GCNKAA 2024 May Apartment Advantage Newsletter

PRESTIGEAWARDS HONORINGEXCELLENCE

GCNKAA ANNOUNCES AWARD WINNERS DURING 2024 PRESTIGE AWARDS ON APRIL 19

The 2024 Greater Cincinnati Northern Kentucky Apartment Association Prestige Awards came and went in a blur as more than 400 people joined together to celebrate excellence in multifamily housing.

A huge congratulations to our winners this year. To see the complete list of winners, as well as photos from the event, please see pages 20-22 inside this newsletter.

A big thank you to our sponsors, especially BRG Apartments for their Sapphire Sponsorship; HILLS Properties for their Platinum Sponsorship; Chadwell Supply, CIG Communities, Fath Properties,PLK Communities, Royal Finish, and Towne Properties for their Gold Sponsorships; Rookwood Proper-

LIMITED SPONSORSHIPS AVAILABLE FOR SUMMER GOLF OUTING

On Thursday, June 13, 2024, Aston Oak’s 18-hole golf course will host the Association’s 38th Annual Golf Outing. By using the 18hole facility to host our event, we can host up to 160 golfers providing even more owners, multi-site managers, property managers, leasing consultants and other vendors for you to meet and greet. Here’s more information on how to get more bang for your buck.

There are NINE types of sponsorships available. You may select the type you want based on the level of participation you want the day of the outing. Hole sponsorships are currently sold out. If you are still looking to secure a sponsorship that allows you to meet and greet the golfers during the outing, we recommend your considering a beverage sponsorship or a putting green sponsorship. All will be offered on a first-come, first-served basis.

For more details on sponsorship opportunities, or to reserve your sponsorship, please click here.

ties for their Silver Sponsorship; CORT, ePremium Insurance Agency, Hearth Home Communities, and Pinnacle Paving & Sealing for their Bronze Sponsorship; Dynegy, Marsh & McLennan Agency, Rent Manager, and Scherzinger Pest Control for their Copper Sponsorship; and AmRent and Dry Patrol for their Patron Sponsorship. None of this is possible without your support.

Thank you also to Pete Regules, our host for the evening who brought his high energy to the event throughout the evening. Thank you also to the volunteer committee who spent years planning this event. And finally, a huge thank you to the committee chairs - Jordann Morgan with Fath Properties, and Todd Hignite with Hearth Home Communities - for their time and dedication to making this a night that many will remember for years to come.

Click here to see all the photos from the evening.

DAY AT THE RACES SET FOR MAY 17; EVENT SOLD OUT

Due to your request, the Day at the Races returns again this year in May! That’s right! On FRIDAY, May 17, 2024, the Greater Cincinnati Northern Kentucky Apartment Association once again hosts this annual favorite at Belterra Park. This year at the Day at the Races, the gates will open at 12 pm with lunch at 12:30 pm. Post time is 12:35 pm. This event is currently sold out! If you would like to get added to the wait list should we have availability, please call the office at 513-407-8612 or email michele@gcnkaa.org. In the event we are able to make more room for attendees, pricing is below. Please note that any attendee that arrives without a registration will incur a $30 administrative fee.

• Package 1 ($800): includes reserved table for 10, hot lunch*, 2 drink tickets per person, signage in private room, company listed in monthly Apartment Advantage, free parking.

• Package 2 ($240): includes two admissions to Belterra Park, hot lunch*, 2 drink tickets per person, signage in private room, company listed in monthly Apartment Advantage, free parking.

• Package 3 ($75): includes one admission to Belterra Park, hot lunch*, 2 drink tickets, and free parking. Register yourself and your team directly online here and get the discounted rate of $70 per person!

* Hot lunch includes assorted fruit with berries, mixed green salad, flamegrilled BBQ chicken, smoked pork ribs, grilled salmon with Feta and cucumber salad, potato salad, cornbread muffins, peach cobbler and vanilla bean ice cream. Click here for more information or to register online.

Sponsors

2024 EXECUTIVE COMMITTEE

MELISSA JOY

Village Green Mgmt President mjoy@villagegreen.com

JUSTIN SEGER

HILLS Properties Vice President JustinS@hillsinc.com

MEGAN LAWHON PLK Communities Secretary megan@plkcommunities.com

TONYA PETERSEN

Vinebrook Homes Immediate Past President rpmhousingpro@gmail.com

2024 BOARD OF DIRECTORS

Mark Arnold, Royal Finish Associate Council 2nd Vice President

Lloyd Cobble, CIG Communities

Brian Fullenkamp, Legacy Management

Rod Herper, National Credit Systems Associate Council 1st Vice President

Todd Hignite, Hearth Home Communities

Lisa Isham, CMHA

Oksana Lukjanenko, Denizen Management

Mike Markus, BRG Apartments

Jordann Morgan, Fath Properties

John Recob, Towne Properties

Grant Saunders, Hays + Sons Restoration Associate Council President

Charles Tassell, Parliamentarian Cornerstone Redevelopment

Elizabeth Werner, Sandstone Properties

Rebecca McLean, Executive Vice President

Pat Crowley, VP of Governmental Affairs

Michele Klusman, Director of Communications & Programs; Apartment Advantage Editor

