Good Landlord Good Landlord TrainingTraining

Tom Wood

25 YEARS OF EXPERIENCE AS A

LANDLORD

Hurricane Erin (1995)

Good parts of being a landlord

NFL OWNERSNFL OWNERS

HOW DID THE GOOD LANDLORD PROGRAM START?

Utah Law allows cities to charge Utah Law allows cities to charge disproportionate license fees if disproportionate license fees if

they conduct an impact study that they conduct an impact study that outlines the usage of rental outlines the usage of rental

properties.properties.

In 2004 Ogden wanted to encourage the elimination of code violations and public nuisances while trying to prevent illegal activity on rental

properties.

Cities that currently have Good Landlord programs:

Centerfield ClearfieldLogan MidvaleNorth Salt Lake OgdenSalt Lake City South OgdenSouth Salt Lake SunsetTaylorsville Washington Terr.West Jordan West Valley City

Fee reduction examples:

City Fee Reduced FeeTaylorsville $90 $15Ogden $156 $13 Clearfield $190 $27SLC $342 $20

While the programs are voluntary, 85% of Ogden properties participate in the Good Landlord program and Salt Lake has over 90% participation.

Crime on Good Landlord properties dropped 11%.

Calls for services dropped 18%

HIGHER REVENUE – LOWER COSTS

While crime in Good Landlord cities dropped there was a proportional increase

in crime in surrounding communities. Many of those communities now have

Good Landlord programs.

Run a background check on every

applicant and don’t rent to applicants with convictions within the last 4 years.

Evict tenants who create problems

THE GOOD LANDLORD PROGRAM

Participating Landlords are Encouraged (or required) to:

Maintain properties to code including lawn/yard maintenance and junk storage.

Take a city approved Good Landlord

training class once every two or three years depending on the city.

THE GOOD LANDLORD PROGRAM

Participating Landlords are required to:

Reduce the per unit fee based on participation.

Provide information on criminal activity.

Provide training and education on city regulations and crime prevention.

THE GOOD LANDLORD PROGRAM

In return, city agrees to:

Ogden Good Landlord Program Benefits

Since its induction in 2004, almost 85% of Ogden rental units have qualified for the Good Landlord incentive, which means the property owners qualified for a 90% discount on their annual business license fees. In its first year of the program, landlords who diligently followed the guidelines also saw a reduction in crime at their properties—in fact, 11.6% reduction in crime, according to reports.

The Good Landlord program is building more awareness that prevention really does reduce, and may even eliminate crime and unprofitable ventures associated with apartment ownership. Participating in the program proves to enhance property values by decreasing not only crime but also poorly maintained and improperly operated rental properties..

A summary of program benefits include:

More profitable property venturesPotentially enhanced property valuesBetter maintained & operated propertiesDecreased crimeBusiness license 90% fee reductions

Program Drawbacks

1) Unhappy Landlords

Sir, I resent the exploitation of tax payers by private industry. The "Good Landlord" training program was indeed the worst educational experience of my life. The presenter was rude, condescending and spent an inordinate amount of time telling horror stories from his personal experience as a landlord. His model for choosing a tenant was certainly to blame - a model he held up to be ideal. I will continue to pay inflated license prices just to avoid having to sit through another four hours of this nonsense. Shame on local officials for putting this program in place.

Program Drawbacks

2) Unhappy Tenants

“My landlord locked me out and I can’t get my stuff”

“We had a flood and now there’s mold everywhere and the landlord won’t clean it up.”

“I hadn’t paid my rent so my landlord took all my belongings”

“I received an eviction notice that says I have to move out at the end of the month”

Program Drawbacks

3) Housing Advocacy Groups

A- No disclosure of tenant rights

B- Disparate impact which targets formerly homeless, people with a mental illness and people with disabilities due to drug usage.

C- The program doesn’t fix crime but only relocates crime.

D- We are not rehabilitating someone with a criminal record and reintegrating them into society.

Program Drawbacks4) Negative press and public perception

“In Utah almost all released inmates who return to prison do so within three years — most of those within the first year after release. Yet state law allows cities to force landlords to deny tenancy to ex-offenders who have been out of prison less than four years.”

