One week before rent was due on the first of the month, Milwaukee landlord Sam Stair was arrested on April 22 as part of a sprawling drug conspiracy case.
Stair, of S2 Real Estate Group, owns and manages over 150 properties with more than 500 units across Milwaukee, mainly concentrated on the city’s south side.
Since Stair’s arrest, nonprofit organizations that provide support to renters, such as Legal Action Wisconsin and Community Advocates, say they have received an influx of calls from his tenants who are unsure of what comes next.
Here’s what S2 Real Estate tenants should know, according to Milwaukee housing experts.
Should S2 Real Estate Group tenants continue paying rent?
Yes.
Tenants should continue to pay rent, as they can still be evicted while Stair is detained and as the case progresses, according to Shawanna Lindenberg, housing department manager at Community Advocates.
“There are just too many unknowns,” Lindenberg said.
“What we don’t want to happen is for tenants to get months and months behind in rent whenever things get ironed out.”
If tenants previously paid through an online portal, and that portal is still working, they should continue to use the portal, Lindenberg said.
However, if they go into the office to pay rent or pay by mail, tenants should get a money order or cashier’s check that has their name and the date listed on it.
Tenants should be sure to get a receipt for that transaction, so there is a record of payment, Lindenberg said. This will help tenants avoid eviction or late fees.
Tenants should not pay their rent in cash, because that method provides no documentation of payment.
If the online portal is shut down or the office is closed, Lindenberg said she recommends that tenants still get a money order or cashier’s check as proof that they had the funds on time, but they should hold onto the payment.
S2 Tenants should beware of scams, experts say
Some tenants who have called Legal Action Wisconsin are getting letters, text messages with links to Venmo accounts or notices taped on their doors instructing them to pay their rent to someone else, according to Jill M. Kastner, a supervising attorney with the organization.
“They’ve all been scams,” Kastner said.
Kastner also said she recommends that tenants pay their rent as they normally do, but if that is not possible, they should get a money order or cashier’s check and put the money aside.
“Eventually, the court or the city will provide a different way to pay rent, but that hasn’t happened yet. For right now, do not give rent money to anyone else,” Kastner said.
What should month-to-month tenants or those with ending leases do?
In an interview before his arrest, Stair told the Milwaukee Journal Sentinel that many S2 Real Estate Group tenants have month-to-month leases because short-term agreements make it easier for Stair to remove tenants who do not pay their rent.
Month-to-month leases, in turn, are “easier for them, easier for us,” Stair said.
For month-to-month tenants who wish to stay in their apartment, they should continue to pay their rent as normal.
If a short-term tenant wants to terminate their lease, they must send written notice to S2 Real Estate Group at least 30 days before they plan to move out, Kastner said.
Emailing the written notice isn’t sufficient unless the lease says that notices can be received electronically.
What should tenants do if their lease is ending soon?
For tenants whose leases are ending soon, they should send a written notice of the non-renewal of their lease to S2 Real Estate Group through certified mail unless their lease allows for electronic notices, Kastner said.
Tenants should check their lease to see how many days’ notice is required for lease non-renewal, as 28, 30 or 60 days’ notice is typically required, she said.
Tenants who do move out should also confirm it in writing once they are fully moved out and have returned the keys.
That notice can be sent by text or email, Kastner said.
What’s next for Sam Stair’s properties?
Prosecutors want to put all of Stair’s properties in a receivership, where someone else would control his rentals, to protect his legitimate renters, according to previous reporting.
As of now, the court has not yet appointed a receiver to manage Stair’s properties in his stead.
Kastner said if a receiver is appointed or Stair’s properties are sold off, she hopes “the government and the judge handling the case will take care to make sure it’s not just a big mass sale to another slumlord.”
Prosecutors said they knew of no other case of this magnitude where the government has moved a landlord’s property into a receivership.
John Diedrich, an investigative reporter for the Milwaukee Journal Sentinel, contributed to this story.
Alyssa Salcedo covers Silver City, Layton Park and Burnham Park for the Journal Sentinel’s Neighborhood Dispatch. Contact: asalcedo@usatodayco.com.
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This article originally appeared on Milwaukee Journal Sentinel: Do tenants have to pay rent if their landlord is arrested? Here’s what S2 Real Estate renters should know.
Reporting by Alyssa N. Salcedo, Milwaukee Journal Sentinel / Milwaukee Journal Sentinel
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