Investors Score High Yields for Older, Less-Expensive Rental Homes

Check out this new article by National Real Estate Investor. In this article they talk about rising rates in single family rental homes and how the percentage yield growth has risen significantly. It also discusses the importance of property location and the value and demand of older properties being used to affect your percentage yield.

http://nreionline.com/single-family-housing/investors-score-high-yields-older-less-expensive-rental-homes

Why should you consider investing in or buying rental properties?

Why should you consider investing in or buying rental properties you ask?

Our economy is forever changing. No one will ever be able to exactly predict where and when financial or economical pitfalls will occur. The one thing that has stood the test of time however is people will always need places to live.

As told by The New York Times in there recent article "The Nation's home ownership rate has been falling for eight years, down to 63.7 percent in the first quarter of this year from a peak of over 69 percent in 2004". Another words with home ownership falling that leaves a huge majority of people looking to rent rather than buy.

Being a rental property owner gives the freedom to have an investment they know will thrive even with changes in our economy. Many families are looking for more long term rental opportunities rather than moving form place to place.

Property owners can use this to there advantage and maintain a steady source of additional income by investing in properties that tenants find appealing. By investing in quality properties and tenants you are not only helping to make communities better but neighborhood property as well, and that's a win win for everyone.

Check out more on the New York Times article at: http://www.nytimes.com/2015/06/24/business/economy/more-americans-are-renting-and-paying-more-as-homeownership-falls.html

POMA Gives Back

POMA directors help the Evansville Christian Life Center prepare Thanksgiving meals that were served to the needy in our community

 

POMA made a donation to Toy Town and the Vanderburgh County Sheriff Christmas program "Shop with a Cop" 

 

 

POMA members hand out hot chocolate to the recipients at "Christmas In The Hood."

POMA made a donation to CAPE to help renters with utility assistance

POMA Speaks Out On Vectren Rate Increase

Consumers criticize Vectren 'fee' proposal at public hearing

By Susan Orr

Originally published 10:29 p.m., November 28, 2011
Updated 10:29 p.m., November 28, 2011

EVANSVILLE — The Vectren customers who spoke at a public hearing Monday night didn't have much bad to say about the utility company's planned upgrades at its Posey County power plant.

But many of the speakers were strongly opposed to Vectren's plan for paying for the work.

Earlier this fall, Vectren filed a request with the Indiana Utility Regulatory Commission to add a monthly charge of up to $1.08 per residential customer. That fee would pay for a $32 million project to upgrade the plant's turbine blades.

Vectren says the improvements, known as dense pack technology, will allow its Posey County plant to burn less coal while producing the same amount of electricity. And, the company says, because the plant will use less coal the reduced fuel costs will more than offset the additional fee, meaning that even with the fee customer bills will be reduced slightly.

Monday's hearing, attended by about 130 people plus members of the regulatory commission and attorneys, gave Vectren customers a chance to speak on the matter and have their comments included in the official case file.

Commission Chairman James Atterholt was present, as were commissioners Kari Bennett and David Ziegner. Two commissioners, Larry Landis and Carolene Mays, were absent.

Many who spoke said they oppose having Vectren's customers pay for the project.

Among numerous state and local elected officials who spoke was Rep. Gail Riecken, D-Evansville, who said her constituents are especially upset about this case because it comes on the heels of an increase in Vectren's electricity rates earlier this year.

"Vectren should be required to present alternative funding proposals ... I am sure there would be one less costly to consumers," Riecken told the utility commissioners.

Monte Fetter, president of the Property Owners and Managers Association of Evansville, called attention to the fact that Vectren's electric rates are among the state's highest.

Through his involvement with the Property Owners and Managers Association, Fetter said he is aware of cases in which renters' monthly utility costs exceed their monthly rent payments.

Fetter suggested that Vectren pay for the dense pack project out of its own pocket rather than asking its customers to do so.

"Give us a chance to heal from all the other increases that we've had in the past. We're still trying to catch up."

The Rev. Larry Rascoe, pastor of Nazarene Missionary Baptist Church, said his church maintains a fund to help people facing financial hardship. Utility costs are one of the top reasons people seek assistance from the fund, Rascoe said.

The pastor praised Vectren as a "great corporate community citizen," and he said he supports the company's ongoing efforts to operate more efficiently.

Customers too, Rascoe said, must do their part. One big issue, Rascoe said, is that so many local homes are not energy-efficient. Someone who lives in such a home, Rascoe said, will end up paying higher bills because of energy leakage.

