Rental Housing Journal - Colorado - May 2015

Rental Housing Journal Colorado

June 2015 - Vol. 7 Issue 6

2. Home Buying Pays Off Fast, but Hurdles Remain for Renters

3. Training the Next Generation of Real Estate Investors

4 Reasons Your Business Should Be On Social Media

6. Ask Tbe Secret Shopper Behind the Leasing Desk

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Vacation Home Sales Soar to Record High in 2014, Investment Purchases Fall

V

acation home sales boomed in 2014 to above their most recent peak level in 2006, while investment purchases fell for the fourth straight year, according to an annual survey of residential homebuyers released today by the National Association of Realtors®.

NAR's 2015 Investment and Vacation Home Buyers Survey,* covering existing- and new-home transactions in 2014, shows vacationhome sales catapulted to an estimated 1.13 million last year, the highest amount since NAR began the survey in 2003. Vacation sales were up 57.4 percent from 717,000 in 2013.

Vacation home sales are up 57.4% from last year, according to the National Association of Realtors 2015 Vacation and Investment Home Buyers survey.

Investment-home sales in 2014 decreased 7.4 percent to an estimated 1.02 million in 2014 from 1.10 million in 2013. Owner-occupied purchases fell 12.8 percent to 3.23 million last year from 3.70 million in 2013. The sales estimates are based on responses from nearly 2,000 U.S. adults who purchased a residential property in 2014, and exclude institutional investment activity.

Lawrence Yun, NAR chief econo-

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...continued on page 8

1Q15 Apartment Sales ReportColorado Springs

By Ron Spraggins, CCIM

C

ommonwealth, Colorado’s Oldest Apartment firm, recently released their "1st Quarter Apartment Sales Report 2015” for Colorado Springs. The report includes all sales of complexes above 30 units from January thru March 2015 plus historic sales data from 1990 to present.

Several sales records were broken in the Colorado Springs apartment market in 2014, as many investors feared an over-building cycle was in the works for Denver. And they were finding better deals in the Springs than Denver. ...continued on page 5

6 Keys to Maximize Leasing Results

By Tami Cox

I

n a competitive leasing market, it's important to stay on top of your game if you want to minimize vacancy rates. Regardless of whether you are new to leasing or have been doing it for years, try these proven strategies to gain better results from your leasing efforts on multi-family properties: 1. Know your market - When was the last time you not just pulled rental comps, but actually visited properties in the direct vicinity of the property to be leased? Do you know what the "other" guys units look like?

What a prospective tenant is getting for their money? Are your rents in line with the current market for the same bedroom/bathroom configuration and square footage? How friendly is the leasing staff out there?

Are your competitor's buildings well maintained or going downhill fast?

How can you lease what you have if you never leave your desk when doing your "market research"? This may seem time intensive and tedious. But even a day or two spent on such ac-

tivities will be worth it.

2. Be responsive to leads - I don't know about you, but one of the most irritating things as a person looking for a new place to call home is if you reach out to a place you're interested in, and they don't call you back! I consider this to be unprofessional, and surprisingly, there are a lot of these property managers and leasing agents out there. Maybe they don't care about leasing their units? Maybe they have so much money to throw around that how long their units sit vacant doesn't matter. Or, maybe they are just too overwhelmed with responsibilities to be effective. This is how you win and your competitor loses out. Be that contact person that cares about every inquiry. You never know who that lead may become to you in your circle of influence - your next tenant or an amazing networking contact!

Even if nothing fizzles out from it, determine to be a professional who gives every lead equal respect and attention.

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

Units get hot and they get cold, depending on your geographic location and climate. No one wants to see an apartment and shiver or sweat as they do! A definite negative strike against you from the onset. And have you gone around and turned all the lights on in the rooms? So people can actually see the layout and wall colors and so forth in the best possible way?

If you stumble to find a light switch when showing a unit, that makes you look like you've never been there and a potential tenant doesn't get a warm fuzzy that you know what you're talking about when they ask questions about living there. They count on you to point out the features that they are just seeing for the first time.

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

4. Create the feeling of home - I can tell you, small details matter. Larger properties know this and that's why they pay stagers to ...continued on page 4

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Home Buying Pays Off Fast, but Hurdles Remain for Renters

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

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

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

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

Even though buyers in most markets can break even on a home purchase in less than two years,i nearly half of renters in a newly released survey said their credit or finances keep them from buying a home.ii

Of renters surveyed by Zillow, 16 percent said they can't qualify for a home loan, 18 percent said they can't afford taxes, maintenance and other costs associated with homeownership, and 13 percent said they don't have enough savings for a down payment. About a quarter said they struggle to pay their rent.

