Colorado Rentla Housing Journal - March 2015 by Professional Publishing, Inc

Rental Housing Journal Colorado

March 2015 - Vol. 7 Issue 3

4. Inexpensive Ways to Attract Good Residents 6. Secret Shopper 7. Spring Maintenance Checklist Strong Job Growth Foreshadows Solid Full-Year Economic Growth

2. Commercial Markets Poised for Growth Despite Weaker Global Economy 3. New Residential Water Heater Efficiency Standards

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Strong Job Growth Foreshadows Solid Full-Year Economic Growth Robust Hiring and Firming Income Growth Expected to Boost Housing Recovery

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Denver Among Fastest Growing Rental Markets - January's fastest growing rental markets included Denver, Colo., Kansas City, Nashville, Tenn., Portland, Ore., and Charlotte, N.C. - U.S. rents were up 3.3 percent year-over-year in January, near the historical norm. But rents are rising much more rapidly in some markets. Annual rental appreciation peaked after the housing bust in September 2012 at 6.3 percent. - In January, national home values rose at a slower pace, up 5.4 percent year-over-year, the ninth straight month of slowing growth.

edian rents continued rising nationwide in January, with rental appreciation in some small and even struggling housing markets catching up to the country's hottest areas, according to ...continued on page 5

– Pete Bialick

The Smoke-Free Housing

growing number of marketrate and affordable housing providers are adopting restrictions on smoking in their buildings and property. At mysmokefreehousing.com there are more than 3,300 Colorado multiunit residential buildings listed that have implemented no-smoking policies, including buildings managed by 33 public housing authorities. A growing number of these properties like Shea and McWhinney have implemented smoke-free policies that cover the entire property. In addition, a growing number of companies like Aimco, Amli, Echelon, and Red Peak are opening properties that are entirely smoke-free.

What is driving the trend? First, there is market demand for smoke-free housing. Most Colorado residents, including low-income populations, do not allow smoking in their homes and prefer to live in a non-smoking building. Resident support for smoke-free policies is high according to a recent American Lung Association in Colorado study of three public housing authorities. The study found that 93.5% of the nonsmokers and 84.6% of the smokers supported an existing smoke-free policy. Furthermore, 87.8% of the residents said that if they were to move it was important to move to a non-smoking building. Second, property managers are finding that smoke-free policies reduce the costs of cleaning, painting, ...continued on page 8

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Commercial Markets Poised for Growth Despite Weaker Global Economy

stronger labor market and stable U.S. economy should keep commercial real estate demand on the rise, but the pace of growth will likely be hindered by overseas weakness, according to the National Association of Realtors® quarterly commercial real estate forecast. Lawrence Yun is chief economist and senior vice president of research at the National Association of Realtors(r). Yun oversees and is responsible for... National office vacancy rates are forecast to slightly decrease 0.1 percent over the coming year as improved hiring increases the demand for office space. The vacancy rate for industrial space is expected to decline 0.4 percent and retail space 0.3 percent as manufacturers boost production for goods and services and consumers slightly accelerate their spending. A swath of new apartment construction coming onto the market is forecast to lead to an

uptick (0.1 percent) in the multifamily vacancy rate. Lawrence Yun, NAR chief economist, expects commercial real estate activity to hold steady heading into the spring. "The demand for leases and new construction projects is expected to slowly climb as businesses add to their payrolls and consumers reap the benefits of cheaper gas and any accompanying wage growth from a tighter labor market," he said. "Furthermore, multifamily housing continues to be the top-performing sector with current rental demand exceeding supply – leading to rent growth that is easily outpacing inflation in many metro areas throughout the country." Although economic conditions are improving at home, Yun says weaknesses in the global economy will likely impact exports. "Sluggishness overseas alongside a strengthening U.S. dollar will widen the trade deficit and slow economic growth potential," he said. "However, GDP is forecasted to come in around 3 percent in 2015 – the highest since the recession. Improvements in hous-

