ISSUE 3

RPM Installs Free

Smoke AlarmsBy Josh Kattenberg

Derek, Dan, and I spent a Saturday in November helping the American Red Cross install smoke alarms in homes in the Whittier Neighborhood. Statistics show that as many as 62% of all home fire related deaths result from non-working or missing smoke alarms. Tony Burke, the American Red Cross representative said that 9 people died in Sioux Falls last year as a result of not having a working smoke alarm. We were set up with a team that included Fire Captain Chuck Smith, and RE/MAX realtor Leon Waldschmidt. As we made our way through our assigned neighborhood, rousing residents to greet the frigid morning to ask them if they had a working smoke alarm, we were met with a mixed response. Many either were not home or didn’t answer the door. Some were suspicious of us and didn’t want to talk. In one case, the resident admitted that she didn’t have a smoke alarm and no, she didn’t want one. She thought she had enough protection with a fire extinguisher! However, for other residents, we found quite a few smoke alarms with dead or missing batteries, which we replaced for free. And in some homes, we found no working smoke alarm at all. Perhaps the worst offenders were rental properties. Landlords need to make sure that there are working smoke alarms in

their properties. This is one of the reasons Real Property Management conducts property assessments once a quarter to check smoke alarms.

In addition to placing smoke alarms, the American Red Cross had us ask questions of the residents about general disaster preparedness and give them information on how they can build a 72hr emergency kit including food, water, weather radio, etc. In addition, our team included Levi, a pharmacy student. Levi and I provided residents a free blood pressure checks and instructions to see their doctor if the blood pressure was outside the normal range. We even got a bit of TV time! http://tinyurl.com/nrnx5qc You can see

Derek on KELO carrying the ladder and I have the blue EMT bag over my shoulder. Hopefully our effort will make a difference

if a fire breaks out. Remember to check your own smoke alarms in order to keep you and your family safe.

IN THIS ISSUERPM INSTALLS FREE SMOKE ALARMS

PAGE 2

AFTER THE SMOKE CLEARS

PAGE 3

MEET THE LEADERS OF GROWING RESILIENT SIOUX FALLS

ALL IN A DAY’S WORK Hidden DangersLEASES SIGNED LAST MONTH

PAGE 4

ARE YOU A REAL ESTATE PROFESSIONAL

PAGE 5

ABANDONED PROPERTY

PAGE 6

EMPLOYEE SPOTLIGHT In the Life of a Dance Mom

PAGE 7

PEOPLE AND PLACES SPOTLIGHT

PAGE 8

NEW RPM PROPERTIES

IMPORTANT RPM DATES

After the Smoke ClearsBy Joel ChristensenAfter a home or business fire, the first priority is to account for the safety and well-being of those in and around the structure. Once that job is complete, peoples’ thoughts often turn to the work of cleanup and restoration that lies ahead. While the

following ten tips are not designed to complete the entire job, they are useful, safe and psychologically empowering steps a home or business owner can take to safeguard and minimize damage to their property while restoration professionals are engaged.

The DO’s home and business owners can follow:

� Inventory home or business Contents – After a fire, it’s important to begin an informal inventory of your contents. Note the item with a photo, item description and any damage sustained. Providing receipts for big-tickets items is often very helpful.

� Open windows and circulate air (if weather permits) – If possible, use fans to help circulate and air out the structure and contents. Do NOT use the HVAC system.

� Empty refrigerators and freezers to another location (if electricity is off) – Otherwise, keep refrigerator and freezer doors closed as much as possible to keep temperatures cold.

� Relocate pets to a clean environment – Birds are especially vulnerable to very small quantities of gas and residue (this is the reason canaries were used in mines to detect lethal underground gases).

The DO NOT’s in a fire and smoke damage situation:

� Attempt to wipe or wash walls, ceilings and other absorbent surfaces – Well intended, but ill-advised cleaning efforts can turn certain stains permanent and damage some items beyond repair.

� Use upholstered furniture – Use may help set the odor, making it more difficult to remove. Specialty procedures and products are required to actually break the chains binding smoke molecules and eliminate the odor.

