I am filled with excitement about the opportunities and progress awaiting us in 2025. It is a true honor to step into the role of Chair for the South Dakota Multi -Housing Association and to witness firsthand the remarkable strength and resilience of our industry.
First and foremost, a heartfelt thank you to Lydia Freedon for her outstanding leadership this past year. It has been a privilege to serve as your Vice Chair and to learn from your guidance.
To our outgoing board members - Todd Hollan and Jody Bjornebo - thank you for your dedication and contributions. Your presence on the board will be greatly missed.
To our new board members Shawn Harrison, Jessica Collins, and Neila Schrick-Aubuchon welcome! I am excited to have you join this incredible organization and look forward to the fresh perspectives and energy you will bring.
To our returning board members - Todd Tucker, MeLisa Elijah, Lydia Freedon, Jill Madsen, Shawn Storhaug, Steve Michael and Mike Severson - thank you for your continued support and commitment. I am eager to collaborate with all of you in the coming year.
A special thank you to our Executive Director, Denise Hanzlik. Your tireless efforts keep us on track, moving forward, and focused on our mission. Your dedication is invaluable, and we could not achieve our goals without you.
I want to express my deepest gratitude to each of you - owners, managers, suppliers, and industry partners - for your unwavering commitment to providing quality housing throughout our state. The work we do is vital not only to the economy but also to the well-being of countless individuals and families who rely on safe and affordable housing.
As we set our sights on 2025, we aim to build on the foundations laid this year. Our priorities will include expanding advocacy efforts, introducing innovative educational programs, and creating more opportunities for collaboration within the industry. Your active participation and support will be crucial to achieving these goals.
Together, we will ensure the multi-housing industry remains a vital part of South Dakota's growth and development . Thank you for your continued support and trust. Together, we will keep building a stronger, more vibrant housing industry for South Dakota.
Looking forward to a successful and impactful 2025 together!
JeffBrooks
As Chair of SDMHA for 2024, I am grateful for the privilege of serving our association. This role has provided me with the rewarding opportunity to connect with members across the state and see the good work being done to advance our mission.
I extend my heartfelt thanks to Denise Hanzlik, our executive director, for her steadfast leadership, as well as to the board of directors for their thoughtful guidance and dedication. I also want to acknowledge the many volunteers and committee members whose contributions are vital to our success.
As I look ahead, I am excited to collaborate with Jeff Brooks, our incoming Chair for 2025. Jeff’s wealth of experience and vision will undoubtedly strengthen SDMHA and further our collective goals.
Here’s to a bright and successful year ahead in 2025!
Lydia Freedon
Sioux Falls CHAPTER
Trash Out Crew
153 Holdings
Lightning Roofing & Siding
Hemraj Property
MEMBERS WE ARE SAD TO SEE GO:
Dakota Realty & Property Management
CB Richard Ellis
Schuett Spearfish
Meridian Property Management
605 Properties
Navigating the Rise of Fraudulent Applications in 2025: A Guide for Property Managers
As many property managers have unfortunately experienced firsthand, fraudulent rental applications have become increasingly sophisticated, posing a significant industry challenge across the country. As unscrupulous would -be renters find new ways to falsify information, from employment history to identity verification, property management teams must stay one step ahead to protect their communities from the financial and safety risks present when these renters slip through the cracks. Understanding the types of fraud most common today and implementing both onsite and professional screening measures can significantly reduce these risks.
The Types of Application Fraud Most Common in 2025.
As technology advances, so do fraudsters’ tactics. Property managers should be aware of these prevalent types of application fraud in 2025:
• Identity Theft: Identity Theft remains one of the most pervasive types of fraud in rental applications. Applicants may use stolen identities to circumvent credit and criminal background checks, or to hide poor rental histories. In many cases, they buy identities off the dark web or use publicly available information to impersonate others. This can lead to serious security and financial risks for the property and other residents.
• Income and Employment Falsification: With numerous online resources available to create fake pay stubs, fraudsters are manipulating income documentation to appear more financially stable. This tactic is often used to meet income requirements, despite having inadequate earnings to afford the rent. Employment verification fraud is also rising, as some applicants provide false employer references or set up fake phone numbers and websites for “employers” that don’t exist.
• Credit Profile Manipulation: Some applicants are using techniques like credit “repair” or “profile rental” services to inflate their credit scores temporarily. By “renting” credit lines or using rapid score - improvement tactics, they create an appearance of stability that may not be genuine.
• Misrepresentation of Rental History: In an attempt to conceal evictions, past-due balances, or frequent moves, applicants might falsify their rental history. This includes listing fake previous landlords or providing contacts who will give glowing, albeit false, references.
• Synthetic Identities : One of the newer forms of fraud involves creating a completely synthetic identity combining real and fake information to create a persona that passes background checks. This type of fraud is hard to detect since the “person” is technically not real and does not have a history that could trigger red flags.
