Colorado RHJ March 2018

Rental Housing Journal Colorado

March 2018 - Vol. 10 Issue 03

2. The Outdoor Furniture Market is Booming!

3. Almost 4,000 Jobs Available in the Rental Housing Industry

Chaise Lounges and Heaters are Leading the Way

5. Dear Maintenance Men

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Can a Landlord Say no Guns in My Apartments?

7 Types of Kitchen Countertops for Your Apartments

by Keepe.com

A

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ppliances aren’t the only thing that can make or break an apartment property’s kitchen: countertops take up the majority of the kitchen space, affecting the look and feel of the room but also its functionality.

In most cases, property managers and landlords tend to opt for countertop materials that either look appealing or that are most affordable or easy to repair. While this is understandable, it is important to keep in mind that the best kind of home design - from furnishing and decor to basic construction - should aim to thoughtfully combine aesthetics, practicality and affordability. The following guide reviews the qualities of common countertop materials and their pros and cons to help you choose the best material for your kitchen countertops. Quartz (or Engineered Stone) According to the National Kitchen and Bath Association, man made quartz (not to be confused with natural Quartzite) is now the top selling material for kitchen surfaces. This is likely due to the fact that it is more stain and scratch-resistant than granite, the second most commonly utilized material. Quartz is made by combining mineral fragments with heavy-duty resins. It is durable and chip resistant, and it’s fairly priced at slightly above granite but still below marble. It’s also considered to be environmentallyfriendly as it is created by combining waste stones and not mined. Overall, quartz is functional, affordable and ...continued on page 4

by John Triplett

G

enerally a private landlord can make a decision about whether to say "no guns in my apartments," unless a state forbids landlords from banning guns in apartments or rental property, according to Denny Dobbins, general legal counsel and vice president of CrimShield, Inc. State laws vary on the issue of what landlords can mandate regarding saying “no guns in my apartments,” and gun possession in general by tenants in privately owned rental properties.

Landlords and property managers need to be aware of whether their state or local government has specific laws, Dobbins said in an interview with Rental Housing Journal.

Only four states have specific statutes laws regarding guns in apartments and rental properties: • Minnesota says a landlord cannot

restrict the lawful carry or possession of firearms by tenants or their guests Minnesota Statute 624.714 • Tennessee: A private landlord can prohibit tenants, including those who hold handgun carry permits, from possessing firearms within a leased premises. Such a prohibition may be imposed through a clause in the lease. Tennessee Statute § 39-17-1307(b).

• Virginia public housing prohibits landlords from restrictions on gun possession for tenants – Virginia Rental Housing Act 1974 Tennessee 55-248.9.6.

• Wisconsin has a complicated maze of where a weapon can and cannot be possessed. Wis. Stat. § 175.60(21)(b).

All the other states are generally silent on the issue, Dobbins said, meaning that private housing providers can choose what they want to do on the

issue. California, Arizona, Colorado, Oregon, Utah and Washington are five of the states that are silent.

For instance, Virginia law says public landlords cannot use a prohibition clause in their lease, and it does not require that a gun-free zone sign be applied or at the property.

“Now in Minnesota they have a different law. Generally, private landlords may not restrict the lawful carry of firearms by tenants. All the other states are silent on whether private landlords can prohibit tenants from carrying weapons or possessing weapons on the property,” Dobbins said.

Unless your landlord is a governmental entity, like a city, or state, agency, public housing or receives state or federal funding for rental assistance on your property, the 2nd Amendment is unlikely to apply. However, private ...continued on page 6

Property Management Cyberattack Risks Overlooked, Underestimated

by Ellen Clark

T

he Grace Hill training tip of the week focuses on the issue of property management cyberattack which is often overlooked and underestimated.

Due to lack of federal oversight and regulation, property management companies’ cybersecurity programs may be relatively less developed and less sophisticated than in other industries.

This could make them a more attractive target for cybercriminals looking for an easy way to steal personal data.

We hear a lot in the news about data being exposed or stolen by cyberattacks in healthcare, banking and retail industries. But we tend to hear less

about such attacks in the property management industry, even though they have happened before and will likely happen again.

As a result, the risk of cyberattacks in the property management industry may be overlooked and underestimated.

Property management cyberattack risks overlooked, underestimated The risk of property management cyberattack is just as real as in other areas.

Unlike for institutions like banks and hospitals, there is no federal law requiring real estate and property management companies to implement cybersecurity programs to protect information and systems.

Because of this general lack of oversight and regulation, property management companies’ cybersecurity programs may be relatively less developed and less sophisticated than in other industries, making them a more attractive target for cybercriminals looking for an easy way to steal personal data.

Why would a property management cyberattack happen at your apartments?

What could property management companies have that cybercriminals want?

Isn’t the most desired data credit card numbers and financial information?