� Prepare or consume food (including canned goods) subjected to excessive heat – Canned or preserved food may look safe from the outside, but inside may harbor growing bacteria that were activated by the heat.

� Use stereos, TVs, computers or other electrical appliances until cleaned and checked – Electronics often corrode quickly after fire and smoke exposure.

Due to the delicate nature of the internal components, cleaning costs may be prohibitive, plus warranties are typically voided.

� Send smoke-exposed garments and linens to the dry cleaner – Smoked garments and linens require special care. If put in a washing machine or sent to an ordinary dry cleaner, smoke odors can be permanently set.

� Turn on heating/air conditioning systems – As the lungs of a home or business, the HVAC system and ducts will absorb smoke and soot residues from the fire. To use it beforehand could lead to system damage and the further spread of smoke residues.

2

LEASES

BrBriai rwwoodd AvAve.e. S Sioiouxux FFalallsls

90tht SStt SiSiououx x FaFalllss

Sun Vallley Placece, SiS ououx x FaFalllss

Larch AvAvene ue, Sioux x FaFalllls

Perry Lane, Harrrrisbub rgg

Deewbwberry Sioux FFala lss

MaMainin A Avev nun e,e S Sioiouxux FFalalls

9t9th h StStreeete , Siiooux Faallllss

WaW ltlts s AvAve, SSioiouxux F Falallsls

4949thh Strt eet, SiSiouux x FaFallllss

SuSummmmitit A Avenunue, S Sioiouxux FFalallsls

ClCliffff AAveve, , Siououx Falll ss

NyNye e StStrereetet, SiSiououx x FaFallllss

43433rdrd SSt t Siouux x Fallllss

4545thth SStrtreeeet,t, Siooux Falllsls

BaBailileyey SSt SiS ouux Fallllss

1616thth S Strtreeet, SSioux Falllsls

4343rdrd S St,t, Siouux FaF lls

PoPondndererossa DrDrive, SSioioux FFala lsl

93rd SSt, Sioux Fallsls

MeM sa Pass, Sioux Fala lss

Bailey St t Siouux x Fallss

Leah Street,t SSioiouxu Fallsls

GlG enviewew RRd., Siiououx FaF lls

StSteppheens AAvevenuue,e, SSioouxux FFalallss

1555thth SStrtreeeet,t, Sioiouxux F Fala lss

1818th SStrreeeet,t, S Sioiouxux FFalallsls

Roseecrc est CoCourt,t, SSioiouxux FFala lss

4343rdrd S Strtreeeet, SSioiouxux Falallsls

27271s1st t StStrereetet, , HaHarrrrisisbuburgrg

3333rdrd S Strtreeeet,t, SSioiouxux FFalallsls

3030thth S Strt eeeet,t SSiouxux Falallsls

ShSherermaman n AvAvennueue, , SiSiououx FaFallls

ALL IN A DAY’S WORK:

Hidden DangersBy Derek Kattenberg

There aren’t too many things that will keep me lying awake at night but I recently found something that will. In a property we own the electric bill seemed a bit high for a couple months. So we had the local electric company come out and do a few tests. When they got to the wall A/C unit and unplugged the outlet they found a burned and crispy outlet and plug.

The A/C unit motor was test-ed and found to be in per-fect operating condition. The electrician determined the problem was strictly a worn out old outlet which wasn’t making a good connection.

That’s when I started think-ing, who unplugs their fridge, freezer, dryer or A/C unit to check if the plug is still in good shape? How often should you unplug you appliances and check the outlet? Would this burn down the house or just blow a breaker? What if a fam-ily was sleeping in this house and a fire started?

We live in a dangerous world but some of the greatest dan-gers are unseen. We need to use the protection available to us at all times.

Do you have working smoke alarms in all the bedrooms of your house? The suggested smoke alarm place-ment according to The National Association of State Fire Marshals (NASFM) is one per bedroom, one outside of the bedrooms close enough to be heard through the doors and a minimum of one per level. This means on a standard 4-bedroom/2-bath split level home you would have a minimum of six alarms and as many as eight.

