Minutes of Headwaters Landlord Association General Member Meeting
Date: April 24, 2014
Call to order:
7:04 pm, Beltrami Electric meeting room
President Harry Aylesworth presiding
Board members in attendance:
Kathy Guess, Harry Aylesworth, Dave Kaufman, Duane Sea
Board member not in attendance:
Jeff Grabowski, Lorrie Richardson, Andrew Erholtz, Terry Duy
Old business and announcements:
Dave presented the treasurer’s report indicating the balance in the checkbook is $3099.48 with one expense of $50.00 to Aimee for minutes and one due coming in for $50.00.
Dave presented the plan for the university overlay and how it is impacted by the shore land ordinance. This is a large area of Bemidji spanning from 10th Street to 23rd Street and from the site of the old high school to Lake Bemidji. There is a form based code proposed with an emphasis on “look and feel” of each lot. The DNR is looking into a flexibility agreement regarding eliminating variances within the shore land ordinance.
Harry addressed the issue of the rental ordinance in Bemidji Township. The township plans on reviewing the rental ordinance at an upcoming meeting. Harry and Andrew will attend the meeting and report back to the board members. This is important as other townships may follow.
There was a State Supreme court hearing regarding a city restricting the amount of rentals. The court upheld the decision and a city can restrict the amount of rentals.
New business:
There is concern regarding the potential apartment building that is proposed to be built on the old high school property. There is consideration for Tax Increment Financing. BSU Foundation could not get bonding money to construct dormitories on the site. Is there enough demand for the amount of apartments proposed? This could possibly be a detriment to current landlords in the area. The city of Bemidji benefits from landlords purchasing older properties and improving them. Would landlords want to buy these older properties and repair them if the demand is not there? Individuals that are interested should express their concerns to City Council. Board members will discuss this at the next board meeting.
The general consensus at the general meeting is there should be three general member meetings throughout the year. The meetings would be scheduled for some time in September, January and April. If the need for an emergency meeting arose because of a pertinent issue, the general members would be notified to attend an emergency meeting.
Planned discussion: Security Deposits
The sources used for this information are Home Line (statewide agency tenant advocacy group) and MMHA (Minnesota Multi-housing Association).
The top three complaints Home Line receives are 1.) Repairs 2.) Eviction 3.) Security deposits. The number one reason a landlord takes a tenant to court is for the eviction process and the number one reason a tenant would take a landlord to court is over their security deposit. This issue affects the majority of landlords and the questions listed below will help to address most concerns.
“What every landlord should know about security deposits”
1, Is there a law that regulates how much you can charge for a deposit in Minnesota?
2. Do I have to keep the deposit in a special account or a savings account?
3. What is the difference between an application fee and a security deposit?
4. What is the difference between a security deposit and a damage deposit?
5. What is a prelease deposit and what can it be used for?
6. How much interest am I required to pay and exactly how is it calculated?
7. Can a tenant use the security deposit as last month’s rent?
8. What things should I consider when setting my deposit amount?
9. Can the deposit be increased during the term of the tenancy?
10. What about tenant damages that I know about during the tenancy?
11. What happens to a security deposit if a landlord’s interest in the property ends because of a sale, death or foreclosure?
12. When must the deposit be refunded?
13. What can be deducted from the deposit refund?
14. What should a lease say about security deposit deductions and procedures?
15. Can there be any automatic deductions, such as carpet cleaning?
16. What needs to be included in the deposit accounting to the tenant?
17. How do I prove I complied with the law? The burden of proof is on the landlord.
18. What can the court award a tenant if I am sued in a security deposit dispute?
19. Are there any new laws proposed for this session that would change security deposit procedures?
Adjournment:
The meeting was adjourned at 8:38 pm
March Board Member Meeting Minutes
Minutes of Headwaters Landlord Association Board of Directors Meeting
Date: March 20, 2014
Call to order:
5:02 pm, Lueken’s North Deli Room
President Harry Aylesworth presiding
Board members in attendance:
Andrew Erholtz, Terry Duy, Kathy Guess, Harry Aylesworth, Dave Kaufman, Duane Sea
Board member not in attendance:
Jeff Grabowski, Lorrie Richardson
Old business:
Dave presented the minutes from the previous board members meeting and a treasurer’s report. Motion: Moved by Kathy to approve both the treasurer’s report and the general members meeting minutes from February 20, 2014. Seconded by Terry. Motion carried.
