Arizona Rental Housing Journal June 2015

Rental Housing Journal Arizona

June 2015 - Vol. 7 Issue 6

3. 6 Keys to Maximize Leasing Results 4. Knowing the Limits on Collection Practices for Property Managers 6. More Consumers Positive On Housing, But Not Quite Ready to Leave the Sidelines

7. Behind the Leasing Desk 10. Ask the Secret Shopper 11. Summer Maintenance Checklist Coffee – More than Just a Drink When Motivating Your Team

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

What Does a Messy Car Have to Do With a Bad Tenant?

Home Buying Pays Off Fast, but Hurdles Remain for Renters

M

any U.S. homebuyers can break even in less than two years if they buy a home instead of renting it, but financial barriers and preference are big factors in the decision to continue renting.

I

• Twenty percent of renters say they prefer to rent than buy. More than half (53 percent) say financial limitations keep them from buying.

• The point at which homebuyers can expect to break even on a home purchase - Zillow's Breakeven Horizon - lengthened in many markets in 2014 as home value growth flattened. continued on page 7

Can I Get a Witness? Notices, Documents and The Courts

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henever a landlord has to go to court against a resident, one factor crucial in winning is to have the correct documentation. Cases can be won or lost depending upon your notices, letters, repair invoices, photographs and other written evidence. This article will provide a general overview of written evidence as it relates to landlord and tenant issues.

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’m sure that most landlords know the value of an in-depth screening process when deciding to approve or deny a tenant. You would be surprised how many landlords that I talk to actually skip this step and just trust what is written on a tenant’s application. It seems to be most prevalent among investors that manage their own properties and either don’t want to take the time or simply don’t know where to order the background reports necessary.

In my opinion this is the most costly mistake that any landlord can make. If an applicant has a criminal record or a bad rental history you can rest assured that they won’t tell you this on their application. They’re gambling on the fact that you might not follow up with a detailed screening. Typically this happens when they know that the owner of the rental is the same person that is managing the property. These ten...continued on page 5

• Homebuyers can break even on a home purchase in less than two years in 66 percent of U.S. metro areas, according to the Zillow fourth quarter Breakeven Horizon report.

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Giving a Renter Notice A notice to your renter of a viola-

tion of your lease, or community policies or the Arizona Residential Landlord and Tenant Act is the first step before taking any potential court action. If the notice is based upon complaints from other residents, properly document these alleged violations. Have the person who is complaining provide you with all the details in writing. This way, if the resident later decided not to cooperate or testify, you still have documented your basis for giving notice. ...continued on page 2

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Can I Get a Witness? ...continued from front page Also, document your file by noting the date, time and substance of the complaints.

If you are receiving letters from a resident, make sure you answer the letters. Keeping a paper trail can be very crucial if your situation ever reaches the court.

Be specific in your notice to your residents. For example, a noncompliance letter notice under A.R.S. § 33-1368(a) requires that the landlord “specify the acts and omissions constituting the breach.” Don’t say, “excessive noise from the apartment.” Specify, “On June 10, 2014 at 1 a.m., your stereo was so loud your neighbors couldn’t sleep.” Don’t say, “Violation of paragraph 10 of your lease.” Spell out the offense.

You must provide sufficient details

so the resident has enough information to know what he or she is being accused of.

Make sure you give the right kind of notice that the situation calls for.

For example, you would not want to give a renter an immediate eviction notice for alleged drug trafficking if you do not have proof but only a suspicion based upon complaints of excessive traffic. In this case, you would use a noncompliance notice for “excessive traffic in and out of your apartment at all hours of the day and night staying for short periods of time and disturbing the peace and quiet of other residents.”

Prompt, personal delivery of notices to someone in the apartment old enough to understand what they are receiving, certified mail, or regis-

tered mail are the only legal means of service under state law.

for a witness to be excused from work.

Getting a Witness If you have to go to court, make sure you have eyewitnesses with personal knowledge of the accusations.

Letters from residents or even affidavits are not admissible because they are hearsay and you cannot ask questions of a piece of paper. The normal exception is business records, and the judge determines how much weight, if any, to give to the documents.

If a witness will not voluntarily come to court, you can have the court issue a subpoena, which requires the person to appear and testify. A subpoena is a valid reason

The landlord also needs to properly document any damages to the apartment caused by the resident.

The move-in/ move-out checklist identifies the apartment condition at the start and end of tenancy. If damages are found, photograph them and have them viewed by people who saw the apartment at move-in so they can compare the condition at move-out.

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RENTAL HOUSING JOURNAL ARIZONA

6 Keys to Maximize Leasing Results

By Tami Cox

I

n a competitive leasing market, it's important to stay on top of your game if you want to minimize vacancy rates. Regardless of whether you are new to leasing or have been doing it for years, try these proven strategies to gain better results from your leasing efforts on multi-family properties: 1. Know your market - When was the last time you not just pulled rental comps, but actually visited properties in the direct vicinity of the property to be leased? Do you know what the "other" guys units look like? What a prospective tenant is getting for their money? Are your rents in line with the current market for the same bedroom/bathroom configuration and square footage?

