March 2015

Inside the Newsletter

Page 2 | Spring Cleaning and

Maintenance for

Property Owners

Page 3 | April Workshops

Page 4 | Conquer the Paper

Piles

Page 7 | “We are Not a Bank”

Page 9 | For Sale by Owner

Page 10 | How to (More

Easily) Sell a

Rental Property

Page 13 | New Members

Page 14 | Help Prevent Scams

of Your Property

Back | Dinner Meeting

Cover

Insert | 2015 Awards Program

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 1,600 STRONG — REPRESENTING 19,900 RENTAL UNITS

Upcoming Meetings

April 23rd

Home Depot

President’s Message By Joel Miller

This month, some simple reminders…

•Use our website www.aptassoc.com

•Post your vacancies with lots of photos for FREE

•Print off forms

•Access past newsletters and reference materials

•Renew your membership online

•Attend monthly dinner meetings

•Refer new members and get a $10 credit added to your account at the office

•Require (or at least strongly encourage) your tenants to carry Renter’s Insurance

•Put in a real estate resume with the Association office if you would like to be on the

board. YOU DO NOT HAVE TO BE SUPER-EXPERIENCED IN REAL ESTATE

TO BE ON THE BOARD!

•Call past landlords on tenants’ applications

•Fill out the Home Depot form (available on our site or at the office) and start getting a

2% rebate on your purchases of $1250. or more every 6 months

•Use your National REIA card at Sherwin Williams for DEEP discounts

•Use the other National REIA discounts like at OfficeMax

•Sign up for a Landlord 101 class or one of our upcoming half-day seminars

Learn from Ten of the

Worst Landlord Mistakes

Do you ever wonder if you are the only one that makes landlord mistakes? Welcome to the club. You will find out that some landlords have made some real dandies. Jason Pero and Bob Sesler will share some of their worst mistakes for further discussion. The information being discussed will help you with getting good tenants, keeping good tenants, dealing with problem tenants, making good decisions, and managing your rentals. You will learn to avoid making these same mistakes. See you there!

Reservation deadline is March 23, 2015, Reservations are required and that form is on the back cover

Thursday, March 26, 2015 Hooch and Blotto’s 8071 Peach Street, Erie

UPDATED

LEASE

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.

Networking begins at 6:30pm Dinner at 7:00pm $15 per person

Page 2

814-434-2468

FREE ESTIMATES

PA# 080913 m328

Roofing Siding Windows Painting Apartment clean up Handyman services

No job is too small

Now offering

contracting services

WE ARE NOW OFFERING

SEWER & DRAIN CLEANING

DISCOUNT FOR APARTMENT

ASSOCIATION MEMEBERS

Property Management Tips: Spring Cleaning and Maintenance for Property Owners

by Tom Binga

Even though it may still be snowing where you live, it is time to begin thinking about and planning for summer. There is no better time to do so than the spring time! There are a few things that you can do as a property manager to prepare now for a smooth-running summer.

Renew Communication

Now is a great time to begin formulating a newsletter for your tenants that describes all of the things that you will be doing for them as well as what they can do to make their summers as cool and uneventful as possible. Communication is key to setting expectations about what your tenant is expected to do, so get that letter out there in the next couple of weeks. Tenants can help you help themselves by notifying you of any maintenance issues that may best be taken care of now rather than later. Things such as leaky faucets, stuck windows, and appliances that seem to be working a little less effectively than before are key items to look for.

Preventative Maintenance

Now is also a good time to replace the batteries in smoke detectors as well as carbon monoxide sensors (if needed). Of course, the spring is an ideal time to change HVAC filters—doing so now also gives you a great opportunity to verify that the air conditioning is working in each and every one of your rental units.

Continued on page 11

Page 3

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!

HAPPY SPRING March 20th

APRIL WORKSHOPS OFFERED

Real Estate Strategy Session:

So you want to purchase a rental house but you are not sure if it is a good idea or not. Using

the “IDEAL” method, this basic-level course will help students focus on the fundamentals of

real estate investment.

Upon completion each student will be equipped to identify investment objectives for

prospective investments. This one-morning workshop will be on Saturday, April 11, 2015,

from 9:00am to about 12:00pm. The investment in yourself will set you back only $29.00.

