Metro Rental Housing Journal April 2015 by Professional Publishing, Inc

Rental Housing Journal Metro

April 2015

3. Student Loan Debt Affects Real Estate Investments in a Big Way 4. Is the Flooring in Your Rental Safe? 5. Behind the Leasing Desk with Heather Blume 6. April is Fair Housing Month 7. Tenant Screening – Between a Rock and a Hard Place 8. Angie’s List Shops The Market; Finds Lead-Paint Misinformation & Violations 9. What Does Your Workplace Culture Say About Your Organization?

16. Ask The Secret Shopper 17. Accelerating Housing Costs Have Renters Feeling the Squeeze 18. Energy-Efficiency Improvements Can Help Existing Multifamily Properties Remain Competitive 19. Spring Cleaning for Property Managers 20. Taking A Pulse Check On Your Attitude 21. 10 Cities With Skyrocketing Rent 22. Can You Afford to Lose $230,400 in Leasing Revenue?

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC

PORTLAND/VANCOUVER

Published in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association

Property Management of Section 8 and Housing Choice Voucher Programs By Marc Courtenay

f you’re looking for residents who have incentives to pay their rent on time each month look no further. Those who qualify for federally sponsored housing assistance programs backed by the only organization that can legally print money… the federal government…awaits you! The oldest program has been around nearly 80 years! Section 8 of the Housing Act of 1937, authorizes the payment of rental housing assistance to private landlords on behalf of approximately 3.1 million lowincome households. It operates through several programs, the largest of which, the Housing Choice Voucher program, pays a large portion of the rents and utilities of about 2.1 million households. The US Department of Housing and Urban Development (HUD) manages the Section 8 programs. One property manager I interviewed who participates in the Housing Choice Voucher program said she feels secure knowing the government funds will be deposited in her client’s bank account every month. She explained the HUDmanaged program was meant to pay for “a portion” of the rents and utilities of those in its care. But often, as she explained, payments are greater than competitive rental prices. A Real-Life Example of How Section 8 Renters Pay Off for Landlords ...continued on page 15 Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007

Oregon Markets Showing Increasing Signs of Strengthening,

Says Veros' Latest 12-Month Forecast Update

eros Real Estate Solutions (Veros), an award-winning industry leader in enterprise risk management, collateral valuation services and predictive analytics, reports that the residential market is gaining momentum with a greater percentage of markets expected to increase in value over the next 12 months, moving upwards to 86% from last quarter's 82%. The latest VeroFORECAST also found two interesting

market areas, one on each coast, that reflect both the predicted top and bottom growth areas in the residential market. The national forecast grew to +3.2% annual appreciation, increasing over the previous VeroFORECAST rate of 2.4%. It is the eleventh consecutive quarter in which the index has shown forecast appreciation, with the pace now indicating an upward ...continued on page 11

Energy-Efficiency Improvements Can Help Existing Multifamily Properties Remain Competitive

+ In 2014, Energy Trust of Oregon Incentive Programs Saved Over $4.6 Million for Multifamily Property Owners

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It is expected that during 2015, the millennial demographic will have $2.45 trillion of purchasing power worldwide across multiple channels. This demographic is environmentally conscious, technically savvy and community oriented -and the Portland metropolitan area is the community where many call “home.” Portland is estimated to add

112,000 new apartment units over the next 20 years. Over 7,000 apartment unit permits were granted in 2014, and approximately 26,000 new units are in the current pipeline. With evidence of a robust and healthy construction market, there’s no better indication that Portland’s multifamily market is in its prime. Attracting younger residents to ...continued on page 10

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Student Loan Debt Affects Real Estate Investments in a Big Way By Clifford A. Hockley, President Bluestone & Hockley Real Estate Services

ally did everything right. She was accepted into her first choice college and received a first rate education to pursue her dream career. She filled out the student loan applications like everyone told her to; after all, she couldn’t afford the $90,000 degree without it. When she graduated, she started out entry level in her chosen field, making near minimum wage which just covered her rent (with three roommates) and living expenses. She deferred payment on her student loans for 2 years but after watching the interest inflate her debt up to $170,000 she had to move back in with her parents to concentrate on paying it off before it got any worse. Then her boyfriend proposed to her. He talked about wanting to buy a house and have a family, the whole American dream, but though he knew she lived with her parents in order to pay off her student loans, he didn’t know the extent of her situation. She knew her debt would make buying a house impossible, so she called her loan provider to see if she could get her interest reduced. They said no, she already had .25 for direct

stances make it unlikely that the borrower will ever be able to repay. Asking nicely won’t make it go away.

deposit taken. Her interest was 8%. She could barely make the minimum required monthly payment to take care of the interest let alone get down to the principal. Worst of all, when she told her fiancé this, he withdrew his offer; he didn’t want her bad debt ruining his good credit. According the National Association of Consumer Bankruptcy Attorneys, seven out of ten college

seniors who graduated in 2012 had student loan debt, with an average of $29,400 per borrower. Currently 29 million of 86 million Americans aged 20 – 39 have some level of student debt, which translates into 16.8 million households. Because federal law treats student debt as non-dischargeable in bankruptcy proceedings, borrowers can be burdened with this debt for a lifetime even if circum-

How does this affect real estate investors? In a 2014 blog post, Rick Palcios Jr. and Ali Wolf of John Burns Real Estate Consulting, LLC, estimated that 414,000 real estate transactions would be lost in 2014 due to student debt. At a typical sales price of $200,000 for an entry level home, they calculated that out to $83 billion in lost sales volume or 8% of the total marketplace demand. (8% of 20 -29 year olds usually buy a home each year, which would be equal to 1.35 million transactions a year.) They calculated that 5.9 million households under the age of 40 pay over $250 a month in student loans as compared to 2.2 million in 2005. As a percentage, that is from 22% in 2005 to 35% in 2014. In that same eleven year timeframe, student debt increased from 241 billion to between $1.1 and $1.2 trillion dollars, which is even greater than current credit card debt. continued on page 12

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RENTAL HOUSING JOURNAL METRO President - Christian Bryant, Vice President - Michael Ross, Secretary - Jill Maricich, Treasurer - Maren Winters

Is the Flooring in Your Rental Safe?

By Christian Bryant

am sure you have by now noticed the reports of Formaldehyde being emitted from manufactured flooring imported from China. As a landlord this obviously could be concerning. Should we be worried about being sued by our tenants or should we be worried about being forced to take on the large expense of replacing the flooring in our units? As of right now it is too early to answer these questions, but it is worth keeping a close eye on as a landlord with manufactured flooring in your units. If you or your tenants are concerned then the first step is to test the air inside the unit. You can purchase a test kit for around $80. If you happen to purchase your flooring from Lumber Liquidators then they will actually give you a testing kit for free. If the test comes back positive for Formaldehyde then I would suggest that you take this health risk seriously and replace the flooring if that is the suspected cause. Formaldehyde is actually used in the vast majority of manufactured flooring, but that is

typically only emitted into the air for a short time after installation. The flooring with the problem has come from certain manufacturers in China according to initial reports. When installed, the flooring has an ongoing reaction to the glue used that continuously emits Formaldehyde into the air. This obviously causes a health risk as it can build up and eventually poison your tenants. If you have been watching the reports on this it is gaining momentum and there are law firms that have already started building class action law suits against those they feel are responsible. As with many things regarding public health in this technological age, it is unlikely to just go away any time soon. This will just add momentum to the trend that has been gaining a lot of momentum over the years of everyone preferring things that are all natural. From the food we eat to the clothes we wear there has been a growing and now very large segment of our nation’s population that prefers everything to come from natural sources. Within my company we look at this as a possible tipping

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point in the housing industry as a whole when it comes to using natural materials. There may be a fast approaching day where units with natural materials rent for a premium. So it might be worth trying to get ahead of this curve and sourcing natural materials to use when you are doing the next renovation or a turn over that includes replacing materials. Within my company, www.

