Rental Housing Journal Metro February 2016

Rental Housing Journal Metro

February 2016

3. 5 Extraordinary Ways to Market and Lease Apartments

8. 14 Points That Must Be In Your Apartment Building Leasing and Marketing Plan

5. Lack of Housing and Rents

10. How Are You Helping Your Prospective Residents Who Are Searching For Trustworthy, Honest Content About Your Property Management Business

6. Advancing Momentum and New Ideas Into 2016

www.rentalhousingjournal.com • Professional Publishing, Inc

12. Inherit A House? How To Rent It Out 14. CorporateHousingByOwner.com Reveals the Findings of Annual Survey 15. Ask the Secret Shopper – Curb Appeal

Portland/Vancouver

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

Five Facts Your Community Network – Every Parent Doorway to Delivering New Dollars from Digital Services Should Know About Their Housing Rights

By Eric Markow

By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon

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s housing providers, you should know that federal, state, and local fair housing laws1 make it illegal for housing developers, landlords, Realtors®, homeowners associations, shelters, (etc.) to deny housing to families with children or to place unreasonable restrictions on them. Of all the alleged acts of discrimination each year, those made on the basis of familial status is among the most common of all the protected classes – this is true nationwide, as well as here in Oregon.

Following is a reprint of a media release from HUD that aims to inform parents of their right to buy, rent, and live in the home of their choice regardless of whether or not there are children in the home.

If children live in your home, obviously, you have these same rights as well. We encourage you to review these familial status rights from the lens of both the housing consumer (which is the tone of this media release), as well as your responsibilities under the law as housing providers.

1. You Cannot Be Denied Housing Because You Have a Child Although it has been illegal for 20 years, many housing developments and apartment buildings still have rules prohibiting continued on page 7 Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007

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our renters not only want to live on your properties, they also want to live on the Internet and the World Wide Web! In a recent article, we talked about the increased value and desirability that implementing wireless (Wi-Fi) internet access in each of your units would bring to your properties. Wi-Fi services would make your properties more efficient, and more in tune with the needs of today’s renters – whatever their age.

Presto – You’ve Built a Network What we haven’t talked about is the fact that implementing Wi-Fi in all of your units actually builds your own private community network -- a sort of mini-internet all your own!

So now that you have this network, what can you do with it?

Incremental Revenue from Your Community Network

The first thing you need to know about your community network is that it makes money for you. You become your renters’ Internet Service Provider (ISP), and incorporate the added value of internet access and related services into their rent.

Implemented with a full-service partner like Dual Path, your renters will discover move-in-ready, easily accessed Wi-Fi from day one, plus ongoing technical supcontinued on page 4

Are The Current Proposed Legislative Bills Really Helping Tenants?

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s you may know by now there are a few bills being proposed during the current legislative session that will put some very large restrictions on Landlords across the state of Oregon.

These bills are calling for a range of things like doing away with no-cause notices, asking landlords to pay tenant relocation expenses when they serve a no-cause notice, and repealing the “no rent control” law to allow cities to enact rent control guidelines, just to name the major ones.

Unfortunately these particular bills are very one sided and ignore the detrimental PRSRT STD US Postage PAID Portland, OR Permit #5460

effect they will have on the small landlords across our state. A large portion of landlords are middle class citizens that are not making much of a profit beyond just pay-

ing the mortgage on their rental property.

Some are landlords only because renting their home was the only option other continued on page 9

Advertise in Rental Housing Journal Metro Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.

Call 503-221-1260 for more information

Rental Housing Journal Metro

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Rental Housing Journal Metro 路 February 2016

Rental Housing Journal Metro

5 Extraordinary Ways to Market and Lease Apartments

by Theresa Bradley-Banta

W

hen it comes to marketing and leasing apartments Craigslist might be your best source— but it’s not the only game in town.

Zillow.com, HotPads.com, Rent.com, Apartments.com, your own website and social media can all generate good traffic.

But have you explored new resources and strategies lately?

Try these ideas for great results:

1. Market Where Your Target Renter Hangs Out Take a minute and think about where your target market likes to spend their leisure time. You can find some unusual places to advertise. Often these are places that your competitors haven’t thought of like: • Movie theaters (place an ad during the “pre-show entertainment”).

• Concert venues.

• Ridesharing apps such as Uber and Lyft (enormous advertising potential).

• Local schools and universities.

• Coffee shops (put your property ad on cup sleeves).

• Bike sharing stations.

For example, Denver B-cycle, which was the first large-scale municipal bike sharing system in the United States,

And don’t forget the people who walk by your property every day. If they’re walking, chances are they live in the neighborhood.

It’s a great idea to hold open houses at your property—especially if you have fantastic curb appeal. Put out a sandwich board with balloons and grab the auto and foot traffic on busy weekends.

is a hugely popular program especially among young urban residents. This wouldn’t happen to be your target market would it?

2. It’s Time to Update Your Curb Appeal There’s nothing worse than seeing prospective renters keep driving right on by at 30 miles an hour after a quick glance at your property. Five seconds is all it takes to make a negative, and lasting, first impression.

Curb appeal is one of the most important things in property marketing and leasing. Presenting an exterior that meets your target markets’ standards must be one of your biggest priorities.

You can develop incredibly creative ads

that draw potential renters in droves yet lose them before they reach your front door if your apartment community has no curb appeal.

Here are some inexpensive ways to make your property more attractive and welcoming: • Touch up the paint.

• Add outdoor planters that are stuffed full of colorful flowers.

• Add a canopy.

• Install inexpensive landscaping.

• Put up modern signage (yes, maybe it’s time to get rid of your old dated signage).

• Offer mobile friendly ways to contact your leasing agent.

3. Develop Mutually Beneficial Relationships With Local Merchants When a local merchant learns that you will promote their business to your community they will embrace the idea of cross promotion. Local employers are especially happy when their employees live in close proximity to work. Proximity to work contributes to less tardiness and fewer missed days due to bad weather.

Offer to waive your application fees for employees of participating merchants.

Other ways to support your local merchant in exchange for free advertising are to: • Include coupons or flyers of the local business in new resident welcome packages.

• Put a “Welcome to the community! Enjoy dinner (or a discount etc.) on us!” note in all new resident packages. continued on page 16

Order Your Free Recycling Resources Now! Making sure resident garbage and recycling is properly disposed of can be a big challenge. When it’s not, you’re left with a mess that costs time and money to fix.

The good news: our free tools and resources help ensure your residents know how to handle recycling and garbage the right way. We can help you prevent mistakes before they happen at your multifamily property.

Look for these free resources in your mailbox or visit www.portlandoregon.gov/bps/multifamily Need more information?

Multifamily Resource Line: 503-823-7224 Email: multifamily@portlandoregon.gov

Rental Housing Journal Metro · February 2016

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Rental Housing Journal Metro

Community Network ...continued from page 1 port that is readily available at all times.

Wi-Fi based security systems are revolutionizing the personal security industry. Far from the “burglar alarms” of yesteryear, these new state-of-the-art systems require no unsightly wires or separate network, and can protect everything from doors to windows to motion in and around the living unit. Your renters will benefit from the ability to check video from cameras deployed strategically throughout their apartment or home via their smartphones. In an emergency, renters could even allow the police temporary access to these cameras.

Digital Telephone is growing in popularity because it’s far less expensive than traditional landlines, and far more feature-rich with video-calling, voicemail that is transcribed and emailed to the recipient, detailed activity and billing reports and much more. Your premises WiFi network by Dual Path eliminates any costs to adding 4G and LTE coverage to your property, thus providing your renters with worry-free calling that is often totally free.

Alternative energy initiatives take full advantage of your community network infrastructure, providing you and your renters substantial savings on energy costs and enabling new technologies such as solar energy generation. Smart Home technologies automatically turns lights on when needed, off when they are not, and can even adjust thermostats to save energy when the premises is unoccupied.