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ing and commercial real estate market activity will measurably help economic growth." NAR's latest Commercial Real Estate Outlook1 offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas is provided by REIS Inc., a source of commercial real estate performance information. In partnership with Deloitte and RERC Situs, NAR released an annual joint report earlier this month – Expectations & Market Realities in Real Estate 2015 – which forecasts for an expected increase in commercial real estate value and pricing in 2015. Office Markets Office vacancy rates are forecast to slightly decline from 15.8 percent in the first quarter to 15.7 percent in the first quarter of 2016. The markets with the lowest office vacancy rates in the first quarter are Washington, D.C., at 8.7 percent; New York City, 9.0 percent; Little Rock, Ark., and Seattle at 11.5 per-

cent; and San Francisco, at 12.0 percent. Office rents are projected to increase 3.3 percent in 2015 and 3.6 percent next year. Net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is likely to total 47.7 million square feet this year and 58.3 million in 2016. Industrial Markets Industrial vacancy rates are expected to fall from 8.7 percent in the first quarter to 8.3 percent in the first quarter of 2016. The areas with the lowest industrial vacancy rates currently are Orange County, Calif., with a vacancy rate of 3.4 percent; Los Angeles, 3.7 percent; Miami and Palm Beach, Fla., both at 5.4 percent; and Seattle, at 5.6 percent. Annual industrial rents should rise 3.0 percent this year and 3.1 percent in 2016. Net absorption of industrial space nationally is expected to total 102.2 million square feet in 2015 and 104.8 million square feet next year. ...continued on page 6

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Rental Housing Journal Colorado • March 2015

RENTAL HOUSING JOURNAL COLORADO

New Residential Water Heater Efficiency Standards By Heather Hill and Jason Campbell

n April 16, 2015, all residential water heaters manufactured for sale in the United States will be required to meet new efficiency standards as the third phase of a nationwide energy conservation effort takes effect. The National Appliance Energy Conservation Act regulates the energy consumption of certain household appliances including furnaces, boilers, refrigerators and water heaters. According to the Appliance Standards Awareness Project, water heating represents 20% of the total annual household energy consumption in the US, and on average 57% of this energy is lost in inefficient OLD STANDARD Product Gas-fired Gas-fired Oil-fired Electric Electric Tabletop Instant Gas Instant Electric

Volume 20-55 gallon 55-100 gallon 0-50 gallon 20-55 gallon 55-120 gallon 20-100 gallon 0-2 gallon 0-2 gallon

Manufacturers can employ new technologies such as heat pumps, which help reduce energy use by 50%, to upgrade electric water heaters. Condensing technologies can reduce energy use in gas storage containers by 25%. The low-tech solution, adding more insulation, may cause more complications. While adding 1 inch of insulation would increase EF by .05, it would

Product Gas-fired Gas-fired Electric Electric Oil-fired Instant Gas

EF .62 (40 gal) .76 (56 gal) .95 (50 gal) 2.0 (56 gal) .62 (32 gal) .82 (0 gal)

The cost savings refer to the costs of owning and operating the product after considering both the increased installed price and the lifetime operating costs. Maintenance costs may also increase due to the complex design of the new technology and the integration of electronics, blowers, fans, condensers, etc. Anyone who services water heaters may also struggle with a learning curve.

heaters. The US Department of Energy (DOE) released its first mandatory standards in 1990.The second phase, enacted in 2004, tightened standards the most significantly of the three phases, and was estimated to avoid 316.8 million metric tons of carbon dioxide emissions. The 2015 standards will avoid 172.5 million metric tons of emissions, equivalent to the annual greenhouse gas emissions of about 33.8 million cars, according to the DOE. The mandatory standards dictate that manufacturers meet the maximum energy efficiency levels technically feasible and economically justified. The DOE conducts product reviews and updates the standards on a regular schedule. Note, that

while the manufacturers cannot make any water heaters with the old standards after the April date, they will be allowed to continue to sell the old inventory until the supply is exhausted. As of the date of this post, manufacturers have not released the compliant replacement heaters for their obsolete products. Though energy efficient models do exist in the marketplace, they have been built and promoted as specialty products and priced accordingly. Conversely, the replacement heaters will represent the new normal. What is changing? The Energy Factor (EF) represents the ratio of useful energy output from the water heater to the total

NEW STANDARD Product Gas-fired Gas-fired Oil-fired Electric Electric Tabletop Instant Gas Instant Electric

EF .67 .67 .59 .97 .97 .93 .62 .93

also broaden the heater by 2 inches in diameter. Knowing that water heater installations in multi-family structures are space defined, manufacturers may also reduce tank capacities to allow NAECAcompliant units to fit in predetermined spaces, as the floor plans and common plumbing designs typically found in multifamily units will prevent relocation of the water heater.

