ABODE June 2023 by HAA Publishing

AB DE

THE HOUSTON APARTMENT ASSOCIATION MAGAZINE www.haaonline.org

THE JUNE MARKET REPORT

Is the economy being held up and forced into a bad relationship?

June 2023

ON THE COVER 34

Shotgun Wedding – Is the economy being held up, and forced into a bad relationship?

Don’t miss the June market report. Is the Fed is forcing the economy to accept the vows of a recession?

FEATURES & PHOTOS

28 On the Scene – Photos from the Fort Bend State of the Submarket.

30 On the Scene – Photos from the HAA PAC TopGolf Fundraiser.

36 Shotgun Wedding – The Fed is forcing the economy to accept the vows of a recession.

44 Waste Not, Want Not – Unscooped pet waste: Is it a problem, a revenue opportunity or both?

48 Choices, Choices, Choices –Deregulation aims to offer lower electricity rates to end-users by promoting competition and deregulating the market and the of electricity.

52 What are Texas Renters Looking For Today? – Marketing to prospective apartment renters is easy if you have the right amenities.

58 On the Scene – Photos from the NEXT Bingo & Brews.

60 On the Scene – Photos from the Supplier Education Program.

72 On the Scene – Photos from the Texas Apartment Association One Conference & Expo.

76 On Site with ABODE – Take a closer look at three of HAA’s Honor Award-winning communities.

COLUMNS & MONTHLY UPDATES

7 President’s Corner – Be prepared to weather the heat.

8 Patron of the Month – Meet and support Camp Construction Services.

9 Legislative Update – News from HAA’s Government Affairs.

11 It’s The Law – Tips to avoid fraudulent leasing activity.

14 Resident Relations – A resident dispute is settled by the committee.

20 Calendar – HAA’s schedule of events for the coming months.

26 NAA Update – The unintended consequences of rent control policies.

62 Welcome Mat – A list of HAA’s newest members.

64 Go-Getters – Learn how to become a Go-Getter and see what the Membership Committee is up to.

66 The Ambassador ONE Society –Meet the HAA Supplier Network.

70 Portfolio Changes and In the News – Property updates and industry news clips from our members.

78 Index of Advertisers – See the supplier members who support this publication.

79 MarketLine – The latest area market numbers.

80 Back Page – News from around the community.

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

www.haaonline.org June 2023 ABODE 3

Cover image © Tsokur | iStock by Getty Images

OFFICERS AND ASSOCIATION LEADERSHIP

GINA ERWIN

LOYAL PROFFITT

Vice President at Large

East

RYAN TERRELL

Vice President at Large

West

QUINTINA WILLIS

Vice President at Large

North

TRACIE YODER Vice President at Large –South

PRODUCT SERVICE COUNCIL OFFICERS

CANDIS MOHR, CAS President AAA Plumbers

JOSEPH RODRIGUEZ, CAS Vice President Greenlogic Lighting & Electric

DEBORAH DEROUEN, CAS Secretary PooPrints

BLAISE SPITALERI, CAS Treasurer

Gemstar Construction Development

BOARD OF DIRECTORS

Mack Armstrong

Julie Batche

Kristen Becker

John Boriack

Jill Bounds

Kyle Brown

Tina Cavaco

Terri Clifton

Michelle Croasmun

Deborah DeRouen

Derek DeVries

Scott Douglas

Gina Erwin

Tamara Foster

Melissa Friend

Diane Gilbert

Monica Gracia

Stephanie Graves

Elizabeth Castro Gray

Manu Gupta

Clay Hicks

Deborah Holcombe

Karen Hefner

Debbie Kelm

Crystal Jackson

Jacob Kunath

Barby Lake

David Lindley

Betsy Marshall

Joe Melton

Kristin McLaughlin

Candis Mohr

Katy Myrick

Carlos Neto

Jenifer Paneral

Angelee Kumar Parikh

Mark Park

Velissa Parmer

Michelle Pawelek

Loyal Proffitt

Christy Rodriguez

Joseph Rodriguez

Kelly Scott

Ingrid Schultz

Corri Smith

Penny Sprang

Kelley Suess

Debbie Sulzer

Blaise Spitaleri

Ryan Terrell

Starla Turnbo

Richard Wall

Shelley Watson

Richard Whatcott

Quintina Willis

Tracie Yoder

DIRECTORS EMERITUS

Josh Allen

Ken Bohan

Gary Blumberg

Kathy Clem

Jack Dinerstein

Jenard Gross

Darlene Guidry

Alison Hall

David Hargrove

Larry Hill

Stacy Hunt

Hap Hunnicutt

David Jones

Mel Kieke

Mike Koch

Dick LaMarche

Cesar Lima

Tim Myers

P David Onanian

Jackie Rhone

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

Susan Alvarado

Jeff Blevins

Michelle Bridges

Israel Garza

Billy Griffin

Valerie Lacy

Stacy Lastovica

Mary Lawler

Laura Lestus

Bruce McClenny

Monica Morales

Dean O’Kelley

Tony Whitaker

GENERAL COUNSEL EMERITUS

Joe Bax

CHRISTY RODRIGUEZ Immediate Past President

HONORARY

LIFE MEMBERS

Claude Arnold

Kenn Brown

Tina Cavaco

Terri Clifton

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

PATRON MEMBERS

1961 CSC ServiceWorks

1968

Century A/C Supply

1978

Houston Planned Energy Systems

1982

Cotton Commercial USA Inc.

1984

AAA Plumbers

1985

Gemstar Construction Development

1986

Craven Carpet

1987

Dixie Carpet Installations

1993

Hire Priority Staffing & Executive Search

1994

Camp Construction Services

1997

Apartments.com

1999

FSI Construction Inc.

DEREK DEVRIES, CAS

Immediate Past President

PRODUCT SERVICE COUNCIL MEMBERS

Susan Alvarado, CAS Century A/C Supply

Chris Bell, CAS, Greenlogic Lighting & Electric

Marivel Bownds, CAS, Valet Living

Tammy Broadway, CAS American Fire Systems

Shaun Callaway, CAS, Earthworks

Brandon Coleman, CAS Flooring Warehouse

Neal Conant, CAS, Gemstar Construction Development

Deborah Derouen, CAS, PooPrints

Derek DeVries, CAS

Marcelino “Tito" Estrada, CAS One Source Realty Advisors

Giovanna Gone, CAS, Century A/C Supply

Dan James, CAS, Redevelopment Services

Amanda Kelly, CAS, Brandt Electrical A/C & Heating Services

Debra Knight, CAS, Comm-Fit

Stephanie Krop, CASe, Poolsure

Liz Levins, CAS, Gemstar Construction Development

Jim Martensen, CAS

EPICHTX Construction

Candis Mohr, CAS, AAA Plumbers

Tracey Moore, CAS, Flooring Warehouse

Karen Nelsen, CAS ALN Apartment

Data

Matthew Nunn, CAS, Capital Construction

Doug Oehl, CAS, Flooring Warehouse

Arely Pena, CAS

The Liberty Group

Nikki Sekunda, CAS, The Liberty Group

Joseph Rodriguez, CAS, Greenlogic Lighting & Electric

Blaise Spitaleri, CAS, Gemstar

Construction Development

Amber Whitaker, CAS FSI Construction

STEPHANIE GRAVES President SHELLEY WATSON Secretary/Treasurer President-Elect

–

HOWARD BOOKSTAFF General Counsel CASEY WATTS MORGAN CEO

ABODE

JUNE 2023 I VOLUME 46, ISSUE 6

Chief Executive Officer and Publisher

CASEY WATTS MORGAN, MPP cmorgan@haaonline.org

EDITORIAL AND DESIGN STAFF

Director of Publications and Design DEBORAH NIX dnix@haaonline.org

Communications Manager MADISON O’BAR mobar@haaonline.org

ADVERTISING

Vice President of Membership and Marketing

AMANDA SHERBONDY, CAE asherbondy@haaonline.org

CONTRIBUTING STAFF

Chief Operating Officer SUSAN HINKLEY, CAE shinkley@haaonline.org

Vice President of Government Affairs BRADLEY PEPPER bpepper@haaonline.org

Chief Financial Officer TREY WIMBERLY, CPA twimberly@haaonline.org

Vice President of Education and Outreach LAUREN TURNER, CAE, CMP lturner@haaonline.org

Director of Resident Relations MATILDE LUNA mluna@haaonline.org

Director of Events and Meetings LAUREN RAGIN, CMP lragin@haaonline.org

Director of Rental Credit Reporting TINA DEFIORE tdefiore@haaonline.org

Government Affairs Manager MADISON POLSTON mpolston@haaonline.org

Membership and Marketing Manager KAYLON NEWCOMB knewcomb@haaonline.org

Education & Outreach Manager CINDY DE LA RIVA cdelariva@haaonline.org

Director of IT WILL ALFARO walfaro@haaonline.org

PRINTER TGI PRINTED www.tgiprinted.com

HOUSTON APARTMENT ASSOCIATION COMMITTEES

COMMITTEE CHAIR

Executive

Nominating

Fair Housing

Ethics

Finance

ByLaws

Past Presidents Council

Multifamily Fire

Safety Alliance

Legislative

Political Action

Golf

Century Club

Strategic Outreach

Education Advisory

Leadership Development

Community Outreach

Product Service Council

Expo Exhibitor

Membership

Ambassador ONE Society

Independent Owners Connection

Resident Relations A

Stephanie Graves

Christy Rodriguez

Mack Armstrong

Michelle Pawelek

Gary Blumberg

Kyle Brown

Kathy Clem

Elizabeth Castro-Gray

Gina Erwin

Stacy Hunt

Starla Turnbo

Blaise Spitaleri

Shelley Watson

Betsy Marshall

Penny Sprang

Kyle Brown

Joe Melton

Candis Mohr

Joey Rodriguez

Monica Gracia

Matt Nunn

Liz Levins

Blaise Spitaleri

Elizabeth Castro-Gray

Diane Totten

Resident Relations B Jana Gragg

Resident Relations Appeals

HAF Fundraiser

Property Awards

Darlene Guidry

Stephanie Krop

Brandon Coleman

Monica Morales

Susan Alvarado

Norma Alvear

Diane Gilbert

STAFF ADVISOR

Casey Morgan

Bradley Pepper

Madison Polston

Lauren Turner

Susan Hinkley

Amanda Sherbondy

Matti Luna

Lauren Ragin

Tina DeFiore

HOUSTON APARTMENT ASSOCIATION MISSION AND VISION: HAA is the leading advocate, resource and community partner for quality rental housing providers in the Houston and surrounding area. HAA develops leadership in the multifamily industry by engaging broadly diverse membership, embracing effective technology and advocating for a geographically inclusive association. 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 2023, VOLUME 46, 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 © 2023 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 2023 ABODE 5

SPONSOR MEMBERS

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

3BeeGuys Bee Removal

A.B.M. Commercial & Residential

(DBA 1-800-Plumber+Air of Northwest Houston)

