contents
FROM THE PRESIDENT - Patty Hofer
Isn't May a wonderful month? Everything green looks so fresh. The flowers are putting on a spectacular show, even the shadows in May are sharper, more intense. The Memorial Day holiday is a perfect culmination of spring and kick-off for summer.
Our March meeting was especially interesting. Our newest advertiser, Evonne Mikitin of Credit Verification Services (314) 772-4500 explained that her company will provide credit reports, thorough landlord and reference checking, criminal records history and other checks to insure that owners have the most comprehensive information to make the best decision on accepting a new resident. Her company will even handle denials for us. Evonne charges by the job. There are no membership or yearly costs. Anyone who is not using a professional screening service does not have a good understanding of our business.
Greg Brough (314) 725-0001, an attorney whose office is in Clayton spoke about limited liability companies. The concept was explained at length in the last issue of the newsletter so Greg was able to answer our specific questions.
The Landlord conference was a smashing success. Most of the attendees stopped at our booth and about a dozen expressed interest in joining.
We will have two speakers at our May 15th meeting. Dr Carol Thrombo from Washington University has a new message about lead paint poisoning. Harry Bennett, Commercial District Manager for St Louis Development Corporation will take about plans for our area.
Elections are coming up in July. Charter members, Cecilia and Paul Rauls will be rotating off the board. The Rauls are expecting three new grandchildren and both their businesses are doing well. With those kinds of priorities volunteer activities get pushed not just to the back burner, but all the way off the stove.
Two of the hallmarks of excellence in a non-profit organization are "an involved and committed volunteer board that....provides a bridge to the larger community" and "an ongoing capacity to attract sufficient financial and human resources." Our association can always make money, that's what we all do in our own businesses. The question for us is, do we have members interested enough to sustain the organization by giving their time and talent to running it? Don Schmidt, John Korst and I are still committed, but we certainly need more board members and fresh ideas. Please give me a call (352-9140) offering to at least attend a couple of board meetings. I promise we will not work you too hard.
The board has reviewed having a web site and decided to continue it. St Louis City RENTAL PROPERTY OWNERS will also be sharing the domain name (stlouislandlord.com), some pages (For Rent page and Legislative links as examples) and the cost of maintaining the site with us while developing their own unique presence. We encourage members to advertise both their rental units and sale properties on the web site. Members who want to advertise must telephone, e-mail or fax the webmaster, John Korst (314-832-2057) the details. Properties for sale must be coordinated with the listing Realtors, so the listings conform with real estate laws and regulations. The board feels this a substantial benefit to members because each of us can now complement newspaper advertising and expose our listings to the entire world. We can include this opportunity in the current yearly dues of $20.
Another bright spot in the neighborhood is the new community garden on the site of the old Mehlwood Apartments. Pat Eby, Dave Thomas, Mark Baier and Pete Kucharczyk have been working for months doing the planning. The first flowers and vegetables are going in now. A fountain may even be in the garden's future.
Several of your board members have taken to pleasure/exercise walking the streets of our wonderful neighborhoods. Amazing how much more one sees without a vehicle. Space is limited in this issue but we may be highlighting plus and minus rental properties in future issues. For instance, a simple lace curtain on the main entrance of a four family on Grand looks so inviting. Meanwhile stacks of trash piled in the backyard of a two-family and visible from Pennsylvania looks, well, trashy.
Hope to see you all at the next meeting, Monday, May 15th.

