The Landlord Times Metro November 2013

METRO

November 2013

Published 17 Years

Professional Publishing, Inc

www.RentalHousing Journal.com

PORTLAND & VANCOUVER

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Monthly Circulation To More Than 20,000 In Portland/Vancouver Apartment Owners, Property Managers, On-Site & Maintenance Personnel Published in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association

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Changes Made to the Oregon Landlord Tenant Act HB 2639 The bill provides that a Landlord may “only” turn down tenants thereby protecting Section 8 and Section 42 tenants:

n the last Oregon legislative session (that recessed in July of 2013), there were significant changes made to the Oregon Landlord Tenant Act. This article will summarize the key changes to the Landlord Tenant Act as updated by Senate Bill 91.

HB 2639 was also passed in this session. This bill authored by House Speaker Tina Kotek basically adds a new classification of protection from discrimination for Section 8 and Section 42 tenants regarding their source of income.

“(A)Based upon the past conduct of a prospective renter or prospective lessee provided the refusal to lease or rent based on past conduct is consistent with

local, state and federal law, including but not limited to fair housing laws; or (B) Based upon the prospective renter’s or prospective lessee’s inability to pay rent, taking into account the value of the prospective renter’s or prospective lessee’s local, state and federal housing assistance, provided the refusal to lease or rent based on inability to pay rent is consistent with local, state and federal law, including but not limited to fair housing law.”

Additionally, the law provides the establishment of a fund (Housing Choice Landlord Guarantee Continued on page 7

Property Management Field Coaching How To Do It and Why It Works? ©

Y

Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327

ee the exact day and time you will be working with them. Ask them to prepare a schedule of the activities planned for the day to include

their appointments with future residents, resident customer care, and

Current Resident or

PRSRT STD US Postage PAID Portland, OR Permit #5460

26 Ideas for Running Your Business A landlord attorney on speed dial is a great idea.

Be the landlord that you would want.

Collect large security deposits, in guaranteed funds, PRIOR to handing over keys.

Determine rents by researching comparable properties in the same area.

Emotions should play a very small role in the management of your properties.

Familiarize yourself with the terms of the rental agreement and addendums.

Guaranteed funds are the most ideal funds.

By Ernest F. Oriente, The Coach {Article #211…since 1995} ou've hired a property management SuperStar and the classroom training for your new employee is finished. As their manager, is training really complete? Not a chance! Field coaching is the next step and the most important part of a well-rounded and worldclass property management training system. In this article you will learn the three steps for building a powerful field coaching program and once in place, this process will become a standard part of your training for every new hire at your property management company.

Planning your coaching day: Begin by telling your new employ-

The ABCs of Property Management:

follow-up contacts with apartment shoppers from the previous day or week. Next, discuss how each new future resident will be serviced and have your employee take you through their "perfect" office presentation, a mock telephone call with a future resident and a property tour.

Lastly, have your new employee return to your leasing office and practice completing all the necessary paperwork required by your company for prospect follow-up.

Tip From The Coach: Start your coaching day by explaining to your new employee that you are there to assist them be more successful and your time together will be a positive and productive experience. Ask them to first watch your "perfect" office presentation, your telephone demonstration and a property tour. This will make them more comfortable working with you and they will aspire to model your world-class skills.

Handling your coaching day: Continued on page 4

Hire only licensed and bonded contractors to do the repairs at your properties.

Issue termination and warning notices timely and correctly.

Join a landlord association.

Keep up with the frequent law changes.

Continued on page 5

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Multifamily NW President • Paul Hoevet Past President • Jeff Denson Vice President • Pam McKenna Secretary • Kirsten Bailey Treasurer • Chris Hermanski

Paul Hoevet

Multifamily NW President

H

ello Everyone. Are your budgets close to being done?

I can’t believe that it is November already. I hope you are all getting ready for the Holidays, as they are right around the corner. I swear that it was January just last week. In fact, it feels as if it was not long ago when I first walked into, what was at the time the office of MMHA, and asked if I could participate on a committee. The Executive Director, Deborah Imse, steered me towards the Maintenance Fair Committee and thus my commitment of volunteering at the associa-

16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 503-213-1281, 503-213-1288 Fax www.multifamilynw.org

President’s Letter tion began. That was ten years ago.

In what seems as a very brief time between then and now, I have watched our Association grow by leaps and bounds. I have witnessed the Association move twice to larger offices. I have seen the Association expand its reach and influence to other markets outside of Portland by creating Regional Councils. I have watched us increase our involvement with advocating at both the local and state levels. Multifamily NW’s membership has grown. The staff has grown. Our events are bigger, better and more comprehensive

than ever, and the demands on the Executive Director has grown as well.

Due to the tremendous growth that Multifamily NW has both experienced and is expecting, we needed to look at restructuring the staff so that the association can continue to offer the highest quality product to its membership. After much consideration, Multifamily NW has decided to add the position of Director of Operations to its team. By filling this position, the Association will allow our Executive Director, Deborah Imse, to spend less time managing the day to day operations at

Multifamily NW and more time on activities that directly impact the multifamily industry.

Multifamily NW is excited about this change and addition to the team.

We expect to have the position filled by mid-November and look forward to the efficiencies that a new Director of Operations will bring us. So when you see a new face in the Multifamily NW offices, take a moment to say hello and introduce yourself.

D&Z – What Were You Thinking Moments Suzy Manager - Dana, Fall is here and Winter is on the horizon, which means freezing temperatures. Last winter I received a call from my portfolio manager that something was serious wrong with my expenses over a two month period. It turns out that I had a frozen pipe that resulted in a water leak. This was not something that I had paid attention to, what do you suggest so that this does not occur this year?

Dana - Suzy Manager, you definitely don't want to hear from your portfolio manager or owner again this year wondering "What Were You Thinking?"

Frozen pipes or water leaks happen, it comes down to if you notice or not. As a manager these are the things that you will want to pay attention to.

1. Financials - Your expense cate-

gories will alert you to a possible water leak or additional issues that maybe happening on your property.