A1 Appliance Plug

AAA Staffing Ltd

AAdvantage Laundry Systems

ABC Supply

ACM Contractors of Texas

ACT Security Group

Action Window Coverings Inc

ACTIV Answer by Audio Images

Adobe Floors Inc

Adventure Playground Systems Inc

Advocate Construction Inc

Alcaraz Lawn Care

Alexander-Rose Associates Inc

All American Mailboxes of Houston Inc

All Dry Service

ALN Apartment Data

Alpha Patrol Officer

Ambassador Services LLC

The Ambrose Group

America Outdoor Furniture

American Fire Protection Group

American Fire Systems Inc

American Platinum Builders

AmRent Andrews Myers PC

Apartment Lines

The Apartments Concierge

ApartmentData From

MRI Software

Apex Multifamily

AppFolio

Arborworks TX

ASAP Personnel Inc

Assurance Electric LLC

Asurety Dryer Vent & Fireplace Inspections

Atlantis Exterior Cleaning

Atom4 Security Camera

AZP Multifamily

B&G Construction

Belfor Property Restoration

Bell’s Laundries

Bettencourt Tax Advisors LLC

BGE Inc/aka Brown & Gay Engineers Inc

Bio-One Houston South

BioTechs Crime & Trauma

Scene Cleaning

Black Tie Logistics

Blue Heron Technologies LLC

Blue Marlin Maintenance & Services

BluSky Restoration Contractors

Brady Chapman Holland & Assoc

Brandt Adjusting Service LLC

Brown & Brown Lone Star Insurance Agency Inc

BSI

C3 Building Solutions

Cano Electric Inc

Capital Disaster Solutions

Capital Security Solutions

Centex Construction

Century Fire Protection Houston

CEP Construction Services LLC

Certified Apartment Staffing

CFI Group

Chadwell Supply

Chicago Title Commercial Division

Citi Fence & Concrete

City Pups

City Wide Facility SolutionsHouston West

Classic Same Day Blinds

Clean & Green Solutions

CNM Project Management LLC

CoAdvantage

Code Red Security Systems PLLC

Comfort Systems USA (South Central) Inc

Comiskey Capital Insurance Agency Inc

Commercial Fire Protection

Community Roofing Texas

Construction ECO Services

Contractors Inc

Contratista Direct

ControlByNet Cloud and Managed Video Surveillance Solutions

Core 24/7 Restoration & Construction

Core By KHI Restoration

Core Multifamily Fabrication

CRE Business Solutions LLC

Crowned Eagle Construction

CSC Serviceworks

CWC Renovation Inc

Cypress Landscaping & Irrigation Inc

D&G Quality Roofing Inc

D&M Roofing

DeNyse Companies Designs by Holmes

DHI Commercial Roofing

The Dick Law Firm

DNM Contracting Inc

DoodyCalls

Double Oak Erosion

Dryer Vent Wizard of Humble

Embark Services

Emersyn Electrical Services LLC

Encore Services TX, LLC

EnviroSmart Multifamily

Pest Solutions

Epic Air Conditioning

EPICHTX Construction

ESI Fire & Security Inc

Exo Edge

Ezlo Innovation

Fantastic Floors

FASTSIGNS Missouri City

Featherston Sign Partners

FFH Inc DBA Liberty Builders

Fiat Construction LLC

Fidus Construction Services

Finish Factory Inc

Fire Reconstruction Inc

Flavor Finish Resurfacing

Frontier Waste Solutions

fun abounds

Gambit Construction Gateman Inc

Get It Done Cleaning Service LLC

Gifford Roofing

Giordano Construction Inc

Go-Staff Inc

Graphic Stylus Promotional Products

Great American Business Products

Green City Security LLC

Green Garbology

Greenlogic Lighting & Electric

Grindstone General Contracting

GT Security Solutions

Guardian Gutters

Halo Doors Inc

Hamilton-Steele Outdoor Accents

Hard Works Valet Trash & Recycling

Hell N High Water Construction

Higginbotham

Hive Technology

Homeland Protective Services Inc

Hoover Slovacek LLP

HQ Contracting

Hut Services LLC

Industrial Disposal Supply

Infinity Power Partners

Infinity Roofing & Restoration

Inner Loop Construction LLC

Innovative Roofing Company Inc

Insgroup

Iris MF LLC

J.P. Morin Company LLC

JAK Environmental LLC

Jenkins Restorations

JLD Enterprises LLC

Johnstone Supply

Jonah Digital Agency

Kathy Andrews Interiors

Keylo Painting & Construction

KONE

Leah McVeigh Design and Consulting

LeasePal Inc

Ledge Lounger

Lee & Barrier Builders LLC

The Legends Group LLC

LGC Builders LLC

The Liberty Group

Liftmaster

Lights Out Production Company

Lincoln Jacob Construction

Lithotech Printed Products/ Forms Center

Long Point Roofing

Lopez Carpet Care & Painting

LSR Multifamily

LVL Up Remodeling

Maldonado Nursery & Landscaping Inc

Mandalay Construction LLC

Marchand Lighting

Masonry Solutions Inc

Matrix Construction Services

McMahan's Flooring Inc

Men In Kilts

Merk Electric Co

Monge Contracting Group

MPS Direct

Mueller Water Conditioning Inc

MVI Construction

MX2 Commercial Paving

National Renovations LLC -

DBA Repipe Specialists Inc

NEI General Contracting

Nelson Painting and Construction

Norman Roofing and Construction

NorthMarq Capital

O’Conor Mason & Bone PC

On Duty Tree and Landscape

On Site Towing LLC

OnCall Patrol LLC

DBA Parking Pass.Com

Outdoor Elements

Over the Top Roofing and Remodeling

Pace Mechanical Services LLC

Pack It Movers

Parking Management Company/

PMC Towing

Pasadena Insurance Agency Inc

Paul Davis Greater Houston

PCS Creative Surface LLC

The Phoenix Staffing

Power Services of Texas

Precision Safe Sidewalks LLC

Pro Kleen Exterior Services

Pro-Tex Contracting Group

Professional Resurface LLC

Property Guardians

Pura Flo Corporation

PuroClean

Quatro Tax LLC

Qwikkit

RAM Construction

Ram Jack Foundation Solutions

Real Floors Inc

Redevelopment Services

Reliable Roofing of Texas Inc

Reliant

RENCON

Rent Debt Automated Collection Services Inc

Rent.

Resia Construction LLC

Resident IQ

Residential Waste Service LLC

Restoration 1 of Central Houston

Revelation Windows & Doors

REVS (Refuel Electric Vehicle Solutions)

Roadrunner Restoration Company LLC

Roosevelt General Contracting

Roto-Rooter Services Co

Rotolo Consultants Inc (RCI)

RTC Restoration & Glass Inc

SafeRent Solutions

Saifee Signs & Graphics

Saint Clair & Sons Inc

Santos Contracting LLC

Sayan Renovations and Construction

Scoop Troop HTX

SEAL Security Solutions LLC

Secure Insurance

Select Appliance Wholesale LLC

Sergeant Fifty-Five Insurance

ServiceMaster Recovery Management

SERVPRO of Cypress

Sherwin Williams

Shipman Fire Protection

Sign-Ups & Banners

Signal of Houston

Snappt

South Central Electric LLC

Southern Exposure

Landscaping LLC

Spectrum Brands

State Patrol Services LLC

Steward Trash Valet Service

Stormwater Professionals Group

Strata Roofing and Construction LLC

Strategic Electrical Solutions

Strategic Protection Solutions

Structural Concrete Systems LLC

Sunny Pressure Washing LLC

Surface Experts

Sutton AC Contractors LLC

Swain & Baldwin Insurance & Risk Management

Texas Apartment Pool Services

Texas Concrete Professional Company

Texas Engineered Roofing & General Contracting

Texas Landscape Group LLC

Texas Southwest Floors Inc

Texas Window Cleaning Co Inc

Three Amigos Texas LLC

Threshold Agency LLC

Tpo Pros Roofing & Restoration

TradeCon Industries

Two Brothers Foundation Repair

United Protective Services

Urban Value Corner Store

USA Heroes Coalition D/b/a USA

Real Estate Professionals (USAREP)

USA Patrol Division

Valet Living

VBM Waste LLC

Vima Decor

WASH Multifamily Laundry

Systems

Watermark Restoration and Construction

Webb Pest Control

Whitmans Contracting and Roofing

World Cinema Inc

XXL Construction Inc

Letter from the President

By STEPHANIE GRAVES, CAPS, CAM, IROP, 2023 HAA President

ARE YOU PREPARED TO WEATHER THE HEAT?

The temperature in Houston is rising, which can only mean one thing, summer is coming.

Summer in the apartment industry doesn’t mean long days of relaxing by the pool or two months without homework, it means you better be ready to gear up for a busy season ahead. Packed leasing offices with eager renters, clogged pool drains, over worked air conditioning units and employees juggling life work balance while their school kiddos are out on break, are just around the corner!

With so many moving pieces, preparing for these busy months ahead are crucial. Leasing managers, prepare yourself mentally for what you are about to encounter. Renewals are coming up, apartment tour requests are growing and our teams need a strong leader through this busy season. Let your maintenance teams know just how much you appreciate them braving the Texas heat and that they are taking care of themselves too and not just the units. Make sure you get your inspections done so you have time to repair any systems that might not be functioning perfectly. Keep those spring maintenance projects on track to wrap up before the warmer weather brings in new residents and get your vacant units “rent ready.” Bring your teams water throughout the day to keep them hydrated, bring goodies in the office for your potential new residents, hold a team meeting preparing everyone for what’s about to come and make sure to give recognition to your hard-working consultants.

Summer isn’t just a scary word for the management side, but for the supplier side too. Pools opening, air conditioners running and kids at home for two months mean that appliances are getting used more often. Suppliers, we need you through these trying times! You still have a little time to put your tools in place and call the resources you need. Keep your staff motivated and not just focused on their upcoming summer vacations! Stay prepared mentally and physically for the heat wave.

A Different Kind of Heat: Join me for Casino Night!

And if you are looking for a break during all the crazy, don’t forget that the NEXT Committee is hosting a Casino Night on July 18 to raise money for the HAA PAC. If you’re feeling lucky and want to contribute, what better way to support the PAC and the NEXTERS? We would love to have you ‘roll the dice’ and participate. I will even be dealing at the VIP table, which will be fire! You can find more information on HAA’s NEXT Casino Night on Page 19. Maybe you can even get some hot tips from the players sitting around the table about what they are doing to prepare for these next few months.

Be ready. Summer is coming, and I hear it’s a five alarm!

www.haaonline.org June 2023 ABODE 7

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

June Patron of the Month

Houston Planned Energy Systems

HAA Member since 1978

Cotton Commercial USA Inc.

HAA Member since 1982

Hire Priority Staffing & Executive Search

HAA Member since 1993

CSC ServiceWorks

HAA Member since 1961

Craven Carpet

HAA Member since 1986

Camp Construction Services

HAA Member since 1994

Apartments.com

HAA Member since 1997

Gemstar Construction Development Inc.

HAA Member since 1985

AAA Plumbers

HAA Member since 1984

FSI Construction Inc.

HAA Member since 1999

Dixie Carpet Installations

HAA Member since 1987

Century A/C Supply

HAA Member since 1968

8 ABODE June 2023 www.haaonline.org

IT’S NOT OVER UNTIL IT’S OVER

Texas Legislative Session adjourns Sine Die.

ON MONDAY, MAY 29, the Texas Legislature adjourned Sine Die (last day of session). After 140 days and nights of work, the members of the House and Senate returned home to live under the laws that they passed. Any piece of legislation that was not passed (or vetoed) must wait until January 2025 to be considered when the Legislature returns to Austin for the 89th Legislative Session.

That is unless Governor Greg Abbott calls a Special Session. At the time of writing, the legislature was still in regular session. Only the Governor has the authority to go to overtime and he alone has the authority to decide what will be addressed during that session.

Unlike a regular session where lawmakers can pursue legislation on any topic, during a Special Session the Governor determines the agenda by placing issues “on the call.” Any measures outside the scope of those issues will not be taken up. There were still several major legislative priorities that both the Senate and the House had not resolved, not the least of which was the budget. The budget is only one item that the Texas legislature must pass and the Texas Constitution requires that it be a balanced budget.

With a record $33 billion surplus and an alltime high of $188.2 billion in state general funds available to spend, there were disagreements between the chambers on how to use those dollars.

Property tax relief has been priority number one of the Governor, the Senate and the House, with all three announcing intentions to use at least $15 billion of the surplus to reduce property taxes. That said, there have been competing strategies to deploy those resources.

The Senate has focused on increasing the homestead exemption for homeowners from $40,000 to $70,000 and reducing school taxes by 25%. The House has proposed instituting appraisal caps for all properties at 5%.

Another priority issue for Governor Abbott has been school choice, also known as school vouchers. There has historically been little to no interest in spending taxpayer public education dollars on private school tuition from Texas Democrats and the Texas House.

With a renewed effort by the Governor, the Senate passed a bill creating education savings

accounts, which would work like vouchers and allow families to use tax dollars for private schools. It would be open to most K-12 students in Texas and would give parents who opt out of the public school system up to $8,000 in taxpayer money per student each year. Those funds could be used to pay for a child’s private schooling and other educational expenses, such as textbooks or tutoring.

In the Texas House, school choice vouchers have been a non-starter for decades. In many of the House members’ districts, the public-school districts are the largest employer and educate almost all school aged children, so members take special interest in protecting their funding.

The House Public Education Committee Chair, Rep. Brad Buckley (R-Killeen), proposed a far more narrowed voucher program that would limit eligibility to only students with disabilities or those who attended an F-rated campus. This would mean that fewer than a million students would be eligible to enter the program.

Even after watering down the Senate’s voucher bill, it would still be a very heavy lift to pass that narrowed proposal out of the House. The Governor indicated that if the legislature did not pass something resembling the Senate version, it would result in a Special Session being called.

What passes or does not pass while this magazine is being printed will determine if and when there will be a Special Session and what will be considered. We will have a comprehensive session recap in next month’s magazine.

TAA/HAA Supported Legislation

While property taxes have a dramatic impact on the industry and continue to be a top priority in both TAA and HAA’s advocacy efforts, there are a few pieces of legislation that we are actively pushing.

• House Bill 2035 by Rep. Shelby Slawson/Senate Bill 986 by Senator Brandon Creighton: The eviction process should be uniform across Texas. A patchwork of local requirements creates confusion and unintended consequences. Justices of the Peace follow state law and court rules in eviction proceedings and cities have no defined role. However, some cities have recently tried to intervene by passing ordinances that prolong the process.

For example, the City of San Marcos currently has a 90-day notice before you can file an eviction. HB 2035 and SB 986 would prohibit cities from imposing their own notice requirements outside of state law.

At the time of printing, SB 986 had been voted out of the Senate and was awaiting a hearing in the House. HB 2035 had received a hearing in the House Business and Industry Committee.

• House Bill 2457 by Rep. J.M. Lozano/Senate Bill 767 by Senator Tan Parker: City fees fund essential services but stakeholders – and sometimes even council members – are often not aware of new or increased fees until after they have been adopted. These bills would increase transparency when cities are considering increasing fees in city budgets.

They will require a fee schedule of new/increased fees to be included on the city budget’s cover page – similar to requirements cities already meet when proposing new property tax rates. They will also require a separate vote by the city council to approve the use of the revenue raised by the new or increased fees and allow interested parties to register for email notification about proposed new/increased fees.

At the time of printing, SB 767 had passed the Senate and been picked up by Rep. Lozano in the House. It had been voted out of the House committee and was waiting to be heard on the House floor.

• House Bill 4057 by Rep. Mano DeAyala/Senate Bill 2147 by Senator Joan Huffman: The City of Houston recently created conservation districts in six pilot Houston neighborhoods. These districts will regulate many of the same items found in deed restrictions and potentially circumvent existing state law on the creation of deed restrictions by allowing 51 percent of property owners to implement newly created regulations without a property owner opt-out provision. These bills would afford property owners in a City of Houston conservation district the same right found in state law for newly created deed restrictions by providing for a one-year time period to opt out of the conservation district.

At the time of printing, HB 4057 had passed the House and was scheduled to be heard in the Senate Local Government Committee and / See Legislative, Page 51

Legislative Update

Legislative

of Government Affairs

By GINA ERWIN, HAA

Chair, with BRADLEY PEPPER, Vice President

www.haaonline.org June 2023 ABODE 9

FRAUDULENT ACTIVITY

Here are tips to help apartment owners and managers avoid fraudulent leasing activity and minimize loss.

THE FEDERAL TRADE Commission states on its website that consumers reported losing nearly $8.8 billion to fraud in 2022. This is up 30% from 2021. The FTC received over 760,000 reports of imposter scams in 2022, making it easily the nation’s most common type of fraud. Losses to imposters more than tripled over the last two years – reported at more than $2.7 billion in 2022.

