MI Landlord May/June 2015

MICHIGAN

LANDLORD MAY/JUNE 2015

www.rpoaonline.org

RPOA Kills Punitive Lead Bills (See Page 8)

ALSO FEATURING: 13 Things Your Insurance Won’t Cover Tenant Screening at Your Fingertips

A PUBLICATION OF THE RENTAL PROPERTY OWNERS ASSOCIATION

WHERE LANDLORDS GO FOR HELP

IN THIS EDITION

8

20

14

FEATURES 4

FROM THE DIRECTOR

5

NEW MEMBERS

10 MEMBER-TO-MEMBER DISCOUNT PROGRAM 20

UPCOMING SEMINARS & EVENTS

27

CREDIT REPORTING PROCEDURES

29 AD-O-GRAMS

ARTICLES

VOLUME 51, NUMBER 3

6

A HUGE THANK YOU!

www.rpoaonline.org

8

LEGISLATIVE NEWS

MICHIGAN LANDLORD editorial goal is to provide a forum

14

TENANT SCREENING AT YOUR FINGERTIPS

for real estate investment and rental property ownership

16

WHY YOU SHOULD USE GUEST CARDS

20

13 THINGS YOUR INSURANCE WON’T COVER

investment advice, nor does their appearance imply an

27

MEMBER INFO

endorsement by the Rental Property Owners Association

NEW FORM ONLINE

NATL. ASSOCIATION ACCESS TO HEALTH INSURANCE

and management ideas and news. Our articles, columns, and other features should not be construed as

of Kent County or the Real Estate Investors of Michigan 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.

REPUBLIC WASTE ANNOUNCES SLIGHT INCREASE

May/June 2015 MICHIGAN LANDLORD 3

RENTAL PROPERTY OWNERS ASSOCIATION

From the desk of the Director CLAY POWELL

Sometimes I don’t think we say it enough: Thank you for being a member of the RPOA! Your ongoing support helps us fight the good fight…killing bad local and state legislation that impacts the rental and real estate investment community. We know it is sometimes hard to connect this work with “money in your pocket” in the short term, but, believe me, in the long run, we save our industry and our members thousands of dollars over the lifetime of their real estate activity.

Recently we were able to kill two bills that would have required a lead inspection of all rentals built before 1978 and subsequent abatement of lead hazards if any were found. If a landlord failed to inspect, they would be presumed to have knowledge that there were lead hazards in the property. These two bills were designed to provide a “catch 22” to force all rental property owners to do superfluous lead inspections and place owners in the line of liability—even if they didn’t know a hazard existed.

We also proactively pursue position changes. You may have recently read in the news that the City of Wyoming is going to a four-year certification inspection cycle for 1- to 3-unit rentals. The cycle was every two years. This change was due to the RPOA proactively requesting and seeking the change.

This one change will save hundreds, if not thousands, for landlords that own properties in Wyoming.

Still, all this wouldn’t be possible without your ongoing support.

Thank you!

4

WHERE LANDLORDS GO FOR HELP

WELCOME, NEW MEMBERS A-List Property Management LLC B2B Capital Funding LLC Baumann, Chad & Shawn Bieber, Marie Biller, Nathan Birdsey, Montaigne Blue Dog Rentals LLC Bobahil Properties LLC Bridgestone Property Management Brillhart, Mary Broekhuis, Erwin Brown Shoe Properties LLC Brown, Wendy Chapman, Donald Conquest Floor Covers Crawford, Julia Crowe, Jeff DeLisle, Robert A Fresh Look Homes Geer, George W Glaze, Darrel Goldman, Errol Greener View Ventures LLC Hardy, David Hartman, Violet M Heath, Greg & Carol Hoezee, Tim Huntoon, Christopher Hurst, Jesse L Hutson, Douglas & Tami Johnson, Amy Dillon Joosten, Timothy K & M Quality Homes LLC Karaba. Kassandra Keyes, Jeffrey Klotz Ventures LLC Konyndyk, Tom

