Background Screening

Eeny, Meeny, Miny, Moe

2011-11-15T14:18:00.000-08:00

At Rental Services we work with lots of first time investment property owners. Most have little or no experience when it comes to property management. This leads to several mistakes that can cost a new property owner time and money.

One of the most common mistakes that many new landlords make is not screening all of the residents that move into the rental property. Just because one person makes enough money to pay the rent doesn’t mean you don’t need to screen the other occupants. If you don’t check everyone I guarantee you will eventually have problems with registered sex offenders and convicted felons moving in as occupants.

Another problem is using the wrong lease agreement or not using one at all. Make sure you have the applicants sign a lease before they move-in. Just like resident screening, make sure everyone who lives at the property and is over the age of eighteen signs the lease. Many states have specific laws that govern the lease. Make sure the lease you’re using covers the specific laws for your state. If you’re not sure many local apartment associations will provide the agreements for a small fee.

The move-in and move-out check list is often skipped by new landlords. If you don’t use this form you’re shooting yourself in the foot. Documenting the condition in writing when your renters move-in and after they move-out makes it easy to calculate damages and if you have to go to court, always impresses the judge.

If you’re new to property management I recommend taking a property management class. Most states have trade organizations that offer support to property owners. Local trade associations can help you build a solid foundation for managing your investment properties.

Can your applicants apply online?

2011-10-12T10:16:00.000-07:00

If the answer is NO, you may want to check this out. Rental Services, Inc. has just rolled out the RSI Quick Application.

The RSI Quick Application is a new and exciting tool that can be used in place of a standard rental application. RSI Quick App allows your prospective renters to apply online! Once your property is setup, you can send your applicant to www.rsiquickapp.com. They select your property, complete the customizable online application and pay for the screening fee with a credit card. The application is then sent to RSI for processing and you receive an email notification when the report is ready to be viewed.

Quick App can also be setup as part of your company’s website. Applicants can apply online from your website 24/7. We will provide a custom URL that can be added to your website. The URL link will list the properties in your portfolio.

The RSI Quick App can be setup with a customizable rental application that can even include your company’s specific business forms. You can setup a way to collect the application fee or have us do it for you. RSI Quick App provides a variety of options to meet your needs.

Contact the RSI office or visit www.erentalservicesinc.com for more information.

Renting To Young Adults

2011-10-03T11:30:00.000-07:00

I recently read an opinion from a person in the apartment industry that I found to be interesting. He states that he has seen an alarming trend of younger and younger debtors sent to collection by apartment communities. People 18 and 19 years old may legally sign a contract but most won't understand or remember it. If no co-signor or guarantor is on the lease many people of this age are not responsible enough to be given control of an asset valued in the tens of thousands of dollars. I agree on face value. However, if you have strong rental criteria in place the age of the applicant shouldn’t matter. When your tenant screening company conducts the background check they should be verifying income, rental history, credit, evictions and criminal records. Match this information up with your criteria and you increase your odds of getting a good renter regardless of age.

Quality tenant screening and criteria decrease the chances of renting to individuals who can’t pay the rent.

Social Network Background Checks

2011-09-30T09:38:00.000-07:00

I read this online by Lester Rosen, Attorney at Law. I thought is was very eye opening.

Although employers may request that background screening firms perform this function, there are a number of drawbacks. First, a background screening firm does not have the same in-depth knowledge the employer has of the details of the position. In addition, if a social network background check is done by a background screening firm, the search falls under the federal Fair Credit Reporting Act (FCRA) which requires a background screening firm to maintain reasonable procedures for maximum possible accuracy. Because a background screening firm has no way of knowing if the online information is accurate, it is difficult for background screening firms to perform this service consistent with the FCRA. In other words, due to the FCRA, background screening firms may not be best suited to perform these types of ‘social network background check’ searches.
Would your company make a hiring decision based on someones Facebook profile? Its my opinion that this type of search opens your screening company and you to possible litigation. Whats your thought on social network background checks?

Pink & Blue United Summer Soiree

2011-08-19T13:34:00.000-07:00

A special message sent to RSI from one of our clients! It sounds like a great event.

Good morning Friends, Vendors and Associates:

I hope this letter finds you all well!

The reason for contacting you is I'm helping my brother with the marketing of his new foundation which helps people of both genders for expenses and treatment for individuals with breast, ovary, prostate or testicular cancer.

I know this may be late in getting this information to you but would like to ask if you could forward this information to the rest of the company. It would help with others learning about this organization, and having the opportunity to come to the inaugural gala next weekend.

My brother, Dr. Kelly Lennon MD., has two practices, one in Littleton and another in Castle Rock. He has served on the board of both Swedish and Littleton Hospitals.
Please take a moment to read about the benefits of Pink & Blue United below.

Any correspondence of passing the information along will be very helpful in getting the word out of this new organization.

Subject: Pink & Blue United Summer Soiree

Please join us as we celebrate Pink & Blue United's Inaugural Summer Soiree at The Ritz Carlton - Denver, August 27, 2011 at 6:00 p.m. Pink & Blue United (PBU) is a 501(c)3 non-profit foundation dedicated to providing financial support for living expenses and fertility preservation to individuals during their initial treatments for breast, ovary, prostate or testicular cancer.

While there are many great organizations out there to find a cure, Pink & Blue United sets itself apart by not only real time assistance but by Uniting the genders - no more seperation of "his" or "her" cancer. We believe we're all in this together!

PBU will help people struggling with their cancer diagnosis and living paycheck to paycheck with real time financial assistance today; it is structured to help with putting food on the table, help with the mortgage/rent and childcare. Additionally, it will provide funds for fertility preservation for those afflicted at the prime of their reproductive lives.

We have a great evening planned with Savory Food & Spirits, Good Laughs from 'The Comedy Works', Dancing and a Silent & Live Auction! We look forward to seeing you there - guaranteed to be fun & memorable!!

To register, visit www.blacktie-colorado.com/RSVP and enter the event code: PBUgala

Did you Know?

2011-07-27T12:36:00.000-07:00

Dear RSI Client,

On June 25, 2011, the Social Security Administration (SSA) changed the way Social Security Numbers (SSN) are assigned. This change is known as "randomization."

What is Randomization?

The SSA traditionally assigned nine-digit SSNs in a particular pattern. Specifically, the first three digits indicated the state in which the consumer resided at the time the SSN was issued, and digits four - five indicated the year the SSN was issued.

Effective June 25th, the SSA changed its SSN assignment methodology to a randomized process. SSN randomization will affect the SSN assignment process in the following ways:

• Elimination of the geographical significance of the first three digits and any association with specific states.

• Elimination of any association with the number's date of issuance.

• Previously unassigned area numbers will be introduced for assignment, excluding area numbers 000, 666 and 900-999.

Now you know.

NAA Apartment Industry Mobilization Service Grassroots Program

2011-07-01T09:40:00.000-07:00

Greetings Apartment Industry Advocates!

This is the second in a series of monthly communications to members of the Apartment Industry Mobilization Service (AIMS) to help you advocate for the apartment industry. This information will focus on our federal policy initiatives, the legislative process, important committees, key members of the House and Senate, and briefing materials. We hope you find this valuable and invite you to suggest other topics to cover.

This month our focus is a call to action! Now is the time to make your voice heard by meeting face to face with your members of Congress when they are in recess in August.

Many NAA members cannot travel to Washington, D.C., in March for the annual Capitol Conference lobby day. This is your opportunity to make your voice heard for nothing more than a little time and the cost of gas.

You may not think that your involvement will make a difference. Or, you may think you don’t have time even to set up a meeting – and even if you get one, what would you say?

NAA Government Affairs wants to make it easy for you. Here’s how:

Your involvement will make a difference. In fact, you have a seat at the head of the table! Among Congressional staff recently surveyed, 46 percent said that an “in-person constituent visit” will have “a lot” of influence on a member of Congress who is undecided on an issue. Another 51 percent said it will have “some” influence.

Information on how to plan and schedule your meeting in the district/state office is available below. Since the meeting will be held during the recess, you should schedule your meeting with the district/state office. At other times, the meeting should be set up through the Washington, D.C., office.

To help you prepare, issue talking points and issue fact sheets will be made available next month. If you still feel you need an “Inside-the-beltway” perspective for your meeting, we will do our best to arrange for a NAA/NMHC policy expert to be on the speaker phone for a two-way conference call.

If you are turned down for a meeting in the district/state office, you are still in luck. In 2010, the House of Representatives’ calendar had five district work periods. This year’s calendar has 13. That means Representatives have more time to participate in town hall meetings and local events – as well as more time to spend conversing with you in those venues.

Almost every member of Congress holds town hall meetings to take the pulse of their constituents. While they are considered an underutilized resource, the same survey reported that 87 percent of Congressional staff said that questions from constituents at town hall meetings had “a lot” or “some” influence on an undecided member of Congress.

To find out the date, time and location, check your local newspaper or the member of Congress’s website. However, it is best to contact your member of Congress’s district/state office. While some town hall meetings are open to everyone, keep in mind that some offices will only contact constituents who have signed up to be notified. Be careful to note if you need to register to attend, send an RSVP, or sign up to ask a question (the latter typically occurs on-site). Always provide your name and home address, telephone number and e-mail address. (This will be used to verify that you are a constituent.)

Events provide a great opportunity for two-way dialogue – especially if you’re the event’s host. Invite your member of Congress to tour your apartment community and meet with residents over an informal barbecue. Or, invite your Senator or Representative to speak at a breakfast with your employees.

Pitch the visit to your local newspapers and television stations. This type of face time with constituents makes for good news media coverage for both the member of Congress and you! (And if you are in an early primary state, you might be lucky enough to piggyback on a Republican presidential hopeful’s visit to town as well.

Always remember that your personal stories trump everything else you say. You don’t need to be an expert on federal issues affecting the industry, but rather a resource on your business and how a particular issue impacts it. Members of Congress want and need to benefit from your expertise and point of view. By doing so, you become a relied-upon source for future multifamily housing issues, and they become more knowledgeable about our industry and the impact of legislation on your livelihood.

