ABODE December 2018 by HAA Publishing

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THE HOUSTON APARTMENT ASSOCIATION MAGAZINE

www.haaonline.org

December 2018

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CONTENTS December 2018

ON THE COVER

FEATURES & PHOTOS

28 On the Scene – Photos from the September ACES luncheon.

We’ve Got Spirit! – The HAA Go-Getters have all the spirit for the holidays and our Astros. Learn more about the Go-Getters and how you can become one on Page 66. Don’t miss the ApartmentData.com market report and photos from the HAF Chili Fest and Golf Tournament. Cover photo by Mark Hiebert, Hiebert Photography

30 The Market Rebuilds – Houston’s economic prospects are improving as repairs from Hurricane Harvey continue and Houston grows.

COLUMNS & MONTHLY UPDATES 7 President’s Corner – A thank you to all who supported our president this year. 8 Patron of the Month – Meet and support RentPath.

38 Good Works – ABODE showcases HAA’s members making Houston an even better place to live.

9 Legislative Update – Retirements and a blue wave mean new judges for eviction appeals.

42 Education Opportunities with Hassle-Free Affordable Housing – Learn more about NestQuest.

11 It’s The Law – Are you prepared to deal with a mold situation?

44 On the Scene – Photos from the HAAPAC luncheon.

14 Resident Relations – Learn more from a recent case settled by the Resident Relations Committee.

46 On the Scene – Photos from the HAF Chili Fest. 54 On the Scene – Photos from the Bill Dinerstein Memorial Golf Tournament. 58 On Site with ABODE – Take a closer look at the final five HAA Honors Award-winning properties.

19 Upcoming Education – Find out what education courses are offered by the Houston Apartment Foundation. 20 Calendar – HAA’s schedule of events for the coming months. 26 On the Road with HAA – See photos from the Lake Jackson Leasing 101 course. 64 Welcome Mat – Find out about the newest HAA members. 66 Go-Getters – Celebrating membership at the latest happy hour. 68 The Ambassador ONE Society – The Ambassadors make connections. 70 Portfolio Changes and In the News – Property updates and industry news clips from our members. 74 Index of Advertisers – See the supplier members who support this publication. 75 MarketLine – The latest area market numbers. 76 BackPage – News from around the community.

We welcome your comments. Email us at comm@haaonline.org.

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OFFICERS AND ASSOCIATION LEADERSHIP STARLA TURNBO President-Elect

JOHN BORIACK Vice President at Large

MICHELLE PAWELEK President

DIANE GILBERT Vice President at Large

BARBY LAKE Vice President at Large CLAY HICKS Secretary/Treasurer

CHRISTY RODRIGUEZ Vice President at Large

HOWARD BOOKSTAFF General Counsel

JEFF HALL Executive VP

BOARD OF DIRECTORS Kyle Brown, Immediate Past President Josh Allen Mack Armstrong Cyrus Bahrami Jeff Blevins John Boriack Kyle Brown Joe Bryson Tina Cavaco Grant Crowell Scott Douglas Ian Douglas Gina Erwin John Fedorko Israel Garza Diane Gilbert Stephanie Graves Ira Gross Alison Hall Bryan Head Clay Hicks Deborah Holcombe Jacob Kunath Barby Lake Laura Lestus David Lindley Robert Lopes Sonia Lopez Kristin McLaughlin Carlos Neto Dean O’Kelley Michelle Pahl Velissa Parmer Jenifer Paneral Mark Park Michelle Pawelek Jackie Rhone Christy Rodriguez Kelly Scott Kurt Seidel Kim Small Debbie Sulzer Starla Turnbo Shelley Watson Quintina Willis Tracie Yoder

DIRECTORS EMERITUS Ken Bohan Gary Blumberg Kathy Clem Jack Dinerstein Darlene Guidry Jenard Gross David Hargrove Larry Hill Stacy Hunt Hap Hunnicutt David Jones Mike Koch Dick LaMarche Tim Myers P. David Onanian John Ridgway Eileen Subinsky Steve Sweet Kirk Tate Suan Tinsley H.J. Tollett Pat Tollett Vic Vacek Jr. Beth Van Winkle Jerry Winograd ADVISORY DIRECTORS Terri Clifton Brenda Crawford Tamara Foster Billy Griffin Mary Lawler Cesar Lima Karen Nelsen Lindsay Torres Laura Van Dyck Tony Whitaker GENERAL COUNSEL EMERITUS Joe Bax HONORARY LIFE MEMBERS Claude Arnold Kenn Brown Tina Cavaco Kevin Fenn Diane Gilbert Anita Harrison Dwayne Henson

Mike Koch Merry Mount Monette Reynolds Sherry Stevenson Kirk Tate Suan Tinsley Sonny Unverzagt Del Walmsley Nancé Wells H.P. Paul Young Jeanne Marie Zublin Dicks PRODUCT SERVICE COUNCIL OFFICERS Grant Crowell, CAS, President The Urban Foresters Jacob Kunath, CAS, Vice President Century A/C Supply Laura Lestus, CAS, Secretary The Liberty Group David Lindley, CAS, Treasurer FSI Construction Inc. Israel Garza, CAS, Immediate Past President Maintenance Supply Headquarters MEMBERS Marivel Bownds, CAS, Valet Living Dixie Caldwell-Greer, CAS, The Liberty Group Peggy Charles, CASE, Fidus Construction Services Dylan Coleman, CAS Camp Construction Services Deborah DeRouen, CAS, Zumper Derek DeVries, CAS, Camp Construction Services Brian Febbo, CAS FSI Construction

Dan James, CAS Redevelopment Services Debra Knight, CAS, Valet Living Stephanie Krop, CASE, Poolsure Liz Levins, CAS, Rasa Floors Candis Mohr, CAS, AAA Plumbers Doug Oehl, CAS Power Express Joseph Rodriguez, CAS, The Urban Foresters Blaise Spitaleri, CAS, Rasa Floors Mat Tilley, CAS, WeDoTrash PATRON MEMBERS 1961 CSC ServiceWorks 1986 Craven Carpet 1994 AAA Plumbers Presto Maintenance Supply 1996 Houston Planned Energy Systems 1997 RentPath 1999 FSI Construction Inc. 2003 Cotton Commercial USA Inc. Dixie Carpet Installations 2009 Camp Construction Services 2013 Interior Logic Group Property Services 2018 Apartments.com

SPONSOR MEMBERS 1968 Century A/C Supply Hoover Slovacek LLP Reliant 1973 Brady Chapman Holland & Assoc CORT Furniture 1974 Mueller Water Conditioning Inc 1976 Great American Business Products 1977 Webb Pest Control 1978 Houston Metro Electrical Corp The Liberty Group 1981 AmRent Marvin F Poer & Company 1983 Namco Mfg Co Inc Sherwin Williams Company 1984 RENCON 1985 Gemstar Construction Development Inc 1986 ApartmentData.com 1988 W Partnership 1992 Alexander-Rose Associates Inc Saint Clair & Sons Inc 1998 AAA Staffing Ltd CoreLogic Rental Property Solutions 2000 Moveforfree.com Inc Pura Flo Corporation 2001 Apartment Life Inc 2002 American Fire Systems Direct Energy LP Southwest Painting Contractors Inc 2003 Sign-Ups & Banners 2005 Swain & Baldwin Insurance & Risk Management United Protective Services 2006 Bell's Laundries CAD Restoration Services LLC DoodyCalls Lopez Carpet Care & Painting Masonry Solutions Inc Roto-Rooter Services Co TXU Energy Multifamily Services Valet Living 2008 ARE Business Solutions LLC Flavor Finish Resurfacing HARCO Insurance Services Texas Turf Management 2009 Contractors Inc Moen Inc Redevelopment Services Storm Maintenance & Monitoring 2010 ALN Apartment Data Inc BAC Products Belfor Property Restoration Certified Termite and Pest Control FTK Construction Services 2011 Fantastic Floors Infinite Energy Inc Parking Management Company/PMC Towing 2012 ABC Supply Co Inc Accent Sign & Awning Co BGE/Brown & Gay Engineers Inc Cantrell McCulloch Inc EnviroSmart Multifamily Pest Solutions Giordano Construction Inc Go-Staff, Inc Maldonado Nursery & Landscaping Inc Nationwide Eviction Texas Concrete Professional Company 2013 ACTIV Answer by Audio Images Arbor Contract Carpet Inc ASAP Steamers Carpet Cleaning Comcast Gambit Construction Outdoor Elements Pool Works LLC Tidal Renovations LLC 2014 Adventure Playground Systems Inc

Chadwell Supply Classic Same Day Blinds J National Jonah Digital Agency MX2 Commercial Paving Pathfinder Insurance Group Perma-Pier Foundation Repair of Texas Ram Jack Foundation Solutions Texas Apartment Pool Services WCA Waste Corporation Zillow Group 2015 Air Pro Systems America Outdoor Furniture ASAP Personnel Inc BSI Cameras Onsite Competitive Choice Inc DeNyse Companies Division-9 Inc Fix My Slab Foundation Repair Gateman Inc Greater Houston Pool Management Holder's Pest Solutions Infinity Power Partners Kathy Andrews Interiors Notifii LLC Pace Mechanical Services LLC Power Express The Allshouse Group LLC The Lane Law Firm Wilsonart 2016 Action Window Coverings Inc Allied Fire Protection Lp Bath Fitter BH Fitness North America Cinch – Cabinet Refacing Kits Citi Fence & Concrete E-Systems Pest Management Inc Ecolo Environmental Inc Embark Services Fidus Construction Services Fun Abounds Green City Recycler Green City Security LLC Guardian Chimney Sweep Halo Doors Inc Hive JLL Johnstone Supply Leah McVeigh Design and Consulting Liquid Waste Solutions McCann Total Security Solutions Murrah & Killough PLLC Paul Davis Restoration North Houston RAM Construction Sparkle Wash Pressure Washing Texas Southwest Floors Inc The Home Depot ValencePM WASH Multifamily Laundry Systems WellKept Whitmans Contracting and Roofing 2017 ACT Security Group Action Gypsum Supply All About Doody Pet Solutions LLC All American Mailboxes of Houston Inc Allegion American Fire Protection Group Anderson Restoration Apartment Total Services APTexx Inc Aquatic Training Institute ARK Appliances BioTechs Crime & Trauma Scene Cleaning South Houston Brooklet Energy Distribution Buddy's Roofing & Construction Co Cano Electric Inc City Supply Co Inc Classic Towing Continental Adjusters Inc Creative Surface Cypress Landscaping & Irrigation, Inc D&C Painting Designs by Holmes Disaster Restore 365 Fast Forward Services LLC Frost Insurance Agency Gage Multifamily Services General Recon, LLC Houston SEAL Patrol Division LLC Lithotech Printed Products/Forms Center McMahan's Flooring Inc MPS Direct Norman Construction NorthMarq Capital On Site Towing LLC Pack-It Movers

Paul Ryan Windows Quick Relief Restoration Rent Accelerator Residential Waste Service LLC SEAL Security Solutions LLC Secure Insurance Swiff-Train Company Symmons Industries Texas Engineered Roofing & General Contracting Texas Eviction LLC USA Patrol Division Vima Decor WBI General Contractor LLC Willbanks & Associates Inc 2018 12 Stones Roofing A Homestead Specialist LLC A Quick Restoration Inc AAdvantage Laundry Systems AirAide LLC Apartment Lines Apex Lighting LLC Archcon Arizona Tile Assa Abloy Astros Carpet & Painting Inc Bank Financial Banner Shakers BBO Professional Carpet Cleaning Bee Man Dan Belvoir Real Estate Group LLC Benjamin Moore Galveston Bay Paint & Decorating Brannan Designs LLC Architecture & Interior Design Capital Sign Associates CashFlow Pros LLC Centex Construction CG Sorelle Group LLC ClearView Landscape Management Construction ECO Services Core 24/7 Restoration Services Durastone Corporation Featherston Sign Partners Finish Factory Inc Globus Management Group Good Guys of Texas Green Garbology Guardian Gutters H&H Fire and Security H&R Operator Services Inc Higginbotham HMS LLC Homeland Protective Services Jet Wrecker Service Justice Patrol Services LLC K-Simon Construction Ledge Lounger Lone Star General Matrix Construction Services Merricks Company MirrorMate Frames Mosquito Scott Pest Control NGC Renovation O'Conor, Mason & Bone PC OnDemand Cabinet Solutions Penco Access Control PERQ LLC Phoenix Roofing & Construction Inc Platinum Enterprises LLC Poolworx Power Design Inc Preventive Pest Control Quatro Tax LLC Red Dog Dumpsters Red Nova Energy Rent Debt Automated Collections RG Miller Engineers Royalty Landscape Saifee Signs & Graphics Signal 88 Security Smart Shield Security Spray and Play Strickland Law Firm PLLC Surface Designers Remodeling Inc Swadley Roof Systems LLC Tanza Granite Inc TDECU Insurance Agency Technogym Texas Premier Builders/Designs Texas Steam - Laars Heating Systems TNCPA Turn2 Solutions LLC USI Southwest Vistex Graphics LLC Wellman Exteriors Westlake Home & Commercial Services Wholewood Cabinets Wildlife Removal Experts Windstorm Restoration Wonder Wall Wraps Inc WS National Construction Services LLC

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ABODE DECEMBER 2018 I VOLUME 41, ISSUE 12 Executive Vice President and Publisher

JEFF HALL, CAE jhall@haaonline.org EDITORIAL AND DESIGN STAFF

Director of Publications and Design DEBORAH NIX dnix@haaonline.org Writer/Editor MORGAN TAYLOR mtaylor@haaonline.org ADVERTISING

Vice President of Membership and Marketing AMANDA SHERBONDY asherbondy@haaonline.org CONTRIBUTING STAFF

Vice President and General Manager SUSAN HINKLEY, CAE shinkley@haaonline.org Vice President of Professional Development EMILY HILTON, CPP ehilton@haaonline.org Vice President of Public Affairs ANDY TEAS, CAE ateas@haaonline.org Vice President of Finance NANCY LI LO, CPA nlo@haaonline.org Director of Information Technology ART EIDMAN aeidman@haaonline.org Director of Resident Relations MATILDE LUNA mluna@haaonline.org Director of Events and Meetings LAUREN WOLFSON lwolfson@haaonline.org Director of Rental Credit Reporting TINA DEFIORE tdefiore@haaonline.org Public Affairs Specialist ALPA PATEL apatel@haaonline.org Strategic Growth Manager LAUREN TURNER, CMP lturner@haaonline.org Education and Meetings Coordinator KAREN MITCHELL kmitchell@haaonline.org Membership and Marketing Coordinator KAYLON NEWCOMB knewcomb@haaonline.org Membership Engagement Assist. MONSERRAT BUFFINGTON mbuffington@haaonline.org Webmaster and IT Specialist WILL ALFARO walfaro@haaonline.org PRINTER

TGI PRINTED www.tgiprinted.com HOUSTON COMMITTEE Executive Program & Budget Nominating Ethics Investment Fair Housing By-Laws Past Presidents Council Strategic Outreach Legislative HAA Political Action Committee Multifamily Fire Safety Alliance Developers Century Club PAC Fundraising Media Relations Golf Leadership Development Product Service Council Community Outreach Resident Relations Appeals Resident Relations A Resident Relations B Membership Ambassador ONE Society 2018 Expo IROC Education Advisory Council Career/Community Development NEXT HAF Fundraiser HAA Street Team Property Awards

APARTMENT ASSOCIATION COMMITTEES CHAIR STAFF ADVISOR MICHELLE PAWELEK JEFF HALL STARLA TURNBO JEFF HALL KYLE BROWN JEFF HALL BETH VAN WINKLE JEFF HALL CLAY HICKS JEFF HALL KAREN NELSON JEFF HALL ALISON HALL JEFF HALL JENIFER PANERAL JEFF HALL CLAY HICKS LAUREN TURNER STARLA TURNBO ANDY TEAS STACY HUNT/JOHN RIDGWAY ANDY TEAS JOHN FEDORKO ANDY TEAS CYRUS BAHRAMI ANDY TEAS DAVID LINDLEY ALPA PATEL DAVID JONES ALPA PATEL DEBORAH HOLCOMBE ALPA PATEL KIM SMALL ALPA PATEL JACKIE RHONE SUSAN HINKLEY GRANT CROWELL SUSAN HINKLEY QUINTINA WILLIS SUSAN HINKLEY DARLENE GUIDRY MATILDE LUNA ELAINE LEEPER MATILDE LUNA KATHY MOTIS MATILDE LUNA TINA CAVACO AMANDA SHERBONDY DEBORAH DEROUEN/DEREK DEVRIES AMANDA SHERBONDY JACOB KUNATH AMANDA SHERBONDY STEPHANIE BRYSON EMILY HILTON STEPHANIE GRAVES/MONICA GRACIA EMILY HILTON KELLY SUESS EMILY HILTON LINDSAY TORRES/DAVID LINDLEY EMILY HILTON MICHELLE PAHL/DAN JAMES LAUREN WOLFSON BRANDON THOMAS LAUREN WOLFSON RICHARD WALL/PENNY SPRANG TINA DEFIORE

HOUSTON APARTMENT ASSOCIATION MISSION AND VISION HAA is the leading advocate, resource and community partner for quality rental housing providers in the Houston and surrounding area. HAA develops leadership in the multifamily industry by engaging broadly diverse membership, embracing effective technology and advocating for a geographically inclusive association.

