Rental Housing Journal Colorado June 2016

Rental Housing Journal Colorado

June 2016 - Vol. 8 Issue 6

2. Look to Student Housing for Best Practices in Efficiency 4. Profiting From Clean Technology

5. Delaware Statutory Trusts 6. Dear Maintenance Men – Utilitarian

Upgrades, Smelly Sinks and Fixing Fans

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

Implementing 3 Ways SEO Can Supercharge A Utility Bill Your Student Housing Properties Back System A For Multifamily Properties s a leader in SEO and online apartment marketing, I have worked with hundreds of student housing properties and portfolios over the years. Whenever a university community calls MultiFamily Traffic, they always have the same problems for us to fix.

1. The phones in the leasing office are not ringing

By Cliff Hockley, President Bluestone & Hockley Real Estate Services

A

s utility costs increase, owners of multifamily properties have searched for a fair method to pass on these expenses. Most multifamily properties in the western states today have been built with separate electrical and gas metering so tenants expect to pay their own electric and gas bills. Landlords have traditionally paid for the water and sewer. This pattern is changing. Especially in large cities and towns, tenants have come to accept utility bill backs.

Landlords have many options to pass on these expenses: Often, landlords implement a Ratio Utility Bill Back System (RUBS).

(RUBS) is a method of calculating a resident’s utility bill based on occupancy, apartment square footage, number of beds, or a combination of factors.

Using RUBS to bill residents for water, gas and/or electricity expenses has several advantages including:

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• It requires no cash investment to get started continued on page 6

2. The property has become occupied only with students, with little or no non-student renters, the property is one step away from becoming a frat-house.

3. They are either in the throes of, or, about to enter the “crazy months” of summer season lease-up. If they don’t get units leased for the next school year now, the property manager may be looking for a job come September. continued on page 3

Basics of Student Housing

S

tudent housing can be one of the most profitable niches of buy and hold real estate around. But of course, that’s only if you know what you’re doing.

Student housing comes with two major advantages that should attract investors:

Advantage 1 Higher Rents: Students will generally pay a premium since they rent by the bedroom rather than by the house, as a family would.

Advantage 2 Almost Guaranteed Rents: By requiring a cosigner from each student’s parents, it’s highly unlikely that you will lose out on any rents or damages.

Unfortunately, like with all good things, there are also disadvantages:

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continued on page 7

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Rental Housing Journal Colorado

Look to Student Housing for Best Practices in Efficiency

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

S

tudent housing property managers face a specific dilemma when it comes to turning units: most of the tenants move at the same time. This presents a number of challenges, including strains on resources, inventory, storage, delivery and the general stress of project management, all of which make for a difficult transition between moving dates.

Because student housing property managers have to handle this process so quickly, their best practices can be viewed as a model for how to turn units efficiently. For suppliers and service providers, we can sometimes see the pain points clearly though from a perspective of outside looking in.

Having seen some of the best managers in the business tackle this unique challenge with ease, we pulled together a few things that set them apart.

Minimize external partners Outsourcing to multiple suppliers and service providers creates unnecessary time and hassle. Finding one part-

ner that can handle end-to-end project management frees you up to focus on more important responsibilities – like growing your business.

up are not to be overlooked or undervalued. These can save significant time and money when unforeseen but inevitable issues arise.

Stock Inventory As you start to proactively source products in advance, look for a single source of in-stock inventory for all the products required. Also, consider your source’s geographic footprint. If the provider has a solid number of nearby locations, staff members don’t have to travel a long way for the random missing tools or emergency repairs that inevitably pop up throughout the year.

Custom Delivery Once the product is sourced, create a custom delivery schedule. Big ticket items like appliances might need to be stored temporarily until it is time for installation. Save the hassle of outsourcing that storage to an additional vendor or facing the added expense of several different shipments before the items finally arrive. Look for a partner who can customize your delivery as part of a larger project management offering.

Fulfillment Options A good partner will offer a variety of fulfillment options, such as the ability to order a product online, on location or over the phone. This allows you to keep business moving no matter where you are or what you need. Look into your options for delivery and pick up.

