Rental Housing Journal Arizona March 2016

Rental Housing Journal Arizona

March 2016 - Vol. 8 Issue 3

2. Renter Beware – Study Finds Craigslist Barely Half of Scam Rental Listings

4. Property Managers - Work Smarter Not Just Harder

8. CorporateHousingByOwer.com Reveals the Findings of Annual Survey

3. Dear Maintenance Men – Water Heaters, Paint Prepping and Swimming Pools

7. “Blacklisting” Residents Could Result in Lawsuits

9. Ask the Secret Shopper – Curb Appeal

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

Rents to Commercial Real Estate Experts Moderate Expansion, Easing Prices Expected in 2016 Flatten in 2016

A

fter years of record rent appreciation, Zillow’s rental forecast shows relief in sight for cashstrapped renters.

• National median rent at the end of 2015 was $1,381, and is expected to increase slightly to $1,396 over the next 12 months.

• The slowdown in rents means that, by the end of the year, they will be rising at a slower pace than incomes in many markets.

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espite various global and domestic hurdles hindering economic growth, steady job gains and stable leasing demand should help keep commercial real estate activity expanding in 2016, according to the

Rent appreciation will level off over the next 12 months, slowing to an annual rate of 1.1 percent by December 2016, according to the new Zillow® Rent Forecasti. The national Zillow Rent Indexii at the end of 2016 is projected to be $1,396 -- compared to $1,381 in December 2015.

Zillow is forecasting a decrease in the rate of rental appreciation amid a rent-

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2016—Navigating through the Crosscurrents, commercial real estate activity is forecast to gradually grow this year with demand for space holding steady continued on page 6

EPA Cracks Down On Lead Violations

• In December, home values rose 4 percent to a Zillow Home Value Index of $183,500.

continued on page 10

authors of an annual report published jointly by Situs Real Estate Research Corporation (RERC), Deloitte and the National Association of Realtors®.

According to the report, Expectations & Market Realities in Real Estate

By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon

L

ate last year the Environmental Protection Agency (EPA) announced it took action against 75 renovation contractors and others to protect people from harmful lead dust and debris exposure, as required by federal Lead-based Paint Renovation, Repair, and Painting (RRP) regulations.

These cases show EPA is cracking down on businesses and renovators who ignore federal requirements that

have been in effect for several years now. These requirements apply to many repairs and renovations done to painted surfaces in homes and daycare facilities built prior to 1978. Pre-78 properties are of concern, as they are a

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

major source of lead exposure that can cause lead poisoning, especially in our nation’s young children.

The RRP Rule, which is part of the federal Toxic Substances Control Act, continued on page 5

Rental Housing Journal Arizona

Renter Beware Study Finds Craigslist Catches Barely Half of Scam Rental Listings BROOKLYN, N.Y., March 1, 2016 / PRNewswire-USNewswire/ -- Apartment hunters in big cities know the drill: They spot a listing for a wellpriced, attractive place and make an inquiry, only to be met with demands for an instant credit check or an upfront fee to access the full listing. Savvier home hunters spot these scams immediately, but others fall through the cracks, making popular rental listing sites like Craigslist a highly lucrative spot for fraud.

A new study by researchers at the New York University Tandon School of Engineering finds that Craigslist fails to identify more than half of scam rental listings on the site’s pages and that suspicious postings often linger for as long as 20 hours before being removed—more than enough time to snare victims, especially in competitive housing markets.

The research team was led by Damon McCoy, an assistant professor of computer science and engineering, along with Elaine Shi, an assistant professor of computer science at Cornell University, and Youngsam Park, a doctoral student at the University of Maryland.

McCoy presented the findings of their paper, “Understanding Craigslist Rental Scams” at the Proceedings of Financial Cryptography and Data Security Conference in Barbados this month.

Rental scams on Craigslist and similar sites are not new, but this is the first systematic, empirical study of these scams. McCoy and his team analyzed more than 2 million rental listings on Craigslist over a five-month period to gain an end-to-end understanding of how such scams are structured and which strategies may undermine them.

The researchers began by developing semi-automated detection techniques that proved highly effective at identifying potentially fraudulent listings.

They isolated suspected scams based on shared characteristics; for example, common email addresses, postings with email addresses previously reported in connection to scams, or listings that appeared on other rental sites with different pricing or contact information.

Using an automated conversation engine, the team engaged some suspicious posters by email, which yielded another set of common features associated with scam communications, namely a set of keywords and personal circumstances—the responders always claimed to be out of the country—as well as common IP addresses and embedded links that prospective renters were asked to click.

