Archive for category Legislation

5 Things This Landlords’ Attorney Wants For Christmas

With the coming of the holidays, comes list of gifts that people want for Christmas.  So I thought I would put together one of my own.  So here is a list of the top 5 things that this landlords’ lawyer would like for Christmas.

 

5.   That Tenants’ Requests For Reasonable Accommodations To Allow for the Keeping of  Companion/Comfort Animals Would Actually Be “Reasonable”

The past few years — and especially this past year — have seen a large rise in requests by tenants for a reasonable accommodation to landlords’ “no pet” or “limited pet” policies specifically to allow for the keeping of a companion/comfort animal.  A companion/comfort animal does not need to be specially trained and therefore can be any type of animal including the family dog, cat, gunea pig, or even a miniature horse.  A tenant can ask for a reasonable accommodation — and it should be provided — as long as the tenant has a disability (i.e. an individual with a physical or mental impairment that substantially limits one or more major life activities) and the accommodation request has a “nexus” to the tenant’s disability and will allow them to more fully enjoy a major life activity.

However, somewhere along the line tenants seem to have forgotten about the word “reasonable” in “reasonable accommodations.”

It is not reasonable in my opinion to need 5 kittens as companion animals (which were recently born to a landlord-approved pet cat) just because the tenant thinks the kittens are cute and does not want to get rid of the litter.

It is not reasonable in my opinion for a tenant to request a pit bull dog as a reasonable accommodation just because the tenant’s relative recently lost their home to foreclosure and can’t find a place for their pet “pitty” to live.

It is not reasonable to have to allow a miniature horse as a companion animal because the tenant does not want to have a dog instead because dogs do not live as long as horses do,  and if the dog should die it would exacerbate the tenant’s mental health issues.  Whereas the miniature horse will outlive the tenant so her mental health will be unaffected.  Who cares what happens to the miniature horse after the tenant passes.

 

4.   That Tenants Who File Bankruptcy Be Required To Disclose To The Bankruptcy Court That They Are Renters and that the Bankruptcy Court Create A More Efficient Process For The Tenant To “Pay and Stay” or Vacate

If a tenant files for bankruptcy something called the “automatic stay” kicks in that prevents any creditors (yes, that includes landlords) from attempting to collect a debt or in the case of landlords – evict a tenant.  Now, tenant/debtors are supposed to disclose in their bankruptcy schedules that they file with the court whether or not they have any “executory contracts or unexpired leases.”  Without fail, tenants and there bankruptcy attorneys always check the box saying that they have no executory contracts or unexpired leases.  I have handled at least 30 of these situations for my landlord clients and not once has the tenant advised the court that they were under an unexpired lease.

A landlord is then required to pay a filing fee, file a motion to lift the automatic stay, wait 14 days for the tenant to object, and if so participate in a hearing before the court, to present evidence that the tenant isn’t paying their rent and the landlord should be allowed to proceed to evict the tenant.  This process can be expensive and time consuming for a landlord whose hands are legally bound from doing anything until the bankruptcy court says he can.

It would be nice if the court or the bankruptcy trustee would confirm whether or not the debtor is a tenant and whether or not they are up to date with rent and if not, determine if the tenant can get caught up so s/he can stay, or advise the tenant/debtor that they must vacate the landlord’s property.

To require a landlord jump through all of these hoops in order to remove a non-paying tenant from his rental property is just another financial drain on landlords.  A landlord will spend at least one month (if not more) trying to lift the stay in bankruptcy court.  Once that is completed, he then needs to serve the tenant with the appropriate notice, and after that time has elapsed, pay more money to file the eviction, and then wait another 2 weeks or so until the initial appearance in eviction court.  As you can see, this process can  delay things at least 2 months.  So I would like to expedite this somehow.  Wishful thinking I know . . .  but hey, this is my wish list : )

 

3.   That Tenants Stop Using Jury Trial Demands To “Buy” More Time In Evictions

In my 17+ years of law practice I have probably encountered somewhere between 10-15 requests for a jury trial by a tenant that I am evicting.  Not one of those cases have ever resulted in an actual jury being selected.  Instead the demand is often made just because it will prolong the case.  In Milwaukee County when a jury trial demand is made, the case is tabbed to a large claims judge who often has a very busy caseload and is unable to even get the case into court for a Scheduling Conference for 2 months.  Oftentimes, a trial isn’t scheduled for months after the Scheduling Conference.  On the other hand if a jury trial is not made, the small claims judge in Milwaukee County can hear the eviction within a week in most cases.

