Colorado Rental Housing Journal August 2015

August 2015 - Vol. 7 Issue 8

Rental Housing Journal Colorado

2. Apartment Security, What Can You Do? 4. Dear Maintenance Men

6. Housing Market Becoming More Favorable For Renters Than Buys According To Latest Buy Vs Rent Index

www.rentalhousingjournal.com • Professional Publishing, Inc

7. Are business Too Timid With Their Growth Plans?

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What Landlords Need to Know About Bed Bugs By: Chuck Nelson, Owner of Dog Inspectors

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

PRSRT STD US Postage PAID Sound Publishing Inc 98204

Being a landlord is no easy task.

It is riddled with responsibilities, from screening all tenants to taking care of maintenance repairs and keeping properties clean.

Perhaps one of the most dreaded calls a landlord can get is, “I think we have bed bugs.” According to a 2015 Bugs Without Borders Survey, conducted by the National Pest Management Association and the University of Kentucky, the No. 1 place where pest professionals report finding bed bugs is apartments/condominiums. That’s why it’s important for landlords to be prepared and respond effectively.

Be prepared As a landlord, you’re bound to run into a bed bug issue at some point in time. First, you must determine what laws apply to your state to ensure that you know what you are responsible for should you be faced with a tenant infestation. continued on page 4

Record Prices Paid for Apartments in Colorado Springs

By Ron Spraggins, CCIM

C

ommonwealth, Colorado’s Oldest Apartment firm, recently released their "2nd Quarter Apartment Sales Report 2015” for Colorado Springs.

The report includes all sales of complexes above 30 units from January thru June 2015 plus historic sales data from 1990 to present.

There were 12 apartment closings (above 30 units) through the 2nd quarter of 2015 with a total sales volume of $214,163,000.

Colorado Springs is now getting

buyers who were previously only active in Denver, 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.

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 Obama's election. Sales volume of just under $167 million for 2008, $273 million

for 2007, $204 million in 2006 and $150 million in 2005.

Class A

There were two Class A sales totalling $82,050,000 sales volume that included 508 total units. The average price per unit was $161,516 and $156 per square foot.

The 194 unit Commons at Briargate commanded a record high price of $171,649 per unit.

Previous high was $167k a door paid for the Alexan at Briargate. continued on page 3

Flipping Edges Out Renting As The Preferred Investment Strategy For The Third Consecutive Quarter According To Auction.com Real Estate Investor Activity Report

P

rice appreciation and inventory constraints continue to dictate investor strategy Auction.com, LLC, the nation's leading online real estate marketplace, today announced the findings from its Second Quarter 2015 Real Estate Investor Activity Report™, a nationwide survey of real estate investors. Survey data collected from investors bidding on properties online and at live events across the country reveals that flipping is still going strong, edging out the hold-to-rent strategy for the third consecutive quarter – a consistent trend since Auction.com began tracking investor intent. This research provides insight into real estate investment trends on both a national and regional level.

"Rounding out the first half of 2015, most of the country and most investor segments performed in a manner very consistent with what we've been seeing for about a year," said Auction.com Executive Vice President Rick Sharga.

"We're seeing two major trends that are driving these numbers.

First, we're seeing a return of the 'mom and pop' investor in the single family rental space – smaller investors with an intimate knowledge of their local markets, who are willing to buy properties that deliver long-term returns based on monthly cash flow. Second, investors focusing more and more on flipping properties in regions where prices have rebounded from the 2008 crash and inventory of

homes for sale remains scarce – an almost perfect scenario for investors looking for a short-term profit."

Although Auction.com's findings for the second quarter reveal a propensity toward flipping among investors overall, investor intent varies considerably by the type of auction (live event versus online auction) and investor profile.

Survey respondents who indicated that they were making a one-time purchase clearly preferred a holdto-rent strategy, while respondents identifying themselves as full-time "real estate investors" and those indicating that they were working on behalf of another investor favored flipping. continued on page 5

RENTAL HOUSING JOURNAL COLORADO

Apartment Security, What Can You Do?