Kornoelje, Casey Lee, Julie Lee, Julie K Lemke, Gary & Janeen Lettinga, Missy Logan, Jeanne MacBenLee LLC Moondance Properties Muilenburg, Mark Parable Real Estate Ventures Petrocelli, Ray Phillipson, Irv R & M Property Group LLC Race Properties LLC Rademaker Law PC RCB & Associates

Reges Service and Repair Russ, Michael Schaut, John Schuhman, Al & Debbie Shillinger, Doug & Sharon Steigenga, Charlotte Stonegate Property Management Sunnyside Group, The Swanson, Norma Tran, Huong Vander Griend, Susan Wilkinson, John B Jr Zeeff Propoerties LLC Zomermaand, Robert & Janine

Commercial Real Estate Financing FAST! • Fix & Flip / Buy & Hold • • • •

Multifamily / Mixed Use Industrial / SBA & More Portfolio Loans Hotel / Motel

• Bridge Loans

Contact Paul Moma 734.365.6878 866.907.8936 info@b2bloansfast.com www.b2bloansfast.com

May/June 2015 MICHIGAN LANDLORD 5

RENTAL PROPERTY OWNERS ASSOCIATION

A Huge !

BIGGEST & MOST SUCCESSFUL RPOA CONFERENCE IN HISTORY! The 2015 RPOA Annual Conference and Expo was the most successful in the history of the RPOA. Over 450 attendees were on hand to learn from over 15 speakers, including 5 nationally renowned landlording and real estate investment experts.

A big thank you to all the attendees and to our exhibitors and sponsors! Here’s a list of all those that supported the event: PLATINUM SPONSORS: DTE Noel Selewski Agency, Inc. Gold Sponsors: Columbo’s Floors to Go Compass Property Services Culver CPA Group Landlords-Supply.com United Properties of West Michigan, LLC SILVER SPONSORS: A-1 Heating & Air Conditioning B2B Capital Funding LLC GR Metro Plumbing, LLC Indoor Climate Solutions Quest IRA, Inc. Sherwin-Williams The Home Depot VanderBilt CPA Group Western Star Insurance Services Inc.

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EXHIBITORS: A&C Careful Moving Banner Drywall & Building Impressions Unlimited Bath Fitter Conquest Flooring Compass Property Management Equity Trust First National Bank of America Great Lakes Commercial Sales - Maytag Green Property Management Home Savers Mal’s Repairs, Cooks Cleaning & Best Plumbing PitBull Collections Priority Painting Red Cap Inspections Repcolite/Re-Coat Recycled Paints Republic Services, Inc. Simple Home Management Williams Distributing

WHERE LANDLORDS GO FOR HELP

May/June 2015 MICHIGAN LANDLORD 7

RENTAL PROPERTY OWNERS ASSOCIATION

LEGISLATIVE NEWS LEAD BILLS WITHDRAWN. RPOA WINS THE FIGHT!

8

WHERE LANDLORDS GO FOR HELP

LEAD BILLS WITHDRAWN. RPOA WINS THE FIGHT! We reported a few weeks ago that two bills were introduced into the Michigan House of Representatives early in this session that would have required lead inspections for all rental properties built before 1978 and, if lead hazards were found, abatement of those hazards. The RPOA was successful at defeating both of these related bills. The author of the bills willingly withdrew the bills once it was explained how detrimental the bills would have been to the industry and the cost of housing for low and moderate income families.

BILL WOULD ENABLE ELECTRONIC EVICTION NOTICES The Michigan House Judiciary Committee took up HB 4038 for testimony on Tuesday, March 3.

The bill, sponsored by Representative Forlini (R), would enable landlords to send eviction notices via email—as long as the lease contains a clause whereby the tenant agrees to accept notices in this fashion.

The RPOA supported the bill along with the Property Management Association of Michigan.

