The Rental Housing Association of Greater Portland's monthly publication. This publication provides important information on the rental housing industry and the events that the association hosts in the Portland OR area.
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JULY 2012 www.RHAGP.org UPDATE UPDATE Oregon Apartment Association, Inc. WWW.RHAGP.ORG JULY JULY 2012 2012 THE RENTAL HOUSING ASSOCIATION of Greater Portland INDEX INDEX RHAGP Dinner Meeting 3 & 6 RHAGP Dinner Meeting 3 & 6 Upcoming Events 4 Upcoming Events 4 President’s Message 5 President’s Message 5 Dear Maintenance Men 7-8 Dear Maintenance Men 7-8 Annual Picnic 9 Annual Picnic 9 Death Tax 10-11 Death Tax 10-11 Preferred Service Guide 12-14 Preferred Service Guide 12-14 RHAGP Classes 15 RHAGP Classes 15 Don’t Become a Car Prowl Victim 16 Don’t Become a Car Prowl Victim 16 Social Security # 16 Social Security # 16 Ban of Rodenticides 20 Ban of Rodenticides 20 Why Are You a Landlord 18-20 Why Are You a Landlord 18-20 Laundry Room Burglaries 21 Laundry Room Burglaries 21 Fire Safety 22 Fire Safety 22 Senator Bruce Starr Labor Commissioner Brad Avakian Dboejebuft gps Mbcps Dpnnjttjpofs up tqfbl bu Kvmz Ejoofs Nffujoh Wednesday July 18th , 2012 at Red Lion Inn Convention Center SEE PAGE 3 FOR DETAILS Coming Soon- the RHA’s Annual Picnic SEE PAGE 9 for more details.
Transcript
JULY 2012 Page 1
www.RHAGP.org
UPDATEUPDATEO r e g o n A p a r t m e n t A s s o c i a t i o n , I n c .
Senator Bruce Starr Labor Commissioner Brad Avakian
Dboejebuft!gps!Mbcps!Dpnnjttjpofs!
up!tqfbl!bu!Kvmz!Ejoofs!Nffujoh
Wednesday July 18th , 2012at Red Lion Inn
Convention CenterSEE PAGE 3 FOR DETAILS
Coming Soon- the RHA’s Annual Picnic SEE PAGE 9 for more details.
Page 2 RHAGP UPDATE
RHAGPRHAGPCOLOR AD COLOR AD
AVAILABLE !AVAILABLE !
ARE YOU LOOKING TO GET THE WORD OUT ABOUT
YOUR BUSINESS?
DO YOU OFFER A SERVICE THAT WOULD BENEFIT
LANDLORDS?
ADVERTISE IN RHA’S MONTHLY NEWSLETTER THE
UPDATE!
THE UPDATE REACHES OVER 1,600 LANDLORDS
THROUGHOUT THE GREATER PORTLAND AREA,
AND IS ALSO SEEN ONLINE AT RHAGP.ORG
MAKE THIS SPACE YOURS!
Contact Alita at 503/254-4723 for more advertising information
RHAGPRHAGPCOLOR AD COLOR AD
AVAILABLE !AVAILABLE !
ARE YOU LOOKING TO GET THE WORD OUT ABOUT
YOUR BUSINESS?
DO YOU OFFER A SERVICE THAT WOULD BENEFIT
LANDLORDS?
ADVERTISE IN RHA’S MONTHLY NEWSLETTER THE
UPDATE!
THE UPDATE REACHES OVER 1,600 LANDLORDS
THROUGHOUT THE GREATER PORTLAND AREA,
AND IS ALSO SEEN ONLINE AT RHAGP.ORG
MAKE THIS SPACE YOURS!
Contact Alita at 503/254-4723 for more advertising information
JULY 2012 Page 3
www.RHAGP.org
SPEAKERS
DIRECTIONS
Please call 503/254-4723 for reservations. Reservations for dinner must be made by Monday July 16, 2012. If you register for dinner and cannot attend, you must cancel by Tuesday July 17th, or you will be charged a $5.00 no show fee.
Macaroni Salad
Fresh Tropical Fruit Salad
Teriyaki Chicken
Steamed White Rice
Stir Fried Vegetables
Macadamia Coconut Cake
Hawaiian Fruit Punch
Coffee, Tea Decaf or Iced Tea
Tropical Sunset Dinner Buffet $26.00
Red Lion InnConvention Center1020 NE Grand Ave.Portland, OR 97232
FROM EAST PORTLAND- Intersection of I-205 and I-84 take I-84 WEST to EXIT 1 toward Lloyd Center. Keep left at the fork, follow signs for CONVENTION CENTER/ROSE QUARTER and merge onto NE 16TH DR. Continue onto NE LLOYD BLVD. Turn right onto NE GRAND AVE. RED LION will be on the left.
FROM I-5 Take EXIT 300 for I-84 EAST toward PORTLAND AIRPORT/ THE DALLES. Keep right at the fork, follow signs for OMSI/CENTRALEASTSIDE INDUSTRIAL DISTRICT and merge onto SE YAMHILL ST. Turn right onto SE MARTIN LUTHER KING JR BLVD. Turn left onto SE SALMON ST. Take the 1ST left onto SE GRAND AVE destination will be on the left.
JULY D INNER MEET ING SPEAKERS BRUCE STARR & BRAD AVAKIAN, CANDIDATES F O R O R E G O N L A B O R COMMISSIONER SEE PAGE 6 FOR MORE DETAILS
5:15 p.m. Membership Orientation Meeting and Doors open
++++Door Prizes and Money Pot++++
ORIENTATIONIf you are a new member, or just want to learn more about RHAGP, you should attend our orientation at 5:15pm before every dinner meeting. Meet board members who will discuss the numerous benefi ts attributed to being a part of our landlord advocacy group.
Affi liate Speaker- JR Johnson Inc., Katrin Arp
5:30pm- Ask the Expert Mr. Appliance of Portland Brian Morse
WHEN RHAGP WHEREWednesday, July 18th
6pm DINNER MEETINGRed Lion Inn
Convention Center1020 NE Grand Ave.Portland, OR 97232
Other Events:July 23rd, 10 a.m. - Kiwanis Doernbecher Golf Tournament To register: www.kdccp.org/19.html Persimmon Country Club - Call Dave Edwards for more info 503-761-3558
Date Event Location Time Notes8/8 Board Meeting RHA Offi ce 5pm8/9 Commercial Lending Class RHA Offi ce 6:30pm See August Update for details.8/14 *Online Tenant Screening
ClassRHA Offi ce 11am Reserve by 8/13/2012, 5 people need to
register for there to be a class.8/15 Annual Picinic Oaks Park See Page 9 for more details.8/28 Identifying Water Intrusion
Problems ClassStandard TV & Appliance
6:30pm See August Update for details.
8/28 *Online Tenant Screening Class
WebEx 7pm Reserve by 8/27/12, 5 people need to register for there to be a class.
UPCOMING EVENTSScan QR Code on Smartphone for Online Events Info.
