AASC - January 2013

Connections

THE OFFICIAL PUBLICATION OF THE APARTMENT ASSOCIATION OF SOUTHERN COLORADO

Winter 2012 Edition

• Ask The Lawyer: What Landlords Need to Know About The Legislation of Marijuana (Amend. 64) • Get Simple Efficiency Upgrades That Improve Comfort and Profitability • Quarterly Updates and Estimates network protect

Educate

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Contact

Contents

APARTMENT ASSOCIATION OF SOUTHERN COLORADO Office Address:

2790 N. Academy Blvd. Suite 227 Colorado Springs, CO 80917

P: 719.264.9195 F: 791.264.9198 www.aaschq.org

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The President’s Message

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Resident Screening Fact Sheet

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Executive Director:

Laura Nelson | laura@aaschq.org | ext. 12

11

Director of Membership Services:

Stephanie Miller | stephanie@aaschq.org | ext. 10

Director of Education & Events:

Director of Marketing & Advertising:

AIMS Update

21

Thank you to the following member companies for supporting Connections magazine.

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ADVERTISER PAGE

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RiteCorp Inside Cover Update Printing Inside Cover Tall Timbers 4 HD Supply 6 All State Insurance 8 Trans Union Smart Move 9 The Paint Doctor 10 All Around Maintenance 17 First General Services 18 Brown Brothers Contracting 29 Mug-A-Bug 29 Timberline Landscaping 30 BluSky Restoration Contractors Back Inside Cover Apartments Etc. Backcover

By Terri Norvell

12 14

ADVERTISING DIRECTORY

Motivational Accountability Four Steps to Building A Powerful Property Management Incentive Program

Channing Brooks | channing@aaschq.org | ext. 13

By Gary Goodrich, CoreLogic SafeRent

Kelly Leggett | kelly@aaschq.org | ext. 14

By Robert Carr, Weidner Apartment Homes

By Ernest F. Oriente, The Coach Legislative News from NAA

RECAP: A Silent Auction to Remember For the benefit of Greccio Housing and AASC

Investing in Your Success

By Diana Diaz-Guerrero, Weidner Apartment Homes

RECAP: Christmas Luncheon At The Cheyenne Mountain Resort

Ask The Lawyer: What Landlords Need to Know About The Legislation of Marijuana (Amend. 64)

By Mark N. Tschetter, Tschetter, Hamrick, Sulzer P.C.

Get Simple Efficiency Upgrades that Imporove Comfort and Profitability

28

Quarterly Updates and Estimates

30

Business Continuity Planning

27

By Frank Kinder, Colorado Springs Utilities

By College of Business, UCCS

By Edward D. Tracey, Peliton Insurance, LLC

2012-2013 BOARD OF DIRECTORS

President: Robert Carr, Weidner Apartment Homes Past President: Shelly Kueker, A Buzz Property Management Supplier Council Chair: Jack Foster, Rocky Mountain Fire Specialist FACEBOOK TWITTER Treasurer: Robin Boddy, Weidner Apartment Homes www.facebook.com/aasc1970 www.twitter.com/AASChq Secretary: Lauriza Dishion, Weidner Apartment Homes 878 Likes 32 Followers Legal Council: Vic Sulzer, Tschetter, Hamerick, Sulzer P.C.

Board Member: Rick Cordova, Arlun, Inc. LINKEDIN Board Member: Kevin Miesse, Apartments Etc. www.linkedin.com/in/aasc1970 Board Member: Sandy Thrash, Mesa Ridge Apartments 803 Members Board Member: Becky Deeter, Bella Springs Board Member: Matt Pacheco, Arlun, Inc. Board Member: Hannah Delagardelle, BluSky Restoration Contractors

2012-2013 COMMITTEE CHAIRS

Developing Professionals Network: Hannah Delagardelle, BluSky Restoration Contractors; Robin Boddy, Weidner Apartment Homes Expo/Maintenance Mania: Kris Goraczkowski, Alternative Resurfacing; Keith Pierce, Reconstruction Experts Inc. Fun-Raising: Amanda Hoffmann, All Around Maintenance; Sandy Thrash, Mesa Ridge Apartments Education: Dianne Diaz-Guerrero, The Retreat at Austin Bluffs Membership /Community Outreach: Lisa Sutton, Ridgeview Place Apartemtns; Tracey Griggs, Westward Properties Golf: Rick Cordova, Arlun, Inc. & Jack Foster, Rocky Mountain Fire Specialist Legislative Action Committee: Robert Carr, Weidner Apartment Homes; Ken Greene, Apartment Realty Advisors Meetings: Sheridan Carter, ForRent Media Solutions Supplier Council: Jack Foster, Rocky Mountain Fire Specialist

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Winter Edition | 2013

Calendar of Upcoming Events

The Annual Race Car Challenge “Build Your Car” Pre-Event Workshop

Thursday, January 17, 2012 4:00 - 6:00pm

Where: The BluSky Warehouse, Unit C FREE Event 6240 Lake Shore Court. Registration for Maintenance Mania Colorado Springs, CO 80915 is required

Meet the Management Featuring Griffis Blessing

Wednesday, January 23, 2013 4:00 - 6:00pm

Where: Sunset Creek Apartments

5400 North Nevada Avenue

Colorado Springs, CO 80919

AASC’s Annual Education Conference & Exposition | Maintenance Mania

Wednesday, February 13, 2012 All Day Event, 6:00am - 4:00pm

Members Using Members

Where: The Freedom Financial Services Expo Center

3650 North Nevada Avenue

Colorado Springs, CO 80907

How to Be Successful in Court

Thursday, March 21, 2012

AASC’s Quarterly Luncheon 11:30 - 1:30pm

Where: TBD

ul in Be Successf

Court on

AASC’s Quarterly Lunche

THURSDAY March 21, 2013 At The Crowne Plaza

2886 South Circle Drive Colorado Springs, CO 80906 11:30am: Registration 12:00pm: Luncheon & Presentation Register Online at www.aaschq.org.

Members: $35 | Non-members: $52.50 Hear from Judge Daniel Winograd of El Paso County Courts. This luncheon addresses concerns and questions for both owner and supplier members. Learn how to navigate Small Claims Court. Learn how to avoid common mistakes companies make when filing. Learn how to collect from customers!

• Have you ever been sued or had to file a claim?

• Have you had to deal with evictions?

• Do you own or manage your business?

President’s Message industry. Despite the challenges we will face in this arena, I am confident of our ability as an industry to do so effectively. Part of this confidence stems from the fact that we have such great people working on our behalf. Our VP for Government Affairs at the state level, Nancy Burke, is amazingly skilled at navigating the ever changing political landscape and at the local level we have an Executive Director with a political science degree and a passion for our industry in Laura Nelson.

While driving back to The Springs from

Denver in early December I witnessed a

rather awesome sight. A couple miles North

of Monument Hill I was passed by 3 Boing C-17 transport planes in rapid succession. The planes were flying much lower than we are accustomed to seeing such large aircraft and the whole thing was rather breathtaking. As the planes passed out of sight my thoughts turned to the men and women inside who were now on the final approach home to their loved ones. I imagined how much the sight of those planes must mean to the families of the returning soldiers as they touched down at Peterson. I envisioned the many happy reunions full of hugs and tears of joy just in time for the holidays.

The challenge of our State House and Senate composition will also create opportunities to work with those who may not seem like natural allies. By reaching out and effectively educating legislators about our industry we have an opportunity to broaden our support and coalition. After all, what we do is important and the vast majority of the people in our business care deeply about the people they serve. I believe this comes through in a very positive way when we are engaged in the political process at the Capital.

I will also admit to doing some math in my head regarding how many soldiers each plane could hold, how many were likely to live on base and how many may be in need of an apartment. As we are all very aware, our local economy is driven by how many of those planes are landing and how many are taking off. I know the biggest challenge of my budget season is trying to figure out how many of each we will have in the coming year. 2013 promises to be a year of many challenges, but also of many opportunities for industry and organization.

Like the work we do on our properties, the work of AASC is important and without your support it just couldn’t get done.

Thank you for your continued support of our organization and our mission of advocating, educating and supporting our industry.

Here’s to a great 2013 with more landings than take-offs.

The result of the November election will present our industry with challenges at the state level. We will no doubt need to be prepared to fend off bad legislation that would be harmful to our

Thank you,

Robert Carr, President of AASC

Director’s Message

I recently had the privilege of judging some

of the categories for the Emerald Awards

given by the Washington Multi-Family

Housing Association. Through this judging process I was reminded of just how important property management work is to our community. As I read over the answers given by the nominees I was moved by the genuinely kind and caring nature of these individuals. I was impressed by their desire to make their residents feel at home and how they truly cared about making their properties feel like a community and not just a temporary form of housing but a lasting place to call home.

or regional manager, you provide one of the basic human needs a home. You should be proud of the career you have chosen and know that you are important to so many people who live at the communities you represent.

Please keep your co-workers in mind and nominate them for our upcoming Peak Awards so that they too can be recognized for the wonderful work that they do. Nominations begin January 1st.

Thanks again for all that you do.

I wanted to take this opportunity to tell all of our members thank you for making a difference in the lives of so many each and every day and remind you that whether you are a leasing agent, manager, maintenance supervisor, maintenance technician, housekeeper

Laura Nelson Executive Director

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Winter Edition | 2013

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Resident Screening Fact Sheet

example, a Class A property may require a higher acceptance score than a Class B property in the same portfolio.

By: Gary Goodrich, Regional Sales Manager, CoreLogic SafeRent

5. Instant Score Results

To shorten the sales cycle, you may consider using a screening method that delivers decision scores instantly. Decision scores should be delivered seconds after applicant data is entered, allowing agents to process leases before applicants leave the leasing office. This may reduce the likelihood of prospective residents shopping somewhere else for an apartment.