Only one other party submitted a position and that was neutral. The Judiciary Committee plans to vote on the bill next week. The bill is expected to be reported out favorably and go to the House floor for a vote.

SENATE BILL WOULD ENABLE LANDLORDS TO REFUSE SMOKING OF MARIJUANA MICHIGAN SENATE BILL 72 WOULD AMEND THE MICHIGAN MEDICAL MARIJUANA ACT TO DO THE FOLLOWING:

• Prohibit smoking medical marijuana on private property in violation of a prohibition established by the property owner, and in any portion of private property that was open to the public.

• Specify that the Act could not be construed to require a private property owner to lease residential property to a person who smoked or cultivated marijuana on the premises, if a written lease prohibited smoking or cultivating marijuana.

The bill has passed out of committee and is now ready for the third reading under the Senate Committee of the Whole. If the bill passes the House, it will then go to the Senate for consideration.

Continued on Page 11

May/June 2015 MICHIGAN LANDLORD 9

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

RENTAL PROPERTY OWNERS ASSOCIATION

AMERA MORTGAGE

HOME SAVERS

JEFF LAMBORNE AGENCY

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

HOMESAVERS exclusive offer for RPOA members! 50% off your first time using our carpet cleaning services for a studio, 1, 2, or 3 bedroom apar tment. Our other services include water damage clean up, mold removal and deodorization.

See a full life of our services online at www.homesavers.com or call 616-534-2388. We have convenient online scheduling for apartment cleaning as well!

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

BENDER MAINTENANCE & HOME IMPROVEMENT 10% of f 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 616550-4447.

FARM BUREAU J e f f L a m b o r n e Fa r m B u r e a u Insurance Agency offers group discounts. Call Jeff for details. 616447-0274.

GRAND RAPIDS CARPET & FURNITURE CLEANERS RPOA Member s rec ei ve 2 5 % 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! 616454-3385.

HUNGERFORD NICHOLS CPA’S & ADVISORS Free initial consultation on tax, accounting, and consulting services to RPOA members.

Contact Sam DeMarco at 616949-3200.

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. 616-891HEAT (4328)

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

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 616868-0050 for details.

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-to-Member Discount Program!

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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 New Members and Existing Members discount $11.55 rate per month is good for one year.

Rates will increase 3% after one year. Republic reserves the right to increase rates at any time. Call Roy James at 616-662-6862.

RMS LLC Towing of abandoned and improperly parked cars on your proper ty.

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

Check out the discounts being made to RPOA members only:

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 our two Grand Rapids stores, 1234 Michigan St. NE and 1205 Fulton St. West and our Walker store, 4300 Remembrance Rd. www.ryleesace. com.

SHAPE YOUR LIFE STUDIOS Our Studio would like to offer RPOA members a chance to get healthy and fit! We have spinning classes (indoor cycling) and group personal training classes for everyone at a reasonable price—$10 an hour! We are offering 50% off your first 30 days with us! There are no contracts or extra fees at all EVER. Call 616-3183503; check out our website, www. shapeyourlifestudios.com.

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.

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.

C a l l 616 - 2 9 9 - 17 57 o r e m a i l wmproclean@yahoo.com for FREE estimate.

WHERE LANDLORDS GO FOR HELP

LEGISLATIVE NEWS Continued from Page 9

GOVERNOR SNYDER ISSUES EXECUTIVE ORDERS FOR HOMELESSNESS PREVENTION Governor Rick Snyder has signed two executive orders designed to help support Michigan residents who are homeless or facing mental health issues.

Executive Order 2015-2 creates the Michigan Interagency Council on Homelessness which will update a 10-year plan to end homelessness and monitor and participate in its implementation.

Executive Order 2015-3 dissolves the Michigan Mental Health and Wellness Commission, which has completed its duty to provide recommendations on how to improve lives of and outcomes for individuals living with mental illnesses, developmental disabilities and substance abuse disorders.

May/June 2015 MICHIGAN LANDLORD 11

Noel Selewski Agency, Inc.

