On-Site (Seattle Metro) Rental Housing Journal March 2015 by Professional Publishing, Inc

Rental Housing Journal On-Site

March 2015 - Vol. 9 Issue 03

3. New Residential Water Heater Efficiency Standards 4. April Showers, Bring May Flowers... and Moss 5. Commercial Markets Poised for Growth Despite Weaker Global Economy 7. 5 Innovation Killers that Lurk Within Businesses 8. Spring Maintenance Checklist 11. What Tenants Do You Want? 12. National Survey Reveals 2015 Moving Plans for Renters

14. NAR Study: Accelerating Housing Costs Have Renters Feeling the Squeeze 16. NWMFHA Supporting Fair Housing Training 18. Secret Shopper 19. Strong Job Growth Foreshadows Solid Full-Year Economic Growth 22. NWMFHA Maintenance Summit Education Conference and Trade Show Exhibition 25. Inexpensive Ways to Attract Good Residents

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

Post-Foreclosure Evictions What You Need to Know

Market Overview Seattle, Washington Multifamily Housing Update 4Q14 RED CAPITAL GROUP®

By Evan L. Loeffler, Loeffler Law Group PLLC

4Q14 Payroll Trends and Forecast The Jet City economy continued to gain altitude during the fourth quarter, adding payroll positions at a 51,900-job, 3.4% rate, representing the largest quarterly year-on-year job gain recorded since 1998, and the fastest rate of growth posted since 2006. Consumer-driven sectors made the largest contributions to job creation, most notably retail trade (9,900/6.2%); construction (8,600/12.0%); and leisure services (5,700/4.0%). By contrast, payroll trends in Seattle’s key outward looking industries were softer as aerospace manufactures (-2,200/-2.4%) and software publishers (-800/-1.5%)

CHANGE SERVICE REQUESTED

Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007

PRSRT STD US Postage PAID Sound Publishing Inc 98204

...continued on page 20

urchasing property at a foreclosure sale can bring some unforeseen consequences. Sometimes the property is still occupied, either by the former owner, the former owner’s tenants, or someone who simply intends to stay there until forced to leave. The following are some considerations when placing a bid at a foreclosure sale. The simplest post-foreclosure eviction situation is if the occupants of the property are former owners. The law gives former owners 20 days

to move. No additional notice is required. While the former owner may contest the foreclosure sale— which is not uncommon—in most cases there is little defense to the purchaser’s right to possession of the property. For tenants occupying recently foreclosed property, the process is more complicated. The depending factors include whether there is a bona fide lease and if the property is within Seattle city limits. The first step is to determine whether the tenant has a “bona fide” or genuine lease. A lease is bona fide if it is between unrelated persons and for fair rental value. For example, if the former owner rents the

premises for $20.00 a month to her cousin and then secretly lives in the basement, the lease is not bona fide. In such a case, the court may invalidate the lease. For a legitimate tenant on a month-to-month rental agreement, the landlord may give the tenant a notice to terminate the lease giving at least 60 days’ notice to vacate. The last day must coincide with the end of the month. Seattle’s “Just Cause Eviction Ordinance” may require additional notice or time to move. See: http://www.seattle.gov/dpd/ codesrules/codes/justcauseordinance/default.htm. If there is a bona fide term lease, ...continued on page 4

Strong Job Growth Foreshadows Solid Full-Year Economic Growth

Robust Hiring and Firming Income Growth Expected to Boost Housing Recovery

www. renta l h ou si n g jou rn a l .com

of the housing recovery. Economic growth may face some headwinds as a strong U.S. dollar weighs on the trade deficit. However, the economy is expected to climb to 2.9 percent for the full year, up from 2.5 percent growth in 2014. "Our forecast calls for an increase in economic growth to 2.9 percent for 2015, which is a slight downward adjustment from our prior forecast but solid improvement nonetheless,"

said Fannie Mae Chief Economist Doug Duncan. "Although we are beginning this year at a more modest pace compared to the above-trend numbers seen at mid-year 2014, the country's aggregate income has benefitted from the improving labor market, which, combined with low gasoline prices, should help drive higher auto sales and overall consumer spending throughout 2015." continued on page 6

Advertise in Rental Housing Journal On-Sight Circulated to over 20,000 Apartment owners, On-site, and maintenance personnel monthly. Call 503-221-1260 to place and ad.

RENTAL HOUSING JOURNAL ON-SITE

It’s Time for Exterior Painting!

Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE

New Residential Water Heater Efficiency Standards By Heather Hill and Jason Campbell

n April 16, 2015, all residential water heaters manufactured for sale in the United States will be required to meet new efficiency standards as the third phase of a nationwide energy conservation effort takes effect. The National Appliance Energy Conservation Act regulates the energy consumption of certain household appliances including furnaces, boilers, refrigerators and water heaters. According to the Appliance Standards Awareness Project, water heating represents 20% of the total annual household energy consumption in the US, and on average 57% of this energy is lost in inefficient OLD STANDARD Product Gas-fired Gas-fired Oil-fired Electric Electric Tabletop Instant Gas Instant Electric

Volume 20-55 gallon 55-100 gallon 0-50 gallon 20-55 gallon 55-120 gallon 20-100 gallon 0-2 gallon 0-2 gallon

heaters. The US Department of Energy (DOE) released its first mandatory standards in 1990.The second phase, enacted in 2004, tightened standards the most significantly of the three phases, and was estimated to avoid 316.8 million metric tons of carbon dioxide emissions. The 2015 standards will avoid 172.5 million metric tons of emissions, equivalent to the annual greenhouse gas emissions of about 33.8 million cars, according to the DOE. The mandatory standards dictate that manufacturers meet the maximum energy efficiency levels technically feasible and economically justified. The DOE conducts product reviews and updates the standards on a regular schedule. Note, that EF .67 .67 .59 .97 .97 .93 .62 .93

while the manufacturers cannot make any water heaters with the old standards after the April date, they will be allowed to continue to sell the old inventory until the supply is exhausted. As of the date of this post, manufacturers have not released the compliant replacement heaters for their obsolete products. Though energy efficient models do exist in the marketplace, they have been built and promoted as specialty products and priced accordingly. Conversely, the replacement heaters will represent the new normal. What is changing? The Energy Factor (EF) represents the ratio of useful energy output

NEW STANDARD Product Gas-fired Gas-fired Oil-fired Electric Electric Tabletop Instant Gas Instant Electric

Volume 20-55 gallon 55-100 gallon 0-50 gallon 20-55 gallon 55-120 gallon 20-100 gallon 0-2 gallon 0-2 gallon

from the water heater to the total amount of energy used to operate it. The higher the EF rating, the more energy efficient is the water heater. The type of fuel, volume and mechanics of the heater all factor into its rating and coinciding standard. For example, tabletop and instantaneous electric heaters already meet the EF standards and thus no changes will take place for those heaters. The new requirements will most significantly affect gas-fired and electric heaters over 55 gallons as well as all instant gas heaters. The chart below outlines how the standards apply to each style of heater.

EF .675 .8012 .68 .960 2.057 .93 .82 .93

DIFFERENCE EF .005 .1312 .09 -.01 1.087 0 .20 0

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 • March 2015

RENTAL HOUSING JOURNAL ON-SITE

April Showers, Bring May Flowers... and Moss By Brandon Vaughn, All-Clean! SoftWash Known by many property managers as the scourge of the Northwest, roof moss can be a formidable enemy. Every year, despite the brushing, and pounds of Moss-Off applied - the moss returns, seemingly stronger than ever. And it's more than just an aesthetic problem. "Moss can be detrimental to asphalt shingle performance," says a maintenance bulletin from ARMA (Asphalt Roofing Manufacturer's Association). "Moss build-up can cause lateral water movement resulting in moisture damage to the roof deck or may even cause leaks." So why is moss so prolific in the Northwest? About 40 years ago, roofing manufacturers began adding

limestone filler to roofing shingles, to help weigh them down and cut down the cost of using more expensive ceramic. The downside is that black algae and moss now feed on this limestone filler. Combined with our constant rain, we have the perfect damp environment where moss, algae and lichen can really grow. The Bigger Problem Roof manufacturers know that the moss plant's root systems can cause significant granule loss, leading to premature roof failure. It's for this reason that manufacturers will actually void the warranty on roofs that have been neglected. However, there is a bigger problem. Most of methods used to remove moss in the Northwest, also void the roof warranty. Brushing, scraping, pressure washing, even a low-pressure rinse of the moss, can void roof warran-

ties. The reason for this is premature granule loss. "We have seen granule loss from pressures as low as 150 PSI in previous claims," says a technical coordinator with GAF Roofing. While brushing, scraping or rinsing the moss may provide an immediate result, the damage done can take years of the lifespan of a roof. It's a short term solution to a long term problem. Frayed shingle edges, granule loss, pock marks - all hallmark signs of damage caused by manual moss removal. And the very next year, the moss will re-grow, requiring more brushing or scraping,

causing more damage. So the question remains, how can one effectively treat this moss without voiding the warranty? Winning The Battle First off, one needs to think of moss like a pest, not as a dirty stain that can be scrubbed or blasted away. Interestingly enough, Oregon requires companies who treat moss on roofs to be licensed with the Oregon Pesticide Division. One common method used and recognized as a pesticide for roof ...continued on page 9

Great rates for Seattle apartment building owners.