Measure your success in increments over time. To oversimplify an arduous process, it can literally take years for most bills to become laws. Added to that, most proposals never pass. Those that do frequently are re-introduced numerous times over different legislative sessions. And that’s not taking into play the growing Election Day turnover in Congress. So celebrate the baby steps, such as when a U.S. Senator finally agrees to meet you after declining your requests for several years.
We’re looking forward to hearing about your plans for your meetings. Again, the recess is between August 8 and September 5 and it is important to schedule meetings as soon as possible. Please keep us posted!

Thank you for your attention to this e-mail. If you have questions or comments on any of the material contained in this message, please contact me at 703-797-0633 or Kathleen@naahq.org.

Good luck!

Kathleen Youngblood
Director, Political Affairs
National Apartment Association

You Must Send Out Adverse Action Letters!

2011-06-29T14:08:00.000-07:00

Any changes that negatively affect the consumer require an Adverse Action letter to be sent to the applicant. The adverse action or declination letter must contain the following information: the name and address of the consumer reporting agency that issued the report; a statement that the consumer reporting agency did not make the decision to take adverse action; notice of the consumer's rights to obtain a free copy of the report within 60 days of the adverse action and the consumer's rights to dispute the accuracy and completeness of the information with the consumer reporting agency. FCRA Section 603(k). Rental Services, Inc. provides an "adverse action" or “declination letter” by selecting the DISCLOSURES & FORMS option at the bottom of the report results screen. You can also find a generic "adverse action" or consumer “declination letter” on the RSI website that can be modified to fit your needs.

FCRA Compliance Reminder

2011-06-28T12:51:00.000-07:00

I wanted to remind all RSI clients that you have a responsibility to comply with the Fair Credit Reporting Act (FCRA). When requesting a background check you are required to have a permissible purpose. For the rental industry, that means that you can only obtain a consumer credit report in connection with screening a prospective applicant. Other permissible purposes exist and can be found in Section 604 of the FCRA.

Help for Joplin, Mo. Tornado Victims

2011-05-25T09:49:00.000-07:00

As someone who has family living in Joplin, Missouri I wanted to pass on this email I received from the National Apartment Association.

Apartment residents are among the thousands affected by the widespread devastation in Joplin, Mo., following the recent killer tornados. Hundreds -- if not thousands of residents -- have been left without homes, whether apartments or houses. Many are in survival and recovery modes.

NAA affiliates and member companies have immediately stepped into action. NAA now calls on you for your support. This has been a devastating tornado season for a number of our affiliates – but this is the first request that the apartment industry has received for immediate help.

Becky Weaver, CPM, Vice President of the American Residential Group in Tulsa, Okla., has been in touch with “the few people we have been able to reach” in Joplin. Because they are not sure yet what they need, Becky recommends that NAA members donate to the American Red Cross. It has opened a shelter and is distributing food, clean-up supplies and comfort kits. It is assisting with sending health workers to provide immediate care.

Text "REDCROSS" to 90999 to make a $10 donation, or visit the website to donate, give blood or volunteer.

Additionally, Gary Wilson says that the Missouri Apartment Association (MAA) Board of Directors recommends making donations to Convoy of Hope, a Springfield, Mo.-based organization that is heavily involved in distributing water, food and supplies.

Text "CONVOY" to 50555 to make a $10 donation, or visit the website to donate.

Here are some ways NAA members are already making a difference:

The Springfield Apartment and Housing Association is working to find vacant apartments to help displaced residents.

Properties Plus, Inc., a Tulsa property management company, has closed its properties’ offices and is sending all of its employees along with two trucks filled with supplies to Joplin.

The MAA affiliates are joining forces to help the Red Cross and the Southwest Missouri Rental Housing Association in Joplin, according to Debbie Haukenberry, Associate Executive, Missouri Apartment Association. She reports that Cesar Mendez with Mendez Enterprises has donated trucks to help carry critical supplies. BluSky Restoration in Joplin is seeking out tornado victims to determine what help they need.

Additionally, Debbie says that Oddo Development has donated $1,000 to purchase supplies. Both the Apartment Association of Kansas City and the MAA have already donated or will donate funds. They are also collecting supplies and will begin distributing them this week.

If you have questions about how you can help, contact:
Valerie Hairston, Director of Membership & Affiliate Services
valerie@naahq.org
703/797-0624

If you are a member of the news media, contact:
Carole Roper, Manager of Public Affairs
carole@naahq.org
703/797-0616

What is that strange box?

2011-05-23T11:42:00.000-07:00

Your property is up for lease again and you’re looking for a new way to market it. Have you thought about a QR code? If you look around you will see more and more companies using a white box with black symbols in their ads. This new fad is taking off with many in the multi-family housing industry.

What is a QR code? The QR code is a two dimensional bar code that holds information. Using a smart phone with a downloaded scanning app you can open up links to video, maps, photos and more.

The QR code is mystery waiting to be solved by those reading your ad. Imagine someone looking at your ad for an apartment and in the corner is your QR code. If the person looking at your ad is curious enough to pull out their smart phone and scan your code, they could then have access to a video tour of your rental, a coupon for $100 off their first months rent or anything else you can imagine. Once they click on the QR code your prospective renter is now invested in your advertisement. The odds increase greatly of generating traffic to your rental.

Do you like us!

Were Bending Over Backwards

2011-05-05T11:01:00.000-07:00

Today I wanted to talk about flexibility in the screening industry. I see lots of companies that offer a one size fits all solution when it comes to background checks. At RSI we work hard to make sure we offer different screening options. More options translate to more flexibility when screening applicants. Make sure your screening company offers a way to customize criteria for different properties in your portfolio. Make sure you have a way to choose your own approval process for applicants. Decisions should based on your customized criteria provided by your screening company or make sure you can receive all the data to make your own in house decisions. You should also make sure your screening company has a seamless integration platform with multiple service partners. This provides you the flexibility you need to use different services and information providers. Finding the right screening company can streamline the screening process.

Experian News

2011-04-13T12:06:00.000-07:00

Experian News

This Credit Report Makes No Sense.

2011-03-29T14:12:00.000-07:00

At RSI we work with lots of small businesses and property owners and the one question were asked most often is how to read credit. If you need a credit report we can provide you with one. We can also walk you through the credit report over the phone or provide you with a cheat sheet. But what if you didn’t have to analyze the credit? What if you setup specific standards and the credit was matched up to pass or fail those standards?

If that sounds interesting to you, I would recommend talking to someone at our office about Insta-Chek. Rental Services has offered a scoring model for several years with great results. You set credit standards for your applicant. If they meet the criteria we give you a pass recommendation. If they don’t meet your standards we issue a fail recommendation. Insta-Chek can also be setup with a conditional recommendation to give you additional flexibility in screening credit.

The benefits of Insta-Chek are straight forward. No more trying to decipher credit reports. Each applicant is held to the same standards. No more worries about Fair Housing violations. You never run the risk of sensitive credit information falling into the wrong hands.

Remember, at RSI you have options.

Repeal the Expanded Form 1099 Reporting

2011-03-01T08:27:00.000-08:00

On Thursday, March 3, the U.S. House of Representatives is expected to vote on the Small Business Paperwork Mandate Elimination Act of 2011 (H.R. 4), which would repeal the expanded IRS Form 1099 reporting requirement.

Under current law, businesses will have to prepare and file 1099 forms for each vendor to which they pay more than $600 during a calendar year, beginning with payments made in 2012.

As members of the U.S. House prepare to vote on this bill, they need to hear from YOU! Tell them to repeal this burdensome tax reporting requirement and vote YES on H.R. 4.

Happy Valentines Day

2011-02-14T19:54:00.000-08:00

Everyone at Rental Services would like to wish you a happy Valentines Day. We would also like to thank you for your continued support. Our company tracks all of our marketing and advertising sources and customer referrals continue to be the number one source of new clients. We hope you will follow, share or bookmark us using the link below. Again thank you from everyone at RSI.

This Has Nothing to Do With Star Trek

2011-01-25T14:53:00.000-08:00

Let’s talk about Data and not that robot from Star Trek. If your going to order a background check you need to make sure you have good data. Old or inaccurate data makes it hard to make an informed decision about an applicant. I recommend asking your screening company where they get their data from and what it covers? Do they have access to proprietary databases developed and constantly updated by them and their customers?

I know many of you reading this blog already use Rental Services, so I want you to know the answer to all of the questions listed in this article are YES. We use current and up to date information sources that are reviewed for quality. We update our own proprietary database with records collected manually by RSI. Clients also contribute to our large collection of records.

I Need A What?

2011-01-25T09:15:00.000-08:00

If you use credit reports for screening residents or employees you will need a physical onsite inspection of the place used to store your records. Don’t blame Rental Services Inc. or RSI Screening for this new rule. The inspection process was the brain child of Experian, Trans Union and Equifax. Each bureau now requires inspections from an independent third party company as part of the credentialing process. If your company operates from a commercial address the inspection is required once. If you’re operating from a residential address the inspection is required annually. All inspections do require a fee. To pass an inspection you need three key elements. First, you will need a dedicated office space. If working from a residential office the space needs to be separate from living space. Second, you need a way of securing information. A locking filing cabinet, locking desk drawer or safe will meet the requirements. Finally, you will need away to destroy credit information. A shredder works best, but you can also burn documents or use a third party company that destroys documents. Other basic requirement covered during the credentialing process must also be met. If you want more detailed information about the inspection process and credentialing please contact RSI.

Do I Really Need An Eviction Report?

2010-11-23T14:29:00.000-08:00

The answer is YES, YES, and YES! If you’re only looking at criminal records and a credit report, you’re not getting the whole story. In today’s economy not only are homeowners losing their homes to foreclosure, people who rent are losing their homes to evictions. Lost jobs, medical bills, poor credit decisions and divorce have caused the number of evictions to skyrocket over the past few years.

If you’re not looking for eviction records you’re not getting one of the most important pieces of screening information a property owner can use to make an informed rental decision. Someone who has been evicted has given up one of the basic necessities of life, shelter.