JULY 2012 Page 5
www.RHAGP.org
PPRESIDENT’SRESIDENT’S M MESSAGEESSAGE By Phil Owen, RHAGP President By Phil Owen, RHAGP President
I received an email from Commissioner Nick Fish today (6/12/2012) regarding fair housing. Included was a link to the Fair Housing Council of Oregon report which has been shown to be false and misleading. Yet it is still being used as the basis for the City of Portland’s low income policies. Why should they let facts get in the way of implementing the program they want?Smoke detectors and batteriesOne of our members was written up by the fi re marshal for having smoke detectors that did not have the proper batteries. I thought this might be a good time to clear this up for the rest of us. The fi re inspector quoted 907.2.11 and 479.250 and 479.300 as all stating the battery requirement.I could not fi nd ORS 907.2.11 so I will let that go.The following information is from the OregonLaws.org website. State Legislature many years ago required ionization smoke alarms/detectors sold and installed in the state of Oregon be equipped with a ten year battery.
479.250¹ Defi nitions for ORS 479.250 to 479.305479.300 prohibits tampering with a smoke detector which includes removing working batteries:Removing or tampering with smoke alarm or smoke detector prohibited.No person shall remove or tamper with a properly functioning smoke alarm or smoke detector installed in conformance with ORS 479.250 479.270 instructions: Owner of rental dwelling unit to supply, install and maintain smoke alarm or smoke detector for testing to be provided.(1) The owner of any rental dwelling unit or the owners authorized agent shall be responsible for supplying, installing and maintaining the required smoke alarms or smoke detectors and shall provide a written notice containing instructions for testing of the devices. The notice shall be given to the tenant at the time the tenant fi rst takes possession of the premises.(2) The duty of the owner or authorized agent of the owner to maintain the required smoke alarms or smoke detectors, including providing working batteries, arises only:(a) Prior to the beginning of every new tenancy when the tenant fi rst takes possession of the premises; and(b) During the tenancy upon written notice from the tenant of any defi ciency, not including replacing dead batteries, as provided in ORS 479.275 (Tenant of rental dwelling unit to test smoke alarm or smoke detector and replace dead batteries).(3) Supplying and maintaining a smoke alarm or smoke detector under ORS 479.250 (Defi nitions for ORS 479.250 to 479.305) to 479.305 (Smoking policy disclosure) shall be considered a habitable condition under ORS 90.320 (Landlord to maintain premises in habitable condition.479.275 makes the tenant responsible for replacing
dead batteries during the tenancy.Tenant of rental dwelling unit to test smoke alarm or smoke detector and replace dead batteries.It shall be the responsibility of the tenant of any rental dwelling unit to perform such tests on the smoke alarms or smoke detectors located in a part of the dwelling unit that the tenant is entitled to occupy to the exclusion of others as are recommended by the manufacturer’s instructions and immediately notify, in writing, the owner or authorized agent of any defi ciencies. Testing intervals shall not exceed six months. It shall also be the responsibility of the tenant during the tenancy to replace any dead batteries, as needed. 479.297¹ Ionization smoke alarms• required equipment (1) All ionization smoke alarms sold in this state that are solely battery-operated shall be packaged with a 10-year battery.(2) All ionization smoke alarms sold in this state shall include a hush mechanism that allows a person to temporarily disengage the alarm for a period of not more than 15 minutes.I was told that The City of Portland Housing Inspectors don't check for the type of battery if the alarm is working. If the alarm is not working or missing, then our violation macro states that the alarm needs to be equipped with the required 10 year battery. The violation of Title 29, the City's Property Maintenance Code is sent to and is the responsibility of the property owner to repair. The landlord can exercise their rights under Landlord/Tenant law by enforcing the rental/lease agreement if it's the responsibility of the tenant to maintain.
As I read this- remember I am not an attorney and I don’t play one on TV- a smoke alarm can’t be sold without a 10 year battery. It is the landlord’s responsibility to have the proper smoke alarms in the required areas of the apartment (each fl oor common aria and each bedroom). It is the tenants responsibility to test and maintain the detectors.
I have a policy for my properties that I inventory 9 volt lithium batteries and will give them to any tenant that asks. With the number of these batteries that are sold, the price has come down from around $15.00 when I fi rst started buying them to $6.59 each. This way I am sure I have done as much as I can to conform to the law and in the best interest of my property and tenants.
I hope this helps. As members of the Rental Housing Association of Greater Portland we are working together to inform and educate landlords so they can be more profi table. Check our web site for a list of classes. www.rhagp.org.
Page 6 RHAGP UPDATE
When:Wednesday July 18. 2012
Where:Red Lion Inn
1020 NE Grand AvePortland, OR 97232
Price:$26.00 per person.
Call (503) 254-4723 for Reservationsor www.Rhagp.org
Agenda:6:00pm Meeting Starts
Candidates for Oregon Labor Commissioner to Speak at the July Dinner Meeting
BRAD AVAKIANBrad is Oregon’s current leader of the Bureau of Labor and Industries. Appointed the Commissioner in 2008. Mr. Avakian is now seeking election.
Raised in Washington County, Brad is a product of Oregon’s public schools. He graduated from Oregon State University in 1984 with a BS in Psychology and Lewis and Class Law School in 1990 with a JD. Brad worked his way through law school by helping to create the local YMCA’s Juvenile Restitution Program, which mentored troubled youth and put them to work repaying the victims of their crimes.
For the next fi fteen years, Brad dedicated his life to representing middle class families. As a civil rights attorney, Brad fought for fair wages, good working conditions and the right to organize and bargain. He also co-founded the Oregon League of conservation Voter’s Washington County Chapter and was appointed by Governor Barbara Roberts to lead the State Board of Psychologist Examiners. Dedicated to a diverse work force, Brad served as Honorary Chair fo the Oregon Business Leadership Network.
During his time in the Oregon Legislature (2003-2008), Brad continued making middle class families his top priority. The Oregon AFL-CIO named him a “Working Families Champion” and gave him a Gold Medal for Leadership. SEIU Local 503 honored Brad for his work to ensure families have access to quality health care.
Since 2008, he has worked to take his fi ght for the middle class to the next level by focusing on apprenticeship training and workforce developement. As Commissioner of Labor and Industries, he has teamed up with both business and labor to protect the rights and wages of workers on the job and ensure that people are trained for the high-wage, high-demand jobs of the future. He has worked hard during his tenure to strengthen civil rights enforcement, stop wage therft, and bring career and technical education back to our middle and high schools.
BRUCE STARRBruce is currently a State Senator from Washington County.
Bruce is a small businessman who cares about Oregon and it’s future as one of the best places to live and raise a family. Bruce is running for Labor Commissioner to help turn Oregon’s economy around. With an unemployment rate that continues to be higher than the national average, ORegon workers deserve the most important economic right: a job.
The Bureau of Labor and Industries’ mission is to protect employment rights, advance employment opportunities, and protect access to housing and public accommodations free from discrimination. A strong effective Labor
Commissioner can streamline the process that ensures workers are protected while making it easier for businesses to grow and create new jobs.
