On-Site Rental Housing Journal - January 2015 by Professional Publishing, Inc

Rental Housing Journal On-Site

January 2015 - Vol. 9 Issue 01

3. Commercial Property Winterization

19. The Secret Shopper

5. U.S. Investors Favor Renting Over Flipping

20. Buying Twice as Affordable as Renting

6. Five Tips to Full Occupancy

21. Property Management Reference Checks… Are They Really Necessary?

10. Top Pet Friendly Zip Codes

22. Multifamily Green Light

13. Innovators Beware: Dangerous Intersection Ahead

24. Property Managers Face Housing Slowdown as 2015 Begins

16. WMFHA Honoring Employees

PUBLISHED 21 YEARS

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC

17,000 Papers Mailed Monthly

Puget Sound Apartment Owners, Property Managers & Maintenance Personnel

Published in association with: Washington Apartment Association, IREM & Washington Multifamily Housing Association

Five Tips Market Slows, Rents Up $100 in 14 to Full Occupancy By Tom Cain, Apartment Insights

By John Wilhoit Jr.

n multifamily property management, there is always more to do, but there are certain things that must be done. In the effort to maintain full occupancy, these five tips are in the “must be done” category. 1. Renewals! The straightest line to maintaining high occupancy in multifamily is focusing consistent attention on renewals. Ignoring this makes maintaining full occupancy near impossible. 2. Be Ready! Never show a unit to a potential tenant that is not ready to occupy. This includes “almost ready” and “gonna be ready next week” multifamily units. It’s either ready to occupy or… wait. 3. Know Thy Competitors! Know where you can compete and where you cannot. Wendy’s restaurant has tried many times to get

Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327

PRSRT STD US Postage PAID Sound Publishing Inc 98204

continued on page 6

he latest Apartment Insights survey shows rents falling $5 per month per unit and vacancy rising to 4.55%. Yet rents increased $100 or 8.24% in 2014 according to Tom Cain of Apartment Insights. The data are from his Seattle firm’s 4th quarter statistics and trends on 50+ unit properties in the King/Snohomish market.

VACANCY: 4.55% The vacancy rate for our nonrandom survey of conventional, stabilized 50+ unit properties in the King/ Snohomish market is 4.55%. This is up slightly from last quarter's 4.30%. It was 4.63% a year ago. The overall vacancy rate which includes properties in lease-up increased from 5.86% to 6.44%. King has a vacancy rate of 4.47% and Snohomish County is at 4.83%. The softening in the market took place in continued on page 4

A Huge Success!

30th ANNUAL

30Th Annual Trends 2014 Draws Over 1,600 People TRENDS is ‘THE’ Oldest and Largest Northwest Rental Housing Education Conference and Trade Show This year TRENDS celebrated it’s 30TH year of production in a VERY big-way. The conference drew over 1,600 attendees, producing a very busy ‘sold-out’ trade show, offered 40 outstanding workshops and even celebrated with cake. This year’s

TRENDS conference was the biggest in many years. TRENDS is the premier annual education conference and trade show for Northwest rental housing ownership, management and maintenance. TRENDS, also hosts the largest regional industry trade show featuring over 215 exhibitors. TRENDS is a national award-winning event. An interesting fact about TRENDS

www.re ntalhousin gjourn al.com

is it’s the longest running a continuously produced event at the Washington State Convention Center. See the TRENDS website at www. trendsnw.com This years TRENDS Education Conference featured several wellknown national and many regional speakers. As well as, several dozen highly regarded local industry praccontinued on page 7

Advertise in the Rental Housing Journal On-Site

503-221-1260

RENTAL HOUSING JOURNAL ON-SITE

We Paint Hallways, Cabanas, and Offices

Rental Housing Journal On-Site â&#x20AC;˘ January 2015

RENTAL HOUSING JOURNAL ON-SITE

Commercial Property Winterization How to Prevent Winter Emergencies the Real Deal: A Worst-Case Scenario

By Cliff Hockley President, Bluestone & Hockley Real Estate Services

t was cold, really cold. Let’s just say that it was below freezing. News reports had been reporting for hours that the roads were icy and that everyone would be better off staying home. Our property managers and

maintenance team had been preparing for days for this cold snap. Property inspections had been scheduled to make sure that all rented and vacant commercial spaces we managed would be weatherized. Nevertheless we had a few problems. First off, the ice storm downed tree branches and trees. This meant that many of our buildings lost power (and no power means no heat and a higher likelihood of frozen

pipes). At one of our smaller twostory buildings the waterlines in the attic were not insulated and broke. When the thaw came a couple of days later, water was everywhere and we had to relocate a couple of tenants for a week until we dried things out. Finally, to add insult to injury, a riser froze in the sprinkler room of one of our retail strip shopping centers. When that began to thaw out we had a huge problem with flood-

ing and no fire protection. The Fire Marshal learned about this (because an electronic monitoring alarm went off) and insisted that we post a 24-hour fire watch. Did I mention that these events occurred after we prepared all of our properties for the cold snap and went through our checklist ahead of time? continued on page 9

PROPERTY MANAGEMENT, DONE RIGHT! THE LANDLORD LAW GROUP, PLLC Our Alliances

425-353-0500 2302 Rucker Ave, Suite 9 Everett, WA 98201 425-347-0235 fax

• Licensed Real Estate Broker • Certified Home Inspector • Landlord Developer • Consulting & Counseling • Legal Services • Evictions • Contracts • Drafting & Consultations • For Sale by Owner • Lorman Speaker & Instructor • Landlord Tenant Law • Real Estate • Guardianships • Real Estate Related Probate • 1031 Exchanges

www.landlordlawgrouppllc.com

• Lobby Support • Property Management • Asset Management • Acquisitions & Rehab • Financial • Rental Reporting • Tenant & Building Management • Landscape Maintenance • General Contracting • Rent Ready & Unit Turns • Rehab & R.E.O. Services • Carpentry • Handyman • Interior & Exterior • Maintenance of all types • Licensed • Bonded

reception@landlordlawgrouppllc.com

ur Apologies to WROA, In the December 2014 Edition of On-Site, Rental Housing Journal staff erroneously included an outdated advertisement for Washington Apartment Association (now Washington Rental Owners Association). We sincerely apologize to WROA staff, members and our readers for any confusion, embarrassment or other issues this may have caused. We value WROA as an invaluable resource and organization in the industry and wish them well as they head into an exciting 2015. The following is the message that should have been included in December On-Site: Washington Rental Owners Association (WROA), formerly know as Washington Apartment Association (WAA), wants YOU to join US and here is why!

POTHOLES • DRIVEWAYS PARKING LOTS • HOA ROADS

425-232-5190

We are the oldest statewide landlord association in the state of Washington. We have added a series of full support services for the individual landlord to the already tremendous lobby team that has been fighting for landlords for 61 years! Your membership supports landlords across this state and our entire industry. This non profit organization is one of the most respected groups on Capital Hill and your membership effectively improves the influence we have. This is how you have always been heard on Capital Hill. Now this organization is also how you can get the support you need where the rubber hits the road. • Individual memberships starting at $85 per year. Less than a good dinner for two can get you support you can’t afford to be without. • Free landlord forms for members. All forms are vetted by landlord attorneys. • Superior quality credit and criminal screening available with prices starting as low as $10. • Two physical screening sites with a third site in Olympia opening January 15th • Attorney help line, free to members. • Educational dinner meeting and classes with landlord specific topics around the state. • Monthly statewide newsletter. • Networking and advertising opportunities. • Online video training coming soon. • Multiple locations across the state. To get started: Call, stop by, or join through our website! www.waapt.org WROA Office 3301 Rucker Ave, Ste A Everett, WA 98201 425-353-6929 office@scaoa.com

Licensed • Bonded • Insured

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Market Slows, Rents Up ...continued from front page King County, since the vacancy rate in Snohomish was identical to last quarter. The University District has the distinction of having both the greatest improvement of any vacancy rate and the lowest vacancy rate. Its vacancy rate is 2.75% which it shared with Burien. Ballard has the highest vacancy rate at 10.48% followed by the Bellevue East submarket at 6.45%. RENTAL INCENTIVES: $17 (1.3%) Rental incentives jumped from $8 to $17 per month. This is a significant change. It was likely caused by the combination of the slight rise in the vacancy rate together with downward pressure on rents. In the twocounty area 24.8% of the properties are offering incentives, up from 17.5% last quarter. ABSORPTION: +1,658 Units There were +1,658 units absorbed

this quarter, down from +2,013 units last quarter. The Queen Anne and North Seattle submarkets absorbed 524 of these units. RENTS: $1,313 per Unit $1.57 per Square Foot Rents fell $5 to $1,313 per unit. Even with the decrease this quarter, rents still rose $100 per unit or 8.24% over the past 12 months. Submarkets where average rents are under $1,000 per month are Burien, Des Moines, SeaTac and Tukwila. The most expensive rents are in the Downtown Seattle submarket. They average $1,995 per unit and $2.42 per square foot. NEW CONSTRUCTION There are currently 19,280 units under construction, up from 18,518 last quarter and 13,998 units a year ago. Fifty-four percent of these are in the city of Seattle, 28% on the

