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Vol. 22 Issue 8
August 2013
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PUGET SOUND APARTMENT OWNERS, PROPERTY MANAGERS & MAINTENANCE PERSONNEL
Published in association with: Washington Apartment Association, IREM & Washington Multifamily Housing Association
Vacancy under 5% in Pierce; Thurston and Kitsap Improve Seattle - Apartment Insights 2nd quarter results show rents climbing and vacancies declining in all three counties, according to Tom Cain of Apartment Insights. The data are from his Seattle firm’s statistics and trends on 50+ unit properties in Pierce, Kitsap and Thurston counties. VACANCY: 5.59% The market vacancy for conventional, stabilized 50+ unit properties in all three counties is 5.59%, down from 6.24% last quarter. The vacancy rate was 6.76% a year ago. The vacancy rate for all properties including those in lease-up is 6.22%, down from 6.97% in the first quarter. Continued on page 3
Tenant Survey Results Revealed re: Seattle’s Food Waste Collection In Seattle, all multi-family properties are required by law to subscribe to a food and yard waste cart and make it available to residents. Why does Seattle require yet another container? Here are several important reasons: • Food and yard waste can be turned into rich compost, and used to amend soils in gardens and landscapes. Tests show that compost results in healthy strong plants, reducing the need for pesticides or insecticides. Sending this great resource to the landfill is like throwing your vitamins and protein powder in the garbage can! • It costs the City more money to send this material by train 300 miles to the landfill in Oregon than to deliver it to the local compost facility. Continued on page 7 Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327
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The Landis Bomb Part 1 of 2 In October of 2012 Washington State landlords were, in this attorney’s humble opinion, kicked in the teeth by the Division 1 Washington Court of Appeals. This very unwelcome dental work came in the form of the Landis case. For those interested, that is Landis & Landis Construction, LLC, an Oregon limited liability company vs Nicola Nation d/b/a Nation Management, 286 P.3d 979 (Wash.App Div. 1 2012). While this case is new enough that its impact has not yet been fleshed out in subsequent courts, it seems likely that this case will accomplish four unfortunate things from the landlord perspective and one from the tenants view. First, this case seems likely to mean that a tenant can both unilaterally cancel a rental contract without any notice to the landlord based on habitability claims. Second, it will likely minimize the need for a tenant to actually inform the landlord of any alleged habitability claims before effectively using those surprise claims as a defense of an eviction that Continued on page 4 Page 6
Chapter 27 Institute of Real Estate Management INDUSTRY INVITED TO IREM’S FALL LEADERSHIP.. Page 14
GOVERNMENT AFFAIRS – CRITICAL TO OUR MISSION Page 17 Washington Apartment Association
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ON-SITE Vacancy ...continued from front page Pierce: 4.87% The last time Pierce County's vacancy rate was under 5.0% was in the third quarter of 2008. This quarter's rate of 4.87% vacancy is a welcome improvement from the 5.69% of the first quarter. A year ago it was 6.76%. The vacancy rate in Gig Harbor showed the steepest drop, and also has the lowest rate of any of the submarkets in Pierce County at 2.95%. The Tacoma North, Central submarket has the highest rate, 5.23% vacancy. Kitsap: 9.73% The market in Kitsap County improved, but not by much. The vacancy rate broke into single digits, 9.73% from 10.12%.. A year ago the vacancy rate was 5.73%. Bremerton's rate remains virtually unchanged at 14.11% vacancy. The Poulsbo/Bainbridge Island submarket has the lowest vacancy rate, 4.39%. Thurston: 5.31% Thurston County's vacancy rate dropped to 5.31% from 5.42%. A year ago Thurston had a 7.0% rate. This is the second consecutive quarter that Tumwater is below 5%; it now stands at 4.79% vacancy. Olympia has the top rate of 5.62%. RENTAL INCENTIVES Pierce: $17 per Month (1.87%) Kitsap: $32 per Month (3.54%) Thurston: $14 per Month (1.64%)
The overall rate for rental incentives for the three-county area is 2.09%, down from 2.71% in the previous quarter. All three counties showed an improvement in this category. Thirty percent of the properties in the three-county area are offering incentives, a real improvement from the 40% in the first quarter. RENTS: $865 Rents had flatlined in the threecounty area at around $852 for the past two years. It's a relief to see some real movement in the average rental rate. It is now at $865 per month, up from $854 last quarter. Pierce: $855 per Month $1.01 per Square Foot Kitsap: $904 per Month $1.07 per Square Foot Thurston: $853 per Month $1.01 per Square Foot Rents bumped up $9 per month in Kitsap, $10 in Thurston, and $12 in Pierce. NEW CONSTRUCTION There are 900 units under construction in the three-county area, most of which are in Pierce. There are 193 units that have completed the design review process, and another 3,233 units that are in the earlier stages of the construction pipeline. The second phase of the 178-unit Trax at DuPont Station in DuPont Continued on page 5
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On-Site Northwest • August 2013
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ON-SITE Landis
...continued from front page
will almost always guarantee the tenant survives a show cause hearing and cause the need for a full blown trial. Third, it would appear this case has the potential to blow the value and purpose of doing an initial walk through inspection out the window. Finally, it would seem that affordable housing for tenants will become increasingly rare because landlords are that much more likely to have to dump copious amounts of money, energy and time into their rentals or get out of the business altogether. That being said, I am going to take a shot at giving some advice based on what we know so far. That will come in a follow up article. Before that I am going to try to give you some context and a nutshell version of what happened in this case. Landis is a construction company that rented a house in Bothell that was next to a construction site so that the company would have a location to operate from near their project. There was an initial walk through in which it was noted that the place smelled of cleaning agents and there were deposits made. When the company began to move into the home, they noticed evidence that rodents had been there some time in the past. Note here, that they only saw some traps, some droppings and smelled something they attributed to rodents. No rodents were seen.
