Metro Rental Housing Journal - February 2014

Rental Housing Journal Metro

Feuruary 2014

2. Social Media and Marketing

to Reduce Child Lead Poisoning

3. Property Ownership and Property Management Outlook 2014

14. Apartments.com National Survey Reveals 2014 Moving Trends: Would Miley Cyrus Be A Wrecking Ball To Moving Plans?

5. Happy New Year for 2014!

15. Moisture and that horrible word “MOLD”

6. RHAO President’s Message 8. Focus on the Prospective Resident

16. Favorable Strategies for Real Estate Investors in 2014

10. IREM Looks Back on Positive 2013 Legislative Results

17. Resolve to Recycle in 2014

11. Getting the Lead Out: Local Efforts

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC

PORTLAND/VANCOUVER

Published in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association

Portland Apartments Love this Increasingly a Landing Spot for Job West Coast Exchange Capital

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ayrolls in Portland will surpass the pre-recession peak this year as corporations expand in the area, including some headquarters operations. Growth at Portland-based companies is particularly encouraging after a handful of Fortune 500 firms relocated from the metro during the downturn to cut costs and consolidate elsewhere.

Portland up 2 places: 2014 rank: 10 2013 rank: 12 Nike, one of the metro’s most recognizable employers, recently idled expansion plans to pursue an even larger campus extension. The original plans would have created more than 1,000 new jobs in the market.

Daimler Trucks North America, meanwhile, will consolidate operations on Swan Island, adding hundreds of temporary construction jobs when the project breaks ground this summer. An additional 400 permanent white-collar jobs will be created by the expansion, supporting apartment operations in the area. While job growth accelerates, apartment completions will also pick up to meet demand. This year’s deliveries will be the highest in more than a decade as developers attempt to release pressure on the tight apartment market.

Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327

The infusion of out-of-state capital has compressed cap rates in the metro, while strong operating conditions have narrowed value-add opportunities to repositioning plays.

To achieve outsized returns, patient local investors may find deals that require a significant capital infusion in addition to management improvement. Buyers willing to upgrade landscaping and units by making a moderate investment per door will target properties in Beaverton, Tigard or near downtown. Stabilized apartments will generate bids from out-of-state investors seeking arbitrage plays. Quality listings can be

Current Resident or

PRSRT STD US Postage PAID Portland, OR Permit #5460

found for average cap rates near 5 percent, 50 to 75 basis points above similar properties in Northern California and 25 to 50 basis points above Seattle properties. Cooling rent growth in the primary West Coast markets will encourage additional investors to adopt this strategy.

Market Forecast: Employment: 3.1% p Construction: 1,000 p Vacancy: 30 bps p Effective Rents: 3.8% p continued on page 3

’m going to bet that you probably haven’t heard many people say that they love being a landlord. If anything, you’ve heard the cons, hatred, and horrific stories of doing such. But, in a world where there is so much emphasis on negativity, I’d like to bring our attention for a second to some of the positives of the property management industry. So, whether you’ve chosen to be a landlord as a career, or have been lucky enough to have inherited the job of managing rentals, there are many benefits that go along with being in this business.

First, and probably most obvious, being a property manager creates wealth. There is no denying that owning and managing property over the long term is a great money earner. There will always be a demand for housing. However, the earning potential will fluctuate with the state of the economy and various conditions within th4 housing market. In good credit conditions, there will be a higher rate of owner occupation and increasing capital values. In more constrained times, there will be more renters with higher rents. Real estate investments are arguably the most stable and secure types of investments you can make. As property owners, you are able to use tenants’ money to pay your mortgage and build your equity, so that you continued on page 7

Advertise in Rental Housing Journal Metro Circulated to over 6,000 Apartment owners, On-site, and Maintenance personnel monthly.

Call 503-221-1260 for more

RENTAL HOUSING JOURNAL METRO Pam McKenna

Multifamily NW President

16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 503-213-1281, 503-213-1288 Fax www.multifamilynw.org

Social Media and Marketing

By Pam McKenna, Multifamily NW President

W

hy is social m e d i a important to your business and how does it play a role in marketing? Social media is a low cost way to communicate with your customers, both current and future. The number one goal of social media is to build relationships and connections. Brian Solis, social media expert states, “Welcome to a new era of marketing and service in which your brand is defined by those who experience it.”

Your connections and relationships help to build exposure to your com-

EDUCATIONAL OPPORTUNITIES February 3, 2014 1:00 PM 5:00 PM Oregon Landlord/ Tenant Law Part I (Portland, OR) February 7, 2014 9:00 AM 1:00 PM NALP: Legal Aspects (Portland, OR) February 14, 2014 12:00 PM - 1:00 PM It's the Law Lunch Time Series: Rental Agreements & Addendums - The Latest & Greatest (Portland, OR)

munity.

The last time I was out of town, we were looking for a good place for dinner. I turned to Monocle on Yelp to help with my search and found ratings from other customers as well as comments on their dining experience. I was able to pull up the menus, find pricing and even read comments on what attire would be appropriate for the restaurant. We were pleased with the results and truly enjoyed our dinner, posting our experience on Yelp’s site.

Statistics on social media reveal how much this has integrated with our lives which includes the apartment industry: Facebook has over 1.19 billion active users monthly; 72% of online adults use social net-

February 17, 2014 1:00 PM 5:00 PM Oregon Landlord/ Tenant Law Part II (Portland, OR) February 18, 2014 9:00 AM 2:00 PM Management of Residential Issues Part I (Portland, OR) February 19, 2014 12:00 PM - 1:00 PM PDX Monthly Luncheon: New Rules for Healthcare (Portland, OR)

working sites; 9 billion photos are uploaded to Facebook monthly; You Tube reaches more US adults ages 18-34 than any cable network; 60% of American adults own a smart phone; Linked In experienced 105% growth between 2011 and 2013.

Social media takes time and care-

ful strategic thought, it does not happen by accident. You will need to purposefully integrate social media into all marketing and branding efforts creating a consistent and relevant experience for your customers.