McCoy and his collaborators detected and analyzed about 29,000 fraudulent listings in 20 major cities, ultimately mapping the listings into seven distinct scam categories, most of which involved credit card payments.

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One of the most common was a credit report scam, in which a fraudulent poster instructs a would-be tenant to click a link and purchase a credit report.

The scammer gets a referral commission from the credit reporting site even though there is no property for rent.

In another scheme, the “cloned listing” scam, rental listings from other sites are duplicated and posted on Craigslist at a lower price. Scammers make money by requesting a rent deposit via wire transfer from prospective tenants.

By responding to these ads and analyzing IP addresses and banking wire information, the researchers learned that most of these schemes originate in Nigeria and are administered by a small group of “scam factories.”

Another pervasive scam involved “realtor service” companies, in which victims are asked to pay both an upfront fee and a monthly membership fee to access listings of pre-foreclosure rentals or rent-to-own properties. In the majority of cases, the companies leading the scams have no connection to the properties listed.

The researchers compared their tally of fraudulent postings with the number of ads flagged as “suspicious” by Craigslist, finding that the site caught only 47 percent of those determined to be fake. Additionally, they learned that for some of the most common scams— particularly the “cloned listing” scam, 40 percent of those ads remained active and unflagged for 20 hours before being detected by Craigslist. On average, Craigslist flagged fraudulent ads 10 hours after posting.

The team emphasizes that the techniques they developed to identify and understand the structure of these schemes can be used to improve the safety of rental site ads.

“This is the first study to really unpack these rental scams and uncover their vulnerabilities,” said McCoy. He explained that most schemes that utilize credit cards are based in the United States and should be vulnerable to disciplinary or regulatory action. He also highlighted that the common characteristics of scam ads should make them easier to detect. “We’ve shown that rental scams are often built on the same foundation—there are common templates, emails, IP addresses and other red flags that can be used to develop more sensitive detection techniques in the future,” he said.

The cities included in the study are: Austin, Boston, Charlotte, Chicago, Columbus, Dallas, Detroit, El Paso, Houston, Indianapolis, Jacksonville, Los Angeles, Memphis, New York, Philadelphia, Phoenix, San Antonio, San Diego, San Francisco, and Seattle.

SOURCE NYU Tandon School of Engineering

Rental Housing Journal Arizona · March 2016

Rental Housing Journal Arizona

DEAR MAINTENANCE MEN: Water Heaters, Paint Prepping and Swimming Pools

By Jerry L’Ecuyer & Frank Alvarez before you install it. Don’t use tape, since it can reduce the effectiveness of the rod. Keep in mind that replacing the anode rod on a regular basis (every 3 to 5 years) could easily double the life of your water heater.

Dear Maintenance Men: I just replaced a water heater and boy are they expensive! What are some tried and true ways to extend the life you a water heater or recommended preventive maintenance tips? Since I’m starting with a new heater I want to make this one last as long as I can.

Fred Dear Fred: There are a number of things you can do to extend the life of a water heater, be it gas, electric, new or old. At least once a year, plan on flushing the tank to remove calcium deposits. First shut off the gas or breaker, let the water cool.

Drain the tank and flush with a steady stream of water from the cold water inlet and let the water and debris drain from the drain valve until the water runs clear. If you have a 100 gallon or larger tank, use the clean out port to remove the calcium deposits. Removing the deposits keeps your water heater from working overtime. The more deposits in the tank, the harder the burner needs to work to keep the water hot.

Equally important is checking the “Anode Rod”. The anode rod is a long sacrificial zinc or magnesium rod that protects the metal tank from corrosion.

Dear Maintenance Men: I am getting ready to paint my property and noticed a lot of mold or mildew in the shaded areas. I am worried that scraping these areas when we prep for paint will cause the mold spores to spread. What do you recommend we do as prep for painting?

Marty,

This rod should be checked yearly and replaced every 3 to 5 years. The rod can be found at the top of the tank and is held in place by a hex bolt head. To check the rod, turn off the water supply and let the water cool. With a wrench, turn the hex bolt at the top of the tank and lift the rod out. If the rod is smooth and white in color, it is fine and can be reinserted ready to be inspected again

Rental Housing Journal Arizona · March 2016

in a years’ time. If the rod is corroded, brown, or looks like a rusted nail or missing all together; it is time to replace it. (Actually, it is well past time to replace it.) A new anode rod can be found at any plumbing supply house. If you have a low ceiling above the water tank, ask for a flexible rod to ease the installation. Smear Teflon pipe thread sealant on the threads of the new rod

Dear Marty: One item on your paint prep work will be finding the cause of the mold or mildew in this part of the building. Check for excess moisture in the ground, walls or even a poorly placed sprinkler head. Trim any bushes or trees that stop air flow or cause too much shade in these areas.

