THE

APARTMENT NEWS

Apartment Association Of Northwestern Pennsylvania, Inc.

1127 West 38th St. Erie, PA 16508 | (814)866-7414 | Fax: (814) 866-2732

Open Mon-Fri 9:30 am to 5:00 pm | office@aptassoc.com | www.aptassoc.com

WE ARE 1,600 STRONG — REPRESENTING 19,900 RENTAL UNITS

November 2014

Inside The Newsletter

Page 2 | Board Members

Page 3 | 14 Tips to Reduce

Your Chance of

Being a Victim

Page 4 | How to Handle

Rogue Tenants and

Long-term Guests

Page 5 | New Members

Page 6 | What the Howell

Case Means for Erie

Landlords

Page 9 | For Sale By Owner

Page 10 | A Change in You

Page 12 | Carbon Monoxide

Deals

Page 14 | Top 5 Must - Haves

for Flipping Houses

Back | Dinner Meeting

Cover Registration From

PRESIDENT’S MESSAGE By Joel Miller

The good news is that the PA Supreme Court has refused to hear the city’s appeal of the favorable court decision handed down to one of our members (Lance Howell) regarding his appeal of the city’s attempt to shut down one of his rental units. The city had attempted to force him to make expensive structural alterations to bring the unit in compliance with modern building codes that were not in force when his structure was built. A local judge had agreed that this was OK, but that decision was shot down by a unanimous decision by a higher court when Lance appealed. By not agreeing to take on the city’s appeal, the PA Supreme Court effectively ended the case. Essentially, this means that there is now case law that supports the position that an owner of property cannot be forced to make such changes to structures built before the municipality in which that property is located actually officially adopted a more modern building code. In our case, that means when the City of Erie adopted the Uniform Construction Code on July 8, 2004.

The bad news is only that at this writing I cannot report to you just exactly what changes the city will be making to its enforcement of its rental property inspection program. Continued on page 2

Upcoming Meetings

Christmas Party December 10th

Chili Party January 22nd

The Importance of Tenant Screening

Tenant screening is one of the most vital management duties that a property manager can perform. Yet, very little has been said about the specific process of how to screen your prospects. The only difference between owning a liability and owning an asset is ensuring that you have a solid income stream. Learn how to read credit reports, how to establish written screening criteria and learn how fair housing and screening tie together. Don’t make yourself a target.

Reservation deadline is November 17, 2014 Reservations are required and that form is on the back cover

HOLIDAY SCHEDULE

Office will be closed:

November 27 & 28

December 24, 25 & 26

January 1st & 2nd

Thursday, November 20, 2014

Nunzi’s Place 2330 Est 38th Street, Erie, PA

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

Page 2

This publication is designed to provide informative material of interest to its readers. It is distributed with the understanding that it does not constitute legal, accounting, or other professional advice. Although the published material is intended to be accurate, neither we nor any other party will assume liability for loss or damage as a result of reliance on this material. Appropriate legal or accounting advice or other expert assistance should be sought from a competent professional.

But it will have to make some changes, and we will report those to you as they become known. The city is still examining what it can require regarding what the inspectors would consider to be health and safety issues related to the physical structure of any given unit, but it appears that they can no longer ask for alter-ations simply because something doesn’t conform to the current UCC. On other matters: Keep being a “cheerleader” for the Apartment Association. YOU belong, so EVERY landlord should

belong! Get your $10 for referring new members. Use www.aptassoc.com and post your vacancies there with photos for FREE! Call the office for suggestions for guest speakers at our monthly dinner meetings. Use the National REIA benefits that are yours through your membership in the Apartment

Association…particularly the 2% rebate on your Home Depot purchases (You must register for this, so call the office if you need to know how.), deep discounts on Sherwin Williams Paint products (show your discount card) and OfficeMax discounts (show your National REIA card available for download from www.NationalREIA.com in the members section or at the Apartment Association office).

Take our Landlord 101 class or one of our one-day workshops. Pay your delinquent City of Erie garbage fees if you have any. Consider being on the Apartment Association board. Just submit your real estate experience

resume to the office anytime. COME TO OUR MONTHLY MEMBERSHIP DINNER MEETINGS!

CONGRATULATIONS

Joel Miller—President Jason Pero—Vice-President

Joanne Hulick—Treasurer Kathie Kreider—Secretary

who have been re-elected to another one year term as your

board officers.

Joanne Hulick, Lewis Baldwin, Dorothy Butula,

Jason Pero, and Jerry Ricci have been re-elected to

another three year term on the Association board.

We welcome Robert Sesler as our

newest board member!

Remaining board members: Ray Andel, John Baldwin, Debra Fries

Mike Shugerts, Bob Vavreck, Kathie Kreider, and Joel Miller

Page 3

Beginning October 1st, the Association staff will

upload pictures to the website for members who do not have

internet access. The cost is $5. Your ads will attract more

prospective tenants when they have pictures to look at while

apartment shopping.