This is not a sales pitch for a course, but rather a real estate investment overview course.

Niche Investment Strategies Workshop:

Looking at expanding your rental holdings but not sure how is the best way to find your next

deal? The Apartment Association of Northwestern PA will be offering a single-afternoon

workshop outlining over forty different niche real estate investment opportunities for you to

explore. Each of these methods will be covered with a discussion on strengths, weaknesses,

opportunities and threats associated with each approach.

This intermediate-level workshop will be held on Saturday, April 11, 2015, from 1 PM until

all the topics are completed, roughly three hours. This workshop will be held at the

Apartment Association conference room and is limited to the first 10 students who sign up

and pay. This business investment will only cost your business $29.00, and learning to see

where opportunities exist is priceless. For additional information and to sign up using your

credit card, call the Association at (814) 866-7414.

Still not sure? Sign up for both morning and afternoon sessions for only $50 and save.

Page 4

CONQUER THE PAPER PILES

What documents to keep,

what you can toss, when. Consumer Reports Money Advisor

There are a lot of good reasons to have a plan for keeping track of your important papers. If you're meeting with a financial adviser or an attorney, it might take you an hour to prepare instead of a week. If there's a fire, flood, or theft, you'll be able to find essential documents without delay. If something happens to you, your loved ones will be able to readily locate your health-care power of attorney, insurance policies, medical records, and outstanding bills. Even on an everyday basis, good record-keeping makes it easier to pay bills on time, find receipts, and reduce tax-time anxiety.

Unfortunately, only 40 percent of Americans think they can find a document at a moment's notice, and only 49 percent can do so with a little looking, according to a recent poll by the Consumer Reports National Research Center. And although 89 percent said they were extremely to fairly organized when it comes to their financial paperwork, nearly one-quarter had either lost or forgotten about an important financial document. Worse, 16 percent had lost money or incurred a charge because of their poor organization of paperwork.

"It's amazing how much money disorganized people lose track of, and how much they waste on late fees and interest charges," says Stephanie Denton, a professional organizer and author of "The Organized Life: Secrets of an Expert Organizer" (North Light Books, 2006). "One time I found a check for $25,000 that some clients forgot to deposit."

If you're a married woman you're more likely to think you're on top of your financial record-keeping than your spouse is. Fifty-eight percent of the women surveyed said they had a better idea of where their most important documents were than their spouses did; only 30 percent of the married men thought they had a better idea. But some of the respondents might not be as on top of things as they think—5 percent admitted they had hidden accounts from a spouse or significant other.

The most surprising discovery from the survey may be this: 16 percent of the respondents said they actually liked organizing their financial records. People who were 65 and older were the most likely to enjoy it.

Even if you dread it, getting your financial papers in order helps lower stress in your life, says Peter Walsh, author of "Does This Clutter Make My Butt Look Fat?" (Simon & Schuster, 2008). All you have to know is how long to keep your records and where they should be stored.

Tax season is the perfect time to start tackling the paper piles, Denton says. The act of filing (or gathering your information for a tax preparer) forces you to become reacquainted with your finances. You can divide nearly all of your financial records into four categories: papers that you need to keep for the calendar year or less; ones that can be destroyed when you no longer own the items they cover; tax records, which you should save for seven years; and papers to keep indefinitely.

KEEP FOR A YEAR OR LESS

Denton suggests you begin your organizing by setting up a place you can keep your bills until you pay them. As soon as a bill comes in, for example, put it in a folder labeled "bills to pay." Then set an electronic calendar reminder for a time when you're going to sit down and pay them. Store the documents listed below in a file cabinet. You don't need to keep other bills.

If you don't pay your bills electronically, now may be a good time to set up online banking. "That way you can schedule your payments in advance, and even set up monthly bill payments for amounts that don't change, like your mortgage, so you won't be late," Denton says.

To help avoid identity theft, shred anything you plan to throw away that contains personal data. More than 50 percent of the people we surveyed said they put documents through a shredder before they trashed them. Look for a crosscut shredder rather than a strip one, which leaves long paper bands that could be reassembled.

Page 5

Documents that you have no long-term

need to keep include:

Bank records Keep deposit and ATM receipts until you reconcile them with your monthly statements. File your monthly checking and savings account statements. After you do your taxes, file any statements needed to prove deductions with your tax records; the rest can be shredded.