How friendly is the leasing staff out there? Are your competitor's buildings well maintained or going downhill fast? How can you lease what you have if you never leave your desk when doing your "market research"? This may seem time intensive and tedious. But even a day or two spent on such activities will be worth it.

2. Be responsive to leads - I don't know about you, but one of the most irritating things as a person looking for a new place to call home is if you reach out to a place you're interested in, and they don't call you back! I consider this to be unprofessional,

and surprisingly, there are a lot of these property managers and leasing agents out there. Maybe they don't care about leasing their units? Maybe they have so much money to throw around that how long their units sit vacant doesn't matter. Or, maybe they are just too overwhelmed with responsibilities to be effective. This is how you win and your competitor loses out. Be that contact person that cares about every inquiry. You never know who that lead may become to you in your circle of influence - your next tenant or an amazing networking contact! Even if nothing fizzles out from it, determine to be a professional who gives every lead equal respect and attention.

3. Arrive ahead of your prospect for showings - this is important.

Units get hot and they get cold, depending on your geographic location and climate. No one wants to see an apartment and shiver or sweat as they do! A definite negative strike against you from the onset. And have you gone around and turned all the lights on in the rooms? So people can actually see the layout and wall colors and so forth in the best possible way? If you stumble to find a light switch when showing a unit, that makes you look like you've never been there and a potential tenant doesn't get a warm fuzzy that you know what you're talking about when they ask questions about living there. They count on you to point

out the features that they are just seeing for the first time. If you don't even know them, well - why would they lease from you? The more money you are asking them to cough up each month for that unit, the better you need to know it - inside and out!

4. Create the feeling of home - I can tell you, small details matter.

Larger properties know this and that's why they pay stagers to come in and make a model feel like someone lives there - in a hotelish sort of way. Every prospect knows it's been "staged" when they walk in. But they don't care. It helps them visualize what the unit will look like with real live furniture in it. Now if you have a smaller property and full staging isn't feasible or an option, at least do something to add the feeling and atmosphere of home. It's not expensive, and a trip out to your local department and/or building supply store will do the trick. Consider picking up a few low cost but eye catching pieces to be focal points that fit with the style of the room and your unit to be leased. Things such as a flowering potted plant, an attractive candle with a scent most people will like (that you can light just before the showing to freshen the smell of the unit), a seasonally attractive front door mat welcoming visitors, and so

forth. I like to leave the flowers as a house warming gift to the new tenants, they love it! You can decide how simple or elaborate you want to get. But trust me, leasing success is in the small details your competitor doesn't think matter. You don't have to lease a 300 unit building to do such things. In fact, the smaller your building, the more important getting a new tenant in quickly becomes to your bottom line.

5. Display unit details and your contact information - I'm shocked at how often this is overlooked. If I'm going to buy a house, it's common for realtors to display information on the kitchen counter or somewhere obvious to visitors regarding the home they are looking at. Because they know it's competitive out there, and they want to sell that house and build a network of contacts. Why wouldn't you put the same effort in if you were leasing? A prospective tenant may look at several properties the same day, and how will they keep them all straight if they have nothing physical to take with them as a reminder of that unit and have a way to follow up with you if they want to lease it? Creating a flyer for each unit you have to lease is a smart move. And having business cards along with it helps as well. Don't continued on page 10

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RENTAL HOUSING JOURNAL ARIZONA

Messy Car ...continued from front page ants typically won’t even apply to a company like mine (www.

C B P ro p e r t y M a n a g e m e n t . c o m ) because they know that doing a detailed screening is simply our job and there is no way that we will skip that step.

Screening doesn’t start when the application is turned in, it actually starts during the very first communication with that tenant. More importantly during the showing. You should always be present for showings and never just give out the key or a lock box code. If you aren’t present then you obviously risk vandalism, but you also miss out on the ability to start the screening process.

Keep in mind that your ultimate decision of whether to approve or deny a tenant should be made after getting the whole picture of who they are and how responsible of a life they have lived. Some negatives can be overlooked if there are a lot of other positives.

Having a conversation with someone while walking through the unit can give you a very good feeling of what their demeanor and behavior is. You also get to enlist a couple little “tricks” if you meet with them in person. One being at the end of the showing, be sure to walk them out to their car. As far as they are concerned you are simply being polite and having a conversation with them. If you are renting a non-smoking unit and they say they don’t smoke then you will be able to verify this if you are within a few feet of their car door when they open it. Most smokers will smoke in their car and you will be able to smell it. Also take a peek inside their car through the windows as you are standing there. If it is messy with fast food wrappers and other garbage throughout the vehicle then they will most likely keep their home in this same condition.

Obviously this isn’t a reason to deny them, but it just adds to the total picture you are creating of them while going through the screening process.

We may overlook this if everything else checks out or if they happen to have a job that requires them to be in

4

their vehicle for long periods of time.

Once they turn in an application don’t skip the step of ordering their background reports. It is actually a lot easier than you might think. If you do a simple search on any search engine website for “tenant screening” you will be given numerous choices. Personally I only like to use these companies to get the credit, criminal, and civil court reports. This will tell you if they pay their bills on time, have a criminal record that you should be concerned about, or have been a party to an eviction in civil court.

