THE

APARTMENT NEWS

Apartment Association Of Northwestern Pennsylvania, Inc.

1127 West 38th St. Erie, PA 16508 | (814) 866-7414 | Fax: (814) 866-2732

Open Mon-Fri 9:30 am to 5:00 pm | office@aptassoc.com | www.AptAssoc.com

WE ARE 1,500 STRONG — REPRESENTING 19,900 RENTAL UNITS

Upcoming Meetings

CHRISTMAS PARTY December 9, 2015

Maennerchor Club

CHILI PARTY

January 21, 2016

President’s Message by Joel Miller

As we enter the winter season I hope that you’ve got all your units “in for the winter.” What I mean is that I hope you’ve got all of your units occupied without any leases coming up for renewal (and consequently a possible vacancy) until spring time. Having said that, though, over the years I have found that although there aren’t as many renters looking to move in the winter months it seems sometimes that the ones who are looking are more serious about it instead of just “kicking the tires.” Perhaps that’s because there aren’t as many units available to them. So, I guess it works both ways. The best thing you can do, of course, is to always make sure you prepare your units well for showings no matter what time of the year. Speaking of the winter months, have you thought about sending your residents a reminder letter about the necessity of changing their furnace filters? After all, it’s their gas bill that goes higher if the furnace has to work harder. I also remind them about putting their storm windows into the proper “winter” position with the outer storm section on top and the other one on the bottom. This would include attic windows that may have been left open a little to vent the summer heat. Don’t forget to spend a few minutes re-familiarizing yourself with all of the local, state and nationwide benefits for all Apartment Association members on our website at www.AptAssoc.com. You can see all of them by clicking on Member Benefits, plus a detailed list of how to connect with each of the separate national benefits (those from National REIA) is the top item in the Downloads drop-down menu in the Members section of the site.

Page 2 | Moving On Up From Real Estate to Rent Estate

Page 4 | Open and Shut Treatment For Sticky Windows

Page 7 | Applicant’s Current Landlord

May Lie

Page 8 | Rock Salt vs Ice Melt vs Pellets

Page 9 | For Sale By Owner

Page 10 | Top Ten Pitfalls Landlords Face

Page 13 | New Members

Insert | Christmas Party Reservation Back Cover | Dinner Meeting Registration

November 2015

Inside the Newsletter

HOLIDAY SCHEDULE

Office will be closed:

November 26 & 27

December 24, 25

January 1st

SOMETIMES THE BEST DEAL IS THE ONE YOU DON’T MAKE

Proper due diligence before you buy can save you thousands

Successful investing is all about mitigating risk. Doing a thorough due diligence is one of the best ways to mitigate risk in real estate investing. One of the biggest failures of new and experienced real es-tate investors is not doing a proper analysis of the property before the purchase or not do-ing any analysis at all. Skipping your opportunity to perform your due diligence can cost you hundreds or even thousands of dollars after you own the property. You work hard for your money and you want your investments to be profitable assets. Don’t let your next purchase be a liability because you didn’t “look before you leap”. We will cover all the types of due diligence, why they are important and how to find the right professionals to get this work done correctly.

Join us along with our presenter, Joe Herbert, CCIM, SFR, CRS for good food and great information!

Nunzi’s Restaurant 2330 East 38th Street, Erie, PA

Networking begins at 6:30pm/Dinner 7:00pm

Reservation deadline is November 16, 2015 Reservations are required and that form is on the back cover

Thursday

November 19th

Make your

reservation today!

$15 per person

2

MOVING ON UP: FROM REAL ESTATE

TO RENT ESTATE by Kevin Ortner, Renter's Warehouse

When you think of real estate investments, well-known business moguls and investors probably come to mind.

But while getting into large-scale real estate investing is largely relegated to the realm of the top 10 percent, there’s another option that’s available – an easier way to make money with real estate. One that doesn’t involve dealing with multi-million-dollar complexes.

We’re talking about Rent Estate™ – owning an income property and renting it out for profit.

Rent Estate is a great way to earn a passive income, and best of all, it’s accessible to just about anyone. As long as you’re interested in the idea of owning income properties, that is. And if you already own your own home, you’re already a part of the Rent Estate™ club.

Like all good things in life, though, in order to be successful, you’ll need to know the rules of the game. If you’re interested in the idea of Rent Estate™ and wondering if you can make money at it, here’s how you can capitalize on the grow-ing demand for rentals and get in on the Rent Estate™ action.

