Rental Housing Journal Colorado April 2017

Rental Housing Journal Colorado

April 2017 - Vol. 9 Issue 4

2. Consumer Survery Identifies Home Shoppers' Preferences in 2017

7. 5 Qualities and Habits of Great Property Managers

3. Dear Maintenance Men - Rehabbing Rentals, Fences and Smokers

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

4Q16 Market Overview Denver, CO Payroll Job Summary Average Payrolls Annual Change 4Q16 RCR 2017 Forecast RCR 2018 Forecast RCR 2019 Forecast RCR 2020 Forecast RCR 2021 Forecast Unemployment (NSA)

1,450.1m 29.8m (2.1%) 37.6m (2.6%) 36.8m (2.5%) 28.8m (1.9%) 25.8m (1.7%) 21.8m (1.4%) 3.1% (1/17)

4Q16 Payroll Trends and Forecast Initial BLS employment data suggested that the Denver labor marketrecorded another strong year in 2016. After posting 50,000- and 51,100job adds in 2014 and 2015, Denver was thought to have created45,000 (3.2%) payroll positions last year. But the annual rebench mark revisions told another, murkier story. Calendar 2016results were revised down to a 35,600 (2.5%) job advance, whilethe 4Q16 year-on-year growth comparison was trimmed from48,200 (3.4%) jobs initially to a more pedestrian 29,800 (2.1%).

Revised 4Q16 data were the weakest in five years, hurt by materiallysmaller job gains in consumer driven sectors.

Construction, retailtrade and financial services concerns hired workers at a collective3,200-job, 0.9% year-onyear pace, down from an 8,600 (2.6%) jobrate two quarters earlier. The food service and accommodations subsector experienced a similar hiring slowdown. Seasonally adjusted figures suggest Denver created a quarterly net

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continued on page 5

T

Homes in Short Supply as Home Shopping Season Kicks Off

here are 3 percent fewer homes on the market than a year ago, with the median home value hitting its highest point since June 2007, according to Zillow's February Real Estate Market Reports Home values across the country are up 7 percent since last February, with 3 percent fewer homes to choose from than a year ago, making for another competitive home shopping season. The median U.S. home value is $195,700, according to the February Zillow® Real Estate Market Reportsi, the highest value since June 2007.

Tampa, Fla., Seattle, Dallas and Orlando, Fla. reported the highest year-over-year home value appreciation among the 35 largest metros across the country, all growing in the doublecontinued on page 2

Spring Cleaning Tips and Tricks for Homeowners

I

t is springtime: the time to open the windows, let in some fresh air and clean the house from top to bottom. This month's The Best, NoSweat Ways to Spring Clean Your Home spotlight from Houselogic.com, the comprehensive website for homeowners from the National Association of Realtors®, features six articles helping homeowners get and keep their homes clean.

Here are a few tips from HouseLogic on how to freshen up a home this spring as quickly, simply and cheaply as possible.

Minimalist Home Countertops You Can't Detect These 4 Odors, But Your Guests Can. When a smell is a constant presence in a home, it is easy to become 'noseblind' to it, but

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

continued on page 4

Text REALESTATE-ROI to 44222 to receive a digital copy of this year's

Real Estate Opportunities in Investing (ROI) Finding Investing Success in Today's Housing Market

Rental Housing Journal Colorado

Consumer Survey Identifies Home Shoppers' Preferences in 2017 Topping Buyers' Lists: Three-Bedroom, Two-Bathroom, Ranch-style Homes with a Large Backyard, Updated Kitchen and Garage

R

anch-style homes, large backyards and updated kitchens top shoppers' wish lists this spring, according to realtor.com®'s home buyer survey. More than half of home seekers are looking for a three-bedroom home, while 75 percent of shoppers are considering a two-bathroom home.

Realtor.com® is a leading online real estate destination operated by News Corp [NASDAQ: NWS, NWSA]; [ASX: NWS, NWSLV] subsidiary Move, Inc. The survey, based on March data from shoppers on realtor.com®, provides insight into home buying trends in 2017 by analyzing what features shoppers are looking for this spring and summer the peak home buying seasons.

