My husband and I recently had one of those rewarding landlord experiences.  We were invited to the high school graduation party of two of our former tenants.  Rachel and Randi were adorable
raven haired four-year-old twins when they moved into our downstairs apartment.  They left when the girls were seven because their Mother wanted them to be in different classrooms in school. Both having finished at Fort Zumwalt South, Randi is off to Webster University and Rachel will go to St Louis University.  Just thinking about those girls brings back so many pleasant memories of their family and friends.  The joyful experience of knowing wonderful  people is a little recognized benefit of our business.

Two neighborhood notes; the school board has decided to sell vacant Maddox school on Virginia to a developer for housing.  My impression is that the current building will be converted to apartments or condos.  The Rex Café on Michigan and Bowen will change to a Vietnamese restaurant.

At the May meeting our Treasurer, Mary DeMierre reported our treasury balance as $3,644.22 with fifty-six members.

Stuart H Goldenberg (314.481.8888) who specializes in City Land Tax Laws was our guest speaker.  After three years of nonpayment of real estate taxes the city may file suit for a judgement of foreclosure.  The foreclosed properties are then offered for sale at auction on 2nd Tuesdays of May, June, July, and August so the city may recoup its delinquent taxes.
These sales are attractive to people who not be able to get mortgages, speculators and other smaller investors looking for bargains.  A buyer will be paying for three years worth of taxes, interest, the costs associated with the sale and possibly an additional amount that would depend on how high other bidders drive up the price. Just buying the property is not the end of the transaction, one is also required to bring the property up to code.  In some instances one may be able to buy a home and rent it back to the previous owners, who did not pay the taxes.  Sometimes a property is still in good condition, but mostly if the owners do not have the funds to pay the taxes, they probably don't have the money to maintain the building either.

There are many pitfalls and hidden costs in these acquisitions.  One really cannot thoroughly examine properties before the sale, addresses may be wrong, so one must research the legal description of each property.  Speculators routinely drive to each property on the list, taking pictures of possible purchases.  A quick title search through the collector's office is necessary.  The collector may accept the delinquent taxes up to the day of the sale so properties may be removed from the sale list after publication in the newspaper.

Mr. Goldenberg recommended that one have a highest bid in mind recognizing that there will be ancillary costs, such as other liens from the Internal Revenue Service or the state.    Even if one does get the property during the bidding, they new buyer can do nothing with the property; one cannot secure the building, winterize it, etc.  Sometimes buildings are vandalized by the displaced family, buildings sometimes catch on fire, or the prior owner may be allowed to redeem the building, even though the statutes say previous owners cannot redeem the property, it
does happen.  Land tax property is not a priority in court so court dates are hard to get.

Mr Goldenberg said sometimes clients who have hired him to purchase a property, hire him again to make the city take the property back.  The bid amount is the only part of any expenses incurred to be returned, all other expenses are simply gone..

One caution is that a buyer must have the means to rehabilitate a building quickly.  The process of bid to deed takes over sixty days.  There are built in costs for legal papers, attorney fees, title report costs, appraisal, appraiser's testimony and possibly eviction expenses.

This is not a simple process, an attorney who specializes in this these acquisitions.  Telephone Stuart Goldenberg for more information.

Joe Hoddes stopped by to remind us that Home Rule for St Louis will be on the November ballot.

Alderwoman Lyda Krewson also came by to ask for votes for her bid for president of the board of aldermen.

Jim Magnus' legislative report will be a separate article in the newsletter.

Warren Bodine will continue to monitor the process of property tax assessments in St Louis County.  The efforts of complaining taxpayers have resulted in the prohibition of "drive by"
assessments.

There being no further discussion, the meeting was adjourned.
 

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The C/HH & St Louis City RENTAL PROPERTY OWNERS web site (www.stlouislandlord.com) is again operative.  Many thanks to John Korst and our new web master, Al Hofer for reinstating this valuable tool.  Some newsletter issues are still missing, but they will be updated shortly.  We had been offering free "for rent" advertising for our members, but metropolis st louis (www.mstl.org) does the same thing so we have a choice for Internet advertising.