Call the office at 814.866.7414 for details

14 TIPS FOR LANDLORDS TO REDUCE CHANCES OF BEING

A VICTIM WHEN SHOWING PROPERTY

mrLandlord.com

You may have read or seen the news account about the Realtor who was found dead a couple days after last known to be showing a property. This story which received national attention has been a Wake-Up call for many landlords, property managers and Realtors. Many have vowed to change their business practices. We must take precautions, stay alert and do not presume prospective customers pose no threat.

According to the suspect, the Realtor was targeted because she was "a woman that worked alone" and gave the appearance that "she was a rich broker."

Here are tips to greatly reduce the chances that you will be a victim when showing a property"

Never show a house alone.

In some areas crime goes up after 3pm, young punks get out of school and dead beats wake up. Try to schedule showings or work before 3pm if it is a rougher area.

Carry something for protection, for example key chain pepper spray or a taser (state laws vary).

Put up signs so people to know audio and video of the encounter are being recorded (Moreso for deterrence)

Use a firearm only if you have training and a good amount of practice using it.

S e l f - d e f e n s e a n d situational awareness training.

I would also suggest driving a junker/beater and not wearing expensive clothing

Screen, screen, screen, BEFORE ever meeting a potential resident. For example, search the internet and Facebook before you even meet someone.

Always present yourself as the "manager" not the owner. Managers are working stiffs, just like everyone else. Owners are rich targets to take out frustrations.

Tenants, applicants, service persons do NOT know my home address. I email them applications and meet them in public places to pick up the fee, or they email me the app and deposit the rent at my bank. Invoices are emailed to me and paid online.

As much as possible, keep the Interaction outside on the front porch (in public view).

No one ever stands between you and the door or first floor window.

Displaying a physically fit image deters those who prey upon those they consider "weak".

Only hold "open houses" with several prospective renters coming to the showing at the same time.

Page 4

How to Handle Rogue

Tenants and

Long-Term Guests By Lucas Hall

Anyone living in my rental property, who is legally an

adult, must be listed on and sign the lease. It’s a simple

rule that I always follow, and it has never steered me

wrong.

Rogue Tenants This is going to sound harsh, but I don’t really care if it’s

just a college kid, home for the summer, or an elderly

woman who’s moving back in with her daughter. I’ve

heard all the excuses in the book, but it all comes downs to

liability and my ability to collect rent. I refer to long-term

guests as “rogue tenants.” Rogue tenants are individuals

who have taken up residence in my property without

approval or permission, and perhaps even changed their

mailing address to receive mail at my rental property.

Liability and Accountability If they are not on the lease, then they are not subject to the

terms and conditions therein, and I cannot hold them

accountable for rent. That’s a big problem.

Most of the time, they move in under the assumption that

they are only going to be visiting for a week or two.

Before you know it, they have been living there for five

months, never having received prior approval. They think

of themselves as “long-term guests”. Unfortunately, the

words “long-term” and “guest” are contradictory. Rogue

tenants are not necessarily bad, they just need to be

documented and accountable to the terms of the lease.

After all, I do want my tenants to be happy.

Whenever this situation arises, my answer is always the

same: “If you are an adult, living in my property, I need to

know who you are (which is why you need to fill out an

application) and that you will be jointly and severally

liable for rent and damages (which is why you sign a

lease).”

I believe that if I treat my tenants like adults, they will

behave as such. To accomplish this, I use a rock-solid

lease, and stick to it. The moment I deviate from enforcing

any part of the lease, I set a precedent that I will waive

other lease terms, such as late fees or eviction.

In my lease, I use a clause entitled “Use of Premises” to

limit the number of people allowed to occupy the dwelling

and to explain the difference between a tenant and a guest:

USE OF PREMISES:

The Premises shall be used and occupied by Tenant(s), for

no more than FIVE (5) persons

exclusively, as a private

individual dwelling, and no part

of the Premises shall be used at

any time during the term of this

Agreement by Tenant(s) for the

purpose of carrying on any

business, profession, or trade of

any kind, or for any purpose

other than private dwelling.

Tenant(s) shall not allow any other person, other than

Tenant’s immediate family or transient relatives and

friends who are guests of Tenant(s), to use or occupy the

Premises without first obtaining Landlord’s written

consent to such use. Any guest staying in the property

more than 2 weeks in any 6 month period will be

considered a tenant, rather than a guest, and must be

added in the lease agreement. Landlord may also

increase the rent at any such time that a new tenant is

added to the lease or premise.

Tenant(s) and guest(s) shall comply with any and all laws,

ordinances, rules and orders of any and all governmental

or quasi-governmental authorities affecting the cleanli-

ness, use, occupancy and preservation of the Premises.

As you can imagine, some tenants want to hide their guests

simply because they don’t want me to raise the rent. In

fact, I rarely ever raise the rent when a college kid comes

home, but I want to option to do so, just in case my

individual tenant suddenly decides to move in seven

extended family members.

Refusal to Sign If a rogue tenant or long-term guests refuse to sign the

lease, I have the option to terminate the lease, based on the

original tenant’s violation of the provision listed above.