Eastside, 19% in South King, and 8% in Snohomish County. Together with the 8,896 units that have been completed this year, the projected total for 2014 is 9,551 units. This is shy of the record-breaking 10,056 units completed in 1989. It is nearly double the 5,233 units completed in 2013. The 161-unit Verve in Seattle's Belltown opened this quarter. It is featured in the photo and is managed by Greystar. We project the 2015 total at 12,273 units. Even with the likelihood that they won't all open by year end, 2015 will surely break the record set in 1989. We have preliminary information for the next two years. We are tracking 9,267 units that are either under way or scheduled for a 2016 completion. For 2017 the number is 3,646 units. The grand total for all of the units

in various stages of the pipeline is 52,668 units. This is up from 47,973 units last quarter and 38,941 units a year ago. OBSERVATIONS The market appears to be losing ground this quarter. The vacancy rate increased from 4.30% to 4.55%. Rents fell $5. Rental incentives doubled, and the number of properties offering incentives increased 70%. Is this the beginning of a trend or a seasonal funk? We researched fourth quarter performance over the past five years including 2014. Rents declined in each of the past four years. Vacancies were up in 2013, and in three of the five years. Yet despite this quarter's weak performance, over the past year rents have surged $100 per month or 8.24%, and the vacancy rate is down slightly. Will the market be able to rebound after a poor fourth quarter as it did in 2014? Based on our new construction projections we expect that there will be about 25% more units completed in 2015. This will present an extra challenge to the market. Nonetheless, strong employment growth is expected to continue through 2015. We expect a modest increase in the vacancy rate. Rents won't increase nearly as much as in 2014, and there will be a greater use of rental incentives. But considering how well the market performed in 2014 in light of all the new units, 2015 should be a good year. Contact: Tom Cain Apartment Insights 206-632-2220 Tom Cain of Apartment Insights Washington is a member of the nonprofit Central Puget Sound Real Estate Research Committee in charge of providing apartment rent and vacancy data. Tom has been a member of the Committee for over 25 years, and has been researching apartment market trends in the Seattle area since 1978. His company surveys the five counties in Central and South Puget Sound. This article highlights survey results that subscribers can access from an online database of all 50u+ properties. Apartment Insights also provides customized rent reports and market reports. www.apartmentinsightswa. com 206-632-2220

www. rent a l h o u si n g j o u r n a l .co m

Rental Housing Journal On-Site â&#x20AC;˘ January 2015

RENTAL HOUSING JOURNAL ON-SITE

U.S. Investors Favor Renting Over Flipping According To Auction.com Real Estate Investor Activity Report Investment Strategies Vary by Region, Vehicle and Investor Profile According to November Survey Results IRVINE, Calif., /PRNewswire/ --

uction.com, LLC, the nation's leading online real estate marketplace, today announced the findings from its November Real Estate Investor Activity Report™, a nationwide survey of real estate investors bidding on properties offered for auction during the month. This research provides insight into real estate investment trends on both a national and regional level. Survey data collected from investors bidding on property online and at live events across the country reveals that buying property

to hold and rent is currently favored over flipping nationwide, although investor intent varies considerably by vehicle (online or live event) and investor profile. Respondents who indicated that they were making a one-time purchase preferred a hold-to-rent strategy, as did – to a lesser extent – respondents identifying themselves as full-time "real estate investors." Meanwhile, flipping was favored by the majority of respondents indicating that they were working on behalf of another investor.

National Findings: Investor Intent Investor Profile Flip One-time purchase 24.4% Real Estate Investor 46.7% Working on Behalf of 60.4% Another Investor TOTAL 46.6%

Rent 72.2% 50.4% 36.8%

Undecided 3.3% 2.9% 2.8%

50.5%

2.9%

RENTAL HOUSING JOURNAL

Publisher Will Johnson • will@propubinc.com Designer Steve Olsen • steve@propubinc.com

Advertising Sales Will Johnson • will@propubinc.com Terry Hokenson • terry@propubinc.com

www.rentalhousingjournal.com

Auction.com's findings based on responses given at online auctions show that investors bidding online generally tend to hold properties to rent rather than flipping them. This data also suggests that purchasing property to rent is more prevalent in

the Midwest and South, whereas there appears to be a higher propensity for flipping among real estate investors in the Northeast. The flip vs. rent split is nearly even in the West, with a very slight preference toward renting.

November Online Investor Data: Intent of All Investors Surveyed Region Flip Rent Undecided West 49.5% 50.5% 0% Midwest 43.5% 51.8% 4.7% South 40.5% 57.1% 2.4% Northeast 54.1% 41.9% 4.1% Nationwide 43.3% 54.0% 2.7% Conversely, investors bidding at live events appear to be more likely to flip the properties they purchase, but there were very strong regional variances. November survey data collected at live events in states where Auction.com is active revealed that flipping was favored overall,

with only Georgia, Tennessee and Texas bucking the trend. Meanwhile, respondents at live events in the Western states such as California, Arizona and Nevada showed an overwhelming preference toward flipping.

November Live Event Investor Data: Intent of All Investors Surveyed State Flip Rent Undecided Arizona 66.7% 19.0% 14.3% California 65.6% 32.2% 2.2% Georgia 41.9% 54.3% 3.9% Idaho 69.2% 30.8% 0% Nevada 88.9% 11.1% 0% Tennessee 39.4% 60.6% 0% Texas 38.7% 60.0% 1.3% Washington 62.5% 37.5% 0% Nationwide 49.3% 47.6% 3.1% ...continued on page 7

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. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2014 All rights reserved.

FREE SUBSCRIPTION PROPERTY NAME NAME ADDRESS

CITY STATE ZIP EMAIL ADDRESS

PHONE

Send for your FREE subscription to Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007 • (503) 221-1260 • fax (503) 221-1545

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Is Print Advertising Dead? The Evidence Says No!

By Devan Gilbert, Staff Writer, Rental Housing Journal

umor has it in the marketing and advertising world that print advertisements are outdated and inefficient. The numbers, however, say otherwise. It’s time to squash this misinformation and get to the truth about the power of the print.

The younger generation doesn’t read print anymore: False. Many like to claim that print advertising is incapable of reaching the younger generation, but research proves differently. While social media is an effective way to target the 18-30 year old demographic, it is not the only way. National Public Radio reported a study that found a quarter of 18-24 continued on page 6

TPoint Construction LLC Commercial and Residential Drywall and Painting Remodels and New Construction Tenant Improvement Next Generation Service Free Estimates www.tpointconstruction.com

206-458-4385

Five Tips ...continued from front page in on McDonald’s breakfast revenue. They just cant do it. Know thy competitors and what concessions they are offering in the present tense. Leasing agents should know amenities of competitor properties and how/where your property can outperform. Example: older units almost always have greater square feet than newer product. Accentuate the positive! 4. Social media is a mainstay! Integration of Internet based advertising/media is a must no matter how small the multifamily market. The renter market is younger people (still). Young people are glued/stuck/fastens to their smart phones…. smart phones with connectivity to available apartment homes. 5. Two-way communication! Leasing Agents are far from order takers- they are the front line representing your asset. A potential tenant coming to your Leasing Office is looking for a place to live and insight on the lifestyle represented. A big part of leasing, then, is to dialogue and convey to potential tenants what they are buying. This is accomplished best by creating two-way communication.

Leasing Agents should be asking open-ended questions that draw information from potential tenants to better understand their needs and wants. This allows Leasing Agents to provide information on features and benefits offered by the development that meet potential customers lifestyle desires. People may look for features, but they buy benefits. The only way to know what benefits they are looking for is to ask. Multifamily Insight is dedicated to assisting current and future multifamily property owners, operators and investors in executing specific tasks that allow multifamily assets to operate at their highest level of efficiency. We discuss real world issues in multifamily management and acquisitions. This blog is intended to be informational only and does not provide legal, financial or accounting advice. Seek professional counsel. We discuss best practices in multifamily management and methods related to how to buy apartment complexes. Our focus is sharing strategies and tactics that can be implemented and measured. For more information, visit: http://www.Multifamilyinsight.com

WA Lic # TPOINCL878PB

New Year - New Budgets Call Now For Spring & Summer Scheduling!!

Access more than just the best screening information available… Our Investigative Team will take you further than any automated screening platform. We verify the accuracy of information provided by your potential resident before beginning their background check. You can count on us to be there for you… to go the extra mile… and to provide screening information that no other company can guarantee. For insight into the screening industry, rental market, and your options, visit:

www.eRentalServicesInc.com 6

Rental Housing Journal On-Site • January 2015

2014 PROFESSIONAL PUBLISHING, INC

RENTAL HOUSING JOURNAL ON-SITE

Renting Over Flipping ...continued from front page "Real estate investors appear more likely to flip a property in those regions where home values are higher," said Auction.com Executive Vice President Rick Sharga. "Higher prices can translate to a faster and potentially more significant shortterm return on investment. The hold and rent strategy seems most popular in markets where home prices are lower, allowing investors to charge a more competitive monthly rental

rate and still produce reasonable returns over an extended period of time." Flipping was also the more popular strategy among investors purchasing multiple properties per year – particularly institutional investors (those indicating that they purchase 50 or more properties per year). This was true for both online auctions and live events.

November Online Auction Investor Data: Intent By Purchase Profile Purchase Profile Flip Rent Undecided 0-1 Property/ 30.0% 65.6% 4.4% Year 2-49 Properties/ 52.8% 45.5% 1.7% Year 50+ Properties/ 60.0% 40.0% 0% Year

November Live Event Investor Data: Intent By Purchase Profile Purchase Profile Flip Rent Undecided 0-1 Property/ 41.3% 56.3% 2.5% Year 2-49 Properties/ 49.8% 48.0% 2.2% Year 50+ Properties/ 55.4% 38.6% 6.0% Year Auction.com, LLC, is the nation's leading online real estate marketplace. Founded in 2007, the company has sold over $26 billion in residential and commercial real estate assets. Auction.com has over 900 employees and headquarters in Irvine and Silicon Valley, California as well as offices in Austin and Plano, Texas, Atlanta, Denver, New York and Miami. Visit www.auc-

tion.com for more information. SOURCE Auction.com, LLC Flipping was also the more popular strategy among investors purchasing multiple properties per year – particularly institutional investors (those indicating that they purchase 50 or more properties per year). This was true for both online auctions and live events.

TRENDS ...continued from front page

titioners participated as workshop panelist. All of TRENDS ’14 classes where full and well received. Rental housing property owners; property managers; leasing agents; maintenance personnel and portfolio managers attend TRENDS.

