Spring 2022 Window Magazine by Austin Apartment Association

ON RENTAL HOUSING

SPRING 2022

THIS ISSUE:

State of the

INDUSTRY

REPORT 28

PG.

20 Match Game Quiz 27 Trailblazer of the Year 36 How to Speak Maintenance 38 Cybersecurity 101 T H E O F F I C I A L P U B L I C AT I O N O F T H E

Austin Apartment Association

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CONTENTS SPRING 2022 ISSUE

FEATURES 20 22 24 27 28 32 36 38 40 42

2021 Trailblazer of the Year Kelsey Mosher Greystar

Match Game Quiz Association 101 Recap ELEVATE Recap Trailblazer of the Year State of the Industry Report State of the Industry Recap How to Speak Maintenance Cybersecurity 101 Vegas Night Recap Field Day Recap

5 For the Love of AAA

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THE EDITOR Letter from

“THEY ARE ONE OF THE GOOD ONES”

e have all heard the phrase, “they are one of the good ones.” That phrase evokes a picture of someone who is standing out, catching the attention of those around them, and making a positive impression. Although the industry may have evolved and changed dramatically over the decades, what remains consistent over the years, is an industry that employs dedicated professionals who care tremendously about this profession. Our industry represents so many of “one of the good ones,” in that, our amazing professionals in multifamily dedicate themselves to their onsite teams and residents. Whether it is a property manager like the recent Trailblazer Award winner (featured in our Elevate recap) or a leasing office team investing in learning how to “speak maintenance” by brushing up skills on systems such as HVAC, or those who continue to invest time in the crucial policy work that is constantly running behind the scenes here at the Association. These actions, these individuals, are representative of what is good and dignified about this profession of multifamily. At the association, we are always seeking outstanding individuals to get plugged in. We need you, in 2022, to find a place to get involved. Whether you are a leasing professional, assistant manager, maintenance supervisor – we see you, and we want you to bring all the passion you have for this industry, into the

Emily Blair, CAE

Executive Vice President / Executive Editor

Association volunteer ranks. There are ample opportunities to lead and apply your skills and abilities to help continue to ensure the Association is innovating on behalf of the industry. Innovation is not easy. It takes persistence and putting value into innovating on a regular basis. It also takes courage to bring your voice forward. As featured in the Industry Update this issue, we continue to work with federal policymakers and regulators to innovate and improve federal policy. Of top priority, over multiple sessions of Congress, is the Housing Choice Voucher (HCV) (formerly known as Section 8). In early March, our members spoke with the Deputy Director of HUD, Adrianne Todman on this issue specifically. Bringing forward, stepping up to the microphone, and sharing the industry perspective and ideas of ways to improve the HCV program will ultimately impact affordability for thousands of families across the nation. Step forward, be a voice for the industry and those residents we serve. To all the good ones,

Emily Blair, CAE

2022 / SPRING /

2022 Executive

2022 B O A R D OF DIR E C T OR S Paige Russell, CAM, The Guild Kimberly Faulkner, Greystar

COMMITTEE

Kelly Blaskowsky, CPM, Capstone Real Estate Services Taryn Merrill, CAM, Greystar Gina Frazza-Stowers, RPM Living Kelsea Vernon, CAM, CAPS, RPM Living Stephanie Peterson, Bluebonnet Commercial Management Missy Sterns, CAPS, The Guild Michael Garcia, CAM, CAPS, RPM Living Ana Wright, Greystar Joshua Nichols, CAS, Contractors Inc Stephanie Naylor, CAS, Flooring Warehouse Danielle Archuleta, CAS, Fetch Package Toni Rackley, Flooring Warehouse

Katya Watson

Lyndsay Hanes

Meagan Johnston

CAM

CAM, CAPS, CPM

CAPS

The Guild

Metric Property Mgmt.

Avenue 5

President

President-Elect

VP at Large

Christy Sanchez Magic Make Readies VP at Large

Shay Mickler, CAM, CAS, The Liberty Group Haydee Scott, BG Multifamily Ryan Harmon, CAS, CAMP Construction Frank Menchaca, Greystar Chelsea Kneeland, CAS, J Turner Research Sandy Eckhardt Renee Zahn CPM, ARM, CAM, NALP, Greystar Theresa Ebner CAM, CAPS, CPM, LDG Development

Kris Burleson CAS

Cecil Domel CAM, CAPS

Stephani Park

Gus Villegas, Infinite Capital Construction

InterSolutions Staffing

Belco Equities, Inc.

Avenue 5

CAPS

Bill Warren, Warren Kalyan Law Firm

Vice President (PSC)

Secretary/Treasurer

Immediate Past President

Terri Needham, CAS, PS Landscapes

A A A PAST PRE SIDENTS John Harrison* (64) Frank Montgomery* (65) Jim Eichelberger* (66) Andy Wagner* (67) Ray Littlefield* (68) George Nalle* (69) Don Jackson (70) Gene McGregor* (71) Ed Hamel (72) Barry Gillingwater* (73) James Raper (74) Rich Ellmer (75) Jim Solt* (76)

Steve Colella (77) Ted Hendricks* (78) Hank Guerrero* (79) Don Tait (80) Ray Head (81) Ed Norton (82) Bob Benson (83) Jimmy C. Elliott* (84) Joe Sharp (85) Dick Obenhaus (86) Susan Melton (87) Carl E. Beck (88) Kim M. McGregor (89)

/ W I N D O W O N R E N TA L H O U S I N G

Beth Holt (90)

Carol Martine, CPM (02-03)

Colleen Grahn (13-14)

David Stapleton, CPM (91)

Joy Lamb, CPM (03- 04)

Sheri Gallo (92)

John Raper (04-05)

Robbie Robinson, CAM, CAPS, ARM (14-15)

Gina Roberts (93)

Debi Wehmeier, CPM (05-06)

Gus Villegas (15-16)

Carol Martine, CPM (94)

Renee Clark, CAM, CAPS (06-07)

Theresa Ebner (16-17)

Keith Warner (95)

Sherry Perrin (07-08)

Dwayne Stewart (17-18)

Michael R. Hill, CPM* (96)

Jana Ellis (08-09)

Vicki L. Sharp, NALP, CAPS (97)

Kara Garst, CAPS (09-10)

Renee Zahn, CAM, NALP, ARM, CPM (18-19)

Kim M. McGregor (98)

Sarah Thompson, CAM, CAPS

Anna Kelley* (99)

(10-11)

Bill Roland, CPM, CCIM (00-01)

Brooke Mahoney-Livesay CAPS (11-12)

Tami Martin, NALP, CAMT, CAM, CAPS (01-02)

Sandy Eckhardt (12-13)

Sandy Eckhardt (19-20) Stephani Park (20 – 21) *indicates deceased

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Calendar of EVENTS

APRIL

DATE EVENT

How NOT to Celebrate Fair Housing Month

Food for Thought: Google Business Profile: Unreal Exposure, Real Results

PLACE

Virtual

AAA

TIME

1:00pm - 2:00pm

12:00 pm – 1:00pm

REDBOOK Seminar

Norris Conference Center 8:00am - 5:00pm

Fair Housing for Maintenance

AAA

8:30 - 11:30am

Maintenance Huddle

South Austin Beer Garden 4:00pm - 6:00pm

19 – 20 CPO Certification Course

Virtual

8:00am - 5:00pm

Investing in Employee Morale Pays Off

Virtual

1:00pm - 2:00pm

AAA

For the Love of AAA

Food for Thought: Towing Enforcement - “Uh oh, But My Last Company Did It” AAA

Advance Leasing Issues: Rental Criteria, Applications, Synthetic Fraud and Criminal Guidance AAA

9:00am - 12:00pm

Selling to an Audience of One

1:00pm – 2:00 pm

Using Improv to Improve Sales AAA

24, 26 REDBOOK Seminar

AAA

9:00am - 4:00pm

Become the Primary Person – Closing on 1st Contact

Virtual

1:00pm - 2:00pm

Fair Housing

Virtual

9:00am - 12:00 pm

Mastering Maintenance: How to Get Maintenance Done When You are Short-Staffed Virtual

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Virtual

10:00am – 12:00 pm 9:00 am - 1:00pm

JUNE DATE EVENT

PLACE

TIME

AAA

9:00am - 4:30pm 1:00pm – 2:00pm

Using Alchemy of Awesome Turning Your Teams to Gold

Virtual

Summer Golf at Top Golf

Top Golf Austin

12:30pm - 4:30pm

Excel 101

AAA

8:30am – 12:00pm

Excel 102

AAA

1:00pm – 4:30pm

Food for Thought: Property Maintenance

AAA

12:00 pm - 1:00 pm

Copy That: Emails that Tell Your Story and Drive Prospect Action

Virtual

TIME

EPA Universal 608+ Class/Exam

Virtual

9 am – 12 pm

MAY PLACE

12:00 pm - 1:00 pm

16 -20 AAA Advocate

6 – 10 CAMT Course

DATE EVENT

The County Line 5:30pm - 9:00pm

1:00 pm - 2:00 pm

1:00pm - 2:00pm

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President’s

PERSPECTIVE Katya Watson, CAM CREA Management 2022 AAA President

PROMOTING GROWTH THROUGH INNOVATIVE STRATEGIC PRIORITIES

Successful organizations embrace and reinforce growth and change.