SELEWSKI SPECIALTY UNDERWRITING, LLC For All Your Landlord REO Insurance Needs Program Highlights: 1.

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Call today for your free quote, weather you have one property or one hundred, we can help.

855-50-INSURE (855-50-467873) E-mail: nselewski@yahoo.com www.noelselewskiagency.com

Important information for: Farm Bureau – Great Lakes Mutual Insurance customers As of 10/01/2014 Farm Bureau Insurance will no longer be associated with Great Lakes Mutual Insurance. This change in carrier may result in a premium change. If you are currently insured with Great Lakes Mutual and you would like to keep your policy where it is, you will need to switch to a licensed agent. Our agency has been writing with Great Lakes Mutual for the past 6 years and we have an outstanding record with the carrier and our customers.

Please contact our office today if you would like to keep your policy with Great Lakes Mutual Insurance. We can write in any area of Michigan, West, East, North, South.

Noel Selewski Agency Inc. Ph: 855-50-INSURE (855-50-467873) E-mail: nselewski@yahoo.com www.noelselewskiagency.com

WHERE LANDLORDS GO FOR HELP

Advertise in MICHIGAN LANDLORD! Contact RPOA Ad Salesperson, Kathy Bartnick at 616-318-3503 to reserve your ad space today!

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March/April 2015 MICHIGAN LANDLORD 13

RENTAL PROPERTY OWNERS ASSOCIATION

One of the biggest decisions a landlord makes is choosing the right tenants. In today’s rental environment, we have lots of choices. Even though I have a choice, I’ll still accept people with medical collections and some slow payments on credit cards, but I can’t accept people with recent evictions or bad experiences with other RPOA landlords.

One huge benefit of an RPOA membership is the availability of previous tenant history information through our association’s affiliate website, www.tenanthistorywebsite. com. Over 500 tenant records on the site are provided by our co-members concerning their previous tenants.

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WHERE LANDLORDS GO FOR HELP

EFFECTIVE AND FREE TENANT SCREENING AT YOUR FINGERTIPS Mark DeVries RPOA Member & Landlord

Most of this information is about how bad the tenant was and whether or not an unscrupulous tenant owes the landlord money. The site also contains well over 100,000 eviction court records from Kent, Ottawa, Muskegon, and Kalamazoo Counties and from the Hastings area. The records are easy to search. It’s just as easy to add a record so that other landlords won’t get stuck with bad tenants—and it’s free!

I am surprised at how few calls I receive from fellow landlords checking on past tenants. When I sign a lease with a tenant, I tell them up front, “If I end up evicting you, I will put your name on the bad tenant file where over 1,400 members of the RPOA have access.”

If we all checked the website, these prospective tenants would have a very

hard time renting in Grand Rapids or in one of our Affiliate member cities.

When I check on prospective tenants in the bad tenant file—if they are on the list—I tell them I cannot rent to them because they were evicted or owe money to another RPOA landlord. Because the site also enables a landlord member to note whether a past tenant owes them money or not, I go a step further and call the other landlord and give them any information I can about their previous tenant, i.e. place of employment, current address, telephone number, etc.

If everyone used this website, we could eliminate a lot of hassle and expense in the future and collect a lot more money

from judgments.

May/June 2015 MICHIGAN LANDLORD 15

RENTAL PROPERTY OWNERS ASSOCIATION

Why You Should Use Guest Cards

By Joyce Kirby

Whether you have several vacancies and upcoming notices to lease or you are down to that last “net to rent,” you must still qualify your prospects in order to ultimately secure the rental. How you remember and record needs and preferences of your callers and visitors is just as important as obtaining the information in the first place. Following is a question that came up on the topic of guest cards.

Q:

My property supervisor is really pushing us to use guest cards. However, this whole “qualifying thing” makes me feel uncomfortable like I am invading someone’s privacy. I have a pretty good memory and don’t really think it’s necessary to write down everything on a guest card. What’s the big deal anyway?

