Rental Housing Journal On-Site
January 2018
3. Supporting Possible Reforms in WA Service Animal Law
5. HUD Charges Landlord With Discrimination Over Veteran's Emotional Support Dog
8. Dear Maintenance Men
4. 8 Ways the Rental Housing Market Changed in 2017
6. Landlords Missing Rent Payments Online After Company Bankruptcy
12. Pet-Friendly Rentals
7. Are Your Social Media Posts Compliant With Fair Housing Laws?
9. New Years Resolution 15. Can I Say "No Pot In My Apartments" When It's Legal In My State?
www.rentalhousingjournal.com • Professional Publishing, Inc 17,000 Papers Mailed Monthly To Puget Sound Apartment Owners, Property Managers & Maintenance Personnel Published in association with Washington Association, IREM & Washington Multifamily Housing Association
The Scoop On How Pet DNA Testing Fixes Your Apartment Poop Problem
Rents Unchanged in December But Still Up 2.5% Year-Over-Year
T
he average multifamily rent in the U.S. stood at $1,359 in December, unchanged from November but a 2.5% year-over-year increase for rents, according to a survey of 121 markets by Yardi Matrix. Strong demand, the economy’s solid footing and a robust job market offer encouraging signs that growth will continue in 2018. Rents were down 0.3% in the fourth quarter, which is only the second negative quarter of growth nationally since the second quarter of 2010 (rents also fell 0.2% in the fourth quarter of 2016). continued on page 22
By John Triplett
P
ets are a way of life in rental housing and if you want your rentals fully leased, pet owners are a key tenant demographic you want to keep. Look just at Millennials: 76 percent are pet owners and a majority are renters. You might have laughed at first at this headline on how pet DNA testing could fix your apartment property’s pet poop problem. But here is the reality. Your tenants may be leaving pet poop lying around for you and your maintenance crew to pick up, creating extra work and cost.
Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007
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Sound Publishing Inc 98204
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continued on page 10
How Apartment Rules to Protect Children Could Be Discrimination By Ellen Clark
N
ormally, when you think of familial status discrimination, you likely think of things like refusing to rent to families with children, charging families with young children higher deposits, or steering them to certain buildings. But what about rules or policies that are intended to protect children? Could these be discriminatory? A story from a condominium complex in Fremont, California brings to light the issue around policies or rules that are intended to protect children, but actually could subject the property management to discrimination charges.
A condominium complex had a longstanding rule that tenants’ children could not run and play outside within the complex gates. The rule was set up by the homeowners’ association, citing safety concerns, and threatened to fine residents for violations. One of the residents claimed that she and her children were subjected to threats, intimidation, and harassment. A housing nonprofit called Project Sentinel brought a class action lawsuit pro bono and recovered $800,000 from the condo managers. Additionally, board members of the homeowners’ association must undergo fair housing training and post signs indicating that children are allowed to play outside.
Excluding children from areas other residents can use could be discrimination This news item reminds us that excluding children from areas that other residents can use could be considered discrimination—even if the intent of the exclusion is to protect them. Here are some tips for working with families with children in a way that complies with fair housing law. When working with prospective residents, it is ok to ask about the number of people who will live in the apartment home, but do not ask questions specifically relating to children. continued on page 23
Rental Housing Journal On-Site
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Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
Supporting Possible Reforms in WA Service Animal Law By: Chester Baldwin, WLA Lobbyist and Attorney at Law
T
he issue of service animals continues to be a source of confusion for landlords and business owners in Washington who have found little guidance in their attempts to balance the responsibilities to accommodate the disabled with the financial and safety concerns of their businesses. There are two federal laws that address service animals. The Americans with Disability Act (ADA) regulates reasonable accommodations for service animals in public spaces. Urban Development (HUD) Agency. But because of a difference in definition between WA law and Federal law, HRC is no longer allowed to do the enforcement in WA state. This means that HUD has direct enforcement actions on WA Landlords currently. HUD’s direct enforcement is bad for WA landlords because HRC’s enforcement was centered around education, and if they found a violation, they would often settle the matter with a class attended by the landlord and no fine. Currently, it is not uncommon for a landlord to receive a fine in excess of $10,000 if HUD believed that a violation had occurred with regard to a “service animal”.
Also, HUD does not distinguish between “service animals” and “comfort animals” in housing matters. This means that there is no training requirements that can enforced by a WA landlord for a “service animal” in their units.
A Smoke-Free
Current Fraud and Abuse in “Service Animals” As a landlord, you are not allowed to ask what medical condition the “service animal” is a reasonable accommodation for, but you ARE allowed to require documentation from a medical
professional that this “service animal” will address the medical condition of the tenant requesting the reasonable accommodation. Unfortunately, I tell landlords weekly in my law practice that if a tenant continued on page 18
Policy Lowers Your Risk of Fires and Damage 2016 Washington Fire Deaths • 11% of fire related deaths were caused by smoking. • 62% of fire deaths were in single-family homes and 20% were in multi-family homes. -Washington State Patrol Office of the State Fire Marshal
Renters Prefer Smoke-Free Housing • About 92% of renters prefer to live in smoke-free housing. -Washington State Department of Health
Get Free Program Assistance • Online promotions and resources at tpchd.org/smokefreehousing. • Email George Hermosillo at ghermosillo@tpchd.org for more information.
Good for Business, Good for Health
It Pays to Go Smoke-Free Rental Housing Journal On-Site · January 2018
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Rental Housing Journal On-Site
8 Ways the Rental Housing Market Changed In 2017
W
hat were the 8 ways the rental housing market changed in 2017, and what can we learn heading into 2018? The folks at RentCafe have put together a report that looks at the rental housing trends in 2017 and analyzed rents from the 250 largest cities The national average rent increased by 2.5% reaching $1,359, about 24% higher than 10 years ago. This means the average American renter paid approx. $400 additional rent over 2017 compared to 2016. The average price for one-bedroom and two-bedroom units increased the most, 3.1% and 3.0% respectively. Rent growth slowed down in the hottest markets. With a 1.7% rent decrease, Manhattan and Brooklyn were among the cities with the most significant drops in 2017. Viva Las Vegas? The City of Lights posted the fastest growth rate of all large cities (6.3%). Facing a housing shortage and pressure coming from big cities, midsized markets saw rents soaring. Sacramento struggled with an 8.8% increase. Small-size cities took the main stage in 2017 with spectacular growth rates.
Renters in Odessa and Midland ended up paying approx. $3,400 in extra rent for the year. 8 ways the rental housing market changed The U.S. apartment rent was $1,359 per month at the end of 2017, according to Yardi Matrix, about 24% higher than 10 years prior when the national average rent was $1,093 per month. The cost to rent an apartment in the U.S. has been rising steadily over the decade, with the lowest price of $1,052 in May/June/July 2010, and
the highest point, $1,363, in August/ September 2017, Nadia Balint writes in the RentCafe report. Across the country, many large cities started to see price decelerations in 2017, while small-size cities were the most vulnerable to rent increases. Renting in 2017 was defined by a much-anticipated price slowdown in the nation’s largest and most expensive rental markets. Several large-size U.S. cities have seen rates either decrease, stagnate or grow slower than the national average in 2017.
Renting in small-size cities took the main stage in 2017. The most spectacular rent increases took place in the nation’s smaller markets, with 63% of the cities analyzed experiencing rent growth above the national average. Resources: 2017 Year End Rent Report – Las Vegas Was 2017’s Hottest Large Rental Market About the report methodology: RENTCafe is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the United States. To compile this report, RENTCafe’s research team analyzed rent data across the 250 cities in the US. The report is exclusively based on apartment data related to buildings containing 50 or more units. Our report includes cities with populations over 100,000 and a rental stock of at least 2,900 apartments in 50+ unit buildings. Rent data was provided by Yardi Matrix, a business development and asset management tool for brokers, sponsors, banks and equity sources underwriting investments in the multifamily, office, industrial and selfstorage sectors.