Rental Housing Association of Puget Sound (RHA). NEXT YEAR- The 31st Annual TRENDS will be December 8, 2015 at the Washington Convention Center, Seattle. TRENDS is produced by Larry Diamond. larryd@isomedia.com

TRENDS is brought to you by: Washington Apartment Association (WAA); The Institute of Real Estate Management (IREM) and

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Print Advertising ...continued from page 8

year olds had read a newspaper within the past 24 hours. The New York Times announced that 10 percent of its hard copy subscribers are between the ages of 18 and 24. According to Mediamark Research and Intelligence, magazine readership has increased by 4.3 percent in the past five years. The Association of Business Information and Media Companies reported that 96 percent of business-to-business clients still read print publications. If businesses made the fateful decision to disregard print advertising all together, they would be disengaging from a massive list of potential clients. Multimedia is the only way to get readers to spend with my company. False. A December 2012 Valassis survey was conducted, focusing on the connection between print advertisements and the spending habits of the generations born in the 1980s and 1990s. Here is the break-down of the results.

mailed out to. Finding the appropriate audience for a company’s advertising is made easy with print resulting is less wasteful marketing spending and increased profits for a company.

Internet has helped bring us a fastpaced world. Many people turn to the Internet to accomplish something quickly and efficiently, but that is not necessarily the best place for an advertisement. Can you recall the last advertisement that popped up on your computer screen? What about the company that was advertising itself? Most likely not, and you are not alone. These ads don’t pique most people’s attention. It is not uncommon for somebody to unwind by reading a magazine or newspaper. In a relaxed environment is where information, in this case an advertisement, will be noticed.

Why should I use print ads? Large companies aren’t using them anymore. False. Nordstrom isn’t the only company not falling for the rumors. In 2011 Nike spent $113 million on advertising that did not involve the Internet. Google spent $1 million on non-internet advertising that year as well. We all know these companies have some of the most brilliant marketing teams in the world, which is New advertising techniques exactly why they are still using print are always better. Wrong again. “Out with the old, advertisements. Madison Hildebrand, a star of the Bravo show, in with the new” shouldn’t apply to “Million Dollar Listings,” has had everything. People may argue that massive success as a Realtor and is spreads with advertisements are VALLEY, ARIZONA APT. NEWS past, happens to the hunwell-knownMETRO, by most television view- flipped ers and Internet users. However, it dreds of emails consumers receive a • Over half said they would spend should not be assumed that every day titled “Cyber Monday sale” potential client uses the Internet or “Going, going, gone” or “All orders less money if they didn’t look at watches cable TV. Mr. Hildebran over $50 take $5 off!” They go directprint ads. knew this and recently advertised ly into the deleted items folder. • 91 percent said they used coupon himself in a four-page spread in Although the saying “print is dead” cutouts from print Apr, Jun, Aug, Feb, Oct, Decmagazine. If busi- has been echoing through the adverHomes and Land advertisements to save money. ness thriving people and companies tising world, research shows differare still using print advertisements ently. Penn State conducted a study, • 51 percent admitted that print that concluded that print ads stick ads inspire their spending habits. then why shouldn’t everyone else? with customers more than online • 30 percent said they refer to ads. Print is also an advertising techWhat makes print ads online websites seen in print ads nique that can stimulate multiple “work”? to obtain more information Great question. As stated before, senses. Take sample perfume ads in • 87 percent use print to choose a print is easy to target. People also restaurant. tend to pay more attention to matePrint ads make it easy to target rial they are subscribed to rather certain demographics. Instead of than a pop-up ad or an ad interruptthrowing an advertising banner on ing their music on Pandora. Websites Facebook or Twitter, you can send tend to be skimmed quickly, advermagazines, flyers or catalogs to tising on TV or on the Internet is only homes in certain areas. Nordstrom, a VALLEY, there as longMETRO, as it is paid ARIZONA to be there. APT. NEWS billion dollar company, still spends a A magazine tends to find a home on pretty penny on print advertising. a coffee table or in a dentist’s office Strategically, different versions of where it is picked up and sifted catalogs are printed and are distrib- through by dozens of people over uted according to how much a spe- several months. The Internet thesecific customer spends annually and days is full of scams and fake “news”. which departments they shop in. Print advertisements are more trustMar, Sep, Nov, customers. The Nordstrom isJan, able to targetMay, where Jul, worthy to potential 1010 East 62nd Street, Los Angeles, CA 90001-1598 and who its catalogs should be

ON-SITE-NW SEATTLE Salsbury Industries

magazines, or shopping catalogs, or sample textures in home improvement magazines and pamphlets. A potential customer is not going to be feeling, or smelling anything through the Internet. By stimulating senses, an advertisement becomes more interesting and memorable. Internet and multimedia advertising is important True. Although print advertising continues to prove itself in the marketing world, other forms of advertising are important as well. Many print ads include the company’s website to provide more information. Integrated marketing programs have been proven to be extremely successful if correctly executed and almost always involve print ads. The use of print advertising is increasing. True. The biggest myth of all is that print advertising is quickly slipping through the cracks. This couldn’t be more wrong. According to Media Radar, the medical and pharmaceutical, home furnishings, technology, and beverages categories have all published more print ads than the year before. Ralph Lauren, Chanel, Calvin Klein and Louis Viton amongst other luxury brands have dramatically increased their print ad spending since 2012.

ON-SITE

Salsbury Industries

Phone: 1-800-624-5269 • Fax: 1-800-624-5299

September

Octoberp

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

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

To advertise in ON-SITE call us at 503-221-1260 for more info. 8

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Winterization ...continued from page 3

Before the Storm For reference, I have summarized that checklist for use at your properties. Winterization Checklist • Fire sprinkler systems:

• Dry systems: check operation of air compressors/gauges and verify the system is completely drained down. Note: if a water flow fire alarm is received on a dry system and not due to an actual fire, the water flow is oftentimes caused by a compressor failure and therefore the system will need to be drained down once the compressor is repaired or replaced. • Wet sprinkler systems: check to ensure they have antifreeze in them. • Vacant tenant spaces: • Those with operable HVAC systems: set the thermometer to at least 40 degrees. • Those without operable HVAC systems: provide space heaters to maintain a temperature of at least 40 degrees. • Fire riser/valve rooms: verify that

Rental Housing Journal On-Site • January 2015

the heat is turned on to at least 40 degrees to prevent freezing pipes. • Irrigation system: verify that the landscape contractor has fully drained down the system to prevent freezing pipes. • Exterior water faucets (hose bibs): shut off the water source, drain and cover with insulated covers. • Basement crawl spaces: inspect to ensure exposed domestic water lines are insulated to prevent freezing. Close any openings exposed to the outside, consider insulation, and/or a heat source. • Canopy/soffit crawl spaces: inspect to ensure that exposed domestic water lines are insulated to prevent freezing. Close any openings exposed to the outside, consider insulation, and/or a heat source. Refer to the above regarding canopy fire sprinklers. • Snow plowing/sanding/shoveling/de-icing service: contact the landscaping and/or parking lot sweeping companies to arrange for sidewalk, parking lot and drive lane snow services. Define the scope/level of service ahead of time and arrange for auto-deployment. • Store snow shovels, a supply of granular de-icer and a spreader

onsite so that the maintenance staff is able to clear snow on the sidewalks. • Roof drains/downspouts: ensure that roof drains and downspouts are clear and in working order so that snow melt is able to appropriately drain from the roofs. • Disconnect all outside hoses: anytime outside weather is freezing all hoses on the outside of the building should be disconnected. How to Respond Once the snow and ice hits, tenants may be calling to report broken pipes, property conditions and other issues. It is important to have an office open and staff on standby to receive those calls and coordinate additional services. Verify that your snow service vendor has in fact dispatched a crew to your property. Maintenance staff needs to be prepositioned with snow blowers, chainsaws and vehicles with studded tires allowing them to travel to properties so they can provide the required service. You may want to consider having a supply of sleeve clamps or “Shark Bite” couplings on hand for repairing pipe breaks in addition to a heat gun to melt frozen pipes. If the snow is very heavy and icy crews need to be dispatched to clear

the snow from buildings with flat roofs, in particular the drains need to be cleared so the water can drain off the roof as the snow melts instead of leaking into the tenant spaces. This is important because the weight of snow and ice can stress the roofs and cause them to cave in. Additionally, you also need to keep the air handlers clear of snow. If snow blocks the air flow it stresses the compressors and then you can’t generate heat either. Preparation Preparation is the name of the game. The more you inspect, plan and prepare for catastrophe the more likely it is that you and your properties will survive them with minimal damage. Make sure your documentation is well organized with property maps, and the locations of water shut offs and roof drains are easily available for you and your staff to access. Also, make sure to have 24-hour maintenance staff, plumbers, electricians and emergency response contractors’ phone numbers in your cell phones to speed up your response. Finally, you will need easy access to your property insurance agents just in case you have a loss and need repair approvals and checks right away. continued on page 10

RENTAL HOUSING JOURNAL ON-SITE

Top Pet Friendly Zip Codes Most Pet Friendly Zip Code: 98101 Neighborhoods: Northern Downtown Median Rent: $1,850

Least Pet Friendly Zip Code: 98104 Neighborhoods: Southern Downtown Median Rent: $1, 905

from PropertyManager.com a Service of AppFolio

Winterization ...continued from page 9 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 Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

PEST PREVENTION • BRAND PROTECTION • ENVIRONMENTAL STEWARDSHIP

Do you have BED BUGS? Know for sure. Proactive Inspections – Smart Treatments – Staff Training • Heat Treatments kill bugs in a single, 1-day treatment that’s odorless, green, organic, non-toxic and canine confirmed for effectiveness. • Dog Inspections – the fastest, most reliable way to locate infestations • Preventive Treatments – keep bed bugs from spreading to adjacent rooms

Bed Bug Dogs are FAST and ACCURATE!