"The insights from our most recent consumer survey provide a glimpse into what buyers are looking at today," said Sarah Staley, housing expert for realtor. com®. "While we often think of dream homes as being big and bold, that's not what we're hearing from potential buyers today. These insights can help guide potential sellers in deciding which rooms or features to invest in before listing their homes."

Following are key findings of the realtor.com® home buyer survey.

Complete survey findings can be viewed at http://research.realtor.com/ spring-home-shoppers.

2

Large backyards, garages and updated kitchens top list of most searched attributes All age groups are looking for some combination of a backyard, garage and updated kitchen. Unsurprisingly younger homebuyers who are more likely to have young children in the house are particularly excited about finding a large yard. These age groups are also most interested in living in a good school district. The least-searched features were a guesthouse, mother-inlaw suite, solar panels and a "man cave."

Ranch-style homes and kitchens rule in 2017 Ranch homes led shoppers' rankings of desired home styles by far, with 42 percent of shoppers looking for a ranch home. No other style of home broke 29 percent, although contemporary came close with 28 percent, followed by Craftsman and Colonial styles.

Eighty percent of shoppers ranked the kitchen as one of their three favorite rooms in their home. Kitchens were followed by master bedroom (49 percent) and living room (42 percent) among most age groups. Although, shoppers over 55 years old preferred garages over living rooms.

Privacy ranks as shoppers' top goal for buying, largely driven by buyers over age 45 Most shoppers cite privacy as their top goal when searching for a home.

Shoppers want to have a space that is solely their own. This preference can be attributed to mostly buyers between 45 and 64 years old, for whom privacy tends to beat out other preferences such as stability, family needs and financial investment.

Millennial shoppers cite family needs as the primary reason for entering the housing market As millennial buyers prioritize family needs, it is no surprise that most millennials cited life events like increasing family size and getting married or moving in with a partner as their primary triggers for finding a new home. Shoppers age 35-44 are also focused on family needs. Most of this group cited better school districts or changing family circumstances as their primary reasons for purchasing a new home. Shoppers over age 45 are looking to downsize, as all age groups above 45 cited planning for retirement as their primary motive for finding a new house.

Desire for single-family home rises with age Among younger buyers, many of whom are buying starter homes, 40 percent of shoppers were looking for townhouses and row houses. As shoppers age, however, that number declines and single-family homes are a clear preference. The older the age group is, the less likely they are to consider a

townhouse and the more likely they are to prefer a single-family home.

About realtor.com®

Realtor.com® is the trusted resource for home buyers, sellers and dreamers, offering the most comprehensive source of for-sale properties, among competing national sites, and the information, tools and professional expertise to help people move confidently through every step of their home journey. It pioneered the world of digital real estate 20 years ago, and today helps make all things home simple, efficient and enjoyable. Realtor.com® is operated by News Corp [NASDAQ: NWS, NWSA] [ASX: NWS, NWSLV] subsidiary Move, Inc. under a perpetual license from the National Association of REALTORS.® For more information, visit realtor.com®.

Media Contact: Realtor.com® Lexie Puckett Holbert – lexie.puckett@ move.com http://www.realtor.com

Rental Housing Journal Colorado · April 2017

Rental Housing Journal Colorado

DEAR MAINTENANCE MEN: Rehabbing Rentals, Fencing and Smokers

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men: I have just finished rehabbing a rental unit. I replaced counter tops, cabinets, baseboards and so on. Even though the unit is freshly painted with new carpets, the unit still looks unfinished.

The base boards don’t always follow the wall contours exactly and the cabinets also have small gaps where they meet the wall. What can I do to make my work look professional?

the “red” in the wood has faded with exposure to the weather. The wood looks grey now. How can I bring back the redwood look back without buying new wood?

George

Josh Dear George:

Dear Julia: We are going to let you in on a “professional” secret and it is called painter’s caulk!

Painter’s caulk typically comes in a tube and is applied with a caulking gun. Run a small bead of caulk along the baseboard and with your finger push the caulk between the wall and the gap you are trying to fill.

