Renovator by Midwest Luxury Publishing

third quarter

A SENSE OF POOL-SIDE FLAIR

EXCELLENT OCCUPIED RENOVATIONS

BUDGET-FRIENDLY BIKING FOR PROFIT

INSPIRED DETERMINATION

2017 presented by united renovations

THIRD QUARTER 2017

volume

1, issue 3

Multifamily Makeover

Turning concept into reality, one community at a time

LETTER FROM THE EDITOR

Editor-in-Chief JR Bolos (right) with Trevor Schick, Katerraâ&#x20AC;&#x2122;s president of materials.

United Renovations has always been on the leading edge of technology.

The Future of Construction

t is an exciting time to be in the multifamily construction industry. From new construction to renovations, business is booming. This type of exponential growth and opportunity are requiring companies to innovate and leverage new technology to better serve clients ensure better success on projects. United Renovations has always been on the leading edge of technology. From project management software to 3D cameras to drones, we have tried to bring technology to bear as an advantage in the market and we keep pushing forward. The multifamily renovation industry is ready for change. It is time again to challenge the triple constraint and reduce costs, shorten turn times and improve quality. It is time for a new technology disruption. This will drive costs down for our clients and help us be more effective. In April, we announced our merger with Katerra. This is a game changer. Our industry will never be the same. Katerra is bringing the

technology, design and supply chain innovations that revolutionized Silicon Valley to the world of renovation and construction. With the help of Michael Marx and his team, we are thinking about renovations like the tech industry thinks about creating the newest smartphones. Over the next few years, we are excited about the explosive growth potential the Katerra/United Renovations relationship will bring. The future of construction is now. We are building it together, and we hope you will join us.

JR Bolos Editor-in-Chief

TA B L E O F C O N T E N T S

30 THE FUTURE OF RENOVATION United Renovations recently merged with Katerra, a technology company optimizing all aspects of construction, renovation and design that makes buildings and environments come to life.

34 FROM MOCK-UP TO REALITY Our focus on multifamily renovations that can provide owners, investors and managers with the ability to see their vision from architect pad to grand opening.

40 MAKE A SPLASH Is a pool area renovation worth the time and effort? Try these creative ideas for a waterside oasis that will increase property value and community aesthetic.

48 THE VALUE OF OCCUPIED RENOVATIONS Here’s a strategic plan for a profitable turnaround when it comes to renovations with a tenant present.

52 INSPIRED DETERMINATION The journey of Charlie Linville, the first combat-wounded veteran to successfully summit Mount Everest.

08 BUSINESS Check out the five things your contractor should never say, new water-saving initiatives for multifamily housing in California and adding twowheeled mobility to your property 12 INTERIORS Tips for creating — and sticking to — a renovation schedule and how to prioritize your budget based on age-related issues

17 PROTECTIONS The concrete benefits to upgrading your parade route and summer roofing maintenance 20 HOW-TO Add value to your development with the latest high-tech roofing products from TAMKO, create a secure gated community with multi-tenant cellular systems and catering to bike-loving residents

24 ASK AN INSIDER Addressing common budget issues that occur during renovations, the best gym equipment for your development and what to consider before a washer/dryer conversion 56 ON THE WAY OUT A humorous account (and lesson) of crew cleanliness

MEET THE TEAM

DR. SHIKA HERSHEL Dr. Shika Hershel is a freelance editor and writer based in Frisco, Texas. She previously worked as a staff reporter for Renegade magazine where she wrote cover stories on Maya Angelou and Carlos Mencia. Dr. Hershel has been published articles in various educational journals and was the team photographer for the Texas Rangers.

JACQUELYNE FROEBER Jacquelyne Froeber is an award-winning editor and luxury travel consultant originally from Detroit. Her work has appeared in numerous shelter and lifestyle publications including Coastal Living, Midwest Living and Celebrated Living magazines.

DAVID HALLORAN David Halloran is a freelance photographer and writer and the former photo editor for American Airlines’ in-flight magazines. In addition to published work, David also has images in museums and teaches photography workshops in the wilds of West Texas.

TYLER HICKS Tyler Hicks is a freelance writer from Austin, Texas. He currently resides in Dallas, where he can most likely be found reading with (or to) his four dogs or writing at the closest coffee shop.

MOLLIE JAMISON Mollie Jamison is a full-time freelancer based in Chicago. She has published stories in Cowboys and Indians magazine, Dallas Observer, DFW Child Magazines and West Fort Worth Lifestyle Magazine. She enjoys running, hiking, wine tasting and contemporary art.

PAULA FROELICH Paula Froelich is a New York Times best-selling author and freelance writer based in Manhattan. Her videobased travel series, A Broad Abroad, is one of the first female-hosted travel adventure series of its kind.

CHARLIE SMITH Charlie Smith is a freelance writer and reporter in San Antonio, Texas. He has written for several publications and on a variety of topics including real estate, restaurants, travel and nightlife. In his free time, he travels extensively. Some of his favorite recent destinations include Iceland, Ireland and Denmark.

SAM OSTERLING Sam Osterling is a frequent contributor to Renovator magazine. Passionate about movies, hunting, reading and Cleveland sports, he’s currently based in New York City.

ADAM PITLUK Adam Pitluk is an awardwinning journalist and editor. Formerly, he was the editor-in-chief of American Way, a reporter for Time and People magazines and an adjunct professor at the University of North Texas and the University of Texas at Arlington. He’s the author of Standing Eight and Damned To Eternity.

ALYSON SHEPPARD Alyson Sheppard is a writer and editor based in Dallas. Her work has appeared in Popular Mechanics, GQ, Esquire and Us Weekly, among other magazines, among others. You can find her on Twitter at @amshep.

DREW LIMSKY Drew Limsky is the Editor-in-Chief of Interiors South Florida and the Editor-in-Chief of Mariner, the award-winning travel magazine for Holland America. In the past, he served as Editor-in-Chief for Lexus magazine and Cadillac magazine. Other credits: The New York Times, Robb Report.

RANDI LEIGH THOMAS Randi Leigh Thomas is a freelance writer based in Norman, Oklahoma. She is originally from Big Spring, Texas, and spent time as a country music radio DJ in Lubbock, Texas.

JR Bolos Steven Kirlin ART DIRECTOR Shawn Willis ADMINISTRATIVE MANAGER April Woods

Adam Pitluk David Halloran EDITORIAL DIRECTOR Jacquelyne Froeber SALES DIRECTOR Bob Grossman

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Renovator is published quarterly on behalf of BNB Publications, LLC by Midwest Luxury Publishing, a subsidiary of Midwest Luxury Rentals, LLC. All material is strictly copyright protected and all rights are reserved. No part of this publication may be reproduced in whole or in part without written permission of the copyright holder. All prices and data are correct at the time of publication. Opinions expressed in Renovator are not necessarily those of Midwest Luxury Publishing, and Midwest Luxury Publishing does not accept responsibility for advertising content. Any images supplied are at the owner’s risk and are the property of the owner. Printed in Dallas, Texas, USA ON THE COVER

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Building Communities Through Leadership

Vision becomes reality by way of collective partnership in Dallas. BY SHIKA HERSHEL

t’s 8 a.m. Saturday morning in Dallas, and volunteers of all ages are gathering together in some of the city’s lowest income neighborhoods. Care packages are being prepared for first responders and educators celebrating their service to the community. Block parties commence to cultivate positive relationship building for youth. The surrounding homes — many unattended for years — now boast new roofs and paneling. This is the fresh face of revitalization fought hard by community leaders striving to see change among low income neighborhoods in Dallas. Over the past two decades, the Dallas Leadership Foundation has created longterm change in these communities by developing a critical mass of local and resourced leadership to serve in neighborhoods, prisons and public schools and foster projects including Transform Dallas. “The whole part of Transform Dallas is to get people to come together in the city to support low income families,” says Wil McCall, President of the Dallas Leadership Foundation. “We have impacted the lives of over 15,600 people in the Dallas community,” McCall says. “We want to give all people in the city an opportunity to come together and volunteer.” With a citywide transformation being the goal, the core planning

team is initiating the dialogue on the importance of residents working together despite denominational, race, class or political differences. There are more than 250 worksites and around 4,000 volunteer opportunities. This effort also seeks to inspire movements that will reduce tensions across the nation among police and communities and people of different cultural backgrounds. The UR Hope Foundation and United Renovations have provided volunteers and subcontractors for Transform Dallas for the past 15 years. Chad Bailey, executive director of UR Hope Foundation, says the foundation is committed to bring the renovation talents and team at United Renovations to help ensure the success of Transform Dallas each year. “We invest a good amount of dollars for subcontractors to come and do some complete renovations,” he says. Each year prior to the event date, United Renovations and UR Hope employees are busy helping scope out work in neighborhoods and providing renovation prep work to homes. By engaging employees in the effort, there is an effective paring of business skills with community impact. For the UR Hope Foundation, this day is about changing and impacting lives. As Bailey says, “We want to make neighborhoods safe and improve the quality of life.”

