The Landlord Times - Metro - March Edition by Professional Publishing, Inc

Professional Publishing, Inc www.TheLandlordTimes.com

METRO

PORTLAND & VANCOUVER

Vol. 17 Issue 3

Published 17 Years

March 2013

MONTHLY CIRCULATION TO MORE THAN 20,000 IN PORTLAND/VANCOUVER APARTMENT OWNERS, PROPERTY MANAGERS, ON-SITE & MAINTENANCE PERSONNEL Published in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association

Oregon's Fourth Quarter 2012 Insight Into The Rental Applicant Risk Index Report By Jay Harris, Vice President of Business Services, CoreLogic SafeRent The CoreLogic® SafeRent® Renter Applicant Risk (RAR) Index Report, formerly known as the Multifamily Applicant Risk (MAR) Index Report, provides market-based benchmarks for evaluating credit quality and risk of default for renters applying for apartment homes in multifamily housing units. The index also includes data from single-family rentals. Using a mean of 100, an index value above 100 indicates decreased risk, and a value below 100 indicates increased risk. According to the data, the risk of default among renters nationwide decreased year over year in the fourth quarter of 2012 with an index value of 103 compared to the fourth quarter of 2011 with an index value of 101. On a quarter-over-quarter basis,

Portland Apartment Market (20072012) - An Abridged History Landlords should have cause to feel better as we enter 2013 due to stronger than expected rental market and an (albeit slowly) improving economy that brings more tenants demanding units. The difference is night and day from 5 years ago when you’d post For Rent ads on Craigslist and they would languish for want of attention. Now you should not have a problem getting good tenants and (assuming you keep ahead of bills) you are taking in more money than before. Here is a summary of total sales and cost per unit for the last 5 years in the 4 county market (Clark, Clackamas, Multnomah and Continued on page 5 Page 2

Continued on page 9

6 Questions with Katie Poole-Hussa The Landlord Times recently caught up with Portland Oregon based property manager, landlord educator and Smart Property Management partner Katie Poole-Hussa. See what she has to say about motivation, inspiration and fundamentals in her life as a property management professionals. The Landlord Times: What’s your story? What is your background and how did you get into the property management industry? Katie Poole-Hussa: I had been a receptionist in the lumber industry for 6 years., and was attending colProfessional Publishing, Inc PO Box 30327 Portland, OR 972943327

lege classes, as I was able, in an attempt to discover what I wanted to be when I grew up. Through the mandatory “Career And Life Planning” class that the college required of me, I was forced to explore my professional strengths & weaknesses. Test, after test, after test repeatedly concluded that property management was where I was supposed to be. So, I listened. Right away I haphazardly submitted my two weeks notice, applied to every property management company that was hiring in the area, and crossed my fingers that the phone would ring. Thankfully it did. The local rental housing association president, and instructor of the property management certification program quickly hired me. What luck! I currently

Current Resident or

PRSRT STD US Postage PAID Portland, OR Permit #5460

am a licensed property manager in the state of Oregon, an eviction specialist in the Portland area, and a continuing education provider for other licensees. I feel very appreciative that I discovered my niche so early on in life. I made the leap of faith seven years ago and I’ve never looked back. TLT: What is it about this industry that has kept you motivated and interested? KPH: My motivation to continue managing properties, providing eviction services, and educating other landlords is to help landlords be better landlords. Education is key in this industry. Most often, the mistakes that I see landlords make are simply because they don’t know the laws. Well unfortunately that is not a legally recognized defense. Teaching other property managers and rental owners about laws and common business practices is thrilling to me and I don’t see an end to it anytime soon. As landlords, we must realize that we’re in an ever changing indusContinued on page 11

PRESIDENT'S MESSAGE Page 6

PRESIDENT'S MESSAGE Page 10 Chapter 29 Institute of Real Estate Management

BECOME AN IREM MEMBER Page 14

Clark County Rental Association

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MULTIFAMILY NW President • Paul Hoevet Past President • Jeff Denson Vice President • Pam McKenna Secretary • Kirsten Bailey Treasurer • Chris Hermanski

PAUL HOEVET

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

President's Message

MMHA President

Hello everyone. 2013 is proving to be an exciting year for you and your association. The Salem, Eugene, and Bend Councils continue to gain momentum, and we are seeing our membership grow throughout the region. We entered the year with a new name, and now Multifamily NW has a new, refreshed logo.

The new logo will represent us well as we continue to strive to be the

Association Promoting Quality Rental Housing. Most recently, we have extended our team of external allies by re-affiliating with the National Apartment Association. By doing so, we have increased our reach as an organization and at the same time greatly extended the level of benefits and value we offer to our members. As Multifamily NW continues to invest in its members, I believe now is a good time to step back and look at what makes an association strong. A solid name helps, as does a clear and concise mission. An attractive logo is

a plus, as is a solid group of members that are vested in our cause. But none of this holds any weight compared to the dedication and passion of Multifamily NW’s volunteers. The number-one challenge for any association is consistent recruitment of volunteers. As Multifamily NW continues to grow, so must the pool of members that donate their time to the association’s causes. The time commitment can be as little as one hour per month on a committee. Volunteering opens a huge networking opportunity, increases one’s ex-

Multifamily NW 2013 Events: MARK YOUR CALENDAR! March 18, 2013 • 9:00 AM - 2:00 PM ELEVATE: New Hire Class - Portland, OR March 18, 2013 • 1:00 PM - 3:00 PM Fifty Shades of Fair Housing - Using Fair Housing Ting and Complaint Data to Improve your Business Processes (Portland, OR) March 19, 2013 • 9:00 AM - 1:00 PM ELEVATE: Fair Housing for Leasing Agents - Hillsboro, OR 11:30 AM - 1:30 PM - Seminar: Energy and Water

