Rental Housing Journal Arizona January 2016 by Professional Publishing, Inc

Rental Housing Journal Arizona

January 2016 - Vol. 8 Issue 1

2. Change Your Behaviors to Become a More Inspiring Leader in 2016

5. How to Take Care of HVAC Systems and Prevent Disease

3. Desire to Buy Strong Despite Affordability, Economic Concerns

6. Ask the Secret Shopper – Attracting New Renters 9. 4 Faces of Leadership and the Importance of the Vision Thing

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC Monthly Circulation To More Than 7,000 Apartment Owners, Property Managers, On-Site & Maintenance Personnel

Delivering a Dynamite Digital Experience: Best Practices for Satisfying the Needs of the Multifamily Wi-Fi Lifestyle

remendous New Opportunities for Property Owners Many apartment buildings, housing sub-divisions, and other contained communities have driven incremental revenues by creating interesting services for their residents, including newsletters, events, parties, and interest groups. Today’s property owner can take this concept to an entirely new level. By continued on page 4

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By Jen Piccotti, SVP Education and Consulting, SatisFacts and ApartmentRatings.com

s an industry, we’re consistently focused on developing a sense of community. A critical budget line item is Resident Events. And yet, participation in our pizza parties, breakfast-on-the-run, Disney movie sing-alongs, or Super Bowl viewing parties are minimal, at best. To make matters worse, when asking residents about their satisfaction with “Sense of Community,” the national average is 3.40 on a 5-point scale. That translates to a “Warning” classification on our rating scale. Ouch!

By Eric Markow

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

Build Community in Three Steps

Lately, as we’ve been presenting workshops and seminars, we poll the audience by asking, “As you think about the upcoming weekend, how many of you are looking forward to hanging out with your neighbors?” The typical response from a room full of around 150 people is 3 or 4 raised hands. After a year of conducting these non-scientific experiments, we feel convinced that what we’re seeing in the classrooms is not very different from what you’re seeing on-site. Yet why are we convinced our residents feel

any differently? According to the 2015 SatisFacts Index, when asked why residents weren’t “Very Likely” to renew, “Neighbors” was in the top 5 reasons. And when asked what could be done to improve the community, “Better Residents” ranked in the top ten. Let’s face it, residents are not welcoming each other to the community with goodie baskets and borrowing cups of sugar – the “love” is just not there. For added confirmation, we look to our data and an in-depth analysis of surveys from over 1.6 million residents. What we see is that when residents are evaluating “Sense of Community,” they’re not expressing their desire to become best friends with their neighbors or even having more or better events. When residents are evaluating sense of community, they are actually evaluating their relationship with you, the continued on page 10

Do-it-Yourself Landlords May be Working Below their Paygrade

he economic conditions of recent years have led many Americans to look to the real estate market for investment opportunities. Considering there are now nine million more renters than there were a decade ago and rental rates continue to increase, now may seem like the time all those property investors have been long awaiting, right? Unfortunately, what many property investors fail to realize is the high cost and demanding lifestyle that accompanies their investment if they choose to self-manage as a do-it-yourself (DIY) landlord. Approximately 80 percent of investors who lease single-family residences manage their property themselves, subsequently taking on the responsibilities of rent collection, regular property in-

spections, tenant issues, repairs, maintenance, and occasional legal action. Real Property Management, a national property management franchise, released findings that suggest many DIY landlords may be working below their pay grade, spending too much money and time managing their rental properties, and ultimately receiving minimal return-on-investment (ROI). The

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findings are from the company’s online Landlord Calculator, a resource that allows landlords to input how much time they’re spending on each aspect of property management, in comparison to overall income money spent. For example, Real Property Management research indicates that the typical DIY landlord earns an average annual continued on page 8

Rental Housing Journal Arizona

Change Your Behaviors to Become a More Inspiring Leader In 2016 Behavioral Strategist Oﬀers 4 Tips For Broadening Your Mind And Your Leadership Skills

abits can be a trap for people in leadership positions – whether they are in business, politics or another field. As leaders, they should provide a compelling vision that inspires those around them. Instead, many of them lapse into automatic and mindless thinking. And that can affect every decision they make – and the actions of the people who report to them. “Too often, we don’t come up with imaginative solutions because we let ourselves be ruled by routine and by preconceived notions,” says Rob-Jan de Jong, a behavioral strategist and author of “Anticipate: The Art of Leading By Looking Ahead” (www.robjandejong.com). “We think we know ahead of time what will and won’t work, which makes us quick to dismiss ideas that sound too ‘out there.’ The people who answer to you learn the lesson that creative thinking is frowned upon, even if that’s not the lesson you wanted to teach.” Simply making a New Year’s resolution to have a more open mind in 2016 likely won’t be enough to turn things around. But de Jong says there are behaviors and practices that, through repetition and perseverance, can help leaders and anyone else develop a mindset that’s open to imaginative and better ideas.