THE NEW AMERICAN DREAM Not so long ago, owning your own home was what many Americans aspired to; it was a symbol of stability. Today, though, a home isn’t just a roof over your head – it can also be an investment, an asset, a means of generating an income. Owning a piece of real estate – and renting it out for a profit while your property continues to appreciate – has become the new American dream. This is a great way to generate an additional – or multiple – streams of passive income, giving you the freedom to be your own boss, to have your own retirement account and to generate healthy returns. With real estate investing, your success depends largely upon how well you can time the market. Real estate investments usually take time – months, even years before you can see a return – and even

then, you see results only when you sell. With Rent Estate™ though, you can start generating revenues almost right away. You’ll be able to capitalize on the country’s growing demand for rentals while you wait for your property to appreciate. It’s a double win! One of the best things about Rent Estate™ investing is that it can be done by normal, everyday people. Rent Estate™ is for the average American who already owns a piece of real estate and wants something more from it, but without a great deal of hassle. Rent Estate™ is easy to get started with, and even easier to manage. It really is the investment opportunity of the century.

KEY BENEFITS OF RENT ESTATE

Experience Asset Appreciation

Owning property allows you to experience asset appreciation – this is especially the case if you’re in it for the long haul. Purchasing a property with hopes of flipping it and making big bucks in a few months or a couple of years is risky, but properties tend to go up in value, and waiting out the minor peaks and falls in the market is often the best long-term investment strategy. The median single-family home has appreciated 5.4 percent since 1968, while the value of the dollar has depreciated significantly.

Have A Tenant Pay Your Mortgage

Owning a rental means that your tenant, effectively, will pay your mortgage for you. Or at least, a large portion of it. Real estate investments require you to fork over a significant amount for the property and then wait until you sell it to see a return on your investment. But with Rent Estate™, you won’t have to wait to start seeing some returns, you’ll be able to start collecting revenue right away – as soon as you get a tenant. The concept of having the tenant pay the mortgage works especially well in the case of multi-unit properties like a duplex or triplex, where you’re able to live expense-free in one unit, and use the rental income from the other units to pay the mortgage and other expenses.

Continue on page 6

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LANDLORDS, BE DISCREET

Landlords, remember, the information that you receive from our office is for your eyes only, and is not to be passed along to the tenant. If a tenant doesn’t meet your criteria based on the credit report you received from our office, you must give them an ADVERSE ACTION NOTICE, you CANNOT give them the credit report.

Please do not tell them that the Apartment Association won’t let you rent to them or

to call our office.

Help Prevent Fraud

Request to see the applicant's social security card and drivers license for positive identification. Take a picture of both with your smart

phone and email them to yourself for your files.

4

REPAIRS: Open-and-Shut Treatment for Sticky Windows

From The Associated Press

It's frustrating to have windows that stick, especially during the hot days of summer.

Most homes today have double-hung windows. These have two frames or sashes with panes of glass. The upper or outside sash slides down and the lower or inside sash

slides up. The movements are controlled by pulleys with cords (or chains) and weights hidden within the frame. A double-hung window usually sticks because:

* It's painted shut. * Paint or dirt has accumulated in the grooves or on the edges of the moldings. * Humidity has caused the wood to swell. * The weather stripping fits too snugly.

Here are some tips:

If paint has sealed the window sash to the frame, insert a wide putty knife--never a screwdriver--between the parting strip (the strip between the window frame and the sash). Work the putty knife up one side of the sash and down the other. You may have to tap the handle with a hammer to coax the blade in. If that doesn't work, place a block of wood in the channel just above or below the stuck sash. Tap the block a few times with a hammer.

Once you've opened the sash and are able to freely move both sections, use a narrow putty knife or chisel to carefully cut away all the gobs of dried paint from the sash and parting strip. Sand the scraped areas, vacuum the sash channels, and lubricate them with stick paraffin, paste wax, hard soap, petroleum jelly or a spritz of silicone spray. Wipe off the excess.

If weather stripping is too tight, lubricate it with a bit of stick paraffin or hard soap. If that doesn't work, carefully remove and refasten it to allow more clearance. Don't move it too far from the sash or you'll negate the cold-air protection the weather stripping provides.

A casement window, which is hinged on the side, operates by turning a crank and seldom needs repairs. If becomes increasingly difficult to open and close a casement window, remove the screws from the crank assembly and inspect the gears. If they are badly worn, replace the whole assembly with a new one available from a window dealer. However, if the problem is caused by old, hardened grease, wash the assembly in solvent and re-lubricate with fresh grease.

