Rental Housing Journal Metro
October 2015
3. Property Managers Help Residents Save Money and Energy
6. 2015 Changes to the Oregon Landlord Tenant Act (SB390
13. Time Management Skills Essential to Balance
4. Ask the Secret Shopper
7. Winter Is Coming, Have A Plan!
17. Giving A Tenant “The Booth”
5. Positivity & Relationships
8. Lead Safety, Testing & Contractors
PORTLAND/VANCOUVER
www.rentalhousingjournal.com • Professional Publishing, Inc
Published in association with: METRO Multi-Family Housing Association; Rental Housing Association of Oregon; IREM & Clark County Association
Prepare Rental Properties For The Winter Season
2Q15 Market Overview Multifamily Housing Update
By Scott Matthews, Director, Strategic Accounts, The Home Depot all is a great time to prepare properties for the colder months ahead, which may help prevent or offset costly repairs and high utility bills caused by harsh winter weather. Before winter hits, take steps to ensure that the property is ready for the elements with this must-have checklist.
F Portland, OR Payroll Job Summary Total Payrolls Annual Change 2015 Forecast 2016 Forecast 2017 Forecast 2018 Forecast Unemployment (NSA)
1,108.0m 33.0m (3.1%) 34.4m (3.2%) 30.1m (2.7%) 26.3m (2.3%) 22.6m (1.9%) 5.8% (July)
2Q15 Payroll Trends And Forecast The Portland economy posted strong results during the second quarter, and July data suggest that the third quarter began with impressive forward momentum. Metro establishments added workers to payrolls at a 33,000-job,3.1% yearon-year rate, up from 1Q15’s 30,800-job, 2.9%performance. Faster expansion among professional and technical business and health care services employers was primarily responsible. The foregoing sub-sectors hired at an 8,900-job, 4.6% annual pace in 2Q, topping the prior quarter’s 6,800-job, 3.5% advance. Preliminary July data also were constructive. Not seasonally adjusted payroll aggregates were up 41,000(3.8%) jobs over the comparable period of 2014. The seasonally-adjusted series posted an 8,500-job sequential month gain, representing the largest month-to-month advance recorded in the 26-year BLS Portland data series. Some recent disappointing unemployment and total employment statistics notwithstanding, the outlook for the Portland labor market ...continued on page 10 Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007
1. Stock up. Property managers – especially those handling procurement – should prepare for colder months by purchasing winter products, such as salt and ice melt, in bulk before the season changes. Buying in bulk not only saves time and money but also gives property managers peace of mind as they look ahead to potential extreme weather. 2. Seal gaps. Thoroughly examine roofs, siding, doors and window frames for damage and drafts. Repair damages immediately and seal around doors and windows with caulking, weather stripping, or a door sweep to help
keep warm air in and cold air out. As a best practice, ensure exterior seals are strong where building materials meet, like where siding stops and brick begins. Encourage tenants to notify of any drafts or noticeable gaps in their units to prevent soaring utility bills. 3. Protect pipes. Install heat cables and pipe insulation to prevent freezing pipes as temperatures drop – especially for pipes exposed to outside air or on exterior walls. Remind tenants to
let faucets drip overnight during extreme cold to keep pipes from bursting and causing water damage. Repairing burst pipes can cost more than $600 – depending on where the pipe is located and the extent of the damage, so take the necessary steps to avoid the additional out-of-pocket cost.
...continued on page 7
5 Lessons For Winter Property Survival
A
s Darwin concluded, “It’s the survival of the fittest.” If we hope to preserve our property over the long term, there are simple truth’s we must accept and actions we must take in order to ensure the viability and value of the physical assets under our stewardship. The simple truth is that as soon as a property is built, it begins the process of dying. It’s a harsh truth, but we have all seen it. With that said, there are some PRSRT STD US Postage PAID Portland, OR Permit #5460
properties that seem to escape the inevitability of decay, waste, and death. So, how do they do it? Are they special in some way? What are those operators doing to extend the life of those properties, or, at least, lessen the effects of time
in order to retain value? These operators understand the following 5 lessons and keep them at the top of their preventative maintenance approach. ...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 · October 2015
Rental Housing Journal Metro
Property Managers Help Residents Save Money and Energy Use Energy Efficiency and Money-Saving Ideas to Create Client Conversations
by Marc Courtenay
W
hile vacancy rates are low many property managers are focusing attention on effective ways to retain good residents and proactively please their clients. Saving money is one of the most popular ways. The cost of energy to heat and cool buildings is rising once again. With seasonal variations and the extreme temperature changes many are facing, now’s an auspicious time to consider an energy-efficiency campaign. There are still many subsidized programs sponsored by utilities, manufacturers and the government that reward the use of the latest, energy-saving windows, doors, insulation, furnaces and appliances. Some encourage water savings in drought stricken areas like California, which according to the San Francisco Chronicle is experiencing the most severe drought in over 1,200 years. Low volume toilets, shower heads and drought tolerant landscaping are some of the suggestions being implemented. One way to begin is to visit the U.S. Environmental Protection Agency’s WaterSense website. WaterSense, a partnership program, “…seeks to protect the future of our nation’s water supply by offering people a simple way to use less water with water-efficient products, new homes, and services.”
The EPA also has its popular EnergyStar program to help find countless ways to save both energy and money. The U.S. Department of Energy collaborates on the website and programs. Now in its 23rd year, EnergyStar is “…a voluntary program to identify and promote energy-efficient products and buildings in order to reduce energy consumption, improve energy security, and reduce pollution through voluntary labeling of or other forms of communication about products and buildings that meet the highest energy efficiency standards.”
The list of certified EnergyStar products is remarkable. It includes water heaters, lighting and fans, heating and air-conditioning systems, building products and even offers a list of office equipment and electronics that save energy and money. Many utility companies, municipalities and state governments offer rebate programs to reward energy efficiency. My local utility offers rebates on EnergyStar appliances, ducted heat pumps, windows and storage tank water heaters.
Your owner-clients will always be impressed when you contact them with ideas to retain residents and save money. Some are probably thinking, “What’s my property manager doing to keep my business?” That thought alone may motivate you to call or write your clients with energy-saving tips and proactive suggestions to make their rental units more attractive and less costly. Begin by calling your local utility companies and finding out what incentive programs and rebates are available in your area. Tell clients about the EnergyStar program and how it can save them money. Be a reliable source of innovative ways to deal with the challenges of climate change. Initiate a dialogue with your clients to see if they have any questions or if they’d like to learn more. The good news is that money is available to offset the costs of energy-saving upgrades for rental homes and apartments. Let them know about the opportunities and keep them informed. You’ll strengthen relationships; build more credibility, while contributing to the solutions to today’s energy challenges that impact us all. Published Courtesy of PropertyManager.com
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www.RHJsal ary.com Rental Housing Journal Metro · October 2015
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Rental Housing Journal Metro
SK THE SECRET SHOPPER
T
here is an old saying when it comes to selling/renting real estate that the three most important factors are: location, location, location. Yet, what if you are working at an apartment community that does not have these three things going for it? Maybe your community is “off the beaten path” and no one can find you, or your building is located in a neighborhood that is not considered desirable because it needs a facelift. Perhaps you are near certain types of businesses that may discourage people who are driving by from driving in. The issue of “location,” is obviously a concern based on the following question:
Q: I work at an older building that is tucked away in a secluded spot. It once had a great reputation, but over several years, the local neighborhood has taken on a “run down” appearance and many of the area businesses are not caring for their properties the way they once did. It’s getting harder and harder to attract new renters, not to mention trying to hang onto existing residents who are now concerned with security and safety issues. If I could pick up and move this building I would do it! Do you have any suggestions? A: I want to commend you for your loyalty to your building and residents.