The importance of resident screening cannot be emphasized enough, because when a good screening method is used, it can help apartment properties financially manage portfolios by increasing Net Operating Income (NOI). This fact sheet provides best practices and screening tools properties can use to leverage screening data to its fullest potential. These tools should help property owners and managers pick the best residents which may reduce bad debt, balance risk and occupancy and improve NOI.

6. Criminal Screening

Maintain a safer community for residents, guests and staff by incorporating criminal screening. Consider a criminal screening product that delivers results to the leasing staff based on criteria established by the property.

Automation ensures that all decisions are made consistently, improves Fair Housing compliance and

Best Practices

Most applicant screening methods are similar in that they examine a few applicant attributes, such as rent-to-income ratio or debt levels, and make a judgment of an applicant’s likelihood to meet their rental obligations.

Such methods, however, do not consider the hundreds of variables that impact an applicant’s ability and willingness to pay rent. Nor do they consider the interactions of such variables. The following best practices provide guidelines that can be used when choosing a resident screening method.

1. Statistical Resident Screening Model

Consider selecting a statistical resident screening model. Results-based, statistical modeling has been used for decades in the mortgage industry, credit card industry, and numerous other industries because it is the only technique that can objectively determine which variables are predictive of the performance being modeled and appropriately weigh these variables.

This methodology is deemed to be more accurate and delivers better bottom line financial performance. Statistical scoring models built specifically for resident screening deliver a score that estimates the credit risk that an applicant may not satisfactorily fulfill his/her lease obligations.

frees the staff from interpreting complicated criminal reports.

7. Terrorists Screening

Under Presidential Executive Order 13224, apartment owners are prohibited from entering into a lease or other real property transactions with Specially Designated Nationals (SDN) and Blocked Persons. The Treasury Department’s Office of Foreign Assets Control (OFAC) maintains a list of known and suspected terrorists, international narcotics traffickers, and their representatives that are designated as SDNs and Blocked Persons.

Violations of this regulation can result in criminal penalties ranging from $50,000 to $10,000,000 and/or up to 30 years imprisonment. OFAC also has authority to impose civil penalties of up to $1,075,000 per violation.

To avoid penalties, please ensure that your resident screening method checks applicants against the OFAC list.

2. Landlord-Tenant Data

It is important for a screening model to include landlord-tenant data in addition to credit payment history to get a complete picture of prospective resident lease performance. This data should include past court actions, prior landlord inquiries, and landlord-reported history information regarding lease performances. Please ensure that the screening model uses the largest landlord-tenant data set because doing so should provide the most comprehensive score and prediction.

8. Management Reporting Suite

Statistical resident screening models include a suite of management reports that help properties leverage the data collected in the screening process. Reports analyze the screening data to provide powerful business intelligence. This intelligence allows property managers to make better leasing decisions, discover growth opportunities and measure and adjust marketing strategies. If the data analyzed by the management reports is not based on statistical scoring, than the business intelligence provided by the reports may not be accurate. Reliable data coupled with business intelligence has proven over time to reduce risk and increase NOI.

3. Fair Housing Compliance

Use a resident screening method that improves Fair Housing compliant resident selection. A mathematically-derived score and standard acceptance levels ensure more consistent interpretation and execution of acceptance policies than other screening methods. Elimination of manual screening decision overrides should improve Fair Housing compliance even further.

4. Adjustable Acceptance Levels

Choosing a Resident Screening Model

Resident screening models with adjustable acceptance levels provide property managers with a powerful tool for fine-tuning and controlling the balance between loss rate and vacancy rate. It is best if the screening model gives each property within a portfolio the flexibility to adjust its own acceptance level based on the financial risk that is acceptable for that specific property. This allows a property to adjust levels as economic conditions, vacancy rates, and other market considerations change. This flexibility also accommodates portfolios that have a variety of property classifications because it allows acceptance levels to be adjusted to accommodate risks associated with specific property classifications. For

As you can see by the guidelines outlined above, a proper resident screening process incorporates more than just credit reports. There is an abundance of data that can help properties assess risk and manage apartment communities more profitably, in addition to maintaining security for residents and staff. Make sure your resident screening method harnesses all of the available data and analyzes it with a statistical scoring model. These guidelines provide managers and owners with the necessary knowledge to select an effective resident screening method that can positively impact the bottom line.

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Winter Edition | 2013

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Motivational Accountability

By Terri Norvell

Motivation is an inside job and so is Accountability. So, what happens when the two are put together? You feel inspired to achieve! Wouldn’t it be great if all team members were inspired to achieve? That you knew you could count on each to do what they say they are going to do? The workplace might feel a bit different.

Maybe a lot different.

Let’s take it out of the workplace for an example. Just last weekend a neighbor asked Audrey, my recently driving 16 year old, if she was up to a challenge. He would give her a crisp $100 bill if she didn’t get a ticket in her first year behind the wheel.

But, she would have to give him $100 if she got a ticket. Her comment,”What, you want me to be personally accountable?” That’s exactly what she said and she’s still thinking about the offer!

Well, yes I do want her to be personally accountable for the responsibilities that go along with safe driving. It’s appearing that the $100 isn’t motivation for her to commit. No surprise. It’s from the outside and for motivation to be effective is must be from within. Only Audrey can do that for herself.

This is what too often happens in the workplace. You know team members know what to do, they tell you they are going to do it, they might even have the best of intentions to try and do it.... and ‘it’ doesn’t happen. Something was lacking including the motivation.

Taking personal accountability to achieve desired results seems simple, yet so much can get in the way. It usually stems from lack. First there is a lack of understanding that accountability can be positive. Second there is too often: lack of information, lack of clarity, or lack of expectation understanding. Third, there’s a lack of feedback and celebration. Removing all these accountability road blocks opens the door for motivation and accountability to spring forth. Yet, motivational accountability doesn’t happen in a vacuum. There are external workplace variables and internal aspects that are both important. The good news is that there is a process to set yourself up for success.

Doing your best. Feeling good about what you do. Knowing you do what you say you are going to do. Others knowing they can count on you, too. This just feels good no matter your age or focus. You, your team and your organization all massively benefit.

As for Audrey and that $100 challenge. I think she’s good for it. She has a track record of doing her best and feeling good about herself when she does.

Terri Norvell is a personal and professional change agent. From management to leadership development, enhanced sales/leasing performance and team building, Terri teaches how to achieve critical results with greater ease and more fun. She brings over 20 years of corporate office to the front-line management and leadership experience as VP of a $1.2 billion dollar property management & development company and GM of a $9 million dollar temporary housing firm. She demonstrates that succeeding wildly is good for everyone...including the bottom-line. Contact Terri for information on her keynote speaking, corporate workshops and professional coaching at 303-439-0077 or Terri@TerriNorvell.com. Or visit www.TerriNorvell.com.

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Four Steps To Building A Powerful Property Management Incentive Program ©

Whole Property Pricing Education 2013

by Ernest F. Oriente, The Coach

Want to build a successful incentive program for your property management company? Have you dreamt about finding ways to have more fun at work and still see big results? At the heart of every employee incentive program is the ability to motivate and reward your property management team for excellent performance. In this article, I will show you four easy steps to build an incentive program that allows everyone to win!

Setting objectives: For any type of employee incentive program, your property management team must feel the goals are attainable and realistic. An incentive program should also fit into your company’s overall business strategy and be easy to measure. Using targets such as revenue growth, occupancy, resident retention and NOI, are some of the ways to establish incentive objectives. In addition, the ideal incentive program will allow each person in your company to feel they have an opportunity to win.

Tip From The Coach: To build a powerful incentive program, plan a brainstorming session with a few of your key resident managers and property supervisors so they can share unique insight about ways to make the program a giant success. Listen to their input, as they will lead you to the gold!

Developing a strategy: Be certain your objectives are simple and well defined. Then, do everything possible to ensure your company goals can be evaluated fairly and objectively. For example, the occupancy at a property or the number of leases renewed each month can be easily measured. Once you have outlined the goals to be measured, then build a specific schedule of how frequently you are going to report the progress of your incentive program. For instance, if your incentive program is going to run for three months, then plan on announcing the rankings every two weeks, to keep top-of-mind awareness.

Lastly, clearly outline the rules of your incentive program in writing and define the specific time period to be measured.

Tip From The Coach: When building your strategy, be certain to focus on win/win. Also, consider what will happen to morale if many participants within your property management company don’t or can’t achieve their incentive objectives.

Establishing awards: Start by establishing your budget for this incentive program by defining the projected number of awards to be given. Then, consider the “people-profile” of your property management team to develop appropriate awards that will be memorable and the winners will take pride in receiving. This is another great topic to brainstorm with a few of your key resident managers and property supervisors. Given an open forum, they will tell you exactly what is important to them and to those they manage.

AASC’s Whole Property Pricing Packages allow companies and individual properties to enroll in AASC’s classes based on their size and total units. Don’t pay anything until January 2013!

Whole Property Pricing Packages Single Property:

1 - 50 Units - $100

51 - 100 Units - $150

101 - 150 Units - $200

151 - 200 Units - $300

201 - 300 Units - $400

301 - 499 Units - $500 Management Company:

$2200 for 7+ properties This pricing program allows all on-site and corporate staff to attend AASC’s basic seminars year-round.

Tip From The Coach: Your team will be most inspired if they feel the incentive rewards are meaningful enough to justify their efforts. Some award ideas…a nice dinner with the President of your company, education/training classes paid for by the company, a paid day off with cash for shopping, a special plaque to reward top performers, special recognition at your next company meeting, or a trip to a vacation resort.