This is the fresh face of revitalization fought hard by community leaders striving to see change among low income neighborhoods in Dallas.

BUSINESS

5 Things Your Contractor Should Never Say What property owners need to listen for during a renovation BY RANDI LEIGH THOMAS

s someone buying or investing in a property, there are things you never want to hear from anyone working on the project with you — especially your contractor. Here’s how to maintain a good relationship and help keep the job on task.

saying nothing at all won’t work

everything is perfect

i can get it done in x weeks and for y dollars, promise

Addressing concerns and explaining complications is part of the job. If things seem too good — playing off problems or minimizing budget concerns — these are marks of a bad contractor and you might want to dig deeper. i can’t do that for you

It is important to know if your contractor can handle the entire project. Many companies say yes to everything and try to figure it out as they go. This always costs more and takes longer. That being said, make sure you’re on the same page regarding expectations and check references before signing a contract.

Communication is key. When dealing with multifamily dwellings, your contractor should be open to updates, schedules and checking in to discuss progress. In the long term, your voice should be a priority throughout the project.

Predicting timelines and costs is almost always that — a prediction — as unforeseen obstacles may, and often do, come up. i meant to tell you about this a month ago…

A contractor may seem overzealous at times but will be doing the best job by you by checking in with even small details. Once again, it is important not to let problems fester, but to address them and resolve them as soon as possible for everyone involved.

BUSINESS

The Cost of Conservation

As low-flow fixtures become mandated in California, here’s how to budget and prepare your property. BY RANDI LEIGH THOMAS

ith the deadline for single-family residences just passed and the deadline for multifamily residential and commercial properties looming in the distance, California Senate Bill (SB) 407 needs investor and owner attention more than ever. What is SB 407? This mandate, which has been on the agenda for property owners since 2009, requires all residential and commercial buildings in California to renovate and update their existing plumbing fixtures with newer, water-conserving fixtures as part of the state’s effort to ensure a reliable water supply. (California has faced an ongoing drought for years and is just now starting to see relief, thanks to recent rainfall.) Joshua Davis, an account manager at United Renovations, has more than 20 years of experience in construction, renovation, materials and logistics. Davis stresses the importance of preparation and compliance. “For apartment owners, staying proactive will help ensure unexpected costs and prevent unnecessary unit downtime,” Davis says. But Jan. 1, 2019, when multifamily and commercial code mandates kick in, will be here sooner than you think. The code has previously required that any additions, alterations or

improvements completed on these properties since 2014 include updated and compliant plumbing fixtures, but now there are roughly 17 months left for those that did not complete the updates to get in compliance. Davis says if an owner is expecting to upgrade a project over the next couple of years, it is wise to get this kind of expense in the rent lift during this time. “If a company wants to renovate a property, you will generally be able to renovate in 17 months and spread the financials,” he says. One of the ways Davis says owners can be proactive is to employ a full property, quick plumbing change-out program. “By taking advantage of a building by building process, we can ensure compliance for owners and upgrade fixtures for residents,” Davis says. “Our footprint on the property is non-disruptive and tackling the entire property has scheduling and material cost advantages.” It is wise to go ahead and begin these upgrades when and where you can, especially in the cycles between residents. Reiterating that it’s important to get started now, to spread out costs and to observe the market to justify rent lift are all important precautions Davis gives to handling the upcoming implementation of SB 407 rather than face potential and unknown ramifications of noncompliance.

BUSINESS

The Benefits of Bicycle Rentals This amenity can add major value to your property. BY SAM OSTERLING

t the Mission Point Resort on Mackinac Island in northern Michigan, the on-site bike rental program gives the 239-room hotel an important edge. “Cars aren’t allowed on the island, so bicycles are a must for us,” says owner Liz Ware. While driving is still an important part of life in most cities, when it comes to multifamily developments, bike sharing has recently become a valuable amenity for the urban population as an alternative to owning a vehicle; commuting via bicycle is up 60 percent since 2000 according to the League of American Bicyclists. For developers and owners, the benefits to a bike sharing strategy are growing: Recent research from the Sightline Institute found that in 23 multifamily developments in Seattle, many tenants didn’t even own a car, making it difficult to cover the cost of the building and maintenance of the parking facilities. Another benefit to bike sharing? There is little maintenance or involvement post-planning for owners and managers thanks to the new technology in the bike sharing world. Full-service companies like Zagster help plan, build and operate programs across the nation, including providing local mechanics 24-hours a day and implementing simple app-based services that give tenants the ability to unlock

and return bikes (cruisers, tricycles, recumbent and cargo tricycles) via smartphone and eliminates the need for the kiosks. Old-school issues like theft are also practically non-existent with multiple security options including on-bike key pads and locks. Perhaps the most important benefit of bike sharing is in the message: as the trend in multifamily developments moves away from individual amenities and more toward community involvement, a bike rental program can help convey the message that the property values the environment and the health and wellness of the community, which helps increase the value overall. Bike storage will help bring in new tenants and retain current ones on page 21.

above: On Mackinac Island, bikes are essential to getting around. below: An example of Zagster’s bike sharing system.

INTERIORS

Project Timetable

Considerations for an Interior Renovation Schedule BY TYLER HICKS

tarting an interior renovation is a massive undertaking, and there are countless variables to consider. That’s why planning ahead and staying on task are essential parts of the pre-renovation process. Ask any renovation expert, and they’ll tell you that you need a comprehensive schedule before you dive in to the actual project. When it comes to your contractor, don’t shy away from asking questions, and be upfront about the timetable you have in mind. That being said, you have to trust the experts. Nevertheless, establish a completion date that works for both of you, make your expectations very clear and be picky when it comes to selecting the contractor that is right for you and your property. Always remember to get the project’s timing, scope and budget in writing so that all parties can be held to a consistent and formal standard — including yourself. You must hold yourself accountable; write out everything you need to get done before the experts get to work and be honest about your progress from the start. Property managers have to be smart about the little things — otherwise they may become big things. This includes disposal and storage. “The ability to dispose of multiple units’ debris at the same time is critical to keeping the schedule tight,” Priscilla Burney, Operations Compliance Manager for United Renovations, says. Designate a sizable disposal area, and

schedule one time per day for disposal. The same goes for storage — everyone loses when you lose time with multiple trips. Consistency of all kinds is key. “Poor disposal and storage placement can affect the curb appeal of the asset along with encouraging residents/non-residents to illegally dispose of their own items,” says Monni Warren, Regional Property Manager for Pinnacle Property Management Services. “The most cost effective solution I have found is to set up a temporary fence around the container and place the container in the back of the property as out-of-sight as possible.” Containers should not impede or obscure common amenities for both resident safety and property curb appeal. Furthermore, renovation schedules differ for occupied and unoccupied units. Renovating an occupied unit is a “well-choreographed dance”: if one thing fails, the whole piece could come crashing down. Both occupied and unoccupied units require attention to detail, but when it comes to scheduling, the occupied unit requires much more prep and resident cooperation. Whether you’re new to the process or you’ve been doing this for years, creating a schedule everyone agrees upon ensures a successful renovation. If you would like to learn more about occupied renovations give us a call to start a conversation: (469) 214-4253.