CBPropertyManagement.com, we have recently spent close to $150,000 on natural, reclaimed wood floor planks and natural wool carpeting. We did this to help get the costs of using these materials down to that of synthetic materials for our clients. Since these materials are typically the more expensive ones to purchase we bought them in bulk straight from the manufacturers so that our continued on page 10

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Rental Housing Journal Metro • April 2015

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Behind the Leasing Desk with Heather Blume Dear Heather, I've been in my current job for about 6 years now and can't seem to move any further up in my company than the role of a property manager. I think I'm good at my work and my employees seem to like me, but when the opportunity to move up happens, my regional always seems to find someone "better qualified." I don't want to have to leave my current company, but I feel like I've earned a promotion and I'm getting a little burned out where I am now. What should I do? -Looking for a Ladder Dear Looking for a Ladder, I think that it shows a lot of dedication to your company that you have stayed with them for 6 years. In the world of property management, that's a couple of lifetimes for some of us. It can be a very difficult experience for many of us to be passed over for promotions we think we have earned, so I want you to know what you're going through is incredibly common. My first real question to you is, have you talked directly to your regional manager about this yet? So many times, the

real problem is that we don't know what other people are thinking or wanting, and so we can't meet their needs. Everything past this point in my reply is based on speculation and experience, so take it for what it's worth. As a former hiring manager, one of the things I can tell you is that why you're being passed over could be due to a number of reasons. Perhaps, as you've been with your company for a while, paying you to do a higher end job would be more expensive to the payroll right now, and for many companies, they just cannot afford to pay the internal promotion 5 or 6 thousand more a year than they would have to pay an external new hire. Another reason you may not be getting moved up is that there's no one who can fill your shoes. If you are very good at your job, then it's hard for a regional manager to take the risk of someone new behind your desk who might not be able to do the job as well as you can. In the current market, occupancy is EVERYTHING, and if you've got it, that's not a gamble most regionals will take. The good news is that if this is the

reason, then you've got a clock on the obstacle, since the economy is bound to improve AND you can mentor up your current assistant manager so that he or she could step in to your shoes more quickly. Also, your regional manager might not yet see the skill set in you to move you up in the company. One of the easiest ways to get noticed and move up is to either volunteer for new projects that you have a skill set well suited for or to set public goals and meet them. Both are actions that regional managers respect and respond well to. Step up to the plate and mentor the younger managers in the company, or offer your marketing talents to sister properties that are maybe not having as good a run in the current market as you are. If you've found a company that you like, I encourage you to talk with your upper management. After all, there is a reason you're still working for them after 6 years, and from their point of view, they have a lot of time and energy invested in you. Ask your manager for a clear path of what it's going to take for you to move up with the company and then

formulate your goals around that path. It's hard not to admire people who are willing to do what it takes to get the job done. Don't let your burnout get the better of you and your temper. Open up your communication with your regional manager and find a new way to love your job until you can ascend within the ranks of your company! Good Luck! Heather Frustrated with Fibbing Dear Heather, At our property, we are asked to do weekly shops of our competing properties. I'm supposed to call them and get how much they are renting all of their apartments for, if they have any specials, what their traffic has been like, and what their current occupancy is. For 2 of my comps, this is really easy and they're really nice to me. 1 of the other ones never answers their phone, but sometimes if I fax them our sheet, they will return it. The other 2 flat out refuse to give us any information or they lie to us ...continued on page 13

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RENTAL HOUSING JOURNAL METRO President: John Sage • President Elect: Ron Garcia • Past President: Elizabeth Carpenter • Vice President: Robin Lashbaugh Secretary: Lynne Whitney • Treasurer: Elaine Elsea • Office Manager: Cari Pierce 10520 NE Weidler Portland, OR 97220 (503) 254-4723 • fax (503) 254-4821 info@rhaoregon.org • www.rhaoregon.org.

President’s Message: April is Fair Housing Month

By John Sage

hy is April the designated month that we observe this recognition of Fair Housing? On April 11th, 1968, President Lyndon Johnson signed the Civil Rights Act of 1968, an expansion of the Civil Rights Act of 1964. The 1968 act expanded on previous acts and prohibited discrimination concerning the sale, rental, and financing of housing based on race, religion, national origin, sex,(and as amended) handicap, and family status. Title VIII of the Act is also known as the Fair Housing Act (of 1968). Understanding the rules and how they apply to your rental property can be pretty complicated. We are told that as long as you apply the same criteria to all of your applicants you should be ok. But is that answer enough to make you feel that you are protected and not doing something that might put you at risk of a lawsuit?? Even if you follow all of the rules can you still make an inadvertent comment such as, “Since you

have small children, I would suggest that you rent the bottom floor unit.”? Could this be considered steering? Now you may have a complaint filed that you have to deal with? Best to get the latest information to make sure that you are following the rules and applying them correctly for your business. We at RHA Oregon are committed to helping you understand Fair Housing and how it applies to your business. On April 16th we have Jo Becker with Fair Housing Council of Oregon presenting a class on Fair Housing 101 at the RHA Oregon Conference Annex starting at 6:30 pm. She will be presenting an introduction to and overview of the Federal, State, and Local fair housing laws. If you would like to attend go to our website and/or call the office to register. I have been to several classes over the years on Fair Housing and I always learn something new each time. Also, if you haven’t done so yet you should check out the Fair Housing Council of Oregon website and especially their link to resources for landlords.

http://www.fhco.org/hs_provider_ info.htm . There is a lot of information here that you should find very helpful for your business. In addition RHA Oregon has classes this month on Landlording 102, April 21st, presented by Anna McCormack with Warren Allen LLP 6:30 pm at the RHA Oregon Conference Annex and Landlording 101, April 25th, presented by Mark Passannante, Attorney at Law and Past President of RHA Oregon, at the Monarch Hotel in Clackamas. You can check both of these classes out on the RHA website, http://rhaoregon.org/.

John Sage RHAOregon President

So even though April is the month designated to be observed as Fair Housing month, we know that we really observe it every day of every month of every year since April 11th, 1968. Remember that RHA Oregon is a resource for training and answering questions about fair housing. And please be sure to let us know if there is anything that we can do to help you. Sincerely, John Sage President RHA Oregon / Stegmann Insurance Agency Inc.

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Rental Housing Journal Metro • April 2015

RENTAL HOUSING JOURNAL METRO

Tenant Screening – Between a Rock and a Hard Place

Landlords are truly caught between a rock and a hard place when it comes to tenant screening. By Paul Prudente, Moco Inc.| MyScreeningReport. com® The Rock A failure to adequately screen prospective residents can have a devastating impact on the bottom line – NOI & equity. Further, there is a well-established duty to exercise care in screening prospective residents. A failure to do so has resulted in disaster – followed by substantial civil penalties. The Hard Place There has never been a more hostile legal and regulatory environment when it comes to tenant screening. First, there is a large and evolving body of law regulating consumer reporting (including tenant screening). There is, of course, the federal Fair Credit Reporting Act (FCRA) as amended by the FACT Act. States often have their own consumer reporting statutes – which may or may not align neatly with the FCRA. Bottom line – these laws impose specific requirements on landlords (End-

users as defined in the FCRA) as well as consumer reporting (tenant screening) agencies. A failure to comply can result in lawsuits or regulatory action! Then there is Title VIII of the Civil Rights Act (as amended) which prohibits discrimination in housing based on race, religion, national origin, gender, disability and family status. State law often expands on the list of protected groups. Landlords know better than to intentionally violate fair housing law. It is the emergence of the “disparate impact” form of discrimination that poses the greatest risk these days. The disparate impact legal theory holds that a so-called “facially neutral” business practice that has a disproportionate impact on protected individuals may form the basis of a Title VIII (fair housing) claim. A good example might be the practice of denying tenancy based on records of arrest alone (versus convictions). Another is to deny tenancy for any and all criminal convictions – regardless of the nature of the offense or when it occurred. It is well established that such practices have a

tion you need to begin the screening process and it provides (the applicant with) the disclosure and authorization wording required by state and federal consumer reporting law.

disparate impact based on race & national origin. The Good News The good news is that it is possible to thoroughly vet prospective residents and to mitigate the risk of legal or regulatory action. Here’s how:

4. Provide a copy of your criteria continued on page 11

1. Limit consideration of criminal records to convictions (versus records of arrests). Develop a list of serious offenses – that are truly pertinent to the tenancy. Consider only those where the date of final disposition antedates the report less than seven years.

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2. Develop and consistently follow formal (and objective) rental criteria. A critical step in developing criteria is deciding what is acceptable in terms of credit, rental history, criminal and eviction history, length of employment and income – within the context of what is “reportable”.

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3. Use a well-designed (and legally compliant) application to rent. The application does two things for you. It collects the informa-

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RENTAL HOUSING JOURNAL METRO The Fair Housing Council Of Oregon 1221 SW Yamhill St., #305, Portland 97205 503/453-4016 www.fhco.org

Angie’s List Shops The Market; Finds Lead-Paint Misinformation & Violations By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon

KNOW THE RISKS Lead paint lurks in nearly half the nation’s homes. Here are several risk factors to consider, according to the EPA and highly rated lead testers: • About 38 million homes in the US, representing 40% of the residential housing stock, contain lead-based paint. • Any home build before 1978 might still have lead paint. And the chances increase the older the home. • Window and door frames often contain lead even when the rest of the home doesn’t, and they present particular dangers. Friction or impact surfaces such as door frames, stairs, and window s can break down the paint during normal use and release lead into the home. Some ceramic tile in pre-1978 homes also contains lead, which might be released if the tiles are removed or broken. • Deteriorated paint presents a significant hazard, as it releases paint chips and lead dust. Even small amounts of dust – not just chips – can easily be ingested by young children. • Soil can become contaminated when exterior lead paint flakes or peels off.

