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

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Vol. 22 Issue 6

June 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

$1.1 Trillion Apartment Industry Highlights Multifamily Job Growth for Congress Highlighting the economic strength of the apartment industry in front of Congress, Tom Bozzuto, Chairman and CEO of the Bozzuto Group, represented the National Multi Housing Council (NMHC) and the National Apartment Association (NAA) before a House Energy and Commerce Subcommittee recently. “The apartment industry is a competitive and robust $1.1 trillion industry that helps 35 million renters live in a home that’s right for them. In an environmentally sound way, we help build vibrant communities by offering housing choice, supporting local small businesses, creating millions of jobs and contributing to the fabric of communities across the country,” said Bozzuto, who is also chairman of NMHC. Continued on page 5

The Landlord Times and Apartment News sat down with veteran apartment broker and investor, Joseph Chaplik to discuss Arizona, Oregon and the state of the apartment investment market. THE LANDLORD TIMES: Give us a brief history of your career. How did you get into the apartment brokerage business?

Seattle Discloses Energy Use of City-Owned Buildings City Leads by Example by Reporting Building Energy Use The City of Seattle is providing the public a closer look at the energy use of City-owned buildings in a new report, “Seattle Municipal Buildings 2011 - 2012 Energy Use Performance Report.” The report describes City efforts to evaluate the energy efficiency of 6.2 million square feet of City-owned and operated building space, a process that the City is also requiring owners of mid-sized and large privately owned buildings to do every year. The report also details actions the City is taking to improve the energy efficiency of its facilities. “We hope that sharing the City’s results from evaluating our buildProfessional Publishing, Inc PO Box 30327 Portland, OR 97294-3327

6 Questions with Joseph Chaplik

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ings’ energy use encourages other owners to do the same,” said Jill Simmons, Director of the Office of Sustainability & Environment. “Taking a close look at the energy performance of our facilities helps identify cost-effective opportunities to save energy and free up taxpayer resources for other important City services.” To lead by example, City departments were directed to go beyond the minimum requirements of the energy benchmarking program and publicly disclose the City’s benchmarking results. Private owners in Seattle are required to disclose their Continued on page 7

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JOSEPH CHAPLIK: Previously I was a Vice President of a telecommunication company and started buying apartments when I relocated to Portland. The level of professionalism by the other brokers was not impressive, so I decided to start my own company. I wanted to provide a higher level of professionalism, integrity and service to the apartment investors, which I thought they deserved. Today we represent close to 1/3 of the transactions; more and more clients have Continued on page 3 Page 16 Washington Apartment Association

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ON-SITE 6 Questions ...continued from front page been gravitating to our company for our quality care. TL: You now serve four markets... give a brief state-of-the union on multifamily real estate in your new market, Phoenix, AZ. JC: We just opened our newest office in the Phoenix market this year and have been making great progress. The cap rates are around 7% and higher for the B and C quality buildings and locations. The price per unit is significantly lower than other markets, and the vacancy rates are moderate around 6-8%. For the individual experienced investor, this market has tremendous upside in value with purchasing a rougher property and transforming it into a stable building. TL: How about Portland? What is your forecast for the next couple years? JC: We have been operating in Portland for 9 years and the market is strong. Investors have a high demand for rental properties and there is a low supply of buildings. This situation should remain the same well into 2015, and rents should be increasing annually. Vacancy rates are historically low in this area, around 3.5%. Portland and Salem are great areas for apartment ownership due to this

dynamic. What we are currently seeing is developers building new class A apartments with high rents. As the new projects complete, the market will dilute with the renting demand. In select markets, apartment investing will still be a solid choice with good returns. As new projects complete and demand higher rents, the class B and C properties will demand increases in rents as well. TL: If you could give a couple of key pieces of fundamental advice to new or prospective apartment investors, what would they be? JC: My advice is to make sure that you ask the right questions of anyone that you choose to work with. Ensure that they have experience and are experts in the multifamily industry. Buyers buy on returns and sellers sell on price. However, if you are a seller, be realistic with the sale price. If you are told your property is worth an extremely high price and are offered lower commission than usual, the broker is probably desperate for deals. Beware of this tactic, and get a second opinion. Brokers often try to buy listings by over-pricing the property, which only hurts the seller with lost time and a negative marketing impact.