It’s obvious that you care a great deal about the people and the place where you work, as well as your local community. Challenges with “location” are especially difficult as they sometimes fall into the realm of things that we consider to be “beyond our control.” We feel powerless and frustrated. On the other hand, difficult challenges present unique and exciting opportunities to become creative and also get other people involved in the problem-solving process. Thomas Edison said, “Opportunity is missed by most people because it is dressed in overalls and looks like work!”
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Well. . . solving challenges related to “location” is work; it’s HARD work! It requires spending time analyzing ALL of the problems, not just the ones that are blamed on location. Let’s face it: Over a period of time, it becomes easier and easier to make “excuses” and “blame” what is perceived as a “bad location” on EVERY problem that arises. (i.e. “No one can find us because we are in a bad location!” How colorful and well placed are your signs? How skilled are you at giving specific, detailed directions; even if it means using a local pub as a landmark? “No one will use our laundry facility because it is perceived as being ‘unsafe’ because we are in a bad neighborhood.” - Is your laundry room bright, cheerful and welcoming? Is the interior, as well as the exterior building and surrounding area, well lit? Can residents be introduced to each other and encouraged to use the “buddy system?”) With regards to your neighborhood situation, perhaps your community could become a member of your local Chamber of Commerce and network with other area businesses who care about the condition of your section of the city. Maybe your staff and residents could get involved civically and attend local town meetings to make your voices heard about what’s happening in your neighborhood. What about forming a block watch at your community? The problems you face won’t go away overnight. They took years to develop and will take time to correct. MUCH patience will be required to bring about any lasting change. Of course many people prefer to stay with problems they understand rather than look for solutions they’re uncomfortable with. (It’s easier to complain than change!) However, if you always do what you’ve always done, you’ll always get what you’ve always got. You may not be able to change the location of your building, but you CAN change the direction of your thinking. - After all, it’s a lot easier to “pick up and move” people, rather than buildings! If you have a question or concern that you would like to see addressed next month or if you would like to inquire about a shopping program and leasing training, please ASK THE SECRET SHOPPER by making contact via e-mail or fax. Your questions, comments and suggestions are ALWAYS welcome! If you are interested in leasing training or have a question or concern that you would like to see addressed, please reach out to me via e-mail. Otherwise, please contact Jancyn for your employee evaluation needs: www.jancyn.com ASK THE SECRET SHOPPER
Provided by: Joyce (Kirby) Bica Former owner of Shoptalk Service Evaluations Consultant to Jancyn Evaluation Shops E-mail: shptalk2@gmail.com Copyright © Joyce (Kirby) Bica
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Rental Housing Journal Metro · October 2015
President: John Sage • President Elect: Ron Garcia | Past President: Elizabeth Carpenter Security: Lynne Whitney | Treasurer: Elaine Elsea | Office Manager: Cari Pierce John Sage, RHA Oregon President
Positivity & Relationships
S
tudents are back in school. Football season has started and cooler weather is in the air! The leaves on the trees will start to turn and the mountains and valleys will be beautiful tones of red and orange. This is one of my favorite times of the year. The cooler weather seems to get everyone excited and motivated. Also, it reminds us of the projects that we haven’t gotten done yet on our summer to-do list. Not sure about you, but I have some catching up to do on my projects. Along with the other maintenance projects that I have been working on, there are a myriad of other things that need attention. Unfortunately, there are others that have been remiss in getting to their projects/plans also. Actually, they have been putting their projects off much longer than I have. I consider myself an “Amatuer-crastinator”. These people are “Procrastinators”. Those of you paying attention to what is going on in our fair city know what I am talking about. So I won’t go into further detail in this message. What I really have been thinking about is relationships. Everything is about relationships. Our work, home, the day to day interaction with our colleagues, neighbors, and others that we run into going about our daily lives. I worry that with the advent of technology we are
forgetting how to be courteous to others and how to establish a relationship in our hectic, stressful lives. Something that always helps me is something that I learned long ago:
To try to positively touch at least 10 people every day.
Whether that is holding the door open for someone, just looking them in the eye and giving them a brief smile, or actually saying “Good Morning or Good Evening “ as you pass by. You should try this, it works wonders. I remember helping to serve lunch at JOIN a few months back. Having to rush from work to their location and then setting up to serve and getting everything ready was stressful.
My day was very busy already and a part of me wanted to have an excuse for not going in the first place. Then I remembered to try to touch 10 people in a positive way. As I helped at JOIN I made this a goal. Funny thing, it wasn’t more than a few minutes, as people passed thru the serving line, and I shuttled food from the kitchen to the serving line, until I forgot to worry about all of the work waiting for me. I forgot about every other thing except the fun that I was having: The smiles that were freely given, and were returned just as freely. The whole attitude of the place seemed to lighten. There were numerous smiles exchanged and kind greetings. The thought occurred to me, by working to reach my
10520 NE Weidler, Portland, OR 97220 (503) 254-4723 • Fax (503) 254-4821 info@rhaoregon.com • www.rhaoregon.org
goal of touching 10 people in a positive way, I had also changed my mood and perspective. I had effected a change and it had affected me. I left that day to head back to work with a renewed energy and attitude. So I encourage you all to reach out and positively touch at least 10 people every day. Who knows what it might accomplish? RHA Oregon has a wonderful and giving board of directors. It is because of them that we have a relationship with JOIN, and we are able, thru the Starry night fundraiser, to sponsor getting a homeless family off the streets, give toys to families of Military Veterans every Christmas, and a myriad of other volunteer activities. I invite you to serve on the board in the coming year. See what you can bring to our organization. Remember to check our website for upcoming classes. As I stated in my last message:
We all need to learn something new every day.
I look forward to seeing you at our monthly dinner meeting. Sincerely, John Sage President RHA Oregon Stegmann Insurance Agency Inc.
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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 · October 2015
5
Rental Housing Journal Metro
2015 Changes to the Oregon Landlord Tenant Act (SB 390) By Clifford A. Hockley President, Bluestone & Hockley Real Estate Services
O
nce again, tenants and landlords have come together with the legislature to update the Oregon Landlord Tenant Act. On June 15, 2015, Oregon Governor Kate Brown signed SB 390 into law. The law itself takes effect the 1st of January 2016. While most of the changes to the act are basic clarifications, significant issues are addressed as well. I have reviewed the changes in the act and summarized them here for your convenience. Please read carefully.
1. Clarification regarding mailing of notices To avoid confusion, ORS 90.160 has been updated insofar that notices expire at 11:59 p.m. on the last day of the notice period rather than at 12 midnight. 2. Timing for notices of restitution ORS 105.159 (with a specific focus on ORS 105.151 regarding notices of restitution) has been updated insofar that notices of restitution expire at 11:59 p.m. on the last day of the notice period rather than at 12 midnight. This change also clarifies that the mail time for notices of restitution starts at 12:01 a.m., the day after a notice has been placed in the mail, and ends at 11:59 a.m. four days later. However, if the end date falls on a
Saturday, Sunday or other legal holiday, then the notice period shall end at 11:59 p.m. on the day preceding the next judicial day.