Evaluating the results: Bravo! Your incentive program is completed and now is the time to evaluate the results and to justify the success of your program. Start by getting feedback from your property management team by surveying them and asking for their feedback. Ask them if the incentive program made a difference in their performance and ask for any suggestions they have to improve future programs. Then, evaluate if the program helped your property management company achieve its goals while consider any improvements you would make for the next incentive program.

Tip From The Coach: When evaluating the success of your incentive program, look for any side benefits you didn’t expect, such as a new spirit of enthusiasm, reduced turnover or increased teamwork.

Want to hear more about this important topic or ask some additional questions about employee incentive programs? Send an E-mail to ernest@powerhour.com and The Coach will E-mail back to you a free invitation to be a participant on a PowerHour conference call.

Author’s note: Ernest F. Oriente, has been a business coach since 1995 [29,630 hours], and a property management industry professional since 1988--the author of SmartMatch Alliances--and the founder of PowerHour...[ www.powerhour.com and www.powerhourseo.com and www.pirmg.com ]. To subscribe to his free property management newsletter go to: www. powerhour.com. PowerHour® is based in Olympic-town…Park City, Utah, at 435-615-8486, by E-mail ernest@powerhour. com or visit their website: www.powerhour.com

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Get 10% off all certification and designation courses when you enroll for the Whole Property Pricing program.

Register & Sign-Up for Classes Today at www.aaschq.org.

Winter Edition | 2013

December 17, 2012

Key Tax Increases from Health Care Law Take Effect in 2013

NAA/NMHC JOINT LEGISLATIVE PROGRAM NEWS

Apartment firms are reminded that a number of significant tax increases impacting the industry, which were enacted in 2010 as part of health care reform legislation, are slated to take effect beginning in 2013. Two of the most important changes, which affect both apartment firms and employees, have to do with the Medicare tax rate and applicability.

Changes Coming to Two Green Building Programs

The updates of two green building programs of importance to the apartment sector—the National Green Building Standard (NGBS) and the U.S. Green Building Council’s (USGBC) LEED programs–are nearing completion. The new requirements could significantly affect multifamily green building projects moving forward.

Under the new rules, an additional 0.9 percent Medicare payroll tax will be applied to wages for individuals earning over $200,000 and married couples earning over $250,000. Unlike current law, which imposes a 2.9 percent Medicare payroll tax on all wage income (shared equally between employee and employer), employees will be solely responsible for the additional tax increase.

Publication of the updated NGBS (ICC-700 2008) is expected in early 2013. The NGBS is an important tool for the multifamily sector, as it is the only green building standard addressing all residential properties and developed with input from the apartment industry.

In addition, whereas no Medicare payroll tax today applies to net investment income—including annuities, capital gains, interest, dividends, royalties and rents—the new health care reform legislation will impose a 3.8 percent tax on such income for highincome earners. However, certain caveats apply—one of the most important being that the new tax applies only to passive investment income.

Concurrently, development of LEED v4–an update to LEED 2009–is in its final stages. In the new version of the program, LEED users will face substantially altered credits and requirements, as LEED v4 is specifically designed to increase the rigor of the program. USGBC will convene a voting committee in April 2013, with final approval of the new criteria scheduled for the summer of 2013. LEED 2009 will remain available for use until June 2015 to accommodate projects in development.

Supreme Court Evaluates Property Owners' Rights During Land-Use Approval Process

NAA/NMHC joined a coalition of real estate and related trade associations in filing an amicus brief with the U.S. Supreme Court in support of the petitioner in Koontz v. St. Johns River Water Management District. The outcome of the case could have ramifications for multifamily property owners and developers, as many are forced to agree to additional stipulations from regulatory bodies to obtain permits. At issue is whether those types of regulatory actions during the land-use approval process constitute a “taking” of a real estate developer’s private property rights, violating the Fifth Amendment to the U.S. Constitution.

New NAA/NMHC White Paper Calls for Ongoing Federal Role in Mortgage Finance System

Because private capital has been unable—even in healthy economic times—to meet the broad liquidity needs of the apartment industry, NAA/NMHC have remained engaged in the debate and discussion of housing finance reform and, more specifically, the future of Fannie Mae and Freddie Mac. Most recently, NAA/ NMHC published a white paper outlining 10 key principles for preserving liquidity and stability for the multifamily industry in a reformed housing finance system.

In the Koontz case, the court will consider whether the off-site wetlands mitigation demanded by the water district was proportionate to the impacts of Koontz’s proposed commercial project–or whether the government’s demands were “closer to an unconstitutional form of extortion.” The court’s decision, expected in summer 2013, will have a significant effect on the land-use approval process whenever zoning and environmental regulators seek concessions from real estate developers.

While the industry strongly supports the return to a system dominated by private capital, an ongoing federal role is critical to ensuring that capital is available in all markets at all times. A private-only housing finance system results in an overabundance of capital for high-end properties in top-tier markets, but leaves smaller markets underserved. Our paper also makes it clear that policymakers must consider the unique aspects of the multifamily sector when they consider wholesale reform of the nation’s mortgage finance system.

www.AASCHQ.org

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HUD Allows 55+ Communities to House Hurricane Sandy Victims

that it has insufficient cash to pay insurance claims. While the report is stirring political debate about the government’s role in the housing finance system, its results have little relevance for the apartment industry. FHA separately capitalizes against potential losses for its single-family and multifamily mortgage insurance programs. FHA’s multifamily program continues to perform well, operating with adequate capital reserves and a continued reduction in potential defaults.

In response to devastation left in the wake of Hurricane Sandy, including the displacement of tens of thousands of evacuees, the U.S. Department of Housing and Urban Development (HUD) recently issued guidance that affords senior and age-restricted communities the flexibility to open up vacant units to evacuees under the age of 55. The notice protects the communities from disqualification for certain legal exemptions under the Fair Housing Act. The HUD letter announcing the guidance, along with a frequently asked questions document, is available at www.nmhc.org.

Federal Regulators Delay Proposed Basel III Capital Requirements

On Nov. 9, federal banking regulators issued a joint statement postponing the implementation of proposed Basel III international bank capital rules until an unspecified date, citing industry concerns that banks would not have enough time to understand the rules or make necessary system changes.

IRS Provides Tax Relief to Hurricane Sandy Victims

The Internal Revenue Service (IRS) announced that it will provide tax relief to businesses and individuals impacted by Hurricane Sandy. As outlined below, the IRS is extending filing deadlines, offering Low-Income Housing Tax Credit (LIHTC) flexibility and enabling employers to distribute tax-free disaster-relief payments to employees.

The rules, which would effectively triple the size of the capital reserves banks must hold against losses, were set to go into effect on Jan. 1, 2013; a proposed rule was issued in June. In postponing the rules, regulators noted they are “working as expeditiously as possible to complete the rulemaking process.”

• Extended Tax Filing and Payment Deadlines. On Nov. 2, the IRS announced that it is extending to Feb. 1, 2013, tax filing and payment deadlines for Hurricane Sandy victims. The extended deadline will apply to fourth quarter individual estimated tax payments, normally due Jan. 15, 2013, as well as to payroll and excise tax returns for the third and fourth quarters, normally due on Oct. 31, 2012, and Jan. 31, 2013, respectively. More significant, any interest, late-payment or late-filing penalties that would otherwise apply will also be lifted.

NAA/NMHC and a coalition of organizations had previously submitted written comments on the regulations, which included a recommendation that they be delayed to allow for further study.

NAA NEWS

Elevating Political Involvement Sets Stage for 2013 NAA Capitol Conference

Michael E. Dunn, a popular speaker on grassroots advocacy and political action committees, will give the kickoff keynote address at the 2013 NAA Capitol Conference (March 10–13) in Washington, D.C. Dunn’s topic, “Taking Political Involvement to the Next Level,” will set the stage for concentrated advocacy educational sessions, an industry issues briefing, networking and other events leading up to NAA’s Lobby Day on Capitol Hill.

• LIHTC Relief. On Nov. 4, the IRS suspended certain LIHTC requirements in areas impacted by Hurricane Sandy.

Specifically, the IRS will allow state housing agencies to suspend otherwise applicable income limitations and nontransient requirements to allow owners of l ow-income housing to temporarily provide vacant units to displaced storm victims. Rent restrictions will continue to apply to such units. Although state housing agencies will determine how long requirements are suspended, relief may not extend beyond Nov. 30, 2013.

In addition to Dunn, NAA Chairman of the Board Alex Jackiw will provide an overview and announce new developments with NAA/NMHC’s new national public relations campaign during the kickoff.

• Tax-Free Disaster Relief Payments to Employees. The IRS also announced on Nov. 2 that employers may provide employees with tax-free Hurricane Sandy disaster-relief assistance. According to the IRS, “qualified disaster relief payments include amounts to cover necessary personal, family, living or funeral expenses that were not covered by insurance. They also include expenses to repair or rehabilitate personal residences or repair or replace the contents to the extent that they were not covered by insurance. Again, these payments would not be included in the individual recipient’s gross income.”

All NAA members are encouraged to help give the apartment industry a stronger voice by investing their time at the Capitol Conference, the apartment industry’s only national event that educates NAA members on critical federal legislative and regulatory issues. This year’s theme is “Make an Investment in Advocacy.”

This year for the first time on Lobby Day, NAA members will have concrete national and state economic impact data that shows how the apartment industry has remained a positive economic force despite the recession and how its size and broad scope build vibrant communities throughout the United States.

FHA Financial Report Fuels Debate Over Government Role in Housing Finance

Today the apartment industry’s involvement in the political process is not a choice – it’s just good business. Join your peers at the Capitol Conference and make your voice heard. Check NAA’s website to view the schedule. Registration will open later this month.