The best way to remove the mildew safely is to use a power washer with a soapy solution that contains a mildewcide. Once the building is cleaned properly with the power washer, regucontinued on page 6

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Rental Housing Journal Arizona

Property Managers – Work Smarter Not Just Harder “It’s not enough to be busy. So are the ants. The question is what are we busy about?” –Henry David Thoreau

By Marc Courtenay

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ach of us accomplishes our work one day at a time. We work hard, yet it’s easy to forget that we have untapped intelligence and ingenuity to achieve a better life for ourselves and our dependents. When asked the secrets of personal and professional success, most of the world’s wisest people focus on the differences between working harder and working smarter. Working smarter comes first.

That’s why I’m proposing that you start a “Working Smarter, Not Just Harder” folder on your desktop, laptop, or tablet. Fill it with links or content from the articles and ideas that kick start your inner genius. This folder should contain articles that ignite your determination and imagination, too.

Here’s a link to an article which was written to galvanize your self-improvement strategy. If you didn’t read that article when it was first published, no problem! Read it right now from top to bottom. Seize the moment, carpe diem and glean all you can from it!

Need an article about how to be more successful with the management of your most priceless commodity–time?

Take a look at this article with an eye for improving time management skills.

As you accumulate your folder full of information about working smarter, make sure you organize it to meet your needs. Place them in some kind of order that matches your personal goals or desires.

Now it’s time to make a date with yourself as often as possible to review your Working Harder folder. Once a week should be a minimum, and twice a week is optimum. My suggestion is you complete your work week with a personal review. Take a few notes about the areas of your life that you enthusi-

astically want to make progress. Then rest your weary mind for a day. Okay, maybe you should rest your mind for a couple of days. Have some fun, commune with nature, do something that is extra-relaxing and don’t think about work at all.

Then, when you begin your work week, make it a habit to consult your folder. Spend 15-20 minutes scanning the powerful articles you’ve collected for the purpose of choosing your focus for the week. The point is to look for definitive ways you can delegate, organize,

streamline and improve your methods for accomplishing your work. Don’t be hard on yourself, feel encouraged, and be proactive.

Now you’re ready for my #1 way to work smarter and not just harder: Always begin each work day by doing the most important tasks first.

Put another way; accomplish your most important work as early in your day as possible. That’s when you have the most energy and mental clarity.

You’ll also feel a great sense of relief.

This way you’ll find it easier to follow an important rule that I invite you to adopt as your own. Never, ever check your email until you’ve accomplished your most important tasks of the day.

Why not? Because email messages are a time-suck that often ends up distracting you. Before you know it you’re devoting your day to other people’s priorities instead of your own.

Working smarter and not just harder is the key to personal and professional success, good health, and more opportunities to be “busy about” enjoying your life. Go for it!

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Rental Housing Journal Arizona · March 2016

Rental Housing Journal Arizona

EPA Cracks Down on Lead Violations ...continued from page 1 is intended to ensure that owners and occupants of pre-1978 “target housing” and “child-occupied facilities” receive information on lead-based paint hazards before renovations begin, that individuals performing such renovations are properly trained and certified, and that renovators follow specifically prescribed lead-safe work practices to reduce the potential for exposure to lead for all, including workers.

Renovators are required to give the pamphlet to property owners and occupants within 60 days before starting a renovation. Housing providers, similarly, have obligations to notify residents prior to covered repairs and renovations, to share informational literature with them, including a disclosure form, and to be lead-safe certified or hire a contractor who is.

To protect yourself and your investment, it’s important, that you assure the contractors you hire are in fact leadsafe certified and complying with the EPA’s safe work practice requirements.

To learn more about what repairs are covered and what these work-safe practices are, visit http://www.epa.gov/ sites/production/fi les/documents/renovaterightbrochure.pdf.

The EPA reported that rough twothirds of the cases they recently settled involved failure to obtain EPA certification prior to conducting renovations. Over half the cases were related to violations of required safe work practice standards.