By Cliff Hockley President, and Heather Hill – Bluestone & Hockley Real Estate Services Property security is an aspect of property management operations often overlooked and not budgeted for. Properties typically need security for: transient removal, trespassing, illegal dumping, vandalism, theft, alarm response, illegal camping, and criminal issues on site (like drug dealing for example). Property owners and managers can choose to implement a variety of strategies to improve property security.

help tenants get to know each other, through monthly parties, events and newsletters.

Lighting and Landscaping Issues

Crime rarely takes place in open areas under spotlights. Make sure the property has adequate lighting and that all lamps work at night, especially in the parking areas to discourage car theft or break-ins.

To save energy, motion sensors can be installed that illuminate a space only when a large moving object Screening Property owners assume that is present. This has a dual benefit on-site managers are responsible of scaring away trespassers and for property security. Many years relieving tenants who might find ago we took over management of a constant lights too bright in their low end mobile home park which windows at night.

Overgrown landscaping can had many drug dealers on-site (something we did not know when provide easy cover for criminals. we agreed to manage the property.) Make sure that bushes or trees don’t The on-site manager and his wife obscure property windows, entries, were exceptionally large and had and/or lighting systems. When used their size to discourage obvious planting bushes near access points crime and keep the tenants in line. like windows, choose thorny yet We were fortunate that the FBI and ornamental bushes such as holly, DEA arrested the worst tenants. hawthorn, or roses as these are more In any case, once we took over difficult to climb over. These plants management of the property, we can also serve as a natural fence. If were able to use improved tenant the property has a problem with screening techniques to select pass-through traffic, for example, better tenants and create a safer corner properties or those adjacent environment. More importantly, we to a retail area where pedestrians were able to reposition the property might choose to cut through the (over a period of seven years) to property to shorten the walk to enable the ownership group to sell another street, you can plant thorny bushes to discourage this practice. the property for a profit.

Criminals find properties with only Community Building one in and out point of access less Community organizing is an desirable than those with multiple important tool for crime prevention. escape routes. These steps require On-site managers can work with the cooperation of the owners, the neighborhood police officers to managers and the landscape team. foster positive relationships with law enforcement at the property. Events Cameras such as the National Night Out draw As the cost of technology has attention to police partnerships that plummeted, it has become easier to can get communities aware of their install security cameras and DVRs role in making neighborhoods safer. to track the data. Many commercial This is not an easy task. It will take and some residential buildings have a lot of work to get community cameras to observe access and help members involved. A good on- security personnel and property site manager who understands the managers track activity at their benefits of community building will properties twenty-four hours a day put the extra effort into this and on their smart phones.

At one of our commercial properties we were having a problem with transients sleeping in the entryway of a vacant space.

We installed a camera with remote access. This enabled the property manager to catch the transients in the act and call local police to arrest them. We did press charges. The security camera worked.

Like good lighting, even the very presence of security cameras can deter crime, however owners and managers should keep in mind that they have limited capabilities when it comes to helping convict criminals after a crime has taken place. The quality of camera images vary greatly, and without adequate lighting, some are virtually useless for night imaging. Most exterior cameras are effective for collecting evidence such as a car make and model and a general height, clothing, build or sex of a perpetrator, but fail to capture essential details such as license plates and facial features.

Also, external cameras must be maintained like any other structure on the property that weathers the elements. Water, dirt, dust and insects can find their way into the camera housing, obscuring the view. Make sure any external cameras are clean to maximize their value. Again, just as the resolution differs from camera to camera, the quality of the housing differs as well. Vendors who specialize in electronic security can advise you on the best options for your situation.

Access Controls

Some buildings are designed with common area central access, which allows for the use of access controls. Typically, tenants are issued cards, fobs, special keys or codes that make it hard for nontenants to access buildings. Tenants can then allow access to their guests through the use of audio or video communication to their front or back door entries.