It is imperative that you closely review your Income & Expenses often. Sometimes you cannot see a water leak, but your financials will show you. When it comes to your financials, look at each expense line item and look for any number that looks high or out of place. Then, research that number to determine why it is high or low. Don't just assume what it may be.

2. Staff - I always talk about how important it is to work with your maintenance team to understand the liabilities of your property. The office team should meet with maintenance to review potential liabilities and what to do in emergency situations, such as a water leak. For example, where are the water shut off valves and how do they work?

Staff should know what to look for on their property walks and tours to ascertain if something needs attention.

Zach, on the maintenance side of things, what do you train your maintenance team on for looking for and determining water leaks and liabilities on the property? What would be some direction you would give the office team to look for on property walks?

I am a strong believer in constant inspections on the site here are a few things to remember: 1. Set aside a good chunk of time 45 – 60 minutes 2. Use a checklist so you don’t forget things to look for.

3. Walk where you don’t normally go – around the backs of buildings, between buildings, perimeter of property, and try to walk as close to the building as possible.

4. Don’t be afraid to get dirty (check lower crawl spaces, upper crawl

spaces), and bring a ladder and a flashlight to be able to find items in these dark places.

5. Don’t just write down what you see. Instead, create a system to be able to track and complete the work needed ASAP while it is small and easily repairable.

On another note from your conversation with Suzy, be sure to have an emergency response plan before the emergency happens. There are a couple of best practices that should be done in order to be prepared if and when emergencies do strike in the middle of the day or night.

FIRST: Develop an emergency safety binder that outlines what to do in case an emergency occurs. It should outline different emergencies and the protocol that needs to be followed in order to decrease the potential liability and damage from the emergency event.

For instance what should we do in case of fire, leak, earthquake, flood, bomb threat, terrorist attack, gang activity, domestic violence, or any other potential risk issue. Does your staff know what the corporate response should be with concern to residents, staff, and the media? This should all be outlined in the emergency safety binder. Also include the location of utility shut offs and the items needed to get those systems shut down; such as valve keys, fire system codes and passwords, main electrical panels, and local responders contact information.

Obviously, 911 should be called in case of emergency, but what about non-emergency, gas leaks, animal control, neighboring properties, motels, contractors, or anyone else you may need in a moment of panic to alleviate the pressure of the moment? Remember to develop this plan before the event, practice, and let all staff know where the binder is ... continued on page 11

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The Landlord Times - Metro • November 2013

Keeping Your Tenants to Produce More Profits

By Leonard Baron in Business from PropertyManager.com a Service of AppFolio

I

n the real estate game, when we are talking rental properties, one of the most important things that will help you earn more money is long term tenants. The longer the tenant stays, the lower the number of unit turnovers you will have.

Turnovers cost money! So as owners, we should do everything possible to keep our tenants – and yes, occasionally there is a bad one we might unfortunately have to “fire” and let vacate! So, let’s talk about a few ways to help the cause!

First, when a unit turns over, even if you have a new tenant whose lease starts the next day, it still costs lots of money. If you manage the rental yourself, you have to advertise, take calls, show the property, write up a lease, get it signed, collect a security deposit, deposit it in the bank, etc.

This all takes significant time and energy – and time is money!

Alternatively, if you have an outside party do it, it’s usually one-half to one full month of rent you need to pay as a commission.

In addition to the leasing process, you need to inspect the property before the prior tenant leaves, schedule the unit and carpets to be cleaned, have your handyman go in and paint, patch, repair, etc. and you must finalize the old tenant’s lease and security deposit. Then you’ve got to do a move in with the new tenant, document the condition, exchange repair requests from them, coordinate utilities changeovers, etc.

What a pain!

All in all, you’re probably going to spend several days of your time handling all these issues, probably a whole week of time or more once all is said and done.

Wouldn’t it have been easier to just keep your existing tenant in place?

Most apartment building surveys find that the main reason people leave their existing rentals is because of poor management. So that’s not being attentive to their issues, not fixing stuff that breaks, blaming the tenant for broken items, etc. So ten-

ants get frustrated and find a better place to live.

Therefore, to keep your tenants as long as possible, which also reduces your hassle factor on rentals, you need to treat your residents with respect. And, keep your properties updated and in good shape, repair items when they break and don’t point the finger at your tenants, handle issues professionally, and don’t let them even consider leaving! To further your devotion and appreciation of them, you might also consider minimal, if any, rent increases for great tenants who are responsible, take care of your property, and work with you if there are issues.

The longer your tenant stays, the more money you earn, there couldn’t be any more simple math than that!

The better you are as a landlord, the longer residents will stay and keep those rental checks arriving on time.

Good luck.

Leonard Baron is America’s Real Estate Professor – his unbiased, neutral and inexpensive “Real Estate Ownership, Investment and Due Diligence 101” textbook teaches real estate buyers how to make smart and safe purchase decisions. He is a San Diego State University Lecturer, blogs at Zillow.com, and loves kicking the tires of a good piece of dirt! More at ProfessorBaron.com.

www.RentalHousingJournal.com

The Landlord Times - Metro • November 2013

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Field Coaching ...continued from front page With practice now complete, you and your new employee are ready to serve the first future resident of the day. Ask your employee to introduce you so each future resident knows who you are, but this should be done with little fanfare and it is optional to share your job title. Allow your new employee to handle the entire meeting with each future resident, as the purpose of your coaching day is to observe them in action.

If necessary, tell your new employee that you will be happy to help them during any leasing/sales presentations, but only if they turn to you and ask you for specific feedback.

Otherwise, it is your role to observe them while making detailed notes to be reviewed together after the presentation is compete and each future resident has left your leasing office.

Tip From The Coach: Powerful field coaching is like learning to ride your first bicycle. At first you were scared, then you rode your bicycle with training wheels, then the training wheels came off and you zigzagged and wobbled around and finally you could ride your bicycle, all by yourself. Your new employee is experiencing the same emotions and just needs your kindness and support while they are learning the skills you expect. Great coaching means, "listening" three times as much as you speak. And if coached properly, your new employee will be "riding" their new bicycle, having great fun and generating profitable

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results!

