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

Rental Housing Journal On-Site

August 2015 - Vol. 9 Issue 08

3. Today’s Online Renter

11. The Value of Membership – WMFHA

8. Pet Smart: What You Need to Know About Being Pet-Friendly

13. Ask the Secret Shopper 15. 5 Ways to Improve Resident Relations – A Crash Course

9. Why Work-Life Balance is the Wrong Idea

21. To Social Media Relevance

10. Dear Maintenance Men

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Vacancies Drop to 4.05% and Rents Surge.

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TRENDS 2015 Education Conference & Trade Show MARK YOUR CALENDER!! 31st Annual TRENDS 2015 December 8th, Washington Convention Center, Seattle TRENDS is ‘THE’ Oldest and Largest Northwest Rental Housing Education Conference and Trade Show OVER 1,500 PEOPLE attend TRENDS TRENDS hosts a 215 Booth TRADE SHOW

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his year TRENDS will be celebrating it’s 31st year of production in a VERY big-way. The conference draws over 1,500 attendees and hosts the biggest industry trade show of 215 exhibits. The TRENDS education schedule offers 40 outstanding workshops. This year’s TRENDS should be the biggest conference ever. continued on page 4

By Tom Cain Seattle he latest Apartment Insights survey shows the vacancy rate dropping to 4.05%. Rents shot up $67 to $1,408 per unit according to Tom Cain of Apartment Insights. The data are from his Seattle firm’s 2nd quarter statistics and trends on 50+ unit properties in the King/Snohomish market. VACANCY: 4.05% The vacancy rate for our nonrandom survey of conventional, stabilized 50+ unit properties in the King/Snohomish market is 4.05%. The market was strong last quarter when the rate was 4.46%, but it just got stronger. This is the all-time low since we began surveying this rental market in 2005. It was 4.17% a year ago. The overall vacancy rate which includes properties in lease-up continued on page 5

Medical Marijuana and Reasonable Accommodations in Housing By Christopher D. Cutting, Loeffler Law Group PLLC

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

ousing providers are required to make reasonable changes in their policies and procedures to allow benefit disabled individuals to fully benefit from the housing opportunity by both the Washington Law Against Discrimination and the federal Americans with Disabilities Act. This obligation to provide a reasonable accommodation applies to private landlords. Some examples of reasonable accommodations include

allowing a guide dog in a no pets building and allowing a tenant to install a grab-bar in the shower. With recent changes to the law concerning marijuana, landlords are faced with the question of whether they need to allow medical marijuana in a nonsmoking or drug free rental unit. All uses of marijuana are illegal under federal law. Washington allows both the medical and recreational use of marijuana by adults. Recreational use of marijuana does not receive any special protection under Washington law; Landlords are free to prohibit recreational mari-

juana. Washington landlords may wish to prohibit use of recreational marijuana because smoking it may annoy other tenants, increase costs at turnover, and put a building as risk of federal asset forfeiture. A landlord who wishes to prohibit marijuana on his or her property should add a specific clause in the lease prohibiting its use. A generic ban on “illegal activity” may not be effective now that marijuana is legal under Washington law. Medical use of marijuana creates a different question. The Washington continued on page 6

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Rental Housing Journal On-Site • August 2015

RENTAL HOUSING JOURNAL ON-SITE

Today’s Online Renter

National Study Sheds Light on Changing Prospect Behaviors and Preferences By Doug Miller

e just conducted a 2015 revisit of our landmark 2011 “Today’s Online Renter” study. The study addressed questions about how today’s online prospects shop, what drives rental decisions, what impact reviews have, the importance of social media and more. Big picture, transparency and the basics are more important than ever. • Shopping, Rental Decisions, Brand, Trust • 60.1% of apartment shoppers used a smart phone or tablet in their search (26.3% in 2011) and 78.3% visited a property’s website before contacting the office. Therefore websites must utilize Responsive Website Designs (as of April 2015 Google boosts rankings for sites with RWD) and HTML5 coding (how Apple products read websites and permits for ideal viewing on smartphones, tablets, laptops). • The Top Five sources used changed since 2011 [chart], and review sites now a top source. Since 45.4% of shoppers now use review sites, it is critical to manage the resident experience and a property’s repcontinued on page 7

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Trends...continued from page 1 Who attends TRENDS? Rental housing property owners; property managers; leasing agents; maintenance personnel and portfolio managers. TRENDS is the premier annual education conference and trade show for Northwest rental housing ownership, management and maintenance. TRENDS is a national award-winning event. The admission to TRENDS 2015 includes the TRADE SHOW, WORKSHOPS AND LUNCH all for

$65 if payment is received by November 30, 2015, $80 after November 30, 2015. Washington State Real Estate Clock Hour (3 CRE credits) workshop credits are also available for an additional $25. Ticket Discount Available—When Purchasing 9 or more Tickets • Call: 800-335-2990 or e-mail: events@ RHAwa.org TRENDS is also very proud to hold the distinction of being the longest running a continuously pro-

duced event at the Washington Convention Center. See the TRENDS website at www. trendsnw.com This years TRENDS Education Conference will again feature several well-known national and many regional speakers. As well as, several dozen highly regarded local industry practitioners participated as workshop panelist. The TRENDS ’15 workshop schedule is one of the best ever offered. TRENDS is brought to you by:

Washington Apartment Association (WAA); The Institute of Real Estate Management (IREM) and Rental Housing Association of Puget Sound (RHA). TRENDS is produced by Larry Diamond. larryd@isomedia.com

