Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
Posts by Peter N. Lamandre:
Buying and selling tenant occupied properties
July 9th, 2010Assisting a client in buying or selling small income residential property is common practice for many real estate licensees. However, it would surprise many to learn that many of the agents doing so fail to ensure adequately that their client interests are properly protected. As a property manager firm, we often take over management of a building immediately after closing. It then quickly become apparent that some important things were missed and need to be addressed & corrected.
The PAR Standard Agreement of Sale States (Assuming the Standard PAR Agreements are being used) the following:
“If Seller has identified in writing that the Property is subject to a lease, possession is to be delivered by deed, existing keys and assignment of existing leases for the Property, together with security deposits and interest, if any, at day and time of settlement…”
This means that as the buyer you agree to be bound by the terms, whatever they are, of the existing leases. Who wants to agree to accept & abide by a legal document that they have never seen? Surprising it seems as though many people do… I say this because time and time again I see Buyer’s Agent submitting offers with tenants and they do not attached the TOP (Tenant Occupied Addendum). Utilizing the TOP protects both the Buyer & Seller. The Seller is protected since they are providing copies of the leases and asking the Buyer to acknowledge each of them, thus helping prevent suits from arising out of some previous representation about the leases. The Buyer is protected as they can review the leases as a contingency of the agreement and if the leases do not match the needs of the Buyer, the Buyer may terminate.
The default period is 5 days for the leases to be provided to the Buyer & then 5 days for them to review the leases. These dates can be modified but seem to provide a sufficient amount of time. You can even take it one-step further and ask that the existing tenants provide you with estoppels certificates.
A common misconception is that when the new owner acquires the property that they can make whatever changes they want to the leases. Evict all the tenants, or generally do whatever they want. This is not necessarily the case…
The buyer agent has to uncover the needs of their client identify what is important. Is the buyer looking for financial security? Then a property with strong existing leases or leases that can be legally modified would be important.
Is the Buyer seeking a property to be vacated after the closing? Then a property with month-month leases, leases that can be terminated after transfer or some other similar provisions would be the type of property to seek.
The bottom line is the Seller’s Agent needs to be clear what the Seller is selling, including any binding agreements. The Buyer’s Agent needs to ensure that the Buyer has the opportunity to know what they are buying.
It is common to recommend inspections of the physical property but where many agents fail is failing to inspect ancillary aspects of the property such as current leases & agreements, if the current use is permitted, if there are any municipal violations. Many agents are very capable of assisting clients in buying & selling single-family residential real estate, however when income & tenants are involved they fall short. It is never bad to ask for help, if you have a question about something pertaining to income properties, tenant issues, etc contact a Professional Property Management firm. On almost a daily basis, an agent or broker from a surrounding firm will contact us with a question or with some need for our services. We can provide consulting services, assistance with conducting buyer due diligence review of the current & historical property’s financial performance as well has projecting future performance. We are here to help…Buying & Selling
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
Emergency Response
June 15th, 2010One of the often over looked but extremely important parts of owning an investment property is responding to emergencies. Emergencies can happen at any time, nights, weekends, holidays … you just never know when or where. Emergencies can take many forms; such as fires, floods, storm related damage or mechanical, electrical or plumbing system failures.
Emergency response starts well before the incident occurs. You have to have a plan in place when the “unexpected” happens. You have to have a reliable method for tenants and emergency responders to contact you. You have to ensure the tenants are aware of the proper procedure in the event of an emergency.
Different emergencies require different levels of response. Some require a simple visit to the property, but even more require qualified contractors or the assistance local emergency responders, knowing when and who to alert is the key to any emergency preparedness plan.
Few self managing owners are equipped with the proper plan, list of contractors or equipment to properly respond to a major emergency. Emergencies often arise at inconvenient times or at locations that prevent the owner from responding in a timely fashion. Failure to act appropriately can result in expensive cleanup, major repairs, displaced tenants or a complete loss of the building or structure. Many municipalities require a direct and onsite response by an owner or their representative. Some self managing owners forgo professional property management and choose to either go it alone or to utilize “under qualified” and “unlicensed” local representative to minimally satisfy municipal rental ordinances. The danger in this practice is owners are often unable or unavailable to respond or these “property minders” lack the authority to act on behalf of the owner or make the necessary time sensitive decisions to preserve the property. When a Fire Chief, Police Captain or Code Enforcement Officer calls at 2:00am they want to talk to and meet with a representative capable of acting immediately.