Landis then refused to move in and essentially canceled the contract without giving the landlord any notice or opportunity to correct the presumed or alleged problem. The landlord returned some of the deposit but not all of it. Landis sued. The result of the case is that the Court of Appeals ruled that the initial walk through may be of limited value on any given day and that, to the surprise of all the landlord attorneys I know, the Residential Landlord Tenant Act (RLTA) of 1973 did not really get rid of the old common law doctrine of “Implied Warranty of Habitability.” Well… before I yell “what the heck was the purpose of the darn law then”, I will try to explain what that means. Since 1973 we have been operating under the, apparently misguided, opinion that what the RLTA meant when it gave us a list of those habitability things we as landlords are responsible for keeping up to par, that that is what we are responsible for. Also misguided, was the reliance on the statute in RCW 59.18.080 where it says that if we did not have notice of any deficiencies in those areas the tenant cannot later use them as a defense if they are not current in their rent. It means now, that anything the landlord “reasonably should have known about” is something the landlord is also responsible for and may be rea-
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son for a trial to determine what the tenant rent really should be… rather than what the parties contracted for. Surprise. Oh, and if you thought doing a good comprehensive walk through prior to giving possession was going to cover your backside… nope. But you still have to do it and do it right or you still cannot hold that deposit. Period. Let me remind you of a dirty little secret. If you have to start an eviction on a tenant for non-payment, two things are true. One, if the tenant has access to any of the volunteer attorneys that represent tenants, one of the first thing every one of those attorneys is going to ask the tenant is “are there ANY habitability issues AT ALL please, please, please, wink, wink!” Note I did not end that sentence with a question mark. Follow that with the fact that at a show cause hearing to determine who is entitled to possession, if there are any issues of fact that are both relevant and contested, the matter may not be decided at a hearing and it has to move on to a time consuming and expensive trial. Translate to English that means any of the he said/she said stuff that relates to habitability would have to be set for trial to determine if the rents should be reduced and if so, by how much. Well, the question about “what a landlord reasonably should have known” is automatically and by
its very nature, an issue of fact that is relevant and reason for trial. Here is how that plays out. After you have worked with your tenant for 6 months let us say, taken late and partial payments, maybe waived late fees, even allowed the tenant to do some work in exchange for a reduction in rents and maybe 75 text messages from your tenant saying they just cannot pay but they are trying to get a job or that settlement is coming or unemployment checks will start soon etc. etc. etc. and you finally just get to the point where you have to go forward with an eviction, you will show up on the day of the hearing and for the first time in the tenancy you hear the tenant claim that there is mold in the bathroom and the tenant should not be required to pay the full rent. Well when you recover from the surprise of not hearing about that in any of those 75 text messages you say to the Court “well that is nothing I have been told before and that is probably because the tenant did not use the fan… if it is true at all.” Tenant or their free volunteer attorney will say “the landlord should have known your honor.” Well the Court is going to probably rule, based on Landis, that now you have to set this eviction for trial in a month because this Court does not have the legal authority to decide “whether or not the Continued on page 5
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ON-SITE Landis ...continued from page 4 landlord should have known, or how much the rent should be reduced by if it is true, or even if it is true in the first place. Only a trial judge can decide that. Now the attorney for your tenant says “you are going to lose another month’s rent and pay your attorney many thousands of dollars to go to trial or if you don’t have an attorney face your tenant’s attorney by yourself in a trial… how bad do you want to negotiate a settlement now?” Get out your checkbook. No, we are not done with the bad news, because after all this is done, you have to do a move out inspection and you are going to do your disposition letter explaining why you are keeping what you are keeping out of the deposit and your tenant is now going to say “B.S!” You will point to the initial walk through and the attorney for the tenant, who happens to know that the landlord will be
on the hook for their attorney fees if they win, will pull out Landis and say “your initial walk through does not mean squat.” You see where this is going, but be aware that the volunteer attorney can still get paid by you even if their client, the tenant, is not responsible to pay their volunteer attorney anything, if they prevail. None of this is good news for landlords, in my humble opinion. You can always find an attorney that will give you a different opinion over any other attorney, but I have not found a landlord attorney yet that did not have indigestion over this Landis case. In fact, as President of Washington Apartment Association (WAA), I proposed legislation for the 2013 Session that would undo this case. As part of the WRHIC Coalition I was asked to hold on my bill and try to take this case on by appealing to the Supreme Court of this state. I agreed. This Ma-
rine is a stone cold team player and I had WAA write a sizable check to another organization for, what I believe may be the bulk of the cost of having a former Supreme Court Justice, and excellent appellate attorney, draft a request for the Supreme Court to take up the case. Unfortunately, the Supreme Court denied the request, which means we are stuck with the law unless we can now convince our legislators to change the statute to exclude the old common law doctrine that this case brought back to life for landlords. I promise, we will be pushing that legislation with everything we have.
to keep this article to a reasonable length. I am also hoping that for those of you who read this you will tell your fellow landlords and WAA members and help spread the word to pay attention to this article and look for the next issue. We need to get the word out and help educate our members on some defensive and adaptive approaches to remain successful in this business. If there is a bright side to this Landis bomb it is that it is not an IED that takes life and limb. God bless our heroic service men and women of all our armed forces. Semper Fi! Tune in and spread the word
That being said, what now? Best practices. What are they going to be in light of this case? I am going to give you some thoughts on this in the next issue. I am not trying to create a cliffhanger; I simply have
Rob W. Trickler Attorney and Counselor at Law President Landlord Association of the North Sound President Washington Apartment Association
There are five properties totaling 535 units scheduled to open in the third quarter. They are spread among all three counties. While they will be providing competition for renters, their overall impact on existing properties won't be significant. The three-county market hasn't experienced the robust growth of metro Seattle in the recent past.
However, unlike Seattle it has the good fortune of not being hit with a flood of new units that will be competing for renters in the next few years.
a member of the Committee for over 25 years, and has been researching apartment market trends in the Seattle area since 1978. His company surveys the five counties in Central and South Puget Sound. This article highlights survey results that subscribers can access from an online database of all 50u+ properties. Apartment Insights also provides customized rent reports and market reports. www.apartmentinsightswa.com 206-632-2220.
Vacancy ...continued from page 3 was completed this year. It is featured in the photo. Greystar is the manager. OBSERVATIONS We are encouraged to see some positive change in the three-county market, especially the rebound in Pierce where the vacancy rate dipped below 5% for the first time in nearly five years and rents increased 1.4%.
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Industry Invited to IREM’s Fall Leadership Conference, Oct. 15-19 in Scottsdale Commercial real estate managers and allied professionals are invited to join members of the Institute of Real Estate Management (IREM) at IREM’s 2013 Fall Leadership Conference in Scottsdale, AZ. Slated for Oct. 15-19, at the Westin Kierland Resort and Spa, the Conference gathers together real estate management industry leaders from the U.S. and abroad in a dynamic forum that examines top industry issues, challenges and opportunities; stimulates idea sharing and peer-to-peer relationship building; and more.