id you know the Austin Apartment Association was established in 1964? At that time, the City of Austin had less than 40K units compared to a total of approximately 294K units today. This is amazing growth in the Austin multifamily housing market led to much innovation with a variety of rental housing options that ultimately transformed the City’s skyline. The following year after the Austin Apartment Association was formed, the first modern-day high-rise, a 15-story building, was introduced in 1965, Cambridge Tower. Though we may not give this much thought today, the innovations of its time were significant. Cambridge Tower offered unrivaled amenities that included concierge service, restaurants on the first floor, and valet parking, all of which likely made it the highest-end apartment community in the city at that time. Fast forward to 2008 when Austin experienced its first notable skyline change from a multifamily developer when The Monarch opened; and of course, since then, product types and resident amenities continued to be enhanced through innovation. Innovation, by definition refers, in the ability to modify, improve, or create a product with an aim to serve, sustain or improve the operations of a product or service. Successful organizations are ones that embrace and reinforce growth and change. Through the years, I’ve seen the Austin Apartment Association assist our industry keeping us informed of changes and potential threats as well as advocating for us in the ever-changing political landscape, however, its core organizational structure has remained the same. In fact, we’ve seen a 63% increase in units in the last decade but our membership decreased by 3%. It was time for a change, a rebirth, within the association. In 2019, the Austin Apartment Association had a

change in leadership with EVP Emily Blair leading the charge to form a working group made up of association members to help identify the organizations strategic priorities: • Enrich the Member Experience • Expand the Membership • Increase Community Impact • Develop the Brand • Ensure Financial Sustainability These strategic priorities provided the innovative foundation to promote future growth by allowing for a more inclusive, collaborative, welcoming, forward thinking and influential Association. In 2021, the association continued to work on the growth model after losing a year of progress in 2020 due COVID. The work still continues in 2022 with a restructure of the counsels and committees where it was strategically modeled to provide the opportunity for everyone to have a voice in an area of passion. From education to legislation, from tech and innovation to budget and finance, from membership to marketing… there really is something for everyone. If you’d like to learn more about the process or how to get involved, please feel free to reach out to me, our exceptional association staff or anyone the board of directors and we will help you with the process. I look forward to seeing you at the next association event or committee meeting. Sincerely,

Katya Watson, CAM

2022 / SPRING /

March 2022

Market Line - AUSTIN AUSTIN OVERVIEW Occupancy: Price: Rental Rate: Size:

92.2% 1,585 $/mo 1.81 $/sf/mo 875 sf

Past 12 Months: 25.1% Rental Rate growth 21,179 units absorbed Operating Supply: 1,127 communities 268,250 units Recently Opened (12 mo): 52 communities 14,610 units Under Construction: 40 communities 10,867 units Proposed Construction: 129 communities 42,197 units

The box on the left displays a snapshot of the current market conditions.

History of Effective Price & Occupancy 93

1700

The graph on the right displays the overall occupancy and effective rental prices over the past 24 months. These statistics are derived from a continuous survey of all apartment communities. Effective rental prices are calculated net of concessions and utility adjustments.

1600

The table below lists the 5 hottest submarkets in the Greater Austin area. There are a total of 11 submarkets, and the ranking is based on the best combination of rental rate growth and absorption over the past 3 months.

1200

1500 89 1400

1300

M A M J J A S O N D J F M A M J J A S O N D J F 2020

2021

The table below distributes and analyzes concessions (specials) by classification. Concessions generally are represented by three types of specials: move-in, months free, or floorplan. ApartmentData.com captures the effect of these specials and prorates them over a lease term to arrive at a percentage reduction in market or street rents.

CONCESSIONS

Over The Past 3 Months

Rank Submarket

Annualized % of Mkt Growth % Absorbed UT/ Mueller 18.1% 2.0% Downtown/ SoCo/ Barton Springs 15.5% 1.7% Northeast 12.1% 1.7% Research Blvd/ North Lamar 15.0% 0.6% Pflugerville/ Tech Ridge/ Wells Branch 8.8% 0.9%

Class

1 2 3 4 5

ALL A B C D

Total Units w/ Concessions 31,324 17,185 8,649 4,133 1,357

% of Total Units 12% 21% 10% 7% 3%

Other Texas Markets Occupancy: Price: Rental Rate: Size:

91.5% 1,201 $/mo 1.35 $/sf/mo 889 sf

SAN ANTONIO Occupancy: Price: Rental Rate: Size:

93.0% 1,155 $/mo 1.35 $/sf/mo 857 sf

DALLAS/FT.WORTH Occupancy: Price: Rental Rate: Size:

93.2% 1,413 $/mo 1.61 $/sf/mo 879 sf

Past 12 Months: 14.7% Rental Rate growth 36,023 units absorbed

Past 12 Months: 17.1% Rental Rate growth 10,524 units absorbed

Past 12 Months: 20.1% Rental Rate growth 43,740 units absorbed

Operating Supply: 2,994 communities 708,551 units

Operating Supply: 975 communities 210,677 units

Operating Supply: 3,355 communities 806,168 units

/ W I N D O W O N R E N TA L H O U S I N G

‘22

Price ($/mo)

Occupancy %

HOTTEST SUBMARKETS

HOUSTON

Citywide Effect -0.6% -1.0% -0.4% -0.2% -0.1%

Average Special -4.2% -4.8% -3.6% -3.0% -2.7%

ApartmentData.com has been providing apartment data and marketing products since 1986. We provide real time access for property specific information, market surveys and historic submarket data for over 3.5 million apartment units in AZ, FL, GA, NC, TN, and TX. Cindi Reed Regional Vice President 512.969.1499

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HOUSING ISSUES RETURN TO CAPITOL HILL By Paul Cauduro, AAA Director of Government Relations

he National Apartment Association (NAA) is the leading voice for the apartment housing industry in Washington D.C., and is the respected source of information and industry perspective to members of Congress and regulatory agencies. The advocacy goals of the NAA, also shared by the Texas Apartment Association and the Austin Apartment Association, is to ensure that public policy does not impede but rather enhances the ability of apartment owners and operators to run their business and provide housing to all those seeking rental housing. A key element of the NAA’s advocacy goals is the annual Advocate conference held in Washington D.C. during

the month of March. At this event, apartment industry professionals from all over the country travel to the nation’s Capital to talk with members of Congress and educate them on key issues facing the industry. NAA’s last in-person Advocate Conference was on March 11, 2020, and the very next day the Capitol offices were closed to the public due to COVOD-19. This year, the NAA Advocate Conference returned to Capitol Hill for in-person meetings. Although some strict COVID protocols are still in place, they did not deter AAA members attending the conference. Traversing the Capitol with its security lines and public health protocols in place was difficult, but it is gratifying

Read about AAA’s current advocacy issues at www.austinaptassoc.com/news/advocacy-in-action

/ W I N D O W O N R E N TA L H O U S I N G

shutterstock

Industry UPDATE

to know that these conversations help shape housing policy in the U.S. Meetings with the Austin area congressional delegation included: Congressmen Michael McCaul (District 10), Judge John Carter (District 31), Chip Roy (District 21), Roger Williams (District 25), Lloyd Doggett (District 35) and Pete Sessions, (District 17). Meetings were also held at the offices of Senators John Cornyn and Ted Cruz. This year’s gathering in Washington D.C. came at a critical time for the apartment industry. The demand for apartment homes has led to the highest number of apartments under construction nationwide since 1974. The NAA represents 11 million apartments that are home to more 40 million people, and issues discussed were intended to re-enforce the spotlight now shining on the nation’s housing policies and the national interested in creating housing that is affordable. The key issues discussed included: • Improving the Section 8 Housing Choice Voucher (HCV) program to attract and better serve private sector rental housing providers. • The potential success of the HCV program is limited by its inefficiency, inconsistent administration and duplicative requirements, all of which discourage housing providers in the private market from accepting vouchers. Significant reforms are needed to maximize the benefit of this critical resource for those it is intended to serve. • Incentivizing local governments to lower barriers to development and increase the supply of rental housing. Apartment industry members were able to express support for the YIMBY Act (Yes In My Back Yard) which is legislation aimed to increase housing density by removing barriers to housing construction such as growing permit fees, multifamily zoning restrictions and

lengthy environmental and site plan reviews • Ending the CARES Act 30day notice-to-vacate requirement for federally-backed and federally-assisted rental properties. NAA maintains that Congress intended this notice requirement to be temporary as the CARES Act eviction moratorium was a “temporary moratorium on eviction filings”. Since 2020, NAA has worked towards a legislative solution, and the AAA meetings on Capitol Hill continued those efforts To see the NAA policy positions on a wide range of apartment issues visit NAA.org and navigate to list of policy issues under the Advocacy tab. The AAA is working to replicate the NAA Advocate Conference locally by holding meetings across the region with local, county and state selected officials. The meetings are slated for mid-May. Contact the AAA office or search the AAA website at www.austinaptassoc. com for more details.