The EPA states its aim in seeking penalties against RRP violators is to help deter other violations and to level the playing field for companies that do follow the law. Such fines and settlements help eliminate the financial advantage a violator may get by underbidding competitors that are compliant.

You can read the full EPA media release here: http://yosemite.epa. gov/opa/admpress.nsf/0/0D3D2DBE30561BAD85257EEB00698FC7 ‘Looking for a lead-safe contractor or want to become certified yourself in order to do work on your own properties?

Call the Leadline for free information at 503/988-4000.

A reminder that although lead poisoning is especially dangerous for kids, the fear of lead poisoning or liability does not give housing providers the right to deny or discourage families with children away from pre-1978 housing. Familial status is a protected class under federal fair housing law1 and doing anything to deny or discourage otherwise qualified families is illegal. Visit www.FHCO.org for more information on this topic.

This article brought to you by the Fair Housing Council; a civil rights organization. All rights reserved © 2016.

Federally protected classes under the Fair Housing Act include: race, color, national origin, religion, sex, familial

status (children), and disability. Oregon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Additional protected classes have been added in particular geographic areas; visit www.FHCO.org for more information.

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Rental Housing Journal Arizona · March 2016

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Rental Housing Journal Arizona

Commercial Real Estate Experts ...continued from page 1 across all commercial sectors. While commercial property values and price gains are expected to flatten after surpassing 2007 peaks in some major markets, investors will still benefit from the strong income flows generated from new and existing leases.

The fift h annual release of the joint report draws on the three organizations’ respective research and expert analysis and offers an objective outlook on commercial real estate through forecasts and commentary on the current economy, capital markets and commercial real estate property markets. A research-based assessment of the office, industrial, apartment, retail and hotel property sectors is also provided.

“Historically low interest rates, especially in treasuries, combined with commercial real estate’s stable prices and value make this asset an attractive investment,” says Ken Riggs, president of Situs RERC. “Looking into 2016, the commercial real estate market should moderate, which could stabilize prices.”

Vacancies are expected to continue to decline slightly in 2016 for all property types, except in the apartment sector, where they are forecast to increase modestly by the end of the year as more new project completions come onto the market. Continued job growth, demand exceeding supply and limited new construction (outside of multifamily) should lead to rising rents and steady investor returns, which overall will shift away from capital appreciation as price growth levels off in many markets.

Continuing on the same slow trajectory seen for many years, the U.S. econ-

omy – facing headwinds from a rising dollar, financial market volatility and geopolitical concerns – is forecast to grow at a rate of 2 percent to 3 percent in 2016, which is stronger than most global economies and enough to generate around two million net new jobs over the next year. Deflationary pressures related to low gasoline and energy prices are expected to diminish by mid2016, in part because of robust growth in apartment rents.

“Supported by solid hiring in most parts of the country, the demand for ownership and rental housing will continue to increase in 2016 despite another year of meager economic expansion,” says Lawrence Yun, NAR chief economist. “While supply shortages will weigh on housing affordability and push home prices and rents higher, the housing sector will keep the U.S. economy afloat and lead the residential investment component of GDP growth by up to 10 percent this year.”

SOURCE National Association of Realtors

Dear Maintenance Men ...continued from page 3 lar prep work can begin and the property painted.

Dear Maintenance Men: I have just purchased an apartment property with a swimming pool. The pool is in very poor condition and I am debating filling it in and putting in grass over the top. What is the procedure for filling in a pool?

Rena Dear Rena: In our opinion a filled in apartment swimming pool is a good apartment swimming pool and an excellent use of dirt! First, before filling in a pool, check with your city or county, permits and procedures may differ. Drain all of the water out of the pool and pour concrete into the skimmer, main bottom drain and into any pipes leading into the pool. This will stop any water or creatures from using the pipes as a runway into the pool equipment area.

If your pool is surrounded by concrete, try to save the water fill line into the pool, it can be used as a future sprinkler water line. Using a jackhammer, poke a number of holes in the bottom of the pool to help in drainage. These holes should be at least twelve inched wide and all the way through the pool bottom. Keep in mind the pool bottom can be a foot thick or more. Leave all the jackhammer debris in the bottom of the pool; it will help in future drainage. If your coping around the pool is in good condition, you can leave it, but we recommend that it be removed.

The coping can easily be detached by

sledge or jackhammer. Just let the coping fall into the pool it will also help in drainage. One half to three quarters of the back fill material should be sand or gravel at the bottom of the pool.