Bruce is a native of Hillsboro Oregon and a graduate of Portland State University. After graduating from PSU, Bruce stated his own construction company focused on residential and commercial roofi ng and repair. His experience as a small business owner gave him a fi rst-hand look at the challenges of growing a business and creating jobs. Its this kind of experience that Oregonians need in a Labor Commissioner-real life experience signing both sides of a paycheck.
In 2002, Bruce joined the Portland Business Alliance, Portland’s chamber of commerce. He focused on business development with an emphasis on international trade and from there started a new company. Cutting Edge NW, representing companies navigating the complex regulatory and tax codes at the state and federal level. Bruce believes small businesses today should be focused on meeting their payroll, growing their business, and creating more jobs-not government.
Since 1999, Bruce has served in the Oregon state legislature, in both the House and Senate. His priorities have refl ected the needs of a rapidly growing region including education reform, transportation investment, and economic development incentives. He has been a leader on issues impacting the state’s economy and has focused on ways to make it easier for small businesses to grow and thrive.
JULY 2012 Page 7
www.RHAGP.orgContinued on page 8
DEAR MAINTENANCE MEN:By Jerry L’Ecuyer & Frank Alvarez
Dear Maintenance MenThe property I own is older and the bathtubs are in terrible condition. I don't want to replace with steel tubs, preferring cast iron. However, my plumber recommends the new composite tubs. What are the pros and cons for each type of tub and what do you recommend.Mike
Dear Mike:When it comes to bathtubs, you have a choice of materials. A cast iron/enamel tub is the granddaddy of them all and is the tub all other bathtubs are judged against. The cons to a cast iron bathtub are weight & cost. The most popular tub for an income property is the steel/enamel tub. They are very economical, lightweight and hold-up well to abuse. The cons to steel bathtubs are that they feel and sound cheap. The composite tub your plumber is recommending is a combination of the cast iron tub and the steel tub. The composite tub is a steel/enamel tub incased in a thick synthetic coating. The tub is lightweight and economical like a steel tub, however it feels and sounds like a robust cast iron bathtub and has the added advantage of insulation. The water stays hotter longer. Other tub materials to consider are acrylic and fi berglass. Both are lightweight and economical, however they do not hold up to abuse as well as the steel, cast iron or composite bathtubs. The composite bathtub is a good route for you to take; your plumber has given you a good recommendation.
Dear Maintenance Men:I am not happy with the company that services the fi re extinguishers at our apartment complex. They go through the routine of inspecting the fi re extinguishers and occasionally refi lling some, replacing others and re-dating the tags. The service charge is almost the same as buying a new fi re extinguisher from a home improvement center. I do not think I am getting my money’s worth. I am considering having my onsite maintenance staff maintain the extinguisher from now on. Is this a good idea or am I missing something here?
Steve
Dear Steve:We understand your frustration with a company that “appears” to not be doing their job. From your description, the fi re extinguisher service company is doing exactly what it is contracted to do. We DO NOT recommend that you use your on site maintenance staff to service the fi re extinguishers for a number of reasons. The number one reason is LIABILITY. Any fi re protection service company contracted to maintain your fi re extinguishers is licensed and insured and they are trained, certifi ed and knowledgeable with the laws. If you were unhappy with their work style or ethic, we would recommend that you shop around for another fi re extinguisher company. Have the prospective service provider explain their procedures and provide you with copies of their licenses, certifi cations and insurance.
Dear Maintenance Men:I am a do it yourself at heart! However, I sometimes start a job and quickly fi nd that I may be in over my head. I like the idea of saving money by doing my own repairs, not to mention the satisfaction of job well done. I have concluded that I need a guideline as to when I should hand it over to the professional and when it is OK for me to tackle the job. Allen
Dear Allen:We are big fans of do-it-yourself jobs. A guideline we like to use for do-it-yourself projects is most jobs within the living space are fair game. However, when the problem goes to the other side of the wall, such as mainline back-ups or when heavy equipment is needed to effect repairs; it is best to seek the trained professional. Top of the list would be life and limb issues.
1: Gas wall and forced air heaters pose the greatest threat to a DIY person. Improper heating systems repairs can cause carbon monoxide to leak into the living space, which can lead to the death of those living inside. Depending on your area, most gas utility companies will send a representative to inspect your heating system free. Because of carbon monoxide, gas leaks and fi re dangers; repairs to the heating system should be left to the pros.
Page 8 RHAGP UPDATE
2: A clogged plumbing pipe is high on the list of dangers. A mainline power snake machine can maim or kill in untrained hands. Not to mention the cost of retrieving a broken snake cable fi fty feet down your main drain line. It takes a lot of experience to determine the difference between a snake cable pushing its way through a clog and a snake cable binding up and about to break in the pipe and tangling up your arm in the process. 3: Weight bearing structural repairs should be left to the professionals. 4: Electrical repairs involving the breaker box or maybe even ground fault interrupter switches should be done by a trained pro. 5: Because of the liabilities involved with chemicals; pest control should be left to the licensed companies involved in that type of work. This is a short list, but if you keep in mind that “life or limb” issues should be delegated to the professional, you will be OK.
Water Trivia: About 1,460 teratonnes (Tt) of water
covers 71% of the Earth's surface, mostly in oceans and other large water bodies, with 1.6% of water below ground in aquifers and 0.001% in the air as vapor, clouds. … And one single gallon overfl owing from a dirty clogged toilet can feel like all the water in the world!!
Note: If you would like to see your maintenance question in the “Dear Maintenance Men:” column, please send in your questions to: [email protected]
Bio:Please call Buffalo Maintenance, Inc or JLE Property Management, Inc for Maintenance, consultation or management.For an appointment, call Frankie Alvarez at 714 956-8371 or Jerry L’Ecuyer at 714 778-0480. CA contractor lic: #797645, EPA Certifi ed Renovation Company and DRE lic: 01460075. Please view our websites at www.BuffaloMaintenance.com & www.ContactJLE.com
Continued from page 7
JULY 2012 Page 9
www.RHAGP.org
JOIN THE FUN AT THERHA ANNUAL FAMILY PICNIC
Wednesday, August 15, 2012at Oaks Park Area 1 in SE Portland from 3:30 to 9 p.m. Dinner 5 p.m.
$5.00
Featuring Oaks Fun RidesDelicious Food and BINGO
If you plan on playing bingo, you need to bring an age appropriate prize (if it’s a child playing, bring an appropriate age prize and if an adult playing bring an adult prize, etc.)
DirectionsFrom I 5 North: Travel SOUTH on I-5. Take the Lake Oswego Exit-299a. Travel SOUTH on S.W. Macadam Ave. two miles to the Sellwood Bridge. Stay in the LEFT lane. Travel Eastbound over the Sellwood Bridge. Turn LEFT onto SE 6th. Turn LEFT on SE Spokane, go down the hill on SESpokane and over the railroad tracks. Take the FIRST RIGHT. Follow the winding road to Oaks Park.