The main purpose is not to raise the rent, but rather to have

everyone accounted for and liable for the rent in case the

original tenants abandon the lease. Most tenants (rogue or

otherwise) usually comply with signing the lease,

especially if there is no extra expense.

Common Examples of Rogue Tenants

College Kids

SITUATION: Empty-nesters often want to downsize, so

they sell their house and move into my rental. Then, their

youngest either drops out of school and moves back in, or

simply comes home for the summer.

MY RESPONSE: As long as this does not violate any

county occupancy ordinances, or increase utility usage that

I pay for, I simply create a lease addendum that adds the

additional occupant to the lease, by name, and then I have

everyone sign it.

Page 5

WELCOME NEW MEMBERS WELCOME

Patty Ann Evans • Paul Jazenski • EJ Johns • Beaton Properties, LLC

Jon B. Hamilton • Penny Hanes • D & D Property Partners, LLC • Jeremy Cannell

Harry Bovee • Sajaad Al-Dhumani • Shawn and Darryl Crosby • GSA Real Estates, LLC

Levis Rentals • Perry Keys • Ryan Mosher • Amy Fuchs • Ray & Tammy Confer

Sandra Mizikowski • Julie Abele • Kristine Evankovich • Ginean Rapp • Allen Casey

We look forward to seeing each of you at our meetings and hope you will make many new friends. Please take advantage of the networking opportunities before & after the meetings.

You may learn something or teach something to someone.

Sick or Elderly Parents

SITUATION: An elderly parent takes a bad fall and now

needs regular assistance. The children (my tenants)

quickly volunteer to take mom in, without considering

either the landlord or the lease.

MY RESPONSE: Because mom is at higher risk of

accidents and injury, I especially want to make sure she

signs the lease, not so much for the rent collection aspect,

but just so she acknowledges her responsibility to obtain

her own renter’s liability and medical insurance. The sad

truth is that landlords can be held responsible for the

personal injuries of tenants, but some of that risk is

mitigated if they sign a lease. Again, as long as this

doesn’t violate any county occupancy ordinances, I think

family should help each other and stick together.

Single-Income Couple

SITUATION: Sometimes a couple will want to rent my

unit together, but only one of them has an income. They

assume that only the person who is qualifying for the lease

needs to be listed.

MY RESPONSE: I’m all for true love, but I’m not stupid.

Even though the couple might qualify based solely on one

income, I still need both individuals to fill out separate

applications and sign the lease, because they are both

occupants. This protects my rental income if the couple

breaks up or gets divorced.

The Perpetual Overnight Boyfriend of Girlfriend

SITUATION: Three days after your new tenant moves in,

the neighbors call and say “I thought you only had one

new tenant?!?” When you approach your tenant, she says,

“Oh, that’s just my boyfriend. He was fired from DQ, and

doesn’t have any money, so he’s staying with me until he

can get on his feet.“

MY RESPONSE: In response, I simply point to the lease

and say, “That’s fine, but if it’s more than two weeks, I’ll

need him to fill out an application and sign the lease.“

The Forbidden Sublet

SITUATION: If subletting is prohibited in the lease, or if

there is an extra fee involved, sometimes tenants will try

to hide their subletter. Sometimes jobs change, or they

need to leave, but they don’t want to pay the early

termination fee or the subletting fee.

MY RESPONSE: If I learn that a subletter has moved in

without my approval, I usually just require them to pay the

one-time subletting fee (mentioned in the lease), under

threat of a lease violation and subsequent termination.

However, if the subletter wants to live there for a while, I

might try to release the old tenant, and sign a new lease

with the subletter (who then becomes the leasee).

Therefore, I sign a longer tenancy, the original tenant is

released, the new tenant doesn’t have to hide from me.

Everyone is happy.

HAPPY HARVEST

Page 6

John P. Dubowski, CPA

Apartment Association Member

INCOME TAX PREPARATION INDIVIDUAL PARTNERSHIP, CORPORATE

9710 Peach St. Waterford, PA 16441

(814) 679-9033

We make evening appointments for busy people.

You’ll feel good about our relationship.

What the Howell Case

Means for Erie Landlords

By Bradley S. Dornish, Esq. and Jack P. Bock, Esq.

Since the commencement of the City of Erie’s rental

registration program, one of the chief complaints of

landlords has been the uncertainty which they faced

when confronted with the inspection itself. In

particular, numerous reports have been received of

BIU inspectors issuing citations for incidental or

trivial violations, without any proper reference to an

applicable code citation, or a reference to the wrong

code citation. There have also been incidents of

citations for items in older buildings based on

standards which were not in effect when the buildings

were built, as well as some for aesthetic reasons.

Whether these practices of “code creep” have arisen

from a lack of knowledge on the part of the BIU

personnel, or is part of a pattern of deliberate

program, has been a matter of debate. More

importantly, however, has been the out-of-pocket cost

to individual landlords when they have been forced to

appeal the citations, and have encountered either

resistance or apathy from the appeals board with

respect to errors in the inspectors’ findings.

