The Landlord Times On-Site July 2013 by Professional Publishing, Inc

Professional Publishing, Inc

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Vol. 22 Issue 7

July 2013

Published 22 Years

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PUGET SOUND APARTMENT OWNERS, PROPERTY MANAGERS & MAINTENANCE PERSONNEL

Published in association with: Washington Apartment Association, IREM & Washington Multifamily Housing Association

Metro Seattle Rents Surge 3%

Apartment Insights survey shows rents increasing 3% in the second quarter. Over the past year they have risen 5.8%, reports Tom Cain of Apartment Insights. The data are from his Seattle firm’s 2nd quarter statistics and trends on 50+ unit properties in the King/Snohomish market. VACANCY: 4.41% The vacancy rate for conventional, stabilized 50u+ properties in the King/Snohomish market is 4.41%, down from 4.58% last quarter, and 4.83% a year ago. Of the two counties, King showed the biggest improvement with its rate dropping from 4.53% to 4.31%. Snohomish remained virtually the same at 4.79%. The overall vacancy rate which includes properties in lease-up and out-of-service decreased from 5.99% last quarter to 5.77%. Continued on page 3

National Rent Growth Slows for Eighth Consecutive Quarter Axiometrics Inc., the leading provider of apartment data and market research, reports that at the national level annual effective rent growth slowed to 3.2% in the second quarter of 2013. For comparison, annual effective rent growth in the second quarter of 2012 measured 4.0%. Further, Axiometrics’ data indicates that the effective rent growth rate has slowed for eight consecutive quarters as many Metropolitan Statistical Areas (MSAs) are decelerating from very strong growth the previous three years. Peak annual rent growth at the national level during this current cycle was 5.3% in July 2011. Despite the slowdown nationally, many individual markets are still generating very strong rent growth

Current Resident or

As a rental housing manager you probably get “stuck” occasionally with old PC’s, computer monitors or TVs from former tenants. You may have paid to recycle them in the past or maybe you have dumped them in the trash (hopefully only if it is legal to do so in your area). There is a better option. Recycle them – for free. You can save money and do the right thing by recycling TVs, computers and monitors in Washington and Oregon through state regulated “E-Cycling” programs. The E-Cycle Washington program and the Oregon E-Cycles program provide free recycling for electronics including any abandoned TVs, computers and monitors that rental housing managers may have to deal with. Here are links to each program’s website including how to find free drop-off locations in your area: Continued on page 22 Page 6

Chapter 27 Institute of Real Estate Management “THROUGH THE PERILOUS FIGHT” Page 14

STAYING CONNECTED IN THIS INDUSTRY Page 17

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On-Site Northwest • July 2013

ON-SITE Metro ...continued from front page The submarket with the lowest vacancy for the second straight quarter is Tukwila at 2.54%. Other areas under 3% vacant are the Seattle submarkets north of the ship canal, Capitol Hill and Seattle Central, South. The vacancy rate in the Eastside South submarket surged 181 basis points to 6.46%. This is the largest increase and the second highest vacancy rate for any submarket this quarter. This dramatic rise appears to have been caused at least in part by a hefty 6.4% rental increase. The Eastside North submarket has the highest vacancy rate at 7.45%. These are the only submarkets in the 6.0%+ range. RENTAL INCENTIVES: $14 (1.09%) Rental incentives fell $7 to $14 per unit, the same amount for each county. In the two-county area 23.3% of the properties are offering incentives, down from 30.4% in the first quarter. ABSORPTION: +1,710 There were a whopping +1,710 units absorbed this quarter, up from +1,007 units in the first quarter. The average for the past year is +1,050 units per quarter.

RENTS: $1,190 per Unit $1.41 per Square Foot This was an impressive quarter on the rental front. Rents rose from $1,155 to $1,190 per unit, a 3% gain. Over the past year rents have risen 5.8%. After a lackluster first quarter, the Capitol Hill submarket saw rents soar 8.2% to $1,395 per unit. Two buildings went from lease-up to stabilized status on Capitol Hill this quarter, which contributed to a small part of this increase. When these two properties are excluded, the increase is 7.2%. Rents in downtown Bellevue broke the $2.00 per square foot barrier for the first time. They increased 3% to $1,797 per unit and $2.02 per foot. Downtown Seattle's rents climbed 3.1% to $1,707 per unit and $2.30 per foot. NEW CONSTRUCTION There are currently 13,841 units under construction, up from 12,006 units last quarter and 9,922 units a year ago. Of the units under construction, 67% are in the city of Seattle, 18% are in Snohomish County, and 13% are on the Eastside. The remaining units are in South King County. There are 5,093 units currently under construction that are scheduled for completion in 2013. Adding

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those units that have opened this year, the projected total is 7,126 units for 2013. This will be the highest annual total in more than 20 years. The 195-unit Youngstown Flats in West Seattle opened this quarter. It is featured in the photo. Legacy Partners is the developer and manager. For 2014 our projection based on the 7,415 units under construction and the 1,162 units planned for completion is 8,577 units. At this point, there are 2,327 units either under construction or planned for 2015. In addition there are 6,935 units that are in design review and later stages. Lastly, rezoning has been granted to developers on sites totaling 14,913 units. The grand total for all the units under construction and planned for 2013 and beyond is 37,845 units. This is over 3,000 units more than last quarter, and 6,000 units more than just a half a year ago. OBSERVATIONS The rental market's strong performance is very encouraging. Unemployment dropped to 4.3% in King and 4.7% in Snohomish in May. Most impressive is the 3% surge in rents this quarter. The vacancy rate has fallen for the third straight quarter to 4.41%, and rental incentives dropped to $14 per month.

All of the financial indicators are moving in the right direction including one that sometimes gets overlooked. The gross or overall vacancy rate (as opposed to the market rate) that includes properties in lease-up declined from 5.99% to 5.77%. This overall vacancy rate will most directly reflect the impact of the scheduled 12,500 units that are to be completed by the end of 2014. We will be watching this metric closely in the next few years. It is reassuring that the rental market is in such great shape at this juncture to brace for all of the new units that will be entering the market. Tom Cain of Apartment Insights Washington is a member of the nonprofit Central Puget Sound Real Estate Research Committee in charge of providing apartment rent and vacancy data. Tom has been 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 206632-2220.