Unfortunately, the apartment industry is a common target for fraudsters. Even the most diligent owners and managers have fallen victim to fraud and imposter scams in connection with leasing. Let’s look at a few tips that may help you avoid certain fraudulent activity and minimize potential damages.

Review corporate housing policies.

Fraudulent activity often occurs when you engage in corporate housing without knowing exactly who you are leasing to. If an individual wants to avoid certain criminal, credit and rental background checks, they may request that a lease be put into a company name as opposed to their individual name. Without the right policies in place, they may be able to get away with leasing in the company’s name, defaulting on the lease and leaving you with little or no recourse against an insolvent resident.

Here are some tips when checking out a corporate housing resident:

• Know who you are dealing with. Most companies that are organized entities need to file documents with the Texas Secretary of State office when they are organized. You can confirm whether a company is a corporation, limited liability company, limited partnership or other legally organized entity by checking the Secretary of State’s website at http://www.sos.state.tx.us/corp/ sosda/index.shtml.

Companies that are organized by filing documents with the Secretary of State’s office

and do business in something other than their official legal name will be required to file an assumed name certificate in the Secretary of State’s records. You can also check out an entity’s assumed name on the Secretary of State’s website provided above.

Even the most diligent owners and managers have fallen victim to fraud and imposter scams in connection with leasing. Let’s look at a few tips that may help you avoid avoid certain fraudulent activity and minimize potential damages.

In some instances, an entity may be required to file an assumed name certificate in the county in which it does business. This can be checked online by going to the applicable County Clerk’s website.

Using these websites to confirm the name and legal status of an entity seeking to sign a lease can help assess the legitimacy of the company and may help you avoid fraud.

• Have the lease signed by someone other than the principal occupant. A red flag should go up if the occupant of the unit is the same person that signs the lease for the company-tenant. Why is the person signing the lease on behalf of a company as opposed to signing it individually? If the company is an entity involved in some type of corporate housing program, chances are the person signing the lease on behalf of the entity would be an authorized representative who is involved in the corporate housing program for the company, not an individual who wants to live in a unit.

• Know who is occupying your unit. Every corporate housing lease agreement should outline a procedure for identifying, checking and approving all occupants residing in a unit. Adult occupants should undergo the same nonmonetary checks that residents undergo in your community. If the companytenant is responsible for paying rent and all other charges under the lease, monetary checks (such as employment or income history) may not be necessary. However, if you take steps to confirm the background of

other residents, you should do the same for all adult occupants in a corporate housing setting. This policy should extend to occupants that may move in during the term of the corporate housing lease.

Do not give keys out until the lease is fully signed.

Picture this: A husband and wife are residents listed under the lease. The wife shows up first and says that the husband is out of town on business, but she tells you she needs to move in with her two kids right away because they have nowhere else to stay. You believe her and give her the keys and she moves in.

About a month later, you still don’t have the lease signed by both the husband and wife (only the wife signed), and although the residents paid their rent, they end up skipping out at the end of the second month.

You send a final account statement to both the husband and wife saying they are responsible for the reletting fee and accelerated rent because they skipped out. The husband’s attorney calls and says you can’t hold the husband responsible because he didn’t sign the lease. You can only hold the wife responsible, but she has no income. You realize that it may be difficult to hold the husband responsible for breaching a lease that he did not sign.

A strict policy of requiring a lease be signed before keys are given out seems obvious; however, the problem still crops up every now and then. Don’t take promises that the lease will be signed at a later date! In this

www.haaonline.org June 2023 ABODE 11

It’s the Law By HOWARD BOOKSTAFF, Hoover Slovacek LLP , HAA General Counsel

day and age of electronically signed documents, there should be no reason why the lease cannot be fully signed by all residents before any keys are distributed.

Be careful in checking and confirming identification.

Imposter scams have and will continue to be prevalent in our lives. It seems the more high-tech our society becomes, the more opportunity there is for bad actors to steal another person’s identity. In the apartment industry, bad actors could take advantage of leasing an apartment unit and then either living in the unit or subleasing the unit for a period of time until the owner finds out and does something about it.

The standard TAA application requires the applicant to provide several pieces of personal identifying information including birth date, social security number and driver’s license number. A red flag should go up if any of these do not match with the person that is applying! Further scrutiny is required. If these identifying factors don’t match up, you should find out why. If there is no reasonable explanation, it is possible that the person is

not who they say they are. This would warrant a rejection of their application. If they somehow already leased, they can be evicted. Providing incorrect, incomplete, or false information on the application is a violation of section 23.1 of the lease.

Consider avoiding free rent specials.

Whether and to what extent you want to provide concessions is up to you. However, it may be beneficial from a fraudprotection standpoint to spread free rent specials throughout the lease term as opposed to providing months where the resident does not have to pay any rent. Otherwise, you are an attractive target to someone wanting to sign a lease with little or no payments up front. We have had issues where persons gain residency, either live in the unit or sublet the unit for the free rent period and then skip out. By requiring payments each month (by prorating any discount over the life of the lease), you will be able to find out sooner if a resident is not able to meet rent obligations.

Evict quickly if you find that fraud occurred.

No matter what steps you take to avoid fraudulent leasing activity, you may still have issues. Plan for it.

If you discover fraudulent activity, the quicker you take action, the less damages you will suffer. In the post-COVID-19 era, the speed of the eviction process can vary based upon several factors. Remember, the federal CARES Act still requires covered properties to provide a 30-day notice to vacate for cases involving nonpayment of rent. Fraudulent activity is often accompanied by a failure to pay rent. If you are a covered property as that / See Law, Page 55

12 ABODE June 2023 www.haaonline.org

A strict policy of requiring a lease be signed before keys are given out seems obvious; however, the problem still crops up every now and then. Don’t take promises that the lease will be signed at a later date! In this day and age of electronically signed documents, there should be no reason why the lease cannot be fully signed by all residents before any keys are distributed.

UNSECURE SECURITY DEPOSIT

A resident files a complaint after her security deposit is not refunded.

A RESIDENT FILED a complaint with the Houston Apartment Association to dispute a property’s decision to keep her security deposit. The resident completed her full lease term and received a clean move out report showing no damages or fees. The resident also received an email from an employee at the time, stating that no charges were added to her account and her security deposit of $400 would be returned to her. After waiting 30 days, the resident reached out to HAA requesting three times the security deposit due to the delay.

HAA reached out to the apartment property and their response was forwarded to the resident. The property explained that the previous employee who sent the resident the email confirming her security deposit would be refunded had been terminated and that the resident had

not given her move out notice in a timely manner. Enclosed in the management’s response were copies of the lease, application and receipt of security deposit from the applicant.

The case was heard during a Resident Relations Committee meeting. The committee decided in favor of the resident, stating that management did not address or disagree with the move out notice agreement that was provided and signed by an office representative. The committee noted the resident’s security deposit was not applied to money owed and, because of this, the resident was to be refunded her $400 security deposit.

The committee also informed the resident that, due to a lack of legal jurisdiction by HAA in the case, the resident may wish to pursue three times the security deposit in small claims court.

The HAA Resident Relations Committees provide an impartial review of resident complaints using the documentation provided by both the resident and management. When the committee finds in favor of the resident, we appreciate a direct response from the property to the resident within two weeks and a copy of the payment sent to HAA for our records. When the committee finds in favor of the resident, management may file an appeal. When the committee finds in favor of the property owner, the decision is final. If you are a manager with a resident relations issue, call HAA at 713-595-0300 for direct assistance. Renters can be referred to HAA to speak to a trained consultant, fluent in English and Spanish, Monday through Friday from 9 a.m. to 4 p.m. Residents can also be directed online to www.haaonline.org/renters.

Resident Relations from the RESIDENT RELATIONS COMMITTEE

14 ABODE June 2023 www.haaonline.org

SPONSORSHIP A CTI N

Events in the roundup include Installation Gala, Bowling Tournament, Business Exchange, Chili Fest, the new Industry Achievement Luncheon and more, plus a heap of educational seminars and courses.

Is this your first rodeo? Come early for the Auction 101 session to find out how to bid, what’s for sale and how it all works. Have to miss the cattle call?

If you can’t make the live auction, Proxy bidding is available. Contact asherbondy@haaonline.org. Visit the HAA website for the full Auction Program with the list of events up for bids at www.haaonline.org/sponsor.

3:45 p.m. Live Auction begins: 4 p.m.

Get your “RIP’ on and Join the Family. Lasso up your next marketing opportunity and gain exposure for your brand by sponsoring an upcoming HAA event or meeting! HAF Dinerstein Reed Prokop Education Center, 4810 Westway Park Blvd. off Clay Road just east of Beltway 8 Auction 101: 2:30

Registration:

Wednesday, June

JOIN US AT THE RANCH Wednesday,

JOIN US AT THE RANCH

p.m.

3 p.m. Drawings close:

RSVP to Amanda Sherbondy at asherbondy@haaonline.org

June 21

Join us as we recognize the multifamily industry's finest professionals and properties, as well as recent NAA credential holders.

2023 Honors Awards

Thank you to our generous sponsors

Individual Awards sponsored by

6 P.M. TO 9 P.M.

HILTON AMERICAS-HOUSTON

GRAND BALLROOM, FOURTH FLOOR

1600 LAMAR ST., HOUSTON, TEXAS 77010

$130/seat or $1,350 for a table of 10

Early Bird Discount: Save 10% by registering by June 3

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 26. No refunds will be granted after June 26 or for no shows, but tickets are fully transferable.

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

Property Awards sponsored by

Reception sponsored by

BE A PART OF THE NEXT GENERATION OF HAA LEADERSHIP.

This niche group within HAA is dedicated to the networking and professional development needs of HAA’s young professionals and it is open to all members. 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.

NEXT Mission Statement:

A network of young professionals committed to the growth of future leaders with the Houston Apartment Association through education, peer-to-peer networking, and legislative and community involvement.

NEXT Co-Chairs:

HAA NEXT programs include networking socials hosted at various venues across Houston and professional development breakfasts held at the HAF Education Center. The Professional Development programs feature special guest speakers on timely topics relevant to enhancing and furthering your multifamily industry career.

Register online at www.haaonline.org/next or email us at events@haaonline.org for more information. We look forward to meeting you!

Mark your calendars and stay tuned for what’s NEXT!

Monica Morales, CAM, Q10 Property Advisors Susan Alvarado, CAS, Century A/C Supply

Upcoming NEXT Events: Biannual HAA PAC Fundraiser Casino Night! - July 18 See at right for details. Socials August 24

November

CASINO NIGHT

Benefitting the HAA Political Action Committee

Tuesday, July 18

The Ballroom at Tanglewood

5430 Westheimer Road

5:30 p.m. to 8:30 p.m.

All members are welcome

Gatsby-themed cocktail attire suggested, Heavy hors d'oeuvres and cash bars available.

Casino Player - $85 (includes 1,000 chips)

Spectator - $50

Casino Group Package - $400 for a Group of 5 Players

High Roller Buy-In - $1,000

Gain access to the High Roller Section where HAA President Stephanie Graves will be dealing blackjack

High Roller Sponsor

Crestmark Construction Services

Bar Sponsors

Guardian Construction and Merit Roofing & Construction

Pit Boss Sponsors

Guardian Construction and EPICHTX Construction

Photobooth Sponsor Hoffer Furniture

Welcome Sponsor SafeRent Solutions

Table Sponsors

AAA Plumbers, ATI Restoration, EPICHTX Construction, Ferguson Facilities Supply, Ideal Towing, J National Contractors, FFH Inc DBA Liberty Builders, Magna Pest Solutions, Valet Living and WeDoTrash

Please note that, with certain limited exceptions, a corporation may not make a political contribution. Business checks may be from LLCs, LPs, or other entities. Texas law prohibits us from accepting corporate checks. By making a contribution, you are representing that you are not making a contribution that is prohibited by Texas Law. Contributions are not tax-deductible.

JUNE 1

Legal Lowdown

Thursday, June 1

3 p.m. to 4 p.m.

Via Zoom

28

Leasing 101

Tuesday, June 27 through Wednesday, June 28 9 a.m. to 4 p.m.

29

2023 Legal Seminar

Thursday, June 29 9 a.m. to Noon

HAA 4810 Westway Park Blvd. Contact education@haaonline.org for details.

Sponsored by PooPrints and Cinema Anywhere

Featured Event Honors Awards

Thursday, June 29

6 p.m. to 9 p.m. Hilton Americas Houston 1600 Lamar Street, 77010

Join us as we honor and celebrate the multifamily industry's finest professionals and properties, as well as recent NAA credential holders. For more information and to register, visit www.haaonline.org/events and see Page 17 for more details and sponsors.

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/events for an interactive calendar.

Calendar HAA Education, Events and Meetings SCHEDULE 20 ABODE June 2023 www.haaonline.org

JUNE S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 JULY S M T W T F S 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30 31

JULY 4

HAA Offices Closed

Tuesday, July 4

HAA offices closed for Independence Day

5 New Supplier Orientation

Wednesday, July 5

10 a.m. to 11 a.m.

Via Zoom

All new supplier members or representatives can attend this online orientation. Learn how to get involved and take advantage of member benefits.

Ambassador ONE Society

Wednesday, July 5 3:30 p.m. to 5:30

Kirby Ice House Memorial 1015 Gessner Road

6 Legal Lowdown

Thursday, July 6

3 p.m. to 4 p.m.

Via Zoom

See www.haaonline.org/events for details.

New Technology Track!

