All Forum Posts by: Erin Dorsey Robinson

Hey there BP friends- I am looking for any recommendations the community can offer for a great MTR property management company. I have one that's FANTASTIC for higher end properties (@Dave Stokley), and now I need one for nice properties that don't fall into the luxury category. Any introductions or recommendations would be appreciated. Thanks in advance.

It has potential. I’m going to be interested to see how the implementation unfolds. A lot of people and a lot of property will be impacted. Hopefully more positives will come of this than negatives.  

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Quote from @Danielle Price:

Quote from @Erin Dorsey Robinson:

Hey everyone- I ran across an article today and shared with my clients and fellow investors. Thought I'd post on here as well. Cleveland City Council has passed a series of new regulations targeting landlords who allow their properties to fall into disrepair.  The new rules will go into effect this Spring (2024) and include measures such as registration of vacant housing, inspection requirements to transfer property and the requirement that out of state investors have a "local agent in charge", a representative on the ground in Cleveland to be held accountable for the condition of the property. Staying informed is still important even if you're not living in the place where you invest. What you don't know can still become a headache.

Link To Article

(photo from the article)

 @Erin Dorsey Robinson. I was looking into a property in E. Cleveland and there was a POS on the property.  Does that mean the issues must be fixed prior to sale and title transfer?  It actually held up the potential purchase being owner/occupied.  

Point of sale violations occur when the city flags certain conditions at the property that do not meet the standard of the city’s building code. Typically, there are two options- either the repairs must be made prior to title transfer, or the buyer has to agree to assume those violations which involves making a written guarantee that the repairs will be made within the required timeframe after closing. There may be a fee associated with assumption of violations- maybe a couple hundred dollars. There may also be a requirement that funds be held in escrow to guarantee the repairs are completed. Those funds are returned after a second point of sale inspection to assess the condition after the violations have been corrected. The escrow hold can be as much as 150% of the estimated cost of repairs. The method by which the estimate is made varies from city to city. 

Ler me know if you have other questions happy to help. You can always inbox me. 

Quote from @Kevin Sobilo:

Quote from @Erin Dorsey Robinson:

@Kevin Sobilo This is true as well. It isn't just the out of town owners who have properties that have fallen into disrepair. I've had many discussions about this same issue. Local owners also have to be diligent. In Cleveland, I think there is a particular focus on out of town owners because the cost of entry is so low. People can come here and purchase property for less than $100k that cash flows so people have been coming in droves and buying things up. 

My market is much the same. A cheaper cash-flowing market, PLUS my market is only a couple hours drive from major cities like NYC and Philly. So, people from those more expensive markets can come here and physically see the properties they want to invest in.

 Oh yeah. That’s super convenient. 

Quote from @Michael Smythe:

Been dealing with this in Metro Detroit for over 20 years.

City of Detroit also requires a lead-based paint inspection!

Michael I know all about that too. Detroit is my home away from home. Both parents are from there. It’s so much bigger. The scale is vastly greater than what we have going on in Cleveland so the problem is bigger too. Cleveland also now requires property owners to pass a lead test at various points for tenant occupied property. It’s not dependent on impending title transfer. What’s your focus in the D? Inbox me! Let’s talk. I love Detroit:)

@Kevin Sobilo This is true as well. It isn't just the out of town owners who have properties that have fallen into disrepair. I've had many discussions about this same issue. Local owners also have to be diligent. In Cleveland, I think there is a particular focus on out of town owners because the cost of entry is so low. People can come here and purchase property for less than $100k that cash flows so people have been coming in droves and buying things up. 

Quote from @Chris Seveney:

Quote from @Erin Dorsey Robinson:

Hey everyone- I ran across an article today and shared with my clients and fellow investors. Thought I'd post on here as well. Cleveland City Council has passed a series of new regulations targeting landlords who allow their properties to fall into disrepair.  The new rules will go into effect this Spring (2024) and include measures such as registration of vacant housing, inspection requirements to transfer property and the requirement that out of state investors have a "local agent in charge", a representative on the ground in Cleveland to be held accountable for the condition of the property. Staying informed is still important even if you're not living in the place where you invest. What you don't know can still become a headache.

Link To Article

(photo from the article)

 What some jurisidictions are doing is fining sellers for illegal transfers when there are issues with property. For example, if you have overgrown grass at 123 Main st they will stop you from selling 456 east street until the violations on other properties are corrected.

That may be an effective approach. I haven't read all the details of this legislation yet to see if something like that is included but I wouldn't be surprised if they moved in that direction. They are going to have to find a way to put some teeth in it because many of the landlords who will be impacted live out of state.

Quote from @Kevin Sobilo:

@Erin Dorsey Robinson, we have exactly this type of rental ordinance in the municipalities near me in PA. They came into fashion 12-15 years ago.

Some portions are probably illegal and unenforceable such as a vacant housing registry. I know places here that want $400/year to register vacant properties but I have never heard of anyone actually doing it or it being enforced. If the municipality ever tried to enforce it they would almost certainly risk having it struck down because they would need to show they did $400 of work to register the house because they can only charge a fee for the actual cost of the work by law otherwise. If they charge more its considered an illegal tax.

Rental inspections are common but really they are occupancy inspections focused on health and safety. Smoke detectors, GFCI outlets, handrails, working heat and hot water, etc. So, they aren't a big deal except for the hassle and cost.

Having a local "property manager" is another one we have which isn't consistently enforced. They want a local contact for the property which really benefits them not at all and since the role isn't clearly defined they don't require the property manager of record to be a real estate licensee even though to be a property manager within PA requires a license. 

Kevin that's interesting to know. It's definitely going to be a bit of a waiting game to see how this unfolds. There are models here in the surrounding suburbs of Cleveland for this type of regulation. The notable example is South Euclid, where Sally Martin, Cleveland's new building and housing director successfully implemented similar measures prior to assuming the role in Cleveland. And since the registration fee is only $70, it probably wouldn't be too hard to justify. Ultimately, this will be tested in the courts. Cleveland is MUCH larger than South Euclid so there will be many more opportunities for someone to bring forward a suit challenging it. No one likes change, but who knows. Sometimes we are pleasantly surprised.

Quote from @Carrie Taich:

Hi, its 2024 and in the 2023 property tax bill just received, Cuyahoga County reassessed the 21 unit building we bought in 2021.  They retroactively applied increased property tax values to tax years 2021 and 2022 and included these fees for past years as "omitted taxes" on our bill.  Does anyone know if this is legal?

 Hi Carrie- I'm with Andrew on legality. But you might also consult an appraisal company. They regularly go in and dispute valuations. This is prime season for them. Please let me know if you need a contact.