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DZ & ON-SITE

What Were You Thinking Moments! By Dana Brown and Zach Howell

DANA BROWN AND ZACH HOWELL

How much do we really know about electrical issues that occur in our apartment homes? This topic defiantly is not a subject you want for someone to say “What Were You Thinking Moments”! Understand the correct procedures and laws that pertain to the work required on your property before what could have been a simple phone call to a nightmare. WHAT?

Suzy Manager – Dana, I recently had a resident call to request a work order. Their outlets in the bathroom were not working and a burnt wire smell was present. The resident sounded concerned, so I told them we would get our maintenance person there shortly. D – Suzy Manager, the resident should be concerned and so should you. I really hope this was NOT a

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“ W h a t We r e Yo u T h i n k i n g Moments”. How did you proceed? Suzy Manager – Well, not as I should have, apparently. This is a lesson for all of your readers. The office was busy and my maintenance manager was on vacation, so I called in our assistant maintenance person. I gave him the work order and sent him right up to the apartment. It wasn’t long before the electrical in half the unit went out. D - Please tell me that you called an electrician to come and asses the matter and repair the problem? Suzy Manager – Nope, the maintenance assistant thought that the breaker in the main panel might be the problem and proceeded to remove the cover and swap out the breaker switch. What he didn’t know is that there is a main shut off for that panel on the outside of the building,so he had to work on the issue while the wires were still on or “Hot”. As he was swapping the breaker he accidentally touched his screw driver on two pieces of adjacent metal and the “Hot” wire causing a major flash, shocking him with

240V of current and knocking him to the ground. Fortunately, he was OK and he came to the office and called an electrician to give a diagnosis and make the repair. Neither he nor I knew what the electrical code was and that the work must be performed by a licensed electrician. The cost of this mistake was great. Not only did I have to pay for the electrician to come out anyway and make the proper repair, I put my maintenance staff at risk,. My lesson learned is to train your whole team on the current law and codes for electrical work as well as common diagnosis and repairs, and when and where he or she should make a call to the electrician before putting themselves in harms way. D – Sorry that this lesson was so costly. This is a moment to learn from to ensure that your whole company understands the appropriate procedures for electrical. Z - It is unfortunate that someone had to be put at risk before realizing that they were in over their head. It’s a sad fact that most techs in this industry do not receive proper trainContinued on page 11

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ON-SITE National ...continued from front page rates, with 20 of the top 88 MSAs reporting annual effective rent growth of greater than 4.0%. While the national growth rate has been slowly decelerating over the past eight quarters, it should also be noted that the current growth rate is still above the long-term average of 2.1%. Occupancy at the national level remained strong, measuring 94.7% in the second quarter of 2013. A year ago the occupancy rate stood at 94.3%. The improvement in occupancy has occurred despite an increasing wave of new apartment supply. During the second quarter, 40,739 new apartment units were delivered, up from 18,861 units delivered in the second quarter of 2012. Apartment deliveries have totaled 124,500 over the trailing 12 months. With the pace of new deliveries increasing, the total for new deliveries in 2013 should reach 185,348 units by the end of the year.

Fewer Concessions Mean Higher Rents As the market has tightened over the past few years, it has become increasingly difficult for renters to find rental concessions, at least in most MSAs. At the national level, concessions lowered asking rents 1.4% in the second quarter, which is the equivalent of five days free rent on a 12-month lease. For comparison, Axiometrics reported that concessions lowered asking rents 2.4% a year ago and 3.7% two years ago. The peak for concession values was in December 2009 when asking rents were lowered 7.5% by the use of concessions. Asset Class Performance Class C properties continued to outperform Class A and B properties for effective rent growth in the second quarter of 2013, a trend that began in October 2012. Over the prior year, effective rents increased 4.1% for Class C properties, compared to 2.9% and 3.4% for Class A and B, respectively. Class C proper-

National Performance by Asset Class Annual Effective Rent Growth 2Q12 2Q13 4.6% 2.9% 3.8% 3.4% 3.8% 4.1%

Class A B C

Occupancy Rate 2Q12 95.5% 94.9% 92.4%

2Q13 95.2% 95.1% 93.3%

ties have an average occupancy rate of 93.3%, which is the lowest of the three groups, but they do show the best year-over-year occupancy growth. Class A properties have the highest occupancy rate at 95.2%, however this rate is 23 basis points lower than a year ago.

had several other high-ranking MSAs for rent growth: 14. Austin-Round Rock, TX (4.5%), 16. Jacksonville, FL (4.3%), 17. Miami-Miami BeachKendall, FL (4.2%), 22. Dallas-PlanoIrving, TX (3.9%), and 24. TampaSaint Petersburg-Clearwater, FL (3.8%).

Top Performing Markets For the second quarter, 11 MSAs had annual effective rent growth of 6.0% or greater, and all 11 of those markets were located in just four states: California, Colorado, Florida, and Texas. The top MSAs for effective rent growth in the second quarter of 2013 are outlined below: In addition to having all 11 of the top rent growth markets, California, Colorado, Florida, and Texas also

Top Markets for New Construction Axiometrics also reports that the strong apartment performance the past three years has spurred a rebound in construction activity in many MSAs. Specifically, new units will be delivered in 182 MSAs around the country in 2013, and national deliveries will increase from 87,077 units in 2012 to 185,348 units in 2013. Continued on page 7

Rank 1 2 3 4 5 6 7 8 9 10 11

MSA Boulder, CO Oakland-Fremont-Hayward, CA Cape Coral-Fort Myers, FL Corpus Christi, TX North Port-Bradenton-Sarasota, FL Denver-Aurora, CO Palm Bay-Melbourne-Titusville, FL Naples-Marco Island, FL San Jose-Sunnyvale-Santa Clara, CA San Francisco-San Mateo-Redwood City, CA Houston-Baytown-Sugar Land, TX National

Annual Effective Rent Growth 9.8% 9.6% 8.9% 8.4% 6.9% 6.8% 6.8% 6.6% 6.5% 6.4% 6.0% 3.2%