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Vacancies Drop ...continued from page 1 dropped from 6.59% to 6.30%. King has a vacancy rate of 4.04% and Snohomish County a 4.12% rate. Edmonds was among submarkets that showed the greatest improvement since last quarter, and ended up with the lowest vacancy rate of 2.39%. Ballard showed some improvement but still ended up with the highest rate, 6.93%. The Bellevue Eastside submarket is 6.85%. All the other submarkets are about 5% or less. The highest overall vacancy rate including properties in lease-up is Ballard's 17.3%, about the same as last quarter. Rental incentives dropped significantly from $15 to $7 per month. In the two-county area 17.8% of the properties are offering incentives, down from 26.2% last quarter. ABSORPTION: +2,066 Overall, there were +2,066 units absorbed this quarter, up from +1,290 units in the first quarter. The greatest absorption occurred in the Seattle Central, South submarket with 365 units. RENTS: $1,408 per Unit $1.68 per Square Foot Rents surged $67 to $1,408 per unit and $1.68 a square foot, a significant increase of 5.0%. The increase over the past 12 months is 9.7%.

In downtown Bellevue rents surpassed the $2,000 level this quarter, reaching $2,060 per unit and $2.33 per foot. Rents in downtown Seattle are the highest in the region. Rents here are $2,226 per unit and $2.72 per foot. Rents in Des Moines and Edmonds broke through the $1,000 level to $1,020 and $1,080 per month, respectively. This leaves SeaTac as the only submarket remaining where rents average under $1,000. Here they are $972. NEW CONSTRUCTION There are currently 22,948 units under construction, 19% more than last quarter. It's 42% more than a year ago. Fifty-four percent of these are in the city of Seattle, 24% on the Eastside, 13% in South King, and 9% in Snohomish County. The Luke, a 208-unit building in Redmond, opened recently. It is featured in the photo and is managed by Greystar. There are 10,566 units that have either opened or are under construction with a 2015 completion date. Based on our past projections it appeared that 2015 would break the record of 10,056 units completed in 1989. Many of the properties that were scheduled for completion in 2015 are taking longer to finish. As a

We had been expecting the rental result it appears that 2015 won't market to ease up a bit by now, what break the record set in 1989. We have preliminary information with all the new construction. Yet, for the next two years. We are track- the market has tightened. We know ing 12,168 units that are either under that developers will keep building way or scheduled for a 2016 comple- new units until the demand has been tion. For 2017 the number is 9,001 satisfied. That at least is predictable. Predicting when that will happen units. The grand total for all of the units with any accuracy is not. in various stages of the pipeline is Tom Cain of Apartment Insights 58,253 units. This is up from 53,790 units last quarter and 44,858 units a Washington is a member of the nonprofit Central Puget Sound Real year ago. Estate Research Committee in charge OBSERVATIONS The market is booming. The of providing apartment rent and vacancy rate of 4.05 is the lowest it's vacancy data. Tom has been a membeen since we began surveying this ber of the Committee for over 25 market in 2005. Rents surged 6.75% years, and has been researching this quarter and 10.4% for the past apartment market trends in the Seattle area since 1978. His company year. There are 23,000 units under con- surveys the five counties in Central struction, which is 42% more than a and South Puget Sound. Apartment Insights year ago. We are tracking over 58,000 206-632-2220 units in various stages of the pipeThis article highlights survey line. Employment growth is much results that subscribers can access more robust than what was antici- from an online database of all 50u+ METRO,Insights ARIZONA properties. Apartment also pated. Economic projections were VALLEY, generally in the 2.5% range for 2015. provides customized rent reports The most recent job growth statistics and market reports. HYPERLINK available at this time are from the "http://www.apartmentinsightswa. Employment Security Department. com/"www.apartmentinsightswa. In the year ending in April, 53,900 com 206-632-2220 jobs were added in King County. This is a 4.3% Feb, increase.Apr, Jun, Aug, Oct, Dec

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Medical Marijuana ...continued from page 1 Legislature determined that medical use of marijuana may benefit individuals with glaucoma and Crohn’s disease, among other disabilities. If a landlord chooses to prohibit use of marijuana in his or her building, a medical user may request an accommodation by allowing him or her to consume this medicine notwithstanding the prohibition in the lease. Washington employers are specifically exempted from granting reasonable accommodations based on medical marijuana use by RCW 69.51A.060. Washington landlords are not given similar explicit protection.

The official position of both the United States Department of Housing and Urban Development and the Washington State Human Rights Commission suggests that landlords are not required to allow medical marijuana as a reasonable accommodation. In Assenberg v. Anacortes Housing Authority, the Ninth Circuit Court of Appeals affirmed that it was per se unreasonable to ask a public housing authority to violate federal law by allowing medical use of marijuana. Based on this and other decisions, the Washington State Human Rights Commission adopted a policy of refusing to inves-

tigate claims of discrimination based on medical use of marijuana. However, that same policy leaves open the possibility of a medical user bringing a private lawsuit for discrimination based on the same actions. Housing and Urban Development currently bans public housing authorities from admitting any marijuana user to its subsidy programs, but allows individuals already in the program to use medical marijuana in a subsidized property under certain circumstances. A landlord who wishes to allow marijuana use, whether recreational or medical, may prohibit smoking but allow consumption of marijuana by other means. Before taking this approach, landlords should consult with their insurance carrier for any coverage consequences to allowing an activity that is illegal under federal law. Landlords who allow marijuana consumption should also consider banning preparation activates such as cooking “special brownies” or producing hash oil because of potential impact on the building. Most activates related to growing and preparing marijuana are also regulated by state and local law.