On Nov. 16, HUD released its annual report to Congress on FHA’s financial condition. The study, which focused solely on the agency’s single-family mortgage program, raises concerns that FHA may need to draw down funds from the Treasury in the event |13|

Winter Edition | 2013

A Silent Auction to Remember This Silent Auction event raised support for Greccio Housing and the Apartment Association of Southern

Colorado. Greccio Housing is a local non-profit agency that provides affordable rental housing for low to moderate income residents of Colorado Springs.Through Greccio Housing’s Resident Enrichment programs we have seen many lives changed for the better. Each year Greccio Housing and the Apartment Association of Southern Colorado continue to advance their missions by making a difference in the rental housing industry.

It was a festive night at the Carter Payne, located in downtown Colorado Springs, as classical music played in the background and delicious hors d’oeuvres were catered by Garden of the Gods Gourmet. Items such as Spa Packages,Trips to NewYork and California, Kindles, and Denver Broncos Tickets were donated for auction from AASC member companies, companies that support Greccio Housing, as well as other companies in the Colorado Springs area. Items were displayed on round tables for everyone to sign their name and list their bidding price. As the evening went on tables closed for auction one at a time and guests scrambled to make their last bid. With items like StarWars toys, a Kindle Fire, a GoPro Camera, Denver Broncos Tickets, and a football signed by the entire Denver Broncos team of 1995, everyone was eager to see who had the winning bids. This event raised $2800 which will go towards the programs offered through Greccio Housing and towards the mission of The Apartment Association. We want to say thanks to all the companies that donated auction items; the night was incredible because of you.

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With Sincere Appreciation A special thanks to those who donated items for auction: Rocky Mountain Fire Specialists, A Buzz Property Management, Arlun Inc., Bella Springs Apts., HD Supply, Timberline Landscaping, Grand West Properties, Lincoln Property Management, Buck Blessing, Sunflower Management, Cobblestone Ridge Apts., Weidner Apartment Homes, Tschetter Hamrick Sulzer, Venturi Clean, Olive Tap,The Ten Spot, Flags by Susan, AFASSCO of Colorado, Salus Natural Body Care, Paravicini’s Italian Bistro,The Melting Pot, Kimball Theater, Arbor Contract Carpet, Land Title GuaranteeWorkshop, Apartments at TheWillows,The Antlers Hilton, Santa’sWorkshop, American Overhead Door, Coinmach, The Club at Flying Horse, and Reconstruction Experts Inc. We also want to recognize Kali Shaw with Coinmach who gave hours of her time towards planning this event.

A special thanks to our sponsors Arbor Contract Carpet, BluSky, and Allstate Roofing Inc.

Thank You Sponsors!

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Look for AASC’s 2013 Buyers Guide & Membership Directory.

Stop by the AASC Office located at 2790 N. Academy Blvd. Suite 227, Colorado Springs, CO 80917 to receive your free copy!

AASC’s 2013 Buyers Guide & Membership Directory is also available online at www.aaschq.org in the membership area.

Stay Connected

With AASC Members Klass Law Firm

Philip Klass 2109 Wadsworth Blvd, Ste. 202 Lakewood, CO 80227 303-758-0500 | F: 303-969-0501 tim@klasslawgroup.com

Introduce yourselves to these NEW members!

The Mac Corner

Allstate Roofing, Inc.

Fresh Aire, Air Freshners

DRX Enterprises, LLC

Overhead Door Company of Colorado Springs

Fountain Valley Electrical

Marlene Rothzeid 4188 Center Park Dr Colorado Springs, CO 80916 719-884-2801 marlene@themaccorner.com themaccorner.com

Laura Swearingen 8547 E. Arapahoe Rd, Ste J322 Greenwood Village, CO 80112 913-702-2000 | F: 913-764-7524 laura@allstateroofing.com allstateroofing.com

Heatherwood Apts

Deanna Kemper 260 Justice Center Rd Canon City, CO 81212 719-275-1588 | F: 719-275-5890

dkemper@uahmgt.com

Mission Rock Residential Meredith Wright 1355 S. Colorado Blvd. C710 Denver, CO 80222 720-644-6159 mwright@missionrockres.com missionrockresidential.com

The Uintah Group, LLC

Martin Read PO Box 7507 Colorado Springs, CO 80933 719-635-1576 uintahgroup@gmail.com

Stauch Rentals

Rick Stauch 14785 Millhaven Pl. Colorado Springs, CO 80908 719-310-7778 RMStauch@gmail.com

Pinewood Apts

Michael Dierks 1553 W Ignacio Dr S. Pueblo West, CO 81007 719-547-8938 | F: 719-547-2031 mike@drxenterprises.net uniqueapartmentgroup.com

Unique Apartment Group

Wallis Hutchens 1873 S. Bellaire St, Ste. 825 Denver, CO 80222 303-512-1190 | F: 303-578-7788 whutchens@uniqueprop.com ltgc.com

Independent Golf Fleet Service

Land Title Guarantee Company

Point of View Apts.

Marshall Rentals

Diana Cheyney 4255 Airport Rd. Colorado Springs, CO 80910 719-591-9439 Dcheyney@resourceresidential.com

Justin Carlson PO Box 5726 Colorado Springs, CO 80931 719-391-0650 | F: 719-391-2846 sealcoat489@msn.com sealcoatspecialties.com

Pet Scoop, Inc

Sam Johnson 1500 W. Cedar Ave. Denver, CO 80223 303-202-1899 | F: 303-763-7000 samj@petscoopservices.com

www.AASCHQ.org

Rachel Lowder 4410 E. Pikes Peak Ave Colorado Springs, CO 80916 719-597-6377 | F: 719-550-1868 pointofview@ores.com

Resource Residential 2005 Market St.15th Floor Philadelphia, PA 19103 267-402-5700 resourceresidential.com

Seal Coat Specialties, Inc.

Ray Collins 6780 Renneberger Rd Peyton, CO 80831 719-205-8683 | F: 719-683-4290 IGFS.Ray@gmail.com

Sara Martin 102 S. Tejon St, Ste. 760 Colorado Springs, CO 80903 719-634-4821 | F: 719-634-3190 smartin@ltgc.com

Natalie Mort 3105 E. Dale St. Colorado Springs, CO 80909 719-475-0042 | F: 888-638-0326 mortn@msn.com

Elizabeth Marshall 12128 Isle Royale Dr Falcon, CO 80831 719-393-3821 | F: 719-494-1863 planetlizzie@hotmail.com

Shaun Root 1205 Ford St Colorado Springs, CO 80915 719-596-2171 | F: 719-596-0553 shaun.root@overheaddoorcoloradosprings. com overheaddoorcoloradosprings.com

Camelot Apts

Commercial Water & Energy Co. Beckie Mellen 6890 Quicksilver Dr Colorado Springs, CO 80922 305-436-6050 | F: 303-436-6020 bmellen@cwe-net.com

AWL Roofing

Bill Langford 6335 Tuckerman Ln Colorado Springs, CO 80918 719-264-4434 | F: 719-260-1807 abilllangford@gmail.com AWLRoofing.com

Cheyenne Roofing Inc.

Heather Blanford 9519 Bradley Dr Fountain, CO 80817 719-382-7489 | F: 719-382-8732 heather@ransomconst.com ransomconst.com

Steve Louden 1605 Capital Ave, #311 Cheyenne, WY 82001 800-800-3453 steve@cheyenneroofers.com CheyenneRoofers.com

Mesa Ridge Apts

Timberlane Apts.

BLDG Management

Mike Phillips 3003 E. 3rd Ave, Ste 201 Denver, CO 80206 mike@bldgapartments.com bldgapartments.com

Kris Rubio 4164 Austin Bluffs Pkwy, Suite 325 Colorado Springs, CO 80918 719-799-3329 | F: 719-434-7329 rocksolidroof@yahoo.com rocksolidroof.com

Guy Jordan 4250 Hancock Expressway Colorado Springs, CO 80911 719-572-7318 | F: 719-572-7322 guy@fvelectric.com fvelectrical.net

Ransom Construction, Inc.

Sandy Thrash 7765 Pitcher Pt Fountain, CO 80911 719-471-1800 sandy.thrash@gb85.com

Rock Solid Roofing

Kurt Shraut 590 Hwy 105 #173 Monument, CO 80132 719-219-8161 | F: 503-650-8340 kurt@freshairefranchise.com freshairefranchise.com

Tim Burns 3985 E. Bijou St Colorado Springs, CO 80909 719-596-2680 timberlane@bldgapartments.com

Anytime Restoration

Justin Milligan 1431Pando Ave. Colorado Springs, CO 80905 719-492-8034 | F: 719-375-0827 anytimerestoration1@gmail.com

Apartment Insights The Springs Carpet & Tile Care, Inc. Doug Carter Scott Cox 901 Yuma St, Unit H Colorado Springs, CO 80909 719-592-1694 | F: 719-592-1690 scott@thespringscarpet.com thespringscarpet.com

Anytime Plumbing & Drain Justin Milligan 1431Pando Ave. Colorado Springs, CO 80905

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104 S. Cascade Ave., Suite 212 Colorado Springs, CO 80903 719-520-1600 doug@dougcarterllc.com apartmentinsights.com

With more than 20 years experience in the apartment industry, our professional and courteous employees will provide the services you need.

Interior Painting Exterior Painting Drywall and Texture Repairs General Maintenance Service Requests Rehab Maintenance Pool Services Evictions

719-597-3393

allaroundmaint@comcast.net

719-635-3056 General Contractor

Abatement Services Asbestos & Lead Paint

A Division of First General Services Clean up & Dry out

719-572-5467

719-635-6789

“One Call Gets Us All” Proud Supporters and Members of AASC since 2002

“We are the only locally owned restoration contractor in El Paso County with an A-1 license.”