• Mattress and Box Spring Encasements • Staff Training Programs

Just 2-3 minutes per room inspections for complete

PEACE of MIND

Local and Nationwide Service

Seattle Tacoma 206.323.5660 • 800.421.0083 253.572.6500 • 800.782.0684 www.spraguepest.com

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Protect Your Properties. In addition to our experienced claims service, we are appointed with a number of different insurance carriers to assure that we can provide your assets with:

• Coverage options that will best fit your property’s needs • Competitive Pricing! Whether you are looking to insure a single location, portfolio or a program for an entire property management firm, let our team of specialists work for you! We welcome the opportunity to earn the privilege of working with you!

Contact: Ken Johnson, MBA, CIC • kenjohnson@allianceins.net Nathan Worden • nathanworden@allianceins.net

425.404.3845 / 888.963.3500

(toll free)

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Innovators Beware: Dangerous Intersection Ahead By: Neal Thornberry, Ph.D.

nnovation is not for the faint of heart, as Galileo learned when he said that the Earth revolved around the sun. He was scorned, threatened with death and eventually put under lifetime house arrest. Innovators are not always welcome guests even within their own organizations, and their challenges are heightened by a dangerous organizational intersection: where Complexity meets Wackiness. The more complex an organization, the more difficult it is for the innovator to figure out where to go with a good idea and how to weave it through the organization to implementation and eventually value creation.

Growing organizations cannot avoid complexity. They add processes and people, divisions and specialists. Since we can now measure almost everything, they often believe if one measurement captured in a report is good, then more are better. One company, with whom I worked, learned that its sales people were losing a month of selling each year because of the time spent filling out reports required by the finance department. This example of complexity gone awry drove the organization into Wackiness -- sacrificing revenues for reports. There are many other examples of Wackiness getting in the way of innovation – and examples of stealth innovators circumnavigating them. One of my favorites is the tale of Jim

Repp, head of Jeep design at the old Daimler Chrysler Corp. Jim knew that many Jeep lovers spent thousands of dollars upgrading their Wranglers for serious offroading. This gave him the great idea for a mass-produced Jeep with all the upgrades built in at half the cost. When he shared his idea with marketing, they said there was no market for that type of vehicle and besides, you’re an engineer, not a marketer. Undeterred, Jim and a small band of innovators I call Innovation Judo masters built a secret prototype. They took it out on the Rubicon Trail in California for off-road trials and invited the senior executives to watch. Jim’s prototype outperformed the other Wranglers and, as crowds

gathered around it, the executives saw their enthusiasm. They immediately authorized production of what is now a best-selling icon, the Jeep Wrangler Rubicon. Fortunately for Chrysler and other companies, there are a few passionate innovators like Jim who won’t let go of their idea no matter what. They’ve developed a special set of skills (I call them Innovation Judo) that allow them to bypass those blocks. They are: • Discipline • Leverage • Speed • Openings • Circling • Unbalancing

YOUR MULTI-FAMILY PLUMBING SPECIALIST

• Redirection The Jim Repp story illustrates the application of several of these principles. The discipline to plan for building a secret prototype; leverage in getting senior executives to support his idea; utilizing the opening at the Rubicon Trail; and then using the surprise (a tactic of unbalancing) of a ...continued on page 24

STOP PAYING TOO MUCH! 24 HOURS A DAY! 7 DAYS A WEEK! 365 DAYS A YEAR!

Compost Food!

It’s Not Garbage Anymore! Seattle Apartments/Condos Only

(877)380-7904 COMPLIANCE DEPOT CERTIFIED

P.O. BOX 111616 • TACOMA, WA 98411 • info@seatacstop.com • www.seatacstop.com • License #SEATT0917MU Rental Housing Journal On-Site • January 2015

New Law January 1, 2015

No food or food-soiled paper allowed in the garbage.

Need Help?

www.seattle.gov/util/ apartmentfoodwaste (206) 684-8717 (message only)

RENTAL HOUSING JOURNAL ON-SITE

Don’t roll the dice with your insurance costs...

YP enc artn Ag

p shi er

Top 20

HBT Insurance specializes in providing the best coverage for your rental properties by saving you the most on your premiums. Simply call or email today for a free, no obligation second opinion on your current coverage and start saving!

★

★★

★

2014

★

Contact Nicole Cassat at 253.929.4658 or nicole@hbtinsurance.com. Learn more at www.hbtinsurance.com

The Advantage Group, LLC

February 2015 SAVINGS! Since 1932, Rodda Paint has manufactured paints in the Northwest formulated for performance. As a management professional, be confident you are dealing with experienced paint professionals!

Open a New Rodda Charge Account and Your First Apartment is on Us! We make it easy to do business. When you open a new business Charge Account with Rodda Paint, we will supply the paint for your first apartment interior repaint for FREE!

Already Have a Rodda Account? “Buy 6, Get One FREE!” During the month of February, 2015, BUY SIX Gallons & get ONE FREE! Valid for one gallon cans & 5 gallon pails, with no limit!

Let’s do some business! Rodda Paint Sales 1(800)452-2315 We want to be your supplier. Rodda Paint – Finish Right! 14

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Own Your Own Laundry Room and Keep All Your Money! • • • •

Up to 70% for lighting, 20% for windows and 50% for insulation? Yes, please. Seattle City Light rebates cover everything from common area lighting to pool and security lighting, including LED options. Take advantage of window and insulation rebates to further reduce your electric bills, increase tenant satisfaction and safety for years to come. We’ll visit your multifamily property to identify energy inefficiency and water waste —- then help you pay for cost-saving upgrades.

Unbelievable ROI Highest Rated Washers & Dryers Low Maintenance Costs Full Parts & Service Department

800-595-0253 www.dynamicss.com

QUALITY CRAFTMANSHIP

GUARANTEED

• • • • •

Guaranteed 100% customer satisfaction! Free professional, detailed estimates! Ask About Prompt service! Winter Savings! Competitive pricing! Over 19 years of experience!

Painting

Historical Renovations

Win dows & Siding

Decks & Stairs

Ready to start saving?

Contact an Energy Advisor at (206) 684-3800 sclenergyadvisor@seattle.gov or visit seattle.gov/light/multifamily to start saving.

Call us at 253-288-0151 Toll free at 888-6601993 www.coddingtonconstruction.com Coddington Construction

Conserving Energy for a Sustainable Future cont. #CODDIC1027RH Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE • Executive Director – Jim Wiard • President – Kris Buker – Vice President – Brett Stevens • Secretary – Heidi Daniel • Treasurer – Becky Sanders • Vice President of Suppliers Council – Rob Pendleton • Immediate Past President – Gail Duke

18300 Cascade Ave. S., Suite 130 Tukwila, WA 98188 (425) 656-9077 (425) 656 9087 (fax) admin@wmfha.org

Honoring Employees

peers in each category. Finalists are determined through this process, and another round of judging occurs. In certain categories, WMFHA flies association executives from National Apartment Association affiliates across the country to our office to be a part of a judging panel, conducting interviews of finalists to determine final overall scores. Nominees are judged on their merits: their experience, their attributes, their dedication and their professionalism. They are scored against their peers in the same category, regardless of company affiliation. In this process, the stars shine and all grades are assessed to decide the overall award recipients in each category. While the judging process is competitive, it is also very rewarding, as employees exhibit the qualities that got them recognized. Although there can be only one award recipient in each award category, every nominee is a winner. The honor of being nominated by one’s company, of being recognized for one’s efforts and commended for their service, is truly the most special part of the Emerald Awards. Finalists and award recipients are

n February 12th, the apartment industry will celebrate our best and brightest employees at the 5th annual Emerald Awards gala. The Emerald Awards are the industry’s way to honor site employees and regional employees for their outstanding efforts to serve residents, owners and management companies. Companies nominate their “best of the best” in 28 different award categories such as Leasing Agent of the Year, Maintenance Supervisor of the Year, or Social Awareness. Property nominations are also available in multiple categories including New Development of the Year and Curb Appeal. Nominators identify the unique attributes of their nominated employees or properties and why they feel they rise above their peers. Nominees are allowed an opportunity to describe how they contribute to the success of their properties and their company. A rigorous judging process then takes place for all nominees. Care is given to ensure unbiased judging at multiple touch-points. A weighted grading system is used to evaluate

honored in a black tie gala celebration at the Bellevue Grand Hyatt Hotel. An elegant dinner, live band and statuesque awards await those who will receive the ultimate honor. Emcee Brad Goode from KOMO 4 Morning News will again entertain the over 900 attendees at an event reminiscent of the more famous awards show in Hollywood. The Washington Multi-Family Housing Association is grateful to coordinate the prestigious Emerald Awards, allowing management companies a venue to recognize their

talented employees. On-site employees are the unsung heroes in our industry and seeing the genuinely humble appreciation these employees have when nominated is tremendously rewarding. We hope to see everyone at the award dinner on February 12th, and for those companies who weren’t able to nominate their deserving candidates this year, nominations for the 2016 Emerald Awards will open in August, 2015.

www.re nta lh ou s in g jou r n a l.com

CONGRATULATIONS TO THE 2015 EMERALD AWARDS FINALISTS! After the initial judging process of over 350 nominations, the following have been selected as Emerald Finalists. The winners will be announced at the Emerald Awards Gala on the evening of February 12, 2015. COMMUNITY MANAGER OF THE YEAR (1-150 UNITS )

LEASING CONSULTANT OF THE YEAR (301+ UNITS)

Amanda Sommer, 206 Bell– Greystar Anissa Olberg, Cadence- Pinnacle Bonni Gruelle, Abbey Ridge- Pinnacle Jessica Fern, Rose Crest- FPI Leanna Bell, Aspen Creek- Weidner