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Toll Free 800.777.1484 10/23/17 4:26 PM Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
HUD Charges Landlord With Discrimination Over Veteran's Emotional Support Dog
A
n Army veteran, who served tours of duty in Iraq and Afghanistan, was told he could not keep his emotional support dog in an apartment complex and the U.S. Department of Housing and Urban Development has charged the owner and manager of the complex with discrimination, according to a release. "Assistance animals play a vital role in helping our veterans cope with servicerelated disabilities," Anna Maria FarĂas, HUD Assistant Secretary for Fair Housing and Equal Opportunity, said in the release. "Housing providers have an obligation to permit these animals, and HUD ensures that they meet this obligation," she said. The veteran, who served tours of duty in Iraq and Afghanistan, receives disability benefits from the Veterans Benefits Administration for his major depressive disorder and also suffers from anxiety and post-traumatic stress disorder, according to HUD. Apartment owner suggested veteran get a cat instead of emotional support dog
HUD filed the charge against a West St. Paul, Minn., apartment complex which ordered the veteran to remove the dog and suggested he get a cat instead as it was under the complex’s rule of 12 pounds for an animal. The veteran was told he was keeping a dog in violation of the lease. The letter stated that the dog should be removed immediately and warned that three lease violations could lead to eviction, according to the complaint. The veteran
Rental Housing Journal On-Site ¡ January 2018
asked for reasonable accommodation for his emotional support animal and was denied. The veteran then filed a complaint alleging that the owner and manager of Westview Park Apartments denied his request to keep an assistance animal, despite the veteran explaining in detail his right to have the animal. In a letter responding to the veteran's request, the owner suggested the cat, citing the property's policy of allowing
cats but not allowing assistance animals weighing more than 12 pounds. The owner also stated that, even for an animal under 12 pounds, the veteran would need to provide proof that the animal was licensed. Veteran provided proof and certificate of training of emotional support dog The veteran responded by providing a copy of his license for the animal, a certificate of training, and additional information about the animal, but the owner still refused his request, stating the dog had to be removed from the property. He provided a letter from Sutherland Counseling supporting his need for the animal, along with his own written statement describing his symptoms and need for the animal, according to the complaint. He adopted the emotional support dog, a great Dane-golden retriever mix. In a subsequent letter, the manager notified the veteran that he was in violation of his lease by having the dog and that he had two weeks to vacate continued on page 22
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Rental Housing Journal On-Site
Landlords Missing Rent Payments Online After Company Bankruptcy
D
ozens of landlords around the country are missing rent payments online and still trying to collect funds tied up in an online ecommerce dispute that had led to a Kentucky-based online company bankruptcy last month. CC Operations LLC dba eCHECKit, filed a bankruptcy petition in October in Kentucky. eCHECKit is the payment processor for the 13-yearold Fort Collins, Colorado, company eRentPayment, which offers landlords and property managers the convenience of collecting rent payments online. According to eRentPayment’s website, tenants pay rent on the company's secure website and it is processed in the automatic clearinghouse, or ACH, network and then deposited in the landlords' accounts. It is still unclear how many landlords may have received some payments and how many are still missing rent payments online and seeking payments from reports. The Ft. Collins, Colorado newspaper reported, as an example, landlord Wes Kalter's tenants paid their $3,200 rent on Oct. 5, the same as always. The money paid to eRentPayment.com should have made it to Kalter's account within
three to five days. It never showed up, according to the newspaper. Kalter says he has talked to 91 other landlords who are owed about $250,000 in rent payments, and to Fort Collins police. Kalter told the newspaper he is not holding his tenants responsible and blames eRentPayment for "not giving us a route to fix this. ERentPayment is blaming eCHECKit ... all they are telling us is eCHECKit is declaring bankruptcy, and we're out $250,000. They're just blowing us off."
Publisher Will Johnson – will@propubinc.com Designer/Editor Kristin Flores – kristin@propubinc.com
But eRentPayment emailed customers, claiming that recent payments weren't made because of issues with its payment processor, eCHECKit, which filed for bankruptcy protection. The BBB of Colorado and Wyoming said it started getting complaints about eRentPayment Oct. 12 and had received 41 complaints last month and has suspended eRentPayments' accreditation.
Missing rent payments online “In my husband’s and my case, it’s about $4,000 that we’re missing,” Sherrie Mills, a Denver Realtor who owns investment property, told the Business Den. Mills said she has used eRentPayment for three years. Mills told the newspaper she’s disappointed by what she sees as a lack of communication by the rent management company. Next month, she’s avoiding rent payments online continued on page 17
Advertising Sales Will Johnson – will@propubinc.com Terry Hokenson – terry@propubinc.com Larry Surratt – larry@propubinc.com
Rental Housing Journal On-Site is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in Investing & Real Estate Investor Quarterly
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Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
Are Your Social Media Posts Compliant With Fair Housing Laws?
By Ellen Clark
S
ocial media is a great tool for marketing in the multifamily industry to help build strong connections and community with your customers, but did you know Fair Housing laws apply? When you share information in print or in person you may be aware of the Fair Housing issues, but are you watching all of your social media posts as closely? The same rules apply. You are responsible for complying with antidiscrimination and anti-harassment laws, no matter what form of communication you are using. Do you display the equal housing opportunity logo on your social media posts? Last year, ProPublica revealed that Facebook advertisers could target housing ads to whites only. After that report, Facebook said it had built a system to spot and reject discriminatory ads. However, ProPublica recently retested and found lapses in the company’s monitoring of the rental market. Here is what ProPublica said late last year, “Last week, ProPublica bought dozens of rental housing ads on Facebook, but asked that they not
and acknowledge your company’s policies and procedures. Do the same for any agency or service that has access to your social media. When sharing images, show males and females, people of different races, people with disabilities, a variety of ages, and families with and without children in order to comply with fair housing laws. be shown to certain categories of users, such as African Americans, mothers of high school kids, people interested in wheelchair ramps, Jews, expats from Argentina and Spanish speakers. “All of these groups are protected under the federal Fair Housing Act, which makes it illegal to publish any advertisement “with respect to the sale or rental of a dwelling that indicates any preference, limitation, or discrimination based on race, color, religion, sex, handicap, familial status, or national origin.” Violators can face tens of thousands of dollars in fines. Every single ad was approved within minutes.
How is this relevant to property management companies? Discrimination in advertising is prohibited by the Fair Housing Act. It
Rental Housing Journal On-Site · January 2018
is illegal to create, publish or distribute housing ads that discriminate, limit or deny equal access to housing because of membership in any federally protected class. But “advertising” doesn’t just apply to traditional advertising, such as newspaper and Internet ads, banners and signs, and commercials. Social media communications are often considered advertisements.
5 ways to comply with Fair Housing on social media Here are some tips to help ensure your employees use social media in a way that complies with fair housing law. No. 1 - Train everyone in Fair Housing Before being given access to your social media accounts, each person should complete fair housing training
No. 2 – Show diversity in images Consider all federal, state, and locally protected classes. For example, show males and females, people of different races, people with disabilities, a variety of ages, and families with and without children. Show diversity when using avatars, animated characters, and illustrations, too. No. 3 - Use welcoming language Social media messages must not position your community as more or less suitable for someone based on membership in a protected class. Avoid things like racial or ethnic terms, references to religion, exclusions based on disability, and limitations based on familial status. A good rule of thumb is to describe the community, not the people. continued on page 20
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Rental Housing Journal On-Site
DEAR MAINTENANCE MEN By Jerry L'Ecuyer & Frank Alvarez 4: Locate and mark the main gas or fuel oil shut-off valve. 5: Write down and post this information in a public area of your apartment building, including emergency phone numbers and how to get hold of management. Alternatively; Post this information on the inside of a kitchen cabinet door in each rental unit.