We provide services for all forms of cleaning, clean-up, repairs, remodel and restoration.

www.fgsofcs.com

43 rd

ANNUAL

13 2013

EDUCATION CONFERENCE & EXPO

& MAINTENANCE MANIA

This year’s Expo will be held at The Freedom Financial Services Expo Center, located at 3650 North Nevada Avenue in Colorado Springs, CO 80907.

Attendance to the Expo and seminars are free for all owner members. Supplier members must purchase an expo booth to attend. Lunch is $25 per person with a registration deadline of February 4, 2013. Booths and sponsorships are still available. All booths and sponsorship contracts must be signed and paid in full

by January 28, 2013. To learn more about these opportunities, please contact Kelly Leggett at 719-264-9195 or email Sponsored By at Kelly@aaschq.org.

More information can be found at www.aaschq.org.

Seminars with Kate Good

50 Ways to Market, Connect and Create a Customer 10:30 - 11:30am

FEBRUARY

Race Car Challenge Prep Thursday, January 17, 2013 4:00 - 6:00pm The BluSky Warehouse, Unit C 6240 Lake Shore Ct. Colorado Springs, CO 80915 Attendees must register for Maintenance Mania.

At this pre-event workshop, get wheels for your car and get informed about rules and guidelines for this year’s Maintenance Mania. You may only use the wheels you receive at this event on your car. Food will be provided by BluSky Restoration Contractors.

Maintenance Mania is $40 per person (Includes: breakfast, seminar, competitions, race car challenge, lunch, and expo) Must have a team of 4 to qualify for team trophies. First place winners go on to compete at the state level to compete for a national spot.

Sponsored By

Stand out. The secret to earning a new customer is to first attract a new customer. We will look at the new needs of the recession-driven customer and channels to reach them.

Onsite Track: The Price Is Always Right 1:15 - 2:15pm Relive Kate’s experiences as a contestant on the classic TV show, and take a way lessons and successful pricing strategies. Once you determine the right price you have to sell it. Join Kate as she presents a solid stragey for maximizing your property’s income.

Seminars with Mark Cukro

HVAC Intermediate Troubleshooting 10:45 - 11:30am

Learn how the components and functions of an

HVAC system all work together to find the root cause of the problem. Understand and practice troubleshooting to the individual component level and develop efficiency in system diagnostics.

Schedule Tuesday, February 12

1:00 - 5:00pm

Wednesday, February 13 6:00am

Maintenance Mania Registration

7:00 - 8:00am

Booth Set-up

7:00 - 10:30am

Maintenance Mania

9:00am

Tradeshow Floor Opens

10:30 - 11:30am 50 Ways to Market, Connect and Create a Customer with Kate Good 10:45 - 11:30am HVAC Intermediate Troubleshooting with Mark Cukro 11:30 - 1:00pm

Effective Service Operations | 1:15 - 2:15pm Get the tools you need to build a team that performs higher and how to gain buy-in from your team. Learn mistakes Leaders and Service Managers make and how to avoid them. We’ll even discuss how to really get the shops organized and why it is so important to the success of an organization.

Booth Set-up

Lunch & Awards Presentation

1:15 - 2:15pm Onsite Track: The Price Is Always Right with Kate Good Effective Service Operations with Mark Cukro 3:30pm

Prize Give Away Begins

AASC Education Calendar Dates And Times Are Subject to Change

Here’s the class line-up for the new year! Classes are posted online at www.aaschq.org and are open for registration. AASC’s education department is now offers Whole Property Pricing Packages! These packages allow companies and individual properties to enroll in AASC education for one annual fee. For more details contact Kelly Leggett at Kelly@aaschq.org or (719)264-9195 ext. 14.

Sign-up today before classes fill up!

JANUARY 2013 Evictions 101 & Collections Wednesday, January 9, 2013 9:00 - 12:00 PM | Britten W. Hale, Springman, Braden, Wilson, and Pontius. P.C. - $40.00 | Non-Members $60.00 The class is designed to cover common mistakes made in serving notices. It will cover technical defenses by residents and lease language and explore the different types of notices and what they mean. This seminar is approved for 4 hours Continuing Education Credits.

Colorado Springs Utilities: Changes to Commercial/Residential Rate and How They Will Affect Property Manager Tuesday, January 8, 2013 1:00 - 3:00pm Changes affecting commercial landlords and property managers of residential properties: 1. State requirements clarifies residential electric and gas rates are not available to non-residential accounts. 2. Commerical landlords and property managers on residential electric and/or gas rates will automatically move to new commercial rates. New 2013 commercial electric and gas rates are comparable to our residential rates.

Lead Based Paint Certification Wednesday, January 23, 2013 8:00 - 5:00 PM | Sheila Sealander & Fay Ward, Empircal Environmental - $260.00 | Non-Member $390.00 EPA’s Renovation, Repair and Painting (RRP) rule was signed in April 2008 and impacts your property management practices in important ways. The rule requires landlords and property managers who disturb paint in pre-1978 structures to be certified and follow lead-safe work practices or to hire certified firms who follow lead-safe work practices. As a property manager, it is your responsibility to ensure compliance with the rule and protect public health by helping to prevent lead exposure from your units.

The course includes 6 hours of lecture and 2 hours of hands on instruction for your 5-year EPA certificate.

FEBRUARY 2013 Basic Fair Housing Wednesday, February 20, 2013 9:00 AM - 12:00 PM | Mark Tschetter, Tschetter, Hamrick, Sulzer P.C. - $50.00 | Non-Member $75.00 In conjunction with The National Apartment Association, we are offering a full scope seminar specializing in our multi-family housing industry. Be sure you and your staff are knowledgeable about fair housing regulations to protect your resident’s rights, and your business. This seminar is approved for 4 hours Continuing Education Credits. Cost of class includes book fees of $35.00. • Defining Fair Housing • Protected classes • Interacting with residents • What’s legal • General do’s and don’ts.

MARCH 2013 Advanced Fair Housing Wednesday, March 13, 2013 1:30 PM - 3:00 PM | Mark Tschetter, Tschetter, Hamrick, Sulzer PC - $75.00 | Non-Member $112.50 Today, discrimination is often subtle and sometimes even unconscious. However, when the conduct at issue disparately impacts those protected by law, the result is illegal discrimination. Therefore, it is imperative that property management professionals establish business practices that are in compliance with fair housing laws, and understand the importance of providing “equal professional service.” This seminar is approved for 4 hours Continuing Education Credits.

Service Requests: Dealing With Angry Residents Wednesday, March 20, 2013 Time TBD | Instructor: TBD - $50.00 | Non-Member $75.00 Handling angry residents is one of the most challenging aspects of our job. During this session, service professionals will learn methods to assist them in dealing with angry residents and discuss ways to effectively resolve complaints. The skills learned in this seminar can also be used by Associate Members as they deal with difficult residents.

APRIL 2013 Evictions 101 & Collections Wednesday, April 17, 2013 9:00 - 12:00 PM | Britten W. Hale, Springman, Braden, Wilson, and Pontius. P.C - $40.00 | Non-Members $60.00 The class will cover the common mistakes made in filling out and serving notices. It will discuss technical defenses by residents, lease language and notice to comply versus notice to quit. This class will explore the different types of notices and what they mean. This seminar is approved for 4 hours Continuing Education Credits.

Certified Pool Operator (CPO) Friday, April 26, 2013 & Saturday, April 27, 2013 8:00 - 5:00 PM | Rick Stewart, The Pool Guy, Inc. - $265.00 | Non-Members $397.50 Owners and Managers should consider this certified program for their maintenance staff. As most of you realize, if your property has a pool, risk and liabilities are higher.

One way to minimize those risks is to have a Certified Pool Operator (CPO) in charge of your pool maintenance. Bill Robertson and Rick Stewart, Certified Instructors of the National Swimming Pool Foundation wil be in Colorado Springs to teach this seminar. This intense two-day course has a limited classroom size, so you will want to get your reservation in early. The cost of this class will include your textbook, exam fees and 5-year certificate.

MAY 2013 Certified Pool Operator (CPO) Friday, May 10, 2013 & Saturday, May 11, 2013 8: 00 - 5:00 PM | Rick Stewart, The Pool Guy, Inc. - $265.00 | Non-Members $397.50 See description above.

Leasing Bootcamp Wednesday, May 15, 2013 8:30 AM - 12:30 PM | Sheridan Carter; Community Interiors - $75.00 | Non-Member $112.50 This class is great for both the seasoned leasing consultant and the newly hired leasing consultants. Come prepared to learn and laugh, but keep in mind this popular seminar is guaranteed to sell out very quickly! This 4-hour seminar will cover: Telephone Techniques, Greeting and Qualifying, Marketing and Advertising, Feature vs. Benefit, Safety Policies, The Leasing Notebook, Demonstration and Presentation, Closing and Objections, Fair Housing and how it applies to each phase of the leasing process. This seminar is approved for 6 hours Continuing Education Credits.

www.AASCHQ.org

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Investing in Your Success

2. National Apartment Leasing Professional (NALP): Leasing professionals are the first people prospective residents meet and often their only gage of the property staff. This course is designed to teach these professionals skills to help them become top producers.

By Diana Diaz-Guerrero, Weidner Apartments Homes

Continuing your education is a financial investment. We’ve all heard the saying, “time is money”. The more time you put into pursuing additional education, the more money you’re likely to make.

NALP course includes:

The multi-family housing industry is constantly changing. Continuing education keeps you up to date with the latest developments, changes in laws and regulations as well as new technologies. Education is a pivotal part of our profession, whether gaining knowledge from sharing industry best practices or keeping abreast of new trends so you don’t lag behind.

• Keys to Success in Leasing • Telephone Presentations • Leasing and the Internet • The Leasing Interview • Leasing Demonstration & Resolving Objections • Rental Policies and Procedures • Legal Aspects • The Market Survey Presentation

3. Certified Apartment Supplier (CAS): Suppliers are important liaisons to the multifamily housing industry. This program is designed as an opportunity for suppliers to hear the everyday challenges faced by the apartment manager customer. The CAS program is ideal for new salespeople as well as veterans of the industry.