Occupancy Rate 96.1% 96.4% 95.0% 95.9% 94.9% 95.5% 94.9% 98.0% 96.3% 95.8% 94.3% 94.7%

*Rank based on annual effective rent growth out of 88 MSAs

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“Through the Perilous Fight” Risk Management A couple weeks ago I had the opportunity to attend the USA vs. Panama game at Century Link field. It was a day of patriotic celebration and happiness. Fireworks, fútbol chants and team spirit filled the streets of Pioneer Square. This was a match to remember. The scarves that we received as part of the pricey ticket package had the slogan “Through the Perilous Fight.” After hanging it on my wall and kicking my feet up on my bed after work the next day, I began interpreting what that statement really meant and why they chose to include it on our souvenir scarves. This was a highly anticipated game, which began with USA’s ranking of 34 and Panama’s of 43. What this slogan ultimately meant

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was that through the most dangerous and risky battles, you must fight strong to protect what is yours and reach your goal. You’re fully aware of the consequences when you make the commitment to the team. Once you put that jersey on your back you’re making a promise to your teammates that you will unite with them and strive for the win, no matter what hardships arise. For these players, the end result, seeing the ball in the net and the crowd go wild at the 90th minute, is worth all of the struggle and effort put into training, practicing, winning and sometimes losing. It’s all part of a love for the game. To relieve your confusion of how this correlates to property management, let me put this into perspective.

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An apartment owner purchases a building. They acknowledge the benefit of a property management company coming in and orchestrating tenants moving to and from, keeping up the property’s physical appearance and other maintenance tasks. The owner hires the firm. The firm receives notice and advertises a vacancy. A prospect applies and is moved in. All of the sudden, the property which began as a lone building with no commitments, obligations or staff, is operated by a chain of commands comprised of multiple individuals. With the snap of a finger, different personalities, habits, morals and ways of accomplishing tasks are affecting this one building, which ultimately instigates a risk factor. Facilitating workflow within your business is the ultimate goal, but this is not accomplished without acknowledging circumstances of risk. The best step to take with your property is to hire a property management company who is aware of the implications of risk and has a process designed to deal with it. An effective risk management plan is a process of identification, assessment and prioritization. The goal is to reduce negative effects within your business and the probability of them appearing. A successful property management company has confidence,

generates ideas and promotes good practice. Every owner wants to maximize their opportunities through business and reputation. A property management company will build trust if they determine potential risk and handle it in a way best suited to investment objectives. Utilizing a good screening company, hiring a capable maintenance team with integrity and having good insurance options are all factors in a successful risk management plan. Hiring a company to look over and maintain your properties who acknowledge the perilous will secure your investment in the long run. Every decision in life involves a risk. Dive in and commit. Buckle up, bundle up with whatever motivational scarves or accessories will do it for you, and get the task done. Acknowledge the risk and gauge whether it’s worth the goal you are aiming to achieve. Through the perilous, fight, and your efforts will prove your unconditional love for the game. 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 Northwest • July 2013

ON-SITE National ...continued from page 5 Texas had three of the top five MSAs in the nation for units delivered during the second quarter. Axiometrics notes that even with the escalated delivery numbers from last year, the Texas MSAs still show some of the best effective rent growth rates in the country as demand is maintaining pace with supply.

Axiometrics is the only multifamily research provider to survey every property in its database at the floor plan level every month. Every property. Every month. Only Axiometrics. Learn more at www.axiometrics.com or by calling 214-953-2242.

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MSAs Delivering the Most New Units in Second Quarter 2013 Number of Units Delivered Within Quarter Full Year Rank* 2Q12 2Q13 2012 2013 1 Dallas-Plano-Irving, TX 1,303 3,203 5,882 11,104 2 Houston-Baytown-Sugar Land, TX 1,098 2,593 4,522 8,932 3 Washington-Arlington-Alexandria, DC-VA-MD-WV 1,149 2,479 6,173 11,318 VALLEY, ARIZONA 4 Chicago-Naperville-Joliet, IL 393 METRO, 2,079 1,373 4,448 5 Austin-Round Rock, TX 428 1,692 2,763 7,489 6 Los Angeles-Long Beach-Glendale, CA 81 1,563 781 5,038 7 Seattle-Bellevue-Everett, WA 618 1,464 2,821 7,458 8 Atlanta-Sandy Springs-Marietta, GA 185 1,448 1,537 5,157 9 Raleigh-Cary, NC 171 1,170 698 5,101 10 San Antonio, TX 535 1,138 2,205 4,021 National 18,861 40,739 87,077 185,348

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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

I keep hearing about PEX tubing as an alternative to copper tubing when it comes to re-piping my rental units. What is the difference between PEX and copper tubing and why use one over the other? What are the pros and cons? Mark

Dear Mark: First let’s define what PEX tubing is. PEX is a cross-linked polyethylene pipe. (It looks and feels like plastic pipe.) The PEX pipe is resistant to extreme temperatures, stress, pressure and chemicals attacks such as acids & alkalies. This makes PEX pipe suitable for both hot

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and cold water systems and can be used in below freezing condition and is suitable up to 200 degrees Fahrenheit. The pipe is extremely flexible and easy to install. Pros and cons of using PEX: Pros: 1: Versatile and user friendly, can be bent around corners & snaked through walls. 2: Minimum of connections needed to complete a pipe run. (Less chance of a leak) 3: Cold weather burst resistant. 4: PEX pipe is less expensive than copper pipe Cons: 1: Cannot be used outside or in sunlight. 2: Not recycle friendly 3: Installation tools can be expensive.