Rick Holste, Director of Membership Sales

Zach Jameson, Accounting, Database & Office Coordinator

James Combs, Education & Social Media Coordinator

Susan Peck, AA Outreach Coordinator

Nicole Metz, Membership Coordinator and Office Administrator

2023...Tonya Petersen

2022...Tonya Petersen

2021...Don Brunner

2020...Don Brunner

2019...Jud Oscherwitz

2018...Jud Oscherwitz

2017...Stacy Walton

2016...Stacy Walton

2015...Rusty Lykes

2014...Rusty Lykes

2013...Maria Stanton

2012...Maria Stanton

2011...Jeff March

2010...Brian Fullenkamp

2009...Brian Hendy, CPM

2008...Brian Hendy, CPM

2007...Becky Alejandrino, CPM

2006...Marc Cameron, CPM

2005...Marc Cameron, CPM

2004...Gary Sanzone, CPM, CAPS, CAM, NALP

2003...Gary Sanzone, CPM, CAPS, CAM, NALP

2002…Jim Ruh

2001…Jay Ingram, CPM

2000…Roy Wergers

1999…Roy Wergers

1998…Robert J. Wahlke, CAPS

1997…Terry Sievers

1997…Dave Lockard

1996…Jim Cohen, CPM

1995…Jim Ruh

1994…Mark Robinson

1993…David Noll

1992…Bernie Wessels **

1992…Jerry A. Molique, CPM, CAPS **

1991…Jay O. Ingram, Jr., CPM

1990…Ronald Bommer

1989…John Cobey

1988…Robert J. Wahlke, CAPS

1987…Robert J. Wahlke, CAPS

1986…Charles Berling

1985…Joseph Fullenkamp, CAPS

1984…John Stalnaker

1983…Jerry A. Molique, CPM, CAPS

1982…Harry Fath

**Apartment Association of N. KY merged with GCNKAA

Office Hours: Monday Through Friday 8:30 am to 5:00 pm

ADVERTISING RATES 2024

Ad rates are for full color ads. Link from your ad to your website is included. Ads must be submitted as a press quality pdf

ADVERTISING DEADLINES

Ad deadlines are the first of the month for the next month’s issue. Placement of articles and ads is limited to pre-set space and dimensions of the Apartment Advantage. Submissions may or may not be used and placement is at the discretion of the editor

CRAIG COFFMAN Uptown Rental Properties Treasurer ccoffman@uptownrents.com Apartment Advantage is a monthly publication of the Greater Cincinnati Northern Kentucky Apartment Association, Kenwood Executive Center, 7265 Kenwood Rd, Ste. 100, Cincinnati, OH 45236; phone (513) 407-8612; fax (513) 407-7868. For up-to-date information check out our website: www.gcnkaa.org.

Across the Board

A MESSAGE FROM THE PRESIDENT

By Melissa Joy, President

Melissa Joy Village Green Mgmt.

Wow! So much has happened in one short month, and I am a little sad we don’t have more time to revel in the incredible memories made at the Prestige Awards. April was truly a month to remember across the Greater Cincinnati Northern Kentucky Apartment Association (GCNKAA). For the first time in nine years, our association convened to honor the best of the best in multifamily across the Greater Cincinnati market. Being a 30-year industry veteran, I must say that I am in awe of the future of our industry and our local market. Not only do we have so many amazing existing apartment communities that are pillars of the community, but there are numerous new developments across the city that are continuing to add to the landscape of our local market. We had the opportunity to celebrate these beautiful communities and, as importantly, the passionate industry professionals who provide the service to lease, manage, and maintain the communities. The Prestige Awards was the perfect event to showcase our association and its members and it would not have been possible without the hard work of the GCNKAA staff, led by Michele Klusman, as well as my fellow board members, Jordann Morgan with Fath

This section contains articles and information concerning the Board of Directors and Association policies.

Properties and Todd Hignite with Hearth Home Communities, cochairs of the Prestige Committee. Thank you to Michele, Jordann, Todd, and the entire committee who worked so diligently to ensure a spectacular event.

As if the Prestige Awards wasn’t a big enough event we also had a wonderful turnout for the AAO 5k-for-Rent at Friendship Park. It was a gorgeous day for the 5k and we had record-breaking attendance. Thank you to everyone who participated and sponsored the event and a special thank you to Susan Peck for her passion and dedication to the Apartment Association Outreach.

May is also a month to be excited about! We have the GCNKAA Business Exchange Event coming up on May 7 at Oasis Conference Center and the Day at the Races fast approaching, Friday May 17 at Belterra Park. Both of these events are favorites of our members and we can’t wait to see you all there! Find out more about the events on our website or social media pages. And if you’re still making plans for summer, the NAA Apartmentalize conference is taking place in Philadelphia June 18-21.

