Metro Rental Housing Journal May 2015

Rental Housing Journal Metro

May 2015

3. Training the Next Generation of Real Estate Investors

9. Multifamily NW – A Little Recognition Can Go A Long Way!

4. What Does a Messy Car Have to Do With a Bad Tenant?

16. Ask The secrey Shopper 17. Home Buying Pays Off Fast, but Hurdles Remain for Renters

5. Tongue Tied in Texas 6. RHAOregon – Spring Fever!!!!

18. Vacation Home Sales Soar to Record High in 2014, Investment Purchases Fall

7. Training the Next Generation of Real Estate Investors

20. 4 Reasons Your Business Should Be On Social Media

8. Fair Housing Council of Oregon – Fair Housing and Advertising

22. Low Housing Supply Squeezes Affordability

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

Portland’s Rising Demand Keeps Supply in Check

Portland Metro Among Ten Best Markets for Real Estate Investing

T

he nation's economy is growing at its fastest rate since 2000, which spells great news for residential property investors for the year ahead. The latest data from HomeVestors (the "We Buy Ugly Houses®" people) and Local Market Monitor, the national real estate forecaster, shows excellent conditions from coast to coast, whether the property is for rental or resale.

"The Top 10 markets for real estate investment all have a common thread: a fast growing economy, which means more jobs and more renters," said Ingo Winzer, president and founder of Local Market Monitor.

"This also means that rent and property values will be increasing in many markets because housing construction has been at very low levels for years and can't possibly catch up with the increased demand."

Topping the Best Markets list once again are Texas cities: Houston (1), Austin (2) and Dallas (3), with Denver (4) and Orlando (5) rounding out the top 5, all which have seen substantial job and population growth.

"Texas continues to be a sure bet when it comes to real estate investing. Lower oil prices may slow some areas, but the diversified economy and pent up demand for real estate will help to mitigate the impact on rental markets," noted David Hicks, HomeVestors co-president. "Places like Austin and Dallas have rapidly growing technology and financial sectors that make the oil slump less significant."

Along with job growth and population growth, relatively low home ...continued on page 15 Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007

E

Portland Apartment Research Report – Portland Metro Area, First Quarter 2015

mployment growth in Portland will outpace the national average in 2015 as payroll expansion approaches a 15-year high. A large pool of skilled workers are encouraging established tech firms such as eBay and Salesforce.com to open local offices. Also, emerging technologies such as cloud computing and social networking are motivating tech startups to hire. Large firms with a long-standing presence

are also expanding. In Hillsboro, for instance, Intel will complete construction at its Ronler Acres campus this year after five years of development. Many of the newly employed tech workers are young professionals who desire to reside in a live-work-play environment. As recent graduates grapple with the memory of the most recent housing bust and contend with the high cost of homeowner...continued on page 11

How to Profit in Real Estate Without Flipping, Renting or Beating Bubbles Investment Banker Advocates for Lost Art of The ‘Second Oldest Profession In The World’

M

ost people believe that making a profit in real estate means buying and selling at the right time, or renting their property and profiting over the long term, says investment banker Salvatore M. Buscemi.

Being handy with property renovations and having a great relationship with a bank can also prove essential. But what if you’re better suited for a straightforward approach to short-term, high-interest financing for higher-than-normal returns –

PRSRT STD US Postage PAID Portland, OR Permit #5460

independent of the established banking norms? What if you want to build better relationships for safer investments?

That answer may be found in hard money lending, the “second oldest profession in the world, right after that other one,” says Buscemi, managing director of Dandrew Partners LLC in New York City and author of “Making the Yield: Real Estate Hard Money Lending Uncovered” (www.MakingTheYield. com).

Hard money lending is a type of community lending and here’s how it works, Buscemi says. Investors act like a bank and make short-term loans to small businesses that buy and repair distressed properties, refinance them with conventional bank loans and repay the short-term loans at higher interest rates, generating more profitable returns for the original lenders.

“Cash flow is something everyone needs yet few people have – that’s ...continued on page 19

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Rental Housing Journal Metro • May 2015

RENTAL HOUSING JOURNAL METRO

Training the Next Generation of Real Estate Investors

Y

By Clifford A. Hockley, President Bluestone & Hockley Real Estate Services

ou don’t feel any older... but who is that person in the mirror?

After fifty years of investing you have grown a portfolio that nets over $25,000 a month and you feel good about what you have accomplished. You ‘retired’ years ago when you hired a real estate property management company to handle the day to day upkeep of your investments and prior to that you made sure to build up significant reserve accounts for each of your properties, planning ahead for taxes, major capital expenses, vacancies that might require significant remodeling, and (in the case of commercial buildings) large leasing commissions.

This allowed you the time to check off items on your bucket list while maintaining the income to finance each adventure. Whether you’re in a Paris hotel room or on a lounge chair at a beach resort, you still carefully review each monthly property report to keep apprised of

your investments. Life is pretty good, but you know it can’t go on forever.

You are aging; you may have small memory lapses now and then or a lack of stamina to keep up with rapid change. You know that you need to get young blood involved in your investments. You don’t need to hire another service provider. You need to recruit another you. Everyone you talk to offers the same advice, “Do you have kids?” they ask, “Are they interested in taking over?” You know you should have asked yourself this question earlier but somehow the opportunity escaped you.

Even the closest families sometimes shy away from sharing financial details with each other. Maybe your kids were free spirits in their younger years and you questioned their judgment, maybe they never seemed interested in real estate, or maybe they were focused on their own career path and you didn’t want to complicate their lives. Maybe you don’t have children but some capable nephews and nieces you never approached. In any case, you have no idea if these potential successors are interested in real estate or invest-

ing for that matter.

You also need to understand that just because these people are related doesn’t mean your successor(s) have real estate in their DNA or the ability to collaborate well with each other.

You need to identify people who are passionate about real estate investing, like you are. They will need the ability to work cooperatively in a way that will last into the future.

How do you gauge interest, compatibility and aptitude for a job they will assume after you are gone?

Introducing the next generation to real estate At this point, the best approach is a fairly direct one. Invite your potential successor(s) to visit you for a planning session on the future of your real estate investments. Give them some idea of the nature of your real estate holdings, your intentions of passing it on to the next generation, and explain why their involvement now will help make the transition a successful one. Let them know to expect something more like a workshop and less like a family reunion and discourage them from bringing their spouses or children.

In preparation for the planning session, have your property manager prepare a briefing book for each property which includes the property histories, tenant information, condition of the property, latest capital improvements, individual balance sheets and income statements on a year over year basis, and then schedule him or her to take your group on a tour of your properties.

After your tour, break down the business details to your successor(s).

Explain the LLC structure of your investments, the trust structure of your estate, and what that would mean to them. Review the potential estate taxes that might arise as a result of your passing and how you propose they manage that burden.

If you have a number of successors, you will need to designate one to work with the property manager on day to day decisions. It is important, however, to train all successors so they can create a process of decision making. Major decisions over $10,000 and those involving strategy and refinancing, purchasing and sales of properties will involve all of 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

What Does a Messy Car Have to Do With a Bad Tenant?

Portland Area Rental Owners Association www.PortlandAreaROA.com Membership questions - 503-364-5468 Email inquiries - Info@PortlandAreaROA.com

I

’m sure that most landlords know the value of an in-depth screening process when deciding to approve or deny a tenant. You would be surprised how many landlords that I talk to actually skip this step and just trust what is written on a tenant’s application. It seems to be most prevalent among investors that manage their own properties and either don’t want to take the time or simply don’t know where to order the background reports necessary.

In my opinion this is the most costly mistake that any landlord can make. If an applicant has a criminal record or a bad rental history you can rest assured that they won’t tell you this on their application. They’re gambling on the fact that you might not follow up with a detailed screening. Typically this happens when they know that the owner of the rental is the same person that is managing the property. These tenants typically won’t even apply to a company like mine (www.

C B P ro p e r t y M a n a g e m e n t . c o m ) because they know that doing a detailed screening is simply our job and there is no way that we will skip that step.

Screening doesn’t start when the

application is turned in, it actually starts during the very first communication with that tenant. More importantly during the showing. You should always be present for showings and never just give out the key or a lock box code. If you aren’t present then you obviously risk vandalism, but you also miss out on the ability to start the screening process.

Keep in mind that your ultimate decision of whether to approve or deny a tenant should be made after getting the whole picture of who they are and how responsible of a life they have lived. Some negatives can be overlooked if there are a lot of other positives.

Having a conversation with someone while walking through the unit can give you a very good feeling of what their demeanor and behavior is. You also get to enlist a couple little “tricks” if you meet with them in person. One being at the end of the showing, be sure to walk them out to their car. As far as they are concerned you are simply being polite and having a conversation with them. If you are renting a non-smoking unit and they say they don’t smoke then you will be able to verify this if you are within a few feet of their car door

when they open it. Most smokers will smoke in their car and you will be able to smell it. Also take a peek inside their car through the windows as you are standing there. If it is messy with fast food wrappers and other garbage throughout the vehicle then they will most likely keep their home in this same condition.

Obviously this isn’t a reason to deny them, but it just adds to the total picture you are creating of them while going through the screening process.

We may overlook this if everything else checks out or if they happen to have a job that requires them to be in their vehicle for long periods of time.

Once they turn in an application don’t skip the step of ordering their background reports. It is actually a lot easier than you might think. If you do a simple search on any search engine website for “tenant screening” you will be given numerous choices. Personally I only like to use these companies to get the credit, criminal, and civil court reports. This will tell you if they pay their bills on time, have a criminal record that you should be concerned about, or have been a party to an eviction in civil court.

