ABODE June 2019 by HAA Publishing

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www.haaonline.org

THE HOUSTON APARTMENT ASSOCIATION MAGAZINE

ABODE Riding t Iut June 2019

The Houston apartment market shifted directions due to unprecedented events. Where are the currents taking us now?

Harris County Fire Code Changes County agrees to five-year phase-in for new alarm requirements.

We See You at the Top Golf Fundraiser, TAA Lone Star Expo, NEXT Bingo and much more!

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CONTENTS June 2019

ON THE COVER

FEATURES & PHOTOS

32 On the Scene – Photos from the It’s the Law Luncheon.

Riding It Out – The Houston apartment market shifted directions after Hurricane Harvey and other unprecedented events. Where are the currents taking us now? Find out on Page 40. Cover Photo © Czanner | Dreamstime.com

34 On the Scene – Photos from the HAAPAC Luncheon. 36 On the Scene – Photos from the HAAPAC TopGolf Fundraiser.

COLUMNS & MONTHLY UPDATES 7 President’s Corner – Where is the apartment market heading in 2019?. 8 Patron of the Month – Meet and support Camp Construction Services.

40 Riding It Out – Where are the market currents taking us now?

9 Legislative Update – Harris County agrees to five-year phase-in for new alarm requirements.

46 On the Rise – A closer look at new properties on Houston’s horizon.

11 It’s The Law – Let’s have some summer fun! (Legally speaking, of course.)

52 When to File a Weather Claim on Your Roof – Learn when you should file a claim when your apartment community experiences roof damage

14 Resident Relations – A resident is evicted after a fatal shooting.

56 Finding and Training the Right People – Learn how to recruit continuously to hire the best fit for your property. 60 On the Scene – Photos from the Texas Apartment Association Education Conference & Lone Star Expo.

19 Upcoming Education – Find out what education courses the Houston Apartment Foundation is offering in June and July. 20 Calendar – HAA’s schedule of events for the next coming months. 28 On the Road with HAA – See photos from Pasadena, Katy and Pearland Outreach events.

62 On the Scene – Photos from the NEXT Beer & Bingo.

66 Go-Getters – Celebrating Membership!

64 On the Scene – Photos from the MSHQ Challenge Cup

67 Welcome Mat – Find out about the newest HAA members.

72 On Site with ABODE – Take a closer look at another randomly selected HAA member property.

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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June 2019

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OFFICERS AND ASSOCIATION LEADERSHIP CLAY HICKS President-Elect

TINA CAVACO Vice President at Large

STARLA TURNBO President

IAN DOUGLAS Vice President at Large

STEPHANIE GRAVES Vice President at Large JOHN BORIACK Secretary/Treasurer

CHRISTY RODRIGUEZ Vice President at Large

HOWARD BOOKSTAFF General Counsel

JEFF HALL Executive VP BOARD OF DIRECTORS Michelle Pawelek Immediate Past President Swapnil Agarwal Mack Armstrong Jeff Blevins Jill Bounds Kyle Brown Joseph Bryson Terri Clifton Michelle Croasmun Grant Crowell Derek DeVries Scott Douglas John Fedorko Gina Erwin Israel Garza Diane Gilbert Ira Gross Alison Hall Bryan Head Melissa Herrera Deborah Holcombe Jacob Kunath Barby Lake Laura Lestus David Lindley Robert Lopes Sonia Lopez Kristin McLaughlin Carlos Neto Dean O’Kelley Michelle Pahl Jenifer Paneral Mark Park Velissa Parmer Jackie Rhone Kelly Scott Kurt Seidel Roman Stephens Debbie Sulzer Dana Tucker Shelley Watson Quintina Willis Tracie Yoder

DIRECTORS EMERITUS Josh Allen Gary Blumberg Ken Bohan Kathy Clem Jack Dinerstein Jenard Gross Darlene Guidry David Hargrove Larry Hill Stacy Hunt Hap Hunnicutt David Jones Mike Koch Dick LaMarche Tim Myers P David Onanian John Ridgway Kim Small Eileen Subinsky Steve Sweet Kirk Tate Suan Tinsley H J Tollett Jr. Pat Tollett Vic Vacek Jr. Beth Van Winkle Jerry Winograd ADVISORY DIRECTORS Tamara Foster Billy Griffin, CAS Monica Gracia Debbie Kelm Cesar Lima Mary Lawler Patrick Magnuson Betsy Marshall Bruce McClenny Nikki Sekunda Penny Sprang 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 Jacob Kunath, CAS, President Century A/C Supply Laura Lestus, CAS, Vice President The Liberty Group David Lindley, CAS, Secretary FSI Construction Derek DeVries, CAS, Treasurer Camp Construction Services Grant Crowell, CAS, Immediate Past President The Urban Foresters MEMBERS Marivel Bownds, CAS, Valet Living Dixie Caldwell-Greer, CAS, The Liberty Group Shaun Callaway, CAS, Earthworks Peggy Charles, CASE, Fidus Construction Services Sean Cunningham, CAS, Flooring Warehouse Deborah DeRouen, CAS, Designs By Holmes

Dan James, CAS, Redevelopment Services Debra Knight, CAS, Valet Living Stephanie Krop, CASE, Poolsure Liz Levins, CAS, Rasa Floors Candis Mohr, CAS, AAA Plumbers Tracey Moore, CAS, Flooring Warehouse Doug Oehl, CAS. Flooring Warehouse 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 1976 Great American Business Products 1977 Webb Pest Control 1978 Houston Metro Electrical Corp The Liberty Group 1981 AmRent Marvin F Poer & Company 1983 Sherwin Williams Company 1984 RENCON 1985 Gemstar Construction Development Inc 1986 ApartmentData.com 1988 W Partnership 1992 Alexander-Rose Associates 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 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 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 Gateman Inc Greater Houston Pool Management Holder's Pest Solutions Infinity Power Partners Kathy Andrews Interiors Notifii LLC Pace Mechanical Services The Allshouse Group LLC The Lane Law Firm Wilsonart 2016 Action Window Coverings Allied Fire Protection LP Bath Fitter Cinch – Cabinet Refacing Kits Citi Fence & Concrete E-Systems Pest Management Inc Ecolo Environmental Inc Embark Services Fidus Construction Services Fun Abounds Green City Security LLC Guardian Chimney Sweep Halo Doors Inc JLL Johnstone Supply KONE Leah McVeigh Design and Consulting Liquid Waste Solutions Paul Davis Restoration North Houston RAM Construction Sparkle Wash Pressure Washing Texas Southwest Floors Inc The Home Depot WASH Multifamily Laundry Systems WellKept Whitmans Contracting and Roofing 2017 ACT Security Group All About Doody Pet Solutions LLC All American Mailboxes of Houston Inc Allegion American Fire Protection Group Apartment Total Services APTexx Inc BioTechs Crime & Trauma Scene Cleaning South Houston Buddy's Roofing & Construction Co Cano Electric 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 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 Rent Accelerator SEAL Security Solutions LLC Secure Insurance Swiff-Train Company Symmons Industries Texas Engineered Roofing & General Contracting USA Patrol Division Vima Decor Willbanks & Associates Inc 2018 12 Stones Roofing A Homestead Specialist LLC AAdvantage Laundry Systems AirAide LLC Allura Apartment Lines Apex Lighting LLC Archcon Arizona Tile Assa Abloy Astros Carpet & Painting Inc Bank Financial BBO Professional Carpet Cleaning Bee Man Dan Benefits 4 Rent Brannan Designs LLC Architecture & Interior Design C&D Towing LLC Capital Sign Associates CashFlow Pros LLC Centex Construction CenturyLink CG Sorelle Group LLC Construction ECO Services Durastone Corporation Featherston Sign Partners

Finish Factory Inc Green Garbology Greenseen Guardian Gutters H&H Fire and Security H&R Operator Services Inc Higginbotham HMS LLC Jet Wrecker Service K-Simon Construction Kastle Systems Ledge Lounger Lockmer Collins Roofing LLC DBA Roof Repair Squad 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 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 Surface Designers Remodeling Inc Swadley Roof Systems LLC Tanza Granite Inc TDECU Insurance Agency Texas Premier Builders/Designs Texas Steam - Laars Heating Systems Tropical Roofing Products USI Southwest Vistex Graphics LLC Westlake Home & Commercial Services Wholewood Cabinets Wildlife Removal Experts Windstorm Restoration Wonder Wall Wraps Inc WS National Construction Services LLC 2019 AAA Texas Absolute Construction LLC Action Towing, Inc Advance LED Solution Al Hicks & Associates / Allstate AmCap Insurance Anchor Roofing Inc Andrews Myers PC Atom4 Security Camera & Electronics August & Suttles Contractors Beekman Company LLC Beyond Contractors LLC Builders Direct Depot Classic Touch Painting CLS Technology Inc Consolidated Communications Dal-Tile Corporation DNM Contracting Inc Door Clearance Center Enforce Security Services Epic Air Conditioning Green Faubourg Lawn & Landscaping LLC Harding & Carbone Inc Howitzer Building Engineers Inc IGD Plumbing LLC In Service Security LLC Interior Logic Group Property Services J and B Carpet Services Ledtech LP Building Solutions: Louisiana-Pacific Corporation LSR Multifamily McKenzie Drake Corporate Housing Morris Contracting NSJ Painting & Flooring Odor-DeFence/BugDeFence One Hour Air Conditioning & Heating PHR A/C & Heating Pool Knights Prime Texas Metal Roofs Prime Texas Surveys LLC Rainey Richardson Interiors, Signal 88 Security of The Woodlands & East Houston Strata Roofing and Construction LLC Target Restoration Services Texas Management Group Three Amigos Texas LLC Total Renovation Services Turnage & Associates Window World Winhill Advisors Woodlands Water Restoration

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ABODE

JUNE 2019 I VOLUME 42, ISSUE 6 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, CAE asherbondy@haaonline.org CONTRIBUTING STAFF Vice President and General Manager SUSAN HINKLEY, CAE shinkley@haaonline.org Vice President of Professional Development EMILY HILTON, CPP, CAE 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, CMP lwolfson@haaonline.org Director of Rental Credit Reporting TINA DEFIORE tdefiore@haaonline.org Director of Outreach LAUREN TURNER, CMP lturner@haaonline.org Public Affairs Specialist ALPA PATEL apatel@haaonline.org Education and Meetings Coordinator KAREN MITCHELL kmitchell@haaonline.org Membership and Marketing Manager 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 APARTMENT ASSOCIATION COMMITTEES COMMITTEE CHAIR STAFF ADVISOR Executive . . . . . . . . . . . . . . . . . . . . . .STARLA TURNBO . . . . . . . . . . .JEFF HALL Program & Budget . . . . . . . . . . . .CLAY HICKS . . . . . . . . . . . . . . . . .JEFF HALL Nominating . . . . . . . . . . . . . . . . . . .MICHELLE PAWELEK . . . . . . .JEFF HALL Ethics . . . . . . . . . . . . . . . . . . . . . . . . . .BETH VAN WINKLE . . . . . . . . .JEFF HALL Investment . . . . . . . . . . . . . . . . . . . .JOHN BORIACK . . . . . . . . . . . . .JEFF HALL Fair Housing . . . . . . . . . . . . . . . . . . .MICHELLE PAWELEK . . . . . . .JEFF HALL By-Laws . . . . . . . . . . . . . . . . . . . . . . . .KYLE BROWN . . . . . . . . . . . . . . .JEFF HALL Past Presidents Council . . . . . . .ALISON HALL . . . . . . . . . . . . . . . .JEFF HALL Strategic Outreach . . . . . . . . . . . .JOHN BORIACK . . . . . . . . . . . . .LAUREN TURNER Legislative . . . . . . . . . . . . . . . . . . . . .CLAY HICKS . . . . . . . . . . . . . . . . .ANDY TEAS HAA Political Action Committee . . . . . . . . . . . . . . . . . . . .STACY HUNT . . . . . . . . . . . . . . . .ANDY TEAS Multifamily Fire Safety Alliance . . . . . . . . . . . . . . . . . . . . . . . . .JOHN FEDORKO . . . . . . . . . . . .ANDY TEAS Developers . . . . . . . . . . . . . . . . . . . . .TODD TRIGGS . . . . . . . . . . . . . . .ANDY TEAS Century Club . . . . . . . . . . . . . . . . . . .DEREK DEVRIES . . . . . . . . . . . .ALPA PATEL PAC Fundraising . . . . . . . . . . . . . .DAVID JONES . . . . . . . . . . . . . . .ALPA PATEL Media Relations . . . . . . . . . . . . . . .NORMA ALVEAR . . . . . . . . . . . .ALPA PATEL Golf . . . . . . . . . . . . . . . . . . . . . . . . . . . .KIM SMALL . . . . . . . . . . . . . . . . . .ALPA PATEL Leadership Development . . . . .JACKIE RHONE . . . . . . . . . . . . .SUSAN HINKLEY Product Service Council . . . . . . .JACOB KUNATH . . . . . . . . . . . .SUSAN HINKLEY Community Outreach . . . . . . . .TRACIE YODER . . . . . . . . . . . . . .SUSAN HINKLEY Resident Relations Appeals . . .DARLENE GUIDRY . . . . . . . . . .MATILDE LUNA Resident Relations A . . . . . . . . . .ELAINE LEEPER . . . . . . . . . . . . .MATILDE LUNA Resident Relations B . . . . . . . . . .KATHY MOTIS . . . . . . . . . . . . . . .MATILDE LUNA Membership . . . . . . . . . . . . . . . . . .CRYSTAL JACKSON . . . . . . . .AMANDA SHERBONDY Ambassador ONE Society . . . .MARIVEL BOWNDS/ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .RYAN WEIS . . . . . . . . . . . . . . . . . .AMANDA SHERBONDY 2019 Expo . . . . . . . . . . . . . . . . . . . . .LAURA LESTUS . . . . . . . . . . . . . .AMANDA SHERBONDY Education Advisory Council . . .STEPHANIE GRAVES . . . . . . .EMILY HILTON Career/Community Development . . . . . . . . . . . . . . . . . .KELLY SUESS . . . . . . . . . . . . . . . .EMILY HILTON NEXT . . . . . . . . . . . . . . . . . . . . . . . . . . .PATRICK MAGNUSON/ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .NIKKI SEKUNDA . . . . . . . . . . . .EMILY HILTON ACES Task Force . . . . . . . . . . . . . . .DIANE GILBERT . . . . . . . . . . . . .EMILY HILTON HAF Fundraiser . . . . . . . . . . . . . . . .MICHELLE PAHL/ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .DAN JAMES . . . . . . . . . . . . . . . . .LAUREN WOLFSON HAA Street Team . . . . . . . . . . . . . .BRANDON THOMAS . . . . . . . .LAUREN WOLFSON Property Awards . . . . . . . . . . . . . .RICHARD WALL/ . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .PENNY SPRANG . . . . . . . . . . . .TINA DEFIORE IT Task Force . . . . . . . . . . . . . . . . . . .JOE BRYSON . . . . . . . . . . . . . . . .ART EIDMAN 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. 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, JUNE 2019 VOLUME 42 ISSUE 6 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© 2019 by HAA. Periodicals Postage Paid at Houston, Texas. POSTMASTER: Send address changes to ABODE, 4810 Westway Park Blvd., Houston, Texas 77041.

www.haaonline.org

June 2019

ABODE

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Celebrate theBest!