contents
RENTERS INSURANCE A GOOD DEAL FOR TENANTS AND LANDLORDS - Donald Beck
The following scenario is becoming increasingly common. Before re-renting a home, a landlord changes all the locks. One month after the new tenants moves in, their apartment is burglarized. They lose over $3,000 in personal property. There are signs of a forced entry, but the tenants sue the landlord because they felt the locks were not adequate.
Most landlords would think under this scenario, there is no way the landlord can be held liable. Don’t count on it!
Try another scenario. A guests of your tenant slips on a wet spot created by your tenant on the rented premises. The guest breaks a leg and considers suing the tenant but learns the tenant has no money or insurance, so sues the landlord.
Reduce your odds of being sued, by requiring tenants to carry personal property and liability insurance. If the tenants in the two examples above had been required by the landlord to carry renter’s insurance, there would have been no reason to sue the landlord because the tenant’s insurance carrier would have covered the losses.
Your odds of being sued can be reduced even further by requiring the tenant to list you, the landlord, as an additional insured to their rental policy. This means that if your tenant’s guest falls and decides to sue both the tenant and the landlord, the tenant’s insurance company will be obligated to defend both parties.
Doesn’t that sound better than just you, the landlord, being sued because the tenant has no insurance or assets? Most insurance companies will not automatically add the landlord as an additional insured but it will do so at no additional costs to the tenant if asked. Another advantage is that everyone listed on the policy will receive a notice of expiration. This is your reminder to contact the tenant about renewing.
Before signing a lease, require new tenants to show you an Insurance Certificate listing you as an additional insured. The certificate will list the amount of coverage, terms, and who is insured.
The cost for a tenant living in a one or two bedroom apartment will be approximately $10 a month for $20,000 worth of coverage. I realize that convincing some tenants, especially at the lower end of the economic scale, that this is a good plan may be difficult. Let me offer a few suggestions of ways to market this plan to all residents.
At time of renewal, raise your existing tenant’s rent $10 a month more and tell them by renewing, you will provide $20,000 worth of personal property and liability protection as your way of saying “Thanks for being such a good tenant.” When there is a tenant turnover, raise this rent an extra $10 higher than projected and include this sentence in the ad. “Move in before _______ and receive $20,000 renters insurance policy absolutely free.”
This strategy has some built-in safeguards. You will be paying for the policy with the tenant’s money, so won’t have to worry about tracking down the tenant each year to make sure the policy is renewed. It also insures that your name will not be dropped as an additional insured.
If raising the rent $10 a month is too steep for your area, raise it $5 and pay the other $5 yourself. This is cheap compared to what your rates would increase if your tenant carries no insurance and you’re sued.
Another overlooked advantage for requiring tenants to carrying insurance is that some insurance companies allow the landlord to collect damages against the tenant’s policy if the tenant causes any damage to the premises during the term of the lease. In order to collect you must have a strong inspection sheet along with pictures to substantiate the condition on move-in day. A better method is to take your video camera, pop on the date and time and do a walk through with your new tenants leading the tour.