Portland, OR March 20, 2013 • 8:00 AM - 9:00 AM Webinar: Saving with Appliances 12:00 PM - 1:00 PM Webinar: Saving with Appliances March 21, 2013 • 8:00 AM - 12:00 PM ELEVATE: Mold Awareness Portland, OR 11:30 AM - 1:30 PM - Seminar: Irrigation Trends & Technologies 9:00 AM - 1:00 PM - SWV Education: Landlord / Tenant Law Part 2 ONLY - Eugene, OR visit www.multifamilynw.org for more dates

March 22, 2013 • 1:00 PM - 4:00 PM ELEVATE: LARRC - Portland, OR March 25, 2013 • 9:00 AM - 1:00 PM ELEVATE: Fair Housing for Leasing Agents - N. Portland March 27, 2013 • 8:00 AM - 12:00 PM ELEVATE: HVAC - Portland, OR 11:30 AM - 1:30 PM - PDX Monthly Luncheon: Investment Strategies and Energy Benchmarking March 28, 2013 • 9:00 AM - 1:00 PM ELEVATE: Managing the Bottom Line Portland, OR

posure to industry issues and trends, and is – above all – Fun! Who doesn’t feel good after donating their time? Your association has made some large changes recently. And while these changes are important to the long term strength and viability of Multifamily NW, you are what can truly make this organization the strongest. For volunteer opportunities, please contact Kristen Davies at 503-213-1281.

Advertise in the Landlord Times Metro Circulated to over 20,000 Apartment owners, On-site, and Maintenance personnel monthly. Call 503-221-1260 for more information.

The Landlord Times - Metro • March 2013

M111XX Maintenance Doorhanger

About the Form: This is a very useful form to be used in conjunction with the 24-hour Notice of Inspection/Maintenance. The Maintenance Doorhanger is a courtesy form conveying either that maintenance is currently working in the dwelling or that Maintenance had or had not entered and space to explain details and work performed.

c A.M.

c P.M.

UNIT #

MAINTENANCE

IN YOUR UNIT NOW

TIME

c SOMEONE HAS BEEN IN YOUR UNIT REASON: c MAINTENANCE______________________________________ ___________________________________________________________________

c EMERGENCY_________________________________________

DEPARTMENT IS WORKING

DATE

___________________________________________________________________

WHO ENTERED___________________________________________________________ ____________________________________________________________________________________

ACTION TAKEN____________________________________________________________ ____________________________________________________________________________________

____________________________________________________________________________________

FUTURE ACTION REQUIRED_______________________________________ ____________________________________________________________________________________

____________________________________________________________________________________

c WE COULD NOT ENTER BECAUSE: c

The Landlord Times - Metro • March 2013

ENTRY REFUSED

UNRESTRAINED PET(S)

RESIDENT REQUESTED TO BE PRESENT BUT DID NOT ANSWER THE DOOR

OTHER__________________________________________________________

DZ &

What Were You Thinking Moments!

DANA BROWN AND ZACH HOWELL

Hello property management teams in the best industry ever! We’ve seen a lot in this industry, does this story sound familiar? Suzy Leasing – Last week I walked a move-out that skipped out on rent. The apartment was a disaster to say the least, I had fleas jumping on me and stepping over garbage. I got out of the apartment and instructed the maintenance team to toss everything. D – Suzy, I hope that you filled out an abandoned property notice to protect you from the resident coming back to claim that there was something of importance in the apartment. Suzy Leasing – We’ll it just so happens that the resident did come back and said that they had left a family heirloom in the apartment worth $25,000 and they wanted it back. D – Suzy, This is a “WHAT WERE YOU THINKING” moment! An abandoned property notice is about a $1.50 compared to a possible lawsuit for the $25,000 heirloom.

By Dana Brown and Zach Howell Suzy Leasing – Could the tenant file a lawsuit? D - Well, that depends on the attorney and judge, however, you will be going to court without an abandoned notice form and telling the judge that all of the contents in the apartment were junk and you tossed it. Suzy, one persons junk is another’s treasure. Even if you feel that the contents of the apartment are under $1,000, do yourself a favor, protect yourself and fill out the abandoned property notice. Renters are savvy and by not properly filling out the abandoned property notice form, the tenant can come back and claim damages on an item they say was in the apartment. Once the form is filled out and you have waited the appropriate amount of days and depending on delivery method, then it is time to give a shout out to maintenance. Z – As a maintenance tech, my first question would be what is supposed to be kept (as valuable) and what can be tossed. This can be tricky determining what is garbage and what is valuable. As D mentioned above, one person’s trash is another person's treasure. My basic rule of thumb is to start with what is

on the floor. Likely, if it’s on the floor and covered in paper and garbage, it’s not valuable to the resident. If it is hanging on the wall or on a shelf or in a dresser then it probably means something to the former resident, and should be stored temporarily until the abandoned property process has reached its statute of limitation. Next, the question is how do I get this unit ready to work on for turnover. As mentioned above. get the floors generally cleaned up -- usually with trash bags, rubber gloves, and a scoop shovel. If you find something in the garbage that may be valuable, stick it on the shelf to be addressed later. Next I would take many pictures of the remaining items left just for documentation. In the case of a skip or a hoarder, I would hire a vendor to do the pack out and moving of the remaining items. This not only frees up the maintenance staff, it also passes some liability of items being damaged or missing to a neutral party. If you have a storage space on site then have the vendor move the items into the storage area. I recommend not co-mingling the belongings of different residents, so only store one unit per storage area. If you don’t have a storage area then

you will have to find a local storage facility, and the vendor will have to load the items and deliver them there. All of these costs can be charged to the resident and taken out of the security deposit. Once the unit is ready for turnover work, and we have all valuable items stored and ready for pick up by resident, we simply wait. Lets be honest, most folks who skip will not be coming back for their items. That said, you never know when they may be setting us up for a lawsuit, so follow the same procedure with all residents. That’s why they call it “best practice”. If we ever do find ourselves in front of a judge we have a set process, pictures, invoices, third party vendors, the former residents junk, and a solid case. Dana Brown and Zach Howell have been working and training Managers and Maintenance staff in the property management industry for 20 + years. They are excited to give back and share the crazy stories that can only happen in our industry. We would love it if you would share your stories and “WHAT WERE YOU THINKING” moments with us as well as questions that you need answers to. Dana can be reached at: dana@multifamilynw.org. Zach can be reached at: zach@aminstitute.net.