T T

Don’t miss our annual toast to the best and brightest in multifamily. Join us for the 2019 Houston Apartment Association Honors Awards Ceremony.

Thursday, June 13 6 p.m. to 9 p.m. Hilton Americas 1600 Lamar St., Houston, Texas 77010

$115/person Don’t miss the Early Bird Discount: Save $20 – Only $95 if payment is received by June 6 Tables of 10 may be reserved by company name when paid in full. Requests for refunds must be received in writing by the end of business day on June 6 and will be subject to a $50 cancellation fee. No refunds will be granted after June 6 or for no shows. No refunds will be given for individual tickets, but tickets are fully transferable.

For reservations and information, contact events@haaonline.org or register online at www.haaonline.org/honors.

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Letter from the President

By STARLA TURNBO, 2019 HAA President

WHERE IS THE APARTMENT MARKET HEADING IN 2019? A number of unforeseeable incidents over the last few years have shifted the direction of Houston’s apartment market. It started with the oil bust of 2015-16 and the over-production of multifamily construction in 2016-17. The Super Bowl gave us a small economic boost, and as devastating as Hurricane Harvey was to the overall Houston community, it raised occupancy and rent rates. Where are we today and where are we going? Starting on Page 40, ApartmentData.com’s Bruce McClenny answers those questions, guiding us from where we started in 2016 to where we are heading in 2019. Harvey was a hurricane that sparked multiple weather events, hail storms, tornados and flooding, a couple of which inflicted damage to many apartment communities’ roofs. You may still have questions about insurance claims that pertain to weather incidents, and if you don’t, I can guarantee you will learn something new in the article on Page 52. This article presents important and helpful information on when to file a weather claim, how to go about filing a claim and how you can better protect your roof. Finding quality, passionate and hardworking Finding quality, passionate and hardworking taltalent is certainly a talked about topic. ent is certainly a talked about topic. I believe you I believe you can teach skills, but you can’t can teach skills, but you can’t teach those innate teach those innate qualities, such as attitude, qualities, such as attitude, charisma and determinacharisma and determination, the true tion, the true driving forces for success. If you can driving forces for success. If you can find find upbeat, self-starters who are fearless, you can upbeat, self-starters who are fearless, teach anyone a skill. The key is cultivating a culture you can teach anyone a skill. that encourages effective training. The article on Page 56 offers excellent ideas for finding the right talent and an effective strategy for training. As of press time, the 86th Texas Legislature was still in session. By the time you read this, the 86th Legislative Session will have concluded. In the July magazine, ABODE will include the important items that came out of the session relative to the apartment industry. In his monthly column on Page 9, HAA President-elect and Legislative Chair Clay Hicks writes about the Harris County Fire Code’s newest chapter, which was influenced by the hard work of HAA representatives and partners. HAA General Counsel Howard Bookstaff reminds property managers of hot summer issues such as swimming pool rules, air conditioning issues, barbecue legalities and more in his column on Page 11. In HAA Events The 2019 HAA All Stars Sports Challenge was unfortunately canceled due to weather, but your hard work and time was greatly appreciated, and it wasn’t for waste. All proceeds will still go to Crime Stoppers of Houston. CEO Rania Mankarious will be accepting a check for $20,000 at the HAA Board Meeting in July, where Mankarious will speak about the programs Crime Stoppers offers to improve public safety in Houston. Thank you to the volunteers, sponsors, teams and spectators who dedicated their time, money and energy to the Sports Challenge. I’d like to also thank everyone who attended, sponsored, volunteered and exhibited at the 2019 HAA Education Conference & Expo! Expo Chair Laura Lestus, The Liberty Group, and Education Conference Chair Stephanie Graves, Q10 Property Advisors, put a lot of passion and hard work into making our expo radiate this year. Congratulations to Lestus, Graves, the Expo Committee and the HAA staff. Another successful expo is behind us. Another big event is coming up, the 2019 HAA Honors Awards. It will be held at the Hilton Americas in Downtown Houston on Thursday, June 13. If you have any questions about the event, email HAA’s Meetings and Events Director Lauren Wolfson at lwolfson@haaonline.org and register to attend online at www.haaonline.org. I hope to see you at our industry’s leading award program.

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June 2019

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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

June Patron of the Month

ABODE

June 2019

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 CLAY HICKS, HAA Legislative Chair, with ANDY TEAS, CAE, Vice President of Public Affairs

HARRIS COUNTY FIRE CODE CHANGES County agrees to five-year phase-in for new alarm requirements.

AS HARRIS COUNTY struggles to manage the increasingly urban area within its unincorporated jurisdiction, county commissioners have adopted a major fire code update that will create two significant new requirements for many existing apartment properties. Counties in Texas, more than anything, were designed to be the local branch offices of the state government. It was always assumed that urban areas would incorporate as cities, since city governments were designed to deal with urban problems. Counties don’t have building codes because…why would you need a building code for a haybarn or a tractor shed? For a lot of complicated political and financial reasons, Houston’s city limits basically stopped growing in the 1970s, even as the population of the region grew exponentially. Today, if unincorporated Harris County were a city, it would be the fifth largest city in the United States – exceeding the next largest (Philadelphia) by more than a million people. Without home-rule powers or ordinance-making authority, many feel that the county government is ill-equipped to deal with the growing urban population of our region. One regulatory power Texas legislators gave to urban counties is the power to enact a fire code. While the Harris County Fire Code, first enacted a decade ago, was originally intended only to address new construction, safety concerns have prompted county officials to include some provisions to create some basic safety requirements for existing buildings. If you have an apartment community in unincorporated Harris County, there are two new requirements you need to implement within the next few years – sooner if you're doing a major rehab. The Harris County Fire Marshal’s Office is a regular participant in the Multifamily Fire Safety Alliance, a group of apartment owners, fire officials and habitability inspectors that

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meets regularly to compare notes on fire safety issues. Fire Marshal Laurie Christensen reached out to HAA in 2018 to ask for our help in developing a way to apply the existing building requirements from the 2018 International Fire Code (IFC) in a way that made economic sense. There were two key issues: First, the IFC requires existing units to have carbon monoxide alarms in buildings with either gas appliances or enclosed garages. The City of Houston doesn’t apply this requirement to apartment buildings, but county officials want to find a way to provide this additional safety measure to residents in those units. Second, the IFC provides that many large, un-sprinklered apartment buildings need to be retrofitted with monitored pull-station fire alarms – an incredibly expensive modification. The model code provides an exception for apartment units with smoke alarms interconnected within each unit (if one goes off, all of them in that unit will go off). There’s some ambiguity on whether the interconnection must be hard-wired or if wireless interconnection is allowed, and there’s also some question on whether the devices have to be hard-wired for power or if they can be powered by a battery. Houston applies this requirement only to hotelstyle properties with units opening into enclosed corridors. Both of these are contained in chapter 11, which is a brand-new chapter for the Harris County Fire Code. HAA members support additional common-sense safety measures, but argued that an orderly schedule for implementation would be critical. Thanks to the hard work of HAA representatives, the fire safety professionals of the Harris County Fire Marshal’s Office and Fire Marshal Christensen, here are the two key parts of the new requirement in layman’s terms: By Jan. 1, 2025, in unincorporated Harris

County, units in buildings with either enclosed garages or gas appliances must be equipped with a carbon monoxide alarm. By Jan. 1, 2025, in unincorporated Harris County, un-sprinklered apartment buildings with more than 16 units (or that are more than three stories high) must install a monitored pull-station fire alarm system or have the smoke alarms in each unit interconnected. This means that within each unit, if one smoke alarm goes off, all the alarms in that unit go off. This can be done wirelessly, and the smoke alarms can be battery powered. Easily-installed interconnected smoke alarm systems are available with DIP switches (dual in-line processing) that allow the devices to be programmed like a garage door opener to communicate only with other selected devices. If your property undergoes substantial renovation or reconstruction requiring plan approval and permit issuance before 2025, you will be required to complete this retrofit as part of the construction work. Additionally, interior renovation that involves replacing wall(s) and ceiling sheetrock may trigger a hard-wired interconnected smoke alarm system, as is required in all new residential construction. If you are planning to renovate a property in unincorporated Harris County in the next few years, make sure to budget for these additional requirements. Even without major renovation, 2025 will be here sooner than you think. Now is the time to start planning for this new requirement, and for buyers to begin looking for this as they consider new investments in the suburbs. If you have a regulatory problem or question, call the HAA main line at 713-595-0300 and ask for Public Affairs. If a particular code requirement or issue concerns you, let us know by emailing Andy at ateas@haaonline.org.

June 2019

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It’s the Law

By HOWARD BOOKSTAFF, Hoover Slovacek LLP , HAA General Counsel

SWIMMING POOLS, AIR CONDITIONING, BARBEQUE AND MORE! Let’s have some summer fun! (Legally speaking, of course.) YOU KNOW IT’S summer in Houston when the temperature reaches 80 degrees and the humidity reaches 90 percent...at 6:00 a.m.! Kids are out of school. Everyone is at the pool. Air-conditioning usage is at its peak. Outdoor barbecue parties are all the rage. Unfortunately, with all the fun comes potential liabilities. To make sense of it all, you may need a checklist of at least some of the things you have to take care of to help you get through the summer months. Before jumping in the pool, lets wade through some of the issues you may encounter. Swimming Pools: Rules Persons under a certain age may be restricted from using the pool without proper supervision. However, rules that unreasonably target children may be deemed discriminatory on the basis of familial status. Therefore, efforts should be made to develop rules that address a legitimate concern (such as safety) in the least discriminating way. In other words, the rules should narrowly target the subgroup of children to which the legitimate concerns apply. Adults, as well as kids, like to have fun. You might consider restricting the number of guests that can be in the pool area and require that all guests be accompanied by a resident. General conduct rules can focus on disruptive, noisy and obnoxious behavior. These rules might include restrictions on alcoholic beverages and rowdy activity. Establish pool hours, too, and include it in your rules. Signage Signage should comply with Rule 265.199 of the Texas Administrative Code, which rewww.haaonline.org

quires certain language regarding no diving, use of the pool by children without adult supervision and telephones. Signage can also reiterate many of the rules regarding use and behavior.

Whether you want to adopt or modify rules is up to you, however, if you decide to make rule changes, keep in mind that the TAA lease allows you to do so, even during the term of the lease. Pursuant to Section 19.1 of the TAA lease, you may make reasonable changes to written rules, and those rules can become effective immediately if the rules are distributed and applicable to all units in the apartment community and do not change dollar amounts on pages one or two of the lease.

Enclosures The City of Houston ordinances and state law require owners of an apartment community to completely enclose the pool yard with a pool yard enclosure. These requirements can be found in Chapter 757 of the Texas Health and Safety Code (https://statutes.capitol.texas.gov/ Docs/HS/htm/HS.757.htm).

Pool Safety Features Rule 265.199 of the Texas Administrative Code also contains a number of specific safety features for pools and spas including requirements for handholds, float lines, floor markings, depth markers, lifeguard chairs and equipment (if applicable), pool safety equipment, telephones and lighting.

The addendum also requires residents to follow any rules about replacing air filters. Prolonged moisture can come from a wide variety of sources including air-conditioning drip pans or clogged air-conditioner condensation lines. Although the addendum contains valuable information for any season, during summer when air conditioning usage is frequent and air temperatures inside dwellings are kept cool, special attention should be given to these issues.

Air Conditioning Issues: Mold Prevention During our hot, humid summers, we need to be diligent about the potential for moisture build-up inside units, which are typically those that have the air-conditioner blasting. You may want to remind residents of the tips in the TAA Mold Information Prevention Addendum to minimize the potential for mold growth and to avoid moisture buildup. The mold addendum states that if a dwelling has exhaust fans in the bathroom and kitchen, the fans should be turned on before showering or cooking with open pots.

Be Ready to Make Repairs The Texas Property Code requires owners to make a diligent effort to repair or remedy conditions in units after the owner receives proper notice. Procedures should be in place to allow you to receive requests and address issues in a prompt and correct manner. Airconditioning requests during hot summer months tend to be numerous and urgent. Be prepared! Work orders should reflect what was requested, what was done and when the work was completed. Legible, well-written work orders can form the basis of your defense to claims that you have not acted properly. June 2019 ABODE

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Grills: ď&#x192;źCity Code The Houston Fire Department Life Safety Bureau Standards and Codes requires that portable barbecue pits, charcoal grills and other open-flame cooking devices outside of a building shall not be operated on combustible balconies or located within 10 feet of combustible walls or roofs or other combustible materials. The International Fire Code, (which has been adopted by the City of Houston with certain amendments), provides that charcoal burners and other open-flame cooking devices should not be operated on combustible balconies or within 10 feet of combustible construction. ď&#x192;źRules Appropriate rules should be adopted and made part of your community policies stating where residents can use open-flame cooking devices such as barbecue pits and charcoal grills. These open-flame cooking devices should not be allowed to be used within 10 feet of a building (including a balcony area).

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General Conduct: ď&#x192;źLate Night Gatherings As a kid, summers were great. We stayed up late, had friends over and got into all sorts of trouble. As adults, we worry about our kids staying up late, having friends over and getting into all sorts of trouble! As an apartment manager, you may want to be prepared to handle late night disturbances, noises, vandalism and other issues that may arise because of increased nighttime activity. These provisions and rules should be enforced on an equal and consistent basis. All violations should be documented. If a complaint is made, proper steps should be taken to address the situation. This can be through a notice of lease violation, notice to vacate or notice of lease termination.

lease. Pursuant to Section 19.1 of the TAA lease, you may make reasonable changes to written rules, and those rules can become effective immediately if the rules are distributed and applicable to all units in the apartment community and do not change dollar amounts on pages one or two of the lease. By checking your rules, taking certain precautions and requiring residents to act in a responsible and sensible manner, you may also be able to have some summer fun.

Whether you want to adopt or modify rules is up to you, however, if you decide to make rule changes, keep in mind that the TAA lease allows you to do so, even during the term of the

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Resident Relations from the RESIDENT RELATIONS COMMITTEE

A FATAL EVICTION

A resident is evicted after a fatal shooting, but she doesn’t owe the property a dime. A RESIDENT FILED a complaint with

HAA to dispute cleaning charges. The resident also inquired about an eviction. This resident claimed she followed proper procedure in moving out of her unit. Before she moved out, a relative had possession of her keys while the resident was on vacation. While the resident was out of town, a fatal shooting occurred involving the resident’s relative. After move-out, the resident owed the property $1,295 for biohazard cleanup and an additional $90.17 in rent and utilities. The resident didn’t realize that she was also evicted. Management responded to HAA and that response was forwarded to the resident. Because of the fatal shooting, management felt

The HAA Resident Relations Committees provide

the resident was evicted an impartial review of resident complaints using rightfully and charged acthe documentation provided by both the resident cordingly for the incident. and management. Following the incident, management purged all files following the sale of the Because management failed to provide property. Therefore, the resident’s documents documentation, the committee ruled in favor could not be provided. of the resident. Management is to remove Enclosed was a copy of the resident ledger, charges totaling $1,385.17. The committee which was retrieved electronically. suggested the resident pursue the eviction in After reviewing the case, the committee desmall claims court. cided in favor of the resident. When a property fails to provide required documentation, the If you are a manager with a resident cases are automatically ruled in favor of the relations issue, call HAA at 713-595-0300. resident and all money owed to the property for direct assistance. is dropped. 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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Biscuits Business

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I do declare p i h s r o s n o p S ’s t i ! e m i t n o i t c u A Sponsorsh ip Auction ness with great t and your busi Bless your hear e over yonder portunities. Com tion and get networking op ocia Apartment Ass to the Houston ! your bidding on with southern be full as a tick I reckon you’ll business and ions. Mind your snacks and libat ic with HAA. me have a picn your biscuits, co miss it! a wet hen if you You’ll be mad as

Thursday, June 20

*Need a hand?