Fortunately for landlords in the City of Erie, the

efforts of one of their number have recently

brightened the future prospects for reigning in the

excesses of the BIU inspectors. Mr. Lance Howell

owns a two-family residential home at 3009

Glenwood Park Avenue, Erie, PA.

Continued on page 7

Help Prevent Fraud

Request to see the applicant's social secu-

rity card and drivers license for positive

identification. Take a picture of both with

your smart phone and email them to

yourself for your files.

Visit us today at

www.aptassoc.com

HAVE YOU ATTENDED A DINNER MEETING LATELY?

Page 7

Continued from page 6

In June 2012, he filed for residential rental

registration with the City of Erie, which led to an

inspection. Subsequently, the inspector issued

Howell a notice of violation indicating the following:

"Fire & Life Safety; Means of Egress; Interior Stair-

60 inches at the top landing and 57-69 at the middle

landing.” The notice also provided that a

re-inspection was scheduled in approximately thirty

days and that a re-inspection "indicated that

significant code violation(s) were observed and

documented." Although the inspector did not specify

the provision at issue, Section 1503.21(a)(7)(C)(5) of

the Uniform Construction Code sets forth an

eighty-inch staircase headroom requirement. Mr.

Howell appealed the citation, arguing that the UCC

did not apply to his property because he had not made

any changes to the structure since prior to 2004, when

the Code was adopted. The Board subsequently

denied Howell's appeal, and he appealed to the Court

of Common Pleas. The Court of Common Pleas

considered his appeal and affirmed the decision of the

Board. Mr. Howell then appealed again to the

Commonwealth Court, which hears appeals in cases

involving municipal ordinances. Recently, the

Commonwealth Court ruled in Mr. Howell’s favor,

and overturned the citation on the grounds that the

UCC did not apply, and thus the BIU inspector

exceeded his authority by applying it to the property.

The Supreme Court declined to review the decision,

and now the Commonwealth Court’s opinion is

settled law.

After reviewing the testimony and records from both

the appeals board and the lower court, the

Commonwealth Court found that because Mr. Howell

had not made any recently alterations to his property,

that he could not be held to the exacting standards

required by the UCC for new construction, absent a

showing by the City that the actual conditions

constituted a fire hazard. The Court noted that “the

UCC's scope provision provides that it ‘applies to the

construction, alteration, repair, movement, equipment,

removal, demolition, location, maintenance,

occupancy or change of occupancy of every building

or structure which occurs on or after July 8, 2004, and

all existing structures that are not legally occupied.’"

The Court also noted that Section 1026.1 of the

International Fire Code states that “egress [in existing

buildings] conforming to the requirements of the

building code under which they were constructed

shall be considered as complying means of egress if,

in the opinion of the fire code official, they do not

constitute a distinct hazard to life.” Thus, older

properties do not have to be reconstructed in order to

meet safety requirements. The Court also found that

the City did not establish that a staircase less than

eighty inches in height constituted a fire hazard, per

se, or a distinct hazard to life.

In overruling the City’s arguments to the contrary, the

Court stated that “To construe that the [UCC] "applies

to ... occupancy after July 8, 2004" to include any

unchanged continuation of lawful occupancy after

that date would mean that all homeowners residing in

older properties which did not meet the modern

requirements of the UCC would have to retrofit their

homes by July 8, 2004, no matter the cost, even if the

homes were perfectly safe and lawful on July 7. We

believe that would be an absurd result, if not an

uncompensated taking, not intended by the General

Assembly. Accordingly, we conclude that the UCC

does not apply to Howell's property and that,

therefore, there was no need for him to seek a

variance from an inapplicable requirement.”

For other landlords in the City of Erie, the effect of

this ruling is significant. Although they must

continue for now to submit to the BIU inspections,

the Howell case establishes that BIU cannot legally

hold property owners accountable for minor, non-

critical differences between the newer code

requirements and the actual characteristics of

their property, nor force them to undertake

significant construction expenses to change them.

Landlords must continue to be vigilant, and

question any citation received from BIU as to the

underlying basis of the violations. If discrepancies

are found, they should be brought to the attention

of the Association, and further appeals may be

warranted.

The author, Bradley S. Dornish is a licensed attorney, title insurance agent and real estate instructor in Pennsylvania.

Page 8

DO WE HAVE YOUR CURRENT E-MAIL ADDRESS?

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

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

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

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

LANDLORDS,

BE DISCREET

Landlords, remember, the information

that you receive from our office is for

your eyes only, and is not to be passed

along to the tenant. If a tenant doesn’t

meet your criteria because of the credit

report that you received from our office,

you CANNOT give them the credit

report, but you can give them the 800

number at the end of the report. They can

call that number and get a free copy of

their report because they were rejected as

a result of their credit.

Please do not tell them that the

Apartment Association won’t let you

rent to them or to call our office.

VIDEO RECORDING AND PICTURES CAN REDUCE DISPUTES

Pictures speak a thousand words!

Reduce disputes with tenants by video recording or photographing

the unit’s condition before move-in and after move-out. If you do this

when the unit is vacant, the tenant cannot claim his or her

privacy was invaded.