Formulate powerful questions. Generating ideas starts with asking the right questions and the best questions are thought-provoking. They challenge underlying assumptions and invite creativity. “They also give us energy, making us aware of the fact there is something to explore that we hadn’t fully grasped before,” de Jong says. Train yourself to catch poorly designed questions, asked by you or someone else, and reformulate them. Questions that begin with “why,” “what” and “how” are best because they require more thoughtful responses than those that begin with “who,” “when,” “where” and “which.” Especially avoid questions that can be answered with a “yes” or “no.” Expand your sphere of influence. “We are strongly influenced, for better or worse, by the small group of people we have direct contact with,” de Jong says. “Since we tend to hang out with people who are fairly similar to ourselves, chances are we are limiting our perspectives.” He recommends making a deliberate effort to encounter people and ideas that are “profoundly different from the usual suspects you hang out with.” Visit a conference of a 2

different profession, hang out with skaters, join an arts club or buy a magazine randomly off the shelf.

Break your patterns. You can increase your chances of seeing things differently if you deliberately break your normal pattern of working, communicating, thinking, reacting and responding, de Jong says. Take a different route to work. Change where you sit in meetings. If you are normally the first to volunteer, hold back. Learn to listen. “We’ve all been taught the importance of being good listeners,” de Jong says. “The problem is most of us struggle to actually do it.” Often when people are “listening,” they really are waiting for the first opportunity to share their story, their opinion or their experience. De Jong suggests training yourself to engage in three pure listening conversations a week. They don’t need to be longer than 15 to 20 minutes, they can be formal or informal, and the other person doesn’t need to know what you’re doing. Vow that you won’t try to take over the conversation no matter how much you want to. “Just keep asking questions and don’t dismiss anything the other person says,” de Jong says. After the conversation, reflect on what you learned. Don’t dismiss any ideas or views that don’t align with yours. “Dare to challenge your own assumptions and reframe your beliefs if need be,” he says. “Some of these practices may take people outside their comfort zones, and everyone might not be ready to try all of these at once,” de Jong says. “But if you start to put them into practice, you’ll be able to grow into a more mindful, visionary leader one step at a time.” About Rob-Jan de Jong Rob-Jan de Jong, author of “Anticipate: The Art of Leading By Looking Ahead” (www.robjandejong.com), is an international speaker, writer and consultant on strategy and leadership themes. He serves as an expert lecturer at various leading business schools such as the Wharton Business School (USA), Thunderbird School of Global Management (USA), Nyenrode Business University (The Netherlands), and Sabanci Business University (Turkey). As a behavioral strategist, he speaks, teaches and consults on executive subjects such as visionary leadership, influence, strategic decision-making, and innovation.

Rental Housing Journal Arizona · January 2016

Rental Housing Journal Arizona

Desire to Buy Strong Despite Aﬀordability, Economic Concerns

lthough only half of surveyed households believe the economy is currently improving, nearly all young renters eventually want to buy a home, and a convincing majority still view homeownership as part of their American Dream, according to a new quarterly consumer survey released today by the National Association of Realtors®. Additionally, a newly-introduced index tracking the financial outlook of households found that compared to earlier this year an increasing share believes their personal financial situation will improve in the months ahead. NAR’s inaugural quarterly household survey, Housing Opportunities and Market Experience (HOME), tracks topical real estate trends, including current renters and homeowners’ views and aspirations regarding homeownership, whether or not it’s a good time to buy or sell a home, and expectations and experiences in the mortgage market1. New questions may be added to the survey each quarter to reflect timely topics impacting real estate. The HOME survey data reveals that an overwhelming majority of current renters who are 34 years of age or younger want to own a home in the future (94 percent). Overall, 83 percent of polled renters have a desire to own, and 77 percent believe homeownership is part of their American Dream.

