2009 June | AAOA - American Apartment Owners Association

Welcome to the AAOA Forum, where we discuss the the topics our members want to hear and want to talk about. We like to take an active roll in the online community to help our members learn and help educate landlords new and old. We encourage you to participate and join in our discussions. Thanks.

Decking Choices Abound

Pros and Cons of Woods, Synthetics

by Paul Bianchina

Deck railings

If you’re thinking of a new deck or perhaps rehabbing your old one by replacing those worn deck boards, you have no doubt noticed that you have a whole lot of choices these days.

Natural wood, treated wood and synthetics abound, with some pros and cons to each choice.

So here’s a basic rundown on some of things you might want to consider when making your selection.

Also, remember to ask about fasteners when you make your decking choice. Some types of both natural and synthetic decking materials require specific fasteners to prevent staining, “mushrooming” around the screw head, and other possible problems, so be sure to select the right fastener for the job.

WOOD

Until relatively recently, natural wood was the only option you had for a deck. Today, even with all the choices, wood is still extremely popular, and it has lots of things going for it.

First of all, no synthetic deck board, no matter how well designed and engineered, can match the natural beauty of real wood. The warmth, color and grain variations found in wood enhance a deck, and seem to flow more readily into the outdoor surroundings. Wood is also a nice material to work with. It cuts and machines easily, and is easy to fasten.

On the downside, there is no denying that wood requires some maintenance to keep it looking nice. To keep that new-deck appearance, a deck stain or other treatment should be applied at least every other year. Even if you want to allow the wood to weather naturally to the soft gray color that most wood takes on after a few years, you need to apply some type of moisture and UV protection to help keep the wood from prematurely deteriorating.

When selecting wood for use on an exterior deck, you want to select one that is both weather- and insect-resistant. There are several good choices, with cedar and redwood being the most common and the most affordable. At the upper end of the price spectrum, other beautiful, long-lasting deck woods include mahogany, teak and plantation-grown South American hardwoods such as Ipe (also called ironwood).

Another choice for decking is pressure-treated lumber. Pressure-treating woods such as fir, hemlock, and pine will greatly improve the wood’s resistance to weather and insects, so it lasts considerably longer. The treatment process gives the wood a green or brown tint, which some people find attractive and some don’t. And while this is still natural wood with all its inherent grain characteristics, there are also small slots at regular intervals along the face of the wood where the treatment chemicals are injected.

SYNTHETIC DECKING

Within the last decade or so, the number of synthetic decking materials on the market has exploded. Synthetic decking, like wood, has some advantages and disadvantages that you need to look at carefully before making your final choice.

Synthetic decking is made from different types of materials, depending on the manufacturer, but is basically a mixture of plastic and wood fiber. The material is pressed and formed into boards, and during the molding process the face and sometimes the edge of the board is given a wood-grain appearance. Synthetic decking materials are available in several different grain patterns that range from fairly heavily embossed to almost smooth, as well as in a variety of different colors. Some types look remarkably like natural wood, while others retain more of an "imitation wood" appearance. Virtually all synthetics can be cut and machined with normal woodworking tools.

One advantage that synthetic decking has over wood is a reduced amount of maintenance. However, that does not mean that once the material is installed, you can just forget about it. In fact, synthetic decking was touted as being “maintenance free” when it first came on the market, but those claims proved to be a little optimistic.

Today, you will see synthetics marketed with terms more along the lines of "low maintenance," and that’s really a more accurate description. The decking needs to be washed periodically to remove dirt and dust, and many types are prone to staining from grease, oil and other materials. As such, it’s a good idea to use some type of protection under and around barbecues and other cooking areas.

Many synthetic decking materials are also subject to color fading over time, especially in areas with high UV concentrations. Prior to selecting a synthetic decking material, be sure that you take the time to see a couple of actual decks that have been in place for three years or more, so that you can get a better idea of how the material holds up over time.

Remodeling and repair questions? E-mail Paul at paulbianchina@inman.com.