Landlords should act with caution because this is a rapidly changing legal environment. Based on current law, landlords may refuse to allow even medical marijuana with reasonable confidence, but that may change. Landlords may safely adopt and enforce smoke free or marijuana free policies for their buildings. If a landlord receives a request for a reasonable accommodation allowing medical marijuana, the best practice is to consult an attorney who stays up-to-date on this changing regulatory environment. Christopher D. Cutting is an associate at the Loeffler Law Group PLLC in Seattle. His practice and experience includes landlord-tenant litigation, appeals, and judgment enforcement. He is the author of the “Unlawful Detainer Procedures” section of the 2015 Washington Lawyer’s Practice Manual as well as articles on real property law.

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Online Renter ...continued from page 7 Apartment shopping sources ILS Apartment community or management company website Driving in desired neighborhoods Search engine Rating / review website Referrals Printed apartment guide Apartment community or management company social media Newspaper advertising

2015 Total 68.8% 66.5% 59.2% 50.5% 45.4% 42.4% 21.1% 11.6% 6.1%

• Prospects focus on basics: photos, floor plans, rents, specials, availability, and features / amenities. Reviews are also very important (4.18 on a five point importance scale) because they offer the transparency today’s consumer demands. • The top rated factor impacting rental decisions was viewing an actual apartment home available to lease; this has implications on the market ready process and raises questions about how much to invest in models (ranked #12). Consistent with importance of transparency and the resident experience, perceived quality customer service and unfiltered reviews were rated second and fifth, respectively.

What impacts rental decisions – Top Five [Five point impact scale]

2015 Total

Perception of quality customer service

4.24

Viewing the actual apartment I can lease

4.58

Ability to pay rent online if no convenience fee

4.18

Security, access control features Ratings/reviews of community

4.16 3.99

• 49.7% do not trust websites where most or all reviews are positive. Because negative reviews are as important as positive ones, resist the temptation to cherry pick reviews to post on those sites that permit this. • Ratings and Reviews • 61% were willing to post positive reviews about their community, however only 16% have ever been asked by the property; and a majority reported being “very likely” to post comments or reviews online. This reveals an opportunity, however remember that offering incentives to post reviews violate Federal Trade Commission guidelines. • Residents have strong feelings about properties responding to reviews. 51.7% felt that the staff responding communicates they provide great customer service, and 48.9% felt this shows the staff cares about residents. Only 11.1% said they did not care if the staff responded. Lastly, a majority reported that the staff not responding created a negative impression of the community. Responding presents another marketing opportunity. • Social Media • Only 11% reported using social media a “source” when shopping, and social media earned a low 2.27 score on its impact on rental decisions (five point importance scale). Additionally, as noted earlier, residents do not trust social media as a

• Renters do not follow communities or management companies on most social media. While 20% reported following a community on Facebook, less than 3% reported following on Twitter, Instagram or Pinterest. Key Takeaway #1 - Transparency • Prospects feel empowered and want transparency so they can make informed decisions. They want to know what it’s really like to live at a community via unfiltered reviews, to tour actual vacant apartments they can lease, and they don’t trust marketing, ads or social media. Key Takeaway #2 - The Basics • Success continues to have its foundation in the basics. And the basics are more critical than ever due to their impact on satisfaction with the resident experience and a property’s online reputation. Doug Miller is founder and president of SatisFacts Research. Prior to creating his own businesses in 1996, starting in the late 1980's Miller was Director of Marketing for several national and regional property management firms. Miller received his B.S.B.A from Washington University (St. Louis) and his M.B.A. from The American University. Doug can be contacted at DMiller@ SatisFacts.com.

• 24.4% report rental decisions are impacted by the management company brand name; this means 75.6% of decisions are not impacted by brand name. Therefore communities must focus on service delivery and the resident experience as drive their online reputation. • 74.4% trust friends and family. At 67.7%, reviews had the second highest “trust” score; sites offering reviews rank high in Google searches so properties must focus on delivering a quality resident experience and leveraging this feedback online. Residents do not trust ads (second to last, 11.8%) or a property’s social media efforts (ranked last, 7.1%). What sources do you trust?

2015 Total

Online ratings / reviews / comments

67.7%

Friends, family members or co-workers Company website Ads

Social media

Rental Housing Journal On-Site • August 2015

74.4% 32.6% 11.8% 7.1%

shopping source.

RENTAL HOUSING JOURNAL ON-SITE

Pet Smart: What You Need to Know About Being Pet-Friendly After years of prohibiting companion animals, many apartment properties now welcome pets—and the residents and ancillary income they bring with them. By Kayla Devon, Les Shaver

fter prohibiting pets for so long, the apartment industry finally, b egrudgingly, began accepting them over a decade ago. In a way, apartment owners were merely coming to terms with what had been a reality for a long time—furry creatures resided in their properties. In fact, Bobby Lee, president and COO of Los Angeles–based JRK Property Holdings, estimates that as many as 40% of his residents had been keeping pets in their units, even when they weren't allowed. But by eventually embracing animals, apartment companies found a way to attract residents rather than tune them out. And, in some cases, they've found a way to make money, as well. But just saying you allow pets isn't enough. To be successful, apartment owners need to have a strategy— knowing the costs and benefits of allowing pets, what the popular amenities are, what types of pets to restrict, and the types of materials to use for a pet-resilient environment. Multifamily Executive spent time exploring each of these issues. You can read our findings by clicking

through the tabs above. Profit Point Steve F. Hallsey, president and CEO of AMLI Management Co., says his firm's initial intent behind allowing pets wasn't to create a profit center; it was to differentiate AMLI from its competitors. "The right way to think of it is the competitive advantage you have in having it and the competitive disadvantage you have by not having it," Hallsey says. "Do you pick up 100 or 200 basis points in occupancy? You probably do." Others see the same benefit—petfriendly amenities offer differentiation. "The primary reason we added [the dog park] is that it would be a tiebreaker for people who had dogs," JRK's Lee says. "If you're a dog lover and see a place for your dog to play in, it's that last impression that may drive the decision." But in some cases, apartment owners are finding that catering to pets can do more than just help attract residents: It can add to the bottom line, as well. Yes, dog spas, pet washes, and pet exercise equipment carry extra costs, but a simpler option, such as a grassy area with play equipment, costs less but still goes a long way.