Visit HAA Online at www.haaonline.org ABODE IS THE OFFICIAL PUBLICATION OF THE HOUSTON APARTMENT ASSOCIATION. Serving the multihousing industry in Austin, Brazoria, Chambers, Colorado, Fort Bend, Harris, Liberty, Matagorda, Montgomery, San Jacinto, Waller and Wharton counties. ABODE, DECEMBER 2018 VOLUME 41, ISSUE 12 ABODE (USPS 024-962) is published monthly by the Houston Multi Housing Corporation. Publishing, editorial and advertising offices are located at 4810 Westway Park Blvd., Houston, Texas 77041. Telephone 713-595-0300. The $50 annual ABODE subscription rate is included in all member dues and additional subscriptions are available. The annual subscription rate is $50 for members, $65 for non-members. Advertising rates are available upon request. Contributed material does not necessarily reflect the views and opinions of the Houston Apartment Association. Copyright Â© 2018 by HAA. Periodicals Postage Paid at Houston, Texas. POSTMASTER: Send address changes to ABODE, 4810 Westway Park Blvd., Houston, Texas 77041.

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2019

THE HOUSTON APARTMENT ASSOCIATION CORDIALLY INVITES YOU TO CELEBRATE THE INSTALLATION OF

2019 PRESIDENT STARLA TURNBO, OFFICERS, BOARD OF DIRECTORS AND PRODUCT SERVICE COUNCIL OFFICERS

Installation New Year

Gala

Presented by

Premier Sponsors CENTURY A/C SUPPLY CORT FURNITURE CRESTMARK CONSTRUCTION SERVICES MAINTENANCE SUPPLY HEADQUARTERS

SATURDAY, JANUARY 12, 2019 • 7 P.M. TO 11:30 P.M. • THE POST OAK HOTEL • 1600 WEST LOOP SOUTH • FORMAL ATTIRE WWW.HAAONLINE.ORG/GALA

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President’s Corner

By MICHELLE PAWELEK, CPM, CAPS, 2018 HAA President

A YEAR TO REMEMBER A thank you to all who supported me during my year as HAA president.

THIS PAST YEAR has been a year to remember. Becoming the president of the Houston Apartment Association quickly became a goal of mine when I first started volunteering for HAA as a young property supervisor many years ago. I must say, this experience has been everything I hoped it would be and more. I would like to thank everyone who has supported me during my term. Your support made every crazy week’s schedule and all the effort worthwhile. My year as president has gone by fast. It has been a lot of fun, and it has been very rewarding. We kicked the year off with the highest-attended Installation and New Year Gala with over 1,300 in attendance. Gala set the tone for a string of record-breaking numbers for HAA. Major events reached all-time high attendance numbers, such as the State of the Industry Breakfast, HAA Education Conference and Expo and Honors Awards. For the entire year, supplier partners contributed a collective, historic high of $360,000 in sponsorship dollars for education courses, networking events and general meetings. A big thank you to all the supplier partners who generously contributed. The Take 5

www.haaonline.org

Business Exchange alone As 2018 winds down, I feel accomplished, proud produced an all-time high of and happy with all that we have experienced $57,000 in scholarship funds. and achieved this year at HAA. Outreach efforts nearly multiplied this year with its expansion of education events. Six Redbook Seminars were held in our outlying their confidence in me. I have carried the counties and cities with over 600 members in responsibility you entrusted with me with attendance, and that is in addition to the the utmost respect and to the best of my highly attended Leasing 101 seminars. ability. The HAA staff embraced my passion I was so proud to see how many HAA for leadership development and made my members earned credentials this year. A total vision come to fruition, and for that, I thank of 175 members acquired credentials, which you, HAA staff. As 2018 winds down, I feel is the most ever in a calendar year. Congratuaccomplished, proud and happy with all lations to each of you. HAA’s Government Afthat we have experienced and achieved this fairs department was very busy this year year at HAA. fundraising. A total of $213,000 was donated to the HAA Political Action Committee and The Market Rebuilds the group grew to 200 members. And yes, you This year we saw 13,000 units that were guessed it, that is an all-time high. At the bedamaged during Hurricane Harvey return to ginning of the year, I challenged the young the market, and Bruce McClenny of Apartprofessionals of HAA to get more involved. Data.com has returned with his market reThe committee currently holds a record high port just in time. McClenny shares how of 26 members and about 200 participating Harvey shifted our market and how the remin the events. nants of the storm will continue to play a role I would like to extend my sincere gratitude in our industry leading into 2019. to the HAA Board and leaders who placed

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These companies have generously supported the Houston Apartment Association with their patron membership. Please give them careful consideration, whenever possible, in your business.

Houston Planned Energy Systems

Apartments.com

HAA Member since 1978

HAA Member since 1997

Cotton Commercial USA Inc.

Interior Logic Group Property Services

HAA Member since 1982

Presto Maintenance Supply HAA Member since 1983

CSC ServiceWorks HAA Member since 1961

Craven Carpet HAA Member since 1986

Camp Construction Services HAA Member since 1994

December Patron of the Month

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HAA Member since 1985

AAA Plumbers HAA Member since 1984

FSI Construction Inc. HAA Member since 1999

Dixie Carpet Installations HAA Member since 1987

RentPath HAA Member since 1979

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Legislative Update

By STARLA TURNBO, HAA Legislative Chair, with ANDY TEAS, CAE, Vice President of Public Affairs

CHANGES AT THE CAPITOL AND COURTHOUSE Retirements and a blue wave mean new judges for eviction appeals.

I’D LIKE TO start this article by thanking each and every HAA member who took the time out of their busy schedules to vote. We cannot positively impact our industry if we are not voting. Remember, just because you don’t take an interest in politics doesn’t mean politics won’t take an interest in you. Your state and local apartment associations endorsed 183 candidates. Out of that number, 163 were elected – a success rate of nearly 89 percent. November’s election will bring major changes to the federal government next year. While Republicans held on to the U.S. Senate, Democrats will be the majority party in the House of Representatives. Texas will lose four major House chairmanships – including the chairmanship of the House Ways and Means Committee, where Kevin Brady (R-Woodlands) was able to pass historic tax reform legislation earlier this year. One of the apartment industry’s champions in Congress, John Culberson, was defeated by challenger Lizzie Fletcher. Other new additions to Houston’s congressional delegation include Sylvia Garcia, who will replace retiring Congressman Gene Green, and political newcomer Dan Crenshaw, who will replace the retiring Congressman Ted Poe. In the Texas Legislature, Representative Mike Schofield, an HAA member, and Representative Gary Elkins, a long-time supporter on business issues, were defeated by Democratic challengers in districts that have been reliably Republican in prior years. Moderate Republican Sarah Davis was easily reelected in a district that has voted increasingly Democratic in races other than hers in recent elections, which is a testament to her focus on her fiscally conservative, socially-progressive inner-loop constituents. Much less media attention has been paid to changes at the local level. All county-wide officials in both Harris and Fort Bend counties were defeated. www.haaonline.org

Of interest to the apartment industry, three of the four Harris County Court-At-Law judges will be new in January. These courts handle all eviction appeals from the sixteen justice of the peace courts in Harris County. Here’s a first look at our three new judges. Jim Kovach will replace Theresa Chang as the judge in Civil Court at Law Number 2. Supported by the Houston Apartment Association Political Action Committee, Judge-elect Kovach has an impressive legal background. Since graduating from the University of Texas and earning a Juris Doctorate in law from the University of Houston, Kovach has successfully handled more than 10,000 cases in Harris County. He is committed to following the law impartially and moving his docket efficiently. In his spare time, Kovach has served as board chair for the Montrose Clinic and for Legacy Community Health, and he has run marathons in Houston, Chicago and San Diego. LaShawn Williams will replace Linda Storey as judge of Civil Court at Law Number 3. Born in Conroe, Judge-elect Williams earned her law degree at the Thurgood Marshall School of Law and is licensed to practice in both Texas and Tennessee. She is the managing partner of Baldwin Williams & Associates where she has practiced both trial and appellate law in state and federal court. She has been both a criminal prosecutor and criminal defense attorney and has served as an in-house counsel for both a Fortune 500 company and several local nonprofit organizations. Bill McLeod will replace the retiring Roberta Lloyd as judge of Civil Court at Law Number 4. Born in Calgary, Alberta, Canada, Judge-elect McLeod moved to Texas in 1976 and to the Houston area in 1999. He graduated from Texas A&M, then the earned his law degree from the Thurgood Marshall School in Houston. His firm handles a variety of cases from real estate to family law. In addition to his legal scholarship, McLeod has a passion for car racing.

The apartment industry – and all Harris County citizens – owe a big thank you to Judge Chang, Judge Storey and Judge Lloyd. All three have worked tirelessly to move tens of thousands of cases through their busy courts fairly and efficiently. We appreciate your service! We also owe a debt of gratitude to the dozens of other officials who were defeated in their races for reelection, including County Judge Ed Emmett, County Commissioner Jack Morman, County Treasurer Orlando Sanchez, County Clerk Stan Stanart, District Clerk Chris Daniels, State District Judge Debra Ibarra Mayfield, State District Judge Katherine Cabaniss, State District Judge Mike Landrum and dozens of others. While we are disappointed that they were defeated, we thank them for their service. We should also remember to be thankful to live in a country where we can see a peaceful transition of power from the defeated to the elected after a free, fair election. Across the country next month, public servants will hand the gavel, literally or figuratively, to the people who defeated them with a handshake, a pat on the back and sincere best wishes. Maybe your candidates all won, or none of your candidates won last month or, like most of us, you experienced some of each. Thanks for doing your part to make our democratic process work. To help keep the apartment industry’s voice in our democratic process strong, consider becoming part the HAAPAC next year. Next year will feature a race for mayor of Houston and five “open” seats on the Houston City Council. For as little as $100, you can join the HAAPAC and influence the industry in a positive way. By joining the HAAPAC, you can also have lunch with other industry leaders, local officials and candidates for office and Houston’s best political experts throughout the year. There is a saying in politics – if you’re not at the table, you’re on the menu. Come join us! If you are interested in joining the HAAPAC, Alpa Patel at apatel@haaonline.org. December 2018

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It’s the Law

By HOWARD BOOKSTAFF, Hoover Slovacek LLP , HAA General Counsel

MOLD ON THE MIND? Are you prepared to deal with a mold situation?

A holiday jingle composed by Howard M. Bookstaff, HAA General Counsel (To the tune of “It’s Beginning to Look A Lot Like Christmas”) It’s beginning to smell a lot like mildew everywhere you go; take a look in the A/C vent with the old shoe smell-like scent with furry black and silver crumbs aglow. It’s beginning to smell a lot like mildew claims are everywhere; but the prettiest sight to see is the plan that will be how you’ll make that repair. An air sample test showing where mold might rest is the wish of every tenant; a plan that will solve and that will resolve is the hope of all management; and you need to be able to rent after the unit becomes vacant. It’s beginning to smell a lot like mildew everywhere you go; there’s a substance on the baseboard that could strike a cord, the green kind that you wouldn’t want to show. It’s beginning to smell a lot like mildew soon the claims will start, and the thing that will make you win and the tune you will sing your plan taken to heart.

THE IT’S THE Law article entitled “The Mold Report” from October 2015 discussed several issues ranging from dealing with a mold claim to liability. www.haaonline.org

The concepts discussed in the two-year-old article are Mold continues to be on everyone’s mind. Are you still relevant today. Mold conprepared to deal with a mold situation? What is tinues to be on everyone’s your plan? Let’s go through what your mold mind. Are you prepared to management plan might include. deal with a mold situation? What is your plan? Let’s go through what your mold management whether there is evidence of mold that plan might include. should be professionally inspected. If on-site personnel finds no evidence of mold, damRecognizing A Mold Issue aged areas can be repaired. However, if evi• Respond to notices to repair or remedy dence of mold exists, the proper personnel water damaged conditions: should be called upon to further inspect the Any notice you receive to repair or remedy area of concern and take the appropriate a mold damaged condition should be given measures. the highest priority. Evidence of your re• Phase II – Professional Inspection: sponses should be kept. It would be benefiOutside contractors may need to be called cial to maintain work orders identifying: (a) in if conditions require further action and if when requests were made; (b) when responon-site maintenance personnel are not sive action was taken; and (c) what action trained to inspect the condition to determine was taken. whether further action is required or not. • Conduct regular inspections in areas of • Phase III – Develop Protocol for Mediapotential hazards: tion: Regular inspections can help minimize poIf it is confirmed that mold is present and tential claims. Make-ready procedures cannot be cleaned by on-site personnel, a should include inspections for potential qualified contractor should determine a prowater-damaged areas. Always maintain a tocol for remediation. At that time, it should checklist of areas that were inspected to probe determined whether testing is necessary vide evidence if needed later. to achieve the goal of resolving the situation, • Employee education: how long remediation might take and If your first line of inspection is maintewhether residents can continue to reside in nance personnel, they should be properly the unit during remediation. trained to detect water leaks in areas of po• Phase IV – Remediation: tential water damage. If they are going to Once it is determined what work needs to perform this task, they should be properly be done, the work can commence. Precautrained. Maintenance personnel should also tion should be made to determine whether be trained to know when further expertise is occupants can reside in the unit and how needed to inspect an area of concern to depersonal property in the unit should be relotermine whether a problem exists. cated or prepared to avoid unnecessary contamination. Taking Action After an Issue Was Recognized Communicating With Residents • Phase I – On-Site Inspection: • Duty to Residents: Whenever a mold concern is raised, propRemember, Texas law requires you to make erly trained personnel should determine a diligent effort to repair or remedy condiDecember 2018

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tions in units considering the nature and severity of the condition as well as the reasonable availability of materials and labor and of utilities from a utility company. In summary, once a repair require is made, action should be prompt and correct. • TAA Apartment Lease Contract: The TAA lease offers some guidance with respect to communicating with residents. Paragraph 19.2 provides that the apartment and other areas reserved for the residents’ private use must be kept clean. Paragraph 25.2 provides that the resident must use customary diligence in maintaining the apartment. Paragraph 26.2 provides that the resident must promptly notify the owner in writing of water leaks, mold or other conditions that pose a hazard to property, health or safety. • TAA Mold Information and Prevention Addendum: The mold addendum contains additional information for residents about mold, informs residents how to prevent mold, informs residents how to avoid moisture buildup, informs residents how to clean mold

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December 2018

in small areas and informs residents that if they fail to comply with the addendum, they could be responsible for property damage that may result. • Keep Residents Informed: It is always important to keep residents informed with respect to how any remediation program will affect their lives. They should be made aware of what will be done to their unit and how long it will take. They will also need to know what action, if any, they should take to prepare the unit for the work to be performed. Vendor Issues to Consider Be prepared in advance and determine who you will call regarding mold-related issues. If your maintenance personnel is properly trained, you may need to look no further. However, if your maintenance personnel is trained to handle smaller mold situations, be prepared if a bigger mold situation occurs. You may need to call an environmental consultant or mold remediator or other contractors to perform the work. It may be beneficial to have a list of approved vendors

for these types of tasks. This will give you an opportunity to determine vendor responsibilities, price, representation of quality, communication with residents and insurance and indemnification issues. Media Relations Be prepared to deal with potential media questions regarding a mold situation. On-site personnel should be aware of who to direct media questions to. Persons responsible for media relations should be aware of the mold management plan and answer questions on a consistent basis. Being prepared for a mold issue may be the best present you can give yourself this holiday season. Take a break from the festivities of this holiday season to prepare your mold management plan so that you can be prepared for any situations that develop in 2019. Happy Holidays!

Want to see previous law columns online? Go to http://issuu.com/haa_abode.

www.haaonline.org

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Resident Relations from the RESIDENT RELATIONS COMMITTEE

UTILITIES ADD UP A resident loses her security deposit to her final utility bill.