When it comes to the credit report

I would suggest not putting too much emphasis on the actual score and look at their actions. Some of our absolute best tenants are ones that went through a foreclosure during the down economy over the last 7 years. Instead of looking at the score, look at why their score is low and what their actions have been since the last delinquent payment or collection was posted. If you see a collection account it will show when their last recorded payment was and if they are up on their payments. If it doesn’t then you can always ask for payment verifications from the applicant. Everyone has made mistakes or possibly just lost a job at some point and couldn’t pay their bills. The important thing to find out is if they took responsibility for their actions and have handled it responsibly by attempting to get the debt paid off.

When it comes to criminal reports you should use your best judgement.

Obviously some things are way more concerning as a landlord than others.

If they have violent crimes on their record and they are moving into a multi-unit building we try to avoid them as they may pose a threat to continued on page 10

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Rental Housing Journal Metro • May 2015

RENTAL HOUSING JOURNAL METRO

Tongue Tied in Texas Behind The Leasing Desk with Heather Blume

Dear Heather, I was recently fired from a job I worked at for 8 years. I won't go in to details, but the condensed version is that I did my job, and something went wrong, our owner got furious, and I guess I got sacrificed. I've never ever been fired from a job before, and I'm still just stunned. I feel totally worthless, and worst of all, I know that I did what anyone would have done in that situation.

Now I've been applying for new jobs, and if the companies do finally call me in for an interview everything goes fine until they get to my employment history. I don't know what I'm supposed to say when they ask me about why I left my last job. Do I tell them I got fired, or that I left, and do I tell them the specifics of what happened if I do tell them that I got fired? How can I say the right hireable words?

-Tongue Tied in Texas Dear Tongue Tied, The phrase, "I feel your pain," is universally overused, but in this instance, I actually CAN feel your pain. Being fired is hard on anyone's self esteem, and it's hardest the first time it happens, especially if you thought that you were really good at

your job. The good news is that it's DEFINITELY something you can bounce back from and find yourself in an even better place at the end of it all!

First, I want to address that feeling of being worthless that you've got. You're going to need to shake that before any employer is going to be able to get enough confidence to hire you again. As someone who once hired people frequently, I'll tell you that confidence balanced with communication and people skills is my magic mix for people I want on my staff, so you need to find some way to get to feeling better about yourself.

And if you're thinking that sounds easier than it actually is, you're right.

What you're essentially going through is a mourning period, just like if someone you loved suddenly left or died. Basic path of grief goes like this - Shock and Denial ->Pain and Guilt -> Anger and Bargaining ->Depression, Reflection and Loneliness -> Clarity -> Reconstruction -> Acceptance and Hope. The problem with the path of grief is that you have to go all the way through it, and it's not always a short process. Personally, when I

traveled this path, it took me almost 4 months to really get to a good place inside, despite the face I was showing to the world.

Next, as to how you answer that question... Well, there are a few schools of thought on this one. Some people say that honesty is always the best policy. This can be true, especially in an industry as tiny as ours is. Odds are, the hiring manager already knows the truth, so she or he is just wanting to see how you answer the question. I would avoid using the word "fired" when the question comes up. The best phrase I've ever heard was told to me by a good friend and mentor, Jesse Hartman, who suggested that I use the words, "We decided to part ways," or , "It was time to move on."

Remember, in an interview, they're judging you on your poise and professional communication skills, so focus on keeping things positive.

If the interviewer brings up the fact that you were terminated and asks you why, I suggest NEVER EVER airing your and your company's dirty laundry. Don't go into specifics, don't tell the whole story and don't cry. One of the best responses in this case is to say, "It

wasn't a good fit for me, but that's one of the reasons I like what I've seen about your corporate culture..." and then go in to examples as to why you would fit in well with their company and what you can bring to the table.

Don't let fear hold you back. The job market does have jobs for people who are willing to put forth the effort to get them! Hang in there and focus your efforts on healing over the scars from your dismissal, learning what you can from the incident, and finding a company that can be a great long term home for you moving forward.

Good Luck!

Heather Dear Heather, I just got written up for violating fair housing. It's completely not fair, since I wasn't being discriminatory at all! We have an indoor pool at my community and in the early afternoon there are a lot of senior citizen swimmers in there. Last weekend, one of them was very annoyed because there were a lot of little kids in the pool who were splashing around and cannon balling into the water, right by them. She complained, so I told the kids ...continued on page 13

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Rental Housing Journal Metro • May 2015

W W W. M Y S C R E E N I N G R E P O R T. C O M 8 7 7 - 7 0 1 - 0 0 4 4

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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.

John Sage RHAOregon President

President’s Message: Spring Fever!!!!

I

start to think about my business. Am I up on the latest forms and how to use them? Is there a class that I need to take to make sure I have the latest information? Fortunately, RHA Oregon has several classes that would be of benefit to me in the month of May. After checking the calendar of events on the website, I find that RHA has an Online Tenant Screening class on May 6th and Landlording 101 on May 9th, which is taught by Attorney Mark Passannante. Then on May 14th is Becoming a Rental Housing Provider, taught by Ron Garcia. So here are several great opportunities for me to increase my knowledge base. I don’t know if you have heard either of these gentlemen speak. I have and can tell you that they bring a wealth of knowledge and experience to the subjects that they cover.

Now I am feeling prepared for the next month and start to look forward to the upcoming months. What does RHA Oregon have in store for me?

Well, in June there is the free dinner hosted by Contract Furnishings Mart, in July is our Annual Starry

s that what we are all feeling right now [Spring Fever]? The warmer weather is making it difficult to concentrate on work and not dream about taking the day off and going fishing, hiking, golfing, or just going for a drive to the coast to walk along the beach. May is such a beautiful time of the year here in Oregon.

The new foliage and splashes of colorful flowers that are everywhere.

Mother’s Day and Memorial Day weekend are not too far away.

Planning a trip on Memorial Day is usually done at this time of year if not sooner. So now is a great time to start making plans for spring and summer projects too. I start going through all my notes for projects that were meandering around in my head all winter: Repairing the deck at the rental property, cleaning the moss off the roof and gutters, putting down new bark dust and trimming all the arborvitae.

So I sit down and go over the list, figuring out which project is the highest priority and then scheduling each project on my calendar. Once this is done I can move on. Then I

Nights Event at the RHA Office. If you attended last year’s event you will remember that we raised funds for JOIN and were able to get a family off the streets and into a home. In August is our annual Oaks Park picnic.

I am looking forward to the next month and a busy, exciting summer.

My hope is that you as an RHA Oregon member will come out and have some fun with us. Get the education and training to help your

business grow and be successful and also come have some fun with us at the Starry Night event and the Oaks Park Picnic.

Sincerely, John Sage, President RHA Oregon Stegmann Insurance Agency Inc

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RENTAL HOUSING JOURNAL METRO

Renters Share Concern for Safety But Don't Reach Out To Neighbors Pemco's "Great Neighbor Index" Shows Homeowners More Likely Than Renters To Enjoy Who's Next Door

T

he latest poll from PEMCO Insurance suggests that renting may come with more woes than leases and landlords. A recent survey of Washington and Oregon residents reveals that renters, when compared to homeowners, share serious concerns about the safety of where they live, but most fail to take one of the most logical steps to increase their security – getting to know who lives next door.

According to the PEMCO Insurance Northwest Poll, approximately 37 percent of Northwest residents rent their home and of those, about one-quarter (23 percent) say they are extremely or very concerned about safety in their neighborhood.

But the PEMCO Poll shows that despite renters' concern, they are less likely than homeowners to know their neighbors, which might ensure a greater sense of security. Nearly three-quarters of renters (72 percent) know fewer than half of their neighbors, and 50 percent of renters know less than one-quarter of the people who live nearby.

"Our poll found that renters – the people who seem to have the most to gain from knowing their neighbors

– are the least likely to make connections that might make them feel safer at home," said PEMCO spokesperson Jon Osterberg. "Studies show that building community, through organized activities or even informal gatherings, leads to a stronger sense of security."

Across the Northwest, those who own their home are significantly less worried about safety in their neighborhood – more than half (59 percent) are "not very" or "not at all" concerned about safety where they live. In fact, PEMCO's trending data reveals that homeowners in Washington have become less concerned over time, from 42 percent in 2008 to 50 percent in 2014 who say they aren't very concerned about safety where they live.

In Oregon, just 11 percent of homeowners are very concerned about neighborhood safety while nearly two times as many renters (20 percent) express the same or even greater concern.

One possible conclusion of PEMCO's latest poll is that homeowners feel more secure because they're acquainted with who lives next door. The poll revealed that

homeowners are twice as likely as renters to be acquainted with a majority of their neighbors – 26 percent of homeowners know at least three-quarters of their neighbors while just 13 percent of renters say the same. About half of homeowners (46 percent) know at least half of their neighbors, according to the poll.

The poll also suggests that homeowners are more likely to trust their neighbors. More than half of those who own their home (54 percent) also let their neighbors know when they'll be out of town, while just 29 percent of renters do the same.

Residents over age 55 are among those who are more inclined to share vacation dates with neighbors. Sixty percent of all residents over age 55 – whether renters or owners – inform their neighbors of vacation plans, while just 38 percent of their younger counterparts do the same.