What Property Managers Can Do to Identify Fraud on the Frontline. While professional screening is essential, on-the-ground vigilance at the property level can go a long way in identifying and preventing fraud. Property managers and leasing teams should be proactive in their application reviews by incorporating some or all of the following:
1. Verifying Employment Thoroughly Contacting employers directly is vital but take it a step further by verifying business details and contact information independently. Some fraudsters will set up fake phone numbers or websites to appear legitimate. Use reputable online sources, like LinkedIn or official business directories, to cross -reference company details.
2. Scrutinizing Documents. Train leasing teams to recognize falsified documents, including fake pay stubs, W2s, and bank statements. Familiarize your team with signs of forgery, such as inconsistent fonts, formatting errors, or mismatched information. Tools that authenticate documents can also help property managers detect fraud at the site level.
3. Running a Social Media Check. Reviewing an applicant’s public social media presence can sometimes reveal inconsistencies with the information provided on the application. For example, if an applicant claims they work at a company, but their online profile lists a different employer, it could be a red flag.
The Importance of Professional Screening in the Fight Against Fraud.
While vigilant on-site practices are necessary, the complexity and sophistication of modern fraud demand the expertise of a professional screening agency. Today’s property managers face the challenge of rapidly evolving
LEGISLATIVE OUTLOOK
The 2025 legislative session opens on January 14th.
We went into the 2024 Summer Study on Real Estate Tax Methodology hoping that something would come from it. Though testimony and solutions were given, the committee came out with no real plan for real estate taxes in South Dakota, again.
The Leadership in both the House and Senate have, in the past, not been friendly to housing. And we have a lot of newbies in Pierre. NOW is the time to educate YOUR Representatives and Senators on what YOU do and how what they pass will impact YOU.
Bills will not be posted until closer to the beginning of the session. However, we have been told of a couple forthcoming:
• Sales Tax: an increase in sales tax to cover a reduction in real estate tax for owneroccupied. Low probability of passage.
• A limit on a real estate tax increase in a given year. We will review the verbiage before commenting.
Of course, we will keep you upd ated during the session on bills that affect our industry. You can also monitor the session and be alerted to action on bills by:
• Website for legislative session: https://sdlegislature.gov/
• MyLRC (top right corner) is where you can track bills and committees: https://mylrc.sdlegislature.gov/
January 21st is Housing Day at The Capital.
We start at 7 am with food until 10 am.
This is a great time to speak with your Representatives and Senators. It is always more impactful when they hear directly from you.
We will be a part of a larger group, HOMES FOR SD. Which includes Habitat for Humanity, Grow SD, SD Housing, HUD and others. Though much will include information on affordable housing and home ownership, we must keep the rental industry included in the conversation. We can do this by being involved at all levels.
What a great opportunity to experience our legislative session. If you would like to attend, please let our office know.
Final ‘Junk Fees’ Rule Excludes Rental Housin g
By Joe Riter and Nicole Upano December 17, 2024
Thanks to the tireless advocacy of the National Apartment Association (NAA) and its industry partners, the Federal Trade Commission (FTC) issued its final “junk fees” rule, Trade Regulation Rule on Unfair and Deceptive Fees, notably excluding the rental housing industry from additional regulation.
Becoming effective 120 days after it is published in the Federal Register, the FTC’s final rule focuses on total price and fee disclosure requirements for live -event ticketing and short-term lodging industries. While the FTC notes no intended impact on rental housing providers, NAA is reviewing the short-term lodging provisions for a ny potential impacts. Read more.
Out of more than 70,000 comments received by the FTC, 3,800 NAA affiliate partners and members amplified our message urging the FTC to exclude the rental housing industry from this rule. As NAA and the National Multifamily Housing Council emphasized in our comments, the rule is inapplicable to our industry:
[T]he rental housing transaction fundamentally differs from a typical hotel or live event ticket transaction because the landlord -tenant relationship involves an ongoing contractual relationship, typically at least a year-long commitment. It is subject to extensive regulation at the state and local level and is uniquely characterized by a series of transactions as opposed to a single -point transaction… Applicants and residents are informed of concierge -type services and benefits that could require changes t o their housing costs in the lease and throughout the entire leasing process…
As part of our advocacy, NAA also took a leadership role in crafting the national real estate trade groups’ coalition letter and secured a key opportunity for dialogue with FTC officials to raise key industry concerns and answer questions directly from regulators.
While the industry’s exclusion from this rule is a significant development, NAA will remain vigilant for future efforts to regulate industry operations by the FTC. NAA thanks our affiliate partners and members for their steadfast commitment to fighting thi s regulatory overreach.
Strategies for Attracting and Retaining High -Performing Employees
“An organization’s most valuable asset is its people...”
December 21, 2024
Acquiring high-performing associates can be a difficult undertaking. Keeping them with an organization can be even more challenging. Readily aware of this notion, the rental housing industry is taking steps to make property management roles more attractive and a place where associates have the opportunity to progress.
A revolving door of employees is counterproductive, naturally, and properties will certainly feel the time burden and cost impacts of replacing positions every eight months. That’s why offering robust learning and development resources, unambiguous job roles and a clear path for growth is paramount, according to panelists at the Apartmentalize 2024 session “Unlocking Potential: Strategies for Attracting and Retaining High -Performing Employees.”