See Paul Bianchina’s feature, Deck Railings Become Fun and Exciting.

American Apartment Owners Association offers discounts on products and services for landlords related to your real estate investment including REAL ESTATE FORMS, tenant debt collection, tenant background checks, insurance and financing. Find out more at joinaaoa.org.

For questions about our blog, contact our editor at kim@joinaaoa.org.

To subscribe to our blog, click here.

Tags: DIY+home+repair, real+estate+forms, landlords, landlord+associations, apartment+owners, landlord+forum, real+estate+investing

Posted by Kim Ezzell on 06.29.2009. CLICK to Leave a Comment »

Filed under: AAOA Forum

Landlord Quick Tip

Quick Tip #10: It’s What You Don’t See That Hurts You

Last spring we ran a post concerning a tenant’s death from carbon monoxide.

That death prompted a new law in Colorado requiring that landlords and property owners maintain adequate carbon monoxide detectors.

This trend is affecting many states and several have passed similar laws recently. To see if your state now requires carbon monoxide detectors in your rental property, check out this website.

Even if there isn’t a state or local law that requires detectors, landlords should still install carbon monoxide detectors to avoid potential injuries and any resulting legal liability. Carbon monoxide deaths have occurred from leaks in new appliances and in newly constructed homes.

Detectors are available at your local hardware store.

For more, see carbon monoxide poisoning.

See last week’s Landlord Quick Tip.

To subscribe to our blog, click here.

Tags: carbon+monoxide+poisoning, real+estate+forms, landlords, landlord+associations, landlord+forums, landlord+blogs, tenant+death, apartment+owners+associations, apartment+owners, real+estate+investments

Posted by Kim Ezzell on 06.29.2009. 1 Comment »

Filed under: AAOA Forum

How to Sail Through Your Next Eviction

by Michael Monteiro

Ship compass For obvious reasons, most landlords dread evicting tenants. But for as stressful as evictions can be, there are a number of things you can do to increase your chances of a positive outcome.

Following are some tips to keep in mind should you find yourself in a position where evicting a tenant becomes necessary.

1. Have Sufficient Reason
First and foremost, it’s absolutely imperative to ensure that the law recognizes your reasons for eviction as valid (be sure to check your specific state and local laws before beginning any eviction).

Despite the fact that it’s your property, tenants have rights too and any deviation from what is required by law may ultimately result in a lot of legal grief.

Generally, valid reasons for eviction include continuous lack of payment (eviction does not usually result from a single month’s missed rent), the end of a lease term, or a broken lease clause.

2. Know Your Eviction Time Lines
Although you may be tempted, it’s never okay to move a tenant’s belongings out of his apartment without serving the eviction through proper channels, all of which require a certain time frame that will be dictated by state or local law. Also, make sure that the grace period included in your rental agreement (the time the tenant is given to pay you in full) has passed.

But once you’ve carefully ensured that you are following the proper procedures, do make sure that you stick to the time lines imposed on the tenant in question. Mike Brewer of the M Brewer Group explains that in the course of overseeing thousands of multi-family units in various parts of the country over the past 15 years, he has seen many landlords trip up by “not following through with the consequences put in place. For example, you agree to accept a promise to pay from a resident and when they fail to follow through, you make another arrangement … or worse, you do nothing. Given the length of time it takes to get through the eviction process, it is best to apply consequences in a timely fashion.”

3. Be Prepared for Court Proceedings
Many eviction cases end up in court, so be sure that you are prepared. It’s important that you have all the background documentation necessary to prove the validity of your case. Remember, although your property is under question, the eviction process involves the removal of someone from their home so courts are sometimes sympathetic with the tenant.

4. Record Keeping Pays Off
Unfortunately, it’s often impossible to predict when things are going to go sour with a tenant—if it were, evictions wouldn’t be necessary in the first place. Keeping meticulous records for all of your tenants by using property management software or a similar organizational tool is the best way to guarantee that if you do find yourself in a legal battle, your case will stand up in court. Recording payments, complaints, and maintenance and repairs made to all units ensures that you will be able to make your case. Brewer says, “The biggest hurdle I have seen time and time again is failure on the manager’s part to have the necessary paperwork in place. It sounds cliché but it’s true: dotting your Is and crossing your Ts during the move-in process is paramount when it comes to evicting a resident.”