Duane confirmed our next general member meeting will be held at the Beltrami Electric meeting room on April 24th at 7:00 p.m. Board members meet at 6 p.m.
The clean-up of the south shore of Lake Bemidji has been stayed. The City of Bemidji is applying for grant money to help offset the cost of the clean-up. HLA will continue to follow the progress of the project as landlords could be affected by an increase in taxes.
The Greater Bemidji Area Joint Planning Board had their work session regarding the university overlay in relation to the shore land ordinance. Dave attended the work session. Their hired architect presented Bemidji State University’s five year plan. The plans have been approved for Decker and Memorial Hall renovations. There will be two dormitories torn down and two new dormitories built in their place in the future. There are plans for some road changes and parking ramps to be added by the rec center.
The issue of the rental ordinance in Bemidji Township is not on their agenda yet but HLA will continue to watch for any updates regarding the ordinance.
New business:
The upcoming general member meeting will focus on security deposits. Kathy presented the board with a list of questions pertaining to security deposits and the legalities involved. Please send an email to a board member if there are more security deposit questions you would like to see discussed. A few of the resources that will be used to answer these questions are the statue laws, HOME Line (a nonprofit Minnesota tenant advocacy organization), Minnesota Housing Association and the Attorney General’s reference book.
Lorrie obtained a current list of rental property owners from the City. Aimee will make up labels and we will work on sending out a mailing.
Adjournment:
The meeting was adjourned at 6:18 pm
February Board of Directors Meeting Minutes
Minutes of Headwaters Landlord Association Board of Directors Meeting
Date: February 20, 2014
Call to order:
5:07 pm, Lueken’s North Deli Room
President Harry Aylesworth presiding
Board members in attendance:
Andrew Erholtz, Terry Duy, Kathy Guess, Harry Aylesworth, Dave Kaufman, Lorrie Richardson, Duane Sea
Board member not in attendance:
Jeff Grabowski
Old business:
None discussed.
New business:
There will be a general members meeting in April. Duane will check with Beltrami Electric to see if their board room is available Thursday, April 24th at 7 pm or Thursday, April 17th at 7 pm if the first option is not available.
There is concern regarding the Greater Bemidji Area Joint Planning Board making changes to the university overlay in relation to the shore land ordinance. Dave and Lorrie will attend a GBAJPB work session on Thursday, February 27 at 5 pm. They will report back to the board members what was discussed.
Another concern is the clean-up of the south shore of Lake Bemidji and how it will potentially affect landlords and other tax payers in the Bemidji area. Duane submitted a letter that he wrote the mayor and council members voicing his opinion regarding a study conducted by the MARS group from Bemidji State University for the City of Bemidji. Overall, the study is inconclusive and did not supply the City with enough accurate and pertinent information to go through with the proposed clean-up project. Duane stated that if the City were to go forward with this project, it would end up costing him $200-$300 per rental unit annually in extra taxes. A subcommittee of Duane, Harry and Terry was appointed to attend the upcoming meetings and decide if HLA will take any action along with support from Friends of Lake Bemidji.
Security deposits and how they should be handled will be the main topic of discussion at the upcoming general members meeting.
Lorrie is going to obtain a current list of rental property owners from the City. If there is a minimal charge, this could be voted on through email with the board members. This will allow HLA to send out an up to date mailing to make every rental owner aware of the association and potentially gain more memberships.
Next board members meeting will be Thursday, March 20, 5 pm at Luekens.
Motion: Moved by Kathy to approve both the treasurer’s report and the general members meeting minutes from January 16, 2014. Seconded by Duane. Motion carried.
Motion: Moved by Kathy to take the PayPal payment option off of the website. Seconded by Terry. Motion carried.
Adjournment:
The meeting was adjourned at 6:13 pm
January General Members Meeting Minutes
Minutes of Headwaters Landlord Association General Members Meeting
Date: January 16, 2014
Opening:
A general meeting of the Headwaters Landlord Association was called to order at 7:03 p.m. on January 16, 2014 at Beltrami Electric, Bemidji, MN by President Harry Aylesworth.