Bringing you low fees, great rates, and local market expertise. 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. LO W F E E S | G R EAT RAT ES | S T R E A M L I N ED P RO CESS

Contact Todd Sechrist, Client Manager at (206) 500-4634 or todd.sechrist@chase.com Credit is subject to approval. Rates and programs are subject to change; certain restrictions apply. All rights reserved. #1 claim based on 2013 FDIC data. ©2014 JPMorgan Chase & Co. All rights reserved. Chase is a marketing name for certain businesses of JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A. Member FDIC. PA_14_098

Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE

Commercial Markets Poised for Growth Despite Weaker Global Economy

stronger labor market and stable U.S. economy should keep commercial real estate demand on the rise, but the pace of growth will likely be hindered by overseas weakness, according to the National Association of Realtors® quarterly commercial real estate forecast. Lawrence Yun is chief economist and senior vice president of research at the National Association of Realtors(r). Yun oversees and is responsible for... National office vacancy rates are forecast to slightly decrease 0.1 percent over the coming year as improved hiring increases the demand for office space. The vacancy rate for industrial space is expected to decline 0.4 percent and retail space 0.3 percent as manufacturers boost production for goods and services and consumers slightly accelerate their spending. A swath of new apartment construction coming onto the market is forecast to lead to an uptick (0.1 percent) in the multifam-

Rental Housing Journal On-Site • March 2015

ily vacancy rate. Lawrence Yun, NAR chief economist, expects commercial real estate activity to hold steady heading into the spring. "The demand for leases and new construction projects is expected to slowly climb as businesses add to their payrolls and consumers reap the benefits of cheaper gas and any accompanying wage growth from a tighter labor market," he said. "Furthermore, multifamily housing continues to be the top-performing sector with current rental demand exceeding supply – leading to rent growth that is easily outpacing inflation in many metro areas throughout the country." Although economic conditions are improving at home, Yun says weaknesses in the global economy will likely impact exports. "Sluggishness overseas alongside a strengthening U.S. dollar will widen the trade deficit and slow economic growth potential," he said. "However, GDP is forecasted to come in around 3 percent in 2015 – the highest since the recession. Improvements in housing and commercial real estate market activity will measurably help

economic growth." NAR's latest Commercial Real Estate Outlook1 offers overall projections for four major commercial sectors and analyzes quarterly data in the office, industrial, retail and multifamily markets. Historic data for metro areas is provided by REIS Inc., a source of commercial real estate performance information. In partnership with Deloitte and RERC Situs, NAR released an annual joint report earlier this month – Expectations & Market Realities in Real Estate 2015 – which forecasts for an expected increase in commercial real estate value and pricing in 2015. Office Markets Office vacancy rates are forecast to slightly decline from 15.8 percent in the first quarter to 15.7 percent in the first quarter of 2016. The markets with the lowest office vacancy rates in the first quarter are Washington, D.C., at 8.7 percent; New York City, 9.0 percent; Little Rock, Ark., and Seattle at 11.5 percent; and San Francisco, at 12.0 percent. Office rents are projected to

increase 3.3 percent in 2015 and 3.6 percent next year. Net absorption of office space, which includes the leasing of new space coming on the market as well as space in existing properties, is likely to total 47.7 million square feet this year and 58.3 million in 2016. Industrial Markets Industrial vacancy rates are expected to fall from 8.7 percent in the first quarter to 8.3 percent in the first quarter of 2016. The areas with the lowest industrial vacancy rates currently are Orange County, Calif., with a vacancy rate of 3.4 percent; Los Angeles, 3.7 percent; Miami and Palm Beach, Fla., both at 5.4 percent; and Seattle, at 5.6 percent. Annual industrial rents should rise 3.0 percent this year and 3.1 percent in 2016. Net absorption of industrial space nationally is expected to total 102.2 million square feet in 2015 and 104.8 million square feet next year. Retail Markets Vacancy rates in the retail market ...continued on page 9

RENTAL HOUSING JOURNAL ON-SITE

Post-Foreclosure Evictions ...continued from front page the new owner must honor that lease until the end of the term. Prior to December 31, 2014, there was a federal law that created an exception if the property was purchased for the new owner to occupy as a primary residence. That law expired. There is a misconception that tenants need not pay rent for 60 days after a foreclosure sale. There is no statute or case law that provides for free rent to occupants of foreclosed property for any period of time. Some common post-foreclosure scenarios: 1. The occupant has no lease or has damaged the property. The occupant has no right to remain on the premises and may be subject to eviction 20 days after the sale without the need for a pre-eviction notice. If the occupant is damaging or committing illegal acts on the property the owner may deliver a 3-day notice requiring the occupant to vacate earlier.

2. The tenant or the former owner alleges an ownership interest in the property. A party with a legitimate ownership interest in the property may not be evicted using eviction laws. Usually, the deed transferring title to the new owner is sufficient to defeat any such claim. If not, the trustee or title insurance carrier (assuming the new owner purchased title insurance) may have to defend the new owner’s claim. The new owner will seek an order from the court to “quiet title.” This process will take substantially longer than an eviction. 3. The former owner or the tenant files for bankruptcy protection: If the occupants file a bankruptcy petition, every lawsuit, eviction or other legal proceeding against the petitioner stops until the new owner gets permission from the bankruptcy court to continue. Resolving this tenant situation

Strong Job Growth ...continued from front page "We expect housing to shift up a gear in 2015 following the uneven and ultimately disappointing activity last year," said Duncan. "Our forecast calls for a number of factors, including strong hiring and income growth, stabilized housing afford-

ability, and modestly easing lending standards, to translate into improving housing demand throughout the year. We continue to anticipate that the Fed will begin to hike short-term interest rates later this year, although weak global economic growth and

usually requires the assistance of an attorney familiar with bankruptcy law. 4. The tenants have a bona fide, unexpired lease: The new owner must honor the terms of the lease. The landlord and the tenant owe each other all the duties and obligations imposed by the Residential Landlord-Tenant Act of Washington until the lease expires. See: http://apps.leg.wa. gov/rcw/default.aspx?cite=59.18. At any time, a new owner or landlord may offer occupants an incentive to move. A “cash-for-keys” agreement is legal as long as both parties agree. Any agreement, however, should be in writing or it cannot be enforced if the tenant changes his or her mind after taking the money. Legal costs for a post-foreclosure eviction range from as little as $150.00 to thousands if the occupants contest the eviction every step of the

geopolitical headwinds will likely limit the rise in long-term interest rates. We expect total home sales to increase by approximately 6.0 percent for 2015, with total single-family mortgage production climbing to approximately $1.2 trillion. Total sin-

way. An eviction may take as little as a few weeks to several months. Most eviction cases take about a month. During this time, the new owner may be required to continue mortgage payments on the property. Often, seeking legal counsel as soon as possible after the foreclosure sale will save you time and money. An attorney can assist you by analyzing the situation, informing you of your rights, and developing a plan to remove the occupants as quickly and affordably as possible. Evan Loeffler is the principal at the Loeffler Law Group PLLC in Seattle. Mr. Loeffler’s practice emphasizes landlord-tenant relations and real estate litigation. He is the author of the chapter on landlord-tenant law in the annually published Washington Lawyers Practice Manual. www.loefflerlawgroup.com

gle-family mortgage debt outstanding should be relatively flat this year before picking up gradually in 2016 and 2017." SOURCE Fannie Mae

2015 OREGON/WASHINGTONRESOURCE RESOURCEGUIDE GUIDE 2014 OREGON/WASHINGTON

Investor’s Real Estate

CAPITAL

IRE Capital specializes in providing

permanent and construction debt placement for income producing properties through our network of institutional lenders which include, national and banks, life companies and Investor’s Reallocal Estate Wall Street conduits.

CAPITAL

t:452.806.8508 m:2016.650.4935 f:425.385.2858

Take advantage of the newest rates, call Dawn or Dan Jones at 425-806-8508 for quotes or questions.

www.irecapital.com e:dawn@irecapital.com dan@irecapital.com

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

11400 45th Ave SE Everett, WA 98208

RENTAL HOUSING JOURNAL

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.

Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE

5 Innovation Killers that Lurk Within Businesses reasons. “The more rigid people reject innovation simply because they are uncomfortable with the new or don’t want to spend the energy to try something different,” Thornberry says. They may be quick to point out flaws in your ideas. One way to counteract that, Thornberry says, is to be your own worst critic. Discover those flaws first and highlight them yourself. Then you can address how you plan to mitigate them, thus stealing the critics’ thunder, he says.

Politics You can usually get around one or two individuals who try to block your idea, but it’s more challenging when the organization is rife with politics. “I hate working in highly politicized organizations,” Thornberry says. “They make work a lot harder and make you spend considerable time on non-value-adding activities.” In fact, Thornberry devotes an entire chapter in his book to “Right Mindedness” so that innovators practicing his seven secret judo skills are not seen as innovating for personal gain or exploitation, but as enablers of company success. Organizational design An out-of-whack organizational design usually is not generated on purpose

or with malice, Thornberry says. would benefit from the innovation, METRO, he says, because payingARIZONA customers Instead it develops over time, with VALLEY, one well-intentioned move after have huge leverage. another leading to unintended conCompany values Here the sequences. Often the result is a proliferation of controls, along with innovator has both a challenge and structures and processes that create an opportunity. Many companies articulate their values, but don’t barriers to innovation. always live byNov, them. “The upside for When an idea is blocked by layers Jan, Mar, May, Jul, Sep, innovators is thatCA values can be used of decision-making,1010 one East solution 62nd isStreet, Los Angeles, 90001-1598 innovation even if to use leverage, Thornberry says. as leverage Phone: 1-800-624-5269 • Fax:for 1-800-624-5299 Enlist the aid of a customer who ... continued on page 12

Octoberp

September

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

1/8 Page 4 7/8” x 3 5/8” On-Site3a

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 • March 2015

APT

Salsbury Indu

he work of innovative thinkers is why the world has smartphones, laptop computers, toaster ovens and numerous other gadgets and creative approaches to problem solving. Yet groundbreaking ideas aren’t always welcome in the corporate world or within other institutions. Instead, those who suggest a different approach often find their ideas shot down by co-workers or blocked by an organizational system that is unwelcoming to change, says international speaker and innovation consultant Dr. Neal Thornberry. That doesn’t mean innovation can’t happen, though. “The innovator needs to know how to operate in these less than friendly cultures without waiting for some miraculous transformation in corporate policy,” says Thornberry, author of the book “Innovation Judo: Disarming Roadblocks and Blockheads on the Way to Creativity.” (www.NealThornberry.com) He says there are five innovation “killers” within organizations that a person with ideas can expect to confront. People. Sometime it’s an individual, sometimes it’s a group. Regardless, people often resist innovation, and many times for illogical

RENTAL HOUSING JOURNAL ON-SITE

Spring Maintenance Checklist

n spring, focus on freshening up your rental property and protecting the dwelling against the season's strong winds and rains. Use this time of the year to thoroughly clean and care for the home's interior.

4. Install missing screens on windows and doors. Repair as needed.

Outdoor Tasks: 1. Clean gutters and downspouts.

7. Professionally service heating and cooling units.

2. Inspect roof and chimney for cracks and damage.

8. Check the foundation for cracking as well as for insect damage.

3. Wash the exterior of all windows.

9. Remove foundation vent covers

5. Fertilize the lawn. 6. Check decks for loose boards, railings, or stairs.

and spigot covers. Indoor Tasks: 10. Test all smoke and carbon monoxide detectors 11. If the basement has a sump pump, test it by dumping a large bucket of water into the basin of the sump pump. This should activate the sump pump. If it does not switch on or if it's notpumping water, it may need to be serviced by a professional. Also, check for and remove any debris and make sure there are no leaks. 12. Assess the need for blind repair, cleaning or replacement. 13. Repair or replace broken or missing kitchen cupboard hardware. 14. Check the attic for signs of moisture and water stains. 15. Check walls for condensation and mildew.