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PAC Contributions Part of the Advocacy Efforts The Apartment Association maintins a political action committee known as Apartment PAC – Austin. It was established more than twenty years ago as a general-purpose political action committee (PAC) to have greater participation in the local and state political process. A general-purpose PAC is devoted to a point of view not a political party, and A-PAC’s point of view is that a free enterprise rental housing market works best when private property rights are honored and property owners and related housing service providers are able to operate without burdensome taxes, regulations and fees. Contributions made to Apartment PAC – Austin serve as an extension of our collective voice and are an integral component of our advocacy efforts. Contributions are used to support candidates seeking public office that understand both the issues facing the rental housing industry and the positive impacts our industry has on the

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Texas economy. PAC funds may also be used to support bond elections, ballot initiatives and similar efforts that can help improve housing opportunities and the overall the quality of life for Austin area renters. AAA members are encouraged to

make a PAC contribution and vote for the candidates and incumbents supported by the PAC. For more information the PAC and to maker a contributions navigate to the PAC section under the Advocacy tab at the AAA website at www.austinaptassoc.com

2022 / SPRING /

MEMBERS on the Move Ashley Wiggins, CAM

Brooke Wood

Trista McIntire, CAM

Trissa Rodriguez

Sarah Escobar, CAM

Tracy Slappey-Scott

Ashley Wiggins, CAM

Trissa Rodriguez

Earned her CAM designation! Ashley is currently the Assistant Community Manager at Trailhead Apartments, and she is looking to take the next step in her career. Not currently being a manager made it challenging to learn the information in the course since a lot of it was brand new to Ashley, but it really opened her eyes and made her excited to become a community manager one day, hopefully soon!!

Started a new position! Trissa recently transitioned to Tricon Residential as a Portfolio Manager. She previously worked as a Community Manager with Greystar but Tricon took all the properties in house as owner operators. Trissa says, “I feel so blessed to be a part of this growing company that allows for innovation and empowerment.”

Brooke Wood Moved companies! Brooke recently left Cushman Wakefield to join Avenue5 as a Property Manager! Brooke says that Avenue5 has been a great company to transition into and she is so thankful to be part of the team!

/ W I N D O W O N R E N TA L H O U S I N G

Steve Benigno, CAS

Steve Benigno, CAS Earned his CAS designation! Steve is an account manager at CAMP Construction. He passed his CAM exam at the AAA and received a hardearned credential!

Trista McIntire, CAM Earned her CAM designation! Trista McIntire has worked in the New Braunfels, San Marcos, and (most-recently) Austin markets for companies like Carter-Haston, Kettler

Management, Pegasus Residential, and Bonner Carrington. Trista is excited to add these credentials to her name and to continue to grow her career within the industry.

Sarah Escobar, CAM Earned her CAM designation! Sarah Escobar is a Community Assistant Manager with NRP Group. She is very excited to say that she has officially obtained her CAM Certification, and she is so very proud of this accomplishment!

Tracy Slappey-Scott Moved companies! Tracy joins Rainey Property Management as the Vice President of Property Operations. Tracy will oversee a team of two Regional Vice Presidents and seven Regional Managers while continuing to be a crucial part of the company’s continued growth.

New MEMBERS AAA welcomes these new members who joined the association between December 1, 2021-February 28, 2022. When deciding where to make your next purchase for your property, please consider an AAA supplier member.

N E W IN DUST RY M EM BER S: Mullally Development Company 0 Units Tarrytown Townhomes, LP 62 Units The Robinson Group 217 Units Basnett Properties 2 Units Campus Apartments 385 Units

Fortis Property Management 223 Units

Coffee Properties 6 Units

Steven Dellecese and Maria Vargas-Bastida 1 Unit

Hendricks Real Estate 81 Units

TBD Management LLC 50 Units

MC Residential of Texas 455 Units

Texas Disposal Systems Rental Division 16 Units

SRST Giddings LLC 0 Units

Texoplex LLC 30 Units

United Capitol, LLC 149 Units

Schooley Properties 4 Units

Urban SW Management LLC 112 Units

MMP Associates, LLC 48 Units RNR Capital LLC 2 Units

N E W SU PPL IER M EM BER S Austin Hi-Tech Restoration Wendy Richey PO Box 5217 Austin, TX 78753 512.326.2633 Wendy@austinhi-tech.com Employee Morale Programs, Employee Screening Culture Index Cary Frieden 7202 Running Rope Circle Austin, Texas 78731 512.619.8822 cary@cultureindex.com Plumbing Contractors, Construction-General

Lighthouse Technologies Sterling Weiss 2021 Fillmore Street Suite 132 San Francisco, CA 94115 509.609.9226 sterling@lighthouse.app Fire/Water Restoration OASIS Financial Holdings Nicholas Hinshaw 21750 Hardy Oak Boulevard Ste 102 San Antonio, TX 78258 512.627.4059 nick@oasis-advisers.com Advertising, Internet Listing Service

Doors To Dumpsters Valet Trash Nathaniel Velasco 15100 Harkness Pass Austin, TX 78725 361.633.7281 management@doorstodumpstersllc.com Flooring-Sales & Installation, Counter Tops

PaulDavis Restoration of North and South Austin Joseph Norman 2112 Rutland Drive Austin, TX 78758 512.516.2382 Joseph.Norman@pauldavis.com Financial Planning, Insurance

Keller Commercial & Home Services, Inc Daniel Wilson PO Box 1243 Georgetown, TX 78627 512.587.0899 Daniel@kellerservicestx.com Landscape Installation & Maintenance, Landscape- Irrigation

Pearson Legal, P.C. Michelle Cruff 425 Soledad Street Ste 600 San Antonio, TX 78205 210.730.6934 mcruff@pearsonlegalpc.com Contractors- Restoration & Remodeling, Fire/Water Restoration

Landscape Resources Inc. Nicole Phelps 3815 Woodbury Drive Austin, Texas 78704 512.394.1120 nicole@landscaperesources.us Landscape Installation & Maintenance, Landscaping-Designers

Precision Maintenance Services Darrell Roberts 506 Barbara Jean Drive Hewitt, TX 76643 254.366.1607 djroberts1006@gmail.com Trash Valet Pick Up, Trash Bulk Pick Up

3 Z Property Management 20 Units Keller Property Company 840 Units

Spot Be Gone Carpet Cleaning Roger Surita 9906 Gray Boulevard Suite D Austin, TX 78758 512.788.8763 spotbegone@spotbegone.com Attorneys, Insurance - Claim Adjusting Texas SW Floors Michael Hopkins 2301 McDaniel Drive Carrollton, TX 75006 214.497.1631 mike@texasswfloors.com Internet Listing Service Threshold Billy Wilkinson 3809 South 2nd Street Suite C300 Austin, TX 78704 512.359.5852 billyw@thresholdagency.com Flooring-Cleaning Trinity Direct Maintenance, LLC Ashley Autry 404 Vyvjala Rd Smithville, TX 78957 512.237.0510 Admin@TDirectMain.com Landscape Installation & Maintenance, Landscape- Irrigation Zillow Rentals Paige Gamboa 1301 Second Avenue, Flr 31 Seattle, WA 98101 206.757.4830 rentalsevents@zillowgroup.com Marketing Consultants & Service, Marketing- Promotional Specialties

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Wondering which committee suits you the best and where you could make the biggest impact? Take the quiz to find your perfect match! POINTS 2 4 7

When It Comes To Books, I Prefer Audible Kindle Physical Book

POINTS 8 3 5

2021 Was A . . . Great Year Dumpster Fire Time For Change

POINTS 1 3 8 POINTS 6 2 1 POINTS 5 1 6

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The Magazine I’m Most Likely To Buy At The Airport Time Rolling Stone People The Word That Most Closely Describes My Job, Is Sales Boss Person Financial Have You Ever Eaten Anything From Off The Floor? Yes No Maybe

POINTS 8 6 2

Social Media Most Commonly Used Facebook Instagram Twitter

POINTS 6 4 1

How Often Do You Meow Like A Cat? Daily Sometimes Never

POINTS 3 7 8

Most Favorite Kind Of Networking Coffee Lunch Happy Hour

POINTS 4 5 1

Pick A Happy Hour Drink Moscow Mule Margarita Old Fashioned

POINTS 7 5 3

Favorite Month of the Year (of the choices) November June February

POINTS 4 7 2

What Would You Fill A Bathtub With? Spaghetti Puppies Books

Add up the points of your answers on the right to learn which committee suits you the best! 1. 2. 3. 4.

Budget & Investments (11 - 16 points) Advocacy (17 - 25 points) Membership Development (26 - 34 points) Membership Growth (35 - 43 points)

5. 6. 7. 8.

Brand Creation (44 - 52 points) Brand Integration (53 - 61 points) Community service (62 - 70 points) Events & Services (70 - 76 points)

Scan the QR code to express interest in your committee and a staff committee liaison will contact you about upcoming meetings!

2022 / SPRING /

ASSOCIATION

101

If you could gain one skill, what would it be? Our Association 101 attendees proclaimed everything from riding a horse to being more handy! Thank you to our speakers Lyndsay Hanes (Metric Property Management) and Christy Sanchez (Magic Make Readies) for leading the February 23 program and going through all the ways our members can utilize their benefits to get the most out of their membership. Our panel of experts was comprised of Carrie Laso (Rasa Floors), Ashley Pruden (ApartmentData.com), and Toni Rackley (Flooring Warehouse) who offered their insights on events and classes that helped them make connections within the industry and how they have experienced success through AAA. Want to learn more about the Austin Apartment Association and how you can get involved? Visit our website and register for an event today!