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"Lie, don't buy: What Enron taught me" 
                                                                            by Al Franken 
 Like many Enron Shareholders, I couldn't have been more excited when the stock climbed from $45, where I bought it, to $67, where I bought some more; to $73, where I cashed im ny Keogh plan to put everything I had into the company; to $79, where I took out a second mortgage to buy more stock; to $86, where I persuaded my brother and his family, my parents and my in-laws to invest their life savings in Enron.  By the time the stock hit its all-time high, at $90.75, I was a millionaire.  I had taken a mere $800,000 and turned it into a small fortune, $1.1 million
 We were rich!  I celebrated by buying my wife a $200,000 emerald, which fortunately she made me take it back.  In fact, I was at the jeweler's returning the emerald and looking at a more moderately priced ruby tennis bracelet when I received a phone call, "Al, it's Kenneth Lay over at Enron," the chairman said in an urgent whisper.  "Don't believe what you hear about the stock."
 "I haven't heard anything about the stock, Ken.  What shouldn't I believe that I haven't heard?"
 "It's just that it's down a little today," he replied.  "Hang in there."
 "Oh, okay," I said, thinking that maybe I shouldn't buy the tennis bracelet.  "Let me ask you a question, Ken.  Are you selling your stock?"   "Hell, no," said Lay.  "If anything, I'm buying."
 "Would you like to buy mine?"  I asked.  But the line went dead.
 You know the rest.  A week later the stock was trading at somewhere between a dime and a quarter.  Like thousands of Enron shareholders, many of them company employees, I was wiped out.  Kenneth Lay__or as my children call him, Kenneth Lie__had actually been selling off his stock and wound up with $150 million, enough to buy a whole emerald mine.
 In a way, this was all a blessing in disguise__admittedly, a good disguise, like the ones they used in Mission: Impossible. You see, like most authors, I am writing this book because I am in desperate need of money. Unlike most authors, I'm telling you.  Remember the blind British poet, John Milton, who wrote Paradise Lost? He didn't write that book because he was "inspired.'  He wrote it because he was wiped out in the Dutch tulip craze of the 1630s.  It was ever thus, and ever will be.   So you are the beneficiary.  Both of the pleasure you'll get from reading of my misfortune and of the lessons I've garnered from the same misfortune.

 Lesson one:   If an investment sounds too good to be true, Kenneth Lay is probably involved.
 Lesson two:  If you find yourself using a product, invest in it.  I wasn't using Enron, but I was using Bounty towels.  Had I made an equivalent investment in Bounty's manufacturer, Procter U Gamble, I would have reaped a 3 percent return rather than suffering a 99.8 percent loss.
 Lesson three: Diversify your portfolio.  So you've purchased stock in an Internet portal.  Fine.  Now invest in an old-fashioned bricks-and-mortar company, like www.bricksandmortar.com.
 Lesson four: Buy gold.  In an uncertain world, precious metals retain their value.
 Lesson five: Invest for the long term.  After choosing a low-risk investment vehicle like a stock index fund or an emerald, don't touch it for five years.  The expert consensus is that even looking at it is bad luck
 Lesson six: Greed works for some people (Kenneth Lay) but not for everyone (Al Franken).

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Calendar:
Sundays 6- 8 PM  Concerts in the Park at the bandstand by the lake in Carondelet Park
Tuesday, Aug 6: National Neighborhood Night Out,    Election Day

Tuesday, Aug 20: C/HH Landlords lunch at Feasting Fox

Friday, August 23 - Wednesday, August 28  Carondelet YMCA Book Fair
                                    Drop off donations now.  More information call 353-4960 

Friday, August 30  Deadline to order daffodils from Operation Brightside 314.772.4646

Friday, September 13,  Saturday, September 14 2002 Lead Based Paint Education and Awareness Conference   314.968.8285