When it comes to the credit report I would suggest not putting too much emphasis on the actual score and look at their actions. Some of our absolute best tenants are ones that went through a foreclosure during the down economy over the last 7 years. Instead of looking at the score, look at why their score is low and what their actions have been since the last delinquent payment or collection was posted. If you see a collection account it will show when their last recorded payment was and if they are up on their payments. If it doesn’t then you can always ask for payment verifications from the applicant. Everyone has made mistakes or possibly just lost a job at some point and couldn’t pay their bills. The important thing to find out is if they took responsibility for their actions and have handled it responsibly by attempting to get the debt paid off.

When it comes to criminal reports you should use your best judgement.

Obviously some things are way more concerning as a landlord than others.

If they have violent crimes on their record and they are moving into a multi-unit building we try to avoid them as they may pose a threat to their neighbors. You also want to look out for dishonest crimes like fraud and anything that would give you reason to not trust them.

The civil report will let you know if they have been a party to a lawsuit or eviction in the past. If there is an eviction then you definitely want to

get that landlords opinion of what happened. In most cases you won’t want to rent to that tenant, but in some cases it was simply a matter of the tenant losing their job and not being able to afford rent any more.

The main deciding factor for me is whether the tenant made good on the money owed to that landlord and if there was any intentional damage caused to the unit. If they have made good on paying that landlord the money owed or they have a payment plan and haven’t missed any payments then they might still be acceptable.

Then there is the previous landlord interviews. Be sure to check with both the current landlord and the one previous. Unfortunately not all landlords are honest and the current landlord may tell you they are perfect tenants in an attempt to get rid of some bad tenants. The previous landlord has no skin in the game and will most likely be honest with you if they had a bad experience with your applicants. The main questions you should ask are about their ability to pay rent on time, if they had to post any adverse action notices, and if they would re-rent to these tenants if they applied for their unit again. Also be sure to find out if there was any damage to their unit when these tenants moved out and how they handled it if there was money owed by them.

The main thing to remember when screening a tenant is that no matter how busy you are it will be well worth taking the time to be very detailed. Document everything that you base your decision on. If you deny them and they want to challenge it then you should be able to prove that you had grounds to do so.

Within our company we end up only doing 1-2 evictions every year even though we manage properties in Portland, Salem, Eugene, and all of the surrounding areas. The main reason is that we do a very detailed screening and tenants know up front that if there is something negative in their background we will most likely find out about it.

Happy Screening!

Christian Bryant Portland Area Rental Owners Association (www.PortlandAreaROA. com) Coldwell Banker Property Management (www.

CBPropertyManagement.com)

RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA

Knowing the Limits on Collection Practices for Property Managers

By Marc Courtenay

O

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:

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 deliv-

ered) 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 question-and-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 agree-

ment” 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.

1. 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.

2. 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 RENTAL HOUSING JOURNAL ARIZONA • June 2015

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RENTAL HOUSING JOURNAL ARIZONA

More Consumers Positive On Housing, But Not Quite Ready to Leave the Sidelines Survey Results Suggest Continued Modest Housing Growth in 2015

R

esults from Fannie Mae's April 2015 National Housing Survey™ show some improvement in housing sentiment, but likely not enough to trigger any breakout improvements in housing market activity this year. Among those surveyed, the share saying they would prefer to buy a home if they were to move increased to 63 percent in April, following a drop of six percentage points in February and March. In addition, average home price growth expectations continued their steady climb from late last year, with respondents now saying home prices will increase by 2.8 percent during the next 12 months. However, the share who believe this is a good time to buy a home decreased by four percentage points as consumer concerns regarding high home prices surged for a second consecutive month, matching renewed concerns regarding the state of the economy.

These data points as a whole mirror Fannie Mae's Home Purchase Sentiment Index (expected to be released this summer), which has remained largely flat since last fall, further suggesting that housing growth may remain subdued in 2015.

"The spring and summer home buying season has gotten off to a stronger start, reflected in some of the improvement in consumer housing sentiment," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "The share of consumers who intend to own rather than rent their next home rebounded after a two-month slide. Meanwhile, home price growth expectations strengthened to the strongest pace since last October. Nevertheless, consumers continue to express concerns about the recent weakening economic conditions and high home prices.

These combine to depress the share of consumers believing it is a good time to buy a home. When we consider both the continued caution of consumers and the positive start to the year, we believe that these results support our expectation that 2015 will be a year of modest growth in housing activity."

Survey Highlights Homeownership and Renting • The average 12-month home price change expectation rose to 2.8 percent.

• The share of respondents who say home prices will go up in the next 12 months fell to 46 percent. The share who say home prices will go down fell to 7 percent.

• The share of respondents who say mortgage rates will go up in the next 12 months stayed constant at 52 percent.

• Those who say it is a good time to buy a house fell to 63 percent, while those who say it is a good time to sell remained at 46 percent – tying last month's survey high.