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2022 / SPRING /

levate debuted as the newly formatted installation event. This was an evening of celebration as we were inspired by our multifamily leadership and empowered to kickstart the new year! Congrats to all of the board members, PSC members, Solt Scholars, Trailblazer of the Year, and our new President, Katya Watson of the Guild! T I TA N I U M S P O N S O R S :

P L AT I N U M S P O N S O R S :

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Solt Scholarship Recipients: CALP: Juan Delgado CAMT: Michael Snide CAM: Lauren Graff

Danielle Tedrowe CAPS: Jonathan Hoyle Daniel Armendariz Taryn Merrill

New PSC: • CHAIR: Kris Burleson, InterSolutions Staffing • CHAIR ELECT: Toni Rackley, Flooring Warehouse • VICE CHAIR: Shay Mickler, The Liberty Group • Ashley Pruden, Zumper • Carol Taylor, Centex Construction • Carrie Laso, Rasa Floors • Dedra Bouffard, The Liberty Group • Eric Leonard, We Do Trash • Haydee Scott, BG Multifamily • Joshua Nichols, Contractors Inc • Lauren Tuma, Sherwin Williams • Robyn Riley, Valor Fire Protection • Tasha Mora, A&A Wrecker & Recovery

President’s Award: • Terri Needham, PS Landscapes, Inc • Ryan Harmon, Camp Construction

New Board Members: • Danielle Archuleta, Fetch Package • Kelly Blaskowski, Capstone Real Estate Services • Gina Frazza-Stowers, RPM Living • Frank Menchaca, Greystar • Taryn Merril, Greystar • Stephanie Naylor, Flooring Warehouse • Joshua Nichols, Contractors Inc • Ana Wright, Greystar

New Executive Leadership: • PRESIDENT: Katya Watson, The Guild • PRESIDENT-ELECT: Lyndsay Hanes, Metric Property Management • VICE PRESIDENT: Kris Burleson, InterSolutions Staffing • SECRETARY/TREASURER: Cecil Domel, Belco Equities • VP AT LARGE: Christy Sanchez, Magic Make Readies • VP AT LARGE: Meagan Johnston, Avenue 5 Residential

2022 / SPRING /

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Call About our FREE Custom Measure Screen Inventory Program

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TRAILBLAZER OF THE YEAR 2021 Congrats to Kelsey Mosher of Greystar for winning the 2021 Trailblazer Award! This individual award was established in 2020 to recognize outstanding, up-and-coming professionals making a difference in our industry. Kelsey made a notable impact in her first year-plus in the industry – so much so that her property, West Koenig Flats, received Congressional recognition for its service to its residents and community during winter storm Uri in 2021. Continually striving for excellence in operations, but most importantly, customer experience – she has blazed a trail for herself and the team she serves by leading by example each and every day.

Kelsey, thank you for making a difference in our community and industry! We all can be inspired by you!

2022 / SPRING /

State-of-the-INDUSTRY Economic factors, corporate relocations drive demand for more rental housing As the rental housing industry enters 2022, Austin Apartment Association today issued a State-of-the-Industry Report, including insights into the local economy, local and national housing and multifamily market trends and forecasts, area construction and development activity, and the state of employment and hiring in the rental housing industry. Unprecedented market conditions across the nation, including Austin Nationally and locally, the residential real estate market has reported record-breaking figures, including increased demand for all types of housing units, dramatic increases in single family home pricing, as well as record occupancy rates in the multifamily and rental housing market. Nationally, rent growth has averaged 10 percent in 2021, but latest forecasts anticipate the market to normalize in 2022 and onward, according to Sam Tenenbaum, Director of Analytics & Central Texas Economist for CoStar. Bob Pinnegar, President and CEO of the National Apartment Association reports, “Nationally we saw apartment occupancy rates hit record highs at the end of 2021, reaching a national average of 97.5 percent. Such limited housing supply is uncharted territory for the industry and a manifestation of the housing affordability crisis that has been building in this country for decades. We have consistently not built enough housing to meet the demand.” The multifamily industry is experiencing the impact of two years of pent-up household formation as a result of the pandemic, Pinnegar noted, as graduates finally move out of their parents’ homes, roommates uncouple, and couples marry. Combined with a very active single-family resale market, there is even more demand for apartments. Pinnegar explains, “for example, large numbers of retiring baby boomers are selling their homes for retirement funds and are now moving into apartments.” Pinnegar cites rising inflation and supply chain issues as

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fuel for both the housing supply and affordability crisis, in addition to local governments restricting the industry’s ability to build lower-cost, more affordable properties, “putting us in a situation where we can only build Class A to repay investors who expect a return on their investment if they are to continue funding housing projects. Further, with some 50 percent of the entire multifamily housing supply built before 1989, there’s a lot of work and investment needed to reposition these aging assets.” According to Tenenbaum, over the past year, more than 700,000 apartment units were absorbed nationwide, far surpassing any year prior, which brought vacancies down by more than 2 percent last year. In Austin and across the nation, inflation, supply chain issues and labor shortages have had a staggering impact on the overall housing market, causing delays in construction. Tenenbaum explains, “Most of the inflation we’ve seen over the past year stems from goods-based inflation, which is a result of the strong consumer demand driven by the pandemic recovery. Services inflation remains shy of 4 percent year-over-year, because services are easier to scale up and down in response to inflation than are manufactured goods, such as cars and home appliances.” Further fueling the problem, rental property sales by independent rental owners affected by eviction moratoriums, increased 10 percent in 2020 and even more in 2021, with residency often shifting to owner-occupied rather than renter occupied. As a result, an estimated one million apartment homes in properties with under 25 units, or 2.4 percent of the overall rental housing supply, were lost from the nation’s rental housing stock. “As a community, we must never forget the unintended consequence of eviction moratoriums on our precious housing supply in Austin,” reminds Emily Blair, Austin Apartment

Association Executive Vice President. “In the future, we must remember rental aid programs that pay rent directly to rental housing providers whose residents need help, rather than programs that rely on renters to agree to apply for rental aid or that penalize housing providers for renters’ inability to pay, must be the short- and long-term solution.”

Austin leads the nation in economic and population growth According to the latest U.S. Census data, Austin metro led the nation with explosive population growth of 33 percent between 2010 and 2020, followed by Raleigh, NC with 25 percent and Orlando, FL with approximately 21 percent. This extraordinary growth was fueled in equal parts by in-state and out-of-state migration, both driven by the continued job growth in the metro area. Out-ofstate relocations from West and East Coast were additionally driven by lower cost of living, including lower taxes and relatively lower housing prices. According to Tenenbaum, Austin’s economic rebound has been among the fastest in the nation. The city has reached its pre-pandemic employment level in August 2021, and has since surpassed it by an additional 4 percent, matched only by Salt Lake City. The nation is yet to recover all jobs lost to the pandemic, even though the national Gross Domestic Product (GDP) has recovered to pre-pandemic levels and has since reached the expected growth rate had the pandemic never happened. “The job gains in Austin haven’t been uniform,” Tenenbaum clarifies. “The leisure and hospitality sector, which includes not only hotels but also bars and restaurants, remains approximately 7,000 jobs shy of its pre-pandemic level.” To date, Austin added the most jobs in the white collar professional and business services sector, as well as in the warehouse sector. The city has also led the nation in the fastest office-using jobs growth, with a more than 12 percent increase, followed by San Antonio and Memphis with approximately 8 percent.

Population and job growth, singlefamily housing shortage drive rental housing demand Local data mirrors national trends, as the demand for housing in Austin continues to outpace the supply. As the metro continues to

attract major corporate relocations, such as Samsung and Tesla, the rapid population and job growth continue to add to the housing demand throughout the metro, increasingly so in the outlying suburban areas and new job centers. According to Tenenbaum, while the U.S. is building more single-family housing since 2010, housing starts remain well below the early 2000s levels. At the same time, multifamily starts are higher than they have ever been, with just under 500,000 units started in 2021. Limited single-family construction has allowed single-family pricing to accelerate significantly over the past year across the country. Reflecting that trend, Austin experienced record levels of single-family home price growth in 2021. These significant increases mean that apartment renting has never been more affordable relative to buying a single-family home, translating into the highest demand for apartments Austin has ever seen. Austin saw the second most apartment demand of any major market in the nation as a percentage of its inventory, with nearly 21,000 net new renters in the Austin metro, according to CoStar. With increased absorption, the occupancy rate increased by 4.4 percent in Austin, second fastest in the nation after Orlando with 4.7 percent. This demand spike has resulted in an average rental rate increase of 20 percent in 2021, compared to 2020, when Austin experienced the largest rental rate decrease of the four Texas metropolitan areas since 2015. Outpacing Austin’s year-over-year rent growth were Orlando, Tampa, Las Vegas, Phoenix, Ft. Lauderdale, and Jacksonville, with rental growth between 21 and 24.6 percent. Analyzing Austin’s rental rate increases further, Tenenbaum notes that “while Northwest Austin, Southwest Austin, Pflugerville and Round Rock have seen their rents rise by more than 25 percent in 2021, Central Austin saw rents rise by only 7 percent year over year.” Tenenbaum further adds that “All these factors have brought unprecedented investment volume to the metro area. In 2021, we estimate that more than $8 billion worth of apartments were sold, doubling the pre-pandemic level of just over $4 billion. Austin’s strong fundamentals, job growth and population growth continue to attract investor interest from around the world to the Austin metro. Such investment would improve the housing stock, make the apartments better, and improve the Austin housing experience.” Forecasting into 2022 and 2023, Tenenbaum says rent growth will subside largely due to new construction. Austin now has the second-most multifamily construction of any major market in the nation behind Nashville, with more than 23,000 units underway, equivalent to 10 percent of the current

2022 / SPRING /

inventory. “Construction is occurring in every part of the Austin market,” Tenenbaum shared, adding that new construction will create a “pressure release valve.” Tenenbaum also adds that “according to CoStar’s data, based on 100,000 rent observations captured every day in Austin, the city’s rent growth has already been flattening since August of 2021. CoStar anticipates the market to stabilize, with 4.7 percent rent growth in Austin in 2022 – well below the 2021 numbers and significantly lower than the anticipated increases of 6.5 percent in San Diego and 6.3 percent in San Francisco.” While lower rent growth is projected in 2022, given the continued demand and significant increased operational costs, including insurance expenses, increasing taxes and government fees, and high construction costs, the multifamily industry will be challenged to revert to lower-than-average rent growth.