Lawrence Yun, NAR chief economist, says the survey’s findings debunk the notion that young adults aren’t interested in buying a home. “Despite entering the workforce during or immediately after the worst of the financial and housing crisis, the desire to become a homeowner appears to be a personal goal for a convincing majority of young renters,” he said. “Furthermore, there appears to be sizeable, pent-up demand for buying that currently remains untapped because of a variety of economic and personal reasons impacting many households.” The top two reasons given by renters for not currently owning was the inability to afford to buy (53 percent) and needing the flexibility of renting rather than owning (19 percent). When asked what would likely be the main reason for buying in the future, renters cited lifestyle considerations such as getting married, starting a family or retiring (33 percent) and an improvement in their financial situation (26 percent). “A combination of factors such as rising rents and home prices, limited supply, repaying student debt, and getting married and having children later in life has more to do with the currently underperforming share of firsttime buyers than the idea that buying a home is not as desirable as it used to be,” adds Yun.

Households lukewarm about the U.S. economy Among all households (renters and homeowners) in the survey, the results highlight a split between those who agree the U.S. economy is on the right track and those who disagree. Only half of respondents believe the economy is currently improving, and 44 percent think the economy is actually in a recession. Renters were only slightly more optimistic about current economic conditions, with 57 percent believing the economy is improving. Regardless of their confidence in the U.S. economy today, over three-quarters (76 percent) of those who don’t think the economy is improving still want to eventually buy a home. “The promising stretch of job creation in several parts of the country in recent years has the housing market in 2015 on track for its best year of sales since the downturn,” says Yun. “However, that only half of surveyed households believe the economy is improving can be attributed to the fact that some areas have been slow to recover and wages have yet to grow in a meaningful way for far too many families.” Adds Yun, “With roughly 26 million more people in the U.S.2 compared to the peak year of home sales in 2005 (7.08 million), the pace of existing sales

would likely be more robust if not for the economy’s subpar growth since the downturn and wage gains that have failed to keep pace with rents and home prices.”

Homeownership remains good financial decision, part of American Dream Despite uncertainty about the economy’s current performance, at least 84 percent of all households within all surveyed age groups and education levels believe owning a home is a good financial decision. When asked if they believe this strongly or moderately, 76 percent who believe it’s a good decision feel strongly about it. Additionally, at least 85 percent of surveyed households in each age category as well as across all education levels believe homeownership is part of their personal American Dream. The most appealing aspects of homeownership cited by those with this feeling include a place to raise a family (36 percent), owning their own place (26 percent) and a nest egg for retirement (14 percent). Good time to buy, but skeptical about ability to obtain a mortgage NAR’s survey found that more homeowners (82 percent) than renters (68 continued on page 11

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Rental Housing Journal Arizona

Dynamite Digital Experience ...continued from page 1 bringing high-speed connectivity to the Internet into your property you can distribute it to every unit under complete control. Contracting with the right provider you deliver a complete service throughout the entire community. How do you identify the right provider? When you interview them, they’ll recommend the following best practices.

“Transparent Access” With the exception of some younger millennials who were raised with information technology as a major part of their lives, most users want to enjoy the benefits of wi-fi internet access without having to think about the technology that delivers it. Keeping the technology invisible starts with making the initial connection to the service “push-button” easy. The right provider will offer stepby-step pictorially illustrated instructions for connecting various devices to the service, and may offer a premium “welcome” service in which someone does all the connecting for the renter. From that point forward the user should seldom if ever need to reconnect. You may also be able to look to your provider to include a “front-end” website that your renters encounter first whenever they log in to their device. This “portal” can be set up to make a host of excellent services available to your renter, including services you provide yourself. These services are not limited to the internet. You may want to make it easy for your renters to request various physical plant services or community activity services from you.

replacing long wires strung around the home with wi-fi-connected speakers. Refrigerators and other appliances are using wi-fi to serve customers better. Your provider’s support team should be able to help your renters get the most out of these emerging new digital lifestyle enhancements.