Benefits like specific delivery windows or the ability to place retail orders in advance and have them ready for pick-

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Rental Housing Journal Colorado

Apartment Insurance that Offers Savings & the Right Protection

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

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

Ongoing Services Building a trusted partnership during a busy season will also help with any last minute or quick needs that may pop up in the future. Again, a provider with an extensive footprint and local, brickand-mortar resources is essential here.

Turning units is one of the most logistically challenging processes a prop-

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Rental Housing Journal Colorado · June 2016

Rental Housing Journal Colorado

3 Ways SEO Can Supercharge

...continued from page 1

Having spent most of the last decade focused on SEO and online apartment marketing, I have seen fir5st hand what it takes to solve these problems for our student housing clients. I worry about the properties that haven’t shared this focus. I feel for property managers who are working their tails off right now and are worried about how corporate will look at them come the fall. In student housing there is no margin for error and a property manager is either a hero or a zero.

If you are stressed out, below are 3 ways you can use SEO to supercharge your student property and make sure you are the valedictorian of your company.

Are you ready to move to the head of the class? Follow these 3 simple steps: Laser target your audience: Most student housing properties have no idea what the top keywords students are searching for in the area and consequently they have no clue where their property ranks on Google for those keywords.

Keywords are the words and phrases that students type into the search box of a search engine, such as Google, to find apartments that match what they are looking for. Some keywords have thousands of unique searches while others get zero. For example, “apartments near ASU” has 14 times more renters searching it than “apartments for rent near ASU”. The biggest mistake a property manager can make is trying to guess at what students are “asking Siri” or typing into Google. As reader of Rental Housing Journal, just call our office at 888-683-5885 and we will tell you the top 10 keywords for your property and where your website ranks for them at no charge.

Once you know your keywords you can go to work laser targeting the ones that have maximum search behind them. SEO can get you to the top of search engines and leave your competing communities fighting over the keywords nobody is searching for.

Load Balance the rent-roll: Many times property managers call us after their property has already become the satellite home of Phi Delta Theta and Sigma Nu. Students are great, and if you

specialize in off campus housing, they are your lifeblood. But one of the best things you can do for your property is to balance your rent-roll with non-students. This will provide you a buffer for the extreme seasonality of student housing and help keep the community sane, clean and livable for everyone.

The fastest way to achieve a healthy balance is to use the same laser targeting described above for non-students.

Returning to our ASU example; “apartments in Tempe” will broaden your exposure to non-students. If your property is an A property targeting “luxury apartments Tempe” and “Tempe luxury apartments” will bring hundreds of high-end renters calling into the leasing office month after month.

Compensate for seasonality: The final problem we always have to solve for our student properties is how to turn their crazy seasonal lease ups into smooth open enrollments filling all of the units for the upcoming year in a fraction of the time is takes the rest of the communities in the area. Although getting your property ranked for the top student and non-student keywords goes a long way. We often put our student communities on steroids during the crazy months; we manage a Google AdWords campaign for them.

AdWords (Google AdWords) is an advertising service by Google for apartments wanting to display ads on Google and its advertising network. The AdWords program enables student housing properties to set a budget for advertising and only pay when people click the ads.

Conclusion: Proper use of SEO can be the difference between the Dean’s list and the Dunce Cap. Finding the right partner to help you manage your online presence can help you become your management company’s star pupil.

Matthew Easton is EVP of MultiFamily Traffic a SEO firm dedicated to making the phones in your leasing office ring. . MultiFamily Traffic professionally manages these campaigns making the phones rings with only the most qualified renters and saving each of our properties 40% 70% on what they would have paid if they went to Google by themselves You can reach Matthew directly at 303-803-7372 or m.easton@multifamilytraffic.com

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Rental Housing Journal Colorado

Profiting from Clean Technology Electric Vehicle Charging and Energy Upgrades

By Peter Vierthaler, President of Synergy Investments

A

re you prepared for the coming age of electrical vehicles (EVs)? Have you noticed more and more Leafs and Teslas navigating the streets of Seattle? I have, and I am wondering where they will be charging as their numbers swell. Electric vehicles are a growing percentage of the vehicle mix, and renters are already making housing decisions based on the convenience of charging at home. Apartment buildings with charging stations will have a distinct advantage as EV ownership continues to grow. What’s more a new generation of charging stations that track electric usage will convert vehicle charging from a cost to a source of additional income.