contents
COCKROACH ELIMINATION - Mike Potter, University of Kentucky College of Agriculture
Cockroaches, are the most common insect pests infesting homes, food service establishments and other structures in Kentucky. Cockroaches are repulsive and objectionable to most people simply by their presence. They are also capable of mechanically transmitting disease organisms such as the bacteria which cause food poisoning. Recently, cockroaches have been found to be an important source of allergy in people, second only to house dust.
Cockroaches typically become established in homes after being introduced in grocery bags, with laundry or, in some cases, wandering in from outdoors. Once cockroaches become established they are prolific breeders capable of producing several thousand offspring in a year.
Cockroaches prefer to live where there is food, warmth and moisture. Since cockroaches flourish where food and moisture are readily available, sanitation is an important step in prevention and control. Empty soft drink bottles, cardboard boxes and paper bags should not be allowed to accumulate. Food containers should be sealed and any crumbs or spillage cleaned up.
Unlike many household pests, cockroaches are prevalent year-round, causing homeowners and businesses to eventually seek some form of control. Homeowners attempting to control cockroaches themselves will find insecticidal baits and boric acid effective and relatively easy to use. This factsheet will explain how to use baits and boric acid to eliminate your cockroach problem.
Cockroach Baits
Cockroach baits contain a slow-acting insecticide incorporated into a food attractant. Roaches locate and feed on the bait, typically contained in small, plastic bait trays, and crawl away to die. Bait carried back to the nesting area also kills other roaches after being expelled in the sputum and feces.
In contrast to liquid sprays or aerosols, cockroach baits require no mixing and it is not necessary to empty kitchen cabinets or cover food preparation surfaces prior to treatment. People and pets are not exposed to the toxicant since the insecticide is enclosed within a plastic, child-resistant container. Another advantage of cockroach baits is that they have essentially no volatility or odor. Various types of cockroach bait products are sold over the counter. Three of the most effective are Combat®, Raid® Max Roach Bait, and Roach Ender® Roach Bait (Black Flag). All three products are packaged 12 stations to a box and are available in most grocery and hardware stores.
How to Use Cockroach Baits
The key to successful cockroach control with baits is proper placement. Bait trays should be placed in all areas where cockroaches are seen, especially in kitchens and bathrooms. Prime locations include under sinks and toilets, beneath refrigerators, dishwashers and stoves, next to trash containers and inside cabinets and storage areas. It's critical that the stations be positioned flush into corners or up against edges (e.g., where walls meet ceilings and floors), since these are the paths commonly traveled by roaches.
Placement of baits in the middle of exposed surfaces, i.e., away from edges or corners, will be far less effective. In most cases, a minimum of 12 bait stations should be used at one time, placing 10 baits in the kitchen and two in the bathroom. If cockroaches are seen in other areas such as bedrooms or utility rooms, use 2-4 additional baits. Do not spray around bait stations with other insecticides or cleaning agents as this could deter roaches from feeding on the bait.
Substantial reductions in cockroach numbers should occur within 1-3 weeks of treatment. As with any pesticide, read the product label prior to use.
Boric Acid
People have been fighting cockroaches with boric acid for nearly a century. Boric acid is one of the most effective cockroach control agents ever developed provided that it is used correctly. Unfortunately, most people use it incorrectly, and in the process waste their money and effort. Boric acid may be used alone or in combination with the baiting techniques previously discussed.
Properties and Advantages
Boric acid is a wonderful tool for controlling cockroaches in homes, restaurants and other buildings. It is effective in extremely small amounts and retains its potency almost indefinitely provided the deposit remains dry. Unlike many insecticides, boric acid has no repellency to insects and, consequently, roaches return to treated areas repeatedly until they die. Boric acid is deadly to cockroaches, but is low in toxicity to people, pets and other nontarget animals. It is also odorless and contains no volatile solvents.
Boric acid is a white, inorganic powder chemically derived from boron and water. Boron is mined from vast mineral deposits in the ground and is used in countless consumer products, including laundry additives, toothpaste and mouthwash. Boric acid insecticide formulations can be purchased at hardware and grocery stores. The powder comes ready-to-use, i.e., no mixing or dilution is required. Formulations sold in plastic, squeeze-type bottles with narrow applicator tips are the easiest to use. (These containers are similar in appearance to the squeezable mustard and ketchup bottles found in restaurants).
Cockroaches succumb to boric acid when they crawl over treated areas. The tiny particles of powder adhere to the cockroaches' body, and the material is ingested as the roach preens the powder from its legs and antennae. Some boric acid is also absorbed through the greasy outer covering of the insect's body. All species of cockroaches are susceptible to boric acid provided the powder is applied into areas where the roaches are living.
Using Boric Acid Like a Pro
The key to success with boric acid is proper application. For best results, the powder should be applied in a very thin layer barely visible to the naked eye. Piles or heavy accumulations will be avoided by foraging cockroaches much as we would avoid walking through a snow drift. To apply a fine layer, shake the container and puff a small quantity of the powder into the target area. Manufacturers of boric acid often fill their containers too full of powder -- by using a container which is no more than two-thirds full, an airspace is created at the top which allows the dust to be puffed more easily (A few pennies or pebbles placed inside the container helps prevent the powder from caking). The trick is to give the container a shake, then puff a very light dusting of the powder into the area you wish to treat.
Avoid applying a heavy layer, and never apply the material with a spoon. Where the powder is applied is just as important as how it's applied. Cockroaches prefer to live in cracks, crevices and secluded areas close to food, moisture and warmth. Kitchens and bathrooms are the most common areas to find cockroaches, although any area of a home may become infested if the infestation is severe, or if species other than the German cockroach are involved. Key areas for treatment include under/behind the refrigerator, stove and dishwasher, into the opening where plumbing pipes enter walls (such as under sinks and behind the commode, shower and washing machine), and into cracks along edges and corners inside cabinets and pantries. Oftentimes, there is a void (hollow space) under kitchen and bathroom cabinets which becomes a hiding place for cockroaches. This area can be accessed and treated by injecting powder through any existing gap at the top of the kickplate, or if none is present, by drilling a few small holes. NEVER apply boric acid onto countertops or other exposed surfaces, especially those used to prepare food. Any visible residues should be wiped off with a damp cloth. Boric acid can be used alone or in combination with other cockroach control products. An effective way to augment the activity of boric acid is to place containerized cockroach baits such as Combat®, Raid Max® or Roach Ender® brands, as discussed earlier. Avoid dusting over, or in the immediate vicinity of your bait stations, as this may reduce the attractancy of the bait. Used correctly, this dual approach will produce results comparable to a professional exterminator.