That may be because older residents have more established households. According to the poll, those over 55 have resided at their current address an average of 16 years, and 45 percent of them know a majority of their neighbors. By contrast, residents under 35 have lived in their continued on page 20

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Fair Housing and Advertising ON-SITE-NW SEATTLE

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

By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon unequal standards, the National recently reread a 2009 report pro- • There is no disagreement that ARIZONA APT. NEWSAlliance (NFHA) Fair Housing duced by the National Fair VALLEY, landlords,METRO, real estate agents, urges Congress to amend the Housing Alliance (NFHA) on and others who create and place Communications Decency Act. how internet housing ads perpetuate these discriminatory ads are discrimination (http://www.nationlegally liable for violating the Fair • The federal Fair Housing Act alfairhousing.org/LinkClick.aspx?fil Housing Act. In passing the Fair makes it illegal to make, print eticket=zgbukJP2rMM%3d&tabid=2 Housing Act in 1968, Congress or publish or cause to be made, 510&mid=8347). wanted to hold publishers printed or published housing Feb,toApr, Jun, Oct, Dec As we can attest from our ownAug, responsible for third parties as a ads that discriminate, limit or office’s investigations, illegal ads are way of eliminating the problem deny equal access to apartments prolific online, decades after most efficiently. or homes because of race, color, Congress and the Fair Housing Act1 • Every day in the United States, national origin, sex, religion, made them illegal. Following are familial status and disability thousands of people view rental some highlights from the report. <There are, of course, additional advertisements that illegally state and local protected deny housing to families with classes1.>. children and others protected The Fair Housing Act covers all by the federal Fair Housing Act. • In order to comply with the housing ads and, while there’s Although newspapers have Fair Housing Act, newspapers confusion over liability online been held liable under the Fair utilize screening systems to services face when illegally Housing Act for publishing keep advertisements containing discriminatory ads are posted on discriminatory housing discriminatory statements from their sites, it is clear that the advertisements with statements being printed. <And they’re often poster – that is, the housing such as “no kids,” or “couples muchNEWS more conservative than fair provider doing the advertising – is VALLEY, METRO, ARIZONA APT. only,” the publishers of similar housing advocates are! Take a most certainly liable. ads on the Internet have not been look at FHCO’s popular article, held to the same legal standard.

“The List” (www.FHCO.org/ Be sure you’re up-to-speed with pdfs/article_thelist.pdf) for more • In order to address this disparity the letter and the spirit of the law, this and related urban legends).> in the law, which holds print as well as developments in the However, a legal interpretation advertisements and online fair housing world. of the Communications advertisements to separate and

I

Salsbury Industries

ON-SITE

Salsbury Industries

Jan, Mar, May, Jul, Sep, Nov,

Decency Act (CDA) holds that interactive Internet providers, like craigslist, are not publishers and, therefore, are not liable for violating the Fair Housing Act if discriminatory housing ads are published on their sites.

Yet it needn’t be difficult. Internet providers can implement filtering systems just as print publications can (arguably it’d be all the easier for them to do so) to prevent individuals from posting illegally discriminatory verbiage. Either way, whether or not a site is liable in a given situation (we feel it is), the poster most certainly is!

As a housing provider advertising residential properties you should know that fair housing advocates such as our office and others, including national groups, periodically comb sites and publications for violations. Our advice: treat any possible form of advertising – whatever your role in it – as if it falls under federal, state, and / or local fair housing laws. This includes written, ...continued on page 14

1Federally protected 1010 Eastunder 62nd the Street, Angeles, 90001-1598 classes Fair Los Housing Act CA include: race, color, national origin, religion, sex, familial status (children), and disability. Oregon Phone: 1-800-624-5269 • Fax: 1-800-624-5299 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 FHCO.org/mission.htm and read the section entitled “View Local Protected Classes” for more information.

September

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Octoberp

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Rental Housing Journal Metro • May 2015

PO Box 2006 • Clackamas, OR 97015

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

A Little Recognition Can Go A Long Way!

A

ppreciation is a basic fundamental human need. Each of us can likely remember a time- perhaps in early stages of childhood, schooling, sports, or career– when someone told us “great job!” It is likely that it made you feel a certain way. Hopefully it was motivating, energizing, empowering and encouraged you to follow a path that would lead to obtaining more positive feedback.

We feel good when we are praised because it makes us feel valued.

When employees receive confirmation that their work is valued, productivity and satisfaction levels rise.

Morale is enhanced and a positive energy flows throughout the workplace.

So why is it important to feel good at work? I will suggest that attitude determines output.

Employees are people - and provide the core of any business structure (we have not yet, thankfully, reached the era of total automation, depending on robots for every part of the business model). Apathetic or disgruntled employees can drain the energy out of any production or service function. Conversely, energetic

and engaged employees will pass on enthusiasm to the client or customer.

Customers are more likely to establish and maintain relationships if they are served by passionate employees.

As such, engaged employees are a boost to any business’ bottom-line.

As leaders and managers how should we best practice employee recognition? First of all, remember that employee recognition is not complex or difficult – it is an obvious thing to do. In spite of the benefits of employee praise, it is surprising that so many businesses today either do not do it at all or do it poorly. Many office environments inspire apathy rather than excitement. It is crucial that managers receive coaching and reinforcing. Employee recognition must not be an undervalued management technique.

Staff appreciation activities do not have to be expensive to increase engagement and boost morale.

The simplest of practices can often produce the most noticeable favorable results.

The following are ten ideas that can be easily and quickly implemented by any organization with relatively little cost or complexity.

• A sincere verbal word of thanks.

• A small gift (book, flowers, a

Call the employee in and shake hands with the person you appreciate and tell them you are grateful for their efforts.

card with movie or lottery tickets inside). The occasional token of appreciation shows you are paying attention and not taking for granted the dedication of loyal employees.

• Make work fun. Have a weekly

event to raise morale. An example: Have employees bring in baby pictures. Have a contest to see who can match the most pics with co-workers.

• A framed photo of the team or

certificate of appreciation (both can be signed by the team) A collective “thank you” form coworkers definitely conveys value for contributions.

• Acknowledge their efforts/

accomplishments in a companywide e-mail. Spread the word.

This sends a strong message that hard work and accomplishment are appreciated and recognized.

• Frame it! Have employees

write on a scrap of paper one thing they really like or admire about a co-worker. Frame these along with a photograph of that employee. A gift that truly promotes appreciation and connection.

• A write-up about them in

the company newsletter.

Showcase your star-players.

This demonstrates you are an employer who wants to share people’s accomplishments with the team. And motivates others to reach similar goals.

• Remember the “significant other”

vacation time. A certain number of days they can use without feeling guilty. Tie it to accomplishment or extra work put in.

• Applause! A standing ovation

A thank you note or gift basket sent to the spouse. This sends a strong message that a company understands work impact to those significant people around the employee.

• A free pass for some additional

...continued on page 18

Multifamily NW

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Educational Opportunities

5/6/2015 May Landlord Study Hall

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5/8/2015 It's the Law Lunch Time Series: FEDS: Mastering the Evictions Process

Multifamily NW offers an astounding amount of education and professional development courses at all levels! These educational opportunities are provided throughout the year and include classes of all types and on a variety of topics. Multifamily NW as an affiliate of the National Apartment Association (NAA) and we offer certified designation courses including Certified Apartment Manager (CAM), Certified Apartment Supplier (CAS), National Apartment Leasing Professional (NALP) and Certified Apartment Manager Technician (CAMT). We offer a robust class catalog serving areas: Portland, Vancouver, Salem, Eugene, Bend and other locations throughout the state.

5/11/2015 CAMT Electrical Repair and Maintenance 1&2 5/11/2015 Low Income Housing Basic Tax Credit Two-Day Course

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5/18/2015 OR Landlord Tenant Law Part 2

Form of the Month

Multifamily NW is a Certified Continuing Education Provider with the Oregon Real Estate Agency. You can count on Multifamily NW’s Academy of Higher Learning to provide the most relevant and engaging courses to choose from in order to accrue the required 30 hours of class work for license renewal every two years.

Multifamily NW Office, 16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 800-632-3007 • 503-213-1281 • Fax 503-213-1288 Rental Housing Journal Metro • May 2015

OREGON SINGLE FAMILY / CONDO / MULTIPLEX

EXTERIOR CARE ADDENDUM DATE __________________________________________ PROPERTY NAME / NUMBER ___________________________________________________________________________________________________________________________________________________________________ RESIDENT NAME(S) ___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

___________________________________________________________________________

UNIT NUMBER ___________________________________ STREET ADDRESS ___________________________________________________________________________________________________________________________________________________________________________ CITY ___________________________________________________________________________________________________________________________________________________ STATE ___________________________________ ZIP _____________________________________________________________

1. If the yard is to be maintained by Resident: =

= = =

It must be maintained in a clean and well groomed manner, including but not limited to, adequate watering of all lawns and planted areas, mowing and edging the lawn(s), fertilizing the lawn(s) and all plants as needed, removing invasive weeds, and properly trimming shrubs and trees.

Lawns should be mowed to never exceed a height of 3 inches.

If the Premises are in a city that issues leaf clean up notices, Resident must timely comply with such notices.

If yard is not adequately maintained, in addition to all other remedies for material non-compliance, Owner/Agent may, after at least 10 days’ written notice, perform maintenance work on the yard and bill Resident for such work. If the lawn or planted areas die due to inadequate watering, or other actions or inactions by Resident, Resident will be responsible for all costs to replace the dead lawn and/or plants.