College housing & Singlefamily rental homes CollegeHouse reports 4 percent year-over-year rent growth rate in Austin for the college housing submarket. According to Charlie Matthews, CollegeHouse CEO, despite continued demand, there is no shortage of student housing in Austin. The more than 6,300 beds in the development pipeline will allow supply to track along with increased demand. As the costs of student tuition and apartment development continue to rise, affordability is a concern, especially as social distancing needs mean fewer residents per student dorm room or suite. Coming out of the pandemic, student housing remains one of the most resilient commercial real estate asset classes across the U.S. Specifically in Austin, off-campus housing occupancy is up 6-to-7 percent with pre-leasing velocity ahead roughly 8 percent from January 2021. “It appears students remain committed to being at school and in the classroom as opposed to virtually learning at home,” Matthews says. “Based on the CollegeHouse data set, 4- and 5-bedroom units are occupied at roughly 95% and the average pre-lease for these larger units as of January 2022 is roughly 45 percent and 53 percent, respectively, which shows students are choosing to live with roommates.” “Our business got thrust into the spotlight during the lockdown and it is here to stay,” says Mark Wolf, founder, and CEO of AHV Communities, discussing single-family rental homes. “People appreciate the combination of a single-family home, with more space, not-shared entrance but managed like an apartment community, with perks such as on-site maintenance. In Austin, with both East and West Coast relocations of people who are conditioned to higher cost of living, our housing looks like a bargain. Our biggest challenge is matching the demand, as materials and labor shortages prevent us from building as fast as we’d like.”

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Affordability concerns Even though both in Austin and across the country the industry is expecting far lower rent growth than in 2021, the overall shortage of housing supply will affect future housing affordability. “It is very hard to plan for this kind of growth, as it takes 2-to-3 years to deliver new apartment projects,” comments Tenenbaum. “Especially mid-pandemic, it was impossible to accurately project the demand and the significant vacancy depression we experienced.” Furthermore, a spectrum of public policies across the nation, such as rent control initiatives, eviction moratoria and development restrictions are affecting housing affordability, as apartment owners and operators are experiencing increased annual insurance premiums of 25 percent or more, increased property taxes, new government fees, labor costs and price impacts of supply chain shortages, and rising inflation. These cost impacts, combined with the inability to collect rent or charge rental rates that cover rising costs, are causing investors and developers in some markets to reduce or walk away from multifamily opportunities and investment in cities where housing is most needed. “The multifamily industry is standing ready to deliver more housing – desperately needed housing – with investors at the ready,” said Katya Watson, president of Multifamily at The Guild and 2022 President of the Austin Apartment Association’s Board of Directors. “But a greater partnership with municipalities, counties, and elected officials is needed to strike a realistic balance between the housing needs of the community and the financial realities of building more apartment homes in our city.”

Labor shortages affect operations The Austin apartment market has expanded, and occupancy rates have risen, fueled largely by Austin’s exponential growth as a city. This newfound opportunity to attract relocating renters has presented a challenge: management companies have had to decide how much staff is needed to service their residents efficiently, notes J. Turner Batdorf III, Senior Strategist for J. Turner Research. “The apartment industry is a vital part of Austin’s economy,” says Blair. “With more than 250,000 existing rental housing units, more than 23,000 units under construction, and thousands of additional proposed units, there is an ongoing demand for talented professionals to take care of residents. With comprehensive education and career development programs

The Residential Perimeter Security Specialists we provide, the industry offers well-paying job opportunities for people from all walks of life with varying levels of education.” “Our data shows that in compariSALES ★ REPAIR ★ INSTALLATION son to the rest of the Texas markets, • Automatic Gates • Wood Fencing Austin has done a good job of pay rel• Telephone Entry • Rails ative to responsibility, particularly at • Radio Controls • Refurbishing • Video Security • Powerwashing management levels of the on-site ex• Ornamental Iron • Replacement Remotes perience,” adds Batdorf. SAME DAY SERVICE AVAILABLE J Turner Research’s recent study, www.austinestategate.com The Internet Adventure III also anthony@austinestategate.com shows that for 55 percent residents, “staff cares about me” was most the most important factor in deciding to rent at a particular apartment community, followed by 31 percent of respondents stating online responded to the increased demand for remote work options, ratings and reviews were most important, and only 14 percent without affecting residents’ experience,” says Bruce Petersen, selecting “other residents are like me.” Additionally, the mafounder and owner of streetversity.com. “Some management jority of respondents identified “Interaction with Staff” prior companies even offer reduced work hours to allow for greater to leasing as having the strongest influence on their leasing work-life balance and increased flexibility, while maintaining decision. and in fact increasing compensation. As AI technology becomes “It’s clear that on-site employee morale has a direct impact more mainstream, we anticipate its adoption in our industry, creon ensuring our residents’ satisfaction,” says Watson. “The ating new career opportunities and shifting traditional roles. We pandemic and last year’s winter storm both highlighted that must continue our efforts to up-skill our workforce to continue our employees are our most important asset, making sure our to thrive in these rapidly changing times. Investing in our onsite residents have safe, well-mainprofessionals’ soft skills is also tained homes. a must, even as we move toward “Last year, our property mangreater dependence on technoloagers went above and beyond to gy. Of course, our industry will alhelp our residents when our comways depend on building genuine munities were damaged by the personal relationships and being winter storm power issues, orderthere for our residents when they ing warming buses and portable need us.” restrooms for their residents,” re“Defining affordability and calls Watson. “Nationally and loaffordability solutions ought to cally, while challenging, the paninvolve a bigger voice of rentdemic has brought about a faster al housing providers in the adoption of innovation and techcommunity,” comments Watnology, to better serve our resison. “One positive outcome of dents and create a better workthe pandemic has been the ining environment for our staffs, creased collaboration among from virtual tours, let-yourself-in many stakeholders who care technology, new scheduling tools about housing needs in our for in-person appointments, and community, as we’ve seen with more.” emergency rental assistance. Those who know how to build and operate rental housing have shared their knowledge with community leaders, govLooking forward According to CollegeHouse’s Matthews, the industry will focus ernment agencies and local charities. And these conversations must continue at an even higher frequency. It is vital more on implementing technology to gather data to enable “a that our federal, state and local elected officials utilize the better understanding of the housing market, including student rental housing providers’ knowledge and expertise to make housing, allowing us to better gauge market demand for specifinformed policy decisions that advance meaningful actions to ic unit types and sizes, which will help the long-term sustaincreate the much-needed attainable housing without negativeability of that market segment.” ly affecting anyone.” “Among trends we see, management companies have

512-296-2671

2022 / SPRING /

JANUARY 26, 2022

STATE OF THE Industry

AT&T CONFERENCE CENTER

The 2nd Annual State of the Industry event took place on January 26th at the AT&T Conference Center. The purpose of the event is to provide insights into the rental housing and multifamily market, including market trends, construction and development activity, economic impacts, and more as we look to 2022 and beyond. Thank you to our speakers and panelists! NATIONAL UPDATE Robert Pinnegar, CAE, NAA MODERATOR Topher Olsen, RPM Living STATE OF EMPLOYMENT: Joseph Batdorf and Turner Batdorf, J Turner Research ECONOMIST/APT MARKET UPDATE: Sam Tenenbaum, CoStar Group

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PANELISTS: Charlie Matthews, College House Mark S. Wolf, AHV Communities Katya Watson, CAM, The Guild Bruce Petersen, Streetversity.com

Thank you Platinum Sponsors!

2022 / SPRING /

Summer TOURNAMENT JUNE 9th

12:30pm-4:30pm

Schedule

12:30pm Lunch Buffet, Check-in and Practice Bays Open

Benefiting

TOPGOLF

2700 ESPERANZA CROSSING

Registration Fees Individual Players | $150 per player ($175 after May 27) Individual players will be paired up.

12:30pm-4:30pm Top Golf Competition/Open Play

High Top Team | $600 per team ($650 after May 27) Team includes up to six players. Includes high top table and chairs.

4:30pm Awards Reception

Lounge/Couch Team | $700 per team ($750 after May 27) Team includes up to six players. Includes cushioned lounge seating.

Prizes!

This is an AAA Political Action Committee (PAC) fundraiser. Proceeds benefit PAC Austin, and help AAA keep a strong voice at all levels of government.

1st, 2nd & 3rd Place Teams, Best Individual Golfer, Longest Drive, Most “Zeros” & more.

This event is open to players and sponsors only; no spectators. All player fees include four hours of Top Golf, lunch buffet and awards reception. PAYMENT MUST ACCOMPANY REGISTRATION AND BE RECEIVED BEFORE EVENT DATE. SPECIAL NOTE ON PAYMENT: Payment must be made by personal or partnership credit card or check payable to AAA PAC. Your AAA account cannot be billed. Payments will be counted as political contributions for local candidates favorable to the rental housing industry. Any cancellations must be received by 5:00 p.m., May 27. Reservations received after 5:00 p.m., May 27 cannot be cancelled. Email events@austinaptassoc.com with questions.

