Wednesday, October 27, 2010

The Quest for the Purpose of Battle Creek's Rental Housing Ordinance 1463

Recently I attended a public hearing to allow the community to voice opinions about the Rental Property Ordinance #1463 which is due to expire on January 1, 2011.  Approximately 50 people attended this public meeting.
 
During the course of this meeting, it occurred to me that some vital questions remain to be answered.  What was the purpose of this Ordinance?  Was it to improve quality of life for the community?  Was it to reduce neighborhood blight?  Was it to provide an additional source of revenue for a City Department?  Was it to improve safety for the tenants?  Lower crime in neighborhoods?

Throughout the course of this evening, these questions kept running through my mind, and my quest for the purpose of 1463 was still out of reach.  No one in attendance seemed to know the answer.  If it were any of the above questions, then it is clear that this ordinance has accomplished none of the above.

Historically, there was a rental property ordinance on the books prior to the introduction of this new one a little over two years ago.  That was numbered 1460.  It covered the registering of rental property, as does 1463, and many other points.  However, 1460 was never enforced.  Thus someone along the line seemed to come up with the idea that instead of enforcing what was in existence, they should just write a new one and apply more force to landlords as a solution for the prior lack of enforcement.  It would seem the conclusion of the lack of enforcement of 1460 was the responsibility of the landlords themselves, thus 1463 needed to be drafted with stiffer penalties for landlords. 

Do you follow the logic?  It still does nothing for my quest for the purpose of 1463, but it does perhaps shed some light as to why it came into existence to begin with.  The basic flaw of 1463 is its approach of placing exclusive responsibility for the condition of a rented property on the shoulders of the landlord. 

Yes, the landlord does own the property, thus they share a responsibility inherently with property ownership for its condition, but because it is a rented property occupied by a person other than the landlord, there is also another party that shares a responsibility as well. 

This person is called the ‘Tenant’.  Their conduct and behavior affects the quality of life of neighborhoods. To deny them any responsibility in the condition places them squarely on the other side of the fence called ‘no-responsibility’.  If you do this, then properties naturally continue to be damaged, neglected, and in some cases outright destroyed. 

The ordinance gives them a golden crown of ‘no-responsibility’ and thus blight, disturbed neighbors, and crime continues.  Having been a landlord for a few years, and having worked with landlords for several more, I can personally testify to the fact that tenants do not always treat your property as you would wish it to be treated.  Nor do they always conduct themselves with courtesy to neighbors, or have a general regard for the curb appeal of the place they are living in.

In fact, there are percentages that strictly speaking do not know how to live in houses.  It is a sad situation, but it is even a sadder situation when a city government seeks to blindly solve a problem by addressing only one side of the problem they are trying to solve.  Resolving the proper treatment of rental property by tenants also needs to be a part of the equation.  That is what has been lacking from 1463, and thus it never resolves the problem of blight in the neighborhoods, reduction of crime or improvement of the quality of life. 

At the meeting I suggested the idea that tenants too need to be required to be certified if this ordinance were going to improve the quality of life in our community.  Why should this be considered such a radical idea?  Couldn’t a basic course be developed that all tenants are required to pass?   It could cover curb appeal, courtesy to neighbors, noise ordinance regulations, the definition of blight, how to operate appliances, electrical fixtures and plumbing correctly, house cleaning, healthy living environments, etc.   

If this cannot be addressed in the ordinance, then the entire ordinance as it stands needs to be done away with and just let it expire.  To place the sole responsibility of the tenant’s conduct on the shoulders of the landlord is not practical and never was.  It may have sounded like a good theory on paper, but after a two year test, it has only resulted in driving property investors out of the city, unjustly penalized existing landlords, and the conduct of tenants have not improved. 

It was stated by some in attendance the other night that 1463 is a failure.  I would tend to agree with that statement.  Creating a ordinance that seeks to regulate the lives of individuals and business owners that does not include everyone involved in the relationship is too one sided and doomed to failure. 

Some also argued that if the City it to require property improvements for safety of the occupants, what about the single family homes in the same neighborhood?  Do they not also pose the same risk to the occupants?  Being a Realtor in Battle Creek, I have been in many homes that had hazardous conditions, and this potential situation involves all homes, not just rentals. 

Monday, October 25, 2010

Timing the Residential Investment Market in Battle Creek

I have spoken to a few investors as of late about the subject of timing the residential investment market in Battle Creek.  There are always those that believe that the market can still go lower, and that they should wait. 