This is where a Professional Property Management firm can be invaluable. A professional Property Management firm can prepare an emergency plan for the building, utilize prescreened list of contractors and coordinate with municipal officials. Some management companies lack the resources, effective proactive planning skills or the communication system which allow for 24/7 direct contact with property management staff.
At Better by Design Real Estate, LLC we are on-call 24 hours a day 7 days a week EVERY DAY OF THE YEAR. We have invested in a state of the art communication system; which will (based on the time of day) simultaneously forward the caller to all on-call staff members, instruct the caller on the proper emergency procedures which allows any tenant or emergency responder to reach our office 24/7.
Over the years, the staff at Better by Design Real Estate, LLC has responded to emergencies such as furnaces failing at 11:00pm on Christmas Eve, pipes bursting at 8:00pm on New Year’s Eve, 28 units at 12 different locations in one day all with severe pipe freezing lack of running water & heat, over 2 feet of storm water in a basement, fire alarms and even 1 foot of raw sewage filling a basement… just to name a few. We have developed a series of emergency preparedness plans for virtually every type of emergency. We have the experience and foresight to prepare for and respond to emergencies allowing for proper implementation of a property preservation plan. We own and have access to emergency equipment such as generators capable of running an entire house in the event of a power loss, water pumps capable of removing over a 100 gallons of water in less than a minute, indoor safe portable heaters capable of heating a midsized apartment for over 2 days. We have invested the time, training & money necessary to provide a prompt and professional direct response to a multitude of emergencies and when the situation warrants we have a long list of 3rd party vendors to assist.
It is this type of dedication to our clients & tenants that truly sets us apart. We like to say that at Better by Design Real Estate, LLC “Nobody Does Real Estate BETTER!!!” but truly nobody responds to an emergency BETTER…
For more information on how Better by design Real Estate, LLC can help protect your investments contact our office at (570) 309-6848 or (570) 969-2105.
Better by Design Real Estate, LLC.
is a privately owned Pennsylvania full service Real Estate Firm specializing in residential & commercial property management services. We provide complete operational and administrative services, specializing in private residences within the Northeastern Pennsylvania Region. Services include real estate sales, property management, renovations, repairs, and housekeeping. Better by Design Real Estate, LLC. manages residential & commercial portfolios that stretch from Nanticoke to Carbondale.
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
Habitability
January 29th, 2010What is habitability and why is it so important? Essentially, it is anything that endangers the livability of the property and the health and welfare of the tenants. Many common problems are heat, plumbing, major roof leaks, unsafe electrical, carpeting, stairways, or sidewalks, etc. Very few things can be more costly to an investor than ignoring anything that involves tenant safety.
If a problem exists and the property owner does not provide the maintenance required to solve the problem, they can incur major losses of rents and/or damages. The court has a very dim view of property owners that ignore the safety of their tenants. The court puts the burden of proof on the owner.
In some states the Uniform Residential Landlord and Tenant Act, the URLTA has been passed; a number of states have based their statutory law on this act or the Model Residential Landlord-Tenant Code. Pennsylvania’s law is the Landlord Tenant Act of 1951, however the legal principles of habitability were not well established in the original law. In Pennsylvania, the Supreme Court in the case of Pugh v. Holmes established the rule of “Implied Warranty of Habitability”and over the years, courts have made many habitability rulings based on this case. Interpretations can vary with different judges and in different jurisdictions. Many people are unaware of the existence of this case its impact on tenant relations.
When faced with a difficult case between Landlord and Tenant, a judge will often consult the many points of law before rendering a decision. Important Federal and State Landlord/Tenant Law often stems from these judgments.
Landlord-tenant law in the United States originated from English common law developed within an agricultural society. Habitability stems from this. The basic points are:
▪ Are there any documented code violations
▪ Are there any dangers or hazards in the dwelling
▪ Does the electric and plumbing system
▪ Has the same problem reoccurred numerous times
Unfortunately, many property owners often ignore the potential liabilities of maintenance that involves “habitability.” These actions have lead to major legislation, such as Fair Housing; lead based paint, and mold, which has a far-reaching effect on property owners and tenants.