When move-out is completed, repeat the process again and obtain

evidence of any damage that occurred during the occupancy

of the affected tenant.

Page 9

WATERFORD — 2282 Strong Rd. Single Family Ranch Built 1985.

1344 sq.ft. 3 BD, 2 BA, Full 8’ basement drive in ramp from garage on

6 Acre with Pond. Close to 3 Golf courses & State Game Lands. Needs

Rehab (cosmetic). Should retail at $149,000. or rent for $1200/mo.

Asking $84,000. Call Gwem 814.969.3166.

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

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

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

FAIRVIEW — Unique 11-unit multi-family residential rental proper-

ty in prime location on W. Ridge Rd. Excellent rental history (many

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

drive to newer units (5) in rear (2 have wood-burning fireplaces and

cathedral ceilings). Owner may carry part of mortgage.

Call 814.835.1396.

/ERIE — 2644 Hazel Street - 3 unit apartment. Property consists

of a 2-unit flat and a single family home. Currently 2/3 occupied.

Great income and rental history. Full occupancy $1,525/mo.

$78,000. Call 814.490.3594 (evenings)

ERIE — 74 Orchard Street. Two unit unfurnished flat. Each

unit has 2 BD, BA, LR, DR, and Kitchen with refrigerator and

gas stove. W&D hookups. Second floor porch. 1 car garage and

off street parking. $87,500. Call 814.825.8506

ERIE —Single family house 1320sf. 3BD, 1BA, new roof,

soffit, fascia, gutter, vinyl windows, plumbing, carpet, and

paint. Updated electric & inspected. Good Eastside location.

Move-in ready. $47,500. Call Tom 814.836.5999

ERIE —751 East 7th Street. 2 Unit Flat, each unit has 2 BD,

LR, DR, KIT. Rent is $425 for each apt and both currently are

rented. $31,900. Call 814.450.9991

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

unit has 2 BD, BA, LR, DR, and KIT with refrig and gas stove. W&D

hookups. Off street parking. 2nd floor has deck and 2 addl rooms on

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

814.825.8506

TITUSVILLE —13433 Park East Road. Mobile Home Park. North of

Titusville on Rt 8. 25 lots rented with 5 homes. Park can expand up to

42 lots. Gross Income $95,000, NOI $40,000. Turn key business with

homes and equipment. $340,000. Check the Apartment Association

website for more information.

Call Tom at 814.923.4399

SAEGERTOWN—Commercial Building, Main Street, 7 unit

office space, 1 unit office or residential. $225,000.

Call 814.720.7766

WESLEYVILLE—2052 Station Road. 2-unit flat. Downstairs has 2-

3 BR, LR, DR, and KIT. Upstairs has 1-2 BR, LR, KIT. 3 car detached

garage, off street parking. New roof, gutters, siding, and porches.

Good rental history. $94,900.

Call Cliff or Patty 814.898.0134

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Page 10

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A CHANGE IN YOU By Chad Hymas

It is family day. The six of us pack up and head for the fairgrounds. The State Fair attracts folks from all around, including many local homeless - and those passing for homeless - looking for a handout.

They stake out strategic locations at the entrance and exit of the fairgrounds. From there, they catch the attention - and hopefully the sympathies - of the crowd with their cardboard signs.

Some are designed to tug at your heart: "Homeless and pregnant, please help."

"Veteran. Need medicine."

"Anything is a Blessing."

Some are clever and funny: "Need cash for alcohol research."

"I'll bet you $1 you'll read this sign."

Each of them has some kind of container - usually a used plastic soda cup or a tin can - into which passersby can drop their contributions. Most are dressed shabbily. Some have shopping carts loaded with all their earthly possessions.

I think to myself "Why would anyone burden themselves by dragging around all their junk?" I do not realize, at the time, that I may well be doing the same thing.

A couple of them are playing instruments - one, a harmonica, another, a flute. As we enter the fair, we pass close by one of them. My family does, that is. I keep my distance. I push my wheelchair forward, studying the pavement carefully to avoid eye contact. "Come on," I mumble, trying to keep my family moving and avoid interaction with these people. I move ahead.

The leader in these situations must move forward, thereby inspiring his team to pick up the pace, right?

My son, picks up his pace, too, but apparently, he didn't get the memo. He catches up to me and asks, "Dad, can I have five dollars?" I push my chair faster, ignoring my son's request. He repeats, "Dad, can I have five dollars?" Again, my response is to not respond.

Once we get past these homeless folk, I stop to talk with him. Using my senior executive wisdom, I will help him understand a bit more about life. "Son, these people just sit around all day asking people for money. That’s what they do for a living."

He retorts, "Dad, don't you just sit in your chair all day long and make a living? Dad, you owe me five bucks, remember, for good grades. Can I please have my five dollars now?" I give in. This boy is going to head up my marketing team in a few years. I am sure of it. "Okay, here's your five bucks."

I count out five ones; because I know he wants to give a dollar to the man we passed. He runs back and puts it in the man's tin cup. Not just a dollar - the entire five bucks! Before I can impart more wisdom to him, his brother politely says, "Dad, you owe me five bucks, too. May I please have it?"

