Rental Housing Journal Colorado
January 2017 - Vol. 9 Issue 1
2. How to Find and Choose the Best Mortgage Lender for You
5. Dear Maintenance Men - Slab Leaks, Safety Bars and Shaky Ovens
3. Home Values Rise at Fastest Pace Since 2006
6. The How and Why of Becoming a Really Likable Property Manager
www.rentalhousingjournal.com • Professional Publishing, Inc
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Home Sales Expected to Expand Modestly in 2017 as Affordability Pressures Temper Buyer Enthusiasm
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xisting-home sales are forecast to muster only a small gain in 2017 because of increasing mortgage rates and shrinking consumer confidence that now is a good time to buy a home, according to new consumer survey findings and a 2017 housing forecast update from the National Association of Realtors®. In NAR's fourth quarter Housing Opportunities and Market Experience (HOME) survey1, respondents were asked about their confidence in the U.S. economy and their housing expectations in 2017. With the calendar turning to a new year in a couple weeks, the survey found that a majority of households believes now is a good time to buy a home. However, confidence has retreated by a considerable amount amongst renters.
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Your Residents Can’t Recycle If They Don’t Know How 5 tips to improve your property’s recycling education in 2017
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rom milk jugs to cardboard boxes, Portland residents want to recycle. It’s not surprising our city has one of the highest recycling rates in the nation, with an impressive recovery rate of over 70 percent. Recycling doesn’t just happen. Multifamily property managers are critical to our success. Informed residents and an easy-to-use collection system are key to making your garbage and recycling program a success. Here are some tips from the City of Portland to help you plan your property’s recycling education for 2017. 1) Walk new residents through the system: Include the garbage and recycling collection areas with the move-in tour and show them where to put recyclables.
2) We have free brochures and refrigerator magnets to include in leaseup packets. Order now and we’ll keep you stocked! 3) Consider a recycling lease addendum: Encourage new residents to manage recycling correctly while discouraging noncompliant behaviors. We offer template language for recycling lease addendums. 4) Set clear and consistent expectations about cardboard boxes, foam peanuts and other packaging materials: Instruct residents to break down cardboard boxes for recycling and provide information about where to drop-off packing continued on page 8
More than One in 10 Homeowners Underwater as Housing Market Nears Full Recovery
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ven as home values approach the highest levels reached during the housing bubble, 11 percent of homeowners with a mortgage are underwater, according to the third quarter Zillow® Negative Equity Reporti The share of homeowners who owe more on their mortgages than their homes are worth has dropped by nearly two-thirds since the housing bubble burst four years ago. Nationally 5.3 million homeowners were in negative equity in the third quarter, meaning they owe more than their homes are worth. At the peak in Q1 2012, 15.7 million homeowners were underwater on their mortgages. continued on page 7
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Real Estate Opportunities in Investing (ROI) Finding Investing Success in Today's Housing Market
Rental Housing Journal Colorado
How to Find and Choose the Best Mortgage Lender for You
By Jenny Johnson. Eleete Real Estate
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hink about finding a mortgage lender the same way you think about finding a home to buy: There may be thousands of different possibilities and you may have to do some legwork, but in the end there’s going to be one that’s exactly right for you. Most consumers only deal with mortgage lenders a few times in their lives, so the amount of information to digest can feel overwhelming. Here’s a guide to understanding the language and choosing a direction.
Fixed or adjustable? A mortgage loan is either fixed-rate, adjustablerate or a hybrid. Fixed-rate loans are exactly that – the interest rate you pay over the life of the loan remains fixed, and your mortgage payment never changes. Adjustable-rate mortgages typically adjust themselves to the financial landscape on an annual basis and rise or fall accordingly. And hybrid loans are fixed-rate for a number of years before changing to an adjustable rate. How long are you planning to stay in the home? If the answer is under 5 years, an adjustable loan may be right for you, because the payments are typically lower in the first years. If you plan to make this your forever home, the
If you contact various lenders, remember that each of them wants to “sell” you their business, so you need to ask questions and compare the answers just as you would in any other large purchase. Take good notes and ask the lenders to email or fax you Good Faith Estimates (GFE) and Truth-In-Lending (TIL) statements. When you have several candidates, interview them just as you would if they were applying for a job – because they are. They will be able to take your financial information and help you understand how much of a mortgage you can qualify for. Be sure you understand the following from each lender or broker: fixed-rate loan is more predictable and may be the better choice for you.