February 21, 2014 9:00 AM 1:00 PM The Leasing Interview and Qualifying Residents (Portland, OR)

February 26, 2014 9:00 AM 2:00 PM Management of Residential Issues Part II (Portland, OR)

February 24, 2014 8:00 AM 12:00 PM Mold Awareness & Remediation (Portland, OR)

February 27, 2014 9:00 AM 2:30 PM Property Maintenance for Managers (Portland, OR)

February 25, 2014 1:00 PM 4:00 PM Law & Rule Required Course [LARRC] (Portland, OR)

February 28, 2014 9:00 AM 1:00 PM New Hire Training Introduction to the Industry (Portland, OR)

...continued on page 5

March 6, 2014 8:00 AM - 5:00 PM Maintenance Fair 2014 (Portland, OR)

OREGON NOTICE OF NONCOMPLIANCE M017 OR Take advantage of this new form written for the law changes effective January 1, 2014. The Notice of Noncompliance is designed to document the seven noncompliance actions for which the Oregon Landlord Tenant Act allows a landlord to charge a fee: • Late Payment of a utility or service charge • Failure to clean up garbage/rubbish/waste • Failure to clean up pet waste • Parking violations • Improper use of vehicles within the premises • Unauthorized pet capable of causing damage to persons or property • Smoking in a clearly designated nonsmoking unit or area of the premises The new rules are that the 1st notice of the noncompliance is a written warning with no fee assessed. Landlord must serve the 1st notice within 30 days of the noncompliance action by the tenant. The 2nd notice served may include a fee up to $50 for the same or similar conduct within one year of the 1st noncompliance. The 3rd or subsequent notice for the same or similar conduct within one year of the 1st notice may also be up to $50 plus 5% of the current monthly rent.

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Rental Housing Journal Metro • February 2014

RENTAL HOUSING JOURNAL METRO

Property Ownership and Property Management Outlook 2014

By Marc Courtenay The year 2013 will go down in the record books as a good year for both owners and managers of residential income properties.

As I wrote recently in an article titled, It’s Tough to Afford to be a Renter These Days, “Housing affordability doesn’t look too promising as 2014 begins. If you listen to the National Association of Realtors the opportunity to be a homeowner hasn’t been this affordable in a long time.”

If you’re looking to sell a home, 2014 may be a good year though probably not as good as 2013. But if you’re looking to buy, 2014 will likely be a better year than 2013.

These are just some of the expectations that Jonathan Miller president and CEO of Miller Samuel, a real estate appraisal and consulting firm, shared with The Daily Ticker at Yahoo.com.

“Take home prices, which have been rising at a rate of 10%-12% — depending on which data you use, for example.” Miller says home prices will rise half as much in 2014 because more supply will come on to the market. “Inventory is now below

Rental Housing Journal Metro • February 2014

the usual six-month average, credit remains tight and unemployment and underemployment will remain high even if they’ve declined over the past year.

“How can we have price growth that we didn’t see in decades? It doesn’t make any sense,” Miller explains in the video above. About 40% of Americans have low or negative equity in their homes, says Miller. “They can’t trade up, make a lateral move [or} downsize, so they sit.”

And those who have the resources and good credit to buy will find that mortgage rates are higher. This is mostly due to the Fed’s recent decision to reduce its purchases of Treasuries and mortgage-backedsecurities (MBS). As I’ve stated many time before, qualifying for a new loan is and will continue be harder than in recent years.

“Under the Dodd-Frank financial reform law, lenders are required to meet new underwriting standards for “qualified mortgages” (QM) if they want greater protection from lawsuits. A QM loan must have a regular schedule for payment of principal and interest and fees paid by the borrower can’t exceed 3% of

the loan amount and monthly payments can’t exceed 43% of the borrower’s gross income” Miller explained.

The new rules “will continue to slow the momentum of improvement” in the housing market, says Miller. They will “bog things down for the first half of the year...an adjustment period [for rules] that is “probably a necessary evil.” The hope, of course, is that the new regulations will help protect the financial system from a crisis like the one in 2007-2008.

“These new rules will also impact Fannie Mae (FNMA) and Freddie Mac (FMCC) — the government sponsored enterprises that are still the backbone of the mortgage market. They buy about two-thirds of new mortgages and bundle them into mortgage-backed securities for sale in the secondary market. Fannie & Freddie will buy only mortgages that meet most of the QM criteria.

In addition, Fannie and Freddie are raising the fees they charge mortgage lenders in exchange for guaranteeing new loans. The increase will make Fannie & Freddie-backed loans more expensive, which will create more opportunities for private com-

panies to compete in the same mortgage market, says Miller. That’s “taking our medicine,” says Miller. To read the rest of this insightful interview and watch the video click here.

So 2014 looks like a more challenging year for both property owners and managers, but don’t let that worry you. The flip side and the silver-lining is that owners who have invested in areas where vacancy rates are low will still find plenty of desperate renters wanting to become residents.

For property managers, whether your region has an abundance of potential renters or a deficit, if you’re a smart competitor with the latest and best technology, software and marketing strategies, you’ll outshine your competition.

Being a big proponent of cooperation versus competition, I’d recommend that property managers network with their peers to learn what’s working and how to cooperate your way to success. If you help your competition by referring business to them they’ll do the same for you.

Why? Sooner or later you’ll find a prospect who wants to rent in an area where you have nothing available.

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RENTAL HOUSING JOURNAL METRO

Landing Spot...continued from front page 2014 Market Outlook • 2014 NAI Rank: 10, Up 2 Places.

Portland’s low vacancy rate helped propel the market into a top-10 position.

• Employment Forecast: Job growth will accelerate to 3.1 percent this year as 31,800 positions are created, exceeding the 30,100 jobs added last year. • Construction Forecast: Developers will ramp up construction to 3,000 rentals in 2014, an increase from 2,000 units last year.

• Vacancy Forecast: Vacancy will remain very tight in 2014, though construction will push up the rate 30 basis points to 3.5 percent.

• Rent Forecast: Rent growth will trend above the national rate as effective rents finish the year at $1,026 per month, a 3.8 percent annual rise.

• Investment Forecast: After much of the rent growth has been realized in primary markets and cap rates hover near all-time lows, some buyers will target Portland to allocate 1031-exchange capital for higher returns.

Marcus & Millichap

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Rental Housing Journal Metro • February 2014

RENTAL HOUSING JOURNAL METRO

Social Medial...continued from page 2 A few tips from experts: • Make sure your content is viewable on mobile devices including images and videos.

• Plan ahead and map out how often you will connect with your customers by posting fresh content.

• Create content that resonates with customers keeping it relevant.

• Monitor and listen to comments social media is just people talking to people and sharing their perspective. This can have a big impact on loyalty and purchasing decisions. If you treat your customers well they will talk about it.

Don’t view negative comments as a crisis but an opportunity to respond and improve.

• Engage with your customers and let them know you value their input.

• Have fun! Create games online or a community challenge that will engage your residents. An example one community implemented included a property scavenger hunt to find a special yellow rubber ducky. The first resident to find the hidden duck won a $50 gift card and had their photo posted on the community Facebook page.