From I 5 South: Travel NORTH on I-5, take the Terwilliger Ave Exit (Exit 297). Turn RIGHT onto Terwilliger Ave and travel to the top of the hill, turn LEFT onto SW Taylor Ferry. Travel down the hill and turn RIGHT onto Macadam Ave., Travel SOUTH on Macadam stay in the LEFT lane, turn LEFT onto the Sellwood Bridge. Turn LEFT onto 6th Ave. Turn LEFT onto SE Spokane St. Go down the hill on SE Spokane and over the railroad tracks. Take the FIRST RIGHT. Follow the winding road to Oaks Park.
Pre-Registration Appreciated!Please mail this to RHAGP or call 503-254-4723
Name(s):
Address:
City: State: Zip: Phone:
Number of Adults & Kids over 12: @ $5.00 ea $Number of Kids - 12 and under: @ FREE Number of limited Ride Bracelets: @ $10.00 ea $ Total Amount mailed to RHAGP: $
mail to: RHAGP, 10520 NE Weidler, Portland, OR 97220Or Fax to 503-254-4821 or call 503-254-4723
Page 10 RHAGP UPDATE
Death Tax Phase-Out
Continued on page 11
Common Sense for Oregon is trying to get an initiative on the November 2012 ballot that would phase out the Oregon estate tax (death tax). We feel our members would be affected by this more than most citizens.
Oregon currently has an estate tax of 10%-16% with an exemption of $1 million. We are one of only three states west of the Mississippi to still have a death tax; the other two are Washington (with a $2 million exemption) and Hawaii (with a $3.6 million exemption).
The initiative that we are working on is Initiative Petition 15, the Death Tax Phase-Out Act. IP 15 phases out the existing Oregon estate tax over the course of three years. It decreases the existing tax in 25% increments each year starting January 1, 2013, until January 1, 2016, when the tax would be eliminated, and death taxes by any unit of government would be prohibited.
In addition, the initiative forbids any new tax on any property transfer among living family members. It phases out the capital gains tax on property sales within a family on the same schedule as the phase out of the death tax. This creates two safe harbors. One prohibits any estate or inheritance tax by any unit of government in Oregon; the existing tax is phased out over three years, and then it is prohibited. This allows families to do whatever they want with their estates.
The second safe harbor is for property transfers among living family members. Any property transfer within a family cannot be subjected to any new tax, and the existing tax (the capital gains tax on property sales) is phased out.
So, as of January 1, 2016, families can do whatever they want to transfer their property without having to pay state or local taxes.
For your convenience, I have included the ballot title, text of the measure, Fact Sheet, additional summary information and an economic report. The report shows that the elimination of this tax could result in creation of between 31,000 and 44,500 jobs in Oregon over a 5 year period.
We are currently in the signature gathering phase for this initiative. We are required to collect 87,213 verifi ed signatures by July 6th to get this initiative on the November 2012 ballot. We now have three and a half weeks to fi nish collecting signatures. In order to reach this goal, we are looking to organizations for support.
Oregon Death Tax Phase-Out Initiative
• Former Oregon Governor Vic Atiyeh is Honorary Chairman of this project.
• Citizen Initiative for November 2012 ballot.
• Phases out Oregon Death (estate) taxes from January 1, 2013, for three years. Tax eliminated fully as of January 1, 2016
• Prohibits any state or local estate tax.
• Current tax, on estate over $1 million value, ranges from 10 % to 16%. This is separate from the federal tax.
• We have polled voters, statewide, six times: voters favor repeal by a wide margin.
• In 2001, all 50 states had estate/ inheritance taxes. Since then 29 states have repealed them, and Indiana recently voted to phase out its tax.
• Less than 1.5% of General Fund revenue comes from estate taxes.
• The estate tax harms family-owned businesses, especially those with land, buildings, and major equipment.
• The estate tax makes Oregon non- competitive for jobs: only three states west of the Mississippi still have an estate tax (Oregon, Washington, and Hawaii).
• We are now circulating petitions for signatures.
• We need: contributions; volunteer help with circulating petitions;
JULY 2012 Page 11
www.RHAGP.org
Continued from page 10
and endorsements from organizations.For more information on this project, contact Kevin Mannix at kevin@mannixlawfi rm.com or at 503.364.1913. Or, contact Megan Chuinard at [email protected] or at 503.267.8578.
To download your own e-petition go to Endoregondeathtax.com
Here is the wording:The People enact the following statute:
Section 1. This Act shall be known as the Death Tax Phase-Out Act.
Section 2. Except as provided in sections 3 and 6 of this 2012 Act, neither the State of Oregon nor any other unit of government in Oregon shall impose a Death Tax.
Section 3. The Death Tax system in place at the time of passage of this Act shall remain in place but shall be phased out. The phase-out shall be based on the amount of tax collectible as of the date of passage of this Act; the amount collectible during the phase-out shall be a reduced percentage of the tax amount collectible just before passage of this Act. The reduced percentage shall apply as to the year in which a person dies.
a. 75% of the prior tax shall be collectible as to a person who dies in calendar year 2013. b. 50% of the prior tax shall be collectible as to a person who dies in calendar year 2014. c. 25% of the prior tax shall be collectible as to a person who dies in calendar year 2015. d. 0% of the prior tax shall be collectible as to a person who dies on or after January 1, 2016. Section 4. A Death Tax is: a. Any tax imposed on the estate of any decedent, or b. Any inheritance tax, or c. Any tax imposed on the transfer of property, or any interest therein, to any person, where the transfer is a result of the death of a person, or d. Any tax imposed on the transfer of
property, or any interest therein, from one family member to another family member, where the family relationship between the transferor and the transferee is within the third degree of consanguinity.
Section 5. For purposes of this Act, “property” includes, but is not limited to, real property, personal property, and intangible property.
Section 6. This Act does not prohibit the state from collecting income taxes payable by an estate while the estate is administered.
Section 7. This Act does not prohibit the state from cooperating in the processing and collection of Death Taxes imposed by another state or territory of the United States as to a person who, at the time of the person’s death, may be subject to Death Taxes in such other state or territory. This Act does not prohibit the state from cooperating in the processing and collection of Death Taxes imposed by the federal government.
Section 8. This Act does not prohibit the imposition of fees as to transactions which may occur following the death of a person, such as fees for processing death certifi cates or for probate proceedings, provided that the fees do not exceed the cost of the goods or services provided as a result of the death of the person.
Section 9. This Act supersedes any Oregon law which imposes any form of Death Tax. Any Death Tax due, under any Oregon law in existence prior to the effective date of this Act, as to a person who died before this Act became effective, remains collectible under the terms of such preexisting law.
Section 10. This Act is effective January 1, 2013.
Page 12 RHAGP UPDATE
ACCOUNTING / BOOKKEEPINGBalancing Point, Inc.
Sandy Buhite-LandisP.503-659-8803, C.503-504-946612500 SE Oatfi eld Rd, Milwaukie, [email protected]
J.R. Johnson Inc., CCB#102676P.503-240-3388, 24/7 ResponseCatastrophe Restoration Specialistswww.jrjohnsoninc.com
While the Rental Housing Associati on accepts adverti sing at face value, it cannot endorse the adverti ser or otherwise guarantee the quality of the products or services being adverti sed. Such guarantees, writt en or implied, are solely the responsibility of the adverti ser.