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At most of its properties, JRK includes a dog park. "It's a really lowcost amenity that can distinguish us from the competition," Lee says. While dog parks cost money, many times they cost less to produce than what they're replacing. "[Dog parks] took the place of other amenities that used to be more popular, like tennis courts," says Cristina Sullivan, executive vice president of operations at Gables Residential. "It wasn't an ‘add to.' It was an ‘instead of.' " Pet areas also may offer more flexibility than traditional amenities. "[They] allow you to be more creative," Sullivan says. "We put them in parking decks on roofs." In fact, urban high-rise product may be the most profitable place to offer a pet-friendly environment. In its high-rises, AMLI charges a nonrefundable pet deposit between $250 and $500, pet rent of $25 to $50, and a pet-floor premium of $25 to $35. That adds up, especially in a building with hardwood floors that can withstand the daily rigors of pet paws, poop, and pee. "The pet fees themselves are a nice source of income in ‘other income,' " Hallsey says. "You have an ability to

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charge very nice premiums in fees." But for other owners, especially those that aren't renting new, urban high-rises, the profits aren't as easily enjoyed. In fact, in many cases, Lee says, JRK doesn't consistently charge pet fees across the board. "On a nonrefundable pet fee, we won't go above about a half month's rent," Lee says. "Some properties don't charge a fee. Some properties charge both [pet fees and pet deposits]." But even with a pet fee and pet deposits, covering the costs of replacing a carpet at each unit turn, much less the added maintenance required at a dog park, makes it tough to turn a profit, Lee says. Yet, JRK still adds dog parks, and Lee has found that they do offer an economic advantage. "Our guys never had issues charging the nonrefundable pet fee," Lee says. "But when someone would ask, ‘What am I paying pet rent for?' we'd have an answer." There's another reason to be careful with pet fees: Sullivan says Gables will charge pet deposits and fees, when possible, but is careful (as many other apartment owners we spoke with agreed) in the wake of the class continued on page 19

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Why Work-Life Balance is the Wrong Idea A Better ‘Balance’ Is Finding the Right Job for Your Purpose, Says Talent Expert

By Brian Mohr he corporate world is susceptible to fads.

Work-life balance, a push to properly prioritize work in relation to lifestyle, features the kind of fad-ish thinking that can lead gifted people down the wrong path, says talent expert Brian Mohr. “Think of those who love their job – for them, it’s not exactly ‘work’ as they exercise their capabilities fully toward a goal that they believe in,” says Mohr, co-founder and managing partner for Y Scouts (yscouts.com), a purpose-based leadership search firm. “Finding the right fit – whether an organization is searching for leadership or an individual is seeking the right job – is more important than people realize. The problem of work-life balance starts farther upstream. When the appropriate person is aligned with the appropriate goal, balance is natural.”

A concept like work-life balance is a claim on how we should prioritize our lives, which, if believed, can be confusing. Mohr discusses how an organization’s employees, from bottom to top, can benefit from a more helpful perspective. • Don’t buy into the notion of the “work you” as being separate from the “real you.” We spend 8.8 hours of each day working, according to the United States Bureau of Labor Statistics – the largest amount of time spent in any single activity (sleeping is second at 7.6 hours). Worklife balance enforces a strange notion that you are essentially different on the clock than off the clock, which hurts both employers and employees. Who wants this divided personality? Why not be yourself while doing what’s important – providing for your well-being and that of your family? “Costumes are for Halloween,” Mohr says. “In my line of work, I want to offer a leader

who is authentic and not some impostor version of who they really are.” • Not everyone is working for the weekend. Rather than work-life balance, it’s more helpful to think of your role in a company or nonprofit as worklife symbiosis. Just do the math. Working nearly nine hours in a role that you do not like doesn’t

stack up well with two days that quickly pass by – assuming you hate your job. How many years of your life do you want to waste not doing what would make you happier? “Most importantly of all is aligning the right people with the right role,” Mohr says. “That means aligning the purpose and continued on page 20

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Dear Maintenance Men: Dear Maintenance Men: I have a bathroom sink that is slow draining. I have already snaked the drain and found no stoppage. When I remove the pop-up assembly and have an open drain, water whooshes down with no problem. However, with the pop-up in place, water backs up into the sink and drains very slowly. Paul Dear Paul: Most bathroom sinks have w an overflow hole near the top edge of the sink. This hole serves two purposes; 1: Acts as a safety drain to keep the sink from overflowing should the water rise above a certain level in the sink. 2: The overflow hole also serves as an air vent for the sink when the water levels are above the pop-up plug. The overflow hole allows air to escape through the drain and the water to evacuate more efficiently. What has happened is hair, toothpaste, grime etc. have built-up and sealed off the overflow drain where it exits just below the pop-up assembly plug. Most snakes are too big to go through the overflow drain. Alternatively, a speedometer cable will work great or even a long zip tie will work. Push the cable or zip tie down through the overflow hole

at the top of the sink and push any gunk out into the drain. Use water to help push the debris out the overflow drain, a funnel works great to direct a good flow of water. If you cannot access the overflow to drain, you will need to disassemble the main drain assembly to gain access to the overflow drain exit. Once the overflow drain has good airflow, the sink should drain a bit faster. If this does not solve the problem completely, look at restricting the water flow coming out of the faucet. Use a restrictive aerator to cut down on the GPM of the faucet. Dear Maintenance Men: I run into a vendor communications problem every now and then. It is very frustrating and at times costly to my pocket book or the vendors’ depending on whose error it is. It can be as simple as the wrong shade of paint, to as serious as work completed in the wrong unit. I try to keep my directions as simple and direct as possible, but mistakes still happen. What do you recommend? Steve Dear Steve: Sometimes familiarity and the assumption the other party can read our mind gets in the way of proper communication skills. We have

