September 2014 Newsletter
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In This Issue:
- Letter from the Executive Director
- Fun Facts on Residential Housing
- The State Primary is September 9th
- Lowe's Uses Satellites to Track Purchases
- Questions and Answers
- Free Premium Content from MassLandlords.net
- Blog Articles You May Have Missed
- If a Tree Falls some place besides the Forest...
- Philadelphia Earns Millions by Seizing Homes
- Forest Trail To Connect Boston to Northampton
- Questions about Credit Scores for Mortgages
- Alternatives to Eviction?
Letter from the Executive Director
I hope you all had a relaxing and/or productive summer. Technically September is also part of summer, and it's often a beautiful month. There's plenty of time left to deal with any exterior projects you have planned.
Negotiations with other landlord groups continue. We're very close, but until the ink is dried, each side is bound to confidentiality. Stay tuned.
We at MassLandlords.net have two goals:
- Legislatively effective size
- Economically valuable services
They're two sides of the same coin. If we're big enough to influence legislation and ordinances, we can act as a valuable trade association for landlords in Massachusetts. If we offer worthwhile services, like tenant screening, we'll grow to include a legislatively significant number of landlords. I was recently shown a statistic that estimated there were 70,000 small landlords in the Commonwealth. That's a big number. Please share this newsletter to encourage your industry connections to sign up.
These are the major services we're currently offering online:
- Download all the legal forms you need.
- Email other landlords for advice 24/7.
We're exploring the possibility of a digital rent payment system. This system would offer distinct advantages to tenants and landlords. For landlords it would save time and cost less than credit card processing. For tenants it would make rent payment a recurring bill payment with a "no overdraft guarantee." If you're interested in learning more, click here to record your interest.
As always, if you have any questions or comments, you can email me or call my cell directly, 617-285-7255.
Sincerely,
Doug Quattrochi
Executive Director
MassLandlords.net
Fun Facts on Residential Housing
We recently became aware of a marketing campaign run by the National Multifamily Housing Council and the National Apartment Association. It's called Apartments: We Live Here. There's a page specific to Massachusetts.
Highlights: Residential apartments provide homes to 783,000 Commonwealth residents and contribute over $28 billion to the Commonwealth's economy.
You can explore these and other surprising figures at
http://weareapartments.org/massachusetts.
The National Multifamily Housing Council is the self-stated "premier trade association" for the apartment industry.
The National Apartment Association is the self-stated "leading advocate for quality rental housing."
The State Primary is September 9th
All Registered Voters Are Eligible
You could be excused for not following local politics as a private citizen. As a small business owner, though, you should at least know that there's an election coming up.
This year we're electing state-wide offices, including Governor, Lt. Governor, and Attorney General, among others. We're also electing our representatives and senators in the Massachusetts General Court (legislature). These offices matter to small business owners. Don't believe it? Look at this past newsletter where we describe how the Attorney General doled out almost $60,000 in fines to just three landlords.
The election happens in two stages. In September 9th's primary, candidates seeking office are winnowed down to one from each party. In the election on November 4th a single candidate is selected to fill the office.
You may vote in next Tuesday's primary regardless of whether you are enrolled in a party. You must be registered to vote. If you are not registered to either party, you will have to choose to vote either a Republican or a Democrat ballot.
Below are the district maps for state senators and state representatives. You can view these online at https://malegislature.gov/District/ProposedDistrictMaps
CBS reports that this year's primary will have very low voter turnout.
This is too bad, because in many ways the primary is the one election where we have the most choice. So vote on September 9th. It's a good time to make your vote count!
Lowe's Uses Satellites to Track Purchases
Business Week reported earlier this year that the Lowe's home improvement chain is using satellite imagery of parking lots to track how many people leave without making a purchase.
If you're interested in technology you'll find this short article an interesting read:
http://www.businessweek.com/articles/2014-02-26/lowes-most-powerful-sales-tool-satellites
Questions and Answers
Q: What are the requirements on lighting common areas?
A: The state sanitary code requires one foot candle for all interior common areas (410.254). It's ambiguous about stairways, but if you want to be conservative, you can read it as a requirement that you light exterior stairways:
Q: What are the 50 most expensive towns in Massachusetts?