PreferredService GuideDual and Affi liate members
support the interest of rental housing through their
membership in RHA.
Let the advertiser know that you received their contact information through the Rental Housing Association of Greater Portland
JULY 2012 Page 13
www.RHAGP.org
FIRE SAFETYTualatin Valley Fire & Rescue
Eric T McMullen, P.503-612-70007401 SW Washo Ct, STE 101, Tualatin [email protected]
FLOOR COVERINGContract Furnishings Mart
Ross WilliamsP.503-230-1250, 800-275-6722915 NE Sandy Blvd, Portland 97214
Patrick VonPegertP.503-542-8900, 800-935-125014160 SW 72nd Ave #110, Tigard 97224
Roger HarmsP.503-656-5277, 877-656-523215140 SE 82nd Dr, Clackamas 97015info@cfmfl oors.com
Pat HockmanP.360-896-6150, 800-267-615011013 NE 39th St, Vancouver WA 98682Refi nishing & Laminate fl ooring
Eaton General Construction, CCB# 154142 P.503-539-0811All Types of Floor Coveringwww.eatongeneral.com
J & B Hardwood Floors, Inc.Jim Cripps, P.503-519-4920jandbhardwoodfl [email protected]
Telephone, internet, Cable and TV ServicesDave DronkowskiP.503-957-4186
UTILITY BILLINGMinol USA
15280 Addison Rd. Suite 100 Addison, TX.972-386-6611minolusa.com
WATERPROOFING / CONCRETE REPAIRD&R Waterproofi ng, Inc. CCB# 99196
Ray Elkins, P.503-353-16508890 SE McLoughlin Blvd, Milwaukie97222www.drmasonry.com
WINDOWS / STORM WINDOWS
GOOSE HOLLOW WINDOW CO., INC.Mary D. Mann [email protected]#53631 goosehwc.comEnergy Trust Trade Ally
J.R. Johnson Inc.., CCB#102676P.503-240-3388General Contracting Services www.jrjohnsoninc.com
Let the advertiser know that you received their contact information through the Rental Housing Association of
Greater Portland
Scan QR Code on
Smartphone for Online
Vendor Info.
JULY 2012 Page 15
www.RHAGP.org
Identifying Water Intrusion Problems ClassTaught by John Lombardi with John’s Waterproofi ng Co.
Thursday July 12, 2012 from 6:30pm-8:00pmat RHA Offi ce at 10520 NE Weidler Portland 97220
andTuesday August 28, 2012 from 6:30pm-8:00pm
at Standard TV & Appliance 3600 SW Hall Blvd. Beaverton 97005Basements and crawlspaces leak with regularity, therefore, we will discuss new construction codes, methods of waterproofi ng, and proper drainage. For existing basements and crawlspaces, we will explain why they leak, problems caused from leakage and water, structure and health, problems with water vapor, and how to guarantee repair.Cost is $25 for members or $35 for non-members. Register by Monday July 9th and receive a $5.00 discount on the price of class. This class will be worth 1 Continuing Education Hour.
Decision Point WebEx Class-Taught by Marcia Gohman with National Tenant Network
Friday July 13, 2012 at 11amThursday July 19, 2012 at 7pm
This class is offered to members of the RHA only. If you have a current service agreement and do your tenant screening through the RHA and would like to learn how to read the Decision Point report with more accuracy, then this is the class for you.
This is a FREE class for RHA members only. This is a WebEx class that is taken from the comfort of your own home or offi ce computer. Call the RHA offi ce at 503/254-4723 for more details and to reserve your spot in the class.
Commercial Lending ClassTaught by Trevor Calton with Commercial Lending Group
Tuesday July 31, 2012 from 6:30pm-8:00pm at Standard TV & Appliance 3600 SW Hall Blvd. Beaverton 97005
and Thursday August 9, 2012 from 6:30pm-8:00pm
at RHA Offi ce 10520 NE Weidler Portland 97220Trevor Calton with Commercial Lending Group is a 15-year veteran of mortgage banking and multifamily real estate, will be talking on the following topics:
• Calculating the ROI of Refi nancing-Is it worth paying that prepayment penalty?
• the Current Real Estate Lending Environment-”Where’s the money?”• Calculating Property Values and Actual Returns- “How much am I really
making?”• Leveraging Properties to Reinvest-”Can I turn excess equity into cash?”• Leveraging Leverage-”How a Low-Interest Assumable Loan Makes Your
Property More Valuable.”
Cost is $25 for members or $35 for non-members. Register by Friday July 27th and receive a $5.00 discount on the price of class.
The RHAGP Mission
The Rental Housing Association of Greater Portland is a group of rental housing owners and managers in the Portland metropoli-tan area who have joined together for the purposes of:
• Providing information to improve the knowl-edge of rental owners and managers.
• Enhancing the reputation of “landlords” by promoting professional practices.
• Assisting local public officials on various community endeavors relating to public or private housing.
The Update is a monthly publication for members of The Rental Housing Association of Greater Portland.10520 NE Weidler St, Portland, OR 97220Phone 503-254-4723, Fax 503-254-4821www.rhagp.orgHours: Monday through Friday 9 a.m. to 5 p.m.
Publisher: The Rental Housing Associati onof Greater Portland
The opinions expressed in this newslett er are those of the authors and do not refl ect those of the Board of Directors or the newslett er editor or committ ee.
All adverti sing inquiries should be directed to Alita Dougherty or Cari Pierce at 503-254-4723.Please noti fy the RHA offi ce of any address changes.
RHAGP CLASSESScan QR Code on Smartphone for Online Event
Ticket Info.
Page 16 RHAGP UPDATEDon’t Become a Victim of a Car Prowl
Many of us not only depend on a car, we use one on a daily basis. On any given day our car will carry our groceries, gym bags, and many other miscellaneous items. As we go about our daily lives it is easy to become relaxed about the items we leave in our cars. It seems obvious that a perpetrator would break into a car for a purse or wallet, but would you believe that an umbrella or bag of any sort could also be a cause? Unfortunately, what may not seem valuable to you could be to someone else.
Tips to prevent car prowls:
• Roll up the windows and lock the car, even if you are just leaving it for a short time.• Park in areas that are well-lit whenever possible. Avoid parking in areas with limited visibility• If you have a garage, park in it.• Remove all items of value from the car.• If valuables must be left in the car, keep them completely out of sight.• Leave your car "showroom clean," with absolutely nothing in it. • Remove all items from the car that could be used for identity theft, particularly anything with your Social Security number or credit card numbers. Car registration and insurance papers can be used for identity theft, so your wallet or purse is a better place for these documents.• Remove garage door openers or keys from the car so a car prowler cannot gain access to your home.• If it is feasible, consider installing a car alarm. Look for alarms that have the option of adjusting the sensitivity of the motion detector or turning it off altogether. When a car has an over-sensitive alarm, it can result in you and your neighbors ignoring the alarm when it goes off.