Comprehensive Security & Privacy The privacy of personal information including online banking, personal health information and more is becoming a “front-of-mind” issue with everyone. When you’re speaking to the “right provider” you’ll hear plenty about how they protect users from viruses, spam, malware, hacking, and all the other internet threats out there. Parental controls over website access is another paramount issue you can expect to hear about. Be sure to ask about the interactivity of security services. Often, the renter’s specific bank or other internet resources may require some “custom-tuning” to the firewall and other security services in order to perform properly. This should be as easy as calling in to the support team. Easy-Access Technical Support Speaking of the support team, remember that you’re providing your renters with a comprehensive service

that you can be proud of. If they run into a problem and have a hard time solving it, all the time they spent enjoying good service will suddenly be forgotten. The responsiveness and ease of access to the provider’s support team make all the difference. This may be a technical service, but it’s being used by people, so the people they interact with when something is wrong need to be top drawer, easy to reach, and easy to work with.

Future-Proofing It is a sure bet that technology will keep on improving, and you won’t ever want your renters complaining that your wi-fi service is antiquated and outof-date. Smart providers are assuring that it is easy and inexpensive to update your equipment and your wi-fi internet access services to keep step with the times. The availability of a comprehensive built-in wi-fi capability in your units will be a huge differentiator for your properties for a long time to come, especially if you make the right choices, implement the right technologies and services working the with right partners.

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Eric Markow is Chief Technology Officer of Dual Path, a provider of high speed property-wide WiFi services. Dual Path’s customers include MDU and senior living communities who enjoy fast, reliable connectivity, delivered with old-fashioned customer service. Dual Path’s unique revenue generating model allows property owners to leverage their “Internet real estate” to maximize profits, increase resident satisfaction and retention, and increase property value. Headquartered in Phoenix, Arizona, Dual Path offers property-wide WiFi, Gigabit Internet and WiFi calling solutions to properties and businesses coast to coast. For more information, visit www.dualpath.net or contact 1-800-468-6851.

User Counseling & Advice Support should be as proactive as it is VALLEY, METRO, reactive. Beyond responding to requests for restoration of services, the support team should also be available to advise your renters about adding new devices, products, or services to their wi-fi network. Smart Home automation is becoming very Feb, popular,Apr, with more andAug, Oct, Dec Jun, more users being able to switch lights on and off, lock and unlock their doors, control their thermostats and much more from their smartphones wherever they may be. Home Theater systems are

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Rental Housing Journal Arizona · January 2016

Rental Housing Journal Arizona

How to Take Care of HVAC Systems and Prevent Disease

By Cliff Hockley, President , Bluestone & Hockley Real Estate Services

hy do HVAC systems need regular maintenance? Owners of commercial buildings sometimes overlook the maintenance of their HVAC (Heating Ventilating and Air Conditioning) systems. I recently had a meeting with clients who own a 20,000 square foot building where they had installed a new HVAC system at the cost of $100,000. Because it was new they thought did not need a preventive maintenance plan. I explained how this perception would not only put their $100,000 investment at risk, it would also endanger the health of their tenants. HVAC units have many reasons for failing. The following charts published in a November 2000 ASHREA Journal article, Smart Maintenance for Rooftop Units, indicates the main reasons for unit failures. Most of these failures are preventable with proper maintenance. Causes for % Total Occurrences ‘No Air-Conditioning’ Service Call Controls Error 21% Electrical Problem 20% Refrigerant Leak 12% Condenser 7% Air Handling 7% Evaporator 6% Compressor 5% Cooling Water Loop 4% Plugged Filters 2% Personnel Error 2% Expansion Device 2% Can’t Classify 12% Table 1: Classification of ‘no-air conditioning’ cases.

General Classification of Faults Compressor Controls Error Condenser Electrical Problem Evaporator New Installation Air Handling Refrigerant Leak Installation/Startup Cooling Water Loop Fan Belt Others Table 2: Classification of fault types by total cost.

% Total Service Costs 24% 10% 9% 7% 6% 6% 5% 5% 4% 4% 2% 18%

Ensuring proper function of your HVAC unit also prevents health complications related to mold and allergies. The most serious ailment associated with poorly maintained commercial HVAC units is the potentially fatal Legionnaires’ disease. Legionnaire’s disease is a pneumonia caused by the Legionella bacteria. The bacteria lives in water, (especially standing warm water keyed off by rising temperatures in the summer months,) and is carried by steam and mist. The bacteria has been detected in drinking water systems and tubs, cooling towers and in standing water that is aerosolized and ends up circulating in building air conditioning systems. Legionnaires ‘disease bacteria rarely will cause problems unless water contaminated with the bacteria enters the HVAC system. Well-maintained HVAC systems and air conditioning units without humidifiers are unlikely to harbor the Legionnaire bacteria.