Dear Maintenance Men: I want to create a seating and relaxing area in the middle of my building’s courtyard. My thoughts are to use decomposed granite and eliminate the current grass area. How do go about installing the surface without making a mess or a future headache for myself. Bryan Dear Bryan: Decomposed granite or DG for short is a great way to add a durable, natural and water wise surface. A few things you need to know before you get started. The key word in DG is “Decomposed”. In other words, this granite is decomposing. There are three options: raw DG for flower beds, stabilized DG for walkways and resin-coated DG for driveways. For your purpose you need to use a stabilized DG for walkways. It has a binder mixed into the DG. Nonstabilized DG is much cheaper, but will of course decompose, create dust when dry and slush when wet. To properly install DG, dig down three inches overall and use a wood, rock or brick border to keep the edges of the DG from crumbling. As an option, lay down a weed barrier cloth under the DG. Apply DG in one and a half inch layers, water down (don’t flood) and
tamp or use a heavy roller to compress the DG. Wait eight hours between layers to let the DG settle. Repeat the above for each subsequent layer. When installed properly, the DG surface will be rock hard, stable, dust free and will allow water to drain.
Dear Maintenance men: I am aware of having a disaster preparedness kit for my family, however, what do I do for my apartment building? Jason Dear Jason: A quick list of what should be in your family disaster preparedness kit: Flashlight with batteries, canned goods, a Gallon of water per person, a knife, Meds and blankets at minimum.
Now this works ok for a family, but may not be appropriate for an apartment building. The residents may very well shelter in place during a disaster and be fine. What may be in danger is your property! Start with a bit of preventive disaster maintenance. 1: Locate the main water shut-off valve and any minor shut-off valves. Make sure the valves are in working order. If they are gate valves, it might be time to upgrade them to ball valves. Old gate valves are notorious for breaking valve stems at the moment you need them to work. 2: Locate and clearly mark the main electrical panel. 3: Locate and mark the main sewer clean-out. Run a mainline snake or hydro jet at least once a year. (A Friday evening main back-up is a disaster.)
Dear Maintenance Men: I am starting my planning for a major kitchen cabinet remodeling project in my rental units. However, I am having a difficult time making material and design decisions. What recommendations can you give? Allen. Dear Allen, When doing a kitchen or bath material selection, cohesive and functional design is important. Kitchen and bath rehabs are some of the most expensive work you can do in an apartment unit and proper planning is a must. In order to appeal to a larger segment of the population, try to keep the interior color scheme to neutral earth tones. Cabinetry quality varies greatly. Don’t let the cabinet fronts fool you. continued on page 23
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Rental Housing Journal On-Site · January 2018
711 Powell Ave. SW, Suite 101 Renton, WA 98057 (425) 656-9077 • (425) 656-9087 (fax) admin@wmfha.org
Executive Director - Jim Wiard Treasurer - Mike Simons
Board President - Sheri Druckman, CAPS Vice President - Laura McGuire, CAPS Secretary – Shar Eller Vice President of Suppliers Council - Kenneth Baff Immediate Past President - Becky Sanders, CAPS
New Year’s Resolution
W
MFHA’s New Year’s resolution is to raise the expectations for ourselves and our members in 2018. At a recent Board of Directors Retreat, our Board and staff took part in training written by Sam Parker called “212, the extra degree”. The premise of 212 is that at 211 degrees, water is hot, but at 212 degrees, water boils. With boiling water comes steam. Steam can power a train. Applying one extra degree of temperature to water means the difference between something that is very hot and something that generates enough force to power a machine. Seemingly small things can make a world of difference. Board members and staff were challenged to consistently push ourselves and each other to give that little but critical extra effort, that one extra degree, metaphorically, in every task, action and effort we undertake. As such, as we embark upon a new year, there is optimism for a strong and successful path for our association. This confidence is due to the advances and building blocks achieved during an outstanding 2017. Our association is stronger, prouder, more inclusive and more determined to serve the rental housing industry with professionalism and creativity. 2017 was another year of tremendous growth for our association. Growth allows us to better serve our members, develop resources and gain credibility as the leader for rental housing needs in our state. As we look forward to our annual Strategic Planning meeting, January each year brings renewed focus to our strategic vision and to our mission: The Washington Multi-Family Housing Association (WMFHA) is a statewide organization committed to: Advocating for legislation favorable to our industry Providing educational opportunities to promote career development Celebrating and supporting all facets of the multifamily industry Strong leadership in advancing the valuable contributions the housing industry makes to local economies requires continued grassroots advocacy by educating policymakers and elected officials on the need for a practical regulatory environment. Our industry’s commitment of service to the residents of our housing make it critical that elected officials represent a balanced approach to housing regulations. Our Government Affairs efforts will continue to focus on intelligent solutions
and we will strongly oppose detrimental policies that undermine our industry. 2018 will be a year when the association will continue to find ways to recruit new talent into the career of Residential Property Management. There is a shortage of new talent in our growing industry and we will focus on new efforts to share this great industry and career opportunities with career-seekers. Our educational programs in 2017 broke many attendance records, and we expect more educational development opportunities for our members in 2018. National designation courses provide learning to those who want to increase their knowledge, skills and performance. Our member companies are fully committed to the development of their employees, which gives them a competitive advantage and ensures they are leading not following. We have a huge volunteer base of talent here at WMFHA. Our committee volunteers, Board leadership and executive level support have grown exponentially in recent years. Members are “All-In” for WMFHA, and WMFHA is “All-In” for our members. Our most rewarding successes in 2017 involved our many charitable efforts. WMFHA has partnered with several social service organizations to meet the important needs of our communities, and our membership support resulted in over $85,000 in combined contributions to charities we work with. In this ever-changing world, members support each other through the sharing of information and resources, by building professional and personal relationships with others in the industry, and by giving back. Our many sold-out informationsharing events such as EdCon, the most beneficial education conference and tradeshow in the market, the Washington Apartment Outlook economic forecast presentation, and our prestigious Emerald Awards gala, brought people together to learn and celebrate. Our events in 2018 will be even more robust and valuable. Our ties to the National Apartment Association are stronger than ever before. Resources from NAA benefit our members and our association leadership. WMFHA continues to receive awards and recognition from NAA as a leading organization across the country. This month, we rolled out a new website at www.wmfha.org. We encourage everyone to go to our website for valuable information and to see what your association is working on. There will be pertinent articles, news and posts. Our Legislative Action Center will allow our members to stay current Rental Housing Journal On-Site · January 2018
on state and local legislative matters that impact their businesses. There is an easy way to give to our efforts by contributing to the Political Action Committee. The pooling of PAC dollars gives us a powerful voice on legislative issues as we support candidates for office that understand the valuable contributions of our industry. Our website includes an advanced Membership Directory for ease of our members to do business with each other. Check out the calendar of events and classes weekly to ensure you do not miss out on valuable opportunities that benefit you, your property or your business. Join our association and receive ongoing communications that you need to operate your business. We are lucky to be able to serve our industry, our members and the community. The rental housing industry is a valuable customer service focused industry that continues to grow as the
housing needs of our state grows. Our resolution is to do our very best to conduct business to the highest standards of professionalism, respect, quality, and integrity, ensuring a positive public image of our work. We will be proactive on issues facing our industry, respectful of the opinions of others, and faithfully exhibit a duty of care as a steward of housing opportunities for all. To become involved in this great organization in 2018, call us at 425-6569077 or visit our website at www.wmfha. org. Follow us on Facebook for up to date information on association activities. Thank you for allowing us to serve.