The balance of the fill should be clean dirt and topsoil level with the existing grade. Water the dirt as you back fill the pool to help in compressing the soil.

The topsoil should be pack down with a tamper. Water the soil regularly for about a week, filling in any low spots.

Seed or landscape as you wish after the soil has stabilized. Lastly, contact your insurance company and tell them the good news about your newly filled in pool, your rates might just come down a little.

Bio: Please call: Buffalo Maintenance, Inc for maintenance work or consultation.

JLE Property Management, Inc for management service or consultation Frankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01460075 Certified Renovation Company www.BuffaloMaintenance.com www.ContactJLE.com www.Facebook.com/BuffaloMaintenance

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Rental Housing Journal Arizona · March 2016

Rental Housing Journal Arizona

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“Blacklisting” Residents Could Result In Lawsuits

situation came up that involved a resident who “watched” the on-site maintenance staff. Management believed the individual was “a little mentally ill and maybe dangerous to the staff.” Additionally, the individual would not let staff members enter his apartment, but said people did enter during the day when he wasn’t there and took personal items.

Management inquired on a way of legally “blacklisting” individuals who exhibit such behavior.

Legal Issues The above scenario presents a variety of legal issues.

Both Federal and Arizona laws prohibit discrimination because of a handicap of a resident, a person residing with him or her, or any individual associated with that person.

The law defines “handicap” as a physical or mental impairment substantially limiting one or more of the individual’s “major life activities.” This could include emotional disturbances or attention deficit disorder, a record of having such impairment, or being regarded as having such impairment.

Fair Housing ramifications jump out first and foremost.

Singling out an individual who falls within a protected class would be grounds for a charge of discrimination.

Additionally, “blacklisting” someone who fits this description would be discrimination based on profiling.

Blacklisting is simply dangerous, and management should avoid it. Think about the consequences of blacklisting someone and finding out there is no justification or basis for it. Unless you like to defend lawsuits and potentially pay thousands of dollars in damages, stay away from participating in this type of activity. The simple answer and solution is to screen all residents, have reasonable and justifiable rental criteria, and rent to persons who qualify under your guidelines.

The next part of the scenario suggests that the resident may be dangerous. The general rule is that a landlord cannot discriminate against current or prospective renters because of a handicap. The Law does not prohibit refusal to rent to an individual with a handicap “whose tenancy would constitute a direct threat to the health and safety

of other individuals or whose tenancy would result in substantial physical damage to the property of others.”

Proof Needed To Deny Residency In order for management to refuse to rent to an individual whose handicap poses a threat to others on the property, it must be able to prove the following: • The handicapped person’s residency poses a direct threat and a significant risk of harm.

• There is evidence of past overt acts or current conduct of that person.

Assumptions and subjective fears or speculations are not sufficient.

• Management cannot overcome the threat posed by making “reasonable accommodation.”

The final part of the scenario raises questions about dealing with the resident’s conduct on the premises. The fact that the resident may “watch” the maintenance staff and not let anyone

into his apartment is not something management can easily deal with. The accusation of people allegedly taking items out of the apartment is just as difficult. Unless the renter makes a threat or alteration to the apartment, such as changing the locks, there is not a lot that a landlord can do.

There are some possible actions to consider. The first would be to not renew the resident’s lease at the end of its term. Keep in mind, however, that the resident could claim discrimination.

In this case, management would have to document its file with adequate supporting reasons not to renew.

Management could also suggest to the resident that he file a police report on the alleged taking of items from his unit. If other residents complain about the individual, document those in writing. Finally, consider serving him an access notice to inspect his apartment to make sure no unauthorized alteration or damages occurred.

As Elvis Presley sang in his hit song, “Suspicious Minds”, “we’re caught in a trap with no way out.” Management should be very sensitive when dealing with these kinds of issues.

Andrew M. Hull, Esq. Hull, Holliday & Holliday, PLC www.doctorevictor.com 602.230.0088

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Rental Housing Journal Arizona

CorporateHousingByOwner.com Reveals The Findings Of Annual Survey Exodus from Vacation Rentals; Airbnb beats Homeaway; Craigslist beats Facebook and the Value of Corporate Housing Rentals

C

HBO reports the 7th annual CHBO Corporate Housing Real Estate survey and finds corporate housing furnished landlords say 2016 is the year of division. Monthly corporate housing rentals, a $2.7 billion industry, is not the same as vacation

rentals and should not inadvertently be lumped into that lodging segment.