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

Just 14 percent of renters said they aren't staying long enough in the same place to buy.

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

"If the buy versus rent decision were about simple math, we'd likely have millions more homebuyers in

the market, because the equation is tilted heavily in favor of buying," said Zillow Chief Economist Dr. Stan Humphries. "But no matter what the numbers say, buying a home is a huge commitment. Every day, Americans make decisions to buy or rent based on any number of personal dynamics, including preference, flexibility needs, family factors and, yes, financial considerations.

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

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

Among the top 35 metro areas in the U.S., Dallas-Fort Worth had the

lowest breakeven horizon, at 1.2 years. Indianapolis, Ind. and Detroit were next at 1.3 years. The highest breakeven horizons were in Los Angeles, at 5.1 years, Washington D.C. (4.2 years) and San Diego (3.8 years). The national average is 1.9 years.

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

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

4 Reasons Your Business Should Be On Social Media Networking Online Is Crucial, But It Needs To Be Done Right, CEO says

W

hen they need to make personal connections with the rest of humanity, more and more Americans are doing so via the Internet.

A 2014 study by the Pew Research Center showed that 74 percent of adults who go online use a social networking site, whether it’s Facebook, Twitter, Instagram or something else.

“It’s clear that nearly everyone makes an effort to connect some way through social media,” says Doug Vermeeren, CEO of Business Networker (www.businessnetworker.com), an online site that helps small and independent business owners make professional connections.

“A lot of that time is spent sharing vacation photos, debating politics or chatting about everyday events in their lives.

“But businesses are missing out if they don’t understand how powerful online networking is, and how it can help them connect with potential customers and other businesses they could form partnerships with.”

Vermeeren says there are several reasons business professionals are making a mistake when they fail to take advantage of online-networking opportunities.

1. If you are not networking, you are not working. Networking itself is nothing new. Business people have always found ways to connect with potential customers and clients, whether by joining organizations, playing a round of golf or working the tables at a Chamber of Commerce breakfast, Vermeeren says. “These days, social media is replacing realworld relationships,” he says. “That can have the downside of removing the personal touch, but it doesn’t have to be that way. A good business-networking site can help you ...continued on page 7

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RENTAL HOUSING JOURNAL COLORADO

Training the Next Generation of Real Estate Investors

By Clifford A. Hockley, President Bluestone & Hockley Real Estate Services

Y

ou don’t feel any older...but who is that person in the mirror?

After fifty years of investing you have grown a portfolio that nets over $25,000 a month and you feel good about what you have accomplished.

You ‘retired’ years ago when you hired a real estate property management company to handle the day to day upkeep of your investments and prior to that you made sure to build up significant reserve accounts for each of your properties, planning ahead for taxes, major capital expenses, vacancies that might require significant remodeling, and (in the case of commercial buildings) large leasing commissions.

This allowed you the time to check off items on your bucket list while maintaining the income to finance each adventure. Whether you’re in a Paris hotel room or on a lounge chair at a beach resort, you still carefully review each monthly property report to keep apprised of your investments.

Life is pretty good, but you know it can’t go on forever.

You are aging; you may have small memory lapses now and then or a lack of stamina to keep up with rapid change. You know that you need to get young blood involved in your investments. You don’t need to hire another service provider. You need to recruit another you. Everyone you talk to offers the same advice, “Do you have kids?” they ask, “Are they interested in taking over?” You know you should have asked yourself this question earlier but somehow the opportunity escaped you.

Even the closest families sometimes shy away from sharing financial details with each other. Maybe your kids were free spirits in their younger years and you questioned their judgment, maybe they never seemed interested in real estate, or maybe they were focused on their own career path and you didn’t want to complicate their lives.

Maybe you don’t have children but some capable nephews and nieces you never approached. In any case, you have no idea if these potential successors are interested in real estate or investing for that matter.