Monday, September 16 C/HH General Meeting, Southern Commercial Bank

October  Community Expo

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TROUBLESHOOTING ROOFING PROBLEMS
Recognize the warning signs and you can repair minor roofing problems before they turn into major ones.
*Be alert for damp spots or stains in the attic, on a ceiling, on a wall or in the basement.  Drips form a leaky roof don't always fall straight down.  Often, they run along rafters and down wall.
*Check your exterior siding, roof edges and fascia (the board covering the joint between the top of a wall and the projecting eaves) for water stains and crumbling, as well as spongy wood.  The cause could be water coming through the roof, or malfunctioning gutters and down spouts.
*Replace damaged or missing roof shingles immediately.  Re-nail loose or curling roofing material
*Watch for mineral deposits in your gutters.  These tiny particles show roofing is getting old and worn.  Frost patches on the roof in winter also signal it's time to repair or replace.
MIDWEST LIVING APR 1994

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LEGISLATIVE REVIEW 
researched by James E Magnus
This month we will look at some bills that have passed in the Missouri Senate and House and are waiting the Governor's signature.  Also several bills have been introduced the St Louis Board of Aldermen that could effect rental property owners.  Finally an update on the registration of property owner ordinance that was passed last year.

The Missouri Legislature:
SB932:  Clarifies the notice due to a tenant when the landlord sells the rented property.
 535.081 The right of a successor in title to recover rents pursuant to section 535.070. Requires adequate and timely notice to the tenant.  For the purposes of this section, "adequate and timely notice" means that the purchaser shall notify tenants in writing of the fact that title to the property has been transferred, and of the means of the transfer.  A COPY OF THE DEED BY WHICH TITLE WAS OR HAS BEEN TRANSFERRED SHALL BE ATTACHED TO SUCH NOTICE.  Thus when you purchase property you must notify the tenant(s) and furnish a copy of the deed that transferred the title of the property.

HB 1075: Revises procedure for landowners to require title to abandoned vehicles.
 This bill establishes a process by which land owners may secure title to vehicles, etc. found abandoned on their land.  The bill requires law enforcement officials to determine whether the item has been reported stolen or if it is subject to any liens.  The application for title must be accompanied by a copy of a certified mail receipt of the notice provided to any lien holder.  Owners and lien holders have 30 days upon receipt of the notice to protect the application and file a petition to recover the vehicle.  The use of the provisions in this bill could help the owners red their property of abandoned vehicles.

HB 1502 & 1821: Sets requirements for insurance companies that use credit reports for underwriting decisions, how insurers may use an applicant's credit information in making a decision to issue automobile and property insurance polices.
 This bill prohibits insurers from taking an adverse action against an applicant or insured based upon credit information when:
  1.  Credit information is the only underwriting factor;
  2.  Using information contained is a credit report that the insurer knows to be in dispute;
  3.  Renewing a contract, until the third anniversary date of the contract.
 This Bill also prohibits insurers from:
  1.  Providing credit information to third parties, unless specifically authorized by the Federal Fair Credit Reporting Act:
  2.  Using the number of insurance inquiries an applicant makes as a negative factor in their insurance scoring formulas. 
 The Bill requires insurers to:
  1.  Inform the applicant, at the time of application, if credit information may be used as an underwriting factor,
  2.  Inform the applicant about his or her rights regarding credit information when a credit report adversely affects the applicant; and
  3.  Provide to the applicant or the insured a clear and specific statement of the reasons for taking any adverse action which is based upon credit information, if the insured or applicant requests a statement within 30 days of the adverse action.  Applicant and insured may request revaluation within 30 days following any correction to the credit report.
 Penalties may apply for violations.  Effective to insurance contracts entered into on or after July 1, 2003.