• The average 12-month rental price change expectation rose to 4.1 percent.

rent fell to 32 percent.

The Economy and Household Finances • The share of respondents who say the economy is on the right track decreased by 1 percentage point to 42 percent, while those who say the economy is on the wrong track rose by 1 percentage point to 49 percent.

• The percentage of respondents who expect their personal financial situation to get worse over the next 12 months fell to 10 percent – matching the survey low.

• The percentage of respondents who expect home rental prices to go up rose to 54 percent.

• The share of respondents who say their household income is significantly higher than it was 12 months ago rose 2 percentage points to 24 percent.

• Those who think it would be easy to get a home mortgage increased by 2 percentage points to 52 percent, while those who think it would be difficult remained at 46 percent.

• A new survey low, 29 percent of respondents say their household expenses are significantly higher than they were 12 months ago. A survey high, 60 percent say their expenses are the same.

• The share who say they would buy if they were going to move rose 3 percentage points to 63 percent, while the share who would

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RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA

Behind the Leasing Desk with Heather Blume

Dear Heather, I have worked for the same property management company for several years and have worked my way into a good salary, benefits, and a Manager in Training role. With this role comes great responsibility, including taking on the challenge of supervising employees. The downside to this role is that I don't really have the autonomy to really fix some issues that drive me crazy within my office and for the most part, my hands are tied when it comes to disciplinary action issues because that is my

manager's responsibility. You see, I have a coworker that has a variety of health issues and it is known within the office and management, so therefore, we have to accommodate. I have no problem with this for the most part. My issue is that she calls out a lot. When I say a lot, I mean it is to the point of being predictable. Even my maintenance staff make jokes about her calling out so much. For instance, I will get a text that tell me how she's not feeling well and how it's ruining her weekend. First off, this is rather annoying because I frankly don't

care what she is doing on her days off.

Secondly, this irritates me even more because in my eyes this is a set up for the inevitable call out for her return to work from her weekend break. Not only that but she won't hesitate to share with you that she suffers from several ailments at the same time and all of the details of them ...I am not trying to belittle her health conditions but I honestly have never met anyone with more issues that prevents them from working in my life!

I have brought these frustrations to my manager's attention many times. The

response I get is very HR (which I understand) and it's typically something like "you have to accommodate by giving breaks during the day or allowing her to go home early or come in late".

Seriously?! Can't I just get a Leasing Agent that shows up and isn't a Web MD nightmare? Although her call outs have been less frequent than before, it's still predictable and if she does show up, she is so loopy from her medications it makes it difficult to work with her. My manager has told me to send her home if she comes to work loopy but frankly, I ...continued on page 8

cranky management? The tone you set with your attitude and demeanor at the onset of the leasing relationship can make the difference in whether or not a prospect leases with you or your competitor. You've heard the old adage, "People do business with people they like", right?

That still holds true. A friendly, personable leasing professional will get better results than one who's not.

Even if you've had a bad day, shake it off before you show up at that appointment. It's you on stage first, then the unit you're leasing. In that order.

These six simple techniques will help you lease your units more quickly. Provided your rent rates are priced right for your market, and you have value to offer a prospect.

There are more, and cumulatively, they all add up. But you can maximize your leasing results with a little more effort and attention to detail.

You may not become the star leasing agent or property manager of the year, but when preserving and growing an asset - cash flow is king.

Without leased units, you have no cash flow. Decide today to step up your game and stand out from the

competition. Your operating account will thank you (and hopefully, so will the building owner)!

6 Keys...continued from page 4 forget to make a simple sign in sheet for visitors - include spaces for name, number of adults, desired move in date, any pets, email, and telephone numbers for contact. This gives you a record of who saw the unit and a handy reference to follow up. Even if they don't lease this particular unit, you may have others that you can lease to them as they become available.

6. Be a friendly face - Again, this may not sound like the leasing strategy of the century, but you'd be surprised at how far being "friendly" can get you! Who wants to deal with

Tami Cox is a Business Consultant and multiple business owner with over 15 years of experience in the commercial real estate market (finance background). She helps business owners, investors, and entrepreneurs nationwide to become more profitable, put systems in place to run their businesses more efficiently, and reach their goals.

For more information and to request her services, visit her website at www.sizzlinghotbusiness.com.

myitzchaki@MSYLaw.com

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landlord or their agents unit and ______________________ premises located at (Address) will be CHECK-IN/CHE ______________________ CK-OUT CONDIT ION REPORT___________

Floor

Carpet/Vinyl/Wood 3) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Disposal Vaccinations: Yes____ No____ License Number: ______________ Doors/Woodwork

___________ ______________________ Out CITY: ______________________ ________ DATE:________ ___________

Walls

Stove/Racks

Blinds/Drapes

Refrigerator 1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ Rods License Number: ______________ 2) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ Floor License Number: ______________ Shelves/Drawer

Additional Security Deposit Required:$

WA-RTG-40 Washington

48-HOUR NOTICE OF ENTRY

TENANT(S): ___________ ______________________ ADDRESS:

In

______________________

on

_ Light Fixtures TENANT(S between the hours ): ____________________ (Date) of and ____________________ Doors/Woodwork ADDRESS: . ____________________ __________ (Time) ________________ (Time) ____________________ CITY: Locks____________________ The entry ________UN will occur for the following __________ _____ STATE: ________purpose:IT: ______________ ___________ Rating CeilingsScale = (E)Excellent ZIP: _________________ ______________________ (VG) ______________________ Very Good___________ ___________ (G)Good ___________ (F)Fair (P)Poor Electric Outlets IN ______________________ _______________________ Out LIVING AREAS ______________________ In Out _ KITCHEN In Out Walls

Cabinets Tenant(s) Tenant(s) certify that the above pet(s) are the only pet(s) on the premises.