Additionally, leakage sensors, carbon monoxide, fire, and other detection devices can be built into your network giving your property and your renters multiple layers of safety.

Maintenance Services and Property Administration also benefit from your community network. Property-wide coverage enables video chat tours of the property or a particular unit for potential residents who may not have the opportunity to visit in person. Work Orders can be opened and sent to devices used by your maintenance staff to improve operational efficiency.

Home Automation – Offer More Than a Home, Offer a Smart Home!

A visit to your local do-it-yourself superstore will show you that home automation is becoming the “next new thing.”

People, including your renters, want the ability to switch lights and appliances on and off, adjust their thermostat, lock and unlock doors, and do much more remotely by using their personal mobile phone or tablet.

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Home automation protects too! Sensors are now available to provide early alert of moisture, leakage, fire, carbon monoxide, as well as possible intruders and unexpected motion on the premises.

Home automation also saves money! By pre-setting times when lights, appliances, and other devices and services turn on and off, the cost of electric bills, gas bills, and other utility charges are dramatically decreased. Great for your renters if they’re paying for utilities. Great for you if they’re not!

By installing Wi-Fi compatible equipment, you can offer your prospective renters more than a new home. You can offer them a new Smart Home! Convenience, control, and peace of mind will be available on their own mobile device of choice.

Opportunities Continue to Emerge We’ve all seen the meteoric rise of new Internet services. Now you can put all of that innovation to work for you on all of your properties by building your own WiFi community network and using it to offer and deliver an ever-widening array of services and products.

Finding Your Path Dual Path specializes in implementing premises networks right on your properties. Our comprehensive services connect each of your properties to the Internet, allowing you to become the source of internet-based services for each of your renters, while ensuring them top quality Wi-Fi equipment installed by Dual Path’s experts in each of your units.

Our services are truly comprehensive because they include the ongoing maintenance of your network and the all-important highly responsive customer support your renters expect from their Internet Service Provider. Your renters will be thrilled with how easily and completely they enjoy life on the internet from the first moment they step into one of your properties enhanced by Dual Path.

Eric Markow is Chief Technology Officer of Dual Path, a provider of high speed property-wide WiFi services. Dual Path’s customers include MDU and senior living communities who enjoy fast, reliable connectivity, delivered with old-fashioned customer service. Dual Path’s unique revenue generating model allows property owners to leverage their “Internet real estate” to maximize profits, increase resident satisfaction and retention, and increase property value. Headquartered in Phoenix, Arizona, Dual Path offers property-wide WiFi, Gigabit Internet and WiFi calling solutions to properties and businesses coast to coast. For more information, visit www.dualpath. net or contact 1-800-468-6851.

Rental Housing Journal Metro · February 2016

President: John Sage • President Elect: Ron Garcia | Past President: Elizabeth Carpenter Secretary: Lynne Whitney | Treasurer: Elaine Elsea | Office Manager: Cari Pierce

Lack of Housing and Rents

John Sage, RHA Oregon President

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ell, so here we are already in the month of February. In Oregon that means that we are only a few days away from the start of the Legislative short Session. In the past the short session was used for budget issues and tweaks to existing laws. However, this session looks to be quite different. Laws affecting land use, minimum wage, rent control and inclusionary zoning are on the horizon. Our Legislature could make some decisions that, in my opinion, in the long run, would be some pretty big mistakes. The best way to not make a mistake is to make sure everyone has all the facts.

We, the small landlords of Portland, need to set the record straight on three very important issues: evictions, lack of housing, and rents.

First, small landlords don’t want to evict anyone, but it sometimes happens for the good of the community. The Oregon law is 30 days, which to neighbors of a bad actor seems like an eternity. Portland’s change to 90 days does not solve the housing problem, and will only draw out the inevitable with potentially damaging results for other renters. Understand that we do not evict because we want to – when we do so it is because we have to.

This is not something that we want the Legislature to implement state wide.

Second, Portland is the “It” City in America right now. People are moving here in droves, but our City has zero plans for development of more housing.

The state did in fact commit to investing in affordable housing this past session, but what has the city done? Sadly today, it is easier to appease the vocal minority by making landlords the enemy, which serves no one well.

81% of Rental Housing Alliance Oregon member landlords have less than 10 units to rent. If you think we are in a backroom

Rental Housing Journal Metro · January 2016

somewhere smoking cigars and counting money, you are wrong. We are the 1,800+ Mom-and-Pop landlords succeeding (though often unappreciated) in fulfilling much of the City’s housing demands.

Profit is hard to come by, we pay more than our fair share in local, state and federal property taxes, business and income taxes, and license fees.

Third, economics really are at play here.

Rents follow a market. Reduce the amount of available units to an aggressively growing population and rents increase simply

10520 NE Weidler, Portland, OR 97220 (503) 254-4723 • Fax (503) 254-4821 info@rhaoregon.com • www.rhaoregon.org

based on supply and demand. New BandAid ordinances won’t stabilize rents more supply will.

Small landlords are small business people. We fi x our own roofs, repair our buildings ourselves, and would like nothing more than to have the ability to grow. We just want to keep doing what we do best—put people into affordable long-term housing. We are a big part of the solution.

We need to keep asking questions and watching what is going on with what is going on with Oregon. RHA Oregon is watching what is happening in the rental industry es being made by our government, local and state, that affect our industry. Watch the emails, alerts and newsletters for information and calls to action form RHA Oregon.

Sincerely John Sage President RHA Oregon Stegmann Insurance Agency Inc.

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Rental Housing Journal Metro 16083 SW Upper Boones Ferry Rd, Suite 105, Tigard, OR 97224 503-213-1281 | Fax 503-213-1288 | www.multifamilynw.org

Advancing Momentum and New Ideas Into 2016

Dave Bachman President of Cascade Management

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ultifamily NW is off to a fast and dynamic start to 2016. A very active 2016 legislative “short” session is well underway in Salem.

Multifamily NW is hard at work providing advocacy for successful outcomes to educate and continue to create opportunities for owners and developers to add needed housing supply to our local industry. We

are experiencing a significant lack of supply across all income levels and as a result we know it is tough for residents in many Oregon counties to find housing. Removing barriers is key to assure more units come out of the ground, incentivizing developers to serve demand across all resident income levels. There is much work still to do and I encourage membership and our industry to discuss, educate and advocate through this legislative session and leading up to the legislative “long” session in 2017.

Education this year has kicked off strong with multiple sold out events covering landlord tenant law, legislative updates and fair housing education. We just concluded the second annual Fair Housing Fair in Portland where 440 attendees attended and received valuable and criti-

cal information to help them protect the law, themselves and their organizations.

This is the youngest large event for Multifamily NW and it is great to view its’ success. As an example and testament to how robust and consistent Multifamily NW education is, there are no less than 14 fair housing training classes offered throughout the year. Thank you to everyone on the Fair Housing Committee and all of the Multifamily NW staff who continue to put on great fair housing education and events for our membership. In past years, Multifamily NW created fair housing best practices and a fair housing pledge. It is great to see us continually capitalize on our previous efforts and create continued positive impact. The momentum of successful education events continues moving forward. In March comes the 2016 Maintenance Fair featuring the popular Maintenance Mania. In April we hold the Spring Apartment Report Breakfast and in May is the Ace Awards.

Multifamily NW completed our strategic planning session during the month of

January. Association Leadership created exciting outcomes for how we work together to reach and deliver services to the industry. There is focus and momentum as a result to make the association more accessible to everyone. These efforts will not only serve membership in 2016 but also for many years to come. We cannot get far without leadership and I sincerely appreciate our strong Staff, Board and Executive Council. Our membership benefits from this strength as well. I’m impressed by how consistently aware Association Leadership is of the intricate issues in our industry, especially our Executive Director Deborah Imse who works tirelessly for our members and the services we provide.