INTERIORS

Is Age Just a Number?

COMMON ISSUES BY DECADE:

Tips for capitalizing your property budget based on age-related issues BY TYLER HICKS

n the midst of a renovation project, it’s tempting to press the reset button and overhaul every last element of your units. However, whether you’re owning or investing, it’s smart to think about capitalizing your budget based on age-related issues. One way to think about capitalized items is if they fit one of three criteria: betterment, adaptation or restoration. Expenditures are necessary and encouraged when they will add to the value of the building (betterment), change the primary use of the structure (adaptation) or restore the unit (restoration). In all three cases, money spent is money eventually earned because you are returning a unit to functionality after its “useful life,” or the time in which it fulfilled its original purpose. To avoid spending too much, owners and investors can identify a pre-identified capital expenditures threshold, and the decision to capitalize should be reviewed when any type of maintenance, repair or renovations is budgeted.

Consider the value of the asset, the intended goal of the work to be performed, the scope of work, the actual result and its impact on the asset’s value, depreciation and equity return. If your goal is to paint a building exterior, but you know there is going to be extensive repair work as well, you may decide to undertake an entire building envelope project, and thus consolidate more into a capitalized expenditure. Some items on their own are merely property maintenance and upkeep or operating expenses, but if there is a marriage between scopes of work, then they can become a capital-eligible expenditure. The age of the structure or item should always drive your decision-making when it comes to budgeting, scheduling and execution. When an electrical wiring system is beyond its useful life, even if the price tag seems daunting, upgrades must be made. If the ultimate goal is to add value, then you have to consider cost and be strategic about your capital expenditures.

1970s and 80s • Clay sanitary pipes • Copper or galvanized water piping (i.e. can be pin holed requiring re-pipes) • Asbestos containing materials (i.e. drywall mud, popcorn ceiling texture, mirror and floor mastic) • Existing sanitary and storm drain line sizes and tie-ins being under severed for additions to property (i.e. unit washer/dryer adds, adding parking lot paving) • Lead-based paint • Lack of common area or interior unit sprinkler systems, typically can be “grandfathered in” in most areas but if renovations/additions are substantial enough you can lose this waiver • Lack of proper GFCI protection at wet area outlets or at breaker box itself • Lack of proper percentages of ADA compliant units or common area egress where applicable • Single-pane exterior windows and sliding glass doors equal lack of energy efficiency • Necessary upgrades to HVAC units’ refrigerant (current code requires R-410A) • Polybutylene piping, made from plastic resin, has been known to deteriorate and fail over time. 1990s • Existing sanitary and storm drain line sizes and tie-ins being under severed for additions to property • Lack of common area or interior unit sprinkler systems, typically can be “grandfathered in” in most areas but if renovations/additions are substantial enough you can lose this waiver 2000s • Existing sanitary and storm drain line sizes and tie-ins being under severed for additions to property

PROTECTIONS

Concrete Solutions

Resurfacing and sealing are the secrets to a strong community aesthetic. BY ALYSON SHEPPARD

emodeling an entire property without addressing deteriorated concrete is like wearing a custom suit with flip flops: It’s distracting and makes your work look unfinished. But you don’t have to rip up all of your sidewalks and driveways and pour new concrete to get a modern, uniform look. The parade route is critical to converting renters. The pathways of your property reflect the quality of your property. They also can mitigate or create safety risks. Joe Dean, owner of Prime Time Restoration in Denver, says the best — and most cost effective — option for worn or damaged pathways is concrete resurfacing. This process involves removing the damaged concrete and then overlaying the existing, still-good concrete with a polymer-modified version. You can then coat it or seal it to prevent future damage. “Resurfacing costs about half of what it would cost to tear out and repour a perfectly good concrete slab,” Dean says. “And it’s just as strong, if not stronger, than the concrete you’re laying it on top of.” Typical concrete has air holes or pores. When water or chemicals seep into those pores, the concrete can rot, and the rebar or metal inside can rust. In these instances, the surface will crack and get discolored. An experienced resurfacer can perform delamination tests on your concrete to determine whether parts of it can be saved. (There are instances when the damage is too extreme and the concrete cannot be

salvaged; if the slab has spider- or map-style cracking, then it is not a good candidate for resurfacing.) After cutting out the bad stuff and prepping the remaining concrete through acid-washing and scaring, Dean pours on the new polymer-modified concrete. This style contains glue, which fills holes and sticks to the top surface, making it stronger. “I’m not a dentist, but I imagine concrete resurfacing is kind of like fixing a cavity,” he says. “You clean out all the bad and rotten stuff and then fill it to protect it from continuous rotting.” Twenty-eight days later, he seals it with a crystal-containing penetrating sealer, which can last a lifetime. “Penetrating sealer will not allow water to get into the pores,” he says. “Every time that it gets wet, the crystals actually grow, going deeper into the slab to chase down water. When you combine that with the polymer-modified concrete, a lot of the chemical and water intrusion will be blocked.” In Colorado, where Dean lives, de-icer containing magnesium chloride is thrown onto the roads to melt snow. Cars pick those chemicals up on their tires as they drive, and then when they park in their driveways, it gets dumped on their concrete. The magnesium chloride eats through the calcium in their concrete, causing damage known as spalling or scaling. “Magnesium chloride is used to supercharge de-icers, but it supercharges eating concrete,” Dean says. You can wait until the ice thaws and hire a professional to fix your concrete, or hopefully stop chemical and water penetration that destroys concrete before it starts.

PROTECTIONS

Summer Roofing Concerns

Now is the perfect time to pay attention to the dome of your development. BY SAM OSTERLING

hen it comes to summer maintenance, stereotypical warm-weather work like landscaping and pool maintenance immediately come to mind. But it’s important to keep roofing at the top of the list. While your exact maintenance needs will vary according to climate, summer weather nationwide can cause issues that can shorten the overall lifespan of your roofing, leading to premature degradation and massive structural costs down the road. “The most important thing for summer roof maintenance is making sure that your gutters flow,” says Scott Page of SRG Roofing. “Water backup is always the biggest concern.” Neglecting the gutters of your property can easily lead to water buildup on the roofing surface, which can be costly and time-consuming in the future. Page recommends cleaning the gutters at least twice a year. Once in the beginning of spring, when the debris from autumn and winter may be clogging the gutter, and once at the end of summer, when leaves are beginning to fall. The autumn cleaning is important, “especially in cooler, more northern locations,” Page adds. As for regular maintenance, Page recommends visual inspections to dictate how, when and what to do. “When you clean your gutter, set up a ladder and look it over,” he says. “Is anything popping up? Uneven?” Ignoring these telltale signs of issues can greatly reduce the lifespan of your roofing. More frequent inspection and upkeep may be required depending

on your climate, location and circumstances. It all comes down to an understanding of where your property is located in particular and the issues that go along with that location. If your property is located further south, you can expect a harsher summer, with greater temperatures and more direct sun on your roof. This can lead to major ventilation issues. Even as you move north toward more temperate climates, you may find similar issues, in addition to likely greater precipitation. Make sure there an adequate shingle-to-vent ratio. Then there is the circumstances and structure of your property itself. Overhanging trees can also lead to unexpected problems. For example, a smaller branch falling during a storm can lead to fungal growth, which can cause a loss of structural integrity of the roof. Skylights can cause a buildup of leaves, twigs or other small bits of debris. These can affect the integrity of the light’s sealant, and may require re-sealing or replacement. Overall, Page says that an awareness and understanding of your environment combined with a regularized inspection and maintenance schedule will serve well in most cases. “The most important thing is water flow,” he emphasizes. “And deeper issues may require the help of a professional.” So to keep your roof strong and problem-free, be aware of where you are, how your property is set up and whether or not the required maintenance is something you’re comfortable doing without the help of a roofing professional.

