Rental Housing Journal Colorado April 2016

Rental Housing Journal Colorado

April 2016 - Vol. 8 Issue 4

3. Window Film – How Its Proper Use Can Help You Save Money

5. Top Questions Regarding Music Licensing for Rental Properties

4. Common Tenant Complaints and How to Handle Them

8. Dear Maintenance Men – Maintenance Tools & City Inspections

Www.rentalhousingjournal.com • Professional Publishing, Inc

DENVER • COLORADO SPRINGS • BOULDER

Monthly Circulation To More Than 7,000 Apartment Owners, Property Managers, On-Site & Maintenance Personnel

Are You Investing in Real Estate to Go Green or to Make Green?

T

here are countless ways to make your rental properties more energy efficient. High efficiency appliances, high efficiency heating and cooling systems, solar, the list goes on and on. Most of you probably did not purchase investment real estate with the intent of saving the planet. One big question that you need to ask yourself when making your property greener is “How is this going to make me more green ($)?” Any money that is spent improving your property should increase the overall value or lower your monthly expenses or both.

Are you looking to increase the value of your property? According to a reputable local appraiser there are very few

Increasing Your Property’s Bottom Line

by Tami Cox

O

wning and managing multi-family properties has its challenges. Two of the most important - keeping residents happy so they keep paying rent (aka - your direct revenue stream and job security) and simultaneously pleasing the property owner (which almost always results in what shows up on the bottom line each month and at the end of the year). In this article, we won’t be covering resident relations, but will be focusing on shining in the owner’s eyes and increasing your property’s bottom line. Whether you work for the owner or are the owner, consider these tips to decreasing expenses and increasing revenue - resulting in a healthier NOI come year end.

Outside Services In the day in the life of property management, any number of things can go wrong! They can also go right. Smooth

operations don’t necessarily equate to a profitable property. One of the key areas to look at is how much you are spending in outside services. This means your

continued on page 2

Attract Tenants with Simple Eco-Friendly Upgrades

By Scott Matthews, Director, Strategic Accounts, The Home Depot

T

he multifamily housing industry is expected by many to continue growing throughout the year, which means strategic upgrades to your property can help prepare you for increased demand and set you apart from competitors.

Approximately 65 percent of renters consider energy-efficient features when deciding what apartments to rent, according to The Center for Climate and Energy Solutions. These upgrades will also cut operational costs associated with water usage, heating, cooling and other energy, helping both you and your residents save money.

PRSRT STD US Postage P A I D Sound Publishing Inc 98204

continued on page 6

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

maintenance team, plumbers, electricians, groundskeepers, painters, carpet

continued on page 7

Advertise in Rental Housing Journal Colorado Circulated to over 7,000 apartment owners, on-site and maintenance personnel monthly.

Call 503-221-1260 for more information

Rental Housing Journal Colorado

Increasing Your Property’s Bottom Line cleaners, and so forth. Having good quality people you can rely on and trust is important. But also, having those same people reliably deliver services at a price your current revenue stream can afford and support on an ongoing basis. I like to get at least three quotes for every project or service job I’m planning to give to someone. That way, you have a better chance of knowing what rates and pricing is competitive in the market for whatever service you need.

Now, if you lock in great pricing for your “go-to” people, and you work well together - perfect! Keep it moving that way. But if performance is down and the cost is too steep, it may be time to start looking for someone new. By the time you add up all the labor, material costs, taxes to services rendered it’s possible to have bitten off more than you can chew! If so, dial it back and implement some immediate changes. I like to keep my options open, and not get stuck in long term contracts in the event something goes wrong and I’m not happy with either the service or the end price showing up on the bill. The larger the property (in units), the easier it is to slip on these expenses because gross revenue coming in looks good as a big round number. But when you start deducting everything coming in, it may not look so good any more.

Maximize Rents Collecting rent on time from every resident at your complex affects cash flow and is vital to the financial health of your property. But it’s not just collecting that rent and depositing it in the bank that counts. It’s how much you collect (along with your vacancy rate) that is significant. This is where we look at factors that can draw greater rents to a property that may be underperforming financially. So how can that be accomplished?

Part of it has to do with local market conditions and the time of year, we’d be foolish to say otherwise. But the other parts are having a unit that is desirable to live in in the first place, along with

good old fashioned salesmanship - a warm personality and an on your game professional approach that nails it when it comes to leasing.

First, the unit itself. It’s not just about doing a turn, where a little paint and cleaning are enough anymore. If you have an established property, chances are pretty great you’re competing in

...continued from page 1

your local market with brand new developments that have a “newness” you don’t. Residents like shiny and clean and smelling good and new, in addition to everyday function, location, amenities.

Amenities actually have far less impact that they used to. Residents care about them, but not as much as they do about the unit they live in and call “home”. Let me ask you, what are you doing to make it feel like home to a prospect? Their home, not yours. Go shopping. Buy some simple staging items to spruce up the kitchen counter. Get a plant, a place at, some candies, make it look like an inviting presence which you then leave behind as a house warming gift. Put your sign in sheet next to it with your business cards. But the core of the unit has to “sing” rent me! Is it spotlessly clean? Did you replace anything old and worn out? Spend the money and upgrade all the appliances to stainless steel. Mist resident prefer the stainless.