City of St. Louis bills introduced: 
 Board Bill #70 introduced by Alderman Gregory Carter.  This bill would delete Section Six, paragraph Three, having the effect of not allowing the Code official to grant additional days to bring the building into compliance with the exterior provisions of the Existing Structures Code.
 Board Bill #123 introduces by Alderman Kenneth Ortmann.  This Bill amends Section Thirteen of the Housing Conservation Districts ordinance (#62887), by enacting two new sections providing for the revocation of any Certificate of Inspection for any dwelling unit or premises in a Housing Conservation District which has been condemned for occupancy for conditions by the Building Commissioner subsequent to the issuance of the Certificate of Inspection; further requiring that dwelling unit or premises be in complete compliance with the exterior and interior provisions of the Existing Structures Code and Exhibit A (Interior), prior to the reissue of Certificate of Inspection.
 Here is how the new sections will read:
  1.  The certificate of Inspection issued for any dwelling unit premises condemned for occupancy due to the condition of such dwelling unit or premises shall be voided and a new application for inspection shall be required prior to re-occupancy.
  2.  No Certificate of Inspection shall be reissued for a dwelling unit or premises comply with the exterior and interior provisions of the Existing Structures Code and Exhibit A (Interior).

Ordinance 60506 (Update) This ordinance provides that every two years, every owner of real property within the City of St Louis shall file with the Office of the Assessor, on a form to be provided by and mailed by the Assessor, such person's name and the street address of record of said property owner on or before June 1.  There are exceptions as to who has to file.  For purposes of this ordinance a post office box shall not be accepted as a residential street.  Alderman Tom Bauer has informed us that the necessary appropriations have been obtained to provide for the funding of the administrative c recording of said data.

The above is for informational purpose only.  You must consult an attorney if you have additional questions or desire to take advantage of any part (s) of the above legislation.

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GLORIOUS GROUND COVERS FROM OHIO
The next time you get the urge to sprinkle more grass seed around you yard, consider planting ground covers instead, suggests the Gilson family of Perry, Ohio, owners of Gilson's Gardens.  This northeast Ohio nursery specializes in the low growing, spreading plants. 
Nursery president Mark Gilson, whose father, Mark started the business in 1947, says ground covers add color and variety to your yard.  Best of all, after they're a couple of years old, ground covers require much less work than gras to maintain.  They also choke out many weeds. 
"Actually," Mark explains, "any low-growing perennial makes a good ground cover if it spreads quickly, stays somewhat uniform in height and is dense enough to crowd out weeds."
You can match ground covers to the conditions in your yard.  Some varieties need full or partial sun; others thrive in deep shade.  A few varieties are evergreen, others resist drought.
Ivy pachysandra and myrtle number among the most popular Midwest ground covers.  Mark suggests that you also consider the following varieties:
*Plumbago, which thrives in sun or light shade, has brilliant deep-blue flowers July-September and red foliage in fall.
*Gypsophila repens Rosea, a low-growing, sun-loving relative of baby's breath, features a profuse display of pink flowers in June.
*Potentilla verna forms a dense mat in sunny areas, blooming with yellow flowers from June to September.
Ground covers for shade include ginger, lamium and sweet woodruff.  Mark suggest that you position ground- cover seedlings 6 to 10 inches apart, small plants (in 4-inch pots) 12 to 18 inches apart and plants in large containers 2 to 4 feet apart.  For a mail-order catalog and guide to selecting and using ground covers, contact: Gilson's Gardens, Dept H, Box 277, Perry, OH 44081

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NOTE FROM THE CITY
Clean your rain gutters, repair or replace torn window and door screens, eliminate standing water in pots, urns and tires.  Clean and chlorinate swimming pools and change bath water at least every third day to eliminate mosquitoes around our buildings.

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Time's Up
An elderly man in Amsterdam realized it had been many years since his last confession, and there was an issue that had been bothering him for some time that he needed to confess.  He sidled into the confessional and asked for the priest's attention., "Forgive me, Father,  for I have sinned.  During World War II, I hid a refugee in my attic."  The priest was astounded.  "That is most certainly not a sin," he replied.  "Maybe not, but I made him pay me 20 gulden each week he stayed," said the old man.  This priest mulled this development over for a moment and said, "That's not good, but you did it for a good cause."  The man was relieved.  "Oh, thank you, Father, that is such a relief.  I do have one more question..."  "And what is that?" asked the priest.  "Well," said the man, "Do I have to tell him the war is over?"