Average Cost $1,072 $1,261 $554 $729 $1,974 $1,779

Volume 20-55 gallon 55-100 gallon 0-50 gallon 20-55 gallon 55-120 gallon 20-100 gallon 0-2 gallon 0-2 gallon

Cost Increase $92 $805 $140 Feb, $974 $67 $601

DIFFERENCE EF .005 .1312 .09 -.01 1.087 0 .20 0

EF .675 .8012 .68 .960 2.057 .93 .82 .93

What will this cost property owners? Since manufacturers have yet to release the new heaters, the only certainty for the owners of properties with large-volume gas or electric heaters is that those manufactured after April 16th will save money in operating costs. However, the improved technologies are likely to come with a higher price tag, as any new technology improvement usu-

ally does. Following the last major efficiency upgrade in 2004, prices for the new standard equipment increased 8-12%. The DOE estimated the following cost implications for the 2015 standards:

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...continued on page 19

Considerations Residential property owners need to review their options carefully when replacing a large volume water heater in the near future. Don’t wait until the heater fails to plan for its successor. Being aware of the conditions of the current heater, including its footprint, both physical and carbon, can save property owners head-

Vi s i t u s a t w w w. R e n t a l H o u s i n g Jo u r n a l . co m

amount of energy used to operate it. The higher the EF rating, the more energy efficient is the water heater. The type of fuel, volume and mechanics of the heater all factor into its rating and coinciding standard. For example, tabletop and instantaneous electric heaters already meet the EF standards and thus no changes will take place for those heaters. The new requirements will most significantly affect gas-fired and electric heaters over 55 gallons as well as all instant gas heaters. The chart below outlines how the standards apply to each style of heater.

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Rental Housing Journal Colorado • March 2015

The Industry Leader in Quality

RENTAL HOUSING JOURNAL COLORADO

Inexpensive Ways to Attract Good Residents

n the world of investing there’s an old adage: “Money goes where it’s treated best”. The same could be said for the best residents. As the world of rental properties become more competitive a new adage is “Good residents move to where they are treated best”. A “good resident” is one that has an outstanding credit history, takes good care of the places they rent, and tends to stay put for an extended period of time. Property managers want to find and keep them. One inexpensive way to do this is to reward their good track record. This is an effective method to reinforce positive behavior as well. Offer an end-of-the-year “rebate” to residents who have an excellent record of paying rent on-time. You might also consider a “thank you incentive” at the end of their annual lease or start date. More owners are willing to consider offering an at least a 3% annual discount to prospects who either pay a year’s worth of rent or pay on a semi-annual basis. That’s better than the yield of a 10-year bond! Also make it a policy to discourage your owner-clients from renting to relatives or friends. Unless you don’t need the rent or the relationship reconsider such decisions which

invariably backfire. One of my readers reminded me of this important, prudent policy when she wrote, “Five years ago I made a mistake letting my daughter move in to one of my rental units. “Half the time I am pulling and fighting for her to pay the $1000.00 rent for a two bedroom apt. I am planning to evict through a court order.” A no-cost preventive policy would have saved a small fortune. Here are some other ways to attract good renters to fill any vacancies you have. 1. Make the bathrooms look spar-

kling clean, sanitized, updated. Replace discolored caulking, grouting, rust, and deteriorating plumbing. Be sure the lighting is more than adequate. 2. One manager suggested tile backsplash be installed in kitchens and bathrooms. She said, “It looks awesome, cleans easily, protects walls, adds color/interest, reduces painting.” 3. Old English scratch cover and polish make wood cabinets, wood floors look new again. Replace damaged areas, burns, stains, or other unsightly areas of the kitchen counters. You’ll

