Arizona Rental Housing Journal July 2014 by Professional Publishing, Inc

Rental Housing Journal Arizona

July 2014 - Vol. 6 Issue 7 7. Dear Maintenance Men: 8. Shoptalk 8. Making Rent Collection Easier 9. Smoked Any “POT” Lately? 12. Arizona Bedbug Law Are You in Compliance? 13. Knowing the Limits on Collection Practices for Property Managers 15. Being a “Remarkable” Property Manager

2. Responding to Maintenance Emergencies 3. 3 Tips for Practicing Mindfulness in a Multitasking Workplace 4. How Entrepreneurs Can Increase Profit with a Hands-Off Approach 5. 5 Keys to Developing Personal Power 6. The Coach: Can Your Rental Center Walls…Sell?

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC

A Monthly Circulation To More Than 10,000 Apartment Owners, Property Managers, On-Site & Maintenance Personnel

Apartment Market Metro Phoenix Q1 2014

Court Upholds Property Owner Rights in Medical Marijuana Case

O Vacancy Rates Take Significant Drop Vacancy rates for the 1st quarter of 2014 for stabilized 50+ multifamily properties decreased from 7.3% to 6.6%. This is the lowest vacancy rate since we hit the high mark of 14.2% in Q4 2009 and a significant drop in just one quarter. Central Black Canyon is still in double digits. Of the 32 metro Phoenix sub-districts surveyed, 26 reported reduced vacancy rates! Vacancy rates for each sub-district are posted on our web site www. KLCommercialGroup.com. Rental Rates Increasing For 50 - 99 unit size apartment’s, rental rates climbed 2.5% since Q1 2013 while the 100+ unit’s only increased 1.4% over the same period. The smaller size communities outpacing the larger projects has been a strong trend. We would expect this to continue, especially with rent pressure soon to come from the apartment construction boom. The average rental rates for individually metered apartments across Metro Phoenix is shown below. Size

Studio

One Bedroom

Two Bedroom

50 - 99

$496 (1.16/sf)

$598 (0.96/sf)

$620 (0.76/sf)

100+

$560 (1.23/sf)

$695 (1.02/sf)

$710 (0.87/sf)

Continued on page 11

Professional Publishing Inc. PO Box 6244, Beaverton, OR 97007

n June 10, 2013, an eviction action was filed in the McDowell Mountain Justice Court against two tenants in a Scottsdale Apartment Complex. The complaint alleged the Defendants committed a material and irreparable breach of the lease agreement by possessing and using marijuana in the apartment. A bench trial was held on June 20, 2013, before a Justice of the Peace Pro Tem in the McDowell Mountain Justice Court. At trial, the Defendants admitted there was marijuana and drug paraphernalia in the unit, and that the Defendants used marijuana in the unit. However, the Defendants claimed that because they had been issued a Medical Marijuana Card, they were

protected under the Arizona Medical Marijuana Act (AMMA), and could not be evicted. There was no dispute that the lease agreement prohibited “manufacturing, delivering,

possessing with intent to deliver, or otherwise possessing controlled substance or drug paraphernalia.” Both residents signed the lease agreeing to those terms. Continued on page 5

Application Fees? Consider this Scenario:

our property has a policy of charging applicants to run their credit reports. Under your policy, you charge two same sex applicants $35.00 each to run a credit report, but married couples only pay one application fee of $35.00. The same sex roommates challenge your policy because they were married in New York, a state that recognizes same sex marriages, before they moved to Arizona. Is your policy discriminatory?

Current Resident or

PRSRT STD US Postage PAID Seattle, WA Permit #741

The answer is no longer as simple as no. Rather, recent developments in various state laws may skew the answer to maybe or even yes. In Arizona, we do not currently recognize same sex marriages. The Arizona Constitution is clear. Article XXX, Section 1, states: “Only a union of one man and one woman shall be valid or recognized as a marriage in this state.” Based on our constitution, one would be inclined to believe this settles the question: in Arizona we

do not recognize same sex marriages so it is permissible to require married same sex roommates to pay two application fees, while married opposite sex roommates only pay one fee. However, the analysis should not stop there. Throughout the country, various states have lifted long-time bans on same sex unions, thereby recognizing same sex couples to have the same rights as heterosexual couples. Continued on page 10

Advertise in Rental Housing Journal Arizona Circulated to over 10,000 Apartment owners, On-site, and Maintenance personnel monthly.

Call 503-221-1260 for more info.

RENTAL HOUSING JOURNAL ARIZONA

Responding to Maintenance Emergencies By Mary Girsch-Bock

ears ago, while living in Las Vegas, a summer thunderstorm wreaked havoc on my apartment. Lightning eventually struck the roof of my loft, creating a fairly significant hole in the roof. Since it was late, I placed a bucket under the hole to catch the still-falling rain and called the management office to report the damage. I left four messages that evening; none were returned. The roof was eventually fixed; five days later. Each day I prayed that the summer monsoon rains would stay away until the roof was fixed. I was lucky about the weather. Not so much about my choice of apartment communities. What really angered me was the lack of concern about a serious problem that a tenant had. I didn’t expect them to come out that evening in the middle of a storm to fix the roof. I did expect them to call me back and let me know that it would be taken care of. That lack of concern was what I put on my 30 day notice, when I chose not to renew my lease. Are you available for your resi-

dents 24-7? That doesn’t mean following up on minor issues that can be easily addressed in the light of day. It does mean that when your tenant has a legitimate concern, are you easily reachable, even if just for

The Professional Approach to Apartment Inves ng Apartment Brokers • Pre-Sale Analysis • Asset Management

some reassurance? If you’re a little confused on what constitutes a legitimate emergency, here are some issues that property managers should respond to as quickly as possible. And remember, if you’re not sure, err on the side of the emergency being important and pick up the phone and call. Major leaks, including both storm related damages, or issues such as a toilet or sink overflowing from an upstairs units. Lack of heat. This is an issue that needs to be addressed immediately, particularly in colder climates. Any structural issues. This can include anything from collapsing balconies, stairways, carports, or ceilings. Any gas smells. While hopefully tenants have been instructed to call the local gas company in the event of a gas smell, this is an issue that managers need to address promptly. Jan, Mar, May, Lack of running water. Again,

this is an issue that constitutes an emergency, and property managers should respond accordingly. While property managers should never be expected to respond to every issue that arises after hours, it’s important for tenants to know that should an emergency arise outside normal business hours, their property manager is only a phone call away. PropertyManager.com a Service of AppFolio

VALLEY, METRO, ARIZONA APT

Salsbury Indu

Jul, Sep, Nov,

The Industry Leader in Quality

1031 Exchanges • Property Clinic

Arizona

•

Oregon

•

Washington

Joseph Chaplik

President / Designated Broker

480.305.5600 | www.josephbernard.net Contact Us Today for a Free Catalog!

Order Factory Direct! 1010 East 62nd Street, Los Angeles, CA 90001-1598 Phone: 1-800-624-5269 • Fax: 1-800-624-5299 2

Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

3 Tips for Practicing Mindfulness in a Multitasking Workplace

oogle, eBay, Intel and General Mills offer classes on it. So do Harvard Business School, Ross School of Business and Claremont Graduate University, among other campuses. Mindfulness is not just a corporate trend, but a proven method for success. Mindfulness – being focused and fully present in the here and now – is good for individuals and good for a business’s bottom line. How can people practice it in a workplace where multitasking is the norm, and concerns for future profits can add to workplace stress? “Even if a company doesn’t make it part of the culture, employees and managers can substitute their multitasking habits with mindfulness in order to reduce stress and increase productivity,” says Dr. Romie Mushtaq, www.BrainBodyBeauty.com, a neurologist with expertise in MindBody medicine and Mindful Living. “The result that you and your colleagues will notice is that you’re sharper, more efficient and more creative.”