Using a damp sponge or rag, wipe up any excess caulk. Painter’s caulk can be used to hide a multitude of installation sins. Almost anywhere two dissimilar materials meet; painter’s caulk can help hide the transition. Painter’s caulk is not limited to just baseboard, use it to make cabinets and door trim look custom installed. Fill nail holes without making a big flat spot on your wall. If you have ever tried to mate two pieces of trim or coving at a 45 degree angle and your cuts are not quite square, use painter’s caulk and no one will know.

All gaps will magically disappear.

Dear Josh: A Redwood deck or fence may be young and fit, but they do tend to grey prematurely. Luckily, the solution is not too hard. There is a chemical called oxalic acid which will help give the wood its youth and vitality back again. Most hardware stores will stock a product called cedar and redwood cleaner/ brightener. It may be under the brand name of “Olympic Cedar and Redwood Deck Brightener” Be sure your deck or fence is clean before treatment by using a TSP and water solution. (TSP is a heavy duty powder cleaning solution available at any hardware store or supermarket.)

After cleaning, be sure to read the deck brightener product’s instructions before use. For safety and wear gloves and goggles. Mix the product’s solution with water into a pump up sprayer. Wet the deck or fence with the solution and using a nylon brush or broom, scrub the wood evenly, working harder on stained areas. Let the solution stand for about thirty minutes and rinse off with a strong stream of water. Let dry and the wood should look brighter. It might not look brand new, but it will look much better.

Dear Maintenance Men: My building has redwood fencing and patio decks. Both the fencing and decks are in good condition, however

Dear Maintenance Men: My current vacancy was long occupied by a heavy smoker. Every surface is sticky with brown nicotine

Julia

and the smell of smoke is overwhelming.

How do I get rid of the smell and keep it from coming back?

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

Cigarette smell is very hard to remove even after painting and cleaning the carpets. Chances are if the resident was long term, the carpets, drapes or blinds will need to be replaced. Remove the carpets, pad and tack strips. The tack strips are wood and can absorb and release the smell of smoke, urine etc.

Thoroughly clean the floors with soapy water mixed with bleach. After cleaning the floors, it is not a bad idea to paint or use a primer to coat the flooring. One of the best ways to remove the nicotine residue from the walls is using oldfashioned elbow grease! Again, wash the walls with soapy water using a brush or rag. Adding TSP (a powdered cleaning solution available at most hardware stores) or using a degreasing agent will help in the cleaning. If you have flat ceilings, wash them too. If you have “acoustical” or “pop-corn” type ceiling, that’s a problem. By its nature, acoustical ceiling material cannot be cleaned. Encapsulating the acoustical ceiling with spray paint may solve the problem. You will need a primer coat and a minimum of two coats of paint. If the smell is still present, give it another coat of paint and let the unit

air as much as possible. Don’t forget to wash the windows and window frames.

You will be amazed at how clean the aluminum or vinyl windows will look after a good cleaning.

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 Past 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 and Co-Chair of the Education Committee of the Apartment Association of Orange County and Chair of the Education Committee at Southern Cities Apartment Association. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance.com For more info please go to: www.BuffaloMaintenance.com

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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Rental Housing Journal Colorado

Spring Cleaning Tips and Tricks ...continued from page 1

that doesn't mean visitors won't have their olfactory senses offended by any unpleasant scents to which the homeowner has become accustomed.

Look at HouseLogic's suggestions for eliminating some of the most common smelly offenders, including using an onion to deodorize a musty room.

8 Storage Tips to Help You Clean Better, Clean Faster. For many homeowners, cleaning the house – the WHOLE house – is a bit of a drag and usually takes much longer than expected. However, with the proper organization, the job can be done quickly and with minimal

headaches. Check out HouseLogic's tips for organizing cleaning supplies, including using a shoe caddy as a cheap, convenient way to store products out of sight behind a door.

10 Clever Uses for Hydrogen Peroxide. Hydrogen peroxide is cheap, non-toxic and the Swiss Army knife of cleaning supplies. HouseLogic lays out just 10 of the many cleaning uses for H2O2, including spraying a hydrogen peroxide-water mixture on plants to ward off fungus.

8 Tips and Tricks to Keep Your Home Cleaner Longer. How can homeowners make their spring-cleaning efforts last into summer and fall? By following HouseLogic's list of tips to keep a home clean with less effort and with less frequency, such as using rain repellent designed for cars to eliminate soap scum buildup in the shower.

