Minneapolis
Rental Property Owners Workshop
If you’re new here (and you like what you read), you may want to subscribe to my RSS feed. Thanks for visiting! Scott Community Crime Prevention/SAFE of the Minneapolis Police Department and Minneapolis Housing Inspections are providing this workshop. Attending the workshop provides owners and managers with valuable information, resources and opportunities to [...]
Community Crime Prevention/SAFE of the Minneapolis Police Department and Minneapolis Housing Inspections are providing this workshop. Attending the workshop provides owners and managers with valuable information, resources and opportunities to network with other property owners. Workshop topics:
-
- The ABCs of property management
- Working with the Minneapolis Police Department
- Working with Housing Inspections
- Tenant behavior issues
- The risk of lead poisoning
- Hennepin County Housing Court / mediation
- Networking opportunities
DATE: Thursday, October 23, 2008
WHEN: 5 p.m. to 9 p.m.
(Registration at 4:30 p.m.)
PLACE: St. Mary’s Greek Orthodox Church
3450 Irving Ave. S.
Minneapolis, MN 55408
Cost: $20.00 — checks payable to City of Minneapolis (Includes cost of workshop, materials, DVD on Hennepin County Housing Court, and box meal.)
Pre-registration is required. RSVP by Thursday, October 16, 2008. (registration limited to 100 participants). REGISTRATION AFTER OCT. 16 WILL BE $30.
Return the registration form (http://www.ci.minneapolis.mn.us/police/outreach/docs/RPOW2.pdf) $20.00 check payable to the City of Minneapolis by Thursday, October 16, 2008 to:
RPOW
Community Crime Prevention/SAFE
4119 Dupont Ave. N.
Minneapolis, MN 55412
Questions? E-mail ccpsafe@ci.minneapolis.mn.us or call the message line at 612-673-2812.
How TJ Waconia’s Legacy is Still Affecting North Minneapolis
Everyone in Minneapolis seems to have a different take on the TJ Waconia fraud cases associated with North Minneapolis. I don’t claim to know everything about it or even have an opinion if they are guilty or not. A great summary was written by MyFox9 News, with a nice counter point by the Minneapolis Mirror.
In [...]
Everyone in Minneapolis seems to have a different take on the TJ Waconia fraud cases associated with North Minneapolis. I don’t claim to know everything about it or even have an opinion if they are guilty or not. A great summary was written by MyFox9 News, with a nice counter point by the Minneapolis Mirror.
In April 2008, the City of Minneapolis “took charge” of 141 North Minneapolis properties previously owned by TJ Waconia. The interesting twist is these properties are no longer owned by TJ Waconia, but by the banks that foreclosed on them. Almost all of those properties are now on the market for sale via the MLS.
Recently, I was trying to write a purchase agreement on one of these properties. I spoke to the listing agent to see if the property was still available. They explained that they receently received an email detailing the following:
- A buyer would submit a purchase agreement as normal on one of these properties.
- Once it was accepted by the bank, the buyer’s agent would need to contact the Greater Metropolitan Housing Corporation, a non-profit.
- The non-profit will then have a new truth in housing inspection performed.
- The buyer will then be required to sign an assumption of all required repairs (which is typical with foreclosure properties).
- The buyer will also be required to submit a repair plan for the property including cost estimate, time tables, and contractor names.
- Once received, the non-profit will submit all this information to the attorney overseeing the lawsuit against TJ Waconia. He will approve the sale. How will approve it or what other information he may require is still uncertain.
- Only then can the closing be scheduled as the title company will need this approval in place to proceed.
Quote by listing agent for time requirement from acceptance to closing=90 days!
How does the City of Minneapolis believe this is going to help North Minneapolis? What buyers are going to wait 90 days to close on one of these 141 properties where there are almost 600 other ones to buy?
Minneapolis Investment Property License Lost for Good
I have written several times about Minneapolis Rental Licensing challenges:
Minneapolis Rental Licensing Searching for Unlicensed Rentals
New Minneapolis Rental Conversion Fee
I do understand the need for some regulation, even if I don’t agree with the above items. The newest tale in the Minneapolis Licensing saga came up at the end of last week. Our [...]
I have written several times about Minneapolis Rental Licensing challenges:
I do understand the need for some regulation, even if I don’t agree with the above items. The newest tale in the Minneapolis Licensing saga came up at the end of last week. Our rehab contractor was at the City of Minneapolis checking on which customers would be required to pay the Rental Conversion Fee on the North Minneapolis houses that they just purchased.
When the city person checked the computer for a very nice 3 bedroom, 1.5 story house at 34xx Russell Ave N that a customer had recently purchased, she told our contractor that this property had lost its rental license. At first, this made no sense as I always understood that the property held the license, but just the owner/manager could lose the license on a house. I assumed (I guess now incorrectly), that if the house was sold, the new owner could apply and receive a Minneapolis rental license.
I was wrong. This house had its license stripped and even going through foreclosure, having a new owner, and paying the rental conversion fee, would not allow this property to be a rental. I have come to understand that the status of a rental license is like the “grandfather” status that we refer to in regards to code compliance. Definition of grandfather status: As building codes have changed over the years, houses previously built to the then current codes are said to be grandfather’ed in and they are not required to be updated to the current code standards. This is why you still see knob and tube wiring in houses built 100 years ago, even though that code changed 50 years ago.
Luckily this buyer was still in their inspection period and we quickly cancelled the contract. If we had not found this issue, this investor could have been left with a house thats only use was for an owner occupant. The only option would have been to flip the property, which could have been a difficult situation to resell even a rehab property in North Minneapolis.