and Give You Better Lighting at the Same Time Dr. Romie says the physiological benefits of clearing away distractions and living in the moment have been documented in many scientific and medical studies. “Practicing mindfulness, whether it’s simply taking deep breaths, or actually meditating or doing yoga, has been shown to alter the structure and function of the brain, which is what allows us to learn, acquire new abilities, and improve memory,” she says. “Advances in neuroimaging techniques have taught us how these mindfulness-based techniques affect neuroplasticity. “Multitasking, on the other hand, depresses the brain’s memory and analytical functions, and it reduces blood flow to the part of the right temporal lobe, which contributes to our creative thinking. In today’s marketplace, creativity is key for innovation, sustainability and leadership. Romie offers these tips for practicing mindfulness in a multitasking business: • Focus on a single task for an allotted amount of time. You might

say, “For 15 minutes, I’m going to read through my emails, and then for one hour, I’m going to make my phone calls,” Dr. Romie says. If your job comes with constant interruptions that demand your attention, take several deep breaths and then prioritize them. Resist the urge to answer the phone every time it rings -- unless it’s your boss. If someone asks you to drop what you’re doing to help with a problem, it’s OK to tell them, “I’ll be finished with what I’m doing in 10 minutes, then I’m all yours.” • When you get “stuck” in a task, change your physical environment to stimulate your senses. Sometimes we bounce from one task to another because we just don’t have the words to begin writing that strategic plan, or we’re staring at a problem and have no ideas for solutions. “That’s the time to get up, take a walk outside and look at the flowers and the birds – change what you’re seeing,” Dr. Romie says. “Or turn on some relaxing music that makes you feel happy.”

Offering your senses pleasant and different stimulation rewires your brain for relaxation, and reduces the effects of stress hormones, which helps to unfreeze your creativity center. • Delegate! We often have little control over the external stresses in our life, particularly on the job. How can you not multitask when five people want five different things from you at the same time? “Have compassion for yourself, and reach out for help,” Dr. Romie says. “If you can assign a task to somebody else who’s capable of handling it, do so. If you need to ask a colleague to help you out, ask!” This will not only allow you to focus on the tasks that most need your attention, it will reduce your stress. “And who knows? The colleague you’re asking for help may want to feel appreciated and part of your team!” While it is possible to practice mindfulness in a hectic workplace, Dr. Romie says she encourages busiContinued on page 6

Interested in Buying or Selling Multi-Family Properties in Metro Tucson? FREE market analysis & automatic email alerts of newly listed properties.

Contact: Jade Bossert, Associate Broker successfully selling investment properties in Arizona since 1979.

Tierra Antigua Realty (520)797-6900

tucsonrealestate@mindspring.com

Advertise in Rental Housing Journal Arizona Circulated to over 10,000 apartment owners, on-site, and maintenance personnel monthly. Call 503-221-1260 for more info.

Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

How Entrepreneurs Can Increase Profit with a Hands-Off Approach

5 Basic Philosophies to Successful Apartment Management 1. Keep property neat and clean at all times – “always” 2. You only have one opportunity for a 1st impression 3. Maintain basic marketing

especially good signage

4. “Rent ready” means exactly that. Nothing more to do. PERIOD

5. Rent to tenants that have the ability and desire to pay. PERIOD

Dick James, CCIM www.DJAProperties.com

Mechanical Rule of Distance’ Lets You See Big Picture & Test Ideas, Says Business Development Strategist

t’s a common occurrence among the most talented people in the corporate world – highly skilled and qualified workers make the leap from valued employee to uncertain business owner. Unfortunately, rather than becoming a master of their own business, many of these entrepreneurs work twice as much as they did in their safe corporate job, unwittingly committing themselves to becoming the lowest rung on the ladder, says Zenovia Andrews, founder and CEO of The MaxOut Group, a company devoted to empowering and teaching entrepreneurs development strategies to increase profits. “People believe that starting a new business is supposed to mean they’ll have to work much longer hours, and that’s why most new businesses fail early,” says Andrews, author of the new book “All Systems Go – A Solid Blueprint to Build Business

and Maximize Cash Flow,” (www. zenoviaandrews.com). “Entrepreneurs need to be the brains and oversight of the operation. It’s not wise to work for your own business. Sixteen-hour days get entrepreneurs lost in the minutiae. The lose perspective and burn out.” Business owners need distance for perspective, and the best way to create that is by knowing how to delegate duties to employees, she says. “Owners need to be the strategic visionary who hires, trains and develops the best talent available, and then delegates work,” says Andrews, who discusses the five keys of delegation. • Understand that your team is made up of human beings. No one can work nonstop, so get your timing right. Know what each employee can handle, and never overwork them. Most people perform at their

best when they are consistently busy but not rushed or pressured. • Focus on the strengths of your team. Delegation is not a dumpand-run tactic. Know your employees and how they fit into your business puzzle. Allow them to do what they do well, and give them responsibilities and authority. They’ll be happier and so will you. • Focus on your own strengths, then plug the holes. Few of us are great at everything! If bookkeeping’s not your thing, hire an accountant. If you don’t have marketing experience, find someone with proven skills. Trying to perform jobs that you don’t do well will require twice as much effort with less-than-satisfactory results. • Be the resource king or queen. continued on page 9

Nu Systems Services Inc.

Paint -

Custom paints, Interior/Exterior, Apartment Turns

Maintenance Resurfacing Concrete -

Counter-top, Tub and Tile surround

Refinishing Stain & Polish, Handicap Ramps

Gate/Fence Drywall -

Turnkey maintenance

RESIDENTIAL REMODEL Inspiring home remodeling in Phoenix, Arizona. From concept through completion, the Ecce Design Team removes the frustration from home renovations allowing you to continue your daily responsibilities.

Fabrication & Repair

Repair, Custom Work 24 hour scheduling service

602-931-8900

P.O. Box 11325 Glendale, AZ 85318

602-714-1322 ROC263730-236515-134207

P.O. Box 44535 Phoenix, AZ 85064

ROC264058 Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

5 Keys to Developing Personal Power Working on Emotional Intelligence Skills Can Open the Door to Achievement By: Lynda Chervil

ersonal power is a core leadership competency that everyone needs to develop before they can lead others. It has to do with being able to lead yourself. "Personal power is the ability to achieve what you want,” according to Frederick Mann, a successful entrepreneur and author of The Economic Rape of America. “More than anything else, it is personal power that brings you success and happiness. The biggest barrier to success in almost any endeavor is powerlessness, negativity, helplessness, and inertia. They belong together. The problem is not only our own powerlessness, but also the powerlessness of those around us." We can help harness and learn to use our personal power by understanding and working on our Emotional Intelligence (EI) skills. Not long ago, when I worked in a corporate environment, there was a strong push to incorporate EI into the organization's leadership training curriculum as an array of skills and characteristics that drive leadership performance.

EI is "the ability to monitor one's own and others' feelings and emotions, to discriminate among them and to use this information to guide one's thinking and actions," according to psychologists John D. Mayer and Peter Salovey, who co-developed the concept and were two of the three authors of the Emotional Intelligence Test. My EI training and its practical applications to my work team environment still resonate in my personal life. They became skills that I now methodically apply to current situations in both personal and entrepreneurial pursuits. There are several EI models, but the one to which I ascribe is the mixed model introduced by Daniel Goldman, a combination of ability and traits. Here are Goldman’s five main EI constructs, and my views on how each of us can develop them: 1. Self-awareness: the ability to know one's emotions, strengths, weaknesses, drives, values and goals and recognize their impact on others while using gut feelings to guide decisions. In order to become self-aware, you

need to conduct an honest self-assessment to determine your strengths and weaknesses, such as powerlessness and inertia, and determine the root causes. You then need to create a plan that will help you overcome your fears, which are barriers to courage and stand between you and your successes. While I am a big proponent of using my intuition to guide my decisions, whenever it is appropriate, I need to caution that unless your gut feelings are often more right than wrong, you cannot make decisions solely based upon intuition. You need to use a balanced combination of intuition and logic. 2. Self-regulation: involves controlling or redirecting one's disruptive emotions and impulses and adapting to changing circumstances. Simply put, you need to exercise self-discipline and know how to control your emotions and be flexible in order to adapt to changing situations. You cannot continue on the same trajectory or keep the same plans when the circumstances or facts have changed. Your plans need

to be modified accordingly. 3. Social skills: managing relationships to move people in the desired direction. Your social skills refer to your interpersonal skills or your ability to relate and connect with people, which can motivate them to deploy discretionary efforts to help you achieve goals that are best accomplished via partnership and collaboration. Here are some tips for improving your social skills: a. Pay attention to the feedback of friends and co-workers, good and bad. Train yourself to repeat the behaviors that get positive feedback and work on eliminating those that make people react negatively. b. View constructive criticism as just that. When we become defensive, we don’t hear what can be very helpful feedback. c. Learn to handle conflict and confrontation from a perspective of compassion and caring. Personal coaching can be very helpful in learning to be more diplomatic in your interactions with others.