I am confident knowing that we are well prepared for the work ahead. We have a great start in 2016 and it will continue to be a productive and impactful year.

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Rental Housing Journal Metro

Five Facts Parents Should Know ...continued from page 1 families with children or families expecting a child. With the exception of senior housing and small properties where the owner resides <NOTE: The small property exemption, known as ‘the Mrs. Murphy’s Exemption,’ is not valid in Oregon.

Oregon fair housing laws provide greater protection by effectively nullifying this exemption.>, such provisions are always illegal. HUD takes these matters seriously and will take action when it sees housing developments keep parents out.

For example, last year a parent reported that an apartment building in Highwood, Illinois, refused to rent to her because of her child. The parent wished to remain anonymous, so a local fair housing organization sent testers to the property to see if they treated families with children different from applicants without children. The tests showed that the property owner discouraged families with children from renting apartments and informed parents that the units were for single people. The fair housing organization filed a complaint with HUD. After a thorough investigation, HUD charged the owners with discrimination against families with children.

2. You Cannot Be Evicted From Housing Because You Have Child While the birth of a child is usually a time for celebration, some landlords feel it is also the time for new parents to find another place to live. Though such actions are illegal, many facilities evict parents because they are expecting or have given birth to, adopted, or obtained custody of a child.

In one recent case, Shelia Brown was living in Summer Place Apartments in Las Vegas, Nevada when she obtained custo-

dy of her daughter. Less than a month later, the apartment manager told her to find a new place to live, because children were not allowed on the property. Ms. Brown filed a complaint with HUD, whose investigation uncovered that the management had forced other tenants to leave when they were pregnant or obtained custody of their children. In January 2008, Summer Place agreed to pay $75,000 to Ms. Brown and other families who were mistreated.

3. Families Cannot Be Restricted to One Area of a Building or Complex Some housing complexes allow families but restrict them to lower floors or to certain areas of the property. Both restrictions are illegal.

Sherri McLathian wanted to find an affordable home in a good school district for her two children. She thought she located an ideal townhouse in a new development called Victorian Village in Gurnee, Illinois. When she inquired about buying the homes, the sales person informed her that her children were not wanted in the neighborhood and would be the only ones there. The saleswoman then informed Ms. McLathian that no town homes were available. Ms. McLathian filed a complaint with the State of Illinois, which handled the case under an agreement with HUD and negotiated a $12,000 settlement for Ms. McLathian.

4. Rules Cannot Unfairly Target Children Many parents are unaware that it is illegal for landlords to make rules specifically against children. For example, a landlord cannot forbid children from a common area that adults are allowed to use.

Recently, six families in St. Louis settled complaints against Ridgecrest Apartments for overly restrictive rules against children. The landlord had required anyone under the age of 18 to be supervised anytime they were outside of their apartments. The rule was so strict that teenagers were not allowed to talk to their friends in the hallway without a parent present. In December 2007, the owners and mangers of Ridgecrest agreed to a $170,000 settlement to compensate the families and create an after-school program for children on the property.

5. Advertisements Cannot State That Children Are Not Wanted Finally, no property, other than seniors-only housing, is allowed to advertise that it is restricted to adults or that it will not allow children.

Lolita Lindo was searching for an apartment for herself and her 10-year old son because her landlord had recently raised the rent by a few hundred dollars a month. She saw a “For Rent” sign on a grey flagstone property in her neighborhood that she thought would be perfect.

The sign read “For Rent for two persons, Apartment Two Bedroom, No kids...” Ms. Lindo filed a complaint with HUD and in December 2007, a judge ordered the owner to pay her $20,000.

For more information about familial status protection, visit www.FHCO. org/discrimination-in-oregon/protected-classes/familial. Our housing provider page (www.FHCO.org/information-for-housing-providers) and the guidebooks page (www.FHCO.org/learning-resources/guidebooks) will also be of interest.

This article brought to you by the Fair Housing Council; a civil rights organization. All rights reserved © 2016. 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/learning-resources/ trainings to learn about the trainings we offer for companies and groups.

Federally protected classes under the Fair Housing Act include: race, color, national origin, religion, sex, familial status (children), and disability. Oregon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Additional protected classes have been added in particular geographic areas; visit FHCO.org/mission.htm and read the section entitled “View Local Protected Classes” for more information.

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Rental Housing Journal Metro

14 Points That Must Be In Your Apartment Building Leasing and Marketing Plan

by Theresa Bradley-Banta

I

recently received the following request from a multifamily investor:

2. Responsive apartment building maintenance A top-notch maintenance team goes a long way in keeping happy residents.

Promptly addressing maintenance requests equals less resident turnover. Describe your team and their experience.

Put a plan in place for maintenance request response times and your method of communication with residents. Include the details in your marketing plan.

“Can you please send me a marketing plan post purchase for an apartment building I am buying (my bank wants this)?”

This is a fantastic question! When you approach a bank to finance your apartment deal they most assuredly will want to see your apartment building leasing and marketing plan. Without a solid strategy you risk losing financing and you’re more than likely ready to walk into apartment building ownership with blinders on.

Let’s make sure you’re ready with a great plan and strategy from day one of ownership.

As an apartment building owner you have to be proactive. In order to succeed you must:

• Put the best team in place.

1. Your team: It’s time to show that you have best around If you are light on experience or you are a seasoned professional real estate investor this is your opportunity to let your lender know that you have the best multifamily real estate team in the business ready to step in the day you close on the deal. Your list should include:

• Prepare an accurate budget forecast.

All before you buy the building. This information will help you finance your deal and it will most likely help you negotiate a better deal with the seller. Here are 14 points to include in your planning:

• Your third party apartment building property manager. Some lenders may make this a requirement of your first year of ownership—they will insist you bring in professional management while you get your feet wet.

• Know exactly how you will market and lease units.

• Have a solid understanding of your market and your competition.

• Your leasing agents. If your property has vacant units you may decide to bring in a professional leasing team for the first few months of ownership.

• Your renovation and trade contractors.

These professionals should have experience at the apartment building level. Be sure to point it out.

What experience does each team member bring to the table? Don’t hold back.

Tout their talents and experience to the skies. Be sure to include the company name, contact person and telephone number for each member of your team.

3. Apartment unit rent and concession comparables Describe what your competing market is doing and how you stack up today. You must know the rents that your submarket competitors are receiving for comparable apartment units and also if they are offering concessions or discounts in order to rent units. Include your research in your report.

If your units are currently leasing below market rent address this in your report.

Describe how you plan to make changes—in both rents and concessions—in order to attract new residents to your apartment building. This may involve: • Bringing in a new professional and seasoned management team.

• Updating apartment units. continued on page 19

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Rental Housing Journal Metro · February 2016

Rental Housing Journal Metro

Current Legislative Bills ...continued from page 1 than letting it go into foreclosure when the housing market crashed. When I see bills like this I feel that those presenting them are ignoring these landlords and are making a very incorrect assumption that all landlords are rich and making a large profit. Covering the cost of relocating a tenant could easily force some of these small landlords to miss payments on their mortgage and ultimately cause additional foreclosures. The other major problem with this is that it ignores the real cause to our current housing crisis. The real problem right now is simply that demand heavily outweighs supply. Just like every other free market this drives rents up and gives landlords the incentive to be pickier within their screening criteria, and to be stricter with those tenants that aren’t following the rules lined out in their lease agreement.