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PRE SCREENING PROSPECTIVE RESIDENTS ON THE TELEPHONE
What exactly should we say or ask so we can determine if prospects will be good neighbors and good tenants?  Mr. Landlord will walk you through a possible phone call and outline a sample script (actual dialogue) that you can use when making your first contact with a prospective tenant.  Take careful note, because these are vital questions that have proven to help landlords recognize potentially ideal residents versus unacceptable tenants, by the answers that prospective tenants may give you.  Their answers can serve as red flags or green lights.  The prospective tenant usually starts the dialogue with a question, but afterthat you take control, finishing with dialogue that will get applicants to show up for the appointment.

THE PHONE CALL (SCRIPT)
The prospective tenant starts with the question usually asked of all landlords.
Resident: "Hello, how much is the apartment on __________?
Landlord response (LL): My name is ____________.  I'm one of the rental managers (say it that way even if you just operate a mon and pop operation) I'll be glad to help you.  To whom am I speaking?
Answer___________________
LL: Hello _________________ I am happy to assist you.  Tell me, about how much are you looking to spend on your next rental that meets your needs?
Answer_____________.
LL: Our rental is right within your price range.  (Please not: you do not quote a specific price back to the prospect over the phone.  You simply say the above statement and jot down the price the prospect may be willing to pay.  If the price the resident suggests is too low, you respond by saying, "We do NOT have anything within your price range."  By allowing the prospect to give you a price, that figure may be higher than the rental price you had in mind, allowing you the opportunity to perhaps set a higher monthly cash-flow at the showing.  Also note: none of your classified ads or flyers/advertisements must state or include a specific rental price, but instead include a price range, for example, $495 to $595, $645 to $775 or $845 to $995.  Please understand, the responses from prospective residents is simply your way of doing market "testing" to help you "set" the rental price.  You will set the price at the first "group" showing of the rental where hopefully there will be more than one prospect.  Don't show your rental to just one person at a time.  Once you set the price, that is the price.  Your price testing is over.  Do NOT go up and down in price from that point forward.  Offer the same price to all applicants once the price is set.)
LL.  Is there any particular feature you would very much like included in your new home?  (Hopefully, their response is something you can inform the prospect over the phone that you offer, or can offer, and that will serve as part of your "sales" pitch when showing their rental, perhaps a part of a "custom" rental home.)
Answer______________.
LL" Mr/Ms ____, when are you looking to move in, if our rental does meet your needs?
Answer_____________.
LL: You'll be glad to know that we offer all new residents a 30 day MONEY BACK GUARANTEE that they will be satisfied with our rental.  Will you be giving your present landlord a ONE WEEK or 30 DAY moving notice?  (As you have probably noted, your screening process has begun.  A responsible resident would give at least a 30 day notice to their current landlord).
Answer _____________.
LL: How many people will be living in the apartment, counting everybody?
Answer _______________.
LL: And who else may join you later?  (Pause for response, then continue).  Are there any other relatives or friends who may live there as will at some point in the future?
Answer ________________.
LL: How many pets will be staying with You? (Pause for response, then continue).  Even if only for a short period?  (Pause) What about any birds, reptiles, fish, or animals, large or small of any kind?  Answer ________________.
LL: What is your reason for moving from your current residence?  Answer _________________.
Did you have any problem with your present landlord?  (The answer may be most telling, A resident who has a bad attitude about their current landlord will most likely develop a bad attitude about you.  This question may even help you discover if they considered suing a former landlord or ran into problems with lead paint or mold).  Answer _________________________.
LL: One thing you should know, our company offers a MAINTENANCE GUARANTEE.  But let me ask you, what is the most important to you about the next rental you select?
Answer ________________________.  (This answer will also give you additional information to tailor your presentation at the showing).
LL: Well, I believe our rental has what you want and you do not have to look any further for your next home.  Our place is your answer.  Let's set up an appointment so you can see if I'm right.  Our next showing is on ____________________.  I will meet you promptly at ________.  We ask that you please be on time, because we have several other appointments that day and if you are late, we will miss you.  Will that time work for you?  Answer ________________________.
LL: Let me get your phone number just in case anything comes up, because I would not want to stand you up if an emergency prevented me from being there and I ask that you please give me the same courtesy.  Your number is ____________?  (This question is to see if they are responsible enough to have a currently working phone and it also emphasizes the importance of being at the appointment and to notify you if they cannot make it)
LL: Is this home or work?  Answer _____________.  (This is almost always home.)  What is your work number?  (Polite way to find our if they work.)  Answer _______________.
LL: What is the name of the company?  Answer ___________________.  (This is a possible indication of income reliability.)  And your position?  Answer _____________________. (Indication of amount of income.)
LL: Should you like our home and I really think you will, to process your application and get you in by your move-in-date, we'll need $______ holding deposit and $____ application fee at the time we meet.  The fee is in part to run a credit check.. Will your credit report check out okay, and will you have the funds needed at the showing?  Answer____________________________.
LL: Very well, we look forward to meeting with you on ______________.  Oh, will you need a refrigerator, microwave oven, or vacuum cleaner or will you be providing your own?
Answer____________________.  (You may choose to offer these items or others as part of the rental custom "package" and charge extra.  Also, their response may influence you selection or allow you to transfer items to another rental.
LL: Final thing, Mr/Ms______________,we look forward to meeting you and please remind me to be sure to tell you about the free gift we give to all applicants who move in.  (This is the teaser that will double the percentage of prospects who will actually show up for your next renter's "open house").
Reminder, the above suggested dialogue should come across as a friendly "conversation", not an interrogation.  Also, remember to smile, even though the prospect can't see you, because smiling can be "heard".  Smiling affects the tone of your voice and how your friendliness is conveyed.  And be sure to take notes of the prospects's responses so that you can review the notes before the showing.
 

