hostile rental owner environment

[Bob Collett]

Hi All

A few weeks ago, the owner of a property I manage received a "ticket" from the city of Cleveland because the tenant did not properly place the trash basket out in front of the house.  The city sent a "ticket" for $100.  The owner was quite upset, insisting on knowing who was going to pay the ticket.  The tenants had already moved out, so my first thought was to tell the owner that of course, the owner would have to pay the ticket.  Since this was not a sophisticated owner, I decided to simply pay the ticket out of my own pocket rather that go round and round.

Now today, I get a "complaint and Affidvit" from the city of Garfield Heights.  The city issued a ticket for $150 for failure to bring the empty trash bin back in, within 12 hours.  I called the city of Garfield Heights, and they told me that the fine is waiverable by paying $180.  Upon further investigation, the city advised me that there have been three similar complaints on three separate occasions, resulting in three separate fines of $180 each.  Understand that the violation is failure to bring an empty trash bin in from the tree lawn within 12 hours.

I spoke with our Councilman at Garfield Heights and he explained that they are not allowed to issue a citation to the resident, so they go after the owner for housing violations which is criminal court.

On another subject, the city of Cleveland is on the verge of passing an ordinance that would pass the burden of proof to the owner, to prove that their house is lead free.  So first, you would be required to hire a lead specialist to test and certify... then if they find lead, your would be required to hire a certified lead mitigation specialist to remove all the lead.  

My point here is simply to let investors know that there is more to investing in Cleveland area real estate than meets the eye.

[Gwen Fyfe]

Bob, I have a few thoughts on this. 

First, yes, I own an older home in Cleveland - my own. Do you think I’m going to stand by and let my kids get lead poisoning? If I’m watching out for my own kids, why is it okay to endanger other people’s children?

The investor who has a $20k repair to make on a $40k home they bought a year ago is responsible for it because they bought a home for someone else to live in. No one NEEDS to buy rental real estate. This type of investment is a luxury, and it’s a luxury with obvious moral implications. If you buy a rental, you have a responsibility to make the tenants safe. You wouldn’t rent the home out with a gas leak, no smoke detectors, or a wiring issue. The only reason landlords are trying to convince themselves that lead is different is that the bill is higher. Which is reprehensible.

In Cleveland, my understanding (and yes, I’ve been keeping up with the reports on this issue) is that the vast majority of the problem is from lead paint in older homes and lead in the soil of former commercial properties. Not so much the city water infrastructure. If the city tries to fine you for something that’s in their control not yours, take them to court, great. If the city starts fining you for a safety issue they were ignoring before... well, the only reason it’s taken this long is city officials trying to please landlords, and frankly I don’t want this issue to be ignored in my name.