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Rental Housing Journal On-Site
Pet DNA Testing...continued from page 1 The pet poop problem can affect your whole apartment community and pit tenant neighbor against tenant neighbor. Your city government may decide your pet waste is polluting the local watershed - which the Environmental Protection Agency will confirm - and decide to fine the landlord, not the tenant. Unreasonable burden on landlords? In Chicago, the city had been reviewing an ordinance that would allow city inspectors to fine landlords and property owners who didn't pick up dog poop on their property up to $500. Cherie Travis, former director of Animal Care and Control and the owner of a pair of two-flats in Chicago where she allows pets, told the Chicago Tribune, "I have multiple units — I can't check every day. That's an unreasonable burden to place on landlords. "The result of this ordinance, admittedly unintentional, is that landlords will not rent to people with dogs. If a tenant cannot find an apartment with a dog, they will either move out of the city or they'll surrender their dog. Those are the two choices," Travis told the newspaper. She suggested the ordinance be retooled to "keep the responsibility on the dog owner, which may or may not be the property owner." So a growing number of apartment complexes are finding a solution in a company that handles the pet DNA testing necessary to fix the poop pickup problem.
How can you make the tenant responsible for the pet poop? Here is how it works: Your tenants swab the inside of their dogs’ mouth and provide you that sample DNA for you to send to a company in Knoxville, Tennessee called Poo Prints. When you find poop in the yard that a tenant failed to pick up, you can send a sample to the company and they will identify the offending dog so you can then take it up with the tenant. “The number one thing for apartment complexes is, ‘How they can clean up the property and make people responsible?’ for their dogs,” said Ernie Jones, sales manager for BioPet Laboratories, which manages the Poo Prints program. He said some have tried cameras, but that is a huge ongoing expense that requires employees to monitor. And sometimes the video is grainy and hard to see. “One of the biggest advantages is, it takes away the denial from the tenant about whose dog left the poop on the property,” Jones said. “And it helps avoid the neighbor vs. neighbor accusations about whose dog was responsible for the poop.” Poo Prints has more than 1,750 apartment properties in the program across the country. “We are growing steadily, adding three to six properties a day. We will be at 2,000 properties by the end of the year,” Jones said.
Who bears the cost of the pet poop program? So how does the business model work for the company and the apartment properties? “The business model is a startup fee – the dog registration – and the poop processing is profitable at the start,” for us, Jones says. His profitability declines as the residents and the complex keep things cleaned up, but it is never 100% and there are still cases of poop violations his company will handle. “The main objection for apartments is the start-up costs. If a complex has 100 dogs at $40 per dog to get started, then that is $4,000 that has to come from somewhere that is usually not in the property’s budget,” Jones said. However, “once a program is in place, it creates increased occupancy,” he said. “It is just in the beginning and the immediate rollout that is sometimes an issue. In terms of rollout when people want it, it takes about a year in an existing complex to get the program in place.” “Typically the pet owner bears all the cost,” Jones said, and “not the apartment complex itself. Typical startup cost is $40 to $60 per resident dog. Some apartments have to ‘grandfather’ in existing pet owners and gradually start the program with new residents and when leases come up for renewal.” Tenant fines are typically the way apartments handle the violations when poop is found. One Chicago complex fines tenants $250 for the first violation, and $350 after that that, according to
the Chicago Tribune. Depending on different state regulations, apartment managers may not be able to use the word “fine” when they discover the offenders and want to assess a penalty. Apartment owners will need to check their state regulations on wording for how they can assess a monetary penalty. For instance, “Oregon is tight on how they let the apartments charge tenants for violations,” Jones said.
The environmental issue around pet poop In addition to keeping apartment grounds clean, there are issues with the Environmental Protection Agency from a water pollution and safety concern. “Dog waste is thousands of times” more polluting than you may think, Jones said. “The average person today thinks of dog waste as simply a nuisance when they step in it. They are also under the assumption that it simply turns into fertilizer, as other waste,” the company said in a release. “In fact, dog waste is not fertilizer and does not simply deteriorate; instead, dog waste is the most contaminated waste of any animal. Their bodies have adapted over the years to digest any type of foods; as such, they produce huge quantities of bacteria, including E-coli. “ Other pet facts from BioPet Laboratories: Dog waste has been ranked as the #6 consumer complaint. continued on page 22
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Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
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Rental Housing Journal On-Site · January 2018
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Rental Housing Journal On-Site
Pet-Friendly Rentals: Pros and Cons
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roperty managers have to make some hard choices when they decide to establish rules for their rental units. According to a helpful report from Michigan State Extension, deciding to allow or prohibit pets might be one of those tough decisions. Before deciding, it’s a good idea to carefully examine the pros and cons of running a pet-friendly rental property.
Pros and Cons of Pet-Friendly Rentals Obviously, properties that allow pets can expect to attract a wider range of applicants. According to Michigan State Extension, pet owners may tend to be more responsible because they have assumed responsibility for a pet. In many ways, pet owners aren’t so different from parents. They may also tend to keep their leases longer, perhaps because they have fewer choices about where to live. It’s also important to be aware of the laws allowing
service animals; it’s critical to remain compliant to avoid legal issues.
Drawbacks of Allowing Pets In While it’s easy to agree that few people have anything against pet owners, it’s the pets themselves that may cause a problem. Property managers may have a few problems when they open their doors to lots of animals: Dogs may bite, threaten, or annoy other residents. They could generate insurance claims and even cause some people to move out. Some renters may have serious allergies to pets as well. Pets cause odors and make messes. If renters don’t clean up after their animals, the property may incur additional costs. Insurance companies may raise premiums for some kinds of pets. Since some animals pose additional risks, insurers may charge property managers more for insurance.
Why Consider Having a Pet-Friendly Complex? One thing that might offset some of the risks and costs of allowing in pets is the chance to earn more money. For instance, pet-friendly rental properties can increase revenues by charging extra fees or even non-refundable cleaning deposits to pet owners. It’s up to the property managers to make sure this extra revenue offsets extra cleaning or insurance costs. Also, by increasing the available pool of applicants, some properties may even be able to charge higher rents. At the least, it should be possible to increase occupancy rates in some properties that have been difficult to rent. Steps to Take Before Opening a Property to Pets First, property managers should check with their insurance companies to see if allowing pets will impact their premiums. Some insurers allow most breeds of dogs, cats, fish, and birds with a minimal or even no additional charge. Allowing pets doesn’t mean that the property has to allow all kinds of pets. Obviously, few property managers would be happy to see a renter move in with an adult chimp or six-foot python. However, it’s reasonable to consider allowing typical pets. It’s also a good idea to ask renters to purchase renters insurance to cover their own liability, keep dogs on leashes when they are outside, and so on.
In addition, it’s only sensible to consider adding an additional pet fee or deposit to the rent for cats or dogs. Also, it might be important to consider a provision in the lease that ensures that maintenance people can have access to the apartment to make repairs and not have to worry about a protective pet who wants to guard his property. Because of this, some properties limit the weight of dogs; but other properties only restrict certain breeds. Also, consider some reasonable limit for the number of pets allowed in each unit. Few properties allow more than one or two dogs or cats. Finally, property owners might survey current renters to find out if they have strong objections to having pets as neighbors. If a renter does have an allergy or strong objection, it’s probably wise to consider that individual’s needs on a case-by-case basis.
Are Pet-Friendly Rentals Also Management-Friendly Rentals? By completely barring pets, a rental property might also be barring an entire group of renters. Property managers might explore their options so that inviting pets into their property works out in their favor and doesn’t bother existing renters.
We help clients resolve landlord-tenant cases involving evictions, litigation, fair housing complaints, leases, and other tenant disputes.