Recapping your coaching day: After each future resident leaves your leasing office, spend the next 10-15 minutes recapping each presentation. Ask your new employee to describe for you exactly what went perfect and compliment them on their progress. Then, ask them to tell you exactly what they would improve when the next future resident arrives. Help them find ways to improve each presentation and watch to see their progress as your day with them continues. At the end of the day, ask your employee to watch you give one more perfect presentation, another telephone demonstration, a property tour and ask for their critique. This will serve as a powerful model for them to remember, long after this day is complete.

Tip From The Coach: After you invest time field coaching a new employee, take 15-20 minutes the very next day to draft a letter thankPGE_SpectrumAd_BW_5.pdf 1 8/30/2013 9:46:48 AM ing them for your time together. In

the letter, praise them for the progress they made and recap the areas you would like them to develop and/or improve. Place this letter in your employee's file and make a note in your appointment book to review it again in 30 and 60 days.

Remember quick follow-up and reinforcement for every new employee during the first 60 days is the key to their success with your property management company.

Want to hear more about this important topic or ask some additional questions about field coaching? Send an E-mail to ernest@powerhour.com and The Coach will E-mail back to you a free invitation to be a participant on a PowerHour conference call.

Author's note: Ernest F. Oriente, a business coach since 1995 [31,120 hours], a property management industry professional

since 1988--the author of SmartMatch Alliances--and the founder of PowerHour...[ www.powerhour.com and www.powerhourseo.com www. powerhourleadershipacademy.com and www.powerhoursalesacademy.com and www.pirmg.com ], has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars, traditional and Internet SEO/SEM marketing, competitive sales strategies, and high leverage alliances for property management teams and their leaders. He provides private and group coaching for property management companies around North America, executive recruiting, investment banking, national utility bill auditing [ www.powerhour.com/propertymanagement/utilitybillaudit.html ] national real estate and apartment building insurance [ www.powerhour. com/propertymanagement/insurance. html ], SEO/SEM web strategies, national WiFi solutions [ www.powerhour.com/propertymanagement/nationcontinued on page 5

The Landlord Times - Metro • November 2013

Field Coaching ...continued from front page alwifi.html ], powerful tools for hiring property management SuperStars and building dynamic teams, employee policy manuals [ http://www.powerhour. com/propertymanagement/employeepolicymanuals.html ] and social media strategic solutions [ http://www.powerhour.com/propertymanagement/socialmedialeadership.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox sales methodologies.

Recent interviews and articles have appeared more than 7000 times in business and trade publications and in a wide variety of leading magazines and newspapers, including Smart Money, Inc., Business 2.0, The New York Times, Fast Company, The LA Times, Fortune, Business Week, Self Employed America and The Financial Times.

Since 1995, Ernest has written 200+ articles for the property management industry and created 350+ property management forms, business and marketing checklists, sales letters and presentation tools. To subscribe to his free property management newsletter go to: www.powerhour.com. PowerHour® is based in Olympic-town Park City, Utah, at 435-615-8486, by E-mail ernest@powerhour.com or visit their website: www.powerhour.com

RADON = CANCER Test your rentals, protect your tenants.

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Landlady Katie ...continued from front page Label your income and expense accounts to optimize potential returns at tax time.

Maintain your rentals as if they are your primary residence.

Neighbors can play an important role in the management of your property.

Operate as a lawful business. Be professional and ethical in your practices.

Post the emergency locations of water shutoff, etc. for the residents, JUST-IN-CASE.

process.

When turnover happens, devote to the process the time that it deserves.

Xtra attention spent on Fair Housing laws can potentially save you thousands.

Yearly inspection of the property is an easy way to look after your investment.

Zap your headache and hire a property manager if the above is too daunting.

Quickly respond to maintenance requests.

Rent is rent; not security deposit, late fees, or some combination thereof.

Screen. Screen. Screen.

Tenants are our clients too.

Use state-specific forms, agreements, and addendums.

Verify ALL of the information on the rental applications that you

Katie Poole – Hussa is a Licensed Property Manager, Continuing Education Provider and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at Katie@SmartPM.co.

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The Landlord Times - Metro • November 2013

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Dear Maintenance Men:

By Jerry L'Ecuyer & Frank Alvarez (*California & Vermont (Jan 1, 2010), Maryland (Jan 1, 2012), and Louisiana (Jan 1, 2013) have adopted lead in drinking water standards that will go into effect prior to January 4, 2014.)

Why is lead in brass in the first place? Answer: Lead is in brass to make castings pressure tight. In the foundry process lead is the last element to solidify and therefore seeks and fills the microscopic voids in the brass. Bismuth will now replace lead in the foundry process.

Dear maintenance Men: I came across an article about a new law concerning lead in brass fittings.

I did not know any of my brass fittings contained lead. As an apartment owner, how will this affect me?

John Dear John: “No-Lead Brass” In January 2011, the Reduction of Lead in Drinking Water Act was signed into law, which will reduce the allowable lead content of wetted surfaces in drinking water pipes, pipe fittings, and plumbing fixtures. This law goes into effect January 4, 2014 and in the *states listed below, the law has already been adopted.

What products will be affected?

• Brass Ball Valves • Brass Check Valves • Backflow Preventers

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• Angle Stops • Straight Stops • Cast Brass Copper Fittings • Threaded Brass Fittings • Water Main Fittings • Faucets What products are not affected?

• Toilet fill valves • Tub & shower valves • Service saddles • Water main gate valves in 2” diameter or greater

How can I tell a lead brass product from a non-lead brass fitting?

Answer: Non-lead brass will have “NL” stamped on the fitting. “NL” signifies “Non-Lead”.

As an apartment owner, how will this new law affect me? Answer: Higher pricing. The “NL” fittings are more expensive to produce. If a job quote comes in significantly cheaper than competing quotes, the lower quote may be using illegal old stock.