I have had jury trial demands filed in failure to pay rent cases where the tenant has no legal defense.  Tenant didn’t pay rent, notice was properly served, tenant didn’t pay past due rent within cure period, and an eviction lawsuit was field.  Tenant doesn’t deny any of it but wants a jury trial.  Now my client gets to sit for months with a non-paying tenant before obtaining a judgement of eviction.  And no, landlords rarely ever see those rent amounts from the tenant even if they obtain a money judgment against them later because many tenants are not collectible.

I have had jury trial demands filed in cases where the tenant is being evicted for engaging in criminal activity that is scaring (and at times injuring) fellow tenants and neighbors.  Yet, with the jury demand having been made, the landlord, along with the law-abiding tenants and neighbors, have to deal with the scofflaw tenant for months, unless they by chance would get arrested.

The law needs to be changed in this regard.  While jury trials are an important part of the judicial system this practice that I am seeing more and more of is clearly an abuse of the system.  Perhaps requiring that all jury trials must be held within so many days of the initial appearance or in failure to pay rent cases requiring that all past due rent must be paid up and future rent continue to be paid or the tenant loses his/her right to the jury trial.  Something needs to happen to stop this frivolous practice.

 

2.   That All Courts Follow the Law with Regard To Granting “Stays” in Eviction Actions

Sec. 799.44(3), Wis. Stats., is very clear that before a court is allowed to “stay” a writ that the tenant must pay all rent and other charges due as well as any rent that will become due during the period of the “stay.”  This law is often ignored by the courts to landlords’ detriment.

I understand that it is difficult to tell a tenant that you are ordering them to immediately vacate the rental property even when the cause of their non-payment of rent is due to no fault of their own – such as losing a job due to downsizing or health issues — but that is what the law says.  If it is a bad law (and I am not saying that it is) then it can and should be changed through the legislative process.

Let me put this in another context.  A tenant that has lost their job or that has encountered a serious medical issue may also not have money to buy food for their family, but that doesn’t mean that they are allowed to shoplift food from the grocery store.  If they did that they would be arrested.

So why is a landlord required to provide housing for a tenant who’s tenancy has been properly terminated and after all proper legal channels have been followed?  What makes a landlord so special that s/he gets this special treatment that places them in a different category than any other creditor.  Why is a landlord required to house the non-paying tenant to the landlord’s financial detriment and risk their ability to continue to provide housing for their paying tenants.  Again, for those non-landlords that may be reading this post, most tenants are not collectible, so saying that the landlord will be made whole when they obtain a money judgment against the tenant is not realistic.

 

1.   That All Landlords Join a Landlord Association (such as the Apartment Association of Southeastern Wisconsin – AASEW) 

There are more private landlords in Wisconsin than there are teachers but landlords’ voices are not anywhere near as powerful as are teachers.  The reason for this is that landlords are not organized.  Landlords tend to be an independent type that enjoy being their own bosses.  That is well and good but landlords need to set that independent spirit aside on occasion for the betterment of themselves and all landlords.  Only when landlords unit can positive change occur for them as there is strength in numbers.  It is very difficult to survive financially as a landlord these days.  But by joining a landlord association,  a landlord’s life can become a little easier.  First, through landlord associations, landlords can create a united voice to challenge bad legislation or champion new legislation.  Secondly, landlord associations provide educational opportunities for their members on changes in the law so landlords can stay out of legal trouble.  Third, there is camaraderie in joining a landlord association which allows members to rub elbows with other landlords may be facing, or have previously faced, the same struggles that you are having.

If all landlords joined a landlord association and became active in them, we have the money and the numbers to create change that would assist our industry.

____

Oh by the way Santa – if you cant give me any of my wishes on this list, I will settle for a new toy bike with red and white streamers dangling from the handlebars : )

Happy Holidays everyone!

 

 

 

Tags: , , , ,

Article on Landlord-Tenant Law Topped the List of WisBar InsideTrack’s Most Read Articles of 2012

Milwaukee lawyer Tristan Pettit’s article on landlord-tenant law topped the list of most-read articles from WisBar InsideTrack in 2012.

