Madison Landlord Council

Key points to know about changes to chapter 32. 07

Key points to know about changes to chapter 32. 07 ---Security Deposit Refund Procedures.

Documentation of waste, damage and neglect now mandates photographic evidence (so long as waste, damage and neglect can be photographed). The only other exception is if the tenant accepts responsibility for a specific claim in writing on the checkout form.

· Copies of photographic evidence must be retained by the landlord for either 90 days from providing notice to the tenant of a security deposit withholding or 90 days from the start of a new tenancy for the premises---whichever is later.

· The landlord must provide the tenant a notice , along with the written itemized accounting of security deposit deductions, informing the tenant that copies of photographic evidence will be provided to the tenant providing the tenant sends a written request within 30 days. Upon receipt of a timely request, landlord has 30 days to provide photographs.

· Before converting earnest money to a security deposit the landlord must give notice to the incoming tenant of their right to request the opportunity to view photographs maintained by the landlord documenting damages and defects from previous tenancy (this is an addition to viewing deductions withheld from previous tenants security deposit). The landlord must “provide the opportunity to view” both the list of deductions and photographs within 30 days after receiving a request or 7 days after the landlord notifies the previous tenants of the security deposit deductions, whichever occurs later.

· Landlord forfeits all rights to any portion of the security deposit if he fails to comply or violates any portion 32.07.

· Landlord may be subject to double damages for any violation.

Photographic Evidence for Deductions

No Pictures, No Deductions, Double Damages

It is of great importance that you attend the next Housing Committee meeting

Wednesday, February 6th at 5:00pm.

Madison Municipal Bldg.,215 Martin Luther King Jr.Blvd.

Room LL-110.

State statutes give landlords the ability to deduct damages from Security Deposits. The Madison Common Council is trying to take that away by imposing an impossible hurdle. Good tenants will end up paying for bad tenants who leave damages behind.

One picture may speak a thousand words, but no picture can capture the damages accurately.

We can win this, but only if you participate in the opposition.

Please contact madisonllc@charter.net if you have any questions.

See you on February 6.

--MLC

Photographic evidence of damage

Attention Landlords;

Some of you may be aware of a proposed Madison ordinance that has the potential to affect your business practices and cost of doing business. The ordinance # 07615 amends section 32.07(5),(7), (9 and 14). This will require landlords to obtain, maintain and provide photographic evidence of damage, waste or neglect for purposes of making security deposit deductions.

Many of you probably take photos so you may not see the harm in this law. You also may not see how this will change your way of doing business. But, the Madison Landlord Council urges you to take a closer look at the ordinance. Taking photos of damage is a good business practice and the MLC encourages it. However, if this ordinance passes and it is required by law the dynamics suddenly change to the detriment of landlords and responsible tenants.

Most of us make decisions on which photos we take to protect our interests. This ordinance is designed to punish a landlord who fails to take pictures. Failure to comply with the security deposit ordinances could cost double damages and attorney fees. Landlords who fail to comply with the already extensive security deposit law may forfeit all right to the security deposit.

Please consider what's at risk:

Neglect, which is interpreted as cleaning, will require photographic evidence if you wish to deduct costs from a deposit.
No deductions without photos even if the tenant were to agree to damage, waste and neglect.
This ordinance will require a photo for every single incident of damage,waste or neglect. Depending on the number of units you own or manage, this could result in taking and maintaining hundreds (maybe thousands) of photos.
Don't make any mistakes--lost, miss-placed or miss-labeled photos may result in costly penalties.
You may have ten items for deductions but photos of only eight. Even with receipts, you'll have to file in small claims court for unphotographed items.
The proposal has passed the landlord/tenant subcommittee with an amendment to make allowances for damage that can not be photographed---such as smells, plumbing damages etc. This ordinance should be defeated and with your help, it can be.

Landlord licensing is a discussion agenda item for the landlord/tenant committee. Although the subject is not actively discussed, the MLC believes it will remain on the agenda until there is either political will to proceed or remove it entirely. It is conceivable, should licensing become reality, that violation of any housing related ordinances will be used to determine the eligibility of a landlord for the purposes of licensing and fees. Passing more restrictive ordinances relating to a landlord's business practices is not in our best interest and has potential to cause harm.

