: In the case of § 8 tenants, the § 8 Housing Assistance Payment con­tract continues.

An exception to the rule that the lease continues until the end of the lease term is when the “successor in interest” (i.e., the bank that foreclosed the property or the person that bought it at auction) intends to utilize the prop­erty as the owner’s primary residence. In that case, after the trustee’s sale has been concluded, the owner need not honor the remainder of the lease term, and instead can provide a 90‑day no­tice to vacate. Additionally, where there is no lease (i.e., month‑to‑month tenant), or the lease is terminable at will, once the trustee’s sale has been conducted, the “successor in interest” must provide the bona fide tenant with a 90‑day notice to vacate, or can enter into a new lease with the tenant. Thus, in any case, the new property owner cannot evict a tenant for at least 90 days.

Note: State or local laws, as well as federal‑ and state‑subsidized tenancies, may provide greater protections for tenants, including longer notice periods prior to termination. For example, some locales also require: preforeclosure notice to tenants; or “good cause” to evict tenants.

Source: Nolo, “Renters in Foreclosure: What are Their Rights?” by Attorney Janet Portman; www.nolo.com Source: Federal Register, Vol. 74, No. 120 (June 24, 2009).

Department of Housing and Urban Development Notice: Protecting Tenants at Foreclosure: Notice of Responsibilities Placed on Immediate Successors in Interest Pursuant to Foreclosure of Residential Properties.

May/June 2014 MICHIGAN LANDLORD 13

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

AMERA MORTGAGE

JACK’S LAWN SERVICE

Free appraisal for 1 to 4 family unit homes with closed loan application for RPOA members only.

Jim Riley, 616-292-4491.

Jack’s Lawn Service is offering an exclusive discount to RPOA members only. Call for your exclusive discount today. 616-698-8616.

BENDER MAINTENANCE & HOME IMPROVEMENT

JB HARRISON INSURANCE AGENCY

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. 616-975-0126.

CASH FLOW SOLUTIONS INC Cash Flow Solutions special rates. Collect Bad Checks with Bounce Back Check Recovery! To access this discount, contact the RPOA office.

616-454-3385.

COMPASS REALTY SERVICES RPOA exclusive discount! Up to $500 off listing services. Call Tom at 616-550-4447.

FARM BUREAU Jeff Lamborne Farm Bureau Insurance Agency offers group discounts. Call Jeff for details.

616-447-0274.

GRAND RAPIDS CARPET & FURNITURE CLEANERS RPOA Members receive 25% discount! Call Dave, 616-453-5368.

HOME DEPOT Sign up for the Home Depot rebate program through the RPOA and receive 2%* rebate on all your purchases—no matter how small or big.

Call the RPOA office to get your rebate program started now! 616-454-3385.

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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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 616-868-0050 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.

MLIVE MEDIA GROUP A special exclusive offer just for RPOA members. $35 for 30 days print and online! Grand Rapids Press, Kalamazoo Gazette, Muskegon Chronicle.

Includes a 5 line print ad for a single rental unit as well as appearing with expanded text and up to 8 photos on mlive.com. Call the Classified Sales Supervisor at the Grand Rapids Press.

616-254-0612.

OFFICE MAX OfficeMax offers special discounts on expensive supplies like ink cartridges. More than a vendor or a supplier…they’re your strategic partner, your ally, your advocate. To access this discount, contact the RPOA office. 616-454-3385.

PAWLOWSKI & REENS, PLC, ATTORNEYS AT LAW Discounted fees and free limited phone consultation on any legal issue. 616-458-7800.

REPUBLIC WASTE REMOVAL SERVICES Exclusive RPOA discount! $11/month for 96 gal. cart. Call Jeff Nienhuis at 616-308-5760.

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.

Check out the discounts being made to RPOA members only:

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.

SHERWIN WILLIAMS Sherwin Williams offers a 30% discount on paint products and also offers a 30% discount on paint sundries. Applicators are discounted 35%. Other pricing is very competitive within the local market. A special discount card must be obtained from the RPOA. 616-454-3385.

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

USA-MLS Advertise your properties on over 40 of the most popular Real Estate sites. RPOA Members $30 per month, unlimited listings. Free custom website with listings displayed, plus many more benefits. USA-mls.com. Call 1-800-206-0080.