In the past year, WisBar InsideTrack received a number of timely and relevant article submissions from lawyers discussing legislative actions and judicial decisions, substantive legal issues, practice management, ethics, human interest and other developments.

On April 4, 2012, Attorney Tristan Pettit of Petrie & Stocking S.C. wrote an article entitled “Landlord-Tenant Law: Rights, Remedies, and Changes Under New Act 143″ which discussed many of the changes in the new landlord-tenant law that took effect on March 31, 2012, including the disposal of abandoned property, severability of rental agreement provisions, acceptance of past due rent and much more.

Here is a link to the Dec. 19th issue of WisBar InsideTrack announcing its top 10 articles.

Here is a link to Tristan’s article.

 

Tags: , ,

Milwaukee’s Amended Smoke Alarm Ordinance To Take Effect June 1, 2013.

On November 8, 2012, Milwaukee’s Common Council passed a revised smoke alarm ordinance by a vote of 13 to 2.

Effective June 1, 2013, all battery-operated smoke alarm must be powered by 10-year or more non-removable (sealed) batteries.  Compliance with this requirement must be met when replacing any current battery operated smoke alarm after June 1st next year or by October 1, 2017 — whichever is sooner.  The AASEW was successful in getting the effective date of the revised ordinance delayed so as to allow landlords some  additional time to use up their current supply of non-sealed smoke alarms.

The remainder of the ordinance which requires a “hush button” be present on the smoke alarm if it is located within 20 feet of  the kitchen and the requirement of annual testing and recording of when the testing occurred and by whom, remained unchanged.

 

Tags: , ,

The Effects of “Obamacare” On The Small Landlord

There are so many questions regarding how the Patient Protection and Affordable Care Act, more commonly referred to as “Obamacare,” will effect small businesses such as us in the rental housing industry.  What is the truth?

AASEW Attorney Heiner Giese, a fellow landlord, has researched the law in depth and will be one of the speakers at the AASEW’s upcoming monthly membership meeting on Monday, October 15th, where this issue will be discussed.  To present an opposing view, former Democratic legislator and current lobbyist, Gary Goyke, will also be on hand.

This is a huge piece of legislation with equally large potential impact on all of us.

Attendance is free to current members of the AASEW and $25 per person for non-members.  Your AASEW General Membership includes admission for all members of a single household.  An AASEW Business Membership includes admission for all owners and employees of a single business.

Please join us this Monday.

 

WHEN:     Monday, October 15, 2012 at 7 PM

WHERE:     Best Western Midway, 1005 S. Moorland Road, Brookfield (just south of I-94)

COST:   Free to AASEW members.  $25 per person for non-members.

 

New Milwaukee Smoke Alarm Ordinance To Require Sealed Lithium Battery Units In Residential Rental Housing

The City of Milwaukee has introduced a change to the residential smoke alarm ordinance.  If passed, the revised ordinance will require the use of sealed smoke alarm units with 10 year lithium batteries in all city residential rental housing.  The proposed ordinance would require landlords to install the sealed unit when replacing a current removable-battery unit or by October 1, 2022, whichever occurs sooner.

In is unknown what the impetus behind the revised ordinance was but most likely it was the fact that tenants still continue to remove the battery from their smoke detectors to use for other things . . . like their kids toys.  While the “hush button” requirement a few years ago partially alleviated tenants removing the battery when cooking, it still did not prevent tenants from removing the battery to power little Junior’s Talking Elmo.

The cost of the sealed unit will run approximately $13 more per unit than current smoke alarms.  Those landlords in an effort to reduce costs who decided to buy smoke alarms in bulk now find themselves facing a huge loss as they will have difficulty using up their stockpile before the new ordinance requires replacement with the new sealed units.

The current ordinance states:

214-23. Battery-Operated Smoke Alarms. 
Every battery-operated smoke alarm shall be 
tested by the owner not less than once every 
calendar year. The owner shall provide a copy of 
test results to the commissioner or the 
commissioner=s designee upon request. Test 
results shall include the date on which testing was 
performed and the name, telephone number and 
property relationship of the person who performed 
the test. Testing shall be performed in accordance 
with the manufacturer=s specifications for testing. 
By September 21, 2005, every owner shall take 
the actions necessary to ensure that any smoke 
alarm located within 20 feet of the primary cooking 
appliance within the unit has a silencing switch 
(hush button).