How to maintain HVAC systems The American Society of Heating, Refrigerating and Air-Conditioning Engineers (ASHRAE) offers the definitive guide to HVAC maintenance, ASHRAE continued on page 11

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SK THE SECRET SHOPPER Attracting New Renters

ll apartment communities use various means to attract new renters. Many forms of advertising have minimal costs in dollars, (i.e. online ads, signs, banners, word of mouth referrals, etc.). Yet the time and money it takes to create and design some of these ads AND make sure they are well placed to capture attention, is worth tracking the results! Having a reliable method of documenting all online, phone, and walk in traffic is critical to determining the effectiveness of each form of advertising. Here is a valid owner concern:

the internet” or “online.” They aren’t directly asking people how they found out about their building any more. This makes me wonder if prospective renters really learned about the community “on the internet,” or if they just used an online resource to obtain more information after they saw the building driving by or heard about it from a friend.

You have some very valid concerns about what has happened to your other forms of advertising. Did these other sources just stop producing traffic or are these sources not being “uncovered” by your leasing staffs? It will take more effort and some careful qualifying to determine the “primary” advertising

source, which is the way each prospect initially learns about your community. (i.e. resident/merchant referral, signs/ banners, flyer, etc.) The only way to find out how is DIRECTLY ask them! For example: “I noticed you referred to our website in your email. Is that how continued on page 10

How much does the job pay?

Our communities used to get a ton of drive by traffic and resident referrals. However, over the past few years, I’ve noticed more and more traffic is being logged as “internet” or “online ad,” with no further explanation. When I question the on site staffs, they tell me they are just noting the ad source from the e-mails or calls they get when prospective residents say they found them “on

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Do-it-Yourself Landlords ...continued from page 1 income of $100,000. Assuming a 2,000 hour work year (50 weeks times 40 hours per week), the value of their time is $50 per hour. According to other research by the company, an average DIY landlord spends 49 hours per year for leasing and managing. With this time commitment, the value of the landlord’s time per rental is $2,450*. The cost of professional property management is significantly less. Although property management fees vary across the country, a professional property manager typically charges 50 percent of one month’s rent for leasing a vacancy, and 10 percent per month for managing the property. For a $1,000 per month rental property, the cost would be $500 for leasing plus $1,200 per year for property management fee, totaling $1,700. This cost does not take into account the fact that property

management fees are tax deductible, so the actual out-of-pocket expense is less. Do-it-yourself landlords can avoid the cost, hassle and liability associated with managing a property by outsourcing the responsibilities and pain points associated with property management to a professional property manager. Property management professionals have the resources and knowledge to perform thorough background checks on prospective tenants, document move-in and move-out condition of a rental, and they understand the Fair Housing Act and other landlord-tenant laws – all jobs in which costs can significantly add up. The Real Property Management research found that less than one third of self-managing landlords spend adequate time on every step of the leasing

process, and skimp on things like credit history, criminal background checks and move-in documents. Many do not conduct criminal background checks or contact previous landlords for references, which increases the risk of renting to an unqualified tenant. Some also fail to conduct a true competitive analysis of competitive rental rates, creating risk of over-pricing a rental and losing income because of long vacancy periods, or underpricing the property which reduces long-term revenue from the property. Other shortcuts frequently taken by DIY landlords include responsible rent collection and in-property inspections. This hurts cash flow, increases the risk of lost rental income and eviction, and allows tenants to fly under the radar with lease violations like unauthorized tenants, pets, or damage to the property.

Whether it’s a carefully considered investment or an ‘accidental landlord,’ not all DIY landlords realize the significant cost and demanding lifestyle required as a property owner. The monetary costs may be easy to calculate, but what about the value of the hours and days spent on other management tasks? A professional property manager typically saves money for the investor, and can sometimes be the very lifeblood for success and profit as a property owner. *The amount of time can be significantly higher for older homes with more maintenance needs, or properties that require updating before leasing. Authored by: Robert Pifke, Chief Marketing Officer for Property Management Business Solutions, LLC, the franchiser of Real Property Management. About Real Property Management Real Property Management is a franchise organization owned by Property Management Business Solutions, LLC, a privately held corporation based in Utah. With over 25 years of industry expertise, Real Property Management offices provide full-service residential property management for thousands of investors and rental home owners from more than 260 independently owned and operated locations throughout the United States and Canada.