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Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
253-565-2488 Rental Housing Journal On-Site · January 2018
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Rental Housing Journal On-Site
Is Your Property Really Connected? By Elizabeth Millar, www.appfolio.com
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oday’s renters look for homes that meet their digital needs. The National Association of Realtors recently published an article about redefining community spaces – making them more digitally friendly for apartment shoppers. While many multifamily properties don’t have the budget that a municipality does to invest in an Internet of Things (IoT) infrastructure, we found some interesting ideas that you can use to make your property more appealing to prospects and current renters.
Update Your Property’s Reception Area The trend is already starting, properties are starting to have a lobbyiPad. We aren’t suggesting you ditch the community computer, but you could be doing so much more to attract and retain tenants. The lobby iPad (or community computer) can serve not only current residents, but allow interested renters to apply on-thespot while they are checking out the property. Pew Research reported that there were still 13% of Americans who didn’t use the internet last year, so making it possible for these renters to comply with leasing rules is essential. By the way, 57% of these non-connected people are 50 or older, so if you service retirees, and those nearing retirement
age, consider offering a mini-course for new residents on how to use the portal. For younger tenants, and those who are connected 24/7, adding a docking station, or furniture that has built-in Wi-Fi and charging capabilities will send a message your company embraces modern technology.
Take Advantage of Solar Energy Do you have wonderful green spaces that draw prospects to your property? Think about adding a solar-powered charging station. Options currently on the market include benches, free-standing night lights and even recycling bins or trash cans. Properties on the local bus route might consider offering access and charging services in a hut that provides protection from the weather, bike racks, and a seating area.
Boost Security and Increase Renter Satisfaction with IoT Did you know that 86% of Millennials would be willing to pay roughly 20% more in rent if they could find a rental unit equipped with remote thermostat controls, smart locks, and automated lighting? When you’re considering whether to include free Wi-Fi as part of the lease package, explore options for keyless entry, smart locks on the community pool and in-unit features that appeal to your resident demographics. Offer Something Free (Just Because You Can) Having Wi-Fi access in a rental residence is almost three times as important as having an in-unit washer and dryer (34% compared to 13%).
*Rental Housing Property Management • Single Family home rentals • Condo / Townhome property rentals • Multifamily rentals • Apartment complex rentals
Not offering free Wi-Fi may soon be the equivalent of not offering air conditioning or indoor plumbing. Adding the service may be less than $5 per unit, depending on which geographic area you’re located in and your local provider. While we are talking about convenient access, let’s talk about helping your tenants manage their time better. Converting your laundry room into a smart facility might include updating with web-connected washers and drivers that let tenants pay with a smart card or electronic wallet, and check machine availability and the status of their laundry from the mobile device. They can also send in a maintenance request if a machine isn’t working, and managers can monitor revenue per machine and maintenance requests remotely, too. Modern tenants and property managers both appreciate the convenience that comes with modern technology. Sometimes property managers focus heavily on staying up with their competition. When it comes to being connected, taking the lead may be the best approach when you want to boost occupancy and retention rates. Henry Ford, Sr. once said, “The competitor to be feared is one who never bothers about you at all, but goes on making his own business better all the time.” Are you following the pack or blazing new trails?
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Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
Can I Say "No Pot In My Apartments" When It’s Legal In My State? By John Triplett, Rental Housing Journal
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roperty managers are often confused and seeking to better understand how to handle the issues of legal marijuana and medical marijuana when it comes to tenants and rental housing in their states. Laws are changing all the time in many states, just as California did on January 1, 2018, as voters approve different levels of permission when it comes to marijuana. This leaves property managers trying to figure out what should be in their leases around the issue. You may be able to ban smoking, but do you really know what your tenants are eating or growing in their apartments? Do you really want to know if they are good paying tenants? Rental Housing Journal did a recent interview with Seattle, Washington
attorney Bret Sachter, an expert in tracking the progression and transformation of marijuana laws, to discuss some common questions property managers have about marijuana and tenants. “I’ve been asked this a lot,” Sachter said, “but it does not come up as often as you might think. The overarching issue here is that, with few exceptions, people can do what they want to protect their property, even if the prohibited behavior is not illegal. You can prohibit smoking, prohibit pets, but with marijuana it’s much easier because it is federally illegal. So you can pretty much prohibit it if you want to no matter what, even medical marijuana,” Sachter said. 4 questions about pot, tenants and apartment leases
Sachter says in terms of Fair Housing issues, and the U.S. Department of Housing and Urban Development (HUD) it is a situation where HUD wants it in the lease that marijuana is illegal but enforcement is another issue, he said. It is not so much that HUD wants landlords to evict over marijuana, but that you have something in the lease language that allows for eviction in the instance of marijuana use on the property. “So it is pretty clear as far as HUD is concerned,” he said. Here are his answers to four questions on pot and apartments.
No. 1 - Tenants with a disability and medical marijuana Question: If a tenant comes in and says I have a disability, here is a note from my doctor, I use medical
marijuana, which is legal in this state, and I want to rent your apartment. Can a landlord prohibit that? Answer: “A landlord can absolutely prohibit that because marijuana is illegal under federal law.” The landlord can say, “I understand our state allows medical marijuana but as it is still a Schedule 1 drug and I prohibit it on my premises.”
No. 2 - Marijuana is legal in my state - but what does the lease say? Question: What if a tenant says marijuana is legal and they should be allowed to use it? Answer: “If your lease prohibits smoking and prohibits use of illegal drugs, then the legality of marijuana continued on page 21
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Rental Housing Journal On-Site
Landlords Missing Rent Payments ...continued from page 6 at the state level is irrelevant because under federal law marijuana is illegal. If your lease does not have those types of clauses, you should talk to an attorney in your state or city to find the best solution for your lease.” There is no law about reasonable accommodation for marijuana users, federal laws do not require it. As far as the federal government is concerned it is not ok. “One thing I would say, and it is important, I would encourage landlords just to make everything clear,” in the leases, he said. “Clarify in a lease that you must abide by all laws state and federal.” That is the case in residential. He said it can be different in commercial. (There was a commercial case in Oakland, California and you can read more about it here.) “But In residential it is not as tricky, and I am speaking very generally here,” Sachter said. “The states may have their own thing going on with legal marijuana laws, but it is still federally illegal. Make it crystal clear in your leases is my best advice,” he said. “How can you attract tenants in a state where it is legal yet protect the owners of the property? You cannot have it both ways.” “I know in Seattle there are Airbnb bed and breakfasts that specifically market themselves accordingly, as part of marijuana tourism to come and stay in our place where it is legal.” But if a property manager doesn’t want that going on, then they have to be up front in the lease.
“If your tenant is Airbnbing to a tenant who is then using marijuana – well if you can’t catch them you cannot do anything about it. You have to prove they are doing this. They are going to be using marijuana regardless of what the lease says.”
Technically, in Washington, a landlord would serve a 10-Day notice to comply or vacate with the terms of the lease. This process, therefore, gives the tenant a chance to “cure” the violation before the landlord can evict. Check your local state laws on this.
No. 3 - What if the tenant using marijuana is a well-paying, good tenant? “Landlords can certainly put a nowaiver clause in the lease. If I say, ‘Here is a list of prohibited things’ and if you do these prohibited things in the lease, you are subject to eviction,” he said. “However, any time I waive any of these things does not constitute an overall waiver. It basically means you should not ever do it again,” he said. “Just because you get away with it once, does not mean you get away with it every time,” Sachter said.
What one experienced property manager says about pot Sam Driver, Product Director for Buildium.com, and an experienced property manager at the property management software company, said as far as marijuana use in apartments, due to the newness of the legislation, the federal laws that supersede state and county laws, and liability concerns, it is not a topic that comes up a lot - yet.