SESSIONS TO EXAMINE ASSET MANAGEMENT AND OTHER HOT TOPICS Highlighting the busy and diverse event schedule: An array of “Executive Edge” educational offerings focused on five major content areas: Asset Management: Building Operations; Attracting Talent; Leadership Development; and Sustainable, Profitable Management of the Company. Presented in varied formats by industry practitioners and thought leaders as well as professional speakers, the sessions – scheduled for Oct. 17, 18, and 19 – are included in attendees’ conference
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CONFERENCE REGISTRATION INFORMATION The discounted conference registration fee for IREM Members is $625 for registrations received by Sept. 15, rising to $725 thereafter. The discounted registration fee for nonmembers is $890 until Sept. 15, rising to $940 thereafter. Single-day passes are available as are special, full-conference registration rates for industry colleagues, new industry professionals, and students. For more conference registration details and additional information, call 800-8370706, ext. 4650, or visit IFLC. IREM “EXECUTIVE EDGE” ONLY REGISTRATION INFORMATION Freestanding, three-day, “Executive Edge” education session packages (Oct. 17, 18, and 19) are priced at $350, with a one-day pass priced at $195. For more registration details and additional information, call 800-837-0706, ext. 4650, or visit IREM Executive Edge. www.irem.org
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ON-SITE Tenant ...continued from front page press #2 and leave a message requesting an order form. • The Curb Waste & Conserve newsletter from Seattle Public Utilities is correlated with greater participation by over 600 survey respondents. Make sure to distribute this free seasonal newsletter to your residents – it will boost your recycling and food sorting rate and reduce your garbage! • Older residents recycle and compost more. If your population is middle-aged or senior you can expect that they will be more willing to participate. Make the effort to provide signage, carts, flyers, and training so your garbage will go down. Senior facility “commercial” kitchens are prime opportunities to reduce waste and save money. SPU provides kitchen containers to help with sorting. Leave a message at 206.684.8717, press #2. • 16% of respondents reported not being able to find the food and yard waste cart. Although it’s the law, many tenants couldn’t find it. Resident comments indicated frustration and the desire to participate. Food waste collection combined with improved recycling can reduce your garbage service and save you money. Need assistance to make it work? Call 206.684.8717, press #2, and leave a
• The City currently has a 55.7% recycling rate and the goal is 60% by 2015. Almost one-third of the garbage is food waste, which makes it a hot focus for diversion. So the green food and yard waste cart has good benefits, but how to you get tenants to use it? This is the million-dollar question that comes up at every City of Seattle Friend of Recycling and Composting (FORC) training where managers and resident leaders tell stories of finding pop cans and cardboard in the garbage or food waste in the recycling cart where it so does not belong. Early in 2013, Seattle Public Utilities (SPU) sent out a survey to tenants to learn more about their food waste habits and concerns. Seattle properties of five or more units were the target audience. Over 1,650 residents responded and here is some of their feedback: • Signs, flyers, and posters at the building improve participation. SPU provides free common area/ outdoor laminated posters, food and yard waste flyers and “Where Does It Go?” flyers for units, and labels for outdoor containers. If you don’t have these materials, go to www.seattle.gov/util/recyclingeducation or call 206.684.8717,
ON-SITE
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message. • 71% of residents with access to food/yard carts use them at least once a week. Way to go! Our city is a national recycling leader and proud of it. Celebrate your tenants helping Seattle make the goal. • Inconvenience is a primary barrier. If the recycling or food waste cart is too hard to find or too far away, residents won’t participate. Consider grouping your food/ yard, recycling, and garbage containers outdoors so people have convenience. Notify tenants where the carts are through new tenant orientation, posters or email/ newsletters. SPU provides free indoor small food and yard waste carts for high rises so tenants don’t have to go down 20 floors to get to a cart. Leave a message at 206.684.8717, press #2, if interested. • Odors and pests put tenants off. Surprisingly, SPU has received almost no reports of increased rodents due to a food and yard waste cart. Remember, the food waste has been in the trash can forever; now it’s just re-located. The SPU- provided cart liner will help keep the cart clean which reduces odors. For tips on keeping food contained and flies and odors down, go to www.seattle.gov/ util/apartmentfoodwaste.
SPU offers free educational resources and technical assistance to Seattle properties of five or more units: • Download or order educational materials: www.seattle.gov/util/ recyclingeducation • $100 utility bill credit and FORC/ free bucket program: www.seattle. gov/util/apartmentfoodwaste • Or leave a message at 206.684.8717, press #2 By optimizing the food and yard waste program on your Seattle properties, you are supporting eager “green” tenants, a healthier planet, and the City of Seattle’s budget and recycling goals. Thanks for taking the challenge! Marcia Rutan is the Community Recycling Program Manager for the City of Seattle, with a focus on multifamily properties. She is a 2013 Rosie award winner, a national recognition of outstanding women in the solid waste industry. Contact her at (206) 684-3976 or marcia.rutan@seattle.gov.
Serving the Portland/Vancouver Multifamily Housing Industry More than 21,000 Distributed Monthly www. TheLandlordTimes.com The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. Metro Apartment Manager is produced monthly and is published by Professional Publishing Inc. An Oregon Corporation.
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ON-SITE
Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez
Dear Maintenance Men: I manage a number of properties that use a master key system. Do you have a plan or solution to prevent vendors from losing master keys? This is becoming a problem and an expensive risk. Janet Dear Janet: Never, ever, ever give a master key to a vendor or anyone else not employed by your company. If the building is on a budget and cannot afford state of the art
systems for key control or access, try this simple and cost effective approach: Install a temporary lockbox with the unit key inside and hang the lockbox on the door knob or a water pipe near the unit. Any locksmith and even some hardware stores sell these boxes. If a vendor needs access to a unit, give him access to the lockbox only. Should they lose the key, you are only out the cost of a key. Save yourself a trip and install the lockbox when you visit the property for the move out inspection. Note: The locks should be changed or re keyed after
completion of work. If your vendors need access to a unit where on site personnel is available, the unit must be opened by your employee or provide the vendor with the unit key only, not the master. If your main office is centralized and your portfolio is dispersed throughout a particular region with buildings under 16 units (which do not require onsite managers) appointments should be made in advance and coordinated between the vendor and the resident (keeping you in the loop). This will put the burden of entry, missed appointments, etc. on the resident and the vendor, freeing up your valuable time. If entry is needed due to an emergency, you should respond to the building to assess damages or necessary mitigation at the same time allow entry. Take a lock box with you and a unit key incase the repairs will be prolonged and access will be needed by others. Never give a master key to a vendor!
7/1/13.