2. Noncompliant pet fees ORS 90.302 has been amended to include authorization to charge noncompliance fees to tenants for failure to clean up the waste of a service/companion animal from a part of the premises other than the dwelling unit. (The point of this change was to encourage owners of those animals to pick up animal waste at a property just like any other tenant would be responsible for.) In addition, there was a change to the section of the act that addresses the penalties for keeping an unauthorized pet capable of causing damage to persons or property as described in ORS 90.405. Initial noncompliance fees are limited to $50 (see ORS 90.302(3)(a)(A). However, a fee for a second or any subsequent noncompliance relating to an unauthorized pet can increase to a maximum of $250. Those unauthorized pet fees may not be imposed until 48 hours after the warning notice has been delivered to the tenant. 3. Assessments imposed by a homeowner / condominium association ORS 90.302 has been modified to address homeowner / condominium asso-
ciation fees. This section clarified that assessments can be passed on to tenants if they are imposed for moving into or moving out of a unit or property located within the association. To levy these fees the landlord must establish the fees in a written rental agreement at the beginning of the lease term and the landlord must give a copy of the assessment distributed by the association to the tenant before or at the time the landlord charges the tenant. If a landlord charges a tenant a fee in violation of this section the tenant may receive from the landlord a penalty that recovers twice the actual damages to the tenant or $300, whichever is greater.
4. Regarding a tenant’s failure to pay for damages, utility fees and / or charges and deposits. Amendments to ORS 90.412 (the “waiver” statute) clarifies a tenant’s failure to pay money to a landlord for damages to the property, structures at the property, utility fees and / or charges and deposits. The following section is new: The violation concerns the tenant’s failure to pay money owed to the landlord for damage to the premises, damage to any other structure located upon the grounds, utility charges, fees or deposits and, following the violation but prior to the acceptance of rent for three rental periods or performance as described in subsection
(2) of this section, the landlord gives a written warning notice to the tenant regarding the violation that: • Describes specifically the basis of the claim and the amount of money owed that constitutes the violation; States that the tenant is required to correct the violation by paying the money owed; and • States that continued nonpayment of the money owed that constitutes a violation may result in a termination of the tenancy pursuant to ORS 90.392 This statute is also amended to read that “ for violations concerning the tenant’s failure to pay money owed to a landlord, the landlord’s written warning remains effective for 12 months from the date of the tenant’s failure to pay the money owed.”
5. Regarding renter’s liability insurance and landlord requirements thereof. Changes to ORS 90.222 are important given that as of January 1, 2016 landlords must provide a reasonable written summary of the exceptions to the insurance requirements to tenants. This typically addresses low income tenants or tenants using vouchers or living in subsidized housing, and basically exempts Section 8 tenants for carrying rental liability ...continued on page 16
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Rental Housing Journal Metro · October 2015
Rental Housing Journal Metro
Winter is Coming
Prepare Rental Properties...continued from page 1 4. Check the water heater. Ensure units on the property are in good condition with thorough inspections. Drain and flush the hot water heater to get rid of sediment build-up. If it’s time for an upgrade, choose a model that’s compliant with the latest efficiency requirements enacted in April of this year. 5. Install programmable thermostats. Wi-fi enabled thermostats offer customizable convenience by enabling users to control temperatures from their smart phone. Some models even sense when a unit is occupied, delivering comfortable temperatures when it is in use and saving energy and money when no one is home. Property managers can also program smart thermostats to send reminders for filter changes or extreme temperature alerts. 6. Clear gutters. Remove debris from gutters to ensure proper drainage around the property. The fall and spring seasons are the best times to clean gutters, and property managers should take this one at least two times per year. Improper drainage can damage landscaping and the property’s foundation and cause snow and ice to build up in the winter months. 7. Protect the landscaping. The steps to winterize your landscape largely depend on your location. In milder climates, like the West Coast or Deep South, you can protect your outdoor plants by applying mulch or protective fencing and verifying that the freeze sensor on the irrigation system is
working properly. In colder climates, drain water from the irrigation system so pipes and sprinklers don’t burst underground. There are three common techniques to winterize irrigation systems – manual, automatic and compressed air blow-out methods – so property managers should review the options to determine which can best protect their landscape. 8. Defend against moisture. Keep outdoor fabrics and surfaces safe from the winter elements with a moisture blocking spray or sealant. Use the product to protect walkways, wood and other outdoor surfaces before the harsh weather arrives. 9. Create a severe weather kit. Prepare for the worst by assembling a severe weather kit before the season hits, including generators, batteries, flashlights and a First Aid Kit. Also include snacks, water and other essential supplies. 10. Help residents prepare. Encourage tenants to report maintenance issues immediately and share tips to help them get ready for the winter season. Let them know that they play a huge role in keeping the unit intact during the colder months. By Scott Matthews, Director, Strategic Accounts, The Home Depot
Scott is responsible for managing national accounts and e-commerce while overseeing business-to-business relationships. During his 25 years at The Home Depot, he has served in a variety of roles and capacities, including Regional Pro Sales Manager, District Manager and Store Manager.
Rental Housing Journal Metro · October 2015
I
Have a plan!
t’s budget season for property manager and everyone is scrambling to get them done accurately and on time, while managing everything else that goes on daily on our properties. But, we can’t forget cold weather and freezing conditions are coming. Although, we have had a hot long summer into fall, we need to be prepared for cold weather. Prepare for the worst and hope for the best!
Here are some best practices for to help ease the process and headache. Prepare the residents. • Staff should be prepared with all emergency situations and how to navigate all emergencies. Winter can bring fires, floods, freezing pipes, and freezing branches that can fall on buildings. All staff should know how to handle all of these situations. Be prepared with phone numbers for after hours emergencies for restoration companies, electricians, tree removal and landscaping companies, and help organizations like The Salvation Army. It’s also important to make sure that your whole team has contact information for all team members, in case of emergency. • Prepare staff and residents for emergencies. Make sure everyone knows what to do in case of emergencies during business hours and after. Office Hours and emergency contact information, including emergency and utility information, should go out to all
residents and posted on the office door as well as voice mail. • Publish and distribute an information booklet of emergency plans and reminders. For example: in the event of a power outage, remind resident not to use stoves or space heaters that do not automatically shut off if tipped over. Avoid candles and make certain that residents have working flashlights and batteries. Another important plan to include is fire evacuation. Make certain to walk your property and note potential areas of concern – IE sidewalks, parking lots or stairway that might freeze over, etc. Include those in your plan. Everyone hopes that none of these emergencies will occur, but they do happen. The best way to overcome, minimize damage and keep residents as happy as we can will come from BEING PREPARED! By Dana Brown
Dana Brown has worked in all facets of the property management and rental housing industry for over 30 years. She is a national speaker and trainer who consults with both property management companies and industry service providers. You may reach Dana at: danabrown3321@gmail.com
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Rental Housing Journal Metro
Lead Safety, Testing, & Contractors By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon
O
ne cannot see tiny specks of lead in household dust yet just a minuscule amount can be toxic enough to poison. At greatest risk are children whose bodies and brains are still developing, as well as those with compromised immune systems. The prevalence of lead-based paint used in older housing stock up until its ban in 1978 means that many homes in our area have such potential, if invisible, hazards. Just one sugar packet’s worth of lead dust scattered evenly over an area the size of a football field is enough to poison a child playing on that surface. That might be your child or grandchild. If you do painting or repair work on pre‘78 homes, you may carry toxic lead dust home on your clothes and shoes. You might also poison your residents’ children if you’re doing work on a rental property that you own or manage.