"It doesn't matter what the (utility) rate is if the homes aren't weatherized," he said.

Another speaker, Donna Blanchard, said she finds it "ludicrous" that Vectren wants to add another fee to her monthly bill.

While acknowledging that her home needs energy-efficiency upgrades, Blanchard said she will be the one who bears the cost of those upgrades. She can't pass along these costs, Blanchard said, so why should Vectren pass along the cost of its project? "Vectren needs to find another way to finance this than to go and increase our rates," Blanchard said.

Monday's hearing was just one step in the regulatory process.

The Office of Utility Consumer Counselor, the state entity that represents utility customers' interests in regulatory matters, has until Dec. 15 to complete its file and file its testimony in the case. Vectren has until Jan. 6 to file rebuttal testimony, and an evidentiary hearing is set for Jan. 18 in Indianapolis.

Vectren customers still have a chance to make their voices heard.

Written comments may be submitted until Dec. 9. Comments can be submitted by email at uccinfo@oucc.in.gov; by mail to Consumer Services Staff, Indiana Office of Utility Consumer Counselor, 115 W. Washington St., Suite 1500 South, Indianapolis, IN 46204; or by fax to 317-232-5923.

 

WFIE - Vectren Customers Say No Rate Increases

 

Amended RRP Rule (Renovation, Repair and Painting)

In 2008, EPA issued the Renovation, Repair, and Painting (RRP) rule.  Since then, the rule has been amended several times, most significantly in May 2010 and in July 2011.  This message provides a summary of the most significant changes to the RRP rule.  The changes listed below are those most relevant to certified renovators and renovation firms (and, by extension, to the training providers who instruct them).  Our next message will include changes most relevant to the training providers themselves.  For more detailed information and a more complete set of changes, please refer to the rule and amendments at http://epa.gov/lead/pubs/rrp.htm.

Changes from the 2010 revision are effective now.  Changes from the 2011 revision will be effective as of October 5, 2011.

No “opt-out” provision (2010 revision)

• The opt-out provision (which allowed a renovation firm to “opt out” of the some of the RRP requirements where the firm obtained a certification from the owner-occupant of a residence that no child under age 6 or pregnant woman resides in the home and the home is not a child-occupied facility) has been removed and is no longer in effect. 

 Required information for owners and occupants (2010 revision)

• Renovation firms must provide a copy of records demonstrating compliance with the training and work practice requirements of the RRP rile to the owner and occupant of the housing, and operator of the child-occupied facility, in a short, easily-read checklist or other form.  A sample checklist for these items can be found at http://epa.gov/lead/pubs/samplechecklist.pdf, but firms may develop their own forms or checklists as long as all of the required information is included.

Paint chip sample collection and related records (for purposes of determining whether components are free of lead-based paint (as defined by statute)) (2011 revision)

• Starting on October 5, 2011, certified renovators may collect paint chip samples from components to be affected by a renovation as an alternative to using EPA-recognized test kits to test the paint, as previously allowed. If paint chip samples are taken, they must be sent to a laboratory recognized by NLLAP for analysis (see http://epa.gov/lead/pubs/nllaplist.pdf).  Prior to the effective date of the rule, EPA will be making information available to certified renovators on how to take paint chip samples.

• If paint chip samples are collected, those records (description of the components that were tested including their locations, name and address of the NLLAP-recognized entity performing the analysis, and results for each sample) must be prepared by a certified renovator and maintained for three years, as already required for other records.

Vertical containment (2011 revision)

• Vertical containment means a vertical barrier consisting of plastic sheeting or other impermeable material over scaffolding or a rigid frame, or an equivalent system of containing the work area.  Vertical containment is required for some exterior renovations but it may be used on any renovation.

Interior renovations

 • Renovation firms may erect vertical containment for interior renovations.  This allows renovation firms to erect vertical containment closer to the renovation activity than the minimum floor containment distance specified in the RRP rule, to give renovation firms more flexibility in designing effective containment strategies for particular work sites.

• Interior floor containment measures may stop at the edge of the vertical barrier when using a vertical containment system consisting of impermeable barriers that extend from the floor to the ceiling and are tightly sealed at joints with the floor, ceiling and walls.

             Exterior renovations

 • If the renovation will affect surfaces within 10 feet of the property line, the renovation firm must erect vertical containment or equivalent extra precautions in containing the work area to ensure that dust and debris from the renovation does not contaminate adjacent buildings or migrate to adjacent properties. Vertical containment or equivalent extra precautions in containing the work area may also be necessary in other situations in order to prevent contamination of other buildings, other areas of the property, or adjacent buildings or properties.