5. Keep Your Cool
This may sound like a peripheral point, but remaining calm and rational during the eviction process is critical. This is a legal matter and any emotional outbursts or actions may come back to haunt you down the line. If you feel that you are unable to do this, communicate with your tenant only through writing or through a third party. Brewer advises, “Many times our innate sense is to treat people we are evicting with a ting of selfish satisfaction. I think the main thing to keep in mind is that you are dealing with an emotionally-loaded situation and to the extent that you can preserve one’s dignity, you come out ahead.”

Of course, the best way to deal with evictions is to do everything in your power to make sure they never happen in the first place. Says Brewer, “Education at move-in is everything. I hesitate to overuse the term emotionally loaded but, at the same time, move-in day is laced with just that. We displace a lot of information on our new residents and eviction is usually not one of the topics. What I would suggest is to include some dialog along the lines of, ‘If you find yourself having a tough time paying rent, come and talk to us early about your options.’”

Michael Monteiro works for Buildium LLC, maker of online property management software for landlords, professional property managers, condos and homeowner associations (HOAs) and is author of the The Buildium Property Management Blog.

Check out the Buildium Blog for more property management resources.

See our feature, 3 Easy Ways to Botch an Eviction.

Tags: tenant+eviction, landlord+tenant, landlords, landlord+associations, landlord+forums, landlord+blogs, real+estate+forms, property+management+software, property+management+tips, apartment+owners

Posted by Kim Ezzell on 06.29.2009. CLICK to Leave a Comment »

Filed under: AAOA Forum

Smart Remodel, Big Returns

Upgrade tips for bed, bath and beyond

by Bernice Ross, Inman News

DEAR BERNICE: We’re planning on remodeling our two-bedroom, one-bath house and were wondering what upgrades will produce the best return on our investment. The house needs a new kitchen, and another bedroom and bath. We also thought of putting in a pool. Where should we begin? –Andy K.

DEAR ANDY: A common misconception about upgrades is that they always increase the value of the property. Upgrades normally make a house more saleable (i.e. easier to sell.) They don’t necessarily increase the property value. For example, assume that you upgrade your property with cherry cabinets and green granite countertops. You sell the home to someone who wants white European cabinets and black countertops. Your upgrades made your home more attractive to more buyers, but in this case, the upgrades are not worth much if the buyer intends to tear them out. When deciding what to upgrade, the smart decision is to upgrade your home for your own enjoyment.

You will obtain the biggest return from your investment if you add the extra bedroom and bath. Increasing bedroom and bath count is one of the smartest ways to increase property value. It also makes your property more appealing to a wider variety of buyers.

As a rule of thumb, increasing square footage increases value. There are some exceptions, however. For example, if most of the homes in your area are 2,000 to 3,000 square feet and you do an addition that makes your home 4,500 square feet, chances are you have over-improved the property. This means that your property is worth less than 4,500-square-foot houses that are surrounded by houses of similar size. The smaller homes in your immediate vicinity would drag your value down.

In terms of return on investment, pools are tricky. Do most of the homes in the area have pools? If so, adding a pool would make your property more comparable to the other homes in the area. On the other hand, many people don’t want the upkeep or risks associated with having a pool. Others may prefer to have a nice backyard where they can create the perfect garden.

Be sure to protect yourself by carefully investigating any contractors prior to hiring them. Does the contractor hold the appropriate licenses to do work in your city? Use Google to search the contractor’s name and company. Also search sites such as Yelp. Ask for references and contact them. If possible, go see the contractor’s work firsthand. Finally, it’s also smart to obtain at least three bids. If a bid is too good to be true, be wary.

