All Forum Posts by: WAYNE G.

You can always get your judgement.  Getting money is another story.

If you give up trying to collect send a letter to last known address forgiving the debt.

Then send a 1099 to the IRS (and debtor) reporting the canceled debt as income.

If you don't get paid, at least get satisfaction.

Jeff I currently don't work with Section 8 in the Baltimore county or city, because of the problems of adding third party to the mix.  However I am aware of a number of things of interest to the Bigger Pockets Community and you.

Baltimore city is moving to a different inspection plan.  If you pass this year with no issues, they won't physically inspect next year, but will require an affirmation that property is in good shape.  (This will allow more time for call out inspections.)  This is only in Baltimore City, no where else in country.  

The city has a lot of vouchers to issue this year, and Dept of Housing expressed concern about properties available to meet demand. Dec 8 they announced another $500,000 for veteran housing vouchers.  Earlier this year they stated they basically had double the normal number of vouchers.  Demand for rentals will be strong.

This best tip I've heard to deal with inspections is to inspect the property yourself, prior to the agency inspection.  Allow enough time to repair anything you encounter, or train your tenant on how to keep their voucher.

The big difference in investing in the city and county is the risk and reward.  There are a lot of positive cash flow properties in the city, not so many in the county.  Maybe you'll buy in the next area to gentrify, maybe not.  Maybe you'll deal with lead paint correctly, or maybe you'll fund the purchase of another sports team.  

My only dealing with county housing was enough to make me run away.  Still I suspect working with the county is better than the city.  (I don't invest in the city, primarily because I won't subject myself to dealing with the city agencies.)

All Maryland rental properties built 1950-1978 can no longer opt out of lead paint registration.  You MUST register with MDE prior to end of 2014.  Inspection can wait till your next turnover.

Nicole, thanks for starting this.  It has a big impact on Maryland landlords. Compliance is not that bad, its just costs money. 

In Maryland currently any rental property built prior to 1950 must be registered with MDE. The change in the law taking effect at the end of this year brings properties built prior to 1978 under the lead laws.  Before the change they could choose to opt into the program to determine their status.

If you own pre-1978 rental property in Maryland you must register with MDE prior to the end of the year, or you are subject to fines.  You can wait to a tenant changeover to test your property, but you must register before the end of 2014.

The program was set up to provide a liability cap to landlords that complied with the laws about reducing exposure to lead. The cap limiting liability to $17,500 was overturned and suits are in the multi-million range.  Anyone thinking of investing in Baltimore has to understand this issue, and how to mitigate the risk.

The original goal of the program was to provide economical rental housing that would prevent lead poisoning.  We ended up with degrees of lead removal:

Lead Free: There are no exposed lead surfaces. (It can be sheet rocked over, covered with AL, removed, etc.)  You are exempt from further inspections.  Testing requires XRF gun.

Limited Lead free: Only exposed lead paint is on the outside.  Must have visually inspected every two years.  City Inspector walking by and seeing chipped paint outside can ruin your year. First inspection is with XRF.

Lead Safe:  Lead paint can be anywhere, but when you ran a wipe test no dust was found.  Requires testing at turnover (or possibly more often), and you better never ever have any chipped paint.  This exists because a house built prior to 1950 may have to be gutted to the studs to get the lead out.  (However that is what many do to avoid the suits.)  A bill recently failed to pass that would require testing anytime a tenant became pregnant.

The best news about all this is most homes built after 1950 only have lead paint on the outside.  With some effort, (new exterior doors, capping lintels, permanently covering any exterior paint) you can achieve lead free, and your tenants have a safer home.

This issue is complex, and this lengthy post barely covers what you must know.

For Baltimore City there is a specific addendum needed to the lease for water to be treated as additional rent.

The Baltimore County Library provides access, for those with library cards, to the uslegalforms web site, which has leases and lots of other MD specific documents. 

If you farm a particular area/street you can look on SDAT.  Enter a street with no number and all the properties under OWN OCC with a N are "investment" properties. In the city many may be vacant.  

Baltimore county has a list of rental properties that are licensed on the web. 

The city will place ~1600 vouchers between now and July.  The shortage of Sec 8 units is expected to limit placement.  The waiting list for vouchers was reopened recently (Oct 22?) and I believe is already closed.

You can help your Landlords by making sure they are aware of the changes to lead laws affecting properties built after 1950 and before 1978 that go into effect 2015.

The Nanny state of Maryland takes care of this for you.  You must escrow security deposits and pay 3% interest on the funds.  Isn't that great, it has an automatic increase built in.  (Of course you know where that money comes form, because it is not from interest on the account.) 

Effective Jan 1 2015 it becomes a floating rate with a floor of 1.5%.  It is so complex they must provide a web based calculator.  

HI Brittney

I've bought many tax liens in Baltimore City, as has @Ned Carey.

If the bid is high enough to make you happy to sell, then the lien holder can be stuck with the lien.  You will not be able to finance or sell the property for a while, though.

If the bid is lower than you "sell it" price, you will want to take action before they add even more legal fees.

Contact me [email protected] and I will see what I can find out.

Wayne G.

Can you hang a mirror on the door to cover the hole?

Baltimore City "Housing Voucher Program" closed their waiting list in 2003.  Today (9/22) they should announce reopening the wait list on Oct 22.  There is talk of >50,000 applications.  (It will be done online to avoid disasters that occurred in other cities.)

The Baltimore program has an extra 800 vouchers that they need to place by June. When asked how this budget change came about from the tighter budget position @Ned Carey  mentioned, the reply was, It is an election year.  They have a normal turnover of 800 vouchers, so this is a big increase, and they are not sure the property inventory will be available to fill 1600 vouchers.

Baltimore pays a premium to market rent.  They should pay a premium as it makes renting more complicated by adding a third party.  I don't want to deal with the third party, but every year a bill goes to our assembly to end "income discrimination."  So far it has failed to pass.

Baltimore is unique in trying to reduce the annual inspections. If you pass inspection this year, you get skipped next year.  This brand new program is an effort to reduce the time spent inspecting properties that never fail.  They are also developing a self-certification program where you correct minor issues, sign a form saying job done, and inspection is complete without revisiting property. (also not going to be available elsewhere.)

All this was learned at my local REIA meeting which hosted a Section 8 presentation. It pays to support/attend your local REIA.

Baltimore city and county water bills are different in one significant respect.

Sewage charges in the county show up on your annual property tax bill, in the city they are included with the water each time.  The annual county bill is adjusted based on usage, and I think it is the water bill $ times 3.  Getting your usage corrected is more important than you might think.  Water is $1.94/1000gal and sewage is $5.84/1000gal.

For my units (county) the water bill comes to me, and I pass it on to the tenant as per the lease addendum that states it is payable as rent.  I treat the sewage portion of the tax bill as an operating cost and don't directly charge it out. (I know some that send the annual sewage bill to tenants and give them several months to pay.) I believe a water addendum is required in the county.

If the water bill isn't paid @Ned Carey will be glad to scoop up your lien in the tax sale. I think the city raised the minimum to $500 of unpaid cost.  Water bills put a lot of properties in tax sale.

Hi @Kirsten Sitnick. Nice to see you here.