Perhaps there is truth to this; however I tend to take a different tactic on my approach to an investment property and timing the residential investment market in Battle Creek.  I look at available property, and I examine them thoroughly to determine if they will be profitable.  I factor in the purchase price, repairs needed to make it a marketable rental, and the expected rental rates in the area.  I also factor in an annual vacancy rate, and repair costs that might come up. 

In taking all of these factors into account, will this prospective residential investment property return my original investment in 3 years, 5 years or will it take longer.  So whenever I hear an investor talking about timing the residential investment market in Battle Creek, I recommend that they still continue looking and run the numbers thoroughly on anything they are interested in. 

There really is no magic crystal ball to look into to tell anyone whether this is the lowest that Real Estate in the area will go.  However, I will tell you from examining many homes on a daily basis for investors, there are some changes occurring in certain areas of Battle Creek that indicate to me that property values are leveling out and may even begin to rise. 

In high demand rental areas, bank owned properties are starting to see more and more competition in the bidding process.  The result is it is not uncommon to see foreclosure homes being sold for higher than the list price in certain areas, and as this activity increases, it will eventually drive values up. 

Banks and mortgage companies base the price they are listing a foreclosure on comparable bank owned sales in the area.  So when the sale prices start to climb, even on a gradient, it will begin to turn the values around in an area.  So timing the residential investment market in Battle Creek is best done by working with an experienced Realtor, and evaluating prospective investment homes on a case by case basis.  If you take this approach, you will find some great deals. 

For more information on Battle Creek Area investment properties, call me at: 269-441-8182 or visit my website and contact me through there: http://www.michaeldelaware.com/.

Thursday, October 21, 2010

Solutions for Getting Debt Under Control

Today, everyone is looking for some solutions for getting debt under control.  We live in decade that bad economic times were created by bad habits adopted in earlier decades.  The ‘charge it and pay for it later’ generation is now looking for some solutions for getting debt under control. 

There are many solutions for getting debt under control offered in the marketplace now, and all over the internet.  One cannot go a week without hearing or seeing an ad for ‘credit monitoring services’ and ‘identity protection services’ and ‘debt solutions’ etc. 

All of these services offer indirectly or directly some solutions for getting debt under control, in one way or another, but some just do not work.  However, I have come across a service that I think offers extraordinary solutions for getting debt under control.  In addition to being a licensed Realtor, I am also a licensed Life Insurance agent in Michigan. 

The company I represent for insurance (Primerica) just came out with a new product called ‘Debt Watchers’ and having looked over all aspects of it, I think it works well as a consumer interactive program for managing and organizing their debt in order to pay the debt off in the fastest amount of time.  The Debt Watchers program is linked to one of the three credit bureaus called Equifax, and it provides a strategy for the consumer to get their debt under control.  
  
It is easy to understand, and it offers an effective solution for getting debt under control.  The program links with Equifax and allows one to use the information reported on the credit report to put together a simple plan to pay off the debt faster.  The software uses a method called ‘debt-stacking’ which helps one pay off the debt in a systematic order to take maximum advantage of paying off the debt faster. 

One can also access their own Equifax credit report up to 4 times a year at no charge.  They can also dispute items on their Equifax credit report, as well as see a simulated FICO score as the progressively pay down their debt, which is a great way to encourage one to continue.  

It is easier understood by visiting the Primerica website: https://my.primerica.com.  On the main web page, go to the bottom left hand corner and click on the links about the Debt Watchers program.  It explains all the details.  The Debt Watchers program costs $14.95 per month, and consumers can go on the website and sign up themselves.  If they like what they see on the website, and want to sign up, they will need to enter my 5 digit solution number* to do this: URSA4. 

If they know their own Primerica representative in their area, they can use their solution number as well.  The program is cheaper than a lot of credit monitoring services, and offers so much more in terms of debt reduction guided by the consumer, and is available in all 50 States except the District of Columbia. 

I also usually recommend people take advantage of the website: annualcreditreport.com where they can once a year obtain a free copy of their credit report.  At this website they can take a look at their credit report, and dispute negative and incorrect items on all three bureaus.  This combined with the debt watchers program allows them to monitor and improve their credit, as well as reduce their debt at the same time.   I consider this one of the better solutions for getting debt under control.

The ultimate way to get ones debt under control is also to change ones spending habits, and move away from a dependency on credit cards. 

*Primerica does compensate agents when people sign up for this program, as with any of their products.  I am recommending this program because I have reviewed it, and I feel it is a very useful tool for consumers to effectively manage and reduce their debt, but it may not be the right thing for everyone, so I suggest they look at the website themselves and read up on it.

