Landlords Testify to Reform Move-and-Store

On June 24th a public hearing was held on three bills aimed at leveling the playing field for small landlords. Supporters from around the state drove into Boston to testify.

Two of the bills deal with "move and store," which is the informal name given to MGL Ch. 239 Section 4. Under the law, a landlord must pay to move and store an evicted tenant's belongings. Belongings must be stored for six months unless claimed sooner. Landlords must prepay for both the movers and the first one to three months of storage.

Last year the Worcester Research Bureau conducted an investigation into move-and-store laws nationwide. Their report said, "Of the more than 37 states we examined, at 180 days, Massachusetts requires the longest period that a tenant’s property must be taken care of and stored, making it one of, if not the most expensive of all the states for the care and storage of an evicted tenant’s property."

According to Sandra Katz, owner of Quality Property Management services in Worcester, the law was a result of one landlord's extreme callousness concerning the furniture and possessions of two recently evicted elderly women. The story became a rallying cry for the new law.

Informal phone polls conducted by MassLandlords indicate that the law is overkill. Only 4% of belongings are ever claimed, and if they are, the average time to claim is just one month.

"I think it was a very strong performance on our side, especially considering the testimony from Rep Silvia and the Fall River City Councilor," said Skip Schloming, Executive Director of the Small Property Owners Association, who provided testimony.

Many evictions end with tenants leaving of their own accord, either through skillful negotiation, "cash for keys," or mediation. The few evictions that end with physical removal are disproportionately costly to landlords.

Sheryl Chase, president of Chase Management Service, Inc. of Springfield, provided testimony indicating an average cost of $1,400 per eviction just to move and store.

Chase said, "I have performed 86 physical evictions in the past ten years. Here are some statistics of my experiences:

• In the households in which physical evictions were performed, I am holding judgments in the amount of $276,060 without adding in any interest.
• Less than 10% moved out after the notice was served by Hampden County Sheriff’s office but before the physical move out.
• 78 units have had their belongings moved and stored for the first 30 days at my company’s expense. The total unrecoverable cost for physical eviction is $119,652 and this is in addition to the $276,060.00 in judgments.
• 13% (11 households) picked up their belongings at the moving/storage facility within the first 30 days; paying off what was owed to the mover/storage company. NO PAYMENT WAS MADE TO THE LANDLORD IN ANY OF THESE CASES.

"The current move and store laws are a serious financial burden for landlords who have already lost thousands of dollars in unpaid rent!

"In the auto business if a person does not pay their car loan, a repossession company comes out and takes the vehicle and gives it back to the lien holder for resale in lieu of the debt.

"In the real estate field, if a person fails to pay their mortgage, the lien holder forecloses and sells off the real property in lieu of the debt.

"In the furniture rental business, if a person fails to pay their rent for the furnishings until it becomes theirs, the furniture company reposes the items and re-lets or sells the items to someone else."

The two bills offered different reforms. 2015 HB 1595 would allow the landlord to auction off belongings. 2015 HB 1597 would require the storage company to pay the costs of moving.

A third bill heard, 2015 HB 1596, would provide legal aid to indigent landlords, especially senior citizens whose sole source of income is a duplex or similar. In these cases, a non-paying tenant can cost the landlord up to 100% of their normal income. Tenants in such situations may be eligible to receive free legal aid, while landlords never are.

Landlords who testified, shown above, from left to right: George Valeri, Worcester; Sandra Katz, Worcester; Elmir Simov, Leominster; Jane Gasek, Worcester; Dawna Carrette, Concord. Not shown: Sheryl Chase, Springfield, Skip Schloming, Cambridge.