2. All vehicles on the Premises must be parked only in spaces designed for vehicle parking. Absolutely no cars or other vehicles may be driven or parked on the lawn or planted areas. All vehicles owned by Resident or their guests must be legally parked if on a public street adjacent to the Premises. All vehicles on the Premises or parked on an adjacent public street must be in working order, properly licensed and insured.

3. Resident will keep the driveway free of oil spots.

4. Resident will keep all garbage areas cleaned up. All approved curbside trash and/or recycling receptacles may not be visible from the street any time other than collection day.

5. If pets are allowed, or Resident has an assistance animal, all animal waste must be promptly picked up and disposed of properly. Any damage caused by such pet/assistance animal is the responsibility of the Resident.

6. If smoking is permitted, cigarette butts must be deposited only in fireproof receptacles. BARK DUST IS COMBUSTIBLE AND CAN BE IGNITED BY CIGARETTE BUTTS. 7. Resident will keep all decks and patios properly maintained, including sweeping leaves.

8. All barbecues must be kept at least 10 feet from the exterior of the home and any combustible materials, and operated in compliance with all manufacturer’s directions, to reduce the risk of fire.

9. Clutter on the outside porches and yard is not allowed. No indoor furniture is allowed in the yard, on porches/patios (front or back), alongside the residence or anywhere on the exterior of the Premises.

10. Resident will notify Owner/Agent of all needed fence repairs.

11. Resident is responsible to winterize the Premises by placing faucet covers on all exterior hose bibs, draining sprinkler systems and ensuring proper heat of the interior of Premises during the winter months. If the Premises include sidewalks, walkways and/or driveways, Resident is responsible for keeping the sidewalk, walkways and driveways free from snow and ice. Resident will be responsible for damages caused by inappropriate use of chemicals for snow and/or ice removal.

X

_____________________________________________________________________________________

X

RESIDENT

_____________________________________________________________________________________

X

RESIDENT

_____________________________________________________________________________________

RESIDENT

X

_____________________________

_____________________________________________________________________________________

_____________________________

_____________________________________________________________________________________

_____________________________

_____________________________________________________________________________________

DATE

DATE

DATE

X X X

RESIDENT

RESIDENT

RESIDENT

_____________________________________________________________________________________

ON SITE

RESIDENT

OWNER/AGENT

Form M205 OR Copyright © 2015 Multifamily NW ®. NOT TO BE REPRODUCED WITHOUT WRITTEN PERMISSION. Revised 3/2/2015.

We are pleased to announce our partnership with Grace Hill, enabling us to offer you 24/7 online training with their incredible classes! Grace Hill offers highquality, interactive property management training that is available anytime and anyplace you have high-speed access to the internet. To ensure you get continuing education credits and ease in registering for classes, visit our website at www.multifamilynw.org, under “Professional Development.” Here you can access a variety of classes available at your convenience through our partner Grace Hill.

Single Family/Condo/ Multiplex Exterior Care Addendum M205 OR The Multifamily NW Exterior Care Addendum is a brand new form designed to address the many unique variables present in the exterior care of a rental home. Specific expectations are detailed concerning property landscaping, vehicles & driveway care, deck/patio maintenance, barbecue safety, trash protocol and more! This form is ideally signed along with the Rental Agreement and other essential move-in documents.

_____________________________

DATE

_____________________________

DATE

_____________________________

DATE

_____________________________

DATE

MAIN OFFICE (IF REQUIRED)

9

RENTAL HOUSING JOURNAL METRO

Messy Car ...continued from page 4 their neighbors. You also want to look out for dishonest crimes like fraud and anything that would give you reason to not trust them.

The civil report will let you know if they have been a party to a lawsuit or eviction in the past. If there is an eviction then you definitely want to get that landlords opinion of what happened. In most cases you won’t want to rent to that tenant, but in some cases it was simply a matter of the tenant losing their job and not being able to afford rent any more.

The main deciding factor for me is whether the tenant made good on the money owed to that landlord and if there was any intentional damage caused to the unit. If they have made good on paying that landlord the money owed or they have a payment plan and haven’t missed any payments then they might still be acceptable.

Then there is the previous landlord interviews. Be sure to check with both the current landlord and the one previous. Unfortunately not all landlords are honest and the current landlord may tell you they are perfect tenants in an attempt to get rid of some bad tenants. The previous landlord has no skin in the game and will most likely be honest with you if they had a bad experience with your applicants. The main questions you should ask are about their ability to pay rent on time, if they

had to post any adverse action notices, and if they would re-rent to these tenants if they applied for their unit again. Also be sure to find out if there was any damage to their unit when these tenants moved out and how they handled it if there was money owed by them.

The main thing to remember when screening a tenant is that no matter how busy you are it will be well worth taking the time to be very detailed. Document everything that you base your decision on. If you deny them and they want to challenge it then you should be able to prove that you had grounds to do so.

Within our company we end up only doing 1-2 evictions every year even though we manage properties in Portland, Salem, Eugene, and all of the surrounding areas. The main reason is that we do a very detailed screening and tenants know up front that if there is something negative in their background we will most likely find out about it.

Happy Screening!

Christian Bryant Portland Area Rental Owners Association (www.PortlandAreaROA. com) Coldwell Banker Property Management (www.

CBPropertyManagement.com)

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

10

Rental Housing Journal Metro • May 2015

RENTAL HOUSING JOURNAL METRO

Portland's Raising Demand ...continued from front page ship, apartments are often favored by this cohort. The market’s strong job growth has spurred rental demand, causing vacancy to plummet to a historical low and subsequently sparking a new construction cycle. As a result, development of new units has accelerated throughout the metro. Portland’s robust building activity will add approximately 6,100 apartments to the market this year. Absorption of these new units may be slow initially due to lease-up periods, but more than 5,500 units are expected to be absorbed over the year, keeping market vacancy sub-4 percent allowing effective rents to rise.

Investors are expanding their portfolios in the Portland market because of its strong demographics, job creation, and steady rent growth.

Additionally, with the announcement that interest rates will remain low, an opportunity for investors to lock-in low, long-term interest rates

is driving more buyers to scour the market for assets. Although the market’s strong performance and growing economy are encouraging many owners to hold, listings may nonetheless increase as owners seek to transact while buyer competition remains intense. As a result, trades should rise throughout the market.

Following the city of Portland’s transactions, Beaverton, Gresham, Hillsboro and Vancouver remain areas investors are drawn. Out-ofState buyers searching the market for yields higher than those found in their respective markets are targeting Beaverton and Vancouver, where properties are trading in the low-7 percent range, a 100 basis points higher than the metro average.

than 32,000 positions were created last year.

Construction: After delivering nearly 4,400 rentals in 2014, builders will step up production and bring online 6,100 units this year. Approximately 1,900 rentals will be delivered in the Central Portland submarket, and an additional 1,600 units are slated for the East Portland submarket.

4,800 rentals.

Rents: Market effective rents will rise 6.6 percent to $1,114 a month this year. Though this will be slower compared to last years 7.0 percent growth, Portland’s apartment rental rates have increased 5 percent or more annually since 2010.

Published Courtesy of Marcus & Millichap

Vacancy: The vacancy rate will climb 50 basis points to 3.3 percent this year, which will completely erase the decline recorded in 2014, when residents occupied nearly

2015 Annual Apartment Forecast Employment: Payrolls in Portland will expand 3.2 percent, or by 35,000 jobs, during 2014 to establish a new high for total employment. More

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www.empirepainting.com 1-888-278-8200 Rental Housing Journal Metro • May 2015

11

RENTAL HOUSING JOURNAL METRO

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ental affordability is as bad as it's ever been across the U.S., in part because there are not enough new, affordable units to meet demand - U.S. renters can expect to spend 30.1 percent of their income on rent, while homebuyers can expect to spend about 15.3 percent of their monthly income on a mortgage payment.

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- Affordability is worst in fastgrowing cities that have fallen behind in building homes to keep up with population growth.

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- The U.S. Zillow Rent Index was up 3.4 percent year-over-year in February to $1,355. The Zillow Home Value Index rose 4.9 percent year-over-year to $178,700.

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SEATTLE, March 27, 2015 / PRNewswire/ -- The least affordable housing markets are those where new housing permits have not kept up with population growth, according to a Zillow® analysis of U.S. rental and mortgage affordabilityi.

Affordability is best in places that either have slow population growth – such as Detroit – or have met new growth by building new housing units. Chicago, for example, permitted 906 new housing units in 2012 and 2013 for every 1,000 new residents between 2013 and 2014ii.