17. Clean dryer vents. 18. Clean or replace furnace filters. Check clothes washer hoses for cracks or swelling. 19. Check all faucets for leaks or slow drips. Detach and flush aerators. 20. Maintain clean drains by pouring one-half-cup baking soda followed by one-half-cup white vinegar into each. After 10 minutes, flush with boiling water. Katie Pooleâ&#x20AC;&#x201C;Hussa is a Licensed Property Manager, Continuing Education Provider and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at Katie@ SmartPM.co

16. Check electrical panel for rust, make sure circuit breakers are operating correctly.

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

RENTAL HOUSING JOURNAL ON-SITE

April Showers ...continued from page 4 moss is zinc or copper sulfate. Zinc or copper sulfate can be a great preventative if applied annually to the roofs, and should be considered as a regular maintenance method to keep roofs moss free. However it works poorly at removing moss that is actively growing. To completely remove the moss the first time through, ARMA recommends a "SoftWashing" treatment. If treated and killed properly, roof

moss will weather off the roof naturally, typically within 6 months, without any need for brushing, scraping or rinsing. This method is the gentlest way of removing moss guaranteeing not to cause any roof damage. Thus the reason why the roof manufacturers recommend it. And because the solution can be pumped upwards of 30' by a technician with a hose and pump system, many roofs can actually be treated

without walking on the roofs. The best time of year to treat moss is in early spring before the moss begins to flourish with the spring rains. Once treated and killed, the pounding of the rains actually help speed up the moss decomposition and weather it off the roof quicker. Moss can be a tough enemy, but with the right strategy and tools in your arsenal, controlling it will pay off in the long run. Proper roof main-

tenance and cleaning can prolong the lifespan of a roof by double. Considering roof replacement is one of the most expensive maintenance items a property will encounter, some proactive maintenance is a worthwhile investment that will yield great returns.

Poised for Growth ...continued from page 5 are expected to decline from 9.7 percent currently to 9.5 percent in the first quarter of 2016. Currently, the markets with the lowest retail vacancy rates include San Francisco, at 3.0 percent; Fairfield County, Conn., and San Jose, Calif., at 4.5 percent; Long Island, N.Y., 4.9 percent; and Orange County, Calif., at 5.0 percent. Average retail rents are forecast to rise 2.5 percent in 2015 and 3.1 percent next year. Net absorption of retail space is likely to total 15.7 million square feet this year and jump to 20.6 million in 2016.

Multifamily Markets The apartment rental market should see vacancy rates slightly increase from 4.1 percent currently to 4.3 percent in the first quarter of 2016. Vacancy rates below 5 percent are generally considered a landlord's market, with demand justifying higher rent. Areas with the lowest multifamily vacancy rates currently are Sacramento, Calif., 2.5 percent; Orange County, Calif., 2.6 percent; Hartford, Conn., and Oakland-East Bay at 2.7 percent; and Rochester, N.Y., at 2.8 percent.

Average apartment rents are projected to rise 3.7 percent this year and 3.6 percent in 2016. Multifamily net absorption is expected to total 171,978 units in 2015 and 157,168 next year.

SOURCE National Association of Realtors

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

THE PREMIER WAS H I N GTO N RE N TAL H O US I N G ASSO 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 Housing Providers

M E M B E R S H I P S S TA RT AT $1 1 0 RHA membership required for RHA products & services

T (206) 283 - 0816

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

(800) 335 - 2990

www.RHAwa.org 9

RENTAL HOUSING JOURNAL ON-SITE

Water Heater Efficiency ..continued from page 2 Manufacturers can employ new technologies such as heat pumps, which help reduce energy use by 50%, to upgrade electric water heaters. Condensing technologies can reduce energy use in gas storage containers by 25%. The low-tech solution, adding more insulation, may cause more complications. While adding 1 inch of insulation would increase EF by .05, it would

Product Gas-fired Gas-fired Electric Electric Oil-fired Instant Gas

EF .62 (40 gal) .76 (56 gal) .95 (50 gal) 2.0 (56 gal) .62 (32 gal) .82 (0 gal)

The cost savings refer to the costs of owning and operating the product after considering both the increased installed price and the lifetime operating costs. Maintenance costs may also increase due to the complex design

also broaden the heater by 2 inches in diameter. Knowing that water heater installations in multi-family structures are space defined, manufacturers may also reduce tank capacities to allow NAECAcompliant units to fit in predetermined spaces, as the floor plans and common plumbing designs typically found in multifamily units will prevent relocation of the water heater.

Average Cost $1,072 $1,261 $554 $729 $1,974 $1,779 of the new technology and the integration of electronics, blowers, fans, condensers, etc. Anyone who services water heaters may also struggle with a learning curve.

What will this cost property owners? Since manufacturers have yet to release the new heaters, the only certainty for the owners of properties with large-volume gas or electric heaters is that those manufactured after April 16th will save money in operating costs. However, the improved technologies are likely to come with a higher price tag, as any new technology improvement usu-

Cost Increase $92 $805 $140 $974 $67 $601

ally does. Following the last major efficiency upgrade in 2004, prices for the new standard equipment increased 8-12%. The DOE estimated the following cost implications for the 2015 standards:

Cost Savings* $6 $77 $10 $626 $295 $6

Considerations Residential property owners need to review their options carefully when replacing a large volume water heater in the near future. Don’t wait until the heater fails to plan for its successor. Being aware of the condi-

Payback Period 2 years 9.8 years 6.9 years 6 years .5 years 14.8 years

tions of the current heater, including its footprint, both physical and carbon, can save property owners headaches and money down the road.

Dryer Vent Solutions

Specializing in Condominiums and Multi-Unit Apartments

Repairs Problem vents Bird nests Re-vents Bird guards

01 DRYER

5-398-50 G.COM 42

ANIN

NTCLE DRYERVE

425-398-5001

TION VEN SOLU

DRYERVENTCLEANING.COM

THE DRYER VENT CLEANING EXPERTS NEW PRODUCT!

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

Effective January 1, 2015, Shoptalk has been acquired by Jancyn 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 as a consultant 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!

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

T (206) 283 - 0816 10

 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 • March 2015

RENTAL HOUSING JOURNAL ON-SITE

What Tenants Do You Want? Targeting the Tenant when Buying the Property

andlords who manage their own properties develop longterm relationships with their tenants. Often, they will see or communicate with their tenants, more than with some of their relatives. The great thing about tenants, compared to relatives, is that you can choose your tenants. The best way to begin the “choice” process is choosing to purchase rental properties, with current or future tenants, compatible to your personality. Are you retired military? You probably would be an ideal owner for rental property near a military base. You already understand off base housing, deployments, and other concerns specific to active military tenants. This would give you an advantage, when showing your property to prospective tenants , in addition to tenant retention. Do you work at a large corporation that hires contract workers from out of state? What type of housing do the contract workers rent, while working at your facility? You already have an “inside line” to these tenants and possibly a “direct” line through your corporate human resources department. By purchasing a property in an area, where employees or

contract workers at your company rent, you will have a unique and convenient source of tenants. Graduate students often enjoy living within a couple of miles of campus, but not in the midst of the party scene. They are generally quiet and many times married or live with a significant other. If you think they would be a “compatible” tenant for you, find out exactly what neighborhoods attract graduate students, and scope out purchasing rental properties in those areas. Chances are the prices will be lower and the tenants tamer, then rentals walking distance to campus. All cities have sub market neighborhoods. Properties near a regional trauma hospital will attract medical personal, that are often on call, and need to live nearby. Rentals that are walking distance to a popular senior center, will have a built-in source of older tenants. Properties in close proximity to government or downtown office buildings, or with easy convenient public transportation to them, attract white collar office workers. Decide the type of tenant, that you can best relate to, and focus your rental property purchase on property or properties, that your tar-

get group tenant would rent.

ment complexes and can be contacted at 520-797-6900 or tucsonrealestate@ mindspring.com.

Jade Bossert is a licensed Real Estate Broker with Tierra Antigua Realty in Tucson. She specializes in the sale of apart-

QUALITY CRAFTMANSHIP

GUARANTEED

• • • • •

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

YOU Save Time and Money! WE Save your Cabinets and Protect your Investment

Painting

Historical Renovations

Win dows & Siding

Decks & Stairs

Our cost effective upgrades will positively affect your bottom line. Fast Clean Easy

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

cont. #CODDIC1027RH Rental Housing Journal On-Site • March 2015

No Paint No Mess One Day

Before

After

www.SeattleCabinetRenovations.com 11

RENTAL HOUSING JOURNAL ON-SITE

National Survey Reveals 2015 Moving Plans for Renters

Affordability, Relationship Changes and More Space Top Reasons Why Renters are Moving; Despite Increasing Rents and Apartment Demand, Three Quarters of Renters Said They are Not Spending More on Rent

hile rents continue to rise around the country, the rate of growth is slowly decreasing. According to CoStar, the real estate industry's leading provider of information, analytics and online marketplaces, the average cost of rent nationwide increased by 0.64 percent to $1,194 a month in the

fourth quarter of 2014—down from a .89 percent increase the previous quarter. At the same time, demand for apartments remains strong despite a slight uptick in the vacancy rate to 4.7 percent in the fourth quarter of 2014 from 4.3 percent the previous quarter. CoStar predicts new apartment supply will also peak this

year at more than 300,000 units. Apartments.com conducted its annual survey of more than 5,200 renters nationwide to determine how the healthy rental market would affect their moving plans this year. The survey reveals why renters are choosing to move or stay in their apartments, why more homeowners are turning to renting and the most popular apartment amenities. Affordability, changes in marital and relationship status and wanting more space topped the list of reasons why respondents said they are moving this year. Three quarters of renters surveyed also indicated they are planning to spend either the same or less on rent despite current demand and increasing rents. When asked how much renters are currently spending on rent, more than 60 percent said less than $1,000 a month— just under the national average—and 35 percent are spending between $1,000 and $2,000. "With new supply slated to hit this year, it is yet to be seen whether or not this will result in decreasing rents," said Brad Long, president of Apartments.com. "While construc-

tion is ramping up, demand is still strong, partly in response to many would-be homeowners turning to renting as a more viable financial option. In fact, the most popular reasons homeowners gave for why they are renting this year are because they lost their home to a foreclosure or divorce (up 4.3 percent from 2014), they can no longer afford their home, or they are downsizing." Why are people moving in 2015? And, why aren't they? Affordability, relationship changes, more space and family played a big role in renters' decisions to move this year. Other reasons renters gave for moving include being closer to school, needing accommodations for senior living or retirement, and selling property. According to the survey, the top five reasons renters are moving in 2015 are: 1. More affordable apartment: 24.7 percent 2. Change in marital/relationship status (getting married/breaking up): 9.4 percent 3. Moving into a bigger apartment:

Efficiency is easy Puget Sound Energy’s Multifamily Retrofit program can save you time, energy and money. Get started today. It’s easy: 1. Call a Program Representative at 1-866-997-9767 or e-mail multifamilyretrofit@pse.com to schedule a free energy audit. 2. An energy specialist will perform the audit and see if you qualify for the direct installation program, along with making other energy efficient upgrade recommendations. 3. The audit will also identify other ‘no cost’ and ‘low cost’ retrofit incentives your properties may qualify to receive through PSE’s Multifamily Retrofit program.