Like camera systems, access control systems require some upkeep to sustain their effectiveness. Property

managers should understand their role and responsibilities to control access in their buildings. First, cards/fobs, like keys, should be tracked and accounted for. Order new cards or fobs from the same vendor to make sure they are not duplicated.

Missing cards/fobs should be immediately removed from the system, and always either collect the card/fob from the tenant upon move-out or retire the card/ fob from the system upon move out.

Though it takes more time and work, the most secure option is to make sure that cards/fobs are returned upon move-out and then reissued to the new tenant. By using this practice you have a general idea of how many fobs are needed for the building. If you find you are buying more fobs without retiring them, you may have an undeclared loss issue. Like computer systems, access systems have a limited amount of memory. Adding new codes without retiring any may cause the system to reach the limit requiring the purchase of added memory, which can be expensive.

The Police

We encourage our property managers and tenants to call the police when faced with a security problem. We do not want anyone to get injured by an angry tenant or a criminal. Unlike the strategies previously covered, the police not only discourage crime, they also document it on the public record through police reports and can help draw the local police department’s attention to the issues at the properties. Police presence can be very helpful in discouraging crime.

Sometimes, when budgets are tight or crime is rampant, the police departments don’t have time or staff to respond to suspicious activity. When all else fails, you may need to hire private security patrol services.

continued on page 6

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

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Rental Housing Journal Colorado • August 2015

RENTAL HOUSING JOURNAL COLORADO

Record Prices Paid For Apartments ...continued from page 1 The 314 unit Sagebrook apartments received the highest price paid per square foot during the 2nd quarter at $161.

Class A complexes averaged $97,000 per unit and $95 a square foot in 2005!

Prices per unit ranged from $42k to over $171k and square foot prices ranged from $57 to $161.

This huge difference in prices between Classes shows why separating complexes by Class is a must in order to have useful data.

Wide data points skew the results.

Most report mix all Classes together and come up with an “average”, which is meaningless to all classes.

Some reports separate complexes by the year of construction, which makes no sense. There was junk built in the last building cycle and some of our best constructed and located complexes were built in the 60’s!

Mixing all classes together is like averaging Porsche seed 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 80-90, C’s 70-79, and D’s 60-69. We use 8 separate sub markets.

Size of Complexes: The size of the complexes sold ranged from 34 units up to the 314 units.

Age of Complexes: Construction of the complexes sold ranged from 1964 to 2002.

Class B

There were three sales in the Class B quality totaling $72MM that included 748 total units. Average price per unit was $96,257 and $123 per square foot. Per unit prices in 2005 were $60,000 and $80 a square foot.

Class C:

The two Class C sales had a sales volume of $32,660,000 made up of 376 units. Average price per door was $88,862 and $88 per square foot. The 228 unit Fountain Springs received the highest price per unit at $89,912 and $90 a square foot.

Class C's averaged $41,000 per unit and $53 a square foot in 2005.

Class D:

Class D’s had the most sales with a total of 6 and a sales volume of $27,453,000 that included 470 total units. Average price per unit was $50,280 and price per square foot was $63.

Average prices in 2008 were $17,000 per unit and $17 a square foot.

Highs and Low Prices

Submarket Data:

The lowest price paid per square The Northeast is the largest foot for all complexes was for the submarket with approximately Class D 150 unit Mountain Country 12,000 units which is over 30% of the at $57 a square foot. The lowest total inventory. The south market price per unit was paid for the 34 has almost 20% with the Central unit Aspen Creek complex at $42k submarket at 19%. The Northeast a door.

VALLEY, submarket METRO, has added ARIZONA over 1,300 The Alvarado apartments sold for units since 2005 or over 50% of the $36,750 per door but it was a bank total new apartment completions. foreclosure auction sale and not a Rent Rates: market deal.

Street rent rates are up almost Highest price per unit was for the 194 unit Commons at Briargate 3% over the same period last year.

During thisDec period street rents at over $171kFeb, a door.Apr, The 314 unitAug, Jun, Oct, were higher in all submarkets other Sagebrook commanded $161 per than the Northwest which felt the square foot as the top price per foot.

opening of the new complex by Norwood in the Rockrimmon area.