Dear Maintenance Men: I have a conundrum! I am thinking of charging an automatic cleaning fee to my new residents. (Of course, after executing a fully signed disclosure with the new resident at the time of contract signing.) The issue has arisen because when a resident
moves, they expect their cleaning deposit to be returned if they clean the unit. However, I find I must clean again at my expense as the unit is really never clean enough. Is the automatic cleaning deposit a good idea or will the residents just leave the unit in far worst conditions, since they feel they have already paid for the cleaning? Kelly Dear Kelly: Due to the fact that individual units may differ in the size, construction, appliances, finishes amenities etc., establishing a one size fits all cost or fee may hurt you in the long run. People have different ideas of what “clean” is and this is why property owners and managers must set the standard of how clean the unit must be. Give the resident a description of what management considers a clean unit to be and have the new resident fill out and sign a move-in inspection form as to the move-in condition of the unit. When you are given a notice to vacate, inspect the unit and document the conditions. Do not discuss the cost or what you will be charging or deducting from the security deposit with the resident at the time of the inspection. However do let the resident know what is expected when the unit is returned and supply the name of Continued on page 9
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ON-SITE Dear ...continued from page 8 your preferred cleaning service. The rational in supplying the name of your cleaning service for your tenant’s use is that the cleaning service knows what is expected and how management wants the units cleaned. Upon move out; if the vacant unit does not meet that standard; charge the resident a cleaning fee, backed up with vendor receipts and take pictures of the substandard unit should the matter go to court. Keep in mind that there are always costs in turning a unit such as normal wear and tear, smoke/ Co2 alarm batteries and other cost of doing business associated with being an owner or manager of an apartment building. Dear Maintenance Men: I have rented a unit to a retired building contractor and he has offered to do work around the building in exchange for a rent reduction. He says he knows what he is doing
and the arrangement will benefit both of us in the form of lower rent for him and lower apartment maintenance costs for me. He views it as a win win for both of us. Is this a good idea? Gloria Dear Gloria: This is a management and maintenance question all in one! Both will have the same answer and it is a firm NO! You will lose all leverage over the work since you are not directly paying for the work and you are blurring the lines between resident and landlord. Do you evict the tenant because he did a bad job installing a garbage disposal unit or because he is short on his rent? It would be better that your resident work for someone else and keep your maintenance and rent separate. Also, please keep in mind the liability and workman’s compensation issues that may be involved by hiring a
resident to do work at your building. QUESTIONS? QUESTIONS? QUESTIONS? We need more Maintenance Questions!!! To see your maintenance question in the “Dear Maintenance Men:” column, please send submission to: Questions@ BuffaloMaintenance.com Please “Like” us on Facebook.com/BuffaloMaintenance
management service or consultation Frankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01216720 Certified Renovation Company www.BuffaloMaintenance.com & www.ContactJLE.com www.Facebook.com/ BuffaloMainte nance
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On-Site Northwest • August 2013
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strong rental markets, many leasing employees are faced with the wonderful challenge of being 100% leased. Some apartments are being rented “sight unseen,” and perhaps there are only a few days in any given month where vacant apartments are available to look at before the new residents move in. For communities that have rented and done away with their model apartments, many leasing consultants are now in situations where they have nothing to show, even if they have unrented notices. The following question expresses this dilemma and the leasing consultant’s frustration:
Q: Our property consistently stays full and we typically rent our notices almost as soon as they come in. When people call to inquire about an apartment and I don’t have anything available to show, I will usually refer them to our web site or recommend that they call back at a later date. I don’t want to waste their time if I don’t have anything available. However, lately some callers have been pretty insistent about wanting
to come by even when I don’t have an apartment they can see. Should I really be trying to set appointments when all I can do is hand out a floor plan and give a property tour?
A: This is a challenge, and yet a unique and incredible opportunity for you to highlight and sell many other aspects of your community that you might not normally focus on during an apartment tour. EVERY caller should be extended an invitation to visit your community, whether you have an apartment to show or not. While a web site is just one of many “sales tools” at your disposal, it is not the only tool you have. What about your property and the many community benefits you have to offer? Even if you work at a smaller community, you still have numerous benefits to sell. Perhaps it’s the location of your building and the many area conveniences, which no one will truly appreciate unless they make a visit and drive through the neighborhood. Maybe you have an outstanding maintenance staff that is highly visible that a prospective resident
would observe hard at work when visiting your community. What about your friendly residents who are out and about? The ones who smile and cheerfully say “Hello” to everyone they meet. Have you ever considered your existing residents as a “sales tool?” Then, last, but certainly not least, there is YOU!! No web site or other form of “inanimate” advertising can take the place of a warm, friendly and VERY enthusiastic person who is excited about their product and what they are doing. Of course it’s much “easier” to just refer someone to a web site or encourage them to check back with you when you have no apartments to show. After all, it does “appear” that you are trying to be “helpful.” What if you extended an invitation to visit instead? You would definitely have to expend some extra time and energy and get creative to sell your product in a new and exciting way without a “visual.” Perhaps your enthusiastic personality could describe and demonstrate with such animation that you could create your own “visual?”
Of course you want to be honest about your apartment availability and not get your prospects so “worked up” that you sell them on renting an apartment that is not available for their time frame. On the other hand, maybe there is some flexibility with their move date. Remember: Part of your job as a sales person is to convince the customer that what you have to offer is worth waiting for. . . ASK THE SECRET SHOPPER Provided by: SHOPTALK SERVICE EVALUATIONS Phone: 425-424-8870 E-mail: joyce@shoptalkservice.com Website: www.shoptalkservice.com Copyright © Shoptalk Service Evaluations
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Marketing in Property Management
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arketing is commonly defined as the process of communicating the value of a product or service to customers, for the purpose of selling the product or service. It is utilized universally as a critical business function for attracting customers. In property management it is important to acknowledge the connection between living requirements & financially viable results. What we strive for with owners and residents in this industry are long term relationships. Emphasize the value of your properties and services and then position yourself so that you have a prevalent internet presence and take precedence over other companies. Utilize marketing techniques in order to effectively create, deliver and communicate your services and mission altogether. You’re aiming to achieve success as a company as well as prove the benefit to your shareholders that they initially signed up to receive. The first step of successfully marketing is getting connected. Identify your target markets by asking yourself, who is your target customer? In property management with accordance to fair housing laws, you must find the balance between Generation