White can be okay, but still look dated.

Black, makes the room look small and closed off. Go the extra mile and get an interior designer in to help you spec out the unit turn with the goal of maximizing rents with a new lease. Don’t lock in a one year lease that’s going to end at a time of year undesirable for leasing.

Be open to adjusting the lease term to say 7 months, or 10 months. Whatev-

er works so you expire at peak leasing times. The exterior has to be impeccable as well. Always have your cleaning crew on top of every detail when you’re about to lease a vacant unit. It matters. These are just a few of the things you can do aesthetically to improve your units in such a way as to draw bigger rents.

Then there is salesmanship. Who you

put to the task of making that first impression and communicating with prospective new residents will either advance you or kill you! The longer a unit sits vacant because it doesn’t get leased is money out the door and off your bottom line. Find great people (or a great person) to do your leasing and reward them generously for doing so. This keeps motivation high and keeps your property showing green! Don’t assume the best person for the job is the property manager. Not always true. It could be one individual you know who has a talent for such work and all they do for you is lease. It doesn’t have to be that way. I’m just saying that who you choose for this particular role in the operations and management of your property is absolutely key!!! A good “sales person” can convert features to benefits in ways that are received well during a showing.

I like to say, if the deposit is getting collected and the lease inked on the first visit - you’ve got a strong closer. Getting them approved and issuing keys as well for immediate move in is icing on an already sweet cake. A rock star leaser can do that. Find that person! They are one of your property’s most valuable assets. A person with good salesmanship abilities can also drive rent rates up a notch, and every dollar counts on you year-end statement. Completely affects your overall property value. My suggestion - when you find that person, bonus them well. Give them that “carrot’!

A well prepared unit along with an exceptional leasing professional will directly impact your bottom line.

Organization and Due Diligence This last point I’m going to mention has everything to do with organizational skills, keeping the property books in order, knowing where to find things, staying on top of the numbers and how your property is actually performing month to month. Don’t wait until the end of the year or tax time to get your ducks in a row and see how it all turns out. Can you spell disaster? No, someone should be assigned the task as scrutinizing the income and the expenses each month, and looking at what can

be changed or adjusted for maximum productivity and profit. If you don’t know your numbers, or if they aren’t accurate - how can you manage your property effectively and make money?

Are you using the right soft ware program to help you with this? How long has it been since you even looked at new soft ware options out there (with so many talented computer geeks coming up with amazing programs!) that could be better for your property manage to and portfolio tracking tasks. Or are you still on a dinosaur system, because it’s just what you’ve used for years? That dinosaur could be costing you money!

Then there is the person who is actually putting the numbers in. Is it getting done regularly, on schedule, and is it accurate? Or are things falling through the cracks? Again, good people are an asset to you. Value and appreciate them. Train them. Create a positive work environment that makes them want to dig into those numbers and crunch them for you! Lunch now and then, Starbucks, cookies, a gift card of appreciation. I see this people side of your business (because your property is your business) as due diligence. Things you need to do to arrive at a specific outcome. That outcome is profitability. We’re all about the bottom line, but what are you doing to improve it?

Taking these things into consideration for each of your properties will become like second nature once you get the system in place. Whether you win one property it multiples, it’s your system that you must improve to create assets that perform well. There are many other factors I could elaborate on, but these are some of the basics that I hope will give you a fresh perspective and jump start to putting a finer pencil to that operating statement. The one that can get you more money to buy the next property, when you need it. Because you will have proven you know how to not just repay debt service, but take a multi-family property and improve its performance over time with your top rated management skills. Investors and partners will love you, and so will your bank account!

Tami Cox is a Business Consultant and Commercial Real Estate Lender that has been working with investors and business owners for over 16 years - helping them become more profitable, grow, reach their business goals, and improve their bottom line. You can learn more about her services at www.sizzlinghotbusiness.com or reach her by phone at 952-491-0030.

Advertise in Rental Housing Journal Colorado Circulated to over 7,000 apartment owners, on-site and maintenance personnel monthly.

Call 503-221-1260 for more information w w w. r e n t a l h o u s i n g j o u r n a l . c o m 2

Rental Housing Journal Colorado · April 2016

Rental Housing Journal Colorado

Window Film

How its proper use can help you make money

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

I

t’s somewhat of a secret that window film has more than one application.

If used correctly and installed by a professional, window film can deliver huge savings to building owners, especially in warmer climates.

Over ten years ago we purchased a small office building to move our business into. We moved in March, and as spring transitioned into summer and the sun came out more often, our space started heating up. The air conditioning system (about 6 rooftop and ground based split units), could not handle the load and labored to cool down the building. The employees complained about the heat, and the high electric bill added insult to injury.