Conventional vs. government-insured? Conventional loans are private loans, and include those you would get from a bank, a credit union, a mortgage lender or an internet lender. Governmentinsured loans are guaranteed by the federal government, which includes Federal Housing Administration (FHA) and Veterans Administration (VA) loans.
FHA loans can be attractive because both your credit score and the down payments can be lower; conventional loans can be attractive because with a highenough down payment, you can avoid mortgage insurance altogether. This and a lower interest rate will make your monthly payments lower.
Direct lender or mortgage broker? You can deal one-on-one with a single mortgage lender, such as a bank, credit union or a private company; they are called direct lenders because you are working with them face to face. If you are approaching several direct lenders, you must apply to each one individually. Or you can use a mortgage broker, a person who acts as a liaison between you and several possible lenders. In the case of the direct lender, you will have to do more research ahead of time to select the company. In the case of the mortgage broker, he or she does some of that work for you, getting quotes from a variety of different lenders. Interest rates and loan fees should be approximately the same with both approaches, though you may get a break if you have other accounts with your direct lender. Mortgage brokers charge more because they are acting as an intermediary, but that may be worth it for the comparison work they do. Either way, it is definitely to your benefit to get several quotes. A 2012 Stanford University study that researched FHA loans made in a six-week period showed that buyers who shopped for mortgages of $100,000 or $200,000 principal lost at least $1,000 and as much as $2,600 if they gathered only two quotes rather than four. Gathering information With so many choices, where does a person start? The same place you start when you are seeking a professional in any business: word of mouth. Do you have friends or relatives who have recently purchased homes? Ask about their lenders and their experiences. Your accountant, financial adviser or real estate agent can be another source of referrals. Spend some time on the internet looking through different deals from different lenders, just to familiarize yourself with the playing field.
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• What is the best interest rate can I get with your loan products, and when can I lock that rate in? • Am I eligible for any special programs? (Veterans or first-time home-buyers, for instance.) • How much down payment is required to get your best rate? • What will my monthly payments be with those terms? • What fees will I have to pay? (These are commonly called “points,” which you pay at closing. For every “point” that you pay, the lender will decrease your interest rate by 1 percent.) • Are there prepayment penalties? You don’t want to be caught paying a penalty fee if you send in an extra mortgage payment once or twice a year. • Will I need mortgage insurance, and how much will that add to my payment? This information will give you a great basis on which to choose a lender. And you can check license information for the financial services provider you are considering at NLMS Consumer Access, which will also tell you how long the loan officer has been in business and whether he or she has been the subject of any selfreportedstate disciplinary proceedings. Jenny Johnson is Senior Real Estate Broker at Eleete Real Estate in Portland, Or. She has been a top producer representing buyers and sellers or homes and investment properties for over 14 years. Jenny.johnson@eleetere.com | 503-2673412 | www.eleetere.com Free download: The Definitive Guide To Real Estate In Portland, OR by Jenny Johnson https://rentalhousingjournal.leadpages. co/the-definitive-guide/
Rental Housing Journal Colorado · January 2017
Rental Housing Journal Colorado
Home Values Rise at Fastest Pace Since 2006 The median home value in the U.S. is now $192,500, according to Zillow's November Real Estate Market Report, just 2 percent shy of 2007 peak.
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n November, national home values rose at their fastest annual pace since 2006, near the peak of the housing bubble. The Zillow® Home Value Indexi (ZHVI) is $192,500, 2 percent shy of the records set in 2007, according to the November Zillow Real Estate Market Reportsii. Rents, which were the big story of 2016 as they rose at a record pace, have slowed considerably to a 1.5 percent annual appreciation rate; this rate is expected to continue into 2017. The median monthly rent payment in the U.S. is now $1,403.