WWW.FIRSTFINANCIALRESOURCE.BIZ Bullet proof protection, irrevocable asset protection trusts, 15% discount to RPOA members 3 trust package. John H. Aggeler, Financier, 616-299-0757 or financier1945@ gmail.com. $30K to $30M investment property loans, cash for land contracts/receivables.

WEST MICHIGAN PRO CLEAN WMPC is ready to handle your cleaning needs by offering move-in/move-out, carpet, postconstruction, and general commercial cleaning.

RPOA members receive a 20% discount on their first cleaning. Call 616-299-1757 or email wmproclean@yahoo.com for FREE estimate.

Associate members who would like to participate in the discount program should call Kathy Rozenek at 616-454-3385.

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

WHERE LANDLORDS GO FOR HELP

Do It Yourself With new bathroom faucets, turning off the hot or cold knob immediately halts the water flow. About three years later, the faucet weeps a bit of water when it’s turned off Is this a sign the knob isn’t working? Can the spout screen be fixed? Do I need a new fixture?

Most types of faucets are repairable with standard tools and a rebuild kit. Note the brand and style of the faucet and find a corresponding repair kit at the local plumbing supply house or home improvement center. Repair kits often come with the specialized tool you may need to repair the faucet. The faucet screen can be cleaned and is housed in a removable assembly at the end of the spout. These can be spun off and the screens cleaned and replaced. Keep in mind the cost of repairs may rival the cost of replacement.

If the cost of repair is more than 50 percent of the cost of replacement, we recommend the faucet be replaced with a new, modern fixture.

May/June 2014 MICHIGAN LANDLORD 15

RENTAL PROPERTY OWNERS ASSOCIATION

Succeeding in the urban core Investors who buy distressed residential properties in the urban core can make healthy returns. But success requires research, realistic expectations and knowing where to turn for help.

The uncertainty that has rocked financial markets in recent years has driven scads of investors to pull their money out of stocks and plow it into residential real estate. Many of those investors have been drawn to single‑family homes and small multifamily buildings in the urban core. These dwellings frequently are in poor‑to‑fair condition, but buyers are willing to make the necessary repairs.

“The homes are inexpensive, so it looks really good on paper,” said Kevin Ortner, CEO of Renters Warehouse, a Minnesotabased property management company. “They can go into a neighborhood and buy a property that’s maybe a distressed home for, in some instances, $20,000, $30,000, $40,000, put a little bit of money into it to fix it up and turn around and rent it.”

Distressed properties can score high on returns, but this kind of investment is no slam dunk. All too often, the bargain prices available in the urban core are accompanied by a plethora of challenges.

There frequently is a “disconnect” between investors’ expectations and “the reality of what these areas will yield operationally, yield financially,” said Shane Sauer, a co‑founder of RentFax, a Kansas City area‑based company that provides information about properties and surrounding census tracts.

According to Sauer, “the failures you hear about, the stories of ‘I bought this house and lost all my money’— usually the mistake happened before they ever bought the house.

The No. 1 key is knowledge and understanding of the challenges of being active in those distressed markets.”

So what are the biggest challenges to successful urban core investing?

LACK OF STABILITY Many of the challenges faced by urban core investors revolve around lack of neighborhood stability.

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“Demographics change very rapidly, depending upon certain influences to the neighborhood,” said Scott Abbey, a co‑founder of RentFax. He said such influences can include “lots of boardups because of foreclosures. It can include a local, large employer shutting down, or laying off a large quantity of people. It can include a school closing.”

The instability prevalent in many urban core neighborhoods often goes hand‑in‑hand with poor infrastructure and schools‑ attributes that cause people to move away, Abbey said.

So while it may be easy to find distressed properties for sale, the same is not always true when it comes to finding stable residents to live in those properties. “Many times in these urban core areas, it’s more challenging to find tenants who will take the kind of care of the properties that you need to have positive outcomes,” Abbey said.

HIGH VACANCY RATES High tenant turnover and resulting high vacancy rates pose a h uge hurdle to successful urban core investing.

“I’ve looked at hundreds or pro formats, produced by sellers and given to buyers, and the common plug number for vacancy is 10 percent,” Abbey said. “But 10 percent is not the number. It varies based on location and demographics.

It’s not a number that can be used in a pro forma across the board.”

Abbey said vacancy rates can be aggravated by rents that are too high for the neighborhood.

“Then the outcome of that investment is going to be skewed to the negative, or at least less optimistic than the seller has promoted. If you sit vacant, you have lost opportunity.”