That turns out not to be the case. As Ryan ...continued on page 4

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Rental Housing Journal Colorado

The Outdoor Furniture Market is Booming!

Chaise Lounges and Heaters are Leading the Way

by Jeannie Flynn

U

nseasonably warm weather in the Southwest and below zero temperatures in the Midwest is keeping outdoor furniture an patio accessories on the minds of apartment managers and rental property owners across the country. Trends and popular styles are ever changing, but the infashion patio furniture look for this year is Nantucket, cool, carefree and comfy. We’re seeing navy blues, and cool grays popped with reds and yellows as the popular color pallet for many new projects.

Chairs Adirondack chairs, a classic look for Summer furniture, are more popular than ever. The 2018 version is no longer made from clunky, heavy wood.

Instead these popular chairs are now manufactured in a long lasting “faux wood” -- a high-density polyethylene (HDPE) product.

Available in traditional and contemporary designs, Adirondack chairs are comfortable, colorful and add additional seating to your pool, deck and other outdoor public areas.

Eco-friendly “faux wood” products

are typically made of recycled plastic.

This durable, long lasting material is easy to clean and will withstand the extreme elements, proving to be a smart amenity investment for your properties.

Whether Adirondack chairs are you’re choice or not, make sure that you always ask for commercial rated products that offer commercial liability insurance and warranties when purchasing patio furniture and accessories for your apartment community or commercial buildings.

Heaters are not always about heat.

Fire is alluring and draws attention to a location. Sometimes they are designed for ambiance or to be used as outdoor signage at night.

When shopping for heater, I suggest that you keep these questions in mind:

Heaters There are many outdoor heaters available on the market today. How to find the best product for your patio is the key. Whether it be electric, natural or liquid propane, there are a variety of options.

• Does the heater come with a commercial warranty?

• How many BTU's (British Thermal Units) does a heater offer? The lower the BTU's the less heat output?

• Does the heater come with a replacement parts program?

• If so how many years and what does it cover?

• Is there a local representative or dealer that can help you with any

issues that may arise?

Ask about the frames and finishes.

Are they stainless steel? If they are steel with a painted finish, are they powder coated or just painted.

When it comes to commercial rated heaters, price plays a huge part on the difference between something that is built to last or something that will need to be replaced after one season. You definitely get what you pay for when it comes to really inexpensive products.

In this case, if you are using a heater that is not up to code or considered to be commercial rated, you could be setting yourself up for a liability situation that could cost you much more in the long run.

CMS Commercial Furniture offers the finest selection in commercial rated outdoor furniture and accessories. We've worked with many hospitality and multi-family housing properties to create revenue generating spaces and provide custom designed products to offer that one of a kind feel. All of the above combined with flexible price points, has allowed us to find our niche in this industry. www.cmsfurniture.com 480-892-3212 info@cmsfurniture.com

•

Cyberattack ...continued from 1 Byrd, Vice President of Engineering for Entrata said, “There’s this myth that hackers are really interested in credit card numbers because you can buy stuff with them. The most commonly stolen information is not credit card numbers, but personally identifiable information (PII).”

If sensitive personal data falls into the wrong hands, it can lead to fraud and identity theft, which in 2016 was the most common reason for hackers to carry out a cyberattack.

Think of all the data you collect on any given day from a resident or prospective resident and the financial transactions you process— rent payments, deposits, and vendor payments. This is a treasure trove of personally identifiable information and a goldmine for cybercriminals who can use it to commit identity theft and fraud.

With its lack of sophisticated security measures and lots of valuable PII, the property management industry is the perfect target for cybercriminals.

If sensitive data falls into the wrong hands, it can lead to fraud and identity theft, which in 2016 was the most common reason for hackers to carry out a cyberattack.

2

legal and other associated costs of a data breach at around $150 per record, losing your residents’ data could have a significant impact on your bottom line as well.

As we rely more and more on digital data and interconnectivity, property management cyberattack and security is an issue to think hard about as you plan policies, processes and training for the year.

• It is crucial to have systems in place to prevent, prepare for and withstand cyberattacks.

• Train employees and managers on the risk of data breaches, and what they can do to prevent them.

Just like wearing your seatbelt, or locking your car, good habits are the building blocks of cybersecurity and are the best way to keep your residents’ information safe.

Ellen Clark is the Director of Assessment at Grace Hill. Her work has spanned the entire learner life-cycle, from elementary school through professional education.

She spent over 10 years working with K12 Inc.’s network of online charter schools measuring learning, developing learning improvement plans using evidence-based strategies, and conducting learning studies. Later, at Kaplan Inc., she worked in the vocational education and job training divisions, improving online, blended and face-to-face training programs, and working directly with business leadership and trainers to improve learner outcomes and job performance. Ellen lives and works in Maryland, where she was born and raised.