The northwest historically is either number one or two in low vacancies and rent rates, only behind the southwest market if 2nd place. So, this is a temporally situation until the new complex is rented up.

Household Growth/ Absorption:

Almost 3,000 new households were formed in the Springs during the first 6 months of the year.

Household formations in Colorado Springs have averaged over 2% per year during the last 10 years, representing the average of approximately 5,000 households per year. Over the last year, the market absorbed approximately 600 units compared to the average annual absorption rate of 430 units recorded in the last decade.

New Supply:

It is forecasted that there will be over 600 new units to come on line in 2015 and net total absorption is projected to be in the 500 unit range. Consequently, the vacancy rate will continue to drift in those submarkets. Construction activity is expected to continue during each of the following two years, during which a total of just over 1,000 units is projected to be introduced to the market. Net new household formations at the metro level during 2016 and 2017 are anticipated to

average 2.4% annually, enough to facilitate an absorption rate averaging almost 500 units per year. According to REIS the market vacancy rate is forecasted in 2016 at 5.7% and will decline 0.2 percentage points to 5.5% by year end 2017.

Between now and year-end 2015 asking rents are expected to climb 2.2%. On an annualized basis through 2016 and 2017, asking and effective rents are anticipated to rise by 2.3% and 2.4%, respectively, to finish 2017.

For the complete complimentary copy of Commonwealth’s Apartment Sales Report please contact: The Spraggins Team Ron@CommonwealthUSA.net www.CommonwealthUSA.net (719) 685-4300 Commonwealth Colorado’s Oldest Apartment FirmNumber One in Sales Since 1975

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RENTAL HOUSING JOURNAL COLORADO

What Landlords Need To Know About ...continued from page 1 Twenty-two states have laws addressing bed bugs in rental properties, institutional facilities and schools. In many states, landlords have a duty to maintain their buildings free of pests.

Although laws in most of these states use very general terms for ‘pests,’ those in Florida and New York City specify that landlords must exterminate bed bugs. In some states, landlords only need to act if more than one unit is infected.

Once you know what laws pertain to your state, develop a proactive plan to prevent bed bugs from entering your building. For example, schedule a pest control or K-9 inspection after each tenant leaves.

You can also provide guidelines for new tenants on prevention tactics, such as not bringing in used furniture and carefully inspecting luggage after a trip.

Respond Effectively When responding to a tenant’s complaint of an infestation, follow these guidelines: • Respond with empathy and understanding for the person making the complaint. Bed bugs can cause fear and hysteria, so a little kindness and compassion can go a long way when speaking with the person who reported seeing bed bugs.

• Promptly inspect the areas in question, especially beds and

Dear Maintenance Men: areas where luggage might be stored. Look for the bugs themselves, their shed skins or dark spots on sheets, bedding, walls, electric outlets, etc., as this may be an indication of bed bug fecal remains.

• Contact your pest management company. The sooner the problem is eradicated, the better.

Make certain that whoever you use to treat the problem has a great deal of experience in bed bug eradication and offers a warranty for their work.

Chuck Nelson is the owner of Dog Inspectors, the first company in Tennessee to utilize trained, certified detection dogs to find bed bugs in commercial and residential buildings. For more information about the company’s services visit www.doginspectors.com.

• Schedule a follow-up pest control or K-9 inspection after the treatment has been completed to confirm all bed bugs have been eliminated.

• Document all actions taken.

Bed bugs are not something to mess around with, especially as a landlord. Nothing will cause residents to scatter and new tenants to avoid your property like the plague like a report of bed bugs. That’s why it is important to be proactive in preventing an

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SINCE 1984

By Jerry L’Ecuyer & Frank Alvarez Dear Maintenance Men: We have been in drought conditions for a long time here in the West, however I keep hearing about the wet weather condition called “El Niño”. What is “El Niño” and how should I prepare my apartment building for its coming?