Lauren Reel, The Nolo/The Wave - Pillar Melissa Goldberg, Bay Court at Harbour Pointe - Greystar Sasha Batura, A'Cappella Apartments - Weidner Stefanie Snatic, Resort at Forbes Creek - Greystar Stephanie Laeger, The Mill at Mill Creek - Greystar

COMMUNITY MANAGER OF THE YEAR (151-300 UNITS)

ROOKIE OF THE YEAR—OFFICE

Brenda Freelen, Lakewood Meadows - Independent Living Chad Wheelock, Solara - Simpson Dale Gentle, Plum Tree Park - Pinnacle Deena Franklin, Atrium on James - FPI Kayla Stevens, Redmond Square - Greystar Sherilyn Butler, The Outlook I & II - Greystar

COMMUNITY MANAGER OF THE YEAR (301+ UNITS) Amanda Hirtzel, Ridge & Shores Apartment Homes Weidner Andrea Hernandez, The Ridgedale - Greystar Jolene Hively, Central Park East - Greystar Kylee Beveridge, Landing at Dashpoint - Bridge Megan Vallor, The Wave/The Nolo - Pillar

COMMUNITY MANAGER OF THE YEAR (Affordable) April Owens, Balfour Place - Greystar David Bierer, Fern Ridge - Greystar Larissa Ranz, Coronado Springs Apartments - Indigo Nicholaus Biela, Borealis Apartments - Greystar Victor Chin, Victoria Park - Independent Living

ASSISTANT COMMUNITY MGR. OF THE YEAR (1-300 UNITS) Crystal Taylor, The Heights at Bear Creek - Greystar Freda Eyre, Woodcreek Apartments - Thrive Jenna Searles , Charter Club - Pinnacle Kim Gelderman, Island Park Apartment Homes - Weidner Pascal Coufal, Dexter Lake Union - Alliance

ASSISTANT COMMUNITY MGR. OF THE YEAR (301+ UNITS)

Amanda Campbell, Landing at Dashpoint - Bridge Hillary Guesnier, The Onyx - FPI Jenn Erickson, Carriages at Fairwood Downs - Pinnacle Linda Maggerise, Bay Court at Harbour Pointe - Greystar Nicole Kellogg, The Nolo/The Wave - Pillar

LEASING CONSULTANT OF THE YEAR (1-300 UNITS) Hannah Weber, Aspen Creek - Weidner Julaine Hatcher, Chandlers Bay - Bridge Lauren Smith, Tera Apartments - Windsor Leslie Snider, Interurban - Independent Living Shawnte Pearson, The Lodge at Redmond Ridge Simpson

Chia Cha, Charter Club - Pinnacle Cindy Johnson, Plum Tree Park - Pinnacle Jeannie Wilcox, The Noble - Madrona Ridge Saniya Regmi, Watercrest - Weidner Sheidy Rantung, Heron View - Weidner

MAINTENANCE SUPERVISOR OF THE YEAR (1-150 UNITS ) Jake Martin, Marketside Flats & Post Alley Court Greystar Jose Castro, The Artiste Apartments - Weidner Miles Welch, The Noble - Madrona Ridge Richard Hughes, The Corydon - Pillar Robert Wurth, Cadence Apartments - Pinnacle

MAINTENANCE SUPERVISOR OF THE YEAR (151-300 UNITS) Aidin Edraki, The Park in Bellevue - Greystar Francisco Dorantes, Woodside East Apartments Greystar Nick Webster, The Hamptons - Bridge Octavio Romero, On the Green - Madrona Ridge Steve Korom, Brookside Village - Greystar

MAINTENANCE SUPERVISOR OF THE YEAR (301+ UNITS)

Bassim Barbour, The Cove Apartment Homes - Weidner Eddie Zimmerman, Bridges at Northcreek - Thrive James "Sparky" Regis, Metro 112 - Simpson Jamie Hannity, On the Park - Madrona Ridge Tyler Patton, Stadium Place - Pillar

MAINTENANCE TECHNICIAN OF THE YEAR (1-300 UNITS)

Brandon Schnoor, The Hamptons - Bridge Christy Rolfe, Liberty Ridge - ConAm Enoc Castillo, Island Park Apartment Homes - Weidner Lindasue Banks, Chandlers Bay Bridge - Bridge Ricky Burnett, The Lyric - Pillar

MAINTENANCE TECHNICIAN OF THE YEAR (301+ UNITS)

Ben LaFontaine, Summerwalk at Klahanie - Holland Dave Wendt, Via6 - Greystar Federico Chavez, Surprise Lake Village - Bridge Jennifer Aldrich, The Mill at Mill Creek - Greystar Robert Earl Carpenter, Jr., Surprise Lake Village - Bridge

ROOKIE OF THE YEAR—MAINTENANCE

CURB APPEAL (1-150 UNITS)

Kevin Campbell, Village at Seeley Lake - Bridge Pablo Montano, Belara at Lakeland - Greystar Sam Hale, The 101 - Pillar Sergey Krivtsov, Sherwood Apartments - Weidner

Bentley House - Thrive Compass - Pinnacle Jasper Apartments - Indigo Olympic and Sound View - Greystar Riverside Landing - Guardian

PORTFOLIO MANAGER OF THE YEAR Angela Dean-Hill - Independent Living Betsy Schanno - Pinnacle Jennifer Fisher - Holland Karyn Grindstaff - Greystar

COMMUNITY OF THE YEAR (1-150 UNITS) Avion Apartments - Greystar The 101 - Pillar Woodlands @ Forbes Lake - Independent Living

COMMUNITY OF THE YEAR(151+ UNITS) Alara Harbour Pointe - Greystar Breckenridge Apartments - Weidner The Lyric - Pillar

COMMUNITY OF THE YEAR—AFFORDABLE Addison on Fourth - Pinnacle Arrowhead Gardens - Independent Living Cambridge Cove Apartments - Guardian College Glen Apartments - Greystar Pilchuck Ridge - Guardian Rainier Glen Apartments - Guardian

NEW DEVELOPMENT OF THE YEAR (1-150 UNITS) Columbia Gardens - Independent Living Gatsby Apartments - Greystar Joseph Arnold Lofts - Greystar Sunset Electric - Greystar

NEW DEVELOPMENT OF THE YEAR (151+ UNITS) AMLI Mark24 - AMLI AMLI South Lake Union - AMLI Stadium Place - Pillar The Outlook - Greystar Via6 - Greystar

CURB APPEAL (151+ UNITS) Arrowhead Gardens - Independent Living Bailey Farm Apartments - Greystar Boulder Creek - Simpson On the Park - Madrona Ridge Resort at Forbes Creek - Greystar The Park in Bellevue - Greystar

SOCIAL AWARENESS AWARD—INDIVIDUAL Annie Jacobsen - Independent Living Emily Svensson - Prometheus Valerie Hill - Greystar

SOCIAL AWARENESS AWARD—TEAM Hero Creative Independent Living/SHAG Prometheus Real Estate Group

INDUSTRY PARTNER OF THE YEAR D&E - Innovative Systems HD Supply Trash Transit

LIFETIME ACHIEVEMENT AWARD To be announced at the gala

WMFHA VOLUNTEER OF THE YEAR To be announced at the gala

EMERALD SPONSORS

NEW DEVELOPMENT OF THE YEAR (Affordable) Interurban Senior Living - Independent Living Urban Center - FPI Management Quilceda Creek - FPI Management

RENOVATED COMMUNITY OF THE YEAR Cadence Apartments - Pinnacle Hubbard's Crossing - Thrive Olympic Village - Palladium Tower 801 - Pinnacle

SAPPHIRE SPONSORS Behr Pro * Executive Coatings & Contracting For Rent Media Solutions * LeaseHawk * Maintenance Supply HQ * Rich Landscaping Wilmar

For information about the Emerald Awards, visit www.wmfha.org or call 425.656.9077 16

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

New Windows are a GREAT Investment! 

Energy-efﬁcient windows will give you the competitive edge to improve occupancy rates.



Beautiful new windows from Milgard windows will increase tenant satisfaction by lowering their utility bills, increasing their comfort and reducing outside noise.



Milgard windows are virtually maintenance-free to save you time and money.



If you have an electrically-heated 5+ unit building in Tacoma Power or Seattle City Light’s service area, be sure to ask us about new window rebates!

New Energy-Efﬁcient Windows Attract New Tenants!

“We were very pleased with their work and would definitely use them again.” – Ed and Sharon Bezy via Angies List

SRC WINDOWS A S O L I D RO C K C O M PA N Y

Call or E-MAIL TODAY

FOR A FREE, NO OBLIGATION ESTIMATE

800-870-2488 srcwindows@msn.com

Call or E-MAIL TODAY

LICENSED, BONDED, INSURED • REGISTERED UTILITIES CONTRACTOR • MEMBER: RHA, MBA, BBB WA Contractors Lic. #SRC••981KM Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE Are you looking for an exit strategy from a 1031 exchange?

Are you tired of being a landlord and building owner?

Turn problems into possibilities! The choice is yours — tax-free sale or taxable sale. Tax-free

Through a Capital Gains Bypass Trust,™ the Trust sells your property tax-free. Your benefits include:

✓Bypass capital gains tax ✓Eliminate property management ✓Reduce income taxes ✓Diversify holdings ✓Create a community legacy ✓Provide income for self and family Taxable If you sell it, your profit will not be protected from capital gains tax. Result – less to invest. For information call

800-859-5066 or return coupon.

Name(s) Address City, State, Zip Age(s) Phone ( E-mail

)

The Salvation Army, Gift Planning Office P.O. Box 9219, Seattle, WA 98109 E-mail: nwlegacy@usw.salvationarmy.org Visit: www.salegacygifts.org

TLT ACGBT

Job No: SA-5852-Q Publication: THE LANDLORD TIMES Product: 4 color ad Ad: CGBT_P2P Dnr Size: 4.875” x 7.5” Insertion Dates: November 2013 10/24/13@7:00 PM Art Director: SL NEW MATERIAL - CHANGES OR REVISIONS NOT AUTHORIZED!