• Cross-promote with local businesses suggesting ideas of places to shop, dine and play. By partnering with your local businesses you can offer a deal of the week adding value for the residents to live at your community.

Rental Housing Journal Metro • February 2014

The real value of social media is in its ability to help you cultivate relationships and build trust with your customers. Using social media to connect and engage with people is the most effective tool when you focus on adding value as opposed to self-promoting. Through this process you create a picture of the lifestyle and experience you can expect to have living at your community.

David Butler from Social Media Made Easy sums it up, “Ultimately, a positive social media presence will draw in more prospective residents to visit and tour the community.”

How important is social media in our business today? What we do know is that people are connected and talking on social media in growing numbers. They are sharing their experiences. The question is… are they talking about your community?

If so, what are they saying? Some choose to avoid social media personally, but in business you need to be proactive.

Third party companies can help you manage your social media and more organizations are hiring these firms to stay on top of their community’s social media presence. This can be an effective way to manage the process, maintain consistency and improve your customer’s experience.

Happy New Year for 2014!

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e have been waiting for a new beginning for some time. 2013 was good, and much better than previous years.

Let’s focus on this year as being even better. So what does “being even better” mean?

In all probability, this will mean different things to each one of us.

However, I would venture to say that there will be a few items that we would nearly all appreciate. For example, what about more considerate tenants? How about 10% or more rent increases? How about no maintenance or repair surprises?

There are undoubtedly more examples I could present. But are these really realistic? Could we raise all our rents by 10%? Really? Would you expect tenants to be more considerate of landlords? Think about how many of them are in survival mode, only one paycheck away from being unable to pay their rents. Our properties will always need mainte-

nance or repairs. A new home might have a poor roof installation and experience a slow leak that after months of soaking the attic insulation finally shows a wet spot on the ceiling.

The bottom line is that running our rental business could always be better. Being a landlord means being prepared for surprises. Managing rentals means knowing the laws and diligently following them. Having tenants means being sensitive to them and treating them fairly.

2014 gives us another opportunity to be better landlords, improve the quality of our tenants, our units, and our bottom lines. I’ve said this before, and I say it again, be as knowledgeable as possible, treat people with respect, and follow the law and Fair Housing laws diligently. Focus on 2014 as being the best year you have ever experienced, whatever that means to each of us

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RENTAL HOUSING JOURNAL METRO President • Elizabeth CarpenterTreasurer • Jon Moon Office Manager • Cari Pierce Member Services • Teresa Carlson Bookkeeper • Pam Van Loon

Elizabeth Carpenter 10520 NE Weidler Portland, OR 97220 (503) 254-4723 • fax (503) 254-4821 info@rhagp.org http://www.rhagp.org

RHAGP President

RHAO President’s Message

Liz Carpenter talks about changes at the RHA and building member value.

Big changes are in store for the Rental Housing Association of Greater Portland! After a lot of work, your board of directors is excited to share with you in the coming weeks a new fresh coat of paint to the RHA, beginning with a name change to Rental Housing Alliance Oregon. Our sole goal is to increase member value and in so doing, show Oregonians the RHA is the leader in the rental housing industry.

So why change the name? Easy: The abbreviation RHA stays the same. Adding 'Alliance' keeps those who don’t know us from being confused with other similar organizations. Rebranding will differentiate us and let us be clearer in our public

communications.

The second reason is our influence is growing and so will our membership. The Rental Housing Alliance Oregon allows us to be bigger than just Portland; we are able to serve the industry across Oregon.

Rebranding allows us to talk to our members and inform them of our new services and some old services many people forgot we offer. We want to increase member value, become the one stop shop for information, education, and service to our members, and build trust that our organization is as professional as we all are in our individual businesses.

You will see a new logo, updated colors, a fresh and current website that will be easier to navigate. Our greatest strengths have been educa-

Upcoming Class Info Law Changes in Tenant Screening by: Marcia Gohman - National Tenant Network Tuesday February 25, 2014 at 6:30pm at Standard TV & Appliance, 3600 SW Hall Blvd., Beaverton, OR 97005.

Marcia Gohman with National Tenant Network will review basic screening processes, including fair housing,protected classes, accepting applications, and screening criteria.

She will cover the changes the law has made in acceptingor denying an applicant based on criminal background and eviction history’s. If you have taken a class from Marcia before you know that the class will give you a lot to think about and will not be boring! Come learn from and laugh with Marcia as she shares her knowledge, experience and stories about the tenant screening process. 1 Continuing Education Credit Member, $25.00 NonMember $35.00 Register by Friday February 21, 2015 and receive a $5.00 discount on the price of the class.

Make Your Rental Business Profitable Thursday, March 13, 2014 - 06:30 RHA Office, 10520 NE Weidler St., Portland, OR 97220 Dana Brown of Full Spectrum Residential Services will show you how to improve our financial success in the rental property Industry. The cost for this class is $25.00 for members and $35.00 for non-members. Register by March 10, 2014 to receive a $5.00 discount on the price of the class. 1 Continuing Education Credit 6

Code Upgrades, How it Affects You Tuesday, March 25, 2014 - 06:30 Standard TV & Appliance, 3600 SW Hall Blvd., Beaverton, OR 97005 Joe Squires of Squires Electric will go over code upgrades in the Electrical Industry and how it affects you and your rentals. He will also be reviewing Electrical permits and licensing and when its required.

Members $25.00 Non-Members $35.00 Register by Friday March 21, 2014 to receive a $5.00 discount on the price of the class

tion, forms, and keeping our members current on issues before the city, the county, and the Legislature. The new website will make it easier to find information and it will do one more thing: It will show that our members are warm, professional people, who care about our communities. Creating member value is making sure we as landlords are not on the defensive every time an issue comes up regarding affordable housing.

We have a new slate of directors to the board. Please join me and welcome Dana Brown, Alita Dougherty, Cathy Galuza, Katie Poole-Hussa, and Matt Schiefer. We are an active bunch of volunteers who are leading our organization into its 87th year of service! Our board gives a tremendous number of hours of service to RHA and we would not be poised for a successful 2014 without all the foundation work the board did in 2013.

I urge you to get involved with the RHA. We are here to serve our members and make them proud. As an organization we are focused on our communities, our businesses, and how we present the industry to

the greater public. I’m confident good things are to come. Remember, since 1927, the Rental Housing Alliance has set the standard for community participation by landlords providing affordable and quality housing for Oregonians. That’s our heritage, and we’re going to build on it!