The solution to the current problem is not more regulation as this will cause landlords to get out of the business of being a landlord and it will cause people thinking of becoming landlords to look elsewhere to invest their money (decreasing supply). As a representative for multiple landlord support associations and being a tenant myself, it is frustrating to see things like this. If the state really wanted to solve the current problems they would be focusing their energy on creating ways to encourage and speed up the building of more rental units. This could be done by financial incentives or even simply speeding up the rezoning and permitting process whenever someone wants to build rental units. I feel like the current legislation being proposed is ignoring basic free market economics and they don’t realize that they will actually be making things worse for tenants.

As a tenant that knows the current rental market I also feel that the tenant advocate groups pushing for these types

of legislation are ignoring what their constituents really need right now: more housing units (supply). This will level off the rent increases and will also make landlords be willing to work with tenants rather than just ask them to move. If a landlord can’t quickly replace a tenant due to higher vacancy rates then they will do whatever they can to keep a tenant that is paying their rent even if they aren’t a perfect tenant.

When it comes to no-cause notices they are also ignoring the detrimental effects it will have on tenants. Most no-cause notices are used when the landlord would prefer to avoid going through the time and expense of an eviction. This is actually a good thing for that tenant. The tenant ends up not having an eviction on their record. Given the current low vacancy rates it would be extremely hard for any tenant with an eviction on their record to be approved for a unit. By doing away with no-cause notices there will be a spike in evictions and any tenant with a recent eviction will find it harder to be approved than it already is right now.

The only conclusion I can come to when I review the actual facts is that the tenant advocates and the politicians pushing for these regulations on landlords are just trying to make a name for themselves by creating a villain (landlords) and convincing their constituents that they are their hero. When in reality all of these things will actually hurt those that they are supposed to be representing.

So please contact your state representatives right away to point out the real harm that these bills will have on tenants and the middle income landlords.

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Rental Housing Journal Metro

How Are You Helping Your Prospective Residents Who Are Searching For Trustworthy, Honest Content About Your Property Management Business?

H

ow are prospective tenants finding out about your rental properties online, and what you offer and how you differ from the competition?

What are you offering to retain your current residents?

While many talk about Google and the importance of search engine optimization, there is something just as important that is frequently overlooked.

If your potential, or current apartment residents find your website and stop by for a visit, are you providing helpful, useful rental information for them to help make an informed decision on where to live or what your community has to offer? Or, are you just pushing at them what you want to sell?

The world has changed and the key is the quality of the rental content you are proving on your website for your visitors.

This is key for two reasons.

First, attention spans are short and you only have a few seconds to grab their attention. The message they see should be about them, and what they need or are looking for. It is about them and what problems they are facing. It is not about you and touting your business.

Second, many websites are still using the old broadcast-style message that focuses on one message to all. However the web has fragmented audiences and you need to focus on how each individual is different and has different needs. The one size fits all message pushed in traditional sales language is no longer as effective.

People are tired of these broadcast type messages that interrupt them with a sales pitch. They are tuning these messages out.

They want to learn and investigate the options for themselves , and they have,

at their fingertips, the ability to search and compare on their own. Your goal is to be a part of their search. You may not win every time, but you want to be on the playing field when they are searching.

And, more than ever, it is not what you are saying about yourself, it is what others are saying about you.

Research from CEB shows at customers are 57% through the buying decision before they want to talk to a sales person.

Help Not Sell To Engage Customers The goal of your website, and the content you have there, should be to attract, engage and delight customers online. The stronger the content for your target audience, the more visitors you will attract.

More visitors mean more sowings and more showings mean more rental applications and lower vacancies.

This is the core of what you have probably heard called content marketing. The key is having great content, at the right time for the right audience.

You should know your audience and what their “pain points” are around when it comes to finding an apartment or rental home. You are the expert and talk to renters all the time. Listen to what they are telling you and asking you.

Then, you can design a core of great content about your rental properties and begin engaging your customers.

How Will I Know If This Works?

Once you have the key content in place, you want some way to measure engagement with your online audience to see if this is working. continue on page 16

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Rental Housing Journal Metro · February 2016

Rental Housing Journal Metro

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11

Rental Housing Journal Metro

Inherit A House?

How To Rent It Out.

By Cliff Hockley President, Bluestone & Hockley Real Estate Services

W

e manage properties for homeowners with many unique circumstances but inheritance is one of the most common reasons why people choose to rent out a home. This is the story of a typical case.

The Inheritance Jayne was in her late 40’s when her grandmother died. When Jayne met with the attorney to review the estate issues he gave Jayne the keys to the house her grandmother had lived in for forty years and a copy of the property deed. This was something she had never expected. She had decided early in her career not to invest in real estate. She wanted nothing to do with the property taxes and maintenance headaches, and now she had this old house to contend with.

She asked the attorney what others have done with houses they inherited.

The attorney frankly told her that she could sell it, rent it or donate it to a charity, but he advised Jayne not to make any decisions until she walked through it first.

“It was not a bad investment,” he said, “It’s insured, owned free and clear, property taxes are current and it’s well maintained, you can’t ask for much more than that.”

The Decision Her grandmother had lived in an older one level brick house. It was 1800 square feet with three bedrooms and two bath-

12

rooms, a two car garage and a small yard.

She had already begun feeling sentimental about it during the estate sale when a young man approached her with a business card. He introduced himself as the neighborhood realtor and gave his condolences about her grandmother’s passing before swift ly changing the subject to ask her if she had put the house on the market yet.

Jayne was taken aback. This guy was rude and pushy and she wanted to get rid of him. Purely in reaction to his offensive demeanor Jayne told him with confidence that she had already decided to keep it as a rental. That was how she made her decision.

But she knew nothing about being a landlord. She decided to start by consulting the attorney to first understand the

laws involved.

He sensed she might be in over her head during the conversation, “You may want to hire a property manager to help you,” he suggested.

Jayne, a successful businesswoman, saw no reason why she couldn’t handle it herself.

Renting the House Once Jane made up her mind, she toured other house rentals in the area in person and on the internet to get a sense for market rents and conditions. Based on her research she decided to upgrade the house with more modern colors and appliances.

Since the carpets were in good condition she just had those cleaned. She also received a referral from a friend for a good handyman to make some minor repairs.

Once the place was up to par Jayne placed an ad online and within five minutes started receiving calls about the house. A few roommates wanted to see the house that night. She didn’t even have any application forms!! She quickly printed out a form she found online but when they came she wished she didn’t have any to give them. They were five college students from the school down the street.

One of them quickly asked her what application screening criteria she used. Another wanted to see the lease ahead of time. She hadn’t printed anything other than the forms out yet so she asked if she could e-mail it to them the next day.

They didn’t mind. They liked the house so much they filled out the forms right continued on page 17

Rental Housing Journal Metro · February 2016

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

Form of the Month

Upcoming Events with Multifamily NW

Renter’s Insurance Confirmation Addendum – M059 OR-WA

DATE __________________________________________ PROPERTY NAME / NUMBER ___________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ______ __ ___ __ ___ ____ ___ ___ ___ _____ ___ ___ __ RESIDENT NAME(S) ___________________________________________________________________________

___________________________________________________________________________ _____ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ____ ___ ___ ___ ___ _____ ___ ___ __

___________________________________________________________________________ _ ___ __ ___ ___ ___ ___ ___ ___ __

___________________________________________________________________________

___________________________________________________________________________ ___ __ __ ___ __ ___ ___ ____ ___ ___ ___ _____ ___ ___ ___ __

____________________________________________________________________________ __ ___ __ ___ ___ ____ ___ _____ ___ ___ ___ ___ ___ ___ ___ ___ __

UNIT NUMBER ___________________________________ STREET ADDRESS ___________________________________________________________________________________________________________________________________________________________________________ ___ _____ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ CITY ___________________________________________________________________________________________________________________________________________________ STATE T TA AT ___________________________________ AT ZIP _____________________________________________________________ ____ __ ___ ___ _____ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ __ STA ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