The nation’s #1 multifamily lender is lending in your backyard.

LOW(310) F E ES | G R EATFax RATES S TR E A M LI N ED P ROCESS 322-2210 (310) |322-0617 Stephanie@bprco.com

Getting deals done in Seattle. How did Chase become the nation’s leader in multifamily lending? With great rates, low fees and a deep understanding of the local market— in communities just like yours. If you have a 5 or more unit apartment building to purchase or refinance, call us today to learn how we can put our resources to work for you.

Mike Githens, Client Manager (206) 500-4582 michael.githens@chase.com

Alex Mundy, Client Associate (206) 500-2253 alex.mundy@chase.com

Credit is subject to approval. Rates and programs are subject to change; certain restrictions apply. Products and services provided by JPMorgan Chase Bank, N.A. #1 claim based on 2013 FDIC data. ©2014 JPMorgan Chase & Co. Member FDIC. All rights reserved. PA_14_022

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

T Ask

Secret Shopper

Northwest

s strong market conditions continue to prevail in the Pacific Northwest, many apartment communities are maintaining high occupancy numbers, and others are full with a waiting list. Conditions are optimum for raising rents and increasing property values. Residents of these communities are getting an education in the high cost of relocating and are opting to stay put, even if they receive a significant rent increase. What all this means is that those on the leasing end are in the driver’s seat: It is a seller’s market! However, just because you are full does not mean you quit selling or stop providing quality customer service. Unfortunately, after several years of tough market conditions, some leasing staffs are ready for a break and they are taking it during regular office hours! Based on some disturbing trends that started showing up a couple of years ago and that are still going strong, the Secret Shopper is wondering if some leasing consultants have the following questions: • When I have no vacancies or

unrented notices, is it really necessary for me to answer the phone, return calls or set appointments? • When I have no apartments available to rent, do I really have to keep appointments that conflict with my lunch break? • When my community is full and I’m having a slow day, do I really need to stay open until closing? While the above are “imaginary” questions, I can’t help but wonder how many of these are real, unspoken thoughts in the minds of some leasing employees. It may be true that the “leasing” side of the rental office becomes less challenging when your community is 100% occupied. However, even without apartments to rent, you have an existing customer base. Your residents still must be able to conduct business with you in order to renew leases, pick up packages, request maintenance service, etc. If you choose not to answer your phone, return calls or keep your office open, then you are not providing the level

of customer service you promised when they were prospective renters Regarding your 100% occupancy Congratulations! - It took a lot of hard work to get there. Of course, depending on how you treat your residents will determine if you STAY there. Oh, and one last thing: How are you coming along with your waiting list? Are you keeping in touch with the people who expressed interested in renting at your community or did you just take their name and number to “humor them?” Remember: The future is unpredictable, but a current, updated waiting list is a “sure thing.” Instead of “closing up shop” early on a slow day, how about making some follow up calls. You and your future renters will be glad you did!

Vis it us at

w w w. R e n t a l H o u s i n g J o u rn a l . c o m

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. ASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica

THE PREMIER WAS H I N GTO N RE N TAl H O uS I N G AS S O c I AT I O N

Comprehensive Tenant Screening Products

Top-of-the-Line Industry Lease Agreements and Rental Forms

Education and Event Programs for Continued Learning

Leading Advocacy Efforts on Behalf of Rental Owners and Managers

M E M B E RS H I P S S TA RT AT $ 8 0 RHA membership required for RHA products & services

(206) 283 - 0816 / (800) 335 - 2990 / www.RHAwa.org Rental Housing Journal On-Site • January 2015

Effective January 1, 2015, Jancyn is acquiring Shoptalk and they will serve your employee evaluation needs. It has been my extreme pleasure to work with all of you over the past 20 years. Yet, it is now time for me to move onto my next great adventure. I am willing to offer leasing training on a limited basis, as an independent consultant. However, I will no longer be involved in secret shopping. For now, your contact at Jancyn will be Vicki Dempsey, VP of Sales & Marketing and a managing owner. You can reach Vicki at: 408-267-2600 ext. 300 or Vicki@jancyn.com. I will be working closely with the Jancyn team to help ensure a smooth transition. Thank you for trusting me with your employee evaluations over the years, and now with the transition moving forward. Wishing you joy, peace, and prosperity in 2015!

RENTAL HOUSING JOURNAL ON-SITE

Buying Twice as Affordable as Renting

ven first-time buyers with low down-payments can expect to pay just 17 percent of their income toward mortgage payments as rents soar • Home buyers should expect to spend 15.3 percent of their incomes on mortgage payments for a typical home. Renters should expect to pay twice as much -- 29.9 percent of their median incomes -- to rent. • Likely first-time, 23-to-34-yearold buyers should expect to spend 17.4 percent of their monthly income on house payments. Historically, they spent about 22.5 percent of their income to purchase a home. • It was 30.8 percent more affordable to buy a home in the third quarter than it was in the prebubble years (1985 -1999). It was 19.8 percent less affordable to rent, compared to the pre-bubble years. It's more affordable to buy a home now in most U.S. metros than it was 15 years ago, even for millennials putting down less money on a home, according to a Zillow analysis of third quarter income and home value data. Renters, however, con-

Says Zillow Study

tinue to pay an increasing share of their income to their landlords as rents soar and incomes remain flat. On average, U.S. home buyers making the nation's median income and purchasing the typical U.S. home spend 15.3 percent of their income on their monthly house payment, down from the historical norm of 22.1 percent during the pre-bubble period from 1985 to 1999. On average, U.S. renters spent 29.9 percent of their monthly income on rent in the third quarter of 2014, up from 24.9 percent historically. Younger buyers, earning less money in many areas and making smaller down payments on a home, should expect to spend slightly more of their income on mortgage payments – 17.4 percent. Homes for younger buyers remain affordable thanks to continued low mortgage interest rates and their tendency to shop for less expensive homes. Continuously rising rents across the country could drive more people into the home-buying market, but they also make it more difficult for first-time buyers to save for a down payment. Washington, DC renters can expect to spend 27.1 percent of their income on rent, up from 16.2 percent historically. In Miami, rent as continued on page 23

Metro Area

Q3 2014 MeZillow Home dian Household Value Index Income

% of monthly income devoted to mortgage payments in Q3

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

$53,620 $69,337 $60,650 $62,652 $61,310 $64,823 $59,953 $92,610 $47,896 $59,927 $75,059 $77,409 $52,694 $54,085 $53,487 $70,352 $69,569 $63,607 $54,746 $46,050 $72,010 $64,120 $51,668 $60,071 $59,161 $51,884 $48,905 $55,093 $49,842 $58,212 $51,609 $99,230 $55,836 $55,332 $55,238

15.3% 25.6% 40.8% 14.0% 11.3% 14.6% 11.7% 18.1% 19.9% 11.8% 22.5% 41.5% 10.0% 23.9% 16.9% 22.1% 14.3% 34.1% 11.0% 14.7% 15.6% 19.7% 11.2% 21.2% 25.6% 12.9% 16.0% 11.5% 11.3% 11.0% 16.4% 38.2% 12.0% 13.1% 10.8%

$176,500 $381,600 $531,000 $188,200 $148,400 $202,700 $150,300 $359,300 $205,200 $151,900 $362,700 $689,900 $113,500 $277,900 $193,700 $333,700 $213,100 $466,100 $129,100 $145,400 $241,800 $271,200 $123,800 $274,100 $325,800 $144,300 $168,100 $135,900 $120,600 $137,400 $181,600 $813,500 $144,300 $155,900 $128,100

% of monthly income devoted to mortgage payment for first-time homebuyers in Q3 17.4% 30.6% 50.7% 16.2% 14.5% 18.1% 15.0% 24.0% 21.2% 15.2% 26.3% 43.3% 10.6% 28.8% 20.9% 27.3% 17.7% 42.9% 12.5% 14.7% 19.0% 25.4% 11.7% 28.3% 31.1% 15.1% 19.7% 13.9% 13.9% 13.2% 19.3% 43.7% 14.1% 15.3% 13.5%

% of monthly income devoted to rent in Q3

29.9% 40.5% 47.9% 31.5% 27.7% 28.8% 29.4% 27.1% 44.5% 24.1% 34.1% 45.9% 24.1% 36.4% 27.3% 30.8% 26.1% 42.5% 24.1% 32.4% 28.5% 32.9% 26.6% 30.5% 32.2% 29.6% 32.1% 26.0% 27.7% 24.2% 27.5% 37.9% 27.0% 26.3% 25.8%