Metropolitan Area United States New York, NY Los Angeles-Long Beach-Anaheim, CA Chicago, IL Dallas-Fort Worth, TX Philadelphia, PA Houston, TX Washington, DC Miami-Fort Lauderdale, FL Atlanta, GA Boston, MA San Francisco, CA Detroit, MI Riverside, CA Phoenix, AZ Seattle, WA Minneapolis-St Paul, MN San Diego, CA St. Louis, MO Tampa, FL Baltimore, MD Denver, CO Pittsburgh, PA Portland, OR Charlotte, NC Sacramento, CA San Antonio, TX Orlando, FL Cincinnati, OH Cleveland, OH Kansas City, MO Las Vegas, NV Columbus, OH Indianapolis, IN San Jose, CA Austin, TX Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the
Home values were 6.5 percent higher this November than last. Strong growth is especially evident in a handful of new powerhouse markets, including Seattle, Denver, Portland and Dallas, whose strong job markets attracted new home buyers over the last year. At their fastest pace, home values across the country were appreciating about 11 percent year-over-year. When the bubble burst, home values plummeted, falling 7.4 percent year-overyear during the depths of the crisis, and then began a steady recovery in 2012. "Home value growth continues to be strong, supported by solid buyer de-
Zillow Home Value Index (ZHVI) $192,500 $400,500 $590,000 $203,400 $200,400 $213,800 $176,000 $378,000 $245,200 $172,300 $408,400 $824,600 $134,400 $318,200 $228,900 $412,600 $235,000 $526,500 $147,800 $177,200 $256,600 $352,800 $133,400 $351,800 $166,600 $350,200 $156,200 $198,100 $147,800 $130,600 $151,900 $213,700 $160,400 $133,600 $961,600 $259,800
Year-over- Year ZHVI Change 6.5% 6.0% 6.3% 5.0% 12.0% 4.1% 7.0% 2.9% 8.8% 7.5% 6.1% 4.9% 9.4% 6.7% 6.9% 12.2% 6.6% 6.1% 6.8% 11.2% 3.6% 9.7% 4.8% 14.1% 7.1% 7.5% 6.5% 9.9% 5.6% 5.2% 5.9% 9.6% 3.9% 1.5% 4.3% 8.4%
quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle. Zillow and Zestimate are registered trade-
Rental Housing Journal Colorado · January 2017
mand and still limited for-sale inventory in many markets across the country," said Zillow Chief Economist Dr. Svenja Gudell. "Conditions today are very different than the ones we saw back in 2006, which was the last time we saw home values rising this fast. Rampant real estate speculation and loose mortgage credit have been replaced by the sound economic fundamentals we are seeing now." Portland, Seattle and Dallas reported the highest year-over-year home value appreciation among the 35 largest U.S. metros. Portland home values rose 14 percent to a median value of $351,800. Both Seattle and Dallas home values
Zillow Rent Index (ZRI) $1,403 $2,389 $2,616 $1,637 $1,556 $1,574 $1,562 $2,123 $1,879 $1,329 $2,322 $3,385 $1,169 $1,742 $1,301 $2,095 $1,552 $2,436 $1,123 $1,336 $1,729 $2,006 $1,081 $1,802 $1,244 $1,707 $1,324 $1,383 $1,243 $1,145 $1,241 $1,243 $1,293 $1,188 $3,486 $1,701
Year-over- Year ZRI Change 1.5% 0.5% 5.2% -0.1% 4.0% 1.0% -1.1% 0.6% 3.1% 4.3% 3.5% 1.8% 3.2% 3.1% 4.1% 8.8% 3.3% 5.2% 0.1% 3.2% 0.7% 2.8% -1.4% 7.1% 1.8% 6.8% 1.6% 3.1% 1.5% 1.6% 3.8% 2.4% 1.7% 0.3% 1.9% 0.9%
marks of Zillow, Inc. The Zillow Home Value Index (ZHVI) is the median estimated home value for a given geographic area on a given day and includes the value of all single-family residences, condominiums and cooperatives, regardless of whether they sold within a given period. It is expressed in dollars, and seasonally adjusted. i
The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real Estate Research. For more information, visit www. ii
rose 12 percent since last November. Seattle reported the fastest rent appreciation of the 35 largest U.S. metros for the sixth month in a row, up almost 9 percent annually. Portland and Sacramento follow Seattle, with rents up about 7 percent. Inventory still remains an issue for home buyers across the country. There are 6 percent fewer homes to choose from than a year ago, with Boston, Indianapolis and Kansas City reporting the greatest drop. In Boston, there are 26 percent fewer homes to choose from than a year ago, and 21 percent fewer in Indianapolis and Kansas City.
