Rental Housing Journal Metro
January 2014 14 CLARK COUNTY RENTAL ASSOCIATION – President's Message
2 MULTIFAMILY NW – New Beginnings 4 The Housing Choice Act Of 2013, Otherwise Known As “The Section 8 Bill”
15 Everything You Need to Know about Aid Animals
6 DEAR MAINTENANCE MEN
16 RHA OF GREATER PORTLAND Happy New Year!
6 Security Deposits 8 SHOPTALK – Alive at Five??
17 How to Ensure a Successful Business or Property Sale in 2014
10 IREM – Communication on the Fly 11 POWER HOUR – Double Your Property Management Productivity... In 30 Days!
METRO PORTLAND/VANCOUVER
Professional Publishing, Inc www.RentalHousingJournal.com
PORTLAN
Published in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association
How Deep Are Your Pockets? Liability Insurance is Important to the Financial Wellbeing of Your Business
By Ken Stewart, Capital Insurance Group Director, CIG Commercial Lines Earlier this year, a federal court judge ordered RadioShack to pay almost $675,000 to a 55-year-old employee who claimed that he was fired in retaliation after complaining of age discrimination. In February 2013, a California-based real estate services company agreed to pay $50,000 to settle claims that it fired an employee rather than extending her medical leave while she recovered from a stroke. And last year, a Nevada-based supplier of onsite portable toilets paid $50,000 to settle claims of racial harassment and retaliation filed by an AfricanAmerican driver for the company.
$ Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327
Discrimination, wrongful termination, sexual harassment, hostile working environment, failure to promote – the range of grounds upon which employees can file suits against their employers is vast, and employees are suing more often and receiving greater judgments and settlements than ever before. The U.S. Equal Employment Opportunity Commission (EEOC) reports that almost 100,000 discrimination charges were filed in fiscal year 2012 against employers under EEOCenforced statutes, leading to more than $365 million in settlements and judgments. Jury Verdict Research reported a median compensatory award for EPL lawsuits in 2011 of $291,500 (Punitive Damages may not be covered in certain states).
Your business is at risk. Whether you are a huge conglomerate or a small neighborhood shop, if you hire and manage workers, you are at risk of being sued by an existing, former, or prospective employee. Even when you consistently treat your employees fairly and professionally, have employment procedures, policies, and handbooks in place, and have known your staff personally for years – it could happen to you. And even when employers can prove that they are not at fault, the costs to retain legal counsel, prepare a defense, and face possible litigation can add up quickly. According to recent statistics, defense costs for employment practices claims can exceed $100,000 per claim.
Current Resident or
How can you protect your business? Employment Practices Liability Insurance (EPLI) provides protection for an employer against claims made by past or present employees, as well as prospective employees who were never actually hired. It covers a wide span of employment-related allegations – including discrimination (age, sex, race, disability, etc.), wrongful termination of employment, and sexual harassment. Increasingly, in fact, investors are requiring companies to carry EPLI coverage, since they can also be held liable in suits relating to employment practices. It can happen to ANY firm, large or small. Small business owners may be tempted to think that only large companies are at risk of EPL claims. In fact, EPL lawsuits are among the largest and most common risks faced by companies both large and small. A 2009 discrimination claims survey* found that two out of three small business owners were concerned that employees might bring discrimination claims or other employmentrelated charges against them. And 60 percent were aware of new employment laws and legislation that could make it easier for workers to file an employment-related claim or lawsuit. The survey also revealed that 60 percent of those responding vastly underestimated how much it would cost to defend and settle an employment-related charge. In reality, it’s continued on page 3
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Top New Year’s Resolutions for Property Managers
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ere is a list of four resolutions that property managers should have on their list for 2014. None of them are difficult or require an immense amount of work, and all of them would bring rewards throughout the coming year. Start the New Year off organized. An organized landlord is a more profitable landlord. File your documents and paperwork logically and neatly in a file folder with brackets on each side of the folder. Two-hole punch the top of each document and file them in a way that works for you. Some landlords put all “pre-move in” documents on one side, and all other documents on the other. Being organized is simply a good business practice. Whether you manage one rental unit or a thousand, being organized and consistent will make you a better landlord and put more of the profit in your pocket. Aim for more work/life balance. Build down time into your schedule. When you plan your week, make it a continued on page 7
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