Madison Property Management – Doesn’t Care about the Law

Students, renters, beware. They have no qualms about violating your rights if you live downtown this weekend, or anytime else.

So, I know Madison Property Management is not one of my favorite landlords and at the Tenant Resource Center I’m never surprised when a landlord is acting goofy and I ask who it is, and it’s Madison Property Management. However, they also manage a lot of units, so it makes sense that we hear about them more often – so maybe its unfair to say we get a lot of complaints about them. However, their recent antics . . . unacceptable. And the brazen attitude, unacceptable. And the way they take advantage of students and first time renters, unacceptable. So, I started looking at the lease further, also, unacceptable. For a professional company that manages this many units, I think we need to call upon them to be good community members. Here’s the story, in case you haven’t heard.

GUESTS FOR HALLOWEEN WEEKEND
This all started when the Daily Cardinal talked to my staff and then to me about a policy that landlords were enacting to limit the number of guests on Halloween weekend. They wrote an article and a follow up. The issue boils down to that the City of Madison’s law says that guest policies have to be in writing in the lease. MPM or Madison Property Management did not do that. They now want to change the rules, by requiring wristbands for only two guests and the tenants themselves. It’s interesting that you would have to have a wrist band to enter your own unit. That hardly seems legal in regard to the tenant, could be considered an illegal eviction. Also, the guest policy is required to be in writing and one party to the contract, in this case the landlord, can’t unilaterally change the contract. The landlord is claiming they can enter for safety issues or other lease violations. While it is true they can enter to protect the property or for a health or safety emergency (state law), they cannot enter for lease violations. In fact, if they enter without 24 hours notice (City of Madison) they could get a ticket from the police department for $600. The remedy for lease violations is eviction. In short, Madison Property Management is just trying to make up their own laws. I wrote more about it here.

THAT’S NOT THE END – ALSO IN THEIR LEASE
I started looking at their lease, and I found several disturbing things. Remember, they are paying $2500 for a three bedroom and they have to pay the electric, hot water, heat and a/c.

1. RENTED UNSEEN. Apparently, some people don’t see the apartment before they rent it. They have them sign off on something saying they don’t want to see it. That seems really wrong and its ripe for a misrepresentation problem, which is a violation of the Department of Agriculture Trade and Consumer Protection regulations and the tenant could sue the landlord for double damages, court costs and reasonable attorney’s fees.

2. FEES FOR HOLDING OVER. Their leases start on 8/16 at noon and end at 8/14 at 9 am, so they have a period of time to clean, 27 hours. That’s probably reasonable, pushing it a bit maybe, but I’m curious, how much to they charge tenants if they move in early? And, later in their lease, they say they charge $200 plus $25 per hour for each hour the person is late moving out. They’ve basically set it up so that it is likely they will be able to charge extra because people have no where to go. Additionally, there is something called liquidated damages, that is what these charges are. These are illegal. The landlord could charge for the actual costs . . . but in this case, there likely aren’t any because they can be cleaning other units while the tenant finishes removing their property, which is probably why they are making up these charges because they wouldn’t otherwise have any costs except in unusual situations. What the law says is if the tenant holds over, the landlord can charge them double the daily rent plus additional costs. Double the daily rent is only $167. Not $800 ($25 x 24 hours, plus $200).

3. LATE FEES If they are late with their rent, they owe a $125 late fee or 5% which is the maximum allowed by law in Madison. Not only that, but the lease says “Rent is due on or before the FIRST day of each month regardless of what day the first occurs, including weekends, days our office is closed, breaks or vacations, with no exceptions.” Nice, another way to set a tenant up for failure and make more money off of them, when there are no actual costs to the landlord. Sounds like more liquidated damages.

4. RECEIPTS FOR CASH They put the responsibility on the tenant to get a receipt. “Cash payments will be accepted for the exact amount only and tenant must obtain a written receipt.” However, the law says 134.02(b) “If a tenant pays rent in cash, the landlord upon receiving the cash payment shall provide the tenant with a written receipt stating the nature and amount of the payment.”

5. MORE LATE FEES ATCP 134.09(8)(b) and (c) says that “(b) Before charging a late rent fee or late rent penalty to a tenant, a landlord shall apply all rent prepayment received from that tenant to offset the amount of rent owed by the tenant. (c) No landlord may charge a tenant a fee or penalty for non-payment of a late rent fee or late rent penalty.” So, the deal is, if your rent is $2500 and you paid late this month, and now you owe $125 allegedly, when you pay next months rent, if you pay in full, they can’t apply the $2500 to the $125 first, then say that your rent was only paid for $2375 and then charge you another $125 for being late. Another lovely landlord scheme. Here’s what the lease for MPM says, which is, as I explained above, exactly what you should not do. “All payments will be first applied to any outstanding portions of the rent, late fees and other charges owed by Tenant and then applied to the monthly rent currently due.” Later in the lease they say that “A late fee will be imposed for any month your account has an unpaid rent balance after the FIRST day of the month.” Again, another illegal scheme to gouge tenants.

6. REDEFINING “SURRENDER”. Surrender is the date by which the landlord has 21 days to return your security deposit. The state regulation say “A tenant surrenders the premises under par. (a) on the last day of tenancy provided under the rental agreement.” The law notes exceptions for people evicted, who hold over or leave the lease early. However, the lease says “Surrender shall include written notification of vacating the premises, and return of, or accounting for, landlord’s property held by tenant, including keys.” Please tell me they don’t actually require all this before returning a security deposit or delay return of security deposit. What if a tenant never returns the keys, does that mean they just keep the security deposit?