The Apartment Association of Southern Colorado (AASC) offers a variety of educational and informational programs such as seminars, luncheon events, on-line classes and designated programs to keep members current on industry trends and new information.

The AASC is a valuable resource in providing relevant information to its members to navigate through the do’s and don’ts of fair housing as well as federal and local laws and regulations. Avoiding pitfalls, common mistakes, and adhering to industry standards saves members; money, time, and headaches from noncompliance fines and penalties. Investing in your success is the key to making better day to day business decisions for your owners, property, team and yourself.

Required Coursework:

• Management of Residential Issues • Risk Management • Financial Management • Fair Housing

In a tough job market, increased levels of expertise can help you stand out and stay on top. Continuing education can allow you to add new skills, gain and remain licensed or certified, increase your knowledge and ability-- making you more desirable to potential employers or just your current one. If you are new to the industry and looking to advance or just need a refresher course, the Apartment Association has classes to suit your needs.

4.

Certified Apartment Maintenance Technician (CAMT):Maintenance expenses are the single largest controllable element in any operating budget. This course is designed as an introduction for new maintenance professionals or as a refresher for the veteran employee, to give these professionals the knowledge and tools necessary to run an effective maintenance program.

Listed below are the designated programs offered by AASC in 2013. Each designation requires a series of intense classes, either in person or on-line, that cover the fundamentals as well as the new trends and regulations.

CAMT Training includes seven courses: The three non-technical courses consist of online learning followed by online practice scenarios; the five technical courses consist of hands-on classroom training followed by online practice scenarios.

1. Certified Apartment Manager (CAM): The on-site manager is a vital link between apartment residents and the community owners and investors.

Non-Technical Courses:

The CAM course includes:

• Management of Residential Issues • Legal Responsibilities • Human Resource Management • Fair Housing • Marketing • Property Maintenance for Managers • Risk Management • Financial Management • Research, Analysis & Evaluation

• Inside the Apartment Business • People, Projects and Profits • The Future of Air Conditioning

Technical Courses:

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• Electrical Maintenance and Repair • Plumbing Maintenance and Repair • Heating, Ventilation and Air Conditioning (HVAC) Maintenance and Repair • Appliance Maintenance and Repair • Interior and Exterior Maintenance and Repair Winter Edition | 2013

The Christmas Luncheon

It was beautiful day at the Cheyenne Mountain Resort and perfect for AASC’s Annual Christmas Luncheon. Robert Carr, Weidner Apartment Homes, the Apartment Association’s 2012-2013 President said the blessing for the meal and announced the Summit Ensemble Singers, who sang lovely Christmas carols as everyone enjoyed their meal.

Amanda Hofmann, Sandy Thrash, Kris Goraczkowski, Rick Cordova, Matt Pacheco, and Santa Clause gave out numerous door prizes periodically throughout the luncheon. Door prizes ranged from $50 in cash, a Coach purse, a ride with Santa, $200 gift certificate for Southwest Airlines, music boxes, a gift certificate to P.F. Chang’s and many other incredible gifts.

The Ethel Horton Award, an award that symbolizes the heart of a volunteer and great dedication, was presented by the 2011 award winner, Kevin Miesse. Congratulations to Sandy Trash, 2012 Ethel Horton Award winner!

In June the board nominated individuals to participate in the 1st Leadership Lyceum Program, a program to train future leaders for the Association. It gives the participants an extensive look into the Association’s history, purpose and governance and teaches the importance of AASC’s legislative activities and how other non profits assist the community. We are very pleased to recognize the program’s first

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Friday, December 7, 2012 at The Cheyenne Mountain Resort graduates: Cycely McMillan, Diane Diaz-Guerrero, Hannah Delagardelle, Jack Foster, Jill Gaebler, Joslin Hobart, Kris Goraszkowski, Matt Pacheco, and Trivonda Smith.

The time to draw for the $500 raffle finally came. Congratulations to Rebecca Knight-Sliva, this year’s raffle winner! As the event came to a close, Santa Clause was revealed as Gary Dorobiala with Aspen Leaf Landscape Maintenance Inc. A special thank you to Amanda Hofmann and Sandy Thrash, Chair & Co-chair, and the entire Fun-Raising Committee, Kelly Cain, Kris Goraczkowski, and Amber Schultz. Thank you for putting on such an incredible event!

Sponsored by

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WYER A L E H ASK T WHAT LANDLORDS NEED TO KNOW ABOUT THE LEGALIZATION OF MARIJUANA (AMEND. 64)

By Mark N. Tschetter, Tschetter Hamrick Sulzer P.C.

The election results are final. Colorado along with Washington State became the first two states to legalize the recreational use of marijuana. Although, while Amendment 64 has been widely publicized and will have some impact on the rental industry, the legal impact of Amendment 64 on landlord rights is minimal. However, landlords should review rental criteria, lease documents, and marijuana policies to ensure policies are clear. Landlords should also educate and train employees about the company marijuana policy to ensure effective implementation of those policies.

Amendment 64 does not go into effect until the election results are certified by the Governor, which could be at any time. Amendment 64 has two major components. First, the legalization of the recreational use of marijuana. Second, the creation of a regulated marijuana industry in Colorado. Amendment 64 regulates marijuana like alcohol. For example, similar to alcohol, a person has to be over 21 to purchase marijuana, and driving under the influence of marijuana is illegal. Because the regulation of a marijuana industry has little effect on residential landlords in the short run, residential landlords are primarily affected by the use and possession component of Amendment 64.

Amendment 64 also legalizes the growing of no more than six marijuana plants with three or fewer being mature. Persons who grow their own marijuana are also legally entitled to possess the marijuana produced by the plants on the premises where the plants where grown. However, all marijuana growing must take place in an enclosed, locked space, and cannot be conducted publicly. Individuals who grow their own marijuana may not make any grown marijuana available for public sale.

Given Amendment 64, can a landlord still prohibit tenants from using marijuana on leased property? Yes. Regardless of Colorado law (Amendment 64), marijuana is still illegal under federal law.

Specifically, marijuana is a banned Class I controlled substance under the Controlled Substances Act (CSA). Federal law supersedes Colorado law. The United States Department of Justice (DOJ), headed by the U.S. Attorney General, enforces federal criminal laws. U.S. Attorney General Eric Holder said back in 2009 that federal officials were committed to enforcing the CSA. The U.S. Attorney for Colorado has prosecuted Coloradans for growing, selling, and possessing marijuana, even if they claimed protection under the state’s medical marijuana laws.

However, what the federal government says, and what it does, are two different things. Specifically, even though the federal government says the CSA will be enforced, the federal government has only prosecuted the most blatant marijuana offenders, and only those individuals growing or selling significant quantities of marijuana. The federal government has never enforced federal forfeiture laws against an apartment community because a tenant was smoking pot. It is not clear whether the Feds lack of enforcement is by choice. However, the reality is that the Feds simply lack the rewww.AASCHQ.org

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sources to enforce the CSA on a significant scale against individual tenants smoking pot. Thus, the probability of a landlord being prosecuted by the Feds for tenant pot use is slim to none. Amendment 64 specifically repeals the right of Colorado to confiscate a landlord’s property through drug forfeiture laws.

Similar to federal law, Amendment 64 recognizes the right of a landlord to restrict marijuana use on leased property. Amendment 64 specifically states that nothing shall prohibit any person who owns or controls a property from prohibiting or otherwise regulating the possession, consumption, use, or growing of marijuana on that property. Thus, a tenant’s right to legally possess, use, and grow marijuana under Amendment 64 doesn’t grant the tenant the right to possess, use, or grow marijuana on your property if you decide to prohibit it.

Additionally, Amendment 64 doesn’t give a landlord’s employees or management company’s employees the right to use marijuana if the employer decides to prohibit or restrict such use. Amendment 64 specifically states that nothing in the law is intended to require an employer to permit or accommodate the use of marijuana in the workplace or to affect the ability of employers to have policies restricting the use of marijuana by employees. Accordingly, landlords may still require drug testing as a condition of employment.

Most landlords who currently prohibit the use of marijuana will not need to change any lease documents. Landlords primarily prohibit the use of marijuana through Crime and Drug Free Lease Addendums. These addendums typically define crime or drug related crime by referring to state or federal law. For example, drug related criminal activity means the manufacture, sale, distribution, use or possession of a controlled substance, as defined by law. If your crime and drug free addendum refers to federal law, you do not need to make any changes. If your crime and drug free addendum refers to Colorado law, your addendum will need to be modified to refer to federal law. Because after the passage of Amendment 64, some forms of marijuana use and possession are no longer criminal acts under Colorado law.

Under Colorado law, a landlord has the right to terminate a tenant’s right to possession for non-monetary lease violations if the right to terminate is set forth in the lease. Despite the law, some judges are reluctant to kick a tenant out of their home for some non-monetary lease violations if the tenant has not been given an opportunity to cure. For example, many leases contain the right to terminate for unauthorized pets with no opportunity to cure. Over time, courts have become more and more reluctant to enforce pet violation termination clauses without giving the tenant an opportunity to get rid of the non-complying pet. Currently, marijuana use is a termination issue; meaning upon violation the tenant is not given an opportunity to cure. Given the conflict between federal and Colorado law, and if marijuana becomes more widely used and accepted in Colorado society because of Amendment 64, use

Colorado law landlords also have the right to prohibit the use of marijuana on leased property, and that the landlord has elected to prohibit marijuana use on the property, and that violation will result in eviction. By addressing the marijuana issue up front, applicants and tenants will be clear on your policies resulting in fewer tenant confrontations down the road.

of marijuana, even on a prohibited property, could become a compliance issue rather than a termination issue. We will keep our clients fully advised if we start to see a trend in the verdicts from marijuana related cases.

