An Update On HB2004

An Update On HB2004

 The much debated HB2004 is in the headlines again. Since the bill has passed out of the Senate Human Services and Housing committee with some amendments and has now gone to the Senate Rules committee it will be some time before we know more. For now the bill seems to be stalled in the Senate Rules Committee, and even if it passes the Senate will now need to go back to the House. The bill is fraught with danger for landlords and especially for tenants, and I believe the Senate knows this and stalling for time. With only 3 weeks left in the regular legislative session and still no budget the chances are not good that the bill will become law. We all thought that Governor Brown would have run out of ink with the multitude of bills that have been passed this year, so we still need to keep up the pressure. Call your legislators and let them know you oppose the bill.

Happy Landlording,

James (Ed) Waggoner

The Frost Queen

Every once in a while you run into something just really special. Jeremy and Marsha have been customers of Empire for about a year before I had the opportunity to taste Marsha's delicious baked goods. My wife and I we headed to a party and I had stopped in to meet Jeremy about some repairs. He offered us a couple of ice cream cakes as a party gift. Immediately, we knew that these were special. The cakes were the center of conversation and savored by everyone at the party. Currently, Marsha is providing a good spread every Saturday at the Window Box Cafe in Veneta. She bakes the best Scones, Danishes, Cinnamon Rolls, Cakes, and Tarts you have every tasted. They take special orders for Weddings and any event where you want to sweeten the agenda.

                                         Marsha Sturm - 541-232-4841  thefrostqueen.com 

Down the Rabbit Hole

Being a landlord is not an easy task these days. It seems that we are being attacked from all directions. Politicians, tenant advocacy groups, and the courts all want their pound of flesh. But sometimes the biggest trouble comes from our own stupidity. In this case, we are talking about having your tenants conduct major repairs on your property. In my experience, there is little that can complicate your relationship (or your life) more that having your tenants conduct repairs or cleaning in exchange for rent or deposit. Often landlords are tempted into a "deal" with a tenant that looks to be good for the tenant and good for the landlord. The reality is that the law does allow for tenants to work in exchange for rent without being considered an employee with some restrictions, but the "deal" is loaded with danger. Here are the main objections-

• Tenants are notorious for over underestimating the job that needs to be done.
• Tenants usually are under-skilled for the task.
• Tenants usually do not have the proper tools for the job.
• Tenants over value their worth by demanding credit for close to contractor rates while getting a lot less done at sub-par quality.
• Tenants almost always feel that they were not compensated properly for the job, and are owed a bit of leniency.

This all adds up to a disaster. For example, your tenant does a terrible job of painting the living room by getting paint on the carpet and all over the expensive stained trim or tries to repair the leak in the roof or tells you their brother is an electrician and they can install the new fixtures for you. You promised a credit towards their rent and the tenant thinks they did a great job. At this point, you are in the situation of trying to get the tenant to correct the job and wishing you had just hired a professional or did the work yourself.

Little jobs like tightening screws, maybe touch up painting, regular landscaping, and regular cleaning are good and expected. Much more than this, and you are asking for trouble. Really it is not a matter of if, but only a matter of when the trouble will start. Best practice is to keep it simple by eliminating as much gray area in your business relationship with your tenants as possible. So rent your property only when it is neat and pretty, and then be diligent in keeping your end of the agreement by keeping the property in good condition.

As The Duke would say, "Life is hard. It's even harder if you're stupid." So be smart, and do not let your tenants conduct their own major repairs.

Happy Landlording

This article was published in the Rental Owners Association monthly magazine.

The War Rages On

Empire is currently enjoying a less than 1% vacancy rate, and this is good and bad for Oregon landlords.
It is good because the demand is giving many landlords the opportunity to raise rents in order to keep up with maintenance and begin to be profitable. The competition is so fierce that at many showings we will see 10 parties or more attend. Oregon's only real problem is a lack of housing inventory, and developers are slow to react since the diligence in developing new housing can take anywhere from several months to years.
The bad is that the Oregon Legislature, Governor, and local governments have declared war on "evil" landlords for the service we provide. Here are some of the bills coming along. HB 2004 being most likely to go to the House floor.

• Rent Control - Several bills are being looked at in committee to limit rent increases to no more than 5% per year. 

• End No Cause Notices - There are some exceptions, but even with the exceptions landlords will be required to give a 90 day notice and require landlords to pay for relocation costs of up to 3 months rental value. This is going to destroy the already turbulent market.

• Repeal Prohibition of Rent control for Oregon cities.

• And the worst was already passed in Portland. There, landlords are now required to pay tenants for relocation costs ranging from $2900 to $4500 and landlords are required to give tenants a 90 day notice.