Installing new HVAC units would have been very expensive and the roof was not designed to support the additional weight. We looked for another answer and found one at the booth of a window film vendor during a vendor open house hosted by the Institute for Real Estate Management.

Their display was very simple. It consisted of a piece of glass with window film on one half of the glass. A heat lamp was positioned on one side of the glass and two thermometers were positioned on the other side, one parallel to the clear glass and the other one next to the glass covered in the film. It became clear in a moment that the window film reduced the heat load significantly.

According to tests conducted by window film manufacturers, the film reduces heat loads from 25 to 85 percent.

(Results vary depending on manufacturer and type of film; research products carefully to identify the best film for your need.)

The location of the window film is also a factor. Installing film on windows that face east, south and west are typically more effective than on the shady north side of a building, and if your building is already well shaded, window film may not help at all.

Of course window film can be used in residential (single family and multifamily) applications as well. Say you wanted to renovate an apartment complex in Phoenix and the windows are 25 years old. Rather than buy new windows, you can use window film and market the advantage of lower electrical bills to potential tenants. Owners of residential buildings in hot climates are responsible for maintaining the air conditioning units, so reducing the solar heat load with window film makes a lot of sense since it relieves stress on air conditioners.

Secondary benefits of window film Although reducing a building’s solar heat intake is the primary purpose of window film, it has other advantages as well. It relieves the stress and resulting wear and tear on the cooling unit, and reduces the need for individual fans, saving energy and money. Most of these

films also almost completely (up to 99 percent) reject UV rays, extending the lifetime of carpeting and furniture in addition to mitigating the harmful effects UV rays on people. As the technology as developed, many film manufacturers have marketed other dual benefits their product.

Security and windstorms: The 3M company has developed a film series that will work effectively in wind storms of up to 185 miles per hour and will resist breaking and entering, if installed by an experienced and certified installer. This micro layered technology is typically blast and tear resistant (see their website for examples).

Anti Graffiti / Surface Protection Series: 3M also offers products that are graffiti and scratch resistant. They can be either 4 or 6 millimeters thick and offer protection from taggers in high risk areas by using an invisible sacrificial layer to protect glass from acid etchings, scratches and tagging. This layer can also protect window surfaces from regular wear and tear.

This product solved a recurring tagging problem we had at a commercial building we manage in a high risk area.

Vagrants had repeatedly defaced the windows using keys and other materials. We replaced the windows twice before discovering this window film.

That was eight years ago. The surface is scratch resistant and has held up well.

Though there is evidence of attempts of attacks to the surface since the installation, the perpetrators eventually became frustrated by the lack of results that they stopped attacking the building altogether. If, perchance, they have some success, we can always strip off the film and replace it rather than installing a new window.

The film offers the added benefits of heat load protection (these windows are on the south side), and privacy.

The window film is dark and reflective which makes it difficult to look into the space, (preventing a thief from “casing the joint” by looking through the windows.)

Saving you money In select situations, window film can be used to reduce heat load, the stress on HVAC systems, electrical bills, glare and crime. It also distributes light better in some applications. As you troubleshoot operational problems and/or attempt to reduce energy needs, consider the use of window films as an economical alternative to window or cooling unit replacements.

Note: There are any more uses of window films. In a future article we will address how window films can be used decoratively or to increase privacy in the interior of buildings with glass walls.

Rental Housing Journal Colorado · April 2016

3

Rental Housing Journal Colorado

Common Tenant Complaints and How to Handle Them

B

eing a landlord inevitably includes dealing with tenant complaints. Managing those complaints promptly and effectively is essential for your relationships with the tenants, the security of your property and last but not least – for your landlord’s reputation. If you approach the problems in a professional manner, you are definitely going to lessen the chance of some legal issues as well.

Here are the 4 most common tenant complaints and a few useful tips on how to deal with them. Some of them can occur during the tenancy period, but others you can easily foresee and handle in advance.

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

The property is not clean enough Absolutely no tenant will be pleased by the thought that they will have to start cleaning the property from the very second they move in. In fact, few people will be willing to rent a place where domestic cleaning hasn’t been done since forever. So it is a great idea for you to give your rental property a good cleaning before the new tenants come and avoid starting your relationship making the wrong impression.

In case you are not capable of taking proper care of the hygiene, maybe you should hire a professional cleaning company at least a week before the scheduled moving day. Make sure no stains and dust will greet your tenants as they go through the door.

Something does not work properly Appliances and facilities just stop working sometimes; it happens no matter that no one wants it. Test all domestic appliances in advance to prevent complaints from your new tenants. In case the same person has been renting your property for a certain period of time, make sure you respond immediately to their signal. A clogged sink or an oven which cannot heat may be or not be your tenant’s fault, but you have to handle the matter in both cases. Check the issue as quickly as you can and make an appointment with an expert if you are not capable of dealing with the problem by yourself. Warn the renter when to expect a plumber for example and pay for the service. You can figure out who is financially responsible after the specialist has done their job and things are under control again.