Today most owners of EVs reside in single family homes where charging is easy and convenient. Many top off at local businesses, at the office or at designated charging kiosks on major highways. This will change as these options fail to meet the burgeoning demand for electricity and renter adoption increases.

Electric vehicles are becoming increasingly mainstream as their driving range improves. Nissan has sold over 100,000 Leafs worldwide, followed closely by vehicles from other top manufactures including the VW eGolf, Kia

Soul EV and the BMW i3. Even Toyota has added a charging option to its Prius Plug-In Hybrid. Of course, no discussion of EVs would be complete without the Tesla model S, with its range of over 270 miles and the announcement of the new model 3 with a sticker price of $35,000 and 375,000 vehicles pre-sold for deliveries beginning in 2017.

There are 3 levels of charging that are common for charging EVs. Level 1 is the slowest rate of charging and can result in up to 12 hours to fully charge an EV. This level which requires just 15 amp breaker and single-phase (120 volt) service. Level 2 is the most common type of charging and takes 4 to 8 hours – overnight – for a full charge.

This style of charge requires 30 amps and two-phase (240 volt) service. Level 3 charging, or “supercharging,” is not an option for most apartment buildings, as it requires three-phase (480 Volt) service – usually reserved for large commercial or industrial operations.

Superchargers are typically offered by car dealerships and highway kiosks for charging in 30 minutes or less. Most

residents will want the convenience of a Level 2 charging station or receptacle.

Charging stations are more than just a simple wall outlet. Charging stations now come with card readers that allow for easy tracking and billing of energy consumption by specific customers.

Not only is the sale of electricity a potential source of income, but tenants will pay for spaces with charging access.

Consider this relative to an alternative scenario where tenants merely run extension cords from wall plugs, unintentionally stealing electricity from the building, and putting undue strain on its electrical system. continued on page 8

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Rental Housing Journal Colorado · June 2016

Rental Housing Journal Colorado

Delaware Statutory Trusts

An Innovative 1031 Exchange Strategy

By Robert Smith and Robert Straton

F

or many years, owners of investment real estate assets have successfully used Section 1031 of the IRS code to exchange their property for “like-kind” property to defer the payment of capital gains taxes due on the sale of their original property. Most of these investors have traditionally identified and purchased up to three replacement properties in their exchange with the belief that this was their only option.

But many seniors, baby boomers and other owners of investment properties - who are at a stage in life where they are tired of dealing with the “Terrible T’s” consisting of tenants, trash and toilets, and are seeking more passive investment opportunities - are now using an innovative 1031 exchange strategy in the form of a Delaware Statutory Trust (DST).

A Delaware Statutory Trust is a separate legal entity created as a trust under the laws of Delaware in which each owner or investor has a “beneficial interest” in the DST for federal income tax purposes and is treated as owning an undivided fractional interest in the property. In 2004, the IRS released Revenue Ruling 2004-86 which allows the use of a DST to acquire real estate where the beneficial interests in the trust will be treated as direct interests

As rental income, this cash flow is also very tax advantaged. Just like your current rental income stream, much of it is tax sheltered via depreciation and interest expense.

in replacement property for purposes of 1031 exchange.

DSTs allow multiple investors (up to 2,000) to pool their funds to own one or more properties, with each investor owning a beneficial interest in the trust which, in turn, owns the underlying real estate asset(s). By owning a pro rata interest in the trust, each investor has the right to receive distributions from the operation of the trust, either from rental income, or from the eventual sale of the property. Upon thorough evaluation, the DST structure may be a viable 1031 exchange strategy for accredited real estate investors (those individuals whose net worth is in excess of $1 million not including their primary residence and/or have an annual income of $200,000).

