- ....
!
4
V
is
H
0
1
PAGE 8
il ipl tin inl lis!
3 Oil cji lii
'Tiiev S
mvB to tmhtf
F- . I. , ", ' 5
,-
Landlords:
TJhy no? to elecriciQEis?'
by BILL SMITHERMAN
Lincoln, more than most, is a city
of landlords and tenants. It is a city
with a large transient student
population and a great amount of
public land that does not contribute to
the city's tax base.
With tenants across the country
constantly becoming more militant
about their rights across the country,
the question of who are Lincoln's
landlords becomes important.
To answer this question the staff of
the Daily Nebraskan undertook a
major research project in the older
areas of Lincoln. After identifying a
large research area the staff spent
several man-weeks with property
records in the County-City Building
recording the records of property
ownership in the area.
The landlords who emerged were
contacted and questioned. City
property tax records also were
examined.
Tiie results of this study were not
surprising. It showed several large
property owners. Some appeared in
records with back taxes and
comdemned buildings.
Many landlords complained of
rising taxes and militant tenants. Some
were defensive about saying anything
at all.
Over-all the picture showed the
seeds of maladies that have come to
plague American cities as near as
Omaha.
Lincoln landlord Otis Glebe, 1771
So. 8th, is listed as owning 26
properties in the studied area. On
THE DAILY NEBRASKAN
these properties, according to tax
records he owes the city $435.60 in
back taxes over the years 1967, 1968
and 1969. Two of his houses have
been "red tagged" (declared to have
some defect which makes them legally
uninhabitable under the Lincoln
Minimum Housing Code) by city
housing officials.
Glebe said there is a trend in
Lincoln toward "pretentious" housing.
Because of this trend many tenants are
being forced to rent units they, cannot
afford and do not want, he said.
This is "commercialism rather than
humanism in housing," Glebe said. "I
think that there is a place for every
type of housing, whether it is a
$250,000 home or whether it is a
modest place that an individual can
afford and that he'd like to afford out
of his own means rather than on
government subsidy or being paid for
by you or the other person who does
work."
Glebe said that the trend toward
"pretentious housing" was caused by
governmental tyranny. As an example
he referred to the Nebraska law which
required every city in the state to have
a minimum housing code.
"I don't think there should be
arbitrary minimum housing ordinances
that are established by a government
body without the approval and vote of
the people," Glebe said
He pointed out that Lincoln voters
defeated a minimum housing code by
an almost three-to-one margin before
the Legislature required it of the city.
Glebe called the Lincoln property
tax "reasonably good" but added that
property owners should not have to
by BILL SMITHERMAN
"In 1863, a New York landlord
sued a tenant for back payment of
rent even though the upper-floor
apartment the tenant had occupied
was burned out by fire," reports a
recent issue of New York Magazine.
"The landlord's reasoning was that
the tenant still had access to the land
under the charred remains-and of
course, land was more important than
any structure built on it."
The landlord lost, and since then
tenants in cities across the country
have come to have rights more in
keeping with their situation as urban
dwellers. But, true tenants' rights have
been slow in coming to Nebraska, a
rural state without, until fairly
recently, large urban populations.
The plight of the urban tenant
dates back many centuries and stems
from one main cause, according to
Bruce Hamilton, director of Lincoln
Legal Services.
In the common law of England and
early America the tenant rented only
the land from his landlord, Hamilton
said. Any buildings on . the land were
unimportant.
So, as long as the landlord gave the
tenant access to the land, the tenant
was obliged to pay his rent. The
obligations of the landlord and tenant
were independent of one another.And
this made sense in agrarian days,
Hamilton said.
But what was logical for a farmer in
the old country is not necessarily
logical for someone living in a
basement apartment on R Street.
Yet, Nebraska laws still are
one-sided in favor of the landlord,
Hamilton said. Tenants in Nebraska
still have very few legal rights. What
carry the whole tax burden. People
shoud be encouraged to own their own
homes, not discouraged as they are by
the present tax structure, he said.
In order to Isghten the tax burden
the government should end foolish
spending, Glebe said. There is a great
deal of waste in any bureaucracy, he
added, and cited the minimum housing
code and its enforcement as one
example.
He attacked the policy of
red-tagging a house under the
minimum housing code, saying "you
don't have more housing by destroying
housing."
"To destroy competition is not in
the best interest of the tenant," he
continued. This may be best for a
builder who wants to unload property
on tenants, but it is not best for the
tenant, Glebe said.
'The only way you can reduce
rents is to have competition or have
other housing available."
Red-tagging is "against the best
interest of the tenant, the landlord,
the taxpayer, the student, everybody.
I don't see anyone being benefited,
period'
Glebe added that the policy also
encourages crime and vandalism
through the creation of vacant houses.