-John Dear John: An El Niño is a weather pattern produced by unusually warm ocean temperatures in the Equatorial Pacific. The El Niño phenomenon is associated with extreme weather around the globe and in California it typically means a wet winter with higher than normal rain levels. The National Oceanic and Atmospheric Administration (NOAA) is predicting a 60 percent change that the El Niño conditions will continue all year.

So how do you prepare for El Niño? Inspect your building’s roofs, gutters, drains, flashing and trim overhanging trees. In other words, don’t wait for the wet season to find continued on page 8

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Rental Housing Journal Colorado • August 2015

RENTAL HOUSING JOURNAL COLORADO

Flipping Edges Out Renting ...continued from page 1 Q2 2015 National Findings: Investor Intent Investor Profile

Flip

Rent

Undecided

One-time purchase

26.5%

72.2%

1.2%

Real Estate Investor

55.6%

43.3%

1.1%

63.7%

34.6%

1.6%

53%

45.8%

1.2%

Working on Behalf of Another Investor TOTAL

Investors bidding at live events appear to be far more likely to flip the properties they purchase based on survey responses collected in the second quarter of 2015, with respondents indicating a preference toward flipping over holding to rent in every state where Auction.com conducted live events. Of the states represented in the survey, the widest margins occurred in the Southwest and Midwest.

Q2 2015 Live Event Investor Data: Intent of All Investors Surveyed State

Flip

Rent

Undecided

Arizona

71..3%

28.7%

0%

California

71.9%

28.1%

0%

Georgia

56.6%

43.4%

0%

Idaho

77.5%

22.5%

0%

North Carolina

66.7%

33.3%

0%

Nevada

70.4%

29.6%

0%

Tennessee

54.8%

45.2%

0%

Texas

54.4%

45.6%

0%

Washington

65.5%

34.5%

0%

Nationwide

61.3%

38.7%

0%

Conversely, responses given at online auctions in the second quarter of 2015 show that investors bidding online generally intend to hold the properties they purchase. This was true in every region except the Northeast, where the pendulum has swung toward flipping. As was noted regarding a similar (though temporary) shift in the West earlier in the quarter, this is likely due to the region's inventory constraints and higher purchase prices negatively impacting rental property returns.

Q2 2015 Online Investor Data: Intent of All Investors Surveyed Region West Midwest South Northeast Nationwide

Flip 42.9% 43.9% 43.8% 21% 44.6%

Rent 55.3% 53.2% 54.3% 47.2% 53%

Undecided 1.8% 2.9% 1.9% 1.7% 2.4%

Less active investors (those indicating that they purchase one or fewer properties per year) demonstrated a strong preference for renting properties, while flipping was prevalent among investors who purchase multiple properties per year. This preference appears to be growing among investors purchasing more than 50 properties per year: nearly 62 percent of respondents in this group favored flipping in the second quarter – up from 56.3 percent in Q4 2014 and 53.6 percent in Q1 2015.

Q2 2015 Investor Data: Intent By Purchase Profile Purchase Profile 0-1 Property/Year 2-49 Properties/Year

Flip 38.2% 59.8%

Rent 60.2% 39.2%

Undecided 1.6% 1%

50+ Properties/Year

61.9%

38.1%

0%

About Auction.com: Auction.com, LLC, is the nation's leading online real estate marketplace.

Founded in 2007, the company has sold over $30 billion in residential and commercial real estate assets. Auction.com has over 900 employees and headquarters in Irvine and Silicon Valley, California as well as offices in Austin and Plano, Texas, Atlanta, Denver, New York and Miami. Visit www.auction.com for more information.

SOURCE Auction.com, LLC

We’re Buying

C OL OR A D O A PA RT M E N T S Commonwealth is Colorado’s Oldest Apartment Firm, number one in sales since 1975.

The Spraggins Team has closed over 120 complexes in the Springs, more than all other brokers combined!

We currently have over $200 Million in liquid funds for Colorado apartments.

We only need a rent roll/ statements and we’ll give you a LOI in one week.

All kept confidential.