I look forward to seeing many of you this summer, both in person and online. If you don’t already follow our social media pages, check us out on Facebook, Instagram, LinkedIn, and YouTube. We would love to interact with you and share photos! If you post be sure to use #GCNKAA and we will follow along!

Cheers to a season of good things!

Thanks

Brain Power

IN PERSON OR ON DEMAND: GCNKAA EDUCATION

By James Combs, Education and Social Media Coordinator

James Combs

We’ve finally entered May and we have had more than ten educational offerings! We don’t plan on slowing down. With so much great content coming, we want to show it all off. Below you’ll get a chronological outlook about what is to come but to fit it all, it’ll be abbreviated. Go to our website for full details!

HOUSING-PRO PASS: AVAILABLE NOW!

The Housing-Pro Pass is an undeniable value for our members. Sold at the top-level company, one pass covers your company’s entire portfolio. This bulk subscription allows every employee to enjoy unlimited-free or discounted education offered by the GCNKAA. This includes things like Fair Housing, Hands On Maintenance, Sales for Leasing, and more!

SEMINARS, WEBINARS, AND MORE! (MORE TO COME)

• Hands On: Leasing Meets Sales – May 2, 2024 – Whether you’re a seasoned professional or new to the numbers, becoming an expert in the subject will catapult you to the next level in your career!

• KY Fair Housing by Art Crosby – May 10, 2024 – Join us for an engaging seminar focused on Kentucky Fair Housing

laws and their crucial implications for the multi-family industry. Led by a licensed Kentucky Attorney.

• You Bet Your Assets! Animals, Accommodations, & HUD – June 10, 2024 – Learn how to navigate the intricacies of assistance animal guidelines with confidence and ease!

• Moisture & Indoor Air Quality – TBD – Uncontrolled indoor moisture can cause major damage to the building structure and negatively impact indoor air quality. This course helps you understand how to appropriately manage these conditions.

• Multimeter Basics – TBD – This class will cover how to use a multimeter and what to use it for. Topics include circuit basics and continuity/resistance related to appliance electrical troubleshooting.

• Underground Plumbing – TBD – An advanced level seminar, you’ll cover sanitary sewers and storm drains. How these systems work with and affect your property.

• Conflict Resolution Training – August 28, 24 – Acquire practical insights that will equip you with the knowledge to navigate complex relationships within the apartment industry and effectively find resolutions in times of conflict.

• 301 Property Management – September 26, 24 – It’s time to move past being a property security guard. This 301 level class is meant to turn property managers into the potential

ELEVATE YOUR CAREER!

HVAC EPA 608 CERTIFICATION

FRIDAY, JULY 19 | 9 AM - 1 PM FRIDAY, JULY 26 | 9 AM - 5 PM GCNKAA O ice | 7265 Kenwood Road, Ste. 100 | Cincinnati

future of the company. Learn the finances inside and out, learn the strategy, and learn people.

• LIHTC Fundamentals – October 23, 24 – Learn how to properly manage LIHTC assets from the ground up. Includes a bonus regulatory update about HOTMA!

CERTIFICATIONS!

• Certified Apartment Leasing Professional (CALP) – May 23, 2024 – CALP is many people’s first industry credential. By professionalizing your leasing skills, you set up the foundation of a successful career in the industry and add a great notch for upward growth!

• EPA 608 – July 19, 2024 – Section 608 of the Federal Clean Air Act requires that all persons who maintain, service, repair or dispose of appliances that contain regulated substances be certified in proper refrigerant handling techniques.

• Certified Apartment Portfolio Supervisor (CAPS) – July 22, 2024 – Recommended for multi-site managers or those looking to grow into a multi-site manager role.

• Certified Apartment Manager (CAM) – September 13, 2024 – 2024 brings a completely updated curriculum for today’s property managers! Allows you to demonstrate that you have the knowledge and ability to manage an apartment community

• EPA 608 – October 18, 2024 – Section 608 of the Federal Clean Air Act requires that all persons who maintain, service, repair or dispose of appliances that contain regulated substances be certified in proper refrigerant handling techniques.

INVOLVEMENT, SPONSORSHIP, QUESTIONS

If you are interested in getting involved with the Education or NextGen Committee and help plan all of the great education opportunities, join us for our monthly meetings! Contact james@ gcnkaa.org for details and invitations.

GCNKAA’s education and NextGen programs offer great exposure through sponsorship. Seminars and course modules can be sponsored for as little as $150 and comes with many benefits. Sponsorship funds help the association provide extra amenities to the attendees.

Looking to Join a Committee?

Low, Predictable cost &

High ROI At .50 cents a unit, the average GCNKAA member’s savings pay for the pass after 5 people attend a single session!

Our House

This heading contains membership, staff, committee information and events.

NAA APARTMENTALIZE HEADS TO PHILADELPHIA IN JUNE! REGISTER TODAY!

Whether you’re in management, leasing, marketing or maintenance, if you love working in rental housing, you belong at Apartmentalize. Come find your people in the City of Brotherly Love—connect with colleagues, share ideas, discover solutions and go home with renewed passion for your career.