Have you tested your smoke alarms recently? Most manufactures state you should test your smoke alarms weekly. The NASFM suggested testing alarms once a month and having it on a schedule say the first Saturday of each month so you don’t forget. Also most manufactures suggest replacing any alarm nearing 10 years old.

The National Fire Protection Association states that people have nearly a 50% better chance of surviving a fire if their home has the recommended number of smoke alarms.

Protect yourself, protect your tenant and protect your investment.

3

Meet the Leaders of Growing Resilient Sioux FallsBy Josh Kattenberg

During the Growing Resilient Sioux Falls project, I had the opportunity to meet Reagan Smith (left) and Tony Burk (right). Reagan currently serves as the Emergency Manager for the City of the Sioux Falls. In

addition to helping the American Red Cross coordinated their efforts to put smoke alarms in homes without them, he is responsible for things such as testing the tornado sirens, updating the city’s Emergency Operations Manual, coordinating the city’s response to flooding, or the ice storm this past spring, and even helping neighboring cities in crisis. For example, he traveled to Rapid City to help with the major snow storm this fall that killed so many cattle in western South Dakota.

Tony Burk has worked for the American Red Cross since 2012 developing community relations and disaster oversight for the areas

he serves. He was instrumental in setting up and leading the Growing Resilient Sioux Falls project on November 23, 2013 in the Whittier Neighborhood to place 10 year smoke detectors in homes without them and seeking to educate residents on disaster preparedness. Before his work with the Red Cross he served as a fire fighter for 11 years and worked as the Burn Coordinator of the IAFF Burn Foundation, during which time he was instrumental in rolling out the National Scald Prevention Campaign. He also worked to prevent fire, increase burn awareness and burn research, and helped improve the quality of life for burn survivors.

Are You a Real Estate Professional?By Eric Maas

In today’s tax climate there are a lot of things to consider when owning and managing real estate. One of those things is the IRS classification of “Real Estate Professional”. In this article I will give some insight as to the qualifications needed for real estate professional status as well as the benefits and downsides of that tax classification.

First, a background on the nature of rental real estate for tax purposes. Generally speaking, the rental of real estate is treated as a passive activity. Passive activities are unique in that the losses generated from a passive activity generally can only be used to offset income from other passive activities. So, for example, if you rented out a commercial building and sustained losses for 2013, you might not be able to deduct those losses in 2013 unless you had other passive income to offset them. However, if you were not able to deduct the losses they would carry forward until you had passive income to offset them or until you disposed of the property. One exception to this passive activity rule should be noted. You can potentially deduct up to $25,000 of rental real estate losses in a given year if your adjusted gross income is less than

$100,000 and you actively participate in the rental activity.

If you are treated as a real estate professional, you are able to treat these otherwise passive rental real estate activities as non-passive. Losses from these activities could then be used to offset wages, interest, and other non-passive income. This treatment is only available to individuals or closely held c-corporations who materially participate in the rental real estate activity. An individual is an eligible tax payer if:

1. More than 50% of personal services performed by the tax payer in all trades or businesses during the year are performed in real property trades or businesses in which the tax payer material participates AND

2. The taxpayer performs more than 750 hours of service during the tax year in real property trades or businesses in which the taxpayer materially participates. This criteria requires performance of actual services – it is not enough to be considered “on call” or “willing to work.”

Given those criteria, if you have a full time job outside of real estate, it would be very difficult to be classified as a real estate professional because it would be tough to argue that more than 50% of your time is spent with real estate. Also, if you have multiple rental real estate activities/properties, it would likely be necessary to elect to group the activities as one in order to meet the 750 hour rule.

The implementation of the Affordable Care Act has made this classification even more important for some tax payers. Included in the Affordable Care Act is a new 3.8%

tax on investment income for those single filers with over $200,000 of income and married filing joint of over $250,000 of income. The law includes all passive income as investment income which could subject your rental activities to the additional tax. If you are considered a real estate professional, the income from the activities would not be subject to the tax.

There can also be a downside to the real estate professional classification. If your activities from rental real estate generate income, and you have other passive activities that are generating losses, your real estate activities cannot be used to offset those losses. Also, if you have suspended passive losses from your real estate activities before you grouped them to become a real estate professional, you will not be able to use those losses to offset future income from the activity. Those losses can then only be used when the entire real estate group is disposed of.