You also need to understand that involve all of your successors as a just because these people are related group, so they must have a strategy to doesn’t mean your successor(s) have reach consensus. (You will also need to real estate in their DNA or the ability plan for what happens if one of your to collaborate well with each other. successors dies, or is incapacitated, or You need to identify people who are just wants out of the partnership. If passionate about real estate investing, you start planning early, you can gauge like you are. They will need the ability interest level and compatibility to preto work cooperatively in a way that vent this last scenario.) will last into the future. How do you Devise a training program gauge interest, compatibility and aptiDevise a training program to give tude for a job they will assume after your successor(s) the knowledge to you are gone? make the best decisions possible and, Introducing the next generation to in the case of multiple successors, to real estate establish as a group who has the skills At this point, the best approach is a and interest to be the leader. Make fairly direct one. Invite your potential sure this training program includes the successor(s) to visit you for a planning following: session on the future of your real estate 1. Pay for your successor(s) to take investments. Give them some idea of basic real estate courses, either online, the nature of your real estate holdings, or at a college/community college your intentions of passing it on to the near them. They will need to pass with next generation, and explain why their a B or better. involvement now will help make the 2. Put together an orientation so transition a successful one. Let them your successor(s) understands the curknow to expect something more like a rent condition of the properties, how workshop and less like a family and why you bought them and put reunion and discourage them from five-year plans in place for each propbringing their spouses or children. erty. In this way they will also be setIn preparation for the planning ses- ting long term and short term goals for sion, have your property manager pre- asset growth and repositioning of the pare a briefing book for each property portfolio. which includes the property histories, 3. Teach them real estate mathemattenant information, condition of the ics, how to underwrite real estate property, latest capital improvements, deals, how the financials work, what individual balance sheets and income statements on a year over year basis, and then schedule him or her to take your group on a tour of your properties.

After your tour, break down the business details to your successor(s).

Explain the LLC structure of your investments, the trust structure of your estate, and what that would mean to them. Review the potential estate taxes that might arise as a result of VALLEY, METRO, ARIZONA your passing and how you propose APT. NEWS they manage that burden.

If you have a number of successors, you will need to designate one to work with the property manager on day to day decisions. It is important, however, to train all successors so they can create a process of decision making.

Major decisions over $10,000 and those involving strategy and refinancing, purchasing and sales of properties will

pro formas are and how to evaluate property financing so they can make informed purchase, sale and refinance decisions. Evaluate the purchase of potential properties together.

4. Review and role play how to make decisions regarding leasing commercial space and how to handle commercial leases, commercial brokers and their commissions and how to evaluate tenant improvement expenses and lease rates.

5. After all of this training, allow them to take a key role in decision making for your portfolio.

(Remember to modify the LLCs to take their involvement into consideration!)

All this may overwhelm your successor(s) at first, especially if they had no previous exposure to your investments. Allow them to air their concerns and coach them best you can.

If you plan carefully you will have the added bonus of more quality time spent with your loved ones. You will be able to connect with them as adults, and enable them to prepare for their retirement as well as the future of other family members down the line.

With the right planning and training, everyone wins.

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RENTAL HOUSING JOURNAL COLORADO

6 Keys ..continued from page 2 come in and make a model feel like someone lives there - in a hotelish sort of way. Every prospect knows it's been "staged" when they walk in. But they don't care. It helps them visualize what the unit will look like with real live furniture in it. Now if you have a smaller property and full staging isn't feasible or an option, at least do something to add the feeling and atmosphere of home. It's not expensive, and a trip out to your local department and/or building supply store will do the trick. Consider picking up a few low cost but eye catching pieces to be focal points that fit with the style of the room and your unit to be leased. Things such as a flowering potted plant, an attractive candle with a scent most people will like (that you can light just before the showing to freshen the smell of the unit), a seasonally attractive front door mat welcoming visitors, and so

forth. I like to leave the flowers as a house warming gift to the new tenants, they love it! You can decide how simple or elaborate you want to get.

But trust me, leasing success is in the small details your competitor doesn't think matter. You don't have to lease a 300 unit building to do such things.

In fact, the smaller your building, the more important getting a new tenant in quickly becomes to your bottom line.

5. Display unit details and your contact information - I'm shocked at how often this is overlooked. If I'm going to buy a house, it's common for realtors to display information on the kitchen counter or somewhere obvious to visitors regarding the home they are looking at. Because they know it's competitive out there, and they want to sell that house and build a network of contacts. Why wouldn't you put the same effort in

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Commercial & Residential

if you were leasing? A prospective tenant may look at several properties the same day, and how will they keep them all straight if they have nothing physical to take with them as a reminder of that unit and have a way to follow up with you if they want to lease it? Creating a flyer for each unit you have to lease is a smart move. And having business cards along with it helps as well. Don't forget to make a simple sign in sheet for visitors - include spaces for name, number of adults, desired move in date, any pets, email, and telephone numbers for contact. This gives you a record of who saw the unit and a handy reference to follow up. Even if they don't lease this particular unit, you may have others that you can lease to them as they become available.