As professional property managers, we have the expertise to help your investors with these issues. Have your clients contact us so we can assist them with their investment.
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
What Are The Benefits?
January 20th, 2010Many times owners are hesitant to use property management services because of management fee costs. After quoting our fees to a prospective client, we often hear – “you want that much money for just collecting the rent?” Of course, there is much more to managing rental property than “just collecting the rent,” and we are sure that you realize this as well. Although our management fees show up prominently on our statements, if you look at the complete picture, the fees are absorbed many ways.
Tax Benefits
The most obvious benefit is that all management fees are tax deductible, immediately reducing the full cost of the fees on the bottom line.
Reduced Maintenance Costs
Reduced maintenance costs offset management fees several ways. Because our company handles maintenance on a volume basis, we are generally able to procure reliable vendors at a better rate than many property owners can, particularly if they do not live locally. A savings on a major repair, such as exterior painting or carpet installation, can add up to several monthly management fees.
It is a necessity for us to be current on what labor and maintenance costs should be. For example, if an owner has not shopped for a roof replacement in years, they may be unaware of current prices and newer materials. They could pay more than they should for the job and still not obtain the best workmanship.
Additionally, because we take the “preventative approach” to maintenance, this can mean great savings over time, further reducing both maintenance and management costs.
Professional Expertise
A major benefit to our management services is our professional expertise. It may seem that a vacancy is too long, but we know that the wrong tenant can be a much more expensive experience. Moreover, knowing and implementing current legislation can reduce costly mistakes when handling tenants. There are owners that have paid, literally, millions of dollars because of mold, lead-based paint, and other similar lawsuits. Again, we use a preventative approach to save you unnecessary legal costs.
Peace of Mind
Many owners simply find that just having someone else worry about the many details of handling a tenancy is simply worth the management fee. Reduced stress can only be a major benefit for everyone.
Pass these benefits on to your clients and refer them to us for a successful investment experience.
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
Handling Pets
January 8th, 2010Many owners are concerned when you mention pets in their property and have difficulty in making decisions in this area. This is a reasonable reaction since there are times when tenants allow their pets to cause considerable damage. However, when facing the issue of pets, investors often need to use a logical approach. Saying “no” to a pet right away can often lead to illegal pets or possibly missing a great tenant.
The Application
Whether or not an owner allows a pet, it is always advisable to have an area for disclosing pets in an application-to-rent. It is important to obtain as much information on the prospective tenant, particularly if you want to determine if they have pets. If another property owner reveals that the applicant has a pet that he or she did not disclose, this is solid ground for refusing the applicant.
Pets Negotiable
When the property is on the market for rent, use the term “pets negotiable.” The problem in stating a definite “no” is the prospective tenant may be the right person for the property. Well-qualified applicants generally extend the care for their pets to caring for the property. It would be better to have them list their pets, examine the information, and then make an informed decision.
Do Pets Work in The Property?
This is a logical step to consider. Obviously, a townhouse with a postage stamp backyard generally is not suitable for a German Shepherd, Springer Spaniel, or a Great Dane. Common sense must prevail when renting the property to someone with a pet or pets. Owners should look at the property objectively and discuss the issues with their property manager on what pets are suitable for the property before putting it on the market.
Avoiding Some Pets
There are pets to avoid and mostly this means “dangerous and destructive.” Examples of pets many people consider dangerous are Pit Bull, Rottweiler, Doberman, snakes, rats, etc. Any animal that is vicious, poisonous, or dangerous, whether large or small, can cause problems. That is not to say that all Pit Bulls, Rottweilers, etc are dangerous these animals can make wonder full pets to the “RIGHT PERSON”. Good tenant screening often takes care of this problem. It is a good idea to have a list of unwanted pets that are completely unacceptable. Many insurance companies have a “dangerous pet” list and owners should find out what animals they list that could cause claim problems.
Service Animals are NOT Pets
Under Federal Fair Housing, you cannot charge any amount of deposit for a service animal. This is the most common area where property owners find themselves in trouble because they charge handicapped persons a pet deposit.