Plus updated content featuring the top industry speakers

Avenues: Main Street - 2

July 18

Why Ya' Gotta Be So Mean? Dealing with angry residents with Lisa Trosien, ApartmentExpert.com

Avenues: Main Street - 3

November 15

Apathy To Empathy: 4 Methods to Cure Fatigue & Bring the Compassion Back with Amy Kosnikowski Dilisio

with Mark Cukro, Plus One Inc.Service Team Training Avenues: Maintenance Blvd - 3 October 19

As the Apartment Turns- Preventing

Soap Opera Drama in your Apartment Turn Program with Chris King-Dye, Full House Marketing

Avenues: Leadership Lane – 2

June 14

The Persuasive Leader Workshop: How to Lead Your People to Their Highest Results with Rommel Anacan

Avenues: Leadership Lane - 3

September 20

Next Level Leadership with Debbie Phillips

Avenues: Marketing Place - 3

October 11

Say YES to the Address with Leah Brewer, Full House Training

Avenues: Technology Row - 1

June 7

Excel Basics with Julie Hartman, B2G Victory

Avenues: Technology Row - 2

July 11

Excel Intermediate (102) with Julie Hartman, B2G Victory

Avenues: Technology Row - 3

August 16

Microsoft Training (Teams, Outlook, and Office) with Julie Hartman, B2G Victory

Need just one seminar? Individual sessions are priced atonly$60per person,arealstealforqualityeducation! 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. Look for the class schedule at www.haaonline.org for details. Contact the HAA Education Department at education@haaonline.org or register online at www.haaonline.org. Main ST Maintenance BLVD Marketing PL Leadership LN Annual Property Subscriptions are available with unlimited attendance for all on-site property staff to attend all sessions at a discounted price. • Fewer than 200 units: $199/year • 200-350 units: $399/year

350 units: $499/year Three

CEC credits awarded per session.

• More than

(3)

Avenues: Maintenance Blvd -

June 21 How to Create Win-Win Scopes, Bids, and Contracts with Chris King-Dye, Full House Marketing Avenues: Maintenance Blvd - 2 October 4 Trends in Maintenance - Personnel, Service, Technology and Tools

ROW

Technology

that

your career

with Avenues.

Follow a road

fits

journey

LEGAL SEMINAR

Legislative Session Recap

What New Laws You Need to Know

Thursday, June 29

Location – HAF Education Center, 4810 Westway Park Blvd. (off Clay Road and the Beltway)

Registration and Breakfast – 8:30 a.m.

Program – 9 a.m. to Noon

Program Fee – $75/person

Seating is limited, register early. Receive 3 CEC Hours

Sharpen your knowledge of your legal rights and responsibilities as a rental housing provider by participating in the annual HAA Legal Seminar.

Presented by Howard Bookstaff, HAA General Counsel

For more information and to register, see online at www.haaonline.org/events.

Sponsored by PooPrints and Cinema Anywhere

–

IROC Breakfast Insurance Can Break Your Deal. Know What Questions to Ask and When! Thursday, June 22 HAF Education Center 4810 Westway Park Blvd. off Clay Road and Beltway 8 8 a.m. Free to current HAA members $25 for non-members. Payment may be made in advance or at the door. Register online at www.haaonline.org/events Sponsored by Crowned Eagle Construction Insurance Can Break Your Deal. Know What Questions to Ask and When!

Property management supervisors and executives:

Don’t miss this free networking opportunity that supports our industry.

Join HAA and our chairs, Deborah Holcombe, Capstone Management, and Richard Wall, Westdale Asset Management, for the 17th annual HAA Business Exchange, a great opportunity to learn about the latest industry products and services in an online, controlled environment and give back to your industry. Find supplier partners that can help with your needs with CapEx Projects, renovations, staffing, pest control, technology and more!

Thursday, August 8

HCC West Houston Institute, 2811 Hayes Road, 77082

8 a.m. – Registration

9 a.m. to 11 a.m. – Exchange

See more at: www.haaonline.org/businessexchange or contact Susan Hinkley at shinkley@haaonline.org or 713-595-0313 for more information.

www.haaonline.org/businessexchange

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.

This event raises money for the Houston Apartment Foundation Scholarship Fund. The HAF Scholarship Fund provides monetary assistance to students who are pursuing their credentials. By simply attending, (you pay nothing) you are helping us grow talented people to work in the industry. To take part in this great fundraising event, contact HAA’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.

Industry Update from the NATIONAL APARTMENT ASSOCIATION

Fort Bend State of the Submarket

Wednesday, April 26 at Hilton Garden Inn Sugar Land

Sponsored by American Fire Systems, BlueLine Construction and Remodel and EpicHTX Construction

A great lineup of local area leaders presented timely information on economic trends, rental rates and new developments for the Fort Bend market. A packed house enjoyed lots of great conversation and questions. Thank you to Moderator Loyal Proffitt, Allied Orion, and panelists Sugar Land Mayor Joe Zimmerman, Richmond Economic Development Director Jerry Jones and Bruce McClenny, ApartmentData from MRI Software.

On the Scene Photos by

28 ABODE June 2023 www.haaonline.org

HAA STAFF

www.haaonline.org June 2023 ABODE 29

HAA PAC TopGolf Fundraiser

Thursday, April 13 at TopGolf Katy

HAA’s amazing members scored a HOLE IN ONE at the Top Golf PAC Fundraiser. Thank you to everyone who helped raise money for the HAA PAC!

Thank You to our Event Sponsors and Congratulations to the Winners:

TOP Sponsors

Ameristar Screen & Glass

Matrix Construction Services

Beverage Sponsors

ATI Restoration

Impact Property Solutions

Best Team Spirit Sponsors

G.O. Plumbing Services

Valet Living

Welcome Sponsor

Crestmark Construction Services

Lunch Sponsors

BlueLine Construction & Remodel

Chadwell Supply

Hole In One Sponsor

Ideal Towing

Last Place Award

Gemstar Construction Development

Team Awards Sponsors

Ferguson Facilities Supply

Merit Roofing & Construction

SafeRent Solutions

Best Male & Female Award Sponsors

Church Pool Services

Norman Construction

TopGolf Team Winners:

1st Place – GWR Management 1

2nd Place – Dixie Carpet Installations

3rd Place – GWR Management 2

TopGolf Best Male and Female

Award Winners: Nicole Aldrich, GWR Management, and Justin Krautz, Dixie Carpet Installations

TopGolf Last Place Award Winner: Rebecca Slater, Gables Residential

TopGolf Best Team Spirit Award Winner: Q10 Property Advisors

30 ABODE June 2023 www.haaonline.org

On the Scene Photos by HAA STAFF

www.haaonline.org June 2023 ABODE 31

HAA PAC TopGolf Fundraiser

32 ABODE June 2023

On the Scene Photos by HAA STAFF

www.haaonline.org June 2023 ABODE 33

HAA PAC TopGolf Fundraiser

On the Scene Photos by HAA STAFF

34 ABODE June 2023 www.haaonline.org

Will you take this Recession?

The Fed is forcing the economy to accept the vows of a recession.

By BRUCE MCCLENNY, ApartmentData from MRI Software

The Federal Reserve is forcing the marriage of the economy with recession. Traditionally, these types of unions are finessed with a shotgun. However, the Fed’s method of coercion is repeated blasts of interest rate increases. Despite 10 blasts of interest rate hikes since March 2022, which has moved the Fed Funds Rate by 5.0 percentage points, recession has yet to show up at the altar. What has shown up are three of the four largest bank failures of all time. Silicon Valley Bank, Signature and First Republic all got caught in a digital-age run on deposits. First from depositors’ withdrawing their money seeking a higher interest rate and then from companies protecting their uninsured deposits over the FDIC’s limit of $250,000. The Fed’s determination to fight inflation have made the vows of “For Better or Worse” very one-sided.

Does Anyone Object to this Recession

The Fed’s interest rate hikes are intended to slow the economy with the focus of bringing the Core Consumer Price Index (CPI) down to 2 percent and by raising unemployment to 4.5%. In March, Core CPI, which measures

36 ABODE June 2023 www.haaonline.org

ShotgunWedding

Is the economy being held up, and forced into a bad relationship?

CONSUMERS www.haaonline.org June 2023 ABODE 37

THE JUNE MARKET REPORT

inflation by comparing prices paid for goods and services excluding food and energy, registered 5.6 percent. Unemployment in April edged down to 3.4% which matches a 50 year low. Unfortunately, these measures are, in a sense, objecting and moving contrarily to the Fed’s actions.

Even though the Fed does not include food prices in its strategy, grocery prices are certainly working against households. According to the Bureau of Labor Statistics, groceries are 8.4% higher than a year ago. Other items weighing on the finances of households are interest rates on credit cards going from 16.2% to 20.2% and interest rates on new car loans going from 5.2% to 7.0% from March 2022 to April 2023. According to Moody’s, a typical U.S. household is spending $313 more per month now than last year at this time.

I am, as I am sure others are, fatigued about the long running discussions about the coming recession. The endless repetition of commentators as to whether it will be a soft, hard or no-landing scenario gives credence to the confusing strength of consumer balance sheets and employment. Regardless of all this, renters are behaving as if a recession is already here.

Till Recession Do Us Part

The graph below shows how rent and occupancy levels moved from 2021 to the end of April 2023. During 2021, overall average monthly rent grew from $1,044 at the beginning of the year to $1,190 by the end the year. This $146 of rent growth, a 14% trend, represents the best rent growth of all time. Such historic rent growth was driven by the reopening economy that also produced an equally historic absorption of 38,000 units. 2021’s occupancy jumped 3.1 percentage points from 88.4% at the beginning of the year to 91.5% by year’s end due to the soaring absorption.

Occupancy and Price

2022 rent growth settled from the torrid pace of 2021 but still at a rate significantly higher than the long-term average growth of 4.0%. Rents peaked in September 2022 at $1,263 and then fell back to $1,252 by the end the year, delivering a 5.2% rate of growth in 2022. The September peak in rent was the last of 21 straight months of sequential rent growth. The fade in rent that began in October 2022 is connected to a wobbly slide in occupancy that began back in December of 2021. At that time, overall occupancy registered 91.6% and by April of 2023, occupancy had settled to 89.9%. This slide in occupancy was driven by a strong delivery of new product during 2022 and the first four months of 2023 equating to 21,179 units, while absorption could only muster 6,223 units during the same time frame. This weak demand kept rent flat from the September peak.

The Market “Guest List’ by Class

The overall statistics of rent, occupancy and absorption are an aggregation of these statistics for each class of property. Classes are determined by a bell curve distribution of market rates or price. The table at right breaks out how each class differs in performance and contributes to the overall market statistics as of April 30, 2023. In addition, Class A has been divided into two groups. One group are those Class A properties that began leasing in 2022 and 2023. Since properties in this group are in a wide range of lease-up, occupancy is understandably low at 37.1%. Due to the ever-increasing supply of this group over the time frames analyzed, rent trends cannot be properly calculated. Filtering out the lease-up properties of 2022 and 2023 from Class A creates the Class A Stable group. The most confusing information on the Classification Analysis is within the 12-Month Absorption column. The overall net absorption number is 3,067 units. The last time a 12-month absorption number was lower

38 ABODE June 2023 www.haaonline.org Dec-20 Jan-21 Feb-21 Mar-21 Apr-21 May-21 Jun-21 Jul-21 Aug-21 Sep-21 Oct-21 Nov-21 Dec-21 Jan-22 Feb-22 Mar-22 Apr-22 May-22 Jun-22 Jul-22 Aug-22 Sep-22 Oct-22 Nov-22 Dec-22 Jan-23 Feb-23 Mar-23 Apr-23 94.0% 93.0% 92.0% 91.0% 90.0% 89.0% 88.0% $1,044 $1,050 $1,096 $1,141 $1,176 $1,204 $1,223 $1,252 $1,263 $1,255 $1,300 $1,250 $1,200 $1,150 $1,100 $1,050 $1,000 $950 $900 $850 88.4% 88.8% 89.3% 89.9% 90.6% 91.4% 91.6% 91.2% 91.0% 90.4% 90.1% 89.8% 89.9%

$1,252 $1,259 $1,265

Class Supply Occupancy $/sq ft $/mo 12 month 3 month 12 month 3 month Class A 2022 & 2023 21,179 37.1% $1.85 $1,776 – – 6,730 1,864 Class A Stable 173,139 91.8% $1.87 $1,762 1.6% 3.3% 4,801 365 Class B 263,063 92.0% $1.42 $1,261 1.1% 4.0% -3,215 313 Class C 201,658 90.8% $1.14 $968 3.2% 2.1% -4,543 14 Class D 68,697 89.7% $0.89 $757 1.8% -2.0% -706 -94 Overall 727,736 89.9% $1.42 $1,265 1.8% 3.3% 3,067 2,462

As of April 30, 2023 Effective Rent Absorption (units)

Greater Houston Class Analysis

CONSUMERS www.haaonline.org June 2023 ABODE 39

I am, as I am sure others are, fatigued about the long running discussions about the coming recession. The endless repetition of commentators as to whether it will be a soft, hard or no-landing scenario gives credence to the confusing strength of consumer balance sheets and employment. Regardless of all this, renters are behaving as if a recession is

was in 2009, when 1,653 units were absorbed during the Great Recession, when the Houston Metro suffered 110,500 job losses. The current very weak 12-month absorption performance comes at a time when job growth is registering the third best 12-month net job change since the Bureau of Labor Statistics began recording this information in 1991. Oddly enough, the three best job growth performances all happened in the last three years following the Pandemic’s economic shutdown. The direct correlation between jobs and absorption is broken. Gone are the days when a good job growth performance would equate to strong absorption numbers or vice versa.

Taking a closer look at the 12-month Absorption by Class reveals a curious exodus of renters from Classes B, C and D. When combined, the net move-outs from these classes totals 8,464 units. Some of the moveouts can be traced to the evictions process that was put on hold in 2020 and subsequently expired in August of 2021. Anecdotally, renters are seeking more affordable accommodations by doubling-up or moving in with relatives, which is behavior reminiscent of past recessions. In addition, renters are moving into the shadow market of single-family rentals owned by Mom-and-Pop operators, as well as by corporate entities that substantially increased their supply of such product in 2021. Class A is capturing all positive absorption and is holding up some correlation to job growth. Yet, a good portion of the absorption strength is driven by would be single family prospects that are priced out of buying and choosing to rent until mortgage rates and stubbornly high prices subside. Class A’s absorption is 11,531 units and is the sum of the two Class A components on the Class Analysis table.