If you have never attended one of our auctions before, come early to Auction 101 session at 2:30 p.m. to find out how to bid, what's for sale and tips on how to improve your sponsorship.

Can’t make it? If you can't make the live auction,

proxy bidding is available until the end of the day Monday, June 17! Email Amanda Sherbondy at asherbondy@haaonline.org for information.

Visit www.haaonline.org /sponsor

for more details. Auction program available on June 1.

Events on the itinerary include the Dinerstein Golf Tournament, Annual Business Meeting, Chili Fest, Installation Gala, State of the Industry Breakfast, Avenue Programs, Lifetime Achievement Award Program and a whole line-up of education sessions and seminars.

HAF Dinerstein Reed Prokop Education Center, 4810 Westway Park Blvd. off Clay Road just east of Beltway 8

Auction 101: 2:30 p.m. Registration/Drawing Lots Open: 3 p.m.

Drawing Lots close: 3:45 p.m. Live Auction begins: 4 p.m. RSVP to Amanda Sherbondy at asherbondy@haaonline.org

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Does anybody know what time it is? It’s Bowl(ing) Time! That’s right! Grab your tool bag, nail down your best players and build your best game ever for the 2019 HAA Bowling Tournament. • Build your best team to compete in the team and individual scoring contests.

Sponsored by

• Fix up your creative costumes for the team and individual costume awards. • Restore your energy with lunch and libations.

2019 HAA Bowling Tournament Registration/Practice – Noon to 12:45 p.m. Tournament begins at 12:45 p.m. Spectators – $30/person Teams (5 players) – $300 Maximum of two teams per company. Price includes 3 games, shoes and lunch.

Friday, August 16

Copperfield Bowl

15615 Glen Chase Drive Houston, TX 77095 Register online at www.haaonli ne.org

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Upcoming Education

JUNE CAS: Supplier Success Monday, June 3 10 a.m. to 3 p.m. Program fee: $695 Class participants will learn the economic impact of the multifamily housing industry along with the understanding the types of ownership, management and financing. Learn how to identify decision makers and how to utilize resources, timing and opportunities to boost your success. Introduction to Microsoft Excel Wednesday, June 5 8:30 a.m. to noon Program fee: $75 Learn to conquer your fear of the spreadsheet! This great-forbeginners course offers a detailed look into this multi-faceted, often daunting program. HAA NEXT Professional Development Breakfast Friday, June 7 8 a.m. to 10 a.m. Program fee: $10 Sponsored by ICONstrux Design + Build This niche group within HAA is dedicated to the networking and professional development needs of HAA members 40 and younger. Network with your peers at this low-cost breakfast and grow your career together among the next generation of HAA leadership. This month's topic is to be announced. EDUCATION OUTREACH: Baytown Legal Seminar: Baytown Tuesday, June 11 8:30 a.m. to noon

From the HAA EDUCATION DEPARTMENT

Location TBA Program fee: $65 prior to June 9; $80 onsite Sponsored by Brook Furniture and The Liberty Group Join HAA Legal Counsel Howard Bookstaff and your fellow HAA members for our Outlying Legal Seminar. This seminar fulfills the NAA Continuing Education Course requirement of fair housing training required of all CAM, CAPS, NALP and CAMT credentials. This course is worth three CEC credits. Topics include: Fair housing, evictions and a legislative update. Register at www.haaonline.org/2019legal seminar Leasing 101 (Day and a half) Tuesday, June 11 8:30 a.m. to 4 p.m. 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 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/programs/pdf/leasing101 _2018.pdf. Avenues: Supplier Circle – Session 2 “You’re Here … You’re There … You Can’t be

Everywhere! Dealing with Distraction in a Distractible World” with Lori Snider Monday, June 17 8:30 a.m. to noon Program fee: $50 Learn how to deal with the distractions in your day-to-day world by focusing on prioritization and understanding the importance of timing. Take away 10 steps to improve your productivity and sanity. See Page 22 for more information. Industry Math Tuesday, June 18 8:30 a.m. to noon Program fee: $99 Sponsored by Brook Furniture Rental A new curriculum authored by the National Apartment Association, this half-day workshop is an excellent opportunity to sharpen your mathematical skills in preparation for attending any of the credential programs. From calculating percentages, to converting fractions (remember those?) and understanding averages and more, this is your chance to “go back to school” in a relaxed and low-stakes environment. Learn how various mathematical calculations influence operations and get introduced to the more advanced concepts you’ll need to know to advance in your industry career. Introduction to Microsoft Excel Wednesday, June 19 8:30 a.m. to noon Program fee: $75 Learn to conquer your fear of the spreadsheet! This great-for-

beginners course offers a detailed look into this multifaceted, often daunting program. ACES June Luncheon Friday, June 21 11:30 a.m. to 1:30 p.m. Program fee: $55 Sponsored by Prime Texas Metal Roofs and Texscape Services Please note that this program is open only to executives in property management (owners, presidents, regionals, supervisors, marketing/training directors, etc.). Eligible attendees to ACES luncheons are permitted to invite any of their staff to the programs, provided the registration also includes at least one person at the supervisor level or above.

JULY Certified Pool Operator Course (Two days) Wednesday, July 10 through Thursday, July 11 8:30 a.m. to 5 p.m. Program fee: $299 Successful completion of this two-day course will result in a five-year certification from the National Swimming Pool Foundation and ensures pool chemicals are being used properly and when appropriate. We will dispel the myths in pool care and tremendously reduce chemical expenses and extend the life of your pool. This is recommended for anyone working with pools, as well as property managers, in order to be up-to-date regarding local codes and to reduce risk and liability. The course fee of $299 per person includes textbook, exam fees and meals for both days. / See Education, Page 26

SCHEDULE AND FEES

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

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. June 2019

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JUNE S M T

Calendar HAA Education, Events and Meetings SCHEDULE

W T

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

S 1 8 15 22 29

JULY S M T W 1 2 3 7 8 9 10 14 15 16 17 21 22 23 24 28 29 30 31

T 4 11 18 25

F 5 12 19 26

S 6 13 20 27

JUNE 3

CAS: Supplier Success Monday, June 3 10 a.m. to 3 p.m.

HAAPAC Luncheon Thursday, June 6 11:30 a.m. to 1 p.m. Program fee: $30 per HAAPAC member; $40 per non-HAAPAC member Contact Alpa at apatel@haaonline.org for details. Sponsored by Hoffer Furniture

2019 Honors Awards Thursday, June 13 Hilton Americas 1600 Lamar Street Houston, 77010 The Honors Awards recognizes the industry's finest multifamily professionals and properties. See Page 6. Individual Awards presented by FSI Construction and The Liberty Group Property Awards presented by Ameritex Movers and Texscape Services. Reception presented by AAA Plumbers.

Biscuits and Business Sponsorship Auction Thursday, June 20 3 p.m. to 5 p.m. Join us for the June Sponsorship Auction! Sponsoring an event in 2019 is a great way to gain recognition for your company. Over 70 events will be up for auction, and drawings and proxy bidding will be available. If this is your first time, arrive early at 2:30 pm for the Auction 101 to learn how the auction works and what events up for bid. Contact Amanda Sherbondy at asherbondy @haaonline.org or 713-595-0316 and see Page 16.

4 HAA Blood Drive Tuesday, June 4 9 a.m. to 1 p.m.

5 Introduction to Microsoft Excel Wednesday, June 5 8:30 a.m. to noon Leadership Lyceum Session Four Wednesday, June 5 9 a.m. to 1 p.m. This session will cover professional development programs and career promotion along with operational and governance items for HAA, TAA and NAA. New Supplier Member Orientation Wednesday, June 5 3 p.m. Craft Republic 11470 Westheimer, 77077 All new supplier members welcome. Contact Amanda at asherbondy@haaonline.org for details. Ambassador ONE Society Meeting Wednesday, June 5 4 p.m. to 5:30 p.m. Craft Republic 11470 Westheimer, 77077 Contact Amanda at asherbondy@haaonline.org for details.

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Supplier Education Program Thursday, June 6 2 p.m. to 4:30 p.m. See Page 23 for details.

7 HAA NEXT Professional Development Breakfast Friday, June 7 8 a.m. to 10 a.m. Sponsored by ICONstrux Design + Build

11 Legal Seminar: Baytown Tuesday, June 11 8:30 a.m. to noon SpringHill Suites Baytown 5169 East Fwy, Baytown TX 77521 Sponsored by Brook Furniture and The Liberty Group

17 Avenues: Supplier Circle – Session 2 “You’re Here … You’re There … You Can’t be Everywhere! Dealing with Distraction in a Distractible World” with Lori Snider Monday, June 17 8:30 a.m. to noon See Page 22 for more information.

18 Industry Math Tuesday, June 18 8:30 a.m. to noon Sponsored by Brook Furniture Rental

Leasing 101 (Day and a half) Tuesday, June 11 8:30 a.m. to 4 p.m.

Introduction to Microsoft Excel Wednesday, June 19 8:30 a.m. to noon

Go-Getters Happy Hour Wednesday, June 19 3:30 p.m. to 5:30 p.m. Cadillac Bar 1802 Shepherd Drive, 77007 Join the Go-Getters and help strengthen your association. See Page 66 more information. Sponsored by Crestmark Construction Services and Rasa Floors

Resident Relations Committee A Wednesday, June 12 2 p.m.

20 Onsite-Goes-Offsite: Lake Jackson Thursday, June 20 4 p.m. to 6 p.m. Wurst Haus 102 This Way, Lake Jackson, TX 77566 Due to limited seating, this meeting is open to on-site personnel only. "Networking means the act of exchanging information with people who can help you professionally, " author Michele Jennae said. Calling all Lake Jackson and surroundingarea onsite personnel, come meet your fellow industry peers by joining us for a little networking and fun. Your first drink is on us! Please contact the HAA Outreach department at outreach@haaonline.org if you have any questions. Sponsored by Rasa Floors

24 Meet Up Monday Monday, June 24 8 a.m. to 5 p.m. Do you work from home? Need a break from working alone? Come network and work with your fellow members and industry peers.

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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.

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.

JULY 3

New Supplier Member Orientation Wednesday, July 3 3 p.m. Craft Republic 11470 Westheimer, 77077 All new supplier members welcome. Contact Amanda at asherbondy@haaonline.org for details.

Avenues: Leadership 2 – “Don’t Call Me the ‘B’ Word: The Loss of the Boss and Love of the Leader” with Leah Brewer Tuesday, July 16 8:30 a.m. to noon See Page 22 for more information. Sponsored by The Liberty Group

Extreme CAM (continued, three days) Thursday, July 25 8:30 a.m. to 5 p.m.

HAAPAC Luncheon Monday, July 29 11:30 a.m. to 1 p.m. Program fee: $30 per HAAPAC member; $40 per non-HAAPAC member Contact Alpa at apatel@haaonline.org for details. Sponsored by Arizona Tile

Ambassador ONE Society Meeting Wednesday, July 3 4 p.m. to 5:30 p.m. Craft Republic 11470 Westheimer, 77077 Contact Amanda at asherbondy@haaonline.org for details.

The Woodlands Education Outreach – Human Resources “The Art of Hiring” with Leah Brewer Wednesday, July 17 8 a.m. to noon Sponsored by Brook Furniture and Houston Furniture Rental & Sales

4 HAA Offices Closed The HAA offices will be closed on Thursday, July 4 in observance of Independence Day.

8 HAA NEXT Committee Meeting Monday, July 8 6 p.m.

10-11 Certified Pool Operator Course (Two days) Wednesday, July 10 through Thursday, July 11 8:30 a.m. to 5 p.m.

10 Resident Relations Committee B Wednesday, July 10 2 p.m.

Advanced Excel Wednesday, July 17 8:30 a.m. to noon

18 Extreme CAM (Six days) Thursday, July 18 8:30 a.m. to 5 p.m. Extreme CAS (Three days) Thursday, July 18 8:30 a.m. to 5 p.m.

23 Leasing 101 (Day and a half) Tuesday, July 23 8:30 a.m. to 4 p.m.

Onsite-Goes-Offsite: Baytown Thursday, July 25 4 p.m. to 6 p.m. Due to limited seating, this meeting is open to on-site personnel only. "Networking means the act of exchanging information with people who can help you professionally, " author Michele Jennae said. Calling all Lake Jackson and surroundingarea onsite personnel, come meet your fellow industry peers by joining us for a little networking and fun. Your first drink is on us! Please contact the HAA Outreach department at outreach@haaonline.org if you have any questions.

30 Board Meeting Tuesday, July 30 4:30 p.m. to 6 p.m. Sponsored by HD Supply

Don’t miss the Go-Getters Meeting on June 19 3:30 p.m. at Cadillac Bar & Grill, 1802 Shepherd Drive, 77007 Join the club at our quarterly meetings and learn how you can recruit for HAA. Be the top recruiter for each quarter and win awesome prizes! 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 like-minded members. Get involved with Go-Getters and make lasting industry connections. Visit www.haaonline.org/gogetterscorner to get all the information you need.

Product Service Council Meeting Wednesday, July 10 2:30 p.m.

11 ACES June Manager Appreciation Luncheon Friday, June 21 11:30 a.m. to 1:30 p.m. Firehouse Saloon 5930 Southwest Freeway, 77057 Sponsored by Prime Texas Metal Roofs and Texscape Services

12 IROC Breakfast Friday, July 12 7 a.m. to 10 a.m.

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Supplier

CIR

Avenues: Supplier Circle – 2 June 17 You’re Here…You’re There…You Can’t Be Everywhere! Dealing with Distraction in a Distractible World with Lori Snider Learn how to deal with the distractions in your day-today world by focusing on prioritization and understanding the importance of timing. Take away 10 steps you can take to improve your productivity... and sanity!

Main

Avenues: Main Street - 3 August 15 Confidence in Sales With Lori Snider Confidence has nothing to do with the genes you were given – how traditionally beautiful you are, or how fit you are. High self-esteem comes from how you feel in any moment. In this session, you will learn 10 actionable ways to improve your confidence and your leasing abilities. Competence + Charisma = Confidence…an irresistible sales equation.