6. Be a friendly face - Again, this may not sound like the leasing strategy of the century, but you'd be surprised at how far being "friendly" can get you! Who wants to deal with cranky management? The tone you set with your attitude and demeanor at the onset of the leasing relationship can make the difference in whether or not a prospect leases with you or your competitor. You've heard the old adage, "People do business with people they like", right? That still holds true. A friendly, personable leasing professional will get better results than one who's not. Even

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

These six simple techniques will help you lease your units more quickly. Provided your rent rates are priced right for your market, and you have value to offer a prospect. There are more, and cumulatively, they all add up. But you can maximize your leasing results with a little more effort and attention to detail. You may not become the star leasing agent or property manager of the year, but when preserving and growing an asset - cash flow is king. Without leased units, you have no cash flow.

Decide today to step up your game and stand out from the competition.

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

Tami Cox is a Business Consultant and multiple business owner with over 15 years of experience in the commercial real estate market (finance background).

She helps business owners, investors, and entrepreneurs nationwide to become more profitable, put systems in place to run their businesses more efficiently, and reach their goals. For more information and to request her services, visit her website at www.sizzlinghotbusiness. com.

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RENTAL HOUSING JOURNAL COLORADO

1Q15 Apartment Sales ..continued from front page There were two apartment closings (above 30 units) during the first quarter of 2015 with a total sales volume of $60,960,000. This is the same number of sales as the first quarter in 2014, as this quarter is historically slow. The low number was due to lack of available product at a realistic price; as there are many buyers looking for deals.

Total sales volume for 2014 was just over $475MM. 2013 total Sales volume was $166,688,600. Sales volume for 2012 was $177,840,000. Sales volume for 2011 was $125,555,000.

Total sales volume for 2009 was a recording setting low of $48,775,000

following Obamas election. Sales volume of just under $167 million for 2008, $273 million for 2007, $204 million in 2006 and $150 million in 2005.

Commonwealth Survey Class D: Includes complexes that are generally more than 30 years old, in poorcondition, have no or limited amenities, are in poor locations, andhave poor curb appeal. They tend to have the lowest rents per unit, although per square foot rates may be high due to small units.

Class Descriptions Class A: Includes the best com-

Commonwealth's Apartment Sales Report Year End 2014 – 30 Units/Up Name Class Address Boxed Are 4Th Quarter Sales Class A: Spring Canyon A-96 4775 N 30Th Street Bella Springs A-92 1114 Bella Springs Peaks At Woodmen A-93 6913 Alpine Currant Pinnacle A-90 6416 Honey Grove Village At Westmeadow A-91 1265 Capistrano Point The Oasis A-95 1340 Farnham Pt - 1495 Total Class A: Class B: Lynmar Garden Terrace Cheyenne Crest Woodland Hills Ironwood Aka Neighborhood Whispering Hills Total Class B: Class C: Park Ridge Windmill Copper Chase Audubon Gardens Citadel Village Stone Ridge Total Class C: Class D: Carlton Manor Pinewood Haven At Valley Hi Cheyenne Vista Sante Fe Hill Park Alikar Gardens Citadel Timberlane Vista Peaks Fountain Terrace Ashelyn Court East Hills Americana Point Of View Mallard Meadows Fountain Terrace Total Class D:

B-83 B-82 B-83 B-82 B-82 B-82

2710 - 2760 Vickers Dr 4710 Rusina Rd 4008 Westmeadow Dr. 2810 Woodland Hills Dr. 3502 Van Teylingen Dr. 210 Rimview Dr

plexes in terms of Location, Amenities, & Quality of Construction.

Typically includes larger unit sizes, washer/dryer hook ups & garages/ carports. Tenant Population is typically white-collar able to afford single family home, if desired.

Class B: Includes complexes located in neighborhood settings.

Amenities typically include pool & formal play area. Properties are better maintained & enjoy better curb appeal than Class C complexes.

Tenant population includes young families & single parents. School District is often important.