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Hiring in Multifamily? Find your next team member through hire priority staffing. Request Online: hirepriority.com/job-request/ Call Now: 512.338.4473 (hire)

A portion of all proceeds this season will be donated to NOTLEY COMMUNITY PODS

Notley is a social impact organization bringing the Central Texas community together by providing a safe educational environment for our children. Because no parent should have to choose between going to work and ensuring the safety and education of their children. For more information, please visit: www.communitypods.org.

EPISODE 1:

HVAC Readiness

HOW TO E NC A EN T N I MA

SPEAK

For any business or organization, having transparency, clear communication and thorough processes ensure that things run optimally and efficiently. This is especially true for the office staff and maintenance teams who oversee properties. While their roles are different, when the office has a basic knowledge of maintenance and how to better communicate with the maintenance team, efficiency and processes improve.

ne of the biggest areas of maintenance knowledge that can be improved upon is HVAC. While it can seem complex and difficult to understand, how the HVAC systems operate can be simple once broken down to the components. The two main components are the air handler, which is located indoors and moves air through the apartment, and the condensing unit, which is located outdoors and removes heat. Typically, when residents have issues with their HVAC units, it’s because of: • Furniture blocking the return duct vents • Clogged coils in the evaporator or condenser • Clogged filters • Brush surrounding the condenser unit To help minimize these common issues, there are a handful of things the office team can do to troubleshoot before submitting a maintenance ticket, such as asking if the filter has been changed recently, if anything is obstructing the return duct vent or if the unit has been turned on. It’s also important to keep an eye out for issues when moving around the property, such as brush that is overgrown around the outdoor condenser unit. For maintenance teams, incorporating preventative maintenance programs can help maximize resident comfort, while also saving time and money. A few main components of a PM program can include: • Executing HVAC maintenance and reviews in the spring before the heat of the summer

• Cleaning coils and condensation pans and drains • Changing filters and encouraging employees to change them monthly • Educating lawn crews not to do any mowing or weed eating near the condenser units • Notifying resident of heat advisors and how to reduce unnecessary heat production Through a basic understanding of HVAC systems and their common issues, office staff can speak to residents about their issues and possibly identify a solution, reducing unnecessary service requests and improving resident experience.

Key Takeaways: • Have a proactive versus reactive approach to identifying and tackling maintenance related issues with a strong PM program. This can help reduce overtime, increase employee moral and drive down expenses. • Aim to do the work on “your time”, as opposed to late at night or on the weekend when an issue arises. • All employees, from office staff to maintenance teams, should keep their eyes out for potential concerns. • Because air movement is key to a properly functioning HVAC unit, make sure nothing is obstructing the flow of air from the return duct vent (indoors) or the condensing unit (outdoors). • Regularly change HVAC filters and educate residents on how to keep their units operating optimally, such as not shutting them off the unit completely during the summer months or using window coverings.

“How to Speak Maintenance” is a monthly series that focuses on teaching property managers and office staff how to better understand and appreciate the work and the value of the maintenance teams, eliminate conflict points that come up, and provide better customer service for our residents. Each episode features different topics guests. This episode, “HVAC Readiness,” features: Becca Ramati Vice President of TAA’s Education Foundation

Jason Fein National Maintenance Service Director for Camden Property Trust and Series Host

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Mark Hurley President of Highland Commercial Properties and past president of the TAA Board

Corky Wolf Member of the Facilities team for Highland Commercial Properties and has been developing HVAC PM programs for the company

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S R O S N O SP 2022 / SPRING /

CYBERSECURITY

::::101::::

The misconceptions and risks community owners face by J O H N W E I S , Quantum Fiber

“Maybe if we just ignore cyberattacks, the hackers will ignore our multifamily properties.” Ridiculous? Sure. But for years, that seemed to be the opinion of many property operators. Today, cybersecurity for multifamily properties has never been more relevant with cyber risks lurking everywhere.

any communities, though, are less than ready to meet cyber threats head-on, despite the risks. In this series, we’ll consult with John Schiel, Principal Information Security Engineer for Cyber Defense with Lumen Technologies and their Quantum Fiber internet service—a well-known provider for multifamily properties. He’ll navigate the current state of cyber threats, the risks, misconceptions, and what property operators can do to protect their networks and residents.

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CYBERSECURITY: THE NUMBERS There’s no question that the pandemic triggered an explosion of resident internet use, and, according to Schiel, a flood of unwelcome online threats has come along with it. “You’ve got more residents on home networks, using a company computer, connecting to business networks through VPNs, and attending web meetings. All these work-from-home and virtual learning tools have increased vulnerabilities.” The sharp upturn in cyberattacks has been alarming and has resulted in more compromised data than ever before. Some of the numbers: • Cybersecurity Ventures predicted in 2017 that ransom-

2022-aaa-aln-ad-3.5x2.pdf 1 2/18/2022 9:06:53 AM

ware attacks would happen every eleven seconds, on average. They also predicted these attacks might cost upwards of $265 billion within a decade. • The non-profit Identity Theft Resource Center (ITRC) reports that the number of data breaches in the just first part of 2021 surpassed the total number for all of 2020—making it a «record» year. • A study by security firm KnowBe4 found a 600 percent increase in phishing attacks since the pandemic began. It estimates that over three-quarters of all cyberattacks start with an email. With statistics this sobering, why does cybersecurity for multifamily properties still seem to be off the radar of many property owners and businesses in general? Often, it’s due to misconceptions.

MISCONCEPTION: “WE’RE NOT A BIG CORPORATION— WHO WOULD TARGET US?”

CMY

The data multifamily properties and HOAs collect from residents is a treasure trove for cybercriminals.

The truth is, since as far back as 2016, most cyberattacks have been against companies with fewer than 100 employees. What›s worse, incidents like ransomware attacks can pose a serious existential threat to businesses this size. According to the National Cybersecurity Alliance, more than half of small and midsize companies that suffer a cyberattack fold within six months.

MISCONCEPTION: “WHAT DO WE HAVE THAT A HACKER WOULD WANT?” Make no mistake. The data multifamily properties and HOAs collect from residents is a treasure trove for cybercriminals. The social security numbers, names, birthdates, credit reports, and employment histories that go on applications and leases are an identity thief’s dream come true. A property’s business data would also be in high demand.

Archived financial and transaction records stored on a multifamily community’s network or the cloud might include everything from rent payments to banking information, security deposits, and tax records. If compromised, the result could be untold financial and reputational damage and hefty legal bills.

MISCONCEPTION: “IT STUFF IS SOMEONE ELSE’S PROBLEM.”

“Most people think cybersecurity is someone else’s responsibility,” says Schiel. The assumption is that some “IT guy” somewhere is “keeping an eye on it.” Schiel believes shifting this mentality is crucial since cyberattacks are a potential business problem for everyone. “Internet providers, building owners, management, staff, and even residents all play a role in maintaining a good security posture.” Malicious actors virtually never attack through a multifamily company’s IT department. Instead, they focus on residents or regular employees with email-based schemes like spear-phishing and ransomware attacks. Catching non-IT people off guard is why 95 percent of security breaches result from human error. Schiel says getting buy-in and widespread participation is vital. “When everyone cares about security, and everyone consistently maintains their hardware and applies all security patches and application updates, that’s when you can build a solid defense.”

This is provided for informational purposes only and may require additional research and substantiation by the end user. In addition, the information is provided “as is” without any warranty or condition of any kind, either express or implied. Use of this information is at the end user’s own risk. Quantum Fiber does not warrant that the information will meet the end user’s requirements or that the implementation or usage of this information will result in the desired outcome of the end user. All third party company and product or service names referenced in this article are for identification purposes only and do not imply endorsement or affiliation with Quantum Fiber. This document represents Quantum Fiber’s products and offerings as of the date of issue. Services not available everywhere. Quantum Fiber may change or cancel products and services or substitute similar products and services at its sole discretion without notice. ©2021 Q Fiber, LLC. All Rights Reserved. Quantum, Quantum Fiber and Quantum Fiber Internet are trademarks of Quantum Wireless LLC and used under license to Q Fiber, LLC.

2022 / SPRING /

Thank you to our Vegas Night sponsors and all of our members who joined us for this night of fun and networking! Thank you to all of the supplier partners that donated the awesome door prizes!

P L AT I N U M S P O N S O R S

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CONGRATS TO THE $500 CASH PRIZE WINNER Amber Roseman, NRP Group, sponsored by Maldonado Nursery and Landscaping, Inc!

GOLD SPONSORS

SILVER SPONSORS

A&A Wrecker and Recovery

ALN Apartment Data Centex Construction Contractors Inc Cotton Commercial Infinite Capital Construction Keller Commercial & Home Services Massey Services, Inc. Securitas Security Services Inc Valet Living WeDoTrash

Ashford Communities Guardian Construction Hines Pool & Spa Integrity Paving & Coatings Lowe’s Pro Supply Restoration Builders, Inc. River Rock Lawn and Landscaping Texas True Roofing

2022 / SPRING /

This fun new event was a great exercise in team building with all of the games and competition you loved from Field Day in school!