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Rental Housing Journal Arizona

4 Faces of Leadership and the Importance of the Vision Thing Behavioral Strategist Explains How Any Leader Can Responsibly Boost Their Visionary Side

hether it’s a presidential candidate, a corporate executive or an NFL coach, people admire a leader with vision. They like someone with a clear idea of where he or she is headed, and who knows how to motivate others to accomplish the goal. But as much as people might like to say someone is a “born visionary,” in truth, vision is something we develop, not something we arrive in the world with, says Rob-Jan de Jong, a behavioral strategist and author of “Anticipate: The Art of Leading By Looking Ahead” (www.robjandejong.com). “One thing that visionaries have in common is that they have an ability to notice things early,” de Jong says. “They recognize some sort of significant change is happening and they make use of the opportunities it presents.” Just identifying that a major change is afoot isn’t enough, though, he says. The visionary needs to connect the dots into a coherent picture that takes into account future developments. “That’s easier said than done, but it’s an ability leaders can develop if they are willing to work on it,” de Jong says. Growing a leader’s visionary side therefore boils down to sharpening

both the ability to notice things early and the ability to create coherence. In combination, the abilities suggest four archetypes of leaders.

into a coherent story that justifies an active strategic pursuit. After seeing them chase several flavor-of-the-month ideas, other people start to tune them out.

The Follower. This is someone who is neither good at noticing things early, nor skilled at creating and communicating a coherent story from insights about what the future might bring. The follower may be an excellent manager, but don’t expect this person to inspire others or drive innovation. “Being a follower isn’t necessarily a bad thing,” de Jong says. “These people are often careful about their decisions and good at critical thinking, and in the short term that can work well. But their preoccupation with today keeps them from anticipating what comes next.”

The Historian. These leaders are adept at connecting the dots and spinning a story that makes sense. They cite patterns, facts and figures and make everything that’s happened so far look coherent and intentional. “When you listen to them, it all makes sense,” de Jong says. “But they have their eyes trained on the factually true past, not the imaginative uncertain future.” Certainly, it’s valuable to have some historical perspective, he says, but you can’t let history cripple your ability to engage the future. Historians also often are cynics, ready to explain why things are they way they are and why your unconventional idea won’t work.

The Trend Hopper. On the upside, a trend hopper has a well-developed ability to see things early and is willing to embrace changing realities. These are people who are quick to adopt new technology and among the first to fantasize about how things can be different – even radically different– real soon, de Jong says. On the downside, trend hoppers aren’t adept at turning their early insights

The Visionary. This is the one to strive to be. A visionary isn’t quick to hop on every fad, but also isn’t a naysayer about how things might be done differently. Instead, says de Jong, the visionary takes a mindful, future-oriented perspective, balancing the need for a compelling future with the awareness of the dan-

Publisher Will Johnson – will@propubinc.com Designer/Editor Kristin Flores – kristin@propubinc.com

gers of becoming dogmatic and overly optimistic. Visionaries are able to explain an imagined future in a way that fills people with energy and engages their imagination. “A powerful vision isn’t just nice to have,” de Jong says. “It’s the most important tool in the transformational leader’s toolbox. A leader’s personal imagination, inspiration and dedication are what will ignite the excitement in the people they lead.” About Rob-Jan de Jong Rob-Jan de Jong, author of “Anticipate: The Art of Leading By Looking Ahead” (www.robjandejong.com), is an international speaker, writer and consultant on strategy and leadership themes. He serves as an expert lecturer at various leading business schools such as the Wharton Business School (USA), Thunderbird School of Global Management (USA), Nyenrode Business University (The Netherlands), and Sabanci Business University (Turkey). As a behavioral strategist, he speaks, teaches and consults on executive subjects such as visionary leadership, influence, strategic decision-making, and innovation.

