Rental Housing Journal On-Site
April 2018
3. Millennials Spend About 45 Percent of Income on Rent Before Age 30
10. Confused Over Service, Assistance and Emotional Support Animals?
4. Real Estate Syndication Investing – 10 Things to Know
11. Dear Maintenance Men:
5. How Your Terms, Conditions or Privileges Could Mean Discrimination
12. 20 Easy, Affordable Maintenance Projects to Update your Rentals
6. Accommodating Disabled Tenants in Your Rental Property
13. How a No Pet Policy can be Discriminatory
7. 6 Insights about Rental Property Owners and Property Managers
18. Application of Payments and 72 Hour Notices
8. Top Apartment Owners Show Strong, Continued Growth
21. Apartment Owner Ordered to Pay $1.6 Million in Bed Bug Lawsuit
9. National and Local Government Affairs Update
22. Renters Feelings about Buying Diminish as Rates Climb amid Tight Inventory
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
Seattle Law Making Landlords Accept First Qualified Tenant Struck Down
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Seattle judge has struck down Seattle’s ordinance saying landlords must accept the first qualified tenant who applies, according to reports. A King County Superior Court Judge, Suzanne Parisien, struck down the ordinance saying “choosing a tenant is a fundamental attribute of property ownership.” She wrote that the ordinance, called the first-in-time (FIT) law’s “few concessions to landlords do not redeem
How Important is the Front Door to your Rental Property?
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he look, feel and features of a rental property’s front door are more important to tenants than landlords and property managers might think.Front door material and look is the maintenance checkup from Keepe this week. The front door is one of those subtle elements that can actually make a big difference to the overall feel of a property. Experts point out that a property’s front door can actually be responsible for significant fluctuations in the value of the property. Potential tenants will likely take notice of a damaged, flimsy or olderlooking entryways. They could interpret this as a sign of lack of upkeep for the property or concern for the well-being of tenants. Additionally, a damaged front door can make it easy for burglars to identify a certain property as one that they
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Seattle Landlords Must Charge for Parking Separate from Rent
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he Seattle City Council has passed 7-1 an ordinance banning Seattle landlords and property managers from bundling the cost of parking with rental payments. Landlords of buildings with more than 10 apartments will no longer be able to include the cost of parking in rent, and must bill tenants separately for parking. Tenants, especially those who do not own a car, will have the option then of not paying the landlord for parking if they choose. “We know that an oversupply of cheap parking has a negative impact on Seattle – it increases driving and traffic congestion, increases our carbon footprint, and makes housing more expensive,” City Councilman Rob Johnson said in a statement. Mayor Jenny Durkan said in a statement she plans to sign the ordinance. "With too many Seattle residents struggle with rising rents, we need to provide more housing. We also
have to make frequent transit a reality, and we will continue to work with Metro to increase service on our most popular routes in neighborhoods across Seattle," she said. “Taking a smarter approach to our parking strategies, as we do through CB 119221, an important step is to ensure that we are creating not only a more vibrant city, but a city that works for everyone as we grow. The legislation allows for flexible use parking, so that existing and new parking spaces can be shared and used by more people. It eliminates parking requirements for affordable housing units (up to 80%
Area Median Income) so that our affordable housing partners can build more housing, and requires unbundling of parking in leases so people who do not own a car will not be required to pay for parking spaces they do not use,” Johnson said. “Increasing numbers of transit ridership and those who walk and bike coupled with growing options for shared mobility like Uber and Lyft are changing the transportation landscape. We know that some Seattleites need drive their cars for many different reasons, but we want to build a city that supports transportation choices, too,” Johnson added.
Some highlights of parking measure for Seattle landlords • Apartment or office building owners will be able to rent out parking spots to people who don't live or work in the building. That's meant to fill in ...continued on page 5
Rental Housing Journal On-Site
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Rental Housing Journal On-Site ¡ April 2018
Rental Housing Journal On-Site
Millennials Spend About 45 Percent of Income on Rent Before Age 30
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new study based on Census data shows that millennials spend about 45 percent of their income on rent before reaching the age of 30, according to Rent Café. The cost of renting is a huge subject nowadays and a big expense as well, arguably the biggest it’s ever been. People in their 20s starting a life on their own have always faced a lot of challenges. Besides having a low income because of limited work experience, leaving home and paying rent make things even harder, according to Rent Café. “Analyzing Census data going as far back as 1974, we discovered that rent burden followed an ascending trend over time, making millennials the hardest hit generation. But the future doesn't look too bright for Generation Z either,” the company said in a release.
Here are more key findings on millennials and rent Millennials pay a whopping $92,600 in total rent by the time they turn 30. Although they earn more compared to
previous generations, they also have to spend more on rent. By the time Millennials might be thinking about buying a home or starting a family, they are struggling with rent and student loan debt instead. Compared to Baby Boomers (36%) and Generation X (41%), Millennials have to cope with a 45% rent burden in their 20s. Because of the ever-increasing rents, discrepancies appeared within the same generation as well. With a rent burden of 47%, younger Millennials (20 - 29) surpass older Millennials who spent about 44% of their income on rent between the ages of 22 and 30. If this trend continues, Gen Z-ers are expected to pay something in the vicinity of $102,000 while in their 20's just to put a rented roof over their head.
Summary: Given their overwhelming student loan debt, younger millennials may carry on renting, simply because the ...continued on page 6
We help clients resolve landlord-tenant cases involving evictions, litigation, fair housing complaints, leases, and other tenant disputes.
Rental Housing Journal On-Site · April 2018
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Rental Housing Journal On-Site
Real Estate Syndication Investing – 10 Things to Know by Kim Lisa Taylor, Esq.
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f you are thinking of investing in a real estate syndication, especially for multifamily investing, here are 10 things to know from Kim Lisa Taylor, Esq., founding attorney of Syndication Attorneys, PLLC. If you have a self-directed IRA or substantial investment funds, you no doubt have considered investing in real estate, especially multifamily. However, you may lack the funds to invest on your own or the desire to deal with the hassles of property management. A viable option for you may be to invest in a real estate “syndication” (i.e., a group real estate investment, also known as a Private Placement Offering) as a passive investor.
What is a Real Estate Syndication? In a real estate syndication, a “sponsor” or “syndicator (which may be an individual or an entity) will typically identify a real estate asset, such as an existing commercial or multifamily property (or vacant land for development) or single-family fix-andflips that will yield a sufficient return to pay themselves and their investors from cash flow during operations and/ or equity on resale. The sponsor may obtain institutional financing for a portion of the purchase price and then pool funds from private investors to finance the down payment and closing costs, or he or she may raise all of the purchase money from private investors. The sponsor’s job will consist of finding a suitable property, putting the group of investors together and managing the asset on their behalf. In exchange for these efforts, the sponsor
will receive fees and/or a percentage of the “distributable cash” (i.e., profits) left after all expenses and loan obligations have been paid.
What Kind of Returns Do Syndications Offer? Typical investor returns can range from 6 % to 12% (or more) annualized, calculated against the amount of money invested. The range varies, based on the type of investment and the level of risk to which an investor may be exposed. The higher the return offered, the greater the risk. For example, an investor or selfdirected IRA might take a position as a “debt partner,” in which case the returns will be calculated as interest on the amount invested. Such returns may be in the lower ranges, but the debt partnership position may be “preferred” or “secured” by a lien against the real estate, which is a lower-risk position.
Another option for investors is an “equity partnership” position, where the distributable cash is split proportionately between the group of investors and the sponsor, whose compensation can range from 25% to 50% of the distributable cash. In this case, the investor returns may be greater, but they will be dependent on the performance of the property and the sponsor’s ability to maximize returns by increasing income and minimizing expenses.
What Information Should I Get from the Syndicator? Prior to accepting any investor funds, the sponsor is required by securities laws to provide a set of offering documents that explains the terms and discloses the risks of the offering to prospective investors. Further, sponsors typically answer ...continued on page 7
First Qualified Tenant Struck Down ...continued from 1 it. While landlords are permitted to set their own rental criteria …general criteria does not substitute for the discretion to choose a specific tenant.” “Notably, the ability to negotiate for instance, - a key element of the right to freely dispose of property – is extinguished by the FIT rule. Even if landlords can impose some limits on the pool of qualified applicants, landlords and tenants still cannot bargain for an arrangement that suits their interests.” She wrote in the opinion that “to determine if a law violates due process, courts must address three questions: 1. Is the regulation aimed at achieving a legitimate public purpose? 2. Does the regulation use means reasonably necessary to achieve that purpose? 3. Is the regulation unduly oppressive? “As to the first question, the court finds that the regulation is aimed at achieving a legitimate public purpose.
An unreasonable means of pursuing anti-discrimination “As to the second question, the court finds it does not. The principle that government can eliminate ordinary discretion because of the possibility that some people may have unconscious biases has no limiting principle – it would expand the police power beyond reasonable bounds. While the city can regulate the use of property so as not to injure others, a law that undertakes to abolish or limit the exercise of rights beyond what is necessary to provide for the public welfare cannot be included in the lawful police power of the government,” the judge wrote. “The FIT rule is also an unreasonable means of pursuing anti-discrimination because of its sweeping over-breadth. The FIT rule is over-broad since with few exceptions, landlords renting to 4
the general population cannot deny tenancy to the first qualified applicant, period.” “As to the third question, the court finds the FIT rule is unduly oppressive because it severely restricts innocent business practices and bypasses less oppressive alternatives for addressing unconscious bias,” the judge wrote citing case law,” the judge wrote.