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12

Metro area

February ZHVI

Monthly Income Spent on Rent (2014 Q4)

Permits per 1000 new residents

$178,700 $383,300 $533,700 $187,100 $155,700 $202,800 N/A $362,800 $212,500

Monthly Income Spent on Mortgage Payment 15.3% 26.2% 40.1% 13.9% 11.6% 15.2% 11.9% 17.9% 20.2%

United States NY- Northern NJ Los Angeles, CA Chicago, IL Dallas-Fort Worth, TX Philadelphia, PA Houston, TX Washington, DC Miami-Fort Lauderdale, FL Atlanta, GA Boston, MA San Francisco, CA Detroit, MI Riverside, CA Phoenix, AZ Seattle, WA Minneapolis-St Paul, MN San Diego, CA St. Louis, MO Tampa, FL Baltimore, MD Denver, CO Pittsburgh, PA Portland, OR Sacramento, CA San Antonio, TX Orlando, FL Cincinnati, OH Cleveland, OH Kansas City, MO Las Vegas, NV San Jose, CA Columbus, OH Charlotte, NC Indianapolis, IN Austin, TX Virginia Beach, VA Souce Zillow

30.1% 41.6% 48.2% 31.1% 28.5% 30.0% 30.3% 27.0% 44.2%

384 383 187 906 312 671 376 332 223

$154,900 $369,100 $715,800 $114,400 $285,200 $203,400 $343,900 $211,400 $474,100 $132,500 $148,600 $244,100 $289,200 $125,300 $281,400 $335,700 N/A $170,100 $138,000 $119,700 N/A $187,600 $852,800 $146,300 $158,900 $129,100 N/A $211,300

12.3% 22.4% 39.2% 10.0% 23.8% 17.4% 21.9% 14.2% 34.0% 10.8% 14.4% 15.9% 19.8% 10.8% 20.9% 26.0% 12.4% 16.3% 11.4% 10.9% 10.9% 16.1% 39.5% 11.6% 13.2% 10.8% 15.9% 15.1%

25.4% 33.8% 44.0% 24.6% 36.4% 28.0% 30.8% 25.9% 43.2% 24.4% 32.1% 29.2% 33.4% 25.2% 30.9% 33.2% 29.0% 32.7% 25.8% 27.4% 24.9% 27.1% 39.4% 26.2% 26.8% 26.3% 31.0% 26.7%

301 299 193 1,813 167 250 353 380 188 1,036 314 400 305 42,258 376 159 166 339 554 1,311 517 242 294 528 472 390 486 588

Rental Housing Journal Metro • May 2015

RENTAL HOUSING JOURNAL METRO

Toung Tied... continued from page 5 that they had to stay at the end of the pool that the older people weren't swimming in. I thought it was a good compromise, but then one of the kid's parents (who NEVER controls their child to begin with!) came in and complained to the manager about my compromise.

I got written up. It was complete crap.

I don't want you to think that I think fair housing laws are stupid, but my manager makes such a huge deal out of them! I know they are super crucial to the industry, blah, blah, blah, but I don't understand why me doing something that's just good customer service is a violation of them. Can you tell me how to fight this write up? It's not fair, and it's not right.

-Irritated in Illinois Dear Irritated in Illinois, Oh, you're really not going like my answer. You manager was right.

What you did was a violation of the Federal Fair Housing laws. Unless you happen to work at a 55 and older senior community, you can't discriminate on any of the federal classes, and familial status is one of them.

We can't make different rules for children, just because they're uncontrolled or because we want to. Believe me, I understand your desire to make the best compromise possible with your residents, and I do give

you credit for not banning the kids from the pool all together, which is a mistake I've seen MANY young leasing agents make. But the truth of the matter is that we as property management employees cannot make any rules, policies or overt actions that are discriminatory against a protected class.

To phrase it another way... you just sent those kids to the, "Back of the Bus." I'm betting that when your parent complained, it was more about the fact that you were parenting her children than the way you handled the situation. Working with children on site can either be an awesome experience in your day or the worst half hour of your day, depending on the kids and the parents. Let me give you 2 good guidelines on when you can step in: • The kids are causing a danger to themselves or to other residents - Absolutely step in here. Step one, call their parents. If you can't reach mom and dad then use good judgment. I suggest talking to your manager and seeing what his or her preferred methods of resolution in this situation are.

They've been through it before and can give you a better roadmap on how to get out of the mess. That's what they're there for.

• The kids are causing damage to the property - Don't let that one stand either. That property is your company's asset and in your lease it should say that the lease holders are responsible for the conduct and damages of their guests or occupants. Some places will let this slide more than others, but I've seen places that will crank out a 10-Day with amazing speed in this circumstance.

And that's really about it.

Anything past that, you need to talk to your manager, because anytime we deal with kids we run the risk of violating fair housing unless we are VERY careful.

About your write up, talk to your manager and see if he or she would consider putting it in the "off the record" file, meaning it doesn't go directly against you, but if it happens again, then you're going to get slammed with both of them. And to make sure it doesn't happen again, ask for a little more training on the subject. If your company uses an online LMS system like the Training Factor, Grace Hill or Leasehawk, you can retake those classes at any time, so it might be a good time to brush up on your knowledge. And if your local apartment association is running a CAM class, ask them how much it would be for you to sit through just that one class. The infor-

mation is FANTASTIC! Please let me know if you need further resources.

Good Luck!

-Heather 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

Specializing in 4-30 Unit Apartments

Y

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Thinking of Buying

M

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RTMEN PA A

PRO G

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another apartment?

Thinking of selling your apartment?

Call Patrick at 503-953-0672 Serving Multnomah County, Washington County, Clackamas County, and Clark County

www.PortlandApartmentProperties.com Rental Housing Journal Metro • May 2015

13

RENTAL HOUSING JOURNAL METRO

Fair Housing and Advertising ...continued from page 8 printed, online, posted signs, oral statements, etc. – whether free or paid.

• During the past year, NFHA

and <several of its members> identified more than 7,500 discriminatory ads placed by housing providers on various websites. Yet, only 1,000 complaints have been filed with U.S. Department of Housing and Urban Development (HUD) because both HUD and private fair housing agencies lack the staff and time to work through the cumbersome process required to identify and bring these landlords to justice.

Sadly, these ads reinforce the message to public readers that refusing to rent, or sell, or lend, or insure based on any of the protected classes is acceptable and even legal. What’s more, it confuses those who wish to follow the law or would be inclined to if they were better informed. All the more reason for the proactive stance the FHCO has always taken on education as a tool to eradicate illegal housing discrimination coupled, of course, with enforcement activities because the battle won’t be won with a ‘carrot’ alone.

• The Fair Housing Act covers

all advertising for the rental… or sale of homes as well as

advertising for home loans, homeowners/renters insurance, and any service related to housing. Language in the Fair Housing Act and in the regulations implementing the law makes it clear that the law is also intended to prevent newspapers and other media from publishing advertisements or notices that limit housing to specific individuals or indicate a preference for certain people. The law states:

preferences for tenants who were “single” or “a couple of individuals.” Phrases such as “perfect for young couple” or “three adults” were found in ads for houses or apartments with multiple bedrooms. These ads indicate an illegal preference or limitation and discourage families with children from even considering contacting a landlord. <Note: This is different than occupancy standards. To read up on the subject visit www.FHCO.org/ discrimination-in-oregon/ protected-classes/familial/ occupancy.>

It shall be unlawful to make, print, or publish or cause to be made, printed, or published any notice, statement, or advertisement, with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on <protected class> (emphasis added).

• Many of the properties with

such discriminatory language have multiple bedrooms, and would be ideal for families with children. Some examples of discriminatory language identified include:

• 2BR: “Mature couple or single

The NFHA report identified thousands of ads that violate the Fair Housing Act—in all 50 states and the District of Columbia, including Portland and Bend, Oregon. As a result, the national organization filed over a thousand complaints with HUD against posters.

with no children” NY

• 3BR: Duplex: “Christian atmosphere” IN

• 2BR: “PERFECT FOR 2

ADULTS….seeking a maximum of 2 tenants” CT

• 2BR: “Couples preferred”

• The most common Fair Housing

Chicago, IL

Act violation that NFHA and its members found on the Internet was advertising discriminating against families with children.

NFHA found ads stating

• 4BR: “Looking for responsible adults to enjoy home” VT

Even if these happen to be located in designated senior communities, the description of the community as an “adult community” or the advertising of “no kids allowed” is specifically disallowed by HUD. (Visit www.FHCO.org/discrimination-inoregon/protected-classes/familial for more on this subject.)

A couple of my favorites that touch on other protected classes include:

Named Oregon and SW Washington’s SBA’s Rising Star Award Winner for 2014

here in Oregon…

• RV Hookup “Hopefully we can

find someone that is a Christian and loves God with all of their hearts” OR

Be sure you’re well informed and complying with both the letter and the spirit of fair housing laws.

Schedule a fair housing class for your staff or members today, or ask your local trade association when FHCO will be offering a class with them. In the meantime, visit our newly revised website and make full use of the information and resources posted there. While on the site, sign up for our free e-newsletter to keep up-to-speed with developments in the fair housing world.

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

• “Looking for a white lady who

has a car and that's drawing a check. No Children, teenagers" TN

• “We’re trying to make cheaper

rent available for able bodied people who can do a few things for themselves.” GA, and from

“As a landlord myself, I understand the importance of resolving pest issues for managers, property owners and tenants.”

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Rental Housing Journal Metro • May 2015

RENTAL HOUSING JOURNAL METRO

Portland Among Ten Best ...continued from front page prices are factors making investments in single-family homes as rental properties a nearly risk-free opportunity in some markets. All top five markets have a median home price below $300,000.

A couple of California cities broke the Top 10 list, with San Jose and Oakland at number six and eight, respectively. "California has higher home prices, but the state is growing again, both in jobs and population.

Because most of these markets are no longer underpriced, investors in these markets are likely to see more of their gain come from price appreciation and less from a long-term rental stream," explained HomeVestors co-president Ken Channel.

Seattle (7) and Portland's (10) growing technology sectors and their desirable quality of life make them valuable markets, while Miami's rapidly growing population and high rents take the list at number 9.

"We believe 2015 bodes well for rental property investors. The economy shows no sign of slowing down and consistently low home prices and population growth make investing conditions ideal," said Channel.