We’ve closed more Colorado Springs complexes than all the other firms combined, including; The 440 Unit Grand River Canyon 2nd Largest Sale Ever Wildridge – 305 Units Windmill – 304 Units Oasis – 252 Units Timberlane/Tanglewood – 260 Units Preserve At Hidden Creek – 240 Units Landings – 236 Units Garden Terrace – 196 Units and on and on!

Ron@CommonwealthUSA.net | 719-685-4300 w w w. C o m m o n w e a l t h U S A . n e t Rental Housing Journal Colorado • August 2015

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RENTAL HOUSING JOURNAL COLORADO

Housing Market Becoming More Favorable For Renters Than Buyers According To Latest Buy Vs. Rent Index The latest national housing market index produced by Florida Atlantic University and Florida International University faculty indicates it is becoming more favorable for renters than buyers in terms of wealth accumulation.

The Beracha, Hardin & Johnson Buy vs. Rent (BH&J) Index attempts to answer one of the toughest questions American consumers face: Is it better to rent or buy a home in today's housing market? The quarterly index is designed to signal whether current market conditions favor buying or renting a home in terms of wealth creation over a fixed holding period in a particular market relative to historical market conditions and alternative investment opportunities.

It examines the entire housing market in the United States and isolates the markets of 23 key cities.

According to the latest BH&J Index, as of the end of the first quarter of 2015, the housing market in the U.S. and all cities in the index are trending either closer to renting being the superior option or strictly favoring renting over purchasing a home.

Three cities (Dallas, Denver and Houston) are clearly in rent territory, with property pricing clearly out-pacing rents, meaning buyers should proceed with strong caution.

In contrast to the latest Standard & Poor's/Case-Shiller Home Price Indices, which recently reported a five percent year-over-year property appreciation rate, the BH&J Index suggests that potential purchasers in many cities around the U.S. should begin to bargain more aggressively.

"Potential buyers should be cognizant that 'the deals' are out of the marketplace and that it is essentially a toss-up between rent and ownership as to which way will, on average, provide greater wealth accumulation," said Ken Johnson, Ph.D., a real estate economist who is one of the index's authors and an associate dean of graduate programs and professor in FAU's College of Business. "Miami, in particular, deserves attention as it has been trending toward rent territory for several reporting periods. In Miami, potential buyers should seek to bargain more aggressively."

Seven cities (Miami, Honolulu, Los Angeles, Pittsburgh, Portland, San Francisco and Seattle) are at or near the indifference point between ownership and renting. Here the spread between monthly rent payments and ownership payments appears to be at a point where neither ownership nor renting is statistically favored.

Four cities (Chicago, Cincinnati, Cleveland and Detroit) remain in strong buy territory with scores that have historically favored wealth accumulation through home ownership.

The index conducts a "horse race" comparison between an individual that is buying a home and an individual that rents a similar quality home and reinvests all monies otherwise invested in homeownership.

Johnson's collaborators in this ongoing independent research are Eli Beracha, Ph.D., assistant professor in the T&S Hollo School of Real Estate at FIU, and William G. Hardin III, Ph.D., director of the T&S Hollo School of Real Estate at FIU's College of Business.

The index's results are standardized between 1 and -1, with negative scores favoring ownership and positive scores favoring renting. The BH&J Index provides information on both the direction and health of varying housing markets, as well as collateral information for real estate professional, developers, lenders and housing policy makers.

The BH&J Index is published quarterly and is available online at http://business.fau.edu/buyvsrent. Due to data availability and the time necessary to calculate the most current index values, the index is produced two months after the end of the quarter.

SOURCE Florida Atlantic University

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Apartment Security ...continued from page 2 Private Security Patrol Services

Security patrol services deliver uniformed visibility to discourage criminal behavior when police departments are not available.

The best security patrol companies staff trained and armed officers who wear body cameras to track the audio and video of every incident. Their patrol vehicles are equipped with GPS and computer systems that allow them to take active notes for all properties, map locations of failed lighting systems, track parking violations, and collect evidence that can be used in court if the property owner chooses to pursue legal proceedings.

