Household Finances

Valparaiso Indiana Apartment Rules Create Opportunities

A new city ordinance proposed by Valparaiso Indiana’s Common Council  will place tight controls over how landlords conduct their business within the city.

Throwing The Book At Landlords

The 24 page document currently under review, will set up the Valparaiso Building Commissioner as czar over every rental unit in the city. Each unit will be required to register with the city, pay a fee, and provide contact information about owners, managers, and their tenants.

The stated purpose of the ordinance is:

• Adherence to building codes–adequate lighting, ventilation, emergency egress, proper electrical & plumbing
• To protect the character and stability along with the value of land and buildings
• Correct housing conditions that adversely affect health and safety
• Prevent overcrowding– too many people living in a unit designed for a certain family size
• Enforce minimum standards to prevent slums and blight

City inspectors will have the power to access any rental property to conduct compliance inspections. And an aggressive set of fines, up to $2,500 go to any property owners or their tenants who does not cooperate. Owners who reside beyond the contiguous counties neighboring Porter, will be required to have a designated local go-to manager who will be responsible for maintenance and compliance.

The plan spells out who can be considered a “family” and sets per-person minimum square footage requirements for rental units and sleeping rooms. Concerned citizens can turn-in to the city, any residential unit that observer might consider in breach of the ordinance and city inspections can make pre-arranged visits.

The Opposition

While this all sounds like the good people of Valparaiso are merely taking pride in their city, landlords, on the other hand, are crying “foul”. They say these regulations are unnecessary and bureaucratic. The regulations take away their rights to do as they deem necessary and how they run their business. And they are afraid they may be blamed for nuisances created by their tenants which are already covered under existing laws. For owners of larger projects with many units, the owners could quickly end up in the top tier of violators and face many thousands of dollars in fines. The Indiana Apartment Association opposes the high fees and initial inspection of every unit. GNIAR, the Realtor’s association, has also written a letter to members of the Common Council opposing any such regulations as an intrusion on rights of property owners generally.

Rental regulations are a hot topic among municipalities. Munster Indiana had to modify theirs last year after a review by attorneys determined that requiring a tenants Social Security number was violation of federal law. Munster also adopted language from Schaumburg, Illinois, allowing landlords a means to break their lease and evict tenants who were convicted of a crime. Hammond Indiana code enforcement is grappling with landlords registering one unit, but collecting rent from as many as six individuals. Chicago is looking at making the process of how security deposits are refunded and to wants make these policies uniform. The Valparaiso ordinance is similar to the one used in West Lafayette, where many different types of rental properties make up the Purdue student housing market.

Opportunity For Valparaiso Indiana Real Estate Entrepreneurs

Do YOU know any Valparaiso University  students or student families? There will be turnover as landlords re-configure property portfolios. More regulation will mean higher rents as landlords pass along their increased compliance costs. Families with students attending Valparaiso University, as well as other investors may want to take a look at the multi-unit and the rooms-to-let housing market that this new set of circumstances will create. By planning ahead for the Fall term, those in the know will be looking to invest in Valparaiso Indiana real estate to save on their student housing. As is common in Lafayette Indiana, rental properties and homes will be traded. By researching properties now you may get the jump on a solid cash-generating business opportunity.

Speak with James at GVC Mortgage to explore your financing options; and talk with Steve to help locate those ideal properties which will help begin your student housing investment portfolio.

Pay or Save? Which Household Bills Should You Pay First?

Morning television can be “light”, but as far as personal finance interviews go, this Suze Orman segment from The Today Show is loaded with practical financial planning advice.

Titled “What Should You Do First?”, Ms. Orman addressed the real-life, money management conundrums households face, such as:

• Should you pay off credit card bills, or create an emergency cash fund?
• Should you pay off student loan debt, or pay off credit card bills?
• Should you save for a child’s college tuition, or save for my retirement?

A half-dozen scenarios like the ones above are included, explaining what to do, and why to do it.

Ms. Orman’s style may not interest you and financial advice is rarely universal, but the piece is worth watching.

Want to discuss other scenarios relevant to your household? Contact me today to review your options.

Shopping Online? Quick Tips to Protect Your Identity

In May 2010, Retail Sales at non-store retailers — a category that includes Amazon and eBay — topped $29 billion, up 16 percent from May 2009. Clearly, Indiana and Illinois residents are doing an increasing amount of shopping online.  And we’re paying our bills online, too.

But how well are we protecting our identities?

In this 5-minute piece from NBC’s The Today Show, you’ll learn the basics of online fraud and methods to minimize the likelihood of identity theft.  Furthermore, the tips go beyond the basic “choose a challenging password”.  For example, you’ll hear about:

• Why you shouldn’t pay bills from a coffee shop
• Who might be hiding behind an unprotected public wifi network
• The dangers of storing credit card numbers with an online retailer

Although the interviewee goes over the top at one point with respect to spyware and anti-phishing prevention, the point being made is a good one — you can’t be too careful with your online financials and common sense goes a long way.

Do you have any other tips on protecting your online identity? If so, share them in the comment section.