A beautiful end to Tuesday.
Here’s a profound truth those in the real estate industry will readily acknowledge:
Owning and Managing Real Estate is uniquely challenging.
I hear it from my Property Owner/Manager clients. I experience it when I am involved in negotiating in landlord/tenant disputes.
If you own or manage investment real estate, you are involved in messy business.
I believe that is why, at least in West Michigan, there is an opportunity for good property management companies – and a handful of companies I work with locally do it really well.
DOJ Sues Landlord for Sexual Harassment Allegations
Some of the pitfalls property owners/managers have to watch out for are illustrated in a recent press release announce by the Department of Justice.
Yesterday the Department of Justice announced that it filed suit against Owners and Managers related to allegations of sexual harassment in Kansas properties.
According to the press release, the owner and manager:
sexually harassed female residents at the rental properties from at least 2010 to 2014. According to the complaint, Thong Cao engaged in harassment that included, among other things, making unwelcome sexual advances and comments, engaging in unwanted sexual touching, and evicting tenants who refused to engage in sexual conduct with him.
Sexual harassment is a violation of several Federal and State laws.
Georgia Real Estate Investor Sentenced to 16 months in Prison
Today, the DOJ announced that a Georgia Real Estate Investor was sentenced to 16 months in Prison for bid rigging public foreclosure sales.
According to the Press Release:
The evidence at trial showed that Purdy and his co-conspirators agreed not to compete for residential real estate at foreclosure auctions in Forsyth County and defrauded lender banks and homeowners. Among other methods, the conspirators held secret “second auctions” of properties, dividing among themselves the auction proceeds that should have gone to pay off debts against the properties and, in some cases, to homeowners.
In today’s real estate market, bidding is competitive. If you are asked to take part in anything like this at your local sheriff’s sale – DON’T DO IT.
Lying About Emotional Support Animals, a Crime?
Michigan Law requires a public accommodation to permit the use of a service animal by a person with a disability.
Among other things:
“A public accommodation shall not ask a person with a disability to remove a service animal from the premises due to allergies or fear of the animal. A public accommodation may only ask a person with a disability to remove his or her service animal from the premises if either of the following applies:
(a) The service animal is out of control and its handler does not take effective action to control it.
(b) The service animal is not housebroken” MCL 750.502c
Landlords and property owners should heed the warning of General Deputy Assistant Secretary Bryan Greene of the U.S. Department of Housing and Urban Development’s Fair Housing and Equal Opportunity.
“Many people with disabilities require the assistance of an animal to carry out major daily activities,” said “Complaints alleging disability discrimination now account for the majority of the complaints HUD receives. HUD will continue to enforce the law and educate the public on the rights of people with disabilities in housing.”
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However, a Michigan Senate bill proposed on November 28, 2017 would make it a crime to falsely represent the need for a service animal to a landlord. Violation would also give right to a Landlord to evict such tenant.
This is an interesting bill. I look forward to seeing if it gains any traction.
Two takeaways from this news headline:
1. It is worth being proactive and engaging legal counsel.
Issues arise. When in doubt, e-mail or call your attorney.
2. Residential Real Estate Investment is highly regulated.
If you are a landlord leasing out “residential” property as opposed to purely commercial property (business tenant), you are under much more stringent regulations. You must comply with Federal laws, like the Fair Housing Act and state laws, like the Michigan Truth in Renting Act. Make sure you are operating lawfully.
Questions? Comments?
email: Jeshua@dwlawpc.com
Twitter: @JeshuaTLauka
Purpose Driven General Counsel 