EXPERIENCES

The Apartmentalize schedule is designed to maximize your connections with other attendees and exhibitors. With interactive sponsored activities, the NAA Exposition and structured networking sessions, Apartmentalize provides countless opportunities to meet and exchange ideas with the best in the industry.

• Nationally recognizable speakers from outside the industry motivate you with their inspiration and personal stories of success and real-life experiences. This year’s speakers include Kyle Carpenter, Mark Wahlberg, and Leslie Odom Jr.

• Welcome Reception: Kick off 2024 Apartmentalize by enjoying snacks and beverages while networking with fellow attendees and suppliers at the Welcome Reception. Wednesday, June 19 | 5:30-6:30 p.m.

• NAA Exposition: The NAA Expo brings together the rental industry’s top management professionals and suppliers eager to network, share ideas and the latest products and services.

• Expo Eats: Grab a complimentary lunch on Thursday and Friday.

• Express Education: Two stages featuring 30-minute interactive sessions that include quick digestible content, easily applied takeaways, Q&A and storytelling.

• NSC Lounge: Learn more about the companies who are members of NAA’s National Suppliers Council.

Thursday, June 20 | 11:30 a.m. – 5 p.m.

Friday, June 21 | 9:30 a.m. – 1:30 p.m

• NAA Excellence Awards: NAA’s Excellence Awards, or Excels, recognize excellence and leadership in the rental housing industry. This year’s awards ceremony will be complimentary for interested conference goers and those ready to cheer on their company, colleagues and other nominees. Attendance will be limited to the first 400 people who arrive. Wednesday, June 19 | 11 a.m. - 12 p.m.

• Thursday Night Party: Apartmentalize will take over the Philadelphia Museum of Art and give attendees an iconic Philly experience! Attendees will LOVE the entertainment, food, drinks and fun! Thursday, June 20 | 7 p.m. - 10 p.m.

Apartmentalize is scheduled for June 19-21, 2024, in Philadelphia, Pennsylvania. Registration is now open here.

PRIMARY

AMC LLC

Lissa Murphy

4105 Woodmont Drive Batavia, OH 45103 (220) 200-9356

l.murphy@amcllc.net

Dial Residential

Christian Dial 4040 Walton Creek Road Cincinnati, OH 45227 (513) 463-3254

christian@dialresidential.com

Prestige Properties

Kim Weiss

2570 Madison Road Cincinnati, OH 45208 (513) 305-3171

karen.weiss@prestigerental.com

MARCH 2024 NEW MEMBERS

ASSOCIATE

APM Paving

Sarah Hawley 4815 Bryan Station Road Lexington, KY 40516 (859) 299-8111 admin@apmpaving.com Pavment Maintenance & Repair

Bio-One of Cincinnati

Devin Drambarean 8190-A Beechmont Ave, Ste 142 Cincinnati, OH 45255 (513) 299-8807 info@bioonecincinnati.com Crime & Trauma Scene Clean Up

CSL Technology Solutions

Justin Smith 2750 U.S. 40 Tipp City, OH 45371-9230 (937) 667-4421 justin.smith@csl-tech.com Electrical Services / EV Charging

Dryer Vent Squad of Greater Cincinnati

Chuck Breidenbach 7672 Montgomery Road #271 Cincinnati, OH 45236 (513) 547-2818

greatercincy@dryerventsquad.com Air Duct & Dryer Vent Services

LaughlinRE LLC

Paul Laughlin 3577 Mohler Road Cincinnati, OH 45241 (847) 732-1977 paul@laughlinre.com Consulting and Property Analysis

Rolling Suds of Cincinnati

Kevin Carr 8361 Broadwell Road Cincinnati, OH 45244 (513) 572-5658 kevin.carr@rollingsuds.com

Cleaning & Janitorial Services

Sky Contracting

Jeremy Turner 266 Briarcliff Road Dayton, OH 45415 (937) 613-1957 jeremy@skycapex.com Interior/Exterior Painting / Roofing

Voda Cleaning & Restoration

Mark Everingham 3064 Victoria Avenue Cincinnati, OH 45208 (513) 635-8623 mark.everingham@myvoda.com

Crime and Trauma Scene Clean Up / Fire and Water Damage Restoration

GOLF OUTING SCHEDULED FOR JUNE 13; SPONSORSHIPS STILL AVAILABLE

On Thursday, June 13, 2024, Aston Oak’s 18-hole golf course will host the Association’s 38th Annual Golf Outing. By using the 18-hole facility to host our event, we can host up to 160 golfers providing even more owners, multi-site managers, property managers, leasing consultants and other vendors for you to meet and greet. Here’s more information on how to get more bang for your buck.

There are NINE types of sponsorships available. Hole sponsorships, the Split-The-Pot sponsorship, Event Sponsorship and the GiveAway Sponsorship are all sold out. If you would still like to become a sponsor and have the opportunity to meet and greet the golfers on the course during the outing, we recommend a beverage sponsorship or a Putting Green/Driving Range sponsorship. For more details, visit www.gcnkaa.org or call the office. All will be offered on a first-come, first-served basis.

