Transcript Good Landlord Training - Utah Business Licensing Association

Good Landlord
Training
Tom Wood
25 YEARS OF
EXPERIENCE AS A
LANDLORD
Hurricane Erin (1995)
Good parts of
being a landlord
NFL OWNERS
HOW DID THE
GOOD LANDLORD
PROGRAM START?
In 2004 Ogden wanted to encourage
the elimination of code violations and
public nuisances while trying to
prevent illegal activity on rental
properties.
Utah Law allows cities to charge
disproportionate license fees if
they conduct an impact study that
outlines the usage of rental
properties.
Cities that currently have Good
Landlord programs:
Centerfield
Logan
North Salt Lake
Salt Lake City
South Salt Lake
Taylorsville
West Jordan
Clearfield
Midvale
Ogden
South Ogden
Sunset
Washington Terr.
West Valley City
Fee reduction examples:
City
Taylorsville
Ogden
Clearfield
SLC
Fee
$90
$156
$190
$342
Reduced Fee
$15
$13
$27
$20
While the programs are voluntary,
85% of Ogden properties participate
in the Good Landlord program and Salt
Lake has over 90% participation.
Crime on Good Landlord properties
dropped 11%.
Calls for services dropped 18%
HIGHER REVENUE – LOWER COSTS
While crime in Good Landlord cities
dropped there was a proportional increase
in crime in surrounding communities.
Many of those communities now have
Good Landlord programs.
THE GOOD LANDLORD
PROGRAM
Participating Landlords are
Encouraged (or required) to:
Run a background check on every
applicant and don’t rent to applicants with
convictions within the last 4 years.
Evict tenants who create problems
THE GOOD LANDLORD
PROGRAM
Participating Landlords are
required to:
Maintain properties to code including
lawn/yard maintenance and junk storage.
Take a city approved Good Landlord
training class once every two or three
years depending on the city.
THE GOOD LANDLORD
PROGRAM
In return, city agrees to:
Reduce the per unit fee based on
participation.
Provide information on criminal activity.
Provide training and education on city
regulations and crime prevention.
Ogden Good Landlord Program
Benefits
Since its induction in 2004, almost 85% of
Ogden rental units have qualified for the Good
Landlord incentive, which means the property
owners qualified for a 90% discount on their
annual business license fees. In its first year of
the program, landlords who diligently followed
the guidelines also saw a reduction in crime at
their properties—in fact, 11.6% reduction in
crime, according to reports.
The Good Landlord program is building
more awareness that prevention really
does reduce, and may even eliminate
crime and unprofitable ventures
associated with apartment ownership.
Participating in the program proves to
enhance property values by decreasing
not only crime but also poorly maintained
and improperly operated rental
properties..
A summary of program benefits include:
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More profitable property ventures
Potentially enhanced property values
Better maintained & operated properties
Decreased crime
Business license 90% fee reductions
Program Drawbacks
1) Unhappy Landlords
Sir, I resent the exploitation of tax payers by private
industry. The "Good Landlord" training program was
indeed the worst educational experience of my life. The
presenter was rude, condescending and spent an
inordinate amount of time telling horror stories from his
personal experience as a landlord.
His model for
choosing a tenant was certainly to blame - a model he
held up to be ideal. I will continue to pay inflated license
prices just to avoid having to sit through another four
hours of this nonsense. Shame on local officials for
putting this program in place.
Program Drawbacks
2) Unhappy Tenants
“My landlord locked me out and I can’t get my stuff”
“We had a flood and now there’s mold everywhere and the
landlord won’t clean it up.”
“I hadn’t paid my rent so my landlord took all my
belongings”
“I received an eviction notice that says I have to move out
at the end of the month”
Program Drawbacks
3) Housing Advocacy Groups
A- No disclosure of tenant rights
B- Disparate impact which targets formerly
homeless, people with a mental illness and people
with disabilities due to drug usage.
C- The program doesn’t fix crime but only relocates
crime.
D- We are not rehabilitating someone with a criminal
record and reintegrating them into society.
Program Drawbacks
4) Negative press and public perception
“In Utah almost all released inmates who return to
prison do so within three years — most of those
within the first year after release. Yet state law
allows cities to force landlords to deny tenancy to
ex-offenders who have been out of prison less than
four years.”
Program Drawbacks
5) Extra Work for licensing staff
A- Tracking certificates
B- Notifying Landlords of expiring
licenses
C- Phone calls from angry
landlords/tenants
What kind of training do
landlords receive and does
it do any good?
Good Landlord classes
teach eight basic principles:
1)
2)
3)
4)
5)
6)
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8)
Utah Fit Premises Act
Evictions
Abandonment
Fair Housing
Best Practices
Screening
Inspections
CPTED
UTAH
FIT PREMISES ACT
Utah Fit Premises Act
Outlines landlord tenant
rights, responsibilities and
renter remedies
Duties of Owners –Habitability (3-days)
Duties of Owners – Deficient condition
(10-days)
Duties of Renters
Renters Remedies
EVICTIONS
Terminating A Tenancy for Cause
There are three causes to terminate a
tenancy
1. Failure to Pay
2. Failure to Comply
3. Public Nuisance
1.
2.
3.
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5.
The eviction process
Serving notices
Charging Fees
Using an attorney
Communicating with
tenants
Crisis Resolution
Nobody wants to be evicted and
rarely do you have a tenant that
should be evicted for any reason.
Communicate with your tenants so
they understand your needs and try
to work out problems and
misunderstandings before you both
wind up in court.
ABANDONMENT
Premises Abandonment
Two types
1 Day
15 Day
Rent must be past due.
Property Abandonment
Hold items 15 days, then
dispose.
FAIR HOUSING
Penalties
Million dollar penalties and
settlements are not uncommon!
In 2009, former L. A. Clippers owner
Donald
Sterling paid $2.75 million to
settle a discrimination lawsuit.
What is prohibited?
It’s illegal to discriminate against
someone because of their membership in
a protected class
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Seven federally protected classes
One Utah protected class
Two City Protected Classes
Types of Discrimination
◦ Disparate Treatment
◦ Disparate Impact
Protected Classes
7 Federally Protected
Disability (48%)
Race
(34%)
Color
National Origin
Familial Status
Sex
Religion
1 State Protected
Source of Income
2 City Protected
Gender Identity
Sexual Orientation
Disability
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Reasonable Modification
(Ramp)
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Reasonable Accommodation
(Service Animal)
Exempt from Fair Housing
Owner occupied buildings with no more
than four (4) units.
A private individual does not own more
than three (3) rentals.
Not Exempt from Fair Housing
Real estate agents or anyone in the
“business of real estate”
Anyone advertising rentals
SCREENING
The application
Signs of dishonest applicants
Setting rental standards
Doing Background Checks
Verify work and rental history
Gather personal information
BEST PRACTICES
Security Deposit Law
Types of Rental Agreements
Notice Requirements
Right of Entry
Fees – Late, NSF, Service
Rules – Pets, Smoking, Guests
Resident Retention
INSPECTIONS
Inspections
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Every three months
Formal or informal
Look for drug paraphernalia, signs of
criminal activity
Check for leaks, floods, safety issues
Observe, document & charge for damages
CPTED
Working with the Police
Let police know when you think criminal
activity is taking place on your property
 Evict tenants who are breaking the law
and let the city and the police know
 During inspections look for drugs and
drug paraphernalia, let the police know
what you find and let them decide what to
do with it
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What you learned
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Evictions
Fair Housing
Abandoned Property
Tenant Screening
Inspections
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How to be a GOOD LANDLORD!
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