Follow a road that fits you career journey with Avenues. The Avenues series of seminars feature some of the best nationally-acclaimed speakers in the industry with learning sessions for every level of multifamily professional. There are five Avenues to choose from, Main Street, Maintenance Boulevard, Leadership Lane, Marketing Place and Supplier Circle. Follow just one path or pick and choose from all of the 15 great sessions.

Leadership

Don’t miss the next three sessions:

Avenues: Leadership Lane – 2 July 16 Don’t Call Me the “B” Word: The Loss of the Boss and Love of the Leader with Leah Brewer In today’s competition to recruit and retain top talent, having the right supervisor is key to a successful organization. Supervisors choose to be either a boss or a leader and this choice has a monumental impact. Leaders look to constantly improve and help others to do the same. Bosses care very little about self-improvement and are more focused on their own motivational drivers. If you are interested in motivating and inspiring those you lead, and encouraging a positive work atmosphere for maximum results, make the right choice.

Need just one Indiv

idu s per perso al sessions are pri eminar? n, a real s c teal for q ed at only $50 uality edu cation!

Sponsored by Annual Property Subscriptions are available with unlimited attendance for all on-site property staff to all sessions at discounted prices: • Only $199 per year per property for properties with fewer than 200 units • Only $399 per year per property for properties with 200 to 350 units. • Only $450 per year per property for properties with more than 350 units. If you need a single workshop, individual sessions are priced at only $50 per person, a real steal for quality education. Enroll today. Contact the HAA Education Department at education@haaonline.org or register online at www.haaonline.org.

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PSC Supplier Education Program Sponsored by the HAA Product Service Council Thursday, June 6 2 p.m. to 2:30 p.m. â&#x20AC;&#x201C; Registration/ Meet & Greet 2:30 p.m. to 4 p.m. â&#x20AC;&#x201C; Program Houston Apartment Association HAF Training Center 4810 Westway Park Blvd. off Clay Road and Beltway 8

FREE for Supplier Members

PSC Supplier Education Program The Product Service Council presents programs annually to help new supplier companies and new representatives to companies gain a better understanding of the opportunities available in the multifamily industry and HAA. The council is available to speak with any new member. Guest Speaker:

Joshua M. Evans Joshua M. Evans will be sharing his insight on building relationships. He has worked with 100s of companies from global firms to small businesses including Hilton, ReMax, ConocoPhillips, Sheraton, and The University of Houston. With 10+ years of sales experience, Josh marries his experience, knowledge and passion to help people enjoy and engage in work again. The program is free of charge so do not miss out!

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Property management supervisors and executives: Donâ&#x20AC;&#x2122;t miss this free networking opportunity that supports our industry.

Join Jill Bounds, Abbey Residential, and Shelley Watson, Morgan, for the 13th annual HAA Business Exchange, a great opportunity to learn about the latest industry products and services in a professional, controlled environment and give back to your industry.

Owners/Property Management: The Business Exchange is a forum where property management leaders are seated at tables while supplier representatives move around the room, selecting the individuals they wish to visit. Each visit has a five minute limit. Supplier companies pay for this opportunity and your attendance makes this possible. It is a great opportunity to support industry education at no monetary cost to you or your company. To take part in this great fundraising event, contact HAAâ&#x20AC;&#x2122;s Susan Hinkley at shinkley@haaonline.org.

Suppliers: You will have access to a number of property management leaders from owner executives to maintenance supervisors.

Thursday, August 8 9 a.m to 11 a.m. Ayva Center

The first two participants from your company pay $350 each with an option for a third participant at $375. Register at www.haaonline.org/business exchange and thank you for your support.

9371 Richmond Ave., Houston 77063 See more at: www.haaonline.org/businessexchange or contact Susan Hinkley at shinkley@haaonline.org or 713-595-0313 for more information.

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Education, continued from Page 19 ACES July Luncheon Thursday, July 11 11:30 a.m. to 1:30 p.m. Location: TBA Program fee: $55 Sponsored by Prime Texas Metal Roofs and Texscape Services Please note that this program is open only to executives in property management (owners, presidents, regionals, supervisors, marketing/training directors, etc.). Eligible attendees to ACES luncheons are permitted to invite any of their staff to the programs, provided the registration also includes at least one person at the supervisor level or above. IROC Breakfast Friday, July 12 7 a.m. to 10 a.m. Program fee: $25 per nonmember The Independent Rental Owners Connection (IROC) features customized education and networking programs just for you. Whether you're a brand-new apartment community owner or have been a part of the industry for many years, we encourage you to network within your fellow independent owners. Avenues: Leadership 2 – “Don’t Call Me the ‘B’ Word: The Loss of the Boss and Love of the Leader” with Leah Brewer Tuesday, July 16 8:30 a.m. to noon Program fee: $50

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Sponsored by The Liberty Group In today’s competition to recruit and retain top talent, having the right supervisor is key to a successful organization. Supervisors choose to be either a boss or a leader and this choice has a monumental impact. Leaders look to constantly improve and help others to do the same. Bosses care very little about self-improvement and are more focused on their own motivational drivers. If you are interested in motivating and inspiring those you lead and encouraging a positive work atmosphere for maximum results, make the right choice. In this interactive workshop, you will learn: the difference between a boss and a leader; factors that motivate the team to produce at discretionary levels; statistics on top talent acquisition and employee retention related to workplace leadership; how engagement and employee satisfaction contribute to the bottom line; and three top ways leaders can keep more employees. See Page 22 for more information. EDUCATION OUTREACH: The Woodlands Human Resources “The Art of Hiring” with Leah Brewer Wednesday, July 17 8 a.m. to noon Location: TBA Sponsored by Brook Furniture and Houston Furniture Rental & Sales Recruiting and retaining top superhero talent

within organizations is becoming a strategic focus in order to compete and win in today's competitive area. Create a dream team of action-employees who serve each other as they serve your company. You will discover tools and ideas to find employees who are our everyday heroes and sheroes. Motivate and retain those above-and-beyond workers whose actions increase the value of your assets and organization. Advanced Excel Wednesday, July 17 8:30 a.m. to noon Program fee: $75 Learn to conquer your fear of the spreadsheet! This great-for-beginners course offers a detailed look into this multi-faceted, often daunting program. Extreme CAM (Six days) Thursday, July 18 8:30 a.m. to 5 p.m. Program fee: $1,150 A super charged and accelerated six-day format, Extreme CAM is designed for experienced managers who wish to attain the CAM credential in a shorter duration with less time away from the property. Scheduled for Thursday, July 18 through Saturday, July 20 and Thursday, July 25 through Saturday, July 27. Classes will be held on Thursday, Friday and Saturday of each week from 9 a.m. to 5 p.m., with registration beginning at 8:30 a.m.

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Extreme CAS (Three days) Thursday, July 18 8:30 a.m. to 5 p.m. Program fee: $695 Extreme CAS candidates must attend four of the CAM modules beginning on Thursday, July 18. Required classes are The Resident Experience, Legal, Financial Management and Risk Management. Leasing 101 (Day and a half) Tuesday, July 23 8:30 a.m. to 4 p.m. Program fee: $75 before Wednesday, July 24; $85 at the door 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 day and a half program also includes TAA lease paperwork curriculum. Topics covered include: 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 this registration form www.haaonline.org/images/programs/pdf/lea sing101_2019. Extreme CAM (continued, three days) Thursday, July 25 8:30 a.m. to 5 p.m. A super charged and accelerated six-day format, Extreme CAM is designed for experienced managers who wish to attain the CAM credential in a shorter duration with less time away from the property. Scheduled for Thursday, July 18 through Saturday, July 20 and Thursday, July 25 through Saturday, July 27. Classes will be held on Thursday, Friday and Saturday of each week from 9 a.m. to 5 p.m., with registration beginning at 8:30 a.m.

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/expressregistration. 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 Road with HAA

Pasadena Education Outreach Wednesday, April 17 at Hampton Inn and Suites Pasadena Sponsored by 1 Brook Furniture Rental and 2 The Liberty Group HAA Education Outreach was back on the road, this time stopping in Pasadena. Apartment personnel had the opportunity to hear from national speaker Leah Brewer on â&#x20AC;&#x153;The Art of Hiring.â&#x20AC;?

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 Director of Outreach 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. 28

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Pasadena Courtroom Education Session Tuesday, April 16 The Pasadena Courtroom Education Session was a success with area managers and apartment residents. HAA General Counsel Howard Bookstaff led the discussion with Judge Joe Stephens talking about evictions, court filings, notices to vacate and much more. Managers and residents were also given the opportunity to ask questions.

Onsite Goes Offsite â&#x20AC;&#x201C; Katy Thursday, April 25 at Uncle Julio's Mexican From Scratch Sponsored by 1 The Urban Foresters Onsite Goes Offsite kicked off their first event of 2019 in Katy. Local industry professionals had the opportunity to mingle and get to know each other.

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On the Road with HAA

Pearland Legal Seminar Wednesday, April 24 at Hilton Garden Inn Houston-Pearland Sponsored by 1 Brook Furniture Rental New for 2019, HAA held its first legal seminar in Pearland. Local managers had the chance to hear from HAA General Counsel Howard Bookstaff on topics including evictions, policies and procedures, legislative updates and more.

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On the Scene with HAA It’s the Law Luncheon Friday, May 3 at the HAF Dinerstein Reed Prokop Education Center Sponsored by 1 FSI Construction Inc. HAA General Counsel Howard Bookstaff presented an “it’s the law” luncheon covering short-term rentals and corporate housing.

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On the Scene with the HAAPAC 1

HAAPAC Luncheon Thursday, April 25 at the HAF Dinerstein Reed Prokop Education Center Sponsored by 1 ApartmentData.com The April HAA Political Action Committee luncheon featured a candidate screening for Houston City Council At-Large Position 5.

WEâ&#x20AC;&#x2122;RE ALL ABOUT BETTER GOVERNMENT Threats from government are coming at the apartment industry at a rapid pace. The HAAPAC, the political action committee of the Houston Apartment Association, needs your help to fight bad legislation. HAA members can participate in the PAC on several levels. 2019 registration forms are available. To join, renew or learn how to become involved with the PAC, see online at www.haaonline.org/haapac or contact apatel@haaonline.org. 34

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On the Scene Photos by MARK HIEBERT, Hiebert Photography HAAPAC TopGolf Fundraiser Thursday, April 18 at TopGolf Katy HAA members hit the bays to raise money for HAA’s Political Action Committee.

Thank You to our Event Sponsors and Congratulations to the Winners: TopGolf “Top” Sponsors Contractors Inc. Gemstar Construction Development TopGolf Hole-in-One Sponsor AAA Plumbers TopGolf Welcome Sponsor ApartmentData.com TopGolf Lunch Sponsors Brandt Electrical A/C & Heating Services Fidus Construction Services TopGolf Beverage Sponsors Core Landscape Group HD Supply

TopGolf Team Awards Sponsors CoreLogic Rental Property Solutions Gemstar Construction Development Rasa Floors Team Winners: 1st Place – JMI Contractors and Hoover Slovacek 2nd Place – Impact Floors 3rd Place – Gambit Construction

TopGolf Best Male and Female Award Craven Carpet Mohawk Industries Winners: Best Female – Amy Anderson, Impact Floors Best Male – Kenyon Carroll, Impact Floors Last Place – Trey Roper, Matrix Construction

Best Dressed Male/Female Award & Last Place Award Sponsor Crestmark Construction Winners: Best Dressed Female – Starla Turnbo, SMI Realty Best Dressed Male – Shannon Coppin, Camp Construction

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On the Scene Photos by MARK HIEBERT, Hiebert Photography HAAPAC TopGolf Fundraiser

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Riding

or the last three years, the Houston apartment market has been directed by the most unwelcomed and menacing of sources. The first was a local economic downturn brought on from the collapse in oil prices in 2014, which imposed a burden that was most heavily felt in 2016. The graph on Page 42 captures overall occupancy levels and effective monthly rent prices. Itâ&#x20AC;&#x2122;s obvious to see that occupancy fell 2.1 percentage points during 2016 from 90.5 percent in January to 88.4 percent by December. This swift fall in occupancy was a result of over 21,000 new units met by only 4,600 units of absorption. Rent prices during 2016, due to the lower direction of occupancy, drifted somewhat higher, but ended the year lower than it started at $967. Another indicator of poor direction in 2016 was the 2,400 net loss in jobs for the metro area.

t Iut

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The Houston apartment market shifted directions due to unprecedented events. Where are the currents taking us now? By

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BRUCE MCCLENNY, ApartmentData.com

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Houston began 2017 with great economic prospects from hosting Super Bowl LI. By the end of August, organic rent growth returned, moving overall rent up by $17, totaling $984 per month. Unfortunately, Hurricane Harvey, the second unwelcomed menace, arrived late in August and gave the market positive direction with spikes in rent and occupancy. This type of direction is not of normal market forces and it totally disrupted the fourth quarter cycle, which is traditionally flat. The $30 increase in rent between August and November is more representative of growth over a full year, and the jump in occupancy of 1.7 percentage points was totally driven by Harveyrelated leasing. This extraordinary scenario set up 2018 to be subject to Newton’s Third Law of Motion, which states that every action has an equal and opposite reaction. This would have meant that much of the leasing during the fourth quarter of 2017 would dissipate during 2018 and exert downward pressure on rent. During 2018, the Houston metro area generated 73,300 jobs, which was well over the 25year average of 50,000 jobs. With such solid job growth, the market was able to fight the forces of fate and the demand-reversing direction that Harvey put into motion back in 2017. Overall average rent began the year at $1,010, advanced as high as $1,032 and then fell to

$1,022 by year’s end, which yielded rent growth of 1.2 percent for 2018. A 1.2 percent rate of growth is rarely considered good, but since 2018’s prospects were destined to be flat, this rate of growth was pretty good. The occupancy needle for 2018 moved 20 basis points from 89.4 percent to 89.6 percent, guided by 8,400 units of absorption and a limited amount of new supply of 5,100 units. This year started with the promise of returning to natural, long-term market and economic conditions and, more importantly, being rid of the lingering negative impacts of Harvey. For the first three months, rent moved forward by $5 to $1,027, which is still shy of the market high achieved mid-2017. The first quarter of 2019 garnered almost 4,000 units of absorption, which moved occupancy to 89.8 percent. The new supply of 4,700 units was higher than expected due to 3,000 units being pushed from 2018 into 2019 from Harvey influenced material delays and manpower shortages. Direction of the Classes The overall average statistics of rent and occupancy are an aggregation of the performances of each class of property. Classes are determined by a bell curve distribution of market rates. The table on Page 43 shows how overall market performance is mixed and how each class differ in rates and trends. New con-

struction supply for 2017, 2018 and 2019, or properties in lease-up, were separated out to provide a stabilized look at Classes A and B. 2019 and 2018 Construction – Lease-Ups The 2019 lease-up properties are a group of 18, adding up to almost 4,700 units. This number of first quarter deliveries is surprisingly high and almost matches 2018’s total units delivered. Most of these properties are suburban, with 10 properties outside Beltway 8 and four of those being senior-only communities. The overall average effective price per month of $1,513 is somewhat lofty, spurred on by the influence of one high-rise’s average rent of $3,200 or $2.57 per square foot. The lowest average price of $884 or $1.00 per square foot belongs to one of the senior-only properties, which is also a tax credit community. The median effective price is $1,350 per month. Concessions are present on 16 of the 18 properties. One-month free rent is the most prevalent concession, but three properties are offering two months of free rent. One of the properties offering two months for free is located in downtown, another is in midtown and the third is located in Memorial City. This group of properties are in the very early stages of leasing, which explains the occupancy of 3.5 percent. There is a total of 5,075 units, or 25 properties, making up the supply delivered in 2018.