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Portland

...continued from front page

Washington counties) for sales:

2007 2008 2009 2010 2011 2012

Total Sales

$/Unit Sales Count

$1001M $782M $330M $503M $893M $882M

$75,781 $79,915 $77,630 $81,089 $83,867 $89,101

258 175 90 106 161 199

And a brief summary: 2007 – Cheap money looking for a welcome home in apartments drove a relative frenzy of buying the highwater market for transactions. 2008/2009 – The reality of a slowing economy and tighter banks hits transactions. 2010/2011 – A slow pick-up in activity driven by low interest rates and large (>100 unit) sales of complexes. 2012 – Finally smaller investors begin to make purchases of apartments and benefit from interest rates in the 3-4% range. As an owner, when you bought your apartments you had at least a rudimentary idea of an exit strategy and the eventual sale of your complex. This leads to the next question of is now the time to sell or keep. A large part of that decision depends on the markets, which like the weather, you can observe, but usually don’t have too much control over. So what is driving demand and make some properties more interest-

ing than others? Well by category: Location – As always a close-in location can add >50% in value per unit. In Portland that means close-in NW Portland and East Portland from 39th to the Willamette. Physical Condition – Buyers in most instances are still picky. If you have a property that needs repair, you can count on an inspection and then a price adjustment accordingly. It’s in your best interest to fix problems now before they become expensive later – This is true whether you sell or hold. Operating Income – Two factors affect this, income and expenses. Gross Income is mainly driven by rents and bill-backs (if installed.) If you haven’t done a rent survey and you are full with demand, you are not charging enough. Utility billback programs are gaining more traction in lieu of rent increases, but the main focus of these should be to decrease utility usage if possible instead of just generating extra income. Expenses you have more control over. Utilities are in a slow inexorable rise and will outpace gains in rents within the next year or two. Anything you can do to increase operating efficiencies helps you. It’s a new year and new operating environment. Now is the time to take a critical look at your properties to make sure they are running efficiently and if you can make improvements. Remember – It took only two

years (2007 to 2009) for the apartment market to go from boom to bust – Don’t get caught out. About the Author Clifford A. Hockley is President of Bluestone & Hockley Real Estate Services, greater Portland’s full service real estate brokerage and property management company. Founded in 1972, Bluestone & Hockley’s staff totals nearly 110 employees, including 20 licensed brokers. The company’s property management division serves commercial buildings, apartments, condominium associations and houses in the Portland / Vancouver metro area, while the brokerage division facilitates both leasing and sales of investment properties throughout Oregon and Washington. Cliff earned a degree in Political Science from Claremont McKenna College and

holds an MBA from Willamette University. He is a Certified Property Manager and has achieved his Certified Commercial Investment Member designation (CCIM). Bluestone & Hockley Real Estate Services is an Accredited Management Organization (AMO) by the Institute of Real Estate Management (IREM). Cliff is a member of the Institute of Real Estate Management and was named Certified Property Manager of the year in 2001 and 2003. Cliff is a frequent contributor to industry newsletters. Bluestone & Hockley offers customized brokerage, property and asset management, as well as maintenance services to property owners and investors throughout the Portland/Vancouver metro area. The company’s full-service approach benefits busy property owners and investors, who know they can count on Bluestone & Hockley for high quality real estate services start to finish.

Rental Housing Association of Greater Portland 10520 NE Weidler Portland, OR 97220 Phone: 503-254-4723 Fax: 503-254-4821 The Landlord Times - Metro • March 2013

RENTAL HOUSING ASSOCIATION OF GREATER PORTLAND

President • Elizabeth Carpenter Past President • Phil Owen Vice President • Robin Lashbaugh Secretary • Lynne Whitney Treasurer • Jon Moon Office Manager • Alita Dougherty Member Services • Cari Pierce Bookkeeper • Pam Van Loon

10520 NE Weidler Portland, OR 97220 (503) 254-4723 • fax (503) 254-4821 info@rhagp.org http://www.rhagp.org

What an exciting time to be President of the RHAGP. We are continually growing in Membership, educational classes, and dinner meetings which focus on both education and networking. RHAGP is committed to educating new landlords and property managers, as well as enhancing education for the seasoned landlords and property managers. I would like to take a moment to mention our community of vendors. Some are dual members, meaning vendors as well as property owners themselves. Others are vendors who support

President' s Message

RHAGP members with the services they can offer. We are currently hosting a happy hour to discuss what we have to offer and ways we can enhance their membership with RHAGP. It is nice to know that I can always go to the monthly update to find a vendor for most any service or rental related product needed. RHAGP is committed to enhancing the reputation of landlords and property managers in our local and state communities. We are listening to your concerns and working to help solve the recent misconceptions concerning the

rental housing industry and fair housing. The growth the RHAGP has experienced over the past couple of years has allowed us to research hiring a Professional Public Relations Company. We have interviewed and made a decision on a company with exciting new visions. The announcement will be made very soon, so keep watch on our website and the Update. I would like to thank our office staff for all the work and effort they give daily. The RHAGP is a very busy office and each staff member is dedicated to our goals. There is always someone to answer your questions, or to refer you