A RESIDENT FILED a complaint

with HAA to receive a refund on her security deposit. The resident feels at least half of her security deposit should be refunded to her. According to the resident, damages were minimal, including carpet damage in one area and broken blinds. The resident also questioned outstanding utility bill payments that were included on her final balance, which she says she paid on time. After the resident’s security deposit was applied, the resident owed the apartment community $130.77 in cleaning charges and utility bills. Management responded to HAA and that response was forwarded to the resident. En-

The HAA Resident Relations Committees provide closed were copies of an impartial review of resident complaints using the lease, application, move-in condition form, the documentation provided by both the resident notice to vacate and final and management. account balance. Pictures were also provided. The apartment community justment. The committee removed the carpet charged the resident $21.10 for an additional cleaning charge of $70 because according to day of rent and a total of $404.67 in utility bills. the invoice, the carpet was replaced. Cleaning charges included a $70 fee for carpet After the adjustment made and other cleaning and $35 for blind replacements. Mancharges justified, the resident owes the apartagement did not charge the resident with adment community $60.77. ditional cleaning charges that were performed in the apartment home. If you are a manager with a resident After reviewing the case, the committee relations issue, call HAA at 713-595-0300 decided in favor of management with an adfor direct assistance. I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”

I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”

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December 2018

www.haaonline.org

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ting e k r a m r u ve to yo o o r g e l t t Add a li2019! Sponsor anand plan ing meeting or event gaining upcomin “Good Times” by y. e have som for your compan n recognitio is a great way to g Sponsorin of a concentrated nt get in fro make contacts. nd market a

e l t s Hu

Join us as we sell events such as the Volleyball Tournament, Honors Awards Dinner, Top Golf Spring PAC Fundraiser, Maintenance Mania, Education Conference & Expo, ACES Luncheons, and numerous education and credential courses and seminars.

Do the

Visit the HAA website for the full Auction Program with the list of events up for sale at

www.haaonline.org/sponsor/

n o i t c u A p i Sponsorsh

1 3 y r a u n a J , y a d s e n d We Need some “dance” lessons?

If this is your first time to attend the HAA Auction, come early for the Auction 101 session and we’ll walk you through the process.

Can’t get down tonight?

If you cannot attend the live auction proxy bidding is available. Contact Amanda Sherbondy to find out more.

HAF Dinerstein Reed Prokop Education Center

4810 Westway Park Blvd. off Clay Road just east of Beltway 8

FREE to all supplier members Auction 101: 2:30 p.m. Registration: 3 p.m. Drawings close: 3:45 a.m. Live Auction begins: 4 p.m.

RSVP online at Amanda Sherbondy at asherbondy@haaonline.org

aaa ad pg 17.qxp_Layout 1 11/16/18 3:53 PM Page 1

state of industry pg 18.qxp_Layout 1 11/16/18 3:53 PM Page 1

State Industry of the

Join HAA and industry leaders as we assess the current and future state of Houstonâ&#x20AC;&#x2122;s multifamily market. Topics will include the latest Harvey-related issues, recent economic trends, job growth, forecasts, rental rate and occupancy trends, new construction developments, technology, marketing trends and much more.

State of the Industry Breakfast Tuesday, January 22 Breakfast and Registration: 7:30 a.m. to 8:30 a.m. Program: 8:30 a.m. to 10 a.m. Location: Omni Houston Hotel, 4 Riverway Program cost: $99/person if prepaid with a credit card; $125/person if invoiced See www.haaonline.org for more information.

Sponsored by Gemstar Construction Development Inc. and Texscape Services

Educ pg 19, 27.qxp_Layout 1 11/16/18 3:54 PM Page 1

Upcoming Education

DECEMBER CAPS: Client Services & Stakeholder Relations Monday, December 3 8:30 a.m. to 4 p.m. Program fee: $1,245 Sponsored by Earthworks Inc. Work with property owners to clarify ownership goals; Identify and understand key parts of the management agreement that establish the management company’s responsibilities and obligations; Create regular owner’s reports to keep the property owner informed of the status of the property; Recognize the ways in which lenders, regulatory agencies and local, state and federal laws affect the management of multifamily housing properties; Coach your on-site team to provide a safe, habitable living environment for residents, while remaining in compliance with Fair Housing laws; Ask yourself the questions that lead to ethical decision making. CAPS: Investment Management Tuesday, December 4 8:30 a.m. to 4 p.m. Sponsored by Fidus Construction Services View property management from the perspective of a property owner with a significant investment to protect; Recognize different types of mortgages and sources of financing and the implications of each on the property’s debt service and reporting obligation; Lead onsite teams through the annual budgeting process; Work with site teams to monitor property

SCHEDULE AND FEES

From the HAA EDUCATION DEPARTMENT

financial performance, identify budget variances, key trends and opportunities for improvement; Recognize different methods for determining a property’s value, and identify ways you can affect that property value. CAPS: Improving Asset Performance Wednesday, December 5 8:30 a.m. to 4 p.m. Sponsored by Presto Maintenance Supply Investigate an underperforming property to find the sources of the problem; Use key performance indicators to get a full picture of a property’s performance; Understand how key performance indicators relate to each other; Effectively weigh the benefits of increasing income and reducing expenses; Identify solutions to common property performance problems. CAPS: Asset Evaluation Thursday, December 6 8:30 a.m. to 4 p.m. Sponsored by Redevelopment Services Identify the factors that affect the property ownership life cycle and understand the CAPS role in shaping that life cycle; Assess legal, financial and safety risks as part of the due diligence process; Perform the necessary components of due diligence (or lead others in doing so), including physical inspections and analysis of a property’s operational, commercial and financial health; Report your findings to the property owner (or potential property owner),

are subject to change without prior notification. Notice of cancellation is required two days in advance to receive a refund, less a $25 administrative fee. Seats are guaranteed on a first-come, first-served basis when payment and registration are received in advance of the program. Unless otherwise indicated, courses are held in either the Camden and Michael Stevens Interests Room or the Direct Energy and Liberty Personnel & Executive Search Room at the Dinerstein Reed Prokop Education Center, 4810 Westway Park Blvd. on the second floor of the HAA Office www.haaonline.org

along with ramifications and recommended solutions; Manage the smooth transition of a property from one owner to another; Advise owners on the feasibility of new developments; Advise owners on renovation, disposition or refinancing of existing properties. IROC Breakfast Friday, December 7 7:30 a.m. to 10 a.m. Program fee: $25 per nonmember Sponsored by Texas Apartment Pool Services The Independent Rental Owners' Connection (IROC) offers customized education and networking programs just for you! This month's topic: TBA CAPS: Contemporary Issues in Multifamily Housing Friday, December 7 8:30 a.m. to 1 p.m. Be familiar with the current issues affecting multifamily housing property management. CAPS: Talent Management Friday, December 7 1 p.m. to 4 p.m. Sponsored by ProMaxima Fitness Maintain open and productive communication with on-site teams, even when they are geographically distant from you; Manage team members who may have more expertise than you do; Understand the role you play in retaining valuable, high-performing team members. Ensure that your site team recruits qualified candidates in a legally compliant manner.

Ensure that your site team members: Are sufficiently trained and integrated into the team; Function well as a team; Receive the mentoring, coaching, and feedback they need to grow as professionals; Are treated in a manner that is both fair and dignified should discipline or separation become necessary; Manage site teams during a property sale, whether you are on the seller’s side or the buyer’s side. HAA NEXT: Santa Bar Crawl Thursday, December 13 6:30 p.m. to 9 p.m. Location: TBD Sponsored by Earthworks Inc. and HD Supply ‘Tis the season for holiday fun. Join HAA young professionals ages 35 and under for a FREE festive night out. Whether you make some new friends or reconnect with those you've missed all year, it's sure to be a memorable night you won't want to miss. More details are to come. Visit www.haaonline.org for updates.

JANUARY Leasing 101 (Day and a half) Tuesday, January 15 8:30 a.m. to 4 p.m. Program fee: $75 prior to January 14; $85 An in-depth introduction to the apartment industry for new leasing professionals as well as those individuals looking to learn more about the industry as a career. This one-day program covers topics / See Education, Page 27

Building. Seating is limited. You must pre-register. For more information and to register, go online at www.haaonline.org. Notice to Attendees: All pre-registered no-shows will be billed. For admittance into HAA/HAF events, payments will be required at the door if not received prior to the event. Start times listed above include a 30-minute registration period. Notice of cancellation is required two days prior to the event for a refund, less a $15 administrative fee. December 2018

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DECEMBER S M T W T

Calendar HAA Education, Events and Meetings SCHEDULE

2 3 4 5 6 7 9 10 11 12 13 14 16 17 18 19 20 21 23 24 25 26 27 28 30 31

S 1 8 15 22 29

JANUARY S M T 1 6 7 8 13 14 15 20 21 22 27 28 29

W 2 9 16 23 30

T 3 10 17 24 31

F 4 11 18 25

S 5 12 19 26

DECEMBER 3

CAPS: Client Services & Stakeholder Relations Monday, December 3 8:30 a.m. to 4 p.m. Sponsored by Earthworks Inc.

CAPS: Asset Evaluation Thursday, December 6 8:30 a.m. to 4 p.m. Sponsored by Redevelopment Services

CAPS: Talent Management Friday, December 7 1 p.m. to 4 p.m. Sponsored by ProMaxima Fitness

CAPS: Investment Management Tuesday, December 4 8:30 a.m. to 4 p.m. Sponsored by Fidus Construction Services

IROC Breakfast Friday, December 7 7:30 a.m. to 10 a.m. Sponsored by Texas Apartment Pool Services

HAAPAC Luncheon Tuesday, December 11 11:30 a.m. to 1 p.m. Contact Alpa at apatel@haaonline.org for details. Sponsored by ApartmentData.com

CAPS: Contemporary Issues in Multifamily Housing Friday, December 7 8:30 a.m. to 1 p.m.

HAA NEXT: Santa Bar Crawl Thursday, December 13 6:30 p.m. to 9 p.m. Location: TBD ‘Tis the season for holiday fun. Join HAA young professionals ages 35 and under for a FREE festive night out. Whether you make some new friends or reconnect with those you've missed all year, it's sure to be a memorable night you won't want to miss. More details are to come. Visit www.haaonline.org for updates. Sponsored by Earthworks Inc. and HD Supply

CAPS: Improving Asset Performance Wednesday, December 5 8:30 a.m. to 4 p.m. Sponsored by Presto Maintenance Supply Food Drive Drop Off Wednesday, December 5 By Noon Camp Construction, 15139 S. Post Oak Road 77053 or Cotton Commercial, 3600 Brittmoore Road, Suite No. 190, 77043

Holiday Luncheon: Harris County Friday, December 7 11 a.m. to 1 p.m. Maggianno’s Little Italy 2019 Post Oak Blvd., 77056. Due to limited seating, this meeting is open only to on-site personnel. To RSVP, please contact Alpa at apatel@haaonline.org for details.

Houston Apartment Foundation Volunteer Appreciation Tuesday, December 11 5 p.m. to 7 p.m. Bowl and Barrel Houston 797 Sorella Court, 77024 By invitation only. HAA Executive Leadership Holiday Dinner Tuesday, December 11 7 p.m. to 9:30 p.m. Masraff’s 1753 Post Oak Blvd., 77056 By invitation only.

24-25, 31 Offices Closed Monday, December 24 through Tuesday, December 25 in observance of Christmas Eve and Christmas Day. The HAA offices will also be closed on Monday, December 31 in observance of New Year’s Eve.

Go Getters & Ambassador ONE Society Happy Hour Wednesday, December 5 3:30 p.m. to 5:30 p.m. Christian’s Tailgate Bar & Grill 2820 White Oak Drive, 77007 Contact Amanda at asherbondy@haaonline.org for details. Sponsored by AAA Plumbers and Hire Priority Staffing & Executive Search

Join the HAA Food Drive for people and pets HAA is asking all members to collect food, for both people and pets, to donate to the Houston Food Bank and The Rescue Bank. HAA held its first food drive in 1983, and the Houston Food Bank lists HAA as one of the top 25 donors to the organization. If your property or company plans on a community effort this holiday season, why not collect food for displaced residents and help us make HAA and the apartment industry the largest contributor in the city? Don’t forget our four-legged friends, too! Drop off the food at one of the following locations by noon on December 5: Camp Construction, 15139 S. Post Oak Road 77053 or Cotton Commercial, 3600 Brittmoore Road, Suite No. 190, 77043

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Please note that dates and times are subject to change. Check the calendars at www.haaonline.org for the most up-to-date information.

JANUARY 1

Offices Closed Tuesday, January 1 in observance of New Year’s Day.

Leasing 101 (Day and a half) Tuesday, January 15 8:30 a.m. to 4 p.m. The Woodlands Region Meeting Wednesday, January 16 11:30 a.m. to 1 p.m. The HAA Outreach department is bringing HAA to you. More information to come. Contact the Outreach Department at outreach@haaonline.org for details.

2019 State of the Industry Breakfast Tuesday, January 22 7:30 a.m. to 10:30 a.m. Omni Houston Hotel 4 Riverway, 77056 Sponsored by Gemstar Construction Development and Texscape Services

Sponsorship Auction Thursday, January 31 3 p.m. to 5 p.m. FREE to all supplier partners Sponsoring an event in 2019 is a great way to gain recognition for your company. You have the opportunity to sponsor over 60 events. Drawings and proxy biddings will be available. If this will be your first time attending, arrive early at 2:30 p.m. for the Auction 101 session to learn how the auction works and to learn more about the events up for bid. Contact Amanda at asherbondy@haaonline.org or 713-595-0316 for more information. See Page 16 for details.

9 Resident Relations Committee A Wednesday, January 9 2 p.m. New Supplier Member Orientation Wednesday, January 9 3 p.m. Christian’s Tailgate Bar & Grill 2820 White Oak Drive, 77007 All new supplier members welcome. Contact Amanda at asherbondy@haaonline.org for details. Ambassador ONE Society Meeting Wednesday, January 9 4 p.m. to 5:30 p.m. Christian’s Tailgate Bar & Grill 2820 White Oak Drive, 77007 Contact Amanda at asherbondy@haaonline.org for details.

12 2019 Installation & New Year Gala presented by Camp Construction Services Saturday, January 12 7 p.m. Post Oak Hotel at Uptown 1600 West Loop South, 77027 See Page 6 for details. Presented by Camp Construction Services. Premier Sponsors: Century A/C Supply, Crestmark Construction Services, CORT Furniture and Maintenance Supply Headquarters

16 Montgomery County Region Meeting – Economic Update Wednesday, January 16 11:30 a.m. to 1 p.m. Contact the Outreach Department at outreach@haaonline.org for details.

17 HAA Open House Thursday, January 17 2:30 p.m. to 4:30 p.m. 4810 Westway Park Blvd., 77041 If you are a new HAA member or looking to get more involved, this event is for you. Meet the HAA staff, learn how you can get involved and familiarize yourself with how to maximize your membership. All members and prospective members are welcome.

23 Product Service Council Meeting Wednesday, January 23 9 :30 a.m. to 10:30 a.m. Contact Susan Hinkley at shinkley@ haaonline.org for details. HAAPAC Luncheon Wednesday, January 23 10 a.m. to 2 p.m. Contact Alpa at apatel@haaonline.org for details. Resident Relations Committee B Wednesday, January 23 2 p.m.

24 Katy Region Meeting Thursday, January 24 11:30 a.m. to 1 p.m. The HAA Outreach department is bringing HAA to you. More information to come. Contact the Outreach Department at outreach@haaonline.org for details. Board Meeting Thursday, January 24 4:30 p.m. Sponsored by Texscape Services

HAA open house | january 17 Get on the road to networking opportunities by driving to our house. New to HAA? Join us on Thursday, January 17 from 2:30 p.m. to 4:30 p.m. Meet the HAA staff and learn how to get involved and maximize your membership at the 2019 HAA Open House. HAA is YOUR association, and it’s #notjustaprettyform! This event is free for all owner and supplier attendees. All members are welcome to attend. Contact the Membership & Marketing Department for more information at members@haaonline.org.