A: I commend you for being respectful of the privacy of others. This demonstrates professionalism and consideration

on your part. However, it is possible to note the preferences and personal information of your prospective renters without being intrusive. Remember the old adage — “The shortest pencil is longer than the longest memory.” No matter what your recall ability is, you will not be able to memorize all the needs and preferences of every client, along with their name and contact information.

Try asking each one of your prospective renters for “permission” to question them about their needs in order to provide them with the best possible service. It might sound something like this: “Is it okay if I ask you a few questions to find out what you’re looking for in your new home? I want to help you pick out the apartment that will best meet your needs!”

Then, at the end of the phone contact or visit, once you have established a rapport, it would be perfectly natural to ask for their email, phone number or mailing address so you can keep in touch with them.

Remember, you are in the “customer service” business. You can’t meet the needs of your customers if you don’t know what they are. (Neither can anyone else in your office if your phone callers show up and you are not there.)

You can’t follow up on the interest of your clients either, if you don’t have their contact information. Think of a guest card as a “tool.” When used properly, you will find that it is a professional, organized method for learning everything you ever wanted to know about your prospects but were afraid to ask!

Joyce Kirby is with Shoptalk Service Evaluations, “Ask the Secret Shopper” and may bereached at joyce@shoptalkservice. com or by visiting www.shoptalkservice.com Reprinted with permission.

Reprinted from AOA News and Buyers Guide, February 2015 issue.

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WHERE LANDLORDS GO FOR HELP

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May/June 2015 MICHIGAN LANDLORD 17

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

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.

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, Kathy Bartnick, at 616-318-3503 to reserve your ad space today!

• 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 2015 MICHIGAN LANDLORD 19

RENTAL PROPERTY OWNERS ASSOCIATION

REAL ESTATE INVESTORS:

THINGS 13 Your Insurance Won’t Cover

20

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 listed below.

DISPUTES WITH TENANTS OVER… • Rent increases – which have lead to massive costly lawsuits, 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 DISPUTES WITH CONTRACTORS OVER… • 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.)

DISPUTES WITH PARTNERS (INCLUDING FAMILY MEMBERS) 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.

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… • 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!

UNLIKE A PROPERLY STRUCTURED AND DOCUMENTED LLC, INSURANCE DOES NOT… • 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) RECAP OF WHAT INSURANCE DOES NOT COVER: • • • • • • • • • • • • •

TENANT DISPUTES FAIR HOUSING VIOLATIONS CONTRACTOR DISPUTES PARTNER/FAMILY DISPUTES OTHER DISPUTES RELATED LEGAL FEES FOR THE ABOVE CLAIMS THAT EXCEED LIMITS CLAIMS INSURANCE COMPANY SAYS ARE NOT COVERED ENVIRONMENTAL LIABILITIES LAWSUIT PREVENTION FINANCIAL PRIVACY IRS AUDIT DEFENSE 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 and is reprinted here with permission from Creative Real Estate Online at http://www.creonline.com Reprinted from AOA News and Buyers Guide, February 2015 issue.

May/June 2015 MICHIGAN LANDLORD 21

RENTAL PROPERTY OWNERS ASSOCIATION

A Special Offer for KARHA, MARA and RPOA MEMBERS

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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.

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Test your smoke detector each month and replace it if it doesn't work or if it is already 8 to 10 years old.

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1205 Fulton St. West 616.233.4711

Walker - 4300 Remembrance Rd. 616.453.7741

OPEN TO SERVE YOU: MONDAY - SATURDAY 8AM - 8PM, SUNDAY 10AM - 5PM

March/April 2015 MICHIGAN LANDLORD 23

Upcoming Seminars and Events HELPING REAL ESTATE INVESTORS BECOME MORE SUCCESSFUL

EPA Renovation, Repair & Painting Refresher Course

RENOVATION, REPAIR & PAINTING

DON’T MISS YOUR DEADLINE!