My protest is slight and my somewhat shorter lecture is listened to, and equally ignored. Shondell is not saying a word. Reluctantly, I give him the five dollars I owe him - five one-dollar bills so he can give one or two to the homeless fellow. Surely, he won't give all his worldly wealth to the poor. I am forgetting that his name is actually "Christian."

Christian follows his brother's example. He walks over and gives the homeless fellow all five bills. The man, grateful for his good fortune, stops playing his harmonica long enough to voice a humble, "Thank you."

My sweet little Gracee, seeing what her big brothers are doing, tugs on my sleeve, "Dad, my room is clean. Can I have five dollars, too?" I am a beaten man. Still

Page 11

no help from Shondell and there is nothing left of me. No pride at all, just a quickly deflating wallet.

Without a word, I take out another five-dollar bill and put it into my daughter's hand. Short-lived in her tiny grasp, it goes right into the man's cup. In less than fifteen minutes, this man has acquired fifteen bucks from our little company. He is now a professional musician in a whole other tax bracket, thanks to the generosity and kindness of my children - and their willingness to muscle past my prejudice.

It is a wonderful family day. We wander freely about the fairgrounds. We follow the crowds through the farm exhibits, check out the blue ribbon lambs and pigs, and pet the sheep and baby goats.

We play the games, winning nothing but a good time. We ride the rides, consume hot dogs and fizzy soda and get pink cotton candy sticky-ness all over everything.

It is a great time, but my mind keeps wandering back to the harmonica man and his apparently destitute comrades, each holding down their own little corner at the gates to the fair like the beggar, Lazarus, at the rich man's gates.

As slowly as the illumination of the rising sun lights the world before the dawn, I get it. It dawns on me that the things that I am teaching and preaching to others are now being taught to me by my executive team. Some of these folks may be conning us, but who are we to judge?

What about the man who seems down on his luck and is playing a harmonica or flute to entertain the crowds in hopes of gaining financial support? He is doing something. He is entertaining us. Who am I to judge him?

I am fairly certain that some people judge me. How many, do you suppose, glance sideways at my emaciated body slumped in a wheelchair and assume

I am a drain on society? Perhaps they look on me with pity. Maybe they feel that the world would be better off without people like me.

It is a sobering thought.

As we leave the fair that evening, we see the same gentleman, sitting in the same spot, playing the same tune on his harmonica. It has been a long day. He is still at work getting the job done. My executive team looks at me. I am way ahead of them. Even a CEO can learn!

I say, "Why don't we get him something to eat before we leave?" There's a Burger King across the way. I pull out a twenty dollar bill and tell the boys to go get him a hamburger and shake and bring back my change. Of course, there is no change. They spend it all. They bring back enough food to last the man a week.

We drive home in silence. The kids are asleep in the back of the van. Shondell sits quietly beside me with a funny little smile on her face. I am not saying anything, either. What a difference a day makes - especially when you have an executive team like mine.

By the way, I misspoke. I said there was no change. In fact, there was change - in me. Doing things differently starts with seeing things differently - challenging our perceptions and re-examining our assumptions. My team helps me do that every day - especially my kids. My team ROCKS!

In the spirit of Thanksgiving and Christmas right around the corner, maybe we could all judge a little less and give a little more. If you give up your spare change, perhaps you may see a change as well. Think of all those spending Thanksgiving at the shelter, on the streets, or simply alone. You have so much to be thankful for!

Until next time BELIEVE you can fly!

Page 12

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

3205 FRENCH ST- 2 unit on double lot. Walking distance to VA Hospital &

Mercyhurst U. Long term tenants. Separate utilities. 4 car garage w/ separate bays

provides extra income @$50/mo./unit. 37615. $84,900. Ortrud Torti, 450-0851.

319 WEST 5TH ST - Nicely updated 4 unit near Gannon, downtown Erie & the

Bayfront. Great for student housing. Off street parking. Deep yard. 37197. $169,000.

Cherie Bishop, 806-4571.

725 WEST 4TH ST - 2 unit priced to sell! Demo has been started. 4 parking spaces.

39751. $12,500. Patty Eckert, 392-3955

2001 RASPBERRY ST - 1,215 SF single unit. 3 bedrooms. Remolded kitchen, newer

roof, and electric. 38348. $37,500. Robert Maxson, 504-3862.

12 SUMMIT ST - 2 unit, well maintained in the heart of Erie. Natural woodwork

throughout. Separate utilities. Fully occupied. $84,900. Melanie Geci, 528-2796.

Exclusive offer for Apartment Association Members First Alert Carbon Monoxide Alarms @ $13.00 each

Apartment Association members may purchase First Alert carbon monoxide alarms at the

ProServices desk at Lowes, 2305 Asbury Rd. Erie, PA for $13.00 each, plus tax.

Conditions:

1. This offer is only valid for actual current Apartment Association of Northwestern

Pennsylvania members to purchase the alarms in person from Tyler Webb or Sean Geary at

the Asbury Rd. Lowes ProServices desk. This offer is non-transferrable and members may

not give the coupon / email to a non-member to make a purchase.