Physical security companies offer services that include driving through properties and stationing overnight guards. These security patrol services typically check doors to make sure they are locked up, and respond to calls from onsite managers who request them to roust transients or help break up fights. Like the other strategies discussed, security patrol services deter criminal activity by being visible. Managers and owners can also post their signage at the property to deter criminals from cruising the property.

If you have an active drug dealing problem, on-site security can help protect the on-site manager. At a

6

difficult property it might be almost impossible to recruit and hire a property manager without twentyfour hour armed and uniformed security.

Many years ago we were hired to manage a property that the city threatened to take over due to the numerous police calls there.

We hired on-site security for two months, identified and evicted the problem tenants, and were able to turn the property around.

Summary

Property security should never be overlooked by owners of investment properties. There are many strategies used to improve property security including thorough tenant screening, community building activities, adequate lighting, trim and effective landscaping, camera systems, access control systems, cooperation with the police and the hiring of private security patrols.

When properties have a pattern of crime, it makes sense for owners and property managers to review all of the resources that can help create a safer environment for all.

Safer properties equate to lower tenant turnover and more profit for property owners. Safety should always be a component of a property operations plan.

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Rental Housing Journal Colorado • August 2015

RENTAL HOUSING JOURNAL COLORADO

Are Businesses Too Timid With Their Growth Plans?

By Cameron Herold Corporate Development Expert Says CEOs & Entrepreneurs Shouldn’t Sell Their Vision Short Variety in business is generally good, but when it comes to profit and revenue, an entrepreneur’s expectations should be fairly singular – go big.

That’s according to business development expert Cameron Herold, who drove 1-800-GOTJUNK’s growth from $2 million to $106 million in a handful of years.

Otherwise, he says, you’re probably selling yourself short.

“If you’re a CEO or entrepreneur and you do not plan on doubling your profit and revenue within the next three years, you may be lacking focus,” says Herold, author of “Double Double” (www.

DoubleDoubleBook.com).

“It’s within your grasp to increase your business drastically within a few years, but you need to make several smaller goals in order to do so. It all starts with a vivid vision.”

Herold discusses how to cultivate that vision.

• Get out of your office. A vision needs perspective, and if you’re waiting for inspiration to strike at your desk or the boardroom conference table, you’re bound to get dragged into the daily routine. You need to allow your mind to drift into the future, but

Rental Housing Journal Colorado • August 2015

at the office you will get pulled back into specific constraints.

Go somewhere that allows you to forget metrics, daily tasks and obligations. Great locations to set your mind free include the ocean, a forest or a place in the mountains. Or, simply lie down in a hammock in your backyard and start sketching ideas.

• Turn off your computer.

Computers are notorious for sucking you into the vortex of daily emails and tasks. Instead, put pen to paper. There’s magic in just writing it all out by hand first.

“I got a sketchpad with unlined paper,” Herold says. “Initially, I had trouble thinking abstractly because I’m so left-brained. I turned my sketchpad sideways, ‘landscape mode,’ and ideas for how my company would look in three years began coming to me.”

• Think “where” and not “how.”

Look at the road in front of you.

Don’t focus on how you’ll make it happen. The “how” mentality is sort of like trying to edit a first draft before it is written; the “where” mentality allows you to simply get your ideas out first. Where do you want your company to go? Look down the road, see what you see and let the view have its moment.

Don’t get ahead of yourself. The

how will have its day.

• Think outside the box. Getting out of your comfort zone will change your usual thought patterns and spark creativity.

Think about crazy stuff – maybe something too outlandish to share at a meeting or even consider seriously.

“I like to use a technique called ‘mind-mapping,’ which isn’t so much formal writing as it is plopping down random thoughts onto paper and fleshing them out later,” Herod says. “Mind-mapping allows you to brainstorm without having to provide explanations of strategies for achieving the desired goal. Here’s a good rule: if what you think about during one these sessions seems bizarre or unlikely, it’s something you should definitely include in your vision.