Pros and cons of using copper pipe: Pro: 1: Long lasting, easy to use and install 2: Resists corrosion 3: Eenvironmentally friendly, i.e.: recyclable. 4: Safe for exterior use. Cons: 1: Expensive to buy. 2: Can burst in extreme cold weather. 3: More connections and elbows needed to complete a pipe run. (More chance of a leak.) Before making any decisions about using PEX piping, check with your local building department to ensure it is allowed in your area. Dear Maintenance Men: I’m about to start a rehab project in one of my units. Can you give me some tips on drywall repairs? The Continued on page 9

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On-Site Northwest • July 2013

ON-SITE Dear ...continued from page 8 previous residents were very hard on the walls and left me with a number of holes. I want to learn how to do the repairs. Ruben Dear Ruben: Very small holes can sometimes be repaired with a bit of drywall tape and joint compound and feather sanded smooth. However, it sounds like your damage may be a bit more extensive. The first thing to do on a larger repair is to cut the damaged drywall back to a stud. In other words, cut a square hole large enough to see half of the of the wall studs on right and left of the hole. Fit a new piece of drywall inside the hole and attached the drywall patch to the exposed studs. The patch should be the same thickness as the existing wallboard. After completing the rough drywall repairs, doing the finish carefully will be most important. Use wallboard joint compound on all seams, nails, screw holes and corners. Joint compound or drywall mud can be found at any hardware store and comes in quart, gallon and five-gallon buckets ready mixed. Using a 4-inch taping knife, spread a thin coat of joint compound on the repair joints filling the cracks and leaving a layer of compound two inches on either side of the joints. Before the compound dries, apply the drywall tape over each repair joint and apply a second layer of mud over the tape with the fourinch taping knife. Allow to dry. Using drywall sandpaper, even out any high spots and feather the edges. With a 10-inch drywall knife two coats of joint compound over the tape, letting the compound dry between coats. Sand any high spots between coats. After the final coat of mud, use sandpaper or a wet sanding sponge sand the joint until it is smooth. Texture to match the surrounding walls and the patch will disappear. Dear Maintenance Men: I am getting ready to tackle a sliding shower door replacement. The bottom track looks welded to the tub. How do I remove it without damaging the tub? Any tips on getting this job done will be appreciated! George Dear George: Remove the sliding doors by lifting them off of the head rail track and swinging them out. Remove the screws holding the head rail to the side rail. Using a rubber mallet tap the head rail loose from the side rails. The side rails are usually bolted and caulked in place. Remove the screws (if they are corroded: use Liquid Wrench or just drill them out) and pry the rails away from the wall. Be gentle so as not to loosen any tiles. Next, remove any excess caulk from the bottom rail. Typically the bottom track is glued down to the tub with “Adhesive Caulk”. It may be possible to gently tap the side of the track with a rubber mallet and break the hold of the dried out caulk. Look for possible screws holding the track to the tub. If the track is still stuck gentle pry with a flat pry bar, use a 3/8 plywood backer approximately 4”x 6” under the pry bar so that you do not damage the tile or tub. Use a putty knife to remove any left over caulk On-Site Northwest • July 2013

or glue. Clean the area with acetone or other suitable cleaner. Installation of the new shower doors is the reverse of removal. The bottom track may need to be cut to size. Use polyvinyl adhesive caulk to attach the bottom track to the tub. Don’t use screws; it will cause the tub to rust prematurely. Use plastic anchors for the side rails along with polyvinyl adhesive caulk. Reattach the head rail and doors. Avoid use of the shower for at least 24 to 72 hours. Trivia In 1942, Revolite, then a division of Johnson & Johnson, developed an adhesive tape made from a rubberbased adhesive applied to a durable duck cloth backing. This tape resisted water and was used as sealing tape on ammunition cases during World War II. Today we call it Duct tape.

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 Please call: Buffalo Maintenance, Inc for maintenance work or consultation. JLE Property Management, Inc for 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. Websites: www.BuffaloMainte nance.com & www.ContactJLE.com. www.Facebook.com/BuffaloMainte nance

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veryone knows you only get one chance to make a good first impression. What you communicate from the curb, carries over into the office environment and beyond. Paying attention to professional office attire is important year round, but especially during the warmer summer months. Now that the weather is heating up and everyone is trying to stay cool and comfortable, some employees may be presenting more than just their apartments! This can be a distraction to co-workers and residents, and disrupt the sales process. Here is a topic that continues to be a concern based on the question below:

Q: The staffs at some of our communities tend to “dress down,” especially at our smaller buildings where they have responsibilities in and outside the office. I have noticed that this sometimes carries over into their personal grooming as they transition from working outside and then come back into the office to assist clients. However, as the weather has warmed up and many of my managers have even more responsibilities outside the office, I have noticed an increase in inappropriate/ unprofessional attire and a decrease in attention to personal grooming. I am

concerned about the impression my managers are making on our residents, as well as prospective renters. Other than instituting a “uniform and personal grooming policy” or mandating a strict dress code, what can we do?

A: These are some very valid concerns, and this issue needs to be addressed. However, it’s an extremely sensitive subject because how people dress and present themselves is very personal. Also, there is the financial aspect, as not everyone can afford to make a quality fashion statement! When you throw “gender” into the mix, this issue becomes even more complicated, as it’s tough for a male supervisor to approach a female employee on this issue and vice versa. Typically when a confrontation does occur, someone is embarrassed, offended or both. Then you end up right back where you started and nothing is resolved. For those companies who have been able to budget and implement a “uniform” standard of dress: Congratulations! You do not have any of the above headaches any more. Probably the only issue you have to deal with now on this subject is getting your employees to actually WEAR their uniforms!

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For everyone else, the answer is “education.” You must have a “standard of dress,” and expectations regarding personal grooming for all employees, no matter what type/size of community they work at. When a new employee is hired, they can be given information on what the dress code is. If this information is provided up front, employees will know how they are expected to present themselves. For existing employees who are not in compliance with the expectations because there was nothing in writing at the time they were hired, you can institute a “new company policy” and create a dress code. Of course you must remember one very important thing: Everything in life has a “trickle down” effect. Your efforts to get your employees to comply with a dress code standard will only work to the degree in which you comply with the dress code yourself. A leasing consultant does not have much motivation to dress up a notch if the assistant or resident manager is “dressing down.” On the other hand, an on site manager will not be inspired to comply with a dress code if the property supervisor or owner visits wearing casual attire. When employees working together dress inconsistently, this sends a mixed