contents
LEASES CANNOT BE BROKEN
Landlords, of all people, should take the position that a lease cannot be "broken". A tenant may violate the terms of a lease and be responsible for damages spelled out in the lease, but to say it is broken implies that it no longer is working for you. The next time a tenant calls you and says "I am breaking the lease," tell them "No you're not, if you choose not to live there, that's fine, but you will continue to be responsible for rent under the terms of the lease, which means you pay until I find a subtenant." Practice saying this five times before you go to bed each day, "Leases cannot be broken, leases cannot be broken . . ."

paid advertisement

not an endorsement

---

contents
INHERITING A TENANT
Three things are at issue here:
1. The tenant's rights and your rights
2. Notification
3. Unpaid rent and prepaid rent
Landlord's and tenant's rights
The tenant's rights remain unchanged as if there had been no change in landlords, except in the question of unpaid rent, which we will get to later.
The existing rental agreement remains in force, unless it is changed on 30 days' notice, as is provided in the Landlord/Tenant Laws of most states. It is important that you get the original of the rental agreement for your files and read it carefully. There may be provisions in it which will affect how you can deal with the tenants in the property. One of them may be the length of notice required to change any provision of the rental agreement.
If there is no written rental agreement, the tenant has the same rights as those provided in the Landlord/Tenant Law and other applicable portions of state law and none other. In some cases there may be verbal agreements between the old landlord and tenant. The only circumstances under which those would remain in force would be if they appeared in the earnest money agreement when you purchased the property.
Those might be such things as the landlord wouldn't raise the rent until a certain date, or that the tenant is allowed sixty days' notice for any change.
If there is a lease in force, that goes with the property, and no terms of that may be changed until the term of the lease expires. It is important that you get the original of the lease and read it, as well, for the same reasons that it is important to read the rental agreement.
Notifying the Tenant
You are required to tell the tenant he has a new landlord. That must be done immediately upon your taking possession of the property. Follow the notification requirements in your state.
If you do not notify the tenant, that does not absolve you of responsibility for the care and maintenance of the property. You may not get the rent if the tenant doesn't know you're supposed to get it, either.
Unpaid and Prepaid Rent
Here is where it gets complicated.
What happens if the tenant is in arrears with the old landlord? What happens if the landlord has last month's rent and security deposit? Can you evict the tenant because he hasn't paid the old landlord rent owed to the old landlord?
Rent owed the old landlord falls into two categories. First, there is rent that is owed totally to the old landlord. Second, there is the rent that is owed partially to the old landlord and partially to you.
Rent that is owed totally to the old landlord is no concern of yours, except to the extent that you may have a deadbeat tenant in your new property. Except in the unlikely event that the old landlord assigns you the rights to the past due rent, it is not yours to collect or benefit from. The old landlord can sue the tenant for the past due rent and possibly get a judgment against him. But you are out of it.
Rent that is owed partially to you is very much your concern. That should be paid to you at closing. The earnest money agreement provided by the Board of Realtors®, for example, provides that all prorated rents will be paid as of a specified date. It behooves you to see that you collect all rents owed to you at closing.
For example, if you are closing a sale on July 15 and taking possession of the property on July 16, you will be owed an amount equal to 15 days of rent. So if the tenant has not paid his rent for July, the old landlord has to pay you for it, regardless of whether the old landlord has collected it or not.
Rent that is prepaid, such as last month's rent, and all deposits, should be paid to you at closing as well. If they are not, you could be stuck with a month's rent and a bunch of deposits when the tenant moves out.
Evicting the tenant
Here is where it gets really sticky. If the tenant has not paid the old landlord the rent for the month, you probably don't want the tenant in your property. However, you cannot give the tenant a three-day, five-day or 72-hour notice (whatever is appropriate in your state), because the rent is not owed to you, but to the old landlord.
You can give him a 30-day, no-cause notice (or whatever you have in your state), though. And as the new owner, there is no way it could be considered retaliatory for a complaint. In fact, barring an incredible excuse, it is advisable to send the tenant a 30-day notice, and get rid of him.