UNLESS OTHERWISE NOTED, all events meet at our Dinerstein Reed Prokop Education Center, 4810 Westway Park Blvd., second floor, in either the Direct Energy and Liberty Personnel & Executive Search or the Camden and Michael Stevens Interests Room. Meetings located at the HAA Offices, 4810 Westway Park Blvd., first floor, will be held in the Redi Carpet and Winograd Families/Judwin Properties Conference Room. See www.haaonline.org for an interactive calendar. www.haaonline.org

December 2018

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Events Calendar 2019 HAA’s General Meetings and Events open to all members. JANUARY

JUNE

Installation Gala presented by Camp Construction Services – January 12 at The Post Oak Hotel #HAAGala $110 early/$130 regular | $1,100/$1,300 table of 10

Supplier Education Program – June 6 #HAASupplierEd Free for supplier members

Annual Open House – January 17 #HAAOpenHouse Free for all members

Honors Awards – June 13 at the Hilton Americas #HAAHonors $95 early/$115 regular | $950/$1,150 table of 10

Sponsorship Auction – January 31 #HAAAuction Free for supplier members

Sponsorship Auction – June 20 #HAAAuction Free for supplier members

State of the Industry Breakfast – January 22 #HAASOI $99

JULY

FEBRUARY

Bowling Tournament – July 12 at Copperfield Bowl #HAABowl $300 team/$30 spectator

Supplier Education Program – February 7 #HAASupplierEd Free for supplier members

MARCH Volleyball Tournament – March 8 at Houston Sportsplex #HAAVBall $300 team/$35 spectator Maintenance Mania – March 28 at the Sam Houston Race Park #MaintMania $65 competitor/$55 spectator Go-Getters Happy Hour – TBA at location TBA For New Members and Recruiters

APRIL Spring HAA Political Action Committee Fundraiser – April 18 at location TBA #HAAPAC

MAY Sports Challenge – May 10 at Houston Sportsplex #HAAAllStars $20/spectator/$400 team HAA Education Conference & Expo – May 16 at NRG Center #HAAExpo Expo only is FREE to attend for owner/management members. Non-exhibiting suppliers not admitted. Education Conference $175; $135 early bird Booth prices for supplier members start at $980 *Exhibitors only

Go-Getters Happy Hour – TBA at location TBA For New Members and Recruiters

AUGUST Business Exchange – August 8 #HAABizX For suppliers: $350 per person for first two per company/$375 for third person

SEPTEMBER HAA Hall of Fame/Lifetime Achievement Award Event – TBA at location TBA #HAAHallofFame $55 early/$75 regular Go-Getters Happy Hour – TBA at location TBA For New Members and Recruiters

OCTOBER Supplier Education Program – October 10 #HAASupplierEd Free for supplier members Chili Fest – October 26 at location TBA #HAAChili Dinerstein Golf Tournament – TBA at location TBA #HAAGolf $720 per foursome. Two owner/management and two suppliers per team.

NOVEMBER Annual Business Meeting – November 21 at location TBA #HAAABM $65 early/$85 regular | $650/$850 table of 10

MARK YOUR CALENDARS for these fabulous

DECEMBER

networking and professional development events in 2018. Please note that dates and prices are subject to change. Check the calendar pages at www.haaonline.org for the most up-todate information and registration links, or call 713-595-0300.

Go-Getters Happy Hour – TBA at location TBA For New Members and Recruiters

educ center ad pg 23.qxp_Layout 1 11/16/18 3:57 PM Page 1

Need Meeting Space? The Houston Apartment Foundation Dinerstein Reed Prokop Education Center is here for you.

The Direct Energy LP and Liberty Personnel & Executive Search Computer Lab seats 24 and is fully equipped with computers and a sympodium system, including an electronic dry erase board and collaboration tool.

The Dinerstein Reed Prokop Education Center is located on the second floor of the HAA/HAF facility, 4810 Westway Park Blvd. in the Westway Park Development at Clay Road and Sam Houston Parkway, a premier location with easy access for members and their employees.

Available features for each room include: • Podiums • Ceiling-mounted LCD projectors • Automated projection screens • DVD/VCR with direct projection • Fully functional sound systems • Hand-held microphones or lavalier microphones • Wireless internet access • Kitchen facilities And much more…

Keep the education center in mind when your company is in need of a facility for your next meeting or employee training. The center is available for rental to members and is the perfect venue for budget meetings, planning sessions and more. For more information, contact Marie Garza at 713-595-0306, e-mail mgarza@haaonline.org or visit us online at www.haaonline.org.

The Michael Stevens Interests and Camden Room can be divided into two training rooms, each seating 60 to 72 classroom-style, 102 to 112 theatre-style or 80 in rounds. The entire space will seat 120 classroom style or 200 theater style. Other table arrangements are also available. Call for more information.

credentials volunteers pg 24.qxp_Layout 1 11/16/18 3:58 PM Page 1

Congratulations, 2018 National Apartment Association Credential Holders! Frank Addivinola, CAM William Anthony, CAM Tim Archuleta, CAM Nathan Baker, CAM Joyce Becker, CAM Gary Bhagwandin, CAM Brittany Breaux, CAM Elvia Bustos, CAM Ashleigh Childs, CAM Cori Colley, CAM Stephanie Coronado, CAM Christopher Cunningham, CAM Tami Curry, CAM Brittany Davis, CAM Aimee Drake, CAM Rachael Edgerly, CAM Alma Enriquez, CAM Laura Espinosa, CAM Peter Fain, CAM Lauren Forrest, CAM Jeff Forshee, CAM Sanjuanita Fuentes, CAM Lucerito Garcia, CAM Elizabeth Gonzalez, CAM Kevin Hartman, CAM Stacey Hitchcock, CAM Naeemah Houston, CAM Hillary Huber, CAM Ash Hussain, CAM Celia Jordan, CAM Samantha Koenig, CAM John Lam, CAM Lori Latham, CAM Brittnie Lawhon Gardner, CAM Candra Lessing, CAM Linda Lopez, CAM April Lozano, CAM Patrick Magnuson, CAM Jimmie Malone, CAM Jessica Mercado, CAM Sherrie Michalak, CAM

Amber Miller, CAM Hillary Neal, CAM Samuel Nelson, CAM Oscar Pacheco, CAM Uyen Pham, CAM Gisela Ramirez, CAM Chris Rohmer, CAM Jamee Saenz, CAM Dominique Sauls, CAM Sameera Sidik, CAM Candace Smith, CAM Dasia Spicer, CAM Laramie Stapp, CAM Trevor Stroud, CAM Tom Tran, CAM Amber Tristan, CAM John David Vasquez, CAM Hattie Washington, CAM Jessica Wingo, CAM Karen Zuckero, CAM Juan Zuniga, CAM Manuel Alvarez, CAMT Appleton, CAMT Moses Campos, CAMT Alexis Chavez, CAMT Steven Dominguez, CAMT Sergio Figueroa, CAMT Jeff Forshee, CAMT Mark Friese, CAMT Victor Hernandez, CAMT Jose Jordan, CAMT Amy Long, CAMT Robert Lopes, CAMT Timothy Love, CAMT Robert Marquez, CAMT Osrick Mitchell, CAMT Alex Quezada, CAMT Roberto Ramirez, CAMT Jake Scruggs, CAMT James Smith, CAMT Jimmy Vu, CAMT

Richard Wilkerson, CAMT Martin Yanez, CAMT Stacey Lastovica, CAPS Omar Ramirez, CAPS Shaun Callaway, CAS Arely Pena, CAS Alexa Ramey, CAS Jennifer Ramos, CAS Shannon Russell, CAS Shefali Aggarwal, IROP Angie Barajas, IROP Johnnie Buchanan, IROP Helen Casares, IROP Beth Davis, IROP James Davis, IROP Jennifer Dawson, IROP Donald Dawson, IROP Teressa Doss, IROP Peter Fain, IROP Laura Fowler, IROP Andrew Gillott, IROP Chela Gillott, IROP Tim Girgenti, IROP Rafael Gonzalez, IROP Stephanie Graves, IROP Janis Guerrero, IROP Valerie Gutierrez, IROP Carolyn Gutierrez, IROP Lisa Hammond, IROP Andrew Heber, IROP Priscilla Hill, IROP Corbin Hill, IROP Bessy John, IROP Caroline Kane, IROP David Kronman, IROP Karen Lambert, IROP Jacques Lesage, IROP Robert Lopes, IROP Pat McCarley, IROP Greg Meech, IROP Elitza Meyer, IROP

Karen Miller, IROP Bryan Miller, IROP Ahmed Momin, IROP Peter Ngo, IROP Roxanne Olvera, IROP Mona Preston, IROP Suzanne M Raynor, IROP Marilyn Rivero, IROP Henrik Romland, IROP Reagan Singer, IROP Bradford Thompson, IROP Wesley Thwing, IROP Stan Warren, IROP Matt Wolfram, IROP Amber Avery, NALP Claudia Avilez, NALP Kiahna Bettis, NALP Charlene Carbajal, NALP Ashley Chavez, NALP Karla Cortez, NALP David Dill, NALP Angela Dunham, NALP Rachael Edgerly, NALP Ralf El-Sayed, NALP Jessica Fazli, NALP Deborah Ferro, NALP Sasha Grant, NALP Cailei Griego, NALP Brittani Jones, NALP Michael Laniak, NALP Kemely Montero, NALP Coreie Mosley, NALP Laura Pratt, NALP Miguel Ramos, NALP Kenneth Robinson, NALP Mark Ruiz, NALP AJ Sanchez, NALP Taylor Toran, NALP Aaron Twyman, NALP Mallory Vasquez, NALP

Thank You Volunteer Instructors!

Betsy Marshall Allied Orion

Lindsay Torres Knightvest

Robert Lopes Relik Realty

Chavonne LeFleur Greystar

Lori Lindley Greystar

Sara Newman Allied Orion

Vi Lewis

Cliff LeJeune Better NOI

Marlo Simmons Valet Living

Stephanie Graves Q10 Property Advisors

Karen Nelsen ALN

Jennifer Ramos Outdoor Elements

Mindy Price J Turner Research

Tanya Dusek Davis Development

Stephanie Naylor Flooring Warehouse

Kelly Suess Greystar

Quintina Willis Venterra

Terri Clifton Better World Properties

Stephen Webster RentPath

Kristen Marie Settles Relik Realty

Rebecca Shirley Grayco

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Theresa Lamar Maintenance Supply Headquarters

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On the Road with HAA

Leasing 101 Thursday, October 11 at the Lake Jackson Civic Center Sponsored by 1 ALN Apartment Data Leasing 101 hit the road again to Lake Jackson, with instructors Lindsay Torres and Howard Bookstaff. A great group of students learned more about the apartment industry.

HAA IS REACHING OUT to better serve our members by bringing targeted networking and educational events to different parts of our 12-county service area. Contact Outreach Manager Lauren Turner at lturner@haaonline.org to sign up for these FREE, management-only events where you can learn about issues affecting your area and network with your fellow managers. Want to host an event? We are looking for member properties to host a Region meeting. Contact lturner@haaonline.org. 26

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Education, continued from Page 19 including: greeting and qualifying the customer; executing the lease contract; overcoming objections and closing techniques; an overview of Fair Housing and more. Students who complete the course will receive a certificate, as well as a listing of placement agencies and management companies that are members of HAA. If you are not working for a member company of HAA, download the registration form at http://www.haaonline.org/images/program s/pdf/leasing101_2018.pdf. 2019 State of the Industry Breakfast Tuesday, January 22 7:30 a.m. to 10:30 a.m. Program fee: $99 per person if prepaid; $125 per person if invoiced Omni Houston Hotel 4 Riverway, 77056 Sponsored by Gemstar Construction Development and Texscape Services Industry experts will take the stage to discuss the Houston economy, job growth, rental rates, occupancy trends, new construction developments, technology, marketing trends, forecasts and more. See Page 18 for details.

No credit card or HAA login? No problem! We do not accept registrations over the phone. However, if you do not have access to a credit card, just use our â&#x20AC;&#x153;Express Registrationâ&#x20AC;? page (no login required) at www.haaonline.org/expresregistration. This simple form generates an email to us with your registration request. This is a binding transaction, and all cancellation policies still apply. NOTE: For your own individual HAA login ID and password, please email us at ebreg@haaonline.org.

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On the Scene with ACES ACES Luncheon Friday, September 28 at III Forks Sponsored by 1 Belfor Property Restoration and TPI Construction & Painting The Apartment Community Executives & Supervisors lunch featured a brainstorming session with topic leaders Clay Hicks, Betsy Marshall, Monica Gracia, Rebecca Shirley and Stephanie Graves.

THE APARTMENT COMMUNITY EXECUTIVES and Supervisors group was created to offer executive-level members a way to network and exchange information and knowledge. It offers them an opportunity for educational programs and presentations. ACES is intended for those on the property management side of HAA membership in an executive or leadership role. For more on ACES, see online at www.haaonline.org. 28

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Houston’s economic prospects are improving as repairs from Hurricane Harvey continue and Houston grows. By

BRUCE MCCLENNY, ApartmentData.com

he memory of Hurricane Harvey still lingers in Houston. For some, it is more than a memory as several apartment communities are still dealing with the damage wrought by Harvey. Immediately after the storm, 215 properties reported damage to approximately 16,000 units. Damage was so severe at 12 of these properties, or about 3,000 units, that they were deemed uninhabitable, totally closed down and taken offline. Here is a breakdown of the conditions of some apartment communities that are still dealing with the remnants of Harvey as of the end of September 2018: One community had plans in place to be demolished and redeveloped; four properties hadn’t started to begin leasing again; three had just started to lease and, at the time, had occupancies under 10 percent; and four communities were leasing with occupancies ranging from 21 to 66 percent. Of the 16,000 damaged units, excluding the estimated 3,000 units that were taken offline, there were around 20 properties with 2,000 units that remain as damaged as of press time. Pre and Post Harvey Economy and Market Performance The health of Houston’s apartment market is very connected or correlated to the local economy or, more specifically, job growth. The graph below captures overall occupancy levels and effective rent prices since January of 2016. Houston’s economy in 2016 stands out as the bottom or trough of the downturn that began in late 2014 when oil prices started to freefall. The price for a barrel of West Texas Intermediate (WTI) crude oil hit its low point at $26 per barrel in February, and oil producers quickly responded to the drop in oil prices by shutting down rigs. In September of 2014, the Baker Hughes Rig Count was 1,930. By May of 2016, the rig count plummeted to 404. In addition, the drop in oil prices initiated a shake-out in energy employment, which resulted in the loss of over 86,000 jobs over the course of 2015 and 2016. Houston recorded a net job loss of -2,500 in 2015 and 2,200 in 2016. Remarkably, job growth in other sectors, such as, retail, healthcare, schools, hotels and restaurants, helped offset the drop in energy employment. As Houston’s economy was folding, multifamily developers were all-in. Prior to the drop in oil prices, developers were encouraged by five straight years of strong job growth from 2010 through 2014. With such a stimulus, the local development engine delivered 20,300 units in 2015 and 21,300 units in 2016. The poor timing of these deliveries was met with a mere 4,600 units of absorption in 2016. With supply overwhelming demand by a factor of almost 5-to-1 in 2016, overall occupancy slid from 90.3 percent in January of 2016 to 88.1 percent in February of 2017. Rent in January of 2016 was $969 and then fell to $967 by December of 2016. With Houston hosting the Super Bowl LI, last year started off with great economic promise, and it did not disappoint. The Super Bowl generated a net impact of $347 million for the local Houston economy, according to

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Images Â© Andrii Yalanskyi and Zazamaza | Dreamstime.com

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Mark e Rebu t ilds

The

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Rockport Analytics. By mid year, Houston’s job growth climbed to 28,300 jobs, representing an enormous turnaround from the first halves of the previous two years when 2015’s mid-year job performance was at a loss of 11,800 jobs and 2016’s was at a loss of 14,000. In response to the Super Bowl and the much improved job growth, absorption for the first half of 2017 soared to 12,516 units, which moved overall occupancy from its low-point in February of 88.1 percent to 88.9 percent in June. July’s job growth erased most all of the year’s gains, and this is not uncommon for any July when school employment dips for summer break. The market, not phased by July’s regular correction to job growth, saw overall average rent push forward by $15 from $968 in January to $983 in July. Hurricane Harvey arrived at the end of August and muddled absorption by creating vacant, damaged units and sparking a leasing frenzy from homeowners who were forced to abandon their damaged homes. The sudden drop in occupancy in August was the result of -6,541 units of absorption, which is a net number derived from approximately 16,000 damaged units and about 10,000 leased units by homeowner evacuees. From September through November, Harvey kept influencing fundamentals as family and friends accomodations ended and hyper-leasing continued to drive occupancy and rent higher. By the end of November, Harvey’s impact advanced

rent by $30 to $1,014 and moved occupancy 1.7 percentage points higher to 89.4 percent. The market took a small step backward in December as rent settled to $1,010 while occupancy remained flat at 89.4 percent. At the end of 2017, the overall average rent level for the year was an increase of $42. Of that increase, $16 was pre-Harvey and $26 was post-Harvey.

outstanding absorption of 9,199 units through September. This level of absorption is significantly greater than the new construction deliveries of 5,403 units. Interest in investing in new construction development in Houston evaporated soon after the price of oil started falling, which has caused such a low number of deliveries. This supply and demand imbalance moved the occupancy needle from 89.3 percent in January to 90 percent in September. This marks the first time overall occupancy reached or exceeded 90.0 percent since March of 2016. Overall occupancy at 90.0 percent represents the threshold where pricing power begins to tilt in favor of apartment owners. Overall effective rent moved from $1,010 per month at the beginning of the year to $1,030 per month at the end of the 3rd quarter.