If you become a car prowl victim, be sure to contact the police to report the crime. The police non-emergency number is 503-823-3333. Give a detailed description of all of the items that were stolen. If fi nancial records, receipts, or checks were stolen, immediately contact the banks that issued those accounts. Most importantly, if you see a car prowl in progress, call 911.
Social Security NumbersEvery summer we see applicants with some odd Social Security Numbers. Here's what you need to know in order to recognize a good Social Security Number from a bad one. Until recently Social Security Numbers were issued with the fi rst three numbers indicating which state the number was issued in. For instance, SSN's issued in New York began with 050-134. This made it easier to tell where someone was coming from. Just recently they decided to change that so that new SSN's issued from May 2011 on would be issued in a more random way. That won't affect you for a long time, but it's interesting to note. See the Social Security Number allocation tables at http://www.socialsecurity.gov/employer/stateweb.htmIf you get a "No Record Found" or "NA" on your DecisionPoint report it could be because the person is too young to have established credit, or too old to still have a credit fi le. Credit is just like anything else, if you don't use it you lose it. If you have not had any credit for an extended amount of time all of those old fi les, good or bad, fall off of your record. You could also get an "NA" because the person is using a fraudulent Social Security Number and there is no credit attached to it.
Numbers you should watch out for areany that start with 000, 7, 8 or 9.
Or numbers in order such as 123-45-6789.There are no SSN's with those number
combinations. If someone applies with you using one of the above number combinations, ask to see the Social Security card, a recent pay stub and the drivers license. Most times when you ask for the additional proof of identity the applicant suddenly has somewhere else to be.. Remember to check Picture ID carefully and to write down the correct spelling of the name, the date of birth, and the address. Make sure that the Drivers License is not expired or from another state unless the person is just moving from that state. If the applicant is in a "Big Hurry" you slow way down. Usually there is a reason for the rush, and it is best to fi gure out what that is before you get pushed into moving someone in too quickly. Follow your procedures, and call us if you have any questions or concerns! Happy Renting!
Marcia GohmanNTN - Oregon
JULY 2012 Page 17
www.RHAGP.org
Serving Oregon & Washington Landlords For Over 15 Years
Just three minutes from the RHAGP main office! 850 NE 122nd Ave., Portland, OR 97230
EPA PROPOSES TO BAN SALE OF CHEAP AND EFFECTIVE RODENTICIDES TO CONSUMERS
Proposed Ban Will Raise Costs of Rodent Control, Increase Risk of Infestations, and Threaten
Children’s Health and SafetyCurrent SituationThe Environmental Protection Agency (EPA) has proposed measures that if implemented, will deprive consumers of purchasing modern, affordable and highly-effective rodenticides (i.e., second generation anticoagulant rodenticides).Even after a January 2011 federal court ruling that EPA actions to implement regulatory measures for rodenticides were arbitrary and capricious, the EPA continues to attempt to deprive consumers of effective rodenticides. Most recently, on November 3, 2011, the EPA issued a Draft Notice of Intent to Cancel to move forward with cancelling the sale of widely-used, low-cost and modern rodenticides to consumers.If the EPA is successful, these measures will drive up the costs for consumers and eliminate effective, widely available and currently affordable rodenticide products; products relied upon by millions of consumers to control rodents that threaten public health by spreading disease, causing widespread economic damage, including contaminating food and destroying property.Higher Costs for Economically-Disadvantaged PopulationsRodenticide bait products sold at retail outlets, such as grocery and hardware stores, are now affordably priced for an individual bait placement. EPA’s measures will prohibit consumers of these products, many of who live in affordable housing units with a higher incidence of rodent infestations, from buying these affordable rodenticides for themselves. Under EPA’s current proposal, costs will increase considerably per single bait placement, due a requirement that these modern rodenticides be housed inside tamper resistant bait stations. Consumers will also incur higher costs for these rodent control solutions if they cannot afford to hire professional applicators instead, the only remaining source to apply these effective, modern forms of anticoagulant rodenticides.Less Effective Rodent ControlSecond generation anticoagulant rodenticides were specifi cally developed as replacements for fi rst-generation products following the growth of widespread resistance to fi rst generation products during the 1970’s. EPA has insisted that makers of these rodenticides stop selling their current consumer use rodenticide products and replace these tools with products containing older-technology (“fi rst generation” anticoagulant) active ingredients, other forms of toxins, snap traps and glue. These less effective methods of rodent control will likely increase the risk of infestations. Consumers also might
use more potent rodenticides that have no known antidote, which could increase the risk of serious harm if these products are used improperly.Greater Risk to Children’s HealthAs consumers revert to using the older, less effective technologies, rodenticide-resistant pest populations are likely to increase creating a greater risk to the health of children. Rodents are known to carry over 55 diseases, including viral, bacterial, protozoan, and other pathogens. Some of the most common transmitted diseases associated with rats and mice include food poisoning, leptospirosis, Lyme disease, rickettsial pox, and trichinosis. In the United States, it has been estimated that rats bite thousand of people, mostly infants and children, each year. These bites can lead to considerable trauma, and occasionally lead to infections and disfi gurement.Increased Damage to PropertyIn addition to spreading diseases and biting residents in buildings where infestations occur, rodents are responsible for millions of dollars in property damage due to accidental fi res caused by gnawed wires, and damage to food supplies during storage and transportation. Resistance in rodent populations to fi rst generation rodenticides will increase if consumers cannot continue to purchase and use second generation rodenticides.