Medical Marijuana ...continued from front page The Plaintiff argued (1) a medical marijuana card did not give Defendants the right to use marijuana on the property; (2) marijuana is a controlled substance under federal law; and (3) the Arizona Attorney General issued an opinion that a landlord cannot be required to allow marijuana use on the property. Plaintiff also argued that federal law prohibited the use of marijuana, to which the trial court responded: “Federal law? Federal law doesn’t control the State of Arizona.” The trial court also asked Plaintiff’s counsel if he wanted the trial court to ignore a law passed by the voters of the State of Arizona, to which Plaintiff responded by arguing that the trial court cannot force a landlord to violate federal law. Additionally, Plaintiff argued the property rights of the property owner must prevail and, if the property owner did not want to have marijuana used on his property, he had that right. The trial court ruled in favor of the Defendants and dismissed the case. The Plaintiff appealed the trial court’s ruling. There were two main questions on appeal: (1) Did the trial Court abuse its discretion in finding the tenant had a right to possess marijuana in the apartment?; and (2) Did the trial court abuse its discretion in finding a tenant had a right to possess marijuana despite a Crime Free Provision in the Lease? Rental Housing Journal Arizona • July 2014

On April 28, 2014, Judge Myra Harris, with the Superior Court Appellate Division, issued its ruling on the appeal, finding that the Trial Court abused its discretion on all of the appellate issues, and reversed the judgment of the McDowell Mountain Justice Court. The twenty-five page, well-reasoned opinion stated that case law indicates federal authorities have the ability to prosecute for violations of the Controlled Substances Act (CSA) even where state law allows the use of medical marijuana and that the CSA takes precedence over the AMMA. The decision further stated that the CSA preempts the field of marijuana regulation under the Supremacy clause of the U.S. Constitution. Thus, there still remains the potential for federal prosecution of the medical marijuana user and, because marijuana falls within the category of a controlled substance, a property owner has the right to distance himself from any possible allegation of federal criminal misconduct and avoid any possible seizure of his real property. The Appellate Court concluded that “[b]ecause (1) federal law preempts this field and allows for the potential for prosecution; and (2) the lease agreement included a provision precluding controlled substances at the premises; the trial court erred in dismissing Plaintiff’s case based on

the trial court’s belief that (1) there was protection from federal prosecution by virtue of the [Arizona Medical Marijuana Act]; and (2) the [Americans with Disabilities Act] supported Defendants’ position.” With this ruling, Landlords and Tenants now have some guidance on the effects, and the reach, of the Arizona Medical Marijuana Act. 1 The Justice of the Peace of the McDowell Mountain Justice Court, the Honorable Michael Reagan, did not hear this case. The case was decided by a Pro Tem Judge. 2 There were also two ancillary questions raised on appeal regarding (1) the Trial Court’s conduct during the trial and (2) the award of attorney fees

We Do More Than Just Answer Your Questions…

WE CREATE THE SOLUTIONS!

Operations, Marketing, Leasing & Training Specialists

CALL TODAY TO REDUCE EXPENSES & INCREASE YOUR OCCUPANCY (800) 865-0948

www.OccupancySolutions.com 5

RENTAL HOUSING JOURNAL ARIZONA

Can Your Rental Center Walls…Sell?

by Ernest F. Oriente, The Coach

f first impressions are formed by a new resident within 10-12 seconds of meeting those on your leasing teams, what impressions do the walls in your office make? Can your walls sell? Can your walls motivate and inspire you and your leasing teams? You bet they can! This article will show you three easy steps to make sure your walls are selling—365 days a year.

upcoming resident party or event, sample floorplans, special awards or training certifications, your Facebook page, and a photo of your leasing and maintenance team. Lastly, have your leasing teams professionally frame each of the items they will be displaying on the walls of their leasing offices, as the quality of the framing will make a subconscious quality impression on your residents and future residents.

Inspiring your residents: First, recognize that every time a resident comes into the leasing office of the properties you manage, your leasing teams have a golden opportunity to sell and re-sell the wonderful lifestyle your apartment communities provide. Next, have your leasing teams determine how much wall space is available in their leasing offices and ask them to draft a plan for the types of information they want each resident to see. Here are some strategic items your leasing teams can place on their walls: pictures of their residents having fun at a recent property activity, letters of appreciation from current residents, a mission statement from your company, your service guarantee or promise, a current resident newsletter, a reminder about resident referrals, dates for an

Tip From The Coach: Now that your leasing offices are ready to sell to your current residents, can your leasing teams use this sales tool for future residents as well? You bet! At the start of each property tour, have your leasing teams begin by showing each future resident the fun items displayed on their walls…especially the pictures of current residents having great fun. When the walls in your leasing offices sell, your leasing experts will have higher closing ratios and more team success! Motivating your team: Once your leasing teams have finished setting up the selling walls in their leasing offices, it’s time to prepare the walls that will motivate them. Ask your leasing teams to locate a wall or two in their leasing offices that

is not usually seen by either current residents or future residents. Next, discuss with your leasing teams the key numbers, corporate information or trends they would like to see on a regular basis. Here are some ideas that might be helpful to display: weekly/monthly leasing goals, budget performance on a monthly and year-to-date basis, maintenance requests, a follow-up system for tracking hot prospective residents, bonus programs, a calendar to plan future resident events or activities, a place to share or post new ideas, company awards and collection reports. Lastly, ask your leasing teams to find a creative way to display this wonderful information so they will have a pride of ownership attached to this special area. Tip From The Coach: Many of our property management clients ask their resident managers to hold a weekly meeting in the area where this information on their walls can be easily referenced. Consistently referencing this information on a weekly basis will show your leasing teams that the information displayed is critical to the success and profitability of their apartment community. Encouraging yourself: As the ex-

ecutive or owner of your property management company, your walls must also sell. Certainly, many of the ideas mentioned above, would be valuable to have on your walls. Some specialized measurements to place on your walls might include: occupancy trends, employee turnover, ROI performance, quarterly graphs recapping this quarter…compared to the same quarter last year, team rankings and industry statistics that will impact your properties. Tip From The Coach: Remember, whatever you place on the walls in your executive office will send a strong message to your company about the key areas of your business. So choose each item carefully, as every person who comes into your office will survey your walls and ask you questions about what they see or read. In addition, you might consider giving new employees a tour of your office walls on their first day with your property management company. This will allow them an opportunity to see and read firsthand, exactly what is most important to you and those on your executive teams Want to hear more about this important topic or ask some additional ...continued on page 7

Multitasking Workplace ...continued from page 3 ness leaders to make it part of the company culture. Stress-related illnesses are the number one cause of missed employee workdays. “Offering mindfulness training and yoga classes or giving people time and a place to meditate is an excellent investment,” she says. “Your company’s performance will improve, you’ll see a reduction in stress-related illnesses and you’ll be a more successful businessperson.” About Dr. Romie Mushtaq Dr. Romie is a mind-body medicine physician and neurologist. She did her medical education and training at the Medical University of South Caro-

lina, University of Pittsburgh Medical Center and University of Michigan, where she won numerous teaching and research awards. She brings to healing both her expertise of traditional Western medical training and Eastern modalities of mindfulness. She is currently a corporate health consultant and professional health and wellness life coach at the Center for Natural and Integrative Medicine in Orlando, Florida. She is also an international professional speaker, addressing corporate audiences, health and wellness conferences and non-profit organizations. Her website is www.BrainBodyBeauty.com.

Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez

Dear Maintenance Men: Mildew is driving me crazy. We have a property with interior bathrooms and they are constantly developing mildew on the walls and ceiling. We have cleaned, painted and cleaned out the duct work for the vent fan and the problem does not go away. How can I solve this problem? William Dear William: A number of things may be at work here. Unit overcrowding is generally the main reason for moisture & mildew build-up in an apartment unit. Because of the overcrowding, the residents, take more showers and baths, throughout the day and evening. Often to hide the excess people in the unit, the resident will keep all the window covers closed and the widows shut, effectively keeping the moisture from escaping. Add a windowless bathroom into the mix and the problem is compounded. Mechanically, we suggest you inspect the vent fans in the bathrooms. Make sure they are not clogged with lint or dust. If the fan is operating properly, check the CFM or Cubic Feet per minute of air movement. The minimum number should be 50 CFM. If the bathroom is getting

more than the average amount of use, you may want to replace the existing fan with one that has a higher CFM rating. We recommend using at least a 120-CFM fan. Equally important, many bathrooms have two wall switches; one for the light and the other for the fan. If this is the case, we recommend combining the two switches into one. That way when the resident switches on the light the fan will come on automatically. We find most residents will not turn on the fan if it has its own switch. Lastly of course, is to get the resident to open a few windows and let some fresh air in. Dear Maintenance Men: Over the years, the sidewalks around our building have accumulated a fair amount of chewing gum residue. We are looking for a good method to remove the gum and the gum deposit. Once clean, is there any surface treatment to prevent gum from sticking? Ryan Dear Ryan: There are a number of ways to remove gum from a brick or concrete sidewalks. Spray the gum with an aerosol freezing agent or place dry ice on the gum for a few minutes. The gum will become very brittle and should be easier to pry off the

surface with a putty knife or scraper. It may take a few tries to remove all the gum. If there is any gum remaining, spray WD-40 or vinegar and let it soak to dissolve the remaining gum. Use a scraper or stiff brush to remove the rest of the gum. After all the gum is removed, use a power sprayer to deep clean and remove any gum residue. If you still have discoloration on the concrete, use muriatic acid & water mixture to bleach the concrete. To keep the gum from sticking to the concrete or brick sidewalks in the first place; use a waterproofing sealer on the sidewalk to reduce the likelihood of the gum sticking to the surface. Dear Maintenance Men: I keep hearing about PEX tubing as an alternative to copper tubing when it comes to re-piping my rental units. What is the difference between PEX and copper tubing and why use one over the other? What are the pros and cons? Aldridge Dear Aldridge: First let’s define what PEX tubing is. PEX is a cross-linked polyethylene pipe. (It looks and feels like plastic pipe.) The PEX pipe is resistant to extreme temperatures, stress,

pressure and chemicals attacks such as acids & alkalies. This makes PEX pipe suitable for both hot and cold water systems and can be used in below freezing condition and is suitable up to 200 degrees Fahrenheit. The pipe is extremely flexible and easy to install. Pros and cons of using PEX: Pros: 1: Versatile and user friendly, can be bent around corners & snaked through walls. 2: Minimum of connections needed to complete a pipe run. (Less chance of a leak) 3: Cold weather burst resistant. 4: PEX pipe is less expensive than copper pipe Cons: 1: Cannot be used outside or in sunlight. 2: Not recycle friendly 3: Installation tools can be expensive. 4: Not handyman friendly Pros and cons of using copper pipe: Pro: 1: Long lasting, easy to use and install 2: Resists corrosion 3: Environmentally friendly, i.e.: recyclable. Continued on page 14

The Coach ...continued from page 6 questions about how to create walls that sell? Send an E-mail to ernest@ powerhour.com and The Coach will E-mail you a free PowerHour invitation. Author’s note: Ernest F. Oriente, a business coach/trainer since 1995 [32,170 hours], serving property management industry professional since 1988--the author of SmartMatch Alliances™, the founder of PowerHour® [ www.powerhour.com ], the founder of PowerHour SEO [ www.powerhourseo. com ], the live weekly PowerHour Leadership Academy [ www.powerhourleadershipacademy.com/pm ] and Power Insurance & Risk Management Group [ www.pirmg.com ], has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars, traditional and Internet SEO/SEM marketing, competitive sales strategies, and high leverage alliances for property management teams and their leaders. He provides private and group coaching for property management companies around North America, executive recruiting, investment banking, national utility bill auditing, national real estate and apartment building insurance, SEO/SEM web strategies, national WiFi solutions [ www.powerhour.com/ propertymanagement/nationalwifi.html ], powerful tools for hiring property Rental Housing Journal Arizona • July 2014

management SuperStars and building dynamic teams, employee policy manuals [ www.powerhour.com/propertymanagement/employeepolicymanuals.html ] and social media strategic solutions [ http://www.powerhour.com/ propertymanagement/socialmedialeadership.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox sales methodologies. Recent interviews and articles have appeared more than 8000+ times in business and trade publications and in a wide variety of leading magazines and newspapers, including Smart Money, Inc., Business 2.0, The New York Times, Fast Company, The LA Times, Fortune, Business Week, Self Employed America and The Financial Times. Since 1995, Ernest has written 225+ articles for the property management industry and created 400+ property management forms, business and marketing checklists, sales letters and presentation tools. To subscribe to his free property management newsletter go to: www.powerhour.com. PowerHour® is based in Olympic-town…Park City, Utah, at 435-615-8486, by E-mail ernest@powerhour.com or visit their website: www.powerhour.com

www.azpoolmaster.com

RENTAL HOUSING JOURNAL ARIZONA

here is an old saying when it comes to selling/renting real estate that the three most important factors are: location, location, location. Yet, what if you are working at an apartment community that does not have these three things going for it? Maybe your community is “off the beaten path” and no one can find you, or your building is located in a neighborhood that is not considered desirable because it needs a facelift. Perhaps you are near certain types of businesses that may discourage people who are driving by from driving in. The issue of “location,” is obviously a concern based on the following question:

Q: I work at an older building that is tucked away in a secluded spot. It once had a great reputation, but over several years, the local neighborhood has taken on a “run down” appearance and many of the area businesses are not caring for their properties the way they once did. It’s getting harder and harder to attract new renters, not to mention trying to hang onto existing residents who are now concerned with security and safety issues. If I could pick up and move this building I would do it! Do you have any suggestions? A: I want to commend you for

your loyalty to your building and residents. It’s obvious that you care a great deal about the people and the place where you work, as well as your local community. Challenges with “location” are especially difficult as they sometimes fall into the realm of things that we consider to be “beyond our control.” We feel powerless and frustrated. On the other hand, difficult challenges present unique and exciting opportunities to become creative and also get other people involved in the problem-solving process. Thomas Edison said, “Opportunity is missed by most people because it is dressed in overalls and looks like work!”