Think about cybersecurity risks Given the cost of a security breach — losing your customers’ trust and perhaps even defending yourself against a lawsuit—safeguarding personal information is critical. That risk doesn’t just come as a hit to your brand or reputation, either. With the average Rental Housing Journal Colorado · March 2018

Rental Housing Journal Colorado

Almost 4,000 Jobs Available in the Rental Housing Industry

by John Triplett, Rental Housing Journal

T

he rental housing industry had almost 4,000 jobs available across the county In January, according to a new apartment jobs report that will be coming out regularly from the National Apartment Association.

Property management jobs in the rental housing industry are the most in demand right now, according to a new apartment jobs report from the National Apartment Association Education Institute.

The new report, which will be coming out monthly in the future, shows almost 4,000 apartment jobs were available in January. The report shows the need for all job types and skills in the highdemand rental housing industry. And, it shows job growth in the industry is going to be strong in the future.

Jobs in property management, maintenance and leasing will continue to grow and “we’re not seeing that change any time soon,” said Paula Munger, Director, Industry Research and Analysis, for the National Apartment Association (NAA).

“Construction has leveled off a bit and I'm sure you've heard that starts are down. But I see that as more of a normalizing thing than anything. More and more people are making a choice to live in apartments,” she said in an interview with Rental Housing Journal.

“Our education institute is a credentialing body for the apartment industry. They hear often that one of the biggest problems keeping our industry leaders up at night is the difficulty in finding talent, attracting talent and retaining talent,” Munger said. “Labormarket issues are happening in a lot of industries, certainly with the tight labor market we have.”

So the NAA decided to partner with Burning Glass Technologies. “They have a labor-job posting database that is proprietary,” she said, and they can “layer on data from the Bureau of Labor Statistics (BLS). We looked at that and thought we could do something that is really going to help the industry and help benchmark job titles and trends as we go forward.”

First month of new jobs report in the rental housing industry Apartment jobs are listed as a percentage of the total real estate jobs in top metropolitan statistical areas.

The new national report shows 3,943 total job postings in the rental housing industry in the last 30 days, including 1,028 for property managers, 921 for maintenance and 721 for leasing. The new report shows Phoenix and Denver topping the percentage of apartment jobs across the country, with the following percentage of apartment jobs vs. total real estate jobs.

• Phoenix – 47% • Denver – 44% • Houston – 42%

• Seattle – 40% • Atlanta – 39% • Portland – 30% • Salt Lake City – 25% “So if I am a human resources executive at one of our apartment operators, I can look at this and if they have maintenance postings in, say, Phoenix, they know that they're going to have a lot of competition out there because that's where a lot of these positions are in demand right now,” Munger said.

“Right now it’s the first month of data. We don't have a lot of context yet for that number. But if you look at the whole real estate sector – what is called ‘real estate’ actually includes commercial real estate firms, rental and leasing - so it actually includes things like car rental companies. That number is around 12,000 jobs and about a third, the 3,943 in January for example, are in the multifamily industry.

“So really, what we did with this is to hone in on just the apartment industry.

So I think seeing that's a third of a pretty large sector is pretty impressive,” Munger said.

Breakdown of some of the 3,943 job postings in the rental housing industry in January • Maintenance technician – 528

vacant right now, and they actually partner with local universities, it will really help get the word out. They are talking about going even as young as high school because there are a lot of potential applicants out there who might not even know that this is the job for them,” Munger said.

What is the turnover rate like?

Munger was asked how turnover contributes to these current job openings.

“Certainly, new construction contributes to more jobs, but there is turnover in the existing categories in property management and in maintenance,” Munger said. “It certainly varies by market and individual company.

“I know it's something that most companies aren't willing to share that figure, for obvious reasons. With the labor market this tight, turnover is usually higher. If I can leave because there's a job across the street - it’s maybe an extra week of vacation or $10 an hour more - I'm going to go across the street. So it's very high,” Munger said.

West and Northwest have high demand In the West and Northwest markets, and others where there is a higher concentration of growth

in the apartment industry and new construction, there is a demand for jobs.

“So you have the West and then the South and then it goes up into the Southeast where you hit Atlanta. This is where the job growth is. This is where population growth is. Where you have more apartments, you're going to have more of these positions. So basically, it's driven by general job growth and then certainly the apartment industry growth,” Munger said.

Munger said they will put out a new jobs report regularly.

“We're going to run this every month from this database. We will use our own cleaning, getting rid of some of the noise in the data, and analyzing it and see how those numbers progress over time.

“But also at the end of each quarter we will be doing a little more analysis.

I think at the end of each quarter, it will be nice to have, "Well, what am I supposed to be looking at here and what are the trends and what are we seeing?"

See infographic on page 5 Resources: NAA Education Institute, National Apartment Association, Bureau of Labor Statistics, Burning Glass Technologies, Residential Property Management – Real Communities Real Careers The NAA Education Institute provides broad-based education, training and recruitment programs that attract, nurture and retain high-quality professionals and develop tomorrow’s Residential Property Management industry leaders.