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Ernest F. Oriente, The Coach {Article #224…since 1995}

ccording to the Society of Human R e s o u rc e Management {SHRM} over 50 percent of the information presented on a resume by a job candidate may be false or misleading. These are alarming statistics, and as the executive of your property management company, it continues to be increasingly important to understand the mindset of the job candidates that are applying for positions within your company. This article will help you and your company strengthen your reference checking process and eliminate those who will not be a perfect fit, long before a position is ever offered. Some reference checking statistics: A recent SHRM survey at www. shrm.org was sent to 2,640 human resource members regarding reference checking. The survey concluded that job candidates frequently present misleading information about their length of stay with former organizations, their past/current salary levels and their college credentials. More specifically, 53 percent of companies involved in this survey discovered falsified infor-

mation about length of employment from job candidates and 51 percent discovered falsified information about past salaries. In addition, 61 percent of job candidates falsify their college credentials, a credential that can be easily researched during the reference checking process. Tip From The Coach: Based on the above survey information, conducting thorough reference checks must continue to be an important step in the selection and interview process of hiring SuperStars for your property management company. Developing a reference checking process: The first step is to determine how reference checks are going to be done in your property management company and to establish or strengthen your written policy for how reference checks fit into your interview process. With some of our property management clients, their human resource department handles this important step before a formal job offer is made. With other property management clients, all hiring executives handle their own reference checks, based on the specific level of position being offered or the

compensation range being presented. As for references, three or more business references should be supplied by a job candidate as early in the interview process as possible. We highly recommend asking for references early in the interview process because this will give your hiring executives additional time to contact each organization submitted by a job candidate. This also means that your hiring executives will not be rushed to do reference checks in the final hours before making a job offer. This makes for a more thorough and complete reference checking process. Tip From The Coach: In addition to reference checks, many property management companies are now asking permission to do background checks, credit checks and criminal checks as part of their hiring process. Based on the SHRM survey statistics above and your own professional experience, have you recently reviewed your reference checking process? This process will help to link talented SuperStars to compatible positions within your property management company and will

reduce the chances of hiring low performers. Questions to ask when calling a reference: It has been our experience that all of our property management clients want to create their own custom reference checking form. Here are some sample questions to get you started with yours: How would you characterize his/her success with your company? How would you characterize his/her energy level? How was this person viewed by his/her peers? Describe the types of decisions this person made on a daily basis? How did this person manage their time? Tell me about a disagreement or a challenging situation and how this person handled it? Specifically, how was this person paid? Why did this person leave your company? Based on what you shared today, would you hire this person back? Tip From The Coach: We know that many companies are no longer giving references on past employees based on legal and liability concerns. Most of our property management clients now ask a job candidate to ...continued on page 24

Dryer Vent Solutions

Specializing in Condominiums and Multi-Unit Apartments

Repairs Problem vents Bird nests Re-vents Bird guards NTCLEAN

DRYERVE

425-398-5001

ER VEN

5001 DRY

425-398ING.COM

SOLUTION

DRYERVENTCLEANING.COM

THE DRYER VENT CLEANING EXPERTS

TONY CONTI, CIC

EQ - Apartments, Small Business 18927 - 33rd Ave., West, Suite C, Lynnwood, WA 98036

1-800-803-7000 Fax 425-712-1058 Cell: 206-930-9333 tony@soundviewinsurance.com

Vi s i t u s at www. re nta lh o u sin gj o u r n a l.co m

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Multifamily Green Light

orecasters have begun to warn of potential overbuilding in the multifamily sector, but concerns from pundits are premature. Multifamily development in the U.S. has yet to meet pent-up demand, and annualized effective rent growth was 4.1 percent in August 2014, the highest since October 2011. At the current rate of development, we anticipate production capacity and demand will reach equilibrium by mid-2015. Subsequently, the industry could enjoy up to six additional years of sustainable production, if developers and lenders carefully monitor demand and modify deliveries accordingly. It has been said that multifamily is in the middle innings of an extra inning game. Statistics on the U.S. supply of multifamily units clearly show the sector is not in danger of being overbuilt, although a few markets are the exceptions. Even areas such as Northern Virginia, which recently experienced oversupply conditions, are showing signs of improvement. Here are notable signs of a robust

U.S. Development Pace is Sustainable for Years to Come

multifamily sector: • The national multifamily occupancy rate rose to 95.2 percent in August 2014 after being at 95 percent since May, according to research firm Axiometrics. Occupancy rates are holding steady despite the new supply from developers. • There is fresh demand each year for 400,000 to 450,000 units, but developers are completing only 325,000 units a year. • 1 to 1.25 percent of the existing multifamily inventory in this country is demolished each year, a metric that when not taken into consideration, skews perception of demand. With considerable attention currently on urban development, the trend will continue in the near term. “In The Top 100 U.S. Markets, Demand for Apartments was More than Double that of the Number of Units Delivered.” Fundamentals remain strong on the demand side as the need for rental units continues to rise. In the top 100 U.S. markets, demand for

apartments was more than double that of the number of units delivered, with 55,561 units completed and 129,162 units absorbed, according to a second-quarter 2014 report from MPF Research. Job growth is expected to continue for the next five years, according to economists at Axiometrics, barring an unforeseen shock to the economy. Job growth will drive demand for multifamily projects, and as more job formation drifts to the suburbs, so will rental demand. In a somewhat surprising observation, the National Multifamily Housing Council reports that almost 50 percent of new renters are Baby Boomers, rivaling Millennials as the biggest driver of demand. Baby Boomers are becoming “renters by choice” who trade house and yard maintenance for convenient live/ work/play environments. For the time being, several factors are holding the supply/demand ratio in check. The number of Millennials entering the renter pool continues to increase a circumstance that will not change in the near term. Millennials will constitute 24 million new households between 2015 and

2025, thus driving up demand for rentals and starter homes, according to “The State of the Nation’s Housing 2014,” a report by the Joint Center for Housing Studies of Harvard University. Immigration is also driving additional household formation in ever-increasing numbers. Renter growth in 2013 remained well above the 400,000 average annual absorption rates of the last few decades, the study reports. In addition, stringent mortgage underwriting and growing student debt push homeownership further out for many young individuals and families. Also curtailing supply are barriers to entry, which exist in coastal markets as a result of the high costs of land and construction. Artificial barriers in other U.S. markets are a consequence of zoning restrictions and public opposition to higher density projects that are necessary to make some deals financially feasible. Finally, the lack of skilled labor is putting stress on construction capacity, driving up labor costs and lengthening construction timetables. Many former and would-be construction workers have been lured to the oil continued on page 24

Get extra help for your property for a day, a week or more

HIRE

Cleanup, yardwork, moving, painting and repair work

206-728-JOBS (5627) millionairclub.org

NEW PRODUCT!

A Full Service Tenant Screening & Credit Reporting Company – Credit Reports Start at $25

 Professional Online Presence  Applicants Fill Out Application Online  No Need to Handle Application Fees!

T (206) 283 - 0816 22

 Nationwide criminal + evictions records  Quick turn around time  Credit score – full credit reports available  Personal + professional assistance

(800) 335 - 2990 Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

The Coach – Reference Checks ..continued from page 21 sign a reference authorization form giving permission to their previous employers for a full and candid reference while also waiving any legal liability. In addition, we strongly advise our clients to call each reference given by a job candidate and when the reference conversation is complete --- ask this person, “Is their someone else within your company who can give me an additional reference on this job candidate?” Speaking to a second person within the same company is the secret to getting accurate and detailed references. Want to hear more about this important topic or ask some additional questions about how to build a custom reference checking form or to see a sample reference authorization form? Send an E-mail to ernest@ powerhour.com and The Coach will E-mail you a free TeleForum invitation. Author’s note: Ernest F. Oriente, a business coach/trainer since 1995 [33,000 hours], serving property management industry professional since 1988--the author of SmartMatch Alliances™, the founder of PowerHour® [ www.powerhour.com ], the founder of PowerHour SEO [ www. powerhourseo.com ], the live weekly

PowerHour Leadership Academy [ www.powerhourleadershipacademy. com/pm ] and Power Insurance & Risk Management Group [ www.pirmg.com ], has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars, traditional and Internet SEO/SEM marketing, competitive sales strategies, and high leverage alliances for property management teams and their leaders. He provides private and group coaching for property management companies around North America, executive recruiting, investment banking, national utility bill auditing, national real estate and apartment building insurance, SEO/SEM web strategies, national WiFi solutions [ www.powerhour.com/propertymanagement/nationalwifi.html ], powerful tools for hiring property management SuperStars and building dynamic teams, employee policy manuals [ www. powerhour.com/propertymanagement/ employeepolicymanuals.html ] and social media strategic solutions [ http:// www.powerhour.com/propertymanagement/socialmedialeadership.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox sales methodologies. Recent interviews and articles have appeared more than 8000+ times in business and trade publications

and in a wide variety of leading magazines and newspapers, including Smart Money, Inc., Business 2.0, The New York Times, Fast Company, The LA Times, Fortune, Business Week, Self Employed America and The Financial Times. Since 1995, Ernest has written 225+ articles for the property management industry and created 400+ property management forms, business and marketing checklists, sales letters and presentation tools. To subscribe to his free property management newsletter go

to: www.powerhour.com. PowerHour® is based in Olympic-town…Park City, Utah, at 435-615-8486, by E-mail ernest@powerhour.com or visit their website: www.powerhour.com

Buying Twice as Affordable ...continued from page 20 a percentage of income has risen from 26.5 percent before the bubble to 44.5 percent currently. "Despite rising home values, home ownership remains very accessible for buyers that can scrape together a down payment – even if that down payment is relatively modest – find a home to buy and secure financing," said Zillow Chief Economist Dr. Stan Humphries. "But what keeps me up at night is the fact that it still remains so difficult for so many potential buyers to make those particular stars align, largely because renting is so unaffordable these days. It's very difficult to come up with a down payment when so much of your monthly paycheck – especially on an entry-level salary – is going to your landlord instead of into your savings. Buying conditions are getting better every day, and in time the allure of fixed housing payments and building wealth through home equity will draw more buyers out of rentals and into home ownership." Home ownership rates in the U.S. have steadily declined, even as the housing market has recovered, in part because millennials have delayed their entry into the housing market. But it is likely that by the end of 2015, millennials (aged 23-34) will overtake Generation X as the biggest group of U.S. home buyers, a transition aided by widespread home affordability.

Tenant Screening just got easier... Streamline the tenant screening process – we provide the tools necessary to authenticate one another, order and share reports, all from your MyScreeningReport.com dashboard. LANDLORD

Signs Up

No Charge!