Dear Maintenance Men: I am upgrading and modernizing

my rental units. Do you have any suggestions or trends that might be interesting? We are in a very competitive market and need to stand out.

Kyle Dear Kyle: A trend that has been around a while is painting one wall a bright color. A twist on this idea is to use flooring as an accent piece. Create impact by installing a bright colored floor or painting/staining an existing floor a new color. If you are in a very trendy area; stain and polish concrete floors. It will create an industrial look with a by-product of concrete floors being easy to maintain.

Dear Maintenance Men: We are getting ready to interview a number of building contractors that have bid on a project for a building rehab. What are some questions we should keep in mind during these meetings?

Mitch Dear Mitch: Understanding how a contractor works is a great way to eliminate continued on page 11

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The Landlord Times - Metro • November 2013

Changes...continued from front page Program) to offset damages caused

by Section 8 tenancies. Those costs must be over $500 and not exceed $5000.

Sources close to the implementation process of this bill, have informed me that there are still some open issues that need to be sorted out, those include the following: 1. If the Housing Authority does not want to make the voucher for the customary length of the lease, can the landlord refuse to accept the voucher holder?

2. If the landlord does not want to do the repairs required by the Housing Authority, can the landlord just say no?

3. What constitutes timely inspections and at what point can the landlord go ahead and rent a unit to a non- section 8 tenants if the inspections from the housing authority are not forthcoming?

SB 91 The landlord tenant omnibus act which is effective 1 January 2014 changed the landlord tenant act in the following ways: Renters Insurance (ORS 90.367, 90.100 and 90.465) • Before entering into a rental agreement the landlord must notify a tenant of the requirement to carry renters insurance and the amount of the insurance required. Renter’s insurance coverage cannot exceed $100,000 or the customary amount required by landlords for similar properties with similar rents (this allows landlords to require more on an expensive house that needs more coverage).

• The Landlord can only require the renters insurance if they carry comparable liability insurance.

The landlord must provide documentation of that insurance to any tenant that requests such. Such documentation (typically a certificate of insurance) can be posted in a common area, mailed, handed, or emailed to the requesting tenant.

• Written rental agreements must be updated to include the description of the requirements of this insurance subsection.

• Neither part is allowed to harass each other regarding the provision of renters insurance.

deposit held by the landlord. o A landlord may not require that a tenants to carry rental insurance if the household income is less than 50% of the area median income, as determined by the state housing council. o A landlord may not require a tenant to obtain or maintain renters liability insurance if the dwelling unit of the tenant has been subsidized with federal funds o Should a landlord file a frivolous claim against a renters’ insurance policy the tenant can recover from the landlord actual damages plus $500.

Tenant Screening and evictions (ORS 90.505 to 90.840) • When evaluating a tenant’s application a Landlord may not consider eviction histories if: • The evictions were dismissed, or resulted in a general judgment for the applicant, submitted before the application is tendered.

for that what would adversely affect: o The property of the landlord or a tenant. o The health safety or right to peaceful enjoyment of the premises by residents, the landlord, or the landlord’s agent.

service but including the last day.

For 72 hour and 144 hour notices the time period shall begin at 11:59 p.m. of the day the notice is both mailed and attached to the premises. The time period shall end 72 hours or 144 hours after the time started to run at 11:59. p.m. All other notices shall use 12 midnight for the last day.

Temporary occupancy (ORS R • elia ble a nd pro a c tiv e – 90.275) Housekeeping issues qua lity lamay nds c aanpe o A landlord allow R elia ble a nd pro aindic tiv e – • Notice days shall be calculated by Landscape Maintenance vidual to become a temporary m a inte na nc e c a re for use of consecutive calendar days qua la nds c a pe occupant of lity a tenant’s dwelling not including the initial day of y our pro p erty. continued on page 12 Specializing in-Multi FamilyR elia ble a nd pro a acinte tiv ena–nc m e c a re for Timing of notice periods (ORS 90.160)

Shopping Centers-Industrial

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Emphasis on swale vegetative corridor “ WPand eortla ’rePortland invPMortla este d in your Portland Metro Region Metro gion nd etro ndRMeRegion etro R e gion maintenance and phone: 503 692 6636 Feb, Apr, Phone: Jun, Oct, “ Wphone: eAug, ’re inv este dDec in your 503 503 692 6636 Phone: 503 692-6636 inv estm e692-6636 nt.” email: stevensn@easystreet.net management.

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Phone: 503 692-6636 phone: 503 692 6636 Phone: 503 692-6636 Em ail: stev ensn@ e asystre E- m ail: email: stev ensn@ e asystre et.net et.net stevensn@easystreet.net L C B 5056 o Arrest records that do not L CLCB B 5056 5056

• Arrest Records:

result in a conviction must be ignored as part of the application screening.

o The Landlord may consider criminal conviction and charging history if the conviction or pending charge is for: o An arrest resulting from criminal behavior: drug related crime, a person crime*, a sex offense, a crime involving financial fraud (including identity theft or forgery), or any other crime for which the applicant was convicted or charged

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

1/8 Page 4 7/8” x 3 5/8” On-Site4

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• Landlords may not: o Require that the insurance is purchased from a specific insurance company/agency. o Require that the landlord be named as additional insured. o Make a claim against a tenant’s renters insurance for costs that result from wear and tear, acts of God, or conduct by a landlord. o Make a claim unless the claim is greater that the security

The Landlord Times - Metro • November 2013

7

M

any apartment communities strive to create a welcoming office environment in order to put prospective residents at ease. From aromatic scents and freshly baked cookies to a warm fire, these comforts communicate a feeling of “home.”

However, when managers have an office connected to their apartment or even inside their apartment home, sometimes the lines between the professional office and an employee’s personal space can blur.

Q:

I supervise several apartment buildings in which many of my managers work out of an office that is attached to or inside their apartment.