The overall 12-month rent trend is lackluster at 1.8% but looks rather sterling when compared to other Texas markets where Austin’s rent growth is -2.7%, DFW’s is 0.3% and San Antonio’s is -0.3 percent. All markets are laboring with strong new construction deliveries and move-outs in Classes B, C and D. The annualized 3-month rent trend is a bright spot at 3.3% but could prove to be ephemeral or short-lived as the renter’s wallet is picked by persistent inflation and student loan payments resuming in August.

Looking Ahead

Uncertainty remains overwhelmingly plentiful. Will inflation ease and allow the Fed to pause rate hikes? Will the rate hikes already done cause more economic casualites and move us closer to a broader-based recession? How much economic hardship will there be when forebearance ends on student loans? Will political brinksmanship finally push the Government into default? I could go on, but the point is that economic uncertainty detracts from the vitality of our industry.

One of the biggest surprises of 2023 is how apartment developers substantially raised the number of units to be developed in the face of soaring financing costs. As of the end of April, around 6,400 units have been delivered. There are currently 23,000 units under construction of which approximately 16,000 will deliver this year. This assumption would bring the total number of units delivered in 2023 to around 22,000 units.

Given the economic uncertainty and the continual strain on the renter’s wallet, coupled with a very strong construction pipeline, 2023 will be a challenging year for growing occupancy and rent. Occupancy should end the year slightly lower at 89.5%. Rent could possibly end the year in the 2.0% to 2.5% range. However, flat should still be considered a win.

Bruce McClenny is Senior Director of ApartmentData.com From MRI Software. For more details, call 281-759-2200, email bruce@apartmentdata.com, see Marketline on Page 75 and subscribe to his YouTube channel at: https://www.youtube.com/channel/UCaPmY9AevdjCpqe4UeQU 7xw/featured

40 ABODE June 2023 www.haaonline.org

HoustonApartmentFoundation Course2023Education Catalog www.haaonline.org Get educated! The 2023 HAF Course Catalog is online now! Find all the professional development you are looking for. Download today. Scan the QR Code for a detailed list of upcoming educational offerings and visit www.haaonline.org/events to register.

Your Vote Matters

The HAA PAC participates in local and state political campaigns, helping candidates who support the apartment industry and its supplier businesses. Strengthen your voice by joining us.

You can participate in the HAA PAC on several levels:

Steering Committee • $1,500

• Receives all of the benefits of trustee, and

• One vote for every $500 contributed.

• Sets the agenda for the HAA PAC.

• Acts as the PAC Board of Directors.

• Invitations to Steering Committee Meetings held three to four times per year.

Trustees • $500

• Benefits listed below, and

• An individual vote on HAA PAC decisions.

• Invitations to special events and meetings with legislators, including elected officials receptions.

Century Club Members • $125

• Benefits listed below, and

• Group voting rights, though their Century Club Representative.

Non-Voting Century Club Members • $100

• Attend all regular HAA PAC functions at member pricing, but has no voting privileges.

• Members are recognized in the October issue of ABODE magazine.

dollars to keep that voice strong. Past Advocacy Wins

The Houston Apartment Association Political

•Savedyou$5.5millioninmandatorycarbon monoxidealarmretrofittingrequirements

Action Committee is our industry’s voice in

government. We need your participation and

•Blockedannualsignedfireself-inspection requirements

•Protectedpropertiesfrombeingforcedinto participatinginSection8program

•EnsurenewCityofHoustoncodecontained revisionssoughtbyHAAmembersElections Affecting Multifamily

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••CongressionalSeats TexasLegislatureRaces

To join the HAA PAC, make your non-corporate check payable to HAA PAC. By law, we cannot accept corporate checks. Funds are not tax-deductible.

I am a: _____Owner Member _____Supplier Member and YES! I want to invest in the HAA PAC as (check one):

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_______ Sign me up for FAST TRACK! For an additional $90, guarantee your place at the table and save time too. You will automatically be pre-registered and paid for a minimum of four luncheons, with your badge waiting for you at the door. You must also join the PAC at a minimum of $100 to participate in Fast Track. The $90 Fast Track payment can be made with corporate funds.

Paid for by HAA PAC, Casey Watts Morgan, Treasurer. For more on HAA PAC, visit www.haaonline.org/haapac

Return form to mpolston@haaonline.org, fax to 281-582-1520 or mail your payment to: HAA PAC, 4810 Westway Park Blvd., Houston, Texas 77041. For more information contact HAA PAC at 713-595--0302 or mpolston@haaonline.org.

Unsurprisingly, unscooped pet waste is one of the biggest challenges operators face in terms of being a pet-inclusive community. … However, while this is certainly an industrywide problem, it also presents a revenue opportunity.

44 ABODE June 2023 www.haaonline.org

Unscooped pet waste: Is it a problem, a revenue opportunity or both?

By DEBORAH DEROUEN, CAS, PooPrints

Waste Not, Want Not $

Pet ownership in apartment communities has increased significantly over the past few years and is showing no signs of slowing down. A 2020 Zillow survey indicates that 42% of multifamily residents own a pet, and according to a recent Pet Policies and Amenities Survey of more than 22,000 apartment and student-housing renters, 26% of pet-owning residents obtained their pet at some point during the pandemic. When considering student-housing renters only, that number jumps to a notable 39%.

Additionally, the most common apartment-dweller demographics consist of Millennials and Generation Z’ers, both of which are more likely to own a pet than the generations before them. In fact, Millennials account for a third of all pet owners in the United States and Gen Z, despite their young ages, represent 14% of U.S. pet owners. With those statistics in mind, operators have been seizing the opportunity to increase the pool of potential renters.

While there are a few apartment operators who would rather not allow pets onsite, most are modernizing their pet policies and removing pet restrictions altogether because of that broader resident pool and the monetary benefits that come with doing so. Although pet fees may vary from one community to the next, the average pet deposit is between $200 and $500, and the average monthly pet rent ranges from $25 to $100. It’s those channels of revenue that are becoming the catalyst for the change, but as with any progress, it doesn't come without its challenges.

www.haaonline.org June 2023 ABODE 45

Images © nicoletaionescu | iStock by Getty Images

Unsurprisingly, unscooped pet waste is one of the biggest challenges operators face in terms of being a pet-inclusive community.

In an effort to address this challenge, many operators take reactive approaches, such opting for services to clean up their communities, and unexpectedly find they have invested money in a service that only encourages the problem. It’s expensive and it trains residents into thinking it’s okay for them to leave their pets' waste behind because somebody else will come pick it up at a later time.

The people tasked with the clean up are usually maintenance teams, and the time they spend scooping up pet waste is costing operators precious resources. Furthermore, unscooped pet waste causes operators to lose money by presenting an unkept property that fails to attract new residents and deters existing ones from renewing.

In an attempt to truly eliminate the amount of unscooped pet waste found onsite, as well as produce an optimal NOI, operators are looking to implement more proactive solutions.

A Revenue Opportunity?

Apartment operators strive to deliver living experiences that are nothing shy of delightful for their residents, and while plenty of communities do just that and seem to have it all, every community still has areas for growth. Although improvement areas differ from one community to the next, there are challenges that everybody in multifamily deems to be an all-too-common inconvenience.

All pet-friendly communities deal with the challenge of unscooped pet waste. This challenge creates additional costs for operators who have to pay someone else to clean it up

or task maintenance teams with doing the job, causing valuable time and resources to be wasted. Unscooped pet waste also substantially decreases resident satisfaction. However, while this is certainly an industry-wide problem, it also presents a revenue opportunity.

An increasing number of communities are adjusting or removing their pet restrictions in an effort to attract a broader audience of potential residents. That’s great news for both pet owners and operators, but it also presents some questions – notably ‘how do operators track all of the pets in a community’ and ‘how do they effectively enforce pet policies while simultaneously growing their revenue?’

Some operators have turned to biotechnology with DNA testing to answer both of those questions while delivering benefits to residents, onsite teams and operators. Operators are leveraging DNA testing to manage pet waste and hold pet owners accountable and also help identify and reunite a lost pet with its owner. This not only increases resident satisfaction and creates cleaner communities, but it also fosters responsible pet ownership.

Additionally, DNA testing presents possible ways operators can increase revenue. When it comes to turning the pet waste problem into a monetary gain, there are a couple avenues to explore.

An obvious way to position the unscooped pet waste challenge as a potential revenue channel is by implementing the appropriate pet policies regarding picking up after pets and imposing penalties when residents fail to do so. Not only can operators charge a monthly pet fee because they can confidently allow pets onsite, but they can assess a fine if residents neglect to scoop their pets poop.

Operators are also seeing an uptick in revenue from bringing on a biotechnology service provider due to the overall improvement of a community’s condition. From word of mouth to online reviews, the aesthetics of a community will be conveyed to others. If a community is unkept and littered with pet waste, prospects will not want to tour the community and current residents will likely opt out of renewing their lease agreement when the time comes. The best way to guarantee revenue as an operator is by meeting residents expectations and ensuring a satisfactory experience that leads to the optimal occupancy rates that provide consistent cash flow to a community.

The Bottom Line

Sometimes it's all about perception. Operators must ask themselves, ‘is this just a problem or is this a chance to develop ancillary revenue opportunities?’ Looking at the challenge through a new lens and proactively addressing the unscooped pet waste problem will undoubtedly increase resident satisfaction and direct additional revenue streams back to the bottom line.

Deborah DeRouen, CAS, is Director of National Marketing and Strategic Partnerships for PooPrints and is the 2023 treasurer for the Houston Apartment Association’s Product Service Council. DeRouen can be reached at 903-277-5451 or Deb.DeRouen@biopetlabs.com.

46 ABODE June 2023 www.haaonline.org

An increasing number of communities are adjusting or removing their pet restrictions in an effort to attract a broader audience of potential residents. That’s great news for both pet owners and operators, but it also presents some questions – notably ‘how do operators track all of the pets in a community’ and ‘how do they effectively enforce pet policies while simultaneously growing their revenue?’

This article aims to explore the concepts of deregulation and provide a synopsis of how the Texas electricity market works.

48 ABODE June 2023 www.haaonline.org

Choices, Choices, Choices

Deregulation aims to offer lower electricity rates to end-users by promoting competition and deregulating the market and the generation/supply of electricity.

By WILL MCGINNIS, CAS, Infinity Power Partners

In early 2022, the city council of Lubbock voted in favor of electric deregulation with the expectation of connecting Lubbock's customers to the Electric Reliability Council of Texas (ERCOT) grid by 2023. This raises questions about what deregulation means for electricity customers in the area and how it works in Texas. It is important for residents and business owners to understand the different options that surround utility costs in different regions.

In Texas, competition was introduced in the electricity supply market through Senate Bill 7 in 1999. This resulted in the emergence of Retail Electric Providers (REPs) who offer different rates, products and terms to consumers in the markets they operate. Examples of REPs in Texas include Reliant Energy, Green Mountain, TXU Energy, Summer Energy, Pulse Power, Constellation and many others. When you select an REP, negotiate a term, product and rate, they purchase the electricity and resell it to your place of business or residence, while the regulated utility is only responsible for the transmission and distribution of electricity via the “poles and wires” they own and maintain on behalf of consumers. It is worth noting that there are additional regulated “pass through” charges plus taxes customers are subject to paying, which are passed along at no markup and billed by the applicable REP. This article aims to explore these concepts further and provide a synopsis of how the Texas electricity market works.

Following winter storm Uri, many Texans became aware of ERCOT and its role in the deregulated markets. ERCOT manages the flow of electricity from the Texas interconnection and manages 95% of the state's electric load. Its purpose is to

www.haaonline.org June 2023 ABODE 49

Images © sh22 | iStock by Getty Images

stabilize electricity across its territories in Texas, and it is overseen by the Public Utility Commission of Texas (PUCT), which enforces regulations regarding electricity generation, transmission, distribution and supply. The PUC also provides dispute resolution services for consumers, suppliers (REPs), and utilities, such as ONCOR, CenterPoint, AEP and TexasNew Mexico Power (TNMP), who own the “poles and wires” and are responsible for the distribution of electricity through the infrastructure they own and maintain. Additionally, Texas Electric Cooperatives operate in certain regulated regions where a COOP is responsible to reselling electricity, along with the transmission and distribution to a customers business or home.

Deregulation aims to offer lower electricity rates to end-users by promoting competition and deregulating the market and the generation/reselling of electricity. This has resulted in lower rates in Texas compared to the national average for many years and increased customer satisfaction. Customers who are dissatisfied with their current rates or customer service from their REP can easily switch to another without complications, but we suggest double checking you’re not under contract before making any changes to avoid a potential early termination fee (ETF) by cancelling early. This system ensures that larger companies do not become monopolies that can increase rates without oversight, which is a major goal of deregulation.

How does this factor into my multifamily asset and our utility costs?

Let's dive into the main topic of this article, which is deregulated markets in Texas and why you should care. If you happen to live in a deregulated market in Texas, such as Dallas, Houston, Corpus, Midland/Odessa, and soon Lubbock, you have the opportunity to choose from a variety of Retail Electric Providers (REPs) who compete for your business and can offer the best electricity rates. REPs have

been operating in Texas for over 20 years and have continued to introduce new products and improve existing ones to satisfy their customers while attracting new ones. For multifamily property owners and operators, one of the most appealing offerings is a Continuous Service Agreement (CSA). This product allows them to manage the vacant electricity at a property whenever a resident moves in or out of a unit, reducing the time and effort spent on reconnection. The CSA also ensures consistent pricing and provides better monitoring of each unit on the property. In addition to the CSA, many REPs also offer a marketing program that can be a great source of ancillary income for property owners. As residents enroll with the preferred provider, the REP pays the owner a “door fee” which typically averages $65 to$75 per enrollment, sometimes higher, and paid on a quarterly basis. This is particularly advantageous for new developments and lease-ups, which can generate significant additional ancillary income.