HOW-TO

COMMON ISSUES BY DECADE:

Solving Problems in a Gated Community

Multi-tenant cellular entry systems open a new world for property managers and tenants BY MOLLIE JAMISON

ay goodbye to gated communities with traditional phone access. The latest trend in security is using unique codes with cellular systems like CellGate. “Cellular systems are easy to install and much easier for the property management personnel to use,” says CellGate President Noel Gouldin. “It makes receiving calls by tenants from gates and doors simple and more flexible, and increases security through the use of cameras and online logs.” There is no doubt that any type of gated access creates a heightened sense of security for residents. Still, management is often left dealing with the associated problems. “Gates can be a positive feature for any asset. With that said, they can be a nightmare too,” says Monni Warren, the regional property manager for Pinnacle Property Management Services. “The time it takes to program, diagnose issues, or change batteries — especially on a large asset — can be very frustrating.” CellGate allows property managers to add, remove or change directory codes quickly and easily with administrative access for code restrictions, scheduling and tenant access privileges. One major mishap with multi-tenant entry systems is gate code sharing. “CellGate addresses this issue by taking pictures of the driver and vehicle including license plate,” says Gouldin. “If code sharing is suspected,

management can review logs of the use of the specific code and view the pictures. Other types of access credentials can be used that minimize these problems.” Most often, the benefits of gated entry outweigh the hassle of keeping systems up and running. “When tenants feel secure, vacancies decrease and rates can sometimes be increased,” Gouldin says. “Gates prevent unwelcome people from driving through the complex, reduce solicitors from bothering tenants, reduce vandalism and other crimes.” CellGate can also be used to replace the need for hired security personnel. “For more highly secured properties, physical gate guards are often employed, which are costly and have human limitations,” Gouldin says. “CellGate’s solutions may be used to replace or provide backup to these guards. Security companies can also be the recipient of all visitor calls while residents and trusted guests have pre-approved credentials.” As for other secured areas on site, CellGate can implement the same access credentials for residents, and integrate them all into a single system. “We can provide solutions for doors such as clubroom, workout room and pools that use the same credentials but may not require all features such as cameras, making it the only system to provide a solution for every property’s needs,” Gouldin says.

Traditional Telephone Entry Systems • Requires a phone line for outbound calling to residents and most often for programming names for the display, phone numbers and access codes • Programming is performed from a PC that uses an old-fashioned modem to call the telephone entry system (if the modem cannot connect, a laptop must be physically connected) • Phone lines are susceptible to damage over time and can eventually develop noise on the line and long-term wear can cause problems in terms of programming the entry device and data can be corrupted • Repairing a phone line can be costly and problematic due to physical barriers CellGate Cellular System • Cellular systems don’t require land phone lines thereby bypassing all the phone line-related problems • The latest CellGate feature live streams video and audio of visitors to the cell phone of a tenant • Advanced features include simultaneously calling multiple numbers for a tenant, time and date-restricted access codes and cameras that can take still pictures of drivers and vehicles and record them in real-time logs • Sensors on the gate allow management to be alerted when gates power down or are left open • Adaptable with access control devices such as card readers, wireless remotes and RFID used in toll tag systems • Programming is performed using a web-based portal, available anywhere, which eliminates the need for a modem and analog phone line

HOW-TO

Embracing the 10-Speed Takeover Increasing walkability and offering bicycle storage may be just what your property needs to entice new tenants and retain current ones BY RANDI LEIGH THOMAS

ith the current influx of residents moving to urban city centers seeking to live-workplay all in one place comes the necessity of an amenity-focused mindset for property owners and managers. Bicycling is one of these rapidly growing trends and for urban housing markets it is necessary to prepare and provide for tenants who choose this mode of transportation. As important as it is to know the trends, it is equally as important to know who is on top of them and can help with transitioning properties to accommodate them. Dale Schaffenacker, owner of Molanda Company, a provider in commercial playground, park and recreation equipment, says most trend-based products are not high-dollar items — they are often small ticket on the budget — and a lot of other companies that typically make these types of sales don’t capitalize on the little sales. “These types of amenities are small-budget items that can sometimes make a difference in whether a tenant chooses your property or the one down the block,” he says. Bike parking in particular is a smart addition to many properties focused on marketing their walkability and proximity to activities and could even cut large expenses to potential tenants. It may be hard to sway a potential

tenant from their accustomed lifestyle, but capitalizing on this marketed community is a recognizable advantage to many of them. “The walkability gives tenants the option of living close to work, close to entertainment and shopping — even schools,” Schaffenacker says. “And if they do decide to relocate to an urban type property there’s a possibility they won’t need a car.” Owners are constantly trying to create both physical and non-physical amenities that will keep tenants on the property or in the proximity of its borders, and bike hubs, storages lockers and “Fix It Stations” are a means of providing extra enticement to that end, as well

as the ability to pay for themselves. For tenants, these new parking and storage areas provide security; vandalism may be reduced, theft may disappear, weather wear is no longer a concern and perhaps most exciting, no more hauling bicycles through stairwells, thereby freeing them to remain aware of their surroundings. For owners and managers, the addition of bicycle-focused amenities shows a tenantbased focus and can add polish back to the community; bikes are kept out of apartments and off balconies, owners show they care about customer experience and there is the potential for income by charging residents a low fee for using the amenity. Providing more benefits for tenants increases their willingness to be a part of the community and to keep returning, or in this case, resigning their lease as happy customers. “In my opinion, it’s an amenity war; everyone is trying to outdo everyone else,” Schaffenacker says. “With this in mind, why not invest in an amenity trend that pays you back?” Bicycle storage and hubs provide for both the owner-investor-manager group and the residents: They increase walkability and returns. See how bike sharing can improve your property’s value on page 10.

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HOW-TO warranty coverage when properly installed by a TAMKO Pro Certified Contractor.” Multifamily owners should also take note that TAMKO’s limited warranties are the same across single and multifamily installations. For other companies, this may vary. overcoming obstacles

Asphalt Shingles

Are They The Best Investment For Your Property? BY STACEY BENTLEY

nowing how and when to invest in your property can be difficult. In order to maintain your investment, maintenance or repair projects are essential. An essential area to maintain is the roof, which may provide up to 50 percent of a building’s exterior protection. A roof repair or upgrade is one type of investment that will likely maintain its value. The national average of return on investment for a roofing replacement is around 70 percent, according to the 2017 Remodeling Cost vs. Value Report. But you may be unfamiliar with the process to repair or upgrade an existing roof. Consider creating a list of goals and a budget. Then, it is important to research your options. Asphalt shingles are a practical choice, and are one of the most widely used single and multifamily roofing materials. Asphalt accounts for more than 80 percent of all new and replacement roofing applications. Asphalt has been the most popular roofing material in North America for more than 150 years, according to the Asphalt Roofing Manufacturers Association. “Asphalt shingles remain a popular choice because they look great and they’re economical, long-lasting and readily available,” says Stephen McNally, vice president of sales and marketing for TAMKO Building Products, Inc. “There are two basic types of asphalt shingles: three-tab and laminated.” McNally says it is important to gain some basic knowledge of asphalt roofing products before making a purchase. To help you better understand asphalt shingles, he offers the following information on common types:

three-tab

For many years, three-tab asphalt roofing shingles have been a popular choice for property owners. These shingles are made from individual layers of fiberglass mat, an asphalt roofing base material manufactured from glass fibers that provides additional strength to the shingle. The fiberglass mat is dipped in asphalt and coated with granules. Classic three-tab asphalt roofing shingles generally include a 15-to-30year warranty and are one of the more cost-efficient roofing product options.