Make sure that the operator arm slides smoothly in its tracks as the window is opened and closed. If it doesn't, remove and straighten it. Or clean out the accumulated debris. Then apply a generous dab of fresh grease and reassemble.

If you feel a draft with a casement window closed tightly, adjust or tighten the locking handle. Or install a thin layer of self-adhesive foam weather stripping between the sash and the frame.

Though some sliding windows are made of wood, most are aluminum. They move along a closely fitted track at top and bottom. If you have trouble sliding the sash or storm window, remove both as well as the screen. Clean out debris and clean the metal weather stripping, its groove and the edges of the storm window and the screen.

Apply either stick paraffin or paste wax to the edges. Then reinstall the three components in the reverse order that you removed them.

John P. Dubowski, CPA

Apartment Association Member

INCOME TAX PREPARATION INDIVIDUAL PARTNERSHIP, CORPORATE

9710 Peach St. Waterford, PA 16441

(814) 679-9033

We make evening appointments for busy people.

You’ll feel good about our relationship.

DO WE HAVE YOUR CURRENT E-MAIL ADDRESS?

Don’t forget to notify the Apartment Association office of your new email address. This will avoid any disruption in service for downloading your forms or advertising your

rental units on our website, important information about your membership, upcoming meetings and legislative issues.

You can call us at 814-866-7414 or email us at office@aptassoc.com with any changes.

5

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6

Continued from page 2

Gain Monthly Cash Flow

Rent Estate is a great way to generate an additional source of income. Or if you own multiple properties – multiple income streams. And once your mortgage has been paid off, the rental income after taxes and general expenses will be all yours.

Own a Long-Term Investment

Rent Estate is a great long-term investment – something solid and tangible, that’s less affected by little dips in the market and is much less volatile than other investments. In the end, you’ll have the property paid off – and a sizable investment to show for yourself.

Enjoy Tax Benefits

Owning rental property will give you the chance for tax write-offs. As long as you rent the property for more than 15 days per year, you will be able to write off expenses associated with the rental – insurance, maintenance, utilities, travel expenses to and from the property and more. Most small-scale landlords are able to deduct up to $25,000 in rental property losses each year.

Protect Your Wealth Against Inflation

Real estate can serve as an excellent hedge against inflation. As your money sits in the bank, it depreciates each year due to inflation. But real estate tends to appreciate over time and is a great way to protect your wealth – an excellent form of long-term security.

Save for Retirement

An income property can be a great way to save for retirement – and your gateway to financial freedom. No matter how you look at it, you’ll have a great investment that you can use during your golden years. You could keep the property as a retirement home and return to it one day, or keep it as an income property and use the revenue to supplement your retirement. Or, sell the home and use the money to buy a different place – it’s completely up to you!

If you’re interested in Rent Estate, now is a great time to get in on the action. Interest rates are still low, and the market is still recovering from the 2007-2008 financial crash. This means that property values, in many places, haven’t yet reached the top.

Our country is entering an era that is seeing an unprecedented demand for rentals, and now is a great time to own rental property. The share of U.S. renting households now stands at a 20-year high and falling vacancy rates are driving the price of rentals higher. This shift from owning property to renting is something that’s expected to continue over the next 20 years, when an estimated two-thirds of families are expected to be renting rather than buying – making now a great time to own Rent Estate™.

WARNING: APPLICANT'S CURRENT LANDLORD

MAY LIE! By Mr Landlord

The fact that some landlords may lie may not be a revelation to many of you. But just in case, you are new to landlording, this revelation may save you a ton of grief, frustration and money. Why would a landlord lie? Often times it is because they are hoping to get rid of a problem resident, and so they do not disclose the truth of how bad the resident has been when another landlord calls to ask about an applicant's rental history. The current landlord wants more than anything for their problem resident to move, so the current landlord does not want to say anything to scare the "next" landlord from accepting the applicant.

Here's one recent story shared on the MrLandlord.com Q&A. "I called a previous landlord to verify reference on an applicant. She gave all good reviews, said the resident paid on time, was up to date on her payments and took good care of her place. I informed the applicant that she could move into my place and received a security deposit. Now the previous landlord calls me back to say she felt guilty and did not want to pass her dead weight off to me. She said the girl was a tenant nightmare and admitted that she lied to me to get her out of her place.

Again, a landlord not telling the truth or full truth regarding a departing resident is not uncommon. What was uncommon, was that the previous landlord in the above story felt guilty and called back the next unsuspecting landlord just in time.