If you’re not ordering a separate eviction report and rely solely on the credit report for eviction information, you’re missing out on 75% of the evictions filed. The only eviction records that show up on the credit report are monetary judgments which can take up to 90 days to show up on the credit report.

If you’re not getting an eviction report with your current screening package please contact the RSI office.

Don't Let the Co-Signer Off the Hook!

2010-10-18T10:11:00.000-07:00

Many property owners ask for co-signers in situations that involve students with limited income or renters with poor credit. If you ask for a co-signer you will need them to complete a separate agreement that stipulates that they agree to pay rent and damages if the primary tenant fails to pay.

Most property owners get into trouble when they make changes to the lease with out the co-signers written approval. This can be adding or deleting a person to the lease. Adding pets to the lease or even renewing the lease if the co-signer does not sign the new lease.

How do you avoid problems? Its easy, just make sure you get the co-signers signature every time you make a change to the lease agreement.

Warranty of Habitability

2010-09-17T14:35:00.001-07:00

If you own rental property in Colorado have you updated your Move-In Move-Out sheet? If you haven’t your opening your company and self up to potential liability. As a property owner or manager you should have a signed Move-In Move-Out sheet for every rental unit that includes this specific verbiage: After inspecting the premises, resident acknowledges that the premises contain no condition constituting or posing a material danger or hazard to resident’s life, health or safety. If you don’t have this form you can download from theRental Services Website.

Time To Look At The Credit

2010-07-15T10:59:00.000-07:00

Last month we talked about the income of your applicant. I wanted everyone to focus on how important it is to make sure they have enough money to pay the rent. Now that we know they have the money, lets look at the next step in screening your applicant. Yes, it's time to talk about credit.

The credit information is valuable if you use it as a part of the overall screening process. The reason we want to look at an applicants' credit is to review their payment patterns. An applicant with poor payment patterns has demonstrated that they are a greater financial risk.

When looking at the credit report you should look at the credit score, percentage of delinquencies, collections and bankruptcy records. This information can be used to paint a picture of your applicants' credit worthiness. Make sure you have credit criteria established so you can qualify each applicant using the same standards. If you don't know how to read a credit report, you should look at a scoring model like Insta-Chek to help you analyze the credit report.

Whats First?

2010-06-17T13:02:00.000-07:00

I talk to people about tenant screening on a daily bases and everyone is always concerned about credit information. As a property owner you should really be concerned about the applicants income level. If someone has great credit and makes $3,000 a month they may seem like they would be a good renter, unless of course the rent is $2,800. Living on $200 a month is next to impossible and your applicant will struggle to pay their bills.

To decide how much money an applicant needs to qualify to rent your property you need to come up with a rent to income ratio. It's best to establish a ratio as part of your rental criteria so each applicant knows your expectations. The rental housing industry generally uses a 3/1 ratio for income to rent. What this means to you is if the rent is $1,000 the applicant would need to make $3,000 or rent x 3. This is an easy way to make sure your applicant can afford the monthly rent and pay their other bills.

You may not believe this but some applicants lie about their income! If your applicant has told you he makes $3,000 a month you need to verify this amount. Income verification can be done by reviewing pay stubs or bank statements. The only problem with this method is the potential for falsification of the documents by the applicant. The best way to verify income is a phone call to their employer. Verifying the exact amount of income will help you make sure your applicant has the money to pay rent.

Once you have verified the applicants income your ready to move on to the next step in screening your applicant. Now you can factor in the credit report information, eviction records and criminal report as you make your decision to rent.

Do you have your free online ad?

2010-05-27T12:38:00.000-07:00

Rental property owners we work with are having great success using free tools like Craigslist.com. The more successful property owners and managers tell me they use Craigslist along with HTML to add multiple photos and a link to their main website to contact the property and set an appointment. This action demonstrates that your applicant has a real interest in your rental property. Several of the property owners we work with have told us that if the prospect contacts them from their website, they have a higher closing ratio then from other traffic sources. If you’re not advertising on the internet, Craigslist is a great starting point, and if you have been advertising on the internet for years adding you probably already know Craigslist can be very cost effective.

Identity Theft Made Easy!

2010-05-21T14:49:00.000-07:00

Have you ever used a copy Machine? Have you ever made a copy of personal information? Does your business have a copy machine? If you answered yes to any of these questions I would recommend you watch this video.

Video Link

DUMBREGS

2010-05-06T12:20:00.000-07:00

SmartRegs proposals move forward to Boulder Planning Board and City Council.

After 10 months of working group meetings, open houses and community feedback, the SmartRegs (DumbRegs) project moves forward to be considered by the Planning Board at 6 p.m. on Tuesday, May 18.

The SmartRegs proposal has three main components:

• Adoption of the 2009 International Property Maintenance Code with amendments to incorporate features of Boulder’s existing housing code;
• Adoption of administrative revisions and fee changes to the Rental License Code; and
• Adoption of an energy efficiency requirement for existing residential rental properties.

The proposal, most recently amended to address comments from the Environmental Advisory Board and Landmarks Board, is available on the SmartRegs Web site for public review prior to the Planning Board meeting. The meeting will include a presentation and public hearing. Community members are encouraged to attend and provide feedback.

Why should you attend this meeting? If SmartRegs is passed and you own rental properties in Boulder you will be required to retrofit your properties to come up to 20% of current energy codes. This could mean a cost range of about $750 per unit to $3200 per unit or more. When you look at all rental property in Boulder the city is asking everyone to pay around $35 million dollars. The city council believes that the upgrades increase the value of your properties and therefore this is just an “investment” in your business. Let them know that you know better – this is an expense that cannot be recovered.

Want more information? Contact the Boulder Area Rental Housing Association

Web: http://barhaonline.org
Phone: 303-494-9048

Finally Some Good News!

2010-05-06T11:36:00.000-07:00

SB 185-Warranty of Habitability by sponsors Senator Brandon Shaffer-D, Longmont and Representative Michael Merrifield-D, Colorado Springs, has died in the House Business Affairs Committee.

Committee members, Stephens-R, Bradford-R, Priola-R, Liston-R, Balmer- R and Rice-D voted to oppose to the proposed legislation.

INJUNCTIVE RELIEF = FREE RENT

2010-05-04T11:59:00.000-07:00

After weeks of committing to a NO vote, Senator Chris Romer
(D-Denver) flipped his vote on SB 185 (Shaffer/Merrifield), Warranty of
Habitability.

The bill is now assigned to the House Business Affairs Committee.
Please contact these members of the Business Affairs and Labor Committee and ask
them to vote NO on SB 185.

This bill would undo several months of negotiation that took place ONLY
18 MONTHS AGO.

Those negotiations cost the taxpayers of Colorado upwards of $20,000 for
mediation.

This bill REMOVES KEY COMPONENTS that were negotiated to achieve a
balanced policy for all parties involved.

This bill expands the definition of a violation of the Warranty of
Habitability. HB 185 changes the definition of a violation from
"materially dangerous or hazardous to the tenant's life, health or
safety" to "materially affects health or safety." This
greatly expands what could be considered a violation of the warranty and
opens the door for increased frivolous law suits. Can a tenant claim a
breach if they have allergies in their apartment?

SB 185 places greater strain on the court system through
INJUNCTIVE RELIEF and broadens the definition of a violation of Warranty
of Habitability. By allowing the tenant to obtain injunctive relief
in county courts, including small claims courts, this bill will generate
more traffic in our court systems.

The tenant already has an arsenal of remedies. They can withhold rent, or
terminate and move. Under any of these scenarios, if the landlord
remains in breach, the landlord is losing rental income.

THIS EQUATES TO FREE RENT! If an
injunctive relief is given to the tenant that is going through the
eviction process, an injunction will substantially slow the eviction. During
the legal process the tenant remains in their apartment until the
legal process is complete....without paying rent.

Representative Edward Casso (D-32)

Capitol Phone: 303.866.2964

Email: edward.casso.house@state.co.us

Representative Karen Middleton (D-42)

Capitol Phone: 303.866.3911

Home Phone: 720.427.3239

Email: repmiddleton@gmail.com

The Government Makes The Rules!

2010-04-30T10:23:00.000-07:00

We need your participation! The Financial Reform
Act Will Give the FTC Expanded Rulemaking Authority over the background and
tenant screening industries.

Hidden inside the financial reform bill are provisions that
would grant the Federal Trade Commission (FTC) the equivalent of extraordinary
legislative powers. These provisions have already been passed by the House
(H.R. 4173) and are currently being considered by the Senate.

NAPBS and NASA have great concerns with the following sections of this legislation:

Unbridled authority to create
rules about "unfair or deceptive acts or practices" across all but
a few sectors of the American economy;
Power to seek immediate civil
penalties for "unfair or deceptive acts or practices without first
giving companies the opportunity to change their practices;"
Authority to go after
companies for allegedly "aiding and abetting" others in an FTC Act
violation, even without actual knowledge of the violation; and

Power to seek such penalties
without coordinating with the Justice Department.

The Senate is ready to act - Now is the time
when your voice matters the most!

The FTC would be granted expanded rulemaking authority to
regulate companies in our industry.

We urge you to contact your senators today and stress the importance of
upholding the longstanding safeguards that prevent FTC overreaching.
Please click the following link to read this legislation:

http://capwiz.com/napbs/utr/1/LCXWMLAVCV/FHUIMLAVZO/5095829861

VOTE NO on SB 185!

2010-04-13T08:53:00.000-07:00

Please contact these select Senators below and ask them to VOTE NO on SB 185!

This new bill aims to:

Expand the definition of a violation of the Warranty of Habitability.

·This bill would undo several months of negotiation that took place ONLY 17 MONTHS AGO.

·Those negotiations cost the taxpayers of Colorado upwards of $20,000 for mediation.

·This bill REMOVES KEY COMPONENTS that were negotiated to achieve a balanced policy for all parties involved after five years of work.