Even if you're not managing a multifamily asset, you can still benefit from various programs and products. It's crucial to be proactive in managing your energy costs. You should keep in mind that you can always secure fixed electricity rates for future starts.

Another objective of deregulation is to allow you to manage your energy account and electricity expenses based on your desired level of risk. If you want to avoid the risk of fluctuating or changing energy rates such as an index plan, you may prefer a Fixed Product or Fixed Energy Rate. However, electricity rates vary depending on various factors, including your location, weather, load/demand/usage, and start date.

Therefore, when requesting rates from REPs, it's crucial to consider these factors, as REP will set different parameters on your offerings. You can compare the offers to determine what components are fixed, or passed-through, and then determine the best option for your business. By proactively monitoring the market or

seeking guidance from a broker/consultant, you can strategize and create a procurement and management game plan, determine the best time to review pricing, and gauge your risk tolerance, along with other important items that can significantly impact your future energy spend.

With over 60 REPs across the state of Texas and more areas looking at deregulating the utility options, it is always a good to take a pro-active approach and avoid getting caught in a bad situation when it comes time to procuring your next energy contracts. This will provide your team and assets the best pricing and products available on the market at any given time. If your team has questions regarding your area, and if it is regulated or deregulated, there are many options online to help and you can also call the supplier/utility on your invoice. Broker/consultants can be an asset as they work with the suppliers and utilities on your behalf and have integral knowledge and market expertise about each territory’s pricing and products.

For more than 20 years, Texas has had deregulated electricity markets and their impact on your portfolio can be significant. Knowing which areas are deregulated can help your team with planning and development, as well as ongoing asset management.

Will McGinnis, CAS, is the vice president of business development for Infinity Power Partners, an energy management and consulting firm based in Houston. Infinity Power Partners work with electricity and natural gas customers nationally. They also provide procurement management solutions, risk management services and market insight throughout the development of client-specific strategies. McGinnis can be reached at 713-559-0559 or via will@infinitypowerpartners.com.

50 ABODE June 2023 www.haaonline.org

For multifamily property owners and operators, one of the most appealing offerings is a Continuous Service Agreement (CSA). This product allows them to manage an electricity account that can be adjusted as tenants move in and out, reducing the time and effort spent on reconnection.

Legislative, continued from Page 9

SB 2147 had passed the Senate and was waiting to be heard in the House Land and Resource Management Committee.

NAA Continues to work on Biden Plan for Renters Bill of Rights

The National Apartment Association (NAA) has been working diligently in its response to the White House’s Blueprint for a Renters Bill of Rights by asserting industry perspective. Here are a few updates on our recent activities:

• Resident Screening: NAA issued a call to action for screening stories that will be reviewed and compiled as a supplement to NAA’s formal comment to the CFPB and FTC’s request for information (RFI).

• NSPIRE (National Standards for the Physical Inspection of Real Estate): NAA co-signed a coalition submission to HUD's request for comments on the NSPIRE scoring and methodology. The letter expressed our appreciation with the overall changes but made clear the industry’s concerns relating to how certain policy decisions will impact our members. NAA continues to engage with HUD officials to keep our members informed of potential operational changes.

• Multifamily Tenant Protections: The Federal Housing Finance Agency (FHFA) is expected to issue a Request for Input (RFI) on multifamily tenant protections in late May with a 45-day window for comments. On April 21, NAA members and staff met with FHFA officials to provide industry perspective on tenant protections being considered. When the comment period opens, NAA will need the support of its membership to communicate the rental industry’s operational needs to the FHFA.

• Potential Changes to Section 504 Rules: On April 25, HUD published an Advanced Notice of Proposed Rulemaking seeking public comment to influence whether the agency changes Section 504 requirements related to accessibility and prohibiting disability-related discrimination in assisted rental housing. HUD is interested in what it should consider relating to HUD funding recipients' obligations, including how to account for advances in accessible design, the use of websites and assistive technology, and whether to adopt an updated federal accessibility standard for compliance purposes.

To be clear, these principles and actions are nonbinding and are not federal policy. This is not an executive order from President Biden. There are no new requirements or policy changes that have been made. At this point, several federal agencies have only been tasked with exploring new housing policies and gathering information to help develop those policies. In addition, the administration calls on state and local governments to strengthen renter protections to align with these principles.

www.haaonline.org June 2023 ABODE 51

52 ABODE June 2023 www.haaonline.org

Image courtesy of Urban Value Corner Store

What are Texas Renters Looking For Today?

Marketing to prospective apartment renters is easy if you have the right amenities.

By STEVE MCKINLEY, Urban Value Corner Store

Texas is a great place to rent an apartment. The state has affordable housing compared to other states, a strong job market and economic growth, diverse and vibrant communities, and excellent amenities and outdoor activities. If residents are looking for a new place to call home, Texas is definitely worth considering.

Why Texas is a Great Place to Rent an Apartment

There are several reasons why Texas is a great place to rent an apartment. First, the cost of living in Texas is relatively low compared to other states, making it an affordable option for renters. Second, the state has a strong job market and economic growth, with major industries like energy, healthcare, and technology driving the economy. Third, Texas is also known for its diverse and vibrant communities, with large cities like Houston and Dallas attracting people from all over the world. Finally, the state has excellent amenities and outdoor activities, from world-class museums to beautiful parks and hiking trails.

Marketing Your Amenities

Marketing to prospective apartment renters is easy if you have the right amenities. Here are 15 top amenities they are looking for:

1. Fitness Centers – Texas is known for its health-conscious residents, and many apartment complexes offer state-of-the-art fitness centers equipped with treadmills, weight machines and even group fitness classes.

www.haaonline.org June 2023 ABODE 53

2. Swimming Pools

With hot Texas summers, having a swimming pool is a musthave amenity for many apartment renters. From infinity pools to resort-style pools with cabanas, you can find the perfect spot to cool off and relax.

3. Pet-Friendly – Texans love their pets, and many apartments offer pet-friendly amenities such as dog parks, grooming stations and even pet daycare.

4. Convenience Stores – having a corner store in the apartment community can be a real blessing. The ease of walkability within steps of your front door to grab a quick beverage or food item is a cool perk to have. A community store can offer apartment residents a robust amenity, combining service, value, and convenience, and, by doing so, enhance the experience of all the other amenities in a building.

5. Balcony – Take in the beautiful Texas sunsets from the comfort of your own balcony. Many apartments offer balconies with stunning city views or even private yards.

6. Hardwood Floors – Not only are hardwood floors beautiful, but they're also easy to clean and maintain. Many Texas apartments feature beautiful hardwood or vinyl hardwood floors throughout the unit.

7. Walk-In Closet – Who doesn't love a spacious walk-in closet? Many Texas apartments offer ample closet space to keep a wardrobe organized and easily accessible.

8. On-Site Maintenance – If anything goes wrong in the apartment, having on-site maintenance can save time and hassle. Many Texas apartments offer 24-hour maintenance services for convenience. Make sure you promote yours.

9. Security System – Keeping family and belongings safe is a top priority and many Texas apartments offer security systems and gated entrances for added peace of mind.

10. Clubhouse – Whether hosting a party or looking for a quiet workplace,

many Texas apartments offer clubhouse amenities such as lounges, meeting rooms and business centers.

11. High-Speed Internet – Stay connected with lightning-fast internet speeds. Many Texas apartments offer high-speed internet options to keep you connected and productive.

12. Stainless Steel Appliances – Add a touch of elegance to the kitchen with modern stainless steel appliances. Many Texas apartments come equipped with energyefficient refrigerators, stoves, and microwaves.

13. Granite Countertops – Nothing says luxury quite like beautiful granite countertops. Many Texas apartments feature gorgeous granite countertops in the kitchen and bathroom.

14. Playground – If renters have children, having a playground on-site can be a lifesaver. Many Texas apartments offer playground amenities for children to enjoy.

15. Bike Storage – With Texas' sunny weather and scenic bike paths, having secure bike storage is a highly sought-after amenity for many renters.

Final Thoughts

Apartment hunting in Texas can be an exciting and rewarding experience, but it can also be overwhelming for prospects. Whether they are looking for a vibrant city or a peaceful suburban community, Texas has something to offer renters of all types, and make sure you show them the on site amenities they are looking for.

Steve McKinley is the CEO and founder of Urban Value Store. An outstanding community store should always be one of your top apartment amenities. Contact McKinley at info@urbanvaluestore.com, 832-449-0012 or visit www.urbanvaluestore.com.

–

54 ABODE June 2023 www.haaonline.org

Law, continued from Page 12 term is defined by the CARES Act, you may consider evicting solely based on the fraudulent activity in order to avoid the 30-day notice to vacate requirement. This will allow you to file the eviction in the Justice Court much faster.

You should anticipate approximately three to five weeks for the eviction process to go through the Justice of the Peace Court and an additional four to eight weeks if the case is appealed to the County Court. This timetable could be longer or shorter depending on a number of factors including whether the resident moves out before going to court, the court docket, the time of year, and whether the resident employs any number of stall tactics to delay trial.

You can’t control many of the causes that result in delays in the eviction process. So your best strategy is to move as quickly as possible with respect to what you do control. The notice to vacate should go out quickly and the eviction petition should be filed as soon as possible after the resident has failed to timely vacate in accordance with your notice.

Be consistent on the resident’s name during the eviction process.

If you proceed with an eviction against a person that engaged in an imposter scam when signing the lease, the name of the person you are evicting will be different than the name on the lease. This raises questions. Who do you name in the notice to vacate? Who do you file the eviction against?

There should be consistency between the lease, the notice to vacate, the eviction petition, the eviction judgment and the writ of possession. Whether the name on the lease is misspelled (an innocent mistake) or wrong because of an imposter scam, you don’t want to raise issues either at the eviction trial, in the judgment or when the writ is served with respect to the identity of who you are evicting.

In order to avoid problems, it is beneficial to name the person on the lease who is “also known as” the name you discover as being the correct name. You would then be able to use that person’s false and true identity throughout the eviction process.

Fraudulent leasing activity appears to be a fact of life in our current business environment. Hopefully these tips are helpful in minimizing potential damages. www.haaonline.org June 2023 ABODE 55 Want more Howard? He’s online! Go to http://issuu.com/haa_abode for past columns or watch his Legal Lowdown on YouTube at https://www.youtube.com/user/HAATV.

Tips to Grow Your Executive Presence: Your

ACES Manager Appreciation Luncheon

Invite your managers and join your peers for this informative program with a delicious lunch!

• Gravitas – Learn how to carry and present yourself like the leader you are! Take special note of the habits that can undermine your efforts

• Communication – Yes, speaking or not speaking; strong or weak voices; words do make a difference. Use the power of the pause

• Perception – This is all about credibility and trust. If you have it you can influence others. Learn what you should or shouldn’t do to elevate this.

ACES Luncheon

June 16 11:30 a.m. to 1 p.m. Program Fee: $55 Maggiano’s Little Italy 2019 Post Oak Blvd, Houston, TX 77056 Register at www.haaonline.org/events. A notice of cancellation must be received in writing two business days prior. Receive 1 CEC Hour Thanks to Our Program Sponsors: Texas Apartment Pool Services and Best Plumbing

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NEXT Bingo & Brews

Sponsored by Cotton Commercial, Earthworks and Greenlogic Lighting & Electric

Thursday, April 6 at Buffalo Bayou Brewing 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 HAA’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.

58 ABODE June 2023 www.haaonline.org 1 3

On the Scene with the HAA NEXT

2 3 2 1

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Supplier Education Program

Friday, April 14 at the HAF Dinerstein Reed Prokop Education Center

The Product Service Council sponsored a supplier education program featuring active multifamily speaker, Julie Hartman of B2G Victory. Julie gave the group actionable tools and techniques to practice with the result of delivering great presentations. She talked about ways to keep your audience engaged both in person and virtually.

The Product Service Council is a group of active supplier partners who want to help all suppliers get the most value from their membership. If you have an industry question, feel free to reach out to this group.

