All Forum Posts by: Michelle Fenn

Jim Wise is totally correct about CMHA. They publish fair market rents on an annual basis on their website, overstate voucher values and then make up rent offers as they go. Only after making the housing provider wait 2-3 months for an inspection. This must be part of the process, lure them in with an overstated public fair market rent, make them wait extended periods of time for an inspection and offer and then low ball the offer in hopes they will accept it, because they can no longer wait to fill a vacancy. And housing advocates wonder why, landlords do not want to accept vouchers. Creating legislation that makes section 8 voucher holders a protected class and requiring landlord to not discriminate due to type of payment, already been legislated in NE Ohio, is not the answer. Tweek the process. Inspect the property while the housing provider is making the unit ready to re-rent, once the inspection passes provide and offer and then allow the housing provider to accept any applicant with a voucher for that much of more and finish the paperwork within 30 days. If HUD could do that, they would be amazed on how much more affordable housing would be available. Care rent assistance is like some many other government social policies, not a bad idea, followed up by bad execution. The liberal social worker of my youth is now a small government advocating grandmother.

I have now processed 3 Cares rental assistance claims for unpaid rent.  The first claim reimbursed the landlord for 3 months of back rent and late fees.    This week I have received the paperwork for the second round of rental assistance funding.  The rules have again changed.    In Cleveland area the fund are distributed by CHN   Cleveland Housing Network.   I have searched the internet for landlord program description and guidelines without success.   I assumed that the program guidelines would be documented on the "landlord forms".   The first round of funds paid unpaid rent and late fees.   The second round of funds guidelines have changed.

They now request information on unpaid rent, fees and other, at the bottom of the form they provide a maximum payment allowed number the amount on my form was $7,128. I then received an email acknowledging that the form was received, but the maximum allowed "Fair Market Rent" would be not the $1,400 rent but $1,183. I have no idea where this number comes from, it is substantially less than published HUD Fair Market Rents or CMHA rents for the Cleveland OH region. The email informed me that I must accept the reduced rent amount or return a signed tenant repayment plan by the next day. I was also required to sign that I would not evict for a stated period of time. It is almost as the government is forcing rent control through this program. I am waiting for the third email that informs me that by accepting a reduced rent payment for 3-4 months that I have accepted changes to the terms of my written lease.

Jim is absolutely correct.  To attract qualified tenants I would recommend a suburban neighborhood with a well rated school system.   The trendy neighborhoods close to the urban core will also attract a good tenant but I find they tend to move on in a year or two, so you are filling vacancies much more often.   

I did ultimately get my license but I debated it for 2 years.   The classes required to become an agent are not expensive and will give you a good understanding of the laws associated with real estate.   Once you become an agent you are then subject to the ethical considerations of the profession.   IE  you can not deliberately underestimate the value of a property to obtain a great purchase price.  Over the years I listed properties that sellers accepted purchase offers that as an investor I would have seen as a great deal, but I was unable to make those offers due fiduciary responsibility to my client.  On balance being an agent has benefited my investment business.  I work for a broker that allow me to sell my own properties for free.   This has given me an opportunity to sell and  use 1031 exchanges without the concern of the cost of a listing commission. 

I am in the Cleveland market and our applicant requirements are very similar to yours.    In C  class properties I am having problems with finding applicants with even our minimum 550 credit score.   We exclude applicants with evictions, but I am told they have no evictions only to find multiple filings.  

I would pick a tenant with a good credit score and income less than 3x the rent, rather than the other way around.  

As the banking industry refers to the 3 C's of credit     Character, capital and capacity.   I feel Character is the most important.

About the only things we can use to exclude applicants finances and cleanliness.  Some housing activists would like to make felons a protected class but we are not there yet. We always include a minimum credit score and no utility delinquencies on our online application instructions.   We also state that anyone with a violent criminal background will be rejected.    After reading our introduction to the online application most persons that we would reject elect not to apply.  

In general if a tenant moves without forwarding information, usually after failing to pay the last months rent, I start checking social media.   It is amazing they sneaked out on their landlord but announce to the world their new employer.   I then have them served at work.

City POS requirements are not waived in economic opportunity zones.  In fact in Cleveland to get 15 year tax abatement you need to follow green guidelines which mean the garage needs to be detached.   ???

Absolutely do not try to bypass city POS and building dept regs.    You can end up in court.  If you want the east side, bypass Cleveland Hts, Shaker Hts, South Euclid, Maple Hts,   They all require 100% and higher escrows.  Euclid is 50%, Garfield Hts has POS but no escrow.   Cleveland does not have POS but in 2021 or 2022 you will be required to get your investment property certified that it is lead safe.  

Many cities have what I like to call drive-by POS.   Which means they require the exteriors to meet code.   Most of the cities also require home owners to meet the same requirements.   This actually helps maintain  neighborhood minimum standards which is a plus for all of us.

When I am representing buyers that do not agree with the listing agents pricing, I make sure I respond to the showing feedback with facts and realistic repair costs supporting why I believe the pricing to be out of line.   Then when the "low ball" offer comes in, it is not unexpected.