This is why the following advice is given to landlords regarding verifying information on rental applicants 1) Never depend on a current landlord reference. Go back one or two landlords to get feedback. 2) Do what you can to actually verify they are landlord and not a family member or friends. 3) Always check with landlords of addresses found on credit reports that are not listed on rental applications. 4) Have a clause in your lease that says if any information provided on rental application is discovered not to be true, this is grounds for nullifying acceptance of rental applicant and/or termination of the lease.

7

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8

Rock Salt vs. Ice Melt vs. Pellets www.braensupply.com

Melting existing ice, and preventing water from freezing on your property is one of the most important things that you can do to maintain your home’s property during the winter months.

With so many different types of ice melting products on the market though, you may find yourself wondering which to purchase. What’s the difference between traditional rock salt, and other de-icers like ice melt and pellets? By taking a closer look at the characteristics of each, you can make the best decision for your needs.

Rock Salt

Although commonly referred to as rock salt, the technical name for this de-icer is Halite, and it is the mineral form of sodium chloride. Most people are familiar with the concept of utilizing rock salt as a means of melting icy patches on their driveways, front steps or their walkways, but don’t really understand how it works. When the salt begins to penetrate the ice, it forms brine (a solution of salt and water). Brine has a lower freezing point than pure water, which then causes the ice to melt.

Rock salt is capable of lowering the freezing point down to 25 degrees Fahrenheit. Because of this, the mineral is most effective in areas that do not typically deal with extremely low temperatures. In regions where the temperature may fluctuate between falling below 25 degrees and rising above it, rock salt could actually cause damage to surfaces. This is because the frequent freeze and thaw cycles can cause concrete to crack, or to develop weak spots.

Ice Melt

Of the ice melt products available, the most prevalent salt varieties include calcium chloride, magnesium chloride, sodium chloride and potassium chloride.

Calcium chloride is thought to be the most effective of all ice melts, as it is able to melt ice faster, and in much colder temperatures. It is actually capable of bringing the freezing point of water down to -25 degrees Fahrenheit. The most unique aspect of this particular type of ice melt is that it not only forms a brine, like rock salt, but it also generates heat, speeding up the melting process.

With the exception of potassium chloride, all of the most common ice melts are able to work in colder temperatures than rock salt. Homeowners should be advised, though, that some ice melt products can be harmful to pets. Usually ice melt is in the form of fairly large granules or flakes, but may sometimes be found in liquid form.

Ice Melt Pellets

Ice melting pellets are quite similar to other ice melt products, with the exception of the form that they take. As the name suggests, pellets are round and circular, and are typically the size of a pea. This has both its advantages and disadvantages. The pellet shape enables the product to really bore into, and beneath, the surface of ice which helps in quickly developing a strong brine. This also makes it easier for homeowners to further clear snow and ice from their properties, as the bond of ice to the surface being cleared is weakened. Unfortunately, the pellets may also tend to roll on sloped driveways and surfaces.

All de-icers come with their own unique set of pros and cons. By considering these, as well as your needs, you’ll find the right fit.

This publication is designed to provide informative material of interest to its readers. It is distributed with the understanding that it does not constitute legal, accounting, or other professional advice. Although the published material is intended to be accurate, neither we nor any other party will assume liability for loss or damage as a result of reliance on this material. Appropriate legal or accounting advice or other expert assistance should be sought from a competent professional.

Can Other Landlords Call You for Information?

Remember, if you want other members to be able to get your phone number to ask questions about your previous tenants for screening purposes, please let the office staff know that we have your permission to release your phone number. We cannot release any information on a member without permission. In order to create a more collaborative association, it is helpful if many of our members are willing to be accessible. After all, it takes all of us working together to be successful!

Call the office today at 814.866.7414 to give us approval to release your phone number to fellow landlords!

ERIE—819-21 Cherry St. Brick 2-3 BDRM New roof ‘14, vinyl windows, glass block in divided bsmt w/hookups, 2-100amp breakers. 1.5 car garage , 2 car parking pad, updated KIT. 1st fl. wood floors, open porch. 2nd fl, enclosed sunroom. Storage ea. unit. Realtor owned $92,500. Tina 724-766-9069

ERIE—West 26th St. 1st Floor Commercial, 2nd floor 5 apartments. Strong rental history. Long term tenants. Yearly net 20K. $129,900 Negotiable. 833.4536