All sponsors receive signage at the outing, pre-event marketing exposure and public acknowledgement of sponsorship during dinner the day of the outing. Hole and beverage sponsors also have the unique opportunity to create a memorable impression and build relationships at their sponsored hole/station. Beverage sponsors will be listed on the beverage cups distributed during the outing and trophy sponsors will be listed on the trophies. All sponsors are also invited to donate door prizes or give-aways to all participants.

Due to liquor licenses, NO sponsor is permitted to bring ANY alcoholic beverages onto the course. All alcoholic beverages will be provided by the course ONLY. There will also NOT be any beer at beverage stations. Beer and liquor will be provided only by two beverage carts controlled by Aston Oaks employees that will drive around the course all day. Beverage stations for the 2024 outing are located on holes 4, 8, 12 and 16. Please note that if you select one of these holes as a hole sponsorship, there is a chance you may have beverage sponsors nearby.

If you are interested in reserving a sponsorship or a foursome for the 2024 GCNKAA Golf Outing, call or email Michele at the Apartment Association office at 513 407-8612 or michele@gcnkaa. org or click here for more information. Foursomes and sponsorships are limited and will be sold on a first come first serve basis.

Click here for details.

GCNKAA 38th ANNUAL GOLF OUTING

· Countertop, Cabinet and Bathtub resurfacing

· Cabinet Door Replacement with Resurfacing of frames and boxes

· Increase Rent/Occupancy

· NEW look - Fresh Colors

Government & Housing Legalities

AREA RENTS ARE COOLING OFF

By Pat Crowley, Vice President of Governmental Affairs

Pat Crowley

The rise in Greater Cincinnati rentmuch of it driven by tight supply - was the focus of intense media coverage over the last year.

But a new report by The Cincinnati Business Courier indicates that rent growth stabilized because more apartments are coming online.

“The average rent tends to fluctuate across reporting services, from Apartment List to Zillow to Rent.com to Realtor.com, as each service uses different sampling data and a different algorithm,” the paper reported. “But all the services report roughly the same phenomenon – rents in Greater Cincinnati over the last year have either plateaued or slightly declined.”

The median rent in Greater Cincinnati at the end of April was $1,031, up just 0.1 percent in March and 0.3 percent from April 2023, which according to Apartment List is the lowest annualized increase in four years.

“Rent increases are currently being moderated by a robust construction pipeline expected to deliver a decades-high number of new apartment units in 2024,” Apartment List reported. “Improving consumer sentiment about broader macroeconomic conditions may be driving a modest rebound in rental demand, but that bounce back has so far been outweighed by the impact of incoming supply.”

The Courier reports that the local vacancy rate is 4.86 percent compared to the national rate of 6.7 percent.

WHAT IS NAAPAC?

NAAPAC is the bi-partisan political action committee that supports Congressional candidates who represent good government and understand the needs and concerns of the apartment housing industry.

If you are in housing, you are in politics. From fair housing to flood insurance, energy to the environment, the 535 members of the US Senate and House of Representatives play a huge role in shaping the policy and economic climate for the apartment housing industry.

It takes not only the collective power of the NAA, but also the work of individuals at the grassroots level to make sure we, as an industry, are at the table and not “on the menu” when important policy decisions are made.

Why Should I Care? NAAPAC Gives YOU:

• A seat at the Table. Would you rather be at the table, or on the menu? NAAPAC is your vehicle to support federal candidates who are open to the apartment industry’s views on issues crucial to your business and the industry at large.

• Credibility. NAAPAC gives our profession political credibility. It shows that we are willing to support lawmakers who help enact policies that will allow us to keep creating quality apartment homes across America.

• Success. Growing our influence in Washington, DC, does not happen easily. It is an ongoing and long-term process that only succeeds as more and more NAA members participate. Your involvement makes NAAPAC grow in strength.

To donate, click here.

The Apartment Association Outreach, Inc.

LETTER FROM THE PRESIDENT

By Justin Seger, HILLS Properties, Outreach President

May is a wonderful time of year! The weather has warmed up and we have so many things to celebrate as all of us head into our “busy season.” Last month, AAO held another successful 5K for Rent. We had an event record of over 300 participants on a perfect Saturday morning in Downtown Cincinnati. All funds raised from the event will go toward our Rental Assistance Program, and help so many people in need, as we head into the summer months. A special THANK YOU to Josh Oram of Hays and Sons, Susan Peck with Apartment Association Outreach, and the entire 5K for Rent Committee for planning the best 5K for Rent in AAO history.

We have two Volunteer Opportunities scheduled for the month of May. The first is a Senior Event at CMC’s Diamond Oaks Apartments on May 21st. The second is a Day of Service at Childhood Food Solutions on May 29th. It’s not too late to sign up for either event. We can use all of the help we can get!