Victor Gruenemeier, 1005
Claremont St., is shown as owning 23
properties in the study area. Tax
records list him as owing $906.74 in
back taxes on these properties during
the 1967-1969 period.
Gruenemeier called the Lincoln
property tax unfair. "Why not tax
electricians or some other
occupation?" he said. "A tax on
property is just as unfair as the cigaret
tax."
He added that the city zoning
policy puts a burden on the
homeowner. All the new apartment
houses are "way south" of 'O' St., he
said, and new industrial property
is going north, but property owners
are forced to pay for new streets to get
people to these new places.
rights they do have will be considered
later.
There are legal steps being taken in
the courts and legislature to change
this situation, but they are moving
slowly. Hamilton attributed this
slowness to landlords' power and
tenants' lack of it.
This spring, a bill was drafted by
the newly-formed Statewide Housing
Coalition and presented to the
legislature by Sen. John DeCamp of
Neligh which would have made the
obligations of tenant and landlord
dependent Under this proposal if the
landlord didn't fulfill his obligations,
the tenants would not be required to
fulfill his.
The bill would also have made a
city's minimum housing code an
understood part of every lease. But,
LB 901 was defeated in committee
after a stormy public hearing.
The measure would have allowed a
tenant in housing below standards of
the minimum code to make repairs
and deduct them from his rent if his
landlord refused to cooperate. It also
stipulated that the landlord could not
evict the tenant or raise his rent for
one year if the tenant took advantage
of the law.
Hamilton said the bill was necessary
to prevent the exploitation of tenants.
But Lincoln landlord Otis Glebe
disagreed.
He called the coalition proposal
"arbitrary and undemocratic" and
added that it didn't help the owner or
the tenant. Glebe said the tenant
would lose from the bill because it
would force landlord's to dose some
"unpretentious housing" that people
need and could afford.
WEDNESDAY. MAY 19. 1971
Gruenemeier said he has never had
one of his houses red-tagged because
he makes improvements himself before
someone moves in. He said he keeps
up his property well, but that it is
difficult because financing is hard to
obtain. . , .,
"It's easy for new homes, but I m
in an old neighborhood and no one
wants to back a person with financing
an older home," Gruenemeier
continued. "There should be some
kind of federal aid to help home
owners fix up their homes."
Lewis Berlowitz, 5835 "A" St., is
listed as owning 22 properties in the
study area. Records show more than
$6 600 in back taxes on these
properties over the 1967-69 period.
Though Berlowitz is listed in the
The area of the study was designed to encompass primarily the
older sections of Lincoln, those beginning to show decay.
Basically, the area studied was bordered by Van Dorn Street on
the south and 27th St. on the east. Western and northern
boundries were the city limits. Also considered were some of the
properties in an area bordered by Vine St. on the south,
Cornhusker Highway on the north, 33rd St. on the east and 27th
St. on the west.
Most of the property in these sections was considered. The
downtown core and some newer developments were excluded.
city directory as owner of Lincoln
Realty Co., that firm proved
impossible to locate. Berlowitz could
not be reached for comment at his
home address.
Andrew Van Horn, who is listed as
owning 38 properties in the study
area, echoed other landlords that there
is profit in being a landlord only with
the proper tenants. County records
show Van Horn Realty as owing more
than $3,400 in back taxes on these
properties during the 1967-69 period.
Van Horn said that if tenants take
care of property and pay rent on time,
being a landlord can be profitable.
"But, it is very close," he
continued. "If you lose a month or
Hamilton said that a judge in the
District of Columbia recently made
tenant-landlord contracts there
dependent through a court ruling, but
the ruling applies only for the District
of Columbia, in Washington, D.C., if a
landlord does not fulfill his obligations
and keep his property up to minimum
housing code standards the tenant is
legally able to withhold rent payment.
Hamilton said there is a chance this
could be brought about by court
"ilings in Nebraska. So far, though, no
;nant has won an eviction case by
sing the argument that his landlord is
ot living up to the code.
However, no case of this type has
even been appealed in Nebraska, he
said. The reason for this is cost. Even
though Lincoln Legal Services provides
free counsel to low income tenants,
the tenant must still pay court costs.
In a long case these are prohibitive for
many people, he said.
But tenants do have some rights, A
tenant a written lease
and with his rent paid must be given a
full pay period (usually 30 days)
notice that he must move. Likewise,
he must give his landlord at least a pay
period's notice if he intends to move.
Hamilton added that notice to
vacate must be given for a full pay
period. For example, if rent is due and
paid up April 1st and the tenant gets
an eviction notice April 2nd, he is not
required to move until the end of the
May pay period.
A notice to vacate must be written
to be legal, he said. If the tenant then
does not move after the legal time, the
landlord may go to court and have him
evicted.
If a tenant is behind on his rent his
WEDNESDAY, MAY 19, 1971
two's rent you're up against the wall
financially."