We have the expertise to counsel investors in making good decisions on whether to allow pets in their property. Have your clients contact us for Professional Property Management so they can avoid the pitfalls of pets in their property. If they have a positive property management experience, they are more likely to contact you to invest again or sell their property. Don’t wait, call us today.
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
Retaining Good Tenants
December 18th, 2009It is obvious why an investor would not encourage bad tenants to remain in their property, just as it is understandable why a property owner or manager would want to put effort into retaining good tenants – it is simply a matter of financial common sense. Vacancies are costly – turnover means high expenditures, not to mention stress. A good tenant is really worth their weight in gold because they make timely payments, care for the property, and take responsibility for reporting problems to the property manager and/or owner.
What retains good tenants? Our company approaches tenant retention with the three R’s – Reasonable Management, Respect for Tenants, and Reward Good Tenancy.
Reasonable Management
We find that conducting reasonable management of the property is the first step. Offering fair market rent and conditions, providing a clean and safe environment, and practicing Fair Housing attracts “good tenants.” This starts everything off on the right track. Then, while the tenant is in the property, it is important to keep up maintenance, which discourages them from thoughts of moving to a “better” residence.
Respect for Tenants
Bad tenants and “slumlords” are the culprits who have created misconceptions about rental property. Everyone has heard the horror stories on how tenants have trashed the property, not paid rent for months, or sued the property owner. Conversely, many tenants feel the landlord and/or manager will not take care of the property, only wanting to raise the rent, while they (the tenants) are the ones really paying the mortgage. As property managers, we have heard it all.
Bad tenants and poor property owners do exist and create these misconceptions. Our experience is both are the minority; the majority of owners and tenants are decent human beings. It is important to treat tenants “with respect,” instead of expecting the worst.
Reward Good Tenancy
Next, reward good tenancy. There are many ways to do this – renewing their lease with the same rent or a reasonable increase; updating the property with new carpeting, paint, or a new appliance; rewarding them with a gift certificate during the year at an unexpected time. Rewarding and recognizing their good tenancy discourages the urge to move.
There are many reasons why tenants move despite using reasonable management, respect, and rewards. However, this approach will simply lead to other good tenants.
Refer your clients to us for “professional management” and we will work to maintain good tenancy and their investment. We can assist them, give them peace of mind, and when they are ready to sell their property, we refer them back to you.
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
Managing Risk
December 9th, 2009Most property owners purchase rentals for investment or tax purposes. The usual goal is to save paying more tax dollars to the government and, at the same time, increase the value of their financial portfolio. With today’s economy and the past few years of erratic stock market activity, investing in real estate has returned as a sensible asset.
However, owning rental property can have hazards and “risk management” is necessary to avoid the pitfalls and horror stories that you often hear. Many property owners feel that management is not complicated, but like everything else today, with the increase of lawsuits, it is “not that simple.”
Preventative Measures
Preventative maintenance is good sense, but also requires knowing the right workers and the right price to pay. Putting in working smoke alarms, proper locks on windows and doors, correcting electrical hazards, immediately fixing plumbing problems to prevent mold, ensuring adequate heating and hot water, removing hazards such as exposed carpet tacks and exposed tree roots, are just a few of the long list of items that can reduce risk for a property owner.
Other preventative measures are screening applicants, counseling tenants, using proper rental/lease agreements, serving notices when necessary, performing good move in and move out practices, complying with current state law on security deposits, and settling disputes.
Legislative Knowledge
No one can manage property with his or her head buried in the sand and good property management starts with knowing current local, state, and federal laws. There are many complicated laws that can lead to major lawsuits. Just a few of these are Fair Housing, the American Disability Act, Credit Reporting laws, the Servicemembers Civil Relief Act, the new Junk Protection Act, and lead-based paint laws. The courts do not excuse an owner for ignorance of the law.
Legislation affects every facet of property management – showings, applications, tenant screening, leases, notices, maintenance, habitability, and more. Each of these areas can lead to “great risk” for a property owner when they do not know the law.
Professional Management
Because many property owners often do not have the knowledge and experience with rentals, they “increase their risk.” It does not take long to reduce their investment because of an unnecessary maintenance or legal bill.