The proposed revised ordinance is below:

Part 1. Section 214-23 of the code is repealed and recreated to read:

214-23. Battery-Operated Smoke Alarms. 1. TYPE. Every battery-operated smoke alarm shall be powered by 10-year or more non-removable batteries. Compliance with this requirement shall be met when replacing an existing battery-operated unit according to the manufacturer’s recommended replacement date or by October 1, 2022, whichever is sooner.

2. SILENCING SWITCH. Any smoke alarm located within 20 feet of the primary cooking appliance within the unit shall have a silencing switch.

3. TESTING. Every battery-operated smoke alarm shall be tested by the owner not less than once every calendar year. The owner shall provide a copy of test results to the commissioner or the commissioner’s designee upon request. Test results shall include the date on which testing was performed and the name, telephone number and property relationship of the person who performed the test. Testing shall be performed in accordance with the manufacturer’s specifications for testing.

Part 2. Section 214-27-3 of the code is amended to read:

214-27. Smoke Detectors and Smoke Alarms for Residential Dwellings Built Prior to January 1, 1983. 3. TYPE. Smoke detectors and alarms required under this section shall be single station devices, either battery operated >>as provided in s. 214-23<<, plug-in or directed wired A/C units unless otherwise required by the code.

____________________________________________________________________________________________________________________

UPDATE 10/9/12 — The hearing was held earlier today and it was referred to ZND committee for a hearing in November sometime.  The ordinance was amended to require that the sealed lithium battery units go into effect in 2017 (5 years) rather than 2022 (10 years).  A request was made by AASEW counsel Heiner Giese to delay the effective date of the ordinance to June 1, 2013 so that landlords could use up their current supply of non-sealed battery units – one alderman supported this request.  Several alderman expressed concern that this proposed modification to the current ordinance would be expensive for homeowners who do not have to deal with tenants that remove the batteries from smoke alarm units

- Thank you to Heiner for the updated information.

Tags: , ,

AASEW Annual Landlord Trade Show – Wednesday September 19, 2012

It is that time of year again . . . time for the leaves to start falling and the Apartment Association of Southeastern Wisconsin to host its Annual Trade Show.  The AASEW Trade Show is the place to be on Wednesday, September 19, 2012 from 11 am – 5 pm.  The Trade Show will be held at American Serb Hall at 5101 W. Oklahoma Avenue in Milwaukee, WI.

Entrance to the event is free with a donation of  3 non-perishable food items to the Hunger Task Force (or $4).  Collection bins will be on-site.

There is no need to pre-register just show up ready to learn and have some fun.  Oh, did I mention that there will be free food as well.

Come mix and mingle with landlords, property managers, and vendors that work with those is the rental industry.  The Exhibit Hall will have AASEW business members who will be exhibiting their products and services to make your life as a landlord or rental property manager easier.

We will also have educational seminars throughout the day that you will not want to miss.

Some of the speakers will include:

-  Margaret Bowitz of the Metropolitan Fair Housing Council will speak on the ever-important topic of fair housing (discrimination) law.

-  Wausau-area landlord (and fellow blogger) John “Dr. Rent” Fischer will talk about the To 5 Most Asked Landlord Questions.

-  Charles Harris of Credit Matters will provide attendees with Seven Steps To Better Credit.

-  Graig Goldman and Mark Kivley of Re/Max Lakeside will teach everyone how to effectively purchase foreclosure properties

-  Attorney Tristan Pettit will talk about Act 143: Wisconsin’s New Landlord Omnibus Law focusing on the new provisions and their potential pitfalls as well as how the courts have been ruling on the new law these last few month.

I hope that you all can attend this educational and fun event next Wednesday.  If you do please be sure and come up and say hello.

T

 

Tags: , ,

Accepting Past Due Rent After Termination of Tenancy: The New Law and Traps To Avoid

The Landlord’s Omnibus Law (Act 143) introduced a new statutory section to Chapter 799 regarding situations when a landlord accepts past due rent from a tenant after the tenant’s tenancy has been terminated.  Newly created sec. 799.40(1m) states as follows:

If a landlord commences an action under this section against a tenant whose tenancy has been terminated for failure to pay rent, the action under this section may NOT be dismissed solely because the landlord accepts past due rent from the tenant after the termination of the tenant’s tenancy.