Credit card bills You don't need to keep them after you've checked and paid them, unless you need a bill to support a deduction you'll be taking on your taxes, such as for a charitable donation (in which case you'll need to file the bill with your current-year tax records). If an item you've charged is under warranty, keep the bill until the warranty expires. Staple the credit card bill to the warranty document and put it in a file with other warranties; you may need the bill as proof of purchase if the item needs repair.

Current-year tax records Keeping your records organized can save you headaches and money at tax time. Tax preparers might charge more if you give them a disorganized shoe box full of papers. Place documents you'll need for your next return in a file. If you need to save a lot of receipts and bills, use a standing accordion file.

Insurance policies Keep policies that you renew each year, such as those for your home, apartment, or car, until you get new policies, then shred the old ones.

Investment statements You can shred your monthly and quarterly statements from brokerage, 401(k), IRA, Keogh, and other investment accounts as new ones arrive. But hold on to annual statements until you sell the investments. You may want to have separate folders for traditional and Roth accounts to help you keep track of amounts that are deductible and non­deductible for tax purposes. Better yet, sign up for electronic statements if your financial institutions offer them.

Pay stubs Keep the calendar year's records until you reconcile them with your annual W-2 form, then shred them.

Receipts If you're not doing anything with your receipts—like tracking your spending, itemizing tax deductions, or using them to return purchases—you can get rid of most of those little scraps of paper immediately.

If you need to keep them on hand so you can verify

amounts against your credit card bills or bank statements, create a folder labeled "receipts" and keep it with your bills-to-pay folder. That way you'll have your receipts handy when you pay your credit card bills. If you think you might return something, ask the sales­person how long you have to decide, and jot down the date on your receipt.

KEEP FOR A LIMITED TIME Documents relating to investment purchases, loans, and other items that expire or are sold can be stored in an out-of-the way file cabinet. But try to go through them once a year and toss out papers as detailed below.

Household furnishings paperwork Keep receipts, warranties, and, while you're at it, instruction booklets for major appliances and electronics. You can get rid of a warranty when the period it covers has passed, and the rest of the material when you no longer own an item. Ditto for canceled receipts and bills for major purchases such as furniture.

Investment purchase confirmations You'll need these to establish your cost basis and holding period when you sell the investments. If this information appears on your annual statements, you can keep those instead. Store the records in your file cabinet until you sell the investments, at which time you should move the back-up records into that year's tax-return file.

Loan documents Keep closing documents for mortgage, vehicle, student, and other loans in a safe-deposit box. You can get rid of them after the loan is paid off.

Savings bonds Hold these in a secure place until you cash them in. Or you can convert them to electronic form using the Treasury's Smart Exchange program, at www.treasurydirect.gov Continue on page 6

Page 6

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

848 EAST 28th ST—2,024 SF, very clean 2 unit with beautiful oak woodwork. Major

items have been upgraded. Paved off-street parking. (38419) $59,500.

Mary Smrekar, 881-3676

439 WEST 8th ST—3,263 SF, 3 unit centrally located in downtown Erie. Close to

schools, business, entertainment, and stores. (40529) $84,900.

Tim Kuzma, 881-0546

962 BROWN AVE—2,760 SF priced to sell. First floor is a large storefront. Second

floor is a 2 bedroom apartment. (42267) $54,900. Pat Grab, 450-8685

1021 STATE ST—5,586 SF downtown former restaurant/bar fka Papa George’s with

equipment. Second floor is raw space with potential for expansion. (42051) $299,000.

Bill Bucceri, CCIM,SIOR, 882-6784 or Pat Grab, 450-8685.

941 WEST 10th ST—2,226 SF fully occupied 2 unit with off street parking. Updates

include 1st and 2nd floor furnaces, hot water tank, roof, and siding. Close to schools

and parks. Spacious, applianced, eat-in-kitchen. (38490) $74,900.

Jenn Hills, 572-0705.

Continued from page 5

Vehicle records Keep purchase receipts, titles, and registration information in a safe-deposit box as long as you own the car, boat, truck, or other vehicle. Store the maintenance and repair records in your home filing cabinet.