Class C: sectors & residential

Sale Date

Price

Units

$/Unit

$/Sq Ft Yoc

04/10/14 04/15/14 05/23/14 06/12/14 08/20/14 12/19/14

$40,500,000 $48,500,000 $34,350,000 $36,500,000 $24,950,000 $40,000,000

292 364 230 300 208 252

$138,699 $133,242 $149,348 $121,667 $119,950 $158,730

$136 $118 $128 $115 $140 $155

$224,800,000

1,646

$136,574

$130

$8,000,000 $15,800,000 $17,600,000 $16,000,000 $22,750,000 $22,250,000 $102,400,000

100 208 196 160 192 216 1,072

$80,000 $84,615 $80,612 $100,000 $118,490 $103,009 $95,522

$78 $108 $90 $119 $109

02/27/14 05/28/14 07/01/14 09/04/14 09/16/14 12/19/14

1996 2001 2011 2003 2000 1996

1997 1971 1984 1983 1983 1981

$101

C-71 C-72 C-74 C-73 C-75 C-72

2605 Serendipity Cr. E 4165 Lacy Lane 2041 Southgate Rd 1921 E Van Buren St 905 N Chelton Rd 1695 Monterey Rd

04/09/14 07/01/14 07/23/14 07/31/14 10/30/14 11/21/2014

$9,500,000 $18,250,000 $12,125,000 $6,900,000 $9,575,000 $24,250,000 $80,600,000

204 304 150 168 122 280 1,228

$46,569 $60,033 $80,833 $41,071 $78,484 $86,607 $65,635

$63 $100 $101 $48 $81 $119 $88

1971 1984 1969 1952 1974 1986

D-60 D-62 D-62 D-61 D-63 D-62 D-64 D-65 D-64 D-63 D-67 D-65 D-64 D-60 D-63 D-65 D-65

1930 Bijou St E 3105 Dale St E 3110 Mallard Dr 370 Creston Lane 1224 Delaware Dr 310 N Murray 1123 Verde 3616 Galley Rd. 4985 E Bijou 1220 Potter Dr 3209 East Fountain Blvd 930 N. Murray 738 East Hills Rd. 2625 East Willamet 4410 Pikes Peak Ave E 3040 Mallard Dr 3209 Fountain Blvd E

02/18/14 04/15/14 05/02/14 05/30/14 05/13/14 06/11/14 06/12/14 06/13/14 06/30/14 06/02/14 08/26/14 08/12/14 08/14/14 07/23/14 10/23/14 12/03/14 10/03/14

$1,520,000 $2,150,000 $2,500,000 $10,850,000 $2,000,000 $5,900,000 $6,000,000 $1,740,000 $6,150,000 $7,500,000 $2,275,000 $4,200,000 $1,536,000 $1,375,000 $7,125,000 $2,700,000 $1,706,300 $67,227,300

36 52 74 190 54 168 124 46 148 258 57 94 32 40 210 54 56 1,693

$42,222 $41,346 $33,784 $57,105 $37,037 $35,119 $48,387 $37,826 $41,554 $29,070 $39,912 $44,681 $48,000 $34,375 $33,929 $50,000 $30,470 $39,709

$56 $56 $46 $71 $54 $38 $85 $50 $70 $28 $40 $70 $79 $61 $59 $60 $30 $51

1965 1971 1969 1975 1969 1972 1970 71-72 1972 1968-73 1965 1971-72 2000 1965 1985 1985 1965

Rental Housing Journal Colorado • June 2015

neighborhoods. Often found in clusters with other apartment complexes. Amenities are similar to Class B complexes, but properties are not as well maintained. Tenant population is varied. Price often more important than location & amenities.

We assembled representatives from the leading Apartment Rental Agencies, Owners/Investors, & Resident Managers to determine geographic areas and descriptions to be used in classifying complexes by Class A, B,C, & D. The descriptions & geographic lines were arrived at after many hours of discussions by over 25 leaders in the apartment industry. These people deal directly with these items on a daily basis.

They have firsthand knowledge of how tenants/owners view geographic lines & quality of complexes.

Mixing all classes together is like averaging Porsche speed times with a Prius; data is useless to both.

Commonwealth’s reports are the only Colorado Springs apartment reports that separate the complexes into Class A, B, C, and D quality. We also rate each complex within its class, i.e. Class A’s are rated from 90 to 100, B’s 80-89, C’s 70-79, and D’s 60-69. We use 8 separate sub markets.