He criticized the property tax as
being too high and unduly
burdensome to the property owner.
The retail sales tax seems to be the
most fair tax, he added.
Shown as owning 46 lots in the
study area, Walter Lybarger2931 N.
6th St, is one of the largest land
owners.
He attacked rising labor costs and
tuxes as major problems of Lincoln
landlords. Lybarger added that he did
not have difficulties maintaining his
property because he does the work
himself, but that labor costs are
prohibitive for landlords who can't."
Lybarger said.
City property tax is getting to the
place where it robs people," "it seems
like the city wants to own all the land,
and they're going to have more than
they know what to do with if taxes
don't come down. It's just getting too
expensive to own land."
Lybarger added that every raise in
taxes causes a raise in rents. "I don't
know how a man with a family of six
or seven can afford rent and
groceries," he said.
The 35-year veteran landlord said it
is possible to make a profit as a
landlord only if the landlord knows
how to handle tenants.
"You have to be strict and firm
landlord can send him a three-day
eviction notice. But, Hamilton said, if
the tenant pays the rent within the
three days the eviction notice becomes
invalid and the landlord must give the
usual one pay period notice if he still
wants the tenant to move.
Hamilton said landlords and tenants
rarely show up at eviction hearings,
and the landlord gets a judgment by
default. But, if the tenant shows up
and the landlord doesn't, the tenant
gets the default judgment Then the
landlord must file a new eviction
action in court and this may buy time
for a tenant to find some place else to
live, he said.
Sometimes landlords will ignore the
methods of due legal process and try
to evict tenants themselves, he said.
Their methods range from locking a
tenant out of his apartment to taking
his personal property to turning off his
I --
THE
with tenants or they'll wreck your
property, beat you out of your rent
and move out," Lybarger said.
"Tenants can break a man if he
doesn't know how to handle them."
Dan Cuda, sales manager of Action
Realty, which is listed as owning 17
properties in the study area, said that
the two major problems of landlords
are collecting rents and having tenants
give notice when they move.
"Some tenants seem to think the
landlord has his property paid for and
will not miss a month's rent if they
move out without telling him," Cuda
said. "But, many times this is not the
case. The landlord is counting on rent
income to keep up payments on his
mortgage and cover operating
expenses."
He said that rents in Lincoln are
higher than those in cities of the same
size in surrounding states. One of the
principle reasons for this is Lincoln's
high property tax scale, he noted.
Henry Schmidt, who is listed as
owning 11 properties in the study
area, said that it is very difficult to
make money as a landlord in Lincoln.
His complaints were much the same as
those of other landlords.
"If housing is damaged, you can't
get anyone to do repairs," Schmidt
said. "Property taxes are also getting
way out of line."
Publications and statements of the
citywide tenants association accuse
landlords of not maintaining their
property and of charging rents that are
out of line. Landlords answer that
even with high rents, taxes and labor
costs make it impossible for them to
maintain their property.
So, the dilemma continues. Both
landlords and tenants are caught in a
spiral of rising taxes and rents in a
constantly tightening housing market
as more students come to town and
older housing becomes unlivable.
These are the seeds that have
germinated into full scale urban blight
in many American cities. The course
Lincoln will take is still undecided. It
rests in the hands of the city, the
property owners, and the organized
tenants.
utilities.
All of these "self-help" methods are
strictly illegal, Hamilton said. But,
rather than go through the expense
and time of a court fight most people
will simply give the landlord what he
wants.
A tenant is entitled to his right of
privacy. A landlord can legally come
into a rented unit only to make
repairs, to inspect to see if repairs are
necessary or to show the property for
sale or to perspective renters if notice
to vacate has been given. The landlord
cannot just walk in at any time, he
said.
Hamilton added that the tenant has
the right to demand advance warning
of his landlord's visits. He also has the
right to put a lock on the door to keep
out a snoopy landlord.
But, if the landlord doesn't like
being denied access to his property,
DAILY NEBRASKAN
H '"?'-t !!'' - in
i , il Y .-.V . , i i
i !
' n ' ,-'"
CI . : ' . .J
4 .
- o r, ..; ;.
.. . ....... il I "I
V" A.
there is nothing to stop him from
giving his tenant one pay period
notice.
"Even though the law is one-sided
in favor of the landlord, tenants aren't
taking advantage of the rights they do
have," he said. Failure to challenge the
injustice makes landlords think they
can get away with anything, and it
can't possibly change the law,
Hamilton added.
He said the statewide coalition
didn't really expect the passage of its
measures this year. But, he added they
would be back next year with new
proposals.
"The important thing is that we
continue to work and challenge the
way things are now to bring about
change," he said. "Tenants can't
expect to sit still and get any more
rights than they have now. They will
have to fight for them."
I -I
a
&
I.
PAGE 9