The Dangers • Abnormal fetal development • Learning disabilities • Lower IQ scores; memory, speech, and language problems • Behavioral issues • Damage to the brain and nervous system (especially in kids) • Fertility problems • Diminished motor skills • Decreased bone and muscle growth and coordination; muscle and joint pain • Kidney damage
8
• • • • • •
Hearing loss Memory loss Digestive problems High blood pressure Headaches In severe cases, seizures, unconsciousness, and death
Very often health departments and prevention programs respond to lead poisonings identified with blood testing. According to the EPA, over one million kids in the US currently have high blood lead levels from old lead paint in homes. Should we wait for fires to start and things to get burned before acting? Of course not, and just with fire prevention, here we must move together on poison preventative measures aimed at controlling lead hazards in housing and minimizing risk before the harm is done.
Prevention is Key • Pro-actively check for lead hazards in and around homes • Establish maintenance plans that prevent hazards from arising (such as repainting often enough to avoid worn, chipped paint that more readily flakes off creating dust) • Remediate existing lead hazards or fix dangerous problems Home repairs that create even a small amount of lead dust are enough to put lives at risk. If you own, live in, or work in residential property(ies) built before 1978, make sure you know your legal obligations and how to keep yourself and others safe.
Contractors If a pre-‘78 property requires repair or renovation that will disturb painted surfaces, inside or out, federal and state laws require that you hire a Lead-Safe Certified contractor (or become certified yourself). Details can be found on the Oregon Health Authority website, https://public.health.oregon.gov/ HealthyEnvironments/HealthyNeighborhoods/LeadPoisoning/Pages/index. aspx. The LeadLine at 503/988-4000 can provide a list of certified contractors, and explain how to be certified yourself, if you’re interested. Testing A lead dust test is the only way to be sure that lead-contaminated dust is not present in dangerous levels. Instant spot paint test kits available at hardware and home improvement stores can provide useful information but are not as accurate as a tests analyzed by a laboratory. You have options: Use a home dust test kit. Hire a commercial testing service. Lab analysis costs $5 to $20 per sample, depending on the number of samples and the laboratory you choose. Typically, two or three samples per room are adequate. Contact a certified lead professional. This is certainly the most expensive option and the most comprehensive. The LeadLine at 503/988-4000 can provide referrals and information about
local programs, grants, testing, and certified professionals.
Federal Regulation Federal agencies have developed and implemented measures such as these to reduce exposure to lead hazards in housing: Lead Hazard Control Grant Programs enable local and state agencies to contract for lead hazard control in low-income high-risk homes. Learn more at www.portlandoregon.gov/phb/61012. The Federal Real Estate Notification and Disclosure Rule mandates that property owners reveal information about known lead-based paint and hazards and testing to prospective buyers and renters. (www.epa.gov/lead/pubs/ fs-discl.pdf) Oregon’s Lead-Based Paint Activities Certification and Accreditation Program oversees lead-based paint inspections, risk assessments, and abatement. (https://public.health.oregon.gov/ HealthyEnvironments/HealthyNeighborhoods/LeadPoisoning/Pages/index. aspx) HUD’s Lead Safe Housing Rule governs how lead safety is addressed in federally funded housing. (www.hud.gov/ offices/lead/enforcement/lshr.cfm) EPA’s Renovation, Repair and Painting Rule requires housing providers, contractors, and those who work in older homes and child-occupied facilities to ...continued on page 15
Rental Housing Journal Metro · October 2015
Rental Housing Journal Metro
5 Lessons for ...continued from page 1 Winter leaf drop, then I will do one final clean and jet in December/January to get rid of all the leaves and debris that was just dropped over the past 90 days.
Lesson One: Gutters and drains are key. When gutters, downspouts, and ground drains are neglected, they begin killing your buildings. These components are at the top of the most wanted list when it comes to the destruction of your physical property. When they are clean and clear of debris, they will redirect and remove thousands of gallons of rainwater per year. To find the estimated amount of rainfall at your property use the following equation: (total sq’ of roof surface X 0.6 X annual rainfall). Here is a common property example from one of the properties in my portfolio in Portland, OR. It’s a 100 unit property with 10 buildings. Each building has a roof surface of approx. 2000 sq’. Using the annual rainfall for Portland (37.2”/ yr), we can estimate that over 446, 000 gallons of water per year is landing on nearly all surfaces of my property, but mostly on the roofing. Without clean and functioning gutters, downspouts and ground drains all of that water is pouring into your building envelope somewhere. Whether it’s damaging the roof sheeting, deteriorating the fascia, pouring down the siding, splashing over the side and causing splash back on the underside of the siding, or simply creating standing water throughout the property, it will cause you problems. The obvious solution is to give your rain drain system the attention it deserves. I recommend 3 cleaning and line jettings per year. Starting in March, I want to get all the residual debris out from the previous winter. Then in August/September I want to get them all clear for the upcoming Fall and
Lesson Two: Sealant matters. The sealant (caulk) that is protecting your windows and siding material joints is like the sentry guarding the castle gate. At first he is strong, flexible, dependable, and nearly unbeatable. However, he gets weaker over time, and, depending on his location, is constantly under attack and beaten down. Eventually, he fails and must be replaced. The truth of the matter is that even the best sealants on the market have a manufacturer’s recommended useful life of around 3-5 years. This means that if your property was built before 2013 and hasn’t had the sealant removed and replaced then your property is under siege, and there is nothing protecting the critical access points that could become an open gate for water, mold, dry rot, and building failure. Within the industry there is a push given the construction defect litigation environment that is prevalent to implement sealant replacement schedules every 4-5 years with a focus on the horizontal surfaces, especially those that are not flashed with metal. This increased focus on the sealant will not only prolong the life of the material components, it will eliminate interior envelope damages. Since all surfaces and potential points of intrusion are being reinforced on a regular basis, the life span of the envelope materials, and ultimately the value and future capital needs to retain the value of the property is preserved.
Lesson Three: Irrigation is key to NOI. We all know water is very expensive. What we sometimes forget is, one of the largest water drains on our sites are our irrigation systems. These systems were designed, initially, to get things growing fast at the time of development. Green grass, healthy trees, and bushes that can be trimmed and shaped make the property look good and help with the initial lease up and aggressive marketing that it takes to get the property performing well financially. But, over time, grass takes root, trees and bushes become mature and native plants and trees stabilize, leaving much of our irrigation systems unnecessary. Take this opportunity to do an in depth irrigation audit and determine areas that no longer need to be
watered. Some areas may need different approaches, such as drip systems rather than the more common sprinkler heads which use far more water. If possible, remove entire zones in areas that have little or no grass, heavily shaded areas, or areas that appear to be heavily saturated. Taking advantage of these savings will not only save you money but eliminates the need for future maintenance and possible damage and repairs as well.