SAMPLE

SAMPLE

Resident(s) acknowledge that the Rental Agreementt requires Resident(s) dent(s) to obtain btain and maintain liability insurance: (i) with coverage SAMPLE ($100,000 if not n filled in); (ii) ( i) that lists lis all Residents esid as named insureds (if there are multiple limits of at least $_____________________ e a separate sepa te form for each eac policy); and (iii) that lists Owner/Agent as an “interested policies obtained by different Residents, use r/A / gent of: (A) /A (A cancellation cancellatio or nonrenewal of the policy; (B) reduction of policy coverage; party” authorizing the insurer to notify Owner/Agent ted party or (C) removal of Owner/Agent as an interested suc insurance i ed to such which Resident(s) warrant is complete and accurate:

Resident(s) have provided the fol

]

[Attach a copy of the polic

SAMPLE

e Name of Insurance

SAMPLE Policy No: __________ ___ __ __

ny:

___

_

______

_ __ _____________________________________________________________________________________ ___ __ __ ___ ______________________________________________________________________________________

List all Named Insu u

s separate policies cover each Resident): _____________________________________________ ___ __ ___ ___ ___ __

SAMPLE ___ __ ___ ___ ___ ___ ___ ___ __ _________________________

_ __ __ __ __ ___ __ ___ ___ ___ ___ ___ __ ______________________________________________________________________________________________

Limits mits of Liability Liabi Coverage: erage: $__ _____________________ Renewal Date: _

SAMPLE ________________________________

Insurance nsuran Agent: Name Na e __ __________________________________________________________________________________________________________________ _ _SAMPLE __ __ __ __ ___ __ ___ __ __ _ ___ __ ___ ___ ___ __ __ ___ __ ___ ___ __ __ ___ __ ___ ___ __ __ ___ __ ___ __ _ __ ___ __ __ SAMPLE Address Addre s ________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ __ __ ___ __ ___ __ ___ __ ___ ___ ___ __ __ ___ __ ___ __ SAMPLE Phone Phon Number _____________________________________ Owner/Agent listed ed as an Interested Party has been confirmed: SAMPLE Initials of person confirming: _________________ [Attach a copy of such designation from the insurance company] mpany] ange occurs oc rs to the insurance, insura Resident will update the information on this form when any change or upon request of Owner/Agent. urance in full fu force is a material non-compliance with the Rental Resident acknowledges that: (i) failure to maintain such insurance Own /Agent’s insurance in Agreement; (ii) Resident is not a co-insured under, and has no rights to, Owner/Agent’s policies; and (iii) except to the e for, and an itss insurance does doe not cover cov damage or destruction to, Resident’s extent required by law, Owner/Agent is not responsible ent(s) obtain coverage under their e insurance policy for damage to their property. Owner/Agent recommends that Resident(s) own property.

X

SAMPLE

SAMPLE

_____________________________________________________________________________________ __ __ __ _

X

RESIDENT

SAMPLE

_____________________________ _ __ ___ __ ___ __ __ __ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ __ __ __

DATE

SAMPLE

_____________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

RESIDENT

SAMPLE

X _____________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ __ ___ __ ___ ___ __ RESIDENT

_____________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ __ __ ___ __ ___ ___ ___ ___ ___ ___ ___ __

DATE DAT A E AT

SAMPLE

_ __ _____________________________ ___ __ __ ___ __ __ __ ___ __ ___ ___ __

DATE D E

X

SAMPLE

_____________________________________________________________________________________ _ __ ___ __ ___ ___ __ __ _

X

RESIDENT R

SAMPLE

_____________________________________________________________________________________

RESIDENT

SAMPLE

X _____________________________________________________________________________________ RESIDENT

X

SAMPLE

_____________________________________________________________________________________

ON SITE

RESIDENT

OWNER/AGENT

Form M059 OR-WA Copyright © 2015 Multifamily NW ®. NOT TO BE REPRODUCED WITHOUT WRITTEN PERMISSION. Revised 12/7/2015.

This is a brand new addition to the Multifamily NW Forms Collection. During the last few years it was sanctioned into Oregon Landlord/Tenant Law that a landlord has the right to insist that tenants possess renter insurance policies – to protect their own assets and liabilities. With that popularity, we created this form to ease the steps confirming tenants’ renter’s insurance policies are current, affirming that the landlord is listed as an interested Party on the policy, and that all residents are covered under the renter insurance policy. This form is a great addition to your standard move-in forms.

RENTER’S INSURANCE CONFIRMATION ADDENDUM

SAMPLE _____________________________

DATE

SAMPLE _____________________________

DATE

SAMPLE

_____________________________

DATE

SAMPLE

_____________________________

DATE

MAIN OFFICE (IF REQUIRED)

Featuring: Maintenance Mania®

2/9/2016 Maintenance Tips, Tricks & Pitfalls (Vancouver) 2/12/2016 It’s the Law – Fluid Events: Dealing With Water Intrusion Issues (Portland) 2/16/2016 CAS: Supplier Success (Portland) 2/17/2016 Portland Monthly Luncheon - Mayoral Forum 2/18/2016 SOLD OUT - General Fair Housing (Portland) 2/22/2016 EPA Lead-Based Paint Renovation Certification 8-Hour (Portland) 2/22/2016 Oregon Landlord Tenant Law Part II (Portland) 2/25/2016 2016 Legislative Update & Short Session Preview (Eugene) 2/25/2016 Basic Electrical for Spanish Speakers - Basic Electrical para hispanohablantes (Portland) 3/2/2016 New Hire (Portland) 3/2/2016 March Landlord Study Hall (Portland) 3/7/2016 Law and Rule Required Course (LARRC) (Portland) 3/8/2016 CAMT: Heating (Portland) 3/11/2016 It’s the Law - Smokin’ Hot: Marijuana and Your Rights (Portland) 3/15/2016 Curb Appeal (Portland) 3/15/2016 NSPF® CPO® 2 day Certification Class (Portland) 3/16/2016 CAM: Human Resources Part I & II (Portland) 3/17/2016 Fair Housing 150 (Portland) 3/21/2016 Unit Inspections and Turnover Techniques (Corvallis) 3/22/2016 CAMT: Air Conditioning (Portland) 3/23/2016 CAM: Fair Housing (Portland) 3/24/2016 Unit Inspections and Turnover Techniques (Portland)

In order to give you more educational options, the Maintenance Fair education schedule has been revamped! With the exception of Fair Housing classes, all sessions will be 30 minutes long an encompass a variety of important Maintenance Topics.

Attendees are encouraged to choose 3 to 5 classes from the list and spend some time visiting the vendor booths that will be open all day. Keep in mind that many of the classes are being offered more than once so that you can customize your schedule as you like.