In the multifamily industry, there are additional challenges you might face when investing in a repair or upgrade for your property’s roof. B.K. Gugaria, a TAMKO corporate account manager dedicated to the multifamily and property management segments, says, “Locating a contractor capable of undertaking and completing a multifamily job can be particularly frustrating.” You will want to make sure to choose a reputable local roofing contractor, preferably a preferred installer who has received training from the company that manufactured the shingles. Also, ask whether your contractor offers a separate warranty for the installation of the product and for what period of time. Additionally, tracking down a reliable, readily available product source is not always as easy as you might think. Gugaria says, “Securing product sourcing and assisting with contractor connections are a large part of what I do at TAMKO. You will want to choose a product from a company with a large distribution network with good product support.” When you’re ready to make repairs or upgrade the roof, take your time, do your homework and select the roofing shingles that are the best investment for your property. three-tab

laminated

Often used for replacement jobs and on new, upscale properties, laminated asphalt shingles have increasingly become a popular choice among those in both the single and multifamily home segments. Also known as “architectural shingles” or “three-dimensional shingles,” laminated asphalt shingles have added dimensionality because of extra layers of fiberglass mat, which create a wood shakelike appearance. Laminated asphalt shingles provide a more distinctive look when compared to classic three-tab asphalt shingles.

laminated

premium

You may want to consider a premium laminated asphalt shingle, which typically comes with a longer warranty and additional advantages that could save you money in the future. For example, McNally says, “TAMKO’s Heritage Vintage premium laminated asphalt shingles are offered with a Class A fire rating, a 50-year limited warranty and are eligible for enhanced

premium

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Make Your Renovations Make Money For You The Bascom Group’s Tony Ferrell explains how vision becomes reality through smart budgeting BY DREW LIMSKY in your experience, what are the highest cost items in a renovation budget with the lowest returns?

Certain items can be very difficult to calculate in terms of return on investment using conventional methods. For example, a clubhouse renovation or a new exterior paint job are items that — while I believe them to be necessary — they can be very difficult to properly quantify in terms of return. These are items that contribute to the overall look, feel and function of any asset but do not directly translate into increased rental dollars per unit. My belief is that without the completion of those items the efficiency and effectiveness of your interior renovation will be negatively impacted and ultimately result in a lower ROI. I would never continue to complete any item in our renovations that was proven to carry a high cost with low return, but we do complete many items that are difficult to quantify in terms of a simple ROI calculation. Each dollar spent should contribute to the overall success of our renovation and the future success of that asset. are there any areas that you should absolutely avoid?

For certain deals, yes there may be items that simply do not create value and should be avoided. I believe this would be something you have to determine on a deal by deal basis.

I do not have any particular item that I would always avoid across all deals. what are the common pitfalls when budgeting for a multifamily renovation?

Often, I hear of budgets written with minimal to no allowance for unanticipated change order work and/or with the expectation that you will be able to salvage existing components of an apartment (flooring or appliances for example). There are always items that are required above and beyond the intended scope, which is why we always provide for allowances and at least a 5 percent contingency for every project. what areas do you see the most return on your renovation dollars?

The unit interiors always provide the most straightforward and tangible ROI because you can easily determine the amount of rental rate increase as a function of dollars spent per unit. However, I would argue that our fitness centers, clubhouses, sports lounges and entire suite of amenity upgrades at a given property contribute significantly to our ability to achieve those premiums we command on each interior unit. The entire renovation program working in concert is necessary in order to achieve an acceptable return on any single component.

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Fitness Tracker

The skinny on the latest technology upgrades for multifamily developments BY JACQUELYNE FROEBER

hile fitness centers vary among developments, companies like Momentum Fitness Solutions help tailor health and wellness options depending on demographics, size and budget. But the message is the same: a fitness center provides a safe and convenient place to engage in the community which adds value to a property overall. And new trends in technology are helping keep budgets in check with an increase in virtual fitness options. One equipment upgrade to consider is synching machines with wearable tech, which is one of the biggest trends in fitness. For example, the Experience Series P62 touchscreen console can be added to existing equipment and will recognize various fitness trackers and apps (think Fitbit) and stores data in tailored accounts for workout goals. The console provides a more personalized experience while the automatic software updates and refreshes content without any additional work or expense. Companies like TechnoGym are also looking to personalize via technology: the new Personal Range cardio line offers an entertainment UNITY console; an HED screen with smart-phone access — and the option to phone a trainer via Skype. Which brings up the trend of live-streaming options and the Peloton bike craze, which have been dubbed the future of fitness. The stationary bike hybrid offers interactive streaming video for coveted spin classes, up to 14 daily “live rides,” video chat and ways to follow users or post in a community. While the trend of more personalized entertainment solu-

tions in equipment is something to consider, recent research from the International Health, Racquet and Sportsclub Association, notes that memberships in small, specialized boutique gyms and niche fitness studios grew 70 percent from 2012 to 2015, which is where technology can also add to property value without investing in new gadgets. In place of hiring a personal trainer or specialized yoga teacher for on-site classes at specific times, virtual group exercises and on-demand videos are a possibility whenever you want them, and can be offered through a community membership without having to upgrade equipment. The standard bike, treadmill and precor equipment are still staples, but technology is helping people connect on a whole new level of fitness — which can be a smart investment for the future of your development.

TechnoGym’s UNITY console allows you to stay connected while you run

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Beat the Heat

Understanding refrigerants will help save time, energy and your budget BY DAN LEISING

roperty owners and HVAC manufacturers have been exposed to numerous challenges over the past seven years due to federal regulatory changes concerning global warming issues. It started in 1987 when a conference known as the Montreal Protocol called for the phase out and use of CFC and HCFC refrigerants. At the time, one of the most popular CFC refrigerants used in refrigeration and air conditioning applications including single and multifamily residential units was R-22, or the halocarbon compound named monochlorodifluoromethane with chemical formula CHClF2 and it is the hydrochlorofluorocarbon (HCFC). The halocarbons (chlorine and fluorine) present in these compounds have the potential to cause depletion of the ozone layer in the atmosphere leading to greenhouse effects. As of January 1, 2010, equipment manufacturers are no longer allowed to manufacturer equipment using R-22, causing a shortage of available equipment by most HVAC manufactures who had to change their manufacturing process and equipment to accommodate the change. With the escalating reduction in production over the past several years, the cost of R-22 to service companies has increased from $3 dollars to more than $30 per pound. Prices will continue to escalate as the January 1, 2020 date approaches, spiraling repair costs higher and higher. This will be similar to what the auto industry experience when they were forced to convert from R-12 to R-134A refrigerants. Every major equipment manufacturer in the United States has selected R-410A as its choice to replace R-22 in new equipment, and there

are dozens of brands offering R-410A air conditioners and heat pumps available today. Unfortunately, the compressors designed for R-22 refrigerants are not compatible with the R410A due to the chemical makeup and the types of oil used. With new 2015 HVAC Efficiency Standard imposed by the Department of Energy, the United States was divided up into three different regions: north, southwest and the south. These regions must comply with the Montreal Protocol but have different Seasonal Efficiency Ratings (SEER) or Heat pump (HSPF) requirements that went into effect January 1, 2015. As equipment ages, it will lose efficiency especially when semi-annual maintenance is not performed. Systems manufactured prior to 2010 with R-22 have the potential to cost consumers much more than simply investing in new high efficiency systems. Although it has not been finalized, the DOE is currently review furnaces efficiencies by region as well. As manufacturers have been able to delay previous rulings on furnaces, a finalized decision is expected in 2017. Property owners and general contractors should be able to identify that the equipment being installed meets the minimum standards of the new regulations as well as meets the needs of the customer. In this pay now or pay later situation, the best approach is being proactive. By planning to phase out older R-22 units and compressors, properties can avoid the rapidly inflating costs of repairs and prepare for the future of HVAC regulations.

