[RPPTL LandTen] "Risk Mitigation Fee"

Mon Oct 28 08:42:08 PDT 2019

Harry, the risk mitigation fee is being charged in multifamily as well.

Regards,

Jariel Bortnick

On Mon, Oct 28, 2019 at 11:41 AM Harry Heist <harry at evict.com> wrote:

> Hi James,
>
>
>
> This is being done in single family management, not multifamily.
>
>
>
> The name of the game now is to get as much money out of the owner and the
> tenant.
>
>
>
> Having a tenant pay the property manager a “risk mitigation fee” adds up
> and increases their income.  The property manager is keeping this fee in
> almost all the cases I see.
>
>
>
> Harry
>
>
>
>
>
>
>
>
> *LAW OFFICES OF HEIST, WEISSE & WOLK P.A.PH: 1 800 253 8428FAX: 1 800 367
> 9038"Serving the Property Management Professional"Website:  *
> *www.evict.com* <http://www.evict.com/>
> * Email: **harry at evict.com* <harry at evict.com>
>
> <https://www.facebook.com/pages/Heist-Weisse-Wolk-PA/343965575625870>
>
>
> *Visit us on Facebook*
>
>
>
>
>
> THIS E-MAIL MESSAGE IS CONFIDENTIAL, ATTORNEY-CLIENT PRIVILEGED, AND
> INTENDED FOR THE PERSONS NAMED ABOVE ONLY.  ALL OTHER USE, COPYING, OR
> DISTRIBUTION IS STRICTLY PROHIBITED.
>
>
>
>
>
> *From:* landten-bounces at lists.flabarrpptl.org [mailto:
> landten-bounces at lists.flabarrpptl.org] *On Behalf Of *James Glover
> *Sent:* Friday, October 25, 2019 4:43 PM
> *To:* landten at lists.flabarrpptl.org
> *Subject:* Re: [RPPTL LandTen] "Risk Mitigation Fee"
>
>
>
> My thoughts from an apartment community perspective. Right away I'm
> thinking FHA and Fair Credit Reporting Act issues.
>
>
>
> Practically speaking, the Tenants either meet qualifications or they
> don't. I don't know why you make a downward exception on your qualifying
> criteria just because a tenant offers you more money. You might as well
> throw your criteria in the garbage and just raise your rents for everyone.
> I know plenty of landlords that do just that, and get double market rents
> being the "felon friendly" apartments. My experience, once you make that
> departure upward or downward, you've changed the entire tenant mix for your
> community. You can't just make one-time exceptions per FHA, if you have one
> eviction tenant, then you rent to any eviction tenant.
>
>
>
> Additionally, if you're giving different terms based on bad credit or
> credit score, you need to be extra diligent in giving written credit
> decision notices and justifying your decision criteria per the FCRA.
>
>
>
> Can you charge the additional risk mitigation fee per this scheme?
> Probably, but the income isn't worth the headaches.
>
>
>
>
>
> *--*
>
> *James "Jimmy" Glover*
>
> General Counsel
>
> Circle Property Management, Inc.
>
> office:
>
> 772-888-0865
>
> email:
>
> James at CircleRentals.com <James at circlerentals.com>
>
> address:
>
> P.O. Box 1026, Jensen Beach, FL 34958
>
> Licensed Attorney in Florida and Alabama
>
> NOTE: This e-mail is intended solely for the use of Circle Property
> Management, Inc., Chuck's Rentals, Inc., and/or Southern Investors
> Management, Inc. (collectively, "CPM") and the individual(s) to whom it is
> addressed. If you believe you received this e-mail in error, please notify
> the sender immediately, delete the e-mail from your computer, and do not
> copy or disclose it to anyone else. If you are not an agent or employee of
> CPM, do not construe anything in this e-mail as forming an attorney-client
> relationship, and do not disclose anything to Mr. Glover or CPM that you
> expect to hold in confidence. If you properly received this e-mail as an
> employee, agent, co-counsel, or retained expert of CPM, you should maintain
> its contents in confidence in order to preserve the attorney-client or work
> product privilege that may be available to protect confidentiality. Mr.
> Glover is not licensed to practice law in Illinois or Indiana.
>
> To ensure compliance with Treasury Regulations (31 CFR Part 10, Sec.
> 10.35), we inform you that any tax advice contained in this correspondence
> was not intended or written by us to be used, and cannot be used by you or
> anyone else, for the purpose of avoiding penalties imposed by the Internal
> Revenue Code.  Also, to ensure compliance with the Fair Debt Collection
> Practices Act (15 USC Sec. 1692-1692p), we inform you that CPM may be
> deemed to be a debt collector attempting to collect a debt, and any
> information obtained may be used for that purpose.
>
>
>
> ---------- Forwarded message ---------
> From: *Harry Heist* <harry at evict.com>
> Date: Fri, Oct 25, 2019 at 10:59 AM
> Subject: [RPPTL LandTen] "Risk Mitigation Fee"
> To: RPPTL Landlord Tenant Committee <landten at lists.flabarrpptl.org>
>
>
>
> It seems like each day property managers are coming up with fees that I
> believe will eventually cause a problem and be class action material.
>
>
>
> They are spreading as these managers are on all of these Facebook groups,
> someone says they are doing it and then everyone thinks it is OK.
>
>
>
> The latest one I have been seeing is a “Risk Mitigation Fee”.
>
>
>
> This is a nonrefundable fee that the higher risk tenant (bad credit,
> bankruptcy, eviction etc) is being asked to pay as part of being approved.
>
>
>
> Often this “fee” is being kept by the property manager, split with the
> owner or given to the owner.  More often than not, kept by the property
> manager.
>
>
>
> Does anyone have any info on the legality of this?
>
>
>
> In the money lending world, creditors are free to charge a higher interest
> rate to a higher risk person but this now????
>
>
>
> Harry
>
>
>
>
>
>
>
>
> *LAW OFFICES OF HEIST, WEISSE & WOLK P.A.PH: 1 800 253 8428FAX: 1 800 367
> 9038"Serving the Property Management Professional"Website:  *
> *www.evict.com* <http://www.evict.com/>
> * Email: **harry at evict.com* <harry at evict.com>
>
> <https://www.facebook.com/pages/Heist-Weisse-Wolk-PA/343965575625870>
>
>
> *Visit us on Facebook*
>
>
>
>
>
> THIS E-MAIL MESSAGE IS CONFIDENTIAL, ATTORNEY-CLIENT PRIVILEGED, AND
> INTENDED FOR THE PERSONS NAMED ABOVE ONLY.  ALL OTHER USE, COPYING, OR
> DISTRIBUTION IS STRICTLY PROHIBITED.
>
>
>
>
>
> _______________________________________________
> landten mailing list
> landten at lists.flabarrpptl.org
> http://mailman.fsr.com/mailman/listinfo/landten
>
> _______________________________________________
> landten mailing list
> landten at lists.flabarrpptl.org
> http://mailman.fsr.com/mailman/listinfo/landten

-- 
Jariel Bortnick
561.703.1155
-------------- next part --------------
An HTML attachment was scrubbed...
URL: <http://mailman.fsr.com/pipermail/landten/attachments/20191028/6ac7cf00/attachment-0001.html>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image001.png
Type: image/png
Size: 1153 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/landten/attachments/20191028/6ac7cf00/image001-0001.png>
-------------- next part --------------
A non-text attachment was scrubbed...
Name: image002.png
Type: image/png
Size: 1153 bytes
Desc: not available
URL: <http://mailman.fsr.com/pipermail/landten/attachments/20191028/6ac7cf00/image002-0001.png>