“Generally, the safest solution is to choose the most conservative pathimpose a no-smoking policy, which can in some cased cover outside areas, and a crime provision that includes local, state and federal laws. In many states, there are setbacks from doors, and it is particularly important if the building is a place of work which a multi-unit apartment building certainly is. So your lease should contain a provision explicitly banning smoking and illegal activity. Because the feds still outlaw it, this should be sufficient,” Driver said. “This of course only covers the smoking angle. If a resident consumes it in another way, you'd likely never know,” he said. continued on page 21
No. 4 - Can I say 'no pot in my apartment?" “Usually if you say, ‘No pot in my apartment’ and you find a tenant using marijuana and you haul them into court, more than likely the judge is going to say, ‘Have you stopped?’ to the tenant and ‘Are you going to do it again?’ and the tenant is going to say ‘No.” And then judge will say, ‘Ok, dismissed.” To put a more legalistic term on it, usually a court will be in favor of “allowing the tenant to cure the defect,” rather than evict for most things like that, Sachter said.
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Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
Landlords Missing Rent Payments ...continued from page 6
and asking tenants to cut her a check. “I think it’s turned me off permanently,” she said. “At no point did we think our funds were at risk.” Multiple posts by various landlords around the country on Bigger Pockets discuss what has been happening with the payments. Rick Sands, president of eRentPayment, wrote on his company Facebook page, payments made through the site now are being
processing by New York-based Esquire Bank, and those made after Oct. 12 are being processed without issue. The latest Facebook posts from the company, however, indicate that some payments from early October still had not reached landlords’ bank accounts. The posts have attracted dozens of comments from frustrated customers, according to Business Den. The issues faced by Kentucky-based payment processor eCHECKit, have put Tempe, Arizona’s Check Commerce in the middle of the dispute, according to a report by the East Valley Tribune. The newspaper reported the Tempebased company, rent payment online processor for eCHECKit, froze over $4 million of eCHECKit’s funds in a reserve account due to irregularities it noticed in debit and credit instructions that eCHECKit submitted on behalf of its merchants. In a notice to consumers, Check Commerce stated, “At that time, Check Commerce believed that eCHECKit lacked sufficient available funds to cover the corresponding credit transactions for the debits it had submitted on behalf of its merchants,” according to the newspaper. The issue began when property owners using the eRentPayment online platform realized they had not received automated clearing house payments submitted by tenants in early October, the newspaper reported. It became clear that issue stemmed from financial problems faced by eRentPayment’s payment processor, eCHECKit, the newspaper reported.
Rental Housing Journal On-Site · January 2018
eRentpayment said on their website last month, “We regret to inform you that our payment processor, eCHECKit, has informed us that it expects to file for bankruptcy protection. We are told that it suffered losses due to a fraud and that its processor, Check Commerce, has held over $4 million of its funds and will not release the funds to the intended recipients at this time. Please note that eRentPayment had nothing to do with the fraud eCHECKit suffered. It was apparently caused by another client of eCHECKit, according to a statement on erentpayment.com. “The transactions potentially affected were submitted after approximately 7:31:00 PM (Pacific time) on 10/03/2017 through approximately 7:01:33 PM (Pacific time) on 10/12/2017. Any transactions submitted after this time period should not be affected as they are being processed through eRentPayment’s new direct bank relationship. Similarly, any future transactions should not be affected as they will be run through the new direct processing relationship. “We do not know if or when Check Commerce will send the pending transactions to the recipients. Accordingly, you should consider your options including having the tenant contact his or her bank to request the transaction be reversed. Specifically, the tenant may initiate a return for an “Incomplete Transaction.” We understand that the return code for this is “R10” and the bank will require a written statement from the tenant. Also, the tenant will have a limited time
period to request the return from his bank, usually within 60 days from the date of the transaction,” the company said on its website last month. “We are contacting the Attorney General of Arizona, the National Automated Clearing House Association, and reviewing legal action against the relevant parties,” according to eRentPayment. Resources for rent payments online Ft. Collins Company At Center of Rent Payment Dispute Disappearing rent payments frustrate customers of Fort Collins firm Tempe firm’s $4M dispute sticks landlords nationwide Kentucky Western Bankruptcy Court Case 3:17-bk-33389 Online rent payments to Virginia. Beach landlord held up by bankruptcy
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Rental Housing Journal On-Site
Service Animals ...continued from page 3 brings a note signed by any medical professional with letters after their name, and that letter says that the tenant’s “service animal” will address the tenant’s issue, Service Animals - Current Problem Due to differences in State and Federal Law, it can be next to impossible for a Washington landlord to understand their rights and obligations when a service animal accommodation is requested by a tenant. This generally happens AFTER a landlord has discovered an undisclosed dog (or snake) at the residence which does not allow such pets (or may require a pet deposit); now the tenant is claiming that it is a “service” animal in order to keep the animal at the residence. Service Animals in Washington have historically been regulated under the ADA by the WA Human Rights Commission (HRC) under the Federal authority granted by the Housing and then the landlord is likely stuck with the “service animal”. The current problem allows an unscrupulous tenant to claim that any animal is a “service or comfort animal” after being found in the unit with an unallowed animal. Additionally, tenants can currently purchase these medical authorizations for fake “service animals” online very easily.
Possible Service Animal Legislation in 2018 With landlords worse off with enforcement under HUD, the Washington Landlord Association
believes that unscrupulous tenants should be subject to penalty and fine for fraudulently claiming an animal is a “service animal” when it is not. Additionally, creating a standard form that requires medical professional to swear under penalty of perjury that the animal accomodation is legitimate would be a good first step in curbing the abuse currently happening with “service animals”. WLA’s Government Affairs Team will be working with Lawmakers in Olympia, the Washington HRC, and the other stakeholders to determine whether legislation is possible that could bring about meaningful revisions to the current policy and allow enforcement of service animals by HRC instead of the Federal Government under HUD. There will be regular updates about this service animal issue available on the WLA website at www.waapt.org . You may also contact me directly at chet@lobbywa.comif you have any specific questions about service animals or legislation affecting landlords in Olympia.
(WLA) Government Affairs Team, as well as other WA housing associations, are working with lawmakers in Olympia and the HRC to determine whether meaningful reforms could be enacted to allow HRC to again educate landlords instead of being hammered by HUD enforcement.
Reform for Fake “Service Animals” Any potential legislation that WLA would support in Olympia will have to have significant modification to the abuse being perpetrated by unscrupulous tenants and fake “service animals” currently. WLA’s Government Affairs Team
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Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
Pet DNA Testing ...continued from page 10 The EPA ranks dog waste as an environmental problem equal to toxic chemicals and oil spills. According to one study, which has its critics, an average dog has twice the carbon footprint of an SUV. One dog dropping contains 3 billion bacteria. Because it does not evaporate, the poop goes into the air and ground water, creating major contamination. Studies have shown that waste from 100 dogs, in one day on a river bank, can contaminate the water for 1 mile downstream. The EPA classified pet waste as a dangerous pollutant. And this doesn’t come from folks jumping on the “green” bandwagon; this classification was made nearly 20 years ago, according to Animal Wellness Magazine. In 1991, the Environmental Protection Agency classified dog waste as a "non-point source of pollution," which puts it in a category with oil and toxic chemicals. According to the EPA, a single gram of dog waste can contain up to 23 million fecal coliform bacteria, which is capable of causing cramps, diarrhea, intestinal illness and kidney disorders in people, according to a story in the Knoxville News-Sentinel. As for its effect on the watershed, waste from 100 dogs could add enough bacteria to temporarily close a bay and watershed areas within 20 miles to swimming and shell fishing, the EPA estimates.