The Dirty Places in Your Home Your Guests See – But You Don't. Sometimes a home's harshest critics are not the ones who live there. Guests look at a

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home with fresh eyes and often notice the dust bunnies and cobwebs that homeowners miss. HouseLogic asked a cleaning expert to share the top seven spots that often go uncleaned, such as the refrigerator icemaker to keep it from absorbing food odors.

How to Achieve am Minimalist Home. This month's spotlight also features a comprehensive infographic on how to live like a minimalist and achieve an organized, clutter-free home with tips such as borrowing instead of buying one-time use items. These suggestions can help homeowners save money and decrease clutter.

For more information on making a home spick and span, visit HouseLogic.com.

HouseLogic is a free source of information that helps consumers make smart, confident decisions about all aspects of home ownership. Made possible by Realtors®, the site helps owners get the most value and enjoyment from their existing home and helps buyers and sellers make the best deal possible.

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1.2 million members involved in all aspects of the residential and commercial real estate industries.

“ScreenScreening Your Tenants Online Anytime” Tenant 44 Less...

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(FREE Membership Available) “Screen Your Tenants Online Anytime” “Screen Your Tenants Online Anytime” (FREE (FREE Membership Membership Available) Available)

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.

Media Communications For further information contact: Jane Dollinger, 202/383-1042 jdollinger@realtors.org SOURCE National Association of Realtors Related Links http://www.realtor.or

continued on page 8

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Rental Housing Journal Colorado

Market Overview ...continued from page 1 of 6,600positions, the smallest fourth quarter add in five years.

RED Capital Research re-specified the DEN payroll model, usingthe rate of change of U.S. payroll growth, and metro personalincome (+) and GDPt4 (-) growth as independent variables toachieve a robust 98.3% adjusted-R2 (S.E.=0.3%) predictive model.Using our current base macroeconomic forecast, which anticipatesfaster GDP growth in 2017. but a return to “new normal” condition safter, the model projects stronger job creation in 2017 and 2018. followed by constructive but weaker job growth in the later years ofthe forecast interval. Moody’s Analytics are more pessimistic,particularly in the final years (2020-2021)of the forecast period.

Occupancy Rate Summary Occupancy Rate (Reis) 94.9% RED 51 Bank 44th Annual Chg. (Reis) -0.9% RCR Y317 Forecast 94.3% RCR Y318 Forecast 94.2% RCR Y319 Forecast 94.4% RCR Y320 Forecast 93.7% RCR Y321 Forecast 94.1%

4Q16 Absorption and Occupancy Rate Trends According to Reis, developers delivered 2,605 units to the Denvermarket during 4Q16, the largest single-quarter vintage since 2003.

Although useful renter demand was recorded — tenants leased anet of 1,444 vacant units—occupancy declined 50 basis pointssequentially and 90bps yearon-year to 94.9%, lowest in fiveyears.

Weak occupancy trends were entirely the province of theclass-A sector.

Segment vacancy increased 100bps sequentially to7.0% (class-B&C=2.7%), highest metric since 2009.

Axiometrics surveys of same-store, stabilized properties recordedlower 4Q16 occupancy (93.8%), down 80bps y-o-y. Average occupancy was about 93.7% in February, 40bps below the year-earlierlevel.

Class-C (94.1%,

-120bps) occupancy was highest among segments, followed by classes-B (93.9%, -80bps) and –A (93.0%,-40 bps). Nine of 19 submarkets recorded rates above 94%, led byDenver Far Southeast and Lakewood North (94.6%). Downtown( 92.8%) and Central (92.4%) Denver were among the submarkets with lowest occupancy. Aurora North (-150bps) and Central SW(-1.9%) suffered the largest year-on-year occupancy declines.

Supply will continue to hinder DEN occupancy. Reis expect 7,600units to debut in 2017; 6,500 more in 2018.

By contrast, our demand model projects absorption of 5,975 and 5,900, respectively; shortfalls that are expected to cut 70bps from average occupancy.Supply will subside in 2019, but metro occupancy is likely to remain under pressure as apartment demand decelerates as well.