There are many benefits of the DST structure for property owners/exchangers. These include: • Low minimum investment: DSTs typically have a minimum investment of $100,000 for 1031 exchangers and $25,000 for cash investments.

• Remote management: The DST structure takes management responsibility for the property(s) out of the hands of investors and places it into the hands of a sponsor-affiliated trustee.

• Cash distributions potential: The rental income generated from the properties are distributed on a monthly basis directly into to your bank account, if applicable.

No more chasing down dead beat tenants in the dark of the night.

• Diversification: Instead of having all your money tied up in one property exposing you to the risk incumbent in overconcentration, DSTs allow you to diversify both geographically and functionally.

Like a REIT (real estate investment trust), DSTs can own multiple properties in different geographic areas with different functions.

Ownership of apartment buildings can be mixed with retail centers, office buildings, industrial warehousing, etc. In this way, a downturn in one sector of the economy can be off-set by an uptick in another.

• Low cost ownership: Unlike a tenant-in-common (TIC) program, investors in a DST are not required to maintain any type of special purpose LLC (limited liability company) to hold their real estate.

• Non-recourse loans: DST investors are not required to execute continued on page 7

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51 Ways to Increase Your Rental Property Cash Flow (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 out of your rental properties.”

–Sam J, Smart Property Management Rental Housing Journal Colorado · June 2016

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Rental Housing Journal Colorado

Implementing a Utility Bill Back System • It enables owners to recoup any portion of the overall billings • It can be implemented easily and quickly • It immediately improves cash flow Some landlords and management companies choose an amount of money, say $40 per month per apartment and use that as an estimate of water and sewage use to pass on to tenants. This approach typically keeps the rate lower to the tenants but can short change the landlords.

Many landlords take the bills and divide all of the water costs by the number of units minus an estimate for common area usage such as landscape irrigation and laundry room use. The quotient is passed on as the expense. They pass on the sewer expense using the same ratio.

The challenge with this approach is that many tenants complain about unequal water use, where some tenants use more water than others.

Landlords can implement a RUBS system themselves or use a property management company to handle the process for them. Many existing apartments have a utility configuration that does not support the installation of sub-metering equipment. For example, properties that heat water and supply water through a centralized boiler system such as high-rise apartment complexes and older condominium units can have multiple pipes supplying water to a single unit. It is cost prohibitive to install several water meters to measure total water usage for each residence. In these cases, RUBS presents an excellent alternative for the owner or association to recover appropriate utility costs and increase cash flow at the property. When landlords use their property management company or a utility management company to manage the process for them , the property managers and/or utility management com-

...continued from page 1

panies will tack on an extra processing charge to the bill, which typically has to be paid by the landlord. Laws in every state are different regarding the costs of utility bill backs.

Other options Water sub-meters can be installed when a building is constructed or a sub-meter can be installed on the hot water side of the hot water heater within an existing structure when each unit has its own hot water heater. Meters can be read electronically or via a meter reader (by either a meter reading company, an on-site manager, or an on-site maintenance tech).

If the meters are read electronically, they are downloaded to a system in the manager’s office. From there, the information is transferred via phone line transmitters and receivers back to the multifamily utility company headquarters.

Individual meter readings are then imported into a billing system which creates and sends individual utility bills to the tenants. A monthly utility reimbursement check is then sent to the owner, manager, association manager or whoever is in charge of receiving payments. If the tenants don’t pay the utility billings it is up to the property manager to make sure the water bills are collected.

To implement this system, the landlord needs to be prepared to advance the capital expenses to install the system. This system offers more accuracy on about amount of water and sewer that is being used.

Usually, garbage bills can be billed back to tenants via RUBS as well. If each tenant has an individual garbage can, you can usually bill back by the can.

The key is to bill back a fair amount.

Oregon Laws In 2013, laws were passed to address utility and service sub-meter and RUBS charges at multifamily properties. The current language is provided below for reference. This clarifies how RUBS can be used in the state of Oregon.