ast fall angieslist.com published a very interesting article for their subscribers entitled “LEAD: Still Lurking.” This month I’d like to share some salient points from that article with you. Arm Yourself With Information Homeowners can’t rely on contractors and their local hardware store to know their stuff where lead paint is concerned. What follows is portions of the Angie’s List article by Paul Pogue with additional reporting by Kaley Belakovich, Oseye Boyd, James Figy, Staci Giordullo, Garrett Kelly, Lacey Nix, Michael Schroeder, Stephanie Snay, and Cynthia Wilson. Angie’s List takes lead paint seriously. That’s why they decided to conduct a “secret shopper” program this year to test contractors and hardware stores about their knowledge of lead safety. It’s been four years since the Environmental Protection Agency (EPA) implemented its Renovation, Repair, and Painting (RRP). Did awareness about the dangers of lead increase? Maybe. Are contractors passing along good advice abou lead safety? Not always. While interviewing candidates for the project, the last thing a consumer expects to hear is: “It’s just a bunch of B.S., really.” However, that’s exactly what one contractor told one of Angie’s List reporters. Angie’s List contacted 150 ran-

domly selected painters, remodelers and window contractors, and 50 hardware stores, in 10 major cities telling them a 2-year-old child’s room in a 1920s house was being renovated. What, they asked, were the proper methods to strip paint or replace windows? Nearly 11% of those contractors, and 47% of hardware stores, gave poor advice. Here are a few examples: • “Lead only harms you if you eat it.” • “Just close the door, wear a mask. • “You might just be able to throw [lead paint debris] in the trash.” • “The whole lead thing is very overblown unless your kids are chewing or gnawing on the windowsills.” While lead-safety awareness has increased, homeowners can’t rely on contractors and their local hardware store to know their stuff where lead paint is concerned. Your best defense? Arm yourself with information. Sadly, Angie’s List staff found that a significant number of those renovation contractors — nearly 11

percent — offered consumers bad advice when it comes to lead safety. But even more disconcerting, nearly 32 percent of those contractors told us they did not have the required EPA lead-safety certification. Every lead-painted surface contains invisible poison, easily unleashed by scraping, sanding, or melting the surface – all common techniques in renovations. Lawmakers banned lead-based paint in 1978 but contractors working in older properties operated with very little regulation until the EPA instituted the RRP Rule in 2010. Nationwide, about 40 percent of the housing stock remains at risk for lead paint, according to the EPA. Angie’s List estimates that number may be higher for its members as 46 percent of them report living in a pre-1978 home. According Wendy ClelandHamnett, director of the EPA’s office of pollution prevention and toxics, “Our certified firms mentioned that they sometimes have to compete with firms underbidding jobs because that firm is uncertified and continued on page 14

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

Scott Arena President, Multifamily Northwest

What Does Your Workplace Culture Say About Your Organization? Presidents Message April 2015 By Scott Arena ave you ever walked into the offices of a particular company and felt a “vibe”. It’s usually a feeling of energy and often difficult to explain but nonetheless very present and very real. Positive, neutral or negative, this work place “atmosphere” is determined by, and reflective of, a company’s culture. Workplaces are typically comprised of many different personality types with various backgrounds and diverse views. Although this makes for interesting interaction and learning, it can also bring conflict and struggle. The backdrop of culture can significantly impact the environmental conditions – and determine direction toward positive or negative daily performance and overall results. Defining and maintaining a company culture takes effort, coordination and planned direction. Too often people are frustrated by their workplace culture. Having a great one can be elusive and rare and feel like impossibility for some lead-

ers. Negative or toxic personalities can place barriers to open communication and creativity. When these styles become dominating - apathy, pessimism and infighting can follow. All of which prohibit innovation, forward thinking and growth. A bad culture can cause stress and poison morale. Who would look forward to coming home from a day of working with downers and naysayers? It certainly would not be motivating – and likely causes tiredness and tension at home. Conversely, a good culture fills one with positive energy and the desire to engage and improve oneself, others in the organization, and work towards favorable outcomes. This environment is inviting and inclusive and prompts desire to participate and contribute. It promotes teamwork and encourages members to be a part of something bigger than themselves. Early in my career I was fortunate to be a young manager at a large, new high-end lease up. What started as a pressure-filled, high stress atmosphere with less then optimal leasing results became a fun, high-energy, motivating, and success-fueled pro-

Apartment Report Breakfast Mark your calendar for the Spring 2015 Apartment Report Breakfast on Wednesday, April 22, 2015 at the Multnomah Athletic Club from 7:30am-9:00am. Our distinguished panel of speakers will review the results of the latest Apartment Survey and share their valuable insights concerning various metropolitan markets. Multifamily NW would like to express appreciation to everyone who participated in the latest survey. Your cooperation makes this the most comprehensive study of its kind in the area.

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gram within three months. One key change prompted this shift – a change in group attitude that changed the culture. A culture of “fear of job-loss” transformed into “lets prove what we can accomplish”. This was a mind-set adjustment that ultimately led to recordlevel leasing results and, most importantly – support and respect between staff. It was an exciting time and great learning experience. How do you know if YOUR company has created a great culture? Author Tim Stevens (Fairness is Overrated: And 51 Other Leadership Principles to Revolutionize Your Workplace) notes twelve signs that a great culture exists in your company: 1. People are waiting in line to join your team. It’s about more than just compensation for your employees. You might pay less. But word is out about your company. And people want to join your team and be a part of it. 2. Turnover is low. Most top executives stay on long term due to

comfort and pay. But look at support positions. If long-term people hold entry-level and mid-level positions, it’s a positive indicator of healthy culture. 3. Top leaders want others to succeed. They promote from within and support education and professional development. 4. No Gossip allowed. At every level in the company, gossip is not tolerated and speaking directly to the individual is encouraged. 5. Great lateral leadership. Leading people below you can be easy. Leading colleagues and co-leaders is different. A strong culture sees people coming along side their peers to encourage or on occasion correct and redirect. 6. Team members are energized and motivated. Leaders at all levels talk about the mission. They are energized and constantly thinking of ways to get it done 7. It is more than just a job. People ...continued on page 18

Multifamily NW

Upcoming Educational Opportunities 4/1/2015 April Landlord Study Hall 4/2/2015 WA Landlord Tenant Laws: Forms to Evictions 4/2/2015 NALP Relevant Laws and How to Apply Them 4/7/2015 Mold Awareness and Remediation 4/10/2015 It's the Law Series: Crazy But True: Stories from a Full Moon 4/14/2015 CAMT Interior Exterior Maintenance and Repair 4/16/2015 CAM Management of Residential Issues

4/17/2015 NALP - The Sales Process and Building Relationships 4/20/2015 New Hire Training "An Introduction to the Industry" 4/21/2015 Strengthening Frontline Skills for Maintenance 4/22/2015 Spring 2015 Apartment Report Breakfast 4/24/2015 Fair Housing Bus Tour 4/29/2015 NALP Effectively Meeting the Needs of Current Residents 5/4/2015 OR Landlord Tenant Law Part 1 5/5/2015 Summer Preventative Maintenance

Form of the Month

Abandoned Property Release – M045

This is a new form that allows both the landlord and tenant to mutually agree that any items left behind may be disposed of without the customary notice periods outlined in ORS 90.425. This release can only be executed after a tenancy has ended, or no more than seven days prior to the termination of the tenancy.

Sponsored by: 16083 SW Upper Boones Ferry Rd. Ste. 105 Tigard, OR 97224 ph: 503-213-1281 fax: 503-213-1288 info@multifamilynw.org Rental Housing Journal Metro • April 2015

RENTAL HOUSING JOURNAL METRO

Flooring in Your Rental ...continued from page 4 clients can take advantage of that extra savings. Hopefully we will see more companies taking this proactive approach to make it feasible for their clients to use these materials in units that aren’t considered strictly high end. You may ask why we would go beyond wood flooring and purchase wool carpet as well. We figure that the wood flooring is just the start. As far as I know there haven’t been any reports on synthetic fiber carpeting

causing any health issues, but that won’t matter to anyone that jumps on the band wagon of wanting to pay a premium to rent a unit with all natural materials used in its construction. The benefits of wool carpeting is that it is hypo-allergenic, naturally stain resistant, is better at regulating temperature, and of course comes from a sustainable source. There are many materials commonly used in rental units that can

be replaced by natural materials. The next time you are doing a renovation or turn over it might be worth your time to at least research the possibilities and then advertise your unit as being one that uses those natural materials. Now that we have started this program we have seen about an average of a 5% increase in rents and we estimate that should grow to be a 10-15% premium being added to units that use natural materials as this trend continues to grow. This

also turns the public’s growing fear over these reports of formaldehyde in manufactured flooring into a profitable fear for you as a landlord that offers units with natural materials. Christian Bryant President of PAROA & CBPropertyManagement.com

Energy-Efficiency ...continued from front page older properties So, how can existing multifamily properties remain competitive during this new construction boom? Energy-efficiency improvements and retrofits are an affordable alternative that can help keep existing multifamily properties competitive and attract tenants. These improvements not only help to increase property value, but can provide significant cost savings while reducing energy consumption. Energy-efficiency improvements and retrofits can go a long way to winning over the millennial demographic. In 2014 alone, Energy Trust expects that assistance to multifamily property owners could result in over 21 million annual kilowatt hours and over 300,000 therms in

energy savings, with approximately $4.6 million in cash incentives. An Energy Trust advisor can provide a no-cost walkthrough survey to identify energy-efficiency opportunities for cash incentives, and determine where the largest savings potential exist at your property. Energy Trust also provides technical assistance and can recommend qualified energy-efficiency contractors to help you get started. To learn how other multifamily property owners have benefited from energy-efficiency improvements visit www.energytrust.org/multifamily, contact us at multifamily@energytrust.org or call 1.877.510.2130.