Not only do vacancies cut off the investor’s cash flow, but a vacant dwelling is more likely to be hit by vandalism, fire or squatter occupation. The cost of repairs takes more money out of the investor’s pocket.

“Vacancy in a high‑risk area is your worst expense,” Abbey said. “Being occupied is a critical component, and making certain that you have a realistic rent is an important part of that.”

Continued on p. 20

WHERE LANDLORDS GO FOR HELP

May/June 2014 MICHIGAN LANDLORD 17

RENTAL PROPERTY OWNERS ASSOCIATION

TEAM UP. TAKE YOUR BUSINESS

TO THE NEXT LEVEL.

CARS • FURNITURE • ORIENTAL & AREA RUGS

STEAM ONE Carpet & Upholstery Cleaners Carpet Area Rugs

No. 1 Your e for Sourc ar pet er C Clean

Furniture

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Buyer representation Listing services Property tax appeals Free 1 hour consultation HUD registered broker Mentoring and consulting programs

• Short sales and foreclosures • Exit strategies and creative investing • Rehabs and flips • Land contracts and lease options • Partnership opportunities

Work with someone who does what you want to do.

We are landlords. We are investors.

RPOA MEMBERS RECEIVE $500 OFF LISTING COMMISSIONS

Koolaid stains removed

*6 Rooms for the Price of 5* www.koetsierrealty.com

(616) 682-1944 or (616) 304-2603 Serving all of Greater Grand Rapids

FULLY INSURED • FREE ESTIMATES • FAST DRYING

18

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

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

WHERE LANDLORDS GO FOR HELP

Grand Valley Health Plan ranks

#4

in the Nation!

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!

• Consumer Experience • Prevention • Treatment According to the U.S. News & World Report/NCQA America’s Best Health Plans 2008 rankings.

“America’s Best Health Plans” is a trademark of U.S. News & World Report.

Grand Valley Health Plan is proud to be the only commercial health plan in Michigan to rank in the top 10 honor roll in the nation.

Log onto www.ncqa.org for a complete list of rankings.

R.K. MECHANICAL Heating • Cooling • Gas Fireplaces Sales, Service, Installation Roy Kline Phone: (616) 677-3975 Cell: (616) 292-0462 Licensed

0-1580 Fox Ct. Grand Rapids, MI 49534 Insured

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.

1555 Plainfield NE Grand Rapids, MI 49505

May/June 2014 MICHIGAN LANDLORD 19

RENTAL PROPERTY OWNERS ASSOCIATION

Indoor Climate Solutions making your home paradise

616-891-HEAT(4328)

M-F 8am-4pm, Sat. by appointment Mention this ad for a 5% Discount on any parts

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$40.00 heating inspection sticker per appliance Upfront pricing Service All Major Brands Quality Installation at an Affordable Rate Licensed & Insured Furnaces, Boilers, A/C, Water Heaters, In floor Radiant, Full line IAQ products

Succeeding in the urban core continued from p. 16

FINES AND FEES Investors in distressed properties also are challenged by municipal fines, such as for not maintaining standards of cleanliness and aesthetics.

“Some cities around the country are really trying to step up their standards in their neighborhoods, and they’ll fine the owner‑investor for things like the yard not being maintained properly or trash being outside or vandalism or graffiti on the property.” Ortner said.

A lease on a single‑family house typically specifies that the tenant is responsible for mowing the lawn. But if the tenant shirks that responsibility, “the city won’t bill the tenants, they’ll bill the owner, and if it’s not paid on time, it involves pretty excessive late fees,” Ortner said.

If the fine is the fault of the tenant, the property owner can pay the fine and then seek reimbursement from the tenant. But the tenant might refuse to pay or be unable to pay, Ortner said, “so, it becomes a situation where you have to decide whether to kick a tenant out over not paying a fine and risk some vacancy time, or continue collecting your rent.”

Other obstacles to acquiring distressed properties include tax liens. “We’ve heard or properties with so many tax and special assessment liens against them, that paying off the liens and assessments would cost more than the value of the property,” Sauer said.

Bottom line: Investing in distressed properties holds the potential for good returns, but success is not guaranteed.

KEYS TO SUCCESS ❑❑ Have REALISTIC expectations ❑❑ Get DETAILED REPORTS about the property and the surrounding neighborhood. ❑❑ TALK to people who already live in that area ❑❑ Invest in professional property management and tenant SCREENING Source: Community Investor Jan/Feb 2014 Julius A Karash.