Year-over-Year Inventory Change -5.9% -10.4% -7.1% -10.2% -13.9% -12.3% 0.6% -18.8% 11.8% -5.7% -25.5% -5.0% -17.2% -8.1% -1.4% -6.5% -18.2% 2.8% -14.5% -10.7% -16.0% 4.0% 0.3% -3.6% -10.4% -6.3% 12.8% -11.1% -16.3% -10.8% -20.5% 26.0% -18.9% -20.7% -14.4% 11.9%
zillow.com/research/. The data in Zillow's Real Estate Market Reports are aggregated from public sources by a number of data providers for 928 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data are typically recorded in each county and publicly available through a county recorder's office. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com/local-info/ and www.zillow.com/research/data. http://www.zillow.com
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Rental Housing Journal Colorado
Home Sales Expected to Expand ...continued from page 1 Fifty-seven percent of renters said now is a good time to buy, which is down from 60 percent in September and 68 percent a year ago. Seventy-eight percent of homeowners (unchanged from September; 82 percent in December 2015) think now is a good time to make a home purchase. Lawrence Yun, NAR chief economist, says declining affordability in many parts of the country is behind the weakening morale. "Rents and home prices outpacing incomes and scant supply in the affordable price range has been a prominent headwind for many prospective buyers this year," he said. "Making matters worse, the unwelcoming reality of higher mortgage rates since the election is likely further holding back confidence. Younger households, renters and those living in the costlier West region – where prices have soared in recent months – are the least optimistic about buying." Even with this year's slow dip in buyer enthusiasm, existing-sales are still expected to close 2016 3.3 percent higher than 2015 and reach around 5.42 million – the best year since 2006 (6.47 million). In 2017, sales are forecast to grow roughly 2 percent to around 5.52 million. The national median existing-home price is expected to rise to around 5 percent this year and 4 percent in 2017. By the end of next year, mortgage rates are expected to reach around 4.6 percent, and the Federal Reserve is expected to raise the Fed funds rate a few more times to 1.25 percent. "Although the economy is expected to continue to expand with around 2
million net new job creations, existing home sales are expected to see little expansion next year because of affordability tensions from rising mortgage rates and prices continuing to outpace income growth," said Yun. Despite these headwinds, Yun is hopeful that the continued job growth, any economic stimulus from the new administration and more millennials reaching their prime buying years will keep demand for the most part on solid footing. The key will ultimately come down to what the housing market desperately needs: more inventory. However, more expensive mortgage rates could also slow the pace of homeowners listing their home for sale. "Some would-be sellers may be reluctant to move up or trade down – es-
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pecially if they've refinanced in recent years," said Yun. "That's why it's extremely necessary for homebuilders to step-up their production of homes catered to buyers in the affordable price range. Otherwise the nation's low homeownership rate will struggle to shift higher in 2017." NAR President William E. Brown, a Realtor® from Alamo, California, says buyers searching for available homes in a tight market next year can get ahead by working with a Realtor® who's very familiar with the buyers' targeted area. "A Realtor® will have their pulse on current market conditions and can ensure a buyer is only searching for and making offers on a home that fits within the budget."
Brighter enthusiasm about the direction of the economy, personal financial outlook mostly unchanged This quarter's survey found that another full year of robust job gains and lower unemployment is finally translating into stronger confidence about the economy. The share of households believing the economy is improving has increased quite a bit (to 54 percent) since the third quarter (48 percent), and is currently at its highest share since the survey's debut a year ago. The most optimistic about the economy are those under the age of 44, living in urban areas and with higher incomes. The HOME survey's monthly Personal Financial Outlook Index,2 showing respondents' confidence that their financial situation will be better in six months, has picked up a tad (to 59.8 in December) since September (58.6) and is mostly in line with the sentiment from respondents a year ago (59.6). In 2016, the index was its highest in May (61.1). Roughly two-thirds think it's a good time to sell, most expect prices to hold steady or increase With price growth holding steady in most of the country since the summer, roughly the same amount of homeowners (62 percent) believe it is a good time to sell compared to the third quarter of this year (63 percent). As has been the case all year, respondents in the West continue to be the most likely to think now is a good time to sell, while also being the least likely to think it's a good time to buy. Mirroring current conditions in most markets and unchanged from last quarter, nearly all of those surveyed (91