The Year in Review – 2018 In 2018, Houston started to see broader econommic vitality return as the oil industry was regaining its stregnth. To start the year off, the price for WTI crude oil began at $60.37 per barrel and traded as high as $77.41. The average closing price for WTI in 2018 has been $66.60 per barrel. Prices in the $60 range allow producers to make a profit, and it drove the domestic rig count to 1,067 for the week ending Oct. 19. The 12-month trailing job growth displayed 128,700 jobs at of the end of September. This is a fantastic number, and it stands as the highest 12month total ever recorded for Houston since 1990 when the Labor Department started tracking job growth with this methodlogy. It should be noted that this record job growth contains the 4th quarter of 2017 and happens to be the best 4th quarter on record, thanks to Harvey, coming in at 66,200 jobs. This means 62,500 jobs have already been created in 2018. This job growth has generated

How the Classes Add Up The overall average statistics for rent and occupancy are an aggregation of the performances for each class of apartment properties. Classes are determined by a bell curve distribution of market rates. The table on the next page shows how overall market performance is mixed and how classes differ in rates and trends. In addition, new construction supply for 2017 and 2018, or properties in lease-up, have been separated out to provide a stabilized look at Class A and Class B.

Houston Effective Rent and Overall Occupancy

90.5

$1,040

$1,030 90.0

$1,020

$1,010

89.5

$1,000 89.0 $990

$980

88.5

$970 88.0

Sep 2018

Aug 2018

Jul 2018

Jun 2018

May 2018

Apr 2018

Mar 2018

Feb 2018

Jan 2018

Nov 2017

Dec 2017

Oct 2017

Sep 2017

Aug 2017

Jul 2017

Jun 2017

May 2017

Apr 2017

Mar 2017

Feb 2017

Jan 2017

Dec 2016

Nov 2016

Oct 2016

Sep 2016

Aug 2016

Jul 2016

Jun 2016

May 2016

Apr 2016

Mar 2016

Feb 2016

Jan 2016

$960

38 32

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2017 Construction A total of 13,934 units, or 58 properties, were delivered in 2017. These properties are diverse in product type and geography. Six high-rises, seven affordable housing communities and four seniors-only properties entered the market. Geographically, 22 urban/infill or Inner Loop properties and 36 suburban properties entered the market. Effective rent per property ranged from $746 per month (85 cents per square feet) for an affordable type to over $3,800 per month ($2.63 per square feet) for a high-rise. As a group, the apartment communities delivered in 2017 represent an occupancy of 76.5 percent. This occupancy level is somewhat low considering the length of time this group of properties have been leasing. Further digging reveals a very mixed occupancy scenario. Of the 58 properties, 22 surpassed the 90 percent occupied threshold. Despite this stability within the group, other breakouts show occupancy weakness. For example, Inner Loop apartment communities were 71 percent occupied and suburban communities were 82 percent occupied. Due to this lingering weakness, hefty concessions persisted. There were two properties offering three-months free rent specials, two properties offering two and a half months and 14 properties offering two months free. Rent trends for these properties could not be calculated because of the number of units entering the market during the time period being analyzed. 2018 Construction – Lease-Ups A total of 5,404 units, or 24 properties, make up the supply that has been delivered in 2018. Similar to 2017, the product type and geography of

these properties are so diverse that it makes the pricing of this group very homogenized or mixed. There have been two affordable housing communities, one high-rise apartment community and one seniors-only property. As far as location, nine urban/infill or Inner Loop properties and fifteen suburban properties have entered the market. The Inner Loop properties have average rental rates that range between $1.90 and $2.00 per square foot. The suburban properties have rental rates that range from $1.30 to $1.40 per square foot. The single high-rise mentioned has an overage average rental rate of $2.62 per square foot, and one of the affordable housing products has an average rate of about $0.85 per square foot. Again, similar to 2017, rent trends for these properties cannot be calculated due to the continually increasing number and variety of new units being introduced over the time period being analyzed. The overall occupancy level for these lease-ups is low at 22.6 percent, and the absorption over the last 12 months equals 1,170 units. Competition is still intense in this group of properties for apartment owners as evidenced by the level of concessions offered – 18 of the 24 properties are offering concessions. To quantify the most aggressive specials: one property is offering a three-month free rent special, five properties are offering twomonth specials, four properties are offering oneand-a-half-month, and eight properties are offering one-month. Stabilized Class A Without New Construction In general, Class A represents the highestpriced properties based on their overall average market rate. As mentioned above, a bell curve dis-

tribution method determines which properties make the A grade. If we take new construction units out of Class A, it provides a stabilized occupancy picture. Class A’s occupancy was 87.8 percent before 2018 and 2017 construction units are filtered out. After the adjustment is made, Class A sits at 91.7 percent. A year ago, this group was at 88.6 percent for occupancy. Positive absorption of 5,045 units over the last 12 months fueled this 3.1 percentage point leap in occupancy. As a result of this rally in occupancy, rents moved forward by $25 over the last 12 months. The last time Class A’s occupancy was over 91 percent was November 2012. Since that time, several significant events transpired to impact the apartment market. The fracking boom propelled job growth from 2011 through 2014, and this provided strong market support and growth. It also brought new construction units. The fracking bust came late in 2014, with the collapse of oil prices following. Job growth flattened, and the apartment market suffered in 2015 and 2016. Hurricane Harvey blew through Houston, elevating rent and occupancy levels, as well as bringing an enormous number of renters that were somewhat transient. As all of these events played out, the stabilized Class A group of properties were most directly affected. From this group’s 91 percent occupancy perch back in 2012, the previously mentioned boom-bust span of time produced a situation where occupancy bottomed at 76.5 percent and rent peaked at $1,538 per month, simultaneously, in April 2016. Over the next 12 months, occupancy would begin to slowly improve while rent precipitously collapsed whereby occupancy

Classification Analysis $/sq ft

3-Month Trend

Absorption (Units) 12 Months 3 Months

Supply

2018 Construction

5,404

22.6%

$1.66

$1,527

–

1,170

804

2017 Construction

13,934

76.5%

$1.67

$1,562

–

7,008

1,331

Class A (w/o 17+ const.)

131,540

91.7%

$1.58

$1,494

1.5%

-0.8%

5,045

1,136

Class B (w/o 17+ const.)

248,744

90.9%

$1.15

$1,004

3.1%

-1.2%

3,389

-247

Class C

200,694

90.7%

$0.94

$795

2.4%

-1.5%

1,816

-758

Class D

45,743

88.4%

$0.75

$644

0.8%

-0.6%

622

-25

Overall

646,059

90.0%

$1.17

$1,030

3.0%

-0.6%

19,050

2,241

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Occupancy

Effective Rent $/month 12-Month Trend

As of Sept 30, 2018

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moved to 82.1 percent and rent rested at $1,405 per month at the end of April 2017. In August of 2017, Harvey launched occupancy and rent to new levels. By November, occupancy reached 90.3 percent and rent was registered at $1,485. Over the course of 2018, occupancy and rent continued to advance to 91.7 percent and rent climbed to $1,494. Class B Without New Construction Class B represents the second-tier of highestpriced properties. The bell curve distribution of market rate creates a Class B that represents 37 percent of the entire market supply. Class Bâ&#x20AC;&#x2122;s occupancy topped out at 94.2 percent back in June of 2015. As is customary with a peak in occupancy, rent also followed with a high point of $972 per month. As the fracking boom turned to bust, fundamentals began to deteriorate and occupancy dropped to 91.1 percent and rent sank to $946 per month by January 2017. Just prior to Harvey in July, occupancy advanced to 91.7 percent and rent moved forward as well to $958 per month. Harvey imposed 6,212 damaged units on Class B, and also created about 1,390 units of leasing resulting in a net drop in absorption of -

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4,822 units. These actions brought occupancy down to 89.8 percent by the end of September. Harvey-related leasing continued during the 4th quarter as victims moved from the accommodations of family and friends. Fourth quarter absorption of +3,076 units carried occupancy up to 91.1 percent. The overall average monthly rent for Class B ended 2017 at $986, which made the rent gain $40 for the year. Prior to Harvey, rent advanced by $12 and then an additional bump of $28 occurred after Harvey. During 2018, rent has continued to grow to $1,004 but occupancy has slipped to 90.9 percent. Class C and Class D Class C represents 31 percent of the overall market supply. Occupancy-wise, Class C peaked at 93.7 percent back in June of 2015 when rent was $745 per month. Since then, a steady, persistent decline has plagued Class C up until February of 2017 when occupancy bottomed out at 91.4 percent. By July, occupancy moved forward to 91.6 percent. Harvey forced 6,182 damaged units on Class C and created 2,349 units of leasing, which created a net drop in absorption of -3,833 units. By the end of September, occupancy

dropped to 89.8 percent. Fourth quarter absorption of 2,134 units moved occupancy to 90.8 percent by year-end of 2017. Rent kicked off 2017 at $770, and by July rent advanced by $3 to $773. After Harvey, rent could only advance another $9 to end the year at $782. During 2018, occupancy bounced around, but it ended September where it started in January at 90.7 percent. Despite the flat occupancy performance, rent was able to advance by $10 to $795 per month. Class D experienced a similar occupancy scenario to Class C where occupancy peaked in June of 2015 at 91.4 percent. Occupancy, after sliding for the remainder of 2015 and all of 2016, began 2017 at 88.5 percent. Hurricane Harvey had no impact on Class D with occupancy ending the year lower at 87.3 percent. Rent was only able to add $6 in 2017 going from $637 to $643. During the first nine months of 2018, the rent average in Class D was extremely flat, moving only one dollar to $644 per month and occupancy moved ever so slightly to 88.4 percent. Finishing 2018 This article was written at of the end of the 3rd quarter. How 2018 will finish is of great interest

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to many market watchers, and it is unclear how it will play out. There are so many unanswered questions. How will absorption perform over the 4th quarter? Will this be a traditional 4th quarter with flat absorption? Or, is there pent-up negative absorption that was born in the 4th quarter of 2017 when 9,851 units of absorption was recorded? Were the leases behind all this super extra ordinary absorption signed with 12-month terms or have most of these leases already turned and will not be a 4th quarter issue? If 4th quarter 2017 leases have already turned and if those once homeowners have become longer term renters, the upcoming quarter will be more traditional with slow absorption and rent growth. This would be the best alternative. Otherwise, if there is elevated turnover related to homeowners that leased a year ago, then there will be pressure on the 3rd quarterâ&#x20AC;&#x2122;s occupancy level and the 12-month rent trend. As it stands now, the three-month annualized rent trend has turned slightly negative at 0.6 percent. If this trend continues through the 4th quarter, one can expect rent growth for 2018 to be between 1.5 and 2.0 percent. If absorption comes in neutral or flat over the 4th quarter, overall occupancy will dip to 89.7 percent as at least 2,000 more units come into supply.

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2019 Looking Ahead Houstonâ&#x20AC;&#x2122;s economic prospects are improving. Year-to-date job growth for the first nine months of 2018 registered 62,500 net new jobs. This level of job growth is great and has been the force behind the 9,199 units of absorption during 2018. A combination of job growth and absorption is the prescription the market needs for 2019. There are no recently updated forecasts for 2019 job growth as of press time. However, job growth in the range of 70,000 to 80,000 jobs for 2019 should be a reasonably safe estimate to use to calculate an absorption performance. Assuming a ratio that generates a unit of absorption from every five jobs, the above job growth estimate would produce an absorption performance of 14,000 to 16,000 units. As far as supply goes, 19,338 units were delivered in 2017 and 2018 that are 61 percent occupied. In addition, there are at least 3,000 units that could start leasing during the 4th quarter 2018. Further, there are approximately 10,000 units currently under construction that are set to deliver in 2019. These estimates set up a scenario where absorption of 14,000 to 16,000 units outpaces deliveries of around 13,000 units. In these situations, market conditions are more in favor of

apartment owners than residents, which allows concessions to ease and rent growth to return. Even though this is an overall, macro view, there will be a few pockets or submarkets where supply issues will persist. As an example, six properties, or almost 2,000 units, in the Energy Corridor were shut down due to Harvey and today are in various stages of leasing. Downtown has the distinction of having the highest rents by way of an abundance of high-rise products that are in lease-up. The Galleria-area has been a laggard, which is most probably due to road construction that will continue into 2019. By the end of 2019, apartment owners can anticipate occupancy reaching 90.5 percent and overall rent growth to hit around 3.5 to 4.0 percent. Bruce McClenny is president of ApartmentData.com. For more details, call 281-759-2200 or email bruce@apartmentdata.com.

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Good Works By

MORGAN TAYLOR, HAA Staff

ons eDonati IS Devic F A y lt a SMI Re

iles t “All Sm agemenonations n a M y ropert ack D Karya P s” Clear Backp No Gun

Greystar MS1 50

Greystar Bike MS

Greystar St. Jude s

n Houston, we take care of our own. We learned that last year when Hurricane Harvey destroyed many parts of our city, although, HAA members certainly do not wait until a natural disaster hits to make a difference. HAA members volunteer and/or fundraise year-round to make our communities better places to live. ABODE and the HAA staff are proud to showcase HAA’s members making Houston an even better place to live.

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December 2018

Karya Property Management In response to gun violence in schools, Karya Property Management donated clear backpacks to children who live at its 49 Texas-wide properties. According to the latest statistics, gun violence in the United States takes the lives of more than 2,700 teens and children and injures more than 14,500 every year. With a rising number of these incidents taking place in schools, clear backpacks have become a new safety measure. A number of school districts nationwide have started requiring

students to wear clear backpacks at all times. This mandatory change came about in the weeks following the Marjory Stoneman Douglas High School shooting in Parkland, Florida that killed 17 students and faculty members. Locally, the Cypress-Fairbanks Independent School District also adopted the clear backpack policy in July, which became effective this school year for students in sixth through 12th grade. “We recently witnessed the Santa Fe High School tragedy. It hit close to home, and because www.haaonline.org

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ncer Walk Rockstar Breast Ca SMI Realty Fall Festiva l

of the climate that has been developing across the country over the past years, we agreed we needed to help our community. Although a small part, we knew that incorporating clear backpacks to our annual school supply giveaway would help fulfill that void. No child should feel uneasiness or scared to go to school. If handing out over 5,000 clear backpacks can eliminate that in some small way, then we are on the right track for our communities," CEO and Managing Partner Swapnil Agarwal said. ParaWest Management As Houston continues to recover from Hurricane Harvey, ParaWest Management has volunteered for Houston Recovers, a Voluntary Organization Active in Disasters (VOADs) supported and created by the City of Houston. This group rebuilds homes for Houston residents who did not have insurance and/or the funds to repair their homes that were damaged by Harvey. Every Friday, five ParaWest employees spend the day at various Harvey-damaged homes to assist with HVAC, sheetrock, plumbing and carpentry installations. During its time volunteering for Houston Recovers, ParaWest Management has been able to renovate two homes for Houston residents. ParaWest Management is continuing to volunteer for Houston Recovers. ParaWest’s Holiday Hopes is designed to assist kids, some of who are amongst the neediest in our community. All of the students at Las Americas Newcomer School are newcomers to not only Houston but the United States. These children, many refugees, come from all over the world including Africa, Asia and Central America, and they come from over 65 countries and languages. For all these children and their families, this is a new start in a new country. Meaning, many still don’t have the basic necessities we take for granted every day. ParaWest employees adopted a classroom of 30 children and provided Christmas gifts from a list of items they requested. They delivered them to the kids at the school and participated in their Christmas party. www.haaonline.org

Veritas Equity Management Every year, Veritas Equity Management gathers children from its communities and puts on a Christmas recital at the Woodwind Lakes Health and Rehabilitation Center. The children bring hand-crafted ornaments for the patients, sing Christmas carols and provide snacks and a Christmas movie for the elderly residents. Veritas strives to do its part in bringing their community together. “We love seeing how the children from our communities help bring the spirit of Christmas to our neighbors at the (Woodwind Lakes Health and Rehabilitation) Center every December,” Veritas Executive Coordinator Brityn Maddox said. Greystar Every September, St. Jude Children’s Research Hospital asks for the support of communities nationwide to help end childhood cancer through a walk/run fundraiser during Childhood Cancer Awareness Month. Through this event, the hospital can raise funds for the children of St. Jude so that no family will ever have to pay for the care of their children. Greystar proudly returned as a national team for the St. Jude Walk/Run to End Childhood Cancer. Since 2010, Greystar has raised more than $2.7 million for St. Jude. “At Greystar, community is one of our pillars of excellence. When you think about St. Jude, you think children in the community, and childhood cancer impacts one in 285 children in our community. We support St. Jude because families never receive a bill for medical services, housing, food nor transportation. Our Houston office participates in the local St. Jude Walk to End Childhood Cancer every September, this year we surpassed our goal of $25,000 and raised $34,95. We want the St. Jude Children’s Research Hospital to continue to be a resource should our team members, residents, supplier partners or anyone in the community who needs the assistance,” Regional Property Manager Misty Currier said. Each year, nearly 75,000 cyclists ride together in Bike MS to change the world for people with Mul-