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RENTAL HOUSING JOURNAL METRO

Signs of Strengthening ...continued from front page trend. This insight comes from the company's most recent VeroFORECAST, a national real estate market forecast for the 12-month period ending March 1, 2016, updated quarterly and covering 967 counties, 333 metro areas, and 13,549 zip codes. Reminiscent of Dickens' classic story, VeroFORECAST revealed a "Tale of Two Coasts" in the forecast's top and bottom residential markets. Six out of the "Top 10" appreciating markets are located within a 75-mile radius in the Bay Area of California. Conversely, six of the "Bottom 10"

are located within a 100-mile radius in the Northeast coastal area. "We continue to see the same factors influencing the appreciation or depreciation of residential markets across the country," stated Eric Fox, Veros' vice president of statistical and economic modeling and developer of VeroFORECAST. "Unemployment rates, housing supplies, and population trends remain the primary factors affecting the housing market. Their impact is clearly reflected in the market forecasts for these coastal areas."

Projected Twenty-Five Weakest Markets* 1 Vineland-Millville-Bridgeton, NJ 2 Sumter, SC 3 Salisbury, MD 4 Atlantic City-Hammonton, NJ 5 Jacksonville, NC 6 Gadsden, AL 7 Scranton—Wilkes-Barre, PA 8 Warner Robins, GA 9 New Haven-Milford, CT 10 Torrington, CT 11 Elizabethtown, KY 12 Saginaw-Saginaw Township North, MI 13 Jackson, TN 14 Hartford-West Hartford-East Hartford, CT 15 Pittsfield, MA 16 Fayetteville, NC 17 Williamsport, PA 18 Kingston, NY 19 Ocean City, NJ 20 Valdosta, GA 21 Joplin, MO 22 Greensboro-High Point, NC 23 Norwich-New London, CT 24 Dothan, AL 25 Santa Fe, NM Projected Twenty-Five Strongest Markets* 1 Santa Rosa-Petaluma, CA 2 San Francisco-Oakland-Fremont, CA 3 Denver-Aurora-Broomfield, CO 4 San Jose-Sunnyvale-Santa Clara, CA 5 Austin-Round Rock-San Marcos, TX 6 Santa Cruz-Watsonville, CA 7 Vallejo-Fairfield, CA 8 Salinas, CA 9 Boulder, CO 10 Dallas-Fort Worth-Arlington, TX 11 Port St. Lucie, FL 12 College Station-Bryan, TX 13 Portland-Vancouver-Hillsboro, OR-WA 14 Houston-Sugar Land-Baytown, TX 15 Fort Collins-Loveland, CO 16 Coeur d'Alene, ID 17 Bend, OR 18 Merced, CA 19 Greeley, CO 20 Medford, OR 21 Reno-Sparks, NV 22 Modesto, CA 23 Naples-Marco Island, FL 24 Stockton, CA 25 Carson City, NV

Rental Housing Journal Metro • April 2015

Rock and a Hard Place ...continued from page 7

-3.9% -2.6% -2.6% -2.4% -2.3% -2.2% -2.2% -1.9% -1.9% -1.9% -1.9% -1.8% -1.7% -1.7% -1.5% -1.4% -1.4% -1.3% -1.3% -1.2% -1.0% -0.9% -0.9% -0.8% -0.7%

with the application – so the applicant knows up front whether they qualify or not. It is not only the right thing to do. It saves time and money – for you and your applicant! 5. Use a reputable and legally compliant tenant screening company – lean on them for help with (FCRA) compliance, process and forms. Consumer reporting law is complex, at times ambiguous and often conflicted. Tenant screening companies live and breathe this stuff on a daily basis. No sense reinventing the wheel! 6. Issue Written Notices of Adverse Action – immediately upon denial or conditional approval of an applicant. Make sure that your tenant screening company responds quickly and respectfully to requests for copies or disputes regarding the content (of tenant screening reports).

So while it may be true that we find ourselves between a rock and a hard place these days. It is also true that by following a few best practices – we can thoroughly screen prospective residents without running aground! Paul Prudente is vice president and general manager of Moco, Incorporated, a specialized consumer reporting agency focused on delivery of quality tenant and pre-employment screening services for the rental housing industry. He has been at the helm of Moco for nearly 12 years. He is principal architect of its pioneering direct-to-consumer tenant screening facility – marketed under the MyScreeningReport.com® brand – developed in collaboration with the low income housing community and designed to address the needs of a growing independent rental owner marketplace.

+10.0% +9.9% +9.3% +9.2% +8.8% +8.7% +8.6% +8.5% +8.4% +8.0% +8.0% +8.0% +7.6% +7.6% +7.5% +7.5% +7.4% +7.4% +7.3% +7.2% +7.1% +7.0% +6.9% +6.9% +6.9%

RENTAL HOUSING JOURNAL METRO

Student Loan Debt... continued from page 3 That basically means that those that sought shelter in the halls of academia during the economic downturn, often have no way to pay it back. Even with a college education and a decent job, some of these college graduates live with as much expendable income as those under the poverty line since all their wages go to living expenses and to pay down their student debt. We know that home builders are selling fewer homes. As investors, we want to know how long this will go on and how this will impact the demand for alternate living arrangements.

Bear in mind The percentage of students who cannot pay their student loans have a huge impact on American society and economic growth: • They can’t afford to buy a car, and their credit may be too bad to finance one. • They are hesitant to marry, because they don’t want to assume liability for unpaid student loan debt or they don’t want their future spouse and household to be burdened by the debt. • They are hesitant to have children, because they can’t afford to

raise them or put them through school. (The last thing they want is to have their children pay their student loan debt as well.) • They are putting off medical care because they don’t have the money to pay the deductibles or even afford insurance premiums. • They can’t buy a house, not only is their credit bad but they cannot afford the house payments, not to mention the down payment required to close. Where does this take us? We have already seen a boom in apartment construction. It is estimated that this boom will continue through 2015 as young people continue to move in together to save money. Many of those tenants don’t have a car and want to live in the downtown of a large city where they can walk or bike everywhere they need to go. At some point, high downtown rents will force those with student loan debt out of the city center, because the rents needed to fund new construction will not be affordable. The Y generation will then need a car, a small used car with high gas mileage, or find a place with easy access to public transportation. As they move to potentially lower rent apartments in the suburbs, their

peers without student loan debt will be buying homes and home builders will see some increased demand. Another option for the future would be to encourage the federal government and Sallie Mae, (one of the major holders of student loan debt,) to refinance loans at lower interest rates and to forgive late penalties and interest rate hikes since, as they say, you can’t squeeze water from a stone. Credit unions are showing some interest in helping the Y generation recapitalize their debt, but they are very cautious, and should be given that many of these student loans are delinquent and their holders have low credit scores. If the Y generation can refinance this debt, then the opportunity exists that within 5 – 7 years a new cohort of buyers might end up in the housing marketplace. In the meantime the members of this debt-ridden generation are renting apartments and houses together, fueling the apartment building boom.

See you at the 2015 Maintenance Fair Visit the City of Portland’s Multifamily Waste Reduction staff at Metro’s Recycle at Home booth. MF NW Maintenance Fair Thursday, March 19, 2015 7:30 a.m. – 4 p.m. Portland Convention Center, 777 NE Martin Luther King Blvd. Get free materials and support to make your job easier. Keep your garbage and recycling program working for you and your residents. Multifamily Resource Line: 503-823-7224 Online: www.portlandoregon.gov/bps/multifamily Email: multifamily@portlandoregon.gov

Rental Housing Journal Metro • April 2015

RENTAL HOUSING JOURNAL METRO

Leasing Desk... continued from page 5 about their stuff, even though we are willing to give them ours and we're always honest. One weekend, the bigger one was doing a free 47 Inch TV with a new lease, and we didn't know about it! How can I get those two properties to give me the information I need? -Frustrated with Fibbing Dear Frustrated with Fibbing, This is a song that we hear all too often! Kudos to you on actually doing your weekly market survey/ comp shops, since so many leasing consultants don't. Your dedication to being armed with the right information is commendable! Early in my career, I had a property that refused to work with me on my comp shops. I was annoyed with them, and indeed, over time I became annoyed with the whole market survey process. No matter what, every week, my surveys were incomplete

because I could NOT get information from this one property. Finally, I got so frustrated that I went over there one day on my day off, scones and Starbucks in hand, and asked them why they wouldn't give me any information. When they couldn't give me a real reason (because I knew that bunk about it being "company policy" was just that - bunk), I asked them if they had any one bedroom apartments open. The leasing consultant hesitantly told me that, yes they did, and I told her I sure wished I had known that because I would have loved to send her a couple I had to turn away the day before, as my property didn't have any open one bedroom apartments. I left her my card, the Starbucks and scones, and wished them a good week. The next week when I called, they gave me the information I was looking for, because I had shown

them that I could be an ally, not just an adversary. My advice to you is this: Build bridges with these people. Reach out to them on a personal level and a professional level, and even though they swat you away a few times, be persistent. If that doesn't work, I encourage you to use the tools at your disposal by searching Craigslist for open units with their phone number. If nothing more, you'll be able to gain prices and potential specials from their postings. But before you take the sneaky route, try the more honorable method of just building the relationship. I promise you, it will yield rewards even greater than the information you're seeking now.