According to OR90.536: Charges for utilities or services measured by sub-meter (1) If a written rental agreement so provides, a landlord using the sub-meter billing method described in ORS 90.532 (Billing methods for utility or service charges) (1)(c) may require a tenant to pay to the landlord a utility or service charge that has been billed by a utility or service provider to the landlord for utility or service provided directly to the tenants space as measured by a sub-meter.

(2) A utility or service charge to be assessed to a tenant under this section may consist of: (a) The cost of the utility or service provided to the tenants space and under the tenants control, as measured by the sub-meter, at a rate no greater than the average rate billed to the landlord by the utility or service provider, not including any base or service charge; (b) The cost of any sewer service for wastewater as a percentage of the tenants water charge as measured by a sub-meter, if the utility or service provider charges the landlord for sewer service as a percentage of water provided; (c) A pro rata portion of the cost of sewer service for storm water and wastewater if the utility or service provider does not charge the landlord for sewer service as a percentage of water provided; (d) A pro rata portion of costs to provide a utility or service to a common area;

(e) A pro rata portion of any base or service charge billed to the landlord by the utility or service provider, including but not limited to any tax passed through by the provider; and (f) A pro rata portion of the cost to read water meters and to bill tenants for water if: (A) A third party service reads the meters and bills tenants for the landlord; and (B) The landlord allows the tenants to inspect the third party’s billing records as provided by ORS 90.538 (Tenant inspection of utility billing records).

(3) Except as provided in subsection (2) of this section, the landlord may not bill or collect more money from tenants for utilities or services than the utility or service provider charges the landlord. A utility or service charge to be assessed to a tenant under this section may not include any additional charge, including any costs of the landlord, for the installation or maintenance of the utility or service system or any profit for the landlord. [2005 c.619 §8; 2009 c.305 §3; 2011 c.503 §8]

Summary Utility bill back systems give landlords the ability to improve their bottom line. Using RUBS, landlords can install a utility bill back system without advancing any capital expenses. On the other hand, the amounts billed back are only close estimates. The electronic bill back system is more accurate. Billing back for a proportionate share of garbage also makes sense for landlords.

The bottom line is that it is definitely worth it for a landlord to bill back utilities. Not only is the bill passed on to the tenants, but more importantly, the tenants will pay more attention to the utility use which reduces costs and helps the environment.

DEAR MAINTENANCE MEN: Utilitarian Upgrades, Smelly sinks and Fixing Fans

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men: I am a rehab project on a building that consists of all two bedroom one and three quarter baths. The three-quarter bathrooms have a sink, toilet and bathtub, but no shower. I would like to convert them to a full bath by adding a shower. How do I do it?

Bill Dear Bill: This is a great upgrade to any unit.

There are a number of ways to go depending on your budget and do-ityourself skills. The most economical and simple solution to adding a shower to a bathtub is to install a diverter spout that includes a 1 half-inch hand shower fitting. The hand shower can be sold separately or as a kit with the spout.

Connect the hand shower hose to the spout and hang the showerhead on the wall. Other than installing waterproof shower walls, you are ready to go.

6

The second option is a bit more involved, but a much better solution.

Because most tub only bathroom usually have no wall tile or “shower wall” material, gaining access to your existing valve & plumbing system should be easy. Let’s begin with the items you will need to start your project. (If you have an existing two-valve system, now is the time to go to a modern single valve setup.) The easiest apartment application valve to buy is either a Moen or Mix-it valve. There are many other brands to buy depending on your budget. The kit will come with a valve, spout, shower arm and head. You will still need to purchase a half inch copper pipe at least 56 to 59 inches long, a 90 degree brass elbow, slip to thread with ears to attach it to the wall stud at the shower head.

Be sure you have a full propane torch with solder.

Now you are ready to install. Don’t forget to turn off the water. Since you will be installing new shower walls, don’t worry about damaging drywall.