AAO is especially focused on helping our food pantry partners as we head into the summer months. So many families are dependent on school lunches which go away in the summer. We truly appreciate all

of our Champions for Outreach partners; as well as, our social service and food pantry partners, who make our work possible. It’s not too late to join the cause and commit to being an AAO sponsor. Please let Susan know if you are interested in donating or volunteering at one of our upcoming events.

5K-4-RENT SPONSORS

PRESENTING SPONSOR FINISH LINE SPONSOR

Jetz Service Company, Inc. BRG Apartments

GOLD SPONSORS SILVER SPONSORS

Carpetland

Forcht Bank

Autom Security

Monarch Investment & Management Group

Pinnacle Paving & Sealing

BRONZE SPONSORS Rent Manager

Harrison’s Pro Tree Towne Properties

HOME

Junk King

Sandstone Mgt., LTD.

5K4Rent Saturday, April 27, 2024

Justin Seger

Trend Setting

WHAT FIRST-TIME RENTERS WANT MOST

By Barbara Ballinger

Whether it’s their preference, or they graduated from college and now work, have left their parents’ homes after returning and saving funds or sold a home and want a change for less maintenance, today’s apartment renters come to the market with a variety of priorities.

Those who represent first-time renters are not a single, easyto-define group. Many new to the process—or who may not have rented in decades—have different bud-gets, locations, square footage preferences and reasons to rent. Many younger renters have saved by living with their parents and working to afford their first apartment. It may lack bells and whistles associated with the amenity wars of recent years, but it’s their first home or castle and a huge achievement. “The joy of being able to come into a clean, quiet building with everything that I need has been the highlight of my year,” says London Purnell, who started renting a studio last fall at Chicago-based Habitat’s 43 Green apartment community.

Others, typically older, have equity from the sale of a house and seek to replicate the space and extras they con-note with homeownership, except forgo maintenance. The varied range of wants makes it essential for developers and property managers to understand who resides at each property.

At the top of wish lists, most renters put price/value, location and convenience, though a strong fourth contender is a sense of

This heading contains information on Management & Leasing.

community due to the isolation many felt during the pandemic, says Louie Colella, Vice President of Leasing and Operations at St. Louis-based CRG, which operates 2,500 beds at its purposebuilt student housing (PBSH) and 1,000 multifamily units in eight states. At the same time, many renters desire quality and privacy within their units, even when apartment square foot-age is shrinking nationwide, says Michael H. Zaransky, founder of Chicagobased MZ Capital Partners, which operates 2,500 units in three states. The average size of a new apartment shrank in 2022, according to RentCafe, decreasing from 941 square feet a decade ago to 887 square feet. Here’s more to consider.

AFFORDABILITY AND PERCEIVED VALUE

After rents skyrocketed during the pandemic, they stopped their big upward trajectory, though they are still 20% higher than at the start of the pandemic, according to Apartment List.

Though it may represent a slight nuance, Marcie Williams, CEO of Charlotte-based RKW Residential, which has 35,000 units in nine states, says the majority of those looking at the company’s portfolio seek value more than price. “For example, they know there may be other places that rent for less than $3,500 a month but they don’t want to sacrifice amenities or space for quality,” she says. “Their perception of the value they get for their housing is

the same that they seek in other facets of their life,” she says.

Patrick Burke, Senior Managing Director of Property Management, Build- To-Rent for Atlanta-based RangeWater Real Estate, which has 15,000 units in 11 states, says its first-time residents ex-pect to pay a higher price for the value of what they’re getting, from physical space to amenities, fixtures, hardware and convenience. In some markets where new building inventory has been delivered, competition among Class A buildings has heated up so much that companies have brought back concessions. An example is Myrtle Beach, S.C.-based Sands Companies, which currently gives one month free for its apartment “cottages” in Myrtle Beach. In more competitive Nashville, Tenn., concessions may be greater.

But to reflect value, concessions aren’t usually used month after month, Williams says. Habitat added an incentive to help Purnell afford her first apartment. It let her break her monthly payment into two. “The fact the company was willing to work with me was a huge plus,” she says.

LOCATION-CENTRIC

What connotes a desired location varies among different cohorts but is of para-mount importance, says Williams. “One reason is that most renters live in a building for a short term, so they want what they want now and won’t wait,” she says. As a result of the pandemic, many in the student niche, as well as others, place a premium on outdoor space so they won’t feel cooped up.

Gen X and Millennials want proximity to a job by walking or public transportation and nearby services, especially as work from home or a hybrid continues. Purnell chose her building in part because of the five-minute walk to her job as a teacher and its closeness to her mom’s apartment.

Mary Cook of Chicago-based Mary Cook Associates, commercial interior designers that help guide developers on trends, says the location of the Oleander apartment building in Brookhaven, Ga., on the site of Emory Childrens Hospital grounds and near the Atlanta Hawks training facility and several medical office buildings, was critical since many residents would be medical personnel.

“They are mostly not working remotely but going into work. This means we needed to dedicate less space to remote and coworking and more to fitness and wellness including 24-hour access to these amenities as many were working late shift,” Cook says.