HOLD THESE FOR SEVEN YEARS This category includes personal federal and state tax returns and their supporting records. You should keep them because your returns can be randomly audited up to three years after the date you filed the return.

If you fail to report more than 25 percent of your gross income, the government has six years to collect the tax or start legal proceedings. You can be audited at any time if the IRS suspects you of fraud.

After seven years, you may want to keep just the tax returns if you'd like to track your income over the years. Keep tax records more than seven years old in your out-of-the-way file cabinet. Better yet, scan the returns into your computer and store them on a CD or external hard drive. Nearly half of the people in our survey said they kept both electronic and paper tax files, but only 3 percent stored their records only in electronic form.

DO NOT TOSS These are permanent members of your financial paperwork family, which you may need to retrieve occasionally. Essential records such as birth and death certificates, marriage licenses, divorce decrees, Social Security cards, and military discharge papers should be kept in a safe-deposit box.

Here are some other documents you should hold on to forever:

Defined-benefit plan documents Keep pension-plan documents from your current and former employers. Store them in your file cabinet.

Estate-planning documents Keep copies of wills, trusts, and powers of attorney in your safe-deposit box. You should also make sure your attorney and your executor have copies. It's also a good idea to give your primary-care physician and anyone named to make decisions on your behalf copies of your health-care proxy.

Life-insurance policies For permanent life insurance—policies that have a cash value or investment component—keep documents and a list of the companies that issued them and their phone numbers in your safe-deposit box. If you have a term life policy, hold the documents until the term is over, then toss them.

Safe-deposit box inventory Note the location of the box and your keys, and keep a list of what you have in it. Update the list once a year or as you add or remove documents. Keep the inventory list in your out-of-the way file cabinet. You should also keep photocopies at home of any documents you have stored in the box in case you need to refer to them.

Page 7

DO WE HAVE YOUR CURRENT E-MAIL ADDRESS?

If you have changed your e-mail address, don’t forget to notify the Apartment Association office. This will

avoid any disruption in service for downloading your forms or advertising your rental units on our

website. Also, we may need to contact our members via e-mail regarding upcoming meetings and

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

RESPONSE TO RESIDENT: "WE ARE NOT A BANK"

One property manager was sharing with me that she has several past-due residents, who are about to be evicted, were asking for more time to pay. They promised that a check (tax refund, payroll check, etc) will be coming in the next week or so. The manager wanted advice on how to respond. I suggested that she memorize the following words, and be ready to state them in a very business like, wish-I-could-help-you manner:

"“I wish that we could assist you in your situation. However, we are not a bank. We can not loan you the money you

need until a future date, which is what you are asking us to do. We do not have the money to loan. In fact, because of

unpaid rent payments, the management will have problems paying our own bills. So our only option, if someone is not

paying, is to move them out so we can get another resident in as quickly as possible who will pay. I would encourage

you to try and borrow money from someone to help you not lose your home and pay them back when you get the

money you are expecting. Let me know immediately if you find someone to help you save your home."

Page 8

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.

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.

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.

FICO Score

ON ALL CREDIT REPORTS

You receive a FICO credit score with each credit report that is run through the Apartment Association. The price of an individual credit report and PA landlord/tenant court check is $11.00, and the individual package (including a credit report, PA landlord/tenant court check and PA criminal check) is $13.00. Skip trace can be run for $5.00. This gives you the last 3 known mailing addresses.

Signed rental application is required for all reports.

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

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.

Page 9

ERIE— 18 North Park Row, 6th and State. Commercial

Building. 3 Businesses on the 1st floor, 2 apartments on the 2nd

floor, 2 apartments on the 3rd floor. Call Emmy 814.453.5823

FAIRVIEW— Unique 11-unit multi-family residential rental

property in prime location on W. Ridge Rd. Excellent rental history

(many long-term tenants) with stable cash flow. Approx. 2 acres

with private drive to newer units (5) in rear (2 have wood-burning

fireplaces and cathedral ceilings). Owner may carry part of

mortgage. Call 814.835.1396

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

ERIE— 2303/2305 Peach Street—Large duplex house, good

condition. One side has 3 BD other has 2 BD with potential for

third. LR, DR with eat-in KIT. Separate Utilities, street parking.