The savings start here. Schedule your appointment today.

pse.com/multifamilyretrofit 12

Rental Housing Journal On-Site • March 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 • March 2015

RENTAL HOUSING JOURNAL ON-SITE

NAR Study: Accelerating Housing Costs Have Renters Feeling the Squeeze The gap between rental costs and household income is widening to unsustainable levels in many parts of the country, and the situation could worsen unless new home construction meaningfully rises, according to new research by the National Association of Realtors®. NAR reviewed data on income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years in metropolitan statistical areas1 across the U.S. The findings reveal that renters are being squeezed in many metro areas throughout the country due to the disproportionate growth in rental costs to incomes. New York, Seattle and San Jose, Calif. are among the cities where combined rent growth is far exceeding wages. Lawrence Yun, NAR chief economist, says the disparity between rent and income growth has widened to unhealthy levels and is making it harder for renters to become homeowners. "In the past five years, a typical rent rose 15 percent while the income of renters grew by only 11 percent," he said. "The gap has worsened in many areas as rents continue

to climb2 and the accelerated pace of hiring has yet to give workers a meaningful bump in pay." According to Yun, the share of renter households has been increasing and homeownership is falling. Those financially able to buy a home in recent years were insulated from rising housing costs since most take out 30-year fixed-rate mortgages with established monthly payments. Furthermore, a typical homeowners' net worth climbs because of upticks in home values and declining mortgage balances. The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing housing costs every year. "Meanwhile, current renters seeking relief and looking to buy are facing the same dilemma: home prices3

are rising much faster than their incomes," adds Yun. "With rents taking up a larger chunk of household incomes, it's difficult for first-time buyers – especially in high-cost areas – to save for an adequate downpayment." NAR's research analyzed changes in the share of renters and homeowners, mortgage payments, median home prices, median household income for renters and the rental costs in 70 metro areas. The top markets where renters have seen the highest increase in rents since 2009 are New York (50.7 percent), Seattle (32.38 percent), San Jose, Calif., (25.6 percent), Denver (24.14 percent) and St. Louis (22.26 percent). Looking ahead, Yun says a way to relieve housing costs is to increase the

supply of new home construction – particularly to entry-level buyers. Builders have been hesitant since the recession to add supply because of rising construction costs, limited access to credit from local lenders and concerns about the re-emergence of younger buyers. Yun estimates housing starts need to rise to 1.5 million, which is the historical average. Housing starts have averaged about 766,000 per year over the past seven years4. "Many of the metro areas that have experienced the highest rent increases are popular to millennials because of their employment opportunities," adds Yun. "With a stronger economy and labor market, it's critical to increase housing starts for entry-level buyers or else many will face afford-

Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE

Innovation Killers ...continued from page 7 they aren’t true,” Thornberry says. For example, if the company declares, “The customer is No. 1,” then it becomes difficult to ignore an innovation that is positioned as being for the customer. Corporate culture The corporate culture essentially is how the people, politics, organizational design and values interact. “The greatest challenge to any innovator, and to embedding and sustaining innovation over the long term, is culture,” Thornberry says. To make it even more challenging, often organizations have micro-cultures within the culture. That means, he says, you will need to adapt the use of innovation judo principles depending on which micro-culture you are dealing with at any given moment. “Innovators throughout history have faced both roadblocks and blockheads on their path to creativity,” Thornberry says. “And so will you.” But with a little courage and some counterbalancing skills, he says, these challenges can be overcome.

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 that create economic value by increasing an organization’s effectiveness and efficiency. A respected thought leader in innovation, Thornberry is a highly sought-after international speaker and consultant. He also serves as the faculty director for innovation 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.

About Neal Thornberry, Ph.D.

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.

Stop by and see us at our booth #1014 Name(s) Address City, State, Zip Age(s) Phone ( ) E-mail The Salvation Army Office of Planned Giving P.O. Box 9219, Seattle, WA 98109 Toll Free: (800) 859-5066 E-mail: nwlegacy@usw.salvationarmy.org Visit: www.salegacygifts.org

Rental Housing Journal On-Site • March 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

Supporting Fair Housing Training

n support of a celebration of National Fair Housing Month during April, WMFHA will be promoting the importance of fair housing through an interactive Facebook campaign intended to bring greater attention to the need for fair housing awareness and commitment. The multifamily housing industry has an obligation to show leadership in supporting and enhancing fair housing practices for all. I urge our members to set an example for the industry by embracing the promotion of fair housing practices and training among our member employees and company leaders. Of course, laws in this area were established by the federal Fair Housing Act (Title VIII of the Civil Rights Act of 1968) and the subsequent Fair Housing Amendments Act of 1988. In addition, Washington State and the City of Seattle, as well as other jurisdictions, have also created additional fair housing regulations. Fair housing is the law. Fair housing is good business. Fair housing compliance makes a statement that this industry is concerned about how we are perceived and what we can do to improve the business practices

and reputation of multifamily housing as a service to all of our customers. Not only is fair housing compliance essential to a risk management program, but compliance with the spirit of these laws is socially just. Know and follow local, state and federal laws and guidance. To support fair housing practices, companies can: - Develop policies and procedures which mandate fair housing practices - Design employee training programs which provide education on the laws - Create a company culture of equity, integrity and impeccable service - Implement consistency, standardization and measurement benchmarks The most important moments to ensure fair housing standards are adhered to are at customer touchpoints: advertising, showing apartment homes, taking applications, application screening, rent collection, maintenance, and policy enforcement. These are the times when staff

need to be the most aware of applicant or resident interactions and the implications of equitable processes. Reliable written documentation is important to show compliance with current laws and practices. Companies should provide refresher training annually to employees in order to stay current and emphasize the importance of strong compliance. The most common areas of particular importance in ensuring fair housing include service animals and reasonable accommodations or reasonable modifications. Managing resident Reasonable Accommodations correctly is a key component to employee training. Fair housing claims surrounding disability are some of the most frequent claims. A requested accommodation is reasonable if it is related to a tenant’s disability, is not an undue administrative or financial burden for the housing provider, and does not fundamentally alter the housing and services the landlord offers. Ensure applicants and residents know of your willingness to consider requests for reasonable accommodations and modifications. Understand the laws related to service animals, which has caused confusion in the past among housing providers.

Employees should know what additional protected classes apply to a property beyond the seven federal protected classes. Treating prospective residents or current residents differently opens up the potential for claims. Ensure your screening is done in accordance with a fact-based, unbiased screening criteria. There are many sources for information regarding fair housing laws and compliance. Join us for a Fair Housing Class to be held on April 23rd at the WMFHA office, or feel free to contact the Washington MultiFamily Housing Association if you need assistance regarding training or policy development. Feel free to also go to this website for assistance w w w. k i n g c o u n t y. g o v / e x e c / CivilRights/FH. We are all lucky to serve residents in our communities and to provide safe, comfortable homes for those looking to rent as a matter of choice. Networking and supporting each other shows our solidarity and commitment. Together, we can demonstrate that we have common goals: to promote the business of affordable rental housing and provide valuable service to our communities.

Wednesday April 29, 2015 8:00am-4:00pm Tukwila Community Center 12424 42nd Ave South Tukwila, WA 98168 $79 | Members

$109 | Non-Members

LEARN FROM THE EXPERTS!      

Pool Chemical Testing and Water Balance Plumbing Repair Annual Maintenance Plans Appliance Repair Water Mitigation Crime Prevention

   

Advances in the Coating Industry Electrical Repair Managing a Successful Onsite Team More!

COMPETE FOR CASH & PRIZES!

    

MAINTENANCE MANIA AWARDS GIVEN FOR  Overall 1st, 2nd, and 3rd.

     

Event Winner 1st, 2nd, and 3rd “BEAT ANGEL” Bounty of $1000! Legends League Champ (20+ Years in industry) Team Award Race Car Awards Win a paid trip to Nationals in Las Vegas!

Toni Blake is a popular international speaker, consultant, author and comedienne inspiring thousands of multifamily apartment industry professionals every year. With over 30 years of training experience, her “laugh while you learn” approach has made Toni one of the most sought-after experts in her field. As a published author, Toni’s ideas have been published in dozens of trade magazines and blogs across the country. Don’t miss her Keynote: Your Determination Determines Your Destination! Traci Brown, a successful collegiate, and TEAM USA cycling champion, never guesses she would find a career in speaking to fortune 500 companies about body language! As an athlete, she became keenly aware that the mind was the primary factor which determined her success. After disappointing results with traditional sports psychology, she discovered Neuro Linguistics (NLP). Her results changed not only her performance, but her life. Upon retirement from racing, she got trained in these disciplines and still coaches clients one on one to create great change in their lives. You will be changed by her presentations!

For exhibitor information, event details and to register: visit www.wmfha.org 16

Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE • 1. Big discount (20 percent or more) on monthly rent for the full term of lease: 68.4 percent

9.3 percent 4. Moving closer or farther away from family: 8.3 percent

• 2. Free rent for a month: 48.7 percent

5. Need a smaller apartment or want to live alone: 7.7 percent Location played a strong role in keeping renters in place, as seven out of 10 renters said they are not moving this year because they like their apartment building and neighborhood. When asked to check all that apply, the top five reasons renters said they are not moving in 2015:

• 3. More space for the same amount of money: 42.3 percent Why are previous homeowners choosing to rent in 2015? Underscoring a growing trend, previous homeowners are turning toward renting. Slightly more than 40 percent of total survey respondents say they have owned in the past. Interestingly, homeownership preferences are split right down the middle in 2015.