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found that even with vendors we have used for a long time and who should know better, fall victim to mind reading errors. We no longer rely on verbal confirmation when finalizing a job. Everything is in writing no matter how small. Now, errors can still happen, but it is much easier to find who is at fault. To minimize errors further, be sure to write in a concise direct manner in simple sentences. Do not use compound w sentences or complicated, jargon filled sentences. Write for the lowest common denominator. Often the work order will go from the contractor directly to his techs without any further explanations. The techs need to understand clearly what work is expected and authorized. If you have more than one task being performed in an apartment unit, itemize and specify by room what the work is. If you are painting, specify the color, flat or semi-gloss and what rooms are to be painted. If you have rooms or objects that are not to be painted, use a separate sentence so the difference can be clearly noted. This works with faucets, window coverings, flooring etc. Have the other party initial not only the original work order, but also any changes that take place

before work proceeds. With the work order initialed, miscommunication is less likely. Don’t forget to add special notes and details when needed, include a phone number for any question. Dear Maintenance Men: I am getting complaints for my residents that they are not getting hot water or that they need to run the water a long time before getting hot water. I checked the water heater and it is operating properly. What do you think the problem is? David

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Dear David: The first thing we would check is the circulation pump for proper operation. Calcium or hard water deposits in the water heater and lines may also aggravate this problem. The circulation pump’s job is to bring hot water to all the units at the same time. When the pump is not working or is clogged; the hot water will take much longer to get to the units furthest away from the heater. The first step is to determine if the pump is working. The pump is normally found next to the water-heater. Check that the motor is plugged into an electrical outlet. Next, touch continued on page 20

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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

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he Washington Multi-Family Housing Association enters its 13th year serving the multifamily housing industry, its members and the community at large. We are very appreciative of all of the support and involvement of our membership and as we continue to grow, we look forward to serving and representing the industry further. For multifamily property owners, managers, developers and industry supplier associates, WMFHA (pronounced “woom fa”) is the nonprofit, member-driven professional

trade association that advances the interests of the multifamily industry because we are connected and in communication with stakeholders at the local, state and national level. The Washington Multi-Family Housing Association promotes the interests of its members by engaging in the legislative process, providing professional development opportunities and organizing events that help members connect with each other. WMFHA has more than doubled in size since 2011, now serving nearly 1,200 members, including 90 man-

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agement company members, 900 apartment communities with 152,000 units throughout the state, and close to 200 supplier company members. We have recently opened an Eastern Washington Chapter to better serve our members and the communities east of the mountains. The Washington Multi-Family Housing Association exists to: • Promote career development by providing quality education. • Influence legislation favorable to the multi-family industry. • Encourage mutual support for our members, the industry and the community. As the "must-join” trade association by all companies and professionals working in Washington state’s multifamily housing industry, we are the go-to resource on issues and trends impacting the industry. We care about all of our members and want to help them be successful. And, representing a people industry, we like to get together and build professional relationships. WMFHA is committed to support and lead legislative regulatory policy that promotes and preserves quality rental housing for all. As

our membership grows, so does our collective voice and influence for the industry. We support policymakers who understand the needs of our industry. WMFHA offers apartment industry personnel invaluable educational opportunities in the form of courses, seminars, certifications and designations created to increase their professional development, industry knowledge and job performance. One of the most rewarding aspects of our association is the ability to hold many different business relationship-building events throughout the year intended to bring our membership together for the purpose of networking, socialization, sharing ideas and providing needed information about our industry. And, to have fun! As the Washington State chartered affiliate of the National Apartment Association, membership in WMFHA also includes, at no cost, membership in NAA. Our partnership with NAA is valuable to our members, giving members resources to help them grow their business and increase their bottom line. For over 75 years, NAA has been the national voice for the apartment continued on page 17

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sk the Secret Shopper

losing the sale is of utmost importance in turning prospective renters into new residents for your apartment community. It would be the equivalent of “setting the hook” for those who are trying to catch a fish. In each case, the prospect and the fish are trying to “get away” without committing to a home or a hook, while your job is trying to get both of them to BITE! Building owners and management companies want to know: What can we do to get our leasing staffs to close the sale? Even when we authorize incentives and rent specials to give them additional tools to work with, they still aren’t asking for the sale. What else can we do? Even with incentives and promotions, the leasing people are still ultimately responsible for closing the sale. Very few clients will whip out their debit cards and say, “I’ll take it!” Most people who are not forced into making a buying decision will delay making one. They will continue to weigh all their options, and there are LOTS to consider! I believe that the number one reason that leasing people are not converting more prospective renters into residents is because they stop short of asking for the sale. They are not “setting the hook.” They do a sensa-

tional job of presenting their product and explaining the application process, which I would refer to as “putting the ‘bait’ out there.” However, when they get a buying signal (A BITE!!) they do not recognize it for what it is, and then let the prospect get away. Here is what it looks like on a shopping report: After an outstanding presentation, the leasing consultant asked if I thought the apartment would work for me. (bait) I responded with great enthusiasm, “I love it! It’s perfect!” (bite) She said, “That’s great. All you have to do if you want this apartment is fill out an application form and leave a $250 deposit. We can process your application within 24 hours. I’ll get you an application to take home with you. Then you can fill it out and bring it back if you decide you want the apartment.” (letting the fish off the hook) I agreed to take the application form and thanked her for her time. (fish swimming away) She thanked me for coming by and closed with, “I hope to hear from you soon.” (watches fish swim away and wonders how that fish got off the hook . . .) Relaying information about rental requirements is not the same thing as