MARCH 31, 2016 - EVENT SCHEDULE TIME

LOCATION

TITLE/TOPIC

TIME

LOCATION

TITLE/TOPIC

8:30-9:30AM PORTLAND BALLROOM 251 & 258

Keynote Presentation:

1:05-1:35PM

ROOM D133 ROOM D135 ROOM D136

Appliances: Dryer Do You Want Free Money? - Rebates Communication

9:4510:15AM

1-2PM

ROOM D139140

What You Say Matters (Fair Housing Spanish)

ROOM D136

Appliances: Washer Do You Want Free Money? - Energy Rebates Containment (English/Spanish)

10-10:30AM

ROOM D137 ROOM D138

Water Heater (Spanish) Plumbing: Troubleshooting

1:20-1:50PM

ROOM D137 ROOM D138

Preventative Maintenance: Tracking & Notations Emergency Preparedness

10-11AM

ROOM D139140

What You Say Matters (Fair Housing)

1:40-2:05PM

ROOM D133 ROOM D135 ROOM D136

Appliances: Refrigerator General Landscaping Basic Electrical Troubleshooting

10:2010:50AM

ROOM D133 ROOM D135 ROOM D136

Appliances: Dryer Electrical Safety & Equipment Communication

1:55-2:20PM

ROOM D137 ROOM D138

Tech for Maintenance: Apps Plumbing (Spanish)

10:3511:05AM

ROOM D137 ROOM D138

General Landscaping Plumbing (Spanish)

2:10-2:40PM

ROOM D133 ROOM D135 ROOM D136

Water Heater: Troubleshooting Mold: The Warning Signs TBA

10:5011:20AM

ROOM D133 ROOM D135

2:15-3:15PM

ROOM D139140

What You Say Matters (Fair Housing)

ROOM D136

Appliances: Refrigerator Preventative Maintenance: Tracking & Notations Emergency Preparedness

11AM12:30PM

HALL D

Lunch

2:25-2:50PM

ROOM D137 ROOM D138

TBA TBA

11:45AM12:45PM

HALL D

Maintenance Mania Events

2:35-3:05PM

ROOM D133 ROOM D135 ROOM D136

TBA Mold: The Warning Signs TBA

12:30-1PM

ROOM D133 ROOM D135 ROOM D136

Appliances: Washer Containment (English/Spanish) Water Heater: Troubleshooting

2:55-3:20PM

ROOM D137 ROOM D138

TBA TBA

Electrical (Spanish) Plumbing: Troubleshooting

3:30PM

HALL D

Maintenance Mania Car Race Raffle Prize Giveaway

ROOM D133 ROOM D135

12:45-1:15PM ROOM D137 ROOM D138

How much does the job pay?

How much

SHOULD it pay?

Ready to register? Fill out the form on the back or visit MultifamilyNW.org.

Advertise in Rental Housing Journal Metro

Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.

Call 503-221-1260 for more information Rental Housing Journal Metro · February 2016

Help us find the answer!

Take our 4 minute salary study survey

www.RHJsalary.com 13

Rental Housing Journal Metro

CorporateHousingByOwner.com Reveals The Findings Of Annual Survey Exodus from Vacation Rentals; Airbnb beats Homeaway; Craigslist beats Facebook and the Value of Corporate Housing Rentals

C

HBO reports the 7th annual CHBO Corporate Housing Real Estate survey and finds corporate housing furnished landlords say 2016 is the year of division. Monthly corporate housing rentals, a $2.7 billion industry, is not the same as vacation rentals and should not inadvertently be lumped into that lodging segment.

To see the difference between corporate housing and vacation rentals, just look at the renter’s length of stay. The finding of this report states that 6 out of 10 respondents say their last tenant stayed for three months or longer. Fifteen percent (15%) say their last tenant stayed for one year or longer. At an all-time high in 2015, 78% of respondents say they would only rent their property for 30 days or more.

According to The Corporate Housing Providers Association (CHPA), “Corporate housing is fundamentally different from other types of short-term rentals.

This well-organized industry provides a valuable service to businesses, employees and others in need of temporary housing while having a sizable economic impact on the communities where it operates. It is important that policymakers and officials understand the industry’s importance and are cognizant of its particular characteristics and value when creating and implementing short-term rental policies.”

Kimberly Smith, CEO of CHBO says, “there continues to be a strong need for professional corporate housing real estate rentals from independent property owners and managers. And personally, I believe the clients who need this type of lodging are very different from those who want a shared rental or an extended stay hotel. Think about the difference between buying a new car from a dealership versus buying a used car from an individual. These are transactions for two types of customers with very different needs.

Likewise, a relocating professional who has a high paying, high pressured job and needs to relocate his or her family of five to a new city is looking for corporate housing from a professional.”

Rental Success Starts With Understanding Data and Trends 2016 is the year of recognition for corporate housing real estate as a lucrative investment niche answering the needs of a mobile workforce and others seeking quality monthly residential rentals. The outlook for the coming year held strong with 21% predicting 2016 will financially be “much better than last year.” Of those investors, 90% say their investment real estate is profitable and 45% are so positive they plan on buying more investment real estate.

Mrs. Smith says, “Corporate housing is coming into its own, gaining recognition and also gaining investors who see the revenue potential.” She believes Airbnb brought to the forefront the value to renters, the fun and even the “sex appeal” of what is means to immerse yourself in a community and now renters are discovering the corporate housing industry has been providing quality rentals for decades and takes the guessing game out of a community rental.

In this year’s findings, CHBO learned that Airbnb continued to beat HomeAway as one of respondents’ “most used” marketing sources and for the first time also beat them as the source for the “most renters.” Surprisingly Craigslist regained

some traction, just as Facebook lost ground in all 3 marketing categories.

Our biggest surprise this year was that everyone spent less on marketing their corporate housing rental. In fact 63% (up from 55% in 2014) spent less than $500 on marketing their rental, however they were also less satisfied with their results.

In 2015, respondents saying my property is “always rented” went down to 41% from 48% in 2014.

Whether you’ve owned or managed a corporate housing rental for 10+ years or you’re new to the industry, CHBO reports that success starts with understanding trends. Just because something has continued on page 18

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Rental Housing Journal Metro · February 2016 7/23/15 1:28 PM

Rental Housing Journal Metro

SK THE SECRET SHOPPER Curb Appeal

I

t’s that time of year when drive by traffic can slow down, as one gray, rainy day blends into another. Occasional sun breaks do little to brighten up your community, but rather expose areas with built up dirt and left over dead leaves. In some neighborhoods dense with apartment buildings, there is nothing to separate one group of gray or brown buildings from the next; they just blend into the dreariness of the day. Several smaller apartment communities on a block could actually be mistaken for one larger community to people who are driving by. The question is:

Q

What can I do to make my community stand out from all the others in the area?

A

The first thing to take a close look at is the signage you are using. This may seem very basic, but are the signs you are using clearly visible? Can they be seen from a distance, in ALL directions, and are your signs CLEAN? Are your signs placed in such a way that it’s clear they are identifying YOUR building, and not the one next door? Is your signage creative and colorful? If advertising a promotion, are you using clever, eye-catching signs, banners, and/or balloons? Once a visitor drives into your community will they be able to find the rental office? What about managers and assistants who work out of

their apartment homes? If this is you, are there well placed directional arrows and appropriate signs so prospective renters can easily find your apartment?

The second thing to carefully assess is the cleanliness of your community. This time of year is especially challenging because of the unpredictable weather. One day it’s pouring down rain giving you water and mud issues to contend with, followed by a sunbreak so you have just enough time to clean up the mess before the next downpour! This is also the time of year when weeds begin making their appearance in the shrubs and flowerbeds.

They are looking for the sun too, even though it’s not exactly gardening season

Rental Housing Journal Metro · February 2016

yet! However, with “all hands on deck,” this seemingly impossible goal of a clean property is completely realistic. It can be accomplished if all staff members are willing to take on responsibility for the outward appearance of the community. For maintenance staff, that would be washing down gutters, downspouts and siding, and power washing to keep sidewalks and other areas from taking on the dreaded “green hue” that is so unattractive this time of year. For office staff and visiting property managers, that would mean picking up litter when you see it, as well as pulling an occasional weed, and keeping flowers cleaned up.

Speaking of flowers . . . Do you have any? If you don’t have colorful plants or flowers, how are you brightening up your community to enhance its curb appeal? Is there a freshly painted fence or curbing that differs from your neighbors? What about the use of flags or balloons to highlight the entrance to your community? If you use balloons, do you keep them properly inflated? Nothing communicates apathy and a lack of attention to detail like deflated (dead) balloons!

No matter what you have going for you on the “inside” of your community, no one will ever find out if you can’t draw them in from the “outside.” If the basics aren’t handled at the curb, your prospective renters won’t make it to the front door.