The Madison Landlord Council was founded to advocate for responsible public policies and at the same time, oppose policies that negatively affect the rental housing industry. If you believe this ordinance will have a negative effect on your business and your responsible tenants, we ask that you speak against this ordinance at the housing committee.

The ordinance will be on the agenda for the next housing committee meeting scheduled to meet Wednesday, February 6th at 5:00pm. at Madison Municipal Bldg.,215 Martin Luther King Jr.Blvd. room LL-110. For those of you unable to attend the housing committee, public comment can be sent to housing committee members at: mzopelis@cityofmadison.com , refer to february 08 housing committee agenda -ordinance # 07615.

Madison Landlord Council

2008 Security Deposit Rate
There is no change for DFI 2008 security deposit rate. Security deposit interest rate for 2008 will remain 0.94%.

Photographic Evidence for Security Deposit Deductions

I'm sorry to report that the ordinance requiring landlords to take and keep photos of damage in order to deduct for damages from a security deposit passed the landlord/tenant subcom. last night. We voted to add an amendment making allowances for items that can not be photographed--such as smells.
It is a sad day when an organization (AASCW) purporting to stand for all landlords, speaks strongly in favor of this ordinance. I am not sure why any dues paying member of AASCW would be in favor of more restrictive laws. Apparently AASCW is strategizing that agreeing to this ordinance will work to prevent landlord licensing. This is a very flawed strategy, every loss we take undermines our positioning and strength. Landlord Licensing will stay on the agenda until there is political will to pass it and giving in on this ordinance will not change that. We need only look back a few years to Nancy's unsuccessful strategy used for section 8 as proof that negotiating will not provide a free pass.

I think most of us agree that its good business practice to take photos, but I do not see any reason why landlords need an ordinance mandating the action. We as landlords do not need the protection and our photos will not protect the tenant. I can only guess that we will have to pass the costs along for taking and maintaining photographic evidence.

Consider the consequences:
No deductions without photos even if the tenant were to agree they did the damage.
Can only deduct for items you have photos off. You have 10 damaged items, and photos of only 8 --even with receipts you'll have to file in small claims for the 2 unphotographed items or risk double/triple damages.
Depending on the # of units you have--this could result in taking and maintaining, hundreds if not thousands of photos.
Miss-place or miss-label photos, you may be subject to double or triple damages.
This ordinance could easily have been defeated, however we don't stand a chance if we can not convince the industry spokesperson to reconsider her stand. I urge you to contact the AASCW --especially if you are a member.
The ordinance may be on the housing committee agenda for Jan 9th.
Thanks and Have a happy holiday.
Rose LeTourneau
Madison Landlord Council
and member of housing committee

Fluorescent Light Bulb Ordinance

The City Council is bringing back a Fluorescent Light Bulb Ordinance. Tenants can no longer make their own choice in lighting their apartments by requiring that landlords provide the lighting! Any landlord worth their salt already has LED exit lights. Savings are worth the effort to replace these. The proposal requires all buildings containing 3 or more rental units to have light bulbs with an energy efficiency of at least 30 lumens per watt, effective June 1, 2008, only found in CFL’s. Go to this link for ordinance details http://legistar.cityofmadison.com/DetailReport/?key=8752. The MLC raised the issue of disposal of Compact Fluorescent Bulbs which contain varying amounts of mercury, an inorganic compound similar to lead paint and with all the downside. Unfortunately, most people put their CFL’s in the trash where the mercury seeps into our ground water and out the faucet Here we go again!

Capital Times Story

http://www.madison.com/archives/read.php?ref=/tct/2007/03/06/0703060330.php

Fluorescent Bulb Ordinance July 5, 2007

Success!

MLC members Rose LeTourneau and Eileen Bruskewitz were the only landlords to speak against the mandatory fluorescent light bulb ordinance at the Common Council meeting. Also speaking against the ordinance was Jon Mortrud, Midwest Lamp Recycling, the only fluorescent light bulb recycler in the County who raised the issue that a broken fluorescent is a hazardous waste site!! Common sense prevailed and the ordinance was voted down.