To see the difference between corporate housing and vacation rentals, just look at the renter’s length of stay. The finding of this report states that 6 out of 10 respondents say their last tenant

stayed for three months or longer. Fifteen percent (15%) say their last tenant stayed for one year or longer. At an alltime high in 2015, 78% of respondents say they would only rent their property for 30 days or more.

How much does the job pay?

How much

SHOULD

According to The Corporate Housing Providers Association (CHPA), “Corporate housing is fundamentally different from other types of short-term rentals.

This well-organized industry provides a valuable service to businesses, employees and others in need of temporary housing while having a sizable economic impact on the communities where it operates. It is important that policymakers and officials understand the industry’s importance and are cognizant of its particular characteristics and value when creating and implementing short-term rental policies.”

Kimberly Smith, CEO of CHBO says, “there continues to be a strong need for professional corporate housing real estate rentals from independent property owners and managers. And personally, I believe the clients who need this type of lodging are very different from those who want a shared rental or an extended stay hotel. Think about the difference between buying a new car from a dealership versus buying a used car from an individual. These are transactions for two types of customers with very different needs. Likewise, a continued on page 11

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Rental Housing Journal Arizona · March 2016

Rental Housing Journal Arizona

SK THE SECRET SHOPPER Curb Appeal

I

t’s that time of year when drive by traffic can slow down, as one gray, rainy day blends into another. Occasional sun breaks do little to brighten up your community, but rather expose areas with built up dirt and left over dead leaves. In some neighborhoods dense with apartment buildings, there is nothing to separate one group of gray or brown buildings from the next; they just blend into the dreariness of the day.

Several smaller apartment communities on a block could actually be mistaken for one larger community to people who are driving by. The question is:

unattractive this time of year. For office staff and visiting property managers, that would mean picking up litter when you see it, as well as pulling an occasional weed, and keeping flowers cleaned up.

Speaking of flowers . . .

Q

What can I do to make my community stand out from all the others in the area?

A

The first thing to take a close look at is the signage you are using. This may seem very basic, but are the signs you are using clearly visible? Can they be seen from a distance, in ALL directions, and are your signs CLEAN? Are your signs placed in such a way that it’s clear they are identifying YOUR building, and not the one next door? Is your signage creative and colorful? If advertising a promotion, are you using clever, eye-catching signs, banners, and/ or balloons? Once a visitor drives into

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

your community will they be able to find the rental office? What about managers and assistants who work out of their apartment homes? If this is you, are there well placed directional arrows and appropriate signs so prospective renters can easily find your apartment?

The second thing to carefully assess is the cleanliness of your community.

This time of year is especially chal-

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

lenging because of the unpredictable weather. One day it’s pouring down rain giving you water and mud issues to contend with, followed by a sunbreak so you have just enough time to clean up the mess before the next downpour!

This is also the time of year when weeds begin making their appearance in the shrubs and flowerbeds. They are looking for the sun too, even though it’s not exactly gardening season yet! However, with “all hands on deck,” this seemingly impossible goal of a clean property is completely realistic. It can be accomplished if all staff members are willing to take on responsibility for the outward appearance of the community. For maintenance staff, that would be washing down gutters, downspouts and siding, and power washing to keep sidewalks and other areas from taking on the dreaded “green hue” that is so

Do you have any? If you don’t have colorful plants or flowers, how are you brightening up your community to enhance its curb appeal? Is there a freshly painted fence or curbing that differs from your neighbors? What about the use of flags or balloons to highlight the entrance to your community? If you use balloons, do you keep them properly inflated? Nothing communicates apathy and a lack of attention to detail like deflated (dead) balloons!

No matter what you have going for you on the “inside” of your community, no one will ever find out if you can’t draw them in from the “outside.” If the basics aren’t handled at the curb, your prospective renters won’t make it to the front door.

Clear, clever signage + clean, colorful curb appeal = countless cars carrying customers!

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 of Shoptalk Service Evaluations Consultant to Jancyn Evaluation Shops E-mail: shptalk2@gmail.com Copyright Joyce (Kirby) Bica

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

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Rents to Flatten in 2016 ...continued from page 1 al affordability crisis that has renters in some markets spending almost half of their income on rent. Some of the fastest growing metros had double-digit annual rental appreciation at the end of 2015.

Zillow expects rental appreciation to slow down most significantly in Nashville, Tenn., San Francisco, Portland, Ore. and Denver. Rents in San Francisco saw 12.5 percent appreciation in 2015. Zillow forecasts rent in San Francisco will grow half as fast in 2016 -5.9 percent.