Verita s Nurs ing Ho me Vis it

me Veritas Nursing Ho

Visit

Rocks tar Tha nksgiv ing Vo luntee rs

ParaWest Reco very Houston Volunteers

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ol Drive Greystar Scho

ParaWest Holid ay Hopes

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December 2018

tiple Sclerosis. Bike MS Houston is the largest event in the Bike MS series, and this year Greystar was included in that number. Greystar set a record this year by raising a total of $172,338. The management company’s team included 55 riders, and it placed 14 for overall fundraising. In addition to Bike MS, Greystar participated in another biking charity called Bike Around the Bay, a benefit for the Galveston Bay Foundation. Greystar was able to raise $600 for the foundation. SMI Realty About 100 residents and children showed up for SMI Realty’s Fall Festival on Friday, Oct. 26 at Woodcreek of NW Crossing Apartments. This event was put on jointly by SMI Realty and The Urban Outreach Kids Club. There was music, face painting, piñatas, animal balloons, chili, a variety of pies and, of course, a pumpkin patch photo wall. Last October, Houston Police Department Officer Ronny Cortez was shot multiple times in the line of duty. Cortez, a 24-year veteran of the department, and 10-year veteran officer Jose Munoz were shot multiple times as they pursued burglary suspects through a southwest Houston neighborhood. Houston has watched Cortez’s

recovery story over the last year, and the city was elated when Cortez gained enough strength to stand on his own. Cortez is currently in a wheelchair, but he is determined to walk again, reads a www.abc13.com article from May. Cortez’s wife of 20 years, Sheri Cortez, never left his side during his recovery. As a volunteer for the Brays Oaks Management District’s Public Safety Committee, Sheri fundraised for Automated Fingerprint Identification System (AFIS) devices for safety purposes. These hand-held devices allow police officers to instantly and accurately identify individuals and maximize safety by automatically matching one or several unknown fingerprints against a database of fingerprints. Sheri’s fundraising efforts led to the purchase of three AFIS devices. SMI Realty’s Regional Director and Partner, Starla Turnbo, is a Brays Oaks Management District’s Board Member and serves on the public safety committee with Sheri. Turnbo stood before the board and asked them to match Sheri’s three devices. The board responded open-heartedly, and the Houston Police Department now owns six AFIS devices. / See Good Works, Page 73

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Education Opportunities with Hassle-Free Affordable Housing

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December 2018

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A new Houston-based organization is focused on promoting excellent education opportunities for children of low-income families while making it easier on housing providers. By

t’s easier than ever for property owners to accept residents who are participants of the Housing Choice Voucher (HCV) program thanks to NestQuest Houston, an organization that acts as the middleman, between the housing program and the property owner, putting NestQuest responsible for inspections, non-payment issues and unresponsive representatives. These challenges have prevented apartment owners and managers alike to welcome the idea of affordable housing at their communities, however, these issues are eliminated when properties use NestQuest. Founded in 2017, NestQuest is changing the experience of low-income housing programs for apartment owners and management companies. Houston Apartment Association members such as Greystar and Veritas Equity Management are already working with NestQuest. “Prior to Greystar, I worked compliance on low-income and subsidized housing communities (HUD 501c3 and Section 8 voucher programs). When I was approached about the NestQuest Houston program, I was hesitant due to my previous experience with lowincome housing programs and the clientele I dealt with in the past,” Greystar Community Manager Maria Gonzalez said. “NestQuest brings a refreshing and positive change to low-income housing programs in Houston. From day one of the leasing process, they have stayed in constant communication with our team and have not made a promise they can’t keep. NestQuest payments are timely, and their call to action should an issue arise is impeccable. I enjoy working with NestQuest and would definitely recommend the company. We’ve had such a great experience with the first NestQuest apartment home. We now have two NestQuest leases.” How NestQuest Works Housing affordability has long been a challenge for Houstonians living in poverty. There aren’t many options for low-income families

www.haaonline.org

ISABEL LOPEZ, NestQuest Houston, with MORGAN TAYLOR, HAA Staff

in Houston, and many factors must be considered when low-income families look for affordable housing, such as job locations, car ownership and school zones. Maybe a family can find an affordable apartment home, but is it in a neighborhood they like? Is it in a neighborhood with a good school district? Is it located in a neighborhood that allows the resident to commute to their job by bus? For HCV families with children who are in school, receiving a housing voucher may be the only opportunity to receive a better education. NestQuest was founded with the goal to assist participants of the voucher program to find suitable housing in areas zoned to high performing schools. NestQuest was designed to create access to neighborhoods with low crime, low poverty, and more importantly high performing schools. With evidence from research studies like that by Raj Chetty, a Harvard professor of economics, children from underprivileged backgrounds have shown to be more successful after being placed in stable environments with higher performing schools. When a family receives a housing voucher with 60 days to search for a new home, they are instructed on how to search for an apartment home, how much they qualify for and, more importantly, where the housing jurisdiction lies. Each family is tasked with searching for a home where they are expected to thrive, obtain financial independence and provide stability for their family. Although the voucher program is designed to allow the family or client the choice of their apartment home, in most cases the client or resident has very few options because of their low income. Typically, the type of housing available for these clients are in high poverty areas with high crime often containing neglected properties. In some cases, clients either give up their search or lose their voucher due to exhausting their allotted time. Clients also encounter apartment owners and properties that do not accept the housing

voucher. Many property owners are dissuaded from accepting the voucher because of previous negative experiences with housing clients or authorities, delays in payment or the documentation requirements by the housing authority. This is why NestQuest Houston is projected to be a gamechanger locally for lowincome families, property owners and the affordable housing arena. “Historically, we have never accepted affordable housing because of the complicated process and reporting requirements, however, with NestQuest acting as the gobetween, the process is quite smooth,” President of Veritas Equity Management John Boriack said. “We always desired to be able to offer housing to low-income residents but the hassles that typically came along with affordable housing programs didn’t make it a good business decision. Now with NestQuest being the go-between, we are happy to be able to offer our apartments that we are so proud of to residents who might not be able to afford a good home otherwise. A home is where a young person grows into the type of person he or she will be for the rest of their life, and we are ecstatic to be able to provide healthy, functional, clean and nurturing homes zoned to good schools for these families who may not have had access to this type of housing without NestQuest.” A NestQuest representative provides all the typical requirements necessary to lease an apartment home under a corporate lease agreement and ensure the apartment home meets the housing authority inspection requirements. These items are addressed between NestQuest and the housing authority to avoid any delay or disruption of the leaseup process with the owner. This arrangement allows the owner to begin collecting rent immediately. Since NestQuest is the primary lease holder, they are the responsible party for rent and any damages an apartment community would normally bill to their residents. / See NestQuest, Page 63

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On the Scene with the HAAPAC 1

HAA Political Action Committee Luncheon Thursday, October 25 at the HAF Dinerstein Reed Prokop Education Center Sponsored by 1 Outdoor Elements The HAAPAC luncheon featured a political consultant panel with speakers Marc Campos, Campos Communications; Jennifer Colon, Colon & Company; and Jennifer Naedler, Jennifer Naedler Consulting.

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On the Scene Photos by MARK HIEBERT, Hiebert Photography HAA 2018 Chili Fest Saturday, October 20 at the Humble Civic Center Thank you to our many generous sponsors: “Habanero” Top Sponsor Camp Construction Services HD Supply Hire Priority Staffing & Executive Search Multifamily Ancillary Group “Jalapeno” Sponsor American Technologies Inc. Church Foundation Repair CORT Furniture Crestmark Construction Services Earthworks Inc. Fidus Construction Services Ideal Towing McMahan’s Flooring Inc. Poolsure PPG Paints Redevelopment Services RK Builders Inc. The Liberty Group Valet Living

Best Chili Winners 1st Place – PPG Paints 2nd Place – Crestmark Construction Services 3rd Place – TriArc Living/Fast Forward Services Double Booth Winners 1st Place – Greystar/Camp Construction Services 2nd Place – Francis Property Management/Gail Construction/Outdoor Elements 3rd Place – Q10 Property Advisors/Redevelopment Services Single Booth Winners 1st Place – Better World Properties 2nd Place – SMI Realty 3rd Place – Rasa Floors

Chili-Tizer Station Sponsor Brook Furniture Rental Inc. Ideal Towing “Over 21” Wristband Sponsor AAA Plumbers and Mike Koch Trophy Sponsor TPI Construction & Painting Inc. Little Chilis Sponsors Century A/C Supply PPG Paints Camp Hope Car Raffle Presented by TPI Construction & Painting Inc. Winner – Kyle Brown

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On the Scene Photos by MARK HIEBERT, Hiebert Photography HAA 2018 Chili Fest

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On the Scene Photos by MARK HIEBERT, Hiebert Photography HAA 2018 Chili Fest

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On the Scene Photos by MARK HIEBERT, Hiebert Photography HAA 2018 Chili Fest

For more photos, visit the photo galleries on www.haaonline.org.

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2018 HAA Car Raffle

FOR CAMP HOPE Congratulations to Kyle Brown, Milestone Management, who won a 2018 GMC Terrain SLE at the 2018 HAF Chili Fest with proceeds going to Camp Hope

Thanks to our generous underwriters

The Bookstaff Family

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On the Scene Photos by MARK HIEBERT, Hiebert Photography 2018 Bill Dinerstein Memorial Golf Tournament Monday, October 1 at Sugar Creek Country Club Thank you to our many generous sponsors: President's Cart Sponsor Blackmon Mooring/BMS CAT Bag Drop Sponsor Belfor Property Restoration Practice Range Sponsor Best Plumbing LLC Breakfast Sponsors CORT Furniture WeDoTrash Beverage Cart Sponsors Texscape Services TXU Energy Multifamily Services Beverage Station Sponsors AAA Plumbers Flooring Warehouse Guardian Construction Hole Sponsors AAA Plumbers ApartmentData.com Blackmon Mooring/BMS CAT Church Foundation Repair Ferguson Facility Supply HD Supply Hoffer Furniture Rental & Sales Maintenance Supply Headquarters McMahanâ&#x20AC;&#x2122;s Flooring Inc. PPG Paints Presto Maintenance Supply Redevelopment Services Redi Carpet Sales of Houston Ltd. Richmond & Associates Landscaping RK Builders Inc. Ball Launch Challenge Sponsor Impact Floors Closest to the Pin Contest Sponsor Flooring Warehouse Longest Drive Contest Sponsor Outdoor Elements "19th Hole" Reception Sponsors Camp Construction Services TPI Construction & Painting Inc. Awards Ceremony Sponsors Belfor Property Restoration Crestmark Construction Services McMahanâ&#x20AC;&#x2122;s Flooring Inc. Mohawk Industries Multifamily Ancillary Group PPG Paints

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Congratulations to the tournament winners: Closest to the Pin Ryan Eibner Longest Drive Ryan Terrell Ball Launch Closest to the Pin Brian Dinerstein 1st Place Bennett Crump Brad Dinerstein Ryan Eibner Lynton Smith 2nd Place Brian Acome Greg Boyd Brian Farell Kurt Seidel 3rd Place Jeff Blevins Billy Griffin Clay Hicks Ryan Terrell

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On the Scene Photos by MARK HIEBERT, Hiebert Photography Bill Dinerstein Memorial Golf Tournament

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On Site with ABODE

Photos provided by MORGAN

151-300 UNITS Mid-rise, built 2010-2016

Property: Pearl Residences at CityCentre Owner/Management: MORGAN Location: 10402 Town & Country Way Units: 311 Built: 2016 Web: www.pearlcitycentre.com Interesting features: The team at Pearl CityCentre worked diligently to maintain a strong reputation and increase occupancy during 2017’s the soft market conditions and throughout the market shifts caused by Hurricane Harvey. The Honors Award-winning property started 2017 still in its lease-up phase at 38.3 percent physical occupancy, and the apartment community anticipated stabilizing by December at 90 percent. During the six weeks following Harvey, Pearl CityCentre absorbed 68 leases from displaced Harvey victims, and it reached its 90 percent stabilization goal. Pearl CityCentre was able to eliminate concessions following Harvey and began recovering rent loss, ending the 4th quarter of 2017 with new lease rent growth at 23.29 percent and renewal rent growth at 8.19 percent. Pearl CityCentre ended 2017 with a total income nearly 4 percent higher than budgeted, controllable NOI slightly higher than budgeted at .91 percent and NOI at 16.42 percent higher than budgeted. The Pearl CityCentre team worked diligently to turn each negative experience during Harvey into a positive one and it shows in its numbers.

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I wasn’t expecting it at surprised that they nom said, laughing. “ I’ve bee business for 15 years. I n anything. For me, if I ge or get it right, I’m satisfi don’t need recognition. resident and my manag owner are happy, I’m ha good experience, though way. I didn’t know that watching!”

On Site with ABODE

Photos provided by The Dinerstein Companies

MORE THAN 300 UNITS Garden, built 2010-2016

Property: The Millennium Kirby Owner/Management: The Dinerstein Companies Location: 7600 Kirby Drive Units: 378 Built: 2016 Web: www.themillennium.com/houston-tx/the-millennium-kirby Interesting features: The Millennium Kirby was among the many apartment communities that entered the market during the soft 2017 market. Luckily, the leasing team secured 330 leases and ended the year with a 95 percent occupancy rate in a market that represented an average of 89 percent occupancy. This Honors Award-winning apartment community was awarded the Elite Top 1 percent in the country by J Turner Research for its Online Reputation Assessment score in 2017, and it made the top 10 in Houston with an ORA Power Ranking score of 90. It’s clear Millennium Kirby values its residents by the community’s reviews on popular sites, such as Yelp and Google. The Millennium Kirby is the perfect blend of trend and comfort in the heart of the heart of the Houston Medical Center. Its location gives it a natural urban feel, but once you step inside the front doors, residents can feel the comfort of home. This apartment community consists of the LEED Gold certified apartment homes with smart home features. I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”

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December 2018

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On Site with ABODE

Photos provided by The Dinerstein Companies

2017 NEW DEVELOPMENT

Property: Vantage Med Center Owner/Management: The Dinerstein Companies Location: 1911 Holcombe Blvd. Units: 375 Built: 2017 Web: www.vantagemedcenter.com Interesting features: Vantage Med Center is a high-rise that stands in a class of its own. From the indulgent amenities to its impressive green initiatives, this apartment community brings a new perspective to Houston residents. Built in 2017, this apartment community offers residents an infinity pool with private cabanas and a 3,000 square foot fitness club. Residents can escape to the outdoor yoga terrace or schedule a message with the community’s on-site massage therapist in a private message room. Active residents have access to indoor bike storage, a complimentary bike shop and the Buffalo Bayou trails. The 22-story apartment community features on-site recycling, preferred parking for fuel-efficient vehicles and electric car charging stations. Vantage Med Center uses advanced air conditioning and heating, as well as lighting, programmable thermostats, low-flow water fixtures and drought tolerant landscaping. These features result in healthier air quality, fewer toxins and lower energy costs for residents.

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On Site with ABODE

Photos provided by ParaWest Management

SENIOR LIVING

Property: Plantation at Quail Valley Owner/Management: Vende Capitol/ParaWest Management Location: 2815 Cypress Point Drive, Missouri City Units: 124 Built: 2004 Web: www.plantationqv.com Interesting features: Plantation at Quail Valley is an active senior living community with a business center, hair salon, a fitness center and an on-site instructor as well as a driver who transports residents to doctor appointments and facilitates field trips to various places such as the local farmer’s market and the Kemah Boardwalk. This community also offers a luxurious pool, a putting green a barbecue pavilion for residents and their guests or family to enjoy. The Plantation at Quail Valley team put great effort into creating an environment that feels like family. The senior living specialist dedicates their time to making sure each resident feels at home and is comfortable. This community’s high renewal rates speak to its resident satisfaction. Plantation at Quail Valley maintains its occupancy with a waitlist even with new development rampant in the area. This two-story community offers white cabinets and appliances, wood plank flooring, garden tubs, dual vanities, large walk-in closets, a breakfast bar and washer and dryer connections. www.haaonline.org

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On Site with ABODE

Photos provided by Greystar

CORNERSTONE

Property: Market Square Tower Owner/Management: Woodbranch LLC/Greystar Location: 777 Preston Units: 463 Built: 2016 Web: www.marketsquaretower.com Interesting features: Market Square Tower is easily one of the most recognizable apartment communities in Houston. Its pool, the tallest pool in Texas, has caught many eyes on a national level, with exposure on TV shows and stations such as CNN, The Today Show, Good Morning America and the Travel Channel to name a few. With over 40 stories of living space and an acre of amenities, Market Square Tower attracts an abundance of traffic. The apartment community has sauna and steam rooms, an indoor basketball court, a children’s room, a poker suite, a billiard room, a movie theatre, a virtual gold simulator, a demonstration kitchen, a spa, a sunless tanning suite, a sky lounge, a grand ballroom with a catering kitchen, temperature-controlled wine room with private lockers and (believe it or not) more. Market Square Tower’s leasing office opened in October of 2016 with 27 percent of the building leased. As of April of this year, this community was 90 percent occupied. As the highest rent in the city, this is an exceptional accomplishment.