percent) believe that prices will stay the same or rise in their community in the next six months. Respondents living in suburban areas, renters and those from the West are most likely to believe prices will go up in their communities. About NAR's HOME survey In October through early December 2016, a sample of U.S. households was surveyed via random-digit dial, including half via cell phones and the other half via land lines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report and a total of 2,776 household responses are represented. The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing over 1.2 million members involved in all aspects of the residential and commercial real estate industries. 1NAR's Housing Opportunities and Market Experience (HOME) survey tracks topical real estate trends, including current renters and homeowners' views and aspirations regarding homeownership, whether or not it's a good time to buy or sell a home, and expectations and experiences in the mortgage market. New questions are added to the survey each quarter to reflect timely topics impacting real estate. HOME survey data is collected on a monthly basis and will be reported each quarter. New questions will be added to the survey each quarter to reflect timely topics impacting the real estate marketplace. The next release is scheduled for Wednesday, March 15, 2017 at 10:00 a.m. ET. 2Index ranges between 0 and 100: 0 = all respondents believe their personal financial situation will be worse in 6 months; 50 = all respondents believe their personal financial situation will be about the same in 6 months; 100 = all respondents believe their personal situation will be better in 6 mon ths. Information about NAR is available at www.nar.realtor. This and other news releases are posted in the "News, Blogs and Videos" tab on the website. Some statistical data in this release, as well as other tables and surveys, are posted in the "Research and Statistics" tab. Follow NAR Media's Newsline blog at http:// narnewsline.blogs.realtor.org and Twitter at @NARMedia. SOURCE National Association of Realtors Related Links http://www.realtor.org
Rental Housing Journal Colorado · January 2017
Rental Housing Journal Colorado
DEAR MAINTENANCE MEN: Slab Leaks, Safety Bars and Shaky Ovens
By Jerry L’Ecuyer & Frank Alvarez
Dear Maintenance Men: Slab leaks! They are the bane of my existence! Turns out the problem is the hot water recirculation line. I’m trying to decide if I should fix it again or just abandon the line and remove the circulation pump and be done with it. What harm can it do? Do I really need a hot water return line for my residential units?
John
Dear John: Unfortunately, dealing with slab leaks is almost a “rite of passage” for property owners or managers. First, let us demystify what a return line really is. Simply, it is a dedicated hot water line which loops from the water heater to the furthest unit, and back to the cold water heater inlet. Its purpose is to maintain hot water at each tap by assistance from the circulation pump. The circulation pump constantly delivers hot water through the return line or loop. A slab leak is a water line break under the concrete floor of a building. A water pipe under a concrete floor can leak for a long time before it is noticed or it can bubble up through cracks in the concrete depending on soil conditions. The most reported type of slab leak is on the hot water side of the plumbing and along the return line of the recirculating system. The reason for the return line being the most popular leak point is because the water never stops moving and it wears away and corrodes the pipe. We do not recommend canceling the return line and removing the pump. This will cause other unintended consequence such as a slow delivery of hot water to many of the units in the building. The lack of a pump will waste water while the residents wait for hot water to come out of the tap which in turn will make the water heater work harder. Not only will this annoy the residents, it will cause the water heating bill to go up. As for repair of the return line, there are a number of solutions. If the return line has chronic leaks, it is best to run a new line outside the slab. The old return is canceled at the pump and the furthest plumbing fixture in the building and the new line installed and routed back to the water heater. Another solution after the pipe is repaired is to limit the incoming water pressure with a pressure regulator and put a timer on the recirculation pump to operate only at peak demand times such as morning and evening. Installing a water softener system will also help keep both the hot water heater and water lines from corroding as quickly. Dear Maintenance Men: I am installing safety grab bars in all of my showers & bathtubs and I need some guidance on the installation procedure. What do I need to know to install these bars correctly?
David
Dear David: The use of handrails and safety bars help provide stability and extra support required by the elderly and people with limited mobility. Approved ADA grab bars are available in a wide variety of configurations, colors and finishes. The most common is the stainless steel or chrome finish. The grab-bars must be able to support a dead weight pull of 250 pounds. The preferred method is to bolt directly into the wall studs. This is not always practical, as the stud might not line up where they are needed. Grab-bars can be mounted vertically or at an angle to match wall stud spacing. If finding studs becomes a problem, alternate installation methods are available. If your walls are in good condition, you may use large toggle bolts or if you have access to the backside of the shower or bath walls, insert a backer plate or add a new stud for an anchor point. Safety grab bars can be located at any local hardware store. It is advisable that you check ADA requirements with local, state and federal agencies for regulations governing height, distance & angle of the bars.
ment parts are available at any hardware or home center stores, however, if not installed, there is a good chance, it is still in the plastic bag tied to the back of the stove. Shut off the circuit breaker or gas line feeding the stove, carefully slide the stove away from the wall, ensure a bracket isn’t installed (the last time the stove was slid against the wall it may have simply missed the bracket) and if not installed, search around for the original plastic bag. Hopefully, the instructions and template is still in the bag.