Well. . . solving challenges related to “location” is work; it’s HARD work! It requires spending time analyzing ALL of the problems, not just the ones that are blamed on location. Let’s face it: Over a period of time, it becomes easier and easier to make “excuses” and “blame” what is perceived as a “bad location” on EVERY problem that arises. (i.e. “No one can find us because we are in a bad location!” - How colorful and well placed are your signs? How skilled are you at giving specific, detailed directions; even if it means using a local Continued on page 14

Making Rent Collection Easier By Mary Girsch-Bock As important as it is for property managers to ensure that rent is received on a timely basis; rental col-

lection is not just important to property managers. Surveys have shown that residents also want an easier way to pay rent. While many smaller management companies have con-

tinued to accept checks, many have done away with the hassle of recording, depositing, and dealing with delayed mailings, lost checks and potential NSF check situations. With a large under 30 demographic, property managers looking to attract young, professional renters would do well to institute a 21st century rental payment policy that allows tenants to use credit cards to pay rent, can accept rental payments online, or can automatically debit a tenant’s bank account to withdraw rent on a monthly basis. There are numerous advantages to making updated payment acceptance a priority. Here are just a few: Your rental payment policy can directly affect the type of renters you’re able to attract. With computer savvy young professionals making up one of the fastest growing group of renters, it’s imperative that properties offer quick, easy methods for rental payments. Many 20-somethings

have never written a check in their life, and aren’t likely to start just to live in your property. They’ll simply find a property where they can pay their rent easily. Accepting rental payments electronically will eliminate the extra work involved with accepting checks, as mentioned above. While those in a small apartment community do not spend a lot of time processing checks, those in large, multiunit complexes will typically spend a large chunk of the first week of each month processing checks, not to continued on page 11

Free Estimates

t Painting, inc. n u o m Para

9 6 5 3 717 2 0 6 Great Prices Interior Repaint Specialists Drywall & Texture Repairs 15+ years of Service Valleywide Roc#148170 1833 E. Baseline Rd., #262 Gilbert, AZ 85233

Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

Smoked Any “POT” Lately?

bet you think this article is just one more on medical marijuana and you’d be wrong. When I say POT, I mean something different. POT is my new acronym for Potential, Opportunity and Talent. Does the current market have the potential for success as an individual/independent real estate investor or your investment business? Is the opportunity there? Do you have the talent to succeed? Interesting questions, so let’s take a look at each. Potential means to achieve the most that you are capable of. Are you reaching your potential as a real estate investor? If not, what is holding you back? Are you giving your investing the attention you should? Are you taking the action you need to take to be successful? Not reaching your potential is one of life’s great tragedies. Nobody wants to look back and say “only if”. Personally, I believe everyone that comes to real

estate investing has the potential to succeed. It is only a matter of if they will do what is necessary to be successful. Opportunity means a chance, especially one that offers some kind of advantage or a combination of favorable circumstances or situations. What is the opportunity in today’s market especially in Phoenix, Tucson and the rest of Arizona? What is the opportunity in residential versus commercial? Are they different? Where should you spend your time? Do you want to be opportunistic or stick to your business plan? What is the opportunity in terms of return? Most believe today’s real estate market is full of opportunity. If you look at the velocity in the market, the variety and range of investors participating in the market, and the value proposition, most would agree. Talent means a person or people with an exceptional ability. What is

your skill level? Do you need to improve? Is there education you should take? Do you need to add talent to your team? Do you need to replace members of your team to improve the talent and give your investing a higher degree of success? I’ve said it many times that very few have the talent to be a major league baseball pitcher and throw a pitch over 90 MPH and hit the corner of the plate. That’s good because there is very little opportunity to be a major league baseball pitcher. I think most of us agree that talent for sports at the highest levels comes from a God given ability along with determination and dedication to be the best. In real estate investing you can learn what you need, practice it by gaining experience, and develop the talent over time to be ultra successful. Couple your talent with the unique talents of others and you have a winning combination.

Every morning I get up, smoke a little “POT” and ask myself the questions posed above for my personal real estate investing, AZREIA and ARPOLA. It makes for interesting conversation. I encourage you to “smoke a little POT” every morning, too. Smarter investing,

details from outlined strategy; to be aware of market trends; to always have one eye on the competition; and to develop an instinct for the people with whom you like to work,” Andrews says.

strategist with extensive experience in corporate training, performance management, leadership development and sales consulting with international clients, including Pfizer, Inc. and Novartis Pharmaceuticals. A sought-after speaker and radio/TV personality, she is the author of “All Systems Go” and “MAXOut: I Want It All.”

Alan Langston Executive Director Arizona Real Estate Investors Association - AZREIA 480-990-7092 www.AZREIA.org AZREIA serves its 1700+ members through chapters in Phoenix, Tucson and Prescott providing extensive market information, education, networking events and support.

Hands Off Approach ...continued from page 4 Your employees are only as good as the resources they have. Make sure that they are equipped to always do the best work for you on a daily basis. Running out of stock, not having new software and not shelling out for that desperately need printer is NOT good delegation. • Become the fire, ice and motiva-

tion behind your team. When they need guidance, give it to them; when they need appreciation, offer it to them. Inspire, motivate and lead by supporting your delegated decisions and following up on them often. “Business owners need to be the big thinkers: to identify patterns both good and bad; to become an idea machine and testing fanatic; to fill out

About Zenovia Andrews Zenovia Andrews, www.zenoviaandrews.com, is a business development

METRO PHOENIX APARTMENT BROKERAGE EXPERTS • Representing owners and buyers since 1998 • Over 1,000 apartment communities sold with over 1 Billion dollars in total sales • Unsurpassed “Client” dedication • Maximum value for your property

   

Your Vision  Our Design Our diverse product offerings will satisfy all of your outdoor casual furniture needs.

jrega@brownjordan.com • 800.327.1541 • www.texacraft.com Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

Application Fees ...continued from front page Currently eighteen (18) states and the District of Columbia recognize same sex marriages. These states represent 43.5% of the United States population. Another seven (7) states, representing 17.7% of the population, have had courts conclude that a prohibition on performing same sex marriages is unconstitutional, usually on due process grounds. All seven (7) of those court decisions have been stayed and are pending appeal. As of May 2014, eight (8) Native American tribal jurisdictions also issue marriage licenses for same sex couples. To add further to the analysis, the federal government’s position is that, for purposes of all federal benefits, it will recognize legally performed same sex marriages regardless of the state where the same sex couple now resides. In addition, every state that refuses to recognize same sex marriage, except North Dakota, presently has ongoing litigation challenging the state statutory or constitutional provisions that prohibit recognition of same sex unions. If this sounds confusing and/or dangerous for landlords it probably is. In jurisdictions where same sex marriage is recognized, a practice of charging application fees to each person in a same sex union, while charging only one application fee to couples in more traditional unions, are being challenged as discrimina-

tory, often on the basis of sex. Those arguments generally contend that if “Betty” who is married to “Ellen” was “Bob” and still married to “Ellen” that she would not have to pay a separate application fee. Because Betty is female, rather than male, she is charged an additional fee and this constitutes sex discrimination under fair housing laws. As of right now, this argument has not yet gained traction and HUD has taken no position on the issue under the federal Fair Housing Act. But as bans on same sex marriage are repeatedly shot down by both legislative action and court decisions, landlords will be caught in the middle. It is not too early to start considering this issue and how to resolve it. For properties that do not receive federal financial assistance and do not have HUD loans, this issue may still be theoretical. For others it is not. In March 2012, federal rules went into effect that prohibit properties that receive any kind of federal financial assistance or that have a Federal Housing Administration (“FHA”) secured mortgage from discriminating against a tenant or applicant on the basis of: • Sexual orientation, including a person’s actual or perceived homosexuality, bisexuality or heterosexuality.

480.963.3416

• Gender identity, including actual or perceived gender-related characteristics, and • Family status. Under these regulations, family status is not the same as “familial status” under the Fair Housing Act. Rather “family status” looks at the actual living arrangements of those who are, or plan to, reside in the unit without regard to their sexual orientation, gender identity or marital status. Under this category any group of persons living together as a family, regardless of whether there is any relationship connected by blood or marriage, cannot be subjected to different terms and conditions of housing than other tenants and applicants. . Claims under these regulations are not filed under the state or federal fair housing laws but can be brought to any HUD agency that administers or enforces the particular program that provides funding to the property. If a resident or applicant files a complaint under these bases, and the agency administering the program determines that the allegations are substantiated, the HUD agency has the authority to impose fines, order compliance, or terminate whatever assistance the property is currently receiving from HUD.