That priority was less key, Cook says, for those living in a building in Harrison, N.J., where the majority of residents would be financial and tech workers commuting into Manhattan only a couple days per week and requiring more remote workspace including remote meeting space, Cook says. “Remote meeting space is different from remote work in that it requires acoustic privacy, robust Wi-Fi, the latest audio and visual technologies and appropriate back-grounds,” she says. The WFH requirements depend on who you are designing for and whether they are truly working and meeting remotely, Cook says. On the other hand, Baby Boomers may be looking for more space, parking and safety as well as amenity spaces that allow them to continue to host family members on occasion. “They want to be near kids and grandkids and many have a primary residence in Florida, Arizona or another more taxfriendly state,” she says.

A decision may hinge on convenience and how spread out

or dense a location is, Colella says. “In suburban St. Louis, more may drive between locations while those living in downtown Chicago are more likely to walk or use public transportation,” he says. Many who gravitated to the new 12-unit The Ellis building in Chicago’s North Kenwood Oakland neighborhood like being near surrounding art galleries, historic buildings, proximity to the beach and Lake Michigan, and public transportation, says Ivan Mariduena, Director of Real Estate Operations for Evanston, Ill.based Jennings Realty, which has 41 units in Illinois and Florida.

Some developers like RangeWater try to meet different residents’ location preferences by building at a range of sites such as near a city, which may come with a higher rent, and in more suburban or rural places. In the later cases, the company tries to introduce a greater sense of community by hosting food trucks and other events periodically so residents don’t have to leave to meet their needs, Burke says.

CONVENIENCE

Ease of living comes in numerous ways, from being able to tour a property to sign a lease, make monthly payments and schedule repairs promptly online, which helps renters when they’re home but also when they’re at work, at a second home or traveling, says Burke.

Many found touring virtually during the pandemic saved time and worked well as technological improvements improved the process. Many renters want to continue to use such features, though others also want the option of looking in person or having both choices. “It’s again a matter of letting the residents have what they want and need when they want it,” Williams says. Purnell

visited the property so she could compare studio layouts and choose one on the seventh floor to be near the building’s communal space. To make life even easier, many buildings offer more of a one-stop-shop through apps that control everything, sometimes in a proprietary system, which RKW Residential does, or through a third-party, which Jennings Realty uses. “It’s the number one amenity buildings can have to make residents’ lives easier,” Williams says. After reviewing how often residents paid online, RangeWater found it was upward of 90%. It tries to help first-time renters learn how to access these systems, including their resident portal. “It gives us a hands-on opportunity to bond with them and drive adoption of online services,” Burke says.

OPEN PLAN LAYOUT AND OTHER ROOMS

More continue to seek an open plan and within it a nook or corner to work. The openness also makes it easier to arrange furniture, Williams says. The favored number of beds for students in a single room depends on location due to rising costs, says Kizer. How many bedrooms they want in an apartment also varies. Those living in groups of four, five and even six bedrooms currently outpace those wanting studios and one bedrooms, which were popular during the pandemic for health concerns, Kizer says.

In market-rate apartments, Zaransky finds many single renters seek studios and one bedrooms because they no longer want to live with a roommate. Other priorities among market-rate renters are for stainless steel appliances and quartz countertops in kitchens, a balcony and ample closet space, he says. More affluent renters also seek a nice entry, a garage and several bedrooms.

At its most luxurious units, RKW Residential has added wire-

less speakers, steam showers, wine fridges and gas appliances. At its new The Ellis, Jennings Realty constructed 9-foot-high ceilings for an old-world feel that fit brick and limestone building in a historic Chicago neighborhood. Many renters who want the feeling of a home rather than multi-family shared space opt for the growing number of BTR units, which generally have more bedrooms, more square foot-age, a private outdoor area and garage. Burke’s company makes a large primary bedroom a priority, along with living space, but has found that its renters care less about the size of other bedrooms but want them to work as flexible spaces such as an office.

Zaransky tested the waters with the acquisition and renovation of a com-munity of 90 single-family apartment homes in Knoxville, Tenn., in April 2023 and found high acceptance. Levi Walters, Director of Asset Management and Capital Markets, at Sands Companies, says its cottage version appeals for that reason, and the company has added larger 1,693-square-foot models.

“All our units are priced 20% higher than comparable multifamily Class A apartments, but many want this, especially those moving from another state. Due to a lack of stock, they rent while they adjust to their area,” he says. His cottage communities also include a clubhouse with pool, gym and business center. Currently, Sands Companies has 1,235 units in North and South Carolina, and is breaking ground on a 212-unit community in Gainesville, Fla. RKW Residential has also added BTR units in the last five years, which now represent about 15% of its portfolio. As it expands, it adds customized features such as doggie doors in units.

HOW MANAGERS CAN HELP FIRST-TIME RENTERS

In an age of electronic signing of leases and payments and fewer in-person visits before moving in, Colella says it’s important to explain in detail what each payment includes, and what it doesn’t. He also stresses the importance of explaining how many security deposits are required since some buildings ask for them at thestart of a lease—for the first and last months. He also says it’s important to spell out in detail what will trigger a deposit not to be returned in whole or part. No matter how sophisticated virtual tours and videos have be-come, nothing can replace an in-person tour of a unit, model rooms and shared spaces to experience the vibe, views and understand the scale of a space, he and others say.