PRODUCT SERVICE COUNCIL 60 ABODE June 2023 www.haaonline.org

On the Scene with the HAA

www.haaonline.org June 2023 ABODE 61

OWNERS

Allied Property Management

Nicole Zaitoon

1900 Country Club Drive #120

Mansfield, TX 76063

(817) 200-7606

Townhomes on Peacock Hill

Anne Holdings Series LLC

Emily Moon

8665 New Trails Drive #170 Spring, TX 77381

(832) 346-1104

3724 Branard

Archline Capital LLC

Daniel Marklin

1305 W 11th St #4065

Houston, TX 77008

(314) 477-2447

Archline Capital LLCProperties

Campus Advantage

Jasmine Rivera

110 Wild Basin Road #365

Austin, TX 78746

(713) 332-9705

Gateway on Cullen

CDL Real Estate LLC

Carlos Mesquita

5910 Hawkes Bay

Katy, TX 77494

(832) 800-4618

Referred by Mike Kaplan

Garden Oaks TX LLC

Lydia Villarreal

142 Oyster Creek Drive

Lake Jackson, TX 77566

(979) 217-2727

Garden Oaks Apartments

Guardian Property Management

Chris Matson

8344 Spring Cypress Road #B

Spring, TX 77379

(832) 791-2291

Foster Place

Herrera Family Holdings

Hector Herrera

6636 Park Lane

Houston, TX 77023

(832) 766-1666

Herrera Family Holdings Apartments

OHT Partners LLC

Tracie Yoder

(832) 226-2490

Sisters Property Management LLC

Carrie Green

13121 Louetta Road #2051

Cypress, TX 77429

(281) 384-6784

Referred by Joe Slaughter, CAS

Sorita Development

Chris Clark

13114 N Decker Drive

Magnolia, TX 77355

(713) 598-4207

TBOBA LLC

Nathalie Marroguin

2702 W Bay Area Blvd

Webster, TX 77598

(281) 616-6002

The Brook on Bay Area

SUPPLIERS

Alamo 1 Sean McBride

2900 Nacogdoches Road

San Antonio, TX 78217

(832) 724-1756

Fire/Water Damage

Restoration, Demolition Services, Asbestos Abatement & Removal, Disaster Recovery/Relief, Mold Remediation

Alpha Patrol Officer

Aziz Hedayatullah

7051 SW Frwy #4

Houston, TX 77074

(832) 270-6653

Security Control Equipment/Systems, Security Guard/Patrol Service

Alpha Restoration Services Rudy Lopez

221 W Airtex Blvd #245

Houston, TX 77090

(281) 416-4941

General Contractors, Remodeling & RepairBuilding Contractors

Asurety Dryer Vent & Fireplace Inspections

Dawn Tapley

13475 Atlantic Blvd Unit 8

#M516

Jacksonville, FL 32225

(866) 800-4282

Dryer Vent Cleaning, Chimney Cleaning, Fireplaces

B&G Construction

LiLianeda Medina

10878 Westheimer Road

#255

Houston, TX 77042

(832) 770-4953

General Contractors, Plumbing Drain/Sewer

Cleaning, Remodeling & Repair-Building Contractors, Swimming Pool Repair & Resurfacing

Capital Security Solutions

Art Campos

1201 Fannin St #262

Houston, TX 77002

(713) 380-6297

Security Guard/Patrol Service,

Security Consulting Service

Referred by David Lindley, CAS

CEP Construction Services LLC

Narci Mejia

11569 S Hwy 6 #139

Sugar Land, TX 77498

(214) 531-7216

General Contractors, Building Contractors, Remodeling & Repair-Building Contractors

Code Red Security Systems PLLC

Ubaldo Balderas

7615 Hillsdale Park Court

Cypress, TX 77433

(832) 807-3954

Gates & Gate-Operating Devices, Security Control

Equipment/Systems

Referred by Richard Wall, CAM, CAPS

CWC Renovation Inc

Elmer Lopez

PO Box 842160

Houston, TX 77284

(713) 939-4906

General Contractors, Remodeling & RepairBuilding Contractors

Referred by Kawanna Kosadnar

Double Oak Erosion

Brittany Neel

PO Box 979

Waller, TX 77484

(713) 315-1131

Storm Water Permit, Storm Water Services, Plumbing Drain/Sewer Cleaning, Sewer Contractors

E.D. Davis Contractors Inc

Darius Davis

1942 Skip Rock St Friendswood, TX 77546-4984

(281) 831-4249

General Contractors, Painting Contractors

Hell N High Water Construction

Kelly Isbell

1322 Chestnut Ridge

Humble, TX 77339

(210) 885-7492

Roofing Consultants, Roofing Contractors

Huatan Landscaping LLC

Travis Rogers

800 Town and Country Blvd

#500

Houston, TX 77024

(832) 762-5668

Landscape Contractors, Landscape Designers

IKO Sales Inc

Jonathan Alexander

6 Denny Rd #200

Wilmington, Delaware 19809

(302) 764-3100

Building Materials, Roofing Materials

Iris MF LLC

Hunter Marfuggi

3733 Westheimer Road

Houston, TX 77027

(325) 378-6633

Counter Tops, Building Materials, Building Contractors

JLD Enterprises LLC

Dalton Gaertner

4722 County Road 459D

Freeport, TX 77541

(281) 459-1400

Fences, Gates & GateOperating Devices

JLP Painting

Lester Pawelczyk

PO Box 441134

Houston, TX 77244

(281) 578-1124

Painting Contractors, Window-Replacement & Repair

LGC Builders LLC

Vilma Salgado

415 E Crosstimbers St #1

Houston, TX 77022

(832) 929-0108

A/C Contractors, BricksCommon & Face, Building Contractors, Cabinets, Carpenters, Cleaners, Concrete Contractors, Concrete Repair, Demolition Services, Drywall Contractors, Electric Contractors, Framing Contractors, Landscape Contractors, Lawn Maintenance, Masonry Contractor, Paving Contractors, Plumbing Contractors, Remodeling & Repair-Building Contractors, Roofing Contractors, Siding Contractors, Trees, Foundation Contractors, Foundation Repair

Merk Electric Co

Justin Merkey 7335 Tall Pines Drive

Houston, TX 77088

(832) 798-6353

Electric Contractors, LightingOutdoor, Electric Vehiclecharging docks

Power Services of Texas

Curtis Novinger

36310 Hempstead Road

Hockley, TX 77447

(512) 247-1633

Plumbing Contractors, Plumbing Drain/Sewer Cleaning

Puroclean of West Houston

Augustine Isidienu 3311 Richmond Ave Houston, TX 77098 (832) 723-0284

Cleaning SpecialistsBio-Hazardous Material, Fire/Water Damage Restoration, Disaster Recovery/Relief, Demolition Services

Securitas Security Services Inc

Justin Brinkman

19350 State Hwy 249 #300 Houston, TX 77070 (972) 322-4174

Security Control Equipment/Systems, Security Guard/Patrol Service

Signal of Houston

Brandon Foss 12440 Emily Ct #701 Sugar Land, TX 77479 (832) 312-1521

Security Guard/Patrol Service

Texas Pressure Washing Austin Joyner 20661 Old Sorters Road Porter, TX 77365 (832) 781-1746

Pressure WashingEquipment & Service, Window Cleaning, Parking Area Maintenance & Marking

The Apartments Concierge Lacie Lugo 5757 Woodway #276 Houston, TX 77057 (713) 561-3038

Locators, AppliancesLeasing

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

Mat Introducing HAA’s NEW MEMBERS

Welcome

62 ABODE June 2023 www.haaonline.org

Did you know HAA has a YouTube Channel? Just Click on HAATV The Houston Apartment Association’s YouTube Channel features a wealth of information on legislation, education, HAA history and much more! Catch up with HAA General Counsel Howard Bookstaff for The Legal Lowdown featuring guidance on hot legal topics affecting the multifamily industry. See lots of educational videos and seminars recorded to watch at your convenience. Check out our videos of members networking at past events and historic moments. Subscribe to our YouTube channel HAATV to get notices of new content. Subscribe today at https://www.youtube.com/HAATV

BRANCH OUT! RECRUIT FOR

Honorary Life Members

HAA! Join the Go-Getters to help grow your association, network and your designer handbag collection. THE GO-GETTERS ARE THE BACKBONE 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 Membership Department at members@haaonline.org. The Go-Getters HAA’s MEMBERSHIP RECRUITERS 64 ABODE June 2023 www.haaonline.org

Claude Arnold Kenn Brown Tina Cavaco Terri Clifton 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 Check the Go-Getters Corner for more information. June 15 September 21 December 14 Visit www.haaonline.org/gogetters for more information. Monica Gracia DayRise Residential Matthew Nunn Capital Construction 2023 Chairs: Join our Quarterly Meetings! Be the top recruiter for the year and you could win a genuine NEW Louis Vuitton GraceFull PM Tote! Every new member you recruit this year earns you a chance to be entered into a drawing to win this LV bag at the Holiday Go-Getter Meeting on December 14! (Must be present to win. No purchase necessary.) Recruit one member and get one entry. Recruit five members and get FIVE entries. It’s up to you! Contact the membership department at members@haaonline.org for more details!

Branch Out!

Get rooted in HAA! Grow your knowledge and your network with these FREE informative online orientation sessions in 2023. Learn about member beneﬁts and how to get involved with your HAA.

New Supplier

Orientations with the HAA Product Service Council via Zoom

10 a.m. to 11 a.m.

June 7

July 5

August 2

September 6

October 4

November 1

December 6

Owner/Management

Orientations with the HAA Past Presidents Council via Zoom

12:30 p.m. to 1:30 p.m.

June 8

September 14

December 6

For more information, contact members@haaonline.org and visit www.haaonline.org

Dates are subject to change

OUR SUPPLIER NETWORK

HAA’s Ambassadors are the pros at outreach to members.

Mark your calendars and join us!

Ambassador ONE Society meetings:

June 7

July 5

August 2

September 6

October 4

November 1

The meeting spot is Kirby Ice House, 1015 Gessner Road, Houston, Texas 77055.

Photo below: “ONE of the Month” Jorge Portillo, G.O. Plumbing Services, with 362 points. Dillon Brown was second with 230 points and

Giovanna Gone was third with 70 points.

Ambassador ONE Society members with at least 10 points, ranked by points earned:

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.

The Ambassador ONE Society HAA’s WELCOMING COMMITTEE 66 ABODE June 2023 www.haaonline.org

Dillon Brown Real Floors and Arbor 556 Jorge Portillo G. O. Plumbing Services Inc 368 Crystal Varela Century A/C Supply 208 Josalynne Williams FFH Inc DBA Liberty Builders 188 Giovanna Gone Century A/C Supply 187 Bridget Angulo Greenlogic Lighting & Electric 166 Susan Alvarado Century A/C Supply 148 Tammy Broadway American Fire Systems, Inc. 100 Anisa Rodriguez Greenlogic Lighting & Electric 94 Xochitl Flores Church Pool Services 78 Amanda Kelly Brandt Electrical A/C & Heating Services 76 Kyle Turney Clozzits 56 Adoteh Joseph Akue Redevelopment Services 44 Michelle Smith Fire Reconstruction Inc 44 Brett Hebert Magna Pest 42 Mallory Hess Century A/C Supply 36 Krysta Chacon BG Multifamily 32 Chris Bell Greenlogic Lighting & Electric 29 Tyler Jones Jenkins Restoration 28 Tracey Leach-Moore Flooring Warehouse 24 Ashley Wiggin Infinity Power Partners 24 Ignacio Perez Tx Elite Roofing Services LLC 18 Ruben Perez ATI Restoration 14 Ambassadors earn points by sharing leads, making introductions and visiting communities to promote HAA events and news.

Team photos at left, from top:

First place – You Already Know with 548 points

Second place – Bee HAAppy with 357 points

Third place – Super Suppliers with 39 points

www.haaonline.org June 2023 ABODE 67

68 ABODE June 2023 www.haaonline.org

Do you need to find a product or service for your property on the go?

The Buyer’s Guide is online!

Simply search for a member by name or category to find the most up-to-date HAA supplier member listings. You can contact the companies directly or use our “Request for Information” tool. It's quick and easy!

www.haabuyersguide.com

www.haaonline.org June 2023 ABODE 69

Portfolio Changes

The following owner/management companies have added the listed properties to their portfolios:

• Allied Property Management: Townhomes on Peacock Hill, 211 units at 12247 Sunset Meadow Lane.

• American Homes: Single Family Units, 2,773 units at Various Locations.

• Anne Holdings Series LLC: 3724 Branard, 14 units at 3274 Branard.

• Archline Capital LLC: Archline Capital LLC – Properties, 10 units at Various Locations.

• Ascendient Real Estate & Property Management LLC: Azul ApartmentsWoodlands, 12 units at 25115 Harper Lane in Spring.

• Asset Living: Mount Vernon Lofts, 42 units at 4509 Mt Vernon Street; Haven at Bellaire, 297 units at 20220 Bellaire Blvd in Richmond; Gala at MacGregor, 85 units at 102 Carson Circuit; and District 28, 299 units at 2828 Old Spanish Trail.

• Avenue5 Residential: Arden Woods, 308 units at 24530 Gosling Road in Spring; Allora District West, 324 units at 22100 Park Westheimer in Richmond; and Harper's Retreat, 216 units at 17011 Harper’s Way in Conroe.

• Banyan Equity Management LLC: 2008 Colquitt Apartments, 8 units at 2008 Colquitt Street; 3412 Graustark Apartments, 8 units at 3412 Graustark Street; 3414 Graustark Apartments, 8 units at 3414 Graustark Street; 1423 Kipling Apartments, 8 units at 1423 Kipling Street; 417 W Main, 12 units at 417 W Main Street; 606 Harold, 14 units at 606 Harold Street; 306 Stratford, 15 units at 306 Stratford Street; 4321 Mount Vernon, 16 units at 4321 Mt Vernon; 400 Westmoreland Apartments, 16 units at 400 Westmoreland Street; 1507 California, 18 units at 1507 California Street; 1717 Norfolk

Apartments, 20 units at 1717 Norfolk Street; 2212 Dunlavy, 20 units at 2212 Dunlavy Street; 2301 Commonwealth, 24 units at 2301 Commonwealth Street; and 239 Emerson, 28 units at 239 Emerson Street.

• Better World Properties LLC: Catalina Houston LLC, 44 units at 1830 Johanna Drive.

• BH Management Services LLC: 8181 Med Center, 678 units at 8181 Fannin Street.

• D &D 3 Real Estate: Darla Vazquez Properties, 1 unit at Various Locations.

• Fairfield Residential: East Bend, 269 units at 1111 W 6th Street.

• First Choice Management Group: The Verge at Siummer Park, 291units at 905 Park Place Blvd in Richmond.

• Greenline Apartment Management LLC: Chateaux Dijon, 426 units at 5331 Beverly Hill Street.

• Greystar: Prose District West, 360 units at 22000 Bellaire Blvd in Richmond.

• Indio Management: Reserve at Westwood, 708 units at 10225 Bissonnet Street; Timber Ridge, 704 units at 12200 Fleming Drive; The Redford, 856 units at 1221 Redford Street.

• Krishna Management LLC: Star Westheimer Apartments, 330 units at 7900 Locke Lane.

• MLDC Management LLC: Whispering Oaks, 140 units at 1200 N Loop 336 West in Conroe; Tara Oaks Apartments, 126 units at 3800 Sherwood Lane; Oaks of Westchase, 182 units at 2851 Wallingford Road; Marymont Apartments, 128 units at 1515 Rudel Road in Tomball; and Cambridge Village, 303 units at 12945 S Post Oak Road.

