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Both Sides of the Fence

A Tosa resident since 1991, Christine walks the dog, raises kids, cooks but avoids housework, writes and reads, and works too much. A Quaker and The Aging Maven, she has been known to stand on both sides of the political and philosophic fence at the same time, which is very uncomfortable when you think about it. She writes about pretty much whatever stops in to visit her busy mind at the moment. One reader described her as "incredibly opinionated but not judgmental." That sounds like a good thing to strive for!

The slumming of Wauwatosa

By Christine McLaughlin
Monday, Jan 14 2008, 03:39 PM

For years I've driven past the many solid red brick apartments lining North Avenue in the 80- and 90-numbered blocks, thinking they looked like good places to live. I've even had a landlord fantasy or two as I try to find ways to bring co-housing to Wauwatosa.  A couple of three building units look ideally suited to the concept.

But yesterday, I saw the same buildings through new eyes. As I dropped an acquaintance off at one, she began to tell about her building's rapid disintegration since a new landlord bought the building and, apparently, some others near by.

He or she or they had failed to notify the residents about who they were or how to contact them. There was no way to get things fixed or replaced.

They'd stopped plowing the alley as the previous landlord had done. Now old residents who'd lived there long were struggling with new dangers and duties. Rougher folks seemed to be hanging around the area.

Only a matter of time, said the acquaintance, before she'd have to leave. The next tenants would be people with fewer options, less money. A slum lord can keep making money even with falling rents, long as you work the math right. And so the slide begins.

In the recent neighborhood meetings for long-range planning, the subject of absentee landlords came up in regard to the east side of Tosa. I didn't hear anyone talking about the long solid center of the community.

Encouraging investment in buildings has to be accompanied by requiring a high level of responsibility for maintaining them. As more non-resident owners buy up property, it may be time for a closer look at rules, regulations, and enforcement.

Comments

aberdeen   

Very good blog; I completely agree with you.  I travel up/down North Ave between 83rd St. and Mayfair Rd. a few times a day, and have had the same opinion regarding some of the buildings. It is crucial for the city to enact and enforce regulations that keep this corridor from getting run-down.  

January 14, 2008 3:56 PM

aberdeen   

By the way, never heard of co-housing. Sounds like an interesting concept.

January 14, 2008 4:00 PM

TosaBeauti   

The owner of record and their contact information is in the tax records at City Hall. It's public information.  I think one can access this information on-line.  Alderpeople are the first line of offense.  The tenants and any concerned citizens should call their elected representatives:  District 6 = Brian Ewerdt 475-9658 & Thomas Herzog 771-2800 or District 2 = Eric B. Meaux 258-1407 & James Krol 453-2904. Or call all of the alderpersons since they each are responsible for all of Wauwatosa.  Call the Building Dept 479-8957 & the Health Inspector 479-8936 since there are safety issues.

January 14, 2008 7:19 PM

Christine McLaughlin   

Thanks much for the information, Beauti. I think that sometimes elderly people (and others)don't think that it's "right" to complain, especially if they don't own the building.

Aberdeen, cohousing has been around for around 30 years. It's an idea that immediately appeals to a lot of us. Of course, there are those who confuse it with communes. . .<g>

Christien

January 14, 2008 8:44 PM

west side   

"The slumming of Wauwatosa" is a pretty provacative title for someone who professes to be a Quaker. I'm curious to know what you mean by

"rougher folks". This seems to be code for someones race. Before you go casting aspirsions on entire neighborhoods you better have your facts straight, if not your just fanning the flames of prejudice. I'm interested to know what your property search discovered.

January 15, 2008 1:45 PM

luvtosa   

Do you really think that by making rules, regulations and

enforcement is going to get the Property owners to change their behavior?

I agree that the area mentioned on North Avenue at one time looked like nice places to live but you have to look a little deeper into housing economics recent history and try to understand what has happened. Property investors are very dependant upon cash flow for property maintenance and improvements.  As recent as just 10 months ago, it was very hard for most landlords to get a  tenant in their apartments and most times they would have to settle for the lower than market rents or “rent specials” just to get someone in and be able to make their mortgage payments, taxes and insurance. This was also a cost cutting time for most landlords, and the first thing to go is any

beautification projects or unnecessary maintenance projects. You may also recall the significant property tax increases that Wauwatosa landowners saw at the end of 2006.  

What the property owners are doing now is just playing catch-up in the current market of higher interest rates.  They need to be able to collect market rents to be able to put the money back into it. Trying

to enact rules and enforce regulations would only be more detrimental

to this segment of the housing market.

January 15, 2008 3:14 PM

Christine McLaughlin   

West Side,

Yes, it's a provocative title. I track my stats, and those are the ones that get readers. So it was deliberately provocative.

I was repeating what someone told me. I have no idea what "rougher folks" means. Though my guess was that the issue was economic more than racial. Poverty can make people hard. It doesn't always, but it certainly can.

Fanning the flames of prejudice is an interesting take, based on what you read into that. I hoped to fan the flames of thinking about what it means to have landlords who only want to squeeze maximum value out of their property. My guess is that's a question of absenteeism.

I didn't do the property search. I don't know which buildings are involved, and the information is hearsay. I wanted to hear what others had to say about this. Is it a problem, or just an isolated incident?

Christine

January 15, 2008 7:32 PM

Christine McLaughlin   

Luv,

I don't know what makes property owners change their behavior. My guess is that rules and regulations play a role, if they are enforced.

You address renting at lower prices to play catch up. That's a very different thing from stopping services without notice. The situation that raised the question was a very longterm resident.

I thought the conventional wisdom was that as housing values stagnate and people have trouble paying mortgages or don't take them out in the first place, rents go up. Is that not the case in Wauwatosa?

Christine

January 15, 2008 7:36 PM

TosaGuy   

As an duplex owner, I have not been able to raise the rent enough to cover the tenent's fair share of the increases in property taxes, insurance and utilities.  I have made significant improvements to the apartment, but will never be able to recover that investment through the receipt of rent.  I do these improvements for other reasons that I will not go into.  It would be highly difficult to collect enough rent on both units to pay all the bills associated with the property.  Duplexing is a great way to get into a house and am glad I did it, but many people don't realize that there is little, if any, profit in collecting rent on a few units.  The real money is in large scale ownership and flipping the property for the capital gains.  There are good landlords and scummy landlords, but the key thing to remember about more rules and regulations is that it's little little-guy owner or the owner-occupier that usually gets affected to the point that it is not worth their effort and they then sell out to the absentee owner who has properties everywhere and it becomes just one more place to manage.

January 16, 2008 10:48 AM

Christine McLaughlin   

Guy,

Do small landlords like you get worthwhile tax benefits from ownership?

The cost/rental issue is interesting. I fell in love with a duplex in Washington Heights, but it was way out of my price range. And I couldn't figure out who would pay nearly $400,000 for a building that brought in $1400 a month in total rent for the two units.

Christine

January 16, 2008 12:19 PM

TosaGuy   

Yes, we do get some tax benefits like depreciation and expensing, but (you CPAs correct me if I am wrong), I will have to pay capital gains taxes on the increase in home value once I sell the place, while that is not the case with single-family homeowners.   Don't worry Tine, the taxman will catch up with me eventually.  :)

January 16, 2008 12:43 PM

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