recoup the cost with a justifiable rental rate plus attract more of the good residents. 4. Units that smell naturally pleasant are more inviting. A reader shared that they like to use subtle air fresheners/deodorizers with neutral smells like “clean laundry”, a very subtle pine, cinnamon, or gingerbread to make it feel homey. The key is to always keep the scent subtle. An overwhelming scent can be just as offensive as an unpleasant one. 5. Paint the unit numbers on designated parking spots. Make certain the parking area has good security lighting which also pertains to halls, landings, and all common areas. Outstanding residents will want to live where they are treated best. If you want to attract and keep them go out of your way as property managers to make them feel appreciated. by Marc Courtenay Published Courtesy of PropertyManager.com

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RENTAL HOUSING JOURNAL COLORADO

FAmong Fastest Growing ..continued from front page Zillow's January Real Estate Market Reportsi. In Kansas City, for example the Zillow Rent Index (ZRI)ii grew 8.5 percent year-over-year in January, more than twice the national pace and faster than markets where rapidly growing rents are an old story, including Seattle, Boston and Los

Angeles. Two years ago, when West Coast rents were already soaring, rental growth in St. Louis was flat and even falling. But between January 2014 and January 2015, rents there rose 4.2 percent. The fastest growing rent in the country in January 2015 was in San Francisco, where median rent