The city said that restoring the license is very similar to obtaining a variance on any other city regulation. There is a large packet of information you need to complete. Then you will need to speak in front of the licensing board. I have been told that in these situations, you are almost always fighting an uphill battle as it is much easier for them to deny your request.
Despite buying and rehabbing almost 100 houses in Minneapolis, this is the first time that anyone in our group had seen this issue. I recommend that you confirm license availability prior to closing on your next Minneapolis Investment Property.
Scott Ficek is a Minnesota Real Estate Agent with RE/MAX Advantage Plus in Minneapolis and helps new and seasoned investors buy and own Minnesota Investment Property. Find his website full of useful information at Minnesota Investment Real Estate or use it to search the Minnesota MLS for Investment Properties.
Minneapolis Rental Property Workshop
Community Crime Prevention/SAFE of the Minneapolis Police Department and Minneapolis Housing Inspections are providing this workshop. Attending the workshop provides owners and managers with valuable information, resources and opportunities to network with other property owners. Workshop topics:
The ABCs of property management
Working with the Minneapolis Police Department
Working with Housing Inspections
Tenant behavior issues
[...]
Community Crime Prevention/SAFE of the Minneapolis Police Department and Minneapolis Housing Inspections are providing this workshop. Attending the workshop provides owners and managers with valuable information, resources and opportunities to network with other property owners. Workshop topics:
- The ABCs of property management
- Working with the Minneapolis Police Department
- Working with Housing Inspections
- Tenant behavior issues
- The risk of lead poisoning
- Hennepin County Housing Court / mediation
- Networking opportunities
| DATE: | Thursday, October 23, 2008 |
| WHEN: | 5 p.m. to 9 p.m. |
| (Registration at 4:30 p.m.) | |
| PLACE: | St. Mary’s Greek Orthodox Church |
| 3450 Irving Ave. S. | |
| Minneapolis, MN 55408 |
Cost: $20.00 — checks payable to City of Minneapolis (Includes cost of workshop, materials, DVD on Hennepin County Housing Court, and box meal.)
Pre-registration is required. RSVP by Thursday, October 16, 2008. (registration limited to 100 participants). REGISTRATION AFTER OCT. 16 WILL BE $30.
Return the registration form (PDF) and $20.00 check payable to the City of Minneapolis by Thursday, October 16, 2008 to:
RPOW
Community Crime Prevention/SAFE
4119 Dupont Ave. N.
Minneapolis, MN 55412
Questions? E-mail ccpsafe@ci.minneapolis.mn.us or call the message line at 612-673-2812.
North Minneapolis Crime Rate Drops 17%
Numbers were recently released that show that violent crime in Minneapolis and specifically North Minneapolis dropped 14% and 17% respectively. As much as I would like to attribute all of that to good investors and good landlords buying North Minneapolis properties to clean up the foreclosure mess, I don’t think we can claim complete [...]
Numbers were recently released that show that violent crime in Minneapolis and specifically North Minneapolis dropped 14% and 17% respectively. As much as I would like to attribute all of that to good investors and good landlords buying North Minneapolis properties to clean up the foreclosure mess, I don’t think we can claim complete credit. But I do believe it helps!
Read the full KARE 11 article here.
Scott Ficek is a Minnesota Real Estate Agent with RE/MAX Advantage Plus in Minneapolis and helps new and seasoned investors buy and own Minnesota Investment Property. He owns and manages almost 30 investment property units from single family to multi-family. Find his website at www.minnesotainvestmentrealestate.com or use it to search the MLS for Investment Properties.
Minneapolis Rental Licensing is Looking For You
(If you have an unlicensed rental property in Minneapolis)
Maybe I am last to know, but I just heard that Minneapolis has hired two “unlicensed property finders”. These inspectors will drive up and down the streets, search Craig’s list, and Rentals.com looking for properties for rent. They will then check their lists and see [...]
(If you have an unlicensed rental property in Minneapolis)
Maybe I am last to know, but I just heard that Minneapolis has hired two “unlicensed property finders”. These inspectors will drive up and down the streets, search Craig’s list, and Rentals.com looking for properties for rent. They will then check their lists and see if that property has a rental license.
If the property does not have a current Minneapolis rental license, the City will:
- Send the owner a letter stating they are in violation of city codes as you can not even “offer” the property for rent before you obtain a Minneapolis rental license.
- Fine the owner $250 for not obtaining a license prior to putting the property up for rent.
- Mostly likely you will be subject to the $1000 Minneapolis Rental Conversion Fee.
- Confirm the owner does not have any outstanding code violations, no delinquent property taxes or assessments on the rental dwelling, nor shall any licensee be delinquent on any financial
obligations owing to the city under any action instituted pursuant to Chapter 2, Administrative Enforcement and Hearing Process. - Require a full property rental inspection where the city may require changes and upgrades to “encourage” property owners to maintain the City’s housing stock.
- Possibly charge a flagrant or multiple violator with a misdemeanor.
Keep those licenses up to date and obtain them as soon as you buy those Minneapolis properties!
Scott Ficek owns and manages almost 30 investment property units from single family to multi-family. Find his website at www.minnesotainvestmentrealestate.com or receive his blog via your RSS Feed or in your Email. He is also a Minnesota Real Estate Agent with RE/MAX Advantage Plus in Minneapolis and helps new and seasoned investors buy and own Minneapolis Investment Property.
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