Empire's position is that the free market is a miracle of nearly infinite moving parts and that the government could not possibly help the relationship between landlords and tenants. In the end, Oregon tenants will pay for all of this in the form of lower quality rental units, even more scarcity, and another generation of landlords who see their tenants as the enemy instead of valued paying customers.
Make sure you call and email your legislature and let them know where you stand on the coming legislation.
James (Ed) Waggoner
Empire Property Management

Farewell

Farewell

As some of you already know Tim Waggoner has decided to take a job in the construction industry.Congratulations! While we will miss you and have fond memories of working with you, we wish you well and hope you will be successful. Your dedication and fun loving (pictured- not sure who the ninjas are) attitude will be missed by everyone here at Empire but especially by me (his dad). The door will always be open for Tim at Empire.  Godspeed in your new adventure!

Eugene Rental Housing Code

Eugene Rental Housing Code

The City of Eugene enacted the Rental Housing Code in 2005. Ostensibly, the Code was created to protect tenants by creating minimum standards for rental properties and enforcing those standards through a complaint driven process. On the surface, who could argue with a program that will force "bad" landlords into doing there duty to provide quality housing, but the causal relationship between government intervention and the rise in homelessness and affordable housing cannot be ignored. 

The creation of "minimum standards" cannot be decided by a committee, but only truly decided by the tenant. Each tenant must way the value of the product and the commitment of the landlord to continue to provide that product. We all make this decision when making purchases. These "minimum standards" limit the choices the tenants have in the pool of available rentals by raising the "quality" and therefore price. Many tenants financial situation dictates that they can afford only the most basic housing. But since the housing code will eliminate a lot of this affordable housing the tenants is left with housing they cannot afford. This leaves them with charities from non-profits, government housing programs, and when that fails- homelessness.

The Housing Code itself will not directly effect any Empire customers, as we are educated enough to know that maintaining "minimum standards" is not a path to financial security. However, the Housing Code has far reaching effects, since the cost of housing will increase due to the pressure put on housing from lack of supply and regulation such as the Eugene Housing Code. Inevitably, the talk will turn to rent control. The effect of which will be to create a further lack in housing and exacerbating the lack of affordable housing.

The upcoming Housing Board meeting is your opportunity to be heard. I urge available ROA members to submit written testimony to the Eugene Housing Code Advisory board or the attend the board meeting on Tuesday the 17th at 7:30pm at Harris Hall located at  125 E. 8th Avenue, Eugene. Please sign up to give oral testimony.

This article was originally written for the Rental Owners Association of Lane County and adapted for EPM.

Now You're Cookin'

Now You’re Cookin'
by Ed Waggoner, ROA Board Member and Owner of Empire Property Management, LLC

In the whole realm of managing your rental property, not much thought is given to your cooking appliances until the one you have starts giving you trouble. Since it is generally the landlord’s responsibility to provide cooking appliances, be a good landlord and take care the situation right away.

First, we need to think about whether to repair or replace. This is a judgment call on your part, and before you decide, you need to figure in a few items:

·                     How old is the unit? A range can last for 20 years or even more, as we have units that work just fine at 30+ years old. But when they reach 15+ years the advantage of replacing starts to win.

·                     Is the range a self-clean?  This is huge. You, or a cleaning company, can spend hours cleaning an oven. This cuts into your available deposit, and since judges do not clean ovens, your pleas for understanding will not be heard in court.

·                     Is it ugly? Maybe extra money now to upgrade your rental is in order. Not too much, just clean and new is often enough to make your property more rental-able.

·                     How much is the repair? We all know the adage that when the cost of repair is over 50%  of the cost to replace, it’s better to replace. But first, make sure that the cost to replace is the whole cost, not just the cost of the appliance. Meaning, the appliance,
          delivery, installation and haul away. Look at the condition of the unit. Is it almost new and the breakage is just a fluke? Maybe a repair is in order. There are many good and
          professional repair companies in town - and you can always refer to your ROA Bulletin Business Directory.

·                     Can you fix it yourself?  There are many handy landlords, and a lot of the repairs are pretty easy. New range and oven burners are the easiest. (Buy new stove top pans while you’re at it). All in all, a stove is pretty simple, but if it’s electronic, you may want to leave it to the professionals. For how-to videos try youtube.com and repairclinic.com.

After all this, you may decide to replace. So…what do I buy? First, you want cheap, but not too cheap. Then, the unit has to be self cleaning. Next, if you have an older drop-in unit you may want to consider converting to a free-standing range, since most drop-ins are being phased out of production leaving supply low and prices high. I still like the regular coil burners for my rentals (even though I have a smooth top in my house). They are cheaper to buy and cheaper to fix. All major brands will suit you: Whirlpool, GE, Amana, LG and Frigidaire have all been installed with a slight advantage to Whirlpool in repairs costs. The unit does not have to be new. I have installed many good and functional appliances I’ve purchased from Craigslist or St. Vincent de Paul's. If you’re going new, check around at all the major box stores and appliance outlets for prices. There can be a 25% difference in prices from store to store.

Happy Landlording!

This article was originally written for the Rental Owners Association of Lane County and adapted for EPM.