If a warranty of habitability case goes to court, it allows the court to
quickly resolve the notice issue. This allows the court to focus on
the real issues of determining whether a breach of the warranty of
habitability occurred and how a breach should be cured.
SB 185 places greater strain on the court system through INJUNCTIVE RELIEF and
broadens the definition of a violation of Warranty of Habitability. By
allowing the tenant to obtain injunctive relief in county courts, including
small claims courts, this bill will generate more traffic in our court
systems.

THIS EQUATES TO FREE RENT! If an injunctive relief is given to the tenant that
is going through the eviction process, an injunction will slow the eviction. During
the legal process the tenant remains in their apartment until the legal
process is finished....without paying rent.

Sen. Mary Hodge (D-25)

Email: maryhodge@aol.com

Capitol Phone: 303.866.4855

Home Phone: 303.659.3298

Sen. Dan Gibbs (D-16)

Email: dan.gibbs.senate@state.co.us

Capitol Phone: 303.866.4873

Home Phone: 970.333.4707

Sen. Rollie Heath
(D-18)

Email: rollie.heath.senate@state.co.us

Capitol Phone: 303.866.4872

Home Phone: 720.272.2389

Sen. Chris Romer
(D-32)

Email: chris.romer.senate@state.co.us

Capitol Phone: 303-656-9531

Sen. Lois Tochtrop
(D-24)

Email: lotochtrop@aol.com

Capitol Phone: 303-866-4863

Home Phone: 303.469.9217

Sen. Suzanne Williams
(D-28)

Email: suzanne.williams.senate@state.co.us

Capitol Phone: 303-866-3432

Home Phone: 303.751.2396

Senator Evie Hudak
(D-19)

Capitol Phone: 303.866.4840

Home Phone: 303.423.8569

Email: senatorhudak@gmail.com

Senator Abel J.
Tapia (D-3)

Capitol Phone: 303.866.2581

Home Phone: 719.671.3311

Email: dhtmled4:abel.tapia.senate@state.co.us

LEGISLATIVE ALERT 3/22

2010-03-22T13:05:00.000-07:00

The Senate has scheduled SB 185 for the Senate Floor TODAY. Please contact these Senators below and ask them to VOTE NO on SB 185!

This new bill aims to:1. Remove the requirement that a tenant must provide written notice to a landlord in the case of a breach.2. Expands the definition of a violation of the Warranty of Habitability.3. Adds new treble damages language.

This bill would undo several months of negotiation that took place ONLY 17 MONTHS AGO.
Those negotiations cost the taxpayers of Colorado upwards of $20,000 for mediation.
This bill REMOVES KEY COMPONENTS that were negotiated to achieve a balanced policy for all parties involved.
This bill removes the statutory requirement for written notice.
Required written notice is a fundamental protection for both tenants and property owners.
Since it is real and tangible documentation, it is easy for either party to prove that notice was given or received.
A tenant can easily prove he or she gave notice if a property owner denies receiving notice.
A property owner is protected from tenants who claim to have given notice, but never do.
If a warranty of habitability case goes to court, it allows the court to quickly resolve the notice issue. This allows the court to focus on the real issues of determining whether a breach of the warranty of habitability occurred and how a breach should be cured.
It creates a fixed timeline for a property owner and tenant to manage a problem. Without written notice, the timetable for fixing a problem may shift dramatically depending on what the parties claimed to have said or remembered about when notice was provided.
Written notice is especially helpful when a third party is managing a rental property. It allows a third party manager to show the property owner that a problem which needs to be fixed truly exists, and needs to be addressed immediately.
Required written notice does not prevent a tenant from calling or giving other forms of notice. A tenant may always provide oral or other forms of notice to the property owner if there is a problem. In fact, any property owner would encourage and appreciate immediate notice of a problem. But if a tenant claims a breach of warranty of habitability, which is a serious allegation, the property owner should have a right to receive written notice about the matter.
Required written notice does not limit any of the remedies available to tenants. Written notice is a separate and independent issue from the remedies available to tenants. The warranty of habitability adopted in 2008 had more tenant remedies than most states. Required written notice does not in any way diminish the number of remedies available to tenants.
SB 185 places greater strain on the court system through INJUNCTIVE RELIEF and broadens the definition of a violation of Warranty of Habitability. By allowing the tenant to obtain injunctive relief in county courts, including small claims courts, this bill will generate more traffic in our court systems.
SB-185 IMPOSES TREBLE DAMAGES to be awarded to the tenant for a violation.

Sen. Mary Hodge (D-25)Email: maryhodge@aol.comCapitol Phone: 303.866.4855Home Phone: 303.659.3298Sen.

Joyce Foster (D-35) Email: joyce.foster.senate@state.co.usCapitol Phone: 303.866.4875Home Phone: 303.343.6868Sen.

Dan Gibbs (D-16) Email: dan.gibbs.senate@state.co.usCapitol Phone: 303.866.4873Home Phone: 970.333.4707Sen.

Rollie Heath (D-18)Email: rollie.heath.senate@state.co.usCapitol Phone: 303.866.4872Home Phone: 720.272.2389Sen.

Chris Romer (D-32) Email: chris.romer.senate@state.co.usCapitol Phone: 303-656-9531Sen.

Lois Tochtrop (D-24)Email: lotochtrop@aol.comCapitol Phone: 303-866-4863Home Phone: 303.469.9217Sen.

Michael Johnston (D-33)Email: mike.johnston.senate@state.co.usCapitol Phone: 303.866.4864Sen.

Suzanne Williams (D-28)Email: suzanne.williams.senate@state.co.usCapitol Phone: 303-866-3432Home Phone: 303.751.2396

Senator Evie Hudak (D-19)Capitol Phone: 303.866.4840Home Phone: 303.423.8569Email: senatorhudak@gmail.comSenator

Linda Newell (D-26)Capitol Phone: 303.866.4846Home Phone: 303.956.9448Email: linda.newell.senate@gmail.com

maryhodge@aol.com; joyce.foster.senate@state.co.us; dan.gibbs.senate@state.co.us; rollie.heath.senate@state.co.us; chris.romer.senate@state.co.us; mike.johnston.senate@state.co.us; suzanne.williams.senate@state.co.us; senatorhudak@gmail.com; linda.newell.senate@gmail.com

Rent Control Passes Committee

2010-02-24T10:56:00.000-08:00

House Bill 1017-concerning Rent Control was heard late afternoon yesterday in the Local Government committee of the House. Of the eleven committee members, we had six confirmed votes of opposition (NO) on House Bill 1017 prior to the hearing. After three hours of testimony from 20 testifiers, Democrat committee member, Rep Sue Schafer-D, Wheat Ridge, who had long committed and repeatedly confirmed her opposition to the bill the day before the hearing, changed her mind mid-hearing and voted YES on the bill. HB1017 now goes to the house floor.

Rep Schafer cited reasons of democrat caucus pressure for her change in vote.

We will now target select democrats in the house. The bill could come up for second reading as early as this Friday.

Special thanks go to Lauren Brockman, Rex Gambrell, Terry Simone, Brandon Rich, Mike Papantonakis, Stephanie Avery, and Gordon Von Stroh who delivered excellent testimony in the committee hearing.

Please continue to watch for alerts. We will need to make a strong, united effort to produce numerous phone calls and emails to take this out in the house.

Need more information? Contact Meghan Storrie (mstorrie@caahq.org) or Nancy Burke (nancy@aamdhq.org) with the Colorado Apartment Association.

Rent Control Update

2010-02-19T12:39:00.000-08:00

Colorado State legislature will consider the Rent Control bill in House Local Government Committee next Tuesday, February 23 at 1:30 in Rm 111.

WE STILL NEED YOUR HELP TO DEFEAT THIS BILL. PLEASE CALL YOUR REPRESENTATIVE AND TELL THEM TO PLEASE VOTE NO on House Bill 1017

WHEATRIDGE/GOLDEN
Rep. Sue Schafer (D-24)
Email: sue.schafer.house@state.co.us
Capitol Phone: 303-866-5522
Home: 303-918-2660

WESTMINSTER/ARVADA
Rep. Cherilyn Peniston-Chair (D-35)
Email: cherylin@cherylinpeniston.com
cherylin.peniston.house@state.co.us
Capitol Phone: 303-866-2843
Home: 303-428-1945

THORNTON/NORTHGLENN
Rep. John Soper- Vice-Chair (D-34)
Email: john.soper.house@state.co.us
Capitol Phone: 303-866-2931
Home: 303-428-8281

AURORA
Rep. Cindy Acree (R-40)
Email: cindy.acree.house@state.co.us
Capitol Phone: 303-866-2944
Home Phone: 303-748-9534

COLORADO SPRINGS
Rep. Dennis Apuan (D-17)
Email: dennis.apuan.house@state.co.us
dennis@dennisapuan.com
Capitol Phone: (303)866-3069
Personal: (719) 291-9898

WESTERN SLOPE
Rep. Laura Bradford (R-55)
Email: laurabradford55@gmail.com
laura@BradfordForHouse.com
Capitol Phone: 303-866-2583
Work - 970-245-7870Home - 970-487-0154

NE DENVER/BRIGHTON
Rep. Kevin Priola (R-Brighton)
Email: kpriola@gmail.com
Capitol Phone: 303-866-2912
Home: 303-923-5138

ALAMOSA
Rep. Ed Vigil (D-62)
Email: edward.vigil.house@state.co.us
Capitol Phone: 303-866-2916
Home: 719-570-1785

Rent Control Bill (Colorado)

2010-02-08T13:54:00.000-08:00

Colorado State legislature will consider the Rent Control bill in House Local Government Committee this week Thursday morning.