Pest complaints Regardless of how clean the tenant keeps your property, unfortunately pests can always invade it due to many reasons other than irregular cleaning.

If the adjacent apartments, for example, have been infested with mice or bugs, this can turn out to be a great problem.

As a decent landlord, you should react immediately to such complaints. The best thing you can do when it comes to pest control is to hire an exterminator to handle the pests in your property. It will be wise of you to schedule a second appointment after 7 – 10 days and thus

ensure the safety of both your property and tenants.

Inoperative keys If you are not a first-time landlord, you should not at all be surprised by such a complaint from your tenants.

Keep an extra set of keys at your disposal for emergency situations. Should you find that the lock is hard to open, it would be wise to change it as soon

as possible or you may have to change the whole door if somebody gets locked inside eventually. Buying an installing a new lock promptly will make things much easier for you and your tenants.

Do not forget to change the locks every time when a tenant ends your contract is an additional security measure.

Doing your best to help your tenants will always be appreciated, so do not hide when they complain about something. After all, renting a property is a kind of a job and you will have to do it well if you want to get your rent on time.

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

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

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

Advertise in

Rental Housing Journal Colorado Circulated to over 7,000 apartment owners, on-site and maintenance personnel monthly.

Call 503-221-1260 for more information 4

Rental Housing Journal Colorado · April 2016

Rental Housing Journal Colorado

By Amanda Hyland

I

Top Questions Regarding Music Licensing for Rental Properties

f you manage a property where music is played in a common area like a clubhouse, pool or fitness center, you need to be aware of copyright implications. As a copyright attorney, I have helped my property management clients comply with public broadcasting licensing requirements, which can be surprisingly complicated. Here are some of the most common questions and answers.

areas within an apartment community are not “public” for purposes of creating public performance liability. No court has ever published an opinion ruling on the question of whether community rooms, swimming pools or exercise areas are “public.” Pending resolution of these questions, most property managers choose to pay the PRO fees in order to avoid the risk of being sued and held liable for copyright infringement.

Q: What is copyright?

A: The Copyright Act gives artists, authors, composers and publishers the exclusive right to reproduce and publicly perform their work. A small business, including an apartment management company, that plays music using any type of device engages in a “public performance” under the terms of the Copyright Act. Therefore, unless the apartment complex is exempt, it needs permission to play the music. If work is reproduced or publicly performed without proper permission, the conduct may constitute copyright infringement and subject the infringer to damages.

Q: Do I need to worry about these issues if we exclusively use Pandora at our pool and in our gym? We never use the radio.

A: Pandora has partnered with Mood Media to provide rights to Pandora music such that the business owner does not need to separately obtain PRO rights. If you obtain a license from Mood Media, you should not need a separate license from a PRO for Pandora music.

Q: I got a letter from ASCAP. What is ASCAP? A: ASCAP, BMI and SESAC all are “Performing Rights Organizations,” or “PROs,” that collect copyright roy-

alty income on behalf of songwriters and music publishers when a song is publicly broadcast.

Q: I already subscribe to ASCAP, but now I got a letter from BMI? Aren’t we covered already?

A: Most songwriters are members of one of the three PROs. Accordingly, a subscription to one PRO provides a license to some, but not all, of the music that would be played on a radio. If you need one subscription, it’s likely you need all three.

Q: Is our clubhouse really “public?” Aren’t these private areas not subject to public performance requirements?

A: The copyright laws give copyright owners the right to control public (but not private) performances of copyrighted material. According to the statutory definition, a sound recording is performed publicly when played “at a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and its social acquaintances is gathered.” There are certainly arguments that common

Q: What about Spotify? Or Apple music?

A: If you have not negotiated a license specifically for business use of the music, such as through Mood Media, you probably need a license. In fact, some exemptions that pertain to radio transmissions do not apply to streaming music. Any public performance of music continued on page 6

ADVERTISE IN

Rental Housing Journal Colorado Circulated To Over 7,000 Real Estate Investors Nationwide Call 503-221-1260 for more information w w w. renta lhou sing jou rn a l .com continued on page 6 Rental Housing Journal Colorado · April 2016

5

Rental Housing Journal Colorado

Go Green or Make Green

...continued from page 1

green upgrades that will increase the value of the property itself. “Vinyl windows may be one of the best upgrades you can make,” said the appraiser “tenants like them because it saves money on heating. Plus it will add to the appraised value.” I asked her to what level solar panels, tankless water heaters, and high efficiency furnaces add to the value of real estate. Her answer was “none”. Every buyer expects appliances, furnaces, and water heaters to be in working order. It does not matter if they are high efficiency as long as they work.

Appliances and heating/cooling systems may not add value to your property at sale but may add value to your bottom line. The potential savings on owner paid utilities such as gas, electric, and water/sewer might make some “green” upgrades worth the investment. As a landlord you should consider investing in upgrades that either make or save you money. If you are paying the utility bill for units being heated during Oregon winters, putting in a high efficiency furnace might be a good long term investment for you. If you do not pay for the utilities, you will be spending money on upgrades that will only save tenants’ money unless you plan on passing that expense on to the tenant in the form of a rent increase or utility bill back.