Regions for Central Air Conditioner and Heat Pump Standards

North Southwest

Alabama Arkansas District of Columbia Delaware Florida Georgia Hawaii Kentucky Louisiana Maryland Mississippi North Carolina Oklahoma South Carolina Tennessee Texas Virginia

Arizona California Nevada New Mexico

Zones

Heat Pump

New Hampshire New Jersey New York Ohio Oregon Pennsylvania Rhode Island South Dakota Utah Vermont Washington West Virginia Wisconsin Wyoming

Southwest

Air Conditioning

Alaska Colorado Connecticut Idaho Illinois Indiana Iowa Kansas Maine Massachusetts Michigan Minnesota Missouri Montana Nebraska

South

New Federal Minimums Effective January 1, 2015

North

South

North

South

Southwest

Split System 14 SEER 8.2 HSPF

Packaged Unit 14 SEER 8.0 HSPF

Split System 13 SEER

Split System 14 SEER

Split System 14 SEER 12.2 SEER<45k 11.7 SEER >45k

Packaged Unit 14 SEER

Packaged Unit 14 SEER 11 EER

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WHAT TO CHOOSE: VENTED OR VENTLESS

Operation Washer/Dryer Conversion The top things to consider in cost and construction before taking the plunge. BY ADAM PITLUK

n its face, converting a closet or a small bedroom into a laundry room adds value to your property and is a coveted amenity for your renters. Before you start the renovation, UR Mountain Region General Manager Andrew Chansley explains how to do it in the most cost-effective manner. Then it’s wash, rinse, repeat.

cation. The physical part of that is easy. The hard part is identifying whether the current service to the building can accommodate the added ampage. Verify that in advance.

what are the primary advantages for the client to do a washer / dryer conversion?

No, you should consult with a mechanical engineer to make sure the drain can accommodate that much fluid load. If it can’t, make sure that the additional rent you would bring in from having washer/dryers in-unit can offset the cost of upgrading the drain line and sewer

Foremost, it provides an amenity to the renter, thus added rent. It’s also a premium service for the property owner, as the owner can convert the complex’s laundry room into another amenity like a game room or a lounge. are there any structural or operational factors to consider before installing a washer /dryer in the units?

You want to look at a few things. First, where is there room physically in the unit, i.e. a closet or a back bedroom. Typically, we try to convert a closet and make it deeper to accommodate the appliances. Next, you want to check for wet walls (the location of the existing plumbing for the unit) and sewer drain proximity. The closer you are to a wet wall, the less pipe you’re running, and the more affordable the project. Then, you want to bring electrical to the lo-

after identifying the wet wall, should it be assumed that all sewers can accommodate the additional fluid?

are there additional coding issues that should be considered?

You have to check with the city to make sure that they don’t have any additional coding issues. In some cities, like Denver, you have to verify that there is enough pressure to run more water supply. If you don’t, it’s usually not hard to add a booster, and it’s not that expensive either. Some codes will make sure that your drain is big enough to handle the extra water and pressure, since you’ll be having more water going down the drain. If you have, say, a three story unit, laundry rooms will be stacked on top of each other, so you’ll have three units of fluid going down that drain line.

While companies like SageWater will do a complete turnkey for conventional vented washer/dryer retrofits, the energy-efficient ventless washer and dryer outfits make in-unit laundry easy and affordable. In ventless — or condensing — dryers, air is passed through a condenser, the temperature condenses moisture back into water, and then pumped down the drain. They eliminate fire dampers, and caps; require no penetrations in walls, roofs or flooring; reduce heat load and electrical riser load and face no code reconstruction on vent length. Per each dry cycle, conventional dryers exhaust 10,000 cubic feet of air which is replaced with outside air. With condensing dryers, the closed system means no money is spent on heating and cooling make-up air. Combination Washer/Dryers: Ventless, energy-efficient and fit under kitchen and bathroom counters and in most closets. They recapture 85 percent of heat energy and operate on 120V with 10A peak draw. Stackable Washers/Separate Dryers: Operate like conventional washers and dryers; style is suited for multifamily units with the same dry time as vented dryers and recaptures 60 percent of heat energy. Dryers have 4.3 cubic-foot capacity and require a 220V/15A circuit; washers use a 110V/15A circuit. High-Efficiency Washers: Clean garments better, remove more water and use one-sixth the detergent. Also require one third the hot water and one-third water overall (11 verses 32 gallons). source: sagewater.com

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Construction the future of

BY ROBIN CLEWLEY

United Renovations

recently merged with Katerra, a technology company optimizing every aspect of development, design and construction to transform the way buildings and spaces come to life. This new partnership provides UR with high-quality, lower-priced products, and Katerra’s logistics and inventory control systems will provide just-in-time product supply: a new concept for the renovation industry. Trevor Schick is Katerra’s president of materials, and he is applying the same supply chain techniques used in the electronics manufacturing industry for the world of construction and renovation. We recently spoke with Trevor to learn more about his background and the overall ambition of Katerra and how it intersects with United Renovations. tell us about your background.

I came from Hewlett-Packard. I was running the supply chain for a $50 billion unit for a company doing everything from end-to-end quality, procurement, supply chain, and factories. Before that I held senior supply chain and procurement roles with Motorola Mobility, EMC and Apple.

why were you inspired to join this team and industry?

Everyone understands the industry needs transformation. It’s one of the few industries out there that’s essentially stayed the same for the last hundred years. I’ve got two photos of a house being built in the 1800s and a house being built in 2000 and they look exactly the same. There’s a guy with a hammer standing out in the cold nailing wood together. Transformation within an industry normally happens from the outside. We are bringing together a set of people that are passionate about this business. Today, Katerra has around 550 employees, and I’ve probably personally interviewed 100 of them. I did that for one reason: it’s the first time I can pick the people I want to work with for the next five or ten years. Normally, you come in and you just live with what’s there. I find it pretty important to find people that come in with a passion, particularly for a startup because it is different.

how are you applying lessons learned from the electronics industry to the renovation and construction business?

When we think of the electronics industry, we did some pretty complex things over the past 20 years. When I started my career, setting up a supply chain and getting all the materials to the United States from multiple countries was a difficult problem to solve. The good news for us at Katerra, at least from a supply chain perspective, is we’ve solved a lot of those problems in other industries and are able to take those learnings and bring them to the construction industry. That being said, construction is also an industry that has been around a long time. Things have been done the same way and it’s ingrained in a very different way than the industries I have come from in the past. I believe we’ll be able to influence the industry to do things differently, but there’s a lot of education that needs to take place as we drive this forward. We’ll move it fast and we’ll keep making progress.

in your own words, what makes katerra unique?

There’s an interesting philosophy in the world and just about every industry adheres to this: you can be better, cheaper, and faster, but you can’t have them all. I actually believe that normally. The thinking has been if you tried to do all three you won’t be good at any two of them, so pick two. Katerra is creating the most beautiful buildings we possibly can. Then I firmly believe we can do it faster, and I firmly believe we can do it cheaper. This might be the first time we can actually do all three of those things. what interests you about the renovation business?

The renovation business is a huge industry in the United States, and I see a lot of opportunity for efficiencies. At the end of the day, it’s all about the customer—how do we provide the best quality products and service, increase the speed by which we deliver, and lower costs for them? They deserve to be served just like customers in other industries. It’s an exciting opportunity.

this page: Katerraâ&#x20AC;&#x2122;s President of Materials, Trevor Schick left: Workers inside Katerraâ&#x20AC;&#x2122;s cabinet manufacturing facility

From

Mock-Up Reality

t o

How one multi-tenant renovation firm is shaking up the industry BY CHARLIE SMITH

previous spread: Inside the clubhouse at

The Rustic at McKinney in McKinney, Texas

this page: Highlands of Prestonâ&#x20AC;&#x2122;s clubhouse

in Plano, Texas

it is an exciting time in real estate. As Director of Design for United Renovations, Jimmy Croteau has the unique opportunity to offer clients something that no other company in his industry does: a one-stop shop — a construction and design firm focusing on multifamily renovations that can provide owners, investors and managers with the ability to see their vision from architect pad to grand opening without the need for multiple vendors. This new opportunity that saves time, resources and revenue by incorporating the interior/exterior design and marketing components into the business plan. “It’s the way of the future,” Croteau says. “We found that there was a real need for interior redesign and brand redirection for this business vertical.”