The National Apartment Association is the leading voice for the apartment housing industry. As a trusted partner, a valued connector and a powerful advocate, the NAA is committed to serving 160 affiliates, more than 75,000 members and the 9.25 million apartment units operate globally.

•

• Leasing consultant – 452 • Community manager – 335 • Property manager – 324 • Assistant property manager – 186 • Maintenance supervisor - 108 Property management jobs in demand With 1,028 property management job postings, it is clear there is a need for more property managers in the rental housing industry.

Munger confirmed that, saying, “Exactly. That's also what the education institute is doing.

They're trying to form the next generation of leaders in this industry.

“So if there are that many property management jobs

Rental Housing Journal Colorado · March 2018

3

Rental Housing Journal Colorado

Countertops ...continued from 1 practical. The only downside to note is that some people find the look of quartz to be too uniform, which can miss the mark for those who like the natural irregularity of marble; this being said, new improvements in manufacturing technologies have actually allowed quartz production to become more advanced and create more sophisticated patterns.

Granite Granite is a natural stone, which is appealing for those preferring its naturally occurring, more variegated look. Granite is not as durable as quartz, but it is still scratch, stain and chip resistant. Manufacturers explain that darker-colored granite is denser, which increases its durability due to the fact that it is less permeable. For this reason, lighter-colored varieties might require sealing procedures, which also means that those varieties are going to be more demanding when it comes to upkeep over the years.

Solid Surface Solid surface is specifically made to resemble natural stone while being actually composed of artificial polymers and resins that are mixed with mineral dusts. This makes solid surface affordable and easy to maintain, requiring no sealing procedures and with most technicians having access to readily available materials for replacements and patchrepairs. Unfortunately, solid surface countertops are vulnerable to high heat and scratches: manufacturers encourage paying close attention to what the countertops are exposed to, especially when it comes to sharp tools

be recycled and its production features the use of numerous chemicals, making laminate not very “green”.

or hot cookware. Generally, scratches and surface damages can be repaired by buffing the surface, but this implies having to hire a technician on quite the regular basis.

Marble Marble is a timeless favorite when it comes to kitchen countertops because of the way it adds a unique touch of elegance. Marble is also fairly affordable - often being considerably cheaper than quartz and granite - and is widely available, which makes repairs and maintenance easy. Additionally, those who are passionate about cooking, baking and particularly pastry-making are drawn to marble’s naturally cool temperature. Unfortunately, marble is quite porous, which makes it vulnerable to scratches and permanent staining.

Opting for marble countertops means having to be very careful and mindful of which foods and condiments one might want to avoid exposing marble to, and always ensuring that surfaces are thoroughly cleaned.

Tile Ceramic tiles are easy to replace when broken or damaged, and allow for plenty of customization. One of the main downsides to ceramic tiles is the grout in between them, which tends to easily collects dirt and stains that are often hard to successfully clean off. While they’re easy to replace, it can be easy for tiles to exhibit chipping and cracking over time as a result of accidental impacts. Tiles are generally covered with a glossy protective enamel that can rub, chip or fade off over time, which is why it’s best to avoid aggressively scrubbing the tiles.

Laminate Laminate became quite popular during the 1960’s and 70’s, when the idea of “plastic everything” started taking over. Laminate is created by layering sheets of paper and resins, with pressed Kraft paper layers (the same paper material as grocery bags) being

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Butcher Block Butcher block countertops bring the warm and rustic look of natural wood to the kitchen. To make butcher block countertops, thick slabs of wood generally maple, bamboo, cherry or red oak - are assembled with heavy-duty glue, and their different arrangements create different surface patterns.

Butcher block is very difficult to care for as experts recommend avoiding covering the wood with sealant, to both maintain the natural look of the

wood but also to avoid exposing food to the chemicals used for sealing. The issue with having unsealed wood is that discoloration and even rotting can be very likely to happen due to water and moisture exposure. To best protect the wood, butcher block surfaces need to be oiled every six months: manufacturers warn against taking the “DIY” route as many have damaged their countertops by opting for cooking oils, instead encouraging the scheduling of regular oiling procedures by professional technicians. Even when oiled, wooden countertops are not scratch or heat proof: very minor damages can be fixed by sanding the wood and re-oiling the area - again, a procedure that is best left to professionals. Over time, they will develop a natural patina: some really enjoy the look of “aged” wood while others do not, so it’s important to keep this aspect in mind.