• In addition, renovation firms may erect vertical containment for other exterior renovations.  This allows renovation firms to erect vertical containment closer to the renovation activity than the minimum ground containment distance specified in the RRP rule, to give renovation firms more flexibility in designing effective containment strategies for particular work sites.

• Exterior ground containment measures may stop at the edge of the vertical barrier when using a vertical containment system.

HEPA vacuums (2011 revision)

• HEPA vacuum cleaners must be designed so that all the air drawn into the machine is expelled through the HEPA filter with none of the air leaking past it.  HEPA vacuums must be operated and maintained in accordance with manufacturer’s instructions.

• The use of machines designed to remove paint or other surface coatings through high speed operation such as sanding, grinding, power planing, using a needle gun, abrasive blasting, or sandblasting, is prohibited on painted surfaces unless such machines have shrouds or containment systems and are equipped with a HEPA vacuum attachment to collect dust and debris at the point of generation. Machines must be operated so that no visible dust or release of air occurs outside the shroud or containment system. 

 

POMA, UNOE, EAAR Host Community Forum to Address Meth Problem

Property Owners and Managers Association, United Neighborhood Organization of Evansville and Evansville Area Association of Realtors hosted a forum to educate the community of the growing meth problem and start the process of mobilizing leaders that will address the meth related issues. If you are interested in seeing what you can do, send an email to methzerotolerance@gmail.com.  Click on the links below to to watch the local news coverage of the forum.

WFIE - September 13, 2011 EVANSVILLE   The Evansville community is coming together to battle the growing meth problem.  Citizens, landlords, law enforcement officers, fire fighters, Vanderburgh County Health Department officials, and state representatives filled the CK Newcomb Center on Tuesday night.  Indiana State Police broke down the numbers at the meeting, and say it costs tax payers $1,500 for police to respond to a meth lab, and costs an estimated $11,000 in clean up for each lab.  Officials say the number of meth labs busted this year is already up 10-percent over last year.  Indiana State Police say last year was a record year for Indiana with 1,400 labs found.  Niki Crawford with ISP says, "Vanderburgh County was the number one county, with 95 lab seizures. We are not seeing a change in that trend, and Vanderburgh County is one of the counties that has the highest numbers of fire, explosions, and injuries."  Officials were not surprised by the number of individuals who came to the meeting, in fact, it ended up being standing room only.  Citizens learned what to look for, how police are tracking meth, and how state lawmakers are drafting a bill to make pseudoephedrine a prescription drug.  District 77 State Representative Gail Riecken says, "This is the way to solve the problem of safety and security for the families not only in these homes, but beside those homes."  The Vanderburgh County Sheriff's Office and the Evansville Police Department both currently have drug task forces.  You can voice any meth complaints online by visiting www.meth.in.gov.

WEHT - September 13, 2011 EVANSVILLE   Police are taking their war against meth to the community. Tuesday night, police and lawmakers held a public forum to discuss the problem and how to fix it.  The meeting served two purposes. It outlined how you can identify meth problems in your neighborhood, and a call to action went out as lawmakers get ready to push a bill to limit the sale of pseudoephedrine.  When it comes to Vanderburgh County's meth problem, the news isn't good.  Indiana State Police Sergeant Nikki Crawford says, "It's alarming and Vanderburgh County was the number one county last year with 95 seizures and we're not seeing a change in that trend down here.  "Cooking meth has evolved over the years. It used to take meth cooks hours to make a batch and ingredients were sometimes hard to come by.  But now, a meth cook can make their meth within a half hour with ingredients from the local drug store.  Crawford explains, "They can take one box of pills and turn that into meth so now, instead of cooking once a week, they're cooking every day, they're cooking two or three times a day.  "Now, Representative Gail Rieken, and other state lawmakers are pushing a bill to limit the sale of pseudoephedrine in the upcoming legislative session.  "Children are endangered in these situations. I think we really have not concentrated on our kids enough," said Rieken.  Kids of meth cooks aren't just in danger from an explosion.  "When you're manufacturing meth, it is releasing gas into the atmosphere that are poisonous to us at 50 parts per million," said Crawford. "These kids are living in that environment day in and day out."  Rieken said she hopes enough people will write or call their local state lawmakers to tell them they want to make pseudoephedrine prescription only.  We'll watch as the bill goes through the legislative process.