Keep in mind installing an anti-tipping bracket is both a resident safety issues as well as an owner liability issue.
This is a $10.00 part and a ten minute install that will keep both you and your resident out of hot water. Bio: If you need maintenance work or consultation for your building or project, please feel free to contact us. We are available throughout Southern California. For an appointment please call Buffalo Maintenance, Inc. at 714 956-8371 Jerry L'Ecuyer is a licensed contractor & real estate broker. He is currently on the Board of Directors and Chairman of the Education Committee of the Apartment Association of Orange County. Jerry has been involved with apartments as a professional since 1988. Frank Alvarez is the Operations Director and co-owner of Buffalo Maintenance, Inc. He has been involved with apartment maintenance & construction for over 20 years. He is also a lecturer & educational instructor. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance.com For more info please go to: www.BuffaloMaintenance.com
Dear Maintenance Men: I was cleaning the kitchen stove in one of my vacant units and noticed the free standing stove tipped forward when I put a bit of weight on the open oven door. It looked a bit dangerous and was wondering how I can fix this issue.
Rick
Dear Rick: You are very lucky it was you and not one of your resident’s children that found out about the dangers of a tipping oven. First let us explain what a tipping oven is: Most stoves with an oven are free standing appliances. The stove is placed in the kitchen, gas or electrical lines are installed and it is ready for use, very simple. The issue arises when a resident is using the stove and they or a child opens the oven door and puts weight on the open door. This causes a cantilever effect which may pitch the whole stove forward causing the stove top pots or pans to fly off the stove and onto the person or child in front of the stove. Best case scenario is this causes a mess in the kitchen and worse case is a resident or child is badly burned or disfigured. It is not uncommon to hear about a small child wanting to see what Mommy is cooking by using the oven door as a stepping stool or even more common, removing a turkey, roast or other large item from the oven and placing it on the open door. The extra weight is enough to tip the stove forward. The solution is an “anti-tip bracket” installed behind the stove. An anti-tip bracket is “L” shaped and usually installed on the floor and against the wall (towards the back of the stove) for one of the rear legs to slide into. Replace-
Rental Housing Journal Colorado · January 2017
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Rental Housing Journal Colorado
The How and Why of Becoming a Really Likable Property Manager
By Marc Courtenay, www.propertymanager.com
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s I listened to this long-time property manager describe his losses I was astounded. “These ungrateful owners don’t deserve me. I’ve worked hard for them and their residents and this is what I get?” Although this man was intelligent, his people-skills and mannerisms were brash, condescending and curt. Nobody enjoys the company or doing business with a person who abruptly talks down to the them. Like many folks, he didn’t seem to realize he was being rude and abrasive. After patiently waiting for him to finish his heartfelt, self-justifying oration, I asked him, “What’s your plan to solve this problem?” Apparently that was what he was hoping I had up my sleeve…some answers and a plan to help him. I thanked him for his confidence and told him I’d get back to him after giving the matter more thought. After reflecting on the property managers I know or have heard about who are well-liked by both their clients and their tenants, I came up with the following action-steps below. • Talk to people who know you well, care about you, and are able to be blunt with you. Ask them to tell
erful pause ask yourself, “Am I in the right frame of mind to respond courteously.” • When pausing before responding, consider asking for a “time out.” It’s often appropriate and thoughtful to say, “I want to think about your concerns carefully and get back to you later.”
you the facts about how you affect them and make them feel. Seek the painful truth. • Have a business conversation, a face-to-face meeting with a client or resident. Ask permission for someone to video you and you only. Tell the other person it’s for your “self-evaluation.” • After seeing the video and recovering from the many surprises, begin a list of ideas for self- improvement. Watch the video as many times as you can until solutions arise in your mind. • Be certain you come across to others as authentic and genuine. We all want to have relationships
• Make being reliable a top priority in all your relationships. Clients, residents, family and friends need to be sure they can count on you. Be punctual, don’t keep people waiting and be a person of your word.
based on trust. Who do you know who is a good example of authenticity? Emulate them sincerely and ask for a little coaching as well.
The property manager I shared these 8 suggestions with took them to heart. Although he still has a tendency to be condescending and reactive, he’s becoming a more likable person and professional. Instead of losing clients and good residents, he’s attracting more than ever. His personal life is more peaceful and satisfying too. Most of all he’s more “comfortable in his own skin” as he describes it.