Metro Area

January 2015 ZRI

YoY ZRI Change

January 2015 ZHVI

YoY ZHVI Change

United States

$1,350

3.3%

$178,500

5.4%

New York/N. New Jersey

$2,331

2.1%

$382,900

3.7%

Los Angeles, CA

$2,460

4.9%

$529,600

4.3%

Chicago, IL

$1,609

-0.5%

$187,500

3.6%

Dallas-Fort Worth, TX

$1,443

4.9%

$153,600

8.3%

Philadelphia, PA

$1,546

2.1%

$203,500

4.2%

Houston, TX

$1,497

5.9%

$154,200

12.2%

Washington, DC

$2,103

1.3%

$363,700

3.7%

Miami-Fort Lauderdale, FL

$1,779

2.8%

$212,400

13.2%

Atlanta, GA

$1,233

4.3%

$154,600

10.7%

Boston, MA

$2,149

4.6%

$365,400

3.2%

San Francisco, CA

$3,055

14.9%

$705,900

7.3%

Detroit, MI

$1,096

5.0%

$114,900

7.6%

Riverside, CA

$1,665

4.2%

$284,000

9.1%

Phoenix, AZ

$1,225

5.3%

$203,200

5.6%

Seattle, WA

$1,834

4.9%

$340,400

6.3%

Minneapolis-St. Paul, MN

$1,502

-0.3%

$212,600

5.9%

San Diego, CA

$2,293

4.5%

$470,600

4.1%

St. Louis, MO

$1,138

4.2%

$131,500

2.8%

Tampa, FL

$1,268

3.9%

$148,500

9.3%

Baltimore, MD

$1,713

1.5%

$244,800

2.7%

Denver, CO

$1,827

10.2%

$286,500

14.7%

Pittsburgh, PA

$1,124

4.9%

$125,400

4.4%

Portland, OR

$1,587

7.2%

$278,700

5.2%

Sacramento, CA

$1,629

4.6%

$333,400

7.4%

San Antonio, TX

$1,299

4.3%

$145,700

5.4%

Orlando, FL

$1,311

2.1%

$169,800

9.1%

Cincinnati, OH

$1,208

3.7%

$137,700

4.6%

Cleveland, OH

$1,167

4.2%

$120,500

2.2%

Kansas City, MO

$1,214

8.5%

$138,400

5.9%

Las Vegas, NV

$1,196

1.6%

$186,600

10.5%

San Jose, CA

$3,190

13.4%

$842,700

10.6%

Columbus, OH

$1,251

2.8%

$146,100

4.9%

Charlotte, NC

$1,235

6.1%

$158,000

5.4%

Indianapolis, IN

$1,193

1.6%

$128,200

-0.9%

Austin, TX

$1,657

7.0%

$222,600

10.8%

was up 15 percent year-over-year for the fourth month in a row. U.S. rents were up 3.3 percent yearover-year in January, near the historical norm. The fastest growing rental markets in January included Denver, Colo., Kansas City, Nashville, Tenn., Portland, Ore., and Charlotte, N.C. Nationally, the Zillow Rent Index rose 3.3 percent year-over-year in January, and 0.4 percent from December, to a median of $1,350. For years, demand for rentals has driven up rents, and income has not kept pace. Currently, Americans should expect to spend roughly 30 percent of their incomes on rentiii as opposed to historic norms of around 25 percent. And the problem is far from over, according to more than 100 housing experts surveyed in the latest Zillow Home Price Expectations Surveyiv. More than half said they expected rental affordability to continue to be a problem for at least two more years. "Rental appreciation has been a freight train these past few years, chugging along without any appreciable slowdown. Since 2000, rents have grown roughly twice as fast as wages, and you don't have to be an economist to understand why that is hugely problematic," said Zillow Chief Economist Dr. Stan Humphries. "More than one-third of Americans are renters, and today's renters are tomorrow's buyers. For many cur-

rent renters, buying a home could mean both a lower and more stable monthly payment, but rising and increasingly unaffordable rents make it difficult to save for a down payment on a home. The rental market used to be and should remain a steppingstone to homeownership. But given how widespread rental affordability problems have become, the rental market could be acting more like a barrier to buying. More supply will help ease the crunch, both from new construction and as current renters transition into homeownership, creating more vacancies in existing developments. But neither will happen overnight." Nationally, home value growth continued to level off in January. The U.S. Zillow Home Value Indexv rose 0.2 percent from December and 5.4 percent year-over-year, to a median value of $178,500. Home values are expected to grow another 1.9 percent through January 2016, according to the Zillow Home Value Forecastvi. By the end of the year, Zillow expects growth in rents to outpace growth in home values. – Zillow

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RENTAL HOUSING JOURNAL COLORADO

Northwest

any apartment communities have staff changes on the weekends. Some property management companies use part-time leasing consultants or “floaters” to fill in on the weekends or to work back and forth between two or more communities. This can be a great partnership and help keep payroll expenses down OR it can cost rentals at your community. It all depends on quality communication, as the following question will attest:

T Ask

Secret Shopper

Q: I was hired to be a “floater” at several different properties. While I love the variety, I really don’t feel like I am an important part of the staff at any of the places where I work. I am not always kept current on apartment availability or the status of different problems that come up. When I ask questions to try to keep myself informed, many times I am told: “Don’t worry about it. You’re only here on the weekends.” I feel frustrated, but don’t know what I can do.

A: It sounds to me like you are on a team that has not filled you in on the game plan! This is very unfortunate, especially in a business where there can be moment by moment changes, due to rentals, resident problems and maintenance emergencies. I would advise you to put your concerns in writing; in a positive manner; and share them with the manager and/or property supervisor. For those of you who actively employ “floaters” or who share employees between properties,

I would recommend leaving detailed notes on a weekly basis to recap what has happened in their absence. Of course whenever possible, these employees should be included in staff meetings and receive copies of correspondence which will keep them up to date on the happenings at each of the communities where they work. How do you make sure that the same quality of service being provided Monday through Friday car...continued on page 8

Hartford, Conn., and Oakland-East Bay at 2.7 percent; and Rochester, N.Y., at 2.8 percent. Average apartment rents are projected to rise 3.7 percent this year and 3.6 percent in 2016. Multifamily net absorption is expected to total 171,978 units in 2015 and 157,168

next year.