Effective Rent Summary Mean Rent (Reis) Annual Change RED 51 Percent Change Rank RCR Y317 Forecast RCR Y318 Forecast RCR Y319 Forecast RCR Y320 Forecast RCR Y321 Forecast

$1,121 4.3% 15th 4,1% 4.3% 4.0% 3.5% 3.5%

4Q16 Effective Rent Trends Rising vacancy hindered rent growth, according to Reis, holding sequential quarter average effective rent gains to $1 (0.1%) in4Q16, down from $14 (1.4%) in the year earlier quarter and $16(1.5%) in 3Q16. The advance was the smallest recorded in morethan seven years.

Weakness in the supply challenged class-Asegment was primarily responsible as class asking rents declined$8 (-0.6%) quarter-to-quarter after posting 1% or higher increasesin each of the prior 18 quarters. The yearon-year comparisonslipped to 4.3% from 5.8%, slowest in nearly three years.

Axiometrics same-store comparisons recorded average annual rent growth of 2.7% in 4Q, down from 7.3% in the

same period of 2015. Y-o-Y gains in February rebounded to 3.8%. Contra Reis, theclass-A (3.4%) segment posted the fastest 4Q16 rent growth (forthe first time since 2Q12) topping classes-C (2.8%) and –B (2.5%). Submarket results were mixed. Aurora-Central SW (5.5%), AuroraNorth (8.3%) and Denver-Central (5,3%) chalked down usefulgains, but Lakewood North and Littleton saw rents fall and fiveother submarkets failed to post increases of as much as 2%.RCR analysis found that the rate of job growth (+) and occupancy (+) account for 96.4% of changes in DEN effective rent growthrates (S.E.=0.7%). The model generates an optimistic forecast wherein gains slow to the high-3% area in 2017, but recover to thelow-4% region in 2018 and 2019.

Rents are projected to rise at a 3.9% annual compound rate through 2021, ranking RED 48 #8.

Trade & Return Summary $5mm+/80-unit+ Sales

28

Approximate Proceeds

$1,642.3mm

Average Cap Rate (FNM) 5.1% Average Price/Unit

$203,862

Expexted Total Return

7.2%

RED 48 ETR Rank

16th

Risk-adjusted Index

3.33

RED 48 RAI Rank

34th

4Q16 Property Markets and Total Returns Sales velocity was healthy during the fourth quarter as 28 transactionsof properties valued at $5 million were closed compared to 27in the prior quarter. Proceeds totaled $1,642 million, up 17% from 3Q16 and 6%

from the year-earlier period. With respect to total proceeds, 4Q16 was the second highest quarter in Denver series history after 1Q16’s $2.8 billion, 50 transaction blow-out. The average price paid per unit was $203,862, third highest figure in the Denver series after 1Q16 ($211,139) and 2Q16 ($220,382). Activity in 1Q17 appears to have moderated. Through mid-March proceeds of 20 transactions totaled $994mm, down from $2.8billion in the year-earlier period. The average price of units soldwas comparable, however, on $206,239, down only 2% from 1Q16.Cap rates of investment quality properties were largely below 5%.Mid-rise assets in top submarkets traded in the low-4% area.Assets in second tier submarkets were priced to high-4% to low-5% yields. Affordable properties gravitated to the mid-5% range.Using 4.7% as the purchase cap rate proxy, 5.3% as the terminal cap rate and model derived occupancy and rent point estimatesRCR calculate that an investor would expect to earn a 7.2% annual unlevered total return on a five-year hold. This ETR ranks sixteenthamong the RED 48 peer group. With respect to risk-adjusted returns, Denver’s moderately high rent model standard error increases return uncertainty, causing the risk-adjusted index to fallto 3.33, ranking a lower 34th among the peer group.

Daniel J. Hogan Director of Research djhogan@redcapitalgroup.com +1.614.857.1416 office +1.800.837.5100 toll free continued on page 7

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Spring Cleaning Tips and Tricks ...continued from page 1 digits. In Tampa, home values rose almost 12 percent to a median home value of $182,100. Home values in both Seattle and Dallas are up 11 percent since last February. High buyer demand coupled with fewer homes for sale is driving home values higher in many of these markets -- there are 5 percent fewer homes to choose from than a year ago in Tampa and 11 percent fewer in Orlando.