PLEASE CALL YOUR REPRESENTATIVE AND TELL THEM TO PLEASE VOTE NO on House Bill 1017

WHEATRIDGE/GOLDEN
Rep. Sue Schafer (D-24)
Email: mailto:sue.schafer.house@state.co.us
Capitol Phone: 303-866-5522
Home: 303-918-2660

WESTMINSTER/ARVADA
Rep. Cherilyn Peniston-Chair (D-35)
Email: cherylin@cherylinpeniston.com
cherylin.peniston.house@state.co.us
Capitol Phone: 303-866-2843
Home: 303-428-1945

THORNTON/NORTHGLENN
Rep. John Soper- Vice-Chair (D-34)
Email: john.soper.house@state.co.us
Capitol Phone: 303-866-2931
Home: 303-428-8281

AURORA
Rep. Cindy Acree (R-40)
Email: cindy.acree.house@state.co.us
Capitol Phone: 303-866-2944
Home Phone: 303-748-9534

COLORADO SPRINGS
Rep. Dennis Apuan (D-17)
Email: mailto:dennis.apuan.house@state.co.us
dennis@dennisapuan.com
Capitol Phone: (303)866-3069
Personal: (719) 291-9898

WESTERN SLOPE
Rep. Laura Bradford (R-55)
Email: laurabradford55@gmail.com
laura@BradfordForHouse.com
Capitol Phone: 303-866-2583
Work - 970-245-7870Home - 970-487-0154

NE DENVER/BRIGHTON
Rep. Kevin Priola (R-Brighton)
Email: mailto:kpriola@gmail.com
Capitol Phone: 303-866-2912
Home: 303-923-5138

ALAMOSA
Rep. Ed Vigil (D-62)
Email: mailto:edward.vigil.house@state.co.us
Capitol Phone: 303-866-2916
Home: 719-570-1785

PLEASE PLACE YOUR CALL OR SEND YOUR EMAIL TODAY, TUESDAY OR WEDNESDAY as the bill is being heard Thursday morning.

House Bill 1017 gives government entities and municipalities the upper hand, an unlevel playing field. This bill adversely affects private property rights because if this bill passes, rent controls will be imposed by local governments.

Top 10 Reasons to Vote NO on House Bill 1017

2010-02-08T13:49:00.000-08:00

TOP TEN REASONS TO VOTE NO ON HOUSE BILL 1017

#1
Any form of rent control is a matter of private property rights because it forces one property owner to subsidize housing for others.

#2
We do NOT need this legislation. The process in place today is working. Six court cases in Colorado illustrate this. Don't try to fix something that is not broken. (see #10)

#3
Rent control is NOT a government program. It is unfair regulation of private property that is NOT practiced in 46 states! Rent control is outlawed in most states - Forty-six (46) states have no rent control policies and thirty-five of those have statutes which make rent control illegal. In fact, the liberal state of Massachusetts voted to repeal rent control because it was not providing housing to those truly in need and the negative economic impact rent control created on access to and availability of rental housing.

#4
Rent control is a failed housing policy. It does the wrong things to the wrong people. Rent control has the perverse consequence of reducing, rather than expanding, the supply of rental housing in times of shortage. Existing units are converted to condos or coops. Furthermore, developers do not invest capital for new construction in rent control states.
o From 1980 - 1989, there was a 12% decline in available rental units in Brookline, Massachusetts.
o From 1978 - 1990, there was a 14% decline in available rental units in Berkley, California.
o From 1950 - 1986, there was a 45% decline in available rental units in the United Kingdom.
Setting price controls through rent control has reduced supply and private investment in affordable housing.

#5
Low Income Renters and Property Owners Lose - It is a common perception that rent control is an affordable housing program that benefits those on limited incomes - seniors, disabled, veterans, and students, among others. Countless studies of the rent control imposed in New York City show that rent control benefits the wealthier residents in Midtown and Upper Manhattan and not the lower income tenants in other New York burrows.

#6
If this bill passes, we will see unprecedented mandates on building and development.

#7
This legislation would affect school funding. This bill will have an adverse impact on property tax income that in turn, will affect public school funding.

#8
Rent control reduces the quality of the housing stock and NO rent control study has proven that rent control provides affordable housing

#9 Lowers the values of properties which could create additional foreclosures. This could lower the net income on communities which will adversely affect salaries.

#10 Land Use Restrictive Agreements (LURA) are in place today. They require just compensation to the developer in exchange for affordable units to be rented to residents with AMI below a certain level. LURAs are working----there is NO need for this legislation.

If legislators request more information, please have them call Nancy Burke at 303-548-3193. She will be at the Capitol and can talk directly with legislators.

RECO Case Studies

2009-11-13T11:18:00.000-08:00

I know this is hard to read if you need a better copy please contact me and I can send you a clean copy.

Do you own rental property in Boulder Colorado?

2009-11-13T10:58:00.000-08:00

The City of Boulder is propsing some changes to the rental licensing program that could cost you $1,000 - $2,000 per unit. Please take a look at the propsed program below.

Draft Energy Efficiency Proposal and Compliance Options

This document outlines potential options for an energy efficiency code for existing rental housing. The code is proposed to be a local amendment (Appendix B) of the International Property Maintenance Code.

Background
In order to increase the energy efficiency of Boulder’s rental housing stock, the city is proposing to initiate both education programs for tenants and regulatory requirements for property owners.

Education and Occupant Behavior
While there are limited ways in which energy conservation education and occupant behavior can be addressed through codes, the following summary outlines how these issues are being addressed through other city and collaborative community efforts.
(See document XXX for more information – refers to open house document still being developed)

Climate Action Plan programs – Residential Energy Action Program, Neighborhood Sweeps, CU Green Teams, new “two techs and a truck” program
CU- COPIRG Energy Program
Boulder County Energy Corps
Proposed market- Based Approach: RentSmart
· Developing an energy rating system for rental housing would inform renters which properties are the most efficient.
· Properties which exceed the minimum code levels for efficiency could be listed in a centralized RentSmart database.
· A marketing campaign/recognition program could be developed to raise awareness among renters about the total cost of occupancy of a rental unit.
· A campaign would encourage renters to ask for the efficiency rating of the property.
· If renters choose properties based on the rating of the property, landlords could have an incentive to upgrade their properties to remain competitive in the market.
· Details associated with the design and cost of developing and maintaining this system will be explored in early 2010.

Code Requirements
Review Criteria
The proposed code and compliance options were developed to meet the following criteria:
Upgrades the existing housing stock through energy efficiency improvements
Makes improvements while recognizing the limitations of commercial ownership
Considers the rental housing contribution to the community greenhouse gas emissions goal
Presents flexibility for compliance:
Prescriptive list uses a menu – property owners choose measures that correlate to the age and type of construction of their particular buildings
Performance system uses a third-party rating system to determine the level of energy efficiency to be attained
Include options for carbon offset purchases[1]
Accommodates multi-family units (MFUs) –most likely will choose the performance compliance path (only a sampling of the units in a building are tested for performance)
Accommodates older buildings – most likely will choose the prescriptive compliance path
Equitable across dwelling units
Manageable to both city staff and stakeholders

Additional work to be done
Ø Staff will be developing accommodations for Home Owner Association (HOA)- controlled condominiums
Ø Staff is developing financing, rebates and technical assistance programs to support property owners as they retrofit their buildings (Refer to document XX for information on rebates, financing, and the development of a “Two techs and a Truck” code compliance program - refers to open house document still being developed)

Summary of Code Options: Appendix B of International Property Maintenance Code
Scope: Applies to all rental licenses

Exceptions
Property constructed after July 2001
Property meets or exceeds the 2000 International Energy Conservation Code (IECC)

Compliance (must complete one or the other):
Performance: Property owner can demonstrate energy performance of building. Performance is measured by a third-party energy rating system.
Reduction in energy and water consumption would be verified by a third-party energy audit compared to established local baseline by ICC Certified Energy inspector.
Prescriptive: List of energy and water efficiency improvements with corresponding points; property owners can choose options on list that add up to the minimum required point level (20 points)
Compliance will be verified through an International Code Council (ICC) Certified Energy Inspector.
Energy efficiency upgrades in rental units installed prior to this process going into effect can be included in the energy measures point tally upon verification by an ICC Energy Inspector.
Performance
Propose building to meet 120 on Home Energy Rating System (HERS)[2]

Prescriptive
The following prescriptive options were adapted from the National Green Building Standard (NGBS), a national code developed by the National Home Builders Association (NAHB) and the International Code Council (ICC).
Code for green buildings and remodels, includes options for addressing existing buildings
Proposed to include references in Appendix B refer to a few sections of the NGBS
Staff can amend specific standards. Based on community feedback and recommendations, pieces from the prescriptive list can be further clarified or modified to be relevant to Boulder’s existing housing stock.

NGBS contains a point rating system for prescriptive measures:
} Will be incorporated into proposed voluntary “RentSmart” campaign.20 points: Proposed required level for Smart Regs Energy Efficiency
Bronze = 30 points
Silver = 60 points
Gold = 100 points
Emerald = 120 points
Sample* prescriptive list from sections 703, 704, 705, and 801 of NGBS:
Measure
Points**
Energy Efficiency Measures – Proposed 20 points required

Air Sealing and Insulation 3 or 15
Window replacement Up to12
HVAC Upgrades 6-15
Water Heater 1-10
Lighting 1-8
Appliance Upgrades 3-7
Renewable Energy 1-20
Duct & HVAC reconfiguration 1-15
Energy Consumption Control Devices e.g., programmable thermostats, energy monitoring device 2-7
Verifiable tenant education by landlord
Staff amendment, points to be determined.
Water Efficiency Measures – Point requirements TBD
Water-conservation appliances 2-8
Showerheads 1-3
Faucets 1-5
Water closets and urinals 4-18
*This list is not exhaustive; please refer to NGBS for complete list.
**Points are shown in ranges. The ranges refer to various factors such as efficiency of equipment or 3rd party inspectors.

Phasing Options for Compliance

1. Date Certain: All properties comply by December 31, 2012.
2. Two rental license cycles to comply
· First rental cycle: At time of renewal*, property owner can:
o Purchase four years of carbon offsets at a predetermined rate and amount OR
o Property demonstrates compliance
· If purchase offset option was chosen, property must demonstrate compliance with the code at the time of renewal of the following rental cycle.
· No spending threshold would be included in this option.
*If renewal is due within one year after the ordinance is effective, a one–year, temporary license will be available.