Terminating a Tenancy Basics Thursday March 20, 2014 -11:30am RHA Office 10520 NE Weidler Portland OR 97220. Katie PooleHussa of Landlady Katie and Landlord Solutions, Inc. will present the basics of getting rid of tenants, both the good ones and the bad ones. Whether your tenants haven't paid their rent, the rental has been sold, or you see a cat in the window upon driving by your "no pet" property, Landlord Solutions will cover the common termination notices and their timelines. Join us to learn more ways to utilize the state-specific termination forms that the Rental Housing Alliance Oregon has to offer. 1 Continuing Education Credit Member, $25.00 Non-Member $35.00 Register by Monday March 17, 2014 and receive a $5.00 discount on the price of the class.

Rental Housing Journal Metro • February 2014

RENTAL HOUSING JOURNAL METRO

Love

...continued from front page

can increase the cash flow to buy greater properties and/or create a stream of retirement income. As a property manager, you can increase rents regularly to match current market rent rates, and your management fee based on gross rents will increase simultaneously with your client’s income. It really can be a win-win situation.

Secondly, real estate is real.

Managing rentals forces you to become more knowledgeable about property upkeep and home repairs.

No matter how involved you may be in caring for the actual residence, you will have to understand something about repairs and maintenance, even if you hire out the work to be done by others. So, whether you’re lining up the contractors, or putting in your own elbow grease, you’ll notice that you are more diligent about ensuring quality work.

Fixing up an older property, or turning over a rental that had been trashed or damaged by past tenants, can instill a true sense of accomplishment.

The third reason why I love what I do is the people. I like my tenants.

I would be lying if I said that I’ve liked every resident I’ve ever rented to, but if you can hit it off initially, working with them during their tenancy can be quite a pleasure. Some of my tenants have even become friends as well as business acquaintances. Providing nice, well-kept homes at affordable rates is powerful. I’ve had the pleasure of supplying homes to some who otherwise wouldn’t be able to rent anywhere else based on their circumstances.

Experiencing their joy of having a

place to call home fueled my passion and purpose of being a landlord. I have been able to enjoy watching many families grow together through marriage, children and other life accomplishments. And let’s not forget the hundreds of encounters with some very interesting people who have either inquired about a property, or the many contractors that I employed to perform maintenance duties -- many of whom I would have never met if I were not a property manager.

These are only a few reasons why I love being a landlord. I encourage you all to take the time to step back from the weight of the job, and ask yourself, “Why am I in rental housing?” We all know that being a landlord is complex, but I believe that if you’re able to outline the positives of the industry for yourself, then when the unavoidable negatives arise you will be able to make decisions based on love and not hate.

Katie Poole – Hussa is a Licensed Property Manager, Continuing Education Provider and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at Katie@ SmartPM.co

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RENTAL HOUSING JOURNAL METRO

Focus on the Prospective Resident

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ife is full of interruptions. Yet we must find a way to strike a balance so that all the URGENT things coming at us do not pull us away from the most important tasks at hand. In the property management industry, there are urgent owner requests, resident complaints, maintenance emergencies and employee disputes; just to name a few. While all of these issues must be handled in a prompt, professional manner, the business of renting apartments must still remain a priority of the leasing office. Since interruptions are so common in this industry, I am often asked for advice on how to handle these situations. I would like to respond by sharing the story of two entirely different shopping experiences: When I placed my first call, I was just getting ready to hang up when the phone was answered on the seventh ring. The consultant spoke so quickly, that I could only make out the name of the community before

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she said, “Please hold.” When she came back on the line she said, “Sorry about that. I’m working alone and the phone is ringing off the hook!” She asked how she could help me, and I inquired about apartment availability. She said there were a couple of 2 bedrooms open, and then said, “Hang on and I’ll grab my book.” She set the phone down, without putting me on hold, and I overheard how she raised her voice to someone in the background. When she came back on the line she apologized for the delay, and immediately began to quote pricing. She asked if I would like to come by, and I agreed to meet with her in an hour. The consultant offered directions and then asked for my name and telephone number; “in case something comes up.”

At the second place I called, the phone was picked up on the second ring. The consultant clearly identified the community by name, and introduced herself. She asked for my

name early in the conversation and used it to establish a rapport with me. I could hear a telephone ringing in the background and said, “I don’t mind holding if you need to get that.” She replied, “Thanks, but that’s what I have voice mail for.” I felt like I was the reason she got out of bed that morning, as she made me feel like I was her most important business for the day! She took the time to inquire about my needs and then described an apartment that would best meet my specific requirements. The consultant invited me to come by to see the apartment, and let me pick a time that was most convenient for me.

I arrived on time, within an hour, at the first community that I called.

There was a sign on the door stating that someone would be back in approximately 10 minutes. I tried the door and it was unlocked, so I went inside and began to tour the cabana while I was waiting. The leasing consultant returned shortly and seemed

surprised to see someone waiting.

She did not remember our appointment, until after I reminded her of our recent phone contact. She apologized and offered me a seat, stating that there had been several maintenance emergencies earlier that day.

In fact, she was waiting for a water heater to be delivered at any moment.

The consultant did not obtain any further information from me, but recalled we had discussed a 2 bedroom. She pulled out a couple of floor plans to go over with me, but during this process the phone kept ringing, and she repeatedly answered it. She did not excuse herself when picking up the phone, and each time, I was left sitting there to wait until she finished each call. Just as we were heading out to view the apartment, the contractor with the water heater showed up. For a moment, the consultant seemed unsure as to what she should do. She asked the contractor to “wait a second,” and continued on page 9

Rental Housing Journal Metro • February 2014

RENTAL HOUSING JOURNAL METRO

Focus ...continued from page 6 then turned to me and explained that she was going to have to let this man into an apartment to replace a leaky water heater. She said, “It’ll only take a minute.” She offered me a seat in the cabana while I waited and told me there were soft drinks in the refrigerator. She said I should “help myself.” I waited for over 10 minutes, and then figured that I had come at a bad time. I decided to leave, and showed myself out.

At my next stop, the consultant greeted me warmly and invited me to have a seat at her desk. She pulled out a guest card she had started and handed me a packet of literature.

This packet included everything from floor plans to area information.

She said she had also enclosed the address and phone number of the elementary school since I had mentioned my son was in kindergarten.

As she began to ask more specific questions about my needs, the telephone rang several times. The consultant let voice mail pick up the calls, but then she finally reached over and turned the ringer off. She said, “I don’t know about you, but that’s really distracting for me.”