• Parkstone Capital: 1901 Palm Realty LLC - The Retreat, 333 units at 1901

70 ABODE June 2023 www.haaonline.org

Palm Village Blvd in Bay City.

• Robertson Homes: Robertson Homes –Properties, 1 unit at Various Locations.

• SWA Property Management: Casa de Dali, 46 units at 2810 Beauchamp Street.

• TBOBA LLC: The Brook on Bay Area, 776 units at 2702 W Bay Area Blvd in Webster.

• Titan Management: Oaks at Laverne, 68 units at 1957 Laverne Street.

• Top One Investments LLC: Top One Investments LLC – Properties, 3 units at various locations.

• Valiant Residential: Sanctuary at Jacob's Reserve, 384 units at 165 Carriage Hills Blvd in Conroe, and The Park at Research Forest, 396 units at 8900 Research Park Drive in The Woodlands.

Have property changes? Email us your updates to members@haaonline.org.

In the News

New Hope Housing Brays Crossing celebrated its 30th Anniversary in April. Donations help New Hope increase essential resident services and programs. In honor of its anniversary, donations can be made at https://host.nxt.blackbaud.com/donorform/?svcid=renxt&formId=776c9338-2457-498b8fa5-091a5ce2f177&envid=pFoYZd3wIa0GBLqiEj0y2qg&zone=usa.

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

Get educated!

The 2023 HAF Course Catalog is online now! Find all the professional development you are looking for. Download today.

Scan the QR Code for a detailed list of upcoming educational offerings and visit www.haaonline.org/events to register.

www.haaonline.org June 2023 ABODE 71

On the Scene Photos from TAA

Texas Apartment Association Lone Star Expo

Wednesday, April 19 through Friday, April 21 in Fort Worth

Photos by HAA Staff and courtesy of TAA

TAA's Conference and Expo was alright! Members were able to attend seminars during the day, the keynote address by Matthew McConaughey in the afternoon, then celebrated the kick off in the evening at the famous Billy Bobs. Houston area suppliers showed the best in products and services on the Lone Star Expo show floor. Congratulations to one of our very own, Houston’s Ramon Nunez, CAM, IROP, Bravo Capital Management, who was recognized as the 2023 Bob Ross Independent Rental Owner of the Year!

72 ABODE June 2023 www.haaonline.org

www.haaonline.org June 2023 ABODE 73

On the Scene Photos from TAA 74 ABODE June 2023 www.haaonline.org

www.haaonline.org June 2023 ABODE 75

Aspire Post Oak

The 2022 HAA Honors Awards recipient for New Development High Rise.

Property: Aspire Post Oak

Owner/Management: The Dinerstein Companies

Location: 1616 Post Oak Blvd. Houston, Texas 77056

Units: 383

Built: 2021

Web: www.aspirepostoak.com

Interesting features:

Aspire Post Oak gives residents an elite living experience, residing in the most prominent corner in Uptown Houston. This location gives residents the option to indulge in fine dining and lavish retailers nearby. This is why Aspire Post Oak put intricate thought and detail into every section of the newly constructed building, this includes training the Aspire team to deliver the best-in-class service. Aspire Post Oak was even recognized for the CoStar Impact Award for Best New Development in 2022.

Aspire Post Oak received this honor due to its exquisite amenity spaces, elegant interiors and service. When you pull into the property you will receive complimentary valet parking, a 24-hour concierge and priority parking capability. Feel free to enjoy any of the many resident perks including onsite spa services, climate-controlled bike and resident storage, universal electric car charging stations, and onsite maintenances services.

When you open your apartment door, you can find floor to ceiling glass giving you a view of the roaring city. Units come with latch smart technology-controlled access systems, Nest thermostats and high-end Bosch appliances. The natural stone countertops, mud room entryways, freestanding soaking tubs, touchless faucets and marbled fireplaces showcase the attention to detail Aspire Post Oak has.

You can visit the private lounge on floor 40, or the aqua lounge, pet park, hammock grove, outdoor kitchens, the 24-hour health and wellness center, massage and relaxation rooms, sports lounge with a tee box and golf simulator, or grab a pick-me-up at the coffee bar. Just take a step in the elevator and you can explore any of these amenities, and much more at Aspire Post Oak.

On Site with ABODE Photos provided by The Dinerstein Companies

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

76 ABODE June 2023 www.haaonline.org

Do you really know your applicant?

Comprehensive applicant screening tools available today can uncover financial and criminal background information. Proper screening can also reveal identity fraud issues, including stolen and fabricated identities, which may result in costly problems. Comprehensive screening using Rental Credit Reporting can also tell you who hasn’t paid rent, who has broken leases and who has received their deposit refund.

RCR provides Houston’s apartment industry with the most effective rental credit reporting tool available. RCR was established in 1977 to solve screening problems HAA founders felt plagued the local apartment industry. RCR has unsurpassed data on resident rental histories in the Houston region and gives your leasing staff immediate access to information about which prospects have fulfilled their leases and who have been residents in good standing.

The Houston Apartment Association’s Rental Credit Reporting and SafeRent Solutions have partnered to offer numerous searches in one bundled report with immediate and unlimited inquiry access.

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

a service of in partnership with

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.

Want to see current and previous issues of ABODE online? Go to http://issuu.com/haa_abode. Or view this issue on your computer, tablet or smartphone at http://issuu.com/haa_abode/docs/abode_june2023. A/C Supplies Century A/C Supply 15 281-530-2859 www.centuryac.com Appliance - Leasing Precision Appliance Leasing 75 844-566-1212 www.precisionapplianceleasing.com Carpet Installation Dixie Carpet Installations 43 281-261-6334 www.dixiecarpet.com Texas Southwest Floors 70 800-719-4321 www.texasswfloors.com Collection Agencies Alexander-Rose Associates Inc. 71 713-644-4441 www.alexanderrose-inc.com Electric Contractors Affordable Quality Electric 13 713-695-5992 www.acuityelectric.com Brandt Electrical A/C & Heating Services 35 281-693-3383 www.brandtelectrical.com Foundation Repair Church Foundation Repair 41 713-468-8400 www.churchfoundationrepair.com General Contractors Camp Construction Services Back Cover 713-413-2267 www.campconstruction.com Cotton Commercial USA Inc. 14 877-511-2962 www.cottongds.com Gemstar Construction & Development 10 281-821-1195 www.gemstarconstruction.com Guardian Construction 1 832-672-4196 www.guardianconst.com MultiFamily Services 69 713-266-9100 RENCON Inside Back Cover 713-666-3636 www.rencon.com Glass – Plate, Window, Etc. Ameristar Screen and Glass 51 713-683-6767 www.ameristarglass.com Landscape Contractors Texscape Services 54 281-846-3779 www.texscapeservices.com Laundry Equipment & Supplies Scott Equipment 51 713-686-7268 www.scott-equipment.com Management Company Creative Property Management 55 713-772-4420 www.cpmcompany.com Movers Ameritex Movers 2 713-484-MOVE www.stressfreemove.com Paint Behr Paint 27 800-431-3000 www.homedepot/proxtra.com Personnel Agency ASAP Personnel 71 972-432-6667 www.asapdo.com Plumbing Contractors AAA Plumbers 5 713-462-4753 www.aaaplumbers.com Resident Screening Service SafeRent Solutions Inside Front Cover 888-297-8821 www.saferentsolutions.com Screens Ameristar Screen and Glass 71 713-683-6767 www.ameristarglass.com Swimming Pool Service Poolsure 12 800-858-POOL www.poolsure.com Wrecker Service American Wrecker 47 713-528-8290 www.virtualparkingpermits.com HAA Products & Services Rental Credit Reporting 77 713-595-0300 www.haaonline.org/rcr

78 ABODE June 2023 www.haaonline.org Index of Advertisers By CATEGORY With HAA’s job board, you’ll discover a professional community that’s committed to helping you find the right candidate or your next job opportunity in the greater Houston and surrounding areas. TARGET QUALIFIED LEADS www.haaonline.org jobs@haaonline.org 713-595-0300 www.haaonline.org

Snapshot

Occupancy: 89.9%

Price: $1,265/mo.

Rental Rate: $1.42/sq.ft./mo.

Size: 891 sq.ft.

Past

rate growth

History of Effective Rental Rate & Occupancy for All Units

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

Occupancy: 91.6%

Price: $1,496/mo.

Rental Rate: $1.70/sq.ft./mo.

Size: 881 sq.ft.

Past 12 Months:

0.3% rental rate growth

1,945 units absorbed

Operating Supply:

San Antonio

Occupancy: 89.4%

Price: $1,209/mo.

Rental Rate: $1.40/sq.ft./mo.

Size: 863 sq.ft.

Past 12 Months: -0.3% rental rate growth

Occupancy: 89.1%

Price: $1,623/mo.

Rental Rate: $1.85¢/sq.ft./mo.

Size: 877 sq.ft.

Past 12 Months:

-2.7% rental rate growth 7,204 units absorbed

ApartmentData from MRI Software has been providing apartment data and marketing products since 1986.

ApartmentData.com provides realtime 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.

• Occupancy (%) Rental Rate (¢/sq.ft./mo.) May 21 Jun 21 Jul 21 Aug 21 Sep 21 Oct 21 Nov 21 Dec 21 Jan 22 Feb 22 Mar 22 Apr 22 May 22 Jun 22 Jul 22 Aug 22 Sep 22 Oct 22 Nov 22 Dec 22 Jan 23 Feb 23 Mar 23 Apr 23

Operating Supply: 3,078 communities 727,736 units Recently Opened (12 months): 78 communities 18,678 units Under Construction: 83 communities 22,478 units Proposed Construction: 103 communities 31,719 units Hottest Submarkets Over the Past Three Months Annualized % of Market Rental Rate Rank Submarket Absorbed Growth % 1 I-69 North 19.2% 1.1% 2 Conroe North/Montgomery 10.4% 0.8% 3 Richmond/Rosenberg 9.7% 1.0% 4 Friendswood/Pearland East 9.7% 0.9% 5 Northeast Houston/Crosby 10.7% 0.5%

Total Units % of Average Citywide Class w/Concessions Total Units Special Effect All 227,025 31% -1.8% -5.4% A 78,204 40% -2.5% -6.1% B 82,009 31% -1.4% -4.5% C 60,553 30% -1.5% -5.1% D 6,259 9% -0.5% -5.8% One Month Free = -8.33% – 90.0 – 89.0 – 88.0 – 87.0 – 91.0

Months: 1.8% rental

3,067 units absorbed

Concessions

HOUSTON 1050 –1025 –1000 –975 –1075 –• • • • • • • • • • • • • • • • • • • • • • • • MarketLine By BRUCE MCCLENNY, Senior Director of ApartmentData from MRI Software

3,418

communities 824,265 units

Operating Supply: 1,013 communities 219,535 units

-820 units absorbed

Austin

1,204 communities 289,160 units www.haaonline.org June 2023 ABODE 79

Operating Supply:

Back Page with News from around the COMMUNITY 80 ABODE June 2023 www.haaonline.org

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

ABODE June 2023

AB DE

CONTENTS

ON THE COVER 34

FEATURES & PHOTOS

COLUMNS & MONTHLY UPDATES

OFFICERS AND ASSOCIATION LEADERSHIP

ABODE

SPONSOR MEMBERS

Letter from the President

ARE YOU PREPARED TO WEATHER THE HEAT?

June Patron of the Month

IT’S NOT OVER UNTIL IT’S OVER

Texas Legislative Session adjourns Sine Die.

TAA/HAA Supported Legislation

FRAUDULENT ACTIVITY

Review corporate housing policies.

UNSECURE SECURITY DEPOSIT

A resident files a complaint after her security deposit is not refunded.

SPONSORSHIP A CTI N

2023 Honors Awards

BE A PART OF THE NEXT GENERATION OF HAA LEADERSHIP.

CASINO NIGHT

JUNE 1

28

29

JULY 4

New Technology Track!

LEGAL SEMINAR

Legislative Session Recap

What New Laws You Need to Know

Thursday, June 29

Property management supervisors and executives:

HAA PAC TopGolf Fundraiser

HAA PAC TopGolf Fundraiser

Will you take this Recession?

The Fed is forcing the economy to accept the vows of a recession.

Does Anyone Object to this Recession

ShotgunWedding

Is the economy being held up, and forced into a bad relationship?

Till Recession Do Us Part

Occupancy and Price

The Market “Guest List’ by Class

Looking Ahead

Your Vote Matters

Unscooped pet waste: Is it a problem, a revenue opportunity or both?

Waste Not, Want Not $

A Revenue Opportunity?

The Bottom Line

Choices, Choices, Choices

Deregulation aims to offer lower electricity rates to end-users by promoting competition and deregulating the market and the generation/supply of electricity.

How does this factor into my multifamily asset and our utility costs?

NAA Continues to work on Biden Plan for Renters Bill of Rights

What are Texas Renters Looking For Today?

Marketing to prospective apartment renters is easy if you have the right amenities.

Why Texas is a Great Place to Rent an Apartment

Marketing Your Amenities

Final Thoughts

Tips to Grow Your Executive Presence: Your

ACES Manager Appreciation Luncheon

GROW YOUR BUSINESS

NEXT Bingo & Brews

MEET THE NEXT GENERATION OF HAA LEADERSHIP.

OWNERS

SUPPLIERS

BRANCH OUT! RECRUIT FOR

Honorary Life Members

Branch Out!

New Supplier

OUR SUPPLIER NETWORK

Portfolio Changes

In the News

Get educated!

On the Scene Photos from TAA

Aspire Post Oak

The 2022 HAA Honors Awards recipient for New Development High Rise.

Do you really know your applicant?

History of Effective Rental Rate & Occupancy for All Units

THE FIRST TABLE ABOVE GIVES A SNAPSHOT

TEXAS Dallas/Ft. Worth