ELIZABETH CARPENTER RHAGP President

to one of our mentors or vendors, as needed. I am excited to say that with our growth, we’ve expanded our team by an additional office staff position. This is a great time to join us on the Board of Directors, or one of many committees. We are a non-profit organization: All of our board and committee members are volunteers. All members are welcome to attend a board meeting or join a committee of their choice. We look forward to new ideas to assist us in moving our organization forward. ~Elizabeth Carpenter, President

March 2013 MARCH 12 - ONLINE TENANT SCREENING CLASS–24 HR ONLINE TENANT SCREENING RHAGP CONFERENCE ROOM – MEMBERS ONLY - 11:00 AM MARCH 20 - DINNER MEETING – RED LION, CONVENTION CENTER SUBJECT: MAINTENANCE PANEL MARCH 21 - BROWN BAG LUNCH – FACEBOOK RHAGP CONFERENCE ROOM – 11:30 AM TO 1:00 PM – FREE MARCH 21 - COMMERCIAL LENDING CLASS – 6:30 PM PRESENTER: TREVOR CALTON,

COMMERICAL LENDING GROUP, INC. RHAGP OFFICE MARCH 26 - INSPECTIONS CLASS – 6:30 PM PRESENTER: TROY RAPPOLD PHOENIX INN, LAKE OSWEGO MARCH 28 - NEW MEMBER/MENTOR SESSION 6:00 TO 8:00 PM RHAGP CONFERENCE ROOM – NO CHARGE CALL RHAGP FOR MORE INFORMATION AND TO REGISTER FOR EVENTS 503 254-4723 OR WWW.RHAGP.ORG/CALENDAR-EVENT

CALL RHAGP FOR MORE INFORMATION AND TO REGISTER FOR EVENTS 503 254-4723 OR WWW.RHAGP.ORG/CALENDAR-EVENT

The Landlord Times - Metro • March 2013

Dryer Vents: Inspection and Cleaning Article submitted by Portland Chimney & Masonry, Inc. The vents of dryers serve the same purpose as the chimney of a fireplace: a way for exhaust to be allowed to get out of the building. Usually these vents are vented through the roof or out the side of your buildings. Either way, there must be a clear passage for the exhaust to get out. Structural: Under no circumstances should these vents be allowed to vent anywhere inside the building, such as an attic or the like. This is simply allowing the exhaust and flammable lint to be vented into an enclosed, often unattended area. This is a fire waiting to happen.

Cleaning: The lint that is built up in these vents is highly flammable and must be cleaned out on a regular basis, as should the chimneys for fireplaces. If this lint were to catch on fire, it could cause severe damage to your property. According to the USFA (U.S. Fire Administration) “An estimated 2,900 clothes dryer fires in residential buildings are reported to U.S. fire departments each year and cause an estimated 5 deaths, 100 injuries, and $35 million in property loss. “Clothes dryer fire incidence in residential buildings was higher in the fall and winter months, peaking in January at 11 percent.”*

Clogs: Plus, the more these vents clog, the more time is needed to dry the clothes in the dryers. This can waste a great deal of money on electricity and is also why these vents should be cleaned out on a regular basis. Extremely clogged vents are harder to clean and may require extensive measures to gain access to the clog, which can be costly. Inspection: It is vital as the first step of servicing the dryer vents to inspect the air flow. If there is no air flow or low air flow it is an indicator of: Damaged dryer Clog in vent system Pinched transition (accordion style

vent that connects the dryer to the rigid venting in the wall). Dyer not connected Damaged dryer. A Certified Dryer Vent Technician should inspect the air flow to determine the air flow, as noted above, as part of the annual maintenance of the dryer vents. So protect your property, protect your tenants. Ensure your dryer vents are properly vented and cleaned for maximum safety and efficiency. You can always call a Chimney Professional to inspect the venting and to clean the vents when needed. Portland Chimney & Masonry Inc. Reference: *www.usfa.fema.gov/ media/press/2012releases/080712.shtm Clothes Dryer Fires in Residential buildings (2008-2010) is part of the Topical Fire Report Series. Clothes Dryer Fires in Homes/ 8/7/12 Press Release

RHA

Rental Housing Association of Greater Portland

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Unlimited use of RHAGP online forms Premium Membership Pricing: One time Set Up Fee $35.00 Per Unit $7.00 per unit a year (minimum $30) Contact the RHAGP office for Membership details: 10520 NE Weidler, Portland, OR 97220 P: 503-254-4723 F: 503-254-4821

The Landlord Times - Metro • March 2013

veryone in the property management business knows certain times of the month are exceptionally busy. Even managers and leasing people who are experts at scheduling will occasionally get “double booked” or swamped with “drop in” visitors. Being able to handle more than one thing at a time and to do so graciously, is just part of the job description in this industry. Here is a question that came up at a leasing seminar:

Advertise in the Landlord Times - Valley Circulated to over 5,000 Apartment owners, Onsite, and Maintenance personnel monthly. Call 503-221-1260 for more information.

Q: When I am really busy at the room of a hospital. Stay calm, confi- with two or more parties, you must

end of the month I occasionally have two or three people show up at the same time to see an apartment. If no one called ahead to make an appointment, is it okay to give them all a group tour?