3. Spending threshold until compliance
· Property owner must invest $1,000 (per multi-family unit)/$2,000 (per single family unit) until compliance is achieved. As an alternative, offsets may be purchased at a rate 0.175 tons per point.
§ Offsets example: At 0.175 tons/point and a code requirement of 20 points, 3.5 tons/year would be the required purchase amount. At the current Colorado Carbon Fund rate this would equal $3.5/point which would equal $280 for a four year rental cycle.
· Maximum of one rental cycle of offset purchases allowed without some building improvement investment.

4. Spending threshold until compliance – no offset time limit
· Property owner must invest $1,000 (per triplex or greater multi-family unit)/$2,000 (per single family unit) until compliance is achieved. As an alternative, offsets may be purchased at a rate 0.175 tons per point.
§ Offsets example: At 0.175 tons/point and a code requirement of 20 points, 3.5 tons/year would be the required purchase amount. At the current Colorado Carbon Fund rate ($20/ton CO2) this would equal $3.50/point which would equal $280 for a four year rental cycle.
· Offsets can be purchased for an unlimited number of rental cycles.

5. Participation threshold until compliance - “2 techs approach”
· Property owner must participate in the city’s “Two Techs and a truck” program which will buy the property owner a prescribed standard of basic upgrades (*see below for sample list); the materials will be purchased at a competitive rate and will be installed by a third-party certified contractor or may be able to be installed by the property owners maintenance contractors where applicable.
· As an alternative, offsets may be purchased at a rate of 0.15 tons/point.
i. Offsets example: At 0.175 tons/point and a code requirement of 20 points, 3.5 tons/year would be the required purchase amount. At the current Colorado Carbon Fund rate($20/ton CO2) this would equal $3.50/point which would equal $280 for a four year rental cycle.
· Maximum of one rental cycle of offset purchases allowed before participation in the “Two techs” program
· Property is compliant once upgrades are complete with “two techs” program.

* Prescribed standard of upgrades for “2 techs” option could be:
Items 1-4 required
Lighting > 40 lumens/watt
Air sealing: 0.5 Natural Air Changes per Hour (NACH) or if NACH >1, improve by 50%
Programmable thermostat
Showerhead <> R-38
Wall insulation: Fill cavity
Storm windows or thermal pane glass

[1] Offsets would allow greenhouse gas emissions reductions to be purchased while allowing time for property owners to raise capital to invest in building improvements. If the Governor’s Energy Office Colorado Carbon Fund (CCF) is the offset provider, a percentage of the offset investments would be reinvested in Boulder projects. The current rate through the CCF is $20/ton. The code would allow offsets to be purchased at a predetermined number of tons per dwelling unit. Example: 0.175 tons/point = $3.50/point. 20 points =3.5 tons/dwelling unit; $70/year; $280/4 years
[2] The HERS scale rates homes by the energy performance compared to a baseline 2004 energy code home. The lower the number on the HERS scale, the better the energy performance. The 2004 energy code home is 100 on the HERS scale. The proposed 120 performance level would be 20% worse than the 2004 energy code. New homes in Boulder must be rated between 35 – 70, depending on house size. Further research needs to be completed on the proposed 120 level and its correlation to the prescriptive requirements.

The City will be hosting two open houses this coming week – Mon and Wed (Nov 16 and 18) at the Sr. Center at 9th & Arapahoe. This is designed so that you can drop in anytime during the 4:30-7:30 period to watch a video about the city goal and then talk one on one with city reps in order to voice your opinions. It is suggest that you write up a BRIEF statement of your views on this and bring it with you to hand to the reps. Your voice is less likely to be “dropped” if they have your thoughts on paper.

Warranty of Habitability

2009-11-12T14:22:00.000-08:00

If you own rental property in the state of Colorado you need to make sure you’re aware of the new warrant of habitability statute that was past in 2008. As the end of 2009 approaches I still talk with property owners that are not aware of this rule. A complete copy of the House Bill is listed below for your review.

HOUSE BILL 08-1356

SECTION 1. 13-40-111 (1), Colorado Revised Statutes, is amended to read:

13-40-111. Issuance and return of summons. (1) Upon filing the complaint as provided in section 13-40-110, the clerk of the court or the attorney for the plaintiff shall issue a summons. The summons shall command the defendant to appear before the court at a place named in such summons and at a time and on a day which shall be not less than five business days nor more than ten calendar days from the day of issuing the same to answer the complaint of plaintiff. The summons shall also contain a statement addressed to the defendant stating: "If you fail to file with the court, at or before the time for appearance specified in the summons, an answer to the complaint setting forth the grounds upon which you base your claim for possession and denying or admitting all of the material allegations of the complaint, judgment by default may be taken against you for the possession of the property described in the complaint, for the rent, if any, due or to become due, for present and future damages and costs, and for any other relief to which the plaintiff is entitled. If you are claiming that the landlord's failure to repair the residential premises is a defense to the landlord's allegation of nonpayment of rent, the court will require you to pay into the registry of the court, at the time of filing your answer, the rent due less any expenses you have incurred based upon the landlord's failure to repair the residential premises."

SECTION 2. 13-40-123, Colorado Revised Statutes, is amended to read:

13-40-123. Damages. The prevailing party in any action brought under the provisions of this article is entitled to recover damages, reasonable attorney fees, and costs of suit; except that a residential landlord or tenant who is a prevailing party shall not be entitled to recover reasonable attorney fees unless the residential rental agreement between the parties contains a provision for either party to obtain attorney fees. Nothing in this section shall be construed to permit the entry of judgments in any single proceeding in excess of the jurisdictional limit of said court.

SECTION 3. Article 12 of title 38, Colorado Revised Statutes, is amended BY THE ADDITION OF A NEW PART to read:

PART 5
OBLIGATION TO MAINTAIN RESIDENTIAL PREMISES -
UNLAWFUL REMOVAL

38-12-501. Legislative declaration - matter of statewide concern - purposes and policies. (1) The general assembly hereby finds and declares that the provisions of this part 5 are a matter of statewide concern. Any local government ordinance, resolution, or other regulation that is in conflict with this part 5 shall be unenforceable.

(2) The underlying purposes and policies of this part 5 are to:

(a) Simplify, clarify, modernize, and revise the law governing the rental of dwelling units and the rights and obligations of landlords and tenants;

(b) Encourage landlords and tenants to maintain and improve the quality of housing; and

(c) Make uniform the law with respect to the subject of this part 5 throughout Colorado.

38-12-502. Definitions. As used in this part 5, unless the context otherwise requires:

(1) "Common areas" means the facilities and appurtenances to a residential premises, including the grounds, areas, and facilities held out for the use of tenants generally or whose use is promised to a tenant.

(2) "Dwelling unit" means a structure or the part of a structure that is used as a home, residence, or sleeping place by a tenant.

(3) "Landlord" means the owner, manager, lessor, or sublessor of a residential premises.

(4) "Rental agreement" means the agreement, written or oral, embodying the terms and conditions concerning the use and occupancy of a residential premises.

(5) "Residential premises" means a dwelling unit, the structure of which the unit is a part, and the common areas.

(6) "Tenant" means a person entitled under a rental agreement to occupy a dwelling unit to the exclusion of others.

38-12-503. Warranty of habitability. (1) In every rental agreement, the landlord is deemed to warrant that the residential premises is fit for human habitation.

(2) A landlord breaches the warranty of habitability set forth in subsection (1) of this section if:

(a) A residential premises is uninhabitable as described in section 38-12-505 or otherwise unfit for human habitation; and

(b) The residential premises is in a condition that is materially dangerous or hazardous to the tenant's life, health, or safety; and

(c) The landlord has received written notice of the condition described in paragraphs (a) and (b) of this subsection (2) and failed to cure the problem within a reasonable time.

(3) When any condition described in subsection (2) of this section is caused by the misconduct of the tenant, a member of the tenant's household, a guest or invitee of the tenant, or a person under the tenant's direction or control, the condition shall not constitute a breach of the warranty of habitability. It shall not be misconduct by a victim of domestic violence or domestic abuse under this subsection (3) if the condition is the result of domestic violence or domestic abuse and the landlord has been given written notice and evidence of domestic violence or domestic abuse as described in section 38-12-402 (2) (a).

(4) In response to the notice sent pursuant to paragraph (c) of subsection (2) of this section, a landlord may, in the landlord's discretion, move a tenant to a comparable unit after paying the reasonable costs, actually incurred, incident to the move.

(5) Except as set forth in this part 5, any agreement waiving or modifying the warranty of habitability shall be void as contrary to public policy.

(6) Nothing in this part 5 shall:

(a) Prevent a landlord from terminating a rental agreement as a result of a casualty or catastrophe to the dwelling unit without further liability to the landlord or tenant; or

(b) Preclude a landlord from initiating an action for nonpayment of rent, breach of the rental agreement, violation of section 38-12-504, or as provided for under article 40 of title 13, C.R.S.

38-12-504. Tenant's maintenance of premises. (1) In addition to any duties imposed upon a tenant by a rental agreement, every tenant of a residential premises has a duty to use that portion of the premises within the tenant's control in a reasonably clean and safe manner. A tenant fails to maintain the premises in a reasonably clean and safe manner when the tenant substantially fails to:

(a) Comply with obligations imposed upon tenants by applicable provisions of building, health, and housing codes materially affecting health and safety;

(b) Keep the dwelling unit reasonably clean, safe, and sanitary as permitted by the conditions of the unit;

(c) Dispose of ashes, garbage, rubbish, and other waste from the dwelling unit in a clean, safe, sanitary, and legally compliant manner;

(d) Use in a reasonable manner all electrical, plumbing, sanitary, heating, ventilating, air-conditioning, elevators, and other facilities and appliances in the dwelling unit;

(e) Conduct himself or herself and require other persons in the residential premises within the tenant's control to conduct themselves in a manner that does not disturb their neighbors' peaceful enjoyment of the neighbors' dwelling unit; or

(f) Promptly notify the landlord if the residential premises is uninhabitable as defined in section 38-12-505 or if there is a condition that could result in the premises becoming uninhabitable if not remedied.