ERIE —751 East 7th Street. 2 Unit Flat, each unit has 2 BD, LR, DR, KIT. Rent is $425 for each apt and both currently are rented. $31,500. Call 814.450.9991 ERIE— 115-117 West 24th Street. Two Family Flat. Each unit has 2 Bedrooms, Bath, LR, DR, and Kitchen. Front porch and 2 addl rooms on 3rd floor. Newer roof, windows, siding (2007). Lot 30 X 100. Currently occupied. $74,500. OBO Call 814.825.8506 or email: snd144@yahoo.com

SAEGERTOWN—Commercial Building, Main Street, 7 unit office space, 1 unit office or residential. $225,000. Call 814.720.7766

WESLEYVILLE—2052 Station Road. 2-unit flat. Downstairs has 2-3 BR, LR, DR, and KIT. Upstairs has 1-2 BR, LR, KIT. 3 car detached garage, off street parking. New roof, gutters, siding, and porches. Good rental history. $94,900. Call Cliff or Patty 814.898.0134

ERIE —633-637, 639 West 25th St, 3-unit, each unit has 2 BD, Kitchen, LR, full basements with washer/dryer hook-ups. Off street parking, fully rented with good income. $150,000. Call 814.602.5509

ERIE—2014 East 12th Street. 3 Bedroom, Good Condition. Fenced in yard, full basement. $27,000. Call 814.881-4500. Motivated seller/owner Retiring.

ERIE—22nd and Chestnut. Four one-bedroom apartments; tenants pay electric; fully rented. Asking $85,000. Call 727.392.1848

ERIE—1019 East Avenue. Two buildings, one has four one-bedroom apartments; fully rented. House behind this building, 2021 East Avenue; three bedroom; rented. Tenants pay utilities in both rentals. Asking $150,000 or Best Reasonable Offer Call 727.392.1848

ERIE—4505 Peach St. 3 unit Brick Building. Business/Residential $128,000. Call 814.864.4805 WESLEYVILLE—2222 Market Street. Modern Brick Duplex 2 Bedroom, 1.5 Bath in each unit. Call 814.864.4805

ERIE— 433 E. 12th St. 2 unit flat with driveway and 1.5 car block garage w/ new roof. 3 BR up, 4 BR down. Large LR. DR, & KIT in ea.. unit. Many updates: 100 amp panels, baths, most windows, main roof 3 yrs old. Easy to rent. $1,100/mo. income—room to increase. Asking $46,900. Call Tom, 814-836-5999

ERIE— 4029 Wayne St. Across from Mercyhurst University. Newer furnace, roof and carpeting. Kitchen appliances included in this 3 BDRM 2 Bath with off street parking. Just passed city rental inspection, ready for the upcoming school year $64,900. Call Fred 814.806.4969

CRANESVILLE— Four unit mobile home park. Municipal water and sewer. $49,900. 814.756.3576

ERIE— 640 East 11th St. Two unit. Each unit has approximately 1300sf, 3 bd, 1 bath. One unit has washer and dryer. One unit has washer and dryer hookup. All major work has been done: plumbing, electric, exterior, and insulated heating. $53,900. 814.460.7527

ERIE — 74 Orchard Street. Two unit unfurnished flat. Each unit has 2 BD, BA, LR, DR, and Kitchen with refrigerator and gas stove. W&D hookups. Second floor porch. 1 car garage and off street parking. $87,500. Call 814.825.8506

FOR SALE BY OWNER

ERIE— 725-727 East 6th St. Four unit unfurnished flats. Each with 2bd, bath, LR, DR, KIT with refrigerator and stove, WD hookups, new power service, separate utilities, 92% furnaces, off street parking and 4 garages. Asking $69,900. 814.464.3446

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ERIE—727 & 758 Rosedale Ave. 3 BD, 1 BA, full basement & attic. Rent $650. Sell $30,000. 814.520.3374

10

The Top Ten Pitfalls Landlords Face landlordacademy.com

I often talk a lot about what you should do in Property Management. Another way to look at this is by talking about what you should avoid. I’ve been in this business for a while now, and I’ve seen good owners/ landlords/property managers and I’ve seen bad ones. Even the good ones make mistakes but the key is learning from them. Here’s a list of what I consider the Top Ten Pitfalls Landlords Face: 1. Not continuing to become educated

2. Not following the proper Landlord Systems

3. Not following Fair Housing Laws as it applies to Landlords

4. Not understanding how to properly tenant screen

5. Not understanding the main components of a well written lease

6. Not performing a Rental Market Survey at minimum once every three months

7. Not staying on top of Maintenance issues

8. Not building the proper Team and Network infrastructure

9. Not enforcing your rules and regulations

10. Not treating the business of Landlording as a business.

Let’s look at each of these individually.