20

WHERE LANDLORDS GO FOR HELP

Lawmakers Settle on F Y’14 Supplemental House and Senate members settled their differences and passed a $330 million budget supplemental that includes up to $215 million for pothole patching and priority road maintenance.

The supplemental also includes funding for residents who are in need to keep receiving mental health services, providing home heating assistance, and giving legislative support to the new Office for New Americans in an effort to attract more immigrants with advanced academic degrees or entrepreneurial skills to come to Michigan.

The supplemental does not provide any immediate fix for a Health Insurance Claims Assessment (HICA) that is bringing millions less revenue than expected.

However, by the end of the budget year, if the HICA hole isn’t filled, the $115 million in the Roads Risks and Reserves (RRR) Fund to be used for road projects will go toward it automatically under an amendment that won unanimous approval.

The remaining $100 million of the $215 million for roads will go toward the winter maintenance and filling potholes.

May/June 2014 MICHIGAN LANDLORD 21

RENTAL PROPERTY OWNERS ASSOCIATION

Real Estate Investors:

13

Items Your Insurance Won’t Cover

by Al Aiello, CPA, MS Taxation

22

WHERE LANDLORDS GO FOR HELP

My lawyer told me umbrella insurance is enough to “protect me, so i don’t need an llc.”

— An ill‑advised real estate investor.

With lawyers like the above, who needs enemies?

Liability insurance does not protect you from legal disputes with tenants, contractors, partners and others. You should absolutely have liability insurance. But insurance doesn’t protect you from legal disputes with tenants, contractors, partners (including family members), and others as follows:

DISPUTES WITH TENANTS OVER • Rent increases — Which have led to massive costly law­ suits, especially with multi-unit property • Fair Housing violations — Which can result in substantial judgments • Past due rents, evictions — More liability • Other problems leading to legal actions

Besides leading to costly lawsuits, there is the time and stress with the above disputes. Moreover, insurance does not pay you for attorney fees and court costs related to these uninsured legal actions.

INSURANCE ALSO DOES NOT

• Work performed (or not performed or poorly performed) • Materials used (or not used) • Hidden fees — You do not want to pay These disputes can result in mechanics liens.

• Protect you from liability claims that exceed limits, even high umbrella limits • Protect you from claims that the insurance company says are not covered (that you thought were covered) • Protect you from environmental liabilities • PREVENT lawsuits from ever happening • And too much insurance may even invite lawsuits!

DISPUTES WITH PARTNERS (INCLUDING FAMILY MEMBERS) OVER

UNLIKE A PROPERLY STRUCTURED AND DOCUMENTED LLC, INSURANCE DOES NOT...

DISPUTES WITH CONTRACTORS OVER

• Profit splitting — Who gets what?

• Duties — Who does what?

• Management — Who decides?

These are heated battles where only lawyers win.

DISPUTES WITH OTHERS • Vendors/suppliers • Real estate agents • Management companies • Title companies Anyone in real estate you deal with is a potential dispute.

• Give you financial privacy (the cornerstone of asset protection and lawsuit prevention) • Defend you in a costly audit against the most powerful predator‑creditor: The IRS • Support tax‑saving strategies (which can amount to thousands of dollars)

continued on p. 34

May/June 2014 MICHIGAN LANDLORD 23

RENTAL PROPERTY OWNERS ASSOCIATION

Fair Housing Center Plans 27th Annual Event for May 22nd The Fair Housing Center of West Michigan is very pleased to announce that Sara Pratt, Assistant Deputy Secretary for Enforcement and Programs at HUD’s Office of Fair Housing and Equal Opportunity, will be the keynote speaker for the 27th Annual Fair Housing Luncheon & Workshop Series on Thursday, May 22, 2014, at the Crowne Plaza Hotel.

She will be speaking about the role that fair housing plays in creating and sustaining communities of opportunity. The FHCWM will offer three concurrent morning workshops from 8:45‑11:45 am; the Luncheon begins at noon.