message to the residents and prospects that visit their office. Until people really get to know you, all they have to go on is “appearances.” The employees who are dressed in business attire will “appear” to be professional, organized and prepared to serve their clients. Those dressed otherwise will not. As in every area of life, perception is reality. While you can’t judge a book by its cover, the next person who walks through your door could make a rental decision based upon what’s covering (or not covering) you! Having a standard of dress for all employees, no matter what community they work at, will consistently communicate a sense of pride and professionalism. If you have a question or concern that you would like to see addressed next month, please ASK THE SECRET SHOPPER by making contact via e-mail or fax. Your questions, comments and suggestions are ALWAYS welcome! 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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ON-SITE What ...continued from page 4 ing in electrical repairs and diagnosis, let alone basic electrical theory, how to keep themselves safe and follow a problem from symptom to source. The multifamily industry is regulated in different ways in different states and that can have a major impact on what repairs can be made and who can make them. For example in the state of Oregon the multifamily industry and the employees performing electrical repairs on the most common components fall under an exemption clause in the law which states they can work on certain components within the apartment home, but not others. While in the state of Washington no one without a Limited O7B license should be performing electrical repairs. You should make sure you and your maintenance team are informed and up to date on your local laws. The effect this has on our industry is obviously major. Some jurisdictions require what amounts to a journeyman electrician status to perform work, while another doesn’t require that licensure at all -- it creates uncertainty and conflict within the industry. When I train apartment maintenance technicians I follow three simple rules, and your staff can work on electrical components if they meet all these rules.

1. Pre-existing fixture: This means i t ’s al rea dy t h e re a nd w as installed properly at the time of development or by a licensed electrician. 2. Replace like with like: Only replace the component with the exact fixture type. An example would be a light track in the bathroom can be replaced with another light track, even if design or finish wise they are not identical , as long as its meets the same code. On the other hand, to upgrade a regular receptacle outlet to a GFCI would not count as like with like ,because in essence you are upgrading the function and purpose of the that component This should be done by a licensed electrician. 3. Up to the panel: Only components that fall outside of the electrical panel should be worked on by onsite staff. This means if you have to remove the breaker panel cover you are crossing the line and should have an electrician perform that work as well.

like, up to the panel, and some basic training will help keep your staff safe and ensure that they understand the parameters of what they should and shouldn’t be working on. D & Z would like to give away free class registrations to our readers from Multifamily NW. It is easy to qualify, just send in a funny story of what were you thinking moments that we can share in our article and you will go into a drawing to win a free class valued at $125 each. The contest will run through the end of June and the winner will be announced in the August issue of

The Landlord Times. Send entries to dana@multifamilynw.org. Dana Brown and Zach Howell have been working and training Managers and Maintenance staff in the property management industry for 20 + years. They are excited to give back and share the crazy stories that can only happen in our industry. We would love it if you would share your stories and “WHAT WERE YOU THINKING” moments with us as well as questions that you need answers to. Dana can be reached at: dana@multifamilynw.org. Zach can be reached at: zach@aminstitute.net

These are obviously just guidelines and all state and local jurisdictions will trump this view (as outlined in the Washington example above. But, for other areas that are not as tightly regulated this 1,2,3 guideline of pre-existing, like with

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ON-SITE

Sweat the Small Stuff laziness, fear, or simply because you don’t have the information needed to feel confident in order to do so? I am personally guilty of all charges. For example, like when rent shows up a day or two late every month because your tenants interpret the due date as postmarked by the 4th, rather than in your hand by the 4th. Why not send a letter thanking them for their rent, letting them know that because it was received after the grace period there is a fee associated, and that you expect that the fee be paid with the following months rent? In doing so, not only are you asking for what you’re entitled to, but you’re also not waiving your rights to collect unpaid late fees in the future by setting a precedence in attempting to

You’ve entered into the rental agreement, the residents signed all fifty-seven addendums, and it appears that everyone understands the expectations. Yet, as time goes on, your tenants aren’t quite meeting their obligations. Month after month you turn a blind eye to what’s eating away at you and their behaviors, or lack thereof, have begun to cause you an eye twitch, tightening of the jaw, and possibly a pain in your side. I’m not talking about any of the obvious major breaches, but mainly the “micro” breaches that we question if they’re worth making a stink about or not. I believe you owe it to yourself and your business to question: “Why am I not addressing what’s bothering me with my tenants?” Is the answer

collect the fee. In the past you may have done nothing for fear of causing an undue hardship upon your tenants. My guess is that it will only take one or two late fee letters before your tenants realize that there is a great incentive on making sure that the rent is paid as the contract dictates. Or what about the classic scenario of tenants failing to take care of their yard? Your relatives are in town so you decide to drive them by your rentals to show off how well you’re doing. To your surprise, and embarrassment, your property happens to be the one property in the neighborhood with 2 ½ feet tall grass, dandelions filling the flower beds, blackberries taking over the ivy, and shrubs so unruly that you can barely

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see the path to the front door? Instead of issuing a breach of contract notice to the tenants demanding that the landscape be maintained as agreed, you either hire a landscaper first thing Monday morning to take care of it and you pay the bill, or you do nothing and cross your fingers that the next time you drive by that they would have at least mowed the grass. Do you justify their lack of care, because you know they have busy schedules? Or, are you afraid that confronting them about their ways could possibly offend them or cause a rift in the relationship? Instead, send either a Warning Notice or With Cause Notice as soon as you’re aware that there is an issue. Time is of the essence on this one because the neighbors are likely disgruntled. The work that you had done on the yard prior to them moving in is all going to waste and will most likely have to be done again once they vacate which could be costly. My point is that by addressing the unsettling habits of your tenants promptly, you can minimize, if not eliminate, any potential feelings of disappointment, frustration, and resentment towards your tenants as you would if you were to let things slide. I believe it is natural for us to want to avoid conflict and confrontation in life. However, when it comes to managing your properties, this continual avoidance could come at the expense of your business and property. Most of us have had some form of training on being a landlord, whether we’ve taken classes on our own time or have been in property management in a professional setting. Unfortunately, there is no training of the sorts for tenants. I’ve always had the opinion that if both landlords and tenants know what the rules are, exactly what is expected of them, and what improved performance will look like then everyone involved will mutually benefit from the business relationship. Katie Poole – Hussa is a Licensed Property Manager, Continuing Education Provider and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at Katie@SmartPM.co.