Lesson Four: Don’t forget about crawl spaces. Although often forgotten, neglected crawl spaces can be can serious problems. They may be too cold and wet under the units, or too warm and wet above ...continued on page 15
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2Q15 Market Overview ...continued from page 1 is bright. RED Research’s 97.9% adjusted-R2 (S.E.=0.35%) forecasting model (adjusted to reflect the strong July data) projects 2015 and 2016 growth exceeding 30,000 jobs in each year. Growth is likely to decelerate in the out-years, but net gains of 20,000 jobs or more are projected through 2020. Occupancy Rate Summary Occupancy Rate (Reis) 96.4% RED 50 Rank 16th Annual Chg. (Reis) -0.4% RCR YE15 Forecast 95.4% RCR YE16 Forecast 95.8% RCR YE17 Forecast 96.5% RCR YE18 Forecast 96.7%
2Q15 Absorption And Occupancy Rate Trends Tenant space demand kept pace with supply during the second quarter but capacity will be tested by an avalanche of new product poised to be delivered in the second half. Renters leased a net of 444 units, according to Reis, up from 1Q’s 395-unit total but considerably shy of the net leases inked during the comparable periods of 2013 (547) and 2014 (633). Absorption was counterbalanced by delivery of 482 new units, resulting in a -10 basis point sequential quarter decrease in market occupancy to 96.4%. Axiometrics surveys of 200 larger, stabilized properties uncovered somewhat different conditions. The service reports 96.9% 2Q15 occupancy, up 70bps sequentially and 80 bps y-o-y. Class-C (97.9%) properties posted the highest occupancy, followed by classes-B (96.8%)
and –A (96.2%). New properties tenanted units at a 15/month pace, equating to an average 10-month lease-up period. RCR’s 93.7% ARS (S.E.=0.4%) occupied stock growth model uses current metro payroll and U.S. home price growth and lags of rent and stock growth as independent variables. The model forecasts constructive demand trends that nearly keep pace with the projected 5,710-unit, 5% increase in Portland’s apartment inventory by 4Q16. After slipping 100 bps over the course of the next 12 months, occupancy is expected to bounce 1.3% to 96.7% by YE18. Effective Rent Summary Mean Rent (Reis) Annual Change RED 50 Rent Change Rank RCR YE15 Forecast RCR YE16 Forecast RCR YE17 Forecast RCR YE18 Forecast
$944 3.9% 23rd 3.5% 2.6% 3.3% 3.3%
2Q15 Effective Rent Trends Metro rents averaged $944 during the second quarter, according to Reis, up 0.9% sequentially and 3.9% year-on year. These data compare to 1.2% and 4.2% gains in the year-earlier and prior quarters, respectively. The forward impulse came entirely from the class-A segment, where asking rents surged 1.25% sequentially, the largest increase in 3 years. By contrast, class-B&C rents were unchanged. Same-store comparisons of larger, stabilized properties by Axiometrics were considerably stronger. Apartments sur-
veyed by this service reported 12.8% unit-weighted average y-o-y rent growth, the fastest ever advance in this series. Class-B properties led the way in this population, rising 14.0%, followed by classes –A (11.7%) and –C (9.4%). Rent growth was slowest in Northeast (3.9%) and Northwest (6.1%) Portland submarkets, reflecting the impact of a host of new construction class-A/B+ properties in lease-up. RCR’s 93.9% ARS (S.E.=0.6%) rent model employs current payroll and occupied stock growth and one lag of inventory growth as independent variables. The model generates a positive forecast for 2015, but slower gains next year when supply pressures materialize. But the pace of rent growth should rebound smartly to the 3.0% - 3.5% range by 2017. Trade & Return Summary $5mm+ / 80-unit+ Sales 16 Approx. Proceeds $460.8mm Avg. Cap Rate (FNM) 5.2% Avg. Price/Unit $141,032 Expected Total Return 6.6% RED 46 ETR Rank 29th Risk-adjusted Index 4.55 RED 46 RAI Rank 25th
15 Property Markets And Total Returns Sales velocity was steady during the second quarter as 16 properties valued at $5 million or more exchanged hands, consistent with the 15 trade totals recorded during the prior two quarters. Sales volume increased, however, as
transactions generally were larger. Proceeds totaled $460.8 million during the second quarter, up from $392.5mm in 4Q14 and $380.2mm in 1Q15. Higher proceeds were attributable to an increase in units sold. A total of 3,267 units traded during 2Q, up from 2,601 during 1Q15. The average price of 2Q15 sales was $141,032, down moderately from 1Q15’s $146,182 per unit metric. Cap rates applicable to recent construction, class-A properties were in the low-4% to high-4% range. Nineties construction class-B/B+ assets traded to 5% to 5.75% yields. Class-C+/B– product traded only 50 to 75 bps behind B’s. To reflect the keen interest among institutions, private equity and REIT buyers in Rose city properties, we elected to trim another 15 bps from our generic metro cap rate to 5.2%. Using this purchase cap rate assumption, a 6.0% terminal cap rate and model derived occupancy and rent point estimates, we calculate that an investor would expect to achieve a 6.6% total return on a 5-year hold, ranking 29th among the RED 46. Volatility is near the group average, producing a middling 25th ranked risk-adjusted index.
By Daniel J Hogan
Director of Research djhogan@redcapitalgroup.com 614-857-1416 Office 1-800-837-5100 Toll Free
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Rental Housing Journal Metro
2Q15 Market Overview ...continued from page 10
Notable Transactions
The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED Capital Group. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors.
...continued on page 12
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2Q15 Market Overview ...continued from page 12 Submarket Trends (Reis)
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Time Management Skills Essential to Balance
A
sk any property manager “what is your most valuable yet most elusive resource?” and I would wager many would respond: TIME! So many of us in the industry thrive on the variety and challenges inherent to this profession, however we often find ourselves trying to compress daily tasks – both planned and unplanned- into a finite block of time called our “work day”. With multiple mobile devices we can literally connect and work around the clock and around the globe. We even have wrist watches now that can act as “mobile desks” and help us track emails, texting, fitness, personal schedules, meetings, calendars, and so much more! Does anyone remember when watches just provided the time and date? With such vast information available and the ability to work remotely literally at our fingertips, how do we achieve and maintain healthy balance between our work and personal lives. The line between these two worlds is becoming more blurred everyday as tech devices become more advanced and easily acquired. It is imperative that we manage our time well in order to better manage our lives. I have always thought balance is the key – with most everything in life. That said, when it comes to time management the challenges are constant. Here’s the good news: By incorporating time saving strategies into the workday we can become more efficient, minimize
problems, and increase levels of job satisfaction. Here are a few proven time management tips pertinent to property management that have been provided by professionals in the industry- and can help you accomplish management goals on a daily, weekly, monthly and yearly basis: • Make a List: Writing down tasks will provide a visual road map for the day. Create a list at the end of each day for the following day, or early morning of each day. Whether using a business planner or a mobile app…write it down. Include everything, even breaks and lunch times. Refer to it throughout the day. I like to check-off items as they are completed. This provides a sense of accomplishment, completion, and reduces stress. Marking a task as “done” helps you to move forward. • Prioritize the list: Determine the items that are “urgent” and require your attention first. Getting these items addressed at the start of the day allows you to move on to other tasks without the pressure of urgent matters still outstanding. • Get organized: How does your desk look? If co-workers cannot see you through the mountain of files and paper on your desk top, it may be time for a bit of house cleaning. • Save a tree. Use email folders and other electronic files as much as possible. Organize your workspace so that files
are easily accessed or documents can be found without engaging a search party. A clean workspace can truly reduce mental stress and exhaustion that often accompanies visual clutter. • Block out time: On a daily basis arrange a period of time that allows you full concentration on your work and freedom from interruptions, phone calls, texts and emails. Distractions can hinder your focus and disrupt the rhythm of your work-flow. Avoid checking the Internet, Facebook, and other social media. These venues can take just a second to open but often end up in several minutes of unproductive time spent on non-important items. Inform your staff and co-workers that you should not be interrupted during this time with the exception of emergency. It’s okay to resist the water-cooler chats and political debates, close your door, and get down to work. Stick to the time allotted for this and remain consistent so others will know you will be available afterward.