ASKING for the sale. I firmly believe that many leasing consultants honestly think that they are closing the sale by describing the application process if someone is interested in renting, rather than coming right out and asking that person to rent. Remember: In order to get a commitment, you have to ask for one. Asking for the rental sounds something like this: After an outstanding presentation, the leasing consultant asked if I thought the apartment would work for me. (bait) I responded with great enthusiasm, “I love it! It’s perfect!” (bite) She said, “That’s great. Let’s

go back to the office and I’ll get you started on the application.” (setting the hook) I told her I wasn’t ready to do that just yet because I had a couple more places to look first. She reminded me how much I loved the vaulted ceilings and the spacious kitchen, and I had to agree. When we got back to the office she handed me the application form and a pen. She said, “Go ahead and make yourself comfortable. I’ll get you something cold to drink while you start filling out the application.” (reeling in the fish) She returned with my soft drink and said, “I’ll need two continued on page 18

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5 Ways to Improve Resident Relations – A Crash Course By Aimee Miller

re you set up for success in 2016? Join 2,500 real estate industry leaders Aug. 4-7, 2015, at Inman Connect in San Francisco. Get Connected with the people and ideas that will inspire you and take your business to new heights. Register today and save $100 with code Readers. Takeaways: • Maintaining resident relations is a key factor to successful property management. • Once you establish the reasons why individuals might leave, you can take a proactive approach to improving your resident relations and avoiding a potential issue. • Keeping long-term residents cuts your costs and increases your profitability — you don’t have to spend time and put resources into marketing open units. Maintaining resident relations is a key factor to successful property management; but, it can be hard keeping clients happy when you are managing multiple properties and juggling various responsibilities. How do you keep track of one individual’s needs in a sea of many? How do you improve tenant relations so that your renewal rates can continue to climb? Before your head starts spinning with countless questions, take a moment to read through our fivestep crash course to improving resident relations. 1. Know why a resident might leave There are several reasons why residents decide to vacate a building. Perhaps the rent was too high? Maybe they had a bad experience with new neighbors — or worse, the property manager? Or maybe they simply decided that it was time to live in an upgraded building. No matter the reason, step one of improving relations requires you to get to know your residents. Learn what makes them tick and why they might leave an apartment or home. Once you establish the reasons why individuals might leave, you can take a proactive approach to improving your resident relations and avoiding a potential issue. Tip: Include a survey upon lease signing, and then conduct an annual survey of your residents to gauge their happiness with the property. 2. Make customer service the crème de la crème As a property manager, it is your job always to be responsive, courteous, attentive and professional when handling any resident requests. The simplest and most reliable way to improve relations is to offer the best customer service. To this end, you should always

respond to an issue as efficiently and effectively as possible. It is easy for people to become too frustrated if their issues aren’t resolved in a timely fashion. Once a resident has become frustrated, it is much harder to build a positive experience back. Tip: There are technology solutions you can use to streamline

response time, as well as convenient online services that can give a huge boost to resident happiness, including features such as online rent payments and maintenance request portals. 3. Flaunt those amenities Amenities, or lack thereof, are one of the top reasons that a resident

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moves on to a new building. Make sure that your residents are aware and taking advantage of all of the benefits of living at your specific property. From the free Wi-Fi to the neighborhood’s new plans for a live music venue, make sure that your tenants are up to date on all of the benefits

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Membership! ...continued from page 11 industry, with 170 affiliated apartment associations nationwide representing 7.6 million apartment homes. NAA’s strong focus on education, legislative, legal and operating issues positively affect apartment residents, managers and owners at the national level. Jointly, the NAA and WMFHA Government Affairs teams work to protect the industry through local, state and national advocacy initiatives and grassroots mobilization. NAA’s Click & Lease is an online leasing and forms program with

ongoing legal review developed to maximize profit and mitigate risk. NAA’s Education Institute maximizes NOI through individual employee skill development training, and an array of digital and print publications keep members up-todate on the latest industry developments and best practices. Annual meetings and expositions provide professional, educational and business opportunities with reduced registration costs for members. NAA’s Open Door Program is an exclusive member benefit that offers

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valuable products and services at a price savings. Why Join WMFHA? Industry companies join because it is essential to their business. Membership brings tremendous value by providing you an edge to compete in this industry. Membership provides companies and their associates current, up-todate information and allows for promotion of mutual business interests. Importantly, there are rewarding opportunities to volunteer and give back to the industry through personal involvement or charitable giving. The Washington Multi-Family Housing Association is currently

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Ask the Secret Shopper ...continued from page 13

5 Ways ...continued from page 15 that come with calling your building home. Tip: Extend this helpfulness outside the property proper — use a blog to share information about the immediate community, surrounding area and fun events nearby that your residents might enjoy. A community group on Facebook is also an excellent way to build awareness and communication. Tip: Extend this helpfulness outside the property proper — use a blog to share information about the immediate community, surrounding area and fun events nearby that your residents might enjoy. A community group on Facebook is also an excellent way to build awareness and communication. 5. Respect the privacy of your residents On the off chance that you need to access a unit to conduct repairs, make sure that you respect their privacy. Find out what time is best to conduct the repair and give plenty of notice — it can go a long way toward making the resident feel comfortable having you in their space. Remember it is their home, and they might have abnormal working or sleeping hours, as well as visiting family. Do your best to limit the amount of time that you have to spend in a rental unit while conducting seasonal maintenance or cosmetic repairs. In this vein, make sure that you conduct annual cosmetic improve-

ments on the building to enhance the aesthetic appeal of the property. Make sure that you offer a fresh coat of paint or a carpet cleaning for longterm residents. Tip: The modern resident expects instant notifications on their mobile devices. Gone are the days of posting paper notices; set up text messages and email alerts to get relevant information in front of your renters faster. Keeping long-term residents cuts your costs and increases your profitability — you don’t have to spend time and put resources into marketing open units. With these five steps in mind, you will be well on your way to improving your current and future resident relations and securing some long-term residents. Aimee Miller is the vice president of marketing at AppFolio, providers of Web-based property management software.