1. Education keeps you out of trouble in many ways; for example when I first started in the property management business I found out quickly that ignorance was costly. When you consider that not understanding how to properly deliver a tenant notice under the local or state laws can cost you when the tenant who you are trying to remove gets to stay an extra couple of days and sometimes weeks this all adds up. Each day the tenant stays without paying rent costs you. Most of the mistakes that I see landlords make over the years can be contributed to them not staying educated in an ever-changing profession.

2. Having proper Landlord operating systems, like systems in any other business, is extremely important. They are the backbone of your operation, allowing you to be efficient, productive and consistent. As a landlord you will need these operating systems through every landlording phase from dealing with a prospect tenant to moving out. You run your systems, and your systems will run your business. 3. Many landlord lawsuits are a result of a Fair Housing violation by the landlord and the crazy thing is landlords don’t even know they are violating these laws. Fair Housing is a federal law you must comply with and violations can be costly. We will talk more about this subject more in our blogs to make sure you are equipped to comply with the Fair Housing Act

4. Tenant screening is one of the most important process in the landlord business and is one of the most overlooked or skipped processes. The most common mistake I see made is to move someone into a rental because you needed to fill a vacancy. You either have to evict the tenant a few months later because you chose to overlook issues on the prospective tenant’s application or deal with other issues. Not properly screening tenants always ends up costing the landlord more money in the long run. When you factor in the eviction fees as well as the fees associated with getting the rental re-rented far out exceed the cost of allowing the unit to stay vacant for an extra month. Trust me, you soon learn that it is far easier to stick to your qualifying criteria and waiting to get a good tenant in the rental versus moving someone in just to fill a vacancy.

5. Your lease is the first major line of defense. It pains me to see investors work so hard to purchase their first rental investment run only to then watch the investment’s wheels fall off soon after taking over the property. If you have a very small child who needs to still sit in a car seat, and I told you that the car seat that you have was recalled, I know that you would get rid of the seat and get a new one, one that would protect the child. The same thing holds true with an investment property. Why would you trust your most valuable investment to a poorly written lease? Your investment is as useless as a castle with broken down walls. Your lease is the very first line of defense. It is the contract that binds you and the tenant spelling out all the rules and regulations as well as clearly spelling out the terms of that agreement.

6. Rental Market Surveys are probably the single most important area an investor needs to have a strong grasp of. This is where a lot of investors make their first costly mistake. If rental income makes up 99% of Net Operating Income that a rental property can produce, which you will learn about in depth in our Property Management Business Development course, then you as an investor must do your homework to make sure you are charging the right rent amount. If you are undercharging, you are just throwing money away. A great analyzation tool I use to keep my rent on target is Property REI. (Get a 10% discount off the software with promo code TLPMA) Continued on Page 11

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Continued from page 10

7. Maintenance issues: When it comes to maintenance the old saying “an ounce of prevention is worth more than a pound of cure” holds true. When it comes to owning investment property it helps to be very proactive with maintenance. Perform routine maintenance checks on your rental units. Most investors/ landlords pay attention to the building only when there is a problem like a leaky faucet or a toilet that is not flushing correctly. Being proactive and addressing these items when they are an acorn and not an oak tree will help maximize income and minimize expense.

8. Not building the proper team and network infrastructure: A wise man once told me that “If you’re the smartest person on your team then your team is in trouble.” In real estate we talk a lot about leveraging, and most of us think of leveraging as a financial term but it doesn’t just apply to financing. You have to learn to leverage relationships that you develop. I see so many would be investors and would be entrepreneurs stop short of their goals because of their lack of understanding of how to properly leverage relationships. You will always be just one contact person away from your goals. Understand that someone close to you may be holding the key that will unlock the door to your success! I will stress the importance of team again and again in my posts. Remember, if you want to go fast, go alone. If you want to go far, go with others.

9. Enforcing your rules and regulations: As a landlord performing day to day operations this should be your call to arms. Where a lot of landlords make critical mistakes is when they allow the tenants to dictate the business relationship. Remember this is a business; there is no place for weakness. You must be professional and you must also stay in control of the tenant relationship as well as your property. Routinely ask yourself if your are you running the property or is the property running you? Stay in control.