• Bundle similar tasks: Perform similar tasks that require the same resources in a batch. A good example of this might be reviewing 6 applications for a staff position. Rather than breaking this task into different time periods, review all in one sitting through to completion. This is an efficient use of time and allows greater concentration and mental alertness. And focus remains steady without interruption. • Avoid multi-tasking: This may fly in the face of what society tells us we must do to maintain “super-achiever” status. However, this process can actually prevent efficiency. Performing many tasks at one time decreases quality of work, results in more mistakes, and increases stress-levels. Studies have shown that focusing upon one task at a time until completion is the most efficient way to get things done. It can actually be more difficult to switch your focus to another task rather than simply stay...continued on page 18
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Rental Housing Journal Metro · October 2015
Rental Housing Journal Metro
5 Lessons for ...continued from page 9 the units. Take the opportunity to get a visual on these areas. Here is where to focus; lower crawlspaces should be clean and dry. Check the vapor barrier to be sure there are no tears in the barrier, no standing water or stains of previous water stains from the previous winter. Also, be sure to inspect all plumbing pipes that are within 5 feet of the outer foundation wall to be sure they are insulated. As for the upper crawl space, take a few minutes in each building to look for potential problems that add to excessive moisture issues and ultimately mold. Check fan exhaust venting to be sure it is positively connected to the exterior of the building, be sure that intake baffling is in place (you should see some outside light coming in where the bird block and intake vents are located), so that clean air can come into the crawl space and help push the moist, stagnant air out the top of the system. Last, be sure insulation is in place all the way out to the edge of the roof. As long as the baffles are in place this will ensure proper insulation for the units below.
Lesson Five: Emergencies are going to happen. Be proactive by implementing and practicing emergency plans with your team. If there is an after-hours call, does every member of your team know what to do? Setting up emergency response protocols, such as pre-approved vendors for restoration, plumbing, carpet extraction, and leak locators to deal with the problems, and hotels restaurants, or even the Red Cross to deal with the residents. Have a centralized location at
Lead Safety, Testing ...continued from page 8 the site that has a list of all these vendors, utility shut off locate maps, valve keys, fire panel directions, and emergency protocols for fire, flood, and blood, but also natural disasters, terrorist threats, gang violence, and even domestic violence. When emergencies occur everything is chaotic, be sure your responding site staff are trained, prepared, and are level headed so they can assume the leadership role your residents expect and deserve. Zach Howell, CAMT, UPCS, LEED GA Director, Apartment Maintenance Institute Zach carries a Psychology degree from Oregon State University. He is a nationally Certified Apartment Maintenance Technician, LEED GA, and Certified UPCS inspector carrying more than a decade of experience within the multifamily housing, development, and construction industries. Zach is a valued advocate for the Apartment Maintenance trade, serving as Subject Matter Expert for the National Apartment Association, Training Director for The Apartment Maintenance Institute, Community Education Faculty Member at Portland Community College, and 2014 Apartment Community Excellence “Oregonian Civic Award” Recipient. He can be contacted via email Zach@aminstitute.net
Rental Housing Journal Metro · October 2015
take precautions to avoid creating and spreading lead paint debris and dust. (www.epa.gov/lead/pubs/renovation. htm) EPA Standards on Lead Dust define what is a dangerous level of lead in paint, bare soil, and interior dust. (http://www. epa.gov/lead/pubs/leadhaz.htm) In additional, federal, state, and local fair housing laws2 protect families with children from discrimination in housing. Although lead poisoning is especially dangerous for kids, the fear poisoning or liability does not give housing providers the right to deny or discourage families with children away from pre-‘78 housing. Visit www.FHCO.org for more about this and other protected classes.
Questions? Call the LeadLine: 503/988-4000. It’s a free service – request a free lead test kit, learn where to get a blood-lead test, ask about Lead-Safe Certified contractors or how to become certified yourself. 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. Q’s 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? Vis-
it www.FHCO.org/learning-resources/ trainings to learn about the trainings we offer for companies and groups. 1 Housing Providers’ Lead-Related Obligations: Distribute the “Protect Your Family from Lead in Your Home” booklet (available at http://www.hud.gov/offices/ lead/library/enforcement/pyf_eng.pdf) Get a disclosure form signed prior to contract (available at www.hud.gov) Provide the “Renovate Right3” brochure and disclosure form prior to repairs / renovations (available at www. epa.gov/lead/pubs/renovaterightbrochure.pdf) Hire a contractor who is lead-safe certified or become certified yourself 2 Federally protected classes under the Fair Housing Act include: race, color, national origin, religion, sex, familial status (children), and disability. Oregon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Additional protected classes have been added in particular geographic areas; visit www. FHCO.org to learn more.
It might be your child or grandchild at risk! If you do painting or repair work on pre-1978 homes, you may carry toxic lead dust home on your clothes and shoes. You might also poison your residents’ children if you’re doing work on a rental property that you own or manage.
15
Rental Housing Journal Metro
2015 Changes to the Oregon ...continued from page 6 insurance. Should a landlord desire to amend a month-to-month rental agreement, so as to require rental liability insurance, the landlord must not only give a tenant a 30 day notice, but must also deliver the same written summary of exceptions to a tenant/tenants.
tic violence, sexual assault or stalking. A Landlord may require a tenant to provide verification that the tenant or a member of the tenant’s household is a victim of domestic violence, sexual assault or stalking as provided in ORS 90.453.
A landlord may require that the tenant provide documentation that the tenant has named the landlord as an interested party on the tenant’s renter’s liability insurance policy authorizing the insurer to notify the landlord of: a. Cancellation or non-renewal of rental insurance policies b. Reductions of policy coverage c. Removal of the landlord or other interested party (like a property management company or an attorney) If a landlord” knowingly” does not follow the modified rules, tenants may recover actual damages or $250, whichever is greater.