• Practice being a focused listener. Instead of focusing on how you’ll reply, zero in on understanding what the speaker is saying and then ask relevant questions. As I often say, “People don’t care how much you know until they know how much you care.” • Choose to respond rather than react. If you’re being confronted with accusations or demands, take a deep breath, let the person know you’ve heard them, and pause. In that awkward but pow-
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Rental Housing Journal Colorado · January 2017
Rental Housing Journal Colorado
More Than One in 10 Homeowners ...continued from page 1 The numbers are another sign that the housing market has nearly regained the value lost during the recession, and is only 2.7 percent below the peak reached at the height of the bubble. Not all regions have experienced the same recovery, though, and some markets are still well below those bubble highs. Underwater homeowners can't refinance to take advantage of still-low mortgage rates and they can't sell their homes except in short sales, which keeps these homes off the market, contributing to low inventory.
Seven of the 10 large metros with the lowest rates of negative equity are along the West Coast, and also have strong economic markets. Fewer than five percent of homeowners are underwater in San Jose, San Francisco, Portland, Ore., Denver, and Dallas. In these metros, home values have also surpassed the highest point reached during the bubble, and are now higher than ever. Chicago and Las Vegas have the highest levels of negative equity, with 17 percent and 16.8 percent of homeowners underwater respectively. Home values
in these markets remain well below their peak levels. "As the housing market recovers and home values rise, the number of homeowners underwater on their mortgages continues to drop," said Zillow Chief Economist Dr. Svenja Gudell. "In addition to the individual homeowners who are underwater, negative equity affects the housing market as a whole, so this is good news not only for these owners, who are now able to either sell their home or at least regain some financial stability, but also for buyers who may
find more options now. I expect homes will gain value steadily, for solid economic reasons, and that negative equity rates will continue to fall." Homeowners who have less than 20 percent equity in their homes may find it difficult to cover the associated costs of selling, such as agent fees, closing costs, and a new down payment if they are buying a new home. More than a quarter of homeowners with a mortgage are in this situation, known as effective negative equity.
Metropolitan Area
Percent of Underwater Homeowners
Total Amount of Negative Equity
Number of Homes in Negative Equity
Effective Negative Equity Rate
United States
10.9%
$479 billion
5,269,166
26.1%
New York/Northern New Jersey
10.0%
$40 billion
250,842
21.5%
Los Angeles-Long Beach Anaheim, CA
5.7%
$18.8 billion
90,452
14.0%
Chicago, IL
17.0%
$29.8 billion
277,867
33.5%
Dallas-Fort Worth, TX
4.4%
$5 billion
44,998
12.7%
Philadelphia, PA
11.8%
$10.7 billion
124,492
29.4%
Houston, TX
6.9%
$6.1 billion
59,000
19.4%
Washington, DC
12.4%
$19.9 billion
136,068
30.5%
Miami-Fort Lauderdale, FL
10.6%
$9.8 billion
88,840
21.1%
Atlanta, GA
13.0%
$10.8 billion
127,592
30.3%
Boston, MA
6.2%
$7.9 billion
49,005
14.3%
San Francisco, CA
3.7%
$5.9 billion
24,224
8.9%
Detroit, MI
12.2%
$5.8 billion
93,270
24.0%
Riverside, CA
10.5%
$8.3 billion
65,609
26.3%
Phoenix, AZ
11.2%
$9.1 billion
79,519
29.6%
Seattle, WA
6.6%
$6.8 billion
41,667
17.2%
Minneapolis-St Paul, MN
7.3%
$5 billion
48,956
22.4%
San Diego, CA
6.3%
$4.9 billion
27,452
18.1%
St. Louis, MO
12.6%
$4.2 billion
66,607
30.8%
Tampa, FL
10.5%
$3.6 billion
48,764
24.9%
Baltimore, MD
14.4%
$7.9 billion
73,895
34.4%
Denver, CO
4.4%
$3.3 billion
22,326
11.9%
Pittsburgh, PA
8.1%
$2.2 billion
33,395
19.8%
Portland, OR
3.8%
$2.1 billion
15,152
11.7%
Charlotte, NC
8.1%
$3.6 billion
34,268
24.2%
Sacramento, CA
7.6%
$3.6 billion
27,123
20.9%
San Antonio, TX
10.2%
$2.9 billion
30,933
28.3%
Orlando, FL
11.4%
$3.3 billion
39,743
27.0%
Cincinnati, OH
10.8%
$3.1 billion
43,385
29.6%
Cleveland, OH
14.6%
$3.3 billion
55,547
31.1%
Kansas City, MO
12.4%
$3 billion
44,646
33.1%
Las Vegas, NV
16.8%
$5 billion
49,809
36.8%
Columbus, OH
9.0%
$2.7 billion
31,314
24.1%
Indianapolis, IN
12.8%
$3 billion
46,772
33.9%
San Jose, CA
2.6%
$1.9 billion
6,905
6.4%
Austin, TX
6.6%
$2.2 billion
18,383
18.6%
ZillowÂŽ is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow's Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.