Seattle FIT ordinance restricts free speech “The FIT rule mandates methods by which landlords communicate with prospective tenants and controls the content of those communications. The rule must therefore face immediate scrutiny as a commercial free speech restriction. “Under the FIT rule, landlords must post written notice of all rental criteria in the leasing office or at the rental property, as well as in any website advertisement of the unit. The information that must be communicated via these means is comprehensive, including all “the criteria the owner will use to screen prospective occupants and the minimum threshold for each criterion that the potential occupant must meet to move forward with the application process. FIT rule restrains landlords’ free speech and advertising “The notice must include all information, documentation, and other submissions necessary for the owner to conduct screening using the criteria stated in the notice. An application is deemed ‘complete’ once the applicant has provided all the information stated in the mandatory notice. The landlord must offer the unit to the first applicant who satisfies the criteria in the advertisement. “The FIT rule not only constrains the means by which landlords
communicate, it also controls the content of that communication. A landlord may not post a rental on the web and say ‘call to learn how to apply’ or ‘email me for further details.’ Rather, the landlord must list online all information regarding how to apply and all criteria by which applications will be assessed. “It is undisputed that FIT rule violates landlords’ speech rights by prohibiting advertisements based on content and dictating how landlords can advertise,” the judge wrote.
FIT rule does not prevent discrimination The judge also wrote that, “The FIT rule does not ‘directly and materially’ advance the city’s interest in preventing discrimination because it precludes the use of landlord discretion. To satisfy this component of the commercial speech test, the city must offer more than ‘mere speculation and conjecture, rather a government body seeking to sustain a restriction on commercial speech must demonstrate that the harms it recites are real and that its restrictions will in fact alleviate them to a material degree.” The Pacific Legal Foundation had sued over the ordinance claiming it violated landlords’ due process, free speech and property rights. The decision stemmed from a lawsuit filed by several small-scale landlords whose rights were threatened by the first-in-time rule. The rule forced landlords to rent their property to the first qualified applicant, even if the landlord has good reasons to pick someone else, the foundation said in a statement. “The city insisted the rule was needed to overcome landlords subconscious discriminatory tendencies when selecting tenants. But Judge Parisien
disagreed writing in her opinion that choosing a tenant is a fundamental attribute of property ownership, and that the rule restricts far more speech than necessary to achieve its purposes in stopping discrimination,” the foundation said. The foundation had filed suit against the city on behalf of MariLyn Yim, who owns a duplex and triplex in Seattle with her husband. “We are so glad to once again have our rightful ability to carefully select tenants and manage our risk. One bad tenant could take us years to recover from financially,” she said in the release.
City may appeal the ruling “We disagree with the court’s ruling, and we’re studying it to determine our next steps,” Deputy City Attorney John Schochet told the Seattle Times. Councilmember Lisa Herbold championed the first-come, first-served law in 2016, saying her goal was to ensure all renters were treated equally. At the time, officials said they were unaware of any other U.S. city with such a law. When landlords are allowed to choose among multiple qualified applicants, their biases — conscious or unconscious — may come into play, Herbold and other proponents said. Resources: Judge rejects Seattle’s ‘first-come, first-served’ rental law as unconstitutional, Victory In Seattle Landlord Rights Restored, Judge strikes down Seattle law requiring landlords to accept first qualified tenant, Winning in Seattle: Judge blasts “first in time” landlord mandate
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Rental Housing Journal On-Site · April 2018
Rental Housing Journal On-Site
How Your Terms, Conditions or Privileges Could Mean Discrimination By Ellen Clark
housing discrimination. One of these is discrimination in terms, conditions, or privileges. Discrimination is when a person, or a group, is treated unfairly or differently than others for a reason related to their membership in a certain category or group. In other words, if someone is treated in a different way than someone else because of the color of their skin, their age, their nationality, their ability to speak English (to name just a few) they are being discriminated against. A person does not need to be harmed to have been discriminated against— just treated differently.
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he Grace Hill training tip of the week focuses on the issue of how your terms, conditions or privileges you provide prospective tenants and existing tenants could be discrimination under the Fair Housing Act. You must treat all prospects and tenants in a consistent way in how you use terms, conditions or privileges to avoid discrimination under the Fair Housing Act. Setting different terms, conditions, or privileges for buying or renting housing is a little less direct than other illegal practices, such as an outright refusal to rent or sell to an individual. But it is just as illegal. Requiring higher security deposits from families with children and demanding higher application fees from minorities are examples of discrimination in terms, conditions, or privileges. These practices violate fair housing laws. To avoid discrimination in terms, conditions or privileges, treat all prospects and residents fairly and consistently.
3 ways in leasing to be consistent and avoid discrimination If you require a photo ID from prospects to tour your community, be sure to get one from every prospect. No matter how non-threatening someone appears, it is important to require the same thing from all prospects. If a prospect’s rental application is denied, follow-up with them both verbally and in writing. Follow this
exact procedure for every application that is denied. If you have a prospect who does not meet your income requirements but you let her sign a lease by pre-paying six months’ rent, you should offer this option to other prospects in a similar situation.
3 ways in maintenance to be consistent and avoid discrimination If you charge one resident for a lock change, you should charge all residents the same amount for the same service. Respond to service requests in the order in which they were received. Faster response to emergencies is expected, but be sure to clearly define and document what constitutes an emergency service request. Document all correspondence with residents in
your records. If you make an exception to any policy or procedure, make sure you provide the same information and options to all prospects and residents who are in the same situation. Being consistent in how you apply policies and procedures will help you make a habit of treating all current and future residents fairly and equally. This will help you comply with the FHA, but just as importantly, it will create a more welcoming atmosphere for all people who meet your qualifications and wish to live in your community.
Summary on consistency and discrimination The Fair Housing Act is intended to prevent housing discrimination. The Fair Housing Act describes a number of illegal practices relating to
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. 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.
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Parking Separate from Rent ...continued from 1 spaces that go empty at certain times of day, according to reports. • Landlords will no longer be able to require tenants to pay for a parking space. That could mean lower rents for people who forgo their parking space or just don't own a vehicle. • Most new residential buildings in Seattle won't have to come with attached parking lots anymore. A King County study in 2015 said that construction of parking in multifamily projects costs between $20,000 and $40,000 per stall, driving up the cost of renting an apartment. The Right Size Parking study also said there is an oversupply of parking for multifamily apartment buildings estimated at 40% over what is actually needed. “In King County, WA, parking makes up 10-20% of the cost to construct multi-family buildings, but only 6% is recovered through parking charges, meaning that the remainder must be accounted for through rent prices,” according to the study. “This cross subsidization, or
recovering part of the parking investment through higher rental rates, causes a distorted market for parking and reduces the opportunity to use pricing as a tool to manage parking demand,” the study says. “Lower-income households are especially burdened by this distortion as they typically have lower rates of auto ownership and spend a larger percentage of their income on housing.” “Today, multi-family residential buildings often provide too much automobile parking, which can be an impediment to achieving a wide range of community goals. An oversupply of parking can have deleterious effects on economic development, consumers, the community at large and the environment. Excess parking consumes valuable urban real estate, which contributes to sprawl, lower-density development, and greater distances between buildings. “Those outcomes can deter walking, transit use and efficient transit service operations. An oversupply of parking can also damage natural
Rental Housing Journal On-Site · April 2018
landscapes through urban sprawl, increase impervious surfaces and add to greenhouse gas emissions. These considerations pose challenges for communities that want to encourage multi-modal transportation options
and promote smart growth land use planning strategies,” the study says. •
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Rental Housing Journal On-Site
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Accommodating Disabled Tenants in Your Rental Property
s a property manager it is fundamental to understand the laws pertaining to disability and accessibility for prospective disabled tenants. The maintenance checkup from Keepe this week involves 15 maintenance ideas to make your property more accessible to disabled tenants. Researching and studying actual accessibility law should be a priority to prepare and protect yourself. The Fair Housing Act and the Fair Housing Amendments Act make it unlawful to reject a prospective tenant because of their disability as you know. However it also prohibits asking a prospective disabled tenant about whether they are disabled and about the nature of their disability, visible or not. While such questions are unlawful, the law allows for clarifying whether a prospective tenant qualifies for demanding a rental unit designed for disabled tenants only, or for a unit designed to accommodate certain disabilities in particular. Accommodations are a core element to accessibility law. The law states that disabled tenants may request reasonable accommodations to be provided, added
or allowed for them to use and access their living space and common areas within the property. Disabled tenants request for accommodation should be reasonable Accommodating Disabled Tenants In Your Rental Property The nature of the accommodation requested should exhibit a reasonable relationship to the disability. Such reasonable requests include allowing a service animal to live on the property or a designated parking space. To handle requests properly, it is fundamental to
have an open discussion with a tenant regarding their needs. Deciding what represents a “reasonable” request can be challenging considering that it can vary from case to case and property to property: the US Department of Housing Development requires a “interactive process" for reaching a reasonable compromise between a tenant and property manager/landlord/owner, generally justifying the rejection of demands for certain accommodations only when they represent an “undue” financial
burden. Accessibility Through Property Modifications Requesting or making changes to a property fall into the category of “reasonable” requests that may or may not be granted. Before any modifications can be made, they must be approved by a property manager/ landlord/owner in charge, who can ask the tenant to provide information regarding how proposed changes are necessary and/or ideal for them. State laws can also apply to residential requirements, and should be considered when handling a request for building modifications. Why You Should Invest In Accessible Modifications Accommodating Disabled Tenants In Your Rental Property Generally, unless a property is considered to be federally assisted housing, disabled tenants are expected to arrange and pay for necessary modifications to the property. This being said, the following 15 tips have been provided to make residential units safe and accessible for prospective tenants who are disabled or who have ...continued on page 10
Millennials Spend About 45 Percent of Income ...continued from 3
Problem tenants? Send them packing!
with the help of…
prospect of buying is not yet attainable. On the other hand, older Millennials are starting to slowly shift towards home ownership. As they are finally catching up with the American Dream, this will surely drive demand for homes for sale. Their lifestyle patterns so far show that Millennials need affordable homes with attractive amenities. As they’re starting to form families, they’ll soon be ready to put their hard-earned money into their own home. Methodology: RENTCafé is a nationwide apartment search website that enables renters to easily find apartments and houses for rent throughout the United States.