A: This is a dilemma that every-

one will eventually face if they are in the business of renting apartments. However, keep in mind that it’s a positive thing when people are “flocking in” to see your apartments. It means your telephone skills, advertising and/or curb appeal are all working to draw prospective renters into your community. On the other hand, assisting more than one person at a time presents a special challenge, as no two people have the same needs. Also, there will be times when your prospects are moving for reasons they wish to keep private. These and other factors like “who arrived first” and “who needs to move the soonest,” must be taken into account before deciding if a group tour is in order. I would encourage you to imagine that your busy office is the emergency

dent and in control as you do “triage” to assess the basic needs of your prospects and establish priority. Remember: Not everyone is in a “life threatening” situation, and some people can wait. Hold onto your sense of humor as you explain that you want to assist everyone, but there is only one of you and three of them so you will need their help. Ask each party to fill out a guest card with their contact information, along with the size apartment they need and desired move date. Collect the cards and quickly determine which prospect(s) can and cannot wait. For example, if one of your visitors does not need an apartment for two months, then you can encourage that person to join in on a group tour or make an appointment to come back at a later date. If another prospect needs an apartment size that you do not have available, you can phone a sister community and then direct that individual to one of your colleagues who can offer immediate assistance. If you do find yourself on a tour

be courteous and give each person or group “equal time,” even if one seems more interested or more desirable as a prospective resident. Think of yourself as the “host” of a party: Your goal is to make sure each one of your guests feels welcome and special so they will want to come back; or in this case rent. Oh, and one last thing: Remember to introduce your “guests” to each other. - This shows that you have good manners! If you have a question or concern that you would like to see addressed next month or if you would like to inquire about leasing training, please ASK THE SECRET SHOPPER by making contact via e-mail or fax. Your questions, comments and suggestions are ALWAYS welcome! ASK THE SECRET SHOPPER Provided by: SHOPTALK SERVICE EVALUATIONS Phone: 425-424-8870 E-mail: joyce@shoptalkservice.com Web site: www.shoptalkservice.com Copyright © Shoptalk Service Evaluations

See You at the 2013 Maintenance Fair! Stop by and chat with the City of Portland’s Multifamily Waste Reduction staff at MMHA’s 10th Annual Maintenance Fair on March 14. We’ll be at Metro’s Recycle at Home booth to answer questions about: Recycling do’s and don’ts Reducing waste with reuse Recycling at move-out Other steps to keep your properties green and sustainable MMHA’s 10th Annual Maintenance Fair 777 NE Martin Luther King Blvd., Hall E Portland, Oregon 97232 Thursday, March 14, 2012 8 a.m. – 5 p.m.

Multifamily Resource Line: 503-823-7224 Online: www.portlandoregon.gov/bps/multifamily Email: multifamily@portlandoregon.gov 8 #

Metro Apartment Manager 2008 The Landlord Times - Metro• •October March 2013

Oregon's ...continued from front page the risk of default increased in the fourth quarter 2012 compared to the third quarter of 2012 when the index value was 106. The increased risk from the third quarter to the fourth quarter of 2012 reflects a riskier applicant pool that is typical in seasonally slower periods of applicant traffic. For additional regional data and renter trends, visit http://www. corelogic.com/about-us/news/ corelogic-releases-q4-2012-renter-

applicant-risk-index-report.aspx. Here is how Portland-VancouverBeaverton, OR-WA performed in the fourth quarter compared to last year: •vPortland-Vancouver-Beaverton, OR-WA: 4Q12 RAR Index = 111 •vPortland-Vancouver-Beaverton, OR-WA: 4Q11 RAR Index = 110 The SafeRent Renter Applicant Risk (RAR) Index Report is published quarterly by CoreLogic. The

RAR Index is calculated exclusively from applicant-traffic credit quality scores from the CoreLogic SafeRent statistical lease screening model, Registry ScorePLUS® and is based on an analysis of 39,000 properties representing nearly 6 million apartment homes and single-family rentals. The index provides a benchmark trend of national and regional traffic credit quality scores. Data is also available at the prop-

erty and sub-market level with our analytics tools. For additional information or the full press release, visit corelogic.com. CORELOGIC, the stylized CoreLogic logo, SAFERENT and REGISTRY SCOREPLUS are registered trademarks owned by CoreLogic, Inc. and/or its subsidiaries. No trademark of CoreLogic shall be used without the express written consent of CoreLogic.

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Serving the Portland/Vancouver Multifamily Housing Industry More than 21,000 Distributed Monthly www. TheLandlordTimes.com The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. Metro Apartment Manager is produced monthly and is published by Professional Publishing Inc. An Oregon Corporation. PO Box 30327 Portland, OR 97294-3327. (503) 221-1260 • (800) 398-6751 Copyright 2013. All rights reserved.

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INSTITUTE OF REAL ESTATE MANAGEMENT

President • Christina DuCote’, CPM, RPA President Elect • Cammie Allie, CPM, ARM Vice President-Member Services • Kimberly Fuhrer, CPM Vice President-Communications • Jocelyn Burmester, CPMC Vice President Education • Kathi Pearce, CPM Vice President-Finance • Stephanie MacPherson, CPMC IREM Chapter #29 11575 SW Pacific Hwy Suite 210 Tigard, OR 97223 (503) 228-0002 (503) 406-2003 fax

Become an IREM Member There’s an IREM membership for everyone. Associate Membership: For Instant Membership: Become an Associate Member today for instant access to the benefits that can help you find a new job, a better job, get that promotion, or earn that raise.

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CERTIFIED PROPERTY MANAGER (CPM®): For Asset and Property Managers: If you manage or oversee a team who manages large portfolios of multi-family, office, retail or industrial properties, the CERTIFIED PROPERTY MANAGER (CPM) designation and membership is your path. Begin the process of earning your CPM by applying online for CPM Candidate membership.

ACCREDITED MANAGEMENT ORGANIZATION (AMO®): For Real Estate Firms: If your firm wants global recognition and increased marketability, and you have a CPM in an executive position supervising your real estate management activities, make the leap from great to elite by earning the ACCREDITED MANAGEMENT ORGANIZATION (AMO®) accreditation.