Get Connected, Stay Connected, Be Responsive! Y, professionals and retirees. Distinguish which apartment communities attract which demographics whether it’s students, families, singles or mature adults. A marketing plan with integrity is one which addresses marketing in terms of relationships, internal functions, integrated systems and socially responsive dynamics. Create a strong mobile presence since that is currently the number one source used to search ‘on the go’. Emphasize online payment capabilities and the simple benefit your customer basis can receive from that option. The next step is to remain connected. It’s easy to drop off the deep end in this day and age when smaller, greener and better options are constantly becoming available. Continuously capture marketing insights, connect w/ customers, build strong brands and adapt your company so it tailors to market demands. Consistently deliver and communicate not only the immediate value of your company’s offering but pave the way for long-term growth. Developing marketing strategies and plans will only solidify the compassionate corporate culture you aim to achieve. Take advantage of property management marketing
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tools. There are a plethora of marketplace exposure options through individual platforms which make a consistent presence easier to manage and control. Maintain a stream of multiple communication styles. The younger generations will expect more email or social media forms of communication while you definitely can’t neglect the phone calls from other generations. Lastly, be responsive. The problem with 9-5 hours is that the majority of people work those 9-5 hours. So communicating regarding living situations may not be feasible for a handful of people when they’re at the office focused on work-related issues. Maintain your website and hold a presence on social media sites. Keep your community up-todate on relevant issues through company newsletters or consistent blogging. Ultimately manipulate social media, and find a balance so that all generations feel acknowledged. Since real estate involves housing for all ages, it is very important to not neglect a certain age group. Adhere to Fair Housing by promoting housing for all and aspire for definitive equality. Increase presence both on the internet and physically on-site and you will achieve a
residential community who is content with your efforts at the very least. Marketing is utilized in every form of business and day-to-day interaction. Within the property management world it is simply a way to stay on top and orchestrate the many different economic factors which constantly threaten the living situations of society. Initiate a connection with your community, remain connected and be responsive; this will make the most of your marketing experience and aid in achieving the ultimate prosperity you strive for with each and every property you invest in. Lauren Ginder, Pacific Crest Property Management Lauren can be reached at 206-812-9144 or via email at: ginderl@ pacificcrestpm.com. www.pacificcrestpm.com
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ON-SITE
Second Quarter Apartment Markets Mixed in Latest NMHC Survey While demand for apartment homes remained strong, rising interest rates exerted negative pressure on the industry’s ability to secure debt financing according to the National Multi Housing Council’s (NMHC) July Quarterly Survey of Apartment Market Conditions. Only the Market Tightness Index (55) remained above the breakeven line of 50 this quarter. Sales Volume (46) and Equity Financing (49) dipped, with Debt Financing dropping sharply to 20. “Debt costs for apartment firms have been rising. In addition to the 90 basis point increase in interest rates from the April survey, spreads over Treasuries have also gone up, likely dampening transactions somewhat. Rates are still low by historical standards, however, and at current levels should not put too big a crimp in apartment activity going forward,” said Mark Obrinsky, NMHC’s Senior Vice President for Research and Chief Economist. “Underlying demand trends remain strong, and we are approaching the cusp of a meaningful increase in supply that will hopefully be enough to meet the current need for apartment homes.” Key findings include: • Construction costs are rising nationwide. More than two-thirds (68 percent) of respondents indicated that construction costs had increased by more than 5 percent since last year. Another 29 percent indicated construction costs had increased over a year ago, but by less than 5 percent. [Note: These figures exclude the 16 percent of respondents who answered “don’t know.”] • Market Tightness Index edged up to 55 from 54. Just 14 percent noted looser conditions in the markets they were familiar with. This represents the 13th time in the last 14 quarters in which the index was over 50. • The Sales Volume Index dropped from 55 to 46. This was the second time in the last three quarters
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in which the Sales Volume Index was below 50, though just by a little. Over the last eight quarters, the index has averaged 52, suggesting a small pickup in volume over that time. • The Equity Financing Index dropped 7 points to 49. This was the first sub-50 reading in the last four years. Forty-nine percent viewed equity financing as unchanged. Twenty-one percent of respondents viewed equity financing as more available while 22 percent viewed equity financing as less available. • Debt Financing Index dropped sharply to 20 from 59. Two-thirds (67 percent) of respondents indicated that debt financing conditions had
worsened since April, and 21 percent considered conditions unchanged. Only 8 percent of respondents thought debt financing conditions had improved – the lowest figure since October 2008. Full survey data are available at www.nmhc.org/goto/61291. About the survey: The July 2013 Quarterly Survey of Apartment Market Conditions was conducted July 8-July 15, 2013; 70 CEOs and other senior executives of apartment-related firms nationwide responded. Based in Washington, D.C., NMHC is a national association representing the interests of the larger and most promi-
nent apartment firms in the U.S. NMHC’s members are the principal officers of firms engaged in all aspects of the apartment industry, including owners, developers, managers and financiers. One-third of Americans rent their housing, and over 14 percent live in a rental apartment. For more information, contact NMHC at 202/974-2300, e-mail the Council at info@nmhc.org, or visit NMHC’s web site at www.nmhc.org.
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18300 Cascade Ave. S., Suite 130 Tukwila, WA 98188 (425) 656-9077 (425) 656 9087 (fax) admin@wmfha.org
Government Affairs – Critical to Our Mission
he Washington Multi-Family Housing Association is committed to advocating for legislation favorable to the multifamily housing industry and advancing the interests of this industry and the communities we serve. WMFHA works to build strong connections and communicate with stakeholders at a local, state and national level. Our Government Affairs committee members and state and local lobbyists work throughout the year to promote the interests of its members by engaging in the legislative process and educating policymakers on the issues faced by our industry. The goals of our lobbyists are to act as a liaison between state legislators and the association, working to create positive relationships with public officials, educating legislators on the needs and objectives of the housing industry, and the importance of favorable legislation to the constituents served by the housing industry. Their role is also to be aware of any legal or political trends, policies, bills or ordinances which might affect the apartment industry,
and advocate support of or opposition to any policies that impact our members. The Government Affairs department of WMFHA has had a busy summer and we are continuing to work on several issues of importance to multi-family owners and operators: ELECTIONS The Seattle primary is over and we now know the 2 mayoral candidates that will move on to the general election in November. WMFHA did not endorse any candidates for the primary and the Government Affairs Committee will meet soon to decide which candidate we will endorse for the general election. Washington State held its primary election recently and initial results in the three off-year state senate races have the Republicans (including their newly appointed incumbents) leading with comfortable margins.
bon monoxide alarms through special legislation was not successful. The deadline of January 1, 2013 is in full effect and any landlords who have not yet installed CO alarms should do so immediately. GOVERNMENT AFFAIRS ROUNDTABLE In August our Government Affairs Director, Joe Puckett and our Olympia lobbyist, Kathryn Hedrick, attended the annual Government Affairs Roundtable and Legal Symposium where people in the multifamily industry from across the country gather to talk about legislative and regulatory issues that are appearing in various states and localities. The conference presents a great opportunity to learn what is happening in other parts of the country, how various associations have responded to issues and what we can expect in the near future.