Houston Effective Overall Occupancy and Rent 90.5

90.5

$1,040 $1,032 $1,027 $1,030

90.0

$1,023

89.9

89.8

89.7

$1,010

89.5

$1,020

89.2

$1,000 88.9

89.0

$990 $982 88.4

88.5 $968

$984

$967

$980

88.2

$970

88.0

Mar 2019

Jan 2019

Feb 2019

Dec 2018

Oct 2018

Nov 2018

Sep 2018

Aug 2018

Jul 2018

Jun 2018

May 2018

Apr 2018

Feb 2018

Mar 2018

Jan 2018

Dec 2017

Oct 2017

Nov 2017

$960

Sep 2017

Jul 2017

Aug 2017

Jun 2017

Apr 2017

May 2017

Mar 2017

Jan 2017

Feb 2017

Dec 2016

Oct 2016

Nov 2016

Sep 2016

Aug 2016

Jul 2016

Jun 2016

May 2016

Apr 2016

Feb 2016

Mar 2016

Jan 2016

87.7

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In many respects, the 2018 group of properties are very similar to the 2019 group of properties. The primary similarity is that both groups of properties did not participate in the Harvey leasing frenzy. Another similar feature is that there is only one penny difference in their rates per square foot. In addition, there are 14 properties outside Beltway 8, with two being tax credit and another two being senior-only properties. There is one high-rise property at the top of this group’s rent range with monthly effective rent of $2,400 or $2.57 per square foot. One of the tax credit properties claims the low end of the rent range with monthly rent of $782 or $0.80 per square foot. The median effective price is $1,314 per month and the average effective rent is $1,499. The concessions are where the similarities diverge as 11 of these 25 properties do not offer concessions, however, there are a few of the 2018 vintage of properties offering concessions that are reminiscent of 2016. Two properties are two offering two-and-a-half months free rent, another two properties are offering two months free rent and another three properties promote one-and-a-half months free rent. Overall occupancy for the 2018 construction group is 61.0 percent, but there is a wide range of occupancy. The low end is 27 percent having only three months to lease and the top of the range is fully occupied with 15 months

of building that occupancy. Nine of the 25 properties have occupancy greater than 90 percent and 13 properties have occupancy less than 80 percent. Rent trends for these two groups cannot be accurately calculated due to the continuing number of units being introduced, which prevents a “same-store” analysis. 2017 Construction There were a total of 13,933 units, or 59 properties, delivered in 2017. The first item for discussion about this group is the occupancy level of 83.2 percent. Properties in this group have been operating for 15 to 27 months. The threshold of stabilized occupancy is generally regarded as 90 percent, with the optimal time to reach stabilized occupancy as 12 months. Considering these rules of thumb, the lease-up performance of this group appears to be awful. Looking deeper and stratifying the operating types of properties within this group reveals some exceptions to the rules and paints a better picture for the group’s occupancy level. There are six high-rise properties with average effective rent of $2,575 per month or $2.45 per square foot. Qualifying annual income to rent in these properties starts at $80,000, which narrows the prospective pool of renters significantly. It would be considered reasonable operating practices for lease-ups with this type

of product to take 18 months in the best of times. The occupancy level for these six highrises is 74 percent. There is another operating group of properties within the 2017 vintage that are even more occupancy challenged than the high-rise product and that is the conventional, high-end, senior-only properties. There are four such properties that were delivered in 2017 with average effective rent of $2,551 per month or $2.62 per square foot. Not only is there a similar qualifying income for this group as the high-rise, but there is an age limit, too, which shrinks the renter pool even more. Reasonable lease-up timing for this product is somewhere around 24 months. The occupancy level for this group is 50 percent. Another property type within the 2017 group is also an exception to the rules but in the opposite direction of high-rises and conventional senior-only types. Affordable, subsidized, tax credit properties, whether agerestricted or not, defy the rules of lease-ups. In many instances, these properties open with waiting lists. There are seven affordable types with average rent of $870 per month or $0.90 per square foot. These seven properties are fully occupied. Seeing this stratification of 2017 product types through leaves two more types, urban and suburban, which include both garden-

Classification Analysis Effective Rent $/month 12-Month Trend

3-Month Trend

$1,513

–

165

$1.64

$1,499

–

3,093

757

83.2%

$1.67

$1,562

0.4%

1.8%

3,792

420

128,812

91.7%

$1.57

$1,487

-1.7%

3.8%

2,683

597

253,537

91.0%

$1.14

$1,001

-0.1%

0.8%

493

747

Class C

200,892

90.8%

$0.93

$796

0.3%

-1.0%

-1,210

1,075

Class D

44,165

89.0%

$0.75

$647

0.0%

-4.2%

166

164

Overall

651,096

89.8%

$1.16

$1,027

-0.5%

1.7%

9,182

3,984

As of March 31, 2019

Supply

2019 Construction

4,682

3.5%

$1.63

2018 Construction

5,075

61.0%

2017 Construction

13,933

Class A (w/o 17+ const.) Class B (w/o 17+ const.)

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Occupancy $/sq ft

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style and mid-rise properties. Urban product covers the geographical areas of Inner Loop 610, Galleria and Energy Corridor. There are 15 properties in this category with average effective rent of $1,651 per month or $1.84 per square foot. The occupancy for urban product without high-rises is 84 percent. There are nine properties that have eclipsed the 90 percent level, four are in the 80 percent range and two are below 80 percent occupied. The suburban product covers all areas outside the urban boundary described above. There are 27 properties in this product category that have average rent of $1,278 per month or $1.40 per square foot. The occupancy for the suburban product, omitting senior-only and affordable properties, is 85 percent. There are 17 properties over the 90 percent mark, five properties with occupancy rates between 80 and 90 percent and another five properties below 80 percent occupied. The 2017 properties have the distinction of being born in the year of Harvey. This group of properties had the most availability to welcome those flooded out of their homes. Some of these properties had the good fortune of timing to have been opening their doors in mid-2017 and leased-up by year end. However, there are two sides to storm-related leasing, first there is the spike of occupancy and rent immediately following the storm and then there is the exodus of evacuees and the winddown or flatness of fundamentals over the next 12 months. The 2017 group of properties was true to its storm-born heritage by exhibiting a very flat 12-month rent trend performance of 0.4 percent. Class A Stabilized (Without New Construction) Class A represents the highest priced properties based on their overall average market rate. As mentioned above, a bell curve distribution method determines which properties

make the A grade. Class A units without the new construction built since 2017 represents 20 percent of the overall supply of units. Taking new construction units out of Class A provides a stabilized occupancy picture. Class A’s overall occupancy is 87.2 percent. Filtering out units built in 2017, 2018 and 2019 creates a stabilized group of Class A product, which has occupancy of 91.7 percent as of the end of the March. Tracking occupancy back to the beginning of 2018 reveals a roller coaster ride where occupancy started at 89.8 percent, peaked at 91.9 percent in August and then fell to 91.2 percent by the end of the year. This slide in occupancy seems more than cyclical, especially with a $40 drop in overall average rent accompanying it. Rent peaked in July 2018 at $1,508 per month and ended the year at $1,468 per month. This slide in rent defined the negative 1.7 percent trend over the last 12 months. Apologies for bringing up Harvey again, but it is the most likely suspect to blame for this overweight drop in fundamentals juxtaposed to 2018’s job growth of 73,300, which was so strong. Don’t forget that the market impact of storms works outside and independently from the economic forces at play. Other suspects should be considered having a hand in or maybe being an accomplice to such a poor second half performance, but they do not seem as directly related as Harvey does. The Federal Reserve raised rates four times in 2018, bringing about a correction in the Dow Jones industrial average, which finished the year down by 12.5 percent. Crude prices were as high as $70 per barrel in October 2018 but fell to $45 in mid-December. Industry wisdom contends that prices need to be higher than $50 per barrel to sustain drilling. Another negative economic force to consider is that China is Houston’s number two trading partner. The trade tariffs against China in early 2018 started a tit for tat series of retaliation throughout the

year. The impact is still unclear, but it does not seem economically positive for Houston. The good news is that 2019 is off to a good start. Occupancy advanced to 91.7 percent by the end of the first quarter, which is just two basis points below 2018’s occupancy high point of 91.9 percent. In addition, rent has gained $19, almost half of the $40 loss suffered during the second half of 2018. This rent gain during the first three months represents a 3.8 percent annualized improvement. Class B Without New Construction Class B represents the second tier of highest priced properties. The bell curve distribution of market rate creates a Class B that represents 39 percent of the entire market’s supply. The affordable product built since 2017 was filtered out of this category. New construction affordable product is a hybrid that has Class C rents and Class A amenities. There are 13 properties with 1,835 units that were filtered out. These affordable properties have an overall average rent of $877 per month and an overall average occupancy of 74.9 percent as of the end of March. Class B’s performance during 2018 was very similar to the performance of Class A, with occupancy peaking in May at 91.5 percent and then falling to 90.7 percent by the end of the year. Overall average rent peaked in July at $1,010 and then slid back by $11, which made rent finish 2018 at $999 per month. By the end of March, occupancy moved ahead to 91 percent and average rent added $2, moving the overall average to $1,001 per month. This rent movement generated a very flat 12-month trend of -0.1 percent. The $2 rent bump over the first three months of 2019 created a slightly positive 0.8 percent annualized growth. Classes C and D Class C represents 31 percent of the overall

Houston’s best economic scenario for 2019 is dependent on the national economy growing Gross Domestic Product somewhere in the neighborhood of 2.5 percent. China trade negotiations are the wild card to this scenario. Higher tariffs could impair a best direction scenario.

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market supply. Occupancy-wise, Class C peaked at 91.1 percent during May of 2018. Class C’s occupancy direction followed the precedent set by Classes A and B by falling throughout the remainder of 2018 to 90.2 percent. Rent peaked at $804 per month in July and as occupancy fell, so did the rent level to settle at $798 by year end. Over the first three months of 2019, occupancy moved six basis points higher to 90.8 percent. Unfortunately, rent continued to fall during the first quarter by another $2 to land at $796 per month. Looking back over the last 12 months reveals a flat but positive rent trend of 0.3 percent. With a -1.0 percent annualized rent trend over the last three months, Class C was off to a bad start for 2019. Class D represents the bottom of the rent spectrum and accounts for 7 percent of the overall supply. Occupancy over the last 12 months primarily moved in a tight range between 88 and 89 percent. Occupancy was able to get as high as 89.2 percent in April of 2018. As of the end of March 2019, occupancy stood at 89.0 percent. Over the last 12 months, rent started where it finished at $647 per month, yielding an absolute flat performance of 0.0 percent. Rent fell the most over the last three months, generating an annualized rent trend of -4.2 percent. 2019 – A Best Direction Scenario Job growth for the nine county, Houston metro area in 2019 is forecasted to be 71,000 by Patrick Jankowski, senior vice president of research for the Greater Houston Partnership. This job growth is not as rich as the fracking boom years of 2012, 2013 and 2014 when job growth for those three years averaged 108,000 per year, nor is it as poor as the fracking bust years of 2015 and 2016 when the region lost about 2,500 jobs each year. In this not too hot, not too cold scenario for jobs, Jankowski states health care will return in 2019 as the region’s leading job generator along with the construction and administrative services sectors turning in strong performances. Energy prices continue to be important to Houston’s economic well-being. In its December Short Term Energy Outlook, The U.S. Energy Information Administration (EIA) forecasted West Texas Intermediate (WTI) to average $54 per barrel during 2019. While this price is not as high as the $70 per barrel price from last October, nor as low as the $45 price in midDecember, it is within the range of pricing the industry needs to be profitable. In addition, this level of pricing helps keep inflation to be less of a threat to the national economy. / See Market Report, Page 51

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Hanover BLVD Place

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Compiled by BRUCE MCCLENNY, ApartmentData.com CopyrightÂŠ 2019 ApartmentData.com, 800-595-8730

Gables Westcreek

Photos by MORGAN TAYLOR, HAA Staff

Houston is growing up. High-rises are in the news and leading the way for multifamily industry new construction. With data from ApartmentData.com, ABODE showcases some of the many high-rise communities that are coming onto the market. Gables Westcreek

Below is a condensed list of proposed, under construction and lease-up high-rise communities, mostly found inside the Inner Loop. See the list on Page 48 for a synopsis of market data for each area submarket, including units under construction, units proposed and units recently opened.

Houston-Area High-Rise Construction Name Zip Code 2711 Main (High Rise) 77002 3540 West Dallas Site (High Rise) 77019 Ashby (High Rise) 77005 Broadstone Museum District (High Rise) 77006 Webster At Crawford (High Rise) 77002 Innovation Tower (High Rise) 77030 Two Hermann Place (High Rise) 77004 1810 Main (High Rise) 77002 800 Crawford (High Rise) 77010 Camden Downtown II (High Rise) 77002 Midway CityCentre (High Rise) 77024 3300 Main (High Rise) 77002 Drewery Place (High Rise) 77002 Driscoll, The (High Rise) 77019 La Columbe d'Or (High Rise) 77006 Gables Westcreek (High Rise) 77027 Hanover River Oaks (High Rise) 77098 Memorial Park West (High Rise) 77007 Camden Downtown I (High Rise) 77002 Preston, The (High Rise) 77002 Aspire Post Oak (High Rise) 77056 Hanover BLVD Place 77056 Latitude Med Center 77030 South Main Building 77030 www.haaonline.org

Submarket Montrose/ Museum/ Midtown Montrose/ Museum/ Midtown Montrose/ Museum/ Midtown Montrose/ Museum/ Midtown Montrose/ Museum/ Midtown Med Center/ Braes Bayou Med Center/ Braes Bayou Downtown Downtown Downtown Energy Corridor/ CityCentre/ Briar Forest Montrose/ Museum/ Midtown Montrose/ Museum/ Midtown Montrose/ Museum/ Midtown Montrose/ Museum/ Midtown Highland Village/ Upper Kirby/ West U Highland Village/ Upper Kirby/ West U Heights/ Washington Ave Downtown Downtown Galleria/ Uptown Galleria/ Uptown Med Center/ Braes Bayou Med Center/ Braes Bayou

Management Caydon Group Hanover Buckhead Partners Alliance Residential Winther Investments Medistar Tema Development Fairfield Residential-CA Highstreet Res Camden Property Trust Midway Companies P M Realty Group Private-Caydon Group Hanover Private-Hines Gables Residential Hanover Greystar Camden Property Trust Private-Hines Dinerstein Companies Hanover Greystar ZRS Management

Units 1,000 325 228 325 300 410 230 290 314 289 270 336 357 318 285 295 370 315 271 373 351 278 372 185