Page 18 RHAGP UPDATEWHY ARE YOU A LANDLORD?MrLandlord.com
"Why are you a landlord or why would you want to become one?" The following answers below are statements by landlords nationwide on the popular MrLandlord.com Q & A forum. Read on to be inspired and encouraged about your real estate business. * I am currently in college. I became interested in real estate in high school and started doing research on how the whole landlord thing worked. I bought my fi rst rental after my freshman year of college. After getting the fi rst one rented and seeing that I really could do this and how much I enjoyed it, I moved away from thinking of real estate investing as a side investment and started working on making it my profession. I have been acquiring rentals since then as fast as I can and still maintain appropriate reserves and when I graduate in December I anticipate being able to support my lifestyle from landlording alone. It is a great business to be in, make sure you do all the research ahead of time and know how the real estate market is in your target location, what all the real estate and landlord tenant laws are, how taxes work for real estate, etc. -- Kyle, IN* Why? FREEDOM!!! Retired at 41. Shoulda been sooner but the job was paying very well. My Dad started at age 55 when forced out on early retirement. In the next several years he became wealthy, traveled (and fi shed!) the world, and when he died 13 years ago, left a tiny empire which supported my mother beautifully for 10 years and now provides cash income for my generation. All from a handful of crummy little rental houses. -- Brad 20,000, IN* It was the only thing we could think to do to provide for our retirement. The stock market wasn't working (for us). At least landlording is something we can wrap our heads around and (somewhat) control. I like that it keeps my mind active, my brain busy. I am sorry I am missing the convention this year. -- Wendy, NC* Got into landlording in order to diversify investments. Back in 2000, stocks had had a long strong run, and I didn't feel comfortable putting more money in that direction at the time. Searched for and found the MrLandlord.com Q & A forum. Read, read and read some more. Bought a foreclosure. That worked out well, so we repeat over and over, and life is good. I thank all the contributors to this forum for an education that is unequaled. I have "dodged many a bullet" because of the wisdom and experience of contributors to the Q & A forum over the past twelve years. Lot's of work, along with the regular job, but I think it is worthwhile. -- Bill, Texas* I bought my fi rst house when I was in my early 30's. I worked at General Motors and they were trying to retire out a bunch of guys in their 50's. Lots of them said they couldn't retire because they couldn't afford to (despite years of making an excellent income) since they had kids in college and weddings to pay for. I swore that wouldn't happen to me, so I bought the fi rst house to be my oldest child's college education fund (even though I was single at the time and had no plans to have one in the immediate future!). Planned to buy a second house eventually for my second child's college education. Never imagined I'd like it and would end up making a living out of landlording. Life is a funny thing. :) -- illini fan, OH* So Pookie and I can travel to Costa Rica when WE want with the kids. To go to a Reds game anytime I want. To wear shorts, fl ip fl ops, and no shirt on Tuesday at 10:30 am
every week. To play golf any time I want. Never miss a kids game or practice. To help people live in decent housing. To prove to my kids the truth of education. Freedom. -- Lee, IN* I kept thinking it would be great to have a rental property. The rent would buy a house for me, and eventually I'd own it after it paid for itself! Figured it make for a nice nest egg. So, one day I just did it. That house appraised two years after I bought it for more than double what I have in it. I added a few more over the next couple years. Now I am shifting my focus to cashfl ow and fi nding funding to purchase these houses. Don't get me wrong, the houses I have were great investments, but I don't make much on them. I hate my job, and I want out of it. You think the government is hard on landlords??? Try driving a truck for a living! I want a nice row of Monopoly houses to feed my family and send my kids to college. Hoping to learn more about my new focus at Landlord Convention. -- 574-Brad, IN* I left my country very young and worked in countries where infl ation got so out of hand that it made rich people very poor because they had all their money in cash. So when I got here in 1992 with no money but big dreams I started to buy real estate because I thought it was good against infl ation. If you buy good properties with fi xed, low interest rates, and infl ation happens your rents will go up and you will be sitting pretty good in the future. -- Jose, CA* In my very early 20's, I always wanted to do landlording as a side business. I fi gured a little work and a little money could build over time. A few years later I bought my fi rst multi. A lot of work and a lot of money later, up to 24 now, and hope to add 18 more by the end of the year. Hope to quit the day job in 5 years or less. -- Alex, IL* I'm a landlord because my plans for becoming a rock star didn't work out. :) OK, I'm a landlord because now is the time to buy, hold and rent, although the days of buy and fl ip are rapidly returning I think, followed in about 3-4 years by buy and build new for retail sale. I follow the cycles. We may or may not hold rentals long term as I get older. -- LL, AZ* It's this simple--There is no better investment now, after losing a million in the stock market I switched to real estate. Much better. Now is a unique time, in my area you can buy a single family rental with 20% down and cash fl ow on day one, and at age 59 this is the fi rst time I have seen this. Buy as many single family rentals as possible now. -- Steve, CO* I want to be rich. Rich people have options. Options = freedom to do what you want with your time. That may sound selfi sh, but think of it like this. Freedom allows me to serve God and my fellow man rather than slaving away at a desk just so there's bread on the table each month. Who is selfi sh? The man who works hard in his spare time and retires at age 40 and then can volunteer and/or take up charitable causes, or the man who watches TV every night and weekend and must stay at his desk job until 65 just to keep the lights on?Time is our most limited resource. We each only have so much. Like others here, I've talked to many 50-something-year-olds who are counting the days until they can retire at 65, some at 67 due to Social Security changes. Times are changing. Soon Medicare will be bankrupt (or it already is...we just don't know it yet thanks to the FED printing money), and I don't trust the government or an employer to provide
Continued on page 20
JULY 2012 Page 19
www.RHAGP.org
RHAGP LIST OF COMMITTEES
Building Chair: Phil Owen, Phone: 503-244-7986
Community Relations/Donations Chair: Tony Kavanagh, Phone: 503-522-4474
Phone: 503-254-4723 * Fax: 503-254-482110520 NE Weidler StPortland, OR 97220
www.rhagp.org
“Landlords doing good things in their communities”
Page 20 RHAGP UPDATE
for my golden years. So in short, I want my golden years to start when I'm in my 40s, and I want them to be on as solid a footing as possible. Plus I love using a chop saw and Sawzall. And who doesn't enjoy nail guns? :-) -- Sid, MO* To quote my dad "Wanna make a million dollars? Borrow a million and let someone else pay it back." Looking for my fi rst house at age 25, Dad pretty much "made me" buy the one with the upstairs mother-in-law suite. I had a couple roommates but it really didn't work out. Then a friend of a friend wanted his own apt. and suddenly I had a real "tenant". He paid 75% of my mortgage. Suddenly, I "got" it! Then I used the equity and paid $24K cash for a mobile home around the corner. $500/month in rent: you do the math (I still own both, BTW). And away we go..... The mobile home is paid for (obviously); have a duplex that is 4 years away. Another 7 years and my own home is (I think) 9 years away. This is my retirement fund. I've been self employed in another area for 17 years. -- Blue, IL* I want freedom. To travel when I want, sleep in when I want, and go to the movies in the middle of the day. I don't want to wait until my sixties to get my days back. After doing a few fl ips, I lucked out and found an under thirties landlord and her husband that owned maybe about 15 rentals (and growing) that they had bought, rehabbed, and rented themselves. This was their only job. They worked very hard at it, but their goal was never to work a corporate job. She mentored me. I've built up several rentals and hope to "retire" in another 3 to 4 years. Twelve paid off rentals is my goal. -- Jules, MO* I have been self-employed most of my adult life in other careers which were one hassle after another. If you think a deadbeat tenant is a pain, wait till you have a deadbeat 100 million dollar corporation that stiffs you. Try collecting from them in small claims court. Good luck!!Even with 12 single family homes on auto-pilot, I fi nd that Landlording is virtually hassle free...Well not really. I do get a cramp in my right hand sometimes from endorsing 12 checks each month, but other than that I really love this business. -- Roy, AL* I tried working once for a living and didn't like it. Once the mind expands it never goes back to its original size. -- Dan, FL * My rentals are my retirement income. In the late '80's I started building new homes. Homebuilding worked out very well for me. It gave me the cash to do some other things. As I got older I noticed that the banks were only paying about 1-2% on my money. I found a townhouse that cost me $35K and rented for $450/mo. That was a whole lot more than the bank could pay, so I started investing my cash in townhomes.These townhomes are my retirement income. They will be cash fl owing for my heirs long after I'm gone, but between now and then, they afford me a pretty nice lifestyle. It's all for the retirement! -- OKHMBLDR, OK* I closed another business and needed a way to develop a new stream of cash fl ow. I went to many Real Estate Investment club meetings in my area and listened to those people. They were talking about buying low end properties, fi xing them and renting them out. Many did it without any cash, and some even used credit cards to buy their fi rst property. Once fi xed and rented, many of these properties threw off $300 or so per month in income, and the mortgage was getting paid off by the tenant. I was a handyman and gave it a try. I now have 10, and I have to say that this is a GREAT semi-retirement. I used my cash from the other business, so I own all of them without a mortgage.