Poised for Growth ..continued from page 2 Retail Markets Vacancy rates in the retail market are expected to decline from 9.7 percent currently to 9.5 percent in the first quarter of 2016. Currently, the markets with the lowest retail vacancy rates include San Francisco, at 3.0 percent; Fairfield County, Conn., and San Jose, Calif., at 4.5 percent; Long Island, N.Y., 4.9 percent; and Orange County, Calif., at 5.0 percent. Average retail rents are forecast to rise 2.5 percent in 2015 and 3.1 percent next year. Net absorption of

retail space is likely to total 15.7 million square feet this year and jump to 20.6 million in 2016. Multifamily Markets The apartment rental market should see vacancy rates slightly increase from 4.1 percent currently to 4.3 percent in the first quarter of 2016. Vacancy rates below 5 percent are generally considered a landlord's market, with demand justifying higher rent. Areas with the lowest multifamily vacancy rates currently are Sacramento, Calif., 2.5 percent; Orange County, Calif., 2.6 percent;

SOURCE National Association of Realtors

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Rental Housing Journal Colorado • March 2015

RENTAL HOUSING JOURNAL COLORADO

Spring Maintenance Checklist

n spring, focus on freshening up your rental property and protecting the dwelling against the season's strong winds and rains. Use this time of the year to thoroughly clean and care for the home's interior. Outdoor Tasks: 1. Clean gutters and downspouts. 2. Inspect roof and chimney for cracks and damage. 3. Wash the exterior of all windows. 4. Install missing screens on windows and doors. Repair as needed. 5. Fertilize the lawn. 6. Check decks for loose boards, railings, or stairs.

7. Professionally service heating and cooling units. 8. Check the foundation for cracking as well as for insect damage. 9. Remove foundation vent covers and spigot covers. Indoor Tasks: 10. Test all smoke and carbon monoxide detectors 11. If the basement has a sump pump, test it by dumping a large bucket of water into the basin of the sump pump. This should activate the sump pump. If it does not switch on or if it's notpumping water, it may need to be serviced by a professional. Also, check for and remove any debris

and make sure there are no leaks. 12. Assess the need for blind repair, cleaning or replacement. 13. Repair or replace broken or missing kitchen cupboard hardware. 14. Check the attic for signs of moisture and water stains. 15. Check walls for condensation and mildew. 16. Check electrical panel for rust, make sure circuit breakers are operating correctly. 17. Clean dryer vents. 18. Clean or replace furnace filters. Check clothes washer hoses for cracks or swelling.

slow drips. Detach and flush aerators. 20. Maintain clean drains by pouring one-half-cup baking soda followed by one-half-cup white vinegar into each. After 10 minutes, flush with boiling water. Katie Pooleâ&#x20AC;&#x201C;Hussa is a Licensed Property Manager, Continuing Education Provider and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at Katie@ SmartPM.co

19. Check all faucets for leaks or

Strong Job Growth Foreshadows Solid FullYear Economic Growth Robust Hiring and Firming Income Growth Expected to Boost Housing Recovery

he economy is poised for a pickup in growth in 2015 amid a strengthening employment sector, rising income growth, and declining commodity prices, according to Fannie Mae's Economic & Strategic Research (ESR) Group. The labor market has started the year on an upbeat note and is expected to lift consumer confidence, in turn helping to boost consumer spending, manufacturing activity, and the pace of the housing recovery. Economic growth may face some headwinds as a strong U.S. dollar weighs on the trade deficit. However, the economy is expected to climb to 2.9 percent for the full year, up from 2.5 percent growth in 2014. "Our forecast calls for an increase in economic growth to 2.9 percent for 2015, which is a slight downward adjustment from our prior forecast but solid improvement nonetheless," said Fannie Mae Chief Economist Doug Duncan. "Although we are beginning this year at a more modest pace compared to the above-trend numbers seen at mid-year 2014, the country's aggregate income has benefitted from the improving labor market, which, combined with low gasoline prices, should help drive higher auto sales and overall consumer spending throughout 2015." "We expect housing to shift up a gear in 2015 following the uneven and ultimately disappointing activity last year," said Duncan. "Our forecast calls for a number of factors, including strong hiring and income growth, stabilized housing affordability, and modestly easing lending standards, to translate into improving housing demand throughout the year. We continue to anticipate that the Fed will begin to hike short-term interest rates later this year, although Rental Housing Journal Colorado â&#x20AC;˘ March 2015