Move Ins

06/2020 08/2019 01/2021 01/2020 07/2020 12/2019 06/2021 11/2019 01/2021 12/2020 02/2019 07/2018 06/2019

Category Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Proposed Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Under Construction Recently Opened Recently Opened Recently Opened

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Camden Downtown

3300 Main

Drewery Place

New Construction by Submarket Submarket Area Units Under Const Montrose/ Museum/ Midtown 2,000 Highland Village/ Upper Kirby/ West U 1,682 Med Center/ Braes Bayou 338 Heights/ Washington Avenue 3,392 Downtown 873 I-10 East/ Woodforest/ Channelview 0 I-69 North 0 Northline 0 Greenspoint/ Northborough/ Aldine 0 FM 1960 East/ IAH Airport 0 Lake Houston/ Kingwood 732 Northeast Houston/ Crosby 0 Brookhollow/ Northwest Crossing 342 Memorial/ Spring Branch 357 Inwood/ Hwy 249 0 Willowbrook/ Champions/ Ella 521 Jersey Village/ Cypress 0 Bear Creek/ Copperfield/ Fairfield 727 Katy/ Cinco Ranch/ Waterside 4,313 Tomball/ Spring 612 Woodlands/ Conroe South 386 Conroe North/ Montgomery 414 Hwy 288 South/ Pearland West 0 U of H/ I-45 South 160 Beltway 8 / I-45 South 0 Pasadena/ Deer Park/ La Porte 0 Friendswood/ Pearland East 0 Clear Lake/ Webster/ League City 351 Baytown 544 Dickinson/ Galveston 0 Alvin/ Angleton/ Lake Jackson 0 Galleria/ Uptown 351 Woodlake/ Westheimer 0 Energy Corridor/ CityCentre/ Briar Forest 0 Westchase 0 Alief 0 Sharpstown/ Westwood 0 Westpark/ Bissonnet 0 Braeswood/ Fondren Southwest 0 Almeda/ South Main 0 Sugar Land/ Stafford/ Sienna 622 Richmond/ Rosenberg 589 Greater Houston Total

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Units Proposed 3,974 675 966 1,891 1,522 1,400 500 0 0 0 1,488 0 869 150 0 485 229 678 2,778 2,275 1,884 405 902 271 300 350 126 580 120 235 0 80 0 957 0 0 0 0 0 336 2,693 309

Units Recently Opened 574 0 843 620 220 246 350 268 0 0 1,074 0 293 393 0 0 0 80 997 1,010 340 0 763 0 324 135 288 258 336 0 0 281 0 948 0 81 0 0 0 0 385 0

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2711 Main

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La Columbe d'Or

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Market Report, continued from Page 45 Houstonâ&#x20AC;&#x2122;s best economic scenario for 2019 is dependent on the national economy growing Gross Domestic Product (GDP) somewhere in the neighborhood of 2.5 percent. China trade negotiations are the wild card to this scenario. Higher tariffs could impair a best direction scenario. The rent versus own saga continues, with the Federal Reserve looking to raise interest rates two more times this year. Such action will lead to higher mortgage rates, which will create more renters from those looking to establish household formations. However, the China trade actions could put rate increases on hold. 2019 â&#x20AC;&#x201C; Forecast of Direction Reaching 71,000 new jobs will push absorption for 2019 in the range of 12,000 to 14,000 units. This level of absorption is based on an industry axiom that states for every five to six jobs, one unit of absorption is created. To estimate the new supply, consider the 4,700 units delivered as of the end of the first quarter. Add another 8,000 units that will be delivered this year from the 20,000 units that are under construction, and that will produce around 13,000 units of new supply in 2019. This level of demand and supply are balanced, and will produce an occupancy of 90.2 percent by year end. Overall occupancy has been at this level only twice over the last three years. Achieving and growing overall occupancy beyond the 90 percent mark will be key for future direction to market strength. This level of growth is a welcomed change, but it is gradual and slow. Rent will move forward during 2019, but at a rate somewhat slower than previously forecasted. Look for overall rent growth in the range of 2.5 to 3 percent primarily realized in Class B and C. Class A still has a few pockets or submarkets where supply issues persist. The Energy Corridor has six properties, almost 2,000 units that were shut down due to Harvey and are in various stages of leasing. Downtown has the distinction of having the highest rents by way of an abundance of high-rise product in lease-up. The Galleria area has been a laggard, which is most probably due to road construction that will continue into 2019. Bruce McClenny is president of ApartmentData.com. For more details, call 281-759-2200 or email bruce@apartmentdata.com. For more market information, see the ApartmentData.com monthly report on Page 75. www.haaonline.org

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Learn when you should file a claim when your apartment community experiences roof damage. By

fter Hurricane Harvey poured more than 51 inches of rain on the Houston area, it seemed as if almost every roof sprung a leak, and everyone thought they were able to file an insurance claim. Some did, but most roofs were victims of wind-driven rain. Unfortunately, wind-driven rain is not covered by insurance. Wind-driven rain is the term that is used when strong winds blow rain in a horizontal direction, causing a temporary leak in your roofing system. This usually happens around flashings and ventilation systems. If the cause of damage was wind-driven rain, there wouldn’t have been a permanent opening in the roof and it would most likely not have leaked in normal rain conditions. In the future, the best way to protect your roof against wind-driven rain is to perform regular maintenance on your flashings and ventilation systems every five years. Hurricane Harvey inspired this article, but I’m here to help you understand what to do when any weather event causes damage to your apartment community’s roof. Whether it be devastating floods, catastrophic hurricanes, strong winds or even hail, we have all either experienced or witnessed the direct consequences of extreme weather. What should you do when mother nature strikes? What is the next step? Should you get your insurance involved? Learn the answers to your questions when it comes to protecting, repairing and replacing your roof. Filing a Wind Damage Claim According to www.weather.com, the 2017 hurricane season produced the largest number of reported tornadoes in the United States since 2008, and the fourth-most overall in 23 years. Harvey had the largest number of tornado reports with 57. It was these tornados spawned by Harvey that caused most if not all roof damage during that time. Now, you don’t need a named storm like a

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AMANDA KELLY, Corinthian Roofing

hurricane to produce damaging winds. In fact, according to the app Hail Pro Plus, the Greater Houston area had over 30 wind events in the last year. So, how do you decide if you should file a claim after strong winds? Well, there are a few ways. If you believe you have experienced wind damage to your property, always call your roofer before you call your insurance company. When roof damage is involved and there is a potential claim, you want to make sure you give accurate and total information to your insurance company. Too often claims are tossed out because they were filed with misinformation. Let the professionals take a look and allow them to provide you with all the information you need to file your claim correctly. For wind damage, your insurance adjuster will want to see certain evidence that exemplifies wind damage according to your insurance provider, such as missing shingles, horizontally creased shingles or pulled through fasteners. These types of damages cannot be assessed from the ground. Some damage can be identified by a drone, but I believe the only way to accurately identify damage is by getting on the roof to assess it. Keep in mind, when it comes to wind damage, not all roofs need to be replaced and not all roofs can be repaired, but that can only be determined by a thorough inspection. It is your roofer’s job to perform a detailed inspection to determine if your property’s roof needs a repair or a total replacement. If your roofer claims to have identified wind damage, here are a few questions to ask him or her: 1. How many creased or missing shingles are there per slope? 2. Can this be repaired? 3. What is the age and condition of the roof by your observation? Now, there isn’t just one magic answer to these questions, if only one shingle is missing but there are four to five creased shingles

with a few busted fasteners and the roof is older, to me, that is a claim, but every roof is different and adjusters are objective. These questions are to help you identify if your roofer is advising you in the best possible direction for your case. If your apartment community’s roof is less than 12 years old and it develops an isolated leak, chances are it can be repaired. If your roof is 15 years old or older, there is a chance that its shingles are too brittle to repair. I recommend to have your adjuster perform a brittle test if your roof is over 15 years. This could be the deciding factor whether your insurance company approves a repair or replacement. If a shingle is lifted to a 45-degree angle times and it cracks, the shingle is too brittle to repair. Now, I do not recommend a roofer perform this test. In this case, it is always best to wait for the insurance adjuster to do it, as it can cause damage to a perfectly good shingle. There are signs to look for that will help you determine whether or not the roof may be too brittle to repair, such as missing granules, crease lines in roof, tethered edges and visible matting. Who Should be Present: Roofer, Insurance Adjuster or a Public Adjuster? Always request your roofer be present when an insurance adjuster visits your property. In my experience, your chances of an approval greatly improve when your roofer is there to help show an adjuster the damage. In large loss claims, I would recommend hiring a public adjuster. Unlike your roofer, they are licensed to interpret your insurance policy and coverages. By law, a roofer cannot act as a public adjuster or lawyer, nor can they negotiate your claim on your behalf. As a roofer, our abilities are helpful but limited in the insurance claims process. A public adjuster can help you get the most out of your claim and most are paid by a capped 10 percent of your claim. Please beware of any June 2019

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roofing company that says they can represent you against your insurance company – that is a false and illegal statement. Wind damage can be very severe or minor to your roof, and every roof is a case by case situation. Never assume that a leak is worth a claim until you have a professional assess all damage. Hail Storms After a hail storm, I strongly recommend giving your roofer a call. Though hail doesn’t impose immediate danger to your roof, it does cause significant damage down the road. This is why insurance companies are required to cover hail damage. Often, it takes a year or more to see the effects hail damage poses to your shingles, and by that time, it’s often too late to make a claim because all evidence will have washed away. When a hail stone hits a shingle, it causes a break or fracture in the shingle. That break causes the granules to become loose, after time, and after multiple rains, all the granules start to fall off, causing your shingle to rapidly

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deteriorate. Once a shingle becomes washed out, (where the granules are fading or missing), it is almost impossible to get an insurance company to approve a hail claim. By observation, your shingles look old and worn out, but in truth, the hail storm that hit your roof a year ago caused your roof to rapidly lose granules. This is why it is so important to have your roof inspected immediately after a hail storm. Every insurance company has different requirements to determine a full replacement, but most insurance companies want to see a few different components to prove hail damage. A few components could be collateral damage, damage to items other than the roof; damage to soft metals on the roof; and the most condemning evidence is hail markings on your shingles, the average being 10 hail markings per 100 square foot area. All of this can be determined by your roofer. Remember, hail is the ninja of roof damage. By the time you start to experience the damages caused by hail, it’s often too late. Always

file a hail claim within a few months of a hail storm even though you have at least a year to file if not two years depending on your insurance policy. Protecting Your Roof There isn’t much you can do to protect your roof from storm damage, but there are ways to make your new roof stand up better to a Texas storm. Roof replacements are a huge cost and we are in a money-saving industry, but the quality of your roofing system and the installation saves property owners a substantial amount of money in the long run. In Houston, we have so many wind storms. If you can go with the architectural shingle, it will last longer, about 15 years longer, and it will hold up better in Houston weather than a three tab. Make sure to ask your roofing contractor if he or she can give you a better wind rating. Though the Texas windstorm building code doesn’t require it, I always recommend using six nails per shingle instead of four, as well as using a starter course on all your rakes and eaves.

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For most shingle manufactures, if you pair an appropriate starter course with using six nails per shingle, you will get a 130-mph wind rating with your roofing system. That means that your roof has a fighting chance to stand up to a Category 3 hurricane, and in my professional opinion it is worth every extra dime. As far as preventing hail damage goes, again, there isn’t much you can do, other than install an impact rated shingle, or an impact resistant roofing system, which can get pretty pricey. With that said, it is definitely worth looking into, as many insurance companies will give you a big break on your insurance if you install an impact resistant roofing system. For Roofs New and Old There is one more thing I recommend doing to get the full life out of your roofing system new or old. Hire a roofing company to do necessary maintenance every five years. Though most shingles come with a warranty, many other roofing components do not. Here is a list of items that should be included in steep slope roofing maintenance package: • Checking all soft metals. • Removing any old sealant and putting new sealant on, as most sealants only work for five years. • I recommend painting those soft metals, such as furnace vents or pipe jacks, with a rust prohibitive paint. • Resealing all exposed nails. • Clearing debris from roof. • Checking the attic for signs of leaks or rotted decking. • Checking for any damage to your roof, including tree limbs, damage caused by animals or weather, and have it repaired immediately. Doing these things every five years will greatly cut down on future leaks. Amanda Kelly has nine years of experience in roofing, having started her career in 2010. Three years ago, in October of 2017, Kelly started Corinthian Roofing here in Houston. Corinthian Roofing is your go-to contractor for all of your roofing needs for your apartment community. Visit www.corinthiancs.com for details. Kelly may be reached at akelly@corinthiancs.com. Through the association, Kelly is an Ambassador ONE Society member, HAA NEXT Committee member and a member of the HAA Political Action Committee.

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Finding and Training the Right People 56

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Learn how to recruit continuously to hire the best fit for your property. By

CODY ROSKELLEY, Community Builders LLC

ne Summer night, my family had just finished dinner when there was a knock at the door. Immediately, one of my younger children raced to the door. I walked out of the kitchen just in time to see my daughter turning the door knob. “Wait,” I blurted out, but it was too late. The door swung open, and there standing on my front porch was a clean-cut, college-aged young man. My defenses immediately went up as I thought to myself, “I hate door-to-door sales people. I don’t want a new security system, new double pane windows or anything else that this guy could be selling!”

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As I approached the door, the young man smiled and said, “You must be Mr. Roskelley. My name is Jason, it is a pleasure to meet you!” He reached out his hand in an effort to formally greet me. Jason came across so friendly that I shook his hand and asked him how he knew my name. He responded again with a smile, “Oh, your neighbors said that I should talk with you because you have young children. Mr. Roskelley, how do you feel about teaching your children? Do you value education?” My typical response would have been, I’m not interested in buying your product, but Jason came across so friendly that I had to answer his questions. After each question,

Jason followed up with another question. He gathered important information and shaped the conversation based on what he was learning about me. Eventually, I invited Jason into my house. Honestly, I had no interest in his product, but I was so impressed with his outgoing nature and his ability to set people at ease that I decided to turn the tables on Jason to ask him if he would be interested in joining me in the multifamily industry. Sadly, I found out Jason was attending college in another state and he would be returning to college as soon as he completed his summer sales job. Before parting ways, I told Jason how June 2019

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impressed I was with his skillset, and I provided him with a business card. I asked him to give me a call as soon as he completed his education. I share this story because the multifamily industry is all about people. If you want high occupancy and low delinquency, you must have quality employees who can not only lease apartments but also provide a quality living experience for the residents. The questions I frequently hear from property owners are: • How do I find the right people? • How do I effectively train the right people? Finding the Right People First, I want to talk about how to find quality individuals to run your properties. You can have the most beautiful property in the world but if you have the wrong people running it, you will be fighting an uphill battle. The process of finding the right people requires the following steps: 1. Determine the type of person you are looking for and the outcomes you want them to achieve. Write down the characteristics of a person who would be successful at the job and fit the company culture. For example, if I was looking for a new leasing consultant, some traits I would look for are outgoing, friendly, hardworking, eager to learn, honest and organized. I would think of the best leasing consultant I know and determine what makes them so great. If a person is already a hard worker, I can always teach him or her how to lease an apartment, knowing the leasing process will do little good if the leasing consultant is not willing to work.