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I wasn’t expecting it at all. I w surprised that they nominated said, laughing. “ I’ve been with business for 15 years. I never e anything. For me, if I get my jo or get it right, I’m satisfied wit don’t need recognition. As lon resident and my management owner are happy, I’m happy. It good experience, though, feeli way. I didn’t know that someo watching!”

I was surpri said, l busin anyth or get don’t reside owne

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NestQuest continued from Page 43 The apartment owner and/or manager, resident and the housing authority communicate only and directly with an assigned NestQuest representative. Although NestQuest is not a housing authority, staff members each have experience working in the government housing assistance industry, which has helped NestQuest avoid incidents such as failed inspections or lease violations. This ensures residents are able to fulfill their full lease terms. Boriack explains his experience of the process: â&#x20AC;&#x153;Before the affordable housing applicant tours your community, a NestQuest agent makes formal contact with the prospect resident. The NestQuest agent obtains all the necessary availability information from the leasing team along with pricing and fees and then they pass that information along to their clients. Once the agent gathers the community information and believes it suits the needs, he or she sets an appointment for leasing team to meet the client and tour the floor plan agreed on. The applicant is only required to submit an application and pay the application fee so that the process of approval can begin. Once the application is approved, our leasing team contacts the NestQuest agent and informs them of the approval. A digital contract outlining all the details of the lease on behalf of NestQuest is emailed to the team requesting our signature and once signed payment for the security deposit is collected. There is very minimal interaction with the resident besides touring the community and picking up keys. The NestQuest agent handles the majority of the process and leg work, and they are always readily available to answer any additional questions the resident or leasing team may have. Once the resident moves in, there arenâ&#x20AC;&#x2122;t any collection hassles as NestQuest makes all rent payments on time.â&#x20AC;? As of August 2018, NestQuest has successfully placed families in 18 apartment homes zoned to high performing schools. The ability to assist these families has been a joint effort by the Houston Apartment Association, the Houston Housing Authority and management companies such as Greystar, Veritas Equity Management, Q10 Property Advisors and others who support the goal of higher quality education. With the ongoing support from these individuals and organizations, NestQuest will continue to strive to increase the success and stability of these families as the program continues to grow. For more about NestQuest visit http://nestquesthouston.com. www.haaonline.org

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Welcome Mat

Introducing HAA’s NEW MEMBERS

OWNERS Angel G. Chavero Angel G. Chavero P.O. Box 61831 Houston, TX 77208 832-510-8051 13722 Ravensway Appianway Apartments David Phillips 3200 N Macgregor Way Houston, TX 77004 713-748-1000 Appianway Apartments Foresight Asset Management LLC Jeff Condit 7334 Blanco Road #200 San Antonio, TX 78216 210-888-3454 Avistar at Wilcrest Avistar at Copperfield Concord at Little York Concord at Gulfgate Concord at Williamcrest Khan Properties Graham Khan 1231 Nautical Lane Richmond, TX 77469 281-782-3217 Lee Moore Lee Moore 2020 Arable Court Brenham, TX 77833 979-551-2319 Mark Weaver Mark Weaver 19811 Skycountry Lane Houston, TX 77094 713-972-4980 Referred by Randa Dick Mary Lynch Mary K. Lynch 20038 S Pecos Valley Trail Katy, TX 77449 713-591-7566 RealSource Management Kim Humphrey 2089 E. Fort Union Blvd Salt Lake City, UT 84041 801-601-2700 Steepleway Downs

Te-Enterprise LLC Te-Enterprise LLC 10010 Westpark Drive #406 Houston, TX 77042-5773 832-863-9117 Gia IV at Bellaire Gia at Oak Forest Gia at Westchase Gia III at Bellaire Turnstone LLC John Ward 811 West Gardena Blvd. Gardena, CA 90247-4903 281-444-4868 Referred by Tina Cavaco

WP Legacy Investments William Wong 16107 Kensington Drive #218 Sugar Land, TX 77479 832-407-8082

SUPPLIERS

12 Stones Roofing Mark McGuire 1018 Fair Way La Porte, TX 77571 281-770-3501 Roofing Consultants, Roofing Contractors Referred by Debbie Andreozzi

Bee Man Dan Daniel M. Jones 20203 Westfork Court Katy, TX 77449 281-798-2246 Pest Control Services, Beekeepers Referred by Carrie Hurst CG Sorelle Group LLC Mimi Girard 1906 Bingle Road Houston, TX 77055 713-999-1199 Landscape Contractors, Landscape Designers, Lawn Maintenance Featherston Sign Partners Robert Featherston 6124 Hwy 6 N. #126 Houston, TX 77084 713-955-6108 Banners, Flags & Pennants, Signs Referred by Tina Cavaco

ALL SUPPLIER MEMBERS are listed online at haabuyersguide.com, searchable by product/service category or company name. 64

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Furniture Options Sean Vaught 3582 E TC Jester Blvd Houston, TX 77018-6023 972-361-0633 Furniture Renting & Leasing, Housewares & Accessories Leasing H&R Operator Services Inc Rustin Raney 7407 Fite Road Pearland, TX 77584 281-485-4477 Gates & Gate-Operating Devices, Electrical Gates & Doors Higginbotham Braden Griffith 11700 Katy Fwy #1100 Houston, TX 77079 713-439-5222 Insurance, Insurance Consultants Referred by Terri Clifton MLN Service Company Bob Zedaker 3931 Ann Arbor Drive Houston, TX 77063 832-721-1066 A/C Contractors, Plumbing Contractors Referred by Scott Heffernan Natran Green Pest Control Bert Keller 12460 Northwest Fwy Houston, TX 77092 281-462-8726 Pest Control Services, Exterminators Power Design Inc Ryan Eibner 11600 Ninth St. N. Saint Petersburg, FL 33716 919-623-5708 Electric Contractors, Fire Alarm Systems Referred by Clay Hicks

Roman Contractors Ernesto Roman 17710 Bauer Road Cypress, TX 77433 832-405-9799 General Contractors, Remodeling & Repair-Building Contractors, Painting Contractors Saifee Signs & Graphics AliAsgher Sunelwala 5829 W. Sam Houston Pkwy N. #1011 Houston, TX 77041 832-532-4559 Banners, Flags & Pennants, Signs Referred by Tina Cavaco Troy Barbell TC Lien 10600 Shadowwood Drive Houston, TX 77043 713-957-2882 Fitness Equipment, Physical Fitness US Roof Rachel High 5012 Whitewing Drive Richmond, TX 77469 281-239-7447 Gutters & Downspouts, Remodeling & Repair-Building Contractors, Roofing Contractors, Siding Contractors, Waterproofing Contractors, Concrete Repair Referred by Audrey Ingram I wasn’t expecting it at all. I was surprised that they nominated me!” he said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job done or get it right, I’m satisfied with that. I don’t need recognition. As long as my resident and my management and the owner are happy, I’m happy. It was a good experience, though, feeling that way. I didn’t know that someone was watching!”

Quatro Tax LLC Taylor Van Hook 16840 Barker Springs Road #301 Houston, TX 77084 281-600-2702 Tax Consultants-Ad Valorem Referred by Tina Cavaco Red Nova Energy Mariano Santiago 1211 Upland Drive #G Houston, TX 77043 281-973-6200 Electric Contractors, EngineersElectrical, Lighting - Outdoor, Meter Conversions, Submetering - Electric, Wiring Installation Referred by Claude Arnold

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I wasn’t expecting it at all. surprised that they nominat said, laughing. “ I’ve been w business for 15 years. I neve anything. For me, if I get my or get it right, I’m satisfied w don’t need recognition. As l resident and my manageme owner are happy, I’m happy good experience, though, fe way. I didn’t know that som watching!”

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Get Involved Volunteer HAA The Houston Apartment Associationâ&#x20AC;&#x2122;s committees and clubs are some of the most productive tools we have to ensure that we remain the nationâ&#x20AC;&#x2122;s largest and most effective apartment association. Members of the association dedicate their time to lead and serve on the various clubs and committees. Some general responsibilities of committee and club members include a commitment to attend all meetings and help develop marketing strategies (i.e. telemarketing, developing handouts, fliers, articles). To serve on any of these committees and clubs, please contact the HAA office at 713-595-0300, online at www.haaonline.org or email the departments listed below. Education education@haaonline.org Education Advisory Council HAF Fundraiser Committee* Career and Community Development Committee Government Affairs govaffairs@haaonline.org HAA Political Action Committee* Century Club* Media Relations Committee Fair Housing Committee Strategic Outreach Committee Membership members@haaonline.org Ambassador ONE Society Go-Getter Membership Recruitment Club Expo Exhibitor Committee* Street Team* Community Outreach shinkley@haaonline.org Community Outreach Committee Product Service Council* Resident Relations resrel@haaonline.org Resident Relations Committee *Note: These committees have specific requirements for membership. Contact HAA for details.

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The Go-Getters HAA’s MEMBERSHIP RECRUITERS

CELEBRATING GO-GETTERS! Get involved and become part of the Go-Getter Club.

Join our Quarterly Meetings! Be the top recruiter for each quarter and win one of four fabulous prizes! 1st Quarter: Echo Show 2nd Quarter: Samsung Smart TV 3rd Quarter: iRobot Roomba/Braava Jet Bundle 4th Quarter: $500 Holiday Cash Plus, for each new member you recruit, you’ll earn a chance to win gift cards ranging from $25 to $250!

JOIN A TEAM and build relationships with likeminded members. Get involved with GoGetters and make lasting industry connections. Visit www.haaonline.org/gogetterscorner to get all the information you need.

Mark your calendar! The final meeting will be hosted at Christian’s Tailgate 2820 White Oak Drive, 77007 HONORARY LIFE MEMBERS Members who have recruited more than 100 companies Claude Arnold Monette Reynolds Kenn Brown Sherry Stevenson Tina Cavaco Kirk Tate Kevin Fenn Suan Tinsley Diane Gilbert Sonny Unverzagt Anita Harrison Del Walmsley Dwayne Henson Nancé Wells Mike Koch H.P. Paul Young Merry Mount Jeanne Marie Zublin Dicks

December 5 3:30 p.m. to 5:30 p.m. Register online today! Sponsored by AAA Plumbers and Hire Priority Staffing & Executive Search

THE GO-GETTERS ARE THE BACKBONE of the Houston Apartment Association. By recruiting new members, the Go-Getter Club helps both new management and supplier companies and the association grow for the future. To join the club and get going on recruitment, see online at www.haaonline.org or contact Amanda or Lauren in the Membership Department at members@haaonline.org. 66

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Rental Credit Reporting provides Houston’s

apartment industry with the most eﬀective rental credit reporting tool available. RCR gives your leasing staﬀ immediate access to information about which prospects have fulfilled their leases and who have been residents in good standing. RCR also tells you who hasn’t paid rent, who has broken leases and who has received their deposit refund.

Rental Credit Reporting (RCR) was established in 1977 to solve screening problems the Houston Apartment Association founders felt plagued the local apartment industry. RCR has unsurpassed data on resident rental histories in the Houston region. The Houston Apartment Association and CoreLogic are partnered to expand RCR and include the following searches in one bundled report with immediate and unlimited inquiry access. National Landlord-Tenant Data – Searches more than 34 million landlord-tenant court records including filings, judgments and liens. Local resident rental history including evictions, amount owed at move-out, broken lease information, NSF checks, deposit disposition. Texas Criminal Data – Instant delivery of available felony and misdemeanor records from Texas statewide and 18+ supplemental counties including Harris, Montgomery and Fort Bend. Terrorist Check – Automated search tool that identifies known or suspected terrorists and fugitives from various data sources, including the FBI, other federal agencies as well as state and local law enforcement agencies. Sex Offender Search – Instantly informs your staff if a prospective or current resident is a registered sex offender. Move-in/Move-out Entry – Submit your property’s rental history data online through RCR's familiar and easy-to-use tools. Eviction Entry – Protect yourself and other properties by registering your evictions with RCR. Inquiry History – Know where else your applicant is applying. Quick and Easy – Information is entered into an easy-to-use Web application and a decision is delivered instantly. Cost Effective – Automated decisions save your staff time. Immediate Access – Inquiries concerning prospective residents can be made online, 24/7. Monthly Activity Report – No need to guess if you’re getting what you are paying for – each owner/management company can access a monthly report showing their properties system use. Subscribe Today – For approximately 32 cents per unit per month, RCR can help make sure you know just who your prospective residents are. * For properties 49 units or less, you have unlimited inquiries for $10 per month.

a service of

in partnership with

To subscribe or to learn more, call RCR at 713-595-0300, email rcr@haaonline.org or visit www.haaonline.org.

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The Ambassador ONE Society HAA’s WELCOMING COMMITTEE

NETWORK STRONG! The Ambassadors close out the year with a stronger member network.

Be a part of our network in 2019. Join the group and make connections each month. Visit us online at www.haaonline.org/ ambassadors for details

Ambassador ONE Society members with at least 10 points, ranked by points earned: 1. “ONE of the Month” Arely Pena, The Liberty Group 1

Arely Pena April Shane Marivel Bownds Jennifer Devine Diamela Bravo Jennifer Ramos Chelsea Quinteros Angel Lopez Liz Levins Angie Lavrack Dylan Coleman Mikka Hoppe Debra Knight Blake Subinsky Ryan Weis Marcy Holmes Lisa Bradley Rhonda Fowles Will McGinnis Marcus Wheatfall Tracey Leach-Moore Zamara Nitcholas Doug Oehl Michael Edwards Phillip Price Cynthia Jaime Shera Lehman Derrick McClain Shannon Russell Linda Ledesma Blaise Spitaleri Claribel Rodriguez Nikki Sekunda Peggy Charles

The Liberty Group Presto-X Valet Living Valet Living Green City Security Outdoor Elements Gail Construction Metropolitan Staffing Solutions Rasa Floors The Liberty Group Metropolitan Staffing Solutions Valet Living HD Supply Crestmark Construction Services Designs by Holmes Interior Design Brand Junkie AdvantaClean Infinity Power Partners Triple Seal Insulation Flooring Warehouse Greenlogic Lighting & Electric Power Express Ideal Towing HD Supply Hire Priority Texscape Texas Commercial Contractors Inc Ferguson Facility Supply Hire Priority Rasa Floors The Liberty Group The Liberty Group Fidus Construction

89 69 52 47 43 38 38 35 35 33 32 22 22 20 20 19 16 16 16 15 15 15 14 14 13 12 12 11 11 10 10 10 10 10

Ambassadors earn points by sharing leads, making introductions and visiting communities to promote HAA events and news.

THE AMBASSADOR ONE SOCIETY is an organized network exchange that helps supplier partners build their business contacts within HAA. It’s the perfect way for new suppliers to get started with the association. Group members share leads, make introductions and support HAA and its members. For details on how to join and for meeting dates, visit www.haaonline.org/ambassadors or contact Amanda in the Membership Department at 713-595-0316, or email asherbondy@haaonline.org. 68

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2. First Place “Ambassador Strong” with 30 points 3. Second Place Team “The Cool Kids Corner” with 28 points 4. Third Place Team “Cash ME Onsite” with 18 points

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Portfolio Changes The following owner/management companies have added the listed properties to their portfolios: Alliance Residential Company: Highpoint at Cypresswood Apartments, 336 units at 13920 Mandolin Drive. Angel G. Chavero: 13722 Ravensway, 4 units at 13722 Ravensway Drive in Cypress. Anterra Management Corporation: Seventeen 15 Apartments, 206 units at 1715 Enclave Parkway. Appianway Apartments: Appianway Apartments, 52 units at 3200 N. Macgregor Way. The Axcell Group LLC: Decker Place Apartments, 31 units at 3500 Decker Drive in Baytown. Capstone Real Estate Services: Synott Square Apartments, 108 units at 9402 Synott Road and Andalucia Apartments, 135 units at 123 Winkler Drive. City Gate Property Group: Woodglen Village Apartments, 250 units at 11111 W. Montgomery Road. CKR Property Group: Aster on Aldine, 163 units at 4505 Aldine Mail Road and Bayberry Apartments, 61 units at 838 Oak St. Cortland Partners: Luxe Shadow Creek Ranch, 324 units at 1930 Kingsley Drive in Pearland. Foresight Asset Management LLC: Concord at Williamcrest, 288 units at 10965 S. Gessner Road; Concord at Little York, 276 units at 301 W. Little York Road; Concord at Gulfgate, 288 units at 7120 Village Way; Avistar at Wilcrest, 88 units at 1300 Wilcrest Drive and Avistar at Copperfield, 192 units at 6416 York Meadows. Gatesco: Ravenwood, 236 units at 7964 Amelia Road.