Clear, clever signage + clean, colorful curb appeal = countless cars carrying customers!

If you are interested in leasing training or have a question or concern 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 E-mail: shptalk2@gmail.com Copyright Joyce (Kirby) Bica

15

VALLEY, METRO, ARIZONA APT. NEWS

Salsbury Industries

Rental Housing Journal Metro

Help Your Prospective Residents

...continued from page 10

Feb, Apr, Jun, Aug, Oct, Dec – understanding expectations is a critical

One of the best ways to measure this is by adding an inbound marketing program to your content.

Sometimes people confuse content marketing and inbound marketing. The important thing is to do both. Inbound marketing is a great way to measure the ROI of your content marketing.

For instance, if you create a great piece of content that helps your potential or current residents solve their problem with content you create, they will be more than willing to give you their email address in exchange for that great piece of content.

You create a form for them to fill out which they will gladly do if the content you are providing is so valuable they might even pay for it as author Jay Baer says at convinceandconvert.com.

Then, using this core piece of content, you can create additional marketing spokes around this hub which include email newsletters, social media and more for your apartment communities.

be you are already using some form of it

factor.

How are you going to measure success?

What metrics are you going to track and how are you going to optimize for those metrics? The wonderful thing about digital marketing is that you can track many, many things and easily get lost in the trees and not see the forest.

What are the metrics that matter to your rental business? Define the key ones and then track and watch and see what is working. Frequently it does not work right in the beginning and you will have to tweak the message to get the right fit with your audience.

VALLEY, METRO, ARIZONA These are just a few key points to consider in your inbound marketing program.

5 Extraordinary Ways to Market • Offer local merchant discounts or gift cards to new and renewing residents.

• Offer a referral fee to merchants.

In exchange your local merchant can: • Post your apartment building ad on notice boards or shopping carts.

• Include your ad in company flyers and mailings.

• Provide word of mouth advertising.

The extra effort spent in meeting your local merchants can be rewarding on both a personal and financial level.

ON-SITE

4. Send a “Feel Good” Letter to Your Current Residents Your current residents can be the most APT. NEWS influential marketing group you have around. Sending occasional thank you

By John Triplett letters to your residents will help establish Special Editorial Contributor a sense of community.

Rental Housing Journal offers inbound and conBut it goes beyond creating happy feeltent marketing services to property management ings. When your resident loves where they companies and industry service providers. For more information, email Inbound@ProPubInc. live they will tell their friends and family. com Establish a referral incentive program at Understanding Expectations Jan, Mar, May, Jul, Sep, Nov, your property where each referring resiIf you decide that inbound marketing 1010 East 62nd Street, Los Angeles, CA 90001-1598 dent gets a gift, bonus, or rent discount. and content marketingPhone: are right for your 1-800-624-5269 • Fax: 1-800-624-5299 property management business – or maySome effective ways to get the word out Octoberp September are by:

Salsbury Industries

p

The Industry Leader in Quality 1/8 Page 4 7/8” x 3 5/8” On-Site4

bw

• Hosting a resident referral party.

• Sponsoring a community yard sale.

• Holding open houses with tours of the property.

When you receive a compliment from one of your residents be sure to ask them if they would be willing to share it online.

...continued from page 3

5. Pick the “Right” Property Management Company Some property management companies have amazing branding. Find out who they are and hire them—or watch them closely so that you can model their branding. These are the management companies that offer the “cool” factor to their residents.

Sometimes the branding is as simple as offering a “green” element to living at their communities. For example, recycling programs are a very inexpensive and desirable service to offer at your property.

You can create your own buzz and cool factor by offering something as simple as pre-leasing. Include text such as “Now Pre-Leasing for Large Two-Bedrooms” in your online advertising and on your property signage.

It may not seem like a big deal but pre-leasing can tell prospective residents that they are with a proactive management company. It also implies that your property is a desirable building to live in because people want to sign leases months before they are able move-in.

Theresa Bradley-Banta Founder + CEO

Theresa Bradley-Banta writes, speaks and mentors on investing in real estate while avoiding the pitfalls that plague many investors.

Over the past ten years she has owned or had primary ownership roles in single-family rentals, multifamily properties and international single-family development projects from $50K to greater than $9M. Theresa has performed due diligence on hundreds of multifamily properties and is a consultant to clients with an aggregate portfolio value in excess of $150M.

Contact Us Today for a Free Catalog!

Order Factory Direct!

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

Robinson Financial Group Colonial Life 1/8 Page 4 7/8” x 3 5/8”

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Rental Housing Journal Metro

Inherit A House?

...continued from page 12

there to be the first ones in line.

Reviewing the applications after they left Jayne noticed that only two of the students had any real employment history and two never had any jobs at all. She doubted that these optimistic students could afford the rent for long. However, she remembered the attorney’s warning about the rules preventing tenant discrimination and called her local landlord association for help.

She had found the application form through the landlord association website and was curious what other resources they could offer. She found the regional not-for-profit organization had plenty of good information. In addition to sponsoring monthly educational dinner meetings they had a newsletter providing tips for improving property management, sponsored annual training seminars, and had an extensive mentor and vendor referral program.

From them she got linked to a credit checking company and discovered that the roommates were not qualified to rent the house. She learned what screening criteria she could legally use and was able to get the correct rental agreements just in time for the next applicant to pass all her screening criteria.

husband said they had struggled since his wife quit work after having their son.

Jayne sympathized for a while but eventually was forced to hire an attorney to evict them. They left a filthy home, with some damages, which her handyman charged her $4,000 to fi x. Only later did she realize his limitations included plumbing and he had overcharged her in attempt to fi x something he had little experience with.

Just preparing the house for her second tenant turn was so painful that Jayne considered selling it after all.

Then Jayne realized that she had something in common with her handyman.

She had her strengths and limitations.

She was at the height of her career. Her employer had just offered her a national account that would come with a boost in

Problems and Solutions She thought she found the perfect tenants, young, up and coming, and eager to start their family. Within a year they had their first baby. They sent Jayne the birth announcement and she was so proud she had offered them their first home. But after 24 months she noticed the rent coming later and later and then not at all. The

pay and lots of travel. She loved to travel.

She loved hotels. She loved her little high rise apartment where she didn’t need to worry about plumbing and landscaping.

Wasn’t that the reason why she didn’t want real estate to begin with?

She also loved the gift her grandmother had given her and decided to rethink her approach. She interviewed a series of property managers and decided that their expertise was worth the cost to take care of her home. After five years of renting out her grandmother’s home hassle free she decided to refinance it and bought a four-plex with the equity. Her property manager also took over management of that property.

Over a period of 20 years she man-

aged to increase her portfolio to 20 units (her goal), and her cash flow to $7,000 a month which combined with her savings, healthy 401K and social security benefits was enough for her to retire on and travel for pleasure this time.

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CorporateHousingByOwner.com Reveals ...continued from page 14 worked in the past doesn’t mean it will work in the future. If you pay attention to the trends and avoid getting stuck doing the same thing over and over, you greatly increase your opportunities for rental (and financial) success.

Mrs. Smith says corporate housing landlording is nothing new, but obviously an increasingly popular option these days for the savvy real estate investor.

“My hope is that this report will continue to help real estate corporate housing landlords become more educated, knowledgeable and profitable as it allows them to deep-dive into emerging rental trends and how such trends will impact them personally.”

What You Should Know About This Report This report is different from other property management reports because it reflects input from independent owners and property managers, rather than full-service corporate housing companies.

Our survey was open to anyone who owned or managed a furnished, monthly residential rental in 2015 – not just to CHBO users. Our goal is to get the best snapshot of the independent corporate housing segment, so you can learn from relevant trends and be more successful.