weak global economic growth and geopolitical headwinds will likely limit the rise in long-term interest rates. We expect total home sales to increase by approximately 6.0 per-

cent for 2015, with total single-family mortgage production climbing to approximately $1.2 trillion. Total single-family mortgage debt outstanding should be relatively flat this year

before picking up gradually in 2016 and 2017." â&#x20AC;&#x201C; Fannie Mae

RENTAL HOUSING JOURNAL COLORADO

Growth Foreshadows ...continued from front page market, which, combined with low gasoline prices, should help drive higher auto sales and overall consumer spending throughout 2015." "We expect housing to shift up a gear in 2015 following the uneven and ultimately disappointing activity last year," said Duncan. "Our forecast calls for a number of factors, including strong hiring and income growth, stabilized housing affordability, and modestly easing lending standards, to translate into improving housing demand throughout the year. We continue to anticipate that the Fed will begin to hike short-term interest rates later this year, although

Secret Shopper

weak global economic growth and geopolitical headwinds will likely limit the rise in long-term interest rates. We expect total home sales to increase by approximately 6.0 percent for 2015, with total single-family mortgage production climbing to approximately $1.2 trillion. Total single-family mortgage debt outstanding should be relatively flat this year before picking up gradually in 2016 and 2017." SOURCE Fannie Mae

..continued from page 6

ries over on the weekend? What happens when a manager or leasing consultant goes on vacation or gets sick, and someone from another community fills in? Do you have an established way to communicate what is rent ready, as well as any pending resident issues? It’s hard to function as a team if all the players are not “well-equipped.” Ultimately, the ability to communicate effectively with part-time or weekend staff could make or break your leasing ratio for the week. After all, the weekends are typically the busiest days for apartment hunting. Are your part-timers and weekend floaters fixing to “fumble the ball” or have they been set up to “score rentals?”

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 Phone: 425-424-8870 E-mail: shptalk2@gmail.com Copyright Joyce (Kirby) Bica

The Smoke Free ..continued from front page repairs, and replacement; reduces energy consumption; and may reduce insurance costs. One public housing authority recently reported spending $5,548 to refurbish a tobacco smoke-damaged unit. The cost to refurbish a similar non-smoking unit was less than half according to the same American Lung Association study. The Fort Collins Housing Authority estimated that their no-smoking policy will save the city $100,000. Third, allowing smoking in multiunit housing can increase the risk of fire. In Colorado residential fires caused by cigarettes in 2010 represented 36% of all residential fire fatalities, 14% of fire-related injuries, and 7% of all residential property losses. That same year two buildings owned by the Fort Collins Housing authority were burned due to a cigarette. Implementing a no-smoking policy is not a difficult process with good planning. There are many free resources available to help managers and owners plan for and implement a no-smoking policy. At mysmokefreehousing.org you will find tips on how to implement a policy; sample policies, surveys; compliance and enforcement tips; HUD toolkits and memos, free signs, health information about secondhand tobacco and marijuana smoke; educational materials and other Web resources. The tobacco-prevention team at

Denver Public Health (DPH) and other county health departments have been assisting housing providers with all phases of smoke-free policy implementation, free of charge. In the last year DPH staff has worked with Kappa Management to transition no-smoking policies in two of their properties. “The staff at Denver Health was very helpful and provided handson assistance with resources, training, referrals, and dialogue with residents,” said service coordinator Mikel-Claire Penick. On April 23, 2015 Denver Health will be hosting the 2015 Clearing the Air: Tools, Tips, and Resources for Smoke-Free Living summit at the Denver Marriott West. The free conference will provide sessions on the writing, implementing, supporting and enforcing smoke-free housing policies. For more information call Teddy Montoya at 303-602-3684 or send an e-mail to DPH.TobaccoTeam@dhha.org Pete Bialick is the President of the Group to Alleviate Smoking Pollution and an expert on smoke-free housing. He can be reached at 303444-9799 or by e-mail through www. gaspforair.org

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Rental Housing Journal Colorado • March 2015