2. Members must present this email coupon along with their photo ID, and must certify

that they are a current member of the Apartment Association of Northwestern Pennsylvania.

3. Members must call or email Tyler Webb or Sean Geary in advance in order to schedule a

time to see him for the purchase. This is necessary in order to confirm that Sean will be

available and there are enough alarms currently in stock.

Contact Information: Tyler Webb: Ty.webb_lowes@yahoo.com (814) 833-1023

Sean Geary: seandanielgeary@yahoo.com (814) 833-1023

Offer expires December 19, 2014

Home Depot offers quantity discounts to anyone wishing to purchase Carbon Monoxide detectors there. Inquire at the Home Depot Pro desk.

Page 13

National REIA

Member Benefits

Since our association recently teamed up with National REIA, we wanted to highlight a few of the member benefits that are now available to you. To access most of these benefits, you will need to establish an account on their website, www.nationalreia.com.

• Sherwin Williams—The Apartment Association

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

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

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

• Office Max/Office Depot—Receive Office Max

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

• Avis/Budget Car Rentals—You can receive a

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

• The National REIA Shipping Program—

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

• Local Market Monitor—National REIA members

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

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

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

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

Credentialing Deadline

As you know, each of our members who plan to continue to run credit reports through our organization must be credentialed.

If you did not turn in your application prior to June 1st, 2014, you will need to pay your credentialing fee, turn in all necessary documents, and pass your inspection before we will be able to process any credit reports for you. This will apply to new members as well as existing members. The whole process of being inspected and approved could take about 2 weeks.

If you move your office, you will have to be re-inspected. Contact the office with your new office address. Re-inspection fee is $40.00.

The office staff is available to answer any questions that you have to help you understand the process and the documentation that is required. Do not hesitate to call the office at 814.866.7414 with any questions.

Page 14

Top 5 Must-Haves For

Flipping Houses By Glenn Curtis, Investopedia.com

Many people assume that they can simply buy a house,

apply a fresh coat of paint, trim some bushes, and then

resell the home at a profit. Unfortunately, this process,

called "flipping" is not that easy. After all, if it were,

everyone would be doing it.

There are several skills and people that every potential

investor/flipper should have in place before even

considering entering into a real estate transaction of this

nature. In this article we'll look at the top five "must-haves"

you'll need to succeed in this endeavor.

1. A Group of Experts

While a house flipper can certainly go it alone, it will

certainly help to retain individuals that are familiar with the

legal, accounting and construction ramifications of flipping

houses.

Flippers typically work against the clock, so they must

renovate a home on budget and then turn it around and sell

it before the financing costs eat up their profits. In any

case, a bevy of experts including a real estate agent, an

attorney, a contractor or renovator, an accountant, a home

inspector and an insurance agent can ensure that the work

is completed in a timely and efficient manner.

2. A Handyman or Knack for Home Improvement

The house flippers that make the most money buying and

selling homes tend to be handy people. That is, they have

the ability to step in and lend a helping hand when time or

money constraints kick in. Most flippers can do things like

change a sink, install a countertop, do basic electrical or

plumbing work, and/or shingle a roof.

Why is being handy so important?

The obvious answer is that if you can do the work yourself,

you won't have to pay someone to come in and do it.

However, there are other advantages to being handy as

well. For example, there are times when it will be

impossible to get an electrician to install an attic fan on

short notice. There are also times when a job must be

completed without warning at the last second in order to

obtain a certificate of occupancy. In these instances, having

the ability to navigate your way around a tool box is very

valuable.

3. A Good Lay of the Land

The buyer should know about the area in which they are

buying property. A buyer should know, for example, what

characteristics (acreage, number of

rooms, type of home, etc) are the

most desirable in the area in which

they are looking to buy. Equally

important is knowing what houses

in the general vicinity have sold for

and if there is likely to be any future development in the

community (such as a new school, condominium or

shopping center) as this could affect supply and demand.

4. A Good Estimator

By definition, house flippers attempt to buy a property and

then resell it at a profit in relatively short order. In order to

do this, however, the flipper must typically make some

structural and/or cosmetic changes to make the property

more appealing to the next buyer.

If the flipper underestimates the costs associated with the

refurbishment he or she may be exposed to large monetary

losses. Therefore, a flipper should be familiar with

construction materials (their use and their cost), as well as

local construction codes, the cost of local labor and the

time it should take to do a given job.

This is no small feat. In fact, it takes even the most

seasoned construction professional many years before he or

she is aware of all the nuances that exist. In any case,

before becoming involved in "flipping", be certain of your

abilities to estimate a job in terms of both cost and time.

5. A Dose of Patience

One of the biggest obstacles to making money in the real

estate market is that buyers tend to overpay for a given

property.

Why do buyers overpay?

Typically, buyers become emotionally attached to a

property or develop some other bond with it, which in turn

forces them to enter into a contract on less than favorable

terms.