(2) In addition to the duties set forth in subsection (1) of this section, a tenant shall not knowingly, intentionally, deliberately, or negligently destroy, deface, damage, impair, or remove any part of the residential premises or knowingly permit any person within his or her control to do so.

(3) Nothing in this section shall be construed to authorize a modification of a landlord's obligations under the warranty of habitability.

38-12-505. Uninhabitable residential premises. (1) A residential premises is deemed uninhabitable if it substantially lacks any of the following characteristics:

(a) Waterproofing and weather protection of roof and exterior walls maintained in good working order, including unbroken windows and doors;

(b) Plumbing or gas facilities that conformed to applicable law in effect at the time of installation and that are maintained in good working order;

(c) Running water and reasonable amounts of hot water at all times furnished to appropriate fixtures and connected to a sewage disposal system approved under applicable law;

(d) Functioning heating facilities that conformed to applicable law at the time of installation and that are maintained in good working order;

(e) Electrical lighting, with wiring and electrical equipment that conformed to applicable law at the time of installation, maintained in good working order;

(f) Common areas and areas under the control of the landlord that are kept reasonably clean, sanitary, and free from all accumulations of debris, filth, rubbish, and garbage and that have appropriate extermination in response to the infestation of rodents or vermin;

(g) Appropriate extermination in response to the infestation of rodents or vermin throughout a residential premises;

(h) An adequate number of appropriate exterior receptacles for garbage and rubbish, in good repair;

(i) Floors, stairways, and railings maintained in good repair;

(j) Locks on all exterior doors and locks or security devices on windows designed to be opened that are maintained in good working order; or

(k) Compliance with all applicable building, housing, and health codes, which, if violated, would constitute a condition that is dangerous or hazardous to a tenant's life, health, or safety.

(2) No deficiency in the common area shall render a residential premises uninhabitable as set forth in subsection (1) of this section, unless it materially and substantially limits the tenant's use of his or her dwelling unit.

(3) Unless otherwise stated in section 38-12-506, prior to being leased to a tenant, a residential premises must comply with the requirements set forth in section 38-12-503 (1), (2) (a), and (2) (b).

38-12-506. Opt-out. (1) If a dwelling unit is contained within a mobile home park, as defined in section 38-12-201.5 (3), or if there are four or fewer dwelling units sharing common walls or located on the same parcel, as defined in section 30-28-302 (5), C.R.S., all of which have the same owner, or if the dwelling unit is a single-family residential premises:

(a) A good faith rental agreement may require a tenant to assume the obligation for one or more of the characteristics contained in section 38-12-505 (1) (f), (1) (g), and (1) (h), as long as the requirement is not inconsistent with any obligations imposed upon a landlord by a governmental entity for the receipt of a subsidy for the residential premises; and

(b) For any dwelling unit for which a landlord does not receive a subsidy from any governmental source, a landlord and tenant may agree in writing that the tenant is to perform specific repairs, maintenance tasks, alterations, and remodeling, but only if:

(I) The agreement of the parties is entered into in good faith and is set forth in a separate writing signed by the parties and supported by adequate consideration;

(II) The work is not necessary to cure a failure to comply with section 38-12-505 (3); and

(III) Such agreement does not affect the obligation of the landlord to other tenants' residential premises.

(2) For a single-family residential premises for which a landlord does not receive a subsidy from any governmental source, a landlord and tenant may agree in writing that the tenant is to perform specific repairs, maintenance tasks, alterations, and remodeling necessary to cure a failure to comply with section 38-12-505 (3), but only if:

(a) The agreement of the landlord and tenant is entered into in good faith and is set forth in a writing that is separate from the rental agreement, signed by the parties, and supported by adequate consideration; and

(b) The tenant has the requisite skills to perform the work required to cure a failure to comply with section 38-12-505 (3).

(3) To the extent that performance by a tenant relates to a characteristic set forth in section 38-12-505 (1), the tenant shall assume the obligation for such characteristic.

(4) If consistent with this section a tenant assumes an obligation for a characteristic set forth in section 38-12-505 (1), the lack of such characteristic shall not make a residential premises uninhabitable.

38-12-507. Breach of warranty of habitability - tenant's remedies. (1) If there is a breach of the warranty of habitability as set forth in section 38-12-503 (2), the following provisions shall apply:

(a) Upon no less than ten and no more than thirty days written notice to the landlord specifying the condition alleged to breach of the warranty of habitability and giving the landlord five business days from the receipt of the written notice to remedy the breach, a tenant may terminate the rental agreement by surrendering possession of the dwelling unit. If the breach is remediable by repairs, the payment of damages, or otherwise and the landlord adequately remedies the breach within five business days of receipt of the notice, the rental agreement shall not terminate by reason of the breach.

(b) A tenant may obtain injunctive relief for breach of the warranty of habitability in any court of competent jurisdiction. In any proceeding for injunctive relief, the court shall determine actual damages for a breach of the warranty at the time the court orders the injunctive relief. A landlord shall not be subject to any court order for injunctive relief if the landlord tenders the actual damages to the court within two business days of the order. Upon application by the tenant, the court shall immediately release to the tenant the damages paid by the landlord. If the tenant vacates the leased premises, the landlord shall not be permitted to rent the premises again until such time as the unit would be in compliance with the warranty of habitability set forth in section 38-12-503 (1).

(c) In an action for possession based upon nonpayment of rent in which the tenant asserts a defense to possession based upon the landlord's alleged breach of the warranty of habitability, upon the filing of the tenant's answer the court shall order the tenant to pay into the registry of the court all or part of the rent accrued after due consideration of expenses already incurred by the tenant based upon the landlord's breach of the warranty of habitability.

(d) Whether asserted as a claim or counterclaim, a tenant may recover damages directly arising from a breach of the warranty of habitability, which may include, but are not limited to, any reduction in the fair rental value of the dwelling unit, in any court of competent jurisdiction.

(2) If a rental agreement contains a provision for either party in an action related to the rental agreement to obtain attorney fees and costs, then the prevailing party in any action brought under this part 5 shall be entitled to recover reasonable attorney fees and costs.

38-12-508. Landlord's defenses to a claim of breach of warranty - limitations on claiming a breach. (1) It shall be a defense to a tenant's claim of breach of the warranty of habitability that the tenant's actions or inactions prevented the landlord from curing the condition underlying the breach of the warranty of habitability.

(2) Only parties to the rental agreement or other adult residents listed on the rental agreement who are also lawfully residing in the dwelling unit may assert a claim for a breach of the warranty of habitability.

(3) A tenant may not assert a claim for injunctive relief based upon the landlord's breach of the warranty of habitability of a residential premises unless the tenant has given notice to a local government within the boundaries of which the residential premises is located of the condition underlying the breach that is materially dangerous or hazardous to the tenant's life, health, or safety.

(4) A tenant may not assert a breach of the warranty of habitability as a defense to a landlord's action for possession based upon a nonmonetary violation of the rental agreement or for an action for possession based upon a notice to quit or vacate.

(5) If the condition alleged to breach the warranty of habitability is the result of the action or inaction of a tenant in another dwelling unit or another third party not under the direction and control of the landlord and the landlord has taken reasonable, necessary, and timely steps to abate the condition, but is unable to abate the condition due to circumstances beyond the landlord's reasonable control, the tenant's only remedy shall be termination of the rental agreement consistent with section 38-12-507 (1) (a).

(6) For public housing authorities and other housing providers receiving federal financial assistance directly from the federal government, no provision of this part 5 in direct conflict with any federal law or regulation shall be enforceable against such housing provider.

38-12-509. Prohibition on retaliation. (1) A landlord shall not retaliate against a tenant for alleging a breach of the warranty of habitability by discriminatorily increasing rent or decreasing services or by bringing or threatening to bring an action for possession in response to the tenant having made a good faith complaint to the landlord or to a governmental agency alleging a breach of the warranty of habitability.

(2) A landlord shall not be liable for retaliation under this section, unless a tenant proves that a landlord breached the warranty of habitability.

(3) Regardless of when an action for possession of the premises where the landlord is seeking to terminate the tenancy for violation of the terms of the rental agreement is brought, there shall be a rebuttable presumption in favor of the landlord that his or her decision to terminate is not retaliatory. The presumption created by this subsection (3) cannot be rebutted by evidence of the timing alone of the landlord's initiation of the action.

(4) If the landlord has a right to increase rent, to decrease service, or to terminate the tenant's tenancy at the end of any term of the rental agreement and the landlord exercises any of these rights, there shall be a rebuttable presumption that the landlord's exercise of any of these rights was not retaliatory. The presumption of this subsection (4) cannot be rebutted by evidence of the timing alone of the landlord's exercise of any of these rights.

38-12-510. Unlawful removal or exclusion. It shall be unlawful for a landlord to remove or exclude a tenant from a dwelling unit without resorting to court process, unless the removal or exclusion is consistent with the provisions of article 18.5 of title 25, C.R.S., and the rules promulgated by the state board of health for the cleanup of an illegal drug laboratory or is with the mutual consent of the landlord and tenant or unless the dwelling unit has been abandoned by the tenant as evidenced by the return of keys, the substantial removal of the tenant's personal property, notice by the tenant, or the extended absence of the tenant while rent remains unpaid, any of which would cause a reasonable person to believe the tenant had permanently surrendered possession of the dwelling unit. Such unlawful removal or exclusion includes the willful termination of utilities or the willful removal of doors, windows, or locks to the premises other than as required for repair or maintenance. If the landlord willfully and unlawfully removes the tenant from the premises or willfully and unlawfully causes the termination of heat, running water, hot water, electric, gas, or other essential services, the tenant may seek any remedy available under the law, including this part 5.