separate checks: One for the deposit and the other for the application fee. Make the first one out to…” (having fish for dinner tonight) Some of the most exciting, yet discouraging stories shared among fishermen (and women!) are about the “ones that got away.” Do you want to tell leasing stories about the clients who “drove away” or about those who rented and decided to stay? Remember: It's much easier to reel in a fish on a hook, than one that is swimming away… If you are interested in leasing training or have a question or concern that you would like to see addressed, please reach out to me via e-mail. Otherwise, please contact Jancyn for your employee evaluation needs: www.jancyn.com

ASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica Former owner of Shoptalk Service Evaluations Consultant to Jancyn Evaluation Shops E-mail: shptalk2@gmail.com Copyright Joyce (Kirby) Bica 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 Copyright Joyce (Kirby) Bica

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Apartment Security ...continued from page 8 action lawsuits in Boston in 2012 in which their tenants sued Archstone and Equity Residential over pet fees that violated Massachusetts Security Deposit Law. (The law prohibits landlords from charging any up-front fees except for first month's rent, last month's rent, a security deposit, and a lost-key fee.) "We're very cautious," Sullivan says. "We don't have a blanket policy on fees and deposits. If it's gray, we lean on the side of ‘don't charge.' " Pet Amenities Pets are like family, and when it comes to keeping them happy and healthy, most owners will do just about anything for them, regardless of cost. In a 2014 survey on pet products and services, market research firm WSL found that 81% of respondents spent more or the same on their pets despite recent economic troubles. In a separate study, the American Pet Products Association, in its National Pet Owners Survey, found that pet owners spent $58 billion on their pets in 2014, up from $41 billion in 2007. That's why, to win over animallover residents, more properties have invested in amenities in the past 10 years that cater to a higher standard of living for pets. "We're always looking at every single building and what we can do to maximize people's enjoyment of their lifestyle," says Daria Salusbury, senior vice president of leasing at Related Cos. "We realized a long time ago that pets are people's extended family." Though Related Cos. has always been pet-friendly, the team has recently found success in providing more for their four-legged tenants. Related first built a dog grooming station in One Carnegie Hill in Manhattan. Salusbury says it was the most-used amenity in the entire building. With MiMA, also in Manhattan, Related went one step further by introducing Dog City, a dog spa that takes care of every need imaginable, from dog walking and doggie dates to geriatric care and nutrition plans. If going all-in on a dog spa or grooming stations isn't feasible, pet events are also fun ways to attract tenants. AvalonBay, for example, offers Doggie Paddle pool parties, Yappy Hours, and pet CPR classes to foster a sense of community among pet owners. We realized a long time ago that pets are people's extended family. But not everybody loves dogs, cautions Gables Residential's Sullivan. "We want to be careful where we put those amenities and how they're integrated into the community, because if you're not a dog lover, you don't want to be sitting at the pool [next to one]," she says. Material Gain Between paws, accidents, and strange smells, pets can do some real damage on traditional housing materials. The flip cards below detail what finishes to equip your pet-friendly units with so they're more durable and cost less in rehab later on. Poop Police While people love their dogs, they don't exactly love picking up their dog's poop. One study estimates roughly 40% of dog owners don't pick up after their pets. But dog poop Rental Housing Journal On-Site • August 2015

isn't just a nuisance; it's hazardous. The EPA ranks dog waste as an environmental problem equal to toxic chemicals and oil spills. But companies like PooPrints and P.E.T. CSI are turning dog-waste management into an ancillary-income opportunity for property managers by catching the culprits with DNA testing. For an average cost of $39.95 at move-in to have a dog's cheek swabbed, property managers can keep the DNA on file and send out dog poop samples to catch residents who fail to clean up after their pets. When the results come back, properties charge a fine anywhere from $50 to $500. According to PooPrints CEO Tom Boyd, participating properties see a 90% reduction in dog waste in one month and 98% in six months. Property Policies It's never really the pets you have to worry about—it's the pet owners. Many properties have policies regarding breed and size restrictions that aim to eliminate large, aggressive dogs from the community. Common

breed restrictions include Pit Bulls and Dalmatians, while typical size limits start at below 25 pounds and reach 75 pounds. Such restrictions, however, are outdated and based on information that has been proven untrue, says The Humane Society of the United States, which claims there isn't sufficient evidence that specific breeds or large dogs cause more harm than others. Ultimately, a dog's behavior depends on the training it receives—or doesn't receive—from its owner. Consequently, the Humane Society urges property managers to judge four-legged tenants on a case-by-case basis, determining if the dog has been spayed or neutered, if the owner can provide pet references, and if the dog has any training certifications. One of WC Smith's newest developments, The Shawmut, in Washington, D.C., allows any size and breed and simply requires the dog and owner to do an interview with the building manager. According to Holli Beckman, vice president of

marketing and leasing operations at WC Smith, 70% of the building's residents own dogs, in all sizes and breeds, and no issues involving the pets have come up. "When you're trying to fill a 400unit building in a hyper-competitive market like D.C., you have to eliminate as many leasing obstacles and objections as possible," says Beckman. The leasing agreement language should also clarify how any incidents involving barking, aggression, damage, and so on will be handled. Policies range from small fines to "three strikes, you're out." Property managers shouldn't forget about non–pet-loving renters either. AMLI has pet floors to separate pet people and non-pet people. Some buildings have even specified pet-friendly elevators so renters with allergies or an aversion to animals can choose a people-only car.