Board members in attendance:
Andrew Erholtz, Terry Duy, Kathy Guess, Harry Aylesworth, Dave Kaufman, Lorrie Richardson, Duane Sea
Board member not in attendance:
Jeff Grabowski
Welcome:
Harry welcomed all members to the meeting and thanked them for attending. The board members were introduced. Harry (president), Kathy (vice-president), Dave (secretary/treasurer), Andrew (board member/chief communicator), Duane (former president/board member), Terry (board member)
Treasurer report:
Dave gave an update of the Treasurer’s report. There is a balance of $3,219.48. We have currently 51 members of the HLA.
Old business:
None discussed.
New business:
Presentation by MJB Home Center:
Kathy introduced Dave Smith, new owner of MJB Home Center located at 418 Beltrami Ave. MLB Home Center is a vendor that supports HLA. MJB offers the Whirlpool family of products (MayTag, Jenn-Air, KitchenAid and Amana). MJB offers quick customer service. They are a full service store that carries a lot of inventory and can even store customer’s appliances in their basement. MJB has an appliance repair shop where they work on Whirlpool and any other brands when you bring them into the shop. They also offer Mr. Appliance services where they will go to the site and fix the appliance. MJB stocks parts or will have them next day. They also offer coin-operated laundry machines. They have used and “dinged” appliances for sale. MJB also sells lawn equipment and snow removal machines (Snapper, Hustler). Everything that they carry is all American made products.
Bemidji Township Rental Ordinance:
Kathy owns a rental in Bemidji Township and received a letter notifying her that her non-homesteaded properties were required to obtain a rental permit not later than June 15, 2014. The permit application is $250.00. It is stated there must be an electrical, septic, plumbing and building inspection completed by a “licensed and certified inspector” every five years. It is unclear who a “licensed and certified inspector” is. There is an inspector that Lorrie used in the past that is “licensed and certified”. Contact information for him is Jeff Fagerstrom P.O. Box 421 Thief River Falls, MN 56701 and phone number is 218-681-2340. If there are any issues that arise in these inspections the rental owner is required to have these issues fixed with supporting documentation. The ordinance also states a site plan to scale, fire escapes and a garbage disposal plan must be provide by the landlord as well as a copy of the lease/rental agreement. The township will inspect the property after the application and inspection reports are submitted and then the township board must approve each rental permit application. Any violations by the rental owner must be corrected in 30 days and if there is a need for removal of the tenant the rental owner is responsible for the cost to relocate the tenant. This seems oppressive and expensive. The township cannot even answer questions regarding the ordinance. There is not a township administrator listed on their website. The township clerk has now stated, the township board will not be moving forward on the matter until June 1st and a new deadline will be set. If you are buying property in Bemidji Township this should be disclosed to you, but may not be? It was agreed to have a further discussion of this issue after the next presentation.
Jeremy Klinger:
Kathy introduced Jeremy Klinger of Drahos, Kieson & Christopher P.A. located at 502 24th Street NW in Bemidji. Their phone number is 218-444-1750. Jeremy studied undergraduate at University of Miami and went to law school at UND. He has been practicing for five years in general practice. Jeremy is here to give specific information on unlawful detainer and the eviction process. A landlord cannot force a renter out. A writ of recovery with the reason to evict must be obtained after the tenant has violated the lease. The next step is to file an unlawful detainer with the courts. The cost to file is $322. Minnesota costs to file are one of the most expensive in the nation. An unlawful detainer is an action to recover real property. It does not recover back rent. If you wish to recover back rent this is done in conciliation court. The summons is served seven days before eviction. There is a hearing where you must prove the reason for eviction. The tenant will either agree or request a trial which could even be a jury trial. The landlord will prove rent has not been paid or whatever breach of the lease and a judge will order a writ of recovery with a time limit on when the tenant must vacate the property. The sheriff can forcibly remove the tenant from the property to recover possession. Personal property left on site can be stored on the rental site or the tenant is required to pay for suitable storage of their belongings. If the property is clearly abandoned in 28 days you are allowed to sell or dispose of the property but the tenant can get the proceeds from the sale after the storage costs have been paid. There is a process for expedited eviction where the county attorney can evict due to illegal activity. In the case of a contract for deed eviction, you must file a cancellation at the recorder’s office and after 60 days the contract for deed will be terminated. Make sure you do not evict out of retaliation. If a tenant repeatedly complains that is not a reason for eviction, there must be a material breach of the lease agreement. If you have a “squatter” living in your property and it is a clear trespass, the sheriff should be called. If it is not a clear trespass, you will have to go through the eviction process. The law office charges $195.00 per hour and it is recommended to have an attorney present during the eviction process. If your rentals are owned by a corporation or an LLC, the company must be represented by an attorney. Top reasons a landlord will lose is if a landlord accepts rent after the eviction has been filed or a lack of preparedness. Prove that your tenant has not paid rent by keeping a general ledger. A sheriff, professional server or a party unrelated to the owner of the rental (cannot be a property manager) must serve eviction papers to the tenant. An owner can serve a notice of nonpayment or lease cancellation but not the eviction summons after the action is filed in court. Robert Bush (HLA member) is going through the eviction process now for the third time with the same tenant. Each time the tenant shows up with the money owed. Now there is a counter claim stating the rental is inhabitable. Make sure to get complaints in writing or state in your lease that all complaints must be submitted in writing and respond to all complaints. In your lease there should be a bold paragraph stating that any breach of this lease is a material breach. Have the tenant initial next to the paragraph for better protection against a counter claim. Late fees can be collected in a small claims action up to 8% of the total owed.