Recent updates: new carpet, paint, rubber roof in center. Asking

$79,900. Call Brad 814.881.3146

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.

$31,900. Call 814.450.9991

ERIE— 115-117 West 24th Street. Two unit unfurnished flat.

Each unit has 2 BD, BA, LR, DR, and KIT with refrig and gas stove.

W&D hookups. Off street parking. 2nd floor has deck and 2 addl

rooms on 3rd floor. Newer roof, windows, siding (2007) $82,500.

Call 814.825.8506

ERIE—451 East 3rd flat, each unit has 2BD numerous updates:

block windows, new windows, roof, high efficient furnaces, pvc,

copper, elec, H2O tanks, appliances, toilets, and cosmetics. Well

cared for, gross rent $950 and taxes under $1,000. Nice immediate

area on 3rd. $47,500 firm, call 812.9754. No land contract.

ERIE—1051 West 4th, 3-unit 1 2BD and 2 1BD. Nice spot,

numerous updates: elect, high efficient furnaces, windows, roof

(including new soffit fascia wood replacement), entry doors, toilets,

appliances, and all interior cosmetics. Gross rent $1,350. $69,900.

Call 812.9754 no land contract.

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—2925 Reed Street, investment property, 2 houses on one

parcel, approximately 1,500 sq ft per. Each with 3 bedrooms and 1

bath, off street parking, exceptional updates. Asking $99,900.

Call 814.602.4309

Erie—Several units available for sale in the city of Erie. 15K-30K.

Nice renovation project houses. Call Jeff at 814.873.6731

HAVE YOU ATTENDED

A DINNER MEETING LATELY?

Come early — Stay late!

It is your best opportunity to network with other landlords.

Everyone has questions. This is where you get them

answered!

VISIT OUR WEBSITE Print all our forms at no cost

Read current and past newsletters

Print or read Reference Material

List your property For Rent or

For Sale

Listing guidelines

Useful links to Rent-o-Meter, PROA,

Legal Encyclopedia for Landlords, Tenant Disputes, National Registered Sex Offenders, Lead Paint Websites,

and more!

Visit us today at

www.aptassoc.com

If you have a suggestion for

a guest speaker or topic that you

would like to hear about

at our meetings, call, fax

or email the office your idea.

Page 10

How to (More Easily) Sell a Rental Property

By Robert L. Cain

Several years ago, I was in the process of selling a single-family rental property and made the mistake of allowing the tenants to continue to live there while that was going on. I had offered to pay them five dollars for each showing if they would allow a showing without the 24-hours’ notice that state law called for, but they decided they didn’t want to. All they talked about was “this sale thing.” Obviously they were not happy.

It turned out that if they had okayed showings without 24-hours’ notice, they would have made something over $100. One tenant said, “If we had known so many people would look at it, we would have said it was okay to look at the house without so much notice.” Live and learn, kid. The property didn’t sell that time around and not until it was vacant.

Another time I accompanied a landlord to look at a possible rental property. The tenants insisted on being there. They wanted to be sure to point out to any possible buyer that the house had serious problems. They had even gone to the trouble of creating a leak in the ceiling that they apparently could make drip at will to show in how much disrepair the house was in.

Even if tenants are cooperative and they are the nicest and most considerate people you’d ever want to meet, they don’t have the same interest in seeing that their home gets sold as the landlord does for seeing that his investment property gets sold. They may be the best housekeepers in the world, but they won’t see the necessity of keeping the place shiny and bright every day just to encourage the sale. The yard won’t be as tidy as is needed. There could be clutter here and there. Their German Shepherd might “greet” everyone who tries to come through the door.

I know, it’s happened. Rental properties have been sold with tenants still living in them. Good for the tenants, and congratulations to the landlord. Often, though, tenants do things that will at least hinder the sale and at worst make it impossible. Mostly this has to do with single-family, duplexes, triplexes and such. Multi-unit apartment buildings are almost always sold “subject to interior inspection.”