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1996. We added up the data from an 8-year period for each generation (for the years they were aged 22 to and including 29), we calculated the median amount of money that each generation spent on rent and the median income they earned during the same period. The final data presented in this study was obtained by rounding up the numbers to the nearest hundred. The study refers only to single people paying the average monthly rent on their own.
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Using the most recent Census data, our research team analyzed the rents and incomes across the United States during certain time periods. Relevant income data was available starting with 1974 while rent data was available starting with 1940. The income amounts represent the median gross income per capita and the rental amounts represent the historical median gross rents. The data was adjusted to 2017 prices, using a cumulative rate of inflation for each year. We based the total income on the following age brackets provided by Census: ages 15 to 24 and ages 25 to 34. We used the following year-of-birth ranges for each generation: Baby-Boomers – born between 1946 and 1964, Gen Xers – born between 1965 and 1976, Millennials – born between 1977 and 1995 and the Gen Z generation – born starting with
Rental Housing Journal On-Site · April 2018
Rental Housing Journal On-Site
6 Insights about Rental Property Owners and Property Managers
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hat are the keys to the relationship between rental property owners and property managers? These insights could help rental property owners better set their expectations and help property managers better understand the owners. The rental property owners’ survey from Buildium.com revealed 6 insights about rental property owners and the relationship with property managers. 6 insights about rental property owners and property managers
Rental owners fall into two distinct categories but share many of the same concerns Maintenance and tenant management are the biggest areas of owner pain Communication is the #1 reason owners love a property manager. Poor service is why they leave. Most rental owners find their property managers by searching online Cost is the #1 reason self-managing
rental owners don’t use a property manager There is an inertia effect in property ownership.
No. 1 – Intentional and accidental owner-investors Intentional investors: “These owners
typically set out to acquire a real-estate portfolio as a way to invest their incomes for retirement. They might begin with their own starter home, but typically they currently own between 2 and 40 units. They focus more on growth and on cash flow, and are either expanding
or seeking to expand their portfolio. They are more often male, and a bit older than accidental investors. They are more likely to say they always enjoy property ownership,” Buildium.com writes in the report. Accidental investors: These owners tend to fall into property management, either through inheritance or more commonly due to moving away from a property they own and being unable or unwilling to sell. They have a slight bias toward being female and younger than intentional investors. Though they see their property as a solid investment, they commonly own just one rental unit— usually a single family home— and are not as likely to grow their portfolio. Accidental investors are less likely to say they always enjoy property ownership. Note: There was a 12% crossover between the two, where owners ...continued on page 12
Syndication Investing ...continued from 4 to their investors by means of periodic newsletters, financial reports and/ or teleconferences. Unlike a stock investment, investors may also have some limited voting rights regarding major decisions affecting the company or their investment.
Investing In A Real Estate Syndication - 10 Things To Know Before investing in a real estate syndication, you should carefully review all of the offering documents provided by the sponsor and look for (or ask) questions regarding the following things: 1. The Sponsor’s background, education and experience with similar investments, if any. 2. The team members involved in acquisition and operation of the property, including attorneys, CPAs, other members of the sponsor, property managers and affiliates that may receive fees, etc.
3. Cash distributions to investors during acquisition, operation and disposition of the property, including the proposed timing and anticipated percentage returns. 4. Sponsor fees and cash distributions. 5. Anticipated duration of the investment. 6. Property information, including its type and condition, the purchase price, financial history, proposed “value add” and exit strategies and pro forma financial projections. 7. Dispute resolution provisions. 8. Voting rights of investors. 9. Provisions for removal of the sponsor. 10. Information about the law firm that structured the offering and drafted the offering documents, and whether the firm is experienced with securities offerings.
Seek Professional Advice In addition to satisfying yourself
with respect to all of the items listed above, you should seek the advice of your own attorney, financial adviser or accountant regarding the investment. Your attorney should determine whether the offering complies with applicable securities laws. A sponsor that disregards the applicable laws (or drafts its own documents) may expose itself and the entire investment to unnecessary civil or criminal liability, or it may be unaware of its fiduciary obligations to its investors. Your CPA or financial adviser should evaluate the financial merits of the investment based on past financial statements for the property and pro forma projections provided by the sponsor, as well as its suitability for your investment portfolio.
Where Can I Meet Syndicators? Become a member of your local real estate investment clubs and attend their meetings on a regular basis, and attend the informational seminars offered by
your self-directed IRA administrator. The discussion herein is of a general nature only and is not to be construed as specific legal advice, which requires the establishment of an attorney-client relationship and fee agreement. An issuer represented by securities counsel should rely on his or her own attorney’s advice with respect to the matters discussed in this article. Kim Lisa Taylor, Esq., is founding attorney of Syndication Attorneys, PLLC, a boutique corporate securities law firm that helps clients nationwide with their federal real estate securities offerings. She has been licensed in California since 2002 and in Florida since 2012 and has made securities transactional law the focus of her practice since 2008. The firm employs one additional contract attorney with securities experience as well as other support staff. Kim and her team are available for consultation in St. Augustine, Florida.
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Rental Housing Journal On-Site
Top Apartment Owners Show Strong, Continued Growth
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he apartment sector continued its strong economic run last year for apartment owners with more than two million units being owned by firms on the National Multifamily Housing Council’s (NMHC) top 50 owners list, representing about 10 percent of all apartments in the U.S., according to a release. “Strong underlying demand and investment performance metrics continue to buoy the market,” Mark Obrinsky, NMHC’s Senior Vice President of Research and Chief Economist, said in the release. “While there may have been some signs of deceleration and market leaders have shifted strategies, the industry’s fundamentals remain robust,” Obrinsky said. The newly released 2018 NMHC 50— the authoritative ranking of the nation’s largest apartment owners, manager, developers, builders and syndicators, shows some of the following highlights: • MAA in Memphis was the country’s largest apartment owner, with 99,792 apartment homes owned. • Greystar Real Estate Partners
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in Charleston, S.C. remained the largest apartment manager, with 418,475 apartments under management. Greystar Real Estate Partners also remained the top of the apartment developer with 5,651 apartments started in 2017. Summit Contracting Group, Inc. in Jacksonville, Florida and Atlanta took the spot as the nation’s top third-party apartment builder, starting 6,053 apartments in 2017. Alden Torch Financial in Denver continued as the country’s largest apartment tax credit syndicator with 162,123 apartments syndicated.
Additional apartment owners and industry and highlights • 2,066,945 Number of units collectively owned by the firms on the NMHC 50 top owners list, representing 10.1 percent of the total apartment stock in the U.S. • 3,282,557 Number of total units managed by the firms on the NMHC 50 top managers list, an all-time high and a 3.3 percent growth over last year. • 95.1 percent – Apartment occupancy
rate in 2017, according to RealPage; this is slightly below the unusually high levels of the last few years, but well above the post-1999 average of 94.4 percent. • 346,900 – Number of apartments completed in 2017, according to the Census Bureau—the highest level since 1989. • 343,037 – Absorptions of apartments in 2017, the best year since 2000 by a wide margin. • $152.7 billion – Total multifamily transaction volume for 2017, according to Real Capital Analytics.
Based in Washington, D.C., the National Multifamily Housing Council (NMHC) is the leadership of the trillion-dollar apartment industry. We bring together the prominent apartment owners, managers and developers who help create thriving communities by providing apartment homes for 39 million Americans. NMHC provides a forum for insight, advocacy and action that enables both members and the communities they help build to thrive. For more information, contact NMHC at 202/974-2300, email the Council at info@nmhc.org, or visit NMHC's web site at www.nmhc.org
• NMHC partners with Kingsley Associates, a leading real estate research and consulting firm, to conduct the research and analysis for the NMHC 50. All apartment owners, managers, developers, builders and syndicators are invited to answer a survey questionnaire that asks about their prior year’s activities. Apartment owners, managers and syndicators are ranked based on their portfolio holdings (either owned, managed or syndicated) as of January 1, 2018, while developers and builders are ranked based on the number of apartment units started in 2017. About the National Multifamily Housing Council:
Advertise in Rental Housing Journal On-Site Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.
For more info call 503-221-1260
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Rental Housing Journal On-Site · April 2018
711 Powell Ave. SW, Suite 101 Renton, WA 98057 Ph. 425-656-9077 • Fax. 425-656-9087 admin@wmfha.org
Executive Director – Jim Wiard • Board President – Sheri Druckman, CAPS • Vice President – Laura McGuire, CAPS Treasurer – Mike Simons • Secretary – Shar Eller • Vice President of Suppliers Council – Kenneth Baff Immediate Past President – Becky Sanders, CAPS
National and Local Government Affairs Update
T
he Washington Multi-Family Housing Association has become the go-to source for local, regional, state and national legislative information that affects our industry. Representing 1,600 members and over 200,000 rental homes in the state, WMFHA is a powerful voice for the industry. In addition, as the Washington State affiliate of the National Apartment Association, we have opportunities to become involved on various issues throughout the country. Policies emanating from both Washington, D.C. and our state capital will play a key role in either assisting or hindering our industry from being able to continue to provide affordable, safe and decent housing to America’s workforce and to help create vibrant communities. Government action or inaction on issues can impact the day-today management of apartments by raising costs, adding liability risk and creating uncertainties. A burdensome regulatory environment can also increase expenses, thereby raising rents, and acts as a disincentive to invest in
WMFHA staff and members with Senator Maria Cantwell
affordable housing solutions. Apartment supply needs to keep up with demand and can only keep pace with population growth if incentives exist to encourage new development of housing, at all price levels and in all areas where homes are needed.