Ceilings understands that the additional pet(s) are not permitted unless the landlord gives ten Sink ant(s) written permission. Tenant(s) agree to keep the above-listed pets in the premises Electrical Outlets subject to the following terms and conditions: Floor Garbage Cans

Windows 1) The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the Antenna/Cable tenant’s dwelling TV unit.

Blinds/Drapes 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly.

Fireplace 3) Tenant(s) are responsible for the conduct of their pet(s) at all times.

4) Tenant(s) are liable for all damages caused by their pet(s).

Cleanliness 5) Tenant(s) shall pay the additional security deposit listed above and/or their rental agreement as a condition to keeping the pet(s) listed above.

6) Tenant(s) shall notBEDROOM allow their pets to cause any sort of disturbance or injury to the 1 BEDROOM 2 other tenants, guests, landlord or any other persons lawfully on the premises.

Walls 7) Tenant(s) shall immediately report to landlord any type of damage Walls or injury caused by their pet.

Windows 8) This agreement is incorporated into and shall become part of Windows the rental agreement exe Blinds/Drapes -cuted between the parties. Failure by tenant to comply with any part of this agreement Blinds/Drapes shall constitute a material breach of the rental agreement.

BEDROOM 3

Walls

Landlord

Windows

BATH ROOM

Towel Bars

Blinds/Drapes

Personal Service:

Post and Mail:

Rods

Shelves/Drawer

* Add one additional

d

Phone

Windows

Refrigerator

Method Ice Traysof Service:

Sink & Vanity

Toilet

Tub/Shower

Walls

Stove/Racks

Blinds/Drapes Rods Floor

Carpet/Vinyl/Woo

Disposal

Light Fixtures

Floor day for compliance

if served by post

* and mail.

www.rentegration.com 503-933-6437 Rods

_____________________________ Floor Landlord

Light Fixtures

Doors/Woodwork

Fan (Exhaust) Doors/Woodwork

Rods

______________________________ Floor Tenant ______________________________ Light Fixtures Tenant

Locks

Ceilings

Electrical Outlets

Floor Locks

Counter Tops

Electric Outlets Ceilings

Cabinets

Light Outlets Electrical Fixtures

Sink

Ceilings

Electric Outlets

Smoke Detectors

Windows

Services

Blinds/Drapes

Fireplace Plumbing

BATH ROOM

Cleanliness Heating

Ceilings

Towel Bars

Electricity

Electric Outlets

Hot Water

Windows

Windows ©2009 NO PORTION

Blinds/Drapes

permission.

Blinds/Drapes

Rods

Tierra Antigua Realty (520)797-6900

tucsonrealestate@mindspring.com

Fan (Exhaust)

of this form may Floor be reproduced without

Rods

Floor

Floor

Light Fixtures

Electric Outlets

written permission.

7

Light Fixtures

Light Fixtures

Doors/Woodwork

Doors/Woodwork

Locks

Locks

Ceilings

Ceilings

Electrical Outlets

Electric Outlets Smoke Detectors

Essential Services

Plumbing

Heating

Electricity Hot Water Smoke Detectors

©2009 NO PORTION

PMS 280/PMS 7543 over color

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

Tub/Shower

Walls

RENTAL HOUSING JOURNAL ARIZONA • June 2015 Smoke Detectors

FREE market analysis & automatic email alerts of newly listed properties.

Toilet

BEDROOM 2

Smoke Detectors

may be reproduced without written

sales@rentegration.com

WHITE (with 40% gray circle)

Sink & Vanity

BEDROOM 1 Walls

©2011 NO PORTION of this form

Doors/Woodwork

Locks

Floor

Garbage Cans

TV Antenna/Cable Essential

Doors/Woodwork

Locks ©2011 NO PORTION of this form may be reproduced without written permission.

Light Fixtures

Dishwasher

Interested in Buying or Selling Multi-Family Properties in Metro Tucson?

of this form may

be reproduced without

uNaCCePTaBLe CoLor uSaGe

written permission.

do NoT change the color

do NoT alter in any way

do NoT put over a busy background

RENTAL HOUSING JOURNAL ARIZONA

Reserch Report ...continued from page 7

Even though buyers in most markets can break even on a home purchase in less than two years,i nearly half of renters in a newly released survey said their credit or finances keep them from buying a home.ii Of renters surveyed by ZillowÂŽ, 16 percent said they can't qualify for a home loan, 18 percent said they can't afford taxes, maintenance and other costs associated with homeownership, and 13 percent said they don't have enough savings for a down payment. About a quarter said they struggle to pay their rent.