Some of these employees have young children and pets. Often when I call these properties, I hear a dog barking or a child crying, and not always in the background. Sometimes I am even put on hold while the manager deals with an urgent child-related matter. I am concerned about these situations and how they are affecting residents and prospective renters. However, I’m not quite sure how to deal with this issue since these managers have a personal residence attached to or combined with their office.

A: You have a valid concern and it

needs to be addressed. Yet, much respect and consideration are required when dealing with people regarding their pets and children. - ESPECIALLY their children! However, your employees must be made to understand that you have certain expectations regarding office protocol during business hours. If your employees are regularly allowing their children or pets to be in the leasing office during these hours, then this is a disruption to the leasing process and an inconvenience to your residents or prospective renters.

Regarding pets, this could end up becoming a liability for your company, community and/or owner. Many people have pet allergies and/or phobias.

When someone is looking for an apartment, they do not expect to enter a leasing office; which is a “place of business,” and find themselves confronted by a dog. They also aren’t thinking that they have to be prepared with a medication to counteract their body’s response to an extreme cat allergy.

They are expecting a professional business setting where they plan to get information about renting an apartment.

As with any other office policy or procedure, something should be in writing regarding these issues so that employees will know what the expectations are. It might seem like “common sense” to you for your managers to keep their personal lives separate from their professional lives. On the other hand, when people “live where they work,” it’s not always easy to keep the lines clearly defined; these managers have an obligation to their families as well as to their residents and employer.

No matter what type of situation you are dealing with on site, it’s important to keep the lines of communication open. This will ensure that the on site managers understand your expectations and that you will provide them with the support they need. That way, they can handle their responsibilities at work, as well as at home, and put appropriate distance between the two.

After all, employee turnover can have an even greater impact on the dynamics of your community and your bottom line, than apartment turnover.

If you have a question or concern that you would like to see addressed next month, please ASK THE SECRET SHOPPER by making contact via e-mail or through the Shoptalk website. Your questions, comments and suggestions are ALWAYS welcome!

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Building Local Relationships to Increase Leasing

By Mary Girsch-Bock in Business from PropertyManager.com a Service of AppFolio

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he number one job of the property manager is to lease.

Whether it’s a unit in a multifamily complex or a single family home; the success of the property manager lies in large part in how quickly and how effectively they lease empty space. Today, there are more leasing tools available to property managers than ever before. But there’s also more competition than ever before. While some managers may find it relatively easy to lease quickly, depending on market conditions and location, leasing effectively means that the property manager is not just filling those spaces, but filling them with quality tenants who will most likely pay their rent on time, take care of the unit appropriately, and likely not skip out on a lease.

Wouldn’t it be great if you could have a steady stream of quality applicants simply show up at your doorstep?

Well, you can – if you know where to look. As a matter of fact, it’s likely they’re right next door, a few blocks over, or less than a mile away.

They’re the employees of local businesses, and quite possibly, your future tenants!

While online marketing, local ads and even a Facebook page can help drive traffic to your leasing office, building long-term relationships with area employers can help drive those quality applicants to your doorstep.

Here are some suggestions on how to establish these relationships and why building these relationships will help keep your vacancies low: Offer local business a rental discount. Even a 5% discount will be significant. By offering reduced rental rates or perhaps flexible leasing terms, you’re making a commitment to the company, who in turn, can help drive their employees your way.

Don’t think of the partnership just in terms of leasing. These same companies can also be your partner in community events such as a local food drive or a coat drive in the winter.

Partnering with area businesses will help raise your visibility in the community – a great strategy for lease-up or recently rehabbed properties.

Rather than approaching businesses individually, consider having a community open house that provides property tours and additional information on the property. Once this is done, approaching the area businesses will likely yield better leasing results.

By partnering with area businesses, property managers will not only increase qualified applicant traffic, but will also gain a stronger presence in the community for the foreseeable future.

Multifamily NW EDUCATIONAL OPPORTUNITIES November 5, 2013 1:00 PM - 5:00 PM ELEVATE: Oregon Landlord / Tenant Law Part I - Portland November 8, 2013 12:00 PM - 1:00 PM It's the Law Lunchtime Series: Winning Court Strategies: How Not to Lose November 11, 2013 9:00 AM - 1:00 PM ELEVATE: Oregon Landlord/Tenant Law: End of Tenancy - Evictions and Move Outs - Salem, OR November 13, 2013 6:30 PM - 8:00 PM November Landlord Study Hall - FED: Filing for Eviction in the Courts November 14, 2013 1:00 PM - 6:00 PM 3rd Annual Reverse Trade Show November 17, 2013 3:00 PM - 5:00 PM Annual Oliver Lecture feat. Susan Emmons: "Portland's Housing Crisis and How to Solve It" November 19, 2013 1:00 PM - 5:00 PM ELEVATE: Oregon Landlord / Tenant Law Part II - Portland November 20, 2013 12:00 PM - 1:00 PM November Membership Luncheon - Portland, OR

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November 25, 2013 9:00 AM - 1:00 PM ELEVATE: Fair Housing 250 - Portland December 10, 2013 1:00 PM - 5:00 PM ELEVATE: Fair Housing Class - Eugene, OR December 13, 2013 12:00 PM - 1:00 PM It's the Law Lunchtime Series: A Preview of the 2013 ORLTA: What to Expect in the Coming Year

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9

Institute of Real Estate Management

President • Christina DuCote’, CPM, RPA President Elect • Cammie Allie, CPM, ARM Vice President-Member Services • Kimberly Fuhrer, CPM Vice President-Communications • Jocelyn Burmester, CPMC Vice President Education • Kathi Pearce, CPM Vice President-Finance • Stephanie MacPherson, CPMC

InFocus – Newsletter

IREM Chapter #29 11575 SW Pacific Hwy Suite 210 Tigard, OR 97223 (503) 228-0002 (503) 406-2003 fax

D

ear IREM® Members, Friends and Affiliates: Are you done, or are you nearing the finish line with those annual budgets? Good for you!! The budget preparation and thought process that allows CPM®’s to create value for our clients is what sets us apart as leaders in real estate management. Just as you have been working diligently on those budgets, your Chapter leadership team of officers and committee chairs have also been working to create value for you-our members-- as well.