Other key findings from the survey include Rental rates rising. 39% of respondents — an all-time high — report charging higher or much higher rental rates in 2015.

This number has been rising since 2013.

We also saw a 3% decrease in the number of respondents who say their rental rates were identical to the previous year.

Actual Rental Rates. Compared to our 2014 survey results, actual rental rates were higher in 2015. The one exception was for studio units, which showed a slight decrease in month-to-month rental rates. Four bedroom rentals saw the largest increase in rental rates.

Investment Real Estate Trends. Consistent with previous years, more respondents say, “Yes, I plan on buying more real estate” (45%), than “No, I’m done with real estate” (18%). Unlike previous years, however, the number of respondents who say they’re done with real estate investing rose 5%.

Corporate housing has gone to the ‘burbs. Consistent with previous years’ results, 49% of respondents say their corporate rental properties are located in urban, business districts. 44% say their properties are located in suburban areas.

You’ve Got Pets. We saw a slight increase in the number of property owners who accept pets compared to 2014. Now, 38% of survey respondents say they accept pets (down from the all-time high of 50% in 2011).

Reasons for Being a Corporate Housing Landlord. The majority of respondents — 58% — tell us they’re landlords for “investment purposes.” With a 15% response, the second most common reason for being a landlord is renting a “primary residence.”

Renter Types. “Relocation” renters rose to 45% — up 3% over 2014. We also saw all-time highs in renters due to: “home remodels” (30%), “movies/entertainment” (15%) and “divorce” (20%). We’ve seen annual increases in renters due to divorce since 2010.

Security Deposits, Travel Insurance and ARDI. 88% of respondents collect a refundable security deposit — most often, $500 to $1000 or one month’s rent. The number of respondents who collect “no kind of deposit” hit an all-time low of 4%.

26% of respondents say they offer travel insurance and/or Accidental Rental Damage Insurance (ARDI) to their renters.

Credit Cards. Approximately 57% of respondents say they accept some form of credit card payment from their renters, down slightly from last year. In 2015, MasterCard and Visa tied with PayPal as the most popular credit solutions.

Internet Reservations. Once again, we asked property owners about real-time booking reservations (in which a property is leased through a computer website without any interaction between the property owner and tenant). Similar to 2014, 44% of respondents say they’ve used one of these programs.

To download a free copy of all seven Corporate Housing Real Estate Reports, please visit www.CorporateHousingbyOwner.com.

About Corporate Housing by Owner (CHBO) CHBO is a Team of Corporate Housing Professionals. CHBO works daily to support quality corporate housing rentals and qualified renters find solutions.

We are focused on Corporate Housing rentals around the world and our on-line portal works to connect properties and renters as quickly as possible. CHBO was founded in 2006 out of a need to connect private homeowners and real estate investors offering furnished, monthly rentals with corporate housing seekers such as traveling executives, relocated professionals, traveling nurses, actors, athletes and more. The company provides individual homeowners and investors resources and guidance to help them strategically manage their corporate housing rental properties as well as exposes their properties to thousands of potential tenants worldwide who are seeking monthly housing options.

*Complete selection of user friendly property management forms, available pre-printed or online *Effective legislative advocacy and monitoring *Networking opportunities with other local landlords, managers and other industry leaders *Educational programs and seminars on property management, landlord/tenant laws, fair housing, evictions and more

Membership Inquiries – 503-364-5468 Info@PortlandAreaROA.com www.PortlandAreaROA.com 18

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Rental Housing Journal Metro

Apartment Leasing and Marketing Program ...continued from page 8 • Offering creative concessions and incentives to new and existing residents.

• Creating greater curb appeal to improve marketing.

• Establishing a new leasing and marketing plan and, • Hiring a temporary leasing agent in addition to the leasing services your management company provides.

4. Creative concessions If your market is giving away free or discounted rent in order to lease units, you and your management team can come up with alternatives that don’t cost you in property income. For example, if you charge for parking and your spaces are not full, give your resident free parking for three months instead of lowering the rental amount.

5. Current and prospective resident incentives Entice your current residents to get the word out about your apartment building and apartment units to their friends, family and coworkers. Create an incentive for prospective residents to help lease apartment units in lieu of offering them other concessions such as discounted rent. For each new lease signed give the referring resident a $25 gift certificate or other attractive bonuses and incentives.

6. Current vacancy Providing a current rent roll and historical financials will be a requirement of getting financing. Your lender will ask for these documents and they will be fully apprised of any vacancies at your property. Don’t shy away from describing where you are today and where you plan to be in

6 months, 12 months, etc. Let your lender know you have a solid plan for leasing and lease renewals.

7. Upside to current rents A lender does not want to hear that you will be blazing new trails with the rents you plan to get. Do not be tempted to claim you can rent units for amounts that are far above what the apartment market receives—unless it’s true. And if you purchased a property that cannot command current market rents you’ll need to address how you plan to make appropriate changes in order to catch up to your local apartment market.

On the other hand your lender will love to hear that your rents are below market and that you can easily catch up to the competition. By having solid market research on the comparable rents in your submarket you will be able to address your plan knowledgeably.

8. Annual income and expense budget forecast Provide a 12-month spreadsheet budget for income and expenses. This spreadsheet will include all income and all expenses for the property from day one through the next 12 months. You should also include all planned capital expenses that exceed normal property operation requirements such as major building system repairs or replacement.

Your commercial property management company can prepare an annual budget. Use it not only to project future cash needs if any, but also to monitor your property operations. If your income falls short of projections or your expenses exceed projections you have a baseline to work from when you address the issue

Rental Housing Journal Metro · February 2016

with your property management company.

Read Creating an Annual Operating Budget for Your Multifamily Property to understand the benefits of preparing an annual income and expense forecast.

9. Additional sources of income If you have untapped sources of income describe them. For example you might be able to rent out unused storage space, lease unused parking spaces, increase laundry coin operation amounts or implement a utility reimbursement plan (commonly called RUBS) where your tenants will pay for their utility usage. It is not unlikely that the current owner has overlooked additional sources of income.

Let your lender know you have the expertise to increase revenue.

10. Advertising strategy How and where will you advertise units for rent? Make a list that includes: • Online rental sites.

• Newspapers.

• Local merchants.

Clearly define your marketing budget, frequency of posts/ads/notices, system for ad response follow-up and professional appearance. Will you have a designated leasing agent? If so, include that individual in your list of team members with appropriate contact information.

11. Property curb appeal An apartment building with great curb appeal is easier to rent. By investing a small amount of your time and renovation budget you can change the entire look of your property. New shrubbery, signage, blinds and landscaping can have

a major impact on your ability to attract new residents.

12. Local apartment market “sizzle” Market sizzle comes in all shapes and sizes. Your submarket renters might want free WiFi, wood floors or in unit washers and dyers. Study your local apartment market and let your lender know that you can give prospective renters what they’re looking for. Plan for these expenses in your renovation budget.

13. Current leases and lease expiration dates Review all current leases and demonstrate a solid understanding of your current resident status and lease renewal dates. Have a plan for staggering lease renewals for all new leases.

14. Local police department premise history Most police departments keep a log of all visits to a property. This is typically called a premise history. If it’s clean use it in your marketing. For example you might advertise a “Safe, secure, quiet building.” A good report speaks volumes about the neighborhood in which your property is located.

Theresa Bradley-Banta Founder + CEO Theresa Bradley-Banta writes, speaks and mentors on investing in real estate while avoiding the pitfalls that plague many investors.

Over the past ten years she has owned or had primary ownership roles in single-family rentals, multifamily properties and international single-family development projects from $50K to greater than $9M. Theresa has performed due diligence on hundreds of multifamily properties and is a consultant to clients with an aggregate portfolio value in excess of $150M.

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Rental Housing Journal Metro · February 2016