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management or related subjects and want to provide your students with the most comprehensive learning experience available, Academic Membership is perfect for you. Oregon-Columbia River Chapter No. 29 901 NE Glisan, Portland, OR 97232 503-228-0002 www.iremoregon.org www.irem.org. 2013 Officers & Executive Council: President, Christina DuCoté, CPM®, RPA. President-Elect, Cammie Allie, ARM®, CPM®. Vice President-Member Services, Kimberly Fuhrer, CPM® Vice President-Communications, Jocelyn Burmester, CPMC®. Vice President-Education, Kathi Pearce, CPM®. Vice President-Finance, Stephanie MacPherson, CPMC®. ARM Chair, Tammy Mills, ARM®. 1st Member at Large, Kathi Pearce, CPM®. 2nd Member at Large, Chad Rheingold, CPM®. 3rd Member at Large, Julie L. Muir, CPM®

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6 Questions ...continued from front page try. Landlords should approach managing their rentals just like any other business. Do your research, attend workshops, join landlord associations, etc. The opportunities are out there if landlords are willing to make the time and spend a little money. It’s my opinion that you can’t afford not to. TLT: Who was the most influential person/mentor in the early part of your career? What did you learn from them? KPH: The most influential person in the early part of my career was actually a tenant. We’ll call her Nikki. Nikki was a tenant who came to our company just like all others, and it wasn’t until I moved her into the simple 1 bedroom downtown apartment was I even influenced by her. We met at the unit to complete the rental agreement. After collecting the prorated rent, confirming the transfer of utilities, and completing the inspection report, it was time I hand over the keys. This simple gesture immediately sent Nikki into what I could equate to an emotional breakdown; she threw her arms around me for a hug, bawled her eyes out with joy, and we sat for the next 20 minutes talking about her rough life history. She was expressing to me the sincere thanks and appreciation she felt towards me for giving her a

chance at housing when no one else had. This would be her first apartment since residing at a shelter for battered women. This brief, yet influential, experience with Nikki early on in my career showed me that property management isn’t about just filling and maintaining rental units. My job from that point forward became providing quality housing to real people who want to be heard, respected, and given a chance. Since Nikki, I’ve had many opportunities to fulfill this same dream for others and I am thankful that she changed the way I approach my “job”.

During turnover for example, items such as confirming move out dates & rent amounts with tenants, advertising upcoming vacancy, notifying your client of the vacancy, coordinating cleaning, painting, and carpet cleaning, all while continuing to show the rental to prospects, answer ad calls, and processing applications…whew! Managing time, coordinating the order of events and some “hand-holding” requires managers to be thorough, detailed, and forward thinking because time is money.

TLT: Generally speaking, what 2 or 3 pieces of advice would you give to a room full of property managers? KPH: First, and most importantly, using the proper forms. The rental forms you use should be state specific, written by a lawyer, and easy to complete. Rental forms should have minimal blanks or areas to be completed by the landlord so that the risk of error is far less than if a landlord either creates their own forms or uses a template from the internet. Second to forms is the importance of Continued on page 18

TLT: We’re often reminded about the importance of fundamentals in the things we do. What do you consider the fundamentals for success in this business to be? Why are they so important? KPH: Honesty, integrity, attention to detail, forward thinking, and respect just a few of the fundamentals that I think are key to being a successful property manager. As a property manager, not only do you most likely have a boss to answer to, but you also have to answer to your clients, and to your tenants. All parties involved must be treated with respect and honesty. To me, this is a given. Attention to detail and forward thinking go hand-in-hand.

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ASK THE ENERGY EXPERT JOHN KARASAKI, PGE Energy Expert

Reduce Water and Energy Costs Now

Water, sewer and energy costs take a bite out of my operating income. What steps can I take to trim these costs?

trusted contractors. Request a free energy consultation at PortlandGeneral.com/EnergyExpert or by calling 800-822-1077.

A: There are proven strategies for saving energy and water both inside and outside your properties – strategies than can substantially trim your bottom line. Portland General Electric has teamed up with Multifamily NW, Energy Trust of Oregon and the Regional Water Providers Consortium to offer multifamily property managers and owners free seminars and webinars on these topics throughout March. (See sidebar for class topics and details.)

Take advantage of other free offers Energy Trust will come to your property and directly install free water-saving showerheads and faucet aerators as well as energy-saving compact fluorescent light bulbs, or CFLs, in your apartments. Learn more at EnergyTrust.org/Multifamily or call Energy Trust at 877-5102130.

Here are some other ways to get started on saving energy and water. PGE offers a free energy consultation Take the guesswork out of where to begin by turning to the PGE Energy Experts. PGE offers a free energy consultation of your property that will help you identify energy-saving opportunities and prioritize your efforts based on your budget and goals. We’ll also connect you with Energy Trust of Oregon cash incentives and

Upgrade common-area lighting If your common-area lighting uses incandescent bulbs, incandescent or halogen reflector lamps, or T12* linear fluorescent lamps, you can save a lot with an upgrade. And you won’t necessarily need new fixtures. Upgrading T12 fluorescent lamps to high-performance T8 fluorescent lamps with electronic ballasts can reduce lighting energy use by 30 to 50 percent per lighting project. You can replace incandescent lighting with new ENERGY STAR® qualified

LED (light emitting diode) technology or with CFLs. Compared to incandescent bulbs, these technologies can cut lighting energy use by up to 75 percent or more per fixture while maintaining proper light levels. Compared to incandescents, CFLs can last up to 10 times longer, and LEDs up to 25 times longer, reducing maintenance hassles and costs. *If you’re unsure whether you have T12 lighting, measure the diameter of the fluorescent tube. If it’s 1.5 inches in diameter, it’s T12 technology. Watch our short video on how to tell the difference at PortlandGeneral.com/T8. Save big with new exit signs New ENERGY STAR qualified exit signs are available that use LED, cold cathode or electroluminescent (glow-in-the-dark) technologies. One exit sign alone can save up to $25 annually on electricity costs, compared to an incandescent exit sign. An investment in new exit signs usually pays for itself in one to three years with available Energy Trust cash incentives.