However, savvy flippers have the ability to avoid

emotional purchases, and the desire to find diamonds in the

rough and properties on the cheap. They also understand

that if they aren't buying a property at a favorable price and

with favorable terms, it makes sense to simply move on to

greener pastures.

The bad news is that patience is a difficult virtue to teach

and hone. In general, either you have it or you'll lose a lot

of money trying to learn it.

Bottom Line

While quitting your job and becoming a full-time house

flipper may sound like an attractive proposition, be sure

that you have these five "musts" before investing in a real

estate project.

Page 15

ATTENTION MEMBERS You may want to add some of these clauses to your lease.

Municipal Rental Fees Clause: Tenant shall reimburse Landlord for any municipal service

fee, special assessment, inspection fee, license fee, rental

permit fee, or special tax levied upon the rental unit which

must be paid to permit its use as a residential rental. Tenant

shall be responsible for such fees and taxes whether they are

in effect at the start of this lease, or if they become effective

during the Lease term. The amount due shall be considered as

additional rent, and must be paid within 10 days of billing by

the Landlord.

Inflation Clause: Any fees, taxes, or other charges enacted, assessed or

increased by any agency, business or utility that do not

exist at the signing of this lease shall be passed onto the

tenant as additional rent and due on demand.

Plumbing Clause:

No grease, coffee grounds, sanitary napkins, or smoking

materials in drains or toilets. Plumbing repairs

necessitated by resident carelessness or neglect shall be at

the expense of the resident.

Don’t forget that every property that was built prior to

1978 MUST disclose that it may contain lead paint.

Every new tenant must be given the lead paint booklet

and must sign the lead disclosure form. That’s the

law! You must keep your signed lead disclosure forms and leases for a minimum of 5 years. You can purchase these forms

at the office or download them from our web site.

Landlords of the Apartment Association will comply with

all provisions of the (Fair Credit Reporting Act). The

information that is requested is for the landlord’s exclusive use.

The landlord certifies that inquiries will be made ONLY for

permissible purpose, namely: in connection with credit

transaction involving the extension of credit to, or review of

collection of an account of the consumer. The law prohibits

the landlord from providing a copy of the report to the

applicant. Landlords are FORBIDDEN to obtain reports on

themselves, associates, or any other person except in the

exercise of their official duties. Any person who knowingly

and willingly obtains information on a consumer from a

consumer reporting agency under false pretenses shall be fined

$5,000 or imprisoned not more than one year or both.

CREDIT REPORTING PROCEDURES

When obtaining a credit report on an individual, you must

have a signed Apartment Association Rental Application with

the following information:

First & Last Name

Current address; including street with number, city, state and

ZIP CODE

Previous address; if above address is less than 1 year

Social Security Number

Date of Birth

Signature giving permission to run their report

When a credit report is run in our office, we will

automatically check to see if a Landlord/Tenant complaint has

been filed in PA on that person at no additional cost to you. If

you prefer only a Landlord/Tenant Complaint check and no

credit report, then there is a charge for the L/T check.

Funds may be placed on account in order for you to run

credit reports. This will allow you to fax or scan and email the

rental application to the office and it will be returned to you by

fax or email. The office fax number is 814-866-2732 and our

email address is office@aptassoc.com.

EVICTION SCHEDULE UNDER ACT 36

This schedule is for the best case scenario, if using the

Apartment Association lease or a lease that allows a 5

-day notice

Day (1) Rental payment due

Day (2) For unpaid rent must give a 5 day notice

Day (8) File landlord/tenant complaint at District Justice

Office

Day (15) Scheduled hearing to take place and judgment

given. A decision must be given within 3 days of hearing

Day (26) Order of Possession can be requested 11th day after

judgment. The Order of Possession must be served within 48

hours

Day (39) The eviction takes place around the 11th day after

service of the Order of Possession.

FOR YOUR CONVENIENCE…

Credit reports can be ordered by any member that has money on

account or wishes to use a credit card. Simply mail, fax or email

the signed rental application to the office. It will be completed

and returned per your request. Forms may also be ordered by

telephone, fax, or mail if the member has money on account or

wishes to use credit card. Postage will be added to the cost for

any mailings to a member.

HARD COPIES

Warning: All credit reports on accepted and rejected tenant

applications should be saved for at least five years. It is

imperative that owners request hard copies of credit reports.

Credit reports can change daily, and there will never be another

report exactly the same as the one the owner ran to determine

acceptance of a tenant. Without a hard copy, the owner cannot

prove the financial reasons for acceptance or rejection if

challenged in court.

1127 West 38th Street

Erie, PA 16508

Address Service Requested

APARTMENT ASSOCIATION DINNER MEETING

The Importance of Tenant Screening

Thursday November, 20, 2014

Nunzi’s Place 2330 East 38th Street, Erie, PA

Cost: $15 per person

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

Name _______________________________________________________________

Phone __________________ # Attending ________ Amount Enclosed ______________

Reservation deadline is November 17, 2014

Reservations are required. No refunds on cancellations after the reservation deadline date.

Members are responsible for the bill on all reservations made and NOT cancelled prior to the reservation deadline date.