The Planning Together to Foster Inclusive Communities workshop will provide information on HUD’s proposed Affirmatively Further Fair Housing (AFFH) Rule, which was drafted in order to aid in the development of community planning informed by fair housing. Under the proposed rule, state and local jurisdictions that receive direct Community Development Block Grant funding, and public housing agencies would be provided with a clear definition of what it means to affirmatively further fair housing (AFFH); a standardized assessment process with supporting data; and guidance and technical assistance under a new proposed rule. This workshop will cover the proposed changes under the new rule as well as practical guidance and meaningful actions to meet the obligation to AFFH; the workshop will also provide opportunities for dialogue on creative approaches and opportunities to not only meet, but exceed the obligation. The panel will be anchored by a presentation from Sheryl Whitney, a HUD contractor with almost two decades of experience with King County in Washington.

The Joining Together to Promote Choice for Seniors and People with Disabilities workshop will focus on reasonable accommodations and modifications that enable people to ‘age in place’ in housing that meets their needs. This workshop will feature an overview of the laws and other guidance available on these and related topics including assistance animals; case examples; and hands‑on exercises to increase familiarity in handling requests for accommodations and modifications.

Panelists include Maurice McGough (HUD); Jim McCarthy (Miami Valley Fair Housing Center); Kim Cross (Dwelling Place); and Elizabeth Stoddard (FHCWM). This workshop is made possible through the support of the Kent County Senior Millage.

The Working Together to Enhance Neighborhood Opportunity workshop will build on the real estate owned (REO) properties session held last year, which focused on one of the devastating outcomes of the foreclosure crisis—the vacant and poorly maintained REO properties marring once vibrant neighborhoods, especially neighborhoods of color. A settlement and collaborative commitment provided funds for investment in neighborhoods of color impacted by the crisis in 19 cities, including Grand Rapids. Panelists will discuss local efforts underway that assist in stabilizing and enhancing our neighborhoods by building on existing assets and leveraging new opportunities.

Reprinted from Fair Housing News, Volume 1, 2014.

24

WHERE LANDLORDS GO FOR HELP

Join Us! BREAKFAST NOTES

Real Estate Investors (REI) Breakfast Notes The Friday Morning REI Investors Roundtable is an open, informal networking session for vendors, lenders, landlords and investors who are invited to share their haves and wants.

When Friday, April 25, 2014 8 a.m. – 9 a.m.

Where Cheshire Grill 2162 Plainfield NE Grand Rapids, MI

May/June 2014 MICHIGAN LANDLORD 25

RENTAL PROPERTY OWNERS ASSOCIATION

Lead-Safe Class Still Important!

David H. Bigelow RPOA Member

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

Grand Rapids Carpet & Furniture Cleaners since 1944 We use

RPOA members receive a 25% Discount

26

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.

WHERE LANDLORDS GO FOR HELP

Section 8 Occupancy Changes do NOT Change Private Housing Laws The FHCWM has received several inquiries relevant to the changes implemented, or to be implemented, by administrators of the Section 8 Housing Choice Voucher Program regarding occupancy limit standards. The FHCWM understands that, due to funding limitations and budget cuts, local Public Housing Authorities (PHAs), the Michigan State Housing Development Authority (MSHDA) and others that manage Section 8 Vouchers have done away with, or will be doing away with, discretionary policies regarding occupancy and defer to the “two heartbeats per room” occupancy standard when determining a family’s eligibility for a particular unit size and Voucher amount. However, these programmatic changes do not in any way alter or limit fair housing laws regarding familial status discrimination or occupancy limitations in the housing market.

The FHCWM confirmed that HUD has not issued any new rule or regulation regarding occupancy, but rather that the “two heartbeats per room” limit has always applied to Section 8 and Public Housing programs. However, the HUD regulations have allowed/continue to allow Voucher administrators, such as PHAs (housing commissions) and MSHDA, discretion to broaden eligibility criteria based upon availability of funds.

For example, a family of three made up by a single mother with a teenage daughter and teenage son would qualify for a twobedroom unit under the “two heartbeats per room” limit; however, a PHA can broaden qualification criteria to take the ages and genders of the family members into account and approve the family for a three‑bedroom unit. Due to budget cuts, rather than reduce the number of Vouchers or program participants, PHAs across the nation are choosing to cut costs by no longer exercising automatic policies that allow families the option of a larger unit size based on family make‑up.

Where the example family might have previously qualified for a three‑bedroom unit, upon Voucher renewal under the changes they may only qualify for a two‑bedroom unit.