Professional Property Management can reduce an owner’s “risk.” Assist your clients by referring your clients to our company so that we can provide professional property management to “Reduce Risk” and enhance their investment. If they have a positive property management experience, they are more likely to contact you to invest again or sell their property. Don’t wait, call us today.
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
Normal Wear and Tear
November 27th, 2009One phrase that can trigger some smiles among property managers is the statement, “it’s cleaner than when I moved in (the property).” Property managers hear this phrase from many tenants, from those who are clean to one who has lived as a pig in a sty. It is amazing how a tenant can view filth as “normal wear and tear.”
“Normal wear and tear” can elicit very different viewpoints, depending on the person to which you are speaking – a tenant, an owner, a property manager, or a vendor. However, there are definite items that do not apply to the phrase. Here are some examples:
▪ It does not apply to filth and dirt, heavy soil, black marks on walls, rips, or dye stains on window coverings, bleach, or oil on carpets, etc.
▪ It does not apply to negligence, such as allowing mildew to collect on walls & tubs, or not reporting a roof or toilet leak.
▪ It does not apply to abuse, such as ripped linoleum from installing a refrigerator, punching a hole in the wall, stained or ripped window coverings, washing the drapes, etc.
How does our company handle the “normal wear & tear issues?” The first step is to screen the tenants properly as a preventative measure. We prepare the property and create a record of good condition before the tenant moves in.
Our property managers then counsel the tenant on what to expect during tenancy. Then both the tenant and management company sign the rental agreement that outlines the requirements while they live in the property and when they move out.
Later when the tenant moves, we check the property and compare the tenant’s move in with the move out information, followed by properly preparing their security deposit in accordance with state law to protect the owner.
Undoubtedly, there will still be tenants who claim many of the items listed above are “normal wear and tear,” and property managers and owners alike will continue to hear this litany. It is not always easy to cope with the tenant who cries, “’normal wear and tear,” when it is actually damage. However, by using common sense, working on the “tenant’s perspective,” and having good documentation, fewer problems arise, and those that do can be handled as needed.
If your investor is tired of handling tenant screams about normal wear and tear, have them call our management professionals. We can assist them, give them peace of mind, and when they are ready to sell their property, we refer them back to you.
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
Recognizing a Drug House
November 17th, 2009It is very important for Real Estate agents, property managers, owners, maintenance personnel, or anyone else, to be able to recognize a rental used as a drug house. Unfortunately, they are now part of our society. In particular, “methamphetamine labs” or “clandestine drug labs” are very dangerous, and exposure is normally hazardous. Additionally, drug houses can be located in all economic areas of housing, not just low income.
Agents, managers, and/or property owners can be liable for ignoring the signs of a drug house and not taking action. Fines and legal fees can be extensive. However, managers and/or owners must be careful to avoid discrimination or legal action by wrongfully accusing a tenant of drug activity. Nevertheless, if signs of drug dealing are evident, it is more perilous to avoid them.
Any combination of the following may be an indicator of a drug house:
▪ Constant pedestrian traffic, such as many people coming and going at all different hours and staying short periods, are a definite warning sign.
▪ There is usually constant vehicle traffic, coming and going, parking out front, engines left running, or one or more persons waiting while another goes into the property.
▪ Any heavy traffic, coming and going during late hours, is another sign because drug dealers feel people coming after dark reduce attention.
▪ Extreme security precautions become obvious, such as surveillance equipment, extra motion lights, security cameras, large locks, bars on windows, and dangerous dogs such as a Pit Bull or Rottweiler.
▪ Heavy chemical or suspicious odors are coming from the residence.
▪ The tenant exhibits suspicious activities, such as never coming outside, looking out windows when people leave, avoiding other neighbors, lack of upkeep of yard or house, and a lot of activity in the garage area even though the door never opens.
If any of the above activity is noted, there are steps to take or not to take, if drug dealing is suspect.
▪ Do not attempt to handle the problem without professional help from law enforcement.
▪ Do not enter the property if you suspect a drug house or lab. Instead, seek advice and assistance from local law enforcement, the local Narcotics division, or narcotics detectives.
▪ If a problem is occurring right at the moment, call the police or sheriff and make a report.
▪ Do not call 911 unless there is a life-threatening situation, but definitely call 911 if you suspect personal exposure to toxic chemicals.
▪ Contact the neighbors or a neighborhood watch leader if available.