As a practical matter, marijuana termination cases will become more difficult to prove. Currently, a strong marijuana termination case consists of a violation, and a police report or an arrest. Police officers carry significant clout in court to the point many tenants just move or don’t show up. Because use is now legal, police won’t be making any arrests, issuing any reports, or showing up to testify in the vast majority of cases. In most cases, the legalization of marijuana has also eliminated the leverage of landlords against tenants who were growing pot. Before Amendment 64, if a resident was growing pot, a manager could often get rid of a pot-growing tenant by simply threatening to call the police. “We can do this the easy way, or the hard way. You can either move out, or I’m going to call the police and tell them you have been growing pot”.

Amendment 64 did not change Colorado’s medical marijuana laws. However, because recreational use is now legal, Amendment 64 will expand the universe of persons who will openly admit to using marijuana, and thus is likely to increase the number of tenants who claim to be using marijuana for disability related needs. Accordingly, you should anticipate a significant increase of marijuana related reasonable accommodation requests. Similar to medical marijuana related disability reasonable accommodation requests, your onsite teams should be informed about company policy, and properly trained on how to handle such requests.

Landlords can adopt three policies regarding medical marijuana, and thus three policies regarding the recreational use of marijuana. One, prohibit the use of marijuana, even if the tenant makes a request for reasonable accommodations under fair housing laws, based on marijuana being a felony under the CSA. Two, deny recreational use of marijuana, based on the CSA, but engage in an ongoing dialogue and evaluation if anyone makes a disability request to use marijuana as a reasonable accommodation under fair housing laws. Three, allow the use of marijuana but prohibit marijuana growing.

If you allow marijuana use, your lease documents should clearly state that use does not including growing marijuana. Allowing tenants to grow marijuana can result in significant problems including mold. If you are going to allow marijuana use, your lease documents should also make it clear that a tenant’s marijuana use will not be allowed to disturb other residents. For example, tenant’s marijuana use shall not disturb the rights, comforts, and quiet enjoyment of other tenants.

Landlords should adopt both a medical marijuana policy and a recreational marijuana policy. For example, you could prohibit the use of recreational marijuana (Policy 1), but allow the use of medical marijuana as a reasonable accommodation (Policy 2). A landlord’s medical marijuana and recreational marijuana policies don’t necessarily need to match, but matching policies will cause less confusion with managers and onsite teams. If your property or tenants receive federal subsidies and are subject to federal regulations banning the use of marijuana, you should adopt a prohibition policy to avoid being in violation of federal regulations and potentially losing subsidies. For a complete discussion of medical marijuana policies, see the February 2010 and May 2011 issues of Landlord News, available to clients at our website (thslawfirm. com).

While the establishment and the regulation of a marijuana industry has little legal effect on Colorado landlords in the short run, the practical effect over time may be more significant. While there are no precise statistics, studies show that twelve to fourteen percent of the population regularly uses marijuana. Nearly, fifty-five percent of Coloradoans voted to legalize marijuana, including the establishment of marijuana retail stores. Whether marijuana retail stores become a reality remains uncertain given the conflict between federal and Colorado law. However, if marijuana retail stores become a reality in 2014, marijuana use may or could become widely accepted in Colorado society. Thus, similar to smokers (20% of the population), marijuana users could constitute a significant percentage of the rental population. Thus, Amendment 64 may result in landlords having to decide whether they want to forego renting to a significant percentage of potential tenants.

You should consider publishing the community’s marijuana policies to prospective tenants as part of your rental criteria if the community does not allow marijuana use. Your policy could state that under Colorado law, some marijuana use is legal, however, under |25|

Winter Edition | 2013

Connect With NAA Catch the Wave of Innovation With Sir Richard Branson at the 2013 NAA Education Conference & Exposition

By Alexandra Jackiw, CAPS, CPM, McKinley, Inc. 2013 National Apartment Association Chairman of the Board

S

2013 Green Conference Latest in World-Class Events Offered by NAA

ir Richard Branson, business icon and leader in innovation and customer service will be the keynote speaker at the Opening General Session of the 2013 NAA Education Conference & Exposition in San Diego, June 19-22.

Branson, international business magnate and founder of the Virgin Group—one of the world’s most recognized and respected brands—is well known for his entrepreneurial spirit, unrivaled netw ork and transformational leadership style. Expect to hear insights into how he’s identified new markets, engaged stakeholders and how he’s challenged legacy players to win market share.

The benefits of attendance don’t end there—awaiting you in San Diego are practical, take-home tactics from general and breakout sessions, as well as the opportunity to explore cutting-edge products and services from m ultifamily supplier partners during the trade show.

Don’t delay—registration for the 2013 NAA Education Conference & Exposition is open and the largest discounts go to those who register early. Visit http://educonf.naahq.org/emailregister by Feb. 1 and save up to $400.

Don’t miss the chance to register today for the 2013 NAA Green Conference, April 15-17, in Baltimore.

Join forward-thinking industry colleagues and learn ways to improve your community’s energy efficiency and bottom-line performance through a cutting-edge lineup of education topics and panel presentations at the NAA Green Conference.

Come learn from acclaimed green-industry expert Andrew Winston, a best-selling author of “Green to Gold” and “Green Recovery,” who will serve as the event’s keynote speaker. Find out how your business can profit from environmental thinki ng as Winston guides you about what works—and what doesn’t—when companies go green.

Save $200 off the onsite registration rate before Feb. 15 by registering at http://bit.ly/TSsgPZ.

Register Now for the 2013 NAA Capitol Conference

Learn What Makes Millennials Tick at the 2013 NAA Student Housing Conference & Exposition

Plan to better understand what makes Millennials tick Feb. 25-27 as NAA convenes the 2013 Student Housing Conference & Exposition in Las Vegas at the ARIA Resort.

Millennials’ attitudes toward higher education evolve faster than their smartphone models, making it critical to understand the needs and expectations of future students now so as to be prepared to engage them when they arrive on campus.

Michael Wood, Senior Vice President at TRU, one of the world’s leading research firms specializing in teens and 20-somethings, will headline the keynote session “Youth Truths: The Millennial State of Mind.” Wood's presentation is but one of many learning opportunities during two days full of education and networking, from general and breakout sessions to receptions and time spent interacting with exhibitors on the trade show floor.

Visit www.naahq.org/shc for registration, schedule, housing and the latest announcements. And remember to use the official hashtag #NAAStudentConf to engage, discuss and follow the conference.

www.AASCHQ.org

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Michael E. Dunn, a popular speaker on grassroots advocacy and political action committees, will give the kickoff keynote address at the 2013 NAA Capitol Conference (March 10 – 13) at the Omni Shoreham in Washington, D.C. Dunn’s topic, “Taking Political Involvement to the Next Level,” will set the stage for concentrated advocacy educational sessions, an industry issues briefing, networking and other events leading up to NAA’s Lobby Day on Capitol Hill.

Today the apartment industry’s involvement in the political process is not a choice—it’s a matter of survival. Join your peers at the Capitol Conference and make your voice heard. Check NAA’s website at www.naahq.org/events/CapConf to view the schedule and register.

NAA/NMHC Apartment Industry PR Campaign Forthcoming

Be on the lookout for NAA and NMHC’s launch of a major public relations campaign this winter targeting policymakers at all levels of government. Backed by facts and strong messages, the public relations campaign will emphasize the role of apartments in creating thriving communities and meeting Americans’ changing housing preferences.

The campaign will focus on the broad vision of what apartments achieve in helping residents live their American dream, making the case that apartments offer freedom, choice, flexibility and a diverse set of options to help people find the right housing to meet their specific needs.

Stay tuned for more about this exciting new campaign.

Questions: Contact NAA’s Carole Roper at carole@naahq.org.

Get Simple Efficiency Upgrades that Improve Comfort and Profitability

and before that were 5 gallons per flush! These older models often don’t work as well, and new designs empty and clean the bowl efficiently. You can save significantly by changing toilets, which are usually 25% of water use inside the home. Colorado Springs Utilities has rebates to help offset the costs of replacing toilets, so check with us when you’re planning a project. We also can help you recycle the old porcelain, which reduces your project costs, diverts waste from the landfill, and reuses porcelain as crushed gravel in road base. You can recycle one toilet as replaced or all of them from bigger projects. Contact CSU for details.

By Frank Kinder, Colorado Springs Utilities As we move into 2013, many of you may be planning renovations, or simply turning units as tenants leave. When doing so, be sure to consider using the most efficient technologies available, many of which may have rebates available from Colorado Springs Utilities. You can often get more efficient, better working products for the same or lower cost than standard products, and the savings can quickly add up. Whether doing one unit or the entire complex, efficiency upgrades that conserve water and energy usually perform much better than older technology, reduce operating costs, and improve building aesthetics. It’s a great deal; better looks, better performance, and lower costs. Here are a few ways to reduce utility costs for your tenants, which may reduce turnover and complaints, and make your facility more competitive. If you’re already planning changes, be sure to pick efficient products. Here’s how: In the bathroom, look for WaterSense approved products to reduce water, energy, and waste water costs. Toilets with a WaterSense label will use 1.28 or less Gallons per Flush (GPF), and are guaranteed to work. Savings will depend upon toilet water consumption, which depends upon age and condition. Toilets from 1994 forward use 1.6 GPF, those from 1980-1994 use 3.5,

Next, choose a WaterSense approved showerhead, which will be 2.0 Gallons Per Minute (GPM) or less. Many 1.5 GPM models work very well, and compared to standard 2.5 GPM models, save up to $130 in total utilities per year. That really adds up! Plus, WaterSense models have been tested and work well, so tenants will be happy with the result. And, using less hot water means less energy and water, compounding your savings. Finally, a WaterSense faucet will use 20% less water than standard models, helping you save in the sink as well. Don’t want to do the faucet?