It is very important to note that: • this occupancy limit change is only relevant to program‑related Section 8 qualification criteria, and has no bearing on the rules and regulations applicable to the housing market • these changes in PHA practices do not in any way suggest that it is always legal for a housing provider to limit occupancy to two people per bedroom • occupancy limitations should be no more restrictive than local health and safety standards or other governmental restrictions that limit the maximum number of occupants within a dwelling based on the unit size and configuration • housing providers should continue to defer to HUD’s guidance in the Keating Memo for specific information on familial status discrimination and occupancy limitations (see Publications on our website) An individual could file a fair housing complaint challenging a housing provider’s two people per bedroom policy if they believe the property or unit can legally house more than two people in a bedroom. This is why we strongly recommend that housing providers become familiar with the Keating Memo, the local occupancy codes and allowable occupancy within their properties based on size and configuration in order to reduce the risk of receiving a fair housing complaint and ensure compliance with the familial status protections of the federal Fair Housing Act.

Reprinted from FHCWM Notes & News.

May/June 2014 MICHIGAN LANDLORD 27

RENTAL PROPERTY OWNERS ASSOCIATION

Start Earning Your Rebate!

RPOA Snags National Discount with Home Depot RPOA members can start receiving a 2% rebate* on all purchases made through Home Depot!

This rebate is on top of any other discount or sale price, including contractor rates. It’s simple to get started. Use the form inserted into this issue of the Michigan Landlord to sign up, and fax it to the RPOA office at 616-454-6163. After we process the form, a person from Home Depot will contact you to obtain additional account information.

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%

rebate*.

Rebate checks are mailed every six months.

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

*2% rebate is earned on annual purchases of $1,250 or more.

September/October 2013 MICHIGAN LANDLORD 28 28

WHERE LANDLORDS GO FOR HELP

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

May/June 2014 MICHIGAN LANDLORD 29

Upcoming Seminars and Events HELPING REAL ESTATE INVESTORS BECOME MORE SUCCESSFUL May 15, 2014 • 2:00 p.m. to 6:00 p.m.

May 29, 2014 • 6:00 p.m. to 8:00 p.m.

RETIRING FROM YOUR REAL ESTATE CAREER IN STYLE: EXIT STRATEGIES FOR THE REAL ESTATE INDUSTRY

PROTECTING YOUR ASSETS - CE, PHP

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 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!

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.

To be held at: RPOA Office, 1459 Michigan St. NE, Grand Rapids, MI 49503

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

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.

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.

June 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!

June 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

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

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

30

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.

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

! s u n i o J

REAL ESTATE INVESTORS (REI) FRIDAY MORNING BREAKFAST ROUNDTABLE Held every Friday, 8–9 a.m.

Cheshire Grill / 2162 Plainfield NE, Grand Rapids, MI

REGISTER BY CALLING 800.701.7762 OR EMAIL CONTACTRPOA@RPOAONLINE.ORG June 11, 2014 • 8:00 a.m. to 5:00 p.m. 8-Hour Class

RENOVATION, REPAIR & PAINTING 8 Hour CE; 8 Hour Construction Credit Limit: 6. Call RPOA for pricing.

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.

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.

Future dates:

July 23, 2014

August 21, 2014

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

FOUNDATIONS OF BUYING, LEASING AND SELLING RENTAL PROPERTY - CE

SELF-DIRECTED IRA’S - 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.

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

Cost: $50 / $70

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

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:

SUCCESSFULLY SELLING HUD HOMES IN MICHIGAN - CE

• Proper due diligence before buying or turning your existing home into a rental property.

Con-Ed Approved Class for Realtors. Earn 3 hours!

Presented by Michael Childress, Licensed Realtor, HUD Certified Dealer

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

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!

• 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.

continued on page 32

Upcoming Seminars and Events CONTINUED FROM PAGE 31 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.

32

A-1 Heat & Air Conditioning has been providing expert quality sales, service and installation in the Grand Rapids area since 1994.

• 24 hour Emergency Service

• Indoor Air Quality Control

• Free Estimates

• Ductwork & Sheet Metal Services

• Furnace / AC Tune up

• Wholesale Parts for the “Do-It-Yourself” project

• Repair / Replacements

RPOA MEMBERS - use this coupon to receive $20 off your next service call or $100 off your next equipment purchase. Call for details!

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20 Anniversary

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2014 is our 20th anniversary and we are very proud of providing honest and quality service for 20 years.