Another drawback is that some real estate agents won’t show properties that are difficult to get into. If it needs 24- or 48-hours’ notice, forget it. If an appointment is required and the tenant isn’t reachable, forget it. What’s a landlord to do, then, to sell a property that at present has a tenant living in it? The obvious and best solution for a faster sales is terminating the tenancy, but that cuts into income requiring mortgage payments to come out of the landlord’s pocket. Never a good thing. Even so, that eliminates the problem of a tenant deliberately messing up the sale and makes it more likely the property will sell.

As an aside, in the past I have recommended letters from lawyers to recalcitrant tenants. If a tenant does something to indicate that the property has serious problems when, in fact, it doesn’t, that is both defamatory and restraining of trade. A letter from a lawyer advising a tenant of those facts and the possible financial consequences of their continuing to engage in defamatory and trade restraining activities might stop the problem.

The other end of the spectrum is to put in the listing, “Subject to interior inspection.” That will avoid dealing with tenants and give the seller the opportunity to go through the property to tidy up any issues before the “interior inspection.” That will eliminate many buyers because they want to see what they are getting before they agree to anything and tie up their assets waiting for the interior inspection and possibly miss out on another, better deal. Something that might add some security to the “interior inspection” clause is a home inspection done before the property goes on the market. That could be available for any possible buyer to examine. Assuming the inspection report is satisfactory, that could allay many of the fears a buyer would have.

Something else to include is an operating statement for the property. Assuming it shows an actual profit and maintenance up to date, that might allay many fears of an investor, less likely, though, for an owner occupant.

Regardless of how you proceed, tenant or no tenant, here are a few things to do to attract buyers who might offer something approaching full price:

•Fix up the yard.

Keep it mowed, keep the edges trimmed, and keep the shrubbery neat.

•Paint the front door. Painting the entire house would be

better, but at least paint the front door and make it shine. And that front door knob, polish it.

•Make sure the roof looks like it is in good repair. A

roof that looks like it is on its last shingle will sent prospective buyers speeding off in their cars.

•Have flyers in front of the property that prospective buyers can take with them. On those flyers, explain things

about the property that will encourage sales.

The key is, get it sold. We do what we have to do to turn the property. Marketing a vacant property

may end up being the best approach,

even if it means losing a couple of months’ rent.

Page 11

Continued from page 2

Stock Up On Sales

You may want to begin stocking up on critical supplies like A/C filters, light bulbs of various wattages and sizes, garbage disposals, various screws and fasteners, and other consumables like faucet aerators, water filters, shower heads, and water heater heating elements, if applicable.

Evaluate Workload

People tend to move most frequently during the spring and early summer months, so you will typically find yourself using a lot of materials and supplies during this time of year. You may also find that your preventive maintenance routine gets put on the back burner this time of year because of all the move-ins and move-outs.

Try to refrain from making that mistake. In fact, you may want to consider hiring some temporary staff, just to help keep up with all that will be going on in a few short weeks. Line up your vendors, too, so that they don’t become a sticking point in getting new tenants moved into their apartments.

Revise Budget

You will need to set your budget and calendar for more carpet cleaning appointments, painters, paint and supplies, as well as general maintenance on

move-outs. There are always things you need to repair before moving a new tenant in.

Time Management

Additionally, your time will be tied up more, too, because you will be doing more inspections during this time, as well as all of the marketing to get new tenants and all that endeavor entails: Things like interviews, background checks, more frequent deposits, more frequent and greater expenses due to all of the outside vendors you may have to bring in to get people moved out and in as fast as possible.

Obviously, planning in the early spring for all of the activity that will ensue in May and June is time well-spent. If you don’t plan soon, you may find yourself scrambling at crunch time.

Page 12

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.

DAYLIGHT

SAVINGS

MARCH 8TH

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 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!

Page 13

National REIA

Member Benefits

Since our association recently teamed up with National REIA, we

wanted to highlight a few of the member benefits that are now available to you. To access most of these benefits,

you will need to establish an account on their website, www.nationalreia.com.

• Sherwin Williams—The Apartment Association

mailed out a Sherwin-Williams discount card to each member, which you can present in the store to receive discounts on their products.

• Home Depot—You can receive a 2% rebate on your

Home Depot purchases (on a minimum of $1,250 in purchases in a 6-mo. period), by filling out the short Home Depot rebate form and turning it into the Apartment Association office. The Home Depot provides in-store special orders, advance order pulling and job site delivery, guaranteed low prices and more for less with Volume Pricing and Bulk Pricing. Please call the Association office for more details.