Congrats to our award winners! FIRST PLACE

Team Infinite Capital Construction

RUNNER UP

Team WeDoTrash

MOST SPIRITED

K8’s Gr8’s, Avenue 5 Residential

BEST DRESSED

Flooring Warehouse

P L AT I N U M S P O N S O R S :

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ADVOCATE BE THE VOICE OF THE RENTAL HOUSING INDUSTRY

MEET WITH LOCAL ELECTED OFFICIALS TO MAKE YOUR VOICE HEARD

5.16.22 - 5.20.22 SIGN UP TODAY

GOLD SPONSORS:

2022 / SPRING /

Wednesday, August 24 Canyon View Events Center 4800 Spicewood Springs Rd. Austin, TX 78759

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2022 / SPRING /

TAA-&-NAA HIGHLIGHTS

Texas Apartment Association Winter Board of Directors Meeting – February 2022

RECOGNITION

The Texas Apartment Association hosted its Winter Board and governance meetings February 23-25, 2022.

KEY TAKEAWAYS:

The Austin Apartment Association presented the TAA PAC with a $65,000 check to meet the 2022 goal. The Austin Apartment Association was presented with a Membership Growth Award for outstanding recruitment between December 2020 and December 2021.

The late Deborah Ray, CAS was recognized as a finalist for the Olin Steele Lifetime Achievement Ward. The winner will be announced at the TAA ONE Conference & Expo in April of 2022.

REDBOOK FORMS TRANSITION TO ONLINE ONLY IN 2023

The TAA Executive Committee approved a future transition of the TAA REDBOOK and lease forms to exclusive online delivery in the 2023-2024 cycle.

TAA EDUCATION FOUNDATION

TAAEF will be raffling a 2022 Mercedes-Benz CLA 250; the winner will be announced at the Closing Session & Luncheon during the ONE Conference. Tickets will be sold online, with ticket sales beginning in March. Thanks to raffle underwriters, all proceeds from ticket sales support TAAEF. The raffle underwriters are: ALN Apartment Data, Camp Construction, Century A/C Supply, Cort, Comm-Fit, Flooring Warehouse, FSI Construction, HD Supply, The Liberty Group, and Reliant.

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NATIONAL APARTMENT ASSOCIATION ADVOCATE MARCH 2022

The NAA Advocate Conference returned to in-person, for the first time since March of 2020. Austin Apartment Association Delegates traveled to Washington, DC to meet with the Austin area congressional delegation. This included meeting with Judge John Carter (District 31), Chip Roy (District 21), Roger Williams (District 25), and Lloyd Doggett (District 35).

UPCOMING TEXAS APARTMENT ASSOCIATION MEETINGS, EVENTS: 2022 ONE CONFERENCE & EXPO

April 27-29 in Houston SOLD OUT with 440 booths—the largest TAA Expo ever.

See you in Houston! April 27-29, 2022

Visit www.taa.org/conference UPCOMING NAA MEETINGS, EVENTS IN 2022: APARTMENTALIZE

June 22-24 in San Diego, CA San Diego Convention Center

SAVE THE DATE RPM CAREERS WEEK

July 18-22 RPM Careers Week is back! From July 18-22, join us in celebrating our community members and raising awareness about career opportunities in the residential property management industry. As part of this week, NAA will be celebrating our vital onsite teams with Apartment Onsite Teams Day on Wednesday, July 20. Take part in our fun challenges and prizes, while you connect and network with other RPM professionals in-person and on social media. We hope you’ll join us in celebrating our amazing industry!

2022 / SPRING /

EDUCATION TRACK LEGEND:

Education

OPPORTUNITIES YOUR CHANCE TO GROW AND LEARN Visit austinaptassoc.com/events/education for more class info and to register. Questions? Contact AAA at (512) 323-0990 or email education@austinaptassoc.com. Fair Housing for Maintenance APRIL 14

EPA Universal 608: Class + Exam MAY 4

Course good for Education Tracks:

8:30 a.m. – 11:30 a.m. Presented by: Dedra Bouffard, CAM, CAS of The Liberty Group AAA – 8620 Burnet Rd., #475 $80 per AAA member$70 early bird rate! FREE for ACE subscribers CECs: 3 This program is designed to learn about Fair Housing and how it applies to maintenance.

9:00 a.m-4:00 p.m Presented by: Travis Fowler, Century HVAC Distributing AAA – 8620 Burnet Rd., #475 $140 per AAA member$120 early bird rate! Not eligible for ACE pricing CECs: 3 This program is designed to review Federal Clean Air Act, Section 608 and other exam questions in the morning followed by the EPA Universal 608 exam in the afternoon.

CPO Pool Certification Course - Virtual APRIL 19-20

Course good for Education Tracks:

Advanced Leasing Issues MAY 18

8:30 a.m. – 5:00 p.m. Presented by Angel Davila, CAM, CAMT, CAPS, CPO-I, NAAEI Faculty, Monarch Investment & Management Group

This session will be virtual

$325 per AAA memberNot eligible for ACE pricing This program is designed understand techniques & skills required for proper pool operations.

Fair Housing

APRIL 27

Course good for Education Tracks:

9:00 a.m. – 12:00 p.m. AAA – 8620 Burnet Rd., #475 $70 early $80 member rate ACE sub =free Join Attorney Bill Warren as he covers the basics and beyond of Fair Housing

Course good for Education Tracks:

9:00 a.m. – 12:00 p.m. Presented by Corey Rogers, Attorney at Rogers Law Firm AAA – 8620 Burnet Rd., #475 $80 per AAA member$70 early bird rate! FREE for ACE subscribers CECs: 3 This program is designed to learn best practices for advanced leasing issues.

Using Improv to Improve Sales MAY 20

Course good for Education Tracks:

10:00 a.m. – 12:00 p.m. Presented by Jess Rodriguez, JR Sales Training AAA – 8620 Burnet Rd., #475 $45 per AAA member$65 early bird rate!

FREE for ACE subscribers CECs: 2 This program is designed to Interpret and connect the commonalities between sales/ improv and Illustrate and apply the learned commonalities through role playing

AAA 2022 Redbook Seminar-Virtual MAY 24, 26 (two half day virtual sessions)

Course good for Education Tracks:

9:00 a.m. - 1:00 p.m. Presented by: Corey Rogers, Attorney at Rogers Law Firm This session will be virtual $375 with book per AAA member$220 without book per AAA memberNot eligible for ACE pricing CECs/TRECs: 5 This seminar is designed to sharpen your knowledge of your legal rights and responsibilities as a rental housing owner or manager.

Excel 101 and Excel 102 JUNE 16

Course good for Education Tracks:

8:30am-12:00 p.m. (101), 1:00 pm-4:30 p.m. (102) Presented by: Julie Irvin Hartman AAA – 8620 Burnet Rd., #475 Register for Excel 101 and 102

together and save 25%! Prices tbd (details not finalized...)

FREE for ACE subscribers This program is designed to learn the Basics to Intermediate Excel Skills.

Be sure to check out the Education Calendar (https://www.austinaptassoc.com/events/education) for the most up-to-date schedule of education.

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APRIL 6

MAY 18

APRIL 20

JUNE 6

MAY 4

JUNE 29

How NOT to Celebrate Fair Housing Month! Investing in Employee Morale Pays Off Become The Primary Person – Closing on 1st Contact MAY 11

Selling to an Audience of One The Alchemy of Awesome Turning Your Teams to Gold! Copy That: Creating Emails That Tell Your Story and Drive Prospect Action

Mastering Maintenance: How to Get Maintenance Done When You Are Short-Staff, All Webinars are conducted by www.multifamilyinsiders.com. 1:00 p.m. – 2:00 p.m. CT Cost $29.99 Enter the code “16AAA” in the coupon field when registering for a discount!

April Food For Thought: Google Business Profile: Unreal Exposure, Real Results April 7th, 2022 12:00 p.m. – 1:00 p.m. Presented by Allison Nesbitt, Senior Director of National Sales, Zumper Free for AAA Members CECs: 1 In a world of Facebook and Instagram, Google Business Profile is an often-overlooked resource for property owners and managers to increase awareness of their properties. With Google Business Profile, communities can improve their search visibility on the #1 search engine and increase their exposure to renters by more than 350%. Join Zumper’s Senior

Director of National Accounts, Allison Nesbitt, as she discusses how to beat the algorithm and use Google Business Profile to increase your property’s rank in local search results and map listings. She will also discuss how data consistency improves your community’s SEO, and why Google Business Profile can be the #1 referral source for your property’s website. Come learn why in a Meta-dominated social media landscape, Google Business Profile content is king.

May Food for Thought: Towing Enforcement: “Uh oh, but my last company did it” May 13th, 2022 (date not confirmed) 12:00 p.m. – 1:00 p.m. Presented by Tasha Mora, A&A Wrecker and Recovery Free for AAA Members CECs: 1 This Food for Thought will discuss best practices for effective parking management pros and cons of each option. Best practices

for effective towing enforcement - pros and cons of each option and latest updates: TxDMV update on parking privileges of vehicles displaying a Disabled Veteran (DV) license plate; requirements to relocate vehicles during scheduled property maintenance.

June Food For Thought: Everything Property Managers Should Know About Termites June 22nd, 2022 12:00 p.m. – 1:00 p.m. Presented by Michael Staples, GetDone Free for AAA Members CECs: 1 This Food for Thought will discuss how conducting unit turns (make readies) is an essential task for all Property Managers and typically consist of conducting make ready punches, painting, cleaning, carpet cleaning and sometimes resurfacing and/or other jobs.

Q U E S T I O N S ? Contact AAA at info@austinaptassoc.com or (512) 323-0990.