WMFHA’s mission is to support and lead legislative regulatory policy both locally and nationally that promotes and preserves quality rental housing for all. The apartment sector is an industry that helps today’s renters live in a home that’s just right for them and plays
a vital role in the nation’s economic strength. In March, WMFHA staff and key members traveled to Washington D.C. to join with NAA to meet individually with our state’s members of Congress to educate them on our industry and how we can work together. Grassroots advocacy efforts in our nation’s capital included frank discussions with members of Congress on cybersecurity, infrastructure, ADA lawsuits and national government-backed flood insurance. The housing industry supports an infrastructure policy that drives new investment in housing, promotes transit-oriented and high-density development and funds communitylevel infrastructure needs. A cooperative approach to housing development and infrastructure planning maximizes community benefit and promotes efficiencies in transportation, land use and public works. Rental housing owners and operators, and their third-party service providers, are responsible for safeguarding vast ...continued on page 15
MAY MEMBERSHIP LUNCHEON May 15, 2018 Seattle, WA 98104 11:30am-1:30pm At This Luncheon • •
WMFHA Business and Announcements Featured Presentation by Jen Piccotti, ManagInc
Who Should Attend? • • •
Any WMFHA member On-site multi-family professionals Regional/Corporate office staff -
DETAILS AND REGISTRATION AT WMFHA.ORG/Events 9
Rental Housing Journal On-Site
Confused Over Service, Assistance and Emotional Support Animals? By Ellen Clark
T
he Grace Hill training tip of the week focuses on the confusing issue and definitions of service animal, assistance and emotional support animals. You probably hear the terms service animal, assistance animal, and emotional support animal a lot. But do you really know what these terms mean? If not, you are not alone! There are three laws that relate to rental housing and service and assistance animals: The Fair Housing Act (FHA) Section 504 of the Rehabilitation Act of 1973 (Section 504) The Americans with Disabilities Act (ADA). The FHA applies to almost all rental housing. Among other things, it prohibits discrimination based on disability and requires housing providers to make reasonable accommodations for people with disabilities, such as making an exception to a no-pet policy or a breed restriction. Housing that receives federal financial assistance from the U.S. Department of Housing and Urban Development (HUD) must also comply with Section 504. Like the FHA, Section 504 prohibits discrimination based on disability and
requires housing providers to make reasonable accommodations for people with disabilities. Whereas the FHA and Section 504 prohibit discrimination in housing, the ADA prohibits discrimination based on disability in all areas of public life, including schools, transportation, and all public and private places that are open to the public. What does this mean for you in relation to support animals? The ADA requires you to let service dogs accompany their owners in any
area of the community that is open to the public, such as the leasing office. These laws use different terms and definitions, which can be confusing. The ADA uses the term “service animal” and defines it specifically as a dog trained to do work or perform tasks for people with disabilities. The FHA and Section 504 use “assistance animal” as a broad term to describe any animal that works, provides assistance, or performs tasks for the benefit of a person with a disability or provides emotional
support that alleviates one or more symptoms or effects of a person’s disability. Under the FHA and Section 504, service animals, emotional support animals, and companion animals are all considered assistance animals. An assistance animal may be any type of animal and is not required to have specific training. The ADA uses the term “service animal” and defines it specifically as a dog that has been individually trained to do work or perform tasks for people with disabilities. Emotional support animals, companion animals and animals other than dogs (and sometimes miniature horses) are not considered service animals under the ADA. Consider these important takeaways: You cannot deny a reasonable accommodation request because an animal does not meet the ADA definition of a service animal. Under the FHA and Section 504, reasonable accommodations must be granted for assistance animals, which include service animals, emotional support animals and companion animals. Residents making accommodation requests are not required to use specific terminology. If an animal works, assists, or performs tasks for the benefit ...continued on page 11
Accommodating Disabled Tenants ...continued from 6 particular needs pertaining to mobility and access. These changes can be significantly beneficial. It can make a rental property particularly appealing for tenants who value living in an accessible and safe space. Considering that disability law is more lax and challenging to apply uniformly for residential spaces, disabled tenants will likely also value their ability to find a welcoming space that they can trust to accommodate their needs, often becoming long-term tenants. Finally, addressing accessibility improvements to a property in a proactive manner makes it possible to avoid being unprepared when a prospective disabled tenant makes requests down the road. 15 Maintenance Tips For Making a Property Safe And Accessible For Disabled Tenants 1. Repair or remove carpet flooring that has become loose, broken tiling and/or any kind of uneven, damaged pavement. 2. Pave all walkways and driveways to render them regular and obstaclefree. 3. Enlarge all doorways on both interior and exteriors to at least 36 in. wide 4. Consider installing automatic systems allowing remote opening of 10
doorways, garages and gates 5. Install ramps on all multileveled access points; our experts encourage having a qualified urban planning professional inspect the property and recommend adequate placement of ramps 6. Replace door knobs with accessible flat handles 7. Install non-slip flooring in bathrooms, kitchens, exterior walkways and any other surface that is likely to become slippery when wet 8. Install grab bars in the bathroom, ensuring that they are placed at the correct height and that can support the weight of an average adult 9. Consider installing particular accessible fixtures - such as toilets and showers - or begin by lowering toilets and lavatories. 10. Accessible faucets are ideally switched on by motion sensors 11. Light switches should be lowered to be accessible for wheelchair users, or substituted for a motion-sensing lighting system 12. Mailboxes should be lowered or substituted for accessible models 13. If the unit is furnished, furniture arrangements should allow enough clearance for users of assistive devices to travel around comfortably 14. Consider implementing Smart technology home system; Smart
tech automates several in-home, everyday tasks, which renders them accessible. Additionally, Smart tech is generally a worthy investment as it is a unique and practical asset for most tenants - regardless of ability. 15. Upgrade to a side-by-side refrigerator: especially if your property is due for replacing outdated appliances - which is a beneficial investment considering that most newer appliance models feature energy-saving features - side-to-side refrigerators are ideal as they allow easy access to
both refrigerating and freezing compartments Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes hundreds of independent contractors and handymen available for maintenance projects at rental properties. Keepe is available in the Greater Seattle area,
•
Advertise in Rental Housing Journal On-Site Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.
Call 503-221-1260 for more information www.rentalhousingjournal.com
Rental Housing Journal On-Site · April 2018
Rental Housing Journal On-Site
Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez
This work may not be cheap, but in the long run you will benefit from lower plumbing bills, late night emergency calls and happier residents.
Dear Maintenance Men: I own a small apartment complex that I manage myself. The property is starting to experience repetitive sewage backups. I’ve called the plumber several times and the problem is never resolved. The plumber is recommending the installation of a 4-inch main line clean out, running a camera down the line and few other things. It is all starting to sound expensive and I don’t know what to do. Why can’t the plumber just do the job right the first time? Bryan Dear Bryan: Your plumber is giving you good advice. Using the camera will determine exactly what the problem is and will help you decide the best course of action to solve your plumbing problem. We highly recommend adding an exterior mainline cleanout. In the long run, a 4-inch cleanout will save you money by making the plumber’s job easier to do. The plumber can run a larger snake without going on the roof or removing a toilet or disturbing the residents. The 4-inch clean-out is key to help
Dear Maintenance Men: How do I safely remove a large mirror from a bathroom wall without shredding myself or my helper in the process? Tom
keep your drains clear on a preventive maintenance basis. We would follow the advice of your plumber and get bids on: 1. Running a camera down the line to determine the actual cause of your problem i.e. Roots, sewer line break,
corroded pipe or cracks, etc. 2. Install a 4-inch main line clean out with street sweep and repair the sewer line as needed. 3. On a preventive maintenance basis, Hydro-jet annually to clean your main line.
Dear Tom: Removing a large piece of glass or mirror can be spooky. Safety first, be sure you are wearing eye protection, gloves and a sleeve long sleeve shirt or jacket. Next, use duct tape diagonally in both directions on the face of the mirror. This will help keep the mirror whole if it cracks or breaks. If the mirror is glued to the wall; cover the glass with a blanket or tarp and tape it to the top edge of the mirror. Be sure to cover the entire mirror top to bottom. You are now ready to remove the mirror and should it shatter, the blanket will contain the shards, protecting you and making the clean-up much easier. Dear Maintenance Men: What is the normal time frame for a one or two ...continued on page 16
Emotional Support Animals ...continued from 10 of a person with a disability or provides emotional support that alleviates one or more symptoms or effects of a person’s disability, it doesn’t matter what term someone uses, it is an assistance animal under the FHA and Section 504.
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.
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
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
•
Text REALESTATE-ROI to 44222
Receive a digital copy of Real Estate Opportunities In Investing Finding Investing Success in Today’s Housing Market Rental Housing Journal On-Site · April 2018
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Rental Housing Journal On-Site
20 Easy, Affordable Maintenance Projects to Update your Rentals
T
he smaller maintenance jobs that improve the look and feel of a rental space and make it feel welcoming can really help when it comes to landing that next tenant is the maintenance checkup from Keepe this week. This week’s post will list easy and affordable maintenance projects to update every room. These small improvements and investments really go a long way.