It is obviously not too early to consider where your property stands or will stand when this issue directly affects you. Persons who have questions, concerns or who need help in analyzing this issue are encouraged to contact the Law Offices of Scott M. Clark for further assistance.

regionalaz.com

Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

Q1 2014 Market

...continued from front page

Continued Strong Sales Volume Strong sales volume was reported for Q1, but of the 62 sales with 10 or more units, only 10 transactions had 100 units or more. In 2013, there was an average of 21 communities sold with 100 or more units each quarter. Twenty-two of the 62 regular sales were “all cash” and twentytwo (35.5%) were flips – properties purchased within the past few years and now sold at a profit. Two of the regular sales were “1031 tax-deferred exchanges”, which we hope is just the beginning of exchange activity. There is a return to actual value based on cash flow, but having said that, there were 14 sales with either high vacancy and/or distressed condition providing buyers value-add opportunities. The 24 unit, Ocotillo North Apartments located at 2502 W Ocotillo Road in Phoenix was the only 3rd party Trustee Sale at $650,000 ($27,083/u). Attractive Financing Financing remains very competitive for all size apartment loans. FHA / HUD and Fannie Mae, Freddie Mac offer 75% to 80% nonrecourse loans with rates in the low to mid 4’s. Buyers for smaller properties (usually with loans of less than $2.0M) are obtaining starter rate, 5 year, recourse loans below 4.0% / amortized 30 years with max LTV’s

Rent Collection Easy mention following up on lost mail, determining if in fact a check is late, and contacting tenants when insufficient fund issues pop up, as they always do. Accepting rental payments electronically give property managers a much better idea of their rental income for the month much earlier, and managers will know immediately if a scheduled electronic payment has been made. The majority of your rental payments will be in the bank much sooner. If the 2nd is the cutoff for accepting rental payments, by accepting electronic payments, the majority of your rental income will have

Rental Housing Journal Arizona • July 2014

of 75%. Refinancing is also available for all size assets with “cash out” available for the larger, institution loans, but “cash-out” is typically limited to the amount of cash previously invested in the property with the smaller loans. The smaller apartments (less than 100 units- typically “B” and “C” quality) have seen an increase in value due to the more aggressive loan rates – providing buyers the cash flow desired. “B” and “C” properties Primed for Appreciation Rental rates in the smaller properties are increasing faster than the larger properties – allowing apartment brokers (like us) to make a strong case for future increased revenue. With the projected strong population increase, and no “B” and “C” properties being constructed, the increased demand for these properties further supports the continued rent growth and appreciation. New Construction Booming The big story in metro Phoenix is the amount of new apartment construction. As of Q1 2014, there were 21 projects under construction representing 5,422 units. In addition, there were 76 projects representing an additional 17,472 units in various phases of the rezoning / permitting process, not including new condos being

built to be leased as apartments such as Optima’s 781 units in Scottsdale. The dominant locations for the new apartment projects are in cities experiencing strong economic growth, including Scottsdale, Tempe, Phoenix, Chandler and Gilbert. Another trend for new construction is along the metro Light Rail – especially as it links the education hubs of downtown Phoenix, the ASU campus in Tempe and east to the five new universities in downtown Mesa. Many additional, large scale projects are also being announced almost weekly. The Effect of the New Construction on Existing Apartments The main question existing owners should be asking is “What will be the effect of the new construction on my apartment community“? In most cases, realize that the older properties typically have larger unit size with far less rent/sf. When comparing rents for the newly constructed communities, understand that in addition to the stated rent, there may be additional charges for water/sewer, common area and other miscellaneous fees. Use this to attract and/ or keep existing tenants. If there are a number of older properties in your submarket, you want to be the best alternative available. On the flip side, a new, class “A” community in

your area may be very beneficial as these tenants may warrant more upscale retail (restaurants, shops, etc.) – thus improving your neighborhood. To determine your best strategy to combat possible negative effects of nearby new contraction, please use us as a resource. Jim Kasten, CCIM. Kasten Long Commercial Group 2821 E Camelback Road, Ste. 600 Phoenix, AZ 85016 602 677 0655 Jim@KLCommercialGroup.com The Kasten Long Commercial Group has specialized in apartment brokerage in metro Phoenix since 1998. Agents have brokerage more than 1,000 communities with gross sales in excess of 1 billion dollars. The company also provides weekly updates (by e-mail) on apartment sales and publishes an apartment market update on a quarterly basis – past issues are available on the company’s web site (www.KLCommercialGroup.com).

...continued from page 8 been received by the cutoff date, instead of straggling in up to five days after the deadline. If you make one change this year in your internal processes, you may want to consider changing your rent payment process. Your residents will appreciate the ease in which they can make payments, while your staff will be freed up to handle other responsibilities instead of stamping checks and driving to the bank the first week of each month. PropertyManager.com a Service of AppFolio

RENTAL HOUSING JOURNAL ARIZONA

Arizona Bedbug Law Are You in Compliance?

n April 2011, Arizona became one of the first states in the country, to have state law regulating bedbug infestation, in multifamily rental properties. SB1306 details landlord and tenant obligations. Landlords need to have a detailed BED BUG PROTOCOL in their leases, including who pays for bedbug treatment. Absence of a detailed bedbug protocol, places the entire cost of mitigation for the dwelling unit, and any surrounding units infested, entirely on the landlord. Single family rented dwellings are exempt from Arizona's bedbug law. Pursuant to Arizona Law, treatment must be done by a licensed pest control applicator. Therefore, maintenance crews or landlords, who are not licensed as pest control applicators, are prohibited from treating bedbug infestation. Cost of professional heat method bedbug mitigation is approximately $1.00 per foot, or approximately $800.00 for a typical 2 bedroom 800 square foot apartment. A landlord has the following obligations with respect to bedbug in-

or local health agencies, nonprofit housing associations and disease control and prevention agencies. 6. The landlord shall not enter into any lease agreement, with a tenant for a dwelling unit, that the landlord knows is infested with bedbugs.

festation: 1. The landlord shall provide bedbug educational materials to existing and new tenants. Educational materials may include: 2. a. A description of measures, that may be taken , to prevent and control bedbugs. 3. b. Information about bedbugs, including photo(s) . 4. c. A description of behaviors, that increase the risk of bedbugs. These include using discarded or used furniture and clothing, and traveling without taking proper precautions. 5. d. Information from federal, state

Bedbug Issues in Buying & Selling Multifamily Properties There are no specific bedbug laws, regulating the purchase or sales of multifamily properties in Arizona. Previous or current bedbug infestation is a material fact, that could influence a buyer's decision to purchase. Therefore, for liability reasons, a seller should disclose any history of treatment. Also, any tenant complaint or bedbug infestation, discovered during the escrow period, should be fully disclosed. Buyers should ask for a history of bedbug infestation and treatment in the Purchase Contract. In addition, they should ask for copies of all tenant verbal, written, or electronic complaints, received in the last 36 months. A licensed pest control com-

pany may also be utilized, during the inspection period, to confirm the property has no infestation. A clause in the Purchase Contract, detailing who will pay for mitigation, in the event infestation is discovered during the escrow period, is also advised. Knowledge is power. It is essential that owners and managers, of apartment complexes in Arizona, understand and abide by Arizona's bedbug law. Litigation regarding bedbugs is increasing nationwide. By complying with Arizona's bedbug law, landlords and managers provide evidence that they complied with state law. Bedbug infestation is not only a health and safety issue, but a source of increased liability for owners and managers of multifamily rental properties. Jade Bossert is a licensed real estate broker , with Tierra Antigua Realty, in Tucson. She specializes in the sale of apartment complexes and can be contacted at 520-797-6900 or tucsonrealestate@mindspring.com

FOR MULTI DWELLING PROPERTY OWNERS ONLY

AVAILABLE NOW... “Campus Style Wi-Fi” Internet for Your Entire Community at No Cost to You! Newest Air Fiber Technology Allows High Speed, High Capacity, Blazing Fast Data Packages Up to 50 Mbps

FREE INSTALLATION • FREE HARDWARE FREE TECH SUPPORT

myitzchaki@MSYLaw.com

Vis it us at

w w w . R e n t a l H o u s i n g J o u rn a l . c o m

Add Substantial Ancillary Income Up to $35 Per Unit Add Value and Prestige to your Property Increase Occupancy and Resident Satisfaction Make Your Community More Attractive With Flawless Wi-Fi HD Streaming & Enterprise-Level Internet Security “From the pool to your living room” We provide the fastest, SAFEST, widest coverage high-speed WI-FI Available Today!