Advertising Sales Will Johnson – will@propubinc.com Terry Hokenson – terry@propubinc.com Larry Surratt – larry@propubinc.com

Rental Housing Journal Arizona is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in Investing & Real Estate Investor Quarterly

www.rentalhousingjournal.com The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

Rental Housing Journal Arizona · January 2016

Rental Housing Journal Arizona

Building Community ...continued from page 1 property team. They’re thinking about how connected they feel to those who care for and maintain the community, not the population that makes up the community itself. So, how do we build that connection?

1. Be the Go-To Guy or Gal. Ideally, everyone on staff should have the ability to provide assistance to any resident, but it’s such a luxury to be able to get in contact with your “go-to” person, A “go-to” already knows your back story, they know what’s already been done or what your particular challenges are. As Lisa Giedd, of The Bluffs at Nine Mile Creek (Dominium) shared as a best practice, “If a resident asks for a specific team member or the manager, do what you can to connect them with that team member. Even if someone else was able to answer the question or resolve the issue, the resident will mostly remember that the team member or manager was not available to them.” 2. Expect the Best One of the best pieces of advice I ever received from a supervisor was, “Go into the meeting expecting that it will go well. 9 times out of 10, it will.” It’s a self-fulfilling prophecy. If you expect that a resident meeting or call is going to be a disaster, it probably will be. But if you anticipate your own ability to provide a good resolution and that the resident will walk away feeling good, then most likely that will be the outcome. Relationships with residents, like all other relationships, are built on communication and shared experiences, which can lead to trust. Give them reasons to love you, believe in your ability to work well with them, and enjoy the result. 3. Dress to Impress Residents want to be proud to show off their home to friends and family. Now, more than ever, the appearance and condition of common areas is being evaluated when a person chooses to rent or to renew. Be obsessive about neatness and tidiness. Ensure walkways are swept, trash cans are emptied, cobwebs are brushed away, and bare dirt is attended to. Your community doesn’t

need to be brand new to look well kept. The same goes for you and your entire team. You’re part of the scenery, so take pride in how you present yourself. Clothing should be clean and pressed. Your hair and nails should be neatly groomed. Are your residents excited to walk their guests around the community? Are they excited to introduce them to you (or do they steer them away)? The point of this article is not to get you to scrap your event calendars or do away with contests and opportunities to celebrate what makes your community a great place to live. However, instead of planning events strictly to connect residents to each other, plan events with the goal of the team connecting with the residents. Require team participation, and set a goal of getting to know at least 5 residents you haven’t spoken with before. Residents don’t “just” leave apartments. They most often leave people. Because our business is built on relationships, our ability to build those relationships is going to determine the big winners and the colossal losers in our industry. “Sense of Community” = “Sense of Connection with the Staff.” Build your relationships one resident at a time and you’ll suddenly find you’ve built a thriving community! About the author: Jen heads up client support for SatisFacts and ApartmentRatings.com, by developing dynamic, practical and effective educational programs and resources, conducting resident feedback analysis, directing customer experience re-design, and providing digital strategy coaching. Jen has over two decades of customer loyalty and process efficiency experience. A noted author, keynote speaker and highly followed blogger in the multifamily industry, Jen has spoken at such events as the NAA Education Conference, NAA Education Institute (NAAEI), AIM: Apartment Internet Marketing, and the Multifamily Social Media Summit. Contact Jen at jpiccotti@satisfacts.com

Ask the Secret Shopper ...continued from page 6

you first heard about us?” OR “I see you checked the box “drive by” as the way you found us, but I couldn’t help but notice you pulled up our monthly special on your phone from our craigslist ad. Did you learn about us first from driving by and then look for us online?” Using multiple sources of advertising in today’s competitive market isn’t just a good idea, it’s a necessity. Prospective renters must be given the opportunity to see your community advertised in print, on the internet and through the use of signs/banners, etc. However, it’s important to note which marketing source initially sparked their interest and motivated them to make contact. – You will need ALL the facts in order to make informed decisions about your future advertising needs. Of course some of the money you save from budgeting advertising dollars wisely could be spent on an incentive to reward

those employees who are committed to carefully qualifying ALL their prospective renters… If you are interested in leasing training or have a question or concern 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 Evaluations

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Rental Housing Journal Arizona · January 2016