Even with the slowdown, rents will remain unaffordable in many of the major markets across the U.S., especially on the West Coast. Renters in San Francisco and Los Angeles can expect to spend 40 percent of their income on a rental paymentiii.

“Hot markets are still going to be hot in 2016, but rents won’t rise as quickly as they have been,” said Zillow Chief Economist Dr. Svenja Gudell. “The slowdown in rental appreciation will provide some relief for renters who’ve

been seeing their rents rise dramatically every single year for the past few years.

However, the situation remains tough on the ground: rents are still rising and renters are struggling to keep up.”

The slowdown in rental appreciation indicates that supply of new multi-family homes is catching up to demand.

Substantial new housing supply is becoming available in Atlanta, Denver, Portland, Seattle, and other markets.

Metropolitan Area

Dec. 2015 ZHVI

Dec. 2015 ZRI

United States New York/Northern New Jersey 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 Charlotte, NC Sacramento, CA San Antonio, TX Orlando, FL Cincinnati, OH Cleveland, OH Kansas City, MO Las Vegas, NV Columbus, OH Indianapolis, IN San Jose, CA Austin, TX

$183,500 $381,200 $554,700 $193,000 $177,200 $203,100 $170,100 $357,800 $225,700 $160,000 $382,900 $785,800 $121,800 $298,200 $216,000 $368,700 $214,300 $499,900 $141,000 $160,100 $242,300 $320,800 $126,700 $310,200 $157,800 $331,500 $148,000 $180,600 $141,800 $124,300 $146,600 $199,800 $150,900 $130,100 $933,000 $242,900

$1,381 $2,384 $2,491 $1,633 $1,500 $1,558 $1,579 $2,107 $1,822 $1,274 $2,247 $3,338 $1,132 $1,691 $1,249 $1,931 $1,500 $2,316 $1,123 $1,296 $1,714 $1,952 $1,090 $1,689 $1,221 $1,599 $1,301 $1,343 $1,225 $1,124 $1,199 $1,212 $1,271 $1,181 $3,431 $1,683

The Zillow Home Value Index rose 4 percent year-over-year in December 2015, to $183,500, according to the Zillow® December Real Estate Market Reportsiv.

Forecasted Difference ZRI Forecast for Dec. 2016 Between Dec. 2015 ZRI and Dec. 2016 ZRI $1,396 1.1% $2,400 0.7% $2,561 2.8% $1,611 -1.4% $1,532 2.1% $1,550 -0.5% $1,619 2.5% $2,118 0.5% $1,886 3.5% $1,280 0.5% $2,309 2.7% $3,536 5.9% $1,128 -0.4% $1,723 1.9% $1,266 1.4% $2,018 4.5% $1,511 0.8% $2,348 1.4% $1,115 -0.7% $1,302 0.5% $1,702 -0.7% $2,031 4.0% $1,079 -1.0% $1,753 3.8% $1,250 2.4% $1,654 3.4% $1,306 0.4% $1,373 2.2% $1,243 1.5% $1,117 -0.6% $1,228 2.4% $1,191 -1.8% $1,289 1.4% $1,138 -3.6% $3,699 7.8% $1,741 3.4%

Source Zillow

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CorporateHousingByOwner.com Reveals ...continued from page 8 relocating professional who has a high paying, high pressured job and needs to relocate his or her family of five to a new city is looking for corporate housing from a professional.”

Rental Success Starts With Understanding Data and Trends 2016 is the year of recognition for corporate housing real estate as a lucrative investment niche answering the needs of a mobile workforce and others seeking quality monthly residential rentals.

The outlook for the coming year held strong with 21% predicting 2016 will financially be “much better than last year.” Of those investors, 90% say their investment real estate is profitable and 45% are so positive they plan on buying more investment real estate.

Mrs. Smith says, “Corporate housing is coming into its own, gaining recognition and also gaining investors who see the revenue potential.” She believes Airbnb brought to the forefront the value to renters, the fun and even the “sex appeal” of what is means to immerse yourself in a community and now renters are discovering the corporate housing industry has been providing quality rentals for decades and takes the guessing game out of a community rental.

In this year’s findings, CHBO learned that Airbnb continued to beat HomeAway as one of respondents’ “most used” marketing sources and for the first time also beat them as the source for the “most renters.” Surprisingly Craigslist regained some traction, just as Facebook lost ground in all 3 marketing categories.