SOME AMENITIES THAT FIRST-TIME RENTERS REALLY WANT

Amenity changes keep evolving, with the latest iteration reflecting life post-COVID and a desire for greater healthfulness and wellness, more socializing for some cohorts and more taking advantage of good weather and a specific location. Some attribute new features to the highly amenitized PBSH buildings students have become accustomed to such as Florida International University’s 22-story building in Miami with a huge sundeck, retractable walls, study labs, pet services, hammock lounges, hot tubs, lounge pools, cold brewed coffee and more, says Cook. Here are amenities that matter most:

• Value of location. It’s not just the location but what the location beyond offers all living there to become the hub of a community, says architect Joshua Zinder of Princeton, N.J.based Joshua Zinder Architecture. “We’re designing buildings with balconies to overlook the city’s downtown and campus and connect people to their surroundings,” he says.

• Outdoor space continues to be prized on shared rooftops, courtyards and lawns and private balconies if units have them, and also at dog parks and walking trails due to the increase in pet ownership among all cohorts, including students. When Jennings Realty constructed The Ellis, it knew to maximize its rooftop with barbecue and seating with views of downtown Chicago and Lake Michigan for young professionals it anticipated leasing, says Mariduera. In Minneapolis, where outdoor areas also may be used as briefly as in Chicago, they’re still popular, says Colella. In general, Williams sees more melding of outdoor spaces with indoor areas, so it’s easy to take a laptop from home to work outdoors, Williams says. At some of its BTR communities, the company carves out walking and self-guided fitness trails and pet paths, Burke says.

• Pet priority started before Covid but has ramped up more since it waned. However, once popular pet spas are less import-ant, according to Zaransky.

• Healthfulness and wellness have soared in interest but how it’s achieved varies. Renters may want a pool in their building but fewer use it, according to Kizer. Instead, many seek other ways to get and stay fit and maintain mental wellness such as doing yoga or stretching in studios rather than through workouts. But eliminating a gym isn’t happening yet since many like the idea of having one rather than knowing they’ll have to pay for an outside facility, Zaransky says.

• The work from home phenomenon has led to fewer private study spaces and more collaborative areas to congregate, including in lounges with furnishings with charging plugs,

Cook says. “In a post-Covid world, developers have to anticipate people working from everywhere—in the lobby and in their unit—and also meeting remotely so good acoustics for privacy and good backgrounds are key,” she says. This is also true in PBSH, where more students want to work from flexible seating to move around and work on group projects together, Kizer says. Amenity changes keep evolving, with the latest iteration reflecting life post-Covid and a desire for greater healthful-ness and wellness, more socializing for some cohorts and

• Food remains a big draw but in different ways. Communal kitchens are another feature used less by many cohorts but are still desired because managers use them to host residentwide events, Kizer says. Small beverage centers that dispense coffee, tea and soda are favored, especially when offered for free, and food trucks continue to make periodic stops due to renter requests. Some buildings also find that residents like occasional events with free meals included, Zaransky says.

• The absence of in-unit laundry equipment can be a deal breaker for many these days, says Zinder. “It’s an amenity, especially with the younger generation, and rapidly shifting to a necessity,” he says.

• High speed, reliable internet service is another essential, and some look for it to be included in the lease, Zaransky says.

• Large package rooms are key as more residents purchase online, but staffed package rooms are disappearing. “It’s a room full of lockers, with delivery workers who have key access to get in and drop off packages, and residents are alerted to get their delivery,” Zinder says. “Besides saving staff, it also takes up less space.”

• Important security features cameras, visible signage near entrances, good lighting and a buzzer or keypad system, Zinder says.

• Programming ramped up during the pandemic when people felt isolated, but now varies, often by residents’ ages. Kizer has seen a decline at her student communities, except related to food and yoga. There, many look to man-agers to help them connect with their outside community through volunteer projects, she says. Empty nesters or Baby Boomers enjoy slightly different activities, Cook says. In one project, Hathon, in Medway, Mass., outside Boston, the majority of renters are divorced and in their 50s who want to live near a former spouse or partner and kids to participate in raising children. “They are socially active and cocktailing in the lobby every day or doing potluck appetizers, etc., for a very fun community experience,” she says. Others like additional activities managers organize. MZ Capital Partners mounted an oversized Scrabble board on a common area wall, which proved a success, Zaransky says. Colella’s company still adds virtual golf simulators, tanning booths and podcast recording studios at its student housing. RangeWater uses programming to involve local small businesses in loosely structured ways such as farm-ers hosting a market, Burke says. One of the best reasons to keep programming in place is that when residents become engaged and get to know their neighbors in a building and community, they’re more likely to provide a favorable review and renew, says Williams.

Barbara Ballinger is a frequent contributor to units.