CARBON MONOXIDE ALARMS Our efforts to secure an extension of the deadline for installation of car-
SEATTLE RENTAL REGISTRATION AND INSPECTIONS ORDINANCE Executive Director Jim Wiard, Joe Puckett and our Seattle lobbyist, Tim Hatley, have been meeting with members of the Seattle City Council and the Department of Planning and Development over the past year as DPD works on developing rules and regulations for the upcoming RRIO. Registration in Seattle of properties with 10 or more units will begin in January, 2014. Properties with 5 to 9 units will begin registration in July, 2014. SEATTLE EX-OFFENDER PROTECTION IN EMPLOYMENT In June, the Seattle City Council passed an ordinance that provides protection for ex-offenders in employment. The law will take effect on November 1, 2013. The Seattle Chamber of Commerce worked hard to make this ordinance one that would not impose undue restrictions on Seattle employers. We believe the Continued on page 15
September 26, 2013 11:00am - 3:00pm This is the Property Management Industry’s leading economic forecast event. The 7th annual Washington Apartment Outlook will provide Apartment Industry Professionals, Community Leaders, Owners, Lenders, Executives and Asset Managers the latest information on economic trends in real estate from the state’s leading and most trusted experts.
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This information will be critical in helping your team properly forecast your business, build your budgets, and formulate winning strategies for success in 2014.
Legislative Update Joe Puckett, Director of Government Affairs - WMFHA
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Member Tickets — $89 Non-Members — $109 Reserved Tables of 10 available For Tickets and Additional Information Contact 425.656.9077 or visit us www.wmfha.org Reception immediately following program courtesy of
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On-Site Northwest • August 2013
ON-SITE Government ...continued from page 14 Chamber accomplished its goal and we were pleased to work hand in hand with them in achieving this result. Significantly, the ordinance provides that certain employment positions are exempt from the law. Among those that are exempt are employees that will or may have unsupervised access to children under 16 years of age or to vulnerable adults. Legislative Successes Over The Years Our organization has been able to help influence favorable outcomes to contentious issues and trends impacting our industry over the past several years due to the dedication of our members and the leadership of our advocacy efforts. The below are just a few of the notable accomplishments of our Government Affairs Department: Worked with the State Building Code Council (SBCC) to reverse their decision to ban Christmas trees from the inside of apartment unit, and charcoal and gas grills from balconies in 2004. Successful in changing the RLTA Act to clarify the number of days required to give notice to a tenant who wishes to respond to an unlawful detainer action. Storage of evicted tenant’s property – clarified that the tenant must
notify the landlord if the tenant wants their property stored. Helped author legislation that put reasonable restrictions on the municipalities who institute an inspection program – which has even had an influence in Seattle. Worked with the SBCC in clarifying rules regarding the installation of carbon monoxide detectors in units. Clarified what the owner’s responsibility is for tenant’s unpaid utility bills – saving owners thousands of dollars. Some of the proposals we have successfully worked to avoid include: • Outlawing ratio utility billing system (RUBS). • Placing caps on late fees, eliminating per day charges. • Prohibiting landlords from evicting tenants who fail to pay late fees. • Limiting landlords ability to deduct the late fee from the security deposit. • Mandating landlords give 90-days’ notice to vacate. • Significant and costly restriction on screening – including making reports portable, mandating who landlords can accept reports from and prohibiting screening companies from reporting a filed eviction.
• Taxing rental income – which would obviously cost our owners greatly. WMFHA PAC The Washington Multi-Family Housing Association’s Political Action Committee is an essential arm of WMFHA’s government affairs program. WMFHA members contribute to the PAC, and the PAC in turn contributes to legislative candidates who are open to the apartment industry’s views on political issues crucial to your business, employees and the multi-family housing industry at large. The PAC supports proapartment state and local candidates who understand the needs and concerns of the multifamily industry and works to educate lawmakers on our issues. Collectively, our members have a stronger voice on legal and legislative matters when we can show that we are a large organization with a consistent, powerful message.
National Representation As the Washington affiliate of the National Apartment Association, we stay informed on issues at the national level and work with NAA to share the message that the apartment industry is vibrant and critical to the growth of our nation’s economy. Earlier this year, our staff met with legislators in Washington D.C. to share information passionate to our members and propose solutions to issues of tax reform, immigration reform and housing finance reform. The Washington Multi-Family Housing Association will continue to be a voice for the industry, to advance the professionalism and business objectives of our members, and to support our communities and those we serve. We could not do all we do without the dedication and commitment of our members. If you would like to partner with WMFHA and would like to get more involved in government affairs, please feel free to call us at 425-656-9077.
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Top Seven Reasons to Use Rental Payment History Data
E
xperian® RentBureau®, the leading provider of rental payment history data to the multifamily industry, recently released the findings of an analysis examining the financial risk posed by residents and the most effective screening metrics to employ to avoid lost revenue from risky residents. The analysis, Risk versus reward: identifying the highest-quality resident using rental payment history, provides unique, industry-specific insights regarding the use of rental payment data in conjunction with credit scores in screening to produce a superior prediction of a resident’s propensity to default. The analysis also includes first-of-itskind data regarding late payments, nonsufficient funds (NSF), write-offs and rental collections. Here’s a look at the top seven takeaways from the analysis that offer multifamily owners and property managers a look into the best applications of resident payment history data: 1. Complement traditional credit scoring: The use of rental payment data in conjunction with credit scores
in the screening process produces a superior prediction of a resident’s propensity to default. To improve rent default rates and better assess an applicant’s risk, owners and property managers are best served by utilizing rental payment data along with credit scores. Renters with the highest credit scores show much lower rates of default. However, within that population, those with negative rental history are more than four times as likely to default as those with positive rental history. 2. Realize better risk management: Renters, as measured by credit scores, are a higher-risk group than the U.S. population overall. Eightyfive percent of the renters in the sample set are in one of the three lowest VantageScore® credit ranges (501 to 799), compared with a national average of only 64 percent. 3. Gain insight into propensity to default: How an individual paid rent in the past is a good indicator of how he or she will pay rent in the future. Renters with one prior rental debt
have a default rate nearly four times higher than applicants with positive rental history. 4. Avoid balances owed: Rental payment history data allows for the identification of residents who repeatedly move out of communities owing money. These individuals are nearly six times as likely to repeat this behavior compared with a resident who has consistently paid rent on time. 5. Spot serial skippers: By identifying prospects with multiple negative prior rental payments, owners and property managers can avoid renting to individuals who likely are serial skippers and have a 35 percent chance of defaulting again. 6. Minimize late and NSF payments: Default among residents who have a history of late or NSF payments escalates steadily as the number of late or NSF payments increases. Renters with three or more late or NSF payments have a default rate more than twice as high as renters
with only two or fewer late or NSF payments. 7. Achieve higher occupancies: Augmenting the lack of a credit score with rental history data can help owners and property managers improve occupancy while also managing risk. Unscoreable individuals with positive rental history have lower overall default rates and could make strong renters for managers looking to increase occupancy. To learn more about how rental payment history can help your portfolio protect NOI, reduce skips and evictions, and identify the highest-quality residents, download a complimentary copy of Risk versus reward: identifying the highestquality resident using rental payment history, an analysis of the most effective screening metrics to employ to avoid lost revenues from risky residents. VantageScore® is a registered trademark of VantageScore Solutions, LLC.