In summary, taxpayers involved in real estate should consider the benefits and disadvantages of being classified as a real estate professional. If they feel as though the classification would be beneficial they should evaluate whether or not they could structure their activities to qualify for the status. As with most tax topics, there are a number of other technical tax law items that may come into play. Taxpayers should consult with their CPA to determine the best strategy for them.

LEASE

Park Dr Sioux Falls

Larch Ave Sioux Falls

Larch Ave Sioux Falls

6th St Sioux Falls

22nd St. Sioux Falls

4th St. Crooks, SD

Alicia Pl. Sioux Falls

4th St. Crooks, SD

Williams Ave Sioux Falls

Walts Ave. Sioux Falls

Shields Ave Sioux Falls

6th St Sioux Falls

Hillview Rd. Sioux Falls

Cedar St. Brandon

Mandy Ave. Sioux Falls

Bailey St Sioux Falls

Walts Sioux Falls

Lorne Lane, Sioux Falls

51st St. Sioux Falls

43rd St Sioux Falls

4th St. Crooks, SD

4th St. Crooks, SD 4

ABANDONED PROPERTYBy J. Vincent Jones / Woods, Fuller, Shultz & Smith P.C.

Landlords commonly ask, “What happens to property a tenant leaves behind after they move out?” South Dakota has two statutes that deal specifically with this situation.

The first, SDCL § 43-32-25, deems abandoned property less than five hundred dollars in value and left for ten or more days in the leased premises. This statute provides:

The property of a lessee, the total reasonable value of which does not exceed five hundred dollars, left on leased residential premises by the lessee for ten days after the lessee has quit the premises, is presumed to have been abandoned by the tenant and the lessor of the residential premises may dispose of the abandoned property.

The second, SDCL § 43-32-26 concerns property valued over five hundred dollars left in the leased premises. This statute provides:

The property of a lessee, of a total reasonable value exceeding five hundred dollars, left on leased residential premises by the lessee after the lessee has quit the premises, shall be stored by the lessor. The lessor shall have a lien on the property to the extent of the costs of handling and storing the property. After storing the property for thirty days or

more the lessor may treat the property as abandoned and dispose of it.

These statutes provide guidance on how to deal with property left behind, but a couple of issues are commonly raised. First, landlords often want to know how to decide whether property is worth more or less than five hundred dollars. The practical answer is that landlords simply have to exercise logic, reason, and caution. What is left behind often seems like junk, but one man’s trash is another man’s treasure. If there is any chance the total value of the property left on premises is even close to five hundred dollars, the conservative approach is to store it for 30 days pursuant to SDCL § 43-32-26.

Another issue that often arises is how to store the property. For property worth more than five hundred dollars, SDCL § 43-32-26 does not require the landlord to store the property at the leased premises during the 30-day storage period. It simply provides the property “shall be stored by the lessor.” The landlord may choose to remove the property from the leased premises and store it at an off-site facility for the required 30 days. Often, this is an attractive alternative when the landlord has a new tenant lined up and ready to move in. For property worth less than five hundred dollars, the statute is less clear as to the landlord’s storage obligation. The landlord has no obligation to store the property at the leased premises, but there are circumstances where it is reasonable to do so. Bear in mind, a problem tenant may accuse the landlord of mishandling, misplacing or damaging some of the stored property, so it is always a good idea to document and photograph what property was left, removed, stored or discarded, and what condition it was in.

Sometimes it is unclear whether a tenant has vacated a property, or if they are just “gone for a while.” Usually, there are circumstances that give clues about the intent of the tenant. Did they remove any property at all?

Callie Library

4100 S. Carnegie Cir.

How to Calculate the Profitability of a Rental: We will learn about the 4 benefits of owning investment real estate (cash-flow, principal reduction, depreciation, and appreciation) and how to calculate them to determine the Return on Investment.

Real Estate Investment

Round Table

January 14 @ 5:30 p.m.

Where?

What?

Topic

When?