WTVW -September 13, 2011 EVANSVILLE  Community leaders held a brain storming session to discuss ways to battle methamphetamines.   The Zero Tolerance for Meth meeting was Tuesday evening at the CK Newsome Center.   The public was encouraged to attend and bring any ideas the had that would help take the drug and it's users off the streets.   One of the main topics of discussion was the re-scheduling of pseudoephedrine, one of the precursors for meth.   Everyone from law enforcement to politicians and candidates were in attendance.   State Senator Gail Reikan pointed out the need for more dialogue within the community.   The committee who organized the event says that by the end of July more than 70 meth labs had already been found in Vanderburgh County.   The evening was sponsored in part by POMA, the Property Owners and Managers Association, UNOE and EAAR.

Courier Press - September 14, 2011 EVANSVILLE   “Enough is enough,” Evansville Fire Chief Keith Jarboe declared to the more than 75 people attending a meeting with state and local law enforcement, fire officials and state legislators Tuesday evening to discuss how to combat the area’s growing problem with illicit meth labs.  “Today we make a stand. Today is the day we should all sign on to fight this,” the fire chief said, citing two deaths, two firefighter injuries and multiple meth-related fires that have occurred on his watch.  Indiana State Police teamed with local officials to discuss what they described as their “largest foe” in illegal drugs.  Officers encouraged those at the C.K. Newsome Center to support legislation they believe will give them the edge in combating an epidemic that is sweeping several states.  They want legislation to make the cold medicine pseudoephedrine, a key ingredient used in making meth, available only by prescription.  Through July, 832 meth labs had been seized this year in Indiana. That’s a number that’s projected to hit more than 1,450 labs for the entire year, according to state police data. In the record-breaking years of 2010 and 2009, 1,346 and 1,343 labs were seized, respectively.  In the first seven months of 2011 in Vanderburgh County, which led the state last year in lab seizures with 95, there have been 82 lab seizures. At that rate, the county is on track for 140 lab seizures.  Some legislators and Indiana State Police officials believe making pseudoephedrine a prescription drug will help tremendously, citing two states that have taken such action. Mississippi saw a 68 percent drop, and Oregon saw a 72 percent drop in meth labs seized in the first six months after passing such legislation.  At least one man raised the concern of the difficulty it would cause people who need such over-the-counter drugs, and Evansville Police Chief Brad Hill responded indirectly.  “Let’s be willing to take a little bit of difficulty on our part, for those of us who (legitimately) need pseudoephedrine so we can make it a lot harder for the guys who don’t need it legitimately.”  State representative Gail Riecken said she will be pushing for legislation in the next legislative session, and she said her biggest battle will likely come against the $600-million pseudoephedrine industry.  She said she would like voters to express their concerns to legislators, even if that means going to Indianapolis.  “Our county has the biggest problem,” she said, “so we need to have the largest presence.”

Landlords Learn How to Look for Meth

WTVW - Fox 7   April 9, 2011 EVANSVILLE  Fire fighters and police deal with the aftermath of meth lab explosions.  But who's left to clean up the mess afterward?  In many cases-- it's the landlord who's stuck with the bill.   The Property Owners And Manager's Association of Evansville started up last year, and already it has nearly 70 members representing more than 3,000 rental units.   Police say 9 out of 10 meth lab busts happen at rental properties.  "They need to be aware of what's going on at their rental property and that will protect them and the neighborhood the rest of our community and us," said drug task force Sgt. Scott Hurt.   Police say they filed more than 400 meth related charges in 2010-- an all time record that they are on pace to shatter in 2011.

 

Landlords Meet to Discuss Growing Meth Problem

WEHT - April 20, 2011

EVANSVILLE - After two meth lab explosions this month, a group of Evansville landlords come together to discuss the meth problem and how it affects them.  News 25's David shepherd has more on how these landlords are trying to keep their properties meth-free.

It's a problem we're seeing time and time again. A meth cook makes a mistake, causing an explosion.

It's a problem for landlords, and undercover detectives who see the aftermath of a meth cooking mistake.

Undercover Narcotics Detective:  "I deal with cocaine, marijuana, exactly, heroin, anything you can imagine. But the worst thing we're dealing with right now in Evansville is meth."

That undercover narcotics detective is with the Evansville police department's joint drug task force.

Given the sensitivity of his job, we can't identify him, but he warns meth cooks usually *rent*.

Undercover Narcotics Detective: "9 out of the 10 homes we go to are rentals. Almost all of the drug dealers' houses or the meth houses we go in to are rental homes."