Wednesday, October 20, 2010

Michael Delaware wins 'Realtor of the Year' 2010 for Battle Creek Area Association of REALTORS®


Here I am with MAR 2010 President Bob Taylor at a special
luncheon held at the MAR State Convention & Expo on
September 29th, 2010 in Mt. Pleasant, Michigan.

I, Michael Delaware was honored with the 2010 ‘Realtor of the Year’ award from the Battle Creek Area Association of Realtors last week.  The announcement was made known to me a month earlier, so that I could be acknowledged alongside all the other Realtors of the Year from 43 other associations across Michigan at the State Convention and Expo in late September.
   
This achievement is not the first award I have received as a Realtor, but it is the most prestigious award my local association bestows.  It is given for ‘Outstanding service and contributions to the Real Estate Profession’ and is given to only one member each year.  I am proud and honored to have been selected to receive this award from my peers, and will endeavor to be live up to it. 


I was presented with the local award by the 2008 recipient
Mark Brown on October 13, 2010.

When I attended the State Convention, I had the honor of be photographed with the President of the Michigan Association of Realtors at a special luncheon.  I have included this photo here.  So this is truly a milestone for me to become the 2010 Realtor of the Year Award recipient for my Board of Realtors, and I really want to not only thank my colleagues for choosing me, but also my clients whom make my job so much fun.  I love my profession, and I love selling homes. 

Most importantly, I enjoy helping people become homeowners.  It is the constant fulfillment of the American Dream, and it is something I am proud to be a part of on a daily basis.  I hope that if you are reading this and are considering moving to the Battle Creek area, or if you live here and want to upgrade to becoming a homeowner, that you will give me a call.  I would love to work with you and help you achieve your dreams. 

I can be reached at: 269-441-8182 or through my website at: www.michaeldelaware.com.  I am Michael Delaware the 2010 ‘Realtor of the Year’ award recipient, for the Battle Creek Area Association of Realtors, and I like to help you find your home.

Sunday, October 17, 2010

Selling Your Home in Battle Creek

When it comes time for selling your home in Battle Creek, it is important that you choose a Realtor that not only is experienced, but one who also has an effective online marketing plan. 


Selling homes today requires the use of online marketing.

In today’s global internet based market place, many prospective homebuyers are looking for information online.  As someone who may be on the verge of selling your home in Battle Creek, you might ask the question ‘How many buyers are searching online for real estate?’  The numbers would stagger you. 

At the recent Michigan Association of Realtor Convention and Expo which I attended, statistics were covered in a presentation from the National Association of Realtors.  In 2005 the number of buyers looking for homes online was around 40%, today in 2010 that number has climbed to 90%. 


Working with a Realtor that has an online marketing plan is
the modern approach to selling your home in Battle Creek.

This is a vital piece of information to understand before you jump into the market selling your home in Battle Creek.  Not only are we dealing with a new generation of internet users, and seekers of information, you online presentation has to be effective. 

When I as a Realtor am working with you as a seller on selling your home in Battle Creek, my marketing plan includes not just placing it in printed media ads and on the Multiple Listing Service (MLS).  It also includes additional online marketing on my various blogs, social media and websites. 
My online marketing plan is comprehensive, and it creates additional exposure for your home online in places that new buyers are looking. 


Keep the inside clean and clutter-free, even if the home is
vacant.  This is vital when listing the home on the market.

Some other key tips that go hand in hand with a marketing plan include two basic areas, when selling your home in Battle Creek.  One, making sure you keep your home presentable at all times, and sometimes this involves hiring a professional ‘Stager’ to help you create the strongest presentation of the home. 

The number two item in selling your home in Battle Creek is making your home available for showings as often as possible, and even on short notice.  This would include making it available for open houses. 

Realize that a buyer who is coming to your home with a Realtor these days has already seen the information online.  They know the approximate room sizes, they have seen the photos, and they most likely have driven through the neighborhood. 

So for them to ask for a showing, they are truthfully 80% of the way there towards making an offer if they like the house once they tour it.  So this is important information to remember when selling your home in Battle Creek, as it is a new market these days. 

If you would like to reach me for a personal appointment on selling your home in Battle Creek, contact me through my website at: http://www.michaeldelaware.com/ or call me direct at 269-441-8182.  I look forward to answering any questions you might have.


Use a Realtor with a comprehensive online marketing plan to sell your home.