1. I like my neighborhood: 36.9 percent 2. I can't afford to move: 34.9 percent

• 49 percent of former homeowners still wish they owned a home

3. I like my apartment building: 34 percent

• 51 percent of former homeowners prefer renting

4. I already moved: 25.8 percent

• 56 percent of renters (who have never owned a home) prefer renting

5. I'm secure in my job: 13.5 percent It should not come as too much of a surprise that bargains are biggest motivators when renters were asked to choose all that apply for getting them to leave their current apartment "immediately," regardless of their original moving plans.

popular responses are ranked below. 1. No unexpected repairs – I'm not responsible for a leaky toilet, clogged sink, etc.: 69.7 percent 2. No/low maintenance – I don't have a driveway to shovel, grass to cut, etc.: 54.5 percent 3. Flexibility to move – I don't want to feel tied down, worry about selling home, etc.: 39.3 percent 4. Renting is more affordable for me than buying: 38.4 percent 5. No unexpected tax increases for the duration of the lease: 30.7 percent 6. I don't want the responsibility of a mortgage (or, I cannot get one): 29.9 percent Urban areas are currently the main focus of developers targeting young renters willing to pay a premium to live in apartment communities

• 44 percent of renters (who have never owned a home) would like to own a home right now When survey respondents were asked to select all the reasons they prefer renting to owning, the most

decked out with lavish amenities. When asked which amenities renters are seeking during their apartment search, air conditioning and appliances topped the list. Top five amenities renters are looking for during their apartment search: • 1. Air conditioning • 2. In-unit washer and dryer • 3. Parking • 4. Dishwasher • 5. Pet-friendly community SOURCE Apartments.com

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

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

877-826-1177

www.cnilocates.com

State specific forms for

arizona, California, Colorado, indiana, KentuCKy, new Jersey, new yorK, oregon, Pennsylvania, texas, utah, washington & More.

5 reasons to use rentegration 5. Value - Large property management compa3. Simplified Accounting - Owners and managnies that use Rentegration.com for only forms ers can track income and expense for each unit, Color Standards for National Tenant Network Logo generation will save time and money over other property and company. Perfect for mid and small • Logosmanagers are provided on and the CDindependent in all three forms: methods. Mid and small size property managsize property rental all black, reversed to white, or in PMS 280 Blue/PMS 7543 Gray spot or 4/color applications. ers and independent rental owners can manowners, who neither have the need or budget for Please see below for specific use examples. age their entire business at a fraction of the cost larger, more expensive • No other colors aresoftware. acceptable for use for the logo. ofthatother • No altering of the logo is allowed. If you have a special circumstance requiressoftware something not and forms. provided on the CD, please- call NTN NaTioNaL HeadquarTerS 4. Management Database Rentegration.com is 1.800.228.0989 for assistance. not be putdriven over a busysoftware. background. an easy to• Logos use,should database Most form fields are auto populated from the database. The modules areBLACK all integrated and work WHITE (with 40% gray circle) together. For example, a customer can use the rent-roll function to identify all delinquencies, apply fees, and create eviction forms with a few simple clicks of the mouse.

1. Access - Rentegration.com is a web based, multi-user software offering customers 24/7 access to forms generation, archives, property management database, basic accounting, vendor ordering and other services. 2. Rental and Lease Forms - Unlimited use of a full line of state specific rental and lease forms. All Rentegration.com forms are created by attorneys and/or local rental housing associations.

OR-RTG-20 Oregon

CHECK-IN/CHECK-OUT CONDIT

ION REPORT

TENANT(S): ____________________ ______________________________ ________________ ADDRESS: ____________________ __________ __________________UNIT: __________ OR-RTG-24 Oregon CITY: ______________________________ ____ _____ STATE: ________ ZIP: __________ _______ Rating

Scale = (E)Excellent (VG) Very Good PET AGREEMENT

TENANT INFORMATION

Out

(G)Good (F)Fair (P)Poor

LIVING AREAS TENANT(S): ____________________________________________________ DATE:________ KITCHEN ADDRESS: ____________________________________________________ UNIT: _________ Walls Walls CITY: _________________________________________ STATE: __________ ZIP: _________ Windows

Out

Refrigerator

Floor

Disposal

Counter Tops

AGREEMENT

Cabinets

Locks

Ceilings

TV Antenna/Cable

1) The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the Blinds/Drapes tenant’s dwelling Fireplace unit. 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly. Cleanliness 3) Tenant(s) are responsible for the conduct of their pet(s) at all times. 4) Tenant(s) are liable for all damages caused by their pet(s). 5) Tenant(s) shall pay the additional security deposit listed above and/or their rental BEDROOM agreement as a condition to keeping the pet(s) listed above. 1 BEDROOM 2 6) Tenant(s) shall not allow their pets to cause any sort of disturbance or injury to the Walls Walls other tenants, guests, landlord or any other persons lawfully on the premises. Windows report to landlord any type of damage or injury caused by 7) Tenant(s) shall immediately Windows their pet. Blinds/Drapes 8) This agreement is incorporated into and shall become part of Blinds/Drapes the rental agreement exe -cuted between the parties. Failure by tenant to comply with any part of this agreement Rods shall constitute a material breach of the rental agreement. Rods _____________________________ Light Fixtures Landlord

Floor

______________________________ Light Fixtures Tenant ______________________________ Doors/Woodwork Tenant Locks

Electric Outlets

Landlord

BATH ROOM

Floor

Refrigerator

Metho Ice Traysd

Toilet

Shelves/Drawer

Tub/Shower

Disposal

Dishwasher Counter Tops

Locks

Floor Electric Outlets

Post and Mail:

Floor nal day for compl iance if served by Light Fixtures

TV Antenna/Cable Essential

Ceilings Electric Outlets

Floor

Blinds/Drapes

Plumbing

BATH ROOM

Cleanliness Heating

Towel Bars

Electricity

Sink & Vanity

BEDROOM 1

Hot Water

Walls

BEDROOM 2

Smoke Detectors

NO PORTION of

Rods

permission.

Blinds/Drapes

Floor

Fan (Exhaust)

this form may Floor be

reproduced without

Electric Outlets

Rods

Rental Housing Journal On-Site • March 2015

Light Fixtures

Doors/Woodwork

Locks Ceilings

Hot Water

Smoke Detector

ON of this form may

uNaCCePTaBLe CoLor uSaGe

Electricity

Electric Outlets s

written permission.

Heating

Ceilings

Electrical Outlets

Essential Service Plumbing

Locks

Smoke Detector

503-933-6437

Light Fixtures

Floor

Light Fixtures

Toilet

Tub/Shower

Walls

Blinds/Drapes

may be reproduced without written

www.rentegration.com

Smoke Detector

Windows

Services

post and mail.

Doors/Woodwork Locks

Cabinets Sink

Light Fixtures Electrical Outlets Garbage Cans

Fireplace

Phone

Windows Blinds/Drapes

of Service: Person al Servic e: Rods

* Add one additio

Carpet/Vinyl/Woo d Light Fixtures

Ceilings

Walls

Stove/Racks

Towel Bars

Sink & Vanity

Fan (Exhaust) Doors/Woodwork

Windows

PMS 280/PMS 7543 over color

BEDROOM 3

Walls

Windows

Blinds/Drapes Rods

sales@rentegration.com Doors/Woodwork

Locks

Ceilings

Exclusive Partner of: BlueIndustry PMS 280/Gray PMS 7543

____________

Tenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) Sink understands that the additional pet(s) are not permitted unless the landlord gives ten Electrical Outlets ant(s) written permission. Tenant(s) agree to keep the above-listedFloor pets in the premises Garbage subject to the following terms and Cans conditions: Windows

Floor

landlord or their agents unit and premises located at (Address) __________________ will be CHECK-IN/CHEC __________________ K-OUT CON DITION REP______ ORT________________________

Light Fixtures TENANT(S) between the hours : _______________ of (Date) and __________ Doors/Woodwork ADDRESS: . _______________ _______________ _______________ (Time) _______________ (Time) __________ CITY: _____ _______________ _ Locks __________ The entry will occur ___UNIT: __________ __________ for the following __________ STATE ____ purpose: : ________ ZIP: ____________ Rating Scale Ceilings= (E)Exc ______ _______________ ______ ellent (VG) Very ____________ __ ______Good __________________ ____________ (G)Good (F)Fai ______ ______ Electric Outlets r ______ __________________ (P)Poo IN ______r____________ Out __________________ LIVING AREAS In Out ____________ KITCHEN In Out Walls

3) Type _______________ Breed _______________ Light Fixtures Size ______ Age __ Weight ___ Color ____ Name ________ Dishwasher Vaccinations: Yes____ No____ License Number: ______________ Additional Security Deposit Required:$

Pursuant to RCW 59.18.150, this is your WA-RTG-20 Washin 48 hour entering the dwellin gton notice that your g

Blinds/Drapes Rods

Shelves/Drawer

2) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ Carpet/Vinyl/Wo License Number: ______________ od

Doors/Woodwork

48-HOUR NOTICE OF ENTRY

Windows

Rods 1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Ice Trays Vaccinations: Yes____ No____ License Number: ______________ Floor

BEDROOM 3

ton

TENANT(S): ______ __________________ __________________ ADDRESS: ______ __________________ __________ DATE Out :________ __________________ CITY: ____________ __________ UNIT: __________________ _________ ___________ STATE : __________ ZIP: _________

Walls

Stove/Racks

DESCRIPTION OF PET(S)Blinds/Drapes

WA-RTG-40 Washing

48-HOUR NOTICE OF ENTRY

be reproduced without

do NoT change the color

do NoT alter in any way

do NoT put over a busy background

RENTAL HOUSING JOURNAL ON-SITE

Th Ask

Secret Shopper

Northwest

any apartment communities have staff changes on the weekends. Some property management companies use part-time leasing consultants or “floaters” to fill in on the weekends or to work back and forth between two or more communities. This can be a great partnership and help w keep payroll expenses down OR it can cost rentals at your community. It all depends on quality communication, as the following question will attest: Q: I was hired to be a “floater” at

several different properties. While I love the variety, I really don’t feel like I am an important part of the staff at any of the places where I work. I am not always kept current on apartment availability or the status of different problems that come up. When I ask questions to try to keep myself informed, many times I am told: “Don’t worry about it. You’re only here on the weekends.” I feel frustrated, but don’t know what I can do. A: It sounds to me like you are on a team that has not filled you in on the game plan! This is very unfortunate, especially in a business

where there can be moment by moment changes, due to rentals, resident problems and maintenance emergencies. I would advise you to put your concerns in writing; in a positive manner; and share them with the manager and/or property supervisor. For those of you who actively employ “floaters” orwwho share employees between properties, I would recommend leaving detailed notes on a weekly basis to recap what has happened in their absence. Of course whenever possible, these employees should be included in staff meetings and receive copies of correspondence which will keep them up to date on the happenings at each of the communities where they work. How do you make sure that the same quality of service being provided Monday through Friday carries over on the weekend? What happens when a manager or leasing consultant goes on vacation or gets sick, and someone from another community fills in? Do you have an established way to communicate what is rent ready, as well as any pending resident issues? It’s hard to function as a team if all the players

are not “well-equipped.” Ultimately, the ability to communicate effectively with part-time or weekend staff could make or break your leasing ratio for the week. After all, the weekends are typically the busiest days for apartment hunting. Are your part-timers and weekend floaters fixing to “fumble the ball” or have they been set up to “score rentals?” If you are interested in leasing training or have a question or concern that you would like to see addressed, please reach out to me via e-mail. Otherwise, please contact Jancyn for your employee evaluation needs: www.jancyn.com ASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica Former owner of Shoptalk Service Evaluations Consultant to Jancyn Evaluation Shops Phone: 425-424-8870 E-mail: shptalk2@gmail.com Copyright Joyce (Kirby) Bica

DO YOU HAVE A “BACKUP” PLAN?

