All Forum Posts by: David Terbeek

As you will see by the link provided by @Joshua Janus the program is not even fully rolled out to all of Cleveland just yet but will be by the end of this year.  We have not heard of the city taking any enforcement actions just yet but that will start at some point, probably soon.  Housing violations are considered criminal violations so it would be in your best interest to be compliant.  Currently, the only downfall of non compliance (other than technically breaking the law) is that the court will not proceed with an eviction action without it.

If the property is in good condition with no peeling paint and replacement vinyl windows (we always replace the old wood windows because they cause lead dust every time they are used) the process is painless and easy, if a bit pricey.

The US market offers great investment markets, as the previous person said Cleveland, Columbus, Cincinnati are all good options.  We are up in the Cleveland market and have worked with countless Australian investors.  Several options exist.  You can assemble a team all individually but good contactors are hard to find or you can work with a pure Turnkey provider like Martel Turnkey or finally find a company that already has the team together and offers turnkey "Services".

One thing to note is that Cleveland limits late fees.  The first post I found on Google sums it pretty well:

Fees for Late Payment of Rent (Section 375.02 (c)).The Ordinance creates a maximum monthly amount for any fee for late payment of rent. The maximum amount is the largest of $25. or 5% of the monthly rent for the dwelling unit.

You may wish to check the National Association of Residential Property Managers (narpm.org) for qualified management companies.  It is a trade organization of companies that specialize in this type of property.

We use Lieberman, Dvorin and Dowd, they are specialized in eviction work although they do a full array of other real estate related work as well.  PM for contact details.

If you have a HML that will be providing draws as work is done, it may be possible to submit appropriate documentation to the city in lieu of escrow. This is noted on their Point of Sale Fact Sheet, see the last line. I recall doing this with a client a number of years back.

Escrow Requirement: If all Class A violations listed in 1329.051 on a Certificate of Inspection are
not corrected prior to transfer of title, an escrow account must be established and funds, in an amount
not less than $1,000 and equal to 125% of the estimated cost of repairs, must be deposited to pay to
correct all violations. A rehab or 230K loan will be considered if it addresses all the Class A violations.

I agree with @Nicholas Misch with one caveat. If the seller was older they may have a Homestead Reduction. This will go away when they sell it and the LLC takes over.

I have a couple lawyers in Cleveland that specialize in real estate and business law.  Nicholas Debaltzo & David Dvorin.  PM for contact info.

Cleveland is similar where the water/sewer follow the property, not the tenant.  We pay the bill then get reimbursed from the tenant.  It it is not fun but seems the best for us.  We have something similar to Landlord Tenant Authority Authority process BUT the tenant has to go to the city in person, pay a hefty deposit and then in the end - the charges are STILL the property owners responsibility if they are not paid (read the agreement carefully to ensure that is not the same in Toledo).  Paying and getting reimbursed seems to be the lesser of the evils.

@Timothy Murphy III  Section 5321.14 / Unconscionable terms.  Is the very general concept of the state law that seems to be used by local courts to say that the water needs to be separately metered to be charged.  Other than Cleveland with their unique law, other courts seem to use this to apply the same reasoning in other communities.  It is, I think, intentionally vague.