---

paid advertisement

not an endorsement

---

contents
TIPS FOR LANDLORDS – Mary Jeffords (www.prairielaw.com)
Landlords should remember that there are good reasons why various governmental bodies at the state and city level have enacted law and ordinances to help enhance the quality of housing and to provide for minimal standards of repair, safety and habitability of residential apartment units. The laws and ordinances where residential apartments are located are, by implication, a part of every leasing agreement.
The most difficult problems seem to come up when tenants demand that repairs be done to their apartment or the building of which it is a part. If the items needing repair are obvious and serious (no fire extinguishers or smoke detectors where they ought to be or roaches and mice not being properly exterminated, or safety mechanisms not in place or heat not present in proper amounts, or the electrical system potentially causing fires) then the landlord should take immediate action to correct the problem(s). This seems self-evident but many times when tenants complain, landlords just do not take action.
Let's suppose the landlord thinks the complaint is unimportant and that the tenant is just trying to take unfair advantage of the landlord and it does happen. Even if this is possibly the case, in my experience if the landlord ignores what the tenant believes are reasonable complaints, then it becomes personal...the tenant is being ignored, and no one likes that kind of treatment. So, landlords, even if you think your tenant is off base, sleep on the problem overnight and then wake up with a smile, call the tenant, make an appointment and go visit with your tenant in a happy, friendly and non-adversarial manner. You might find that your tenants are really good people and that, in all fairness there are items that need attending to by the landlord. The tenant might also agree that little "Johnny", their three-year old son, may have cause a bit of the damage now requiring repairs and that, yes, the tenant will take care of and pay for that item.
By amicably resolving these disputes, even if you think your tenant is wrong, and by confirming the substance of the meeting and the agreements arrived at in a written letter to the tenant, you may put an end to the problem. If landlords don't act in this fashion the tenant might then feel compelled to take advantage of any self-help remedies provided under any applicable local statutes, laws or ordinances. If a landlord then wrongfully files an eviction action in the face of proper action taken by a tenant, the landlord may face counterclaims for damages and substantial attorney's fees.
So, landlords should take the time and make the effort to obtain, read and comply with all local laws, rules and ordinances. It won't be expensive to do become so educated and won't take too much of your time. And, then, landlords should remember that we are all human beings and should be open and receptive and honest to what tenants are asking or complaining about. Such human interaction will benefit both landlords and tenants.

---

contents
NEXT MEETING

Place: Southern Commercial Bank - 5515 S. Grand [ map ]
Date: Monday, May 15, 2000
Time: 6:30pm - 9:00pm

AGENDA TOPICS

6:30 - 7:00 Social
7:00 - 7:05 Welcome
7:05 - 7:15 Business Update/Aldermanic Report
7:15 - 8:00 guest speaker(s)
8:00 - 8:30 Jim Magnus
8:30 - 8:55 Discussion of Members Concerns
8:55 - 9:00 Raffle

RETURN TO LIBRARY