5 front and outdoor
improvements 1. Repainting the front door - a fresh and crisp coat of paint does wonders for a property’s exteriors, especially when opting for bright or bold colors. Due to its exposure, the front door can be prone to discoloration and chipping, and a new coat of paint can completely transform it into a cheerful and appealing detail. 2. Replacing the property’s numbers - Over time, those number sets can rust and
look worn. Replacing the existing set with a new one is inexpensive and makes the exteriors look neat. 3. Sanding and refinishing railings - Harsh weather and temperatures can take a toll on metal fences and railings. Rust, oxidation and discoloration are unappealing, but can be easily taken care of by sanding, repainting and sealing. 4. Resealing and treating wooden fences - Wood fences and gates are prone to rotting,
discoloration and moss growth. Regularly sealing and treating the wood not only prolongs its life by protecting it from moisture and the elements, but also restores the beauty of a uniform and natural-looking finish. 5. Repainting or replacing mailboxes - Tenants will notice and appreciate the look of their updated mailbox, and will be even more excited about having newer models installed, as those offer include safe
features for protecting your tenants mail.
5 easy kitchen ideas 1. Installing a fun and modern backsplash - a tiled backsplash protects the exposed walls from moisture and staining from food spills and splashes, while also making the space look more appealing. Most hardware and home improvement stores offer a great variety of tiling ...continued on page 18
6 Insights about Rental Property Owners ...continued from 7 indicated they had a portfolio that was inclusive of a former residence and property purchased as an investment.
No. 2 – Maintenance and tenant management are top headaches Maintenance emerged as the biggest stressor overall, with 62% of respondents reporting it as stressful. However, finding and keeping tenants was a very close second, at 58%, and indeed more painful for many owners. “When we delved into the numbers, we discovered that finding and dealing with tenants was actually the No. 1 biggest stressor for property owners who are seeking property management in 2016,” Buildium.com said in the report. “62% of owners were concerned about keeping good tenants, and 56% worried about dealing with problem tenants. Tenant issues was, in aggregate, a major stressor, occupying the No. 2 and No. 3 spots for owners, overall. This suggests that particular pain around tenant management is driving property owners to seek third party management. No. 3 – Good communication needed between property managers and owners Though a majority of owners say they are happy with property management, there does seem to be room for improvement, in particular around the areas of communication and customer service. Those who love their property manager say: “Very pro-active and engaged in the overall process.” “They are very transparent, efficient and sensible.” “They are brilliant and save me time and money.” 12
However those who are unhappy with their property manager say: “Their goal is to make money for themselves, not for me.” “Poor communication and no value add.” “They make decisions without consulting me which cost me money.” No. 4 – Rental owners find their property managers online While a majority of owners already have a property manager, about 25 percent are looking for a property manager. Many owners lean on local associations or personal referrals to find property managers—with investors tending to do this in higher numbers than accidental owners. In fact, referrals emerged as the second most popular technique both for those who intend to look and those who have already secured a property manager. However, most owners seem to be doing their own research online. We found that owners of all kinds overwhelmingly rely on the web to find property management, using either search engines—or a proven online resource such as All Property Management.com—that can connect them to high quality property owners. In addition to property websites, owners who acquire property as investors are slightly more likely to get information from professional associations, publications or real estate investment websites, versus investors whose property was a former home, who have a moderate bias toward getting information from family or friends. No. 5 – Cost is the reason owners do not hire property managers
As you might expect, reluctance to Likewise, 58% of those who predict a spend money is the top reason self- stagnant portfolio have also not grown managing rental owners decide not in the past 5 years. to use a property manager, with 50% And finally, of those who expect their saying they simply don’t want to pay for portfolio to shrink, 51% have already one. been experiencing a retracting portfolio As one owner suggested: “If a over the past 5 years. property management team wants to “We also found, perhaps get a piece of my investment, then they unsurprisingly, that growth, profitability need to bear a part of the burden of and love of property ownership go hand loss as well. Hire a team that doesn’t in hand. Those whose portfolios have charge for removing tenants, viewing expanded are most likely to report that work done on property etc. I get that property ownership has been extremely the property owner bears the cost of profitable for them.” repairs and reasonable legal fees, but Summary on 6 insights about the property management team needs rental property owners and property to beat the costs of having to directly managers deal with the tenants, going to court, What do property owners of all kinds reviewing repairs etc.” offer as best advice they had gotten What are the costs that these owners on property ownership? Find a strong seem sensitive to? property management partner. “We asked our survey respondents “Get a property management how they like to pay—and what they company that you trust.” expect to pay—property management “Do get references and speak to them firms. Owners were split on whether before choosing a property manager” or not to be charged via flat fee or % of “Property management is the key to rent. success” A slight majority (53% vs 47%) “Don’t deal with tenants directly. Let prefer to be charged a percent of rent. your management company handle all Interestingly in our 2015 State of issues.” the Property Management Industry “Good property management doesn’t report we found that 72% of property cost—it pays!” management companies also choose to Get the full report from Buildium. charge a % of rent rather than a flat fee. In this sense, property managers and com here. owners seem to have come to a sort of About Buildium: agreement Buildium and All Property Management No. 6 – Owners who are expanding are the chosen solution of more than their portfolios are likely to continue 12,000 property managers and HOAs. “We found that there is a momentum (or inertia) effect in property • ownership,” Buildium.com writes in the report and “75% of owners who have grown in the past are likely to say they will grow significantly in the future. Rental Housing Journal On-Site · April 2018
Rental Housing Journal On-Site
How a No Pet Policy can be Discriminatory By Ellen Clark
T
he Grace Hill training tip of the week focuses on the issue of how a no pet policy can be discriminatory when it involves potential tenants with disabilities. Landlord and property managers must make reasonable accommodations to meet the needs of people with disabilities. An accommodation is a change in any rule, policy, procedure, or service if the changes are needed for a person with a disability to have equal opportunity to occupy and enjoy full use of their housing. One of the most common accommodation requests people with disabilities make is to have an animal that would otherwise be restricted by a community’s rules.
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No pet policy should specific an exception Unless a no-pet policy specifies an exception for assistance animals, it may be considered discriminatory to residents with disabilities who might require an animal for assistance. Consider this case: The owner of several apartment complexes and rental homes in San Jose sent a letter to residents stating that he did “not like to deal with pets of any kind” and that residents could not “introduce any new pet or replacement pet.” In a civil complaint, The California Department of Fair Employment and Housing (DFEH) accused the property owner of discriminating against residents with disabilities. The property owner settled with DFEH for $100,000. As part of the settlement, the
owner will undergo in-person training annually for three years and must develop a new reasonable accommodation
policy. Interestingly, the owner must also provide semi-annual reports to DFEH about the number of requests for accommodation and the nature and outcome of those requests. Read more about the case here. What can you do to avoid finding yourself in a similar situation? Ensure that any no pet policy or prohibition against pets, whether verbal or in writing, makes a specific exception for assistance animals as reasonable accommodations for residents with disabilities. Remember that assistance animals are not pets. Rather, they provide an important service to people with disabilities, and you must handle these accommodation requests in compliance with the law.
Summary: According to The Case for Fair Housing: 2017 Fair Housing Trends Report by the National Fair Housing Alliance, of all reported complaints of housing discrimination in 2016, nearly 55% involved discrimination against people with disabilities. That’s a staggering statistic. Make sure your no pet policy is not an issue. •
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CHECK-IN/CHECK-OUT CONDITION
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TENANT(S): ____________________ ____________________ OR-RTG-24 Oregon __________________________ ADDRESS: ____________________ ____________________________UNIT: ______________ CITY: ___________________________________ STATE: ________ ZIP: _________________
PET AGREEMENT Rating Scale
= (E)Excellent (VG) Very Good
TENANT INFORMATION
(G)Good (F)Fair (P)Poor
IN Out TENANT(S): ____________________________________________________ DATE:________ LIVING AREAS ADDRESS: ____________________________________________________ UNIT: _________ KITCHEN CITY: _________________________________________ STATE: __________ ZIP: _________ Walls
In
Out
BEDROOM 3
WA-RTG-40 Washington
48-HOUR NOTICE OF ENTRY
TENANT(S): ___________ ______________________ ADDRESS:
In
___________ ______________________ Out CITY: ______________________ ________ DATE:________ ___________
State specific rental and lease forms available in: AK, AZ, CA, CO, DC, DE, FL, GA, IL, IN, KS, KY, MA, NC, NJ, NV, NY, OH, OR, PA, TX, UT, VA, WA & WV. Walls
DESCRIPTION OF PET(S) Windows
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48-HOUR NOTICE OF ENTRY
landlord or their agents unit and ______________________ premises located at (Address) will be CHECK-IN/CHEC ______________________ K-OUT CONDIT ION REPORT______________________ ___________
Floor
Carpet/Vinyl/Wood 3) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Disposal Vaccinations: Yes____ No____ License Number: ______________
________ UNIT: _________ __________ ZIP: _________
Pursuant to RCW 59.18.150, this is your WA-RTG-20 Washington 48 hour entering the dwelling notice that your
Blinds/Drapes
Ice Trays
2) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ Floor License Number: ______________ Shelves/Drawer
AGREEMENT
________ STATE:
Windows
Refrigerator 1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ Rods License Number: ______________
Additional Security Deposit Required:$
______________________
Walls
Stove/Racks
on
Light Fixtures
TENANT(S): ___________ ___________ (Date) and Doors/Woodwork ADDRESS: . ______________________ _________________________________ (Time) (Time) ___________ ___________ CITY: Locks______________________ The entry will occur _______________UNIT: _____________ STATE: for the following purpose: ______________ ______________________ ________ ZIP: ___________ Rating CeilingsScale = (E)Excellent ___________ ______ (VG) Very Good___________ ______________________ ___________ (G)Good ___________ (F)Fair (P)Poor Electric Outlets IN ______________________ _______________________ Out LIVING AREAS ______________________ In Out _ KITCHEN In Out Walls
Cabinets Tenant(s) Tenant(s) certify that the above pet(s) are the only pet(s) on the premises. Ceilings understands that the additional pet(s) are not permitted unless the landlord gives ten Sink ant(s) written permission. Tenant(s) agree to keep the above-listed pets in the premises Electrical Outlets subject to the following terms and conditions: Floor Garbage Cans
Windows 1) The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the Antenna/Cable tenant’s dwelling TV unit. Blinds/Drapes 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly. Fireplace 3) Tenant(s) are responsible for the conduct of their pet(s) at all times. 4) Tenant(s) are liable for all damages caused by their pet(s). Cleanliness 5) Tenant(s) shall pay the additional security deposit listed above and/or their rental agreement as a condition to keeping the pet(s) listed above. 6) Tenant(s) shall notBEDROOM allow their pets to cause any sort of disturbance or injury to the 1 BEDROOM 2 other tenants, guests, landlord or any other persons lawfully on the premises. Walls 7) Tenant(s) shall immediately report to landlord any type of damage Walls or injury caused by their pet. Windows 8) This agreement is incorporated into and shall become part of Windows the rental agreement exe Blinds/Drapes -cuted between the parties. Failure by tenant to comply with any part of this agreement Blinds/Drapes shall constitute a material breach of the rental agreement.