5

RENTAL HOUSING JOURNAL COLORADO

Northwest

E

very apartment community has its own personality, as well as features and benefits that are unique to that particular property. Yet some smaller buildings find themselves trying to compete with larger communities with bigger budgets and all the “bells and whistles.” A manager of a smaller apartment community posed the following question: I don’t have a pool, exercise equipment, etc., like a lot of the larger places

he

T Ask

Secret Shopper

in my area. How can I possibly compete with them?

The answer is: You can’t! Your community has other benefits and advantages that larger apartment buildings cannot offer. Focusing on those benefits and highlighting them to your prospective renters will give you the opportunity to sell what is special and uniquely different about your community and apartments.

Smaller apartment communities typically have a closer, tight-knit

neighborhood where most of the residents know each other and look out for each other. Also, the staff at a smaller builder may be better acquainted with the residents and more in tune to their specific needs.

In addition, you can regularly do something special for your residents in the way of gifts, lease renewal open houses and community gettogethers. (i.e. Hosting a resident appreciation party for 50 people is much more affordable than for 250!)

If you find that the same objec-

tions keep coming up with regards to the lack of specific amenities and benefits that are available at your community, then CREATE some! If there is no additional storage on your property or you are getting requests for boat and RV storage, then obtain information on public storage facilities in your immediate area that can offer these benefits to your residents. You could even work out a deal where you agree to refer your residents to a particular mini...continued on page 8

Behind the Leasing Desk with Heather Blume

Dear Heather, I was recently fired from a job I worked at for 8 years. I won't go in to details, but the condensed version is that I did my job, and something went wrong, our owner got furious, and I guess I got sacrificed. I've never ever been fired from a job before, and I'm still just stunned. I feel totally worthless, and worst of all, I know that I did what anyone would have done in that situation.

Now I've been applying for new jobs, and if the companies do finally call me in

6

for an interview everything goes fine until they get to my employment history. I don't know what I'm supposed to say when they ask me about why I left my last job. Do I tell them I got fired, or that I left, and do I tell them the specifics of what happened if I do tell them that I got fired? How can I say the right hireable words?

-Tongue Tied in Texas Dear Tongue Tied, The phrase, "I feel your pain," is universally overused, but in this

instance, I actually CAN feel your pain. Being fired is hard on anyone's self esteem, and it's hardest the first time it happens, especially if you thought that you were really good at your job. The good news is that it's DEFINITELY something you can bounce back from and find yourself in an even better place at the end of it all!

First, I want to address that feeling of being worthless that you've got. You're going to need to shake that before any employer is going to be able to get enough confidence to hire you again. As someone who once hired people frequently, I'll tell you that confidence balanced with communication and people skills is my magic mix for people I want on my staff, so you need to find some way to get to feeling better about yourself.

And if you're thinking that sounds easier than it actually is, you're right. What you're essentially going through is a mourning period, just like if someone you loved suddenly left or died. Basic path of grief goes like this - Shock and Denial ->Pain and Guilt -> Anger and Bargaining ->Depression, Reflection and Loneliness -> Clarity -> Reconstruction -> Acceptance and Hope. The problem with the path of grief is that you have to go all the way through it, and it's not always a short process. Personally, when I traveled this path, it took me almost 4 months to really get to a good place inside, despite the face I was showing to the world.

Next, as to how you answer that question... Well, there are a few schools of thought on this one.

Some people say that honesty is always the best policy. This can be true, especially in an industry as tiny as ours is. Odds are, the hiring manager already knows the truth, so she or he is just wanting to see how you answer the question. I would avoid using the word "fired" when the question comes up. The best phrase I've ever heard was

told to me by a good friend and mentor, Jesse Hartman, who suggested that I use the words, "We decided to part ways," or , "It was time to move on." Remember, in an interview, they're judging you on your poise and professional communication skills, so focus on keeping things positive.

If the interviewer brings up the fact that you were terminated and asks you why, I suggest NEVER EVER airing your and your company's dirty laundry. Don't go into specifics, don't tell the whole story and don't cry. One of the best responses in this case is to say, "It wasn't a good fit for me, but that's one of the reasons I like what I've seen about your corporate culture..." and then go in to examples as to why you would fit in well with their company and what you can bring to the table.

Don't let fear hold you back. The job market does have jobs for people who are willing to put forth the effort to get them! Hang in there and focus your efforts on healing over the scars from your dismissal, learning what you can from the incident, and finding a company that can be a great long term home for you moving forward.