7. CHANGING STATUTE OF LIMITATIONS? Under written contracts, either party has 6 years to dispute a claim. In their lease they are at least misleading the tenants, if not trying to change the law by stating that “Objections to security deposit deductions may be made in writing and mailed to the management office within 21 days of the receipt of the deposit return”. Tenants have 6 years, don’t believe the hype. And if they want, they can just go directly to court, which appears likely to end up happening with these folks.

8. MORE LIQUIDATED DAMAGES I understand the need for safety regulations. I don’t understand obnoxious liquidated damages. Their lease says that “Tenant is prohibited from thrwing or dropping any objects, fluids or liquids form the balcony. Tenant will be assessed a fine equal to $300 per occurrence for throwing or otherwise dropping any objects from the balcony.” So, you’re studying and the wind picks up and some papers fly off the balcony, it’s a $300 fine? Or you accidentally kick your glass of water and it falls, $300 fine? Sloppy watering your plants, water overflows and drips off the balcony, $300 fine? I’ve hear Jim Stopple say in a meeting that they have cameras that can see a cigarette butt that drops from the balcony and that they fine people for that too. Obviously, we don’t want any of these things to happen, but a $300 fine that is clearly liquidated damages?

9. MORE JUST OBNOXIOUS. Tell me how this is going to work. “If the premises’ refrigerator and/or freezer quit working, Tenant agrees to notify the Landlord immediately. Tenant agrees to keep their food from spoiling until such time as the appliance can be repaired, Landlord will not be responsible for the loss of food.”

10. ANOTHER LOVELY GESTURE BY MADISON PROPERTY MANAGEMENT “The Department of Revenue does not require landlords/agents to complete homestead credit forms for tenants. Please keep your receipts and/or copies of cancelled checks, as you feel appropriate.”

11. EVEN MORE LIQUIDATED DAMAGES – WHICH ARE ILLEGAL
– “Tenant will be assessed trash removal charges at the rate of $75 for each item of improperly placed trash”
– Bug spraying – “If the apartment is not ready and a re-spray is necessary , or management or pest control personnel must prepare for spaying a $35 per hour preparation fee will be assessed to tenant for failure to properly prepare.”
– “In the event a false fire alarm/fire extinguisher discharge is determine to have originated form a specific apartment, tenant will be assessed a fine equal to $500 per occurrence, in addition to any fine levied by the civil authorities, and will be prosecuted to the fullest extent of the law.”
– “Kegs and/or barrels of beer are prohibited in the apartment or the building. Tenant will be assessed a fine equal to $500 per occurrence for possessing a keg or barrel of beer in the apartment or building.”
– “Any unauthorized pet will result in a $250 pet charge to tenant, and $20 per day until removed from the building.” Later the lease says $150 plus $20 per day.
– Subleasing – “Tenant agrees to pay a $150 administrative fee to management.”
– “Removing/adding tenant agrees to pay a $50 administrative fee in order to add tenant names to the lease.”
– “Tenant agrees to pay $200 administrative fee in the event that the premises need to be re-marketed due to Tenant breaching this lease prior to its commencement”.
– “In the event windows, screens or blinds are broken, damaged or missing the Tenant agrees to pay as follows: damage to screen mesh interior $45; if screen missing or frame damaged $50; blinds $25,; vertical blinds $85; window glass/frame – actual cost.”
– “Mailbox re-keys are $50”
– “Individual laundry or security door keys will be billed at the rate of $30 each.”
– “Laundry cards will be billed a the rate of $10 each”
– “In the event Tenant requests landlord to unlock an apartment or other door for any reason, Tenant agrees to pay a service charge of $50.00 during during normal business hours (8:30 a.m. through 4:30 p.m. Monday through Friday), and $100.00 during non-business hours.”
– “If the thermostat is found to be turned off or set at a temperature below 67 degrees, Tenant will be assessed a $50 fee for each instance.” The lease goes on to say they will also be responsible for actual costs incurred as a result of damages.
– “1st noise complaint – Warning; 2nd noise complaint $100; 3rd noise complaint $150”
– “Tenant will be assessed a fine of $250 per occurrence for tampering with or manipulating any of the security cameras or other similar devices in the building”
– “Tenant also agrees to pay a removal fee of $30 per item for any unwanted furniture. Removal requests will be taken after move-in, not before.”
– “Replacement costs: Couch $650, Coffee Table $275, End Table $175, Bar Stool $125, Full Size Mattress $300, Full Size Box Spring $150, Single Mattress $175, Single Box Spring $125, Universal Bed Frame $125, Desk $275, Desk Chair $150, Media Center $300, Loft Bed $550.”

12. ICING ON THE CAKE – The lease I saw had 13 pages, but no “Tenants Rights and Responsibilities” pamphlet as required by the city.

Tenant should know that when there are clauses like this that are illegal they those clauses in the lease become in valid. In some cases (legal fees and perhaps others) the whole lease becomes invalid. When signing a lease you can ask the landlord to cross out those illegal items and initial them to take them out of the lease. Or, if you leave them in, you could write a letter to the landlord letting them know that you are aware of your rights and these things are illegal or just know the landlord should not be enforcing them and challenge them when that occurs. In the case of all these fees, I suspect you will end up in court when the security deposit doesn’t get returned, but remember . . . that’s at least double damages, court costs and reasonable attorney fees.