Conclusion and questions:
There is concern regarding therapy pets and how this should be handled when the lease clearly states that no pets are allowed. Tenants receive letters from their doctors stating that they are required to have a therapy pet for their emotional and mental health. You cannot contest this because it goes against the disability act. The laws are still developing concerning therapy pets and this is something HLA will continue to keep up on.
Rental owners are not being notified by law enforcement regarding disturbances at their property. HLA members want to be notified.
HLA should be aware of the agendas of the township meetings. If there is any mention of a rental ordinance, a member of HLA should attend.
There will be another general members meeting in mid- April. No firm date set. Members will be notified by email when it is set.
Adjournment:
The meeting was adjourned at 8:43 pm
January Board of Directors Meeting Minutes
Minutes of Headwaters Landlord Association Board of Directors Meeting
Date: January 9, 2014
Call to order:
5:00 pm, Lueken’s North Deli Room
President Harry Aylesworth presiding
Members in attendance:
Andrew Erholtz, Terry Duy, Kathy Guess, Harry Aylesworth, Dave Kaufman
Members not in attendance:
Lorrie Richardson, Jeff Grabowski, Duane Sea
Secretary report:
Minutes from 11/14/2013 were presented by Dave Kaufman
Treasurer report:
Dave provided a copy of the Treasurer’s report and reported five membership dues received. No expenses reported. Kathy stated it helps to have who the deposits came from on the treasurer’s report. It was agreed that Dave has the authority to pay Aimee after every meeting. Terry will be making calls to the remaining members that have not paid their dues and all members to inform them of the meeting next week. Harry provided a profit and loss statement for year-end 2012 and Dave will obtain a profit and loss statement for year-end 2013. Motion: Moved by Harry to approve 1/9/2014 treasurer report. Seconded by Terry and Kathy. Motion carried.
Old business:
None discussed.
New business:
General meeting:
There is a meeting for members at Beltrami Electric meeting room scheduled for Thursday, January 16, 2014 at 7:00 pm. Andrew will email invitation to members and past attenders to inform them of the upcoming meeting. The agenda for the upcoming meeting was discussed at length. First, it was agreed to have a treasurer/secretary report given with an income statement and the number of members now listed with the HLA. Second, MJB will give a brief 5 to 10 minute presentation. Third, there will be a presentation by Kathy and limited discussion on the Bemidji Township Rental Ordinance revisions made in August 2013. This will impact all rental owners in this township. Some of the main concerns are the amount of inspections required to obtain a rental permit in the township (fire/safety, plumbing, electrical, sewer and follow up with an administrator inspection). These inspections are required to be renewed every 5 years. It was suggested that a letter be drafted by HLA with questions to the township regarding the ordinance. Finally, Jeremy Klinger from Drahos, Kieson & Christopher P.A. Law Office will be speaking about unlawful detainers and eviction at approximately 7:30 pm. Andrew will send out an email to all HLA members regarding providing questions for Jeremy about the eviction process. Andrew will compile a list of questions for Jeremy and pick a few to ask. The decision was made to get Jeremy a Lueken’s gift certificate ($25-$50) since he is volunteering his time to come and speak at the meeting.
Announcements:
Next General HLA meeting: January 23, 2014
Adjournment:
The meeting was adjourned at 5:59 pm