The Best Markets Top 10 markets for real estate investing are: 1. Houston-Baytown-Sugar Land, TX

4. Denver-Aurora, CO 5. Orlando, FL 6. San Jose-Sunnyvale-Santa Clara, CA 7. Seattle-Bellevue-Everett, WA

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

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ESS: ____________ __________________ __________________ ____ DATE:_____ (G)Good (F)Fair CITY: (P)Poor ___ __________________ __________________ ____ UNIT: ______ __________________ ___ In _____ STATE: ______ Out In Out ____ ZIP: ______ ___

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

DESCRIPTION OF PET(S)Blinds/Drapes

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Blinds/Drapes 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly.

Cleanliness 3) Tenant(s) are responsible for the conduct of their pet(s) at all times.

Rods 4) Tenant(s) are liable for all damages caused by their pet(s).

Floor 5) Tenant(s) shall pay the additional security deposit listed above and/or their rental BEDROOM agreement as a condition to keeping the pet(s) listed above.

1 Carpet/Vinyl/Woo BEDROOM 2 d 6) Tenant(s) shall not allow their pets to cause any sort of disturbance or injury to the Walls Light Fixtures Walls other tenants, guests, landlord or any other persons lawfully on the premises.

Windows report to landlord any type of damage or injury 7) Tenant(s) shall immediately caused by Windows Doors/Woodwork their pet.

Blinds/Drapes Locks 8) This agreement is incorporated into and shall become part of Blinds/Drapes the rental agreement exe -cuted between the parties. Failure by tenant to comply with any part ofCeilings this agreement Rods shall constitute a material breach of the rental agreement. Rods Floor

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BlueIndustry PMS 280/Gray PMS Partner 7543 Exclusive of:

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RENTAL HOUSING JOURNAL METRO

he

T Ask

Secret Shopper

Northwest

E

very apartment community has its own personality, as well as features and benefits that are unique to that particular property. Yet some smaller buildings find themselves trying to compete with larger communities with bigger budgets and all the “bells and whistles.”

A manager of a smaller apartment community posed the following question: I don’t have a pool, exercise equipment, etc., like a lot of the larger places in my area. How can I possibly compete with them?

The answer is: You can’t! Your community has other benefits and advantages that larger apartment buildings cannot offer. Focusing on those benefits and highlighting them to your prospective renters will give you the opportunity to sell what is special and uniquely different about your community and apartments.

Smaller apartment communities typically have a closer, tight-knit neighborhood where most of the residents know each other and look out for each other. Also, the staff at a smaller builder may be better acquainted with the residents and more in tune to their specific needs.

In addition, you can regularly do something special for your residents in the way of gifts, lease renewal open houses and community gettogethers. (i.e. Hosting a resident appreciation party for 50 people is much more affordable than for 250!)

If you find that the same objections keep coming up with regards to the lack of specific amenities and benefits that are available at your community, then CREATE some! If there is no additional storage on your property or you are getting requests for boat and RV storage, then obtain information on public storage facilities in your immediate area that can offer these benefits to your residents. You could even work out a deal where you agree to refer your residents to a particular ministorage if they will be given a discount just for being a resident of your community. In fact, you can work out merchant discounts with almost any local business in your area. In exchange for the discount, you can give the local merchant advertising space in your newsletter and/or pay them a referral fee.

The same thing can be done with area recreational facilities and/or health clubs. Most health clubs are eager to work out special memberships and discount plans in order to

obtain new members and increase their word of mouth advertising.

You could agree to place their literature with other new resident information in a welcome packet, and actively promote membership at this particular club. Then, when you get an inquiry about “amenities,” you can describe all the recreational facilities that are available to them through a special club membership they are eligible for as a resident of your community.

Remember: All businesses benefit by working together and helping each other. Networking to create additional “amenities” for renting at your community will take an investment of your time. However, the extra benefits and added sense of value to your residents: PRICELESS! If you are interested in leasing training or have a question or con-

cern 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

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RENTAL HOUSING JOURNAL METRO

M

Home Buying Pays Off Fast, but Hurdles Remain for Renters

any U.S. homebuyers can break even in less than two years if they buy a home instead of renting it, but financial barriers and preference are big factors in the decision to continue renting.

- Homebuyers can break even on

a home purchase in less than two years in 66 percent of U.S. metro areas, according to the Zillow fourth quarter Breakeven Horizon report.

- Twenty percent of renters say they prefer to rent than buy. More than half (53 percent) say financial limitations keep them from buying.

- The point at which homebuyers can expect to break even on a home purchase - Zillow's Breakeven Horizon - lengthened in many markets in 2014 as home value growth flattened.

Even though buyers in most markets can break even on a home purchase in less than two years,i nearly half of renters in a newly released survey said their credit or finances keep them from buying a home.ii Of renters surveyed by Zillow, 16 percent said they can't qualify for a home loan, 18 percent said they can't afford taxes, maintenance and other costs associated with homeowner-

ship, and 13 percent said they don't have enough savings for a down payment. About a quarter said they struggle to pay their rent.

According to the survey, 82 percent of renters are long-term renters, and 57 percent are long-term renters who have lived for a long time in the same home.

Just 14 percent of renters said they aren't staying long enough in the same place to buy.

Zillow's survey sheds light on why some renters are not buying homes, despite historically low interest rates, prices that remain below peak levels in many areas and rising ...continued on page 21

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Training the Next Generation... continued from page 3 your successors as a group, so they must have a strategy to reach consensus. (You will also need to plan for what happens if one of your successors dies, or is incapacitated, or just wants out of the partnership. If you start planning early, you can gauge interest level and compatibility to prevent this last scenario.)

Devise a training program Devise a training program to give your successor(s) the knowledge to make the best decisions possible and, in the case of multiple successors, to establish as a group who has the skills and interest to be the leader.

Make sure this training program includes the following: 1. Pay for your successor(s) to take basic real estate courses, either online, or at a college/community college near them. They will need to pass with a B or better.

2. Put together an orientation so your successor(s) understands the current condition of the properties, how and why you bought them and put five-year plans in place for each property. In this way they will also be setting long term and short term goals for asset growth and repositioning of the portfolio.

3. Teach them real estate mathematics, how to underwrite real estate deals, how the financials work, what pro formas are and how to evaluate property financing so they can make Rental Housing Journal Metro â&#x20AC;˘ May 2015

informed purchase, sale and refinance decisions. Evaluate the purchase of potential properties together.

4. Review and role play how to make decisions regarding leasing commercial space and how to handle commercial leases, commercial brokers and their commissions and how to evaluate tenant improvement expenses and lease rates.

5. After all of this training, allow them to take a key role in decision making for your portfolio.

(Remember to modify the LLCs to take their involvement into consideration!)

All this may overwhelm your successor(s) at first, especially if they had no previous exposure to your investments. Allow them to air their concerns and coach them best you can. If you plan carefully you will have the added bonus of more quality time spent with your loved ones.

You will be able to connect with them as adults, and enable them to prepare for their retirement as well as the future of other family members down the line. With the right planning and training, everyone wins.

17

RENTAL HOUSING JOURNAL METRO

Vacation Home Sales Soar to Record High in 2014, Investment Purchases Fall

V

acation home sales boomed in 2014 to above their most recent peak level in 2006, while investment purchases fell for the fourth straight year, according to an annual survey of residential homebuyers released today by the National Association of Realtors®.

NAR's 2015 Investment and Vacation Home Buyers Survey,* covering existing- and new-home transactions in 2014, shows vacationhome sales catapulted to an estimat-

ed 1.13 million last year, the highest amount since NAR began the survey in 2003. Vacation sales were up 57.4 percent from 717,000 in 2013.

Vacation home sales are up 57.4% from last year, according to the National Association of Realtors 2015 Vacation and Investment Home Buyers survey.

Investment-home sales in 2014 decreased 7.4 percent to an estimated 1.02 million in 2014 from 1.10 million in 2013. Owner-occupied purchases

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fell 12.8 percent to 3.23 million last year from 3.70 million in 2013. The sales estimates are based on responses from nearly 2,000 U.S. adults who purchased a residential property in 2014, and exclude institutional investment activity.

Lawrence Yun, NAR chief economist, says vacation sales in 2014 showed astonishing growth, nearly doubling the combined total of the previous two years. "Affluent households have greatly benefited from strong growth in the stock market in recent years, and the steady rise in home prices has likely given them reassurance that real estate remains an attractive long-term investment," he said. "Furthermore, last year's impressive increase also reflects long-term growth in the numbers of baby boomers moving closer to retirement and buying second homes to convert into their primary home in a few years."

Vacation-home sales accounted for 21 percent of all transactions in 2014, their highest market share since the survey was first conducted. The portion of investment sales fell to 19 percent (20 percent in 2013); owneroccupied purchases declined to 60 percent (67 percent in 2013).

"Despite strong rental demand in many markets, investment property sales have declined four consecutive years to their lowest share since 2010 as rising home prices and fewer distressed properties coming onto the market have further reduced the number of bargains available to turn into profitable rentals," says Yun. The median sales price of both vacation and investment homes declined in 2014. The median vacation home price was $150,000, down 11.1 percent from $168,700 in 2013.

The median investment-home sales price was $125,000, down 3.8 percent from $130,000 a year ago.

According to Yun, the decrease in vacation and investment sales prices is likely due to the increase in vacation and investment buyers purchasing condos and townhouses, which contributed to a decline in the median size of 200 square feet for both.

Additionally, the rise in vacation buyers purchasing distressed properties and buying in the South, where home prices are often lower, contributed to the overall decline in the sales price of vacation homes.

The share of vacation buyers who paid in cash fell to 30 percent from 38 percent in 2013. Investment buyers who paid in cash decreased to 41 percent from 46 percent a year ago.