Seattle watersheds example of dog poop problem All solutions begin with excrement pickup. If you are among the 38% of dog owners who scoff at this duty, according to a story in the Los Angeles Times, consider what DNA tests revealed about the bacteria in Seattle watersheds: Although 90% or more of it comes from animals in general, some of them wild, fully 20% of it is traced back to the guts of dogs, according to the newspaper. The EPA’s Clean Water Campaign puts it, "If you think picking up dog poop is unpleasant, try swimming in it.” Cities are going to start leaning on the big apartment complexes from an environmental standpoint to clean up their grounds to stop the runoff contamination. Dense urban areas are a particular problem. “Dog waste draws rodents, rodents draw feral cats,” Jones said. His company said in a release, “One other major issue seldom understood is that rats eat dog waste: the more left on the ground, the greater the rat population and also the diseases they can pass on. Many major cities have reported a large increase in rat numbers in parallel with the growth of their dog population. This is not about whether someone doesn’t like to pick up their dog’s dropping. This is a social responsibility and about protecting the environment.” Current compliance systems not working Dog waste can be disposed of properly, the company says, but not by
Rental Housing Journal On-Site · January 2018
the present system of compliance. “Every community has tried signs and public information programs. Some have even spray-painted the waste to show its prevalence. None of these methods have worked,” the company said in the release. “Dog owners must be accountable. And the only proven way to make that happen is with DNA detection.” Do tenants try to beat the system? Jones said apartment complexes have issues with tenants who try various means to avoid the DNA fee, such as hiding dogs to avoid registering their pet during a rollout. One tenant with a white bulldog came up with another plan to beat the system. Jones tells the story of one property in the program that kept picking up poop and getting “no matches” and could not figure out what was going on. The mystery was solved when they found out that a tenant who had registered his white bulldog bought a second, almost identical, white bulldog he did not register. He walked them one at a time so most people could not tell which dog was which. Eventually it was discovered that the second white bulldog turned out to be the source of the “mystery poop.”
poop samples a month from around the country. The U.S. Postal Service delivers all the samples in special-leak proof bottles with a special solution that protects and preserves the DNA. Apartment property managers say the DNA testing works to solve the problem Arizona Republic. Violators are assessed a $250 fine. Tomlinson said the program has proven an effective deterrent, as only one person has been assessed the fine in the past year. "We told them it was their dog, charged the $250 fine. They weren't happy, but then they tell their friends because they're (upset)'' he told the newspaper.
If a property finds poop what happens next? All the poop samples come into the company headquarters in Knoxville from across the country. Jones estimates they get 700 to 1,000
Did you step in doggie doo? Nab the culprit.
Related story: Apartment Pet DNA Testing Expands To “Travel Dog” Concept Resources: Dogs and the environment Pollution fact sheet on animal waste Poo Prints Dog owners beware Dog waste etiquette Tempe apartments getting the scoop
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Rental Housing Journal On-Site
Social Media Posts ...continued from page 7 procedures to help social media posts comply with the FHA. Guidance for using information customers post on social media without violating the FHA. Strategies to avoid and handle problematic social media posts in ways that comply with the FHA.
No. 4 - Designate a point person to regularly review all social media posts Reviews should look for words or images that discriminate, limit or deny equal access to your community based on membership in any federally, state or locally protected class. Also look for posts in which prospective or current residents indicate they feel they’ve been treated unfairly, don’t feel welcome in your community, or feel they are being discouraged from living in your community. No. 5 - Display the Equal Housing Opportunity Logo Always show the Equal Housing Opportunity slogan, logo or statement on your social media pages and on your website.
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Make sure employees understand that it is important to be just as mindful of fair housing laws when sharing information and interacting with customers online as it is when sharing information and interacting in print and in person. The same rules apply. They are responsible for complying with antidiscrimination and anti-harassment laws, no matter what form of communication they are using.
For more information Grace Hill has a mini-training course on this issue that covers: How to apply the FHA’s rules about discrimination in advertising to social media posts. How to develop policies and
Resources: Facebook (Still) Letting Housing Advertisers Exclude Users by Race Fair Housing Advertising
About the author:
ing learning studies. Later, at Kaplan Inc., she worked in the vocational education and job training divisions, improving online, blended and face-to-face training programs, and working directly with business leadership and trainers to improve learner outcomes and job performance. Ellen lives and works in Maryland, where she was born and raised. About Grace Hill
For nearly two decades, Grace Hill has been developing best-in-class online training courseware and administration solely for the Property Management Industry, designed to help people, teams and companies improve performance and reduce risk.
Ellen Clark is the Director of Assessment at Grace Hill. Her work has spanned the entire learner lifecycle, from elementary school through professional education. She spent over 10 years working with K12 Inc.’s network of online charter schools - measuring learning, developing learning improvement plans using evidence-based strategies, and conduct-
Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
Say No to Marijuana ...continued from page 15 Growing marijuana could put a power load on your apartments “As for growing, that's less clear. But in general, unless the electrical system is designed for it, the loads grow lights put on the apartment unit could be excessive. I'd consider a reasonable use clause that specifies all high load equipment, including lights, air conditioners and any kind of pump be approved by you. “This would put you in a position to take action if they are putting too much load, without specifically calling out the use of the equipment. Pumps are a good area for monitoring, because of the intermittent load, they trip breakers, and anyone who is using a hydroponic system would need several,” Driver said. What if I want to market my apartment to marijuana users? “If, however, you wanted to roll the dice and market to this crowd, assuming your state laws allow it, remember that the federal laws would cover any bank deposits from proceeds," Driver said. “In this case, you'd be able to do it, assuming no federal intervention, in compliance with local laws. No insurer would provide EO&E (errors and omissions excepted) insurance to you, and you wouldn't be able to deposit any funds into a federally-accredited bank. So you'd have to self-insure, and run an entirely cash business, but you could do it, risking only federal enforcement. “The big question is, 'Would the premium rents be worth the risk of
• Arizona:medical marijuana is legal 2.5 ounces usable, 12 plants • Colorado: 2 ounces useable, 6 plants, 3 mature, 3 immature • Utah: prohibited with a few narrow exceptions About Bret Sachter:
forfeiture?' If you run afoul of the federal drug laws, the asset seizure possibility is a huge risk. You could lose the building. “If you're managing other owners' properties, then you'd be risking their assets even if you used different leases, unless you kept fully separate books, bank accounts, and co-mingled nothing. So I'd say it would be all-ornothing," he said. “The timing is tricky, too. Leases contain a provision that stipulates that the contract is in force in a specific jurisdiction. If they change the laws rendering your lease out of compliance, what happens during the remaining time of the lease? Is it invalidated? Or does the contract remain in force until it expires? “Good questions for your lawyer,” Driver said.
How to keep up with status of pot laws in the different states ProCon.org, a 501(c)(3) nonprofit nonpartisan public charity, provides professionally-researched pro, con, and
related information on more than 50 controversial issues from gun control and death penalty to illegal immigration and marijuana laws across the country. "Using the fair, FREE, and unbiased resources at ProCon.org, millions of people each year learn new facts, think critically about both sides of important issues, and strengthen their minds and opinions," according to the company's website. Here are where the pot laws stand for medical and recreational marijuana in several states, how it was passed, and what is permissible in the possession limit, according to procon.org. You can see their excellent full chart here state by state. Keep this link as they update the ever-changing pot laws in the different states. Here are what some some states are doing with links to more information on each state's pot laws. • Oregon: Ballot measure 67, 24 oz usable; 24 plants, 6 matures and 12 immature • Washington: 8 ounces usable, 6 plants
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As a Presidential Scholarship recipient, Bret received his law degree from the Seattle University School of Law. In addition to his law degree, Bret holds a bachelor’s degree in evolutionary psychology and master’s degree in psychology. Bret has taken an interest in tracking the progression and transformation of marijuana laws, as they are among the most recent and highest-profile legal issues affecting entrepreneurs in Washington and, increasingly, all around the country. You can call him at 206295-2547 or visit his website here.