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December 2018

Hammond Residential: Ashton Oaks Apartments, 520 units at 201 Hackberry St. in Clute and Gracie Square, 223 units at 1201 Wilcrest Drive. The Hanover Company: Hanover Blvd. Place, 281 units at 1770 S. Post Oak Lane. Hilltop Residential Management: Streamsong Apartments, 300 units at 21077 Kingsland Blvd. in Katy; Landings of Conroe, 200 units at 1840 Longmire Road in Conroe and Heights West 11th Apartments, 121 units at 2205 W. 11th St. IB3 Management Group Inc.: Westbury Reserve Apartments, 320 units at 12261 Fondren Road. Michael Penny: 105 Longstreet, one unit at 105 Longstreet Road in Willis and 104 Longstreet, four units at 104 Longstreet Road in Willis. Monument Property Management: The Vintage Apartments, 292 units at 6500 W. 43rd St. Myan Management Group: Smart Living at Garden Oaks, 150 units at 450 E. Rodgers St. NOI Property Management LLC: The Edge at City Centre Apartments, 284 units at 8410 W. Bartell Drive and Redford Park Apartments, 212 units at 808 Gladstell St. in Conroe. ParaWest Management: Briarstone Apartments, 96 units at 4719 Reading Road in Rosenberg. PinPoint Escclesia at Kingwood LLC: Ivy Point Kingwood, 150 units at 2302 Ladbrook Drive in Kingwood. Portico Property Management: Sommerall Station, 368 units at 6777 Sommerall Drive.

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RealSource Management: Steepleway Downs, 224 units at 11910 Thoroughbred Drive. Relik Realty LLC: 11eleven, 316 units at 1111 Blalock Road; Villa Chateau, 58 units at 2904 Miori Lane in Victoria and Coral Manor, 54 units at 729 5th Avenue N. in Texas City. Rockstar Capital Management: Meadow Park Apartments, 160 units at 2800 Mustang Road in Alvin. Tarantino Properties Inc.: Campeche Cove Apartments, 264 units at 3428 Cove View Blvd. in Galveston. Te-Enterprise LLC: Gia III at Bellaire, 72 units at 6711 Atwell Drive and Gia IV at Bellaire, 206 units at 6120 Bellaire Blvd. Greystar: Crenshaw Grand, 264 units at 5400 Crenshaw Road in Pasadena. ZRS Management LLC: Laurelwood Apartments, 324 units at 10333 Research Forest Drive in Magnolia.

In the News Deborah DeRouen, CAS, joins the ZUMPER team. Kristina Andrus, NALP, is now with MORGAN. DeRouen

The Houston Chronicle recognizes MORGAN as one of the Top Workplaces in the Houston-area for 2018. In addition, MORGAN receives a special award for the “Most Clued in Senior Management” as part of the Houston Chronicle’s annual award event.

Have something to report from your company or for yourself? Email us your news at comm@haaonline.org.

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December 2018

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On the Scene with the HAA NEXT

HAA NEXT Breakfast Sponsored by 1 Earthworks Friday, October 12 at the HAF Education Center The October NEXT Breakfast featured Part III of our leadership series, “Fear Your Working Dead.”

MEET THE NEXT GENERATION OF HAA LEADERSHIP. This niche group within HAA is dedicated to the networking and professional development needs of HAA members 35 and younger. Network with your peers and grow your career together among the next generation of HAA leadership! To Learn how to become involved with NEXT, see online at www.haaonline.org/next. 72

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Good Works continued from Page 40

tmas Rockstar Chris

Rockstar Capital Rockstar Capital Management has been busy with community service efforts. To mention just a handful of good works, Rockstar participated in the Star of Hope Thanksgiving event last year by serving meals to women and children. For Christmas last year, Rockstar purchased, wrapped and delivered $2,500 in gifts for a single mother and her three children who lost everything during Hurricane Harvey. Rockstar also provided Christmas lunch and dinner for the family. This year, Rockstar Capital closed their offices on Sept. 12 to allow each community team to volunteer at the non-profit organization of their choice. The Women's Home, Meals on Wheels, Houston Food Bank, Hearts and Hands of Baytown and the Houston Audubon were among the 18 plus charities selected for this year's Rockstar Day of Caring event. Rockstar teams painted and merchandised at a local thrift store benefiting homeless women and children, completed park clean-up, delivered meals to seniors and organized food bank donations. On Oct. 13, Rockstar communities and on-site teams raised $10,000 for the Susan G. Komen for the Cure foundation and $150,000 for the inaugural Ninfa Martinez Butterfly Fund for Breast Cancer Treatment Assistance, which was named after Rockstar CEO Robert Martinezâ&#x20AC;&#x2122;s mother and breast cancer survivor. The company also paid for 18 mammograms for their residents to help promote awareness of the importance of early detection in helping to reduce breast cancer's impact. "#RockstarCares is so much more than just a hashtag. It's part of our culture and part of the connection we try to build with each employee, each resident and each family in our apartment communities. We care because caring for one another is part of the legacy I want Rockstar Capital to leave, and it's the foundation of our corporate brand. It's not a program, it is who we are," Rockstar Capitalâ&#x20AC;&#x2122;s CEO Robert Martinez said. www.haaonline.org

December 2018

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Index of Advertisers By CATEGORY A/C Supplies Century A/C Supply . . . . . . . . . . . . . . . . . . . . . . . . . . .5 281-530-2859 . . . . . . . . . . . . . . . . . .www.centuryac.com

RENCON . . . . . . . . . . . . . . . . . . . . . .Inside Back Cover 713-666-3636 . . . . . . . . . . . . . . . . . . . . . .www.rencon.com TPI Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .1 713-668-7986 . . . . . . . . . . . . . . . . . . . . . . .www.tpiinc.com

Answering Service

Screens Ameristar Screen and Glass . . . . . . . . . . . . . . . . . .71 713-683-6767 . . . . . . . . . . . . .www.ameristarglass.com

Security Control Equipment/Systems

Apartment Lines . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .71 800-583-7769 . . . . . . . . . .www.apartmentlines.com

Glass – Plate, Window, Etc. Ameristar Screen and Glass65 713-683-6767 . . . . . . . . . . . . .www.ameristarglass.com

Careers

SentriForce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .41 888-671-2202 . . . . . . . . . . . . . . . . .www.sentriforce.com

Swimming Pool Service

Landmark Management . . . . . . . . . . . . . . . . . . . . .40 713-855-3814 . . . . . . . . . . . . . . . . . . . . .www.LMhomes.net

Insurance Harco Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .73 713-681-2500 . . . . . . . . . . . . . . . . . . .www.harco-ins.com

Carpet Installation

Poolsure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .63 800-858-POOL . . . . . . . . . . . . . . . . .www.poolsure.com

Trash Hauling

Dixie Carpet Installations . . . . . . . . . . . . . . . . . . . . .7 281-261-6334 . . . . . . . . . . . . . . . . .www.dixiecarpet.com

Landscape Contractors Outdoor Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 713-955-0990 . . . . . .www.outdoorelementstx.com Texscape Services . . . . . . . . . . . . . . . . . . . . . . . . . . . .52 281-846-3779 . . . . . . . . . .www.texscapeservices.com

Collection Agencies Alexander-Rose Associates Inc. . . . . . . . . . . . . . .71 713-644-4441 . . . . . . . . . . .www.alexanderrose-inc.com

Waste Management . . . . . . . . . . . . . . . . . . . . . . . . . .73 713-354-5230 . . . . . . . . . . . . . . . . .www.thinkgreen.com

HAA Products & Services Rental Credit Reporting . . . . . . . . . . . . . . . . . . . . . .63 713-595-0300 . . . . . . . . . . . . . . .www.haaonline.org/rcr

Laundry Equipment & Supplies Scott Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . .65 713-686-7268 . . . . . . . . .www.scott-equipment.com

Countertops Impact Floors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 800-951-9462 . . . . . . . . . . . . . .www.impactfloors.com

Locks & Locksmiths CKI Wholesale Lock Supply . . . . . . . . . . . . . . . . . .73 713-462-0704 . . . . . . . . . . . . . . . . . . . . .www.ckilock.com

Electric Contractors

HAA reserves the right to reject any advertising if its content is inappropriate or inconsistent with HAA’s standards for publication or HAA’s business interests, in HAA’s sole opinion.

Affordable Quality Electric . . . . . . . . . . . . . . . . . . .13 713-695-5992 . . . . . . . . . . . . . . . . .www.acuityelectric.com Brandt Electrical A/C & Heating Services . . . .37 281-693-3383 . . . . . . . . . . .www.brandtelectrical.com

Maintenance Supplies Maintenance Supply Headquarters . . . . . . . . . .12 281-530-6300 . . . . . . . . . . . . . . . . . .www.supplyhq.com

Employment Agencies The Liberty Group . . . . . . . . . . . . . . . . . . . . . . . . . . . .47 713-961-7666 . . . . . . . . . . . . . . .www.thelibertygroup.com

Movers Ameritex Movers . . . . . . . . . . . . . . . . . . . . . . . . . . . . .2 713-484-MOVE . . . . . . . . . .www.stressfreemove.com

Furniture Renting & Leasing CORT Furniture . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 713-960-4580 . . . . . . . . . . . . . . . . . . . . . . . . . . . .www.cort.com

Paving Contractors Pavement Services . . . . . . . . . . . . . . . . . . . . . . . . . . .34 281-758-8434 . . . . . . . . . . . . . . . . .www.nopothole.com

General Contractors Camp Construction Services . . . . . . . .Back Cover 713-413-2267 . . . . . . . .www.campconstruction.com Cotton Commercial USA Inc. . . . . . . . . . . . . . . . . .10 877-511-2962 . . . . . . . . . . .www.cottoncompanies.com Crestmark Construction Services . . . . . . . . . . . .25 713-426-6161 . . . . . . . . . . .www.crestmarkservices.com FSI Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 832-767-1115 . . . . . . . . . . . . .www.fsiconstruction.com Gambit Construction . . . . . . . . . . . . . . . . . . . . . . . . .35 832-987-4242 . . . . .www.gambitconstruction.com Gemstar Construction & Development . . . . . .45 281-821-1195 . . . . . .www.gemstarconstruction.com MultiFamily Services . . . . . . . . . . . . . . . . . . . . . . . . .40 713-266-9100

Plumbing Contractors AAA Plumbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .17 713-462-4753 . . . . . . . . . . . . . . . . . .www.aaaplumbers.com

Resident Screening Service CoreLogic Rental Property Solutions . . . . . . . . . . . . . . . . . . . . .Inside Front Cover 888-297-8821 . . . . . . . . . . . . . . . . . . .www.corelogic.com

Resurfacing Perfect Surface . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .27 713-952-0202 . . . . . . . .www.perfectsurfaceinc.com

www.haaonline.org/rcr

Want to see current and previous issues of ABODE online? Go to http://issuu.com/haa_abode. Or view this issue on your computer, iPad or smartphone at http://issuu.com/haa_abode/docs/abode_dec2018.

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December 2018

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MarketLine By BRUCE MCCLENNY, President, ApartmentData.com

HOUSTON

115.0 –

Snapshot 89.9% $1,025/mo. 116.2¢/sq.ft./mo. 882 sq.ft.

Past 12 Months: 2.2% rental rate growth 12,088 units absorbed

• • • • • • • • • •

– 90.0

– 89.0 100.0 – – 88.0

•

Recently Opened (12 months): 35 communities 7,780 units

110.0 –

•

Under Construction: 45 communities 12,653 units

– 87.0 Oct 18

Sep 18

Jul 18

Aug 18

Jun 18

May 18

Apr 18

Feb 18

Mar 18

Jan 18

Dec 17

Oct 17

Nov 17

Sep 17

Aug 17

Jul 17

Jun 17

May 17

Apr 17

Mar 17

Jan 17

Feb 17

Dec 16

Nov 16

90.0 –

Proposed Construction: 88 communities 26,242 units

Occupancy (%)

Operating Supply: 2,754 communities 646,286 units

Rental Rate (¢/sq.ft./mo.)

Occupancy: Price: Rental Rate: Size:

• • • • • • • • • • • • •

History of Effective Rental Rate & Occupancy for All Units

Hottest Submarkets Over the Past Three Months

Concessions

Annualized % of Market Rank Submarket Absorbed 1 Downtown 10.9% 2 Conroe North/Montgomery 4.0% 3 I-10 East/Woodforest/Channelview 2.3% 4 Katy/Cinco Ranch/Waterside 1.1% 5 Northline 4.9%

Rental Rate Growth % 2.4% 1.0% 0.6% 1.5% 1.1%

Total Units Class w/Concessions All 271,227 A 73,662 B 104,451 C 80,006 D 13,108

% of Total Units 42% 49% 41% 40% 29%

Average Special -3.1% -4.9% -2.2% -2.1% -2.0%

Citywide Effect -6.9% -9.3% -5.2% -5.1% -6.5%

One Month Free = -8.33%

THE FIRST TABLE ABOVE GIVES A SNAPSHOT of the current market conditions. The graph displays the overall occupancy and effective rental rates over the past 24 months. These statistics are derived from a continuous survey of all apartment communities in the Houston region. The effective rental rates are the calculated net of concessions and utility adjustments. The second table lists the five hottest submarkets in the Greater Houston area. There are a total of 42 submarkets, and the ranking is based on the best combination of rental rate growth and absorption over the past three months. The third table distributes and analyzes concessions (specials) by classification. Concessions generally are represented by three types of specials: move-in, months free or floor plans. The effect of these specials is captured and prorated over a lease term to arrive at a percentage reduction in market or street rents.

TEXAS

Dallas/Ft. Worth

San Antonio

Austin

Occupancy: Price: Rental Rate: Size:

91.7% $1,109/mo. 126.9¢/sq.ft./mo. 874 sq.ft.

90.4% $939/mo. 110.5¢/sq.ft./mo. 850 sq.ft.

91.7% $1,243/mo. 142.2¢/sq.ft./mo. 874 sq.ft.

Past 12 Months: 4.2% rental rate growth 21,619 units absorbed

Past 12 Months: 3.8% rental rate growth 6,193 units absorbed

Past 12 Months: 6.5% rental rate growth 11,340 units absorbed

Operating Supply: 3,047 communities 713,293 units

Operating Supply: 894 communities 189,104 units

Operating Supply: 967 communities 224,992 units

www.haaonline.org

ApartmentData.com has been providing apartment data and marketing products since 1986. ApartmentData.com provides real-time access for property specific information, market surveys and historic submarket data for more than 3 million apartment units in Texas, Georgia, Arizona, North Carolina and Tennessee. For more information, contact Bruce McClenny at 800-595-8730. © 2018 ApartmentData.com December 2018

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Back Page

with News from around the COMMUNITY

TARGET QUALIFIED LEADS www.haaonline.org

jobs@haaonline.org

713-595-0300

With HAA’s job board, you’ll discover a professional community that’s committed to helping you find the right candidate or your next job opportunity in the greater Houston and surrounding areas. Employers can post job openings and access resumes.

Job seekers can search openings, post their resumes and create job alerts.

From the website homepage at www.haaonline.org, access the job board and the “Employers” Tab MAINTENANCE | CUSTODIAL SERVICE PROFESSIONAL POSTING n Job emailed in our Job Flash™ to 15,700+ Professionals in the Houston Area n Click to view recent Job Flash™ n Typically used for Maintenance, Porter and Groundskeeper type positions Member Price: $229 PROPERTY MANAGER | LEASING OFFICE PROFESSIONAL POSTING n Job emailed in our Job Flash™ to 15,700+ Professionals in the Houston area n Click to view recent Job Flash™ n Includes Preferred status at top of job search and placement on the homepage n Typically used for Property Manager and Leasing type positions Member Price: $279

How to post your resume to haaonline.org: n From the website homepage, access the job board n through the “Job Seekers” Tab at the right of the page n Select “Post a Resume” n Create a New User Account n At the “Career Account Home” under the n “Quick Links,” select “Post a Resume” n Upload your resume electronically from your PC n or external drive Now that your resume is available to others, explore the other features of JobLine such as creating “Job Alerts” with certain key words and view more than 100+ Houston-area apartment industry jobs typically available at any time.

REGIONAL | CORPORATE CORPORATE PROFESSIONAL POSTING n Job emailed in our Job Flash™ to 15,700+ Professionals in the Houston area n Click to view recent Job Flash™ n Includes Preferred status at top of job search and placement on the homepage n Includes distribution to a network of 1,000+ National, Niche, and Local Job Boards n Typically used for Regional and Corporate positions Member Price: $399

Visit jobs.haaonline.org today and find your candidate or career for tomorrow. 76

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Houston Apartment Association 4810 Westway Park Blvd. Houston, Texas 77041

Return Service Requested