38-12-511. Application. (1) Unless created to avoid its application, this part 5 shall not apply to any of the following arrangements:

(a) Residence at a public or private institution, if such residence is incidental to detention or the provision of medical, geriatric, education, counseling, religious, or similar service;

(b) Occupancy under a contract of sale of a dwelling unit or the property of which it is a part, if the occupant is the purchaser, seller, or a person who succeeds to his or her interest;

(c) Occupancy by a member of a fraternal or social organization in the portion of a structure operated for the benefit of the organization;

(d) Transient occupancy in a hotel or motel that lasts less than thirty days;

(e) Occupancy by an employee or independent contractor whose right to occupancy is conditional upon performance of services for an employer or contractor;

(f) Occupancy by an owner of a condominium unit or a holder of a proprietary lease in a cooperative;

(g) Occupancy in a structure that is located within an unincorporated area of a county, does not receive water, heat, and sewer services from a public entity, and is rented for recreational purposes, such as a hunting cabin, yurt, hut, or other similar structure;

(h) Occupancy under rental agreement covering a residential premises used by the occupant primarily for agricultural purposes; or

(i) Any relationship between the owner of a mobile home park and the owner of a mobile home situated in the park.

(2) Nothing in this section shall be construed to limit remedies available elsewhere in law for a tenant to seek to maintain safe and sanitary housing.

SECTION 4. Effective date - applicability. (1) This act shall take effect September 1, 2008.

(2) However, if a referendum petition is filed against this act or an item, section, or part of this act during the 90-day period after final adjournment of the general assembly that is allowed for submitting a referendum petition pursuant to article V, section 1 (3) of the state constitution, then the act, item, section, or part, shall not take effect unless approved by the people at a biennial regular general election and shall take effect on the date specified in subsection (1) or on the date of the official declaration of the vote thereon by proclamation of the governor, whichever is later.

(3) This act shall apply to rental agreements entered into or extended or renewed on or after the effective date of this act.

Approved: June 2, 2008

Do you have goverment contracts or participate in Section 8?

2009-10-13T08:38:00.000-07:00

Did you know if you have a federal contract with the government you are required to use the E-Verify system. The E-Verify system is used to establish work eligibility for your employees. This rule went into effect September 8, 2009. If your not using the system to screen employees contact us and we can add it to your current screening package.

Property owners who participate in the Section 8 program may also be required to participate in the E-Verify program. If you operate a company with employees you should add this additional screening to your current package. Contact us for more details about the E-Verify program.

Changes in Section 8

2009-09-29T10:09:00.000-07:00

Do you provide Section 8 rentals? If so you should be aware of recent changes in the Endless Lease provision. As a property owner you may now exercise the right to non-renew your Section 8 renters lease when it expires. If you need more information about the Endless Lease provision and other changes follow the link below.

http://www.hud.gov/offices/adm/hudclips/notices/pih/files/96-23PIHN.doc

Management 101 - Frozen Pipes

2009-09-29T09:52:00.000-07:00

If you look outside you may have noticed the leaves on the trees starting to change colors and a chill in the air. Yes winter is around the corner and that means the possibility of frozen pipes. Frozen pipes can create extensive and expensive damage to a property. As the temperature drops water expands as it freezes in the pipe. When the pipe begins to warm up and the ice melts it often reveals small cracks or breaks in the pipes. The first sign of a frozen pipe will be an interruption of water flow. If residents report such interruption during freezing weather, you or your Community Manager should immediately check for the possibility of frozen pipes.
If you suspect freezing temperatures may hit your area we recommend taking some preventive measures on your rental properties. First remind your renters to leave cabinet doors open to expose pipes to higher temperatures. Make sure they close windows to the outside and to keep the temperature in the rental above 62 degrees. If the unit is vacant follow the same steps to prevent surprise next time you show the property to a prospective renter.
If your renter informers you of a frozen pipe or water loss you should first examine the water meter. Check for leaks. Is the frost plate (bottom portion of the meter) cracked? If so, the meter is probably frozen. Never try to thaw the water meter. You should contact the water department for more help. The actual water meter freezing is rare most likely it’s a frozen pipe. Check the basement or crawl space and any pipes that run along an exterior wall. The pipe will often have ice on the exterior. If you are not sure which part of the pipe is frozen use your hand and look for the coldest section of the pipe. Once the pipe has been located you should try to thaw the pipe. Use caution the pipe may have already been damaged but it is not leaking because the water is frozen. Do not use any type of open flame. The use of a hair dryer, light bulb or electric heat tape is recommended. You should start warming the pipe from the edge closest to the faucet that is not working and work your way backwards. Keep the heat source moving and not concentrated in one spot to prevent damage. Since the possibility of water leaking or the pipe breaking is a real possibility we recommended that you use only heavy-duty extension cords with grounded plugs. If appliances get wet you should shut off power to the property before removing them to prevent possible electrocution. If you’re not successful in thawing the pipe or are unsure which pipe is frozen it may be time to call in a professional.

2009 Economic Conference

2009-08-03T10:27:00.000-07:00

If your involved in property management and didn't make it to the 2009 Economic Conference you really missed out on some valuable information. If you want to see what you missed out on visit http://www.erentalservicesinc.com/news.html to read about the general vacancy and rent overview for Colorado and what to expect for the future.

Management 101

2009-07-02T08:10:00.000-07:00

RSI will be posting a series of blogs designed to address issues that face property owners. Each of the blog posts will talk about a specific issue such as frozen pipes, crime and many other. Make sure you follow this blog to stay in the loop.

Still using your dogs name as your password?

2009-06-03T14:35:00.000-07:00

Do you currently use the www.erentalservicesinc.com website to conduct background checks? If so I’m sure you are aware of the danger and potential risks associated with placing sensitive information online. With this in mind, Rental Services, Inc. would like to make a few suggestions when using the RSI website and the internet in general.

• Do not send sensitive or personal information by email. (i.e. Rental Applications)

• When you get ready to login to a secure site make sure it starts with https and not http.

• Don’t download anything unless you are sure it’s safe.

• Never click on pop-ups.

• When you’re in a secure site don’t open up another browser windows to a different site.

• Don’t use the same password for all of your different accounts.

• Make sure your password has numbers and a mix of upper and lower case letters.

• Change your password every 90 days.

• Make sure to log out and close your browser when you’re done.

Using the RSI website places the safety of your applicant’s personal information in your hands. Keeping this personal information safe should be a priority.

Avoid fraud; don't hire a criminal. By Al Lewis, Denver Post columnist

2009-06-03T13:13:00.000-07:00

Dear Friends,

Each month I try to talk about an issue that pertains to the Multi-Housing Industry. As I read different articles and publications I thought the following article was really important to any type of company that has employees. As many of you know Rental Services has expanded its services to include pre-employment screening. I think the following article demonstrates the importance of pre-screening employees.

Avoid fraud; don't hire a criminal By Al Lewis Denver Post columnist

Wherever there is a big pot of money, somebody is trying to steal from it.
The folks at Alliance Commercial Partners know this now.

The Lakewood-based commercial real estate firm has money flying everywhere. Since its 1996 founding, the firm has acquired or developed 72 properties across the nation valued around $775 million. Earlier this month, Alliance sold Writer Square in downtown Denver for $30.3 million. In managing all that real estate, the firm is constantly wiring funds to leasing agents, appraisers, attorneys, banks and vendors.

Enter Patricia Jagielski Ragusa, 43, who was Alliance's first employee in April 1997. Alliance made Ragusa its director of portfolio accounting and authorized her to transfer money over the Internet so bills would get paid. Alliance even gave Ragusa, a single mother of two, flexible hours and permission to work from her Littleton home.

Ragusa might have seemed innocuous at 4 feet 11 inches - a slight, white, middle-class accountant with brown eyes and shoulder-length hair.

But here's what Alliance executives didn't know: "Ragusa is a multi-state offender with a criminal history," according to a Lakewood police report. Her rap sheet includes felony theft, unlawfully carrying a weapon, and heroin possession, according to a police report. If Alliance or its employment agency ever ran a criminal background check on Ragusa, they should have found this out.

Last month, Alliance's chief financial officer, Douglas McCormick, noticed that credits to a certain account came up $76,000 short. He soon discovered that money had been wired to a bank account held in the name of Ragusa's son.

Ragusa offered no explanation at first. Later, she indicated "that someone must have gotten her password and her son's information, and made the transfer," according to an affidavit by Lakewood economic crimes detective Dave Voskamp. Why? Maybe someone just wanted to get her fired, Ragusa claimed.

A deeper look at Ragusa's story revealed 72 transactions that police say were fraudulent. Police allege that, since April 2001, Ragusa illegally wired more than $1 million to accounts held by herself, her day-trader boyfriend in California and her two teenage children. Only Ragusa has been charged. Police arrested her Sept. 16. She is free on bond.

Ragusa and her attorney, Robert Grossman, declined to comment, as did McCormick and Alliance president Richard Stone. It will be a long and embarrassing ordeal for both Ragusa and Alliance - a company that boasts a "management and staff with a combined 80 years experience in the real estate industry."

"She's a bad actor, but the company made it very easy for her," said Daniel Predovich, an independent fraud examiner in Highlands Ranch who agreed to review Ragusa's case for this column. Not only did Alliance fail to uncover Ragusa's past, but it didn't have proper internal controls for handling money, Predovich said.

The company simply was too trusting. "There should have been a segregation of duty so that three or four people were involved in a wire transfer rather than just one," Predovich said.

Predovich said embezzlement cases like this keep him in business as a private fraud investigator.
Often, these cases are not reported to police, to avoid embarrassment. They make companies - particularly those that depend on their ability to attract investors - look foolish. But Predovich says companies typically forgo criminal background checks and aren't keen about those pesky internal controls either.

"Most folks who've hired me to do a fraud investigation never expected that anybody would steal from them," Predovich said.

Trust is the basis of all business transactions. But when you give someone the combination to the safe, it's a good idea to know who they are.

"Employees with need, greed and opportunity can and will steal unless management is alert, and good internal controls are in place," Predovich said.

Al Lewis' column appears Sundays, Tuesdays and Fridays. Reach him at 303-820-1967 or mailto:alewis@denverpost.com

I hope this article shows how even your most trusted employees can present a risk. Quality pre-screening could help mitigate this from happening to you and your company. If you don’t currently pre-screen call us. If you currently are using a company call us for a competitive quote. If you have any questions about Pre-Employment screening please contact me at 303-420-1212.

Sincerely,

Jeff Malone
Regional Marketing Director
Rental Services, Inc.