Com peti Pric tive ing

Our biggest surprise this year was that everyone spent less on marketing their corporate housing rental. In fact 63% (up from 55% in 2014) spent less than $500 on marketing their rental, however they were also less satisfied with their results. In 2015, respondents saying my property is “always rented” went down to 41% from 48% in 2014.

Whether you’ve owned or managed a corporate housing rental for 10+ years or you’re new to the industry, CHBO reports that success starts with understanding trends. Just because something has worked in the past doesn’t mean it will work in the future. If you pay attention to the trends and avoid getting stuck doing the same thing over and over, you greatly increase your opportunities for rental (and financial) success.

Mrs. Smith says corporate housing landlording is nothing new, but obviously an increasingly popular option these days for the savvy real estate investor. “My hope is that this report will continue to help real estate corporate housing landlords become more educated, knowledgeable and profitable as it allows them to deep-dive into emerging rental trends and how such trends will impact them personally.”

What You Should Know About This Report This report is different from other property management reports because it reflects input from independent owners and property managers, rather than full-service corporate housing companies.

Tops g Startin at $77

Our survey was open to anyone who owned or managed a furnished, monthly residential rental in 2015 – not just to CHBO users. Our goal is to get the best snapshot of the independent corporate housing segment, so you can learn from relevant trends and be more successful.

Other key findings from the survey include Rental rates rising. 39% of respondents — an all-time high — report charging higher or much higher rental rates in 2015. This number has been rising since 2013. We also saw a 3% decrease in the number of respondents who say their rental rates were identical to the previous year.

Actual Rental Rates. Compared to our 2014 survey results, actual rental rates were higher in 2015. The one exception was for studio units, which showed a slight decrease in month-to-month rental rates. Four bedroom rentals saw the largest increase in rental rates.

Investment Real Estate Trends. Consistent with previous years, more respondents say, “Yes, I plan on buying more real estate” (45%), than “No, I’m done with real estate” (18%). Unlike previous years, however, the number of respondents who say they’re done with real estate investing rose 5%.

Corporate housing has gone to the ‘burbs. Consistent with previous years’ results, 49% of respondents say their corporate rental properties are located in urban, business districts. 44% say their properties are located in suburban areas.

You’ve Got Pets. We saw a slight increase in the number of property owners who accept pets compared to 2014.

Now, 38% of survey respondents say they accept pets (down from the alltime high of 50% in 2011).

Reasons for Being a Corporate Housing Landlord. The majority of respondents — 58% — tell us they’re landlords for “investment purposes.” With a 15% response, the second most common reason for being a landlord is renting a “primary residence.”

Renter Types. “Relocation” renters rose to 45% — up 3% over 2014. We also saw all-time highs in renters due to: “home remodels” (30%), “movies/entertainment” (15%) and “divorce” (20%).

We’ve seen annual increases in renters due to divorce since 2010.

Security Deposits, Travel Insurance and ARDI. 88% of respondents collect a refundable security deposit — most often, $500 to $1000 or one month’s rent.

The number of respondents who collect

“no kind of deposit” hit an all-time low of 4%. 26% of respondents say they offer travel insurance and/or Accidental Rental Damage Insurance (ARDI) to their renters.

Credit Cards. Approximately 57% of respondents say they accept some form of credit card payment from their renters, down slightly from last year. In 2015, MasterCard and Visa tied with PayPal as the most popular credit solutions.

Internet Reservations. Once again, we asked property owners about real-time booking reservations (in which a property is leased through a computer website without any interaction between the property owner and tenant).

Similar to 2014, 44% of respondents say they’ve used one of these programs.

To download a free copy of all seven Corporate Housing Real Estate Reports, please visit www.CorporateHousingbyOwner.com.

About Corporate Housing by Owner (CHBO) CHBO is a Team of Corporate Housing Professionals. CHBO works daily to support quality corporate housing rentals and qualified renters find solutions. We are focused on Corporate Housing rentals around the world and our on-line portal works to connect properties and renters as quickly as possible. CHBO was founded in 2006 out of a need to connect private homeowners and real estate investors offering furnished, monthly rentals with corporate housing seekers such as traveling executives, relocated professionals, traveling nurses, actors, athletes and more. The company provides individual homeowners and investors resources and guidance to help them strategically manage their corporate housing rental properties as well as exposes their properties to thousands of potential tenants worldwide who are seeking monthly housing options.

myitzchaki@MSYLaw.com

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