Heather is the Imagination In Charge of Behind the Leasing Desk Training & Consulting Services out of Seattle, WA. An accomplished national speaker, trainer, consultant, career coach, and author of both books as well as countless industry related articles, Heather holds her CAS designation, is NAA Advanced Instructor trained, and has been a member of the NAA Faculty since 2009, serving as a WMFHA, CAM, and NALP instructor since 2009. You can check out more of her musings, podcasts, and class offerings at www.behindtheleasingdesk.com

Best of Luck, Heather

www.rentalho usin gj ou rn al.com

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standing by with the incentives, and the technical and engineering guidance to make adding natural gas to your next project more affordable. Call 503-220-2433 to connect with one of our experts, or find out more at nwnatural.com/multifamily.

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RENTAL HOUSING JOURNAL METRO

Lead-Paint ...continued from page 8 is willing to work without lead-safe work practices,” she says. “Those firms may be skirting other requirements as well.” In the past year, Cleland-Hamnett says the EPA stepped up its enforcement efforts against noncompliant firms or individuals. Going an additional step further to protect their members, Angie’s List excludes any contractor who performs this type of work and fails to provide proof of EPA certification from this service category and keyword searches. In addition, the site includes a notice on the company's profile to alert their members of the issue. “Correct practices are very easy to spot,” according to Ron Peik, owner of a highly rated lead-paint remediation company in Mass. “You should be seeing lots of plastic being set up to contain the area, literally taped down so air doesn’t get in, and windows, ducts and doorways sealed off. Homeowners really should insist on looking at the containment before actual work is executed.” The most important thing owners of pre-1978 homes can do is hire certified contractors on jobs that disturb lead paint, and verify that the contractor follows the law. Angie’s List also offers a LeadSafe Practices Checklist to protect yourself and your property. You can find it at www.angieslist.com/arti-

cles/lead-safe-practices-checklist. htm and additional resources at www.angieslist.com/articles/leadpaint-safety-what-you-need-know. htm. For help with your own, specific lead questions, call the free Leadline at 503/988-4000. A reminder that although lead poisoning is especially dangerous

LEAD REQUIREMENTS In ‘96 federal regulation was passed requiring housing providers to disclose to potential buyers and occupants that pre-‘78 residences may contain lead-based paint before the consumer was obligated by contract. This involved distribution of a “Protect Your Family from Lead In Your Home” brochure and signatures a disclosure form. The RRP regulation was layered on top of the ’96 law, requiring those doing work that disturbs at least six square feet of painted surfaces inside pre-’78 homes (or 20 square feet on the exterior) provide residents with the “Renovate Right” brochure and complete another accompanying disclosure form. Two years later EPA went on to stipulate that those doing such work must be certified (or hire someone who is) and follow specific work practices to prevent lead contamination.

for kids, the fear of lead poisoning or liability does not give housing providers the right to deny or discourage families with children away from pre-1978 using. Familial status is a protected class under federal fair housing law and doing anything to deny or discourage otherwise qualified families is illegal. Visit www. FHCO.org for more information on

The following work methods are specifically prohibited because they have been proven to create significant levels of lead dust: • dry sanding or scraping, • removing paint by torching or burning, • the use of heat guns over 1100°F, and • machine-sanding or grinding without HEPA equipment. Specialized paint strippers are available instead; some even render lead non-hazardous further decreasing risk to workers and residents. Safe work practice requirements include, among other things, posting of signage during the project; the use of plastic sheeting to seal and prevent contamination outside the work area; and proper disposal of leadbased paint waste.

this topic. 1

Federally protected classes under the Fair Housing Act include: race, color, national origin, religion, sex, familial status (children), and disability. Oregon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Additional protected classes have been added in particular geographic areas; visit www. FHCO.org for more information. This article brought to you by the Fair Housing Council; a civil rights organization. All rights reserved © 2015. Write jbecker@FHCO.org to reprint articles or inquire about ongoing content for your own publication. To learn more… Learn more about fair housing and / or sign up for our free, periodic newsletter at www. FHCO.org. Qs about this article? ‘Interested in articles for your company or trade association? Contact Jo Becker at jbecker@ FHCO.org or 800/424-3247 Ext. 150 Want to schedule an in-office fair housing training program or speaker for corporate or association functions? Visit www.FHCO.org/pdfs/classlist.pdf

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RENTAL HOUSING JOURNAL METRO

Section 8 and Voucher ...continued from front page Specializing in 4-30 Unit Apartments

RTMEN PA A

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inspect the house and make sure it stays in good condition. In effect, they do the work of a property manager, free of charge. The owner-client still wanted a property manager to be their “liaison” between them and the local agency. But since the property manager hardly needed to do anything they negotiated a lower fee then the standard 10% of the rent normally paid to a property manager. When the lease expires, if the resident leaves, the government finds another resident to take her place – on the same terms, which saves the property manager and the owner that responsibility. The best part was that it’s all guaranteed and supported by the federal government. Everyone including the resident came out ahead. Remember, public housing is limited to lowincome families and individuals. The family or individual’s income cannot exceed 50% of the median income for the area. There are strict guidelines that owners and tenants must follow to be eligible to participate in these kinds of program. For specific details, contact your local Public Housing Agency.

Instead of renting a recently vacated house on the open market, the property manager encouraged her landlord-client to offer it to the local Section 8 housing authorities. They found a woman with two children to rent it. “The Section 8 people offered to pay us $1,600 a month for this property, which is about $300 more than it’s worth”, the manager told me. “After my client pays the monthly expenses – the mortgage, maintenance, and taxes – we are netting more than 12% on this investment. That’s a nice return in today’s world”. “Is there a catch?” I asked disbelievingly? “What if the resident didn’t pay her rent?” The manager explained that Section 8 guarantees about 75% of the monthly rent.” So, as she informed me, even if the resident doesn’t pay, the government still deposits $1,200 into their account, no questions asked. The resident is responsible for the remaining $400. But there’s no reason for the landlord to worry about their renter’s $400 payments. The local Public Housing Agency make sure she pays her part. They act as “the enforcers”. The owners don’t even worry about her making payments on time; because the local agency handles that challenge also. Then I asked what would happen if she and her children trashed the place? I was told that the local officials dutifully

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CHECK-IN/CHECK-OUT CONDIT

ION REPORT

TENANT(S): ____________________ ______________________________ 48-HOUR NOTICE ________________ ADDRESS: ____________________ OF ENTRY __________ OR-RTG-24 Orego__________ n ________UNIT: ______________ CITY: ______________________________ _____ STATE: ________TENA : _____________ ZIP: NT(S) __________ __________________ ______ ADDR Rating

Scale = (E)Excellent (VG) Very Good PET AGREEMENT

WA-RTG-40 Washing

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IN Out TENANT INFORMATION LIVING AREAS TENANT(S): ____________________________________________________ DATE:________ KITCHEN ADDRESS: ____________________________________________________ UNIT: _________ Walls Walls CITY: _________________________________________ STATE: __________ ZIP: _________

48-HOUR NOTICE OF ENTRY

BEDROOM 3

Walls

Pursuant to RCW 59.18.150, this is your 48 hour notice that g the dwelling unit your landlord or their and premises located agents will be at (Address) __________________ Rods 1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ ____________ WA-RTG-20 Washin Ice Trays ____________ gton ______ Rods Vaccinations: Yes____ No____ License Number: ______________ ____________ on Floor CHECK-IN/C Shelves/Drawer betwee n the hours 2) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Floor HEC (Date)K-OUT CONDITI of and Vaccinations: Yes____ No____ Carpet/Vinyl/Wo License Number: ______________ od . ON Disposal REP ORT (Time) Light Fixtures (Time) 3) Type _______________ Breed _______________ ________ Light Fixtures Size ______ Age __ Weight ___ Color ____ Name DishwasherTENANT(S): __________ The entry will occur Vaccinations: Yes____ No____ License Number: ______________ Doors/Woodwo __________ rk _____ for the following purpos ADDRESS: _____ _______________ ____________ Doors/Woodwork ______ __________ _____e:__________ Counter Tops ______ Additional Security Deposit Required:$ __________ ____________ Locks ________________ ______ ______ CITY: __________ ____________ ___________ _____________UN ______ Locks _______________ ____________ __________________ Cabinets ____________IT: __________ __________ ______ AGREEMENT ____ ______ Ceilings STATE: _____ ______ ______ Rating ___ ZIP: _______________ __________________ Scale = (E)Excellent Ceilings Tenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) Sink (VG) Very Good __ Electric Outlets (G)Good (F)Fai understands that the additional pet(s) are not permitted unless the landlord gives ten Electrical r (P)Poor Outlets IN Out pets in theLIVING premises ant(s) written permission. Tenant(s) agree to keep the above-listedFloor In Landlord AREAS Out Garbage subject to the following terms and Cans conditions: KITCHEN In Windows Out Walls Phone BEDRO Windows

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from the database. The modules are all integrated and work together. For example, a customer can use the rent-roll function to identify all delinquencies, apply fees, and create eviction forms with a few simple clicks of the mouse.