On its face, this seems like a very helpful statute for landlords.

As a quick refresher, it is important to remember that a tenant’s tenancy can be terminated in many ways such as after the “cure” period passes after being properly served with a 5 day notice, 14 days after being properly served with a 14 day notice, or when a lease term ends.

Prior to sec. 799.40(1m) being created, tenant’s advocates argued — and some courts held — that if a landlord accepted past due rent from a tenant after the expiration of the tenant’s tenancy that the landlord entered into a new agreement with the tenant for a month to month tenancy, thus waiving the landlord’s right to proceed with an eviction action based on the prior notice.

I personally believe that such arguments are hogwash, but I will not digress, as that is not the purpose of this post.

Nonetheless, because this “waiver” argument was successfully raised in the past, I have always advised my clients to err on the side of caution and not accept past due rent after the tenant’s tenancy was terminated.  A landlord can refuse past due rent in one of two ways.  First, a landlord can simply refuse the tendered past due rent from the tenant or return the rent payment to the tenant.  This is always a difficult pill for landlords to swallow as they know that by returning the rent payment to the tenant that they will never see that money again.

Second, a landlord could hold the past due rent payment in escrow (not cashing the check or money order) and immediately write what I refer to as a “no waiver” letter and send to the tenant via certified and regular mail.  A “no waiver” letter simply advises the tenant that their past due rent payment is not being accepted as their tenancy has already been terminated.  The letter also should advise the tenant that it is the landlord’s intent to pursue the eviction of the tenant and that the landlord will hold the past due rent in escrow pending a determination by the eviction court as to who legally has the right to possess the rental property.  Finally, a “no waiver” letter should again remind the tenant that the payment they made is not being accepted.

Whenever I have drafted a “no waiver” letter for a client that has accepted past due rent from a tenant post tenancy, I never had a court hold that my landlord client waived his/her right to proceed with the eviction lawsuit.  As a result, my clients have become big fans of the “no waiver” letter.

With the creation of sec. 799.40(1m), it would seem that there is no longer a need for a landlord to send a “no waiver” letter or to return a past due rent payment to a tenant . . . or is there.  I would caution landlords against thinking that this newly created statute is the panacea that it appears to be.

Let me explain.

First, if you read the new law closely — which I don’t believe the drafters did or they would have remedied this oversight – it states that an eviction based on a tenant’s failure to pay rent, may not be dismissed solely because the landlord accepts past due rent after the termination of the tenant’s tenancy.

There are many basis for terminating a tenant’s tenancy besides just failure to pay rent.  Other reasons may include the expiration of a lease term or a breach of the rental agreement for something other than non-payment of rent (i.e. criminal activity, damage to the property, loud music, illegal guests etc).  The new law does not address what happens if a landlord accepts past due rent from a tenant and the tenant’s tenancy was terminated for somthing other than failure to pay rent.

So literally speaking, a court could still dismiss an eviction if a landlord accepts past due rent from a tenant who’s tenancy was terminated based on something other than failure to pay rent and not run afoul of the new law.  Ouch!  What about situations in which the tenant’s tenancy was terminated for failure to pay rent AND other reasons?  Does the new law applyin those situations?

A second concern with the new law arose recently in Milwaukee County.  Please note that this information was relayed to me by another person so I cannot 100% vouch that I have all the facts correct since I was not present when this happened.  What I was told was that a landlord’s eviction lawsuit, based upon a tenant’s failure to pay rent, was dismissed because the landlord accepted past due rent from the tenant after the termination of the tenant’s tenancy and failed to advise the tenant that it was the landlord’s intent to still proceed with the eviction of the tenant.  The court held that newly created sec. 799.40(1m) was not applicable in this situation because the landlord failed to advise the tenant of the fact that the landlord still intended to evict them.

Simply put, the new law is not as great as it appears — so be cautious when relying on it.  Know your judge.  Know your court commissioner.  Regardless of what the law says, if the court believes it says something else or is not applicable to your specific facts, you may not get the result that you were expecting.

So as a result of above, I am still advising my clients (despite sec. 799.40(1m) being the new law in town) that they should consider refusing to accept any past due rent from a tenant after the tenant’s tenancy has been terminated.  At the very least they should send a “no waiver” letter.

So proceed with caution.

 

Tags: , , ,