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the most common: it is inexpensive and extremely easy to replace on a tight budget. However, the advantages of low costs come with a series of disadvantages: laminate melts and scratches easily, and overall, opting for laminate countertops does not add value to the property. Laminate cannot

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MARTIN-RAY LAUNDRY SYSTEMS, INC. Rental Housing Journal Colorado · March 2018

Rental Housing Journal Colorado

By Jerry L'Ecuyer & Frank Alvarez

Dear Maintenance Men:

Dear Maintenance Men: I have a toilet that runs every ten or twenty minutes. I have replaced the fill valve, the flapper valve and I have even scrubbed under the rim! In other words, all the items I can think of that are replaceable in the tank are new. What else should I be looking at?

Sam Dear Sam: You replaced all the easy ones!! When all else fails on a toilet leak down issue; it is time to put on your rubber gloves and get an adjustable wrench. Chances are the problem lies with the Flush Valve Seat. The rubber flapper valve seals against the flush valve seat (the big hole at the bottom of the tank.) to either keep the water in the tank or let the water out of the tank. The seat may have a burr, crack or calcium deposits that allow a small amount of water to seep past the rubber flush valve.

Sanding the seat to remove the burr or calcium deposit is a short-term solution and rarely solves the problem for long.

A permanent solution is to replace the flush valve. Start by turning off the water supply, completely empty the tank and remove the water line. Remove the two or three bolts holding the tank to the toilet bowl. Turn the tank upside down and remove the large nylon or brass nut that holds the flush valve to the tank. Install the new flush valve.

Be sure the tank bottom is clean and no debris gets between the new valve’s rubber gasket and the tank. Tighten the large nut on the outside of the tank and you are ready to reassemble the tank and bowl and put the toilet back into action. When reassembling the tank to the bowl, install new rubber washers and bolts.

Dear Maintenance Men: I have a number of buildings that have old sliding windows and glass doors where the track is ground down to the point where the slider drops and barely maintains its position in the frame. Is there an insert or rollers that attach to the slider that elevates it and maybe even makes it easier to open and close? With the age of these buildings, I’m finding this is becoming a common problem.

Craig Dear Craig: The best solution would be to replace the window assembly, but that can be costly. What we do is install a nylon or vinyl track insert or rail cap (Brand name: EZ-Slide) and replace the wheels to match the new insert. The inserts can be found at local hardware stores or at a company called Prime-Line Products. or Blaine Window Hardware Inc.. These companies carry replacement parts for most windows. It might be best to call the company and tell them what brand windows you have and they might be

able to get you exactly what you need.

Dear Maintenance Men: While walking around my building, I found white powdery stuff growing on the surface of the building’s concrete foundation. What is this and do I need to worry about it?

Fred Dear Fred: The effect is called efflorescence and it is a natural occurring condition on wall or floor material such as concrete, brick and stucco. These porous materials absorb water and when the water evaporates, it leaves behind an alkaline salt. The efflorescence appears as a white, crystalline powder. Water is always the culprit. First thing to check would be sprinkler locations and if the spray hits the wall, relocate the sprinkler. Another problem is moisture wicking up into the stucco from the ground. Older buildings built before 1974 probably do not have a “weep screed” at the bottom of the wall. A weep screed is a metal flashing designed to act as a vapor barrier and transition between the concrete slab or stem wall & wood framing. Installing a weep screed after the fact is not feasible.

A solution would be to locate the transition between the slab or stem wall and the wood framing. Saw cut through the stucco to the base plate. Now fill the saw cut with a bead of silicone sealant.

The silicone will act as a vapor barrier, effectively stopping the moisture from wicking up into the stucco. Refinish your stucco and paint to suit.

WE NEED Maintenance Questions!!! If you would like to see your maintenance question in the “Dear Maintenance Men:” column, please send in your questions to: DearMaintenanceMen@gmail.com 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 Frank Alvarez is licensed contractor and 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 as well as being Chairman of the Product Service Counsel. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance. com For more info please go to: www.BuffaloMaintenance.com Jerry L'Ecuyer is a licensed contractor & real estate broker. He is currently on the Board of Directors and Past President 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.

Rental Housing Journal Colorado · March 2018

•

Apartment Jobs Snapshot February 2018

4,653 581

Total Job Postings in the Rental Housing Industry in the Last 30 Days (up 18%)

408

Leasing Consultant

533

Maintenance Technician

3,222

406

Community Manager

Property Management

Maintenance Supervisor

Asst. Property Manager

%

Job Postings by Major Category

157

Apartment Jobs of Total Real Estate Jobs in Top MSAs*

Denver

48%

Phoenix

45%

Seattle

41%

Washington 37%

1,019 1,227 976 Maintenance

232

Property Manager

Philadelphia 36%

Leasing

*MSAs with 100 or more apartment job postings

Days

High

To Fill Open Positions*

Construction Manager

44

Average for all Real Estate Jobs

37.7

**Based on historical information, 100 or more job postings

Low

28

Office/Admin Assistant

Spotlight Leasing Last 90 Days

Markets

With Highest Concentration

Detroit, MI Washington, D.C. Raleigh, NC Dallas, TX Houston, TX

Consultant

% of Apartment Job Postings

10-Year Job Growth Forecast (Statewide)