5

Did they leave the keys anywhere? Did they say anything to the neighbors about their intent? It is important to document facts that you can later use to show your actions were reasonable.

If you face any of these questions and wish to minimize your risk exposure, consider seeking legal advice, and always conduct yourself in a manner that you can defend as reasonable under the circumstances.

NOTICE: This article is intended to

provide only general information. It

does not represent a legal opinion or

advice regarding any particular case or

issue. Transmission of the information

is not intended to create, and receipt of

the information does not constitute, an

attorney-client relationship. For legal

advice on a specific matter, please seek

counsel.

6

No, I don’t have my own TV show, but as the mother of two blonde cuties, sometimes I think I could. My daughters, Natalie (age 8) and Courtney (age 5) keep me busy with school activities, camps, swimming lessons, t-ball, and most of all….dance.

From August to May, when I am not in the office at RPM Express, I spend most of my time dropping off and picking up the girls from dance practice, traveling to dance competitions, or doing hair the night before an event. You would think taking the girls to practice 2 to 3 times a week, spending hours on hair, putting on makeup for a three minute performance, or driving a carload of giggling girls to competitions throughout the area might drive a person crazy, but I actually look forward to it!

This year will be Natalie’s 4th year in a competition dance team with Dynamic Cheer & Dance in Brandon, SD. Her team, Mini Eclipse, memorizes three different routines - 1 jazz, 1 hip hop, and 1 pom, to perform during the winter/spring. Despite the early mornings and long drives to some of the competitions, she really loves getting out there to show off her moves with her

friends!

Courtney will begin her 1st year on a competition team, Twilights, this year. She has only been waiting three, very long years for this opportunity. Having to always ride along and sit in the stands with the “Dance Moms” can be a little boring and make for some very long days. Now, she finally gets to be just like her big sister. Although she only has one dance number to memorize she couldn’t be more excited for the year to begin.

Unlike the TV shows, there are many reasons why I absolutely love being a “Dance Mom.” First of all, I enjoy the “girl time” that I get when we spend the night out of town at for a competition. After all, it’s not every night that you get to sleep in a hotel and have a giant sleepover with a bunch of girls! I also know that they will grow up too fast, and I cherish the time that I get with them now, while I am still considered “cool”.

I also love being able to watch Natalie develop and grow and can’t wait to see Courtney do the same. Seeing Natalie work hard and build up confidence and pride in

herself, is really amazing and I am glad that dance, and Coach Ashley, have helped her with this. Watching your daughter’s face light up when she nails her heal stretch on stage after countless hours of practicing at nights…well it is truly indescribable.

As an added bonus, I have met some really great moms in the past three years. They are the ladies that I now call on for advice, share my joys and sorrows with, and get together with on a regular basis. I love being able to hang out with them and I feel very blessed to call them my friends.

But the best part of being a Dance Mom for me is being able to watch my both of my daughters establish some really great friendships that I truly believe will last a lifetime!

So if you are looking for me during the season, you can find me with all the other Dance Moms, proudly wearing “Dynamic purple”, black, and silver, cheering our girls on!

In the Life of a DANCE MOMBy Jackie Stewart

EMPLOYEE SPOTLIGHT

7

People and Places SpotlightBy Derek Kattenberg

Bryan Dodge, just the name brings a smile to my face. If you’ve heard Bryan speak you know exactly what I am talking about. “Say true!” And if you haven’t heard him speak you are thinking I am crazy right now. “Say true!”

As business men and women we have to stay focused and driven to make it. We run full blast all day long and at the end of the day what energy are we taking home? How often do we take a step back and remind ourselves why we are doing what we do? Are we chasing our career for the career alone or is our career supposed

to provide for the life we want to live?

Bryan has a fun analogy that I think most of us can relate to. We get home at the end of a long day and we are tired. We have no energy left to cook, clean or spend quality time with the family. But what happens when your phone rings and a good friend needs help? We suddenly have the energy to jump off our chair and run.