In August we held our 3rd Annual Golf tournament and had a beautiful day! Tiffany Boyson, with ABM Janitorial Services, Aaron Sawyer with Lovett Services, and Shelby Skubic with Western States Fire Protection, lead this great event and did a fabulous job pulling it all together.

Yo u r C h a p t e r l e a d e r s a l s o attended a Regional Retreat in Seattle in August, where we collaborated with Chapter leaders from Boise, Seattle and Anchorage, along with IREM® National Senior Vice Presi-

dent, Julie Muir and Regional Vice President, Mindy Gronbeck, to learn new skills in Leadership, Succession Planning, Generational Differences, Social Media and much, much more.

It was an invaluable session meant to strengthen our Chapter leaders and enhance our Member services and satisfaction.

In September, yet another Friend of IREM® hosted our Educational program “Protecting your Investment, Building Site Protection and Maintenance”. A huge ‘thank you’ goes out to Millennium Building Services for a great event! We were thrilled to welcome three new CPM®’s, to our IREM® family. Congratulations to Josie Woo, CPM®, Jaima Coleman, CPM®, both with Shorenstein Realty Services and Shelly Hillman, CPM® with Cascade Property Management. Congratulations!!

Also in September, we held our annual Strategic Planning Session with your 2014 Leadership as well.

Some exciting ideas came from our brain storming session and I can’t

wait to see these new ideas take shape in 2014 Stay tuned!

Do you or someone you know have a passion for legislative concerns? If so, we need YOU to join the 2014 team! We are currently looking for someone to fill the legislative committee chair position.

Please call me at 971.212.5369 or e-mail me at callie@fortresspropertymgmt.com.

Also in October, we honored our Friends of IREM® and thanked them for supporting our chapter year after year. We appreciate our Friends of IREM® who contribute so much of their time, knowledge, gifts and talents to our Chapter and its members.

We also offered continuing education for a presentation on Social Media for business. Always a high-light...we celebrated 3 new IREM® members!

Congratulations Nutan Engels, CPM®, Rebecca Yarger, CPM® and Rachel Payton, ARM®, and welcome to the IREM® family.

If you haven’t yet registered for this years’ Inaugural Gala, it will be a night like no other! Please join us as

we honor the hard work of our 2013 Chapter Leaders and FRIENDS, swear in our 2014 leadership team, while. Celebrating IREM®’s 80th Birthday. Let’s have a great time November 15th at the Jupiter Hotel!!

Register at www.iremoregon.org.

As we near the close of 2013, our signature event is also very near. The 26th Annual IREM® Forecast Breakfast will the highlight of the year— with a new format bound to entertain and inform. Purchase your table early, gather warm coats for Mittens and More and help us celebrate another great year of the Oregon-Columbia River Chapter No. 29.

Thank you to our members, FRIENDS and colleagues for allowing us the opportunity to serve you, educate you, entertain you and network with you in 2013. We wish you nothing but great success and happiness in 2014

www.RentalHousingJournal.com

Oregon-Columbia River Chapter No. 29 2013 Education Schedule Registration at www.IREM.org

Inaugural Dinner

November 15, 2013 Jupiter Hotel Come and help us celebrate the accomplishments of 2013 and the inauguration of our incoming 2014 Board, along with 2014 President, Cammie Allie, CPM® Bring a guest and your dancing shoes!

6:00pm-11 pm

Forecast Breakfast

December 5, 2013 Oregon Convention Center 2014 Forecast - all new format!! The not-to-miss event of the year!

7:00am - 9:30am

SUGGEST AN EVENT Chapter Office: 901 NE Glisan Street Portland, OR 979232 phone: 503-228-0002 fax: 503-228-3196 www.iremoregon.org www.irem.org

10

The Landlord Times - Metro • November 2013

Dear Maintinance Men ...continued from page 6 problems down the line. A few questions we feel are important and should be asked every time.

1. Ask about a written schedule such as start and end dates and more importantly, ask when major events are scheduled. For example: when are painters scheduled, when are the landscapers scheduled, when are the roofers scheduled, etc.? Knowing when major events are to happen will help you determine if the job is running on time.

2. Will the contractor, his employees or subs be at your building every day? This is important as any day that the job is idle is a day no work is being done and the project may be falling behind.

If the contractor or his superintendent is not on the job site, what happens if there are question about the project? How are problems resolved quickly?

3. Change orders.

Tame them before they start. There are almost always change orders in a major project. What are change orders?? A change order is a change in the scope of work not in the original contract. Talk to your contractor about worst case scenarios or hidden issue that may pop up during the project and how they will be handled 4. Ask how to reach the contractor

after hours and for emergencies.

5. Something to keep in mind: The lowest bidder is not always the most economical. The lowest bidder often uses change orders to bring his price up, sometimes surpassing the highest bidder.

The lowest bidder will often have issues complying with above questions #1, #2, #3, & #4.

QUESTIONS? QUESTIONS? QUESTIONS? We need more Maintenance Questions!!!

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D & Z ...continued from page 2 located and how to use it.

SECOND: I like to have an emergency zone at the property that holds the Personal Protective Equipment, valve keys, locate maps for utilities, and any other emergency or safety items that may be needed at a moment’s notice, so they can be located quickly and readily used while responding to the emergency.

See the picture for a nice Emergency Zone outline.

The goal should always be to prevent major catastrophic events from occurring through proper inspections and general awareness, but even the most prudent staff and

properties will on occasion be faced with an emergency. Remember to stay calm, have a plan, and work the plan. It will put your staff and residents at ease and likely save further damage.

Dana Brown and Zach Howell have been working and training Managers and Maintenance staff in the property management industry for 20 + years.