“An organization’s most valuable asset is its people, so finding the right people for the available positions is vital,” said Jasmyn Sylvester, Vice President of Property Management East for Pine Tree. “In today’s workforce, demands on employees are at an all-time high. With that in mind, candidates recognize they can ask for more and they don’t have to settle for any and everything.”
That further puts the onus on owners and operators to offer much more than a bare -bones experience when recruiting potential talent. Whereas some associates were content in the past to get the proverbial foot in the door and take any role, that is seldom the case in the current job climate.
“We’re having to be a little more creative with our recruiting and staffing efforts,” Sylvester said. “Finding the right fit largely consists of looking at which roles are available, and the harder the qualifications are to meet a certain role, the harder it is to find a good fit. Good fits matter to organizations, and you want to make sure that whoever you bring in is right for your work - culture environment and the right fit for the position.”
To that end, Sylvester noted that property teams are being “more intentional” about who they bring aboard. And while a wide range of personality types have the potential to be successful fits, the industry certainly has a desired skillset that many operators seek in their recruiting efforts.
“In the property management business, we’re really looking for people who have the ability to think on their feet,” said Benjamin Underwood, Director for Greystar. “What we do isn’t rocket science, but it does require some tenacity, someone who can think q uickly, make decisions autonomously and have the ability to grow within your organization. Ultimately, we’re not looking for a culture fit we’re looking for a culture add.”
In the effort not only to fill positions but also hire associates who will add increased value to them, the panelists agreed that offering career development resources is integral. This includes internal training, mentorship programs, goal setting and impl ementing tech to help make the routine parts of the job easier. Panelists urged operators to challenge associates to continue their career development and to become part of industry associations to further continue education and fuel professional developme nt.
Dawn Carpenter, Broker-Owner of Dawning Real Estate Inc., noted the Bureau of Labor Statistics showed a 5% uptick in new property management hirings. So, while the sector is active, it remains something of a struggle to attract and retain high -performing associates.
“Attracting good, qualified help that wants to be at your company is so important,” Carpenter said.
Paul Willis is a Content Director for LinnellTaylor Marketing .
GIVING THIS SEASON
SIOUX FALLS -December 10th
Collected Winter Wear
Delivered to: Bishop Dudley and Union Gospel Mission
BLACK HILLS - December 17th
Collected $1,000 for
A partment Demand Was a Positive in 2024
December 10, 2024 by Jordan
Brooks with ALN Data
Incredibly, another year is about to be in the books. The massive quantity of new multifamily supply this year was arguably the headline metric for 2024. Right behind, though, would be the substantial improvement in apartment demand. This year continued an upward trend that began in 2023, but on a more impressive scale.
All numbers will refer to conventional properties of at least fifty units. Price class represents the current classification for properties.
View the full monthly Markets Stats PDF
National Apartment Demand
Apartment Demand by Price Class
An aspect of demand performance this year that has been encouraging has been the broad -based nature of improvement across price classes. Each of the four price tiers has improved year- over-year. Furthermore, all but Class D have essentially returned to their pre -pandemic levels.
Regional Demand Differences
When adjusting for market size by calculating net absorbed units as a share of existing conventional stock, the Sunbelt remained a standout. Nine of the top fifteen markets in the size -adjusted metric were in the Sunbelt – led by Abilene, TX and Myrtle Bea ch, SC. The Mountain West was also well represented with areas like Boise, Rapid City, and Salt Lake City among the demand leaders.
Takeaways
While some ground remains to be made up between this year’s net absorption and that of the last few pre-pandemic years, the industry has been on an encouraging trajectory. After bottoming out in 2022, multifamily demand has been on a steady two -year climb back up the mountain.
FOR FULL ARTICLE, go to https://alndata.com/apartment- demand-positive2024/?utm_source=email&utm_medium=read%20the%20full%20article&utm_campaign=202412nl - c
SDMHA BUYERS GUIDE
RENTAL EVIEW
PO BOX 90327 • SIOUX FALLS, SD 57109
CHANGE SERVICE REQUESTED
A BREATH OF
Two free virtual summits with new and revised content each day
TUESDAY WEDNESDAY 2025 MULTI-UNIT HOUSING
PRE-REGISTRATION IS REQUIRED BY FEBRUARY 10, 2025. healthconnectsd.org/muhsummit Or call Health Connect at 888-761-5437 February 18, 2025 12–3 PM (MST) | 1–4 PM (CST) February 19, 2025 8 AM–12 PM (MST) | 9 AM– 1 PM (CST)
LIVABLE SMART TIP
Six free SDREC CEU’s when attending the two 2025 required courses! The Summit will address property management skills and current policy trends, including education on tobacco and other substances in South Dakota.
Preparing for winter storms means more than just clearing gutters and removing debris from flat roofs. Take a hard look at trees and other large plantings around your properties. Dead limbs can fall and severely damage buildings or block roadways. Because it can be harder to tell if a limb is dead or alive in the leafless winter months, try this simple branch test. Break a few smaller branches on the questionable limb; if they snap and break quickly without arching, they are dead. Looking for more ways to save? Come save with Livable - learn how we can increase your profit margins today at www.livable.com