Install an aerator and still save. While there are no rebates for these items, they are usually low .

The Apartment Association of Southern Colorado

The Bi-Annual

Installation & Peak Awards Banquet

You can now get affordable, coordinated WaterSense sets from most distributors, allowing you to upgrade your facility as an amenity with good looks, performance, and built in savings. In 2012, many large and small complexes in Colorado Springs have upgraded their toilets and showerheads, and tenants have been overjoyed with the results, which makes happy owners and managers. When changing appliances, EnergyStar models use vastly less energy and water, and often cost the same or only slightly more.

Thursday, June 6, 2013

Nominate outstanding professionals for the 2013 Peak Awards.

Now - May 2013. Go to www.aaschq.org and click on Peak Awards Nomination Packet.

Other rebates are available as well; windows, indoor and outdoor lighting, air conditioners, irrigation, and occupancy sensors all can make a big impact on utility usage while updating your complex. As rates rise, investments like these pay off in multiple ways. Colorado Springs Utilities is happy to help you with rebates. We will often perform a site visit and walk through to ensure your project makes sense and complies with rebate applications. When considering a project, check with us to ensure funds are available, and we can often assist with other, non-rebateable improvements that help your business run even better. Don’t miss a chance to reduce your costs and improve performance through efficiency and conservation with WaterSense, EnergyStar, and Colorado Springs Utilities.

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Winter Edition | 2013

Quarterly Updates and Estimates Volume 11 Number 2 October 2012

In 11 of the last 13 months, home sales were ahead of the year earlier figure. At the current pace, units sold could be 8-9 percent higher than in 2011.

By College of Business, UCCS

Analysis of the El Paso County Detached, single family permit activity picked up beginning in March 2011. Seasonal variations aside, strength continued through the last twelve months. Permit activity was higher in each of the last 12 months compared to the previous year. New permits for Jan-Sep 2012 are 614 ahead (58%) of Jan-Sep 2011. Through September, new permits are running about 20 percent ahead of all single family, detached permits in 2011.

Using an Autoregressive Integrated Moving Average (ARIMA) model in the Census X12 program, the Forum generated a six month forecast for detached, single family building permits in El Paso County. The model’s forecast calls for 340 more permits in 2012. This is about 5 percent higher than the Forum had projected earlier in 2012. If the forecast holds, a total of 2,011 permits will be pulled in 2012.

Townhome permit volume was extremely low in 2011. The spike in January 2012 was unexpected. It represented approximately 25 percent of all permits issued in the previous twelve months. While welcome, this accelerated pace was not sustainable. Despite the spike in January, year to date permit activity for townhomes is lagging 2011 by 7 units (5%). Significant changes are not expected in the coming months.

Despite the low number of townhome permits, combined detached and attached single family permit activity is 607 units ahead of 2011. Eleven of the past twelve months have been higher than their year ago levels.

Since March of 2011, active listings of homes have been significantly lower than the year ago month. As of September 2012, there were 424, or 10 percent, fewer homes listed for sale than there were in September 2011. This is part of a consistent trend for over a year. The decrease in supply of homes for sale coupled with an increase in sales of homes suggests equilibrium is returning to the local housing market. As expected, this was accompanied by an increase in the price of homes sold.

The drop in sale price in November 2011proved to be an anomaly.

Prices have been trending up since early 2011. The average price of a home sold was $223,497 in September. This is $4,971 (2.3%) higher than a year ago. This is the highest average price for the month of September since September 2008.

Median sales prices of homes sold are behaving similarly to the average price. The median price in September was $194,000 $6,750 (3.5%) higher than September 2011.

A cumulative comparison of single family residential permits indicates total permits through September 2012 are 51 percent higher than through September 2011. This is well above the Forum’s earlier expectation that single family permits would be 25 percent higher in 2012 than in 2011. Total permits through September are 234 ahead (15%) of the full year 2011.

The ratio of homes sold to total single family homes in El Paso County reinforces housing trends. Spikes caused by home buyer tax credits can be seen in late 2009 and early 2010. The trend (dashed line) continues to suggests there is a stable-to-improving local housing market compared to a flat/declining market over the last few years.

Multi-family housing permits have increased significantly this year compared to last year. Much of this is attributed to:

Housing Price Equilibrium in the Region

1. The lack of multi-family construction over the last several years 2. Vacancies that declined to the 6 percent range 3. Rents that have risen because of an increase in demand 4. Investor interest in the Colorado Springs market

Through September, multi-family permits are 178 higher than the full year 2011.

MLS Activity The trend in home sales continues to improve. Through September, there were 524 (8.2%) more homes sold than the same period in 2011. While not on a record pace, this is a significant departure from the weak sales trends over the last five years. www.AASCHQ.org

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The relation between supply and demand for private residential housing in the region was out of balance because of a significant oversupply in late 2006. This persisted through the middle of 2009. The excess supply of housing contributed to declines in housing prices (blue line) through the end of 2008. Tax credits stimulated an increase in demand through the first half of 2010.

Since then, market forces appear to have driven supply/demand to equilibrium as of June 2012. The movement toward supply/ demand balance was noted in the last several issues of the QUE. Continued improvement in housing prices will depend on low mortgage rates, income and job growth.

Foreclosures Foreclosures continue to trend downward. As with other recent housing indicator trends, this suggests the local housing market

is improving. The return of Fort Carson troops from deployments in the middle east might contribute to additional improvements in 2012. The effects of the Waldo Canyon Fire are not known at this time.

New residential permits and foreclosures appear to be inversely related. After peaking in mid 2009, foreclosures have trended down. Single family permits bottomed out in 2009 before beginning to increase slowly. The spike in June 2012 is not believed to be part of a worsening trend among foreclosures at this time.

A continued downward trend in foreclosures should boost new residential permit activity.

Multi-family Market The market for multi-family housing continues to tighten. The Forum estimated the September 2012 vacancy rate at 5.8 percent and apartment rents at $785 ($6.25 or 0.8% higher than September 2011). Recent and planned multi-family permit activity will alleviate some of the pressure on this market. However, it is not expected to offset the increase of troops at Fort Carson who will be at the base rather then being deployed in the middle east. The market for multi-family housing is expected to remain tight through 2012.

The effects of displaced home owners in Mountain Shadows contributed to a low multi-family vacancy rate. This will be a temporary benefit, lasting until homes are rebuilt in the area.

A large unknown about multi-family housing in 2013 is the effect federal budget cuts will have on the number of active military stationed at the region’s bases. Some cuts that would affect the number of troops can be expected. The number involved is uncertain at this time. If cuts do occur, they may take place over several years.

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Winter Edition | 2013

Business Continuity Planning

A Business Continuity Plan (BCP) is a process of developing and documenting arrangements and procedures that enable a company to respond to an event that lasts for an unacceptable period of time and return the company to performing its critical business functions after a business interruption in the shortest possible timeframe. As a result of being proactive and developing and implementing a BCP, the property management company can transform itself from being immobilized when a catastrophe strikes to being able to respond to the business interruption event and continue its mission critical functions.

Edward D. Tracy, Senior Consultant Peliton Insurance, LLC

Day-to-day operations for Property Management Companies include usual functions such as advertising the income-producing property, selection and screening of potential tenants, collection of rent on a timely basis, maintenance, insurance, and regulatory compliance (local, state and Federal). In addition, property management companies should ensure the tenants’ readiness to respond to an emergency by creating a coordinated, timely, and effective plan to prevent the loss of life and minimize injury and property damage.

Once the BCP has been developed, it is extremely important to test or exercise the plan. A well-tested BCP enables companies to evaluate operational processes and to prepare for discontinuous events in a rational and deliberate manner. This creates value to the company as it minimizes the company’s downside risk and develops an overall sense of security for all concerned. It is also a positive from a marketing perspective to be able to demonstrate thoroughness and professionalism for the management company.

Events disrupt businesses all of the time, preventing them from serving their customers and clients. It may be a small event, such as a power outage; a medium event, such as an isolated fire or a hazardous material incident; or a large event, such as major flooding, full-scale fires, information technology failures, disgruntled employees, or regional events such as a snowstorm, pandemic, terrorism, hurricane, earthquake, or tornado.

Business Continuity Planning creates value by contributing to the company’s long-term viability and creates customer loyalty as business continuity planning has now become a condition of doing business. More companies are requesting the inclusion of a business continuity management program as part of executed contracts. They want to ensure that operations can continue in the event that one of their critical business partners experiences a business interruption.

Many businesses are lulled into a false sense of security, saying, "A disaster won't happen to me." However, the statistics are compelling and must not be ignored:

• 43% of U.S. companies never reopen after a disaster and 29% more close within 3 years.

• 93% of companies that suffer a significant disruption are out of business within 3 years.

• 20% of small to medium size businesses suffer a major disaster every 5 years.

As a result, what happens when the property management company experiences an emergency, crisis, disaster or business interruption event, whether anticipated or unanticipated?

What happens when the property management company’s business is shut down because of an incident at a neighboring business?

Most property management companies have a disaster recovery plan in place where their information technology data is backed up and stored off-site. However, without a customized business continuity management plan, the company may not be able to access and use their data, contact their employees, property owners, tenants or critical business partners (i.e., vendors), or relocate to another facility to continue to provide mission critical services. In addition, the company may be exposed to legal action, loss of reputation, and a decline in market value.

www.AASCHQ.org

Peliton, LLC, is a premier Colorado provider of outsourced consulting and administrative services in human resources, payroll, accounting, employee benefits, and business insurance.

For more information, please contact Andrew Gibbs at 303-771-1800 or agibbs@peliton.net.

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