2. Start looking for the right people. The right people can be found anywhere, but you must be willing to look. Recruiting is not a one-time event but a constant process. If you are in a restaurant, hotel, grocery store, bank or anywhere else for that matter, start looking for the right people. When you do find someone who impresses you, talk to them, give them a business card and ask them if you can arrange a time to talk about your company. 3. Network like crazy. Ask your friends, family, business associates and LinkedIn connections if they know anyone who has the characteristics you are looking for. Don’t be shy. When someone gives you a contact, thank them and ask them if you can use their name when you reach out to the contact. When you call or email the contact, make sure to mention the mutual friend or associate and tell the contact that your friend, family member or business associate recommended that you reach out to him or her. Start by talking with talented people, and don’t hesitate to tell them about your company and its goals. Then, arrange follow-up conversations. 4. Keep a database of both new contacts and the individuals who have given you good contacts. Make notes of your conversations. If you are looking for a good sales management software to help track your recruiting efforts, I recommend HubSpot. The free version of HubSpot provides you with a lot of options to do so. 5. When you find a good fit, keep regular contact with them. If you hire them, train them and treat them well. Whether you hire the individual or not, you can always share your company’s mission and the type of per-

son you are looking for. Sometimes the person you would want to hire is loyal to their current employer, but there is always a chance that in the process of getting to know him or her, you’ll get a recommendation or contact for someone who is just as good or better. Additionally, circumstances change with time. Someone who might not join your organization today may be willing to do so six to 12 months down the road. Effectively Train the Right People Training is critical. Sadly, many apartment owners and managers think effective training is having a new or existing employee watch a training video and take an associated quiz. Some companies give the new employee a copy of the training manual and don’t do anything else. Even worse, some companies don’t even have a training manual. Granted, any training is better than nothing, but to effectively train someone you need to follow a detailed process, and you must assign a mentor or trainer to each new employee. Can you imagine the Houston Texans spending time evaluating potential football players and signing them to the team only to hand new recruits the playbook and tell them to be at the game on Sunday? That is crazy! There is a reason why the Texans have a playbook and regular practice sessions. The new guys need to practice with the team before they go live on Sunday. The same is true in the multifamily industry. Everyone needs to know what they are supposed to do, how they are supposed to do it and when it is supposed to be done. For five years, I was a scoutmaster for the Boy Scouts

Example of E.D.G.E Training Explain: Jennifer explains to Sarah how to answer the phone correctly. Demonstrate: Jennifer answers the phone, demonstrating the proper methods. Guide: Jennifer roleplays as a caller, while Sarah practices answering the phone properly. Enable: Sarah answers the next real phone call, while Jennifer observes and gives feedback.

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of America. While in the scouting program, I training mentor. Working together on training learned the training acronym, “EDGE,” which will help both the trainer and trainee get betstands for explain, demonstrate, guide and ter at what they do. The more you do someenable. thing, the better you will get at it. The EDGE a. Explain to the trainee what needs to method helps improve performance through be done. both the physical and mental repetition. b. Demonstrate for the trainee how the task is to be done. c. Guide the trainee in performing the task the first time (i.e. do it with them). d. Enable the trainee by having him or her show you how the task is to be done. – Ralph Waldo Emmerson

“That which we persist in doing becomes easier for us to do – not that the nature of the thing has changed, but that our power to do is increased”

Practice/Repetition Hire smart individuals who have the capability of becoming the best in the industry. Devote time to practicing, evaluating and becoming better. The key to becoming good at anything is practice and repetition. Practice does not necessarily make something perfect; it makes it permanent. Every employee should either have a training mentor or be a

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Your Property is Only as Good as … In summary, your properties are only as good as the people you have running them. If you want to hire the best people, you must be willing to determine the characteristics of the people you are looking for and the desired outcomes. Once you know what type of person you are looking for, you must be willing to

look anywhere and everywhere to find them. Network, network, network. When you do hire the right people, use the EDGE method of training to improve both the trainer and trainee’s performance. When you follow this advice, you will be much more successful in finding and training the right people. Cody Roskelley is the founder of Community Builders LLC, a real estate consulting and training company. As a consultant, Roskelley helps companies improve employee systems and training, while also helping clients improve the performance of their real estate assets through effective change management and rehab programs.

Want to see current and previous issues of ABODE online? Go to http://issuu.com/haa_abode.

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On the Scene Photos from the TAA LONE STAR EXPO Texas Apartment Association Education Conference & Lone Star Expo Wednesday, April 10 through Friday, April 12 in Houston The George R. Brown Convention Center was home for TAA’s 2019 Education Conference & Lone Star Expo. Events included the Kickoff Party at Minute Maid Park and Friday night’s Installation & Awards Dinner and Party at the Hilton Americas. The state’s outstanding rental housing professionals were celebrated at the Installation, where the new TAA leaders were introduced and outgoing leaders celebrated, including Treasurer Clay Hicks and Vice Presidents at Large Michelle Pawelek and Kyle Brown. Congratulations to the Rita Kirby Regional Manager of the Year Richard Wall, Mosaic Residential, and to TAA Go-Getter of the Year Terri Clifton, Better World Properties.

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On the Scene with the HAA NEXT NEXT Bingo & Brews Sponsored by 1 Crestmark Construction Services Tuesday, April 30 at Eureka Heights Brewery HAA young professionals hit one of the hottest breweries in Houston for an evening of craft beer, fun, games, networking and prizes. BINGO!

MEET THE NEXT GENERATION OF HAA LEADERSHIP. This niche group within HAA is dedicated to the networking and professional development needs of HAAâ&#x20AC;&#x2122;s young professionals. 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. 62

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On the Scene with the MSHQ CHALLENGE CUP 23rd Annual Maintenance Supply Headquarters Challenge Cup Thursday and Friday, May 2 and 3 at Bentwater Country Club HAA members hit the links for the annual MSHQ Houston versus Dallas golf tournament. Dallas won this yearâ&#x20AC;&#x2122;s event, which raised $25,600 for the National Apartment Associationâ&#x20AC;&#x2122;s Political Action Committee, bringing the grand total to more than $425,000 over the 23-year history of the tournament. Thanks to our sponsors: Maintenance Supply Headquarters, AAA Plumbers, Camp Construction Services, Century A/C Supply, Guardian Construction, Highmark Residential, Impact Floors, LumaCorp Inc., Realpage, Reliant Energy, ResMan and Wilmar Industries Inc.

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The Go-Getters HAA’s MEMBERSHIP RECRUITERS

CELEBRATING MEMBERSHIP Recruit for HAA 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: 2-nights at the Hotel San Luis 2nd Quarter: Portal Package from Facebook 3rd Quarter: Ring Doorbell 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 like-minded members. Get involved with Go-Getters and make lasting industry connections. Visit www.haaonline.org/gogetters to get all the information you need. 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

Mark your calendars! Recruit all year long! Go-Getter meetings are quarterly: June 19 September 25 December 4 at Cadillac Bar & Grill 1802 Shepherd Drive, 77007

Visit www.haaonline.org/gogetters for details

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 and Kaylon in the Membership Department at members@haaonline.org. 66

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Welcome Mat

Introducing HAA’s NEW MEMBERS

OWNERS

Troy Percival Troy B. Percival 6207 Fairwood Creek Lane League City, TX 77573 832-551-9135 14611 Underwood

Adora Group Ofek Le 9310 Long Point Houston, TX 77055 713-465-1377 Braes Hollow Apartment Management Consultants LLC Sasha Gomez 1954 Fort Union Blvd Salt Lake City, UT 84121 979-285-3777 The Gateway at Lake Jackson Cypressbrook Multifamily Management LP Melissa Powers 1776 Woodstead Court #218 The Woodlands, TX 77380 281-364-1777 Hunters Cove Galilee Equity Management LLC Justin Duke 91 Aventura Place Spring, TX 77389 832-858-3541 Angleton Townhomes Goldwright Investments LLC Donovan Hunter P.O. Box 736 Matagorda, TX 77457 940-453-9976 Sandpiper Apartments Hudcon Inc Cassandra Williams 448 W. 19th St. #418 Houston, TX 77008 832-693-9550 Latitude Capital Management David Trotter 1132 Danbury Road Houston, TX 77055 713-851-4105 1500 S. 3rd St. Mt Vernon Management Lewis Strauss 3629 N. Macgregor Way Houston, TX 77004-8051 713-523-0225 Hadley Apartments Referred by Terri Clifton

Vidalta Property Management Ricardo Alicea 2600 S. Douglas Ave. PH 10 Coral Gables, FL 33134 786-509-9110 Champions Centre Apartments Champions Park Apartments Grand Palms

SUPPLIERS

ABC Home & Commercial Services Doug Nelms 11394 Barker Cypress Road Cypress, TX 77433 713-730-9500 Animal Removal Services, Beekeepers, Pest Control Services, Exterminators, Swimming Pool Repair & Resurfacing, Swimming Pool Service & Maintenance

Al Hicks & Associates / Allstate Al Hicks 1560 W. Bay Area Blvd. #303 Friendswood, TX 77546 281-286-7070 Financial Services, Renters Insurance Andrews Myers PC Breton A. Rycroft 1885 Saint James Place, 15th Floor Houston, TX 77096 713-351-0347 Attorneys, Legal Services August & Suttles Contractors Michelle Suttles 131 Wick Willow Drive Montgomery, TX 77356 832-317-1554 Building Contractors, Building Maintenance, Drywall Contractors - Equip & Supply, Fences, General Contractors, Make Ready, Plumbing Contractors, Remodeling & Repair-Building Contractors Axe Interiors Jordan Hopfe 13121 Louetta Road #1460 Cypress, TX 77429 832-463-3695 Carpet Dealers, Carpet Installation, Tile Installation, Vinyl Flooring Referred by Cesar Lima

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

D2 Demand Solutions Dom Beveridge 1412 Crocker St. Houston, TX 77019 415-713-0489 Espinoza Repairs & Construction LLC Espinoza Repairs & Construction LLC 17819 S. Cypress Villas Drive Spring, TX 77379 832-382-1563 General Contractors, Remodeling & Repair-Building Contractors Referred by Cesar Lima Forward Financial Group Ashley Shahan 5506 Heart Pine Way Katy, TX 77494 325-513-6768 GoRoverGo Laura Ericson 12777 Jones Road #450 Houston, TX 77070 281-897-5100 Computers-Software Property Mgmt, Corporate Housing In Service Security LLC Sammy Smith 8633 W. Airport Blvd. #1014 Houston, TX 77071 832-675-1675 Security Guard/Patrol Service Master Electrical Services James Mitchell 1901 11th Ave. La Marque, TX 77568 409-925-4174 Electric Contractors, Meter Conversions, Wiring Installation Referred by Shelly Allison Morris Contracting Jason Southerland 355 Waterstone Court Montgomery, TX 77316 832-249-6100 General Contractors, Painting Contractors One Hour Air Conditioning & Heating Bernie Quintero 4455 W. Sam Houston Parkway N. Houston, TX 77041-8207 281-615-0437 A/C Contractors, Heating Contractors

Pintail D&C Lindsay Radenz 5829 W. Sam Houston Parkway N. #809 Houston, TX 77041 832-664-2256 Disaster Recovery/Relief, General Contractors, Paint, Mold Remediation, Roofing Contractors Referred by Kelly Scott Ranger Tow Brock Dion 2912 S. Shaver St. Pasadena, TX 77502 713-357-8225 Auto - Storage, Towing Service Signal 88 Security of The Woodlands & East Houston David Sanchez 8111 Ashlane Way The Woodlands, TX 77382 281-719-5111 Security Guard/Patrol Service, Security Consulting Service Solar Screens Plus Maynard Ripper 1026 Bluebonnet St. Katy, TX 77493 281-391-5880 Screens - Door & Window, Window Treatments - Specialty Shaped Referred by Tina Cavaco Strata Roofing and Construction LLC Svetlana Meyer 4715 Pinemont Drive #C Houston, TX 77092 281-477-0244 Roofing Consultants, Roofing Contractors Referred by Kyle Turney The Flying Locksmiths David Cohen 25807 Westheimer Parkway #306 Katy, TX 77494 713-234-6997 Locks & Locksmiths, Doors & Door Products, Security Control Equipment/Systems Referred by Peggy Charles, CASE Zuhne Rick Pal 8383 Commerce Park Drive #600 Houston, TX 77036 855-559-8463 Bath - Equipment & Supplies, Counter Tops Referred by Miloni Shah 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!”

June 2019

ABODE

I wasn’t expecting it at all. I was surprised that they nominated me!” h said, laughing. “ I’ve been with this business for 15 years. I never expect anything. For me, if I get my job don or get it right, I’m satisfied with that. don’t need recognition. As long as m resident and my management and th 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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The Ambassador ONE Society HAA’s WELCOMING COMMITTEE

HERE TO HELP

The Ambassadors continue to collect backpacks for needy students.

Join us for our monthly meetings at Craft Republic 11470 Westheimer Road, Houston 77077 Mark your calendars and join us! Meetings are held on the first Wednesday of each month: June 5, July 3, August 7, September 4, October 2, November 6

1. “ONE of the Month” Janell Richter, JMI Contractors, with 132 points. 1

Ambassador ONE Society members with at least 10 points, ranked by points earned: Janell Richter Liz Levins Raedean Mitchem Vanessa Guerrero Jennifer Devine Tito Estrada Kyle Turney Marcy Holmes Will McGinnis Tracey Leach-Moore Amanda Kelly Doug Oehl Megan Stone Arely Pena Blaise Spitaleri Juana Estrada Kelsey Eggleston Blake Subinsky Alan Young Angel Lopez Shaun Callaway Chelsea Urbanczyk Amy Anderson Karen Nelsen Dave Byrnes Giovanna Gone Chelsea Quinteros Dana Mowe Deborah DeRouen Susan Alvarado James Bearb Alexa Ramey Logan Richter Will Carroll Andrew Vasquez Phillip Price Eddie Santiago Andrew Creamer Ashley Wiggin Candis Mohr Clint Beck Crystal Varela Danny Passmore Jarred Henrietta Jason Norbeck Jennifer Gutierrez Jim Martensen Linda Ledesma Moe Huddleston Peggy Charles Sean Cunningham Shannon Russell Day Stephen Webster Steven McGuff

JMI Contractors 513 Rasa Floors 160 ApartmentData.com 139 Home Turf Texas 106 Valet Living 62 Multifamily Ancillary Group 43 Impact Floors 39 Designs by Holmes Interior Design 38 Infinity Power Partners 38 Flooring Warehouse 36 Corinthian Construction 29 Flooring Warehouse 25 The Liberty Group 25 The Liberty Group 24 Rasa Floors 21 Century A/C Supply 20 Valet Living 20 HD Supply 19 Dixie Carpet 18 Metropolitan Staffing Solutions 18 Earthworks Inc. 18 CORT Furniture 17 Impact Floors 16 ALN Apartment Data, Inc 16 Advanced Concrete Designs 15 Earthworks Inc. 15 Gail Construction 13 Houston Furniture Rental & Sales 13 Designs By Holmes 13 Century A/C Supply 13 R & L Building Group Inc. 12 Willbanks 12 JMI Contractors 12 Paul Davis Restoration of North Houston 12 WellKept 11 HD Supply 11 Rasa Floors 10 Building Engineering-Consultants Inc. 10 Reliant 10 AAA Plumbers 10 Presto Maintenance Supply 10 RentPath 10 Sherwin-Williams 10 Impact Floors 10 Impact Floors 10 Frost Insurance Agency 10 Camp Construction Services 10 Hire Priority 10 Ferguson Facility Supply 10 Fidus Construction 10 Flooring Warehouse 10 Ferguson Facility Supply 10 RentPath 10 Impact Floors 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 Team “Stay Classy” with 222 points, 882 points total 3. Second Place Team “The Bomb Squad” with 71 points, 737 points total 4. Third Place Team “Green Machine” with 20 points, 439 points total www.haaonline.org