Of buyers who financed their purchase with a mortgage, nearly half (48 percent) of vacation buyers and 41 percent of investment buyers financed less than 70 percent of the purchase price.

Forty-five percent of vacation homes and 44 percent of investment homes purchased in 2014 were distressed properties – either a home in foreclosure or a short sale. In 2013, 42 percent of vacation homes and 47 percent of investment home purchases were distressed.

Characteristics of VacationHome Purchases The typical vacation-home buyer in 2014 had a higher median household income ($94,380) than those in 2013 ($85,600) and purchased a property that was further away (median distance of 200 miles) than a year ago (180 miles). Buyers plan to own their property for a median of 6 years, unchanged from 2013.

Although a majority (54 percent) of vacation buyers bought a singlefamily home, the share of those buying a condo (27 percent) or a townhouse or row house (18 percent) increased from a year ago. Forty...continued on page 23

A Little Recognition ...continued from page 9 from the entire team at the start of the next staff/company meeting. Recognition by peers and colleagues is extremely powerful and a public display of appreciation can be a valuable motivator.

Consistent practice is key to success with effective employee recognition programs. Also remember to spontaneously praise employees.

This is highly effective. For many employees, receiving a simple and sincere “Thank You” is more important than receiving something tangible. Never underestimate the value of recognition through personal, written, electronic and public praise from those they respect at work especially when conveyed in specific, sincere, timely manner.

Managers and team leaders have a given responsibility to obtain 18

results. We are components of a team –a collective group of individuals –all working to achieve a common goal or purpose. The power and effect of a simple “thank you” or a “good job” conveyed by word or deed should never be avoided or forgotten. Effective and successful business leaders understand this -and consistently practice it. It directly impacts the bottom-line.

And it’s always nice when the bottom-line mirrors “good job”. Just don’t forget the people who helped get those results. Especially when their efforts helped produce that “good job”!

By Scott Arena

Rental Housing Journal Metro • May 2015

RENTAL HOUSING JOURNAL METRO

How to Profit ...continued from front page been true since Bronze Age Sumerians were writing in cuneiform on clay tablets,” Buscemi says.

“But in the 18th century such community lending was vilified, leaving a massive gap that banks have absorbed.”

Also called bridge loans, hard money loans are a specialized type of real-estate backed loans and fall within the peer-to-peer lending category, he says. As a lender, if you have a “cash-strapped” client who has missed several payments, then you have their collateral to resell and claim back your money with interest, he says.

“It’s a safe, short-term investment with nice returns, but doing without the established criteria on loans established through banks poses certain risks,” says Buscemi, who offers some need-to-know tips for navigating hard lending.

• Avoid hazards with insurance.

When you know that the hazard insurance is in place – with adequate coverage – make sure that you are listed as the mortgagee. A little mortgagee clause that shows you are the mortgagee wit your name and address on the policy matters. This clause should also show that you are in first position to be paid, should the property be foreclosed on.

• Know the many different types of insurance. They include policies: hazard, vacant dwelling, flood insur-

Rental Housing Journal Metro • May 2015

ance, builder’s risk and loss of rents coverage. A very large part of your job as a hard money lender is to minimize the risk in a high-risk field.

You are already doing all you can to reduce the risk of lending to a particular individual, which is great.

But now you need to acknowledge that there are external factors that can affect your investment.

• Build in prepayment penalties.

Lenders want to make money on loans, which is not possible if the loan is repaid in full almost immediately after one is provided. The penalty would only apply for the first few months of the loan; after that, the borrower will not incur a penalty if they want to settle the debt. You don’t want to distress borrowers, but you also want to protect lenders against losses from ultra-short-term loans.

• What you risk without agreedupon prepayment penalties. If you do not build in prepayment penalties as part of a promissory note or mortgage, you are potentially leaving money on the table. Without such penalties you are giving an opportunity for unscrupulous borrowers to come in and take advantage of your lending system. Don’t leave yourself vulnerable.

Salvatore M. Buscemi, author of “Making the Yield: Real Estate Hard Money Lending Uncovered,” is managing director of Dandrew Partners LLC in New York City (www.dandrewmedia.com).The company specializes in placing capital from prominent institutional investors into middle-market distressed commercial real estate investments. He began his career at Goldman Sachs, where he worked four years as an investment banker. A frequent speaker on hard money lending, Mr. Buscemi also co-founded Dandrew Strategies LLC, a $30 million real estate solutions provider in the secondary mortgage market specializing in non-performing residential mortgage portfolios.

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19

RENTAL HOUSING JOURNAL METRO

4 Reasons Your Business Should Be On Social Media Networking Online Is Crucial, But It Needs To Be Done Right, CEO says

W

hen they need to make personal connections with the rest of humanity, more and more Americans are doing so via the Internet.

A 2014 study by the Pew Research Center showed that 74 percent of adults who go online use a social networking site, whether it’s Facebook, Twitter, Instagram or something else.

“It’s clear that nearly everyone makes an effort to connect some way through social media,” says Doug Vermeeren, CEO of Business Networker (www.businessnetworker.com), an online site that helps small and independent business owners make professional connections.

“A lot of that time is spent sharing vacation photos, debating politics or chatting about everyday events in their lives.

“But businesses are missing out if they don’t understand how powerful online networking is, and how it can help them connect with potential customers and other businesses they could form partnerships with.”

Vermeeren says there are several reasons business professionals are making a mistake when they fail to

take advantage of online-networking opportunities.

• If you are not networking, you are not working. Networking itself is nothing new. Business people have always found ways to connect with potential customers and clients, whether by joining organizations, playing a round of golf or working the tables at a Chamber of Commerce breakfast, Vermeeren says. “These days, social media is replacing realworld relationships,” he says. “That can have the downside of removing the personal touch, but it doesn’t have to be that way. A good business-networking site can help you keep that personal touch in both your online and live networking.”

• The customer and you. No matter how good the idea behind your business is, all business transactions still require two essentials: you and a customer, Vermeeren says.

Networking in general helps you identify some of those customers, but online networking can do so even more quickly and efficiently, helping you cast a wider net than you could by dropping in on a local business-networking function.

• An extra problem solver. The better networked an individual is,

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the more solutions they have access to in order to solve challenges that affect their businesses, Vermeeren says. It’s the old “two heads are better than one” concept extrapolated many times over. “Someone probably has already dealt with a problem similar to one you are facing now,” he says. “Being able to draw on their experience could save you a lot of time, trouble and money.”

• Social media is more than social.

In the past, much of the networking through social media was designed for connecting on an entertainment or personal level, Vermeeren says.

Some businesses have come to realize what a powerful tool social media can be for them, he says, but they had to try to adapt to sites that weren’t necessarily designed with their goals in mind. That’s why Vermeeren saw the need for a networking site that could serve as a resource to help businesses identify customers, strategic alliances and joint-venture partners.

It’s important to understand that not all sites are created equal or serve the same purposes, Vermeeren says. Some are great for connecting socially. Others might be good for job recruiting. But businesses also

need to be able to build professional relationships online, and have those relationships evolve and eventually turn into mutually beneficial transactions.

“Yes, online networking is important,” he says. “But you also don’t want to waste your time. You need to make sure your online-networking experience is allowing you to build strong relationships with other business owners to help make your business grow.”

Doug Vermeeren is an internationally renowned public speaker, author, movie producer and director. His life coaching strategies help those from all walks of life, with clients including business executives, celebrities, professional athletes and more. He has written three titles contributing to Guerilla Marketing, the best-selling business book series. His most recent venture is the launch of Business Networker (www.businessnetworker.com), a social networking site for small and independent business owners that helps people make professional connections and provides a simple solution for online retail.

Concern for Safety ...continued from page 7 current home an average of 5 years and just 30 percent say they know a majority of their neighbors. What's more, one-quarter of today's young people have been at their address for less than a year.

"We'll track these trends over time. It certainly makes sense for older residents to be more settled in their homes, but we're curious to see if today's younger population continues to move around as they age," Osterberg noted.

New data from PEMCO also suggests that there are benefits beyond security for those who are more committed to their home or neighborhood. In PEMCO's first "Great Neighbor Index" residents rated the qualities of great neighbors, along with the attributes of a bad neighbor.

The index also measures the percentage of their own neighbors that residents would classify as bad or great. A higher score on the index indicates the presence of more great neighbors than bad ones.

According to the index, residents might have better luck borrowing a cup of sugar from neighbors in Oregon. Oregonians earned a higher Great Neighbor Index score, earning 37 points out of 100 on the index compared to 30 points for their Washingtonian counterparts.

In both states, those who own their home are significantly more likely than those who rent to enjoy their neighbors. Four out of five

homeowners in Oregon (80 percent) say they have more "great" neighbors than bad ones, and three-quarters (74 percent) of Washington homeowners have a majority of great neighbors.

Across the board, residents agree great neighbors are those who are helpful and trustworthy, but keep a respectful distance.

In Washington and Oregon, about half of residents said that being helpful when asked, being trustworthy with high integrity, and being respectful and reasonable are the most important traits of a great neighbor.

The poll shows that Northwest residents might draw the line at becoming chummy with their neighbors, though – just 4 percent of respondents in either state thought a good neighbor should show interest by asking a lot of personal questions or frequently inviting you over.

Similarly, Washington and Oregon residents agree: bad neighbors are those who often host loud parties with multiple guests, those who are not trustworthy, and those who do not respect the rights of others.

Nearly half of respondents also cited noisy or wandering pets and illmaintained property as potential rifts in neighborly camaraderie.

