The City of Greensboro began the Rental Unit Certificate of Occupancy (RUCO) program in 2003. Landlords are required to receive a certificate — verifying that there are no code violations — for every rental unit.
Since RUCO began, there has been a dramatic decline in the number of violations. (See graph at Greensboro Housing Coalition’s web site.) But now, the future of this successful program is in jeopardy.
City Council member Nancy Vaughan has suggested that RUCO change from a mandatory program to self-report. (She has since seemed to be reconsidering her position.) Representatives from TREBIC (Triad Real Estate and Building Industry Coalition) and the Greensboro Landlords Association would like to see RUCO abandoned. Housing advocates, such as Greensboro Housing Coalition and Greensboro Neighborhood Congress, fiercely oppose any changes.
City staff (Engineering & Inspections and Fire Department) also argue for keeping RUCO. The Greensboro Human Relations Commission has an interest in the outcome of the fight. Council member Robbie Perkins supports keeping the program. (source: Jordan Green)
Meanwhile, landlord Bill Burkley, who’s worked as a paid political consultant to some Council members, is appealing fines for code violations, and has just had his case continued before the advisory board which is pursuing the elimination of RUCO (source: Amanda Lehmert, via Fec) Five Council members who were contacted for a news story say they weren’t contacted or lobbied by Burkley.
I oppose self-report on code violations, because I know that some tenants won’t report, for fear of landlord retaliation, including losing their housing. Just recently, I’ve seen three examples of renters who fear retaliation and/or have already been retaliated against for reporting code violations. (Update: In all three cases, these were serious violations requiring immediate attention, that likely would have resulted in a 48-hour vacate notice, if not fixed within that time period.)
I could not obtain permission to share the stories of any of these renters. I was told: “Do not blog about this.†“Don’t tell anybody.†“You can’t say anything.†It’s frustrating, but their refusal to even allow me to share their stories anonymously proves the point that self-report doesn’t work. RUCO’s mandatory inspection system has been proved to work, by decreasing code violations markedly.
I understand why TREBIC and the Greensboro Landlords Association oppose RUCO. It forces landlords to meet code, levies fines for violations and prevents rental of units without certificates. In other words, it costs landlords money, and both those organizations represent landlords. But that doesn’t make their opposition right.
The worst part about the push to go to elimination of RUCO and self-report of violations is that it pits power and money (TREBIC, Greensboro Landlords Association) against poor people who are most likely to live in substandard housing and fear reporting housing code violations. Power vs. poverty is an unfair fight. Too often, power wins. I’m hoping and praying that many advocates — and renters! — will step up and fight for the continuation of this successful program.
Be one of the voices in support of RUCO! Email Council members. Speak during the public comment period at a Council meeting. Write a letter to the editor — News & Record, YES! Weekly, Rhino Times. Blog, Facebook, Twitter. Say something!
Also posted at CaraMichele.com
UPDATED, 08/28/10: My landlord friends tell me via the comments below, and in private conversations, that the power vs. poverty analogy is not accurate. Â I’m still listening. Meanwhile, there’s more.
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Michele, I would like to talk to you about RUCO. I support Ruco, I have over 80 rental units and have been in this business over thirty years. Its not Power vs Poverty. Thats a smokes screen. its about money. We are about to collapse as an industry and simply cannot take on any more expenses. I finished paying my last year taxes on June 30, and I am one of the lucky ones because many,many of GSO landlords have not yet paid and cannot. If we go under, who will provide the necessary housing? It IS that bad and forclosures are coming for many of us. I have Certificates on my propertiee, but if a disgruntled tenant complains, it cost me hundreds of dollars
Wayne, I’d definitely like to hear more of your perspective on RUCO. I don’t really get the connection between RUCO and taxes. Let’s talk…
OK, I would like that. I guess I left it hanging about taxes. Taxes are a major cost on rental properties along with insurances and combined they usurp about three months of rents. My taxes last year were over eighty-thousand dollars and insurances totaled about forty thousand. Many landlords are far behind and are subject to seizure FROM LAST YEARS taxes. This is just for taxes and insurances. Debt service, maintenance, office expenses, Attorney Fees, Collections, Court Costs all come out of the remaining rents. Consider that our occupancy rate is terrible, sometimes six months vacant and you can see its a losing proposition. Ride down any street, particularly Glenwood and count the FOR RENT signs.
I have no problem with RUCO excepting it is another expense. Consider that every time you are inspected it costs at least a couple hundred dollars. My point is that I have a good history and I have my Certificates. I don’t think I should be considered with the PROBLEM landlords. We all know who they are. I SUPPORT RUCO. I have served on committees concerning RUCO. I now serve on the Minimum Standard Housing Board. But until this economy picks up, I want relief-NOW. Consider also, if a large portion of us goes bankrupt, Who will have to pick up our slack?
Mr. Stutts, acording to your math, after taxes and insurance, you are in the black for about $360,000.
“I don’t think I should be considered with the PROBLEM landlords. We all know who they are.”
who are they?
“if a large portion of us goes bankrupt, Who will have to pick up our slack?”