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ON-SITE

255 Metros Listed as Improving Housing Markets in July A total of 255 metropolitan areas across 49 states and the District of Columbia qualified to be listed on the National Association of Home Builders/First American Improving Markets Index (IMI) for July, released recently. This is down slightly from the 263 metros that made the list in June, but is more than triple the number of metros that were on it in July 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 consecutive months. Six new markets were added to the list and 14 were dropped from it in July. Newcomers include the geographically diverse metros of Cumberland, Md.; Saginaw, Mich.; Farmington and Las Cruces, N.M.; Kingston, N.Y.; and Olympia, Wash. “This is the sixth straight month in which at least 70 percent of all U.S. metros have qualified for the Improving Markets Index,” observed NAHB Chairman Rick Judson. “The relative stability of the IMI is representative of the broad recovery underway, which is much more extensive than what we were looking at one year ago.”

“Despite slight ups and downs in recent IMI levels, an overwhelming majority of U.S. metros -- including those located in almost every state -- remain solidly on the path to recovery even as the pace of their improvement is slowed by ongoing challenges related to the availability of credit, labor, lots and certain building materials,” added NAHB Chief Economist David Crowe. “Based on recent trends in home prices, housing permits and employment, the outlook for a continued housing expansion remains very positive for the remainder of 2013.” “The fact that more than twothirds of all U.S. housing markets continue to be represented on the improving list should be a boon to consumer confidence at a time when many are looking to take advantage of recently’s very favorable mortgage rates,” observed Kurt Pfotenhauer, vice chairman of First American Title Insurance Company. The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of independent monthly data to get a mark on the top Met-

ropolitan Statistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and singlefamily 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 255 metros currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in July, is available at www. nahb.org/imi.

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WASHINGTON MULTI-FAMILY HOUSING ASSOCIATION Executive Director • Jim Wiard President • Jay Olson Vice President • Joe Manca Past President • Cassandra Haavisto Secretary • Gail Duke Treasurer • Brett Stevens Vice President of Suppliers Council • Barry Savage

Staying Connected in This Industry

roperty Management is becoming a fast–paced, dynamic and evolving industry. In order to challenge ourselves and enhance our self worth, we all want to feel we are staying up to speed on the latest techniques that allow us to do our jobs effectively and offer high value to our companies. Pursuing educational opportunities is essential to perform, grow and advance in what we do. Companies that support and encourage educational programs have happy, motivated and empowered employees who perform at a higher level. The Washington Multi-Family Housing Association promotes career development by offering outstanding workshops, seminars and educational courses on a variety of subjects designed to teach skills necessary to be successful. Our skilled subject matter experts are peers in the industry who have proven technical expertise in various subjects critical to our members’ performance in every day duties, improving the bottom line for owners. Courses we will offer in August and September include Budget Preparation and Financial Management, Fair Housing & Beyond,

Landlord Tenant Law and Legal Seminar, Customer Service Skills, and Supplier Success, a course for our industry service partners. We will soon offer an affordable housing certification as well. We are happy to offer customized training for companies who wish to provide training programs for their entire teams. WMFHA partners with the National Apartment Association to offer designation certification courses for apartment management professionals. Having a national designation illustrates an employee’s commitment to improving their skills and knowledge. To take your career to a new level, obtaining a Certified Apartment Manager (CAM®), Certificate for Apartment Maintenance Professionals (CAMT®) or National Apartment Leasing Professional (NALP®) designation will make an employee a more desirable candidate for a position and often results in a higher salary and upward growth. Several of our members were lucky enough to be able to attend the annual National Apartment Association (NAA) Education Conference and Exposition in San Diego last month. What an outstanding event! San Diego

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The trade show exhibition provided an opportunity to visit with over 350 industry supplier companies and learn the latest in products, services and technologies. Staying connected to innovations and new products designed to enhance NOI, create more efficient business operations, lower risk or serve residents better, is crucial to our ever more competitive environment. The 2014 NAA Education Conference and Exposition will be held in the Mile High City of Denver, Colorado from June 18-21. The best pricing is obtained by signing up early, so watch for more information in late 2013 to register and save. For more information on educational opportunities for yourself or your employees available through the Washington Multi-Family Housing Association or the National Apartment Association, please view our website at www.wmfha.org or call us at 425656-9077. Improving one’s skills should be the goal of every industry professional who wants to make property management a career.

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and their local housing association were perfect hosts for such a huge conference. Over 6,000 industry professionals attended. This inspirational national conference featured a trade show exhibition, keynote speakers such as Virgin founder Sir Richard Branson, graffiti artist and entrepreneur Erik Wahl and Bert Jacobs of Life Is Good, and classes suited for every attendee. Thought leader seminars and break-out educational sessions covered topics such as team coaching strategies, investing in SEO, leadership, legal issues, apartment marketing, resident retention, energy conservation, customer satisfaction and risk management. My favorite classes dealt with Millennials - the Next Generation of Renters, the Mobile Explosion, and Shifting Social Media Trends. WMFHA member Angel Munoz from CTL Management won the Maintenance Mania event at our 2013 Maintenance Summit, with a winning time good enough to earn him a trip to the national Maintenance Mania competition. Angel made us proud, winning one of the individual events and finishing in the top ten overall for the second year in a row.

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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

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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.