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BATH ROOM Towel Bars

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- Owners and 5. Value - Large property management Color forand National Tenant Networkthat Logouse Rentegration.com for companies managers can Standards track income expense for each • unit, property and company. Per- only forms generation will save time and Logos are provided on the CD in all three forms: all black, reversed to white, or inproperty PMS 280 Blue/PMS 7543 Gray spot money or 4/color applications. over other methods. Mid and small fect for mid and small size managPlease see below for specific use examples. ers and independent rental owners, who size property managers and independent • No other colors are acceptable for use for the logo. neither have the need or budget for larger, rental owners can manage their entire busi• No altering of the logo is allowed. If you have a special circumstance that requires something not ness at aforfraction more expensive provided on software. the CD, please call NTN NA TIO NAL HEADQUAR TERS 1.800.228.0989 assistance. of the cost of other soft• Logos should not be put over a busy background. ware and forms. 4. Management Database - Rentegration. BLACK com is an easy to use, database driven soft- WHITE (with 40% gray circle)

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he importance of teamwork can not be overstated or emphasized enough. Yet sometimes boundaries are so clearly drawn regarding the role or “job description” of each staff member, that those who desire to “go the extra mile” are forced to remain at the starting line and watch prospects and residents “fall through the cracks.” I was recently asked the following

tion: Is it appropriate for leasing/ office employees to get involved in some aspects of maintenance and how far should they go? As property management companies have to make difficult budget decisions. Some budget cuts have involved a reduction in leasing and maintenance personnel. The result is less office coverage and slower response time to resident requests, as one or two team members are trying to do the jobs of three or four people. Providing some “basic” training to your leasing and maintenance personnel to create an “overlap” in their job responsibilities will take some of the pressure off your team

question which brings up the issue of maintenance and leasing staffs getting involved with each others’ job duties: Q: Is it appropriate for maintenance staff members to get involved in the leasing process and how far should they go? A: This is a very important subject, and it brings up another ques-

members and provide better service to prospective residents and existing residents. If a leasing person is away from the office and a maintenance staff member encounters a prospective resident, the maintenance person at the very least could extend a warm, friendly greeting. The visitor could be made comfortable and offered refreshments, if available, and be given a brochure to look at while he or she is waiting. If a guest card or visitor log is available, the maintenance person could request that it be filled out. Then, if the wait time becomes excessive and the pro...continued on page 19

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RENTAL HOUSING JOURNAL METRO

Accelerating Housing Costs Have Renters Feeling the Squeeze income for renters and the rental costs in 70 metro areas. The top markets where renters have seen the highest increase in rents since 2009 are New York (50.7 percent), Seattle (32.38 percent), San Jose, Calif., (25.6 percent), Denver (24.14 percent) and St. Louis (22.26 percent). Looking ahead, Yun says a way to relieve housing costs is to increase the supply of new home construction – particularly to entry-level buyers. Builders have been hesitant since the recession to add supply because of rising construction costs, limited access to credit from local lenders and concerns about the re-emergence of younger buyers. Yun estimates housing starts need to rise to 1.5 million, which is the historical average. Housing starts have averaged about 766,000 per year over the past seven years4. "Many of the metro areas that have experienced the highest rent increases are popular to millennials because of their employment opportunities," adds Yun. "With a stronger economy and labor market, it's critical to increase housing starts for entry-level buyers or else many will face affordability issues if their incomes aren't compensating for the gains in home prices." The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. Regional median home prices are from a separate sampling that includes rural areas and portions of some smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Median price measurement reflects the types of homes that are selling during the quarter and can be skewed at times by changes in the sales mix. For example, changes in the level of distressed sales, which are heavily discounted, can vary notably in given markets and may affect percentage comparisons. Annual price measures generally smooth out any quarterly swings.

NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series dates back to 1989. Because there is a concentration of condos in high-cost metro areas, the national median condo price often is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional areas will be included in the condo price report.

3 percent. 3The median existing-home price for all housing types in January was $199,600, which is 6.2 percent above January 2014. 4According to U.S. Census Bureau data from 2008-2014.

Information about NAR is available at www.realtor.org. This and other news releases are posted in the "News, Blogs and Videos" tab on the website. Statistical data in this release, as well as other tables and surveys, are posted in the "Research and Statistics" tab. Photo - http://photos.prnewswire. com/prnh/20150210/174672 Logo - http://photos.prnewswire. com/prnh/20150210/174673LOGO

1Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. NAR adheres to the OMB definitions, although in some areas an exact match is not possible from the available data. A list of counties included in VALLEY, METRO, MSA definitions is available at: http://www.census.gov/population/estimates/metro-city/ List4.txt. 2According to the U.S. Bureau of Labor Statistics, actual market rents paid by individuals do Aug, Oct, Dec Feb, Apr, who Jun, not own the home they live in rose by 3.4 percent in January from January 2014 – the 10th consecutive month of growth above

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WASHINGTON, March 16, 2015 / PRNewswire/ -- The gap between rental costs and household income is widening to unsustainable levels in many parts of the country, and the situation could worsen unless new home construction meaningfully rises, according to new research by the National Association of Realtors®. NAR reviewed data on income growth, housing costs and changes in the share of renter and owneroccupied households over the past five years in metropolitan statistical areas1 across the U.S. The findings reveal that renters are being squeezed in many metro areas throughout the country due to the disproportionate growth in rental costs to incomes. New York, Seattle and San Jose, Calif. are among the cities where combined rent growth is far exceeding wages. Lawrence Yun, NAR chief economist, says the disparity between rent and income growth has widened to unhealthy levels and is making it harder for renters to become homeowners. "In the past five years, a typical rent rose 15 percent while the income of renters grew by only 11 percent," he said. "The gap has worsened in many areas as rents continue to climb2 and the accelerated pace of hiring has yet to give workers a meaningful bump in pay." According to Yun, the share of renter households has been increasing and homeownership is falling. Those financially able to buy a home in recent years were insulated from rising housing costs since most take out 30-year fixed-rate mortgages with established monthly payments. Furthermore, a typical homeowners' net worth climbs because of upticks in home values and declining mortgage balances. The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing housing costs every year. "Meanwhile, current renters seeking relief and looking to buy are facing the same dilemma: home prices3 are rising much faster than their incomes," adds Yun. "With rents taking up a larger chunk of household incomes, it's difficult for first-time buyers – especially in high-cost areas – to save for an adequate downpayment." NAR's research analyzed changes in the share of renters and homeowners, mortgage payments, median home prices, median household

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RENTAL HOUSING JOURNAL METRO

Energy-Efficiency Improvements Can Help Existing Multifamily Properties Remain Competitive + In 2014, Energy Trust of Oregon Incentive Programs Saved Over $4.6 Million for Multifamily Property Owners

he U.S. Census Bureau confirmed that Portland is among the 10 fastest growing major metropolitan cities in the country. Portland is also considered a top destination for investors, and for “millennials,” also known as Generation Y, which comprises almost one-third of the Portland population, and 24 percent of the U.S. population. It is expected that during 2015, the millennial demographic will have $2.45 trillion of purchasing power worldwide across multiple channels. This demographic is environmentally conscious, technically savvy and community oriented -and the Portland metropolitan area is the community where many call

“home.” Portland is estimated to add 112,000 new apartment units over the next 20 years. Over 7,000 apartment unit permits were granted in 2014, and approximately 26,000 new units are in the current pipeline. With evidence of a robust and healthy construction market, there’s no better indication that Portland’s multifamily market is in its prime. Attracting younger residents to older properties So, how can existing multifamily properties remain competitive during this new construction boom? Energy-efficiency improvements and retrofits are an affordable alternative that can help keep existing multifamily properties competitive and

attract tenants. These improvements not only help to increase property value, but can provide significant cost savings while reducing energy consumption. Energy-efficiency improvements and retrofits can go a long way to winning over the millennial demographic. In 2014 alone, Energy Trust expects that assistance to multifamily property owners could result in over 21 million annual kilowatt hours and over 300,000 therms in energy savings, with approximately $4.6 million in cash incentives. An Energy Trust advisor can provide a no-cost walkthrough survey to identify energy-efficiency opportunities for cash incentives, and determine where the largest savings potential

exist at your property. Energy Trust also provides technical assistance and can recommend qualified energy-efficiency contractors to help you get started. To learn how other multifamily property owners have benefited from energy-efficiency improvements visit www.energytrust.org/multifamily, contact us at multifamily@energytrust.org or call 1.877.510.2130.