RENTAL PROPERTY OWNERS ASSOCIATION

Real Estate Investors:

13

Items Your Insurance Won’t Cover CONTINUED FROM PAGE 23

RECAP OF WHAT INSURANCE DOES NOT COVER

1. TENANT DISPUTES 2. FAIR HOUSING VIOLATIONS 3. CONTRACTOR DISPUTES 4. PARTNER/FAMILY DISPUTES 5. OTHER DISPUTES 6. RELATED LEGAL FEES FOR THE ABOVE 7. CLAIMS THAT EXCEED LIMITS 8. CLAIMS INSURANCE COMPANY SAYS ARE NOT COVERED 9. ENVIRONMENTAL LIABILITIES 10. LAWSUIT PREVENTION 11. FINANCIAL PRIVACY 12. IRS AUDIT DEFENSE 13. SUPPORTING TAX STRATEGIES That’s 13 items insurance does not cover. On the other hand, a properly structured LLC and asset protection plan can give you all of the aforementioned protection-benefits, which can amount to thousands of dollars and peace of mind.

This article is an excerpt from The LLC Master Machine Asset Protection System (with extraordinary protection strategies) by Al Aiello, CPA, MST and William Noll, CPA, Attorney. This article is reprinted here with permission from Creative Real Estate Online at http://www.creonline.com.

34

RENTAL PROPERTY OWNERS ASSOCIATION

A Special Offer for KARHA, MARA and RPOA MEMBERS

$35 for 30 days print and online!* Kalamazoo Gazette, Muskegon Chronicle and/or Grand Rapids Press.

Fill your vacancies with Mlive Media Group print and online solutions! *Includes a 5 line print ad for a single rental unit as well as appearing with expanded text and up to 8 photos on mlive.com Properties with more than 10 units are not eligible for this offer.

36

WHERE LANDLORDS GO FOR HELP

Full service plumbing and drain cleaning

BEST

Plumbing and Drain Cleaning

616.212.7907

Ad-o-Grams APPLIANCE SALE Refrigerators, ranges, washers & dryers. Nice selection, all guaranteed, and delivery service.

Modern Appliance, 809 College NE, 616-4567039.

24 hour service available Licensed and insured Free estimates

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.

EVICTION CLEAN-UP AND DUMPSTER RENTALS Never have stolen tags again! Clean-ups starting at $35. Or rent one of our 10-, 15-, or 20-yard dumpsters for your remodel or clean-ups. Starting at $175 including dump fees! Call Executive containers at 616-862-5246.

SOS HOME REHAB LLC Repair/remodeling for management companies/ homeowners. Inspections to evictions to movein ready apartments. Certified in HVAC, lead and mold. Call Shane Sarver, 616-446-4899; email: ssarver@soshomerehab.com. Licensed, insured, efficient.

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!

May/June 2014 MICHIGAN LANDLORD 37

RENTAL PROPERTY OWNERS ASSOCIATION

BOARD OF DIRECTORS President: Bert Heyboer (616) 719-0819 E-mail: bertheyboer@gmail.com President Elect: Tom Koetsier (616) 550-4447 E-mail: tkoetsier@grar.com Secretary: Mark Troy (616) 452-4200 Email: mtroy@compass101.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: Kathy Dennison Adrianse (616) 257-9577 E-mail: kdennison@grar.com Steve DeKoster (616) 776-0572

E-mail: sdeko@aol.com

Allison Koetsier (616) 633-9445

E-mail: akoetsier@compass101.com

Keith Littlepage (616) 669-8809

E-mail: successinvests@att.net

James Loftus (616) 889-0488

E-mail: loftja@gmail.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

John Potter (616) 318-1549

E-mail: jpotter@grar.com

Russ VandenToorn (616) 965-2300

E-mail: russ@rentupm.com

Brian Zeemering (616) 608-0940

Email: bzeemering@gmail.com

Past President: Ann Siebelink-Finkler (616) 437-2164 E-mail: annfinkler@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 & MAGAZINE EDITOR: Clay Powell (616) 454-3385

E-mail: clayp@rpoaonline.org

AD SALES: Tom Koetsier (616) 550-4447

RPOA ATTORNEY: William Reens (616) 458-7800 38

E-mail: tkoetsier@grar.com

MICHIGAN

LANDLORD THE PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION 1459 MICHIGAN STREET NE, GRAND RAPIDS, MI 49503 PHONE: 616.454.3385 FAX: 616.454.6163 CHANGE SERVICE REQUESTED

PRSRT STD U.S. Postage PAID

Grand Rapids, MI 49503

Permit No. 553