7. Utility and public service charges ORS 90.315 now allows landlords to bill tenants for utilities and public service charges (charged to the landlord by the public service. A ‘public service’ is defined as municipal services and the provision of public resources related to the dwelling unit, including street maintenance, transportation improvements, public transit, public safety and parks and open space. “Public service charge” means a charge imposed on a landlord by a utility or service provider by a utility or service provider on behalf of a local government or directly by a local government. However, “public service charge” does not include real property taxes, income taxes, business license fees or dwelling inspection fees. Provided your rental agreement requires a tenant pay a utility or service charge, landlords can bill for it but landlords must bill for the utility within 30 days after receipt of the utility provider’s bill. If the landlord includes the bill in the monthly statement of the rent due, the landlord must separately and distinctly state the amount of the rents and the amount of the utility and / or service charge. To be able to bill back utilities to the tenant the landlord must provide to the tenant in the rental agreement or in a sep-
6. ORS 90.325 tenant responsibilities 1. New codes require that new apartments be constructed with fire sprinklers installed. To that end tenants may not remove, obstruct, or tamper with a sprinkler head used for fire suppression. 2. Other new rules regarding tenant responsibilities define what damages tenants are NOT responsible for: a. Acts of God b. Conduct by a perpetrator relating to domestic violence, sexual assault or stalking c. Damage resulting from conduct by a perpetrator relating to domes-
arate bill to the tenant an explanation of: a. The manner in which the utility provider assesses the utility bill or service charge. b. The manner in which the service charge is allocated if the provider’s bill is allocated among multiple tenants, (for example: RUBs (Ratio Utility Bill back), sub meter, by number of residents in a unit, or by number of units). Landlords must include a copy of the utility bill for the tenant to review or state in the rental agreement and / or tenant bill back that the tenant can inspect the bill at the landlord’s office (during reasonable office hours) and that the tenant can have copies of the bills at a reasonable cost. Utility bills and service charges can be transmitted to tenants via first class mail, posted on the door, or via email, if the rental agreement so provides (ORS 90.155).
Service charge pass through A landlord must provide 60 days written notice to a tenant before the landlord may amend an existing rental agreement
to require a tenant to pay a new service charge adopted by a utility service provider (such as a billing service or a local government) that was not in existence at the time the rental agreement was entered into and that was adopted by a utility or service provider or a local government within the previous six months. A landlord may not hold a tenant liable for a public service charge billed to a previous tenant.
8. Application order for tenant payments According to ORS 90.220(9)(a), as of January 1, 2016 funds received from tenants must be applied in the following order: a. Outstanding rents from previous periods b. Rent from the current period c. Utility or service charges d. Late rent payment charges e. Fees or charges owed by tenants ...continued on page 19
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Rental Housing Journal Metro · October 2015
Rental Housing Journal Metro
T
Giving A Tenant “The Boot”
he time has come that you want to part ways with your tenants. How do you do it and what things should you be careful of? How much notice do you give them? Can you do things in a way that will avoid upsetting your tenant and causing them to damage your property before moving? Can you walk up to the door of the unit to have a conversation with them? First thing is the amount of notice you give them. This depends on the reason for terminating the relationship. If you are just doing a no-cause notice to vacate then you can give them a 30-day notice, if they have paid rent for less than 12 months. 60-days if they have lived there for more than 12 months. If this is a non-payment of rent situation then you are able to give them a 72-hour non-payment of rent notice on the 8th day of the month (assuming your rent is due on the 1st). This gives the tenant 72 hours to vacate or pay their rent. If your tenant threatens your safety or breaks the law while on the property then you may be able to give a 24-hour notice of eviction. Be careful with this one though and make sure that you are able to prove the violation. For most other lease violations you can give them a 14/30 notice. This is a notice that gives the tenant 14 days to cure the lease violation in a manner that is agreeable to the landlord or 30 days to move out. If the tenants have not become hostile yet then I would suggest that when you give one of these notices you either call the tenant beforehand or do it in person and try to have a conversation with the
tenant at the same time. Keep in mind that the main goal is to get the tenant to move out. When you post a notice of eviction for a cause you can accomplish a lot by having a conversation with the tenant. Keep in mind that it is perfectly legal for you to do a “knock and talk”. That is you are allowed, without prior notice, to walk up the normal pathway to the front door to knock on it and try to talk with the tenants. Obviously be careful to stay on the natural path to the front door, don’t look inside any windows, and don’t walk around the property if you haven’t given notice. When you talk to the tenant let them know that you have no choice but to post this notice. Although if they are able to get moved out prior to the notice expiring or even prior to the initial hearing if you have to file an eviction, that you will drop the eviction. 90% of our evictions end on a positive note in this way. Ultimately we get what we want in that the tenant moves out without causing any additional trouble and sooner than if they fight it and we have a trial. They get the added benefit of not ending up with an eviction on their
record which could cause them to be denied at the next place they try to rent or pay much higher security deposits. The reason that you want to have this conversation while still posting the necessary notice is that you want to reserve your right to evict them as soon as possible if they don’t follow through on their side of the agreement. The majority of landlords have heard the “promises” and sob stories. If you still post the notice, but let them know that an eviction won’t end up on their record if they can follow through, then the ball is in their court and if they fail to follow through you haven’t lost any time and can still evict them as soon as possible. The eviction process is much like getting a traffic ticket in that there is an initial hearing to see if you and the tenants can come to an agreement; and then there is a trial if no agreement can be made. The best thing that you can do is reach an agreement at the initial hearing. The reason is that the judge will make that stipulated agreement part of his judgment. In entering this agreement with you and the court the tenants are
waiving their right to a trial. So if they fail to follow through on their end you are able to file some paperwork at the courthouse and get your FED judgment. If you are evicting a tenant and part of the agreement is that if they follow through you will actually allow them to continue living at the residence then you can add to that agreement that they pay their rent on time. Most judges will allow you to require this for up to 6 months. This is a very good thing to add to that agreement as it makes it so that you can skip the hearing and trial and just evict them on grounds of violating their stipulated agreement if they fail to pay their rent on time.
The last bit of advice I can give is to never make it personal. Keep in mind that even if they live in a property you own that this is just business. Don’t get sucked into arguments with the tenant and stick to the facts at all times. Always remember that your end goal is not to punish the tenant, but to get possession of your property back as quickly as possible with as little damage as possible. So be prepared to offer the tenant something (like dropping the eviction case) if it means they will move out sooner than later and without a fight. Good luck with your next eviction! Christian Bryant
President Portland Area Rental Owners Association Coldwell Banker Property Management www.CBPropertyManagement.com
*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 Rental Housing Journal Metro · October 2015
17
16083 SW Upper Boones Ferry Rd, Suite 105, Tigard, OR 97224 503-213-1281 | Fax 503-213-1288 | www.multifamilynw.org
Time Management ...continued from page 13
Establish a workday rhythm that starts early in the day. Studies show that we are generally most productive in the morning hours when well rested and mentally alert. Schedule and perform your most difficult tasks before noon. This also provides a nice early sense of accomplishment in your workday, further reducing stress. • Embrace technology: Technological tools (for mobile and other screen devices) can save you incredible amounts of time. If you are not exploring and using the many different applications available today - get up to speed. Apps such as Evernote for project management/tracking are very useful for organizing many pieces of information (allows creation of a virtual notebook planner without using a single piece of paper!). Electronic calendars, texting, appointment alerts, electronic banking and social media – all provide efficiencies. Use them wisely but do not give into other temptations provided with technology. Twitter and Facebook can be very distracting- and deter from completing your to-do items. • Carve out “me time”: When the mind is stressed, the body cries out. Take care of your mental well being by tak-
Now, more than ever before, we operate in a world that gives us more information, at incredible speed, available at our fingertips. Efficiencies are not just convenient ideas, but are truly required to achieve balance and contentment with our work and personal lives. Time is truly a precious commodity. When managed well and used wisely, we can truly enjoy the best of both worlds - professional and personal!