Organization ...continued from page 9 socialize outside of work. They enjoy the company of the people they work with. Professional and respectful, they spend time together because they have a good time.

8. The team is more important than the task. Employees have a sense that they matter. They are not just people filling tasks. They feel valued and appreciated. Everything in the culture, systems, language

and structure sends a message of “you matter and all you do is important!” 9. People are smiling. Look around. Even in times of high productivity and intense focus, people are smiling, enjoying conversations and having a good time. Laughter is not a rare event. 10.No fear. People are not fearful of saying the wrong thing in front of the wrong person. There is no trepidation about things being overheard. No hushed conversations behind closed doors. When one goes in to speak with a superior they can walk out knowing they were heard. 11.Communication is strong. Everyone communicates from every level of the organization – top to bottom. No surprises when things are communicated well. Messages are disseminated well in advance to all involved parties. Leaders openly ask staff for help in finding solutions. 12.Change is welcomed. Not everyone likes change, but a company with a great culture makes changes with care and dignity. This alleviates concerns and staff no longer dreads new directions.

Revealing the evidences of a great culture is a welcome thing. Building a positive culture is a day-by-day process. It takes time and commitment on behalf of leadership and management. For any company seeking top performance in employees and extraordinary results, promoting a good culture is essential. When your team gets up in the mornings and cannot wait to spend the next several hours working together towards a rewarding goal, success is imminent. This type of culture nurtures positive energy, creating a happy environment that attracts people. The workplace literally becomes a place that breeds excitement - and an energy that people begin to crave and need and, most important, want! Who would you rather have on your team? Someone who is there only because they have to be? Or someone who is positive, motivated and really wants to be there! The choice should be a simple one. A great culture should be a foundational component of any successdriven organization. Just like Field of Dreams, “If you build it…they will come”.

Advertise in Rental Housing Journal METRO Circulated to over 20,000 Apartment owners, On-site, and maintenance personnel monthly. Call 503-221-1260 for more info.

Rental Housing Journal Metro • April 2015

RENTAL HOUSING JOURNAL METRO

Spring Cleaning for Property Managers By Mary Girsch-Bock

fter a brutal winter in many parts of the U.S., spring has finally arrived, with a hint of green quickly replacing the brown that we’ve looked at for the past several months. While we can all appreciate the warmer weather, those long months of rain and snow can take its toll on even the most pristine properties. If you’re ready to undertake some much-needed spring cleaning, here are some suggestions to rid your properties of the last signs of winter, and spring into the season with some color and style: Remove all of the dead branches that have fallen due to excessive moisture or snowfall. These are a major distraction as well as a potential liability to both residents and employees. This is also a great time to trim tree limbs and bushes. Plant a tree. Or plant several trees. The addition of trees in strategic areas can increase curb appeal tremendously. They will also help to provide shade in key areas of the complex, as well as a more appealing environment for your residents. Plant some flowers. Nothing says spring like a burst of colorful blooms. Flowers are especially eye-catching around the major property signage,

but adding a few rose bushes around the leasing office can provide a quick burst of spring color, with limited upkeep needed. Nothing is more attention-getting than a burst of color around the entrance. Consider replacing your signs. If your signs have fallen victim to the cold winter months, consider updating signage throughout the property as well. A sparkling new sign surrounded by spring blooms can often pay better dividends than advertising. Consider adding a barbeque area, or a gazebo to encourage your residents to get outside and enjoy the property. Your buildings need a spring cleaning as well. Well-tended landscaping will serve little purpose if the buildings themselves look neglected. By adding a fresh coat of paint, or even simply power-washing the complex, the buildings themselves will sparkle along with your landscaping. Don’t forget the leasing office. Your signage and landscaping have driven in a host of applicants. You don’t want them to be disappointed when they enter the leasing office. Clean those carpets, polish those floors, and paint those dingy walls. Add some new artwork or plants to bring signs of spring indoors as well.

By instituting even a few of these things, your apartment community will be ready for spring in no time.

from PropertyManager.com a Service of AppFolio

Secret Shopper ...continued from page 16 spective resident has to go, there will be a record of the visit, and a way to follow up. Office personnel can provide this same type of support to their maintenance team, when they are busy turning apartments and handling service requests. Every person working in the office should know how to operate a plunger and an Allen wrench. Leasing team members must also be willing to pass out flyers, pick up litter, sweep sidewalks, maintain common areas, etc. If you are constantly paging maintenance to pass out your lease renewal letters or handle minor messes around your community, then you are delaying the make ready process, as well as prompt service to your residents. REMEMBER: Being part of a team means doing whatever it takes to get the job done; whether it’s your job or not!

If you are interested in leasing training or have a question or concern that you would like to see addressed, please reach out to me via e-mail. Otherwise, please contact Jancyn for your employee evaluation needs: www.jancyn.com ASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica Former owner of Shoptalk Service Evaluations Consultant to Jancyn Evaluation Shops Phone: 425-424-8870 E-mail: shptalk2@gmail.com Copyright© Joyce (Kirby) Bica

www.rentalhous ingjournal.com

Rental Housing Journal Metro • April 2015

RENTAL HOUSING JOURNAL METRO

Taking A Pulse Check On Your Attitude A Change In Thinking Can Lead To A Change In Behavior And Results, Says Sought-After Speaker

ard times that sap your energy and leave you frustrated are an inevitable part of life. Maybe you lost a job. Maybe your finances took a turn for the worse. Maybe your personal life is in disarray or a health problem emerged forcing a lifestyle change. Such setbacks can leave people feeling afraid, uncertain, angry or unsatisfied, says Darlene Hunter, a renowned speaker and author of “Win-Ability, Navigating through Life’s Challenges with a Winning Attitude,” (www.darlenehunter. com). Overcoming those emotions, she says, comes down to a person’s mindset and perspective. “Your attitude is a critical factor that can either hold you back or help you move forward,” Hunter says. “Everyone needs to take the time to do a pulse check on where they are in their thinking. Is it positive or negative?” A positive attitude comes easily when life is rosy. The real trick is persevering when things go awry so you can continue to strive toward your goals. “The important thing to remember is that we cannot give up just

because things do not work out the way we want,” Hunter says. “We must be persistent and press our way through to the end.” Hunter offers five tips that can help change your thinking, which in turn will change your behavior and, ultimately, change your results. • Be a planner. To live your dream, you need to know what you want and have a plan for getting there. “Planning your day, week and month are critical ingredients to living your dream and purpose,” Hunter says. The “how” and “why” elements are important factors in planning, as they guide you in the direction you want to go. • Be goal oriented. Once you set goals, the next step is to work on completing them. That’s why it’s important to set goals you can accomplish. Each time you can check a goal off your list, you are one step closer to what you ultimately want to achieve. “The sense of accomplishment that comes from reaching even the smallest goals will help you keep moving and striving to get your desired end,” Hunter says.

• Be driven for results. When you are driven, Hunter says, you have a compulsive and urgent desire to accomplish what you are seeking, whether it’s a bonus, a promotion, additional knowledge in a particular area or some other goal. The important factor is to always know what you are seeking. Results-driven people focus on meeting objectives and delivering on the goals they set. • Have a winning attitude. You must be determined, dedicated and devoted to succeed. “You should never give up on your goals and dreams simply because something goes wrong or you are not getting where you hoped to be fast enough,” Hunter says. • Be focused. When you are focused, you have a clear perception and understanding of what you want to accomplish and where you need to go to get there. “Think about long-distance runners who will run a 26-mile marathon,” Hunter says. “They find their pace and then they stay with it. They may get weary and tired, but they find their zone and stay focused and concentrate on what

is needed to get to the end.” “Plenty of stories can be told about people who failed in the beginning, but made it to the top of their profession because they did not give up after being told they weren’t good enough,” Hunter says. “The ability to keep trying and pushing no matter how many failures or obstacles you hit is the power of perseverance and is what ‘WinAbility’ is all about.” Darlene Hunter, (www.darlenehunter.com), is president of Darlene Hunter & Associates, LLC, a motivational / inspirational speaker, author, life and business coach, and award-winning radio talk show host. Her new book, “Win-Ability, Navigating through Life’s Challenges with a Winning Attitude,” is her fourth on the theme of perseverance. She is the host of “The Darlene Hunter Show”, winner of the Fishbowl Radio Network 2013 Distance Show Of The Year Award. Hunter has been a top performer in management for more than 30 years.