RENTAL HOUSING JOURNAL ON-SITE

Work-Life Balance ...continued from page 9

Dear Maintenance Men ...continued from page 10

values of an organization to the purpose and values of the right people. Everyone owes it to themselves to find the right organization.” • Take a cue from your technology. In today’s world, we simply cannot compartmentalize different areas of our lives like people used to. You can communicate with your spouse at any time and know people better through social media than through real-life interaction. And, for work, most of us carry our work around in our smartphones. If not text messages, then we get emails sent to our phones. “Whether through our technology or the software running in our brains, we don’t simply turn off work when we leave the office,” he says. “We should drop the idea that ‘work’ and ‘life’ are somehow separate. They’re not.”

the water lines on either side of the pump and determine the temperature. If it is working properly, the lines should be warm or cool to the touch, not hot. If the pipes are hot or very hot to the touch, the pump is not working properly. If the pump does not spin when plugged in, it may need to be replaced. If the pump motor is working, the pump may be clogged with debris. Remove the pump and clear out the lines. Pay special attention to the line between the pump and the water heater. The pump tends to impact this section of the water line due to calcium buildups in the water heater tank. While you have things apart, this is a good time to clean out the tank deposits, which may be contributing to the slow hot water issue. Water heater clean outs should be done at least once a year. If you live in a hard water area, adding a water softener to the incoming cold water line will greatly improve calcium and hard water buildups in the water tank.

nects organizations with exceptional leaders. Y Scouts operates under the belief that people are the only real competitive advantage in business and the best employer/ employee connections start by connecting through a shared sense of purpose and values. Previously, Mohr worked as a talent strategist and in leadership management for major corporations, including P.F. Chang's China Bistro and Jobing.com. He is a graduate of the Advanced Executive Program at Northwestern University’s Kellogg School of Management.

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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.

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

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To Social Media Relevance

Those Seemingly Inconsequential Hashtags are Crucial to Gaining More Exposure for Your Brand By Jay York

ot so many years ago, many people probably paid little attention to that pound sign on the computer keyboard. You know, the one that looks like this: #. Then along came Twitter and what we have come to call the “hashtag,” and social media marketing was changed forever. Yet not everyone takes advantage of hashtags the way they should, and that’s unfortunate because if you are not using hashtags you are missing out on exposure for you and your brand. When you are on social media sites such as Twitter or Instagram, your goal should be to become part of the conversation. The hashtag allows more people to find your contributions to that conversation. Without them, you miss out on lots of eyes that could be viewing your content. For example, let’s say 1,000 people follow you on Twitter. Not counting re-tweets, only 1,000 people will see your posts if you don’t use a hashtag. Add

the hashtag, though, and you start picking up momentum because the post has the potential of being seen by, and re-tweeted by, any number of people. A common hashtag, such as #love, can position your post to be seen by potentially millions of people. But be warned. While there are great benefits to hashtags, there also are pitfalls. Hashtags don’t come with exclusivity. Anyone can use them, so a hashtag can become a weapon that works both for you and against you. Critics of your brand, or just the usual assortment of Internet trolls, may attempt to hijack your hashtag, putting you or your business in a bad light. A prime example of a hijacked hashtag happened a few years ago when McDonald’s, apparently hoping for a flattering conversation about the restaurant chain, introduced #McDStories on Twitter. #McDStories went viral, but not in a good way as the Twitter world had a field day tweeting unflattering tales of their alleged bad experienc-

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es with the restaurant. Don’t let such cautionary tales deter you, though. March boldly into hashtagging, but as you do keep in mind these suggestions for getting the most out of your efforts. • Use proprietary hashtags. One of the advantages to a proprietary hashtag, such as “Orange is the New Black’s” hashtag #OITNB, is that it is linked directly to your brand.

These hashtags typically are not used as widely as a more generic hashtag, but the goal is to brand yourself through the hashtag with the hope it could go viral. • Don’t overdo it. A post littered with too many hashtags can be difficult to read, so your message might become obscured as your followers see what appears to be gibberish. Perhaps you saw the skit Justin continued on page 22

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Social Media ...continued from page 21 Timberlake and Jimmy Fallon once performed in which they spoofed the device’s overuse by lacing their spoken conversation with seemingly endless hashtags. It was hilarious and annoying all at the same time. Twitter itself suggests using no more than two hashtags per Tweet. Certainly, three should be the very maximum on Twitter. A different etiquette exists on Instagram, though, and most Instagram followers will tolerate excess hashtags. Meanwhile,

although hashtags can be used on Facebook, there’s little reason to include even one. That’s not the way people use that social media site. • Think geographically. If you are a local company that depends mainly on local clientele, a hashtag that links to your location works well. Hashtags such as #Bizbee or #Bangor drop you into numerous conversations about your hometown. Since social media has become such a vital element of any com-

prehensive marketing strategy, understanding all of the nuances is critical. A hashtag may not look like much, but it’s really a powerful tool that is a doubleedged sword. If used correctly it can greatly bolster your marketing reach. Used incorrectly, it can have adverse effects or unintended consequences. With social media, your hashtag is your brand, so use it wisely.

expert with extensive experience in social media marketing dating back to the early days of MySpace and LiveJournal. Since graduating from the University of South Florida Business School, Jay has worked as marketing coordinator for an international IT training company; business development and branding manager for a startup restaurant management group; and CEO of his own social media management firm.

Jay York, senior digital marketing strategist for EMSI Public Relations (www.emsincorporated. com), is an internet marketing

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