Invites

applicant to apply

•

No fees, paperwork or site inspections

•

Quality comprehensive reports

•

Secure report sharing platform

•

Customer support 7 days a week

APPLICANT

Signs Up

and orders report

LANDLORD

Views

and shares report

Logs In

and views report

Accepts

application

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

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Property Managers Face Housing Slowdown as 2015 Begins By Marc Courtenay

he year 2014 ended with the U.S. housing market appearing on the verge of a downturn. Sales of new homes in November slipped almost 2% from the previous year according to the Commerce Department. Existing homes sales for November also were down 6.1%. A more disturbing trend came from a survey of U.S. home builders revealing that the per-community sales pace contracted by an average of 20% in November, year over year. This shouldn’t be a surprise to property managers who are witnessing a surprising increase in the num-

ber of rental applications they’re processing. Residents are giving up on the so-called “American Dream”. This is also reflected by the fact that real estate loans held by commercial banks in the U.S. stopped increasing back in August 2014, this according to Federal Reserve data. Seasonally adjusted, loans held declined slightly in November, the first month-to-month drop since October 2013. The other symptom of a slowing housing market involves a decline in the Case-Shiller/S&P Home Price Index. It’s the leading measure of U.S. home prices. Data released on Dec.30 for October 2014 showed that the pace of home prices across the country

UNDERGROUND DETECTION & INSPECTION SERVICE • Utility Design Surveys • Ground Penetrating Radar • Structural Concrete Imaging • Leak Detection

877-826-1177

• Metallic Line Detection • Video Pipe Inspection • Non Metallic Pipe Detection • Electrical Fault Detection

www.cnilocates.com

Landlord-Tenant and Real Estate Attorneys Areas of Practice Evictions & Notices

Landlord-Tenant Relations and Civil Litigation The Loeffler Law Group PLLC practices primarily landlord-tenant law and has assisted thousands of clients to resolve difficult commercial and residential legal cases involving evictions, litigation, post-foreclosure matters, leases and other landlord-tenant disputes.

Experienced

Timely

Loeffler Law Group PLLC

Effective

500 Union St, Ste 1025, Seattle, 98101

T (206) 443 - 8678

www.loefflerlawgroup.com

Landlord Tenant Relations & Disputes Lease Drafting & Review Real Estate Litigation Collections & Judgment Recovery Fair Housing Complaint Defense We serve residents of King County, Washington and surrounding areas, including: Snohomish, Thurston, and Pierce Counties.

Your Apartment and Rental Housing Maintenance Specialists

• Apartment Turns • Rot &Mold Repair • Doors & Windows • Interior & Exterior Painting • Kitchens & Baths • Siding and Trim

Phone: (206) 284-4441 www.SunConstructioninc.com Licensed, Bonded & Insured • SUNCOI*024M3 24

continued to decelerate although eight cities did see prices rise faster. Both year-over-year and monthover-month figures reflected a pricing slowdown. Both the 10-City and 20-City Composites saw year-over-year declines in October compared to September. The 10-City Composite gained 4.4% year-over-year, down from 4.7% in September. The 20-City Composite gained 4.5% year-overyear, compared to 4.8% in September. The S&P/Case-Shiller U.S. National Home Price Index, which covers all nine U.S. census divisions, recorded a 4.6% annual gain in October 2014 versus 4.8% in September. Miami and San Francisco saw prices rise 9.5% and 9.1% over the last 12 months. Eight cities, including San Francisco, Denver, and Tampa saw prices rise faster in the year to October than a month earlier. Las Vegas led the declining annual returns with a decrease of -1.2%. No wonder the interest rate on the benchmark 10-year Treasury bond which determines mortgage rates has plunged. In the last 6 months it has declined from 2.6% to 1.96% as of January 6, 2015. To put that drop in perspective it equals a 25% decline in the interest rate for the bond and mortgages.

This augurs well for the possibility that home sales may soon be bottoming followed by an upturn later in 2015. “After a long period when home prices rose, but at a slower pace with each passing month, we are seeing hints that prices could end 2014 on a strong note and accelerate into 2015,” says David M. Blitzer, Managing Director and Chairman of the Index Committee at S&P Dow Jones Indices. He went on to comment, “Two months ago, all 20 cities were experiencing weakening annual price increases. Last month, 18 experienced weakness. This time, 12 cities had weaker annual price growth, but eight saw the pace of price gains pick up. Seasonally adjusted, all 20 cities had higher prices than a month ago.” Despite optimism the trend does not favor a burst of new home sales anytime soon. If mortgage rates stay low coupled with easing in the qualifying process perhaps more buyers will emerge. For the time being property managers should seize the opportunity to attract those who can’t afford to buy a house. Vacancies should fill faster, processing applicants should be state-of-the art and your clients should be smiling all the way to the bank in 2015.

Multifamily Green Light ...continued from page 22 and gas industry by higher wages, leaving the development community without enough tradespeople. While commodity prices are increasing moderately, contractors are pushing up margins to recoup losses incurred during the recession, and the additional costs will price some projects outside the realm of feasibility. The same labor dynamic is slowing the building of homes, which, consequently, also adds to the number of people in need of rental units. Opportunity still abounds in the robust multifamily sector, but future projects will face greater scrutiny from debt and equity sources, par-

ticularly as interest rates begin to rise. The “easy” opportunities are largely done and developers must be creative in originating the next round of development opportunities. As long as developers exercise constraint, it appears we will have a number of years of positive investment environment for multifamily. By Mark Culwell, Managing Director, Multifamily Development Transwestern Development Company Mark.Culwell@transwestern.com 214.534.1458

Innovators Beware ...continued from page 13 Jeep that looked like all the other jeeps on the trail but outperformed them. Since it takes so long to correct the dangers at the Complexity/ Wackiness intersection, identifying and supporting a few Innovation Judo Masters can go a long way in overcoming some of the most difficult barriers to innovation. Neal Thornberry, Ph.D., is the founder and CEO of IMSTRAT, LLC a consulting firm that specializes in helping private and public sector organizations develop innovation strategies. He serves as the faculty director for innova-

tion initiatives at the Center for Executive Education at the Naval Postgraduate School in Monterey, Calif. Thornberry, author of “Innovation Judo:Disarming Roadblocks & Blockheads on the Path to Creativity” (www.NealThornberry.com), holds a doctorate in organizational psychology and specializes in innovation, corporate entrepreneurship, leadership and organizational transformation. A respected thought leader in innovation, Thornberry is a highly sought-after international speaker and consultant.

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Mention this ad & receive 5% discount!

Free bulbs, showerheads and aerators? Yes, please. Seattle City Light’s Powerful Neighborhoods Program offers FREE efficient light bulbs, showerheads and faucet aerators for residential buildings with five or more units. In addition, bulb installation at your property is provided at no cost. • A variety of bulb types fit most applications and save you maintenance costs and save your tenants money • Watersense® showerheads for each shower • Efficient bathroom faucet aerators These fixtures will save on water, sewer and electricity costs.

Contact a Powerful Neighborhoods coordinator at SCL_install@seattle.gov or 877-311-8752 to start saving today. To be eligible, you must own an apartment building, condominium, retirement community, or cooperative with 5 or more units located in the Seattle City Light service area.

Conserving Energy for a Sustainable Future

Rental Housing Journal On-Site • January 2015

2 RENTAL HOUSING JOURNAL ON-SITE

WE HAUL MILK ON THE WEEKEND!

FLOHAWKS.COM 4

Increase Your Laundry Room Capacity by as much as 50% And Save Up To 50% on Utility Costs

Putting the WASH back into WASHington! With service throughout the state, North America’s favorite laundry provider is excited to return to Washington. In business since 1947 and now with more than 65,000 locations, 500,000 machines, and 27 branch offices, WASH has the resources and know-how to improve your laundry room operations.

Coin • Card Rent • Lease

At WASH, our focus is on delivering superior customer service, top-of-the-line laundry equipment and technology-based amenities that take the hassle out of laundry room management. We even offer a no-obligation, six-month trial lease on all new contracts. Find out how WASH can transform your laundry room.

1-800-421-6897 ext. 1600 www.washlaundry.com

HAINSWORTH LAUNDRY COMPANY

Life’s Good

26WS15-098 WASH in Washington 4_875x7_5 4c.indd

10/21/14 10:27 AM

Toll Free: (800) 526-0955 www.hainsworth.biz

Rental Housing Journal On-Site • January 2015

RENTAL HOUSING JOURNAL ON-SITE

Washington Rental Owners Association Washington Rental Owners Association (WROA), formerly know as Washington Apartment Association (WAA), wants YOU to join US and here is why! We are the oldest statewide landlord association in the state of Washington. We have added a series of full support services for the individual landlord to the already tremendous lobby team that has been fighting for landlords for 61 years! Your membership supports landlords across this state and our entire industry. This non profit organization is one of the most respected groups on Capital Hill and your membership effectively improves the influence we have. This is how you have always been heard on Capital Hill. Now this organization is also how you can get the support you need where the rubber hits the road.

Member Benefits 

Individual memberships starting at $85 per year which includes forms. Less than a good dinner for two can get you support you can’t afford to be without.



Free landlord forms for members. All forms are vetted by landlord attorneys.



Superior quality credit and criminal screening available with prices starting as low as $10. Two physical screening sites with a third site in Olympia opening January 15th



 

   

Attorney help line, free to members. Educational dinner meeting and classes with landlord specific topics around the state. Monthly statewide newsletter. Networking and advertising opportunities. Online video training coming soon. Multiple locations across the state.

THREE Offices to Serve You! LANS CHAPTER

3301 Rucker Ave, Ste A, Everett, 98201

PROA CHAPTER

To get started: Call, stop by, or join through our website! www.w aapt.org WROA Office 3301 Rucker Ave, Ste A Everett, WA 98201 425-353-6929

645 4th St #204, Bremerton, 98337

office@scaoa.com

1428 4th Ave E, Olympia, 98506

425 -353 -7132

GOVERNMENTAL & REGULATORY AFFAIRS

Rental Housing Journal On-Site • January 2015