Most small plexes are not separately metered for water and sewer and the owner is likely responsible for the water/sewer bill. If that is the case making small changes like low flow toilets, low flow shower heads, and low flow faucet aerators could save you a substantial

amount of expense on your water bill over time. Another consideration is low maintenance landscaping. Grass may look good but does come with added upkeep. Look at your annual landscape expense for the last few years. You may find that lower maintenance landscaping which consists of native plants, shrubs, and trees will save you money over time.

Think about your short and long term financial goals and ask yourself if making “green” improvements to your properties is putting more “green” into your pocket.

Chris is Small Plex Broker at SMI Commercial Real Estate, LLC . Please contact Chris if you would be interested in receiving SMI’s free bi-annual newsletter which includes the most comprehensive rent and vacancy survey in the mid-valley, the SMI Apartment Update. 503.390.6060.

Chris@smicre.com

Music Licensing For Rental Properties by using streaming services requires a license.

Q: I heard that there are certain exemptions for businesses that only play the radio. If I only play the radio, do I need to pay any PROs? A: If you are playing music from the radio, including satellite radio like SiriusXM, your property might fall into an exemption. As noted earlier, streaming music does not provide any exceptions.

Q: How do I know if I fall into the radio performance exemption?

A: Congress exempted certain types of businesses from compliance with the copyright laws, so long as certain conditions are met. Areas less than 2,000 square feet are exempt. Areas larger than that are exempt if ALL of these requirements are met: (1) No TV is larger than 55 inches, (2) there is no more than one TV in any room, (3) no more than four televisions are in the establishment, (4) no more than six speakers are in the establishment and (5) no more than four speakers are in any room.

...continued from page 5

managers who enter into licenses for multiple communities.

Q: I received a letter from BMI demanding that I pay fees. Can I ignore it?

A: Yes, but you are putting your company at risk of getting sued for copyright infringement. Although it is not necessarily likely that a lawsuit would occur, it would expose the infringer to significant risk. The law allows the copyright owners to sue for statutory damages in a range between $750 and $30,000 per individual copyrighted work infringed, i.e., for each song played. The liability to the property management company will be much greater in court than the licensing fees the PRO requested.

I have helped clients with other challenging questions as well. For example, some property owners are concerned about fee calculation on properties with high vacancy rates. Other owners are concerned about public areas that are not used. Another interesting question is what to do when the cardio equipment in the gym features individual televisions. Do these count towards the four televisions? These are all tricky questions without black and white anVALLEY, METRO, ARIZONA swers. Consult an attorney before en- APT. tering into a licensing agreement or deciding that no agreement is necessary.

ON-SITE-NW SEA

Q: I’ve decided to pay ASCAP the licensing fee. How do I know if I’m getting a fair deal? Can I negotiate with the representative for a lower rate?

A: Apartment complexes are charges fees based on the number of units in the Amanda Hyland is an attorney with Taylor community. These rates are set by the English Duma LLP in Atlanta. She counsels courts and are the same for everyone. clients on a variety of intellectual property matters, including trademark registraFor example, for 2016 ASCAP chargesAug, Feb, Apr, Jun, tions. Oct, She mayDec be reached at ahyland@ $351 annually to provide a license for taylorenglish.com. a community with less than 150 units, and $421 to provide a license for a community with 151 to 500 units. Discounts are typically offered to property

Salsbury Indu

Text 51WAYS to 44222

ON 51 Ways to Increase Your VALLEY, METRO, ARIZONA APT Rental Property Cash Salsbury Flow Indu

to receive the FREE e-book

(And 10 Ways To Ruin It)

“51 Ways to Increase Your Rental Property Cash Flow is full of great advice on how to get the most of your Jan, Mar,out May, Jul,rental Sep,properties.”

Nov,

1010 East 62nd Street, LosManagement Angeles, CA 90001-1598 –Sam J, Smart Property Phone: 1-800-624-5269 • Fax: 1-800-624-5299

September

p

Octoberp

The Industry Leader in Quality 1/8 Page 4 7/8” x 3 5/8” On-Site4

bw

Contact Us Today for a Free Catalog!

Order Factory Direct!

1010 East 62nd Street, Los Angeles, CA 90001-1598 Phone: 1-800-624-5269 • Fax: 1-800-624-5299

6

Rental Housing Journal Colorado · April 2016

Rental Housing Journal Colorado

Eco-Friendly Updates

...continued from page 1

Consider these simple, eco-friendly upgrades before the summer season begins.

Save Energy Seal and insulate: Sealing gaps and cracks will help keep money in renters’ pockets. Maintenance can start by properly insulating needed areas around windows and doors. Seal cracks and gaps with caulk, spray foam and

weather stripping. This simple project can reduce energy bills by up to 30 percent and ensure that air remains inside the units.