A: Check out the list from WCVB. Boston isn't #1...
http://www.wcvb.com/money/50-most-expensive-towns-in-massachusetts/27474148
Q: Help, they smoked in the apartment and I can't get the smell out.
A: Go to a home improvement store and purchase a box of TSP, usually sold alongside paint. It's a strong cleaner. Sponge the walls and ceiling with it. (Hire help if needed.) The cleaning water will come off black with tar. Pour it down the toilet. Hire a rug cleaner (professional is best, or a Rug Doctor from a grocery store if that's all you can afford) to clean the carpets last. You shouldn't have to repaint if you TSP.
Blog Articles You May Have Missed
MassLandlords.net Testimonial: Dropped Ceiling Disaster
http://masslandlords.net/masslandlords-net-testimonial-dropped-ceiling-disaster/
Excerpt: When some Massachusetts tenants woke up, they headed into the kitchen to a nightmare. Their dropped ceiling had collapsed overnight!
5 Steps to Find a Good Tenant
http://masslandlords.net/5-steps-to-find-a-good-tenant/
Excerpt: When you’re looking to buy a new car, your first impression of the car is determined in large part by the ad you see. The same applies for good tenants seeing your apartment ad for the first time.
Summer Barbecue Successful, Despite Heavy Rain
http://masslandlords.net/summer-barbecue-successful-despite-heavy-rain/
Excerpt: This year’s MassLandlords.net summer barbecue drew over 60 landlords from Worcester, Cambridge, Marlborough, and Haverhill despite the “100% chance” of rain in Wednesday’s forecast.
If a Tree Falls some place besides the Forest...
This photo was taken by Rick Cinclair, Worcester Telegram and Gazette, Associated Press, following the 2014 Tornado that just hit Worcester. http://www.bostonglobe.com/news/nation/2014/08/31/rain-mars-labor-day-events-across-northeast/pxJdA9dSypcQpayZyRjUpJ/story.html
This article was written by Russell Sabadosa of the Rental Housing Association of Greater Springfield.
Does the landlord have to pay if a tree falls and causes damage to a tenant's car on their property? The answer is NO. The landlord's property coverage only covers the building. The tenants auto insurance would cover the damage from "acts of nature". The only way a landlord would be liable would be if he/she was notified in writing that one of their trees was damaged/rotting and they took no action to prevent damage from it.
This photo was taken by Rick Cinclair, Worcester Telegram and Gazette, Associated Press, following the 2014 Tornado that just hit Worcester.
http://www.bostonglobe.com/news/nation/2014/08/31/rain-mars-labor-day-events-across-northeast/pxJdA9dSypcQpayZyRjUpJ/story.html
In 2008 I learned this when a neighbor's tree fell and crushed three of my tenants' cars. I removed what fell on my property and notified my neighbor to take down the remaining tree before it caused further damage. When my tenants asked me to pay, I referred them to their lease which requires renter's insurance for their stuff and asked them to discuss with their auto insurance their options.
I am aware of a large management company that enforces the lease provision requiring renter's insurance by collecting a monthly fee for insurance by one of their preferred insurance carriers directly from the tenant in addition to the rent. They make it clear that the tenant is not required to use their carrier as long as they show proof they have their own policy.
Philadelphia Earns Millions by Seizing Homes
Article Echoes Tewksbury, MA Case from 2013
There is a legal procedure called "civil forfeiture" that enables law enforcement to impound private property without due process. Last year it earned state-wide attention when Tewksbury, MA police, in combination with the US Department of Justice, attempted to seize Motel Caswell on Main St in Tewksbury. They claimed the motel was a perpetual den of iniquity, vice, and drug abuse.
Russ Caswell worked with the Institute for Justice to clear his name and defend his title to the property. You can read about the case on the IJ site:
https://www.ij.org/massachusetts-civil-forfeiture
Russ Caswell worked with the Institute for Justice to clear his name and defend his title to the property. You can read about the case on the IJ site:
https://www.ij.org/massachusetts-civil-forfeiture
According to a recent article by Forbes, Massachusetts is not the worst. By comparison, the use of civil forfeiture is rampant and nearly uncontested in Philadelphia. The alternative headline is "Forfeiture Machine Turns Cops into Robbers." The city collects $6 million annually, which amounts to thirty times (30x) the per capita forfeiture rate of Los Angeles (another big taker).