The Best (and Worst) Cities for Urban Migration These metros top the lists for urban population growth or decline, according to a report from CBRE Global Investors By Lauren Shanesy

illennials are bound for downtown, as urban migration trends have picked up at a rapid pace. Urban population growth is outpacing that of the nation as a whole, according to a U.S. Urbanization Trends report from CBRE Global Investors. Currently, 80% of the U.S. population lives in large cities, and that figure is expected to increase. By 2030, three-quarters of the workforce will be comprised of millennials, most of whom rate a short distance to work or school as the most important factor when choosing a community. From 2000-2010, metros with populations of greater than 5 million increased their headcounts by 24%. Chicago tops the list—during the decade, more than 48,000 people moved to the Windy City's downtown (an area defined in the study as within two miles of city hall). Meanwhile, the urban population of some metros is waning. New Orleans saw the largest decline in its downtown population, with 35,313 people leaving the city, during a 20

decade defined by the tragic events of 2005. Here are the cities that reeled them in, and pushed them out, the most during the first decade of the 21st Century: Top Cities for Urban Migration 1.

Chicago: 48,288

New York: 37,422

Philadelphia: 20,769

San Francisco: 19,712

Washington, D.C.: 19,502

Top Cities for Urban Population Decline 1.

New Orleans: 35,313

Baltimore: 10,194

Dayton, Ohio: 10,165

Toledo, Ohio: 10,118

Saginaw, Mich.: 9,674 from PropertyManager.com a Service of AppFolio

Rental Housing Journal Metro • April 2015

RENTAL HOUSING JOURNAL METRO

10 Cities With Skyrocketing Rent By Christine DiGangi

orry, Silicon Valley — rent in San Francisco is still on the rise. Zillow's Rent Index, which looks at median rents in the nation's hottest markets, has San Francisco and San Jose at the top of its list for largest year-over-year increase. As unwelcome as that news may be for people in the Bay Area, it's probably not surprising. San Francisco tends to get the most attention when it comes to stories about the expensive places to live (New York, its constant competitor for that dubious distinction, saw only a 2.1% increase in median rent, compared to San Francisco's 14.9% jump), but housing costs have jumped significantly in some smaller markets, like Denver and Kansas City, Mo., as well. The Zillow Rent Index is based on the estimated monthly rental price of properties in Zillow's database, including single-family homes, condos, co-ops and apartments, regardless of whether or not they're listed for rent. Nationwide, median rent increased 3.3% from January 2014 to January 2015, at $1,350. Here are the metro areas that had the largest yearover-year price jumps.

10. Detroit Median rent, January 2015: $1,096 Increase since January 2014: 5%

2. San Jose, Calif. Median rent: $3,190 Increase: 13.4%

9. Phoenix Median rent: $1,225 Increase: 5.3%

1. San Francisco Median rent: $3,055 Increase: 14.9%

8. Houston Median rent: $1,497 Increase: 5.9% 7. Charlotte, N.C. Median rent: $1,235 Increase: 6.1% 6. Austin, Texas Median rent: $1,657 Increase: 7% 5. Portland, Or. Median rent: $1,587 Increase: 7.2% 4. Kansas City, Mo. Median rent: $1,214 Increase: 8.5% 3. Denver Median rent: $1,827 Increase: 10.2%

Only two of the 36 markets listed in Zillow's index had drops in median rent: Minneapolis-St. Paul (down 0.3%) and Chicago (down 0.5%), though both cities still have aboveaverage median rents, at $1,502 and $1,609, respectively. While New York and Los Angeles didn't have top-10 increases in their median rents, the first- and secondlargest cities in the U.S. still have some of the highest housing costs. L.A.'s median rent increased 4.9% from 2014 to $2,460 (third highest), and New York/Northern New Jersey came in at No. 4 with a median rent of $2,331. Rent experts consulted by Zillow for this report say Americans should expect to spend about 30% of their incomes on rent, as opposed to 25%, which the report says is the historical standard. No matter where you live, whether it has skyrocketing or steady rent, it's crucial to choose a place that fits your budget. Failing to pay your

rent may prompt your landlord to send a debt collector after you or even evict you from the property, both of which will seriously damage your credit. Poor credit makes it harder to get an apartment, not to mention the fact that utility providers often ask for deposits from poorcredit customers, so as tempting as it may be to breach your rental budget, that up-sell could really cost you. You can get a free credit report summary on Credit.com to see where you stand. from PropertyManager.com a Service of AppFolio

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uch! $230,400 in annualized leasing revenue is being lost by apartment communities around the nation! This is happening because 20 percent of the calls coming from future residents are being missed, which is silently draining the performance of the properties you own/manage. Using the call tracking system of an industry vendor as a resource, this article will summarize our research from 863 apartment communities in 33 states and the statistics below on missed calls are startling! Plus, we have provided a tool for you to calculate the lost leasing revenue for your specific properties and to share the results with your leasing teams. Summarizing the numbers: Using the call tracking system of an industry vendor for our research we evaluated 192,609 in-bound telephone calls placed by future residents to 863 apartment communities over the last 30 days. Based on this statistical information, 20 percent of the total calls went unanswered by these onsite leasing teams. This means 38,521

By Ernest F. Oriente, The Coach {Article #226…since 1995}

future residents did not reach a leasing professional the first time they called one of these apartment communities. Based on a national average rental rate of $800 per month, this means 30 million dollars in potential new resident revenue could not be served when they first contacted the apartment community of their choice. This also means this prospect might not be calling back as industry research has told us that a person shopping for a new apartment has a list of 7 to 10 communities to contact before they place their first call. Calculating the lost leasing revenue: Here’s a summary of our research: 1. An average apartment community receives 240 calls per month as a results of their marketing efforts to future residents. 2. Since 20 percent of these calls went unanswered by on-site leasing professionals, this means 48 calls from future residents were missed.

3. Based on national statistics, six of these 48 calls from future residents, or 12.5 percent, would have been converted into an appointment and a leasing tour. 4. Based on six leasing tours with future residents, two of these tours, or 33 percent, would have been converted into a lease. 5. If an apartment community loses two leases this month, at an average monthly rental rate of $800, this apartment community will lose $19,200 {$800 x two leases x a 12 month lease} in annualized leasing revenue. 6. If this trend continues, this apartment community will lose $230,400 {$19,200 x 12 months} over the next 12 months in annualized leasing revenue. I know these dollars seem big--and they are! The cost of missed telephone calls and lost leasing revenue is a silent drain on the success of the apartment communities managed/owned by your property management company. To calculate the

lost revenue at your apartment communities, please fill in the blanks below. When you are finished, E-mail it to ernest@powerhour.com fax it to 435-615-8670 and we will schedule a free 30 minute coaching call to review your statistics and to share our specific recommendations. A. Our apartment communities received _________ in-bound marketing calls this month. B. Of these in-bound calls, we are not able to answer _________ percent. {Remember, 20 percent is the national average.} C. Based on our company average, ____ of these ____ missed calls from future residents, or ____ percent, would have been converted into an appointment and a leasing tour. D. Based on our company average, from these ____ leasing tours with future residents, ____ of these tours, or ____ percent, would have been converted into a lease. E. If we lost ____ leases this month, ...continued from page 23

Rental Housing Journal Metro • April 2015

RENTAL HOUSING JOURNAL METRO

Afford to Lose ...continued from page 22 at an average monthly rental rate of $____, our apartment communities will lose $______ in annualized leasing revenue. F. If this trend continues, we will lose $___________ over the next 12 months in annualized leasing revenue. Tip From The Coach: The lost leasing revenue, based on the dollars above, is staggering. Be certain your telephone systems can handle the volume and velocity of telephone calls received at the apartment communities you manage. In addition, a number of companies can provide your leasing teams with the telephone number for every missed call placed by future residents. By returning these missed calls in a timely fashion, your leasing teams can easily recapture what is otherwise an enormous loss of leasing revenue. Once you have a vendor who can provide this service for your property management company, then compare the national statistics in this article with the statistics at the properties you manage or own. Want to hear more about this important topic or ask some additional questions about how to accurately track your future resident tele-

phone calls and evaluate your marketing? Send an E-mail to ernest@ powerhour.com and The Coach will E-mail you a free TeleForum invitation. Author’s note: Ernest F. Oriente, a business coach/trainer since 1995 [33,450 hours], serving property management industry professional since 1988--the author of SmartMatch Alliances™, the founder of PowerHour® [ www.powerhour.com ], the founder of PowerHour SEO [ www. powerhourseo.com ], the live weekly PowerHour Leadership Academy [ www.powerhourleadershipacademy. com/pm ] and Power Insurance & Risk Management Group [ 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, national real estate and apartment building insurance, SEO/SEM web strategies, national WiFi solutions [ www.powerhour.com/propertymanage-

ment/nationalwifi.html ], powerful tools for hiring property management SuperStars and building dynamic teams, employee policy manuals [ 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 8000+ 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 225+ articles for the property management industry and created 400+ 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

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RENTAL HOUSING JOURNAL METRO

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