Letter to the Community from
Fire Commissioner and Chief Sherman George and the members of the St. Louis Fire Department  Since May 3rd the St. Louis Fire Department has performed its duties with heavy hearts. The tragic fire that took the lives of our brothers Derek Martin and Rob Morrison has touched us all very deeply. We have also been deeply touched by the outpouring of sympathy and good will by the citizens of St. Louis and the surrounding communities.  Our burden has been made easier since then because of your compassion, support and kindness. The cards, letters, memorials and contributions have been instrumental in strengthening morale, reinforcing pride in the Department and strengthening our resolve to serve our citizens in the best possible way. To all of you, please accept our heartfelt gratitude.  We are particularly grateful to our fellow firefighters from around the region. Your help in staffing our firehouses, supporting our efforts and watching over our community was invaluable. We also offer thanks to the police officers who extended their kindness and generosity as well. It is an honor to stand beside you as we serve our communities.  Many businesses, large and small, were exceptionally generous to the Department and the Martin and Morrison families by contributing goods and services. There are so many that we can't thank you all individually, but we are extremely grateful.  Firefighting has always been a proud and noble profession, yet facing a loss of this nature can be demoralizing; however, all of the good will and concern expressed by the St. Louis community has allowed us to weather the storm. We now must move forward, and in so doing we reaffirm our commitment to you to provide the best service and protection we can. Thank you and God bless each of you. 
Our warmest regards,  Fire Commissioner and Chief Sherman George and the members of the St. Louis Fire Department
 

The Articles contained in this news letter and on the stlouislandlord.com web site are included for the informational, educational and occasional amusement value the might provide.  Articles are not included to represent the definitive answer to any situation. They are not intended to provide legal advice.  And they are not intended to represent the views of any board member or general member of the Carondelet/Holly Hills Landlords' Association.

Read, Enjoy. Use what you can and leave the rest.  If you have any questions, comments or story  ideas Please contact Patty at 314-352-9140

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NEXT MEETING

Place: Southern Commercial Bank - 5515 S. Grand [ map ]
Date: Monday, September 16, 2002
Time: 6:30pm - 9:00pm 
AGENDA
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 
 

NEXT LUNCH
Place:  Feasting Fox, Grand & Meramec
Date:  Tuesday, August 20th
Time:  11:30 AM