SOURCE PEMCO Insurance

Rental Housing Journal Metro • May 2015

RENTAL HOUSING JOURNAL METRO

Home Buying Pays Off ...continued from page 17 Metropolitan Area

Zillow Home Value Index (ZHVI) United States $ 178,700 NY-Northern NJ $ 383,300 Los Angeles, CA $ 533,700 Chicago, IL $ 187,100 Dallas-Fort Worth, TX $ 155,700 Philadelphia, PA $ 202,800 Houston, TX N/A Washington, DC $ 362,800 Miami-Fort Lauder$ 212,500 dale, FL Atlanta, GA $ 154,900 Boston, MA $ 369,100 San Francisco, CA $ 715,800 Detroit, MI $ 114,400 Riverside, CA $ 285,200 Phoenix, AZ $ 203,400 Seattle, WA $ 343,900 Minneapolis-St Paul, $ 211,400 MN San Diego, CA $ 474,100 St. Louis, MO $ 132,500 Tampa, FL $ 148,600 Baltimore, MD $ 244,100 Denver, CO $ 289,200 Pittsburgh, PA $ 125,300 Portland, OR $ 281,400 Sacramento, CA $ 335,700 San Antonio, TX N/A Orlando, FL $ 170,100 Cincinnati, OH $ 138,000 Cleveland, OH $ 119,700 Kansas City, MO N/A Las Vegas, NV $ 187,600 San Jose, CA $ 852,800 Columbus, OH $ 146,300 Charlotte, NC $ 158,900 Indianapolis, IN $ 129,100 Austin, TX N/A Source Zillow

Rental Housing Journal Metro â&#x20AC;˘ May 2015

Zillow Q4 2014 Rent InBreakevdex (ZRI) en Horizon (in years) $ 1,355 1.9 $ 2,348 3.4 $ 2,475 5.1 $ 1,600 2.2 $ 1,449 1.2 $ 1,554 2.4 $ 1,502 1.5 $ 2,104 4.2 $ 1,782 1.7

Q4 2013 Breakeven Horizon (in years) 2.0 2.8 1.5 1.7 1.6 2.8 2.1 2.8 1.1

$ 1,238 $ 2,167 $ 3,088 $ 1,105 $ 1,670 $ 1,228 $ 1,839 $ 1,506

1.5 3.4 2.6 1.3 1.5 2.3 1.9 2.2

1.1 3.0 1.9 1.2 0.7 2.3 1.9 2.0

$ 2,310 $ 1,141 $ 1,272 $ 1,717 $ 1,834 $ 1,137 $ 1,592 $ 1,638 $ 1,305 $ 1,311 $ 1,220 $ 1,168 $ 1,223 $ 1,197 $ 3,202 $ 1,252 $ 1,242 $ 1,195 $ 1,669

3.8 1.6 1.5 2.9 1.6 1.6 2.0 2.2 1.6 1.6 1.7 1.8 1.6 1.5 2.7 2.0 2.0 1.3 2.1

1.9 3.8 1.0 2.2 2.1 1.9 2.1 1.0 2.7 0.9 2.1 2.1 2.7 1.2 2.9 1.9 2.1 2.1 3.0

rents. Mortgage math aside, 20 percent of renters said they simply prefer to rent.

"If the buy versus rent decision were about simple math, we'd likely have millions more homebuyers in the market, because the equation is tilted heavily in favor of buying," said Zillow Chief Economist Dr. Stan Humphries. "But no matter what the numbers say, buying a home is a huge commitment. Every day, Americans make decisions to buy or rent based on any number of personal dynamics, including preference, flexibility needs, family factors and, yes, financial considerations.

There is no right or wrong choice, and it's important that America's housing market maintains a number of affordable options for renters and buyers, no matter their preferences."

Over the last year, as home-price appreciation has slowed down, the length of time it takes to break even on a home purchase grew slightly in most major metros. The breakeven analysis looks at how long it takes to come out ahead on a home purchase versus renting the same home,

recouping the costs of buying, including taxes and maintenance.

Among the top 35 metro areas in the U.S., Dallas-Fort Worth had the lowest breakeven horizon, at 1.2 years. Indianapolis, Ind. and Detroit were next at 1.3 years. The highest breakeven horizons were in Los Angeles, at 5.1 years, Washington D.C. (4.2 years) and San Diego (3.8 years). The national average is 1.9 years.

Zillow's breakeven horizon incorporates all costs associated with buying and renting, including upfront payments, closing costs, anticipated monthly rent and mortgage payments, insurance, taxes, utilities, maintenance, and renovation costs.

The horizon also factors in home equity growth for buyers, and, for renters, income earned if they invested the same amount of money into an interest-bearing account. It also factors in historic and anticipated home value appreciation rates, rental prices and rental appreciation rates.

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RENTAL HOUSING JOURNAL METRO

Low Housing Supply Squeezes ...continued from page 12

www.rentalhousin gj ou rn al.com

It's easy to see how San Francisco has become one of the country's least affordable housing markets: Zillow's analysis showed that for every 1,000 new residents, there were just 193 new housing units permitted.

Residents of the San Francisco metro can expect to spend 44 percent of their income on rent, or 39.2 percent on a monthly mortgage payment.

The short supply is no secret to policy-makers. The mayor of San Francisco has pledged to add 30,000 housing units by 2020iii, and a Boston city report made a similar recommendation to meet demand with 53,000 new housing units by 2030iv.

"As the economy continues to improve, more Americans are slowly moving off of their buddies' couches and out of their parents' basements

into homes of their own, first likely as renters and then eventually as homebuyers," said Zillow Chief Economist Dr. Stan Humphries.

"Unfortunately, the supply of affordable homes, especially affordable rentals, is insufficient in many areas to meet this growing demand. As a result, the competition for those homes that are available can often be fierce, driving up prices and contributing to worsening affordability.

More construction will help ease the crunch, and getting a mortgage is also getting easier, which will help more current renters transition to homeownership and further ease rental inventory shortages. But these fixes won't happen overnight."

Since 2000, rents have grown at roughly twice the pace of incomes.

Partially as a result, the percentage

Natural gas is comfortable, clean burning and affordable. It’s also in high demand, which makes incorporating natural gas service into your next project the right move. After all, buildings are easier to sell and lease when they come with the amenities tenants want. And NW Natural is

of Americans citing "cheaper housing" as a reason they moved to a different home has almost doubled since then, from 5.6 percent to 9.6 percent currently, according to the U.S. Census Bureauv.

Over the past several years, renting – historically a budget-minded choice – has become increasingly less affordable. Meanwhile, recovering home prices, along with historically low mortgage rates, have made buying more affordable than it was historically, on a monthly basisvi.

Zillow's February Real Estate Market Reports showed home values up 4.9 percent year-over-year to a Zillow Home Value Index of $178,700. U.S. rents rose 3.4 percent to a Zillow Rent Index of $1,355.

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.

*Renter preference acquired from a 2014 Market Strategies International discrete choice modeling study.

An 80% preference for gas was reported among Portland tenants paying $1,200+ in monthly rent. For more details visit nwnatural.com/multifamily. **Limited incentives available and distributed on a first come, first served basis.

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RENTAL HOUSING JOURNAL METRO

Vacation Homes ...continued from page 18 percent of vacation buyers purchased in a beach area, 19 percent purchased in the country and 17 percent purchased a vacation home in the mountains.

One-third of vacation buyers plan to use their property for vacations or as a family retreat, 19 percent plan to convert their vacation home into their primary residence in the future, and 13 percent bought for potential price appreciation; the same share purchased because of low real estate prices and because the buyer found a good deal.

Forty-six percent of vacation homes purchased last year were in the South (41 percent in 2013), 25 percent in the West (28 percent in 2013), 15 percent in the Northeast (18 percent in 2013) and 14 percent in the Midwest (unchanged from a year ago).

NAR released a study in late-2014 that identified the top housing markets likely to see a boost in home sales to leading-edge baby boom-

ers1. The findings revealed that metro areas – including many in the South and Southwest – with a lower cost of living and sunnier weather are poised to see an increased number of baby boomers moving in and buying a home in coming years.

Characteristics of InvestmentHome Purchases Investment-home buyers in 2014 had a median household income of $87,680 ($111,400 in 2013) and typically bought a detached single-family home (61 percent) that was a median distance of 24 miles from their primary residence (20 miles in 2013).

Thirty-seven percent of investment buyers last year purchased a property in the South, 26 percent in the West, 20 percent in the Midwest and 17 percent in the Northeast.

Coffee – More than Just a Drink When Motivating Your Team

By Jackie Ramstedt, CAM, CAPS, CAS Things I’ve learned about the power of coffee: 1. Having something hot at the beginning of the day stimulates brain cells faster 2. Supplying for your team is a show of appreciation 3. Make sure to have decaffeinated flavors too; not everyone likes to be “wired” 4. It makes time to just “stop” what you are doing even for a minute to make it

5. Never stop “cold turkey” and forget to order more supplies

9. Don’t like coffee? Tea actually has more caffeine than coffee

6. Remember the holiday flavors to “spice things up” a bit

10. Buy coffee mugs specifically for each team member that shows off their personality!

7. Offer hot and cold coffees throughout the year; more refreshing choices

Owner, National Speaker / Industry Consultant and CMO Chief Motivational Officer Ramstedt Enterprises, Inc. – Austin, Texas – www.

JackieRamstedt.com

8. Try and have “coffee breaks” at the same time to use that time to meet and plan

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