Cut a hole in the drywall stud to stud, 12 inches high at the existing valve level. Then cut a 4 inch wide strip of drywall 59 inches up from the location of the existing valves. Now that everything is exposed, remove the old valves, by cutting or use the propane torch to melt the solder joints. Install the new valve in place, cut a half inch copper riser between 56 and 59 inches and solder to the valve. Solder the brass 90-degree elbow to the pipe and screw the elbow to a cross stud. If you could not find an elbow with ears, use plumbers tape or a pipe hanger to secure the elbow in place. Test your plumbing installation for leaks.

Replace existing drywall around the tub with green board drywall or cement board. Install shower wall material of

your choice. We recommend a onepiece wrap around shower wall system available at your local home center.

Dear Maintenance Men: My rental unit has a kitchen with a double sink. The drains smell very bad. I have tried running lemon slices through the garbage disposal, it works for a short time, but the smell comes back. What steps do you recommend for resolving this problem?

Barbra Dear Barbra: The smell may come from a number of places. First, use a small toilet type bush with soap and scrub the inside of the garbage disposal. This will remove any slime build-up. (For safety reasons, shut the garbage disposal off at the breaker or pull the plug.) Next remove continued on page 8

Rental Housing Journal Colorado · June 2016

Rental Housing Journal Colorado

Basics of Student Housing

Delaware Statutory Trust

...continued from page 1

...continued from page 5

any loan guarantees or indemnities, given their purely passive relationship to the DST and its real estate. Therefore, if there is debt on the property(s), investor risk is limited to invested equity. Lenders have no recourse to investors other assets.

Disadvantage 1 Annual Turnover: Unlike with other rentals, most students will leave every year requiring you to release the unit annually.

Disadvantage 2 College Students Often Engage in College Student-esque Behavior: While the cosigners you get should protect you from losses, college students have a way of damaging pretty much anything inside and outside of a house or apartment.

The most important thing to look for in student housing is that the market isn’t oversaturated. Many developers have been building around college campuses lately and are thereby driving down rents and driving up vacancy.

You don’t want to come late to the party (that, by the way, college students will almost certainly be throwing).

Furthermore, it’s important to make sure that the university you’re looking to invest around isn’t a so-called “commuter school.” Many community colleges and the like could be called such because students often don’t live particularly close to campus. Investments around such schools can work out great, but they don’t drive the kind of premi-

um rents like four year universities do.

In other words, you need to know what you are getting into.

Around more established universities with students looking for nearby, off-campus housing, there will be several zones, for lack of a better word. So for example, Zone 1 is very close to the campus and students pay a large premium. Zone 2 is approximately five to fifteen blocks from campus and perhaps only on one or two sides of the university and students will pay a decent premium. Beyond that is hit or miss.

We have found that the best bang for your buck can be found in properties that lie around Zone 2, since Zone 1 will typically be bid up by more institutional investors. You will need to be ready to deal with multiple turnovers that all happen at about the same time.

However, if you can handle such turnover, there are great profits to be made in student housing.

Andrew Syrios is a real estate investor and property manager living in Kansas City.

He is a partner in Stewardship Properties, which owns properties in Oregon, Texas, Kansas and Missouri.

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

• Liability protection: The DST “wrapper” shields the exchanger/ investor from any liabilities with respect to the property. Ambulance chasing lawyers and their “slip and fall” clients will have to tap somewhere else.

Of course these benefits say nothing of the leisure time exchanging into Delaware Statutory Trust properties may provide you. Property management can be a full time job. This unending round of responsibility precludes many other enjoyable activities. It’s hard to travel and see the world, visit your grandkids, or just plain relax, when you are tied to your telephone, tenants, and properties.

In our past, present, and future zero interest rate environment, investing in a multi-property DST portfolio may also be a smart strategy for cash investors without a property to exchange.

Unlike other passive, fixed-income investments, real estate may still provide a livable yield. As rental income, this potential money stream is also very tax advantaged. It can also position the investor to do a 1031 exchange upon the potential profitable sale of their real estate and avoid paying capital gains tax.

In summary, 1031 exchanging into a DST portfolio which holds multiple income producing properties makes

great sense for real estate owners who no longer want to shoulder the burden of active management. You’re not going to live forever, so you might as well start enjoying it now. Let someone else change the light bulbs and collect the rent.