We proved this analogy a few months back. Laura and I moved to an acreage near Brandon. We moved in stages with her and I doing most of the work. One Saturday evening though we had an opportunity to take a large load and knew we needed some help. A few phone calls later and we had family, friends and neighbors all pitching in. Some of them still had their own chores to do when they got home. Others had already called it a week and were relaxing in front of their TV. Yet when everyone showed up we had a great time and the energy was flowing. I can guarantee most of them would have

put off hanging a picture for their wife if she had asked that night but they came running when a friend was in need.

Bryan’s line is “Bring energy home”. Did you know you can get fired at home? How many people get a divorce because they “fell out of love”? What made them “fall in love”? We have to continue to look for and acknowledge the good in people. I know I am happy my wife does that for me.

Laura, Josh and I had the pleasure of visiting with Bryan and hearing him speak last week. He came to Sioux Falls for an SME event and knocked it out of the park. If you ever have an opportunity to hear him speak you won’t regret it.

Bryan is a national speaker doing over 200 appearances annually. He has a radio show and is also in the process of having his own television show. He has books and multiple training systems to

help with memory, sales and leadership. www.BryanDodge.com

Owner Referral CouponRefer a new owner to Real Property Management and receive

1 MONTH management fee for

Existing RPM Owner (Name; Number & Address):

___________________________________________________

___________________________________________________

___________________________________________________Referred Owner (Name; Number & Address):

___________________________________________________

___________________________________________________

___________________________________________________

*New owner must sign a Management Agreement with RPM. Contact Derek Kattenberg at 605-274-7373 for details. Referral coupon must be filled out and presented to RPM.

Who do I contact for... Jackie Stewart - jackie@expressrpm.com

(605) 274-7373 #103

Derek Kattenberg - derek@expressrpm.com

(605) 274-7373 #102

Dan Soper - dan@expressrpm.com

(605) 274-7373 #104

Accounting & Leasing Questions

Sales

Main-tenance

Questions

6009 S. Sharon Ave. Ste. 103

Sioux Falls, SD 57108

(605) 274-7373

www.expressrpm.com

FREE* NEW

PROPERTIESPeerrr y Lane, Harrisburg

Main Avenue, Sioux Falls

Ponderosa Drive, Sioux Falls

49499ththtt SStrtreet,t, SiSioux FaF lls

4545thth S Strtreeeet,t,, S Sioiouxux F Falallsls

16166thth S SStrtreeeeet,t,t SSSioiouxuxxux F FFalallsls

RooR seeccccrcreessst t CoC urt, SSiioiooi uuuxxu FFallallsllsl

StStepe hhehehennnnss AAAvevvv nunuuuee ee SiiiSiS oouo x FaFaaaalllls

1818thh SSSStrtrtrreeeeeeet SSiououuuxx x FaFaaF lllllls

30300th SSSStrtrrtreeeee t,t,,,t S Sioooouxuxxx FFFFallllls

1515thh SSSSStrrrreeeeeeet,t,,t, SS S Sioioioiouxxxx FFFFallls

33333 rd SSSSSStrtrtrtreeeeeeet,t,t,t, S SSSSioioioioi uxuxxx FFFFalalllls

BrBBBriaiaarwrwrwrwrwwrwrwrwr ooooooodd ddd dd AAvAAAvAAvenenenenueeueu ,, ,, SSiioux x FaFaFF lllsss

27272727272771s1s1s1sstt tt StStS rererereetetetetet, HHaHaHH rrrrisiiisbbubburgrg

ShShShShShShS erererrererrmamamamamamm nnnn AvAvvenenueue S SSiouxux FFFalls

BaBBaBaBaBaBanenenenen bebebebebebeberrrrrrrry y y y AvAvAvAveneenenueueueue,,, SiSiououux x FaFallls

BaaB neneneneen bebebebebeberrrrrrrrryyyy y y y AvAvAvAvAveennueu , SiS ououuux x xx FaFaFaFallllss

Alexe andrddra aaa StStStStrrereet, Siouo x x xx FaFaFaFalll s

January 10

Post Owner Draws

January 15

Owner Draws Received

IMPORTANT

RPMDATES

January 14 @ 5:30 p.m..

Roundd Tablle

Januaary 31

1099’s and 2013 yeear ennd statementts