Resources: Everything to know about California marijuana laws kicking in Jan. 1, 2018 Ask An Attorney: Can my landlord forbid me from growing marijuana at home? Proposed bill would allow Washington residents to grow pot at home Arizona weed laws, what to do about legislation after prop 205 defeat 29 legal marijuana states and DC Smoke pot in Oregon? Your name is now protected from the Feds Retail marijuana use within the City of Denver Utah marijuana laws Real estate concerns in the cannabis industry: Case study
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Rental Housing Journal On-Site
Rents Unchanged ...continued from page 1 “Although the results are somewhat negative compared to recent history, what’s notable is how consistently strong the market has performed during the entire recovery,” Yardi Matrix writes in the report. Outlook for 2018 rents still good especially secondary markets The question for 2018 is how much more steam is left in the market, whether the deceleration will continue or if it will level off or turn negative, the report says “Our view is that growth will continue at roughly the same rate nationally, led by strong demand. The economy shows no signs of slowing down, as GDP comes off two strong quarters and should get at least a boost from lower corporate and personal tax rates, while job growth continues to impress. “Combined with the growth of the young adult population, household formation should remain robust. The consistent national numbers mask a great deal of movement on the metro and submarket level. Secondary markets such as Sacramento, Orlando, Las Vegas, Salt Lake City and Colorado Springs with affordable rents and growing populations should see above-trend increases. Business-friendly markets such as Dallas and Atlanta should see a slowdown in rent increases, but see moderate gains nonetheless, while expensive coastal markets such as New York City and markets with excessive
Emotional Support Dog ...continued from page 5
supply growth are likely to see little or no gains. West Coast markets saw weak fourth quarter West Coast markets, specifically those in the Pacific Northwest, were the weakest on a T-3 basis. Seattle (-0.8%), Portland (-0.5%) and San Jose (-0.5%) saw rents decline due to a combination of oversupply and historically expensive rent levels See other Yardi Matrix reports here. About Yardi Matrix: Yardi Matrix, formerly known as Pierce-Eislen, Inc.®, was founded in March, 2000, and acquired in July 2013 by Yardi Systems, Inc., a Santa Barbara, California software company focused on commercial real estate industry applications.The Yardi Matrix apartment information service is a high-performance system with the sole function of supporting the commercial apartment industry’s dominant participants. The company's services monitor the 50+ unit apartment universe from the property level to the submarket/market level in a form unique within the commercial apartment information industry.
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the unit. The eviction action was later withdrawn, but the veteran, still not being allowed to keep the animal, moved out of the apartment at the end of his lease. The complaint was amended to include apartment complex owner James Tilsen and rental manager Deborah Brookins, according to the Pioneer Press at twincities.com. Tilsen denied the discrimination charge and said he plans to fight the accusation. He questions the validity of the paperwork from the counseling firm. “Pretty much anybody can say that,” Tilsen told the newspaper about the veteran needing an emotionalsupport dog. “If he had presented something from the V.A. that said that he needed it, we would’ve treated it differently. We didn’t have that. All we had was an online (document) from an online psychologist that said he needed a dog. I went online and got the same thing.” The Fair Housing Act prohibits housing providers from denying or limiting housing to people with disabilities, or from refusing to make reasonable accommodations in policies or practices for people with disabilities. Allowing people with disabilities to have assistance animals that perform work or tasks, or that provide disabilityrelated emotional support, is considered a reasonable accommodation under the Act. Disability is the most common basis of complaint filed with HUD and its partner agencies. Last year alone, HUD
and its partners considered more than 4,500 disability-related complaints, nearly 55 percent of all fair housing complaints. HUD's charge will be heard by a United States Administrative Law Judge unless any party elects for the case to be heard in federal court. If the administrative law judge finds after a hearing that discrimination has occurred, he may award damages to the complainant for his loss as a result of the discrimination. The judge may also order injunctive relief and other equitable relief, as well as payment of attorney fees. In addition, the judge may impose civil penalties in order to vindicate the public interest. Resources: West St. Paul apartment owner sued over bias against Army vet, his support dog HUD charges Minnesota landlord with housing discrimination after deying veteran the right to keep his assistance dog Secretary, United States Department ) of Housing and Urban Development, ) on behalf of Complainant vs. Westview Park Apartments, LP; Tilsenbilt Homes, LLC; ) James Tilsen & Deborah Brookins
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Rental Housing Journal On-Site · January 2018
Rental Housing Journal On-Site
Dear Maintenance Men ...continued from page 8
Manufactures designed their cabinets to look good at first glance. Keep in mind, being in a rental environment, the cabinets also need to hold up to abuse. Look at the actual construction of the cabinet box or frame. Keep in mind; you do not need to use custom cabinets to fit your existing layout. The use of prefabricated modular cabinetry can greatly reduce the time and cost to have a finished kitchen or bathroom. Using real wood cabinet fronts with 3/8” plywood sides is essential for durability. The drawer fronts and sides should be connected with a dovetail or other positive lock construction. Drawers that are held together by nails or cabinets built with particle board will not hold up to tenant abuse. On a side note; if you are gutting the kitchen or bathroom, use this time to relocate and add more electrical outlets and under cabinet lighting. Note: If you would like to see your maintenance question in the “Dear Maintenance Men:” column, please send in your questions to: DearMaintenanceMen@gmail.com
Bio: If you need maintenance work or consultation for your building or project, please feel free to contact us. We are available throughout Southern California. For an appointment please call Buffalo Maintenance, Inc. at 714 956-8371 Frank Alvarez is licensed contractor and the Operations Director and co-owner of Buffalo Maintenance, Inc. He has been involved with apartment maintenance & construction for over 20 years. He is also a lecturer & educational instructor and Co-Chair of the Education Committee of the Apartment Association of Orange County as well as being Chairman of the Product Service Counsel. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance.com For more info please go to: www.BuffaloMaintenance.com Jerry L'Ecuyer is a licensed contractor & real estate broker. He is currently on the Board of Directors and Past President and past Chairman of the Education Committee of the Apartment Association of Orange County. Jerry has been involved with apartments as a professional since 1988.
Outsmarting Jack Frost ...continued from page 5 Three questions to avoid asking: How many adults and children will be residing in your apartment home? How many children are in your family? How old are your children? Instead, ask: “How many people will be residing in your apartment home?” Do not discriminate against families with children by stopping or restricting children’s use of community facilities or services. Safety and liability are still important, but you must create your community policies carefully. Avoid statements like: “Children may not skateboard on community property.” Instead say: “Skateboarding is prohibited on community property.” You may require direct adult supervision during children’s use of community provided services and facilities. However, the rules must not unreasonably restrict a child from using the amenities. Don’t prohibit children from using amenities Avoid rules such as: “Children under the age of 14 are prohibited.” Instead, say: “Persons under the age of 14 must be accompanied by an adult.” Familial status was added as a protected class in 1988 with the signing of the Fair Housing Amendments Act. This act made housing discrimination against families with children illegal and protects not only married couples with children, but also those who are single parents, legal guardians, mothers
who are expecting, and people in the process of obtaining legal custody of a child. Take time to review this important area of the law with employees so that families with children feel both safe and welcome in your community. About the author: Ellen Clark is the Director of Assessment at Grace Hill. Her work has spanned the entire learner lifecycle, from elementary school through professional education. She spent over 10 years working with K12 Inc.’s network of online charter schools - measuring learning, developing learning improvement plans using evidence-based strategies, and conducting learning studies. Later, at Kaplan Inc., she worked in the vocational education and job training divisions, improving online, blended and face-to-face training programs, and working directly with business leadership and trainers to improve learner outcomes and job performance. Ellen lives and works in Maryland, where she was born and raised.
About Grace Hill For nearly two decades, Grace Hill has been developing best-inclass online training courseware and administration solely for the Property Management Industry, designed to help people, teams and companies improve performance and reduce risk.
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Rental Housing Journal On-Site
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Rental Housing Journal On-Site · January 2018