On-Site Northwest • July 2013

WASHINGTON APARTMENT ASSOCIATION President • Rob Trickler

Past President • Judith Violette

1st Vice President • Darlene Pennock

Treasurer • Gina deWeber

Secretary • Donna Lee Smitt

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May Construction Climbs 5 Percent At a seasonally adjusted annual rate of $495.7 billion, new construction starts in May advanced 5% from the previous month, according to McGraw Hill Construction, a division of McGraw Hill Financial. Much of the upward lift came from nonresidential building, which registered moderate growth for the second month in a row after its sluggish performance at the outset of 2013. Smaller gains in May were reported for housing and nonbuilding construction (public works and electric utilities). During the first five months of 2013, total construction starts on an unadjusted basis were reported at $187.6 billion, down 3% from the same period a year ago. The 2013 year-to-date volume for total construction reflected a steep decline in the dollar amount for new electric utility projects relative to a robust first half of 2012. If electric utilities are excluded, total construction starts would be up 10% year-to-date, helped in particular by the strengthened pace for housing. May's data raised the Dodge Index to 105 (2000=100), up from the 100 that was reported for April, and slightly above the average Index reading for all of 2012 at 101. "The construction industry has shown

modest improvement over the past year, helped by some project types while restrained by others," stated Robert A. Murray, vice president of economic affairs for McGraw Hill Construction. "The housing sector played a leading role last year in lifting overall construction activity, and while this year's month-to-month gains have been smaller, housing continues to lead the hesitant construction expansion. Nonresidential building has yet to provide much of a contribution, as tenuous gains for commercial building have been offset by further weakness for institutional building. Still, the April and May pickup for nonresidential building could be a sign of more growth to come. As for nonbuilding construction, the negative impact from the sequester has so far turned out to be less severe on the public works categories than anticipated. However, new electric utility starts are in the midst of sharp decline from last year's record amount, and the extent of that decline is limiting whatever gain may be possible this year for total construction." Nonresidential building in May grew 9% to $156.4 billion (annual rate), following its 6% rise in April. For the commercial categories, stores

and shopping centers are gathering momentum, with a 16% increase reported for May. Large retail projects that reached groundbreaking in May included a $60 million shopping center in Fresno CA and the $52 million second phase of the City Point retail and residential complex in Brooklyn NY. New hotel construction starts soared 94% in May, boosted by the $415 million SLS Las Vegas hotel complex on the site of the former Sahara Hotel and

Casino. Office construction in May edged up 3%, following a substantial 58% jump in April. Large projects in May that helped to keep office construction at its improved pace were the $250 million renovation of the International Monetary Fund Headquarters in Washington DC, the $200 million renovation to the United Nations General Assembly Building in New York NY, a $120 million office Continued on page 20

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Resident Appreciation - It Means Everything! © By Ernest F. Oriente, The Coach Want to know the secret for keeping your residents forever? And what if you could keep your properties full and plus have a waiting list, because your residents loved the way you appreciated them? In this article, you will learn how easy it is to develop a powerful resident appreciation program. Once in place, an appreciation program will forever change the way you operate and manage your apartment communities. Developing a monthly appreciation plan: At the beginning of each month, develop some fun ideas to “thrill” the residents at the properties you own

or manage. Start by planning a short brainstorming session with your key property supervisors, resident managers and their leasing staffs, so you can hear their unique insight about ways to make the program a giant success. Their input is critical as each property has its own special resident profile, so customize your appreciation plan accordingly. Once your appreciation plan is finalized, provide a written recap for your leasing team so everyone will know exactly what their role will be. Clear communication makes for perfect implementation.

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Tip From The Coach: Consider building your resident appreciation plan for six to twelve months in advance. This makes for better financial budgeting, a more thoroughly developed appreciation plan, and your leasing team will have the time to evaluate several competitive proposals for the cost of each month’s theme. Building appreciation themes: As you consider the theme for each month’s appreciation program, start by looking for specific holidays or seasonal times of the year. For example, summer time is perfect for fun poolside events and outside activities. Have your leasing team take plenty of photos and fill your next newsletter + website with pictures of your residents having a great time. Everyone loves to see pictures of themselves and for those who couldn’t attend, they will certainly be encouraged to participate at the next event. Another appreciation theme, depending on the profile of your residents, might be more educational. For example, have a local computer store give a live demonstration for your residents about ways to maxi-

mize their use of the Internet or social networking websites like Facebook, Twitter and LinkedIn. Your residents will be thrilled to hear more about the Internet and the computer store gets to meet lots of potential new customers… a win-win for all. Finally, speak with your vendors and neighborhood businesses as many would like to cosponsor your appreciation program. Your residents might just be perfect new customers for them. Tip From The Coach: Certainly your residents will love the appreciation you show them each month and so will your future residents. If appropriate, invite every future resident who comes to the properties you manage, to participate in your resident appreciation program. Take this small step and watch your closing ratio double, with the future residents who attend! Evaluating the success of resident appreciation: Start by asking your leasing team to make written notes of any nice comments shared by your residents or prospective new residents. These nice quotes are perfect to include Continued on page 19

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ON-SITE Resident ...continued from page 18 in your next property newsletter + website and makes for great reading, especially for those who could not attend or participate. Next, evaluate the number of residents who attend or participate each month, as this helps for planning future programs. Of course, monitor your resident retention percentages, as this is the critical measurement of how well your appreciation program is working. Tip From The Coach: Remember, your residents will feel important when they know they are a top priority. Implementing a resident retention program will not cost much. But the return on your investment will be significant based on less resident turnover, happier residents will send more referrals, and more fun for your leasing staff. Why? Because The Coach says so! Plus, good news travels fast and so will the sterling reputation you earn with your residents. 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 25 appreciation themes your residents will love.

Author’s note: Ernest F. Oriente, a business coach since 1995 [30,400 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 ], 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

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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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ON-SITE May ...continued from page 17 building in McLean VA, and a $113 expansion to a data center in Dallas TX. Warehouse construction was the one commercial project type to retreat in May, sliding 7%, despite the start of a $100 million distribution facility in Edgerton KS. The nonresidential building total was helped in May by a considerable gain for manufacturing plants, which jumped 70% with the start of a $378 million technology development center in Malta NY and a $110 million expansion to a healthcare products manufacturing plant in Athens GA. The institutional categories in May showed a mixed pattern. Educational facilities rebounded 10% after a weak April, helped by such projects as the $250 million expansion of the San Francisco Museum of Modern Art, a $91 million high school in Flower Mound TX, and a $67 million high school addition in Alexandria VA. May included groundbreaking for 16 high school projects each with a construction start cost of $10 million or more. The public buildings category in May climbed 95% from a very depressed April, supported by the start of a $125 million detention facility in Redwood City CA. However, healthcare facilities fell back 10% in May, despite the start of a $175 million hospital tower in Orlando FL. Other declines were reported for amusement-related projects, down 17%; churches, down 27%; and