Putting the WASH w back into WASHington!

FROM CRAPPY TO HAPPY!!!

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. 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

FLOHAWKS.COM 1

WS15-098 WASH in Washington 4_875x7_5 4c.indd 1

10/21/14 10:27 AM

FLOHAWKS.COM 2

Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE

Strong Job Growth Foreshadows Solid FullYear Economic Growth Robust Hiring and Firming Income Growth Expected to Boost Housing Recovery

he economy is poised for a pickup in growth in 2015 amid a strengthening employment sector, rising income growth, and declining commodity prices, according to Fannie Mae's Economic & Strategic Research (ESR) Group. The labor market has started the year on an upbeat note and is expected to lift consumer confidence, in turn helping to boost consumer spending, manufacturing activity, and the pace of the housing recovery. Economic growth may face some headwinds as a strong U.S. dollar weighs on the trade deficit. However, the economy is expected to climb to 2.9 percent for the full year, up from 2.5 percent growth in 2014. "Our forecast calls for an increase in economic growth to 2.9 percent for 2015, which is a slight downward adjustment from our prior forecast but solid improvement nonetheless," said Fannie Mae Chief Economist

Doug Duncan. "Although we are beginning this year at a more modest pace compared to the above-trend numbers seen at mid-year 2014, the country's aggregate income has benefitted from the improving labor market, which, combined with low gasoline prices, should help drive higher auto sales and overall consumer spending throughout 2015." "We expect housing to shift up a gear in 2015 following the uneven and ultimately disappointing activity last year," said Duncan. "Our forecast calls for a number of factors, including strong hiring and income growth, stabilized housing affordability, and modestly easing lending standards, to translate into improving housing demand throughout the year. We continue to anticipate that the Fed will begin to hike short-term interest rates later this year, although weak global economic growth and geopolitical headwinds will likely

limit the rise in long-term interest rates. We expect total home sales to increase by approximately 6.0 percent for 2015, with total single-family mortgage production climbing to approximately $1.2 trillion. Total single-family mortgage debt outstanding should be relatively flat this year before picking up gradually in 2016 and 2017."

SOURCE Fannie Mae

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

Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE

Market Overview Seattle ...continued from front page trimmed headcounts. Broad seasonally-adjusted data also exhibited a degree of weakness toward year-end. While quarter-toquarter comparisons showed a strong 12,300-job advance during 4Q14, December headcounts declined -400 jobs month-to-month, the first net payroll decline in a December period since the Great Recession. RCR’s Seattle payroll model remains bullish regarding metro job creation. Our latest macroeconomic models forecast a constructive U.S. economic backdrop characterized by moderate GDP and employment growth and low inflation and interest rates for the 5- year forecast period. This environment should provide plenty of lift under Seattle’s wings, giving rise to strong demand for capital goods and consumer electronics. Our 95.1% adj-R2 model projects 2% or faster growth through 2019, with net gains of 40,000 jobs or more in 2015 and 2016. PAYROLL JOB SUMMARY Total Payrolls 1,578.7m Annual Change 51.9m (3.4%) 2015 Forecast 50.2m (3.2%) 2016 Forecast 43.5m (2.7%) 2017 Forecast 37.0m (2.2%) 2018 Forecast 37.5m (2.2%) Unemployment 4.2% (Dec.) (NSA)

4Q14 Absorption and Occupancy Rate Trends Tenants continued to express healthy demand for Seattle apartment space, absorbing a net of 1,261 vacant units, according to Reis. Although down slightly from the same period of 2013, unit demand increased significantly from the seasonally stronger third quarter when 846 units were net leased. But substantial supply (1,548 units) again counterbalanced demand, trimming occupancy for the fourth consecutive quarter, in this case from 95.5% to 95.4%. Axiometrics surveys of larger, stabilized properties recorded 4Q14 occupancy averaging 95.1%, down 60 basis points sequentially, but up 20 bps y-o-y. Occupancy was consistent across classes, led by class-C (95.3%) properties, followed closely by class-B (95.1%) and class-A (95.0%). The sharp sequential decrease in overall occupancy was largely attributable to the class-B segment, perhaps due to competitive pressure from new class-B+ and –A supply. Nonetheless, robust demand persisted for new units: properties in lease-up absorbed an average of 14 units per month, translating to a typical 12-month lease-up to 95% or higher occupancy. Supply will continue to exert downward occupancy pressure in 2015, trimming the metro average another 50 bps, according to our models. But supply levels will begin

to recede in 2016, allowing occupancy to recover lost ground into mid2017. Occupancy should return to the low– to mid-95% range by that time. OCCUPANCY RATE SUMMARY Occupancy Rate 95.4% (Reis) RED 50 Rank 32nd Annual Chg. (Reis) -0.2% RCR YE15 Forecast 94.9% RCR YE16 Forecast 95.2% RCR YE17 Forecast 95.2% RCR YE18 Forecast 95.1% 4Q14 Effective Rent Trends Reis report that Seattle asking and effective rents increased $23 (1.1%) sequentially, producing 5.9% and 6.0% year-over-year gains, respectively. Class-A made the largest contribution: the segment outpaced rent growth among class-B&C properties 6.0% to 4.1%. Larger apartments surveyed by Axiometrics posted faster gains. This service found stabilized property rents averaged $1,509, up 8.0% y-o-y, moderately slower than 3Q14’s strong 9.0% advance but up from 7.6% in the comparable period of 2013. By class, “”A” properties notched the fastest growth, gaining 8.1%, followed closely by the class-B (R7.1%) and class-C (7.2%) segments. Properties completed since 2013

recorded considerably slower than average rent growth. Thirty-seven recently completed properties surveyed at least since 4Q13 showed average y-o-y rent growth of 1.6%. Downtown and North Seattle properties posted the weakest results, with nine reporting average rent decreases. The RCR rent model finds that 95.2% of the change in y-o-y rent growth in Seattle is determined by five lags of the dependent variable and lags of change in average vacancy and payroll job growth. The model forecasts 5.0% compound annual rent growth through 2019, ranking 5th fastest among the RED 46 markets. EFFECTIVE RENT SUMMARY Mean Rent (Reis) $1,210 Annual Change 6.0% RED 50 Rent 5th Change Rank RCR YE15 Forecast 5.3% RCR YE16 Forecast 5.1% RCR YE17 Forecast 4.8% RCR YE18 Forecast 4.2% 4Q14 Property Markets and Total Returns Investor demand for Seattle metro properties continued at a high level during the fourth quarter as 30 properties valued at $5 million or more exchanged hands for total proceeds

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

WA Lic # TPOINCL878PB

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 Loeffler Law Group PLLC

T (206) 443 - 8678 20

Timely

Effective

500 Union St, Ste 1025, Seattle, 98101

www.loefflerlawgroup.com

Tenant Screening just got easier...

•

Streamline the tenant screening process – we provide the tools

•

No fees, paperwork or site

necessary to authenticate one another, order and share reports, all from your MyScreeningReport.com dashboard.

•

Quality comprehensive reports

•

Secure report sharing platform

•

Customer support 7 days a week

inspections

Landlord Tenant Relations & Disputes Lease Drafting & Review

LANDLORD

APPLICANT

LANDLORD

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.

Signs Up

No Charge!

Invites

applicant to apply

Signs Up

and orders report

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 • March 2015

RENTAL HOUSING JOURNAL ON-SITE

Market Overview Seattle ...continued from page 20 of $796.4mm. Proceeds were down slightly from the prior quarter ($810.8mm), but sales velocity was up (from 26 trades), as was the average unit price metric ($240,532 vs. $229,424). Indeed, 4Q14 was the second highest quarter for trade velocity observed in the Seattle market after 4Q12; the third highest with respect to total proceeds; and the highest in terms of average price per unit. Private equity and private owner/ manager players made up the lion’s

share of buyers. The largest public REIT also participated, topping the price per unit parade with a $60.9mm acquisition of a South Lake Union mid-rise at a $378,261 average unit price. RCR estimate a cap rate in the high 3% area. Trophies traded in the high-3% to low 4% range, Investment quality class-B+/A– properties exchanged hands in the mid-4s (infill) to mid-5s (suburban). RCR’s revised macroeconomic outlook is constructive for Seattle investments. Our models now antici-

pate a steady, moderate growth economy with low inflation and only moderate increases in term interest rates. This backdrop in expected to produce consistently strong rent growth and stable occupancy, coupled with only a 70 bps increase in cap rates over the 5-year hold. As a result, we now project a 9.1% unlevered total return, ranking 12th among the RED 50, up from 40th in our last analysis.

TRADE & RETURN SUMMARY $5mm+ Sales 30 Approx. Proceeds $796.4mm Avg. Cap Rate 6.4% (FNM) Avg. Price/Unit $240,532 Expected Total 9.1% Return RED 46 ETR Rank 12th Risk-adjusted Index 4.20 RED 46 RAI Rank 38th

Submarket Trends Submarket

Notable Transactions

4Q14

Change

3Q13

4Q14

Change

Auburn / Enumclaw

$845

$872

3.2%

2.7%

1.4%

-130 bps

Beacon Hill / Rainier

$1,009

$1,114

10.4%

5.9%

4.9%

-100 bps

6.0%

Bellevue / Issaquah

$1,364

$1,426

4.5%

5.4%

4.8%

-60 bps

Bothell

$1,115

$1,185

6.2%

3.4%

6.2%

280 bps

$893

$932

4.4%

2.4%

2.9%

50 bps

5.6%

Des Moines /West Kent Downtown / Capitol Hill

$1,605

$1,731

7.8%

7.6%

8.8%

120 bps

Edmonds / Lynnwood

$953

$1,002

5.1%

3.9%

2.9%

-100 bps

Everett / Mukiltio

$966

$994

2.9%

4.2%

3.2%

-100 bps

Federal Way

$920

$953

3.6%

3.0%

2.4%

-60 bps

Kent

$913

$988

8.2%

2.4%

1.8%

-60 bps

Kirkland / Juanita

$1,329

$1,466

10.3%

4.5%

3.5%

-100 bps

North Seattle

$1,198

$1,256

4.8%

5.6%

8.2%

260 bps

Redmond

$1,274

$1,345

5.6%

5.3%

2.8%

-250 bps

Renton

$988

$1,010

2.3%

2.8%

1.9%

-90 bps

Tukwila / Sea-Tac

$804

$821

2.1%

1.8%

1.2%

-60 bps

West Seattle / Burien

$949

$1,000

5.3%

4.4%

0 bps

Metro

$703

$727

3.4%

4.7%

4.9%

20 bps

Approx. Date of Transaction

Total Price / (in millions)

Price / per unit

Estimated Cap Rate

Martha Lake (Renton)

C / GLR (1991)

25-Nov2014

$20.3

$130,968

Park West at Somerset (Bellevue)

B / GLR (1986)

2-Dec-2014

Elan RichB+ / MR mond Town (2014) Center (Redmond)

9-Dec-2014

Alcyone Apts. (Downtown/ Queen Anne)

A- / MR (2004)

19-Dec-2014 $80.9

Park Metro (Bellevue)

A- / MR (2014

3-Feb-2015

$49.9

$29.0

$270,879

$372,388

$378,261

$372,013

Physical Vacancy

4Q13

Property Property Name (Sub- Class/Type market) (Constr.)