They are excited to give back and share the crazy stories that can only happen in our industry. We would love it if you would share your stories and “WHAT WERE YOU THINKING” moments with us as well as questions that you need answers to. Dana can be reached at: danabrown3321@ gmail.com. Zach can be reached at: zach@aminstitute. net

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Changes ...continued from page 7 unit. In order for this to occur the landlord and the temporary occupant must enter into a written temporary occupancy agreement that describes the temporary occupancy relationship. o This agreement is not a rental agreement or a lease o Does not have the rights of a tenant o The Agreement can be termi-

nated by: • The temporary tenant without cause at any time.

• By the landlord only for a material violation of a temporary occupancy agreement.

• Before entering into a temporary occupancy agreement a landlord may screen the proposed. temporary occupant for issues regard-

ing conduct • For a criminal record. (You cannot screen a proposed temporary occupant for credit history or income level.)

• A temporary occupant shall be treated as a squatter if the temporary occupant continues to occupy the dwelling unit after the tenancy has ended or the tenant has

revoked permission for the temporary occupant to reside with the tenant.

Noncompliance fees (ORS 90.302) and passing through of fees charged by credit card companies • It is now permissible to assess non-compliance fees for : o Noncompliance regarding smoking in nonsmoking units and in areas where smoking is not permitted. o Keeping an unauthorized pet capable of causing damage to persons and or property.

• A landlord may charge a tenant a fee for a second or third noncompliance of written rules and policies after a written warning notice has been issued. The fee may not exceed $50 within one year and $50 plus 5% of the rent for a third or subsequent noncompliance notice within one year. o Notices shall clearly detail the non-compliance and the penalties for non- compliance and subsequent non-compliance. o Landlords can assess a fee or terminate a tenancy for noncompliance with rules... but not both. continued on page 13

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Changes ...continued from page 12 • Processing fees charged to the landlord by credit cards can be passed through to a tenant when the credit card processing company allows the fees to be passed through to the credit card holder.

Abandonment (ORS 90.425) • There has been a subtle shift in this language. In section (2) the burden of responsibility has been solidly shifted to the backs of the landlords. The new language is now: A Landlord... is responsible for abandoned personal property and shall, store, sell or dispose of abandoned personal property as provided for in this section.

As you can see there were many significant changes. You may want to download the bills off of the internet to review or you can coordinate through the Rental Housing Association of Greater Portland (http://www.rhagp.org/) or Multifamily Northwest (http:// www.multifamilynw.org/) to get updated materials (i.e. forms and rental agreements) and classes, or call your favorite landlord tenant act attorney.

‘PERSON CRIMES’ DEFINED OAR 213-003-0001- ‘Person Crime’ is a designation given under Oregon law to certain specific offenses that involve offensive person to person conduct. Person crimes can be either person felonies or person misdemeanors. If someone

is convicted of a person crime, the designation itself has little impact at time of sentencing. Where these offenses really come into play is when an individual who has previously been convicted of a person crime is sentenced on a new felony charge. At that point any prior person crimes in

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The Landlord Times - Metro • November 2013

13

Clark County Rental Association President • Lyn Ayers Vice President • Blain Cowley Secretary • Patty Silver Contact • Lyn Ayers • Phone (360) 693-0025 • info@ccrawa.org

Treasurer • Janine Ayers

Membership Committee • Roger Silver

5620 Gher Rd., Suite H Vancouver, WA 98662-6166 (360) 693-CCRA www.clarkcountyrentalassociation.org

President's Message

I

negative or should we be thankful for what we have? After all, we could have half our units vacant. We could have the worst tenants on the planet. But we don’t, so why not consider ourselves fortunate?

Members of CCRA have a great support system. There are fellow members we can call when we have questions. We have mentors who have been around and have experienced many different situations others of us may encounter. The officers

t looks like our summer is over for the year. As I sit down to write this message the temperature is 53 degrees and the weather prognosticators are telling us more days of rain are coming. It appears that weather-folks are not the only ones with negative information. Our economists and the media are all worrying about a government shutdown leading to possible recession.

But does this affect those of us with residential property? Should we be

of CCRA can and do a lot of work to keep us up to date with what is happening. Our newsletter editor scours the internet searching for articles to keep us current. WAA keeps us informed at the state level and has members who advocate for us in Olympia. We should be thankful we heard about the organization and had the good sense to join.

If you have kids or grand kids, you will undoubtedly agree with me that ways of communication will rapidly migrate to the internet.

Obviously that will create a challenge for most of us who grew up before computers. Newsletters will be primarily available on-line (especially if the postal service goes away.)

The majority of questions and related responses will be handled over

the internet. If you are like me, I hear or read about these changes and I feel threatened. I don’t know how to do all these things and I’m not sure I want to.

That sums up the challenge for CCRA going forward: how do we accommodate technology demands for our younger landlords without leaving behind or inconveniencing our less-computer literate landlords?

What do we need to do to satisfy the needs of the next generation who prefer searchable newsletters on-line without losing our previous generation members?

I believe we make changes one step at a time, keeping in mind that a significant percentage of our members do not presently have internet continued on page 17

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The Landlord Times - Metro • November 2013

How to Get Your Residents To Pay Rent Online

By Mary Girsch-Bock in Technology from PropertyManager.com a Service of AppFolio

W

hile many property management companies have been offering an online rental payment option to residents for years, there are just as many who currently do not. While technology savvy individuals often jump at the chance to pay rent online, many management companies that currently do offer this option have

found that only a fraction of their residents actually utilize an online rental payment option.

The benefits are clear to property management companies; online payments tend to be more timely, the hassle of locating lost checks, stamping checks, and making bank runs becomes obsolete, and the time spent collecting on NSF checks is reduced

to zero.

So if you’re considering offering this service to your residents, or want to increase the number of residents that take advantage of it, consider the following.

Appeal to procrastinators!

Being able to pay rent online allows residents who typically wait until the last minute to pay their rent the opportunity to do so – without incurring a late charge in the process.

Inform residents of the advantages of paying online.