10. Not treating the business of landlording as a business: This is a business, more importantly it’s your business and it should be treated like a business. You wouldn’t show up late for work at someone else’s business or miss deadlines. You wouldn’t throw away someone else’s money by not reducing expenses. Why would you do anything less for your own business, the one that can provide you long-term wealth and financial freedom?

I’ve shared with you some of the keys, both to bettering myself and to guiding my business, that guide me in any market and under any conditions. Part of the key to my success is that I’ve always followed these principles no matter how down on my luck I was, or sometimes even more tempting, no matter how much money someone offered me. If a person is not guided by wisdom or principles, then I rather not waste time with them. I know in the long run I will save myself major headaches down the road.

Visit us today at

www.AptAssoc.com

To advertise your available rentals

for free!

Also, download and print forms on the website.

Call us to Learn the 4 Mistakes Landlords

make with their carpet and how they are

throwing away a lot of money!

The call is free, the information is PRICELESS!

Really Clean Floors

814-273-0888 www.reallycleanfloors.com

The Association staff will upload pictures to the website for members who do not have internet access. The cost is $5. Your ads will attract more prospective tenants when they have pictures to look at while apartment shopping.

Call the office for details 866.7414

Coldwell Banker Select, Realtors Commercial Division 814-833-3331

REDUCED—1129 WEST 8th ST—2 unit. 3,640 SF. Lots of character. Needs some “TLC”, priced accordingly. Off street parking. Separate water meters. Fully occupied. (43543) $60,000. Pat Grab, 450-8685 or Bill Bucceri, CCIM, SIOR, 882-6781

262 WEST 21st ST—4 occupied units. 2,632 SF. Off street parking & detached garage. (44924) $92,000. Tom NeCastro, 881-1186

319 WEST 5th ST— 4,028 SF. Four unit downtown, near Gannon University. Separate gas and electric. Great investment property. (46838) $150,000. Cherie Bishop, 806-4571

419 DUNN BLVD —2,024 SF. Fully occupied, well maintained brick flat. Newer carpeting, freshly painted, newer roof, plumbing, electrical boxes. Original hardwood. (45147) $49,700 Debby Fries, 440-7085

515 PARK WAY Dr—2,200 SF. 2 unit, 3 story. Located on quiet residential street. Gorgeous woodwork. Split basement with separate laundry for each unit, washer & dryer included. Upgraded electric. All appliances included. (44890) Rick Michaelson 397-4290

New UPDATED LEASE as of

February 2015!

The Apartment Association has updated our lease to include

important new clauses regarding things such as plumbing, pest

extermination, and carbon monoxide detectors!

You may purchase the updated lease in our office or download it

from our website.

It is imperative that owners request hard copies of credit reports. Credit reports can change daily, and there will never be another report exactly the same as the one the owner ran to determine acceptance of a tenant. Without a copy of the report, the owner cannot prove the financial reasons for acceptance or rejection if challenged in court.

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Happy Holidays

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David Holmes • Steven Gibson • Arthur and Helen Martinucci

Angela Brown • Brian Mills

Nicholas Eakin • John Noe • Mark Gerlach

Presque View Apartments • Curtis Bannister

William Murray Rentals • Phil Spotts • Tony Arnt

Robert Ferraris • Laura and Aric Way

Timothy DeCapua • Charles Herron • Morton Buss Jr

We look forward to seeing each of you at our meetings and hope you will make many new friends. Please take advantage of the networking

opportunities before & after the meetings. You may learn something or teach something to someone.

WELC

OM

E

NEW

M

EM

BER

S

The National Real Estate Investors Association teamed up with The Home Depot to offer all of its members a Material Purchase Rebate Incentive Program. This Program is available to all members and offers unbeatable Volume Pricing. This amazing benefit is designed to offer real estate investors and contractors the lowest price possible on job lot quantities. In most cases, a minimum order threshold of only $2,500 is required. Currently, the average savings through volume pricing exceeds 10% nationwide.

Simple quotes can be returned within 24-48 hours and Contractor Services associates can help you compile and submit your bids. The Home Depot now also provides National REIA members commercial credit/financing services,

direct to jobsite delivery and ‘will call’ pick-up options! Whatever you’re looking for—lumber, building supplies, plumbing, electrical or hardware items—your order of $2,500 or more may be eligible for volume pricing.

WHAT ARE YOU WAITING FOR?

SUBMIT YOUR QUOTE AT THE PRO BID ROOM TODAY!

VIDEO RECORDING AND PICTURES CAN REDUCE DISPUTES

Pictures speak a thousand words!