High-efficiency clothes washers offer triple savings Replacing your common area washers with high-efficiency, frontloading commercial washers cuts energy costs by up to 50 percent and slashes water use by about 30 percent. Because each washer can save more than 10,000 gallons of water annually, you can save substantially on both water and sewer costs. Energy Trust offers cash incentives on qualifying installations. If you have questions you’d like to have answered in future “Ask the Energy Expert” columns, please e-mail Sarah.Pagliasotti@pgn.com. Free classes on saving energy and water in multifamily properties March is Energy and Water Savings Month, and we’re offering free seminars and webinars on related topics – there’s still time to register for one event or the remainder of the series at PGE’s EnergyEducationCenter.com.

Continued on page 13

The Landlord Times - Metro • March 2013

Reduce

...continued from page 12

One-hour online webinars at 8 a.m. or 12 p.m. • Saving with Appliances. Wednesday, March 20 Luncheon seminars from 11:30 a.m. to 1:30 p.m. • Energy and Water Savings. Tuesday, March 19, Tigard • Irrigation Trends and Technologies. Thursday, March 21, Tigard

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New Updates on Carbon Monoxide Alarm Requirements in Washington State

Section R315 Carbon monoxide alarms. WAC 51-51-0315 (Effective Until July 1, 2013.)

quirements of this section. 2. Installation, alteration or repairs of noncombustion plumbing or mechanical systems are exempt from the requirements of this section.

R315.1 Carbon Monoxide Alarms. For new construction, an approved carbon monoxide alarm shall be installed outside of each separate sleeping area in the immediate vicinity of the bedrooms in dwelling units and on each level of the dwelling and in accordance with the manufacturer's recommendations. R315.2 Existing Dwellings. Existing dwellings shall be equipped with carbon monoxide alarms when alterations, repairs or additions requiring a permit occur, or when one or more sleeping rooms are added or created.

R315.3 Alarm Requirements. Single station carbon monoxide alarms shall be listed as complying with UL 2034 and shall be installed in accordance with this code and the manufacturer's installation instructions. (Effective July 1, 2013.) R315.1 Carbon Monoxide Alarms. For new construction, an approved carbon monoxide alarm shall be installed outside of each separate sleeping area in the immediate vicinity of the bedrooms in dwelling units and on each level of the dwelling and in accordance with the manufacturer's recommendations.

EXCEPTIONS: 1. Work involving the exterior surfaces of dwellings, such as the replacement of roofing or siding, or the addition or replacement of windows or doors, or the addition of a porch or deck, or electrical permits, are exempt from the re-

R315.2 Carbon monoxide detection systems. Carbon monoxide detection systems that include carbon monoxide detectors and audible no-

tification appliances, installed and maintained in accordance with this section for carbon monoxide alarms and NFPA 720-2012, shall be permitted. The carbon monoxide detectors shall be listed as complying with UL 2075. Where a household carbon monoxide detection system is installed, it shall become a permanent fixture of the occupancy. EXCEPTION: Where carbon monoxide alarms are installed meeting the requirements of Section R315.1, compliance with Section R315.2 is not required. R315.3 Where required in existing dwellings. Existing dwellings shall be equipped with carbon monoxide alarms in accordance with Section R315.1. An inspection will occur when alterations, repairs or additions requiring a permit occur, or when one or more sleeping rooms are added or created. EXCEPTIONS: 1. Work involving only the exterior

surfaces of dwellings, such as the replacement of roofing or siding, or the addition or replacement of windows or doors, or the addition of a porch or deck, or electrical permits, are exempt from the inspection requirements of this section. 2. Installation, alteration or repairs of nonfuel burning plumbing or mechanical systems are exempt from the inspection requirements of this section. 3.

Owner-occupied single-family residences legally occupied before July 26, 2009. RCW 19.27.530 (2) (b).

R315.4 Alarm requirements. Single station carbon monoxide alarms shall be listed as complying with UL 2034 and shall be installed in accordance with this code, NFPA 720-2012 and the manufacturer's installation instructions.

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

DESCRIPTION OF PET(S)Blinds/Drapes

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The Landlord Times - Metro • March 2013

Light Fixtures

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Racial Segregation: It’s Not History By Jo Becker, Education/Outreach Specialist, Fair Housing Council Serving Oregon and SW Washington Each April is National Fair Housing Month—a time to mark the passage of the Federal Fair Housing Act… Fair housing laws forbid discrimination based on several protected classes in any housing transaction1. Yet, as the MetroTrends blog article referenced here poignantly points out, the ensuing 45 years have not – by any stretch of the imagination – seen the eradication of illegal discrimination. Historically, the civil rights movement in this country centered on race and ethnicity, as does the article below. As distressing and tender as these issues are, there are several more protected classes, none of which have fully realized fair and equitable treatment in the housing market as a whole. Far too often we are asked, “Is discrimination really still a problem?” Our resounding answer is “YES,” as Rolf Pendall puts it, “It’s Not History.”

blog.metrotrends.org/) where it originally appeared on February 1st, 2012. MetroTrends blog is a project of the Urban Institute (http://www.urban.org/) dedicated to sharing data, commentary and interactive charts and graphics on the state of and differences among metropolitan societies and economies. The Urban Institute is a non-profit, nonpartisan policy research organization dedicated to providing evidence-based answers to a broad range of today's policy challenges.