Program Drawbacks

5) Extra Work for licensing staff

A- Tracking certificates

B- Notifying Landlords of expiring licenses

C- Phone calls from angry landlords/tenants

What kind of training do What kind of training do landlords receive and does landlords receive and does

it do any good?it do any good?

Good Landlord classes teach eight basic principles:

1) Utah Fit Premises Act2) Evictions3) Abandonment4) Fair Housing5) Best Practices6) Screening7) Inspections8) CPTED

UTAH FIT PREMISES ACT

Utah Fit Premises ActUtah Fit Premises Act

Outlines landlord tenant rights, responsibilities and

renter remedies

Duties of Owners –Habitability (3-days)

Duties of Owners – Deficient condition (10-days)

Duties of Renters

Renters Remedies

EVICTIONS

TerminatingTerminating A Tenancy for Cause A Tenancy for Cause

There are three causes to terminate a tenancy

1. Failure to Pay

2. Failure to Comply

3. Public Nuisance

1.1. The eviction processThe eviction process2.2. Serving noticesServing notices3.3. Charging FeesCharging Fees4.4. Using an attorneyUsing an attorney5.5. Communicating with Communicating with

tenantstenants

Crisis ResolutionCrisis Resolution

Nobody wants to be evicted and rarely do you have a tenant that should be evicted for any reason. Communicate with your tenants so they understand your needs and try to work out problems and misunderstandings before you both wind up in court.

ABANDONMENT

Premises AbandonmentPremises AbandonmentTwo types

1 Day15 DayRent must be past due.

Property AbandonmentProperty AbandonmentHold items 15 days, then

dispose.

FAIR HOUSING

PenaltiesPenalties

Million dollar penalties and settlements are not uncommon!

In 2009, former L. A. Clippers owner

Donald Sterling paid $2.75 million to settle a discrimination lawsuit.

What is prohibited?What is prohibited?

It’s illegal to discriminate against someone because of their membership in a protected class

Seven federally protected classesOne Utah protected classTwo City Protected ClassesTypes of Discrimination

◦Disparate Treatment◦Disparate Impact

Protected ClassesProtected Classes

7 Federally ProtectedDisability (48%) Familial StatusRace (34%) SexColor ReligionNational Origin

1 State ProtectedSource of Income

2 City ProtectedGender Identity Sexual Orientation

DisabilityDisability

Reasonable Modification (Ramp)

Reasonable Accommodation (Service Animal)

Exempt from Fair HousingOwner occupied buildings with no more than four (4) units.

A private individual does not own more than three (3) rentals.

Not Exempt from Fair HousingReal estate agents or anyone in the “business of real estate”

Anyone advertising rentals

SCREENING

The applicationThe applicationSigns of dishonest applicantsSigns of dishonest applicants

Setting rental standardsSetting rental standardsDoing Background ChecksDoing Background Checks

Verify work and rental historyVerify work and rental historyGather personal informationGather personal information

BEST PRACTICES

Security Deposit LawSecurity Deposit LawTypes of Rental AgreementsTypes of Rental Agreements

Notice RequirementsNotice RequirementsRight of EntryRight of Entry

Fees – Late, NSF, ServiceFees – Late, NSF, ServiceRules – Pets, Smoking, GuestsRules – Pets, Smoking, Guests

Resident RetentionResident Retention

INSPECTIONS

InspectionsInspections

Every three monthsFormal or informalLook for drug paraphernalia, signs of

criminal activityCheck for leaks, floods, safety issuesObserve, document & charge for damages

CPTED

Working with the PoliceWorking with the PoliceLet police know when you think criminal

activity is taking place on your propertyEvict tenants who are breaking the law and

let the city and the police knowDuring inspections look for drugs and drug

paraphernalia, let the police know what you find and let them decide what to do with it

What you learnedWhat you learnedEvictionsFair HousingAbandoned PropertyTenant ScreeningInspections

How to be a GOOD LANDLORD!