If you have a current RRP Certification,

4 Hour Refresher Classes Members: $110 / Non-Members: $125

look at your expiration date. If you took the RRP class 5 years ago, you are due for a recertification. Don’t let your current certificate expire or you’ll have to retake the initial full-day course!.

RPOA offers the Refresher class at a reasonable cost. Sign up before your expiration date to maintain your eligibility for this class. Those who wait until after the expiration date will be required to take the 8 hour class instead of the 4 hour class. You can register online at the RPOA website, www. rpoaonline.org. Check out the details on the calendar.

Sign up now to maintain your eligibility and you will be good for another 5 years.

This Course teaches rental property owners, contractors and other paid professionals how to work safely in housing with lead-based paint and comply with EPA’s Renovation, Repair, and Painting (RRP) Rule, and HUD’s Lead Safe Housing Rule.

CLASS LIMITED TO FIRST 6 PAID REGISTRANTS

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.

8 Hour Initial Classes Members: $130 / Non-Members: $150 May 28, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 10 attendees.

June 17, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 10 attendees.

July 29, 2015 • 8:00 a.m. to 5:00 p.m. Limit: 10 attendees.

May 6, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees.

May 20, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees.

June 3, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees.

June 10, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees.

June 24, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees.

July 15, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees.

July 22, 2015 • 8:00 a.m. to 12:00 p.m. Limit: 10 attendees.

May 5, 2015 • 10:00 a.m. to 12:00 p.m.

LANDLORD-TENANT LAW: AVOIDING FINES & PENALTIES Con-Ed Approved Class for Realtors. Earn 2 Hours!

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

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

May 19, 2015 • 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.

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 Held every Friday, 8–9 a.m.

Cheshire Grill / 2162 Plainfield NE, Grand Rapids, MI

West Michigan REI Club Meetup 2nd Monday of the Month at 6 p.m.

Buffalo Wild Wings Grill and Bar 2720 44th St. SW, Wyoming, MI

REGISTER BY CALLING 800.701.7762 OR EMAIL CONTACTRPOA@RPOAONLINE.ORG May 28, 2015 • 6:00 p.m. to 8:00 p.m.

June 30, 2015 • 9:00 a.m. to 12:00 p.m.

PROTECTING YOUR ASSETS - CE, PHP

LANDLORD CRIME PREVENTION CERTIFICATION How preventing crime can put money in your pocket.

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

Presented by David Hill, 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 David as he explains how to best protect your valuable assets from claims, lawsuits, and other un-doings.

June 12, 2015 • 10:00 a.m. to 12:00 p.m.

NEW MEMBER ORIENTATION Taught by Clay Powell. Class held in RPOA Training Room.

The class will cover: • National & local discounts and rebates available to members.

• Training on the use of the RPOA Website, including sign up, free form access, knowledge base and online videos.

• How to sign up for and use the free Tenant History Website for tenant screening.

• How to use Rentlinx.com and the free MIRentalGuide.com to list your rentals.

• An update on current RPOA governmental affairs activities.

• And more!

Ever wonder how to deal with crime at your rentals? Or, more importantly, how to prevent it in the first place? The RPOA is now offering a course for crime prevention certification to teach the various important approaches and techniques for dealing with or preventing crime. Knowing how to avoid renting to criminals and how to deal with crime quickly is an important component of any rental business. The right approach can put more money in your pocket and save you major hassles. The course will cover: • The importance of engaging in crime prevention.

• Preparing a unit for effective crime prevention.

• How to screen out criminals before renting a unit.

• Effective property management for crime prevention.

• Working with the police department.

• Working with neighborhood associations and neighborhood watch programs.

• Problem resolution, including eviction of criminals.

Each attendee will receive Landlord Crime Prevention Certification that can be used in promotions and more.

Location: RPOA 2nd Floor Training Room

June 16, 2015 • 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.