CALL TODAY! 1-800-468-6851 www.redhotspot.net

Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

Knowing the Limits on Collection Practices for Property Managers By Marc Courtenay

ne of the challenges in the management of rental properties involves collecting from residents behind on rent payment. Knowing the laws which govern the methods used for collection is a vital first step. We can debate how far we’d push the envelope to make sure the rent is collected, but the key to avoiding legal trouble is awareness and compliance with federal, state and local regulations. A good place to begin is the federal government’s “Fair Debt Collection Practices Act” which is enforced by The Federal Trade Commission (FTC). You can go directly to their web page on this topic for details. Two relevant declarations that motivated Congress to enact this legislation speaks volumes: There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contribute to the number of personal bankruptcies, to marital instability, to the loss of jobs, and to invasions of individual privacy.

It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses. The complete text of the Fair Debt Collection Practices Act (FDCPA) is found here. It’s challenging to read but it does cover in detail the intentions and protocols of the FDCPA. Then there are state and local regulations to know about. The good news is that each state and many municipalities have updated online explanations of these laws. Most are common sense but the details are where managers and their staffs can get entangled. This topic was recently discussed at the PropertyManagers.com discussion page on LinkedIn. The question of what constitutes being “too aggressive” was raised in regards to Community Management Associations (CMA). The feedback turned in the direction of how it applies to property managers. One property manager responded

by writing, “Aggressive to me would entail going door to door instead of the normal practical methods of getting tenants to pay on time. Are there other ways to promote timely payments?” That’s the main question, and responding to it another manager wrote, “Depending on the property, door knocking, notices, phone calls and e-mail generally work. “Using the threat of an eviction after say the 10th or 15th (after proper 3 or 5 day notices have been delivered) has proven most effective for myself as they do not want that on their record, the associated court costs due to dismiss the eviction or the ruined rental history. Being consistent on this and requiring signed arrangements are usually an effective strategy”, he concluded. This topic reminds us of how important it is to screen applicants thoroughly. Once you’ve found qualified residents consider having a questionand-answer discussion concerning timely payments. Many property managers have a one-page “collections agreement” that clearly spells out what will happen if the resident is late on paying

rent. The manager has them sign it and gives them a copy. Make sure you know your rights as a property manager, and make sure if you use a “collections agreement” the wording is legally sound and in harmony with the laws. There are also collection agencies and “debt collection specialists”. One that I corresponded with wrote, “Collection agencies must have licenses in most states. In my company, everybody (including myself) must take courses and get designations from the ACA and other trade organizations. Nobody in my organization talks to a debtor without taking the course, passing the exams, and getting the designations.” If you have suggestions and experience on the subject of effective and legal collection practices please leave them in the comments section. It’s a need-to-know topic for all property managers. PropertyManager.com a Service of AppFolio

www.rent alh o u s in gj ou r n a l .com

Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

Shoptalk ...continued from page 8 and network with other area businesses who care about the condition of your section of the city. Maybe your staff and residents could get involved civically and attend local town meetings to make your voices heard about what’s happening in your neighborhood. What about forming a block watch at your community?

pub as a landmark? “No one will use our laundry facility because it is perceived as being ‘unsafe’ because we are in a bad neighborhood.” - Is your laundry room bright, cheerful and welcoming? Is the interior, as well as the exterior building and surrounding area, well lit? Can residents be introduced to each other and encouraged to use the “buddy system?”)

The problems you face won’t go away overnight. They took years to develop and will take time to correct. MUCH patience will be required to

With regards to your neighborhood situation, perhaps your community could become a member of your local Chamber of Commerce

bring about any lasting change. Of course many people prefer to stay with problems they understand rather than look for solutions they’re uncomfortable with. (It’s easier to complain than change!) However, if you always do what you’ve always done, you’ll always get what you’ve always got. You may not be able to change the location of your building, but you CAN change the direction of your thinking. - After all, it’s a lot easier to “pick up and move” people, rather than buildings! If you have a question or concern that you would like to see addressed next month, please ASK THE SE-

CRET SHOPPER by making contact via e-mail. Your questions, comments and suggestions are ALWAYS welcome! ASK THE SECRET SHOPPER Provided by: SHOPTALK SERVICE EVALUATIONS Phone: 425-424-8870 E-mail: joyce@shoptalkservice.com Web: www.shoptalkservice.com Copyright – Shoptalk Service Evaluations

Dear Maintenance Men ...continued from page 9 4: Safe for exterior use. Cons: 1: Expensive to buy. 2: Can burst in extreme cold weather if not properly winterized. 3: More connections and elbows needed to complete a pipe run.

3334 W. McDowell Rd. Ste. 20 Phoenix, AZ 85009 Office: (602)218-8813 Fax: (602)218-8611 Email: fandihvacaz@earthlink.net

METRO PHOENIX APARTMENT BROKERAGE EXPERTS

Before making any decisions about using PEX piping, check with your local building department to ensure it is allowed in your area. However, if it were our building, we would use copper pipe. Copper is straight forward to install, no special tools are needed and any competent handyperson can fix a leak with simple tools and a torch.

the “Dear Maintenance Men:” column, please send submission to: Questions@ BuffaloMaintenance.com Please “Like” us on Facebook.com/BuffaloMaintenance Bio: Please call: Buffalo Maintenance, Inc for maintenance work or consultation. JLE Property Management, Inc for management service or consultation Frankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01460075 Certified Renovation Company Websites: www.BuffaloMaintenance.com & www.ContactJLE.com www.Facebook.com/BuffaloMaintenance

Please send us your Maintenance Questions!!! To see your maintenance question in

• Representing owners and buyers since 1998 • Over 1,000 apartment communities sold with over 1 Billion dollars in total sales • Unsurpassed “Client” dedication • Maximum value for your property

Visit us at

www.rentalhousingjournal.com

RHJ ARIZONA FREE SUBSCRIPTION

PROPERTY NAME

NAME ADDRESS

CITY STATE ZIP EMAIL ADDRESS

PHONE

Send for your FREE subscription to Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007 • (503) 221-1260 • fax (503) 221-1545 14

Rental Housing Journal Arizona • July 2014

RENTAL HOUSING JOURNAL ARIZONA

Being a “Remarkable” Property Manager more experience you accrue the better your chances of experiencing both personal career satisfaction and exceptional rewards. “The law of remarkability” is introduced colorfully in chapter 15 of this highly recommended book. Newport states that great missions are transformed into great successes as a result of finding (and doing) great projects that satisfy this “law”. It starts by defining the word remarkable. Literally, it means to be so amazing, so exceptional that people can’t help being inspired to remark about you and what you’re doing. It brings new meaning to the term “word of mouth advertising”. For example, I know of a property manager who organizes and sponsors an annual seminar that’s open to owners, landlords, investors and prospective participants in the rental property industry. This seminar also includes people who are residents. She actually invites any renter who wants to learn how to find, improve and hold onto top quality residential rentals. The

By Marc Courtenay

hether you’re following your passion or just trying to be successful at what you do for a living, it always counts to be in that esteemed group we call “outstanding”. There is more research surfacing that gives practical guidance on the characteristics of those who flourish and those who flounder. It’s not just motivation that matters; it’s also having the right information. That’s one of the reasons you come to propertymanager.com and read these articles. One great idea can enhance your well-being. In a fascinating book titled “So Good They Can’t Ignore You” by Cal Newport Ph.D. I found some powerful insights on being both outstanding and what Newport calls “remarkable” in our chosen occupation. His premise is found in the subtitle of the book; “Why skills trump passion in the quest for work you love.” It’s based on the old axiom that the more skills you have and the

first year’s results were sketchy. By the third year she was attracting prospective clients, lenders, community leaders and the attention of the local media. People were being to remark to one another about the seminar’s value and its sponsor. Some attendees were so impressed they asked to co-sponsor the seminar the next year. It became so popular that the property manager who began this project didn’t need to promote it or market it. Like a remarkable property management company, the seminar was promoting itself. The reputation of the individual who started the seminar was transformed in many positive ways. She was perceived as a positive force for good in her community and was invited to speak before public service organizations like Kiwanis, Rotary and the local Chamber of Commerce. It won’t surprise you that her referrals tripled by the third year and last I had heard she was turning away business because she was so busy. She told me she enjoyed refer-

ring them to her competition. Her competition couldn’t believe that she would do this and offered to take her to dinner in gratitude. Over a fine meal she forged an alliance of cooperation, mutual respect and opportunities to collaborate. If you want to be a remarkable property manager be so creative, proficient and willing to do just a little more than the average that your community feels compelled to remark about you to others. PropertyManager.com a Service of AppFolio

ARIZONA, ALASKA, CALIFORNIA, COLORADO, DELAWARE, FLORIDA, GEORGIA, ILLINOIS, INDIANA, KANSAS, KENTUCKY, MASSACHUSETTS, NEVADA, NEW JERSEY, NEW YORK, NORTH CAROLINA, OHIO, OREGON, PENNSYLVANIA, TEXAS, UTAH, WASHINGTON, WASHINGTON D.C., WEST VIRGINIA & MORE.