Above all, beware of activities surrounding the property, be careful, document everything, and do not attempt to solve this on your own. Awareness of drug activity is very important to your success and that of your investors. Call us to provide your clients with professional Property Management services.
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
Vacant home in Carbondale? Ordinance Affects Selling/Renting Homes in the City.
September 8th, 2009
If you are an owner, agent for an owner of a property for sale or rent in the City of Carbondale or the owner of a vacant property in general you may want to be aware of an ordinance that affects you.
Carbondale enacted an ordinance in December 2008 which has an important to any vacant properties in the city.
File of Council No. 14:2008: City of Carbondale Vacant Property Registration Ordinance”
Any vacant property in the city must be registered with the city. This is an attempt by the City to monitor and maintain a list of properties which are or shall be vacant for an extended period of time (45 days or more). This will allow the city to have a degree of oversight into what can potentially create blight or pose a “…threat to public health, safety or welfare of the citizens of Carbondale.”
The fees for registration are as follows:
| Time period of the vacancy | FEE |
| 45 days-1 year | $100.00 |
| 1 year vacant | $250.00 |
| 2 years vacant | $500.00 |
| 3 years vacant | $1,000.00 |
| 4 to 5 years vacant | $2,500.00 |
| 6 to 9 years vacant | $3,500.00 |
| 10 years vacant | $5,000.00 |
| 10+ years vacant | $5,000 + $500/year thereafter |
Failure to pay the fees may result in a municipal lien against the property which could cloud the title and prevent resale or of mortgage financing.
Failure to pay the fee may result in additional penalties which depending on the severity of the circumstances could be as high as 50% of the total fee.
A local agent is needed if none of the persons listed on the registration statement are within the state. Said local agent must be within 20 miles of the City of Carbondale. (I like the wording of this much more then the wording of the rental registered agent ordinance which requires the local agent to be in the City of Carbondale, just my two cents…)
There are some exceptions to the fees. A One Time Waiver of the Registration Fee can be obtained if…
The owner is in the process of demolition, construction, rehab, or major repairs with valid city permits.
You cannot just assume that well the house is for sale and I am exempt. You must still go through the process of registering the property the wavier is for the fee not for the registration.
2 year waivers are available for qualified no-profit organizations.
Now granted most homes are occupied when they are on the market but a large number of them are not, especially REO/foreclosed properties. Failure of the agent to advise the seller/landlord of this ordinance could present a RELA violation and result in files and disciplinary actions, as all licensed agents are required to “…advise the consumer regarding compliance with laws pertaining to real estate transactions.” It is simple, when discussing the marketing of the property and the services you perform
I would also caution you to not just volunteer to be the “local agent” as defined in the ordinance. The ordinance requires someone to be available in the event the City needs to service notices or contact someone in event of an emergency. You may be biting off more than you can chew, vacant properties can present a major liability and can be a pain in the butt!!! This issue is especially bad in winter. It is one thing sell a vacant property in winter it is an entirely different animal to be “responsible” for one. Suggest the owner hire a property manager or seek the services of a responsible friend or relative to really be responsible for the preservation of the property. Even a responsible friend or relative may lack the necessary “crisis management” skills needed to handle this type of issue. Do you want to get a call from the City at 3:30 am telling you that someone needs to come down to the property cause the pipes burst!!! Do you want that call? I get paid to take those calls and I dread them!!!
This is part of our effort to help educate and inform property owners, investors, and real estate agents to local and pressing issues. Your suggestions and comments are always appreciated.
Name: Peter N. Lamandre
Email:
Bio: Peter N. Lamandre is a Licensed Real Estate Broker, Consultant, Speaker, Mentor and Licensed Real Estate Instructor in Scranton Pennsylvania. He currently owns and operates Better by Design Real Estate, LLC a full service Real Estate Brokerage in Scranton, PA. One of the areas of specialty for Better by design Real Estate, LLC is property Management. Peter is a member of IREM (Institute of Real Estate Management), the National Association of REALTORS®, the Pennsylvania Association of REALTORS® and the Greater Scranton Board of REALTORS® where he services on various committees and taskforces. Peter can be contacted at his office at (570) 969-2105 or by visiting Better by Design Real Estate, LLC.
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