If you’re feeling confused (which is what I felt when we were facing a major remodel on one of our houses), you may want to explore a company such as ServiceMagic.com. They screen contractors prior to adding them to their database. You can read reviews as well as obtain estimates. After reviewing bids from four ServiceMagic general contractors, we chose one who did an outstanding job on our remodel. Again, no matter whom you interview, carefully investigate their reputation and their work before giving them a deposit.

Bernice Ross, CEO of RealEstateCoach.com, is a national speaker, trainer and author of “Real Estate Dough: Your Recipe for Real Estate Success” and other books. You can reach her at Bernice@RealEstateCoach.com.

See our feature, Save Money on Remodeling.

For questions about our blog, contact our editor at kim@joinaaoa.org.
To subscribe to our blog, click here.

Tags: home+repair, DIY+home+repair, real+estate+investing, real+estate+forms, landlords, tenant+background+checks, landlord+associations, apartment+owners+associations

Posted by Kim Ezzell on 06.29.2009. 1 Comment »

Filed under: AAOA Forum

Landlord Gives Easter Bunny the Boot

Would you evict a tenant over a marshmallow ‘Peep’ pyramid?

One Colorado landlord was faced with this dilemma.

The tenant was asked, but refused to take down an edible Easter decoration that she displayed in the common interior hallway outside her apartment door.

The display remained for two and a half weeks after Easter.

While the tenant claimed she had the support of her neighbors to maintain the decorations, the landlord feared the display would attract insects and otherwise prevent him from keeping the building safe and sanitary.

The tenant received a notice informing her that the display violated terms of her lease.

After the tenant’s continued refusal to take down the sweet-tasting display, the landlord did it for her.

In retaliation, the tenant refused to pay her May rent. The landlord filed an eviction action for failure to pay rent.

The tenant has retained an attorney and is challenging the eviction proceeding in court.

See our feature, Landlord Struggles to Evict Tenant’s for Over-Exposure.

For questions about our blog, contact our editor at kim@joinaaoa.org.

To subscribe to our blog, click here.

Tags: landlords, landlord+tenant+disputes, apartment+owners, apartment+owners+associations, landlord+associations, landlord+forum, landlord+blog, real+estate+forms, tenant+background+checks, evictions

Posted by Kim Ezzell on 06.25.2009. 3 Comments »

Filed under: AAOA Forum

Landlord Wants to Offer Discount in Lieu of Interest on Security Deposit

Rent it Right

by Janet Portman, Inman News

Q: My local landlord-tenant ordinance requires that I pay interest on tenants’ security deposits.

The ordinance doesn’t specify how the interest should be paid.

To make things simple, I plan on giving tenants a credit once a year on their rent for that month.

Is this a good idea? –Judith J.

A: A few states, and several cities, require landlords to pay interest on tenants’ deposits, and many of these laws and ordinances do specify how those payments should be made. Some allow landlords to do as you suggest, and others require landlords to pay interest directly to the tenant.

Because you have a choice, consider paying the interest directly to the tenant instead of accepting less rent. Practical considerations underlie this advice.

First, your check provides a clear and easily found written record that you did indeed pay the interest owed. Having that readily available will be handy if a dispute arises over whether you followed the law.

Second, suppose your tenant fails to pay the rent and you need to serve a notice to “pay or quit”? If the amount of rent you demand does not take into account any interest owed, you may find your tenant fighting the notice on the grounds that it incorrectly states the rent (when these notices fail to demand the exact amount of rent due, a judge may find that they are deficient, which would end your lawsuit and make you start over). To prevent a tenant from raising this defense, you could attach a check for the interest owed to the pay or quit notice … but why not simply pay by check in the first place?

Landlords who are not legally required to pay interest on deposits might consider doing so anyway. You’ll gain a marketing edge and score big with your tenants. From their point of view, it isn’t fair for landlords to be making money on the deposit.

Janet Portman is an attorney and managing editor at Nolo. She specializes in landlord/tenant law and is co-author of “Every Landlord’s Legal Guide” and “Every Tenant’s Legal Guide.” She can be reached at janet@inman.com.