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ON-SITE
Property Management Success, While Maintaining Your Sanity! © By Ernest F. Oriente, The Coach Picture this…Captain Craig has invited you to spend a month sailing the Caribbean with all the lobster you can eat! Your captain has only one rule—“no telephone calls, no E-mail, no texts”. Will your properties run smoothly while you’re gone? Will your residents be well served in your absence? The information in this article, when put into practice, will reduce your stress, increase your business success, and give you the freedom (and vacation!) you so richly deserve. Building a winning team: Trust each employee to do their job and be sure each team member feels they are a valuable part of your property management team. Set the example for positive interaction between members of your team at all times, even when ideas or performance must be corrected. Conversely, if you have current employees who are not performing well, consider whether they are a wise investment as your property management company is only as good as each individual’s contribution.
Tip From The Coach: Hire wisely when building your leasing and management team and never compromise your standards. Look for the three I’s: intelligence, initiative, and integrity when interviewing for each position, and only hire those who perfectly match [to learn more about pre-hire employee testing send an E-mail to ernest@ powerhour.com] the profile of your property management company. When you find Superstar employees, reward them financially and make sure their pay is at market level or above. Lastly, take time to acknowledge each team member’s contribution, as the biggest loyalty builder is two simple words--thank you. Working with your team: Know each team member’s job responsibilities and master them. This gives you a reserve employee and trainer (yourself), but has an added bonus. If you show your leasing staff and property supervisors you are willing to learn or have learned his/ her job, you are communicating you believe their work has value. Every
team member needs to know when they are emptying trash cans, making collection calls, or speaking with an unhappy resident, their work is worthwhile and significant. Tip From The Coach: Establish a training schedule so each person on your team can learn to do at least two jobs, particularly with your computer software systems and for key resident services. For critical tasks, at least three people should know how to do each job. Once this training is finished, you will always have an on-site expert who can step in when needed. Giving your best and encouraging the same: Pride in your property management company and its services always begins at the top and your leasing team and property supervisors will mirror your exact views and expectations. If you set an example of making the extra effort, pitching in when needed, caring about your team members, working as a unit to be the best in the property manage-
ment business, and taking care of the bottom line, your property management team will follow suit. Tip From The Coach: Wherever possible, give your employees a stake in the future. Try scheduling a short monthly meeting and ask your team to make suggestions on how to improve their leasing product/services, their resident services, their property efficiencies, and your bottom line. Give monetary rewards when employee ideas produce increases to your profits and give positive encouragement for the process. Lastly, have fun along the way…a good laugh soothes even the toughest of days. Captain Craig, says “ready to set sail?” Want to hear more about this important topic or ask some additional questions? Send an E-mail to ernest@ powerhour.com and The Coach will E-mail back to you a free invitation to be a participant on a PowerHour conference call. On this call we will discuss the tips from this article. Continued on page 19
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On-Site Northwest • August 2013
ON-SITE Property ...continued from page 18
Lan dlo rd– Ten ant Law
Author’s note: Ernest F. Oriente, a business coach since 1995 [30,500 hours], a property management industry professional since 1988--the author of SmartMatch Alliances--and the founder of PowerHour...[ www.powerhour.com and www.powerhourseo.com and www. pirmg.com and www.powerhourleadershipacademy.com ], has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars, traditional and Internet SEO/SEM marketing, competitive sales strategies, and high leverage alliances for property management teams and their leaders. He provides private and group coaching for property management companies around North America, executive recruiting, investment banking, national utility bill auditing [ www. powerhour.com/propertymanagement/ utilitybillaudit.html ] national real estate and apartment building insurance [ www.powerhour.com/propertymanagement/insurance.html ], SEO/SEM web strategies, national WiFi solutions [ www.powerhour.com/propertymanagement/nationalwifi.html ], powerful tools for hiring property management SuperStars and building dynamic teams,
employee policy manuals [ http://www. powerhour.com/propertymanagement/ employeepolicymanuals.html ] and social media strategic solutions [ http:// www.powerhour.com/propertymanagement/socialmedialeadership.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox sales methodologies. Recent interviews and articles have appeared more than 7000 times in business and trade publications and in a wide variety of leading magazines and newspapers, including Smart Money, Inc., Business 2.0, The New York Times, Fast Company, The LA Times, Fortune, Business Week, Self Employed America and The Financial Times. Since 1995, Ernest has written 200+ articles for the property management industry and created 350+ property management forms, business and marketing checklists, sales letters and presentation tools. To subscribe to his free property management newsletter go to: www.powerhour.com. PowerHour® is based in Olympic-town…Park City, Utah, at 435-615-8486, by E-mail ernest@powerhour.com or visit their website: www.powerhour.com
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503-221-1260 On-Site Northwest • August 2013
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ON-SITE
HUD Provides $2.9 Million to Support 31 New Projects Serving The Homeless in Alaska, Idaho, Oregon & Washington Recently’s awards are in addition to $89 million HUD allocated earlier this year to renew support for 406 existing homeless projects in the Northwest U.S. Housing and Urban Development (HUD) Secretary Shaun Donovan recently announced the award of $2,903,449 to support 31 new homeless housing and service projects of Continuums of Care in Alaska, Idaho, Oregon and Washington state. Alaska was awarded $ $166,038 to support five new projects, Idaho was awarded $57,446 to support three projects, Oregon was awarded $371,275 to support seven projects and Washington state was awarded $2,308,690 to support 16 projects. For more details, visit http://portal. hud.gov/hudportal/documents/ huddoc?id=12_new_grants_12.pdf Recently’s HUD Continuum of Care awards are in addition to the $89.1 million that HUD allocated
earlier this year to renew support for 406 existing homeless projects in Alaska, Idaho, Oregon and Washington state and were part of some $52 million awarded recently to some 200 new projects across the country as well as nearly 200 grants to assist with local strategic planning activities. This year, HUD challenged local communities to reexamine their response to homelessness and give greater weight to proven strategies, from providing ‘rapid re-housing’ for homeless families to permanent supportive housing for those experiencing chronic homelessness. The new projects were largely the result of local strategic decisions that resulted in the reallocation of funds from existing renewal projects that were deemed by a local Continuum of
Care no longer critically needed in favor of creating new programs to help the community achieve the goal of ending homelessness. “Recently’s grantees will join the thousands of local programs that are on the front lines ending homelessness across the nation,” said Donovan. “As we continue to see a decline in homelessness, investing in programs that are moving homeless families and individuals to permanent housing is as critical as ever because it’s not only the right thing to do, but it’s smart government and fiscally prudent.” The $52 million in grants announced recently support a wide range of new programs, including projects to create and implement systems to make the use of homeless
services more efficient and more than 1,600 new permanent supportive housing beds for chronically homeless persons. The new projects were largely the result of local strategic decisions that resulted in the reallocation of funds from existing renewal projects that were no longer critically needed in favor of creating new programs to help the community achieve the goal of ending homelessness. Earlier this year, HUD awarded more than $1.5 billion in the first two rounds of grant funding to renew support for more than 7,500 local programs. View a complete list of all the state and local homeless projects awarded funding. Continuums of Care grants are awarded competitively to local projContinued on page 21
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ON-SITE HUD ...continued from page 20 ects to meet the needs of their homeless clients. The grants fund a wide variety of programs from street outreach and assessment to transitional and permanent housing for homeless persons and families. HUD funds are a critical part of the Obama Administration’s strategic plan to prevent and end homelessness. Additionally, new grants awarded in FY2012 included—for the first time ever—$11 million in funds for planning activities that will assist Continuums of Care fulfill their responsibilities under the Continuum of Care Program interim rule. According to the 2012 “point in time” estimate of the number of homeless persons in America, there were 633,782 homeless persons on a single night in January of 2012, largely unchanged from the year before. While HUD found significant declines among the long-term homeless and veterans, local communities reported an increase in the number of sheltered and unsheltered families with children. HUD’s Continuum of Care grants announced recently will offer new permanent supportive housing and rapid re-housing to homeless persons as well as link them to services including job training, health care, mental health counseling, substance abuse treatment and child care.