About Cameron Herold Beginning his first business at age 21, Cameron Herold (www.DoubleDoubleBook.com) has been instrumental in the successful sale, branding and integration of 500 business locations with three major companies. He’s best known as the driving force behind 1-800-GOT-JUNK’s spectacular growth from $2 million to $106 million in revenue in six years. His range of executive roles includes strategic planning, negotiating corporate acquisitions, operations, people, sales, marketing, call centers and public relations. Herold is a top-rated lecturer at the EO/MIT Entrepreneurial Masters Program and a powerful and effective speaker at EO/YPO & Vistage events around the world. He is the author of “Double Double.”

CONSULTING & FINANCING ● Specialist in commercial real estate ● 20+ years of experience helping business owners, investors ● Work with clients nationwide ● Short or long term projects/speaking ● Remote or face-to-face (will travel) ● Excellent professional references

www.sizzlinghotbusiness.com tami@sizzlinghotbusiness.com

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RENTAL HOUSING JOURNAL COLORADO

Dear Maintenance Men ...continued from page 4 out your roof is in poor condition.

Get the work done now while it is dry and the roofing companies are not busy. Don’t forget about large trees that hang over your roofs. In wet windy weather, they can cause a lot of damage to a roof if a limb breaks or a tree falls because of soggy soil. Flat roofs are especially vulnerable to blocked scuppers and roof drains. The backed up water will find the slightest weakness in any roof system and even cause a roof collapse.

Dear Maintenance Men: Pigeons are driving me crazy! I have tried everything to get rid of the pigeons that have taken over eaves and patios at my complex. I have used fake owls, high pitch sound devices, goop to give the pigeons sticky feet and spikes everywhere. They just laugh at the spikes and walk and nest over them.

Any advice will be welcome!

-Jennifer Dear Jennifer: Although your situation is beyond this; the first line of defense is not letting pigeons get a foot hold at your property in the first place.

Talk to your residents and make sure no one is feeding the pigeons!

It sounds like you have tried most of the common antidotes for getting rid of established unwanted pigeon flocks. Getting rid of pigeons is a war of wills. If you give up, they will return. The key is to make them as uncomfortable as possible and not stopping until they are

Rental Housing Journal Colorado • August 2015

gone. First thing to do is clean the area with bleach to remove any pigeon nesting smells and spraying any stubborn pigeons with a water hose over and over. If the area lends itself to be closed off, put up netting to keep the birds from entering the area. If the spikes are broken, replace with stronger ones.

Check at your local farm supply or the internet for stronger better quality spike strips. The area must be monitored constantly until the birds have found a new nesting area away from your building and remember, this is a daily battle if the campaign is to be successful.

Dear Maintenance Men: Drought or no drought, I have decided to ditch my lawn! I figure in the long term, getting rid of the grass will save me time and money with less watering and maintenance. What recommendation do you have to help me achieve my plan?

-Dorothy Dear Dorothy: Creating a drought tolerant landscape is a great idea.

As you mentioned, the drought tolerant landscape will cost you less money in water and will be easier to maintain.

The single greatest consumer of water in your landscape is the turf. Reduce the grass area to ease the burden on water. Xeriscaping is a term for a water conserving landscape. Some of the benefits of Xeriscaping is water saving, low maintenance,

pesticide free, pollution free (no lawn mowers) and use of local native plants. You might want to consider using Ornamental grasses, as they are drought tolerant, look great and give your landscape a bit of vertical dimension. Succulents of course are great at conserving water.

Flax and Delphiniums Iris are a few perennials to use. Marigolds, Mexican Sunflowers, Phlox and Vinca Passion are Annuals that will work well. As for shrubs, look at Japanese Black Pine, Mountain Currant, Sassafras, Honeysuckles etc. A good choice in trees are Acacia, Gray Birch, Monterey Cypress, Eucalyptus, Fig, Juniper Amur Maple to name a few. Check with your local nursery for what best suits your area as or climate. Be sure to provide good drainage and using plants native to your area are best.

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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