Form of the month Oregon For Cause Notice of Termination This is a 31 day notice served to tenant to notify of violation(s) of rental agreement. This form allows a 14 day cure period to remedy violation(s) and avoid termination of the tenancy. The For Cause notice is the only termination notice (for general violations) available for fi xed term lease tenancies. This notice provides a tenant with SPECIFIC explanations of the violations to the rental agreement (Who, What, When & Where). It allows a 14 day cure period to remedy violations before termination.
Multifamily NW Upcoming Educational Calendar It’s the Law Lunchtime Series: Wearing Different Hats: Setting Up LLCs and Other Entities Vendor Relationships Sold Out - Fall 2015 Apartment Report Breakfast CAM: Risk Management Low Income Housing Basic Tax Credit Part I & II MWV Luncheon: Landlord/Tenant Law Part I MWV Luncheon: Landlord/Tenant Law Part I & II Safety & OSHA Preparedness Law & Rule Required Course “LARRC” Cruel and Unusual in Property Damage Restoration Oregon Landlord Tenant Law - Part I CAM: Research, Analysis, and Evaluation Washington Landlord Tenant Law Reverse Trade Show
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OREGON
NOTICE OF FOR CAUSE TERMINATION
SUBSIDIZED RESIDENTS ONLY HUD DISCLOSURES If you remain in the leased unit on the date specified for termination, Owner/Agent will enforce the termination only by bringing a judicial action at which time you may present a defense. You have ten (10) days within which to discuss this eviction with Owner/Agent. This 10-day period commences on the earlier of the day this Notice is hand-delivered to your unit or the day after it is mailed. The discussion period does not extend the date for termination. Persons with disabilities have the right to request reasonable accommodation to participate in the hearing process.
DATE __________________________________________ PROPERTY NAME / NUMBER ___________________________________________________________________________________________________________________________________________________________________ RESIDENT NAME(S) ___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
___________________________________________________________________________
ADDITIONAL SERVICE REQUIREMENTS
and all others. UNIT NUMBER ___________________________________ STREET ADDRESS ___________________________________________________________________________________________________________________________________________________________________________
SECTION 8 VOUCHERS: Notice served by one of the methods listed above AND copy mailed to Public Housing Agency the same day. HUD (PROJECT BASED): Notice served by one of the methods listed above, AND mailed to Unit, AND
CITY ___________________________________________________________________________________________________________________________________________________ STATE ___________________________________ ZIP _____________________________________________________________
1. Attempt to serve the Notice personally to any adult answering the door. If unable to do that: Pursuant to Oregon landlord-tenant law, you are hereby notified that you are a) in material violation of your Rental Agreement; b) in material violation of the resident duties under ORS 90.325; and/or c) in violation of your obligation to pay rent. The acts or omissions constituting the violations are described as follows (provide specific factual detail for each violation):
2. Attempt to slide the Notice through the door (mail slot) or under the door. If unable to do that: 3. Post the Notice on the door at eye level. Form M023 OR Copyright © 2014 Multifamily NW®. NOT TO BE REPRODUCED WITHOUT WRITTEN PERMISSION. Revised 12/4/2014.
• Be a “morning person”: My highschool track coach was right. Getting up early, eating a sensible breakfast, and keeping a “can-do” attitude will help you “go the distance”.
ing care of your physical well being. Eat sensibly and get at least moderate exercise on a daily basis. Just taking a brief walk outside the office can feel rejuvenating and help re-charge your brain. Deep breathing and short mediation at select points throughout the day can do wonders in terms of reducing stress and increasing mental clarity and physical well-being. Avoid sitting for long periods of time. Take the phone call standing up.
____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
These violations can be cured by doing the following (describe actions that will cure the violations, and if no cure is possible, so state): ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________
If you fail to cure the violations by ______________________________________ *, your Rental Agreement will terminate on the date set forth below. If you timely cure DATE the violations, your Rental Agreement will not terminate. Recurrence of substantially the same act or omission as any violation described above within six months from the date of this Notice may result in termination of your Rental Agreement with a 10-day notice and no opportunity to cure. *If the violation is ongoing, the cure date must be at least 14 days (17 days if the notice is served by mail only) from the date of service. If the violation was conduct that was a separate and distinct act or omission that is not ongoing or sufficiently repetitive over time that it could be considered ongoing, the cure date can be as early as the date of delivery of the notice (or 3 days from the date of service if served by mail only.)
c This Notice has been served personally and the termination date is at least 31 days later at midnight (end of day) on
Form M023 OR Copyright © 2014 Multifamily NW®. NOT TO BE REPRODUCED WITHOUT WRITTEN PERMISSION. Revised 12/4/2014.
ing focused on the present task - all the way to finish.
. or
_________________________________
DATE
c If written Rental Agreement allows, this Notice has been served by posting on the main entrance door of the dwelling unit and mailed first class mail. The termination date is at least 31 days later at midnight (end of day) on ______________________________________. or DATE
c This Notice has been served by first class mail only and the termination date is at least 34 days later at midnight (end of day) on _____________________________________. DATE
Owner/Agent: Please note additional service requirements for subsidized residents as listed in “Subsidized Residents Only” section. X OWNER/AGENT ____________________________________________________________________________________________________________________
THANK YOU FOR YOUR COOPERATION
ADDRESS
____________________________________________________________________________________________________________________
____________________________________________________________________________________________________________________
TELEPHONE
SUBSIDIZED RESIDENTS SEE DISCLOSURES ON SITE
RESIDENT
____________________________________________________________________________________________________________________
MAIN OFFICE (IF REQUIRED)
PAGE 1 OF 2
ON SITE
RESIDENT
MAIN OFFICE (IF REQUIRED)
FOR CAUSE TERMINATION
=
PAGE 2 OF 2
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Rental Housing Journal Metro · October 2015
Rental Housing Journal Metro
2015 Changes to the Oregon ...continued from page 16 under ORS 90.302 or other fees and charges related to tenant caused damages and other claims This section does not apply to rental agreements subject to ORS 90.505 – 90.840 relating to manufactured dwellings or floating homes but does affect all rental agreements for fi xed term tenancies entered into or renewed after the effective date of this 2015 Act (January 1, 2016).
9. Definition change regarding emergency exits Section ORS 90.100 creates new language requiring a landlord to provide an emergency or secondary means of exiting a bedroom (in addition to the main door to the room,) and allows a tenant to terminate such a tenancy on 72 hours’ notice unless the landlord cures the noncompliance, compensates for damages and pays a penalty for their failure to cure. This change is aimed at landlords who rent out illegal units containing bedrooms without legal or approved egress, which can be catastrophic in the case of a fire or other emergency. This law is focused on landlords who build extra rental rooms without a permit, with a specific focus on basements, attics and rooms that have no windows that can be used for emergency egress. If the landlord does not cure the noncompliance within a 72 hour period the tenancy terminates without any tenant penalties, and the tenant can recover twice the tenant’s actual damages or twice the periodic rent, whichever is greater. Within four days after termi-
nation, the landlord must return all the security deposits and any prepaid rent owing to the tenant.
Summary In summary, as these new laws take effect, landlords must be vigilant in cases regarding the mailing period of notices, pet waste in public spaces / noncompliant pets, homeowner / condominium association assessment fees, tenants’ failure to pay fees, exceptions to insurance requirements, tenants’ responsibility for damages, utility and public service charges, the order tenants’ payments are applied, and provisions for emergency exits as they adapt their policies, procedures and documentation to the new provisions.
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