transportation terminals, down 33%. The decline for transportation terminals came relative to a very strong April, and occurred despite the May start of several large airport terminal projects – a $229 million renovation of Terminal 5 at Los Angeles International Airport, a $90 million gate replacement project at Fort Lauderdale International Airport, and a $75 million renovation for Terminal E at Dallas-Ft. Worth International Airport. Residential building, at $206.8 billion (annual rate), advanced 3% in May. Single family housing, which had shown signs of leveling off in the prior two months, edged up 2% in May. The rate of activity for single family housing continues to be high by recent standards, with May up 26% from the average monthly pace during 2012. By geography, single family housing in May revealed gains in the Midwest, up 6%; the West, up 5%, and the South Atlantic, up 2%; but declines in the South Central, down 2%; and the Northeast, down 6%. Multifamily housing in May grew 7%, and its May volume was up 24% from the average monthly pace during 2012. Large projects that supported the increase for multifamily housing in May included a $225 million condominium tower in Sunny Isles Beach FL, the $144 million apartment portion of a $250 million mixed-use project in Rockville MD, a $90 million multifamily building

in Cambridge MA, and a $90 million multifamily building in San Francisco CA. During the first five months of 2013, the top five metropolitan areas in terms of the dollar amount of new multifamily starts were the following – New York NY, Miami FL, Washington DC, Boston MA, and Los Angeles CA. Nonbuilding construction in May increased 2% to $132.4 billion (annual rate). Supporting the nonbuilding gain was a 44% jump for electric utilities from a lackluster April, although the May amount for electric utilities was still down 24% from the average monthly pace during 2012. The start of a $2.3 billion solar power facility in California lifted electric utilities in May; the next largest electric utility projects were two $300 million gasfired power plants, located in Delaware and Oregon. The public works categories in May showed varied behavior. Highway and bridge construction bounced back 11% after a 26% drop in April, continuing the upand-down pattern that's been present so far in 2013. Relative to last year, the stronger months for highway and bridge construction in 2013 have outweighed the weaker months, resulting in a 6% year-to-date gain. A 32% jump was reported in April for water supply systems, helped by the start of a $537 million desalination plant in California, and river/harbor development climbed 81% from a weak

April. On the negative side, sewer construction in May dropped 14%, sliding for the third month in a row. A steep 63% plunge was reported in May for miscellaneous public works, falling back after an elevated April that included the start of three large rail-related projects. The 3% downturn for total construction starts on an unadjusted basis during the first five months of 2013 reflected a 29% pullback for nonbuilding construction. While the public works portion of nonbuilding construction was up 5% year-to-date, electric utilities were down 70%. The first five months of 2012 featured an exceptional amount of large electric utility projects to reach the construction start stage, led by two nuclear projects – $8.5 billion for Units 3 and 4 at the Vogtle nuclear power facility in Georgia and $8.5 billion for Units 2 and 3 at the V.C. Summer nuclear power facility in South Carolina. Additional large electric utility projects that reached the construction start stage in the first five months of 2012 included a $1.3 billion gas-fired power plant in Florida, a $1.1 billion gasfired power plant in Virginia, and a $1.1 billion solar energy complex in California. So far in 2013, the largest electric utility projects to reach the construction start stage are the $2.3 billion solar power facility in California and a $1.2 billion upgrade to Continued on page 21

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ON-SITE May ...continued from page 20 a coal-fired generating plant in Kentucky. Residential building in the first five months of 2013 advanced 32% compared to last year, reflecting similar gains for single family housing, up 32%; and multifamily housing, up 30%. Nonresidential building during this year's first five months retreated 8%, due to a 13% drop for the institutional categories as well as a 20% decline for manufacturing plants. Commercial building on a year-to-date basis registered a 2% gain from last year.

By geography, total construction starts during the first five months of 2013 featured gains in three regions – the West, up 10%; the Northeast, up 7%; and the South Central, up 6%. Year-to-date shortfalls were reported for two regions – the Midwest, down 7%; and the South Atlantic, down 22%. If electric utilities are excluded from the construction start statistics in the South Atlantic, that region would post a 23% year-to-date gain.

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NOTICE OF ENTRY TENANT(S): ___________________ ______________________________________ _________ ADDRESS: ___________________ _____________________________UNIT: TENANT(S): ______________________ ______________

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TENANT(S): ____________________________________________________ DATE:________ IN ADDRESS: ____________________________________________________ UNIT: _________ LIVING AREAS CITY: _________________________________________ STATE: __________ ZIP: _________ DESCRIPTION OF PET(S)

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1) The pet(s) shall be on a leash or otherwise under tenantÕ Garbage s control Cans when it is outside the tenantÕ s dwelling unit. TV Antenna/Cable 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly. 3) Tenant(s) are responsible for the conduct of their pet(s) Fireplace at all times. 4) Tenant(s) are liable for all damages caused by their pet(s). 5) Tenant(s) shall pay the additional security deposit listedCleanliness above and/or their rental agreement as a condition to keeping the pet(s) listed above. 6) Tenant(s) shall not allow their pets to cause any sort of disturbance or injury to the BEDROOM other tenants, guests, landlord or any other persons lawfully on the premises. 1 7) Tenant(s) shall immediately report to landlord any typeWalls of damage or injury caused by their pet. Windows 8) This agreement is incorporated into and shall become part of the rental agreement exe -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. _____________________________ Landlord

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Rental ...continued from front page Washington residents www.ecyclewashington.org Oregon residents www.deq.state.or.us/lq/ecycle/ index.htm

computer monitor that are toxic to humans and animals. Recycling electronics keeps these toxic materials out of the environment and our food chain.

If saving money isn’t reason enough to recycle, think about what we are throwing “away” when we trash our electronics. TVs, computers and monitors contain reusable metals such as copper, aluminum and steel as well as hazardous materials that need to be kept out of our environment. There are several pounds of lead, cadmium and mercury in every old “tube” type TV or

If you would like to receive information you can distribute to your tenants so they know where to take their old electronics when the time comes or if you have questions about recycling electronics, contact Miles Kuntz (360) 4077157, Miles.Kuntz@ecy.wa.gov, in Washington or Michelle Shepperd (503) 229-6724, Shepperd.Michelle@deq.state. or.us in Oregon.

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