After we completed the guest card, she asked if I would like to see the clubhouse area before we headed out to take a look at the model. As we stood, a mail carrier came in with several packages and stated that

Rental Housing Journal Metro • February 2014

they were missing apartment numbers. The leasing consultant was very kind as she explained that she was just going out to show an apartment. She invited him to come back in about 20 minutes or said he was welcome to leave the parcels and she would look up the apartment numbers when we were done.

As we were walking the grounds on the way to the model apartment, the consultant was approached by two maintenance workers who had questions about a problem. She was very professional as she graciously asked them to wait, and prevented them from discussing the problem in front of me. Once we reached the model apartment, the consultant gave a flawless presentation of its many unique features and advantages. She was able to relate specific features as personal benefits because she had stayed focused during the qualifying portion of our visit. She remembered AND noted things that were most important to me. The consultant was able to make strong, confident closing attempts, since she had sought to satisfy my needs by giving me her undivided attention.

How do you make a prospective resident feel important, when you have a multitude of urgent interruptions crying out for your attention?

Are you able to focus on the procontinued on page 13

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RENTAL HOUSING JOURNAL METRO President - Cammie Allie, CPM • President Elect - David Genrich, CPM • Treasurer - Stephanie MacPherson • Additional Officers - Julie Muir, CPM, Traci McCauley, CPM, Kathi Pearce, CPM, Tammy Mills, ARM, Kathi Pearce, CPM, Jeanna Rae Petty, CPM, Jennifer Gerritz, CPM, Chris Pasteur, ARM • CPM Admissions Contact - Traci McConley, CPM • ARM/ACoM Admissions Contact - Tammy Mills, ARM AMO Admissions Contact - Cliff Hockley, CPM • Education Contact - Kathi Pierce, CPM • Income/Expense Contact - Nutan Engels, CPM and Michelle Schiffer, CPM IREM Chapter #29 11575 SW Pacific Hwy Suite 210 Tigard, OR 97223 (503) 228-0002 (503) 406-2003 fax

IREM Looks Back on Positive 2013 Legislative Results

(Chicago, Jan. 16, 2014) – The Institute of Real Estate Management (IREM®), strongly committed to legislative advocacy, helped to generate significant legislative advances in 2013 of benefit to its members, other commercial real estate professionals and allied interest groups. Among the most notable of these achievements, some resulting from collaboration with the National Association Of Realtors® (NAR) and other groups, are these:

• Carried Interest Tax Treatment –

IREM participates in a coalition that monitors potential changes to carried interest policy and, in addition, 318 IREM® Members lobbied the issue last April on Capitol Hill. They urged legislators to vote against any initiatives that would change tax rates in ways that potentially could discourage future commercial real estate investment, particularly in an already fragile mar-

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ket. Through their efforts, they helped to keep carried interest rates unchanged in 2013 for individuals/couples whose adjusted gross income (AGI) is below the $400,000/$450,000 level (for those who are over this AGI threshold, capital gain/carried interest rates increased slightly from 15 percent to 20 percent).

• Marketplace Fairness – IREM

has been a vocal advocate for more equitable sales tax policies, such as the Marketplace Fairness Act (H.R. 684 and S. 743). This legislation would simplify and streamline the tax collection process for online retailers. Many online retailers have an advantage in that their tax collection is not required or regulated, while brick and mortar stores must charge and record a sales tax.

This inequity encourages consumers to buy more products online, ignoring physical estab-

lishments. took this issue to Capitol Hill, asking legislators to enact the Marketplace Fairness Act. Shortly thereafter, S. 743 was brought to the Senate floor for a vote and was approved 69-27.

This action marked a tremendous victory not just for IREM® Members, but the entire property management industry. And while the legislation must clear yet another hurdle and be approved by the House of Representatives, IREM is confident that the issue will continue to build positive momentum in 2014.

Members appealed directly to their respective congressmen to add their names to a letter urging EPA regulators not to hastily create regulations related to the Advance Notice of Proposed Rulemaking titled “Lead: Renovation, Repair, and Painting (LRRP) Program for Public and Commercial Buildings.” As a direct result of these efforts, 51 U.S. Representatives were motivated to sign the EPA letter, which was sent on May 1. In a separate but related action, IREM was represented some weeks later at an EPA hearing focused on renovation, repair, and painting activities in commercial and public buildings.

• Lead-based Paint in Commercial

• The EPA has until December 31,

• Last spring, IREM® Members

Buildings – Commercial real estate and many other industries have been concerned with this issue for quite some time. Among other initiatives in 2013, IREM®

2016 (moved back from an original date of February, 2014 for paint on the exterior of a building) to finalize regulations to continued on page 12

Rental Housing Journal Metro • February 2014

RENTAL HOUSING JOURNAL METRO

Getting the Lead Out: Local Efforts to Reduce Child Lead Poisoning

By Jo Becker, Education/Outreach Specialist, Fair Housing Council Serving Oregon and SW Washington

A

2013 study trumpets the efforts by over a dozen local municipalities across the country that have enacted local lead laws.

While other lead hazards exist (occupational, recreational, etc.), most often lead poisoning is a result of ingesting lead tainted dust, paint, or soil in or around homes built before 1978.

According to the National Center for Healthy Housing’s website: Since lead hazards are more prevalent in older and substandard housing, lead poisoning is a concrete expression of the affordable housing crisis; it is more common among poor children, children of color, and those living in older housing.

Responsible property management, enforceable housing quality standards that are both practical and cost-effective, and increased resourc-

Rental Housing Journal Metro • February 2014

es are needed to protect high-risk communities and preserve the nation’s affordable housing stock.

According to said Katrina Korfmacher, Ph.D, co-author of the study, the extent of the medical and behavior damage caused by lead

poisoning coupled with “…the realization that the economic cost of lead poisoning in the form of medical care, special education, and criminal justice are frequently borne by local communities and taxpayers – [has] given rise to several community-

based efforts to make homes lead safe.”

The study, published in the Journal of Health Politics, Policy, and Law, found that local laws can be highly effective tools to address lead hazards. By way of example, the City of continued on page 12

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IREM Looks Back ...continued from page 11 address lead-paint dust, with IREM continuing to aggressively promote regulations that it views as fair and reasonable for commercial and multifamily real estate.

ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT The Institute of Real Estate Management (IREM®) is an international community of real estate managers dedicated to ethical business practices, maximizing the value of investment real estate, and promoting superior

management through education and information sharing. An affiliate of the National Association of REALTORS®, IREM is the home for all industry professionals connected to real estate management – and the only organization serving both the multi-family and commercial sectors.

We believe that good management matters, and that well-managed properties pay dividends in terms of value and in the quality of life for residents, tenants and customers. We believe in professional ethics. We believe in the power of knowledge and the importance of sharing it.