Owners often face challenges with renovation budgets when it comes to design. “Most designers and branding houses want to work outside price points realistic for multifamily properties,” says Croteau. “Our focus is exclusively on and within the confines of multitenant units and their budgets.” Here’s how it works. “We’ll sit down with the client, talk with them, visit the space, take measurements and help the owner decide on a theme and vision,” Croteau says. Then, using the latest architect software technology, the design team builds a 3D replica of the space, allowing the viewer to virtually drop into the room, add or remove cabinetry, lights, flooring, furniture and any other component that can be modified

within the environment from a construction perspective. Once the details are ironed out, the team creates a book that showcases all fixtures, furnishings and equipment. This design process — including sign off and approval — usually takes about two to three weeks depending on the scope of the project. Then the build-out phase commences, lasting approximately two to three months for simpler projects, or longer if the project is more intensive, such as requiring walls to be moved. Finally, the last week of the project is spent decorating. Upon completion, Croteau says, “The client should essentially feel as though the initial virtual reality tour and book samples have come to life.” Case-in-point: At a suburban Dallas property, United Renovations helped owners settle on a new and more natural branding approach that incorporated what the property and its neighborhood had to offer. The property location is more rural and un-

To step inside one of our recent clubhouse projects, scan this barcode with your smartphone.

derdeveloped in nature, a lone respite amongst the urbanized areas in and around the Greater Dallas/Fort Worth area. With no immediate competition, the property faces a playground and greenspace. Connecting a property to its surroundings is important, says Croteau, because it helps to reinforce the message to potential tenants that the property is a member of the community. In addition to the name change, the property had a complete external color palate update and residential units were updated with cost-conscious versions of current trends. The defining detail: vinyl planks for a rustic wall within the units to convey the property’s branding throughout. Similarly, at a luxury apartment home community in the Southwest, Croteau and his team helped the owners embrace a sophisticated vibe with contemporary furniture and sleek modern accents, while softening with succulents and bohemian interiors. This property reflects the

Starting as a rendering (below), The Rustic’s finished clubhouse closely resembles the original idea.

city’s energy and the property’s mod demeanor with a single-color accent wall that pulls the entire living space together. The resulting focal point dynamic has not gone unnoticed. “When tenants tour through the space, and they see the wall, their eyes light up. It really has a powerful effect,” Croteau says. The welcomed aesthetic along with the team’s additional handiwork throughout the project has successfully generated buzz for the property and has reignited interest in a once-flagging property. When it comes to the design team’s philosophy, Croteau is a strong believer in thinking outside the box. “Especially with multifamily properties, where budgets are typically restrictive, it’s important to be creative,” he says. Also typically seen in multifamily properties? Cookie-cutter designs where everything appears the same. “We must remember that this, in the end, is someone’s home,” Croteau says. “We want

“We’ll sit down with the client, talk with them, visit the space, take measurements and help the owner decide on a theme and vision.”

people to be proud to live in these spaces and be able to embrace the property as their own.” As such, small changes (color palates, accent walls) from unit to unit can make a big impact when it comes to attracting a diverse audience and helps make properties feel more residential and unique, allowing residents to more closely connect with their new home. Additionally, it’s important to stay current. Recognize the trends, their high-end value and work with those parameters within the multi-tenant cost saving mindset. “Above all, we love what we do and we’re passionate about it. And I think that shows through to the final product,” Croteau says. “It’s exciting to know that we’re helping to re-energize a community and that through our work, we have the opportunity to change the demographic of the tenant and thus have a hand in transforming the city.” An exciting time, indeed.

Make a

Splash Is a pool area renovation worth the money?

BY ALEX TYLER

Walking into a beautifully renovated multifamily leasing center and model apartment is exciting for potential and current renters.

previous spread: Aerial view of an

apartment pool in Houston, Texas

left: Outdoor grilling area at

Indigo Creek Apartment Homes in Glendale, Arizona

However, once they step out onto the aged exposed aggregate pool decking, flagstone coping and lack of designed pool areas, a potential renter may begin to quickly lose interest in your property. Imagine taking a potential resident out of the leasing center and into an amenity that not only brings about an abundance of space for their family and friends to enjoy, but also a sense of relaxation, vacation and increase in energy. This is what a properly executed outdoor environment can bring to your multifamily property.

Creating shaded areas through the installation of cabanas will instantly trigger a resort-like feel for your residents

Simple renovations such as replacing the deck with an upgraded paver system (limestone, travertine or an acid-washed concrete) will instantly change the overall aesthetic of the amenity areas. Re-create spaces within those areas to efficiently enhance both circulation and programmed areas such as outdoor kitchens, cabanas and lounge areas. And relaxing within the pool is becoming increasingly popular. With the use of Ledge Loungers, visitors can unwind with a book while still cooling off in the water. It is also a great way to design shallow pool areas for those with toddlers and infants that want to enjoy the pool in the hot summer months.

A designated grilling space is a necessity for all pool areas — as most complexes live in cities with stated ordinances not allowing grilling within a certain amount of distance from their buildings, often taking away the ability to grill outside apartment units. Propane systems are a cost-effective way to implement grilling stations, but do require a bit more maintenance than the natural gas route. The upfront cost of the natural gas grill will be the heaviest of the grilling options, but will pay for itself in a few years in terms of maintenance fees and overall labor to clean compared to propane tank removal and storage or charcoal grill systems. Creating shaded areas through the installation of cabanas will instantly trigger a “resort-like” feel for your residents and will provide a space for interaction and activities for tenants. If the complex is moving towards a modern aesthetic, steel structures are becoming increasingly popular and available through local contractors, although this should be avoided in salt-water pool applications as corrosion is likely within these areas on the

Providing this type of oasis for future resident tours could increase the ability of a multifamily property to increase rent prices.

steel membranes. If you are looking for a more weather-proof or shaded scenario, you could explore installing a louvered roof system or a polygal laminate cover over the arbor to deflect UV and rain from residents. In regard to landscaping — less is more — maintain a simple and clean plant palette that is easy to maintain and contains hardy plant material that is native to the area. One of the most common mistakes in a multifamily setting is a landscape design that is over complicated and planted with improper spacing techniques, providing for a large amount of maintenance issues for years to come. These enhancements to your property not only create a beautiful environment for the current residents to enjoy, but also communicate that management cares about improving facilities and providing top-of-the-line amenities. Providing this type of oasis for future resident tours could increase the ability of a multifamily property to increase rent prices in an exchange for a five-star amenity at their fingertips.

left: Aquaterra's Ledge Lounger pool feature this page: Lounge area at Indigo Creek Apartment Homes in Glendale, Arizona

The Value of Occupied Renovations A strategic plan for profitable turnaround BY PAULA FROELICH