Upgrade thermostats: Allow residents to moderate electricity and gas usage by upgrading to programmable and / or WiFi-enabled thermostats. The thermostat can adjust to their schedule manually or automatically through a convenient app on their smartphone.

Tenants will save an average of 10 to 12 percent on heating and 15 percent on cooling bills, and you may be able to offset part of your investment by taking advantage of rebates.

Switch to LEDs: Increase savings easily by converting to LED lighting, which uses approximately 84 percent less energy than incandescent bulbs and lasts 25 times longer. Install LED lighting in interior fi xtures, pathways,

hallways and parking garages. Also consider decorative LED options for communal areas. LED technology is integrated in a variety of lightbulbs and fi xtures, allowing for an easy transition and customization for the property.

Invest in HVAC: Switch to high-efficiency, ENERGY STAR®-certified units and reduce air-conditioning energy usage by up to 50 percent. Maintain the longevity by cleaning the evaporator coils and drain channels to prevent potential clogging. These practices will reduce unnecessary wear and tear on the AC unit. Take extra steps to improve the air quality for residents by having maintenance change air filters regularly, at least every 1-3 months.

Conserve Water Tend to the bathroom: Reduce water usage by updating toilets, showerheads, faucets and additional bathroom accessories with WaterSense-labeled products, which are approximately 20 percent more efficient. Excessive water usage can be a sign of leaky plumbing, so inspect plumbing fi xtures for leaks annually to avoid water damage and potentially high out-of-pocket costs.

Update water heaters: Upgrade water heaters to newer units that are compliant with more energy efficient standards that went into effect in 2015 – some of which can have the output of a 50-gallon unit with the footprint of a 30-gallon unit. This is an excellent option when hot water is needed and space is limited. Insulate the water heater with a blanket for extra savings.

Maintain the landscaping: Maintain a green space and reduce water usage with a low-water-use landscaping or xeriscaping plan. Mulch and drought-tolerant plants, such as coneflowers, daylilies or butterfly weeds, can help reduce and / or minimize excessive watering.

Adding decorative gravel and well-aerated soil will enhance a walkway or landscape bed, while also conserving water and adding nutrients to the green space. Improve water efficiency even further with smart irrigation technology. Smart controllers can reduce annual bills as much as 15 percent by watering plants only when necessary.

By Scott Matthews, Director, Strategic Accounts, The Home Depot

Want to build your business?

Start by building your education.

Scott is responsible for managing national accounts and e-commerce while overseeing business-to-business relationships. During his 25 years at The Home Depot, he has served in a variety of roles and capacities, including Regional Pro Sales Manager, District Manager and Store Manager.

An online CE platform with easy and convenient options that fit your schedule. Enroll in your real estate continuing education courses today and save 20% with promo code RHJ20.

rhj.theceshop.com | 888.827.0777 Rental Housing Journal Colorado · April 2016

7

Rental Housing Journal Colorado

DEAR MAINTENANCE MEN: Maintenance Tools & City Inspections

By Jerry L’Ecuyer & Frank Alvarez • • • • • •

Dear Maintenance Men: I am going to university and want to use my DYI skills to supplement my income. Being that I live in a college town, there are a lot of rentals aimed at students. Since students are sometimes hard on their living quarters and move a lot, I figured there might be a maintenance market for repairs and making rooms and rental units rent ready. I don’t have a lot of money to invest in tools and want your recommendation for the minimum I might need tool wise to get started?

Bryan

Broom and dust pan Gloves Flashlight Safety glasses Step stool Cordless drill/screwdriver

This is a limited tool set used for light duty work. Try to buy quality tool. Many can be found at garage sales for a fraction of the retail price. With these tools, you will be able to change a faucet, repair drywall holes, unclog bath sink drains, caulk bathtubs, haul trash etc.

Dear Maintenance Men, I am planning major remodel work to my 4plex and need some advice. My contractor has told me not to worry and he will have everything under control but I know that city inspections can cause serious delays if we are not ready for them or do something wrong. I am not an expert or experienced in construction, what should I watch for as far as the actual inspections are concerned?

Bob-

Dear Bryan: Good thinking Bryan, you might just be on to something; students can be a bit hard on rental units! Keeping in mind that as a college student yourself, you have limited funds, so other than a cordless drill, we will leave power tools out of the picture. The majority of the repairs will involve drywall, plumbing and cleaning. Other than light bulbs, leave the electrical to the pros.

Basic Tools • Retractable utility knife • 5 in 1 paint scraper • Drywall saw • Drywall mud and tape • Bucket • Hacksaw • Claw hammer • Tape measure 25’ • Caulking gun • 6 way screwdriver • Adjustable wrench • Channelock tongue & groove pliers • Small hand snake for bathroom sinks.

• Toilet plunger

Bob, It is not often we are able to share our experience on the actual General Contracting and building side of our business so, thank you for your question.

We have listed the top reasons why professionals do not pass inspections taken from a 2015 JLC (Journal of Light Construction) survey.