But what if these so called meth cooks was renting from *you*? 

Monte Fetter/President, P.O.M.A.:  "The cost for cleaning up meth is huge. As slim as the profit margin is on rental properties, a meth lab can take a couple of years profit margin on that."

With the growing meth problem in Evansville and surrounding areas, many local landlords are putting their heads together to find out how to protect themselves, their properties, and other tenants.

Monte Fetter:  "P.O.M.A intends to make meth labs the focus over the next several months. We're looking for people to talk to and what we can do to get the tools to work with."

One idea the group already has is taking their efforts to the world wide web.

"The sex offender website has been a big success. We'd like to see a drug offender website where we can go and see and get quicker access to court documents."

But the internet can only get them so far.

"We want to find tools that screen better. We won't be able to locate these people sooner. We want to know who they are before we rent to them, not after."

This, as meth lab busts in Vanderburgh County could top last year's numbers... Numbers that put Vanderburgh County at the top of state last year for the number of busts.

Property managers get tips on spotting possible meth cookers

Courier and Press April 20, 2011

EVANSVILLE — In a Tuesday night presentation, Evansville Police Detective Mike Gray taught a group of rental property owners and managers how to spot a meth lab.

Any signs such as expended blister packs of cold medicine, opened cold packs or shredded batteries would warrant a call to the police Gray said.

"They will tear your property apart," Gray told the group of about 68 people at a Central Library meeting room. "You'll have the health department telling you to rip out all your carpet."

Gray's presentation was only one part of a seminar held by the Property Owners & Managers Association of Evansville.

Building Commissioner Benjamin Miller followed Gray's presentation with an explanation of the city's new rental property registry.

Those on the voluntary list will pay $10 per unit. If a tenant or neighbor files a claim with the city against a property, its landlord will be informally contacted.

Also, landlords will receive a license to do limited repairs on their properties that normally require a permit.

Miller said his office also will work with landlords who have a desire to bring their properties into compliance.

But those landlords who opt out of the registry will face tougher standards. Rather than paying $10 per unit, they will pay $100, he said.

By singling out the landlords who chose not to take part in the registry, the city can pinpoint those who may allow the presence of drug production, sales and use.

"This way, we're singling those bad ones out," Miller said.

Some property owners were cautiously optimistic of the registry. Rick Kissel said he was glad to see the progression.

"I think they're going in the right direction," Kissel said. "I think it's positive the city and the landlords are looking at this together."

Mike Wilson said he was reserved with mix feelings.

"There's an upshot in it and a down shot," Wilson said. "Sometimes you get mislabeled as a slumlord and that's not fair. These are our investments, and we put our hard earned money into them."

Wilson also said the city should look at ways to find tenants just as responsible as the property owner or manager.

City Moving Forward With Landlord Registry

WEHT News 25   April 11, 2011 EVANSVILLE

The city of Evansville is looking to improve its relationship with area landlords and help crack down on blighted properties.

Evansville City council voted to start the voluntary rental registry to identify landlords and property managers who are in compliance with city code and those who are not.

Monte Fetter has been in the rental business in Evansville for more than 20 years and says managing properties in this market can be tough.

"It's not a matter of mean landlords not fixing properties, it's an economic situation. They just don't have the cash."

He says over time expenses like property taxes have increased but rent has stayed the same.

At a cost of $10 per unit, he says there are benefits of registering your property with the city.

"With that you get a $3000 work permit for each unit. You get a limited license to do a lot of your own work on the property," says Fetter, President of Fetter Properties.

For the past year Fetter and other property managers have worked on improving their relationship with the city and code enforcement, even forming the Property Owners and Managers Association of Evansville.

Fetter says the registry will increase trust between the city and landlords.

"Our big benefit from this is it will give us a line of communication with property managers who we normally aren't in contact with," says Neighborhood Inspections Supervisor Ron Beane.

He says when a bank forecloses on a property it often hires a management company to oversee the property. When maintenance issues come up, inspectors only know to send notification to the bank which could take several days. He says it could impose even more violations if there is a time limit on repairs.

He says the registry will speed up communication.

"We want to improve the housing stock for the city of Evansville. We wanted to improve the condition of homes that people are living in," says Beane.

He says the registry will make that possible.

Landlords can sign up for the registry on May 16th at the Building Commission Office.

In the meantime, Fetter encourages landlords to attend the next association meeting, Tuesday April 19th at 6:30 p.m. at the Central Library.