Five years ago, United Renovations took a calculated risk. Realizing there was a gap in the renovation market, the company decided to capitalize on the need for occupied unit renovations in the growing affordable housing market. “A lot of people in the low income housing tax credit (LIHTC) area relocated tenants because they just didn’t know how to do unit renovations,” says Kyle Weaver, President of United Renovations Specialty Group. “We save the owners a full relocation budget and that gives them extra money to put more amenities back into the property.” “There is a little bit of a sacrifice — and it takes a special person to do an occupied unit renovation project,” Weaver notes. “But we think creatively.” For the tenants, tangible results and Weaver’s creative approach is key. “Every time they leave for work, we come in and when the tenant comes back something has been replaced,” Garneata says. “They will now have a functioning kitchen and bathroom. The next day we will paint then replace light fixtures, then the flooring — so each day they come home their apartment is newer and better.” The benefit for both tenant and owner is timing. Occupied unit renovations allows the owner to complete the project sooner as opposed to a never-ending situation that many owners and investors fear. Weaver acknowledges that while occupied unit renovations are cost effective, not everyone can — or should — do them. “We are a service company,” Weaver says. “If you go into this thinking you’re just doing a ‘blow and go’ construction job, you’re making a serious mistake. You must take the time to talk to residents, notice them and get to know them. Don’t just be a name: have a presence. You want to be able

to run for property mayor and win.” Both Garneata and Weaver admit not all residents are happy with their presence in their lives — at first. “We understand we are encroaching on time and space,” Garneata says. “We explain that it will improve their unit and life and are using materials that are healthier for them, but a lot of tenants aren’t used to change. It’s the old ‘if it’s not broken why fix it’ — but we do get into the process with them. Some are still reluctant and it’s hard to see them not accept it till you’re done. But in the end, nine out of 10 are very happy with the outcome.” For United Renovations Specialty Group, the rewards often trump the challenges, and not just monetary rewards. “We go into people’s apartments who have had the same carpet for 22 years, their cabinet doors may be missing — there’s a lot of damage,” Weaver says. “These renovations really impact their lives.” And vice versa. Weaver says each project is unique but specifically helping improve senior living has had a tremendous impact on his life. “Unfortunately people don’t have a lot of family left and we go in there for a week and give them something new and enhance their lives,” he says. “These are the most heartbreaking yet rewarding projects I’ve ever done and it’s nice to be able to give something back to someone who wouldn’t be able to do it for themselves.” On the market rate side of the multifamily industry, United Renovations also offers occupied unit programs. By leveraging lessons learned from the UR family of companies, United Renovations is providing a unique opportunity for owners to maintain occupancy, reduce financial loss from down units and improve the value of properties.

“If you go into this thinking you’re just doing a ‘blow and go’ construction job, you’re making a serious mistake.”

OCCUPIED RENOVATIONS: WHAT TO EXPECT A sample schedule of how to navigate a successful upgrade Day 1 1. Abatement/demo kitchens and bathrooms including minor drywall 2. Rough in electrical 3. Prep kitchen floors 4. Install new cabinets and kitchen and vanity in bathroom 5. Install new countertops in kitchen and bathroom 6. Install new plumbing fixtures 7. Install new light fixtures 8. Install temp drywall 9. Clean unit Day 2 1. Electrical Inspection for rough 2. Drywall repair 3. Flooring install throughout unit 4. Install electrical trim 5. Install plumbing trim kit at bathtub 6. Clean unit Day 3 1. Paint kitchen and bathroom 2. Install new appliances 3. Clean unit Day 4 1. Complete punch list 2. Sign off unit by property manager

Standing on theRoof of theWorld How one wounded warrior proved what determination and grit could accomplish BY STEVEN KIRLIN

Charlie Linville is standing on top of the world. At this altitude, his body is literally dying from exposure to an environment not meant for man. For Linville, the years of training, sleeping in a hypoxic chamber to simulate extreme altitude and three attempts at the mountain pays off. He stands at an achievement most consider impossible or crazy. And he is standing on one leg. Linville is the first combat wounded veteran to successfully summit Mount Everest. Linville’s journey, however, does not start on this snow covered peak. It starts laying on a dusty battlefield in Afghanistan severely injured by an Improvised Explosive Device (IED). As a United States Marine Corp. Explosive Ordnance Disposal (EOD) technician, seeing the destruction of roadside bombs was not uncommon for Linville. It was his job to deal with these threats. On that day, he was the casualty. Linville explains, “If you have to step on a bomb, stepping on one that doesn’t fully detonate is the way to go.” The wounds he sustained on January 20, 2011 included losing his right leg below the knee, several fingers on the right hand, sustaining severe spinal damage, a traumatic brain injury, PTSD and several other chronic injuries throughout his body. “I am in pain every day of my life,” says Linville, “but I don’t choose to stay in bed because I am going to have pain today.” It is this kind of drive that pushed Linville to successfully complete an Olympic triathlon just two months after his leg was amputated. Even though he couldn’t get out of bed for four days after the race due to swelling, he proved something to himself and learned an important lesson. “It wasn’t about what I could physically do but about how far I could mentally push myself.” Linville would never again be defined by what others thought he was incapable of doing. “It is my mission to push my new normal to the greatest possible extent,” declares Linville, “I intend to get the full 100 percent out of the 70 percent of functionality I have left.” He would soon get his chance to push the very limits of his own resolve. In 2012, The Heroes Project invited Linville to climb Mount Everest. He said yes. Committing to this endeavor forced Linville to action. Training to climb Mount Everest became an obsession. It consumed his waking thoughts. He trained for it 8-9 hours per day, sometimes for hours in a hypoxic chamber that literally sucked the oxygen out of the room and put a tremendous amount of stress on his lungs and muscles. For Linville, the one thing he could control was how well prepared he showed up to the mountain to make his summit bid. The mountain would have to stop him. He would not fail for lack of training. On his first attempt in 2014, a tragic avalanche took the lives of 16 Sherpa guides and forced the end of the climbing season for Linville. In 2015, his team was supposed to be sent home because of the earthquake that devastated Nepal. Instead, they stayed behind to provide relief to the victims of the devastation. In 2016, Linville reached the summit. “Touching the roof of the world gave me all the confidence that I needed,” remembers Linville. “I was unsure of what capabilities I had with my prosthesis, summiting Everest taught me that I had zero limitations.” For Linville, summitting the world’s highest peak would begin to have far greater meeting. At this intersection of incredible triumph and intense suffering from his battle wounds, Linville discovered his life purpose. He is passionate about helping people pursue their goals and showing them the sacrifice and courage it takes to achieve them. “Everybody has a Mount Everest type goal in their life,” says Linville, “Never tell yourself you can’t do something. Don’t let your fear control you from the starting gate.” Linville is still standing on top of the world, but it is not Mount Everest. He is standing on the precipice of a lifetime of future achievements. “For the rest of my life I will push the bounds of my physical limits. I want to complete the seven summits, inspire weary souls and maybe one day venture into space.” What heights await those who take the first step?

O N T H E WAY O U T

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Keeping Things Clean BY STEVEN KIRLIN

enovation crews are critical to the success of any project. During times of immediate need at a property, they work long hours with short notice. Sometimes crews work all night to get the job done. “We have a leak.” The words no property manager likes to say. It was time for us to save the day and the leaky unit. We had just the team for the job. A seasoned professional, Stew Driver was willing to jump into action. It was going to be an all-night job. Armed with his tools and his trusty sidekick, a golden retriever named Rufus, Stew went to work. The night was long as Stew cut into walls to find and repair the leak. Sheetrock dust blanketed our leak-fixing hero. Sweat. Dirt. Success. We are not sure what time in the early morning hours Stew completed his leak repair. We just know that he was so tarnished from a hard night’s labor that he rewarded himself with a shower. Now, before you get all hot and bothered, this was a vacant unit (at least). While we do not advocate or encourage our subcontractors to shower in occupied or unoccupied units, Stew felt it necessary. What could possibly go wrong? The unit was vacant. No need to shut the bathroom door or worry about the absence of a shower curtain. Rufus wouldn’t mind. Stew showered. Did he bring his own soap? We have no idea. Fast forward to 8 a.m. If you are an apartment manager, one of the first things you do when starting your day is to check on the progress of any necessary construction repairs. Poor Shelley. No amount of coffee could prepare her for what she was about to witness. She turned the key to Stew’s repaired unit and now, makeshift spa. She entered. Across the room, door wide open, she saw a soapy figure in the shower with his trusty dog in front of the tub. She screamed. He screamed. We received a phone call. We pride ourselves in the cleanliness of our crews. We just had to clarify to Stew how we go about achieving it. We cleaned up two messes that day: a leaky unit and a soapy renovation crew.

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