The message to Massachusetts landlords is "help law enforcement do their job." If you do that, it's much harder, in Massachusetts at least, to bypass due process.
If you know someone in Pennsylvania, or want to feel better about living in Mass, you can read the full Philadelphia article here:
Forest Trail To Connect Boston to Northampton
One hundred and fifty years ago, only 28% of New England was forested. The vast majority of Massachusetts, in particular, was developed for agriculture, housing, and industry. Today over 80% of New England is forested. You can read a Harvard Crimson article about it:
http://www.thecrimson.com/article/2013/9/10/new-england-forests/
It's one of the world's great ecological recovery stories. Author Bill Bryson wrote, "Everywhere throughout New England you find old, tumbledown field walls, often in the middle of the deepest, most settled- looking woods- a reminder of just how swiftly nature reclaims the land in America.”
How does this impact landlording, you ask? A major new amenity may be coming soon to your tenants.
It's called the Mass Central Rail Trail. A railroad that used to run from Boston to Northampton is slowly being reclaimed. The ties and rails are being pulled up and replaced with smooth stone dust suitable for walking, biking or potentially even traveling on a wheelchair. Portions of the trail near Boston, Worcester, and Northampton are already open. They say it connects only 24 communities, but the number of parking locations along the trail will make it accessible to perhaps more than a third of the state.
All along the trail grant money is being awarded to complete the work. The Worcester Telegram reported another $150,000 awarded in August.
http://www.telegram.com/article/20140830/NEWS/308309884/1246
Questions about Credit Scores for Mortgages
We subscribe to the Mortgage Professor's mailing list and always recommend reading his articles.
Recently he wrote about credit scores.
"Credit scores are calculated using a variety of models that have small differences between them and generate similar but not identical scores. The range of scores in most models is 300 to 850, with a score below 620 considered sub-prime, and a score of 450 marking the subject as a deadbeat who no honest lender will touch."
He goes on to give advice about working with credit cards and collection accounts to get a better mortgage rate. This may apply to someone you know looking to buy their first owner occupied property, or potentially to you. Read the full article here.
http://www.mtgprofessor.com/A%20-%20Credit%20Issues/questions_about_credkit_scores.html
Alternatives to Eviction?
Attorney Harvey Alford of Alford and Bertrand LLC, a specialist in Landlord-Tenant Law and a MassLandlords.net advertiser, recently shared with us this Commonwealth blog article. It lists the various housing assistance programs available.
http://blog.mass.gov/blog/living-in-massachusetts/massachusetts-affordable-housing-programs/
This list of programs covers three basic areas:
- Public housing
- Housing choice vouchers (aka, "section 8")
- Emergency assistance
This is a good list. It led us to a surprising finding. The emergency assistance category could be a viable alternative to eviction in some cases.
The program is not listed there, but it's called RAFT. If a tenant is facing homelessness due to back rent owed and eviction, RAFT will pay up to $4,000 directly to the landlord or provide rent assistance for up to twelve months. The tenant in question must have a child and have no place else to go. There are strict income limits, but most tenants facing eviction will qualify.
It would be a very generous thing for you to do, as a landlord, to start making calls for your tenant to get them on RAFT. Who wouldn't prefer to stay in their home while they pull their lives together? In some rare cases a tenant won't deserve your support, but odds are good that someone with whom you've had good communication, who perhaps has suffered separation or loss of a job, would be saved from a downward spiral by a phone call made on their behalf.
To get started with RAFT, call the HomeBASE number at 1-877-418-3308 and let the operator know you're a landlord calling to keep a tenant out of a shelter. They will connect you with the appropriate local office to start the process.
A Note About Legal, Tax, or Other Advice:
Although we strive to provide information that is accurate, MassLandlords.net is neither an attorney nor a tax professional. You should always seek the advice of a properly licensed and qualified attorney or tax professional before taking action as a result of anything you read here.