between the hours
rentigration.com BATH ROOM
Towel Bars
Blinds/Drapes
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* Add one additional
d
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Refrigerator
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Sink & Vanity
Toilet
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Carpet/Vinyl/Woo
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of
BEDROOM 3
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Post and Mail:
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www.Rentegration.com 503-933-6437 Rods
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Windows ©2009 NO PORTION
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Electric Outlets
written permission.
Light Fixtures
Light Fixtures
Doors/Woodwork
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Electric Outlets
Windows
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TV Antenna/Cable Essential
Locks ©2011 NO PORTION of this form may be reproduced without written permission. Electrical Outlets
Counter Tops
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______________________________ Floor Tenant ______________________________ Light Fixtures Tenant
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of this form may
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13
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Rental Housing Journal On-Site · April 2018
Rental Housing Journal On-Site
Government Affairs Update, WMFHA ...continued from 9 amounts of highly sensitive, personal data collected, used and maintained about applicants, residents and employees. Data breaches can impact all of these individuals and create severe reputation, financial and legal costs for apartment firms. We explained that Congress should enact legislation that will create a single national data security and breach notification standard that is reasonable, flexible and scalable. WMFHA met with Senator Maria Cantwell to show our support for her long-time efforts to increase federal funding for the Low-Income Housing Tax Credit (LIHTC). Shortly after, the $1.3 trillion omnibus spending plan agreed to by Congress will provide for a 12.5% increase in funding for LIHTC for the next four years. The omnibus bill also increases funds for the Department of Housing and Urban Development (HUD), including public housing and HOME programs. At the state level, the short legislative session in Olympia ended on time, with few solutions on how to build more affordable housing. Proponents of a state-wide source of income protection worked with legislators and rental housing groups to finally bring a source of income proposal that would prevent landlords from denying tenancy of an applicant based solely on their intent to pay rent with a rental subsidy or alternative legal source of income (e.g., a Section 8
Housing Choice Voucher). A critical benefit of this legislation is the establishment of a permanently funded landlord mitigation fund, which would allow landlords to claim reimbursement for up to 14 days of lost rent due to inspection delay from a housing authority or other subsidy provider; will reimburse up to $1,000 for needed repairs in order to pass a subsidy provider’s inspection; and pay up to $5,000 in damages, including unpaid rent and unpaid utilities, as a result of renting to a subsidized tenant. For the first time in 19 years, legislation was proposed to remove the statewide pre-emption on rent control. Bills were introduced in both the House and Senate and received public hearings in both chambers to remove this preemption, but neither unpopular bill moved out of the policy committee and both ultimately died. While the focus now switches to “campaign mode” for half of the 49 seats in the state Senate and all of the 98 seats in the House, many legislators from both sides of the aisle have announced their retirement and more are expected in the coming weeks prior to the May 18 candidate filing deadline. The WMFHA Political Action Committee (PAC) is poised to support candidates whose political views align with the multifamily apartment industry and who can lead to effective solutions to housing the residents of this state. In Seattle legislative news, Seattle's
First-in-Time law passed in 2016, which requires landlords to rent to the first qualified applicant who applies, was struck down by a King County Superior Court Judge, who stated: "The [First-inTime] rule is an unreasonable means of pursuing anti-discrimination because of its sweeping over-breadth." In describing how the city went beyond its authority and how the law was unconstitutional, Judge Parisien goes on to say "the [First-in-Time] rule restricts far more speech than necessary to achieve its purposes in stopping discrimination." On the heels of this victory over overly burdensome regulation, Seattle’s so-called Fair Chance ordinance, which prevents the use of criminal history in tenant screening, seems right for a legal challenge as well. In another example of the Seattle City Council’s attacks on landlords and the rental housing industry, Council member Kshama Sawant is proposing legislation that would require a landlord to pay tenant’s an amount equal to three month’s rent if the landlord has given a rent increase of 10% or more and the tenant decides to move-out. Much is at stake for the apartment industry in this political environment. As the multifamily housing industry continues to meet the needs of our state’s residents, it is ever more critical that we meet the growing rental demand across the country and locally, creating millions of jobs and making homes affordable to more renters.
To get there, we need new public policies that support the multifamily housing industry and that don’t make it harder for renters and their families to find the housing that makes sense for them and their community. Addressing the growing shortage of quality affordable housing for Americans is a top industry priority. Today’s regulatory barriers, limited financing, and increased compliance and construction costs inhibit the private sector from constructing, rehabilitating and operating apartments at rents in line with incomes. More sensible policy is needed and we’re here to fight for reasonable policy equitable to our industry and the community. WMFHA looks forward to continuing to serve our elected officials and policymakers. To get involved in the future of the industry and improve your success, call us at 425-656-9077 to join with us or go to www.wmfha.org to see how you can help. •
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Rental Housing Journal On-Site · April 2018
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Rental Housing Journal On-Site
Dear Maintenance Men ...continued from 11 bedroom make ready? I have always heard the three-day rule to get an apartment ready for rent. My units seem to be on the three-week rule! How can I tighten up the process and turn my units faster? Martin Dear Martin: The “Three-Day Rule” is a nice goal to strive for and can be done. But, most units are not in rent ready condition when we get them back from our departing residents. Here’s a useful time table and work schedule for a one or two bedroom apartment requiring complete paint, carpet, flooring, minor repairs, window coverings and cleaning. Day 1 & 2: Paint prep, trash out, minor repairs, removal of blinds, drapes, switch outlet plates etc. Day 3: Paint Day 4: Carpet/Flooring Day 5: Installation of window coverings, doorstops, switch/outlet plates, fixtures, accessories, toilet seat etc. Touch up paint if needed. Day 6: Cleaning – General cleaning including windows & final inspection. If you have done a pre-inspection of the unit before the resident moves out. You can plan what needs to be done before the unit is vacant. Organize the maintenance techs and contractors ahead of time. Have all the repair and replacement parts ready to go. The key is to plan each day and try to stick to the plan.
WE NEED Maintenance Questions!!! 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.
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Rental Housing Journal On-Site · April 2018
Rental Housing Journal On-Site
Front Door ...continued from 1 could successfully break into. Pros and cons of front door material for your rental property Purchasing a brand new front door is not be a routine expense. So if you are thinking of replacing old doors or upgrading doors on your property, here are some front door materials to consider:
Wooden front doors Pros: 1. Ultra-customizable - wooden doors can be tailored to match countless designs, shapes and color schemes, while also being able to house additional decorative elements, such as glass mosaics and panels 2. Flexible price points - the unique natural look of wood can be accessible for most budgets as different varieties of woods are available at a variety of price points 3. Unique look - Many property owners and designers find wood to be worth the investment as it presents a naturally variegated and “high-end” refined look that other man-made materials cannot replicate Cons: 1. Weather-sensitive - wood is a material that is prone to be affected by its exposure to the weather and other environmental elements. Direct sunlight can fade the natural coloring of the wood, and high-moisture levels in the air (or from precipitation alone) can lead to warping and even rotting of the wood 2. High-maintenance - to ensure that the wood ages well and without being damaged by the natural elements discussed above, it’s essential to regularly treat the wood. Tinctures and sealants should be regularly applied by a reliable maintenance professional, which will be an added maintenance cost to consider. 3. High-price for top-quality - some wood varieties are naturally more resistant and sophisticated-looking, which contributes to their one-ofa-kind appeal and/or ability to last through the years without needing major attention. Premium varieties, such as mahogany or cedar, will be considerably pricier. Steel front doors Pros: 1. Super safe - when it comes to property intrusions, reinforced steel doors are known to be safest against breaches, allowing for increased confidence in a property’s overall defenses against unwanted visitors. 2. Affordable but effective - when considering its wood and fiberglass counterparts, steel stands out as being
far more affordable, while still offering the safety element that it shares with fiberglass and being much more lowmaintenance than wood and its issues with exposure and aging. Cons: 1. Insulation is not its forte - steel is a known conductor of heat and electricity, which makes it problematic when it comes to wanting to keep a property’s interior temperature at a set level. Steel will contribute to heating up the space when heated by outside temperatures and/or sunlight and will struggle to keep the cold out during the winter months. Insulating layers and treatments can improve this downside, but they will come at an added cost. 2. Denting - steel can easily become dented or chipped following impact, and this often results in unappealing marks that are difficult to completely erase. To effectively get right of the unappealing look of those visible surface damages, an entirely new door might need to be purchased. 3. Rusting - while steel is not as sensitive to moisture as wood, it can easily rust over time as it is exposed to moisture and precipitation. Our experts encourage consulting the manufacturer to understand whether and how professional treatments can help
Glass front doors Pros: 1. Unique look - solid glass doors can be made to match a great variety of preferred styles, with varying cuts, shapes and opacity available to be reproduced as desired. 2. Luminosity - glass allows natural light to enter the home like no other material can, which some property owners find to be a valuable addition to the look and feel of their property. Cons: 1. Fragility - experts agree that glass is naturally delicate even when it is reinforced, making it essential to be
Rental Housing Journal On-Site · April 2018
mindful of potential scratches, cracks and chipping that could easily occur. 2. Privacy - while some might be excited about the way glass allows for natural light to illuminate the home, some can be put off by the way glass makes it easy for passerby’s to peek inside a property 3. Questionable safety factor - glass door made for the purpose of being utilized as a property’s front door are generally reinforced to make it difficult for intruders to gain access by easily shattering the glass surface. This being said, glass remains rather fragile and much more easy to break than wood, steel, and fiberglass combined.