25% 23% 23% 19% 17%

4.1% 11.3% 14.8% 20.7% 20.7%

Top Skills

Specialized/ Required Leasing

Communication Skills

Customer Service

Writing

Property Management

Organizational Skills

Baseline

Sources: NAA Research; Burning Glass Technologies; Bureau of Labor Statistics (Data as of February 28, 2018; Not Seasonally Adjusted)

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

Earnings $39,235

Mean Salary of Postings

$59,360***

Mean Salary 2016 (BLS)

2.8%

Projected 10-year Change in Employment ***Represents all property sectors including office, retail, and other commercial uses

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

Guns ...continued from front page 1 housing providers who say 'no guns my my apartments' and prohibit tenants from possessing firearms in a residential rental unit, raises other constitutional and insurance issues.

Can a landlord say ‘no guns in my apartments’?

“Generally, the answer is yes" that a landlord can say 'no guns in my apartments.' But, I think we need to take the most practical approaches we can for all the issues surrounding the question such as having something in our lease that says, ‘Keep your weapons inside, and if you bring them onto the common areas we will evict you. If you keep them to yourself, safely tucked away in the private confines of your apartment unit, that's fine. We don't care.’

“For me, I would simply say to private landlords, ‘Look, the real issue here that you want to protect against is for tenants having guns willy-nilly, or just being carried around and shown off on the property common area.

“You can stop that kind of behavior cold in the common areas altogether so go ahead and put something in your lease to stop it. Prohibiting that kind of behavior will help protect against liability issues, insurance issues and 2nd Amendment challenges. What about prohibiting tenants from having guns in their apartment unit? Generally, a private landlord can do that too, but there are a wide variety of issues to think about when you do so.”

“Most states have not made a decision whether or not to prohibit the constitutional rights of someone who wants to have a weapon in their apartment unit for their own protection. What that means is that leaves it up to the private landlord to make a decision,” Dobbins said.

“Yes, a private landlord can say, ‘We prohibit all tenants from possessing a gun anywhere on the property.’ The private landlord can make that decision because there hasn't been a case yet that draws the 2nd Amendment into the private landlord decision-making process on the issue as has happened with Fair Housing issues like race, color, national origin, familial status, religion, gender, age, military status and Americans with disabilities.”

“That's going to pit the private landlord who says, ‘No guns in my apartments’ or weapon possession in the rented apartment unit against the tenant who says, ‘Well, I have a constitutional right to a weapon to protect myself.’ That case has not been heard yet.” Dobbins said he thinks we will eventually hear that issue because “someone is going to finally get that case to the Supreme Court.”

“From a practical point of view on the liability issue, let's say a landlord says, ‘No weapons possession in the rented apartment unit.’ The tenant moves in and he wants to possess a weapon in the rented apartment unit but he decides to live there without possessing a weapon. Now somebody breaks into his home and kills his wife and his kids and he didn't have a weapon to protect himself and his family. I don't want to be that landlord who says ‘No guns in

my apartments’ because I don't want to get sued because I took that personal constitutional right away.

“The landlord is going to say, ‘He agreed to it and he moved in.’ Of course, the person who had their family killed is going to say, ‘Yeah, but I still had a right and you made me not have a gun and took away my 2nd Amendment constitutional rights to protect my family.’

“I don't want to be that landlord,” Dobbins said. On the other side, if weapons are allowed on the property and someone gets killed or injured by a tenant intentionally, or even negligently, from a discharge of a weapon on the property, even while inside their own apartment unit, you know the attorney for the injured is going to go after the deep pockets of the landlord and manager and their insurance companies. It is an ugly Catch 22.”

Let’s back up and look at the issue if a landlord wants to say 'no guns in my apartments' If a landlord says "no guns in my apartments," Dobbins suggested looking at two 2nd Amendment cases he thinks makes the tenant’s right to a weapon in the tenant’s apartment unit a personal right, and thus, a protected class.

“Here's what we know. The federal government can impose some restrictions on guns. There have been a lot of debates over time as to what the 2nd Amendment means because it has a phrase in it regarding militias and it also talks about “the people’ right” as opposed to a “person’s right”. There's been this idea that the ability or the right to bear arms is not a personal right. Rather, that it is a right of the people for a prepared militia.