June 2019

ABODE

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Portfolio Changes The following owner/management companies have added the listed properties to their portfolios: • Alliance Residential Company: Lenox Trails, 389 units at 1002 Katy Gap Road in Katy; Parkside Belle Terra, 342 units at 12240 Bella Terra Center Way in Richmond; Archstone Toscano, 474 units at 2900 N. Braeswood Blvd.; and Broadstone Summer Street, 375 units at 3030 Summer St. • Allied Orion Group: Oasis on Ella, 135 units at 13655 Ella Blvd. and Smart Living at Telephone, 240 units at 3852 Telephone Road. • American Landmark: Hayden at Enclave, 476 units at 12951 Briar Forest Drive and Artisan at Lake Wyndemere, 320 units at 2109 Sawdust Road in The Woodlands. • Apartment Management Consultants LLC: The Gateway at Lake Jackson, 160 units at 111 Loganberry St. in Lake Jackson. • Becavest LLC: 2225TRW, 1 unit at 2225 Trey Rogillios Way in Conroe. • Bravo Capital Management: Jacquelyn Place Apartments, 36 units at 7630 Amelia Road and The Amelia Apartments, 32 units at 2002 Johanna Drive. • Brownstone Residential LLC: Willow Creek Apartment Homes, 128 units at 3833 Mustang Road in Alvin. • CAF Management LLC: Clear Lake Apartment Homes, 244 units at 300 Cyberonics Blvd. • Capstone Real Estate Services Inc.: Fall Creek Square, 115 units at 15116 Mesa Drive in Humble. • Centra Partners LLC: Westwood Park Apartments, 124 units at 1908 Rossharon Road in Alvin. • Clute Apartments GP2 LLC: Castlewood Apartments, 73 units at 401 Lakeview Lane in Clute. • Cortland Partners: Tradewinds at Willowbrook, 374 units at 12331 N. Gessner Road. • Credo Property Group: 3502 Corinne, 1 unit at 3503 Corinne Court in Katy.

ABODE

June 2019

• Dakota Enterprises: Magnolia Park Apartments, 160 units at 7250 Ave. C. • Davis Development: Satori Long Meadow, 300 units at 5803 Meadow Ranch Parkway in Richmond. • Goldwright Investments LLC: Tronewood Apartments, 24 units at 9222 Lockwood Drive and 14500, 14504, 14506, 12 units at 14500, 14504, 14506 Corpus Christi St. • Greystar: 1414 Texas Downtown, 285 units at 1414 Texas Ave.; The Grayson, 330 units at 4115 Louetta Road in Spring; Asher Oaks, 330 units at 2100 Gosling Road in Spring; and Arlo Westchase, 265 units at 3505 W. Sam Houston Parkway. • Harbor Group Management Company: Arrabella Townhomes, 232 units at 10902 Katy Freewat. • Headway Property Management: Carrington Court, 111 units at 7900 Westheimer Road. • Keener Management LLC: The Park at Clear Lake, 342 units at 1239 Bay Area Blvd. • Knightvest Management: Warwick at Westchase, 367 units at 10936 Meadowglen Lane; Rosemary, 284 units at 541 FM 1488 Road in Conroe; and Alyss, 252 units at 15000 Mansions View Drive in Conroe. • The Lynd Company: Sandpiper Apartments, 286 units at 10402 Sandpiper Drive. • MORGAN: Ivy Point Kingwood, 150 units at 2302 Ladbrook Drive in Kingwood. • Portico Property Management: King’s Cove, 192 units at 4920 Magnolia Cove Drive in Kingwood. • Q10 Property Advisors: The Pointe at Valley Ranch, 336 units at 20290 Park Lake View Drive in New Caney. • Relik Realty LLC: Magnolia Manor Apartments, 36 units at 180 W. Texaco Ave. #23 in West Columbia. • Troy Percival: 14611 Underwood, 2 units at 14611 Underwood Creek Way. • ZRS Management LLC: Drewery Place, 357 units at 2850 Fannin St.

www.haaonline.org

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In the News

Kristin McLaughlin, CASE, Mohawk Industries, has been selected as the 2019 NAA Excellence Awards recipient for the Certified McLaughlin Apartment Supplier (CAS) of the Year. Congratulations to Kristin!

Lindley

In April, David Lindley, CAS, of FSI Construction, was promoted to vice president. Congratulations to David! Deborah DeRouen, CAS, joins Design by Holmes.

DeRouen

DayRise Residential welcomes Dylan Coleman, CAS, to their team as assistant regional director of construction. Coleman

In keeping up with Houston’s Midtown, a mecca for street art, MORGAN announces a new street art installation painted by Houston Grafitti Artist Sebastien “Mr. D” Boileau is available for viewing at its new Pearl Marketplace in Midtown at 3120 Smith St.

Want to see current and previous issues of ABODE online? Go to http://issuu.com/haa_abode. www.haaonline.org

www.haaonline.org June 2019

ABODE

On Site with ABODE

Photos provided by MORGAN, HAA STAFF

FOUNTAINS AT CHAMPIONS Big changes are to come at this north Houston apartment community.

Property: Fountains at Champions Owner/Management: Clear Lake Investors/CKR Property Management Location: 14827 Mittlestedt Champions Drive Units: 56 Built: 2010, currently undergoing renovations Web: www.fountainsatchampions.com Interesting features: CKR Property Management is the proud new management company for this Champions-area apartment community. Fountains at Champions is undergoing a number of changes and renovations. As units become available, each apartment home is getting a full renovation. Every aspect of each unit is being upgraded, from the flooring, to the paint and color scheme, upgraded appliances, new fixtures, modern light fixtures and so much more. Some smart home and green features are being included, too. Each apartment home now has Wi-Fi thermostats, outlets with USB ports and LED light bulbs. For it being a 56-unit apartment community, it sits on quite a bit of land, but it doesn’t boast many amenities. When ABODE visited this property, a big pond with recently added fountains was the community’s only amenity. That will soon change. CKR Property Management has a lot planned for this community, and amenities such as a fitness center, a dog park, a walking path and an outdoor kitchen, are included on the to-do list. CKR Property Management is only getting started.

ABODE

June 2019

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a•bode

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(a • bod ) /

1) a home; a residence, permanent or temporary; a dwelling place;

2) the magazine for Houston’s multifamily industry.

me o h e h t is ABODE on t of Hous ily m multifa news! y industr

ABODE magazine is the multifamily industry’s source for what’s happening in the Houston-area apartment market. Every month, our members-only publication highlights industry news and trends, plus photos of YOU, our members, from HAA events! ABODE is your source for industry-specific legal and legislative news as well. Share your promotions and new hires in our “In The News” column, or the latest development in your area of expertise by writing an article. And get your name out there by advertising. Look for ABODE in the mail the first week of each month, or read online at issuu.com/haa_abode. Contact the Communications Department at comm@haaonline.org for details and contact Amanda at asherbondy@haaonline.org to advertise. ABODE is your HAA!

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Index of Advertisers By CATEGORY A/C Supplies

Glass – Plate, Window, Etc.

Swimming Pool Service

Century A/C Supply . . . . . . . . . . . . . . . . . . . . . . . . . .35 281-530-2859 . . . . . . . . . . . . . . . . . .www.centuryac.com

Ameristar Screen and Glass . . . . . . . . . . . . . . . . . .51 713-683-6767 . . . . . . . . . . . . .www.ameristarglass.com

Poolsure . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .45 800-858-POOL . . . . . . . . . . . . . . . . .www.poolsure.com

Answering Service

Insurance

Trash Hauling

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

Harco Insurance . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 713-681-2500 . . . . . . . . . . . . . . . . . . .www.harco-ins.com

Waste Management . . . . . . . . . . . . . . . . . . . . . . . . . .21 713-354-5230 . . . . . . . . . . . . . . . . .www.thinkgreen.com

Careers

Landscape Contractors

HAA Products & Services

Landmark Management . . . . . . . . . . . . . . . . . . . . .59 713-855-3814 . . . . . . . . . . . . . . . . . . . . .www.LMhomes.net

Outdoor Elements . . . . . . . . . . . . . . . . . . . . . . . . . . . .14 713-955-0990 . . . . . .www.outdoorelementstx.com

Rental Credit Reporting . . . . . . . . . . . . . . . . . . .5, 67 713-595-0300 . . . . . . . . . . . . . . .www.haaonline.org/rcr

Texscape Services . . . . . . . . . . . . . . . . . . . . . . . . . . . .49 281-846-3779 . . . . . . . . . .www.texscapeservices.com

Carpet Installation Dixie Carpet Installations . . . . . . . . . . . . . . . . . . . .50 281-261-6334 . . . . . . . . . . . . . . . . .www.dixiecarpet.com

Laundry Equipment & Supplies Scott Equipment . . . . . . . . . . . . . . . . . . . . . . . . . . . . .51 713-686-7268 . . . . . . . . .www.scott-equipment.com

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

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.

Locks & Locksmiths CKI Wholesale Lock Supply . . . . . . . . . . . . . . . . . .20 713-462-0704 . . . . . . . . . . . . . . . . . . . . .www.ckilock.com

Electric Contractors Affordable Quality Electric . . . . . . . . . . . . . . . . . . .13 713-695-5992 . . . . . . . . . . . . . . . . .www.acuityelectric.com

Movers

Brandt Electrical A/C & Heating Services . . . . .17 281-693-3383 . . . . . . . . . . .www.brandtelectrical.com

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

Energy Providers

Paving Contractors

Ambit Energy . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 713-489-9365 . . . . . . . . . . . .www.bizenergysaver.com

Pavement Services . . . . . . . . . . . . . . . . . . . . . . . . . . .65 281-758-8434 . . . . . . . . . . . . . . . . .www.nopothole.com

Foundation Repair

Personnel Agency

Church Services . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .12 713-468-8400 . . .www.churchfoundationrepair.com

General Contractors

ASAP Personnel . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .55 972-432-6667 . . . . . . . . . . . . . . . . . . . . .www.asapdo.com

Plumbing Contractors

Camp Construction Services . . . . . . . .Back Cover 713-413-2267 . . . . . . . .www.campconstruction.com

AAA Plumbers . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .5 713-462-4753 . . . . . . . . . . . . . . . . . .www.aaaplumbers.com

Cotton Commercial USA Inc. . . . . . . . . . . . . . . . . .10 877-511-2962 . . . . . . . . . . . . . . . . . . . .www.cottongds.com FSI Construction . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .15 832-767-1115 . . . . . . . . . . . . .www.fsiconstruction.com

Resident Screening Service

Gemstar Construction & Development . . . . . . . .1 281-821-1195 . . . . . .www.gemstarconstruction.com

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

Guardian Construction . . . . . . . . . . . . . . . . . . . . . . .25 832-672-4196 . . . . . . . . . . . .www.guardianconst.com

Resurfacing

JMI Contractors . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .59 713-343-0035 . . . . . . . . . . .www.jmi-contractors.com

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

MultiFamily Services . . . . . . . . . . . . . . . . . . . . . . . . .65 713-266-9100 RENCON . . . . . . . . . . . . . . . . . . . . . .Inside Back Cover 713-666-3636 . . . . . . . . . . . . . . . . . . . . . .www.rencon.com

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

TPI Inc. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .31 713-668-7986 . . . . . . . . . . . . . . . . . . . . . . .www.tpiinc.com Security Control Equipment/Systems

www.haaonline.org/rcr

SentriForce . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .33 888-671-2202 . . . . . . . . . . . . . . . . .www.sentriforce.com

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_jun2019. 74

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MarketLine By BRUCE MCCLENNY, President, ApartmentData.com

HOUSTON

115.0 –

Snapshot 90.0% $1,033/mo. $1.17/sq.ft./mo. 883 sq.ft.

Past 12 Months: -0.4% rental rate growth 9,794 units absorbed

• • •

– 90.0

– 89.0 100.0 – – 88.0

•

Recently Opened (12 months): 46 communities 10,777 units

110.0 – •

•

Under Construction: 66 communities 19,636 units

– 87.0 Apr 19

Mar 19

Jan 19

Feb 19

Dec 18

Nov 18

Oct 18

Sep 18

Aug 18

Jul 18

Jun 18

Apr 18

May 18

Mar 18

Feb 18

Jan 18

Nov 17

Dec 17

Oct 17

Sep 17

Jul 17

Aug 17

Jun 17

May 17

90.0 –

Proposed Construction: 99 communities 29,428 units

Occupancy (%)

Operating Supply: 2,784 communities 652,776 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 Baytown 8.6% 2 Almeda/South Main 10.5% 3 Tomball/Spring 10.3% 4 Dickinson/Galveston 3.1% 5 Energy Corridor/CityCentre/Briar Forest 7.4%

Rental Rate Growth % 2.6% 2.0% 1.7% 2.4% 1.3%

Total Units Class w/Concessions All 290,639 A 74,170 B 113,752 C 90,115 D 12,602

% of Total Units 45% 49% 45% 44% 28%

Average Special -3.1% -4.4% -2.4% -2.4% -1.5%

Citywide Effect -6.8% -8.6% -5.6% -5.6% -5.4%

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:

91.4% $1,127/mo. $1.29/sq.ft./mo. 874 sq.ft.

90.6% $958/mo. $1.13/sq.ft./mo. 851 sq.ft.

91.4% $1,263/mo. $1.45¢/sq.ft./mo. 874 sq.ft.

Past 12 Months: 2.0% rental rate growth 21,004 units absorbed

Past 12 Months: 2.9% rental rate growth 6,421 units absorbed

Past 12 Months: 3.3% rental rate growth 11,186 units absorbed

Operating Supply: 3,080 communities 724,719 units

Operating Supply: 905 communities 191,943 units

Operating Supply: 991 communities 229,659 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 3.5 million apartment units in Texas, Florida, Georgia, Arizona, North Carolina and Tennessee. For more information, contact Bruce McClenny at 800-595-8730. © 2019 ApartmentData.com June 2019

ABODE

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Back Page

with News from around the COMMUNITY

This year, HAA is taking part in the Pasadena “Fill the Bus” School Supply Drive. Please help us help needy area school children. Drop off donations to: Houston Apartment Association 4810 Westway Park Blvd. Houston, Texas 77041 (off the Beltway and Clay Road)

Deadline for donations is July 30 For more information, contact shinkley@haaonline.org.

ABODE

June 2019

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

Return Service Requested