Good Luck!

Heather Dear Heather, I just got written up for violating fair housing. It's completely not fair, since I wasn't being discriminatory at all! We have an indoor pool at my community and in the early afternoon there are a lot of senior citizen swimmers in there. Last weekend, one of them was very annoyed because there were a lot of little kids in the pool who were splashing around and cannon balling into the water, right by them. She complained, so I told the kids that they had to stay at the end of the pool that the older people weren't swimming in. I thought it was a good compromise, but then one of the kid's parents (who NEVER controls their child to begin with!) came in and complained to ...continued on page 7 Rental Housing Journal Colorado • June 2015

RENTAL HOUSING JOURNAL COLORADO

4 Reasons ..continued from page 2 keep that personal touch in both your online and live networking.”

2. The customer and you. No matter how good the idea behind your business is, all business transactions still require two essentials: you and a customer, Vermeeren says.

Networking in general helps you identify some of those customers, but online networking can do so even more quickly and efficiently, helping you cast a wider net than you could by dropping in on a local business-networking function.

3. An extra problem solver. The better networked an individual is, the more solutions they have access to in order to solve challenges that affect their businesses, Vermeeren says. It’s the old “two heads are better than one” concept extrapolated

many times over. “Someone probably has already dealt with a problem similar to one you are facing now,” he says. “Being able to draw on their experience could save you a lot of time, trouble and money.”

4. Social media is more than social.

In the past, much of the networking through social media was designed for connecting on an entertainment or personal level, Vermeeren says.

Some businesses have come to realize what a powerful tool social media can be for them, he says, but they had to try to adapt to sites that weren’t necessarily designed with their goals in mind. That’s why Vermeeren saw the need for a networking site that could serve as a resource to help businesses identify customers, strategic alliances and

joint-venture partners.

It’s important to understand that not all sites are created equal or serve the same purposes, Vermeeren says.

Some are great for connecting socially. Others might be good for job recruiting. But businesses also need to be able to build professional relationships online, and have those relationships evolve and eventually turn into mutually beneficial transactions.

“Yes, online networking is important,” he says. “But you also don’t want to waste your time. You need to make sure your online-networking experience is allowing you to build strong relationships with other business owners to help make your business grow.”

Doug Vermeeren is an internationally renowned public speaker, author, movie producer and director. His life coaching strategies help those from all walks of life, with clients including business executives, celebrities, professional athletes and more. He has written three titles contributing to Guerilla Marketing, the best-selling business book series. His most recent venture is the launch of Business Networker (www.businessnetworker.com), a social networking site for small and independent business owners that helps people make professional connections and provides a simple solution for online retail.

Leasing Desk ..continued from page 6 the manager about my compromise.

I got written up. It was complete crap.

I don't want you to think that I think fair housing laws are stupid, but my manager makes such a huge deal out of them! I know they are super crucial to the industry, blah, blah, blah, but I don't understand why me doing something that's just good customer service is a violation of them. Can you tell me how to fight this write up? It's not fair, and it's not right.

-Irritated in Illinois

can step in:

Dear Irritated in Illinois, Oh, you're really not going like my answer. You manager was right.

What you did was a violation of the Federal Fair Housing laws. Unless you happen to work at a 55 and older senior community, you can't discriminate on any of the federal classes, and familial status is one of them.

We can't make different rules for children, just because they're uncontrolled or because we want to. Believe me, I understand your desire to make the best compromise possible with your residents, and I do give you credit for not banning the kids from the pool all together, which is a mistake I've seen MANY young leasing agents make. But the truth of the matter is that we as property management employees cannot make any rules, policies or overt actions that are discriminatory against a protected class.

To phrase it another way... you just sent those kids to the, "Back of the Bus." I'm betting that when your parent complained, it was more about the fact that you were parenting her children than the way you handled the situation. Working with children on site can either be an awesome experience in your day or the worst half hour of your day, depending on the kids and the parents. Let me give you 2 good guidelines on when you

• The kids are causing damage to the property - Don't let that one stand either. That property is your company's asset and in your lease it should say that the lease holders are responsible for the conduct and damages of their guests or occupants. Some places will let this slide more than others, but I've seen places that will crank out a 10-Day with amazing speed in this circumstance.

And that's really about it.

Anything past that, you need to talk to your manager, because anytime we deal with kids we run the risk of violating fair housing unless we are VERY careful.