Want to schedule an in-office fair housing training program or speaker for corporate or association functions? Visit www.FHCO.org/pdfs/classlist.pdf 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

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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

This article brought to you by the Fair Housing Council; a nonprofit serving the state of Oregon and SW Washington and reprinted with permission of the MetroTrends blog (http://

of income, sexual orientation, and domestic violence survivors. Washington law covers martial status, sexual orientation, and domestic violence survivors, and honorably discharged veterans / military status. 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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Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez Dear Maintenance Men: I have a large brick patio with a number of flower containers on the brickwork. The gardener is not careful enough when he waters and this has resulted in some calcification of the bricks. I want to clean up the patio bricks and remove the calcium buildup with a solution that will not kill the grass surrounding the patio. Thanks for your advice. Douglas Dear Douglas: There are a number of methods to getting rid of calcium build up on your bricks. Any product that will not harm the grass might not be strong enough to remove the build-up. Limeaway in a

spray bottle and a brush would be the easiest and safest to try first. If Limeaway does not work, try a solution of muriatic acid (pool acid) and water. This mixture will kill any grass it contacts, so work sparingly with a sponge or brush. Be careful as muriatic acid is strong and will etch the concrete and brickwork. Wear rubber gloves and eye protection. Mix a small amount of acid into a bucket of water, increasing the ratio of acid and water until the calcium starts to break down. Work on a small area with lots of rinse water to dilute the cleaning solution as you go. After you remove the calcium, sealing the bricks will help keep the calcium build-up from coming back.

Dear Maintenance Men: I have a public sidewalk that runs on two sides of my property. The sidewalk has cracks and holes. Who is responsible for the sidewalk repairs and maintenance? I also have some old telephone wires attached to my building that are not in use anymore. Can I cut those down or are they the responsibility of the phone company? Stacey

and they are responsible for the maintenance of the wires. The wires leaving the junction box and going into the property belong to the property owner. If you deem these wires to be defunct and non-operational, it is your right to repair or remove them. Be aware that rewiring a property after the wires are removed will be the property ownerâ&#x20AC;&#x2122;s responsibility and it could be expensive. In other words; be sure the wires you are cutting down will never be needed again.

Dear Stacey: Letâ&#x20AC;&#x2122;s start with the sidewalk. Every city is different and in most cases the city owns the sidewalk and obligates the property owner to be responsible for the sidewalk maintenance. Some cities will be responsible if a city tree buckles the sidewalk. It will be best to call the city your property is in and discuss the issue. Often times just a call to the city and informing them that the sidewalk has become a trip and fall hazard will be enough for them to send out a repair crew. Be aware that the property owner may be ultimately responsible for a trip and fall lawsuit; check your liability insurance. The telephone wires coming from the utility pole to your property or junction box belongs to the telephone company

Dear Maintenance Men: How do I determine if it is time to replace a roof or just have some maintenance or minor repairs done? Ed Dear Ed: Determining if a roof actually needs replacement or should be repaired is sometimes more of an art than a science. An old roof in good condition that has roof leaks may be as simple to solve as an inspection of the roof flashing system. The roof flashing is where the roof meets a different material or changes course. For example roof flashing is found around the chimney, in valleys, where the roof transitions to vertical a wall or around vent pipes. Any roof transition Continued on page 17

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Maintenance ...continued from page 16 area is a potential roof leak. Keeping the roof flashings in good order is the first line of defense. However, should your roof be experiencing leaks in several different areas, missing granules (bald spots) and pooling; might be an indication of a roof past its prime and ready for replacement. In the case of a shingle roof, the tell tale signs are more obvious. For example a shingle roof may exhibit curling edges, loss of granules and material brittleness. This roof may be beyond repairs and should be replaced. Tile roofs may present different issues as they may look great on the outside, but have hidden damage under the tiles, such as a rotted felt membrane or disintegrating roofing paper. These are much more difficult to solve and often times the repairs are more expensive than replacement. When requesting a bid from a roofing contractor, always ask for a cost to repair the existing roof and a cost to replace the roof. When having multiple bids, always use the same scope of work for each roofer.

A deviation in scope will make it harder to determine the correct course of action. QUESTIONS? QUESTIONS? QUESTIONS? We need more Maintenance Questions!!! To see your maintenance question in the “Dear Maintenance Men:” column, please send submission to: Questions@ BuffaloMaintenance.com. Please call: Buffalo Maintenance, Inc for maintenance work or consultation. JLE Property Management, Inc for management service or consultation Frankie Alvarez at 714 956-8371, Jerry L’Ecuyer at 714 778-0480, CA contractor lic: #797645, EPA. Real Estate lic. #: 01216720. Certified Renovation Company.Websites: www.BuffaloMainte nance.com & www.ContactJLE.com

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6 Questions ...continued from page 11 ment and addendums to tenant after completion. We should summarize phone conversations in writing to tenants to help ensure clear expectations. Eyes should be on the property constantly through the help of neighbors, regular interior and exterior inspections by management, and maintenance personnel should be of the understanding that while they’re at the property to make minor repairs, be observant of what they see, smell, hear, etc. The worst thing a landlord can do is to hand over possession to a unit and then never communicate with the tenants until it’s time for them to vacate. Be present and communicate your ideas, intentions, and

tenant application screening. I cannot think of an easier, more inexpensive way to potentially steer clear of a major disaster. Invest a small amount of time, make the phone calls and check for any discrepancies within the information the applicant provides. Similar to educating oneself in the business of managing rentals, you cannot afford not to thoroughly screen. Lastly, I find the job easiest when all sides (management, tenants, and client) are in constant communication with one another. Just as landlords have to know the laws, I’m all for tenants knowing what their rights and responsibilities are too. Landlords should send copies of the rental agree-

expectations quickly yet thoroughly. TLT: How has the use of technology changed our industry? KPH: I remember vividly the days when a call to my classifieds rep at the local paper would take over an hour on the telephone to update all of the vacancy ads for that upcoming weekend’s distribution. Besides the huge amount of time involved in newspaper advertisement, the cost that I had to forward on to my clients was outrageous. Luckily, new technologies have been introduced and landlords now have several media’s in which they can advertise their vacant units for free with just a few clicks of a mouse. Pinterest, Facebook, and Craigslist are just a few of the free social media sites that I utilize in my business. These popular sites are excellent ways to promote your prop-

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