According to the survey, 82 percent of renters are long-term renters, and 57 percent are long-term renters who have lived for a long time in the same home.

Just 14 percent of renters said they

aren't staying long enough in the same place to buy.

Zillow's survey sheds light on why some renters are not buying homes, despite historically low interest rates, prices that remain below peak levels in many areas and rising rents. Mortgage math aside, 20 percent of renters said they simply prefer to rent.

"If the buy versus rent decision were about simple math, we'd likely have millions more homebuyers in the market, because the equation is tilted heavily in favor of buying," said Zillow Chief Economist Dr. Stan Humphries. "But no matter what the numbers say, buying a home is a huge commitment. Every day, Americans make decisions to buy or rent based on any number of personal dynamics, including prefer-

Metropolitan Area

www.renta l hous in gj o u r n a l .co m

8

United States NY-Northern NJ Los Angeles, CA Chicago, IL Dallas-Fort Worth, TX Philadelphia, PA Houston, TX Washington, DC Miami-Fort Lauderdale, FL Atlanta, GA Boston, MA San Francisco, CA Detroit, MI Riverside, CA Phoenix, AZ Seattle, WA Minneapolis-St Paul, MN San Diego, CA St. Louis, MO Tampa, FL Baltimore, MD Denver, CO Pittsburgh, PA Portland, OR Sacramento, CA San Antonio, TX Orlando, FL Cincinnati, OH Cleveland, OH Kansas City, MO Las Vegas, NV San Jose, CA Columbus, OH Charlotte, NC Indianapolis, IN Austin, TX SOURCE Zillow

ence, flexibility needs, family factors and, yes, financial considerations.

There is no right or wrong choice, and it's important that America's housing market maintains a number of affordable options for renters and buyers, no matter their preferences."

Over the last year, as home-price appreciation has slowed down, the length of time it takes to break even on a home purchase grew slightly in most major metros. The breakeven analysis looks at how long it takes to come out ahead on a home purchase versus renting the same home, recouping the costs of buying, including taxes and maintenance.

Among the top 35 metro areas in the U.S., Dallas-Fort Worth had the lowest breakeven horizon, at 1.2 years. Indianapolis, Ind. and Detroit were next at 1.3 years. The highest

breakeven horizons were in Los Angeles, at 5.1 years, Washington D.C. (4.2 years) and San Diego (3.8 years). The national average is 1.9 years.

Zillow's breakeven horizon incorporates all costs associated with buying and renting, including upfront payments, closing costs, anticipated monthly rent and mortgage payments, insurance, taxes, utilities, maintenance, and renovation costs.

The horizon also factors in home equity growth for buyers, and, for renters, income earned if they invested the same amount of money into an interest-bearing account. It also factors in historic and anticipated home value appreciation rates, rental prices and rental appreciation rates.

Zillow Home Value Index (ZHVI) $ 178,700 $ 383,300 $ 533,700 $ 187,100 $ 155,700

Zillow Rent Index (ZRI) $ 1,355 $ 2,348 $ 2,475 $ 1,600 $ 1,449

Q4 2014 Breakeven Horizon (in years) 1.9 3.4 5.1 2.2 1.2

Q4 2013 Breakeven Horizon (in years) 2.0 2.8 1.5 1.7 1.6

$ 202,800 N/A $ 362,800 $ 212,500

$ 1,554 $ 1,502 $ 2,104 $ 1,782

2.4 1.5 4.2 1.7

2.8 2.1 2.8 1.1

$ 154,900 $ 369,100 $ 715,800 $ 114,400 $ 285,200 $ 203,400 $ 343,900 $ 211,400

$ 1,238 $ 2,167 $ 3,088 $ 1,105 $ 1,670 $ 1,228 $ 1,839 $ 1,506

1.5 3.4 2.6 1.3 1.5 2.3 1.9 2.2

1.1 3.0 1.9 1.2 0.7 2.3 1.9 2.0

$ 474,100 $ 132,500 $ 148,600 $ 244,100 $ 289,200 $ 125,300 $ 281,400 $ 335,700 N/A $ 170,100 $ 138,000 $ 119,700 N/A $ 187,600 $ 852,800 $ 146,300 $ 158,900 $ 129,100 N/A

$ 2,310 $ 1,141 $ 1,272 $ 1,717 $ 1,834 $ 1,137 $ 1,592 $ 1,638 $ 1,305 $ 1,311 $ 1,220 $ 1,168 $ 1,223 $ 1,197 $ 3,202 $ 1,252 $ 1,242 $ 1,195 $ 1,669

3.8 1.6 1.5 2.9 1.6 1.6 2.0 2.2 1.6 1.6 1.7 1.8 1.6 1.5 2.7 2.0 2.0 1.3 2.1

1.9 3.8 1.0 2.2 2.1 1.9 2.1 1.0 2.7 0.9 2.1 2.1 2.7 1.2 2.9 1.9 2.1 2.1 3.0 RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA

Behind the Leasing Desk ...continued from page 7

Please Help!