This provides me with all of the cash I need to live on. I am on my own schedule, have no one to answer to, except the tenants, and I have found it very rewarding. I take a crummy property, fi x it up as close to new as possible (new kitchens, new baths, new paint, refi nished hardwood fl oors, etc. and I am proud of the product I produce. My tenants, so far, all seem to appreciate the condition of the properties, since many of them are the fi rst tenants I have put in the property (7 years or more). When they call me with a problem, I usually go immediately to fi x the problem. I have found that immediate customer service causes the tenant to want to stay in my properties, since so many landlords sadly ignore their customers. I have no problem fi xing a clogged drain, etc., even though the lease states that it is the tenants problem. I fi gure that a happy customer is FAAAAR better than a vacancy. This business is not easy, but, as I said, it gives me freedom, and I really enjoy it! -- Jeff, PA* After 41 years of marriage I got divorced and had some rentals dumped in my lap. Didn't have a clue what I was doing, but bought and read everything I could, joined Jeffrey Taylor's website, and am fi nally getting on my feet with it (it's been almost 4 years). Most of the property was in bad shape, and I can't so much as change a doorknob, so it took some time and lots of money, but I've traded up and now have some really nice property. Was told by everyone to hire a property manager, which I did, until I realized they were two months behind in paying me my rent. I took it all back and am on my way to building the business! -- Suzy, NM* For retirement. My husband and I are in our mid-50s. He works at a very good job and I own a small company. We are in our high earning years and have a paid off house with lots of disposable income. Rather than buying fancy cars or a more expensive home with a mortgage, about three years ago my husband and I purchased our fi rst small rental house for cash, then two more. Now we are using a self-directed IRA to purchase more. We already have one more and hope to purchase about 6 more for a total of 10 properties. The return on our rentals since we paid cash is only about 9%-10%, but with CDs we could barely make 1%. We buy 2-3 bedroom single-family homes and fi x them up very nicely. Our residents really don't call us that often as things run pretty smoothly. We kind of look at fi xing up these homes as our art. We really like making an old house look as shiny and new as possible. At fi rst we looked for the total dogs, but we realized we may have spent too much to fi x them up. Now we really try to fi nd houses which just need cleaning up and some cosmetic changes. In our area there is not all that much difference in price between a money-pit and a pretty nice, slightly neglected home. In fi nding a value we look at the sales price plus the cost of the fi x up before we make the purchase. This means we sometimes pay more initially, but we believe it is a better overall deal for us in the long run, plus less work. One more thing. We used to do everything ourselves. Now we have found some good handyman types to do most of the fi x up work. We then go in in the last week or so to clean up the property and put on the fi nishing touches. We want to have a fun life, not just be slaves to our rentals. Life is short. -- Beth, KSThe above tips are shared on the MrLandlord.com website and in the Mr. Landlord newsletter from landlord contributors and real estate advisors and authors featured on MrLandlord.com. To receive a free sample of Mr. Landlord newsletter, call 1-800-950-2250 or visit their informative Q&A Forum at LandlordingAdvice.com, where you can ask landlording questions and seek the advice of other rental owners 24 hours a day.
Continued from page 18
JULY 2012 Page 21
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Laundry Room Burglaries in OregonBy Karen Anthony, Mac-Gray Web Laundry Company
It has been a rough last two years for laundry room burglaries in Oregon. The uptick coincides with the downturn in the economy, and thieves have defi nitely become more adept at stealing quarters with new modes of operation. The purpose of this article is to help those who are at risk, through enumerating the security steps that have proven effective at reducing laundry room theft. Some of these are obvious, but still bear listing because of their effectiveness.
1) Awareness is half the battle Property managers and residents alike need to keep an eye out for those who do not belong in or around the laundry room. A tell-tale sign might be a person who walks in with a basket of clothes but is not recognized, or a person who gets out of a car to access a laundry room that is in easy walking distance for the residents. Thieves will often hide their break-in tools inside a laundry basket. Notes in newsletters, signs and just plain word-of-mouth are all effective ways to improve vigilance.
2) Lock the doorThe simplest deterrent is often the most overlooked. Having a locked door to the laundry room is frequently the only thing needed to turn back burglars. Also, making sure the door is actually shut and not propped open is important. Laundry room doors with automatic closers can be effective, but it is important to maintain the doors and door jams to ensure the door latches completely when pulled shut.
3) Camera systems There continues to be huge advancements in the affordability of camera systems. Wireless transmitting, motion activated systems are available for $300 and less. In locations where past break-ins have occurred, installation of cameras has proven to be very effective at reducing and even eliminating laundry room theft. Dummy cameras are also available that are indistinguishable from the real thing.
4) Install security sleeves Hardened metal security sleeves, or “hoods” are very effective at discouraging most break-in methods. Security sleeves with closed faces are especially good at protecting against drilling and picking. These devices protect the meter case and coin vault of the washer or dryer by surrounding it with an additional layer of metal
armor. The sleeve is held in place by the barrel-keyed cover lock. Although both the cover lock and vault lock could be eventually defeated, the two different locking methods have been effective because of the additional skill and time required by a burglar to access the coins. The draw-back of this method of protection is that it also takes longer to legitimately collect the coins from each washer and dryer.
5) Go “Cashless” There have been exciting and affordable advances in methods to eliminate cash from central laundry rooms altogether. “Smart Cards” have been available since the 1990’s, and feature cash, and/or debit/credit transactions to add value to the cards at a central add-value station. This method effectively removes cash from the laundry rooms, and positions it in a more secure location. Many add value stations today are debit/credit only, thus completely eliminating any on-site cash from laundry usage.
In-laundry-room cashless payment options are now available that were not just 2 years ago. Systems such as Mac-Gray’s ChangePoint allow for debit/credit card payment in the laundry room with no need for either a smart-card or add value station. Options exist for completely cashless or coin plus debit/credit card use. With 25 Oregon installations already, ChangePoint has proven effective at reducing break-ins even when used along with a coin option. This is because adoption of payment by debit/credit rather than using quarters has been consistent at 60% or better when the coin option is still available, thus making coin-theft less profi table for the thieves. Talk to your local Mac-Gray representative for details.
A highly determined burglar is nearly impossible to stop. So, if the worst happens, be sure to fi le a police report in a timely manner. What may seem like an isolated event is almost certainly part of a pattern that involves multiple apartment owners and laundry companies over a large geography. Allowing the police to tie multiple crime scenes together is our best method of ensuring that criminals are put in jail for the maximum time allowed.
Page 22 RHAGP UPDATE
JULY 2012 Page 23
www.RHAGP.org
Page 24 RHAGP UPDATE
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