For a copy of the ordinance, go to:
http://legistar.cityofmadison.com/DetailReport/matter.aspx?key=6871

March 18, 2007

The Madison Landlord Council met with the Sierra Club on March 16 to discuss this initiative that is being sponsored by Mayor Ciesliewicz and Ald. Austin King. The ordinance applies to 3+ units.

While the MLC fully supports energy and cost savings through the use of properly applied fluorescent and LED technologies, the safety of our residents cannot be compromised. We learned from engineers, fluorescent recycling experts, our attorneys and insurance agents that this technology has limited applications. Fluorescents are not the silver bullet the Sierra Club states it is. There are other deficiencies in the ordinance that the MLC will address.

A full report will be emailed to members.

Mandatory Section 8 in effect as of 4/1/07

If a Section 8 Voucher Holder is a qualified applicant, you will have to sign the HUD contract or you may be charged with a discrimination law suit. Section 8 Voucher Holders are a protected class under the Dane County Equal Opportunities Ordinance and their applications must be processed in the same way as all other applications.

You may require a security deposit, paid in the same way as all other tenant applicants.

Before allowing the applicant to move in to the unit, have Section 8 agree IN WRITING to the rent amount.

An ordinance amendment to clarify that landlords are not required to involuntarily participate in the Section 8 Housing Program is stalled in the Public Protection and Judiciary Committee of the Dane County Board.

The Wisconsin Apartment Association will be working on this issue in the coming months. If you are not a member, please join! Members may request a copy of WAA's legal position.

Dane County Section 8 Ordinance Amendment

Tuesday, February 27, 2007 at 5:45 PM in Room 309 of the City County Building

The Health and Human Needs Committee of the Dane County Board will take up the Section 8 Amendment which would clarifies that "(3) Nothing in this chapter is intended to require a landlord to involuntarily participate in the federal “Section 8” housing program pursuant to 24 Code of Federal Regulations Subtitle B, Chapter VIII. It is not discrimination based on lawful source of income for a landlord to refuse to enter into a contract with a governmental agency as a prerequisite to participation in the “Section 8” housing program.

[EXPLANATION: This amendment is intended to clarify that a landlord is not required to involuntarily contract with the federal government as a prerequisite to participation in the Section 8 housing program. However, if a landlord does chose to participate in the Section 8 housing program, the landlord may not refuse to accept payment in the form of federal housing assistance.]

Please attend this important meeting!

Check Out Form, the Sequel

Ordinance Amendment 04748

Amending Section 32.07(5) (d) of the Madison General Ordinances to clarify that tenant check-out forms shall specify the amount of rent credit due and an explanation by the landlord for any portion of the rent credit deemed not due.

Security Deposit Rent Credit information is required on the lease and is contained in the Landlord Tenant Brochure. The effect of this ordinance is to catch landlords who do not comply with this technicality. Failure to include this item on the Check Out Form would make it an invalid form and the Landlord would forfeit the right to make any deposit deductions. The current Ordinance states: (f) The landlord has the burden of proving compliance with all provisions and procedures set forth in this subsection or forfeits all right to any portion of the security deposit.

Self-Help Repairs*******goes into effect 2/1/07

This ordinance passed the Common Council but has an effective date of February 2007.

The proposal calls for regulations for self-help repairs of leased premises by tenants as an alternative to rent abatement, and amending Section 32.04(2) of the Madison General Ordinances to establish a procedure for notice of eligibility to seek self-help repairs.

When a landlord fails to comply with abatement orders, the tenant may make repairs and seek rent abatement or the use of the self help repairs procedure. The tenant must inform the landlord of their intent. If the owner files a letter of objection (copied to the tenant) with the Building Inspection Unit within ten (10) days of receiving notice from the tenant of intent to make repairs under this ordinance, the tenant cannot reduce the rent under the provisions of this ordinance until determined eligible for rent abatement by a Hearing Examiner, pursuant to Sec. 32.04, MGO. For those items determined to be eligible for rent abatement, the landlord will reimburse the tenant one hundred and twenty-five percent (125%) of the costs for repairs as determined by the Hearing Examiner."