Foundation: Improper reinforcement or support of rebar Wall Framing: missing fire-blocks, hold down straps etc.

Floor framing: missing anchor bolts, sheeting nails missing joist.

Trusses: bracing not installed, improperly connected to wall plate Roofing: over driving of nails in shingles, missing nails, incorrect felt Window and Door: improper flashing, inadequate fire rating, improper weather stripping Handrail: Improper height or spacing Plumbing: missing nail plates, improper pipe support Electrical: missing grounds, GFCI protection, labeling of circuits Decks: deck not built according to the plans, improper handrail installation

Dear Maintenance Men: I have been contemplating the purchase of a high pressure sprayer for my employees to use in maintaining and cleaning around my apartment buildings. Because these pressure washers produce a powerful stream of water, I am worried about my employees hurting themselves or damaging the building.

What size machine do you recommend and how safe are they to use? Should I rent one first?

Julia Dear Julia: As with any large ticket items it is always prudent to “try before you buy”.

Fortunately there are a variety of rental places to choose from which carry all sizes, makes and models.

A rental yard will often use the best and longest lasting machines. Most times these companies can provide you

with the best information on the products in regards to maintenance, wear & tear, life expectancy and performance.

In regards to workers safety, look at the operators manual for the best advice on personnel safety wear and use.

These machines can produce a very powerful jet of water capable of ripping through clothing, skin and even break small bones. You should always wear goggles, leather gloves, and steel toe leather work boots with nonskid soles.

Stucco & wood siding is especially susceptible to damage when using a power washer. Use the lowest setting and wide spray nozzle to avoid damage.

Lightly mist stucco surfaces if cleaning is your objective. Keep nozzle adjusted to spray not stream and approx. 2’ to 3’ away from the surface.

As with most things, proper training will help insure safe usage of power tools.

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

ARIZONA, ALASKA, CALIFORNIA, COLORADO, DELAWARE, FLORIDA, GEORGIA, ILLINOIS, INDIANA, KANSAS, KENTUCKY, MASSACHUSETTS, NEVADA, NEW JERSEY, NEW YORK, NORTH CAROLINA, OHIO, OREGON, PENNSYLVANIA, TEXAS, UTAH, WASHINGTON, WASHINGTON D.C., WEST VIRGINIA & MORE.

5 REASONS TO USE RENTEGRATION

1. Access - Rentegration.com is a web based, access to forms generation, archives, property management database, basic accounting, vendor ordering and other services.

2. Rental and Lease Forms - Unlimited use forms. All Rentegration.com forms are created by attorneys and/or local rental housing associations.

OR-RTG-20 Oregon

CHECK-IN/CHECK-OUT CONDIT

ION REPORT

TENANT(S): ______________________ _________________________________ 48-HOUR NOTICE ___________ ADDRESS: ______________________ OF ENTRY O ___________ OR -RTG-24 Oregon _______________UNIT: ____UNI ______________ CITY: _________________________________ __ STATE: T(S): ____________ TE: ________TENAN ZIP: ___________ _ ______ __________________ ADDRE Rating

Scale = (E)Excellent (VG) Very Good PET AGREEMENT

(G)Good

IN Out TENANT INFORMATION LIVING AREAS TENANT(S): ____________________________________________________ DATE:________ A ATE:________ KITCHEN ADDRESS: ____________________________________________________ UNIT: _________ Walls Walls CITY: _________________________________________ STATE: ATE: __________ ZIP: _________ A

In

WA-RTG-40 Washingt

__________________ SS: ____________ __________________ ____ D DATE:________ (F)Fair F)Fairr CITY: F)Fai (P)Poor (P)Poo __________________ : __________________ ____ UNIT: __________________ UNI _________ _____ STATE S TE:: __________ In Out ZIP: _________

Out

48-HOUR NOTICE OF O F ENT ENTR RY RY

BEDROOM 3

Walls alls

Pursuant to RCW 59.18.150, this is your 48 hour notice that the dwelling unit and your landlord or their premises located at agents will be (Address) __________________ ____________ WA-RTG-20 Washing ____________ ton ______ _________ ______ Floor CHECK-IN/CHECK Shelves/Drawer between the hours 2) Type _______________ Breed _______________ Size ______ Age __ eight ___ Color ____ Name ________ of -OUT CONDITION and Vaccinations: Yes____ No____ Carpet/ License Number: ______________ Disposal REPORT(Time) .

(Time) (Time ime) 3) Type _______________ Breed _______________ ________ Light Fixtures Size ______ Age __ eight ___ Color ____ Name The entry will occur DishwasherTENANT(S): ____________ Vaccinations: Yes____ No____ License Number: ______________ for the following purpose ______ ______ ADDRESS: ______ ______ ______ Doors/ : __________________ ______ __________________ Counter Tops ______ Additional Security Deposit Required:$ ______ ______ __________________ ____________ __________________ ____________ CITY: ____________ ____________ __________________ __________________ Locks ____________ UNIT: ______ Cabinets ____________ ____________ ___________ ________ AGREEMENT ____________ STATE: ______ __________________ Rating Scale = (E)Exce __ ZIP: ____________ Ceilings ______ ___ llent (VG) Very Tenant(s) enant(s) certify that the above pet(s) are the only pet(s) on the premises.