IREM offers a variety of membership types for professionals of every experience level, from on-site managers to high-level executives. Our credentials, earned by meeting high standards of

education, experience, and ethical business practices, include: Certified Property Manager® (CPM®), Accredited Residential Manager® (ARM®), Accredited Commercial Manager (ACoM), or Accredited Management ORGANIZATION® (AMO®).

Since 1933, IREM has set the standard for best practices in real estate management. Today, IREM® membership includes 19,041 individual and 580 corporate members. To learn more about IREM, call (800) 837-0706, ext.

4650 (outside the U.S. call (312) 3296000), or visit www.irem.org.

- See more at: http://www.irem.org/ about-irem/media-resources/ PR-01162014#sthash.AkWmFMcg. dpuf

Lead ...continued from page 11 Rochester saw a 68% decline in the number of children with elevated blood lead levels since the city’s law went into effect in 2006.

“Lead safety is largely a function of maintenance – intact leaded paint is typically not hazardous unless it is disturbed and released into the environment;” according to Korfmacher. “…lead hazards are related to how owners maintain houses that contain lead paint… The Rochester model accepts as its premise the critical need to gain entry to the highest risk housing. This was the rationale for targeting rental housing over owner occupied and for establishing a higher standard for inspection within geographically designated high risk areas.”

Visit www.urmc.rochester.edu/ news/story/index.cfm?id=3823 to read the University of Rochester Medical Center article on the study.

In an informal study of our own,

FHCO found that 37% of landlords still don’t know it has been illegal under the federal Fair Housing Act to deny housing to an applicant simply because there are children in the household since 1988, even in pre-1978 properties. You can also find additional information on fair housing law and familial status protection at www.

FHCO.org and www.FHCO.org/families.htm, respectively. We also offer lead-related information, including required pamphlets and disclosure forms as well as additional lead articles at www.FHCO.org/lead.htm.

This article brought to you by the Fair Housing Council; a nonprofit serving the state of Oregon and SW Washington. All rights reserved © 2014. Write jbecker@FHCO.org to reprint articles or inquire about ongoing content for your own publication.

To learn more…

Learn more about fair housing and / or sign up for our free, periodic newsletter at www.FHCO.org.

Qs about this article? ‘Interested in articles for your company or trade association?

Contact Jo Becker at jbecker@ FHCO.org or 800/424-3247 Ext. 150 Want to schedule an in-office fair housing training program or speaker for corporate or association functions?

Visit www.FHCO.org/pdfs/classlist. pdf

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Rental Housing Journal Metro • February 2014

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Focus ...continued from page 8 spective resident and make their needs a priority? If not, you have probably lost the sale. It would be better to phone your appointments prior to their arrival and reschedule, rather than have them come out when you know you can’t give them your undivided attention. Of course this will probably cause some “inconvenience.” However, in the long run, they will appreciate your consideration and long remember your thoughtfulness. If you were looking for a new home, how would you want to be treated?

ASK THE SECRET SHOPPER Provided by: SHOPTALK SERVICE EVALUATIONS Phone: 425-424-8870 E-mail: joyce@shoptalkservice.com Web site: www.shoptalkservice.com Copyright ® Shoptalk Service Evaluations

Advertise in Rental Housing Journal METRO Circulated to over 20,000 Apartment owners, On-site, and maintenance personnel monthly.

Call 503-221-1260 for more info.

Rental Housing Journal Metro • February 2014

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Apartments.com National Survey Reveals 2014 Moving Trends: Would Miley Cyrus Be A Wrecking Ball To Moving Plans?

Cost and Neighborhood Top List of Why Renters Are and Aren’t Moving, Dakota Fanning is Most Popular Choice for Celebrity Neighbor, and Miley Cyrus Wouldn’t Cause Most Renters to Move CHICAGO, Jan. 27, 2014 / PRNewswire/ -- The average monthly rental cost in the U.S. was $1,083 in Q4 2013, up 3.2 percent for all of 2013, according to Reis Inc. At the same time, demand for apartments remained strong as the nation’s apartment vacancy rate declined to 4.1 percent in the fourth quarter. In response to this news, Apartments. com conducted its annual survey of more than 1,500 renters to gain insights into their moving plans for 2014. The survey reveals both shifting trends in renter behavior, and a more lighthearted look at celebrity neighbor preferences.

Affordability, neighborhood and apartment size topped the list of reasons people said they are moving; close to half (46 percent) of former homeowners said they prefer renting; and internet listing services and word of mouth were named as the top two resources for renters during their apartment search.

“This year, both economic and lifestyle factors seem to be on the minds of most renters planning to move,” said Dick Burke, president of Apartments.com. “Many helpful online tools, like Apartments.com, are available to help renters make informed and responsible decisions with highly personalized searches, online video walkthroughs, the ability to post and read reviews and apps for iPhone and Android.”

Through the 2014 Moving Trends Survey, Apartments.com also learned:

• Renters who aren’t planning to

move in 2014 would change their minds if they:

• Win the lottery: 51.5%

other (or get married, or get divorced): 20.7%

• Experience noisy or annoying neighbors: 19.5% 13%

• Only 12 percent of renters plan-

ning to stay put in 2014 would change their minds (and move out) if Miley Cyrus moved in as their neighbor. “Apparently, most renters wouldn’t mind if guests at Miley’s parties have their hands in the air like they don’t care!” said Tammy Kotula, public relations and promotions manager, Apartments.com.

2. Like the neighborhood they live in: 40.8% live in: 40.8%

4. Have job security: 22.5% 5. Like their neighbors: 12.4% Why are previous homeowners choosing to rent in 2014? Supporting a rapidly growing trend, close to half of all renters (44.1 percent) previously owned a home, up from 35.1 percent in 2013 and 33.6 percent in 2012. Interestingly, homeownership preferences are split right down the middle in 2014:

• More renters would prefer • 54 percent of former homeownDakota Fanning (23.4 percent) as their celebrity renter neighbor than Ashley Greene (12.9 percent). Also, Chris Noth (15.1 percent) would be preferred as a celebrity renter neighbor over Nick Jonas (8.2 percent).

•

Why are people moving in 2014? And, why aren’t they?

This year, moving decisions were heavily steered by economic factors.

Shopping for a less expensive apartment topped the list of reasons renters are planning to move, while affordability topped the list for why renters are staying put. Other popular responses rounding out the top five reasons for whether or not to move included renter preferences, personal tastes, job security and family issues.