In 2010, President Obama and 19 federal agencies and offices that form the U.S. Interagency Council on Homelessness (USICH) launched the nation’s first comprehensive strategy to prevent and end homelessness. Opening Doors: Federal Strategic Plan to Prevent and End Homelessness puts the country on a path to end veterans and chronic homelessness by 2015 and to ending homelessness among children, family, and youth by 2020.
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On-Site Northwest • August 2013
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ON-SITE
Improving Markets List Includes 247 Metros in August A total of 247 metropolitan areas across 49 states and the District of Columbia qualified for inclusion on the National Association of Home Builders/First American Improving Markets Index (IMI) for August, released today. While this is eight metros shy of the number listed on the IMI in July, it is approximately three times the number of metros that qualified for the list in August of 2012. The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecu-
tive months. Three new markets were added to the list and 11 dropped from it in August. Newly added metros this month include Kankakee, Ill., along with Atlantic City and Ocean City, N.J. “In all, 244 metros that were listed as improving in July retained that status in August, and this is an encouraging sign of the continuing housing recovery,” noted NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “That said, we know that the pace of improvement is being hampered somewhat by challenges that builders and buyers are experiencing with
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regard to the availability of credit, materials, lots for development and labor.” “While the number of improving housing markets this August remains well ahead of the same month last year, the index is affected by seasonal softening in home prices just as we saw happen in 2012. The metros that fell off the list this month originally qualified with very small home price improvements that have since slipped back,” explained NAHB Chief Economist David Crowe. “As house prices return to more normal levels in fully recovered markets, further IMI advancements will be more modest.” “Even with the small decline in the IMI this month, close to 70 percent of all U.S. metros are represented, and the geographic distribution of entrants continues to be very widespread,” said Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. “These facts should be reassuring to today’s prospective home buyers.” The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index mea-
sures three sets of independent monthly data to get a mark on the top Metropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list. A complete list of all 247 metros currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in August, is available at www.nahb.org/imi.
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On-Site Northwest • August 2013
Experience. Solutions. Results.
S
LL R A FE C OF
R FO
PENDING
FOR SALE
SOLD
Village at Seeley Lake
Stoney Creek
Kenny Dudunakis & Jim Jensen
Kenny Dudunakis & Jim Jensen
Lakewood – 522 units
Lakewood – 231 units
SOLD Chelsea Heights Tacoma – 78 units
Sold: $18,800,000
Kenny Dudunakis & Jim Jensen
SOLD
Albers Mill Lofts
Chehalis Avenue
Kenny Dudunakis, Marty Leith & Jim Jensen
Robert Di Pietrae & Jim Jensen
Tacoma – 36 units
Lauriston / Kensington
Tacoma – 25 / 38 units Jim Jensen
Jim Jensen, CCIM, Senior Vice President Jim Jensen, CCIM, Senior Vice President Jim CCIM, Senior Vice President 4041Jensen, Ruston Way, Ste. 103 | Tacoma, WA 98402 253-509-7157 | jjensen@hpapts.com 4041 Ruston Way, Ste. 103 |Way, Tacoma, WA 98402 WA 98402 4041 Ruston Ste. 103 | Tacoma, | jjensen@hpapts.com 253-509-7157 |253-509-7157 jjensen@hpapts.com Kenny Dudunakis, Senior Partner Kenny Dudunakis, Senior 600 University Ste. 1625Partner | Seattle, WA 98101 Kenny Dudunakis, SeniorStreet, Partner 206-521-7216 | kdudunakis@hpapts.com 600 University Street, Ste. 1625 | Seattle, WA 98101
600 University Street, Ste. 1625 | Seattle, WA 98101 206-521-7216 | kdudunakis@hpapts.com Jim Jensen, CCIM, Senior Vice President 206-521-7216 | kdudunakis@hpapts.com 4041 Ruston Way, Ste. 103 | Tacoma, WA 98402 253-509-7157 | jjensen@hpapts.com
Kenny Dudunakis, Senior Partner
On-Site Northwest • August 2013
Tacoma – 41 units
600 University Street, Ste. 1625 | Seattle, WA 98101 206-521-7216 | kdudunakis@hpapts.com
Price: $2,275,000
Kenny Dudunakis & Jim Jensen
Chehalis – 60 units
SOLD Sold: $8,200,000
Emerson
PENDING
FOR SALE Bella Vista
Sold: $21,500,000
Sold: $2,012,000
SOLD Sold: $3,480,000
Bayview West
Bremerton – 24 units
Sold: $1,300,000
Jim Jensen
We would like WeWe would like would like to thank our clients to thank our to thank ourclients clients for representation representation foronfor representation these multi-family these multi-family We would like on on these multi-family transactions. transactions. to thank our clients transactions. for representation on these multi-family transactions.
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On-Site Northwest • August 2013