Across the country there are 3 percent fewer homes on the market than a year ago and many places with rapidly rising home values have inventory shortages in the double-digits. In Seattle, for example, home values are up 11 percent but the selection of homes down 10.5 percent. Millennials will have a big impact on this year's home shopping season as they start aging into Metropolitan Area United States New York/Northern New Jersey 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 quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to

6

homeownership, especially in booming job markets that are attractive to young homebuyers.

"Low inventory, strong demand and tough competition will be the defining characteristics of this year's home shopping season," said Zillow Chief Economist Dr. Svenja Gudell. "Even though interest rates are rising, buyers are eager to start their home search.

If you're a prospective buyer about to enter the market, keep in mind that it's rare to get the first home you make an offer on, and homes in particularly hot markets frequently sell for over asking price. Buyers should give themselves enough time to get their finances in order and find a real estate agent they know and trust before jumping into the market."

Zillow Home Value Index (ZHVI) $195,700 $407,600 $599,400 $207,500 $203,400 $215,400 $175,200 $382,400 $248,600 $175,200 $416,100 $839,600 $137,500 $321,400 $231,700 $420,200 $239,700 $529,200 $149,900 $182,100 $259,000 $359,100 $135,600 $358,700 $169,500 $357,700 $158,100 $201,900 $150,500 $132,100 $154,600 $217,800 $161,000 $137,100 $979,400 $264,800

National median rent across the nation is up 1.2 percent since last February, to a median payment of $1,406 per month. Seattle, Portland and Sacramento, Calif. reported the highest year-over-year rent appreciation among the 35 largest U.S. housing markets.

Rents in Seattle are up 7 percent to a Zillow Rent Indexii (ZRI) of $2,100.

Rents in both Portland and Sacramento are up 5 percent.

Minneapolis, Cincinnati and Detroit reported the greatest drop in inventory since last February. In Minneapolis, there are 18 percent fewer homes on the market than a year ago, and 15 percent fewer in Cincinnati.

In February, mortgage ratesiii on Zillow ended at 3.89 percent, down from a high of 4.01 percent at the start

Year-over-Year ZHVIChange 6.9% 7.0% 6.4% 6.4% 11.1% 4.6% 4.5% 3.9% 8.9% 7.6% 6.4% 4.5% 10.0% 6.7% 6.3% 11.2% 7.1% 5.4% 7.1% 11.6% 4.2% 9.3% 5.3% 9.2% 7.0% 7.7% 6.0% 10.4% 6.4% 4.9% 5.5% 10.1% 4.5% 5.3% 3.9% 7.0%

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 trademarks of Zillow, Inc. 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 infor-

Zillow Rent Index (ZRI) $1,406 $2,391 $2,642 $1,619 $1,565 $1,568 $1,547 $2,114 $1,854 $1,335 $2,342 $3,354 $1,175 $1,754 $1,309 $2,100 $1,566 $2,452 $1,132 $1,347 $1,720 $1,998 $1,068 $1,804 $1,248 $1,709 $1,323 $1,396 $1,254 $1,141 $1,251 $1,247 $1,293 $1,184 $3,449 $1,694

of the month. The month low was 3.86 percentiv. Zillow's real-time mortgage rates are based on thousands of custom mortgage quotes submitted daily to anonymous borrowers on the Zillow Mortgages site and reflect the most recent changes in the market.

Purchase mortgage requests on Zillow are up 7 percent compared to this time last year, indicating that borrowers are moving forward with plans to buy a home amidst rising interest rates. On the other hand, the refinance market is more rate-sensitive, and refinance requests on Zillow are down 69 percent compared to this time last year.

Year-over-Year ZRI Change 1.2% -0.7% 4.8% -1.5% 3.4% 0.4% -2.2% -0.1% 0.2% 3.7% 4.0% 0.1% 2.3% 2.9% 3.3% 7.2% 3.8% 4.3% 0.3% 2.9% -0.2% 1.4% -3.8% 5.4% 1.5% 5.2% 1.6% 3.4% 2.2% 1.2% 2.2% 2.0% 1.3% -0.2% -0.7% 0.0%

mation, visit www.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.