See Janet Portman’s feature, Poor Housekeeping Could Cost Tenants.

To subscribe to our blog, click here.

Tags: landlords, landlord+tenant+law, landlord+associations, apartment+owners+associations, real+estate+forms, tenant+background+checks, apartment+owners

Posted by Kim Ezzell on 06.24.2009. 1 Comment »

Filed under: AAOA Forum

Is $450 Cleaning Charge Legal?

by Robert Griswold

Carpet cleaning Q: I recently vacated my apartment and am in a dispute with the resident manager about the proper charges for cleaning and repairs.

We had a three-bedroom unit, and I lived there for two years with my spouse and our four young children.

I don’t think we damaged the property significantly or that the cleaning needed is unusual after the length of time we lived there, especially for a family our size. Read the rest of this entry »

Posted by Kim Ezzell on 06.24.2009. 4 Comments »

Filed under: AAOA Forum

Condotels Don’t Pencil Out

6 factors that negatively impact investments

by Steve Bergsman

Dollar sign Despite the oversized ego, I’ve been a big fan of Donald Trump. After all, how many real estate developers have created a “brand” out of a family name? Once, when I interviewed him, he told me putting “Trump” on a building created a huge premium as compared to, for example, an equivalent apartment unit built by someone else.

So it was with some dismay as I watched him over the past few years try to carve his way through the world of condo hotels, now often advertised as “condotels.” This product has been on my watch list as one of the worst real estate investments ever created for the simple reason that it is really just a financing mechanism for the developer and for all practical purposes, caveat emptor, which in today’s world means let the buyer be damned. Read the rest of this entry »

Posted by Kim Ezzell on 06.22.2009. CLICK to Leave a Comment »

Filed under: AAOA Forum, Financing

“Ghosting” Rears Its Head After Paint Job

by Barry Stone, Inman News

DEAR BARRY: I painted the inside of my home only six months ago, and already it needs to be repainted. Portions of the walls have become visibly darkened. Strangely, this occurs wherever there are framing members behind the drywall. I can see where all the wall studs and ceiling joists are located. Not only that, I can see dark spots where all the drywall nails are located. What could be causing this, and what can I do about it? –Bill

DEAR BILL: What you are seeing is a phenomenon commonly called “ghosting.” When ghosting occurs, extremely fine soot particles in the air collect on the walls and ceilings at locations where the temperature is cooler and where there is higher electrostatic attraction.

Cooler temperatures occur at the framing members on exterior walls because the studs are exposed to the outside veneer of the building, and at ceiling joists because they are exposed to the cold air in the attic. Electrostatic attraction occurs at the framing members because the moisture content in the wood is typically higher than that of the drywall. And the drywall nails, being made of steel, also have a high degree of electrostatic conductivity.

If you paint your home again, the ghosting will reappear unless you eliminate the source of the soot particles. Soot typically comes from fireplaces, furnaces and other fuel-burning fixtures that are not venting properly. The fixtures themselves may be defective, but low air pressure in energy-efficient homes is another common cause. Some buildings are so well sealed that low air pressure can occur when exhaust fans are in use. This can adversely affect the venting of combustion exhaust from fuel-burning fixtures.

If you live in a high-efficiency home, you may need to compromise some of its air-tight characteristics by providing some exterior ventilation. For an evaluation of your specific situation, you should consult with an indoor air-quality specialist. Your local gas company may even have consultants who provide this kind of service and advice.

You should also have your gas fixtures checked by the gas company to be sure that there are no safety issues with the venting of exhaust.

To write to Barry Stone, please visit him on the Web at http://www.housedetective.com/.

See our feature, 16 Cheap, Easy Ways to Save Around the House.

Check out our extensive Green Forum for ideas that save money, and the environment.

To subscribe to our blog, click here.