“This issue came up in a case in the U.S. Supreme Court in 2008. It's called the Heller Case. It dealt with individual Issues on how ‘no guns in my rights to possess weapons. The Heller apartments’ would be applied case made it very clear that there is an “You run into a few issues in terms of individual right to possess weapons as how that is applied in actual practice. opposed to just a right of the people for For instance, where you have a law the purposes of maintaining a militia. that says landlords can prohibit gun “The restrictions, Heller goes on to possession in an apartment unit in a say, deals with felons and the mentally lease, well, how are you possibly going ill. Such people have no personal rights to enforce that? You don't know what because those rights are stripped for a tenant brings into the property,” the mentally ill and felons. There still Dobbins said. remained a question after Heller. The “You don't know what they're going question after Heller was, ‘Well, that's to have in their home. You don't know great but what about the states? How if they have weapons in their apartment does the Federal law impact state laws unit. You can't really go in and inspect on the subject? ‘ for weapons. If they have a safe you can't “In 2010, the McDonald case went go look in the safe to see if they have before the Supreme Court and that weapons. Even if a state has a rule that dealt with the 14th Amendment, which says you can prohibit weapons, there's forbids states from passing rules to the no practical way to enforce that rule. contrary of the federal law. There were “The second issue then becomes basically four elements in McDonald really important, ‘Do you really want that they dealt with: whether there to be the case of first impression?’ could be a state prohibition against Meaning, do you really want to be the handgun ownership, whether a state landlord who takes on some attorney could force an annual gun registration and a 2nd Amendments rights person and impose a fee for annual registration, because the landlord says you can't require that guns be registered prior to have a gun in your own apartment unit acquisition, and whether a gun could to protect yourself? We have all seen be forever unable to be registered if lately that the crazy people, mentally ill the registration lapsed. Those laws people, criminals and terrorists can get were struck down in the McDonald guns. So, why should a private landlord case. Basically the opinion stated that have a rule where concerned tenants the 14th Amendment applies as to the cannot possess a gun in their rented individual right to possess guns and apartment unit? A private landlord that states cannot pass laws that infringe does not want to become the trial case upon that federal constitutional right. for a tenant who says, ‘Wait a second. I “So it seems to me that private have a 2nd Amendment right to carry landlords forbidding tenants from and to have weapons to protect myself possessing firearms in their apartment and my family.’ unit could be successfully challenged “The landlord says, ‘Well, having a based on the 2nd Amendment, I think, weapon on a private property is not a because Heller and McDonald make it a protected class like the protected classes personal right, which I think makes it a listed above. Having a right to possess a protected class,” Dobbins said. weapon in one’s apartment unit is not “I guess the simple answer is in those a current enumerated protected class,” five states that we mentioned…private Dobbins said. landlords in those states can choose “But, I tend to disagree with those what they want to do, but when a people who say it's not a protected private landlord chooses to ban tenants’ class because there is a constitutional ability to possess a firearm in their personal right to bear arms - period. The apartment unit they face the ugly music protected classes in the housing arena of liability issues and constitutional listed above are all federal mandates. infringement,” he said.

Well, an enumerated constitutional right in my mind is the same thing. A A proposed lease clause on how court case will determine that issue at landlords might walk the fine line some point.” of dealing with tenants’ possession

of guns in their apartment units Dobbins said he would propose the following lease clause for landlords to consider.

“For me, as a landlord, I would say ‘No weapons in the common area.’ This is something that I put in my leases and in my client leases. It provides reason, accountability and protections for the Landlord, the tenants and staff. It's a section called ‘Weapons’ for the lease and this is what it says: “Weapons of any kind, including, but not limited to, dart guns, air guns, BB guns, slingshots, handguns, rifles, or any mechanism that could be used to propel an object that could cause harm to person or property are not allowed in the common areas, are not allowed in the office, are not allowed anywhere on the premises outside of the actual unit, and are not allowed to be displayed, shown, exposed, demonstrated, or exhibited anywhere in the community premises, except in case of selfdefense or the need for imminent and immediate protection of residents’ life or property, or for self-defense or immediate and imminent protection of resident, resident’s occupants, guests or invitees life, or property. If a resident desires to possess a legal weapon in resident’s unit in that case the resident must safely and inconspicuously carry said legal weapon to and from the resident’s unit in a manner that resident ensures other residents and staff do not see said weapon. Illegal weapons are never allowed visibly on the property outside of the unit. If resident or resident's occupants do possess a legal weapon in the unit, resident shall be responsible for the proper and safe possession, handling and storage of said weapon. Landlord is not and shall not be responsible in any way to resident, occupants, guests, or invitees for any accidental, negligent, or intentional act involving any weapon or discharge thereof on, near, or off the property."

“That's my clause,” Dobbins said. “It covers a lot of ground because I don't want to take away tenants’ the right under the 2nd Amendment after the Heller and McDonald cases yet we need to make sure that tenants understand, in the common areas especially, if they brandish or show a weapon they will be evicted. However, I do not think it is a good idea to take away a tenant’s right to possession in their own apartment unit. That is just how I personally look at it. Each private landlord has to make a decision on this subject based on an analysis of all the factors set forth in this article. I suggest you talk to your attorney and your insurance broker to make your own decision on the subject,” Dobbins said.

What about restrictions on ammunition in apartments?