Fiberglass front doors Pros: 1. Versatile - fiberglass paneling is man-made, which allows for creating a variety of unique textures and styles. Fiberglass doors can be made to resemble a natural wood grain, or also present smooth and glossy or matte and satin surfaces for distinguished coloring that can match a variety of architectural elements. 2. Resistant - many property owners choose fiberglass front doors as opposed to wood because they are not vulnerable to discoloration and damage from exposure, while still closely resembling the look of wood. They are also more resistant to wear and tear than their steel counterpart. 3. Low-maintenance - these door should be maintained occasionally as they age, but they do not require sealants to be regularly applied, which does help with saving considerable amounts when it comes to maintenance
expenses. 4. Secure - our experts confirm that fiberglass doors are just as secure as their steel counterpart, which allows them to stand strong and dent-free following forced impact 5. Efficient - while all door types can be treated to add insulating properties, fiberglass vastly surpasses wooden and steel door when it comes to insulation. While steel will always struggle with efficiently insulating and wood is vulnerable to temperature and humidity changes, fiberglass is not affected by any of these issues. Having optimal insulation can help ensure lower energy use and expenses as it allows for a property to easily remain hot or cool temperatures as desired. 6. Affordable while aesthetic additions - such as integrated wood or glass decors - will rise costs, basic fiberglass door models are generally rather affordable. Cons: Pricey add-ons - fiberglass doors are fairly affordable, but can get expensive as they are further customized with the addition of decorative elements or coats. Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes hundreds of independent contractors and handymen available for maintenance projects at rental properties.
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Rental Housing Journal On-Site
Application of Payments and 72 Hour Notices by Brad Kraus Attorney at Law Warren Allen LLP
I
see it at least once a week. Bewildered landlords painfully discovering recently enacted laws governing how and where to apply tenants’ payments. I’m talking about ORS 90.220(9), affectionately known as the “application of payments statute” in the ORLTA. Believe it or not, due to this statute, many of those landlords’ NonPayment of Rent Notices may have been defective, without them even knowing about it. Prior to ORS 90.220(9), any payments received from tenants could be applied in manner described in the Rental Agreement. If the Rental Agreement was silent, the Landlord could simply “fill the bottom of the barrel first.” In amending ORS 90.220, the legislature forced Landlords to apply payments received by tenants in a predetermined order. Pursuant to ORS 90.220(9), any payments received from your tenants must now be applied as follows: “A. Outstanding rent from prior rental periods; B. Rent for the current rental period; C. Utility or service charges; D. Late rent payment charges; and E. Fees or charges owed by the tenant under ORS 90.302 or other fees or
charges related to damage claims or other claims against the tenant.” At first glance, the statute is pretty straightforward. However, when put into practice, the statute causes waiver problems galore, especially when tenants carry arrearages from one month to the next. A simple example will illustrate the waiver problem: Terry’s monthly rent is $1,000.00. If Terry pays only $500.00 in January, and the Landlord accepts it, a partial payment has been created. If Terry thereafter pays $1,000.00 in February, $500.00 of that would first go to January’s outstanding balance. The remainder could then either be applied to February’s rent (thereby creating another partial payment issue) or returned pursuant to ORS 90.414 (thereby preserving the Landlords Non-payment termination rights under ORS 90.394). Simple enough… right? Not so fast! Here’s where it could get complicated . .. Terry’s monthly rent is $1,000.00, but Terry also owes the Landlord utilities every month (and hasn’t paid them for over 10 months, causing a utility arrearage of $600.00). Terry also hasn’t paid his rent on time for the past 10 months, incurring a $100.00 late fee each month. Accordingly, Terry’s
ledger balance, including his January and February unpaid rent, is $3,600.00. Yikes! Let’s say that Terry tenders a payment of $1,500.00, which the Landlord accepts. The Landlord wrongly assumes that, due to Terry’s large balance, $2,100.00 (of the $3,600.00 balance) is still owed for rent. Accordingly, the Landlord serves a Non-Payment of Rent Notice, Terry fails to cure, and the Landlord files an FED. The parties then appear at the First Appearance, and a Tenants’ attorney appears on Terry’s behalf, demanding a dismissal (due to the waiver problem) and $750.00 in attorney’s fees. Unfortunately, the Tenant’s attorney’s position is legally sound, and the Landlord is in trouble ... Why? Remember, due to the application of payments statute, the first $1,000.00 applied to January’s outstanding rent due. The remaining $500.00 then applied to February’s outstanding rent, regardless of how much money Terry owed. Maddening, right? So what can be done to prevent such a disastrous outcome? While every situation must be analyzed on its own merits, some best practices can be articulated. First, Landlords must know how the application of payments
statute works in practice. This can be difficult when the Landlord’s ledger software merely throws payments at the oldest (or total) balance. Second, Landlords should protect themselves (and their books) by serving valid For Cause notices. Third, if the Landlord desires to accept a partial payment, the parties should execute a partial payment agreement, in order to protect the Landlord. Finally, prior to service of any Non-Payment of Rent notice upon tenants who carry a substantial balance, Landlords should look at their ledger and determine whether or not, in the current month, a payment of larger than the outstanding previous months’ rent was made. If so, the application of payments statute may negate the Landlord’s ability to serve a Non-Payment of Rent Notice, and a For Cause notice may be the only remaining option. While it’s difficult to discuss and outline every possible way ORS 90.220(9) can complicate your life, knowing that the statute exists is half the battle. Once you acclimate yourself with the statute, and understand its practical effects, you can better protect yourself from potential waiver issues. •
20 Easy, Affordable Maintenance Projects ...continued from 12 combinations for backsplashes, which are generally rather inexpensive while also being highly customizable and adaptable to the existing color schemes and features of a kitchen. 2. Updating cabinet and drawer handles - Swapping handles with newer and slightly more elaborate ones is a very easy and inexpensive hack that makes the space look more appealing and curated. 3. Turning recessed lighting into accent lighting - A maintenance professional can modify existing recessed lighting into hanging lighting, which can completely transform the space by adding a distinguishing accent with a touch of color. 4. Sleek-ifying and modernizing appliances with a coat of liquid stainless-steel - Having a painting expert recoat your appliances with a kitchen-safe liquid stainless steel paint makes outdated or discolored appliances look modern and sleek. 5. Adding molding on top of cabinets Molding makes the space look polished by giving cabinets a custom, built-in look. Different styles of molding exist to match different decors.
5 bathroom maintenance projects 1. Restoring grouts - Over time, tiling can look worn and dirty as the grout becomes stained and collects dirt over time. A tiling professional can easily scrape off old grout and regrout the 18
space, which makes it look clean and neat. 2. Restoring caulking - Just like grout, caulking in sinks, tubs and showers can stain and start looking worn or even moldy over time. Recaulking resolves this issue while updating the overall look of the bathroom. 3. Sealing cracks - Cracks are not a pleasant sight on tiling and fixtures, making them look worn and damaged. They can be concealed by being filled in with sealant. 4. Upgrading showerheads and faucets - Installing a new showerhead and faucet set modernizes and updates the space while also treating your tenants to the enjoyable features of newer showerheads models, such as improved water pressure settings and even integrated lighting. 5. Covering exposed bulbs - Exposed light bulbs aren’t particularly appealing, actually making space look rather unpolished. Plenty of inexpensive lighting fixtures are available for purchase, and can be installed over exposed bulbs to improve the look of the space.