Sick and Tired of those who are ALWAYS Sick and Tired Dear Sick and Tired of those who are ALWAYS Sick and Tired, Wow! This is a really horrible situation and I can imagine that you must be thoroughly frustrated, even more than your letter sounds. It's always difficult to work in an environment where you feel there is someone who is shirking their responsibilities, and working in a property management office with that sort of a person is extra hard because our days move so fast that once you get behind, you never feel like you can catch up.

First, while I very much sympathize with your situation, I have to concur with the "very HR" response that you've gotten so far. Employers MUST make accommodations to sick employees under federal law, but more than that, this particular employee has already placed a notso-veiled threat against them.

Whenever you have an employee who KNOWS and has the audacity to say that they know they can sue their employer upon termination, it's a very sticky situation. On one hand,

if any other employee pulled this behavior, you'd do the write ups and terminate them. On the other hand, it's going to cost you much more in the legal and public relations arena to get rid of this person than to let them half ass their job. From a company view point, you're picking up the slack, so they aren't out anything and they don't have to deal with the problem.

Second, you have to make sure that even through your dissatisfaction with this employee that you are not making the work environment hostile so she will leave. She can sue the company for that as well, and a lot of those kinds of suits are being won currently, plus with the health issues she has, she'll have the sympathy on her side. Problems all around on that front.

Third, if she comes in "loopy" on her meds, you really should send her home. I know this puts additional stress on you, but remember that some states are verbal contract states and what she says in her inebriated state, you and your company can be held legally liable for. On top of which, any contract that she signs with a resident might not be valid if she, as a company representative, is in an altered state. Plus, in such a state, she could write a contract for either the wrong amount of rent or the wrong lease term, and once the resident has signed it with her, you're bound to that contract. Send her home when she's a threat to your NOI. So let's talk about some solutions.

One of the things that you mentioned is that you can't afford to be alone in the office anymore than you already are. This may just be the background of a staffer talking, but one of the quickest ways to call attention from the corporate office to the escalated degree of the problem is to call your local staffing agent when she calls out, or when you have to send her home sick. The corporate office might not notice the stress that it puts you under to not have her there, but they WILL notice the stress that staffing costs put on your budget. This is a risky solution, however, so it might be worth it to just contact your office about ASKING for staffing. It will have a similar effect, and won't potentially

Arizona A monthly circulation to more than 10,000 apartment owners, property managers , on - site & maintenance personnel .

As for managing your feelings on get you in as much trouble as just calling a staffing agent without the issue, my best advice to you is to step back and take some deep perapproval will.

Now here's the good news - spective on the issue. I want you to People who are frequently absent or ask yourself if it's really worth you who do not seem to connect with caring if you believe her or not? If it's their workplace rarely stay there worth carrying anger and spite over something METRO, you cannot ARIZONA prove and APT long term, so she may be on her way VALLEY, out. Also, if she's made the lawsuit something that in the long run will statement, that might be what she's not make a difference? My mother really looking for, and when you do once told me that you only have so not provide her with the grounds to many pieces in your matched set of sue, she'll move on and look for emotional luggage, and you have to another rube to play this game with. choose what's worth packing in Apr, inJun, Dec them.Oct, You can't carry everything, so How you, Feb, as a manager train-Aug, ing, handle a situation like this can make sure that she's worth putting be a defining moment for your in there. career. You can take the path of Good Luck to you! secretly hating your coworker (and Heather believe me, MANY of us take that path, as it's the easiest), or you can Heather is the Imagination In try to ignore as much of the situation Charge of Behind the Leasing Desk as you can and realize that you can Training & Consulting Services out of only do what you can do in any given day, or your can try to reach Seattle, WA. An accomplished national speaker, trainer, consultant, career the employee on a personal level. coach, and author of both books as well The last is the hardest to do, but as countless industry related articles, also the most long term rewarding of Heather holds her CAS designation, is the options presented. To open comMETRO, NAA Advanced InstructorARIZONA trained, and APT munication you have to re-founda- VALLEY, tion some modicum of trust between has been a member of the NAA Faculty since 2009, serving as a WMFHA, the two of you. I would start by givCAM, and NALP instructor since ing her massive positive reinforce2009. You can check out more of her ment on days when she doesn't call musings, podcasts, and class offerings out sick or come in loopy. Extending at www.behindtheleasingdesk.com yourself as a mentor and trying to have a different relationship with Jan, Mar, May, Jul, Sep, Nov, this employee might encourage her 1010 East 62nd Street, Los Angeles, CA 90001-1598 to come to work more often and to Phone: 1-800-624-5269 • Fax: 1-800-624-5299 call out less.

ON-SITE-NW SEA

Salsbury Indu

ON

Salsbury Indu

Octoberp

September

p

need her in the office and can't afford to be alone in the office any more than I already am.