$29.3

Effective Rent

4.4%

3.7%

4.9%

The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED Capital Group. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors.

Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE

Maintenance Summit Education Conference and Trade Show Exhibition Hosted by the Washington Multi-Family Housing Association Featuring the Maintenance Mania® competition

Wednesday, April 29th, 2015 8:30 a.m. – 4:00 p.m.

Tukwila Community Center -12424 42nd Ave. S, Tukwila, WA 98188 EDUCATION • TRAINING • TRADE SHOW • MAINTENANCE COMPETITION

ONE LOW PRICE GETS YOU INTO EVERYTHING!! $79

| Members $109 | Non-Members Hot breakfast and lunch included!!

There are eight events that are standard for all Maintenance Mania® programs. Each race is open to every Maintenance Mania® participant. 1 AO Smith Water Heater Installation 2 CFG Faucet Installation 3 Fluidmaster Duo Flush Toilet Conversion 4 Kidde Fire & Carbon Monoxide Safety Installation 5 Frigidaire Ice Maker Installation 6 Kwikset Key Control Deadbolt Test 7 Seasons Ceiling Fan Installation 8 Motorola and Niagra Conservation Race Car Competition *To qualify for the National Championship, you must complete all eight events

Event Timeline: Time 8:00 a.m. – 8:30 a.m. 8:30 – 9:00 9:00 – 10:00

10:00 – 10:30 10:30 – 11:30

11:30 – 12:00 12:00 – 12:30 12:30 – 1:30

Event Registration/Breakfast Trade Show Floor Opens Technical Courses Basic Pool Maintenance Plumbing Repair Techniques & Tips

George Hutchins Lance Shippy and Chris Blamire,

Creating an Annual Maintenance Plan

Roto-Rooter Zach Howell, Cascade Management

for Multifamily Properties GE Appliance Repair (Refrigerator) Visit the Trade Show Floor Technical Courses Pool Equipment and Filtration Electrical Repair – Troubleshooting

John Weston, GE Appliance

George Hutchins Dane Sydow, Essex

Lost Power How to Train Your Office Team

Clayton Williams & Megan Vallor, The

GE Appliance Repair (Washers/

Wave/The Nolo, Pillar Properties John Weston, GE Appliance

Dryers) Visit the Trade Show Floor Lunch Technical Courses Advancements in the Coatings

Scott Jenkins - Behr/Kilz

Industry Water Damage Awareness and

Brendan Kimmel, Legend Brands

Approach Crime Prevention Through

Zach Howell, Cascade Management

Environmental Design GE Appliance Repair (Dishwasher &

John Weston, GE Appliance

1:30 – 2:00

Ranges) Visit the Trade Show Floor

2:00 – 4:00 4:00

Maintenance Mania Competition Awards, Prizes, Wrap Up

Speakers

oin your service team peers for a day of hands-on education and skill building classes in plumbing, electrical repair, appliance repair, pools, painting techniques, moisture detection, management skills and More! Make your way around the trade show floor and visit with the best products and services vendors in the industry. Support your industry and others in your profession. Learn new valuable service techniques that can be implemented at your property to benefit your owner and residents. Ask any property manager and they will tell you—Service Teams are the backbone of the multifamily industry. Day-in and day-out, our Maintenance Techs, Groundskeepers, Lead Techs and Maintenance Supervisors keep our residents happy and our properties running smoothly. In recognition of the valuable role they play, the National Apartment Association (NAA) commenced its nationwide maintenance competition, Maintenance Mania®, and the Washington Multi-Family Housing Association said, “Bring on the heat!” The day concludes with the Maintenance Mania competition, with an opportunity to qualify for the national Maintenance Mania competition in Las Vegas at the National Apartment Association Education Conference. Racing against the clock, you will compete against each other to see who is the fastest in eight maintenance-focused challenges. The finale of the event concludes with a race car competition, where the competitors build a model car using at least one maintenance product or part and race it down a pinewood derby-style track. Cash prizes are offered for top times, including a $1,000 bonus for the best overall time. ...continued on page 23 Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE

Class Descriptions & Speakers: Maintenance Summit Education Conference and Trade Show Exhibition

9:00 a.m. – 10:00 a.m. Basic Pool Maintenance: Basic pool maintenance with a strong emphasis on pool safety. Attendees should come away with an understanding of pool and spa liability prevention and operator and resident safety. Perfect for new maintenance personnel with a basic exposure to pool care and safe operation. George Hutchins, HD Supply Regional Trainer George has spent the past 15 years in all phases of the multifamily residential industry. Starting in the industry as a groundskeeper, George steadily worked his way up, holding positions as a Leasing Agent, Assistant Property Manager, Property Manager, Maintenance Technician, Maintenance Manager and Senior Maintenance Manager providing him with a unique overview of the apartment maintenance industry. Plumbing Repair Techniques & Tips: Water Heater repair tips, tricks and best practices. There will be a “Stump the Professional Plumbers” segment, so bring your questions, plumbing concerns and find the right answer from two seasoned industry professionals. Chris Blamire, Roto-Rooter Services Co. Plumbing Manager Chris has been in the Seattle/Tacoma area as the Plumbing Manager for RotoRooter for the last 17 years. He has a vast knowledge in Service, Commercial and New Construction Plumbing. Chris is a Licensed Journeyman Plumber in Washington State and Canada. Lance Shippy, Roto-Rooter Services Co. Commercial Manager Lance has been in the service plumbing industry for the last 20 years in the Seattle/ Tacoma area. He has specialized in service plumbRental Housing Journal On-Site • March 2015

ing and excavations repairs. Lance is a Licensed Journeyman Plumber in Washington State and a Licensed Gas Flex installer.

John Weston, GE Appliance Regional Training Manager

Creating an Annual Maintenance Plan for Multifamily Properties: This course will help outline what your site staff should be looking for when developing property annual maintenance plans. We will discuss the generation plans using pictures, known histories, current issues, and other resources in order to create a feasible, usable, and measurable annual maintenance plan that will break down into month by month outlines that define who is responsible for regular, scheduled, and seasonal maintenance tasks that must be addressed each year in order to properly maintain a sustainable multifamily property.

John has over 30 years of experience in the appliance industry. He started his career with GE in 1981 as a Service Technician. Spending 20 years servicing appliances has given John a deep knowledge of appliances. The past 13 years John has used his skill set to assist with Appliance Maintenance and Basic Appliance Repair training classes, helping his students build a stronger technical skill set. John is an Area Sales Manager in San Francisco and is also the Northwest Regional Training Manager for GE. 10:30

Zach Howell, CAMT, Cascade Management Director, Maintenance Operations Zach is a Certified Apartment Maintenance Technician (CAMT) with more than a decade of experience in the multifamily housing and construction industries. Zach has served as subject matter expert for the National Apartment Association, Training Director for The Apartment Maintenance Institute, and a Community Education Faculty Member at Portland Community College. GE Appliance Repair (Refrigerator): In this class you will learn to diagnose all typical refrigerator failures including the self-defrosting system, fan motors, thermostats, and compressor components to name a few. We will discuss in detail maintenance and proper use and care for tenants to promote longevity of many of the components requiring cleaning on a regular basis. Basic understanding of a Volt/Ohm meter will be discussed to aid the attendee in understanding fundamental meter reading skills.

10:30 a.m. – 11:30 a.m. Pool Equipment and Filtration: This course’s main focus will be on pool equipment operation and filtration with limited information on chemical requirements for pool operation and sanitation. George Hutchins, HD Supply Regional Trainer George has spent the past 15 years in all phases of the multifamily residential industry. Starting in the industry as a groundskeeper, George steadily worked his way up, holding positions as a Leasing Agent, Assistant Property Manager, Property Manager, Maintenance Technician, Maintenance Manager and Senior Maintenance Manager providing him with a unique overview of the apartment maintenance industry. Troubleshooting Lost Power: Learn the power grid basic overview of how power gets from the generating plant to the apartment. Review critical electrical terminology: Volts, Amps, Ohms, Hot, Neutral, Ground, Branch Circuit, AC Power. We’ll also discuss troubleshooting breakers – explore the 3 things that can make a breaker trip. Review junction boxes and lost neutral connections - troubleshooting strategy for resolving lost power in exterior lighting.

Dane Sydow, Essex Property Trust Training Manager Dane started his career in residential property management in the mid 90’s as a Porter at a mid-rise lease up community in Seattle, WA. Since then he has served the residential property management community in a variety of capacities. From Maintenance Supervisor to Maintenance Recruiter to his current position of Training Manager with Essex Property Trust, he has exhibited an undying passion for putting people in touch with the resources that will have a positive impact on their career growth. How to Train Your Office Team: The purpose of this presentation is to help you define your idea of a highperforming office team, get you focused, passionate, and cohesively working together because you are one team. This class will help you to create a high-functioning, quality service, unified team, all driven by communication and support of each other, what we like to call teamwork! Megan Vallor, Pillar Properties Property Manager, Stadium Place Megan started her career in Property Management in 2005 as a leasing agent. While she is currently the property manager at the brand new Stadium Place development in Seattle, her passion for property management started at a renovation community in Redmond which featured many maintenance challenges including lead and asbestos remediation. With a focus on maintenance and team work, she led a team of four to complete an extensive interior and exterior renovation of 156 units and was honored with the Essex Hard Hat Award for outstanding renovation management.