Apartments.com details the top five reasons survey respondents said they are moving in 2014:

ers wish they still owned a home

• 46 percent of former homeowners prefer renting

• 51.2 percent of renters (who have

never owned a home) prefer renting

• 48.8 percent of renters (who have

never owned a home) would like

to own a home right now

• When asked to check all that

apply, the majority of survey respondents see the following as benefits of renting vs. owning:

• No unexpected repairs (leaky toilet, clogged sink, etc.): 59.9%

• No or low maintenance (don’t

need to shovel a driveway, cut grass, etc.): 51.4%

• Flexibility to move: 51.3% There was a sizeable increase this year in previous homeowners who indicated that they are choosing to rent mainly because they cannot afford homeownership anymore, while the flexibility renting offers in choosing where to live remained as the number two reason for the third year in a row. Apartments.com provides the top five reasons former homeowners are choosing to rent in 2014, and compares these results to its 2013 survey. The statistics indicate the economy continues to be a driving factor for this group of renters: ... continued on page 19

1. Shopping for a less expensive apartment: 24.6% 2. Wanting to live in a different neighborhood: 13.6% 3. Looking for a bigger apartment: 12% 4. Change in marital status: 11.6% 5. Looking for a smaller apartment, or to live alone: 10%

• Move in with their significant

When asked to check all that apply, the top five reasons that rent-

14

1. Can’t afford to move elsewhere: 47.3%

• Could find affordable options: 3. Like the apartment building they

• Get a job promotion (or lose their job): 45.6%

ers said they aren’t moving in 2014:

Rental Housing Journal Metro • February 2014

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Moisture and that horrible word “MOLD”

D & Z - Don’t start the New Year with a “What Were You Thinking Moments”

I

t’s a new year, budgets are done, plans are made for our properties and we are excited to get going.

It would be great to arrive at work every day and assume that all is perfect on your property; after all, you haven’t heard any complaints.

So, why would I go looking for problems? A word of advice that can help you minimize unexpected expenses, resident heartache and court.

Suzy Manager - Dana, I was talking to a peer at another property and she said her maintenance team was being proactive with historical problems that occur at our property each year. I asked her for a specific example. She replied that this time of year the cold weather creates moisture which can cause mold issues. I thought, why would potentially create more problems and draw attention to residents?

Dana – Suzy, the natural reaction to being proactive is to fear finding bad problems? This is a normal reaction, however, a regular preventative maintenance plan can prevent issues from becoming bigger much costly issues.

Moisture, and the potential of mold, is a reality in the Pacific NW.

Rental Housing Journal Metro • February 2014

By being proactive and checking the areas of your property that are outof-sight-out-of-mind, you can correct the problem. Check your attics, garages, and any other dark cool spaces to see if you have proper ventilation in place and working correctly.

Zach, I know that you have been training maintenance teams for years on this, what are your suggestion and places to inspect?

Dana, when it comes to mold we have to remember that it doesn’t matter which type of mold spores we have. We must realize that one type or another is present at all times just seeking a nice place to land, live, eat, and multiply. These areas are typically damp dark areas with little or no circulation.

A good preventative maintenance plan should include walking units annually and looking for possible mold potential conditions such as furniture against walls, closets packed tight with items and doors shut, bathrooms with no functioning exhaust fans, single pane aluminum windows, dryer exhaust vents not working properly, and upper crawl spaces with improper ventilation.

These conditions are the number one source of the re-occurring growth problems caused by residents and poor building construction practices.

If you find growth in other locations it may be due to a physical water leak either from the exterior (gutter or downspout) issues, or broken or leaking pipes within the plumbing system.

A good rule of thumb when trying to disseminate between surface

growth and growth from a physical water source is to observe the color of the spores. Black, dark green, fuzzy white, or chalky white are typically surface growth and can be cleaned and sealed. When you start to see the broader spectrum of colors such as pink, yellow, blue, red, and orange there’s a good chance the source is a water leak within the wall either coming from a leaking pipe or from an exterior source. continued on page 19

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Favorable Strategies for Real Estate Investors in 2014 ASK THE EXPERT is a Q&A with TRANSWESTERN experts and leaders. In this edition, George Garfield, Transwestern’s West president, talks to Steven Orchard and Michelle Lee, leaders of the firm’s structured finance group in the West, about strategies for non-institutional investors in light of aggressive asset pricing, as well as current capital markets, economic and monetary conditions.

1st Quarter 2014 George Garfield: Many investors are frustrated by today’s frothy pricing of commercial real estate.

Non-institutional investors, in particular, are finding themselves outbid on acquisition targets. What is your advice to these investors?

Steven Orchard and Michelle Lee: Asset values are generally high relative to underlying fundamentals due to the ample supply of investment capital in the soft economy, making distressed assets with attractive prices difficult to find. Noninstitutional buyers can best compete for mid-cap, value-add investments, and are most likely to find those deals outside of primary markets.

Fortunately for non-institutional buyers, more capital is coming online for mid-cap deals. Equity funds and lenders are increasingly willing to transact below their stated minimum deal size. Many are forming subventures to pursue small and midcap opportunities. Some are working in secondary and tertiary markets in order to find yield.

These bigger platforms, however, want to accept less risk on smaller deals. As such, those looking for capital should proactively adapt to the demands of capital sources. For example, they might need to strengthen their sponsorship profile and financial capacity by securing a

16

co-general partner relationship. They should prepare to accept meaningful risk to their position to reassure the institutional capital provider, via such measures as personal recourse, larger equity contributions or subordinating their fees and returns. Our most successful clients today adjust to these shifting dynamics and make it easy for institutional money to say “yes.”

Garfield: Where should investors look for investment opportunities in 2014?

Orchard and Lee: We advise our clients to look at what they already own as their best investment opportunity instead of overpaying for new assets. Investing capital to upgrade or reposition current assets can create value and maintains a lower comparative cost basis than developing or acquiring new assets. Investors are advised to evaluate each property in their portfolio and reposition them for a longterm hold.

An owner seeking to redevelop an older property might need to use third-party, joint venture equity in concert with a bridge loan to fund their project. For example, one of our clients owns an industrial building in downtown Los Angeles that might garner $17 million if it was sold. But then the client would be hard pressed to find another suitable asset to purchase; a dilemma it has already

encountered. We are formulating a restructure plan in which it will contribute the building into a new joint venture; secure a bridge loan and venture equity; and redevelop the asset into a creative office building.

Our client is thereby positioned to deliver an office building for less than could a competitor that had to purchase a redevelopment property, which allows it to drive leasing with competitive rents.