If a private landlord says 'no guns in my apartments' can the landlord say you can only have so much ammunition?

Or no ammunition?

“Yeah, private landlords can if they want to, but the same factors are at issue as for gun possession in a tenantrented unit.”

“Here's another issue to think about. ...continued on page 7

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Rental Housing Journal Colorado · March 2018

Rental Housing Journal Colorado

Guns ...continued from front page 6 Let's say a private landlord prohibits the possession of firearms and the private landlord calls their property now a ‘gun-free zone’ or a ‘weapon-free zone.’ In my mind, they've done exactly what the schools have done when you call a school a gun-free zone. You've just opened it up to the crazy people and you've said, ‘Hey, nobody here has weapons. Come over here and break in.

Come over here and cause havoc to our property because no one is allowed to have weapons here and cannot defend themselves. Come in and steal from them, rob them, do whatever you want to do with them.’

“I think that sets a very bad precedent and as a premises liability expert, I would say that by doing that you've now opened yourself up to say you called yourself a gun-free zone, when it is just not true. You've invited bad guys to your property and you intentionally, unknowingly maybe, but still intentionally put your residents at risk of harm. That's how I look at it.

“Once you invade someone's privacy in their home for their own protection and their own desires regarding the 2nd Amendment, now you're creating some issues that you don't really need to create. Even if a landlord has a prohibition for tenants regarding guns or ammo, it's not going to stop someone from having weapons if they want them in their apartment unit. So why have the rule at all? Why take on extra liability and extra problems when we know that possessing a weapon in one’s apartment unit is practically

unenforceable. A tenant should be able to possess a firearm if they want one, but if the tenant goes around bragging about it, or showing it off, that tenant needs to go.

“Now if a management company maintenance employee goes in and he sees a stockpile of ammunition or weapons I would immediately contact the authorities and let them deal with it as they will,” Dobbins said.

Should property managers have guns?

Two property managers in Portland were shot by a tenant following an eviction last year. Should property managers have guns?

“Well, I think we're getting into that debate a little bit with one of the remedies that's been brought up about possibly arming teachers. In Israel the government trains and allows trained teachers to be armed for many years now. Israel has no problem with gun violence in schools because everyone knows the teachers are not only armed but they're trained.

“Now that's something for management companies to decide because they're put in the pickle of, ‘Okay, if my managers and staff have a weapon and they use it, am I going to be sued?’ If they don't have a weapon and can't use it, am I going to be sued?

They're in a real pickle because if they do allow staff to carry they need to make sure those staff members are very well-trained and don't misuse that weapon.”

Rental Housing Journal Colorado · March 2018

“For me as a property owner I would not mandate my staff to possess weapons. However, I would not take my staff’s constitution right to protection away either. If the staff lawfully carries a concealed weapon, that is their choice.

However, I would not want them to carry openly. Again, you have to decide as a landlord how to handle this issue after consultation with your attorney and your insurance carrier.”

Summary: “There's something to the deterrent factor, whether you have a liberal slant on guns or a conservative slant on guns.

The facts are the facts. We just have to deal with them in a practical way. There are no easy answers as to what private landlords should do about whether or not they allow their tenants to possess a legal firearm in their own apartment unit in the face of constitutional rights, liability issues, insurance coverage and individual feeling about weapon possession. But, it is an issue that needs deep thought and consultation with professionals.

“I think we need to take the most practical approaches we can for all of these issues, having something in our lease that says, ‘keep your weapons inside’ and if you bring a weapon in the common area we're going to evict you. Or, no weapon possession allowed period and if we learn you possess a weapon on the property, we are going to evict you. Whatever your chose, make sure that it in writing and cannot be misunderstood. If you have something in your lease on the subject, make it

crystal clear.”

Resources: What Was At Issue In District Of Columbia V. Heller?, Minnesota Gun Laws: Banning Weapons at Private Establishments, Concealed Carry Laws and Property Management, Can My Landlord Ban Gun Ownership?

About Denny Dobbins: J.D. “Denny” Dobbins, Jr. is CrimShield’s general legal counsel. He brings more than 20 years of experience and a passion for protecting businesses, their customers and their bottom lines. Dobbins works with company attorneys to develop pertinent criteria to assess risk factors for granting access by individuals to customers and facilities. He also testifies as an expert on negligence, negligent hiring and negligent retention, especially relating to non-delegable duties. His job is to help CrimShield investigators understand the laws of every state, as each state has different statutes and legal terminology.

About CrimShield: CrimShield is a company devoted to protecting companies from negligent hiring and negligent retention as well as providing tools to stop management headaches, reduce customer complaints and eliminate lawsuits. This unique preventative approach to reducing criminal activity transforms the way companies hire and monitor employees, contractors, vendors and volunteers. CrimShield helps companies assess potential risk and implement easy-to-use solutions.

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