Reduce disputes with tenants by video recording or photographing the unit’s condition before move-in and after move-out. If you do this when the unit is vacant, the tenant cannot claim his or her privacy was invaded.

When move-out is completed, repeat the process again and obtain evidence of any damage that occurred during the occupancy of the affected tenant.

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Don’t forget that every property that was built prior to 1978 MUST disclose that it may contain lead paint. Every new tenant must be given the lead paint booklet and must sign the lead disclosure form. That’s the law! You must keep

your signed lead disclosure forms and leases for a minimum of 5 years. You can purchase these forms at the office or download them from our web site.

Landlords of the Apartment Association will comply with all provisions of the (Fair Credit Reporting Act). The information that is requested is for the landlord’s exclusive use. The landlord certifies that inquiries will be made ONLY for permissible purpose, namely: in connection with credit transaction involving the extension of credit to, or review of collection of an account of the consumer. The law prohibits the landlord from providing a copy of the report to the applicant.

Landlords are FORBIDDEN to obtain reports on themselves, associates, or any other person except in the exercise of their official duties. Any person who knowingly and willingly obtains information on a consumer from a consumer reporting agency under false pretenses shall be fined $5,000 or imprisoned not more than one year or both.

CREDIT REPORTING PROCEDURES When obtaining a credit report on an individual, you must have a signed Apartment Association Rental Application with the following information:

First & Last Name Current address; including street with number, city, state and ZIP CODE Previous address; if above address is less than 1 year Social Security Number Date of Birth Signature giving permission to run their report

When a credit report is run in our office, we will automatically check to see if a Landlord/Tenant complaint has been filed in PA on that person at no additional cost to you. If you prefer only a Landlord/Tenant Complaint check and no credit report, then there is a charge for the L/T check.

Funds may be placed on account in order for you to run credit reports. This will allow you to fax or scan and email the rental application to the office and it will be returned to you by fax or email. The office fax number is 814-866-2732 and our email address is

office@aptassoc.com.

EVICTION SCHEDULE UNDER ACT 36

This schedule is for the best case scenario, if using the Apartment Association lease or a lease that allows a 5-day notice

Day (1) Rental payment due

Day (2) For unpaid rent must give a 5 day notice

Day (8) File landlord/tenant complaint at District Justice Office

Day (15) Scheduled hearing to take place and judgment given. A decision must be given within 3 days of hearing

Day (26) Order of Possession can be requested 11th day after judgment. The Order of Possession must be served within 48 hours

Day (39) The eviction takes place around the 11th day after service of the Order of Possession.

FOR YOUR CONVENIENCE…

Credit reports can be ordered by any member who has been credentialed and has money on account or wishes to use a credit card. Simply mail, fax or email the signed rental application to the office. It will be completed and returned per your request. Forms may also be ordered by telephone, fax, or mail if the member has money on account or wishes to use a credit card. Postage will be added to the cost for any mailings to a member.

Credentialing As you know, each of our members who plan to continue to run credit reports through our organization must be credentialed.

You will need to pay your credentialing fee, turn in all necessary documents, and pass your inspection before we will be able to process any credit reports for you. This applies to new members as well as existing members. The whole process of being inspected and approved could take about 2 weeks.

If you move your office, you will have to be re-inspected. Contact the office with your new office address. Re-inspection fee is $40.00.

The office staff is available to answer any questions that you have to help you understand the process and the documentation that is required. Do not hesitate to call the office at 814.866.7414 with any questions.

SAVE YOUR RENTAL APPLICATIONS

All rental applications used as authorization to run a credit report must be stored in a secure place for at least five years.

Also, remember that credit reports can change daily, and there will never be another report exactly the same as the one the owner used to determine acceptance or rejection of a tenant. Without a copy of the report on file, the owner cannot prove the financial reasons for acceptance or rejection if challenged in court.

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Happy Thanksgiving

1127 West 38th Street Erie, PA 16508

Address Service Requested

APARTMENT ASSOCIATION DINNER MEETING

SOMETIMES THE BEST DEAL IS THE ONE YOU DON’T MAKE

Thursday November 19, 2015

Nunzi’s Restaurant

2330 East 38th Street, Erie, PA

Cost: $15 per person

Networking at 6:30pm/Dinner at 7:00pm

Name(s) ________________________________________________________________

Phone __________________ # Attending ________ Amount Enclosed ______________

Reservation deadline is November 16, 2015

Reservations are required. No refunds on cancellations after the reservation deadline date. Members are responsible for the bill on all reservations made and

NOT cancelled prior to the reservation deadline date.