It doesn’t seem like you are in danger of bancruptcy, unless you borrowed heavily to purchase your properties, and have high debt payments.
If debt is the case with many landlords not making ends meet, should the community allow them to not have to take care of their renters properties to subsidize poor business decisions, so the landlords can maintain profit margins?
Mr Hartzman- In all respect to you, you don’t understand the very basics of our problem. You are ASSUMING most of your ideas. Where in the name of God do you find $ 360,000 by my math? Do you think MOST of our properties are paid for? Have you heard of lead paint, asbestos, radon gas, drugs, and many other things we have to deal with. With the huge amount of vacancies with no income, sometimes for months, how do we pay our bills.
There is an old adage in our business, “You don’t make money on the rent, you make money on the appreciation combined with inflation”
I went in this for the long haul. We are going backwards. Values are falling and because of high vacancies, the income simply is not there. In the last three years I have lost a hell of a lot of money and we have no one advocating for us.
Remember, we lost 20,000 jobs in this area from the textiles companies leaving. A lot of the textile workers rented . Now comes this recession and it is devastating to us. And I will say this again, If we go under, the City of Greensboro will have to provide and your taxes will go apes–t. think about it.
“Taxes are a major cost on rental properties along with insurances and combined they usurp about three months of rents.
My taxes last year were over eighty-thousand dollars and insurances totaled about forty thousand.
Debt service, maintenance, office expenses, Attorney Fees, Collections, Court Costs all come out of the remaining rents.”
Taxes + Insurance = Three Months Rent.
80k + 40k = 120k
120k * 4 = 480k
480k – 120k = $360,000
“120k * 4 = 480k”
So Mr. Stutts has at least 480 rental units.
Mr Hartzman- You are assuming 12 months total rents, $ 480,000 will be collected. What if you only collect 5 or 6 months rent? If you are interested, I’ll be glad to show you and explain. I’m almost 75 yrs old and I have been in building, development, sales and rentals over 50 years. I ran a land surveying business over 40 years here in Greensboro which my son runs today. I’m not trying to pull your chain but you don’t know what you are talking about. And yes, this business IS that bad. And by the way, if you don’t pay the taxes they WILL takes the properties.
Mr. Stutts, I don’t mean to offend.
If Taxes and Insurance = Three Months Rent,
unless it does’nt if the rents are lower,
and if so, then taxes and insurance are more than three months rent.
Wayne, I don’t dispute your figures. I’m very familiar with how the rental business works, and I know that a lot of landlords are struggling because of the economy. But help me understand how that relates to RUCO? Landlords still have to keep their houses up to code. An initial inspection costs a landlord nothing. If code violations are found, they have to be fixed, but they should be fixed anyway. And tell me more about the disgruntled tenant thing? Are they complaining about things that are real issues? Are they making things up? Are they messing things up and then complaining? I’m not sure I’m following you… Thanks, Wayne.
(P.S. to my blog readers: Wayne is a 100% good guy. I know him and I trust him.)
Do you mean three months of rent at full capacity?
There are several scenarios to explain
1-Disgruntled Tenant- I took an application last month. She made a deposit wishing to move in on July 10, then she wanted to change the date to July 20. on that date she still did not have all the money and I allowed her to put some furniture in the unit, but I did not allow her to move in, nor give her a key. On July 30 she still did not have all of the remaining money , She paid 1/2 the balance and I agreed to let her move in w/ the promise to pay the balance on August 6, and of course she didn;t pay. In the meantime we had a dispute when her rent actually would begin and I tried to compromise. She was in the unit and called the COG Inspections and complained about repairs. Now I have to evict her and probably loose a months rent getting her out. She has a disable child and softee me let her in/. She even removed a smoke alarm to make things worse. Even tho she had signed the lease stating the property was in move-in condition and the smoke alarms all were working.
This is taking too much typing to explain. I will call if you wish, because I still haven’t explained how RUCO comes into this. But hopefully you will understand how RUCO is used against us. I have many sob stories. Think about this, do you know of any other business in GSO is penalized by simply complaing to the COG, The inspectors have to come because of complaints. There is no penalty to the complainer for any frivious actions and IT always falls back to the owner. I keep my houses way above RUCO. Check with the COG or Beth or anyone in this business and you will find I manage my properties well. Why should I not given some credit and leave me alone in these trying times. If I fall into the bad landlord status, then come after me. When I get a complaint, I have to drop everything and answer the complaint and I can’t rent my house till I have cleared the inspection, This is like the last straw, I would get out of tomorrow if I could. It like no one understand everyone is wanting clean and safe housing but wanting us to pay for it, I’m damn tired of being pushed to the limit and losing my rear end at the same time.
my wife and I have all but all but depleted our retirement trying to hang on in this stupid business. Sorry to unload on you Michele
Ps, I will bet any amount of money that I can go in ANY house in this town including Mayor Knights and find several things wrong. I am a licensed gen contractor and I know full well construction
ps, again/
“and I know a lot of landlords are struggling because of the economy”
Try most of the Landlord are struggling, probably in the 90 %s.
We have the taxes coming due in 5 months. If the banks stay as they are, You’re gonna see hell break loose in this business.
I’m done, no more ps’s
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