2022 / SPRING /

The Warren Report THE CASE OF THE JEALOUS MISTRESS By William S. Warren, Warren Kalyan Law Firm

“Innovation distinguishes between a leader and a follower.”

uch is being written in this edition of Window on Rental Housing magazine which encompasses the concept of innovation. It has been said that innovation is about doing something to the best of your abilities, but with a slight twist. It is that twist which can result in the implementation of new processes, ideas, and services. The late Steve Jobs, of Apple, Inc. fame, had a well-respected quote on innovation. He said, “innovation distinguishes between a leader and a follower.” This Warren Report: Law in Order, will focus on the importance of innovation. We will examine innovation in the context of residential rental housing. We will start with the events which essentially began in March 2020 after COVID-19 had begun to wreak havoc on the world. Such havoc spared no one. It turned people and businesses, governments and courts, on their respective heads. It also called into question many

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essential legal principles. One of those, of interest to readers of The Warren Report, was whether a lease contract could be enforced. For more targeted purposes, the issue could be framed as whether the default provisions in residential leases would remain enforceable in Texas courts by the remedy of eviction. It was not only a question of enforceability. A key underlying question was whether the agreements between owners and residents of residential rental property could continue to benefit from the long-standing judicial structure which assured an eviction was a speedy and inexpensive court resolution through the eviction process. On March 13, 2020, the Supreme Court of Texas (SCOTX) issued its first emergency order regarding COVID-19. It ordered that since the Texas governor had declared a state of disaster in all 254 counties of the state, in response to the rapidly expanding threats of the COVID-19 pandemic,

William S. Warren,

Warren Kalyan Law Firm

the Supreme Court needed to take action to minimize risk to court staff, parties, attorneys, jurors, and the public from the coronavirus. SCOTX’s first emergency order, dated March 13, 2020, provided that all courts in Texas could, in any case, whether civil or criminal, modify or suspend any or all deadlines and procedures. It was ordered that the courts have this power for a stated period ending no later than 30 days after the Governor’s state of disaster was lifted. This first emergency order by SCOTX sought to prevent avoidable exposure to an illness which, at that time, seemed to have caught the world by surprise. There were no vaccines in use, in development, or available to the public. In fact, there was little understanding of what COVID-19 was or could do. Now we know all too well the dreaded path the coronavirus took us down over the last two years. Some might say that the actions being taken by those who govern us and interpret our laws and rules were an “innovation” of sorts. The ordinances, rules, and restrictions certainly involved the implementation of new processes. Whether the action was done by government agencies, politicians, or courts, what we were seeing and experiencing arguably were attempts to solve a current problem. All this governance arguably had an economic twist to it. The coronavirus was causing business as we had known it to be on the verge of

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LAW IN ORDER

implosion. In the rental housing context, government declarations, regulations, and interpretations were driving revenue and expenditures, a key element of innovation. But the executive, legislative and judicial branches seemed to have taken a dangerous detour. Innovation is supposed to move us in a positive direction. It is to make an existing process more efficient or solve a problem. There are many who believe that in the over two years since COVID-19 began to impact residential rental housing (along with just about everything else) we moved backward rather than forward. Part of the reasoning for such opinions involved putting blanket statewide rules into effect for the legal aspects of COVID-19. For a while, a onesize fits all solution was logical. Eventually, however, the logic disappeared, and the “solutions” began to fail. Approximately seven years prior to the somewhat formal appearance of the coronavirus by March 2020, Texas had seen impressive innovation in connection with eviction cases. The SCOTX had adopted new Rules of Civil Procedure for evictions with its order of April 15, 2013. Thereafter,

effective August 31, 2013, Texas Rule of Civil Procedure 510, which focused solely on Eviction Cases, became effective. This 2013 SCOTX action was impressively innovative. It replaced older and less effective procedural rules with creative and flexible ones, to be applied by litigants and courts, to govern the eviction process. For seven years, as an easily understandable and applied procedure, TRCP 510 and the related Chapter 24 of the Texas Property Code, illustrated a respect for the sanctity of a contract enforced through a timely, speedy, and efficient legal proceeding. The impact of all the orders, ordinances, declarations – the governance – upon commencing and prosecuting eviction cases was huge. They steered Texas away from guaranteeing a summary, speedy, inexpensive, and effective remedy for landlords of real property and their residents to utilize. It is time to return to the procedural path under TRCP 510 which enables parties to present their disputes involving the possession of rental property to the courts by following the rules those courts, and those who appear before them, are guided by. Only

through timely presentation of those disputes, and receipt of the contractual remedies, can the provisions of the agreements between the parties who made them be honored. We are now in a perfect position and an opportune time to return to those tested and proven procedures. We should begin with a return to the timeline which SCOTX and others crafted and enacted in 2013. It is contained in TRCP 510.4(a)(10): the trial is to be held not less than 10 nor more than 21 days after the petition is filed. That timeline, sadly, is rarely followed now because the COVID driven emergency orders, and local ordinances and rules, deny access to the courts. When we attended high school, and possibly before, we learned how we have three branches of government: executive, legislative, and judicial. They each have their unique role in our society and require recognition of the independence of each branch. That system was created when our country was born. It was certainly an innovation by our forefathers. It also still works, when respected. To ensure judicial independence, the judicial branches of the federal and state governments control the

Innovation is supposed to move us in a positive direction. It is to make an existing process more efficient or solve a problem.

2022 / SPRING /

before March 1, 2022. Consider that to be the invitation to innovation which is needed. Those in the multifamily and residential rental housing industry should do all they can to encourage a swift return to the mandates of Texas Rule of Civil Procedure 510. Doing so will restore the opportunity for the courts to show the citizens of the state that contracts and laws need to be respected and enforced, under judicial rules and procedures designed to proceed with speed and efficiency. It should not matter what court a

litigant appears in. It cannot matter which judge presides over the court where the trial is conducted. The same rules should be applied everywhere and to everyone. Those who govern us can often be commended for creativity and caring. The pandemic mandated guidance was useful, at least initially, to enable Texas citizens to maneuver through and endure the many twists and turns which quickly occurred because of the pandemic. Much of such guidance can be viewed as having been helpful,

for a while, to Texas citizens, whether individuals or entities, people, or businesses. But the now unduly burdensome restrictions have run their course. As SCOTX stated, justice courts that have not already done so should move swiftly to return to regular pretrial and trial proceedings as soon as reasonably feasible. That time is now. Successful innovation need not always be something new and untested. In the case of the law, precedent is key. The flexibility given to Texas courts over the last 2+ years, designed to control the dreaded pandemic, was helpful in many situations, but certainly not all. And that flexibility was never intended to result in a permanent displacement of TRCP 510. Strange as it may seem, to be innovative now does not require the introduction of something we have never seen before, or something which has yet to be tested. What we need now is a recognition that, moving forward in 2022 and beyond, the time is ripe to cease interference in the name of COVID-19 with agreements parties reach among themselves. Perhaps you have heard the saying: Law is a jealous mistress and requires long and constant courtship. It is not to be won by trifling favors, but by lavish homage. That 1929 statement, attributable to United States Supreme Court Justice Joseph Story, certainly implies that proper application of and adherence to the law is a courtship worth the effort.

The year 2022 marks BILL WARREN’s 42nd year of practicing law. His law practice focuses on a variety of issues and cases, the majority of which address the concerns of those active in the multi-family industry. He founded and manages Warren Kalyan Law Firm. In addition, he serves as Of Counsel for the Texas Apartment Association and as Legal Counsel of the Austin Apartment Association. Bill is also a Credentialed Mediator in Texas. He writes and speaks regularly, and as author of Law In Order: The Warren Report he has had over 120 articles published. His topics cover all nature of issues pertaining to rental housing, from onsite to the boardroom to the courtroom. Bill has been Board Certified in Civil Trial Law by the Texas Board of Legal Specialization for 30 years, and is also a Fellow of the College of the State Bar of Texas. He can be reached at Warren Kalyan Law Firm, 1011 Westlake Drive, Austin, Texas 78746, (512) 347-8777, or through his firm’s website at www.WarrenKalyan.com.

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Law is a jealous mistress and requires long and constant courtship. It is not to be won by trifling favors, but by lavish homage.

way courts are administered. Stated another way, neither the executive branch nor the legislative branch should tell the courts, the judicial branch, what to do. Likewise, to honor our Constitution, the courts in the judicial branch are not to legislate from the bench. Crafting and enacting laws and legislation is to be done by the legislative branch. The legislative branch exists locally in city councils, and statewide in the Texas legislature. The executive branch exists locally in the offices of the mayor, and statewide in the office of the governor. On occasion, it appears that we have strayed from those basic concepts. Rules and ordinances have often thrown previously existing judicial procedures and timelines to the wind. What is more, this has resulted in individual Texas justice courts having discretion to delay judicial proceedings. As stated in the 45th SCOTX emergency order, for example, justice courts were authorized to modify or suspend deadlines and procedures as they affected trial-related deadlines and procedures, and deadlines and procedures for pretrial hearings. The SCOTX appears to have had some reluctance in making such a statement. More specifically, in its 47th emergency order (as well as other orders it previously issued), SCOTX stated that justice courts that have not already done so should move swiftly to return to regular pretrial and trial proceedings as soon as reasonably feasible. According to SCOTX Emergency Order No. 47, that was to occur

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Spring 2022 Window Magazine

Articles inside

Association 101 Recap

Vegas Night Recap

Cybersecurity 101