About your write up, talk to your manager and see if he or she would consider putting it in the "off the record" file, meaning it doesn't go directly against you, but if it happens again, then you're going to get slammed with both of them. And to make sure it doesn't happen again, ask for a little more training on the subject. If your company uses an online LMS system like the Training Factor, Grace Hill or Leasehawk, you can retake those classes at any time, so it might be a good time to brush up on your knowledge. And if your local apartment association is running a CAM class, ask them how much it would be for you to sit through just that one class. The information is FANTASTIC! Please let me know if you need further resources.

Rental Housing Journal Colorado • June 2015

• The kids are causing a danger to themselves or to other residents Absolutely step in here. Step one, call their parents. If you can't reach mom and dad then use good judgment. I suggest talking to your manager and seeing what his or her preferred methods of resolution in this situation are. They've been through it before and can give you a better road-map on how to get out of the mess. That's what they're there for.

Good Luck!

-Heather Heather is the Imagination In Charge of Behind the Leasing Desk Training & Consulting Services out of Seattle, WA. An accomplished national speaker, trainer, consultant, career coach, and author of both books as well as countless industry related articles, Heather holds her CAS designation, is NAA Advanced Instructor

trained, and has been a member of the NAA Faculty since 2009, serving as a WMFHA, CAM, and NALP instructor since 2009. You can check out more of her musings, podcasts, and class offerings at www.behindtheleasingdesk.com

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RENTAL HOUSING JOURNAL COLORADO

Vacation Home ...continued from front page mist, says vacation sales in 2014 showed astonishing growth, nearly doubling the combined total of the previous two years. "Affluent households have greatly benefited from strong growth in the stock market in recent years, and the steady rise in home prices has likely given them reassurance that real estate remains an attractive long-term investment," he said. "Furthermore, last year's impressive increase also reflects long-term growth in the numbers of baby boomers moving closer to retirement and buying second homes to convert into their primary home in

Secret Shopper

a few years."

Vacation-home sales accounted for 21 percent of all transactions in 2014, their highest market share since the survey was first conducted. The portion of investment sales fell to 19 percent (20 percent in 2013); owneroccupied purchases declined to 60 percent (67 percent in 2013).

"Despite strong rental demand in many markets, investment property sales have declined four consecutive years to their lowest share since 2010 as rising home prices and fewer distressed properties coming onto the market have further reduced the

number of bargains available to turn into profitable rentals," says Yun. The median sales price of both vacation and investment homes declined in 2014. The median vacation home price was $150,000, down 11.1 percent from $168,700 in 2013.

The median investment-home sales price was $125,000, down 3.8 percent from $130,000 a year ago.

According to Yun, the decrease in vacation and investment sales prices is likely due to the increase in vacation and investment buyers purchasing condos and townhouses, which contributed to a decline in the medi-

an size of 200 square feet for both.

Additionally, the rise in vacation buyers purchasing distressed properties and buying in the South, where home prices are often lower, contributed to the overall decline in the sales price of vacation homes.

The share of vacation buyers who paid in cash fell to 30 percent from 38 percent in 2013. Investment buyers who paid in cash decreased to 41 percent from 46 percent a year ago.

Of buyers who financed their purchase with a mortgage, nearly half

extra benefits and added sense of value to your residents: PRICELESS! 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

E-mail: shptalk2@gmail.com Copyright Joyce (Kirby) Bica

..continued from page 6

storage if they will be given a discount just for being a resident of your community. In fact, you can work out merchant discounts with almost any local business in your area. In exchange for the discount, you can give the local merchant advertising space in your newsletter and/or pay them a referral fee.

The same thing can be done with area recreational facilities and/or health clubs. Most health clubs are eager to work out special memberships and discount plans in order to obtain new members and increase their word of mouth advertising.

You could agree to place their literature with other new resident information in a welcome packet, and actively promote membership at this particular club. Then, when you get an inquiry about “amenities,” you can describe all the recreational facilities that are available to them through a special club membership they are eligible for as a resident of your community.

Remember: All businesses benefit by working together and helping each other. Networking to create additional “amenities” for renting at your community will take an investment of your time. However, the

Provided by: Joyce (Kirby) Bica Former owner of Shoptalk Service Evaluations Consultant to Jancyn Evaluation Shops Phone: 425-424-8870

Check us out online www.rentalhousingjournal.com

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Rental Housing Journal Colorado • June 2015