Robert Smith and Robert Straton are with Peregrine Private Capital, an advisory firm based in Lake Oswego, OR. They can be contacted at 503-241-4949 or rs@peregrineprivatecapital.com.

The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments.

Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation.

There are risks associated with investing in real estate and Delaware Statutory Trust (DST) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Potential cash flows/ returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee profits or guarantee protection against losses.

Securities offered through Concorde Investment Services (CIS), LLC, member FINRA/SIPC. Peregrine Private Capital Corporation is independent of CIS.

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

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Profiting From Clean Technology Also useful are the dual usage options that smart chargers provide.

Multiple cars can be hooked up to a single charger which determines the optimal charging parameters to make the most of a building’s limited electrical capacity.

Managing your building’s electrical systems is, of course, an important part of planning for a coming wave of tenants with EVs. Apartment owners may have had difficulty finding the additional electric capacity to install chargers, but common area and laundry room energy retrofits (in conjunction with switching gear) are changing that equation.

Even if your circuits are already being taxed by current usage you may have the capacity to provide EV charging and without even knowing it. New technology in lighting and laundry machines may provide some or all of the added capacity you need. Common area and parking lot lighting retrofits can reduce electric consumption by up to 80%.

LED technology provides the same quality of lighting at a small fraction of the cost of incandescent. New front load washers and dryers reduce your electric cost as well. The new washing machines wash at a hotter temperature and spin a larger percent of the water out of your clothes, allowing for a much shorter drying time. Many of these upgrades can be made at little or no cost and can provide you with the additional capacity for EV charging that you need.

The process for installing EV charging stations is fairly straightforward. An electrician can determine the

...continued from page 4

capacity of your electrical panel and the cost of running conduit to the designated parking spaces. A lighting retrofit – which makes sense whether or not you provide car charging – is a great second step to reduce electrical load and free up electrical. This will then determine whether you have capacity for chargers and how many vehicles they can accommodate. The third step is to contact charging station companies to get bids on the chargers themselves.

Charging stations come in a variety of flavors. I recommend charging stations that have card readers for electricity usage reimbursement and have the ability for dual car charging. Some companies offer a lease and other require you to purchase the charger.

Now you might be asking, what is in it for me? How do I benefit by providing EV charging to my building. The first benefit is customer retention. Residents with charging ability are far less likely to leave any time soon. The second is income. EV drivers will pay you more for the ability to charge their car, up to $75 per month. That is the price for the convenience of charging at home.

Dear Maintenance Men

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the drain trap and clean out any sludge.

Many times the horizontal pipe between the trap and the wall may have hard deposits coating the inside of the pipe. The deposits will collect food and debris that may slow the drains considerably. If you have a dishwasher, check the drain line leading from the air-gap or dishwasher to the garbage disposal. It may be full of sludge that will cause a smell to come through the airgap located next to the faucet. Clean or replace any pipes with deposits or sludge. Check both drain lines for the above problems. Now if you wish, run the garbage disposal with a few slices of lemon and it should smell good and stay that way. Once in a while, throw some ice cubes in the garbage disposal unit to help scrape away any debris.

Dear Maintenance Men: I have a problem with moisture buildup and wall damage in my apartment bathrooms. The bathrooms do not have windows as they are constructed away from any exterior walls. They do have vent fans, but they don’t seem to do the job. How can I solve this problem?

Bill

recommend using at least a 120-CFM fan. And equally important, many bathrooms have two wall switches; one for the light and the other for the fan.

If this is the case, we recommend combining the two switches into one. That way when the resident switches on the light the fan will come on automatically. We find most residents will not turn on the fan if it has its own switch.

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

Dear Bill: First things to check is whether your vent fans are working and not clogged with lint or dust. If the fan is operating properly, check the CFM or Cubic Feet per minute of air movement. The minimum number should be 50 CFM. If the bathroom is getting more than the average amount of use, you may want to replace the existing fan with one that has a higher CFM rating. We

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