T Tenant(s) Sink _____ Good (G)Good understands that the additional pet(s) are not permitted unless the landlord gives ten (F)Fair (P)Poor Electrical Outlets IN Out Floor Windows

DESCRIPTION OF PET(S)Blinds/Drapes

Stove/Racks

Refrigerator

Rods 1) Type _______________ Breed _______________ Size ______ Age __ W Weight ___ Color ____ Name ________ Ice Trays Vaccinations: Yes____ No____ License Number: ______________

Windows entering

__________________ Blinds/Drapes

Rods

ant(s) written permission. Tenant(s) premises enant(s) agree to keep the above-listed pets in the LIVING AREAS Garbage subject to the following terms and Cans conditions: Windows

Floor

_____________________________ Light Fixtures Landlord

Floor

Electrical Outlets

______________________________ Garbage Cans Light Fixtures Tenant enant TV Antenna/Cable ______________________________ Doors/Woodwork Tenant enant Fireplace

In

KITCHEN

Walls

TV Antenna/Cable

1) The pet(s) shall be on a leash or otherwise under tenant s control when it is outside the Blinds/Drapes Windows tenant’s dwelling Fireplace unit.

Blinds/Drapes 2) Tenant(s) enant(s) shall promptly pick up all pet waste from the premises promptly.

Cleanliness 3) Tenant(s) for the conduct of their pet(s) at all times. enant(s) are responsible Rods 4) Tenant(s) enant(s) are liable for all damages caused by their pet(s).

Floor 5) Tenant(s) rental enant(s) shall pay the additional security deposit listed above and/or their BEDROOM agreement as a condition to keeping the pet(s) listed above.

1 Carpet/Vinyl/Wood BEDROOM 2 6) Tenant(s) enant(s) shall not allow their pets to cause any sort of disturbance or injury to the Walls Light Fixtures other tenants, guests, landlord or any other persons lawfully onalls the premises.

Windows report to landlord any type of damage or injury 7) Tenant(s) caused by enant(s) shall immediately Windows Doors/Woodwork their pet.

Blinds/Drapes Locks 8) This agreement is incorporated into and shall become part of Blinds/Drapes the rental agreement exe -cuted between the parties. Failure by tenant to comply with any part ofCeilings this agreement Rods shall constitute a material breach of the rental agreement. Rods

Out

BEDROOM Phone 3

Walls

MethodStove/Ra of Service cks Refrigerator

: Personal Service :

Add one additional Ice Trays

Shelves/Drawer Disposal Dishwasher Counter Tops Cabinets Sink Light Fixtures Floor Windows Essential Services

In

Doors/Woodwork

Locks

Ceilings

Electrical Outlets

Locks

Cleanliness

Electric Outlets

BEDROOM 1

Walls

Windows

8

Blinds/Drapes Plumbing

Heating

Electricity

Hot Water

from the database. The modules are all integrated and work together. For example, a customer can use the rent-roll function to identify all delinquencies, apply fees, and create eviction forms with a few simple clicks of the mouse.

BlueIndustry PMS 280/Gray PMS Partner 7543 Exclusive of:

PMS 280/PMS 7543 over color

Out

Walls Windows Post

and Mail:

day for complianceBlinds/Drapes if served by post and Rods

* mail. mail

Floor Light Fixtures Doors/Woodwork Locks Ceilings Electric Outlets Smoke Detectors

sales@rentegration.com

Ceilings ©2011 NO PORTION TION of this form may be reproduced without written permission.

on

- Owners and 5. Value - Large property management Color forand National Tenant Networkthat Logouse Rentegration.com for managers can Standards track income expense companies for each • unit, property and company. Peronly forms generation will save time and Logos are provided on the CD in all three forms: all black, reversed to white, or inproperty PMS 280 Blue/PMS 7543 Gray spot money or 4/color applications. over other methods. Mid and small fect for mid and small size managPlease see below for specific use examples. ers and independent rental owners, who size property managers and independent • No other colors are acceptable for use for the logo. rental owners can manage their entire busineither have the need or budget for larger, • No altering of the logo is allowed. If you have a special circumstance that requires something not ness at aforfraction of the cost of other softmore expensive provided on software. the CD, please call NTN NA TIO NAL HEADQUAR TER S 1.800.228.0989 assistance.

• Logos should not be put over a busy background. ware and forms.

4. Management Database - Rentegration.

BLACK com is an easy to use, database driven soft- WHITE (with 40% gray circle)

BATH ROOM

Towel Bars

Sink & Vanity

Toilet

BEDROOM 2 ©2009 PORTION of this SmokeNO Detectors Tub/Shower form may be reproduc Walls ed without

written permission.

www.Rentegration.com

503-933-6437 Rental Housing Journal Colorado · April 2016