Advantages include the ability to view a comprehensive rent payment

• Driveways • Parking Lots

history, and the option to schedule the rental payment. Some services offer an automatic debit from your account monthly, so residents can simply set up the amount and the date of the direct debit, and not have to think about it again.

Consider offering an incentive for signing up.

Everyone likes to get things for free, so you may want to consider dangling a $5.00- $10.00 gift card to a neighborhood merchant as an incentive. continued on page 17

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The Landlord Times - Metro • November 2013

15

Rental Housing Association of Greater Portland

President • Elizabeth Carpenter Past President • Phil Owen Vice President • Robin Lashbaugh Secretary • Lynne Whitney Treasurer • Jon Moon Office Manager • Alita Dougherty Member Services • Cari Pierce Bookkeeper • Pam Van Loon

Elizabeth Carpenter

10520 NE Weidler Portland, OR 97220 (503) 254-4723 • fax (503) 254-4821 info@rhagp.org http://www.rhagp.org

RHAGP President

Who are RHA Members & Who is the RHA? The Rental Housing Association of Greater Portland numbers more than 1800! Members have joined together since 1927 for the purpose of improving the success of the rental housing industry, to enhance the reputation of “landlords” by promoting professional management practices, and assisting local public officials in various community endeavors relating to public and/or private housing.

Why serve as a RHA Board Member? As President of the Rental Housing Association of Greater Portland, I have the privilege and honor to lead the Board of Directors.

November is always a busy month for the Board: Recruiting wonderful people to serve on the board and providing member value while taking care of the business of running the non-profit organization. Apart from business, the board is made up of landlords and partners whose business supports landlords. We participate in committees, plan projects together and enjoy each other’s company. It’s fulfilling, and fun, to talk with someone who gets the busi-

ness of rentals.

Bringing member value. The RHA is fortunate to have Members reaching back twenty, thirty even forty years or more! Some of you may not realize all the benefits you have access to. Your 2013 Board has been diligently bringing in new members.

You may be asking, how does this help me? New members bring interesting questions, wonderful energy and an eagerness to participate.

Engage with new and existing members at dinner meetings, mentoring sessions the last Thursday of each month, and by joining a committee.

Increasing membership participation. RHA is a dynamic organization which supports the entire rental housing industry throughout the state of Oregon. It provides industry insights and direction for the media.

It gives members a heads up to legislative changes that affect members.

Active members inherently learn more about the business of being a landlord. Members have great conversations with new and different points of view. Come share the load; as members we have the opportunity

OREGON RENTAL PROPERTY OWNERS COME JOIN THE RHA TODAY! ³ Your voice heard: State and local legislative representation. ³ Education: We offer a wide variety of monthly training programs, members get a significant discount on classes. ³ Receive a monthly subscription to the Update: The Update, our newsletter, contains up-to-date information on landlord/tenant issues and legislative information.

³ Substantial discount on rental forms: 60% off all rental forms and books for members. ³ Fully staffed office: Our friendly office staff are here 9am-5pm, Mon-Fri happy to help you with your property management needs.

to help other landlords. Get involved at whatever time level is comfortable. The more members who participate, the less time it will take for each member. This provides a higher good for all members.

Special thanks to Dan Saltzman, Portland Housing Bureau City Commissioner, for coming to the October dinner meeting. Excellent questions were raised and answered.

In the words of Cindy Robert, RHA lobbyist and Owner of Rainmakers, “None of us is as smart as all of us.”

We’re all looking forward to joining together to be the smartest group of landlords we can be.

Since 1927, the Rental Housing

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RENTAL HOUSING ASSOCIATION OF GREATER PORTLAND Phone: 503-254-4723 Fax: 503-254-4821 16

The Rental Housing Association of Greater Portland 10520 NE Weidler Portland, Oregon 97220

V i si t us at w w w .R e n tal H ousi ngj ournal .com

³ Savings on Tenant Screening: Report charges are automatically posted to your interest free account.

Regular Membership for up to 4 Units: Annual Dues $99, Set up fee $25 Regular Membership for 5 or more Units: Annual Dues $110, Set up fee $50, $1.50 per Unit (Annual Dues + # of Units not to exceed $250) Affiliate Membership (Advertise to our landlord members): Annual Dues $220, Set up fee $50 Dual Membership (Regular Membership+Affiliate Membership): Annual Dues $255, Set up fee $50, $1.50 per Unit (Annual Dues + # of Units not to exceed $285)

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Visit us at www.erentalservicesinc.com The Landlord Times - Metro • November 2013

Presidents Message ...continued from page 14 capability. When we move in the direction technology is taking us, we can’t ignore our more senior landlords.

Several years ago we migrated to a full-color newsletter. We continue to receive positive comments about it both from inside and outside our industry. A couple of years later we substantially upgraded the CCRAwa.org website, but there remains a hole in its utility for our younger members. We do not have a working Members’ Only section.

Addressing this need has been a topic of discussion for more than a year. Recently the board decided to move ahead and address this short-

coming. We will soon announce the effective date, what it will look like, how to log in and where you can find it. This will be followed fairly soon by actually building the Members’ Only section. Keep tuned.

So as our ways of communication evolve, hang onto your optimism.

This is just another example of the horse and buggy being replaced by something new.

I hope you agree that there are several reasons to be optimistic about the future of landlording in Clark County. This is an exciting time. Enjoy the ride.

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Pay Rent Online ...continued from page 15 Make it a contest.

Enter the names of all those signing up for online rental payments during the month in a drawing. Dinner for two or a $50.00 gas card may persuade reluctant residents to sign up.

Make it required.

If none of these work, consider implementing online rental payment as the required standard in payments. Rather than making it a requirement for all residents, impose the new standard on all new resi-

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dents and establish a date that current residents must comply. You could also tack on a fee to residents who choose to continue to pay their rent with paper checks. Be sure to check with local and state agencies to determine if your property management company can legally impose this restriction on residents.

While some residents will always prefer to pay rent by check or money order, others find the ability to pay rent quickly and easily online an added bonus, not a detriment.

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