5 ideas for living rooms, bedrooms and home offices 1. Upgrading or replacing baseboards - Like molding for cabinets, baseboards polish and add a finishing touch to the interior of your property. They can be a helpful addition as they protect walls in high-traffic areas from abrasions
and contact, but can easily start looking worn if left unmaintained for long periods of time. Repainting, repairing or replacing older baseboards completely uplifts the spaces where they are installed. 2. Repainting the interior walls Spring and Summer are the ideal time for scheduling major painting projects, as the weather and temperatures are typically paint-friendly. Refreshing the walls with a new coat of paint or opting for a new color is one of the most immediate ways to update the look and feel of the unit, especially considering that some walls can be prone to staining and discoloration over time. 3. Deep-cleaning carpet and sealing hardwood - Both procedures will restore flooring to a like-new condition, which will make the unit feel and look clean and cared-for. 4. Replacing outlets - Swapping older outlets with newer, multi-outlet and usb-friendly models modernizes the unit and lets your tenants to enjoy their practicality and efficiency. 5. Considering smart gadgets - Smart home systems with integrated hightech gadgets offer a variety of innovative ways to make units more efficient and comfortable. Some of the more popular systems include voice-controlled task assistants, user-friendly energy-use monitors, intelligent thermostats and interactive lighting.
Maintenance Summary:
Prioritizing functional maintenance jobs such as gutter cleanings, plumbing and HVAC checkups, emergency repairs, preventative inspections is fundamental maintenance. However, minor maintenance projects for the improvement of its aesthetic qualities should not be underestimated or forgotten. Often times, investing in smaller projects that tackle the aesthetics of a property seems superfluous because they are not repairing or improving the actual amenities, which are the distinguishing factor attributing value to a property. While it’s definitely smart to prioritize functional maintenance jobs, home improvement projects can also add some serious value to a property. Improving the look and feel of a space not only makes the overall unit look more appealing, but it can help with making up for those elements that might be lacking or slightly outdated. Aesthetic improvements showcase attention to detail and make tenants feel good about living in a place that looks well-kept and welcoming. Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes hundreds of independent contractors and handymen available for maintenance projects at rental properties
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Rental Housing Journal On-Site · April 2018
Rental Housing Journal On-Site
253-565-2488 Rental Housing Journal On-Site ¡ April 2018
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Rental Housing Journal On-Site
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Rental Housing Journal On-Site ¡ April 2018
Rental Housing Journal On-Site
A
Apartment Owner Ordered to Pay $1.6 Million in Bed Bug Lawsuit
jury has awarded a California family $1.6 million in one of the largest single bed bug case awards ever reported against an apartment owner, according to a release. Liliana Martinez told NBC in Los Angles her family suffered for months with bed bugs at the Kahala Islander Apartments in Inglewood, California in 2010. She said her child, a baby at the time, was covered in bites. "Just seeing how he would scratch all the time and nothing would heal because it would start bleeding again. It was very emotional, very stressful," she told the television station. The family says they complained to apartment management and were told to throw out all of their furniture and sleep on the floor. But it took months to eradicate the bugs. The lawyer who represents the apartment building declined to comment on the case. The defendant in the case, Amusement Six Apartments LLC owns an apartment complex in Inglewood and simply didn't respond appropriately to the Plaintiffs complaints about bedbugs, according to Yahoo news. According to the suit, it took management 9 days to initially schedule bedbug treatment,
receive bedbug bites the entire time.
and when they did, the pest control operator left handfuls of chemical all over their belongings and carpet. When the plaintiffs complained about the chemical, the management told them there was nothing they could do, and they should vacuum a square area
Rental Housing Journal On-Site ¡ April 2018
in their living room to sleep on with their 2 young children. Although they then agreed to change the carpet, it took them 3 months to do so, and all the while, the bed bugs were feeding and breeding in the carpet until it was changed. The family continued to
Bed bug verdict the largest in U.S. Brian Virag, attorney from the law firm of mybedbuglawyer.com, obtained the $1.6 million verdict for the family and said in a release it was the largest verdict for a single family for bed bugs in the U.S. He represented the family of four including a 3-year old boy and a 3-month old baby girl who were all bitten by bed bugs. His clients were all exposed to bedbugs between July and October of 2012. The case was Liliana Martinez Et. Al. v. Amusement Six Apartments LLC. The young boy, Jorge Maravilla Jr., who was 3 years old at the time of the bedbug exposure was covered in bed bug bites. He has significant residual scarring to the day. The jury awarded Jorge Jr. $880,000. This is the fifth landmark verdict obtained by Virag in the last 12 months that included a 3.5-million-dollar verdict against PLB Management, and a $546,000 verdict in October against the Hilton Garden Inn in Rancho Cucamonga, CA, whose clients were continued on page 18
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Rental Housing Journal On-Site
Renters Feelings about Buying Diminish as Rates Climb amid Tight Inventory
T
here should be a continued good pool of renters for landlords as new research shows many renters feel now is not a good time to buy a home, as interest rates climb and the tight supply of homes for sale continues. Renters and rent payments are going to continue to grow as renters spent a record $485.6 billion in 2017, an increase of $4.9 billion from 2016, according to Zillow research. New consumer findings from the National Association of Realtors (NAR) show that while a growing share of households feel more confident about the economy and their financial situation, those positive feelings are not translating to positive views that now is a good time to buy a home. That's according to NAR's first quarter Housing Opportunities and Market Experience (HOME) survey, which also found that homeowners are increasingly positive about selling, and non-homeowners have anxieties about saving for a down payment and qualifying for a mortgage.
Renters feelings about buying diminish Optimism that now is a good time to buy a home is at its lowest share in the past two years at 68 percent down from 72 percent last quarter. Among renters, feelings about buying are further diminished down to 55 percent from 60 percent last quarter. Those most optimistic about buying are homeowners, older respondents and those living in the more affordable Midwest and South regions. "The critical shortage of listings in most markets continues to spark a hike in home prices that is not easy for many buyers – and especially first-time buyers – to overcome," NAR Chief Economist Lawrence Yun said in the release. "Adding more fuel to the affordability fire is the fact that mortgage rates have shot up to a four-year high in just a few months. Many house hunters are telling Realtors® that they are dispirited by the stiff competition for the short number of listings they can afford." "There's no question that a majority of homeowners have amassed considerable equity gains since the downturn. Home prices have grown a
cumulative 48 percent since 2011 and are up 5.9 percent through the first two months of this year," said Yun. "Supply conditions would improve measurably, and ultimately lead to more sales, if a growing number of homeowners finally decide that this spring is the time to list their home for sale."
Consumers feeling more upbeat about the economy and their financial situation Although optimism was a tad higher a year ago (62 percent), more households in the first quarter of this year (60 percent) believe the economy is improving compared to the fourth quarter of 2017 (52 percent).
Homeowners, residents from the South and those from rural areas were the most optimistic about the direction of the economy. ...continued on page 23
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Bed Bug Lawsuit
Rates Climb Amid Tight inventory ...continued from 22 Stronger economic confidence this quarter also led to households having improved feelings about their financial situation. The HOME survey's monthly Personal Financial Outlook Index2, showing respondents' confidence that their financial situation will be better in six months, rose from 59.1 in December to 63.8 in March. A year ago, the index was slightly lower (62.6). "The jump in optimism to start the year can be attributed to the robust job creation in most of the country, as well as the larger paychecks households are enjoying because of faster wage growth and the recent tax cuts," said Yun. "These three positives should further ignite buyer demand. However, several metro areas with the healthiest labor markets also have the most severe supply and affordability pressures. This troublesome reality is what's dampening moods and keeping many would-be buyers at bay."
More households headed by renters than at any point in 50 years A decade after the housing bust upended the lives of millions of Americans, more U.S. households are headed by renters than at any point since at least 1965, according to a Pew Research Center analysis of Census Bureau housing data. While recent trend pieces point to historical data suggesting an upcoming stagnation in the apartment market,
with nearly 39 million Americans (1 out of every 8) calling apartments home, it’s becoming increasingly difficult to refute the demand for apartments. However, the increase in U.S. renters over the past decade does not necessarily mean that homeownership is undesirable to today’s renters. Indeed, in a 2016 Pew Research Center survey, 72% of renters said they would like to buy a house at some point. About twothirds of renters in the same survey (65%) said they currently rent as a result of circumstances, compared with 32% who said they rent as a matter of choice. When asked about the specific reasons why they rent, a majority of renters, especially nonwhites, cited financial reasons.
(26 percent) were mentioned the most. Twenty-nine percent said they lacked the financial knowledge or did not know the first step needed to qualify. About NAR's HOME survey: In January through early March, a sample of U.S. households was surveyed via random-digit dial, including a mix of cell phones and land lines. The survey was conducted by an established survey research firm, TechnoMetrica Market Intelligence. Each month approximately 900 qualified households responded to the survey. The data was compiled for this report and a total of 2,702 household responses are represented.
Income, debt and anxiety hold back renters from buying In this quarter's survey, nonhomeowners were also asked about the barriers preventing them from saving for a down payment. Limited income (47 percent), student loan debt (30 percent), and rising rents (28 percent) were the top three obstacles cited, followed by health and medical costs (14 percent). Only 14 percent also said that nothing was holding them back from saving for a down payment. Non-homeowners were also asked for the potential reasons why qualifying for a mortgage would be difficult. Income uncertainty (45 percent), a low credit score (34 percent) and too much debt
*Rental Housing Property Management • Single Family home rentals • Condo / Townhome property rentals • Multifamily rentals • Apartment complex rentals
...continued from 21 exposed to bed bugs for a one-night hotel stay. Sixteen former and current residents of one of Los Angeles' largest apartment complexes won a $3.5-million verdict over an infestation of bed bugs in their units last year, Virag told the Los Angeles Times. Park La Brea Apartments, a sprawling complex with more than 4,000 units in the Miracle Mile District, was found liable by a jury in Los Angeles Superior Court late Friday afternoon, said attorney Brian Virag, who represented the plaintiffs. •
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Rental Housing Journal On-Site · April 2018