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

RENTAL PROPERTY OWNERS ASSOCIATION

Q

: Can RPOA members save money on health insurance with the new Health Care Laws?

Answer:

Yes!

You can save up to 100% on your health insurance - that’s correct premiums could be as low as $0!

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

• Coverage from well known local brand name carriers • No pre-existing conditions that prevent you from getting coverage

Call Kevin Martinez p. 616.862.7319 e. kevintoddmartinez@gmail.com

(616) 532-3626 or (888) 821-8846 Gerritsappliances.com

26

WHERE LANDLORDS GO FOR HELP

MEMBER INFORMATION NEW FORM ONLINE! LAND CONTRACT STATEMENT FOR PAYOFF OR ASSUMPTION We’ve added a new form for member use. Members can now access the Land Contract Statement for Payoff or Assumption—Michigan for free online. The form is fillable and printable. Click here to use the form. (http://rpoaonline.org/product/land-contract-statement-payoff-assumption-michigan/)

NATIONAL ASSOCIATION ACCESS TO HEALTH INSURANCE As a member of the RPOA, you are eligible for health insurance through the REIA Exchange courtesy of the National Real Estate Investors Association.

Shopping for health insurance is easy, and it’s required by law! But, don’t delay open enrollment for health insurance ends February 15!

Visit www.REIAexchange.com (password “REIA”) to shop for and purchase health insurance for you and your family. Here you will find the top carriers and best prices for all of your insurance needs.

Open Enrollment is going on now through February 15 and this is the only chance you will have to purchase health insurance for 2015. Don’t delay!

If you have questions, please call the REIA private exchange call center at (855) 558-9667!

REPUBLIC WASTE ANNOUNCES SLIGHT INCREASE Those using the great discounted service provided to RPOA members from Republic Waste for 96 gallon trash service will see a slight increase in their monthly charge. The rate for 2015 is going from $11.00 to $11.55.

This is still a great deal!

May/June 2015 MICHIGAN LANDLORD 27

RENTAL PROPERTY OWNERS ASSOCIATION

Join Us! BREAKFAST NETWORKING

Real Estate Investors (REI) Breakfast Networking When Every Friday (except holidays) 8 a.m. – 9 a.m.

Where Cheshire Grill 2162 Plainfield NE, Grand Rapids, MI

Every Friday morning, dozens of real estate investors, landlords and vendors participate in the RPOA’s free breakfast networking event. Share deals with other investors; learn what’s happening now in the local real estate market; share your haves and wants; learn from other investors; hear short informational presentations on relevant topics.

The event is free except for the cosyt of breakfast. No registration necessary!

28

WHERE LANDLORDS GO FOR HELP

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

Modern Appliance, 809 College NE, 616-4567039.

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 move-in ready apartments. Certified in HVAC, lead and mold.

Call Shane Sarver, 616-446-4899; email: ssarver@ soshomerehab.com. Licensed, insured, efficient.

Advertise in Michigan Landlord!

Contact RPOA Ad Salesperson, Kathy Bartnick, at 616-318-3503 to reserve your ad space today!

May/June 2015 MICHIGAN LANDLORD 29

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

www.tenanthistorywebsite.org

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 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) 560-3459

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.com

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) 328-5475 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: Kathy Bartnick (616) 318-3503

RPOA ATTORNEY: David Hill (616) 254-8417 30

E-mail: kvallie@aol.com

Haven’t signed up yet?

The Home Depot 2% RPOA Rebate Program Sign Up for The Home Depot Rebate Now! The RPOA membership in the National Real Estate Investors Association makes RPOA members eligible to receive this extremely valuable rebate.

Sign up for The Home Depot rebate program through the RPOA and receive 2% back on all your purchases*— no matter how small or big. This rebate is on top of any other discount or sale price, including contractor rates!

Call the RPOA today and start saving!

616-454-3385 * For semi-annual purchases over $1,249. Rebate checks are sent out semi-annually, usually in March and August.

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