How do I balance my feelings of frustration and disbelief in her legit "sick days" and still be in compliance with the law and not on the wrong side of an lawsuit? Some days I believe she is ill and other days I think she just didn't want to get up out of bed and come to work. She has even mentioned that she knows my manager can't fire her because she could sue based on her medical issues. I know we all have a right to call out sick but I just feel like it's predictable and abusing that very policy that is meant for those that do have medical issues that truly inhibit them from working normal shifts or performing daily tasks. How do I overcome these feelings of not believing her, not feeling confident in her attendance, not feeling confident that her ailments are severe enough to prevent her from working or performing her duties, and yet knowing that I have to accommodate her call outs and deal with it?

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RENTAL HOUSING JOURNAL ARIZONA • June 2015

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RENTAL HOUSING JOURNAL ARIZONA

Northwest

E

ach apartment community has certain features and benefits, which are the selling points of that particular community. It could be its location, friendly staff, spacious floor plans, beautiful landscaping or affordable price; just to name a few. Yet even with the most fabulous features, there will be times when the apartments you have available won’t seem to meet the needs of your prospective renters. The following question from a leasing consultant addresses this issue: Q: We have several vacant apartments right now and I know I’m supposed to try and rent all of them, but how can I rent to someone when it doesn’t seem like the apartment will really meet their needs?

A: Things are not always what they “seem.” Many times you may have the tendency to make an assumption about what you think someone needs based upon your limited perspective, frame of reference or belief system. For example, you might have 2 bedrooms available right now that are all located on

he

T Ask

Secret Shopper

upper floors. If a family with small children comes in, you might automatically assume that they are not going to be interested because you think they won’t want to deal with the stairs. On the other hand, you could have all first floor openings and your prospective renter could be a single woman. You might think women living alone only want upper level apartments because you believe they feel safer off the ground.

Therefore, when you have a single woman seeking a new home, you may not try to sell her on a first floor location because you don’t think it will meet her needs.

Until you truly get to know your prospective renters and determine what is most important to them, you really don’t know what they need.

You are merely making “assumptions.” It could be that the husband of the family mentioned above travels a lot. The wife may prefer an upper level apartment as she is frequently home alone with their small children, and would feel safer living upstairs. The single woman might have a lot of equipment that she has to bring home from work each day,

and does not want to deal with constantly lugging it up and down the stairs.

It’s important to remember that every person who walks through your door is as unique and special as each one of your available apartments. The term “one size fits all” may work when you are buying a stretchy article of clothing. However, when it comes to helping people find a new home, no apartment will fit the same two people in the same way. For those times when you have prospective renters with needs you just cannot meet, send them to a sister community and/or offer to pay them a referral fee for anyone they refer who rents. Since things are not always what they seem, you never know when a prospective renter who does not end up leasing could be a source of referrals for months, or even years to come.

If you are interested in leasing training or have a question or concern that you would like to see addressed, please reach out to me via e-mail. Otherwise, please contact Jancyn for your employee evaluation needs: www.jancyn.com

ASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica Former owner of Shoptalk Service Evaluations Consultant to Jancyn Evaluation Shops E-mail: shptalk2@ gmail.com Copyright Joyce (Kirby) Bica

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

Call 503-221-1260 for more info.

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RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA

Summer Maintenance Checklist

In summer, complete the following projects to keep the rental property landscape lush and the home cool for your tenants.

Check exterior caulking and apply caulk as needed.

Outdoor Tasks:

Walk around the property’s exterior and open or uncover foundation vents.

Wash exterior windows.

Remove lint from dryer exhaust vent with a long, flexible brush.

Uncover central air conditioner and install window air conditioners.

Clean the swimming pool or spa. Fix cracked tiles and any safety or structural concerns.

Ensure any fence around the pool is secure and the gate has a working latch or lock.

Pressure wash siding and fences.

Pressure wash sidewalks and patios. Repair and seal cracks in walkways, driveways, patios, etc.

Turn on the sprinkler system and check for leaks.

Touch up peeling or damaged paint.

Open or remove storm windows.

Katie Poole–Hussa is a Licensed Property Manager in the State of Oregon, Continuing Education Provider, Chair of the Education Committee for the RHA Oregon, and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at katiepoolehussa@hotmail.com.

Coffee – More than Just a Drink When Motivating Your Team

By Jackie Ramstedt, CAM, CAPS, CAS Things I’ve learned about the power of coffee: 1. Having something hot at the beginning of the day stimulates

Available Now 3 Bedroom Single Family in New Mexico

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brain cells faster 2. Supplying for your team is a show of appreciation 3. Make sure to have decaffeinated flavors too; not everyone likes to be “wired” 4. It makes time to just “stop” what you are doing even for a minute to make it 5. Never stop “cold turkey” and forget to order more supplies 6. Remember the holiday flavors to “spice things up” a bit

8. Try and have “coffee breaks” at the same time to use that time to meet and plan 9. Don’t like coffee? Tea actually has more caffeine than coffee 10. Buy coffee mugs specifically for each team member that shows off their personality!

Owner, National Speaker / Industry Consultant and CMO Chief Motivational Officer Ramstedt Enterprises, Inc. – Austin, Texas – www.JackieRamstedt.com

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RENTAL HOUSING JOURNAL ARIZONA • June 2015