• Office Max/Office Depot—Receive Office Max

and Office Depot discount cards by logging into www.nationalreia.com or pick one up at the Association office. Discounts can be up to 45% off, and will vary by item.

• Avis/Budget Car Rentals—You can receive a

discount code for both Avis and Budget rentals by visiting National REIA’s website.

• The National REIA Shipping Program—

Members who enroll in this free program receive significant discounts on small package shipments with select FedEx® services. This program also provides discounts of at least 70% on LTL freight shipments arranged through PartnerShip®. In addition, National REIA members save on tradeshow shipments with reputable carriers including UPS Freight, YRC Freight, and more. Call 800-599-2902 or visit PartnerShip.com/73NREIA to sign up for these savings today.

• Local Market Monitor—National REIA members

receive 25% off all purchases of Personal Investor Market Reports when they use their National REIA coupon code. Local Market Monitor provides decision tools for residential real estate investors with straight-forward logic and real time information for opportunity analysis. Learn more at http://Investors.LocalMarketMonitor.com.

WELC

OM

E

NEW

M

EM

BER

S

Andrew Kerr • Richard & Sandra Monroe • Jason Papinchak

Brenda Charcalla • Mary Lou Hockenbery

The Jones Group, LLC • Angela Sanfilippo

Michael Richardson • Phillip Lawton • Christina Conners

Lisa Gnibus • Mark Letto • Nanci Lorei

Aaron Hanks • Jacob Giangiordano

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.

Page 14

Don’t Forget to Take Advantage of the PROA Answer Line!

This is an online discussion forum available exclusively to PROA members. Members can post questions, obtain answers, discuss issues, learn from each other, and obtain information relating to real estate investment and property management. The forum is organized into major subject categories and topics. Members can post questions or add to discussions under each topic. Experts regularly visit the forum to respond to questions and moderate discussions. New subject categories and topics can easily be added as needed. A secure e-mail and private messaging system is also available for members to communicate with each other.

Call the Apartment Association office to receive your PROA ID and begin using the Answer Line.

HELP PREVENT SCAMS OF YOUR PROPERTY

Mr. Landlord

The following story was shared by a landlord about prospective tenants being scammed by "pretend landlords". This sample story continues to become more and more prevalent throughout the country.

"Listed a property on Postlets this week. Received two calls from prospective tenants saying they found my ad

on Trulia being pushed by a scammer to get people to wire the security deposit in exchange for keys. Both prospects almost fell for it given their sense of urgency and the great deal being advertised

($300 less per mo). Postlets said to take it up with Trulia. No response from Trulia yet."

A fellow landlord shares the following tips on how to prevent your rental house from being used by scammers.

"Just happened to me - an alert local Realtor saw it. I had watermarked, but not large, and the scammer

managed to blur it a little. Here's what to do: Go to the Trulia listing. Under the listing photo, hover your cursor on the word "more". In the dropdown, chose "flag". Next, email fraud@trulia.com, giving specifics that you are the owner, and this is fraudulent. They took it down within 10 hours, but in the meanwhile, I put an

alert on my real ads to look out for "Keisha Jones", the name the scammer gave.

(In the future)... get at least your main photo watermarked with a phone number and email address, fairly prominently. I use picmonkey - choose "Edit", upload your photo, then select ‘Tt’ on the far left to create

a textbox. Pretty easy, even for non-photo-editing savvy me."

Page 15

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 that 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 credit card. Postage will be added to the cost for

any mailings to a member.

HARD COPIES

Warning: All credit reports on accepted and rejected tenant

applications should be saved for at least five years. 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 hard copy, the owner cannot

prove the financial reasons for acceptance or rejection if

challenged in court.

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.

1127 West 38th Street

Erie, PA 16508

Address Service Requested

APARTMENT ASSOCIATION DINNER MEETING

Learn from Ten of the Worst Landlord Mistakes

Thursday, March 26, 2015

Hooch and Blotto’s 8071 Peach Street, Erie

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

Name _______________________________________________________________

Email________________________________________________________________

Phone __________________ # Attending ________ Amount Enclosed ___________

Reservation deadline is March 23, 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.