Tags: property+management+tips, DIY+home+repair, landlords, landlord+associations, apartment+owners, apartment+associations, real+estate+forms, tenant+background+checks, green+tips, green+landlords, green+forum

Posted by Kim Ezzell on 06.22.2009. 1 Comment »

Filed under: AAOA Forum

Law Protects Disabled Lease-Breaker

Rent it Right

by Janet Portman, Inman News

Q: My husband and I are four months into a yearlong lease. My husband has multiple sclerosis, and now uses a wheelchair. The bathroom door is too narrow to let him through, and once in, the chair wouldn’t even be able to turn because the room is so small.

We need to find an accessible apartment, but the landlord says we have to find someone to take over the lease in order to avoid being responsible for rent for the rest of the lease term. What can we do? –Abbie G.

A: The first thing to do is educate your landlord on his responsibilities under the federal Fair Housing Amendments Act, which protects the rights of disabled tenants. The Act has two broad rules for landlords: First, when a disabled tenant proposes a change in the landlord’s rules or policies, the landlord must comply unless the change would be unduly burdensome (generally, the landlord pays whatever expense is associated with the request). This is known as an “accommodation.”

For example, a tenant in a wheelchair would be entitled to preference when it comes to parking, which is otherwise often handed out on the basis of seniority. Second, when a tenant proposes modifying his own living space, the landlord must allow the modification — but again, subject to the reasonableness of the request (except in Massachusetts and some federally financed housing, the tenant pays for these modifications).

From the sounds of things, modifying your apartment isn’t feasible. You’re not asking for the relatively easy installation of grab bars or lowering of light switches. To accomplish the goal (to allow your husband to live safely and comfortably, by being able to enter the bathroom and move about in it), you’d have to expand the room, moving walls, fixtures and plumbing. This is major work, and few tenants are able to pay for it. Nor would most landlords want their building modified to this extent. Just as a landlord can refuse, say, to install an elevator in an old building because the cost would be unduly burdensome, you too can decide that major interior reconstruction is not a reasonable response to the problem.

Looking for a new place makes sense. In most situations, lease-breaking tenants would indeed be on the hook for the balance of the rent unless they come up with an acceptable substitute (or the landlord finds one, using reasonable efforts to re-rent). But we’re not talking about a normal situation here.

Discrimination against a disabled person includes “a refusal to make reasonable accommodations in rules, policies, practices or services, when such accommodations may be necessary to afford (a handicapped) person equal opportunity to use and enjoy a dwelling.” (42 U.S.C. § 3604(f)(3)(B))

In practical terms, you are asking the landlord to vary a “rule or policy” — namely, the ending date of the lease — so that your husband can live in a place that is safe and accessible. At least one court has recognized the validity of a request like this (see, for example, the case of Samuelson v. Mid-Atlantic Realty Co., Inc. 947 F.Supp. 756 (D.Del., 1996)).

Have a talk with your landlord, and point out that early termination of your lease is the legally required response to your request for an accommodation based on your husband’s disability. If you don’t get anywhere, consider contacting HUD, where you can file a housing complaint online. Meanwhile, find a safe place and move. If your landlord keeps your deposit to cover unpaid rent, you’ll have to sue in small claims court to get it back. It’s hard to imagine a judge ruling against you and your husband.

See Janet Portman’s feature, Raiding Deposit Raises Legal Issue.

To subscribe to our blog, click here.

Tags: tenants+with+disabilities, landlords, apartment+owners, apartment+associations, real+estate+forms, landlord+associations, tenant+background+checks

Posted by Kim Ezzell on 06.22.2009. 1 Comment »

Filed under: AAOA Forum

« Previous Entries

American Apartment Owners Association

Tenant Screening

Rent Collection

Save Money

Free Services

Get Expert Help

Categories

Archives

Decking Choices Abound

Landlord Quick Tip

How to Sail Through Your Next Eviction

Smart Remodel, Big Returns

Landlord Gives Easter Bunny the Boot

Landlord Wants to Offer Discount in Lieu of Interest on Security Deposit

Is $450 Cleaning Charge Legal?

Condotels Don’t Pencil Out

“Ghosting” Rears Its Head After Paint Job

Law Protects Disabled Lease-Breaker