A less extensive reposition may be funded with equity from the property itself, using higher leverage fixed-rate term debt. If no additional capital investment is needed, the best strategy may simply be recapitalizing the financing for a longer term hold. In any case, we encourage clients to plan for at least a five to seven year horizon with respect to their financing.

Regardless of the strategy that is ultimately selected, investors should evaluate individual assets and their portfolios as a whole to unlock capital, value and potential profit in 2014.

term fixed-rate debt is a smart investing strategy. We helped a number of clients implement this in 2013 while rates rose approximately 100 basis points. Rates are fairly stable again today, but in light of the Fed’s tapering and economic growth, many experts agree rates will increase further in 2014. It’s also important to consider the relationship between net operating income and interest rates at the time of refinancing. If rates rise and NOI doesn’t, then loan proceeds are reduced. Does the owner expect interest rates to rise next year? Will the NOI on the property increase commensurately? How will this dynamic affect their ability to refinance when the existing loan comes due? Refinancing early may be a good choice, both from an economic and risk management standpoint.

Garfield: Should owners consider refinancing assets in light of today’s capital markets?

Michelle Lee 213.430.2533 michelle.lee@transwestern.net www.transwestern.net

Orchard and Lee: Investors should be thinking about debt as an asset in 2014. One has to use leverage advisedly, obviously. But with debt this cheap and strong inflationary pressure looming in the long term, procuring long-

Steven Orchard 213.430.2528 steven.orchard@transwestern.net www.transwestern.net

George Garfield 213.430.2521 george.garfield@transwestern.net www.transwestern.net

Rental Housing Journal Metro • February 2014

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N

Resolve to Recycle in 2014

ew Year’s resolutions start in January and are often forgotten by February – without making a difference in our lives.

But there is an easy resolution that saves you money, will make you feel good and best of all – it doesn’t involve the bathroom scale.

Recycle more “stuff.” There are recycling options – most at no cost – for many things you might consider to be garbage and for other things you are just not sure what to do with.

For instance, TVs, computers and monitors can be recycled/reused in Washington and Oregon for free whether they are working or not.

Rental Housing Journal Metro • February 2014

Laws in both states require the manufacturers of TVs, computers and monitors to provide consumers with free and convenient recycling of these products. In Oregon it is illegal to throw them in the trash. To find free drop-off locations in your area go to: Washington residents www.ecyclewashington.org Oregon residents www.oregonecycles.org Apartment and rental housing managers do not have to get stuck with the cost of disposing of TVs and computers abandoned by tenants.

Use the E-Cycle program in your state to save money.

And it’s not just electronics you can easily recycle. In Washington you can find recycling options for appliances, batteries, motor oil, plastic, metal and glass containers as well as “household hazardous waste” such as paints,

pesticides, fluorescent lights and mercury containing devices like thermostats.

To find recycling options in Washington for these household items go to the searchable recycling database (1-800-RECYCLE Online) found in the link above. For the Portland metro area in Oregon, go to www.oregonmetro.gov/index.cfm/ go/by.web/id=1383.

So the next time you are trying to figure out what to do with the unwanted stuff in your house –

maybe even that bathroom scale – or stuff left behind by a tenant, look to recycle it and you’ll feel good about yourself.

If you have questions about recycling in Washington or you would like to distribute electronics recycling information to your tenants, contact Miles Kuntz (360) 407-7157, Miles.Kuntz@ ecy.wa.gov. In Oregon contact Michelle Shepperd (503) 229-6724, Shepperd.Michelle@deq.state.or.us.

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Survey Reveals...continued from page 14 • 1. Can’t afford homeownership anymore: 21.5% (up from 14.2% in 2013)

• 2. Flexibility renting offers in choosing where to live: 15% (down slightly from 15.7% in 2013)

• 3. Lost home due to foreclo-

sure or divorce: 13% (up from 11.2% in 2013)

• 4. To relocate for employment:

12.4% (down from 13.3% in 2013)

• 5. Because renting is more affordable: 10.4% (down significantly from 22.2% in 2013)

Who will renters share their apartments with in 2014? One area that seems to be a constant is renter living arrangements, which have remained nearly identical for the past three years:

• 1. Husband/wife/significant other and/or kids: 47.6%

• 2. Living alone: 42.6% • 3. Roommate(s): 9.8% About Apartments.com Apartments. com (http://www.apartments.com) is a leading national apartment Internet listing subscription service with more than 50,000 unique addresses representing millions of rental units from managed properties, newspaper classi-

Rental Housing Journal Metro • February 2014

D&Z – "MOLD"...continued from page 18

fieds and for-rent-by-owner properties.

By incorporating the most relevant products to reach renters including personalized searches and highly visual ads featuring live chat, real-time rent, online video walk-through demonstrations, professional photography, a responsive website and iPhone and Android apps, Apartments.com creates easy access to its listings. Providing unmatched exposure to its advertisers through an intuitive name, strategic search engine placements and featured partnerships and more than 120 newspaper websites and innovative emerging media, Apartments.com reaches millions of renters nationwide, driving both qualified traffic and highlyengaged renters to leasing offices nationwide. Apartments.com is a division of Chicago-based Classified Ventures, LLC. The Apartments.com network of apartment rental websites includes Apartment Home Living (http://www.apartmenthomeliving. com), a leading social media apartment website distinguished by a “live for fun” community experience, proprietary lifestyle matching and local living guides to help renters find their perfect place to live and Rental Homes Plus (http://www.rentalhomesplus.com), an online destination where house hunters who prefer to rent can choose from a robust inventory of houses, condos, town houses, duplexes and apartments from around the country.

Getting back to the preventative maintenance objectives, be sure to address all these potential conditions upon your annual inspection and within your Turnover checklist in order to be sure you are inspecting all mechanical and passive venting systems in the unit and around the property to ensure that air flow is functioning properly. This constant air flow is what inhibits mold growth by carrying mold spores out of the unit and buildings, and never giving it a chance to land and colonize.

Be diligent in constantly educating residents regarding the things they can do to help combat mold growth. Here is a short list: Open windows, use mechanical fans for a minimum of 25 minutes after showering or cooking, keep closet doors open, pull furniture

away from wall at least 6-12”, wipe down any condensation on windows and flat surfaces, and report any growth early in case there is a leaking pipe or other physical water intrusion issue.

Lastly, if you haven’t started a “Mold Log” notebook, you should.

A simple list of reported mold issues, date they were reported, what you did, and who did it can really save you down the road if things do turn ugly between you and the resident and legal questions arise as to how the issue was handled.

In the end don’t be afraid of mold, be proactive, have a clear and systematic plan of action, work your plan consistently every time, and document, document, document.

SOURCE Apartments.com

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