Clayton Williams, CAMT, Pillar Properties Senior Maintenance Supervisor Pillar Properties’ Senior Maintenance Supervisor, Clayton Williams, received his college degree in Building and Plant Maintenance from Lake Washington Technical College. Clayton’s expertise utilizing standardization practices, publications and quality assurance have proven time and time again to be extremely beneficial in the multifamily housing industry. For Clayton, finding more efficient and safer means to perform everyday duties stem from his military background and play a big role in how he works with people and in his overall performance as a Sr. Maintenance Supervisor. Clayton’s valuable expertise, licenses and certificates—including Refrigeration Operating Engineers License C, EPA 608 Type III and being a Certified Apartment Maintenance Technician— combined with his Building Operating Engineer experience make Clayton a very valuable asset to the multifamily housing industry. GE Appliance Repair (Washers/Dryers): In this class the participant will learn the basics of cleaning and repair of the unitized laundry center. Cleaning of lint from the dryer vent and strategic parts of the dryer to maintain safe operation will be covered along with other maintenance critical to maintaining longevity. Repair and replacement of parts with high failure rates will be covered in detail. Complete disassembly of a laundry unit will take place for a first hand real world experience for the participant. John Weston, GE Appliance Regional Training Manager John has over 30 years of experience in the appliance industry. He started his career with GE in 1981 as a Service Technician. Spending 20 years servicing appliances has given John a deep knowledge of appliances. The past 13 years John has used his skill set to assist with Appliance Maintenance and Basic Appliance Repair train...continued on page 24 23

RENTAL HOUSING JOURNAL ON-SITE Maintenance Summit Education Conference and Trade Show Exhibition ing classes, helping his students build a stronger technical skill set. John is an Area Sales Manager in San Francisco and is also the Northwest Regional Training Manager for GE. 12:30 p.m. – 1:30 p.m. Advancements in the Coatings Industry: The introduction of nanotechnology to the paint industry. How the race in the paint industry is to provide the most protection and coverage with the fewest number of gallons. Discussion of labor vs. material costs. New Advancements in primer technologies, discussion of how those advancements affect performance as well as the environment. We will touch on oil based vs. water based primers and where the primer industry is headed.

Scott Jenkins, Behr/Kilz Regional Pro Trainer Scott has been in the paint industry for 25 years, starting as a Delivery Driver and working his way to Store Manager. He managed paint stores in California for 6 years before joining the Outside Sales Team. While in Texas he became an Estimator and Project Manager for a large commercial painting firm in Arlington Texas. Scott has worked closely with General Contractors, Engineers and Architects, Property Managers and Maintenance Supervisors and Maintenance Crews. Scott joined the Behr Team 2 years ago as a National Trainer, and was designated "Pro Trainer" shortly after joining Behr due to his experience and background. Water Damage Awareness and Approach: Water’s behavior, migration, and absorption, effects of unaddressed intrusions, contaminated water, indoor air quality, proper response

and evaluation, professional expectations and practices, drying in the commercial setting, mix of equipment, innovations to accommodate activities in the restoration environment. Brendan Kimmel – Legend Brands Technical Training Instructor Brendan Kimmel managed a full service cleaning and disaster restoration firm for 6 years in the greater Seattle area. He joined Restoration Sciences Academy in 2008, and presently serves as the resident instructor for the water damage restoration programs there. Brendan is a prolific water damage restoration instructor, teaching classroom and hands-on certification programs in many U.S. States as well as Canada. When not teaching classes, he participates in industry events, conducts research, and technically assists restoration professionals in challenging drying projects. Brendan is an IICRC Approved Instructor, Master

Water Restorer, Master Fire and Smoke Restorer, Applied Microbial Remediation Technician and Master Textile Cleaner. Crime Prevention Through Environmental Design: CPTED (pronounced septed) is a crime control philosophy that attempts to apply physical design, citizen participation and law enforcement strategies in a comprehensive way to protect facilities or neighborhoods. The goal of CPTED is to reduce the opportunity for crime to occur. It is a series of design principles that, when properly employed, serve to eliminate criminal behavior and improve the quality of life through the reduction of fear of crime. Employing physical design features and space management strategies that discourage criminal activity, while at the same time encouraging the legitimate use of the location achieve this reduction in criminal opportunities. This class will look at how the Maintenance and Management staff can implement the CPTED principles

to crime prevention. Zach Howell, CAMT, Cascade Management Director, Maintenance Operations Zach is a Certified Apartment Maintenance Technician (CAMT) with more than a decade of experience in the multifamily housing and construction industries. Zach has served as subject matter expert for the National Apartment Association, Training Director for The Apartment Maintenance Institute, and a Community Education Faculty Member at Portland Community College. GE Appliance Repair (Dishwasher & Ranges): All new dishwashers have internal inherent energy reduction changes based on DOE regulations. During this class you will learn how these changes are implemented into the new dishwasher wash system. We will also cover dish and glassware cleaning complaints, and how to determine component fault and diagnosis. ...continued on page 25

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 24

Rental Housing Journal On-Site • March 2015

2014 PROFESSIONAL PUBLISHING, INC

RENTAL HOUSING JOURNAL ON-SITE Maintenance Summit Education Conference and Trade Show Exhibition

...continued on page 26

John Weston, GE Appliance Regional Training Manager John has over 30 years of experience in the appliance industry. He started his career with GE in 1981 as a Service Technician. Spending 20 years servicing appliances has given John a deep knowledge of appliances. The past 13 years John has used his skill set to assist with Appliance Maintenance and Basic Appliance Repair training classes, helping his students build a stronger technical skill set. John is an Area Sales Manager in San Francisco and is also the Northwest Regional Training Manager for GE.

See You at The Maintenance Summit Education Conference and Trade Show Exhibition Wednesday, April 29th

Inexpensive Ways to Attract Good Residents

n the world of investing there’s an old adage: “Money goes where it’s treated best”. The same could be said for the best residents. As the world of rental properties become more competitive a new adage is “Good residents move to where they are treated best”. A “good resident” is one that has an outstanding credit history, takes good care of the places they rent, and tends to stay put for an extended period of time. Property managers want to find and keep them. One inexpensive way to do this is to reward their good track record. This is an effective method to reinforce positive behavior as well. Offer an end-of-the-year “rebate” to residents who have an excellent record of paying rent on-time. You might also consider a “thank you incentive” at the end of their annual lease or start date. More owners are willing to consider offering an at least a 3% annual discount to prospects who either pay a year’s worth of rent or pay on a semi-annual basis. That’s better than the yield of a 10-year bond! Also make it a policy to discourage your owner-clients from renting to relatives or friends. Unless you don’t need the rent or the relation-

ship reconsider such decisions which invariably backfire. One of my readers reminded me of this important, prudent policy when she wrote, “Five years ago I made a mistake letting my daughter move in to one of my rental units. “Half the time I am pulling and fighting for her to pay the $1000.00 rent for a two bedroom apt. I am planning to evict through a court order.” A no-cost preventive policy would have saved a small fortune. Here are some other ways to attract good renters to fill any vacancies you have. 1. Make the bathrooms look sparkling clean, sanitized, updated.

Replace discolored caulking, grouting, rust, and deteriorating plumbing. Be sure the lighting is more than adequate. 2. One manager suggested tile backsplash be installed in kitchens and bathrooms. She said, “It looks awesome, cleans easily, protects walls, adds color/interest, reduces painting.” 3. Old English scratch cover and polish make wood cabinets, wood floors look new again. Replace damaged areas, burns, stains, or other unsightly areas of the kitchen counters. You’ll recoup the cost with a justifiable rental rate plus attract more of ...continued on page 27

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

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

POTHOLES • DRIVEWAYS PARKING LOTS • HOA ROADS

800-595-0253 www.dynamicss.com Rental Housing Journal On-Site • March 2015

425-232-5190 Licensed • Bonded • Insured

RENTAL HOUSING JOURNAL ON-SITE

Attract Good Residents ...continued from page 25 the good residents. 4. Units that smell naturally pleasant are more inviting. A reader shared that they like to use subtle air fresheners/deodorizers with neutral smells like “clean laundry”, a very subtle pine, cinnamon, or gingerbread to make it feel homey. The key is to always keep the scent subtle. An overwhelming scent can be just as offensive as an unpleasant one. 5. Paint the unit numbers on designated parking spots. Make certain the parking area has good

security lighting which also pertains to halls, landings, and all common areas.

Outstanding residents will want to live where they are treated best. If you want to attract and keep them go out of your way as property managers to make them feel appreciated. by Marc Courtenay Published Courtesy of PropertyManager.com

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

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

Coin • Card Rent • Lease

HAINSWORTH LAUNDRY COMPANY

Life’s Good

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

Rental Housing Journal On-Site • March 2015

RENTAL HOUSING JOURNAL ON-SITE

Attract Good Residents ...continued from page 25 ability issues if their incomes aren't compensating for the gains in home prices." The National Association of RealtorsÂŽ, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries. 1Areas are generally metropolitan statistical areas as defined by the U.S. Office of Management and Budget. NAR adheres to the OMB definitions, although in some areas an exact match is not possible from the available data. A list of counties included in MSA definitions is available at: http://www.census.gov/population/estimates/metro-city/List4.txt. Regional median home prices are from a separate sampling that includes rural areas and portions of some smaller metros that are not included in this report; the regional percentage changes do not necessarily parallel changes in the larger metro areas. The only valid comparisons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-toquarter comparisons do not compensate for seasonal changes, especially for the timing of family buying patterns. Median price measurement reflects the types of homes that are selling during the quarter and can be skewed at times by changes in the

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

sales mix. For example, changes in the level of distressed sales, which are heavily discounted, can vary notably in given markets and may affect percentage comparisons. Annual price measures generally smooth out any quarterly swings. NAR began tracking of metropolitan area median single-family home prices in 1979; the metro area condo price series dates back to 1989. Because there is a concentration of condos in high-cost metro areas, the national median condo price often is higher than the median single-family price. In a given market area, condos typically cost less than single-family homes. As the reporting sample expands in the future, additional areas will be included in the condo price report. 2According to the U.S. Bureau of Labor Statistics, actual market rents paid by individuals who do not own the home they live in rose by 3.4 percent in January from January 2014 â&#x20AC;&#x201C; the 10th consecutive month of growth above 3 percent. 3The median existing-home price for all housing types in January was $199,600, which is 6.2 percent above January 2014. 4According to U.S. Census Bureau data from 2008-2014.

Mention this ad & receive 5% discount!

SOURCE National Association of Realtors

Need Staffing?

Don’t take chances with staffing! Our temps are tested, trained, experienced, and fully insured!

Serving The Pacific Northwest Since

Daily • Weekly • Monthly • Permanent Temporary On-Site Staff Managers • Leasing Agents • Maintenance Greater Seattle-Tacoma Area (425) 456-3663

Greater Portland-Vancouver Area (503) 644-8233