Year-over-Year Inventory Change -2.6% -7.0% -1.8% -7.5% 4.1% -7.3% 3.1% -8.5% 16.2% 2.8% -11.8% 6.4% -14.4% -10.5% 6.2% -10.5% -18.0% -4.4% -8.0% -5.4% -12.1% 12.1% -4.0% 10.1% -7.5% -4.4% 16.4% -10.6% -14.9% -2.1% -10.4% 23.3% -13.0% -10.3% -0.9% 24.0%

day, and includes the value of all single-family residences, condominiums, cooperatives and apartments in Zillow's database, regardless of whether they are currently listed for rent. It is expressed in dollars. iii

Rates for a 30-year fixed mortgage.

Month high occurred on February 21, while the month low occurred on February 3rd. iv

http://www.zillow.com

The Zillow Rent Index (ZRI) is the median Rent Zestimate® (estimated monthly rental price) for a given geographic area on a given ii

Rental Housing Journal Colorado · April 2017

Rental Housing Journal Colorado

Market Overview ...continued from page 5

The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED Capital Group. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the informationgathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer toparticipate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountantor other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors.

Rental Housing Journal Colorado ¡ April 2017

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Rental Housing Journal Colorado

5 Qualities and Habits of Great Property Managers

By Marc Courtenay, www.propertymanager.com

S

ometimes life is what happens while we’re making other plans.

Other times life feels like it’s in the palm of our hands waiting for our decisions about what we want to make happen next. Maybe that’s the way our lives are supposed to feel. One of the things I know for sure is that you can learn a great deal about successful property management by watching those who are adroit at it.

One of my “pet projects” is studying the habits, qualities and characteristics of highly successful property managers.

Through the years I’ve discovered some consistencies they all seem to share.

The first is what I call “brilliance”. I don’t mean they’re extra smart nor have an unusually high Intelligence Quota (IQ). Their “brilliance” shines in their daily approach to their work. Like this article implies, they’ve learned from other brilliant managers and they’ve applied what they’ve learned. They’re willing to take the time to study the characteristics and successes of others.

The second quality, one that becomes habitual, is that great property managers have an extraordinary amount of curiosity. Since they are, either by nature or self-discipline, observant professionals, they keep their

eyes and ears wide open for better ways to accomplish. They’re not afraid to ask questions, do research, and delegate to others the task of finding solutions.

They’re obsessed with growing and evolving. They seem to innately know that something that they don’t know is holding them back from reaching their full potential. They’ll go to seminars, join associations, listen to selfimprovement CDs and watch DVDs. As the father of Self-Actualization, Abraham Maslow, would say, “They must become all that they must be!”

Humility is a key quality and component of their character. They’re not driven by their egos and they don’t care a hoot about becoming arrogant.

They like achieving abundance and success, but they’re not compelled by an insatiable appetite for wealth and power. With their humility comes a sense of altruism and a desire to know they are making a positive contribution to society. They derive great satisfaction in serving the needs of their clients and residents.

They strive for excellence without being perfectionists. Perfectionism will drive you to distraction! Wanting to be their “personal best” and to challenge themselves away from mediocrity and

complacency describes these high achievers. They learn from their results.

To gain more understanding about the qualities and characteristics of outstanding property managers, I encourage you to read a book (or listen to the audio version) like “Good to Great” by author Jim Collins.

Property Managers are in many ways similar to companies and corporations.

Why do some stay stuck, implode or wither why others “make the leap” from being good to becoming great.

“How can good companies, mediocre companies, even bad companies achieve enduring greatness?” When that question is answered, it can almost always be applied to individuals and partnerships.

“For years, this question preyed on the mind of Jim Collins. Are there companies that defy gravity and convert long-term mediocrity or worse into long-term superiority? And if so, what are the universal distinguishing characteristics that cause a company to [become] great?” After an intensive 5 year study Collins and his team of researchers found some amazing similarities.

Those in the property management industry can benefit from insights and ideas that articles like this one or a book like “Good to Great” offers. Knowledge and awareness will provide the power and the “fuel” to help propel you to the next level of personal growth and rewarding achievements.

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Rental Housing Journal Colorado · April 2017