Rental Housing Journal Arizona

Desire to Buy Strong Despite ...continued from page 3

HVAC System Care ...continued from page 5

percent) during the polling period believe that it’s a good time to buy a home. Furthermore, of those who thought it was a good time to buy, 64 percent felt strongly about buying. Among current owners, 61 percent believe it is a good time to sell a home, of which 53 percent felt strongly that it was a good time to sell. According to the survey, roughly two-thirds (65 percent) think it would be very or somewhat difficult to obtain a mortgage. Furthermore, there are differences among income brackets. Renter households making between $30,000 and $40,000 were the most likely to be declined a mortgage (10 percent), while 51 percent of those who make more than $50,000 a year have not tried but feel confident they would succeed in getting a mortgage. Overall, five percent of renters have recently tried and failed to obtain financing for a home. By nearly double the amount of other responses, the most common reason homeowners purchased a home was for lifestyle changes such as getting married, starting a family or retiring (35 percent). Eighteen percent said the desire to settle down in one location influenced their decision to buy, and 15 percent cited an improvement in their financial situation.

Standard180 – The standard practice for inspection and maintenance of commercial building HVAC systems. Key points include:

past year. Looking ahead toward the next six months, 91 percent of respondents believe home prices in their community will increase or stay the same. The HOME survey also calculates a monthly Personal Financial Outlook Index3 measured by household type, age, income and type of location. Since tracking began in March, the index representing all households has slowly trended upward to its highest current reading in December – reflecting stronger confidence that respondents’ financial situation will be better in six months. Currently, renters, younger households and those living in urban areas are more optimistic about their future financial situation. “Young adults, who make up the majority of all renter households, are typically more optimistic about their future,” adds Yun. “As more of them settle down and begin plans to start a family, the allure of owning their own home as well as the long-term financial stability homeownership provides will drive their emergence into the housing market. However, the extent to how fast this occurs will greatly depend on more entry-level housing supply coming onto the market and needed improvements in affordability conditions.”

Direction of home prices, financial outlook on the rise Reflecting the ongoing recovery of home values throughout most of the country, 89 percent of respondents said home prices in their communities have either risen or stayed the same in the

Rental Housing Journal Arizona · January 2016

• Fixing cabinet air leaks. • Cleaning and adjusting dampers on an annual basis. • Inspecting the fan, bearings and belts twice a year and replacing them as necessary. • Cleaning the air ducts every two years to prevent the buildup of dirt, micro-organisms and mold.

The most essential steps one could take to prevent disease include changing filters frequently, preventing pooling water and cleaning the evaporator and condenser coils. Change filters frequently. Pleated filters are the first line of defense against airborne irritants. They are the item in the HVAC units that keep the air clean. Their efficiency is measured by a MERV rating. The higher the MERV rating, the better their ability to remove dust, dirt and micro-organisms from the air. Changing filters frequently it makes it easier for the unit to pull air into the system. If the filter is clogged, the system has to work harder to feed air into the unit. The frequency is decided by the environment and how dirty the air is. Most commercial buildings require a quarterly filter change and inspections on a contract basis. Prevent water from pooling around the air handlers. Mold and water sources near the air conditioner intake create opportunities for spores to be

sucked into the air intake. Roofs need to be cleaned regularly and trees cut back from the roof lines to prevent the accumulation of dirt and debris near the unit. Also ensure that drain lines from condensate units drain off of the roof and do not pond under HVAC air intakes. Clean the evaporator and condenser coils once or twice a year. Evaporator coils tend to stay damp, and allow the growth of mold. In addition to the dampness, the coils are typically in contact with air coming in from the outside (warm and humid air in the summer.) Dirt also gets past the filters and provides the material that mold needs to grow. Treat coils after every cleaning using an antimicrobial treatment. You can consider installing UV (Ultra Violet) lights help keep the coils from being attacked by mold. (This is typically a retrofit item and not all HVAC units have room or a power source for a UV light). In any case it can keep the coils cleaner and reduce the labor to keep them clean. As Ben Franklin said, “An ounce of prevention is worth a pound of cure.” Proper HVAC maintenance will more often than not keep that unexpected emergency from happening. Resources: www.bbjenviro.com/resource-article/ hvac-maintenance/ https://www.ashrae.org/standards-research--technolog y/standards-interpretations/inter pretations-for-standard-180-2008 https://www.osha.gov/dts/osta/otm/legionnaires/hvac.html

Rental Housing Journal Arizona

Rental Housing Journal Arizona 路 January 2016