The data in the Zillow Negative Equity Report incorporates mortgage data from TransUnion, a global leader in credit and information management, to calculate various statistics. The report includes, but is not limited to, negative equity, loan-to-value ratios, and delinquency rates. To calculate negative equity, the estimated value of a home is matched to all outstanding mortgage debt and lines of credit associated with the home, including home equity lines of credit and home equity loans. All personally identifying information ("PII") is removed from the data by TransUnion before delivery to Zillow. Overall, this report covers more than 870 metros, 2,400 counties, and 23,000 ZIP codes across the nation. i
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 Rental Housing Journal Colorado ¡ January 2017
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Rental Housing Journal Colorado
Your Residents Can't Recycle ...continued from page 1 peanuts and other materials that aren’t accepted onsite for recycling. Consider providing these guidelines at lease-up! 5) Use a similar approach for bulky waste at holidays and move-outs: A lease addendum can include fines for leaving furniture, mattresses and electronics in the trash. Consider creating a swap room for reusable materials!
Provide ongoing education Don’t stop the recycling education after move-in time! Keep all residents up to speed on how garbage and recycling works through regular, ongoing education. If you have any regular meetings with residents, consider devoting a portion of the agenda to recycling education or a question and answer session. Make sure all residents know how to dispose of items not accepted in the garbage and recycling area. This includes: • Electronic devices including computers, monitors and TVs.
• Materials not recyclable onsite including, plastic bags, Styrofoam and light bulbs. • Bulky waste like furniture and mattresses. • Batteries, paint, motor oil, compact fluorescent light bulbs and other household hazardous waste
Provide regular reminders Update residents on what is recyclable. From “Green Tip” articles for a monthly newsletter to recycling door hanger cards — we have free tools and resources designed specifically for multifamily properties. Research shows that posting two or three reminders (signs, brochures, updated stickers on roll carts) can improve recycling at your property. Get ahead of holiday waste Residents generate extra garbage during the holidays. Early communication goes a long way towards ensuring proper disposal and controlling the costs of extra garbage. Provide guid-
ance around recurrent concerns such as holiday tree disposal. Don’t forget the City of Portland’s garbage and recycling requirements for multifamily properties Owners and managers of multifamily properties are required to provide and pay for adequate garbage and recycling service: • Provide adequate service. Get the right combination of garbage and recycling containers to allow recycling of all permitted materials. Prevent garbage from accumulating and creating a sanitary hazard between collections. • Inform new residents. You’re responsible for providing new residents with information on how to recycle within 30 days of move-in. • Conduct an annual reminder. Update existing residents on how to recycle at least once a year. An easy to use system and regular, ongoing education keeps residents up to
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How to select a commercial garbage and recycling company in Portland Unlike surrounding cities, Portland’s multifamily property owners and managers select a garbage and recycling company from over three dozen City-licensed businesses. We can provide a list of commercial companies, as well as offer guidelines to choosing the service you want for your property. • Ask for recommendations. Connect with other property managers in your company or in the neighborhood. Learn about how their garbage and recycling company is working for them. • Obtain multiple bids and negotiate. Reach out to several different companies. Select the one that will provide the best services for your community. Cost, number and size of containers, frequency of service and days of collection are all negotiable. • Identify the best location. Ensure collection trucks easily access your collection system. When possible, outside is best. The company you select will provide the roll carts and containers for garbage and recycling collection.
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Sign up for our Multifamily Matters e-newsletter and get free tips, resources and technical assistance delivered to your inbox. Multifamily Matters will help you manage your property in an effective and sustainable manner with every-other-month emails. You’ll find something in each issue aimed to make your workload just a little bit lighter. Call us at 503-823-5054 or email multifamily@portlandoregon.gov with questions, concerns or requests for assistance and information.
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Rental Housing Journal Colorado · January 2017