The MLC supported this language. For landlords who fix repairs in a timely fashion, this ordinance will not affect you. When there is tenant damage, the landlord will continue to have due process under the established Abatement Hearing Process.

Separate Check Out Form 10/25/06

In summary, the proposal called for separate forms for check-in and check-out. The landlord would be required to provide a separate checkout to the tenant not less than 14 days nor more than 30 days prior to termination of tenancy.

Why is this important to landlords? Because, the landlord has the burden of proving compliance and absence of proof may forfeit all right to any portion of the security deposit.

The sponsors said that the change was meant to clarify the current ordinance but, failure to comply with this added step in check out procedures could have serious repercussions for taking legitimate security deposit deductions. Thanks to those MLC members got involved and worked on this issue and thanks to the Alders who understood that having a separate form was not in the tenant's or landlords best interest.

This ordinance was defeated.

Email Information System at BIU for Landlords??*****11/10/06

At the last Housing Committee meeting, George Hank. BIU Director did a presentation regarding the City of Milwaukee's information system. Hank noted as part of the reorganization of the Planning & Development Department, they took a field trip to the City of Milwaukee and talked to personnel in Milwaukee's Neighborhood Services Department about their permitting system and other subjects.

They have a system that allows people to subscribe to a specific address or radius beyond that. Anything that would come through their office (i.e. permit applied for, complaint filed), the subscriber would receive an E-Mail that would tell them something was pending in the City of Milwaukee office. Hank was skeptical of this but after talking to Marty Collins in Milwaukee, he noted it has helped them tremendously by an E-Mail going to the property owner and the owner correcting the problem immediately. He demonstrated this program to the subcommittee. He would like to head in this direction.

The Inspection Unit is acquiring new software for permitting and code enforcement and something like this is built into the system. He would like enhancements to this system that would actually bring up the new document imaging system. A PDF file would be made available to customers of the actual documents in property files.

Mandatory Section 8**************Updated 10/25/06

The Dane County Board of Supervisors passed an ordinance that makes recipients of Section 8 vouchers a proctected class under the Dane County Equal Opportunities ordinance. The effective date for this ordinance amendment is April 1, 2007.

The MLC opposed this action citing concerns that screening tenant applicants may be tighted up because of the added burdens of Section 8.

The Section 8 program works best when it is voluntary for both landlords and tenants. Section 8 has had wide acceptance throughout Dane County, and especially the City of Madison. This was clearly shown by maps provided by the Dane County Housing Authority. Section 8 vouchers are used in 52 of 58 census tracts within the City of Madison.

A resolution was introduced at the October 5, 2006 County Board meeting that states: "Nothing in this chapter is intended to require a landlord to involuntarily participate in the federal “Section 8” housing program pursuant to 24 Code of Federal Regulations 33 Subtitle B, Chapter VIII. It is not discrimination based on lawful source of income for a landlord to refuse to enter into a contract with a governmental agency as a prerequisite to participation in the “Section 8” housing program."

This language will be taken up in November or early December 2006.

Inclusionary Zoning (IZ)

Summary: Inclusionary Zoning requires developers to set aside either units or funds for moderate to low income households. A complex ordinance was passed by the City of Madison Council amid great controversy. As of mid-2006 few units have been built and sold. The real estate community argues for overturning the IZ ordinance completely. Supporters of IZ want to just ‘tweak’ the ordinance. The Mayor promises to veto any attempt to overturn IZ.

Landlord Licensing

This ordinance proposal was introduced to the Madison Common Council “by title only” back in 2004. No specifics, just the title.

Summary: This proposal has been on the MLC radar screen since former Alder Jean MacCubbin first proposed it. It is a milestone in the Progressive Dane agenda and will likely resurface. Initially, it was touted as a way for tenants to find their landlords. The scheme was to collect a fee from the landlord and the City of Madison would create a list of landlords.

The MLC created the Landlord Lookup (for free) to solve that problem by linking our website to the Assessor’s List and the Department of Financial Institutions List of Corporate entities. The City Building Inspection Unit, Treasurer, Fire Department, and City Attorney’s Office can find us. So can our tenants!

Pry away the politics and what you have is a “Tenant Tax”. The MLC will oppose any additional taxation of our tenants.