5 REASONS TO USE RENTEGRATION

1. Access - Rentegration.com is a web based, access to forms generation, archives, property management database, basic accounting, vendor ordering and other services. 2. Rental and Lease Forms - Unlimited use forms. All Rentegration.com forms are created by attorneys and/or local rental housing associations. OR-RTG-20 Oregon

CHECK-IN/CHECK-OUT CONDIT

ION REPORT

TENANT(S): ____________________ ______________________________ 48-HOUR NOTICE ________________ ADDRESS: ____________________ OF ENTRY __________ OR-RTG-24 Orego__________ n ________UNIT: ______________ CITY: ______________________________ _____ STATE: ________TENA : _____________ ZIP: NT(S) __________ __________________ ______ ADDR Rating

Scale = (E)Excellent (VG) Very Good PET AGREEMENT

WA-RTG-40 Washing

ESS: ____________ __________________ __________________ ____ DATE:_____ (G)Good (F)Fair CITY: (P)Poor ___ __________________ __________________ ____ UNIT: ______ __________________ ___ In _____ STATE: ______ Out In Out ____ ZIP: ______ ___ BEDROOM

IN Out TENANT INFORMATION LIVING AREAS TENANT(S): ____________________________________________________ DATE:________ KITCHEN ADDRESS: ____________________________________________________ UNIT: _________ Walls Walls CITY: _________________________________________ STATE: __________ ZIP: _________

48-HOUR NOTICE OF ENTRY

Walls

Pursuant to RCW 59.18.150, this is your 48 hour notice that g the dwelling unit your landlord or their and premises located agents will be at (Address) __________________ Rods 1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ ____________ WA-RTG-20 Washin Ice Trays ____________ gton ______ Rods Vaccinations: Yes____ No____ License Number: ______________ ____________ on Floor CHE Shelves/Drawer betwee CK-IN/C n the hours of 2) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Floor HEC (Date)K-OUT CONDITI and Vaccinations: Yes____ No____ Carpet/Vinyl/Wo License Number: ______________ od . ON Disposal REPORT(Time) (Time) Light Fixtures 3) Type _______________ Breed _______________ ________ Light Fixtures Size ______ Age __ Weight ___ Color ____ Name DishwasherTENANT(S): __________ The entry will occur Vaccinations: Yes____ No____ License Number: ______________ Doors/Woodwo __________ rk _____ for the following purpos ADDRESS: _____ _______________ ____________ Doors/Woodwork ______ __________ _____e:__________ Counter Tops ______ Additional Security Deposit Required:$ __________ ____________ Locks ________________ ______ ______ CITY: __________ ____________ ___________ _____________UN ______ Locks _______________ ____________ __________________ Cabinets ____________IT: __________ __________ ______ AGREEMENT ____ ______ Ceilings STATE ____________ : ________ ZIP: _____ Rating Scale = (E)Exc Ceilings ____________ __________________ ellent (VG) Very Tenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) Sink Good (G)Good Electric Outlets understands that the additional pet(s) are not permitted unless the landlord gives ten (F)Fair (P)Poor Electrical Outlets IN Out Floor premises ant(s) written permission. Tenant(s) agree to keep the above-listed pets in theLIVING In Landlord AREAS Out Garbage subject to the following terms and Cans conditions: KITCHE In Windows N Out Walls Phone BEDRO Windows

DESCRIPTION OF PET(S)Blinds/Drapes

Stove/Racks

Refrigerator

TV Antenna/Cable

1) The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the Blinds/Drapes Windows tenant’s dwelling Fireplace unit. Blinds/Drapes 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly. Cleanliness 3) Tenant(s) are responsible for the conduct of their pet(s) at all times. Rods 4) Tenant(s) are liable for all damages caused by their pet(s). Floor 5) Tenant(s) shall pay the additional security deposit listed above and/or their rental BEDROOM agreement as a condition to keeping the pet(s) listed above. 1 Carpet/Vinyl/Woo BEDROOM 2 d 6) Tenant(s) shall not allow their pets to cause any sort of disturbance or injury to the Walls Light Fixtures Walls other tenants, guests, landlord or any other persons lawfully on the premises. Windows report to landlord any type of damage or injury 7) Tenant(s) shall immediately caused by Windows Doors/Woodwork their pet. Blinds/Drapes 8) This agreement is incorporated into and shall become part of Blinds/Drapes the rental Locks agreement exe -cuted between the parties. Failure by tenant to comply with any part ofCeilings this agreement Rods shall constitute a material breach of the rental agreement. Rods Floor

_____________________________ Light Fixtures Landlord

Floor

Electrical Outlets

______________________________ Garbage Cans Light Fixtures Tenant TV Antenna/Cable ______________________________ Doors/Woodwork Tenant Fireplace

Windows enterin

__________________ Blinds/Drapes

MethodStove/Ra of Servic ckse: Refrigerator

Personal Service:

additional day for

Ice Trays

Toilet

Shelves/Drawer

Ceilings

Locks

Cleanliness

Electric Outlets

BEDROOM 1

Walls

Windows

5. Value -

Large property management

for each • unit, property and company. Per- only forms generation will save time and Logos are provided on the CD in all three forms: all black, reversed to white, or inproperty PMS 280 Blue/PMS 7543 Gray spot money or 4/color applications. over other methods. Mid and small fect for mid and small size managPlease see below for specific use examples. ers and independent rental owners, who size property managers and independent • No other colors are acceptable for use for the logo. neither have the need or budget for larger, rental owners can manage their entire busi• No altering of the logo is allowed. If you have a special circumstance that requires something not ness at aforfraction more expensive provided on software. the CD, please call NTN NA TIO NAL HEADQUAR TERS 1.800.228.0989 assistance. of the cost of other soft• Logos should not be put over a busy background. ware and forms. 4. Management Database - Rentegration. BLACK com is an easy to use, database driven soft- WHITE (with 40% gray circle) from the database. The modules are all integrated and work together. For example, a customer can use the rent-roll function to identify all delinquencies, apply fees, and create eviction forms with a few simple clicks of the mouse. BlueIndustry PMS 280/Gray PMS Partner 7543 Exclusive of:

PMS 280/PMS 7543 over color

Walls Windows Post

and Mail:

Blinds/Drapes

compliance if served

Tub/Shower Disposal Fan (Exhaust) Dishwas

her

Floor

Owners and

OM 3

Walls

BATH ROOM Towel Bars

* Add one Sink & Vanity

Counter Tops

Electric Outlets Cabinets Sink Light Fixtures Floor Windows Essential Services

Rods

by post and mail.

Floor Light Fixtures Doors/Woodwork Locks Ceilings Electric Outlets Smoke Detector

sales@rentegration.com Doors/Woodwork

Locks

ton

Color forand National Tenant Networkthat Logouse Rentegration.com for companies managers can Standards track income expense

Blinds/Drapes Plumbing

Heating

Electricity

Hot Water

Rental Housing Journal Arizona • July 2014

BATH ROOM

Towel Bars

Sink & Vanity

Toilet

Tub/Sho

be reproducedwer without

written permission.

www.Rentegration.com

503-933-6437 15

RENTAL HOUSING JOURNAL ARIZONA

Rental Housing Journal Arizona • July 2014