TL: What advice would you give veteran investors? JC: Most veterans know this, but work with experts and respect quality work and confidential information from brokers. If you feel that your broker only calls you when he needs you to sell, call other firms to build more relationships. A broker/client relationship should be year-round and offer many other services to the client. TL: What advice would you give to prospective sellers to ready their properties (physically and/or financially) for sale? JC: The best advice I can give is to attend our seminars on this exact topic. You should be communicating

with your broker year-round so that when it’s time to sell, your property is already conditioned for the top of market price. Joseph Chaplik, President Joseph Bernard Investment Real Estate (866) 546-9390 jchaplik@josephbernard.net Joseph Chaplik is the President of Joseph Bernard Investment Real Estate, an award-winning brokerage firm in Oregon, Washington, and Arizona. His company was recently named the 56th Fastest Growing Private Company in Oregon, and has been named a finalist for the Oregon Ethics in Business Award. Mr. Chaplik has 18 years of executive leadership experience and has been involved with real estate for eleven years.

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

DANA BROWN AND ZACH HOWELL

The summer season is coming and that brings the annual challenges of managing and maintaining air conditioning units, along with resident requests for installing air conditioning units. There is still time, this is your year to be proactive! D: Suzy Leaser received a call from a resident on a 100 degree day that their air conditioner was not working. She also mentioned that they were elderly. Suzy explained to the resident that she knows how that goes, the office air conditioner wasn’t working as well and she couldn’t stand it, so she called A1 Air Conditioning service to come fix theirs. Suzy confessed it was hard to work in this heat.

They hadn’t had the air conditioners checked out for the year and prior to summer. Suzy assured the elderly resident that her maintenance team was working on other more important issues at the moment but would get to their work order when they could. Suzy, seriously, WHAT WERE YOU THINKING? There are several problems with your response. As a courtesy, and to better anticipate maintenance costs, you ought to have a policy that your maintenance verify that the air conditioning units are in working order prior to the hot weather. The policy avoids the worst case scenario of multiple residents’ air conditioning units out during a heat wave.

Suzy, you have the responsibility to repair or replace an amenity that was original and a part of the lease of the unit. Air conditioning during hot weather is likely to rank as the highest priority to the resident. A resident’s health can be at risk during a heat wave. Residents are how our business thrives and we should provide them with exceptional customer service. Remember, they can live anywhere and they chose to live in your community. Making mistakes in prioritizing repairs can be costly. Local apartment and rental housing associations often offer educational opportunities in this market to learn best practices for work orders and efficient management of your prop-

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erty. Below Zach outlines great practical ideas for allowing the installation of air conditioners. Zach, can you share your maintenance team perspective and how it relates to the office team? Z: Sure Dana, first you ought to have a Summer Preventative Maintenance Schedule (see last month’s article). The maintenance staff should be inspecting and getting the A/C units in order in April or May getting ready for hot summer weather. This preventative approach will indentify which are not working properly and when to order the proper parts or schedule a vendor to repair or replace. Remember that the goal is to be proactive rather than reactive. With regard to A/C’s in general; if the unit was designed into the building (PTAC) or through the wall unit then onsite staff should be trained to repair and maintain the units. If no A/C’s were included in the original design of the property then a specific A/C protocol needs to be established by the property management company. Here are some things to consider: 1. Proper A/C size for the electrical circuit (6000BTU max for most apartment circuits) 2. Proper unit style for window configuration (a top down window A/C will not work in a side sliding window) 3. Who will install the A/C unit (vendor or maintenance staff) 4. How will it be installed (bracket, not attached to building) 5. Proper window void coverage (cardboard, plexiglass, plywood) 6. Who will repair it if it breaks? 7. Who is responsible if it leaks? 8. Who will remove it? 9. Who will store it during the off season (or can it stay up year round)? Every company will address this complex issue a bit differently. My recommendation is to let outside vendors handle installation and removal in order to decrease the liability of your maintenance staff breaking, dropping or damaging residents A/C units. If you are going to have site staff install and remove then some training should be provided as to how to best perform installation in order to decrease liability to the company and keep the employees safe. Whether you perform this customer service via onsite staff or vendor have a clear protocol including the above items and clear answers up front so residents and management are all on the same page. Your local apartment association may offer forms to cover this situation. Continued on page 5 On-Site Northwest • June 2013

ON-SITE $1.1 Trillion ...continued from front page It takes at least 300,000 new apartments each year to meet demand, but less than half that number was delivered in 2012. Highlighting a $72 million apartment construction project in Baltimore’s Union Warf, Bozzuto drew the connection between job creation, manufacturing and multifamily development. “This building required enough concrete to fill 240 swimming pools. End-to-end, the lumber used would span about 331 miles and the drywall could cover more than 42 football fields. In addition, we will use 204,000 lbs. of granite, 290,000 bricks, more than 7,000 gallons of paint, 1,700 appliances and 3,500 cabinets,” said Bozzuto. “A significant percentage of these construction materials were manufactured in America, with more than 25 percent being sourced within 500 miles of the project site.” “The apartment industry can be a robust economic engine that provides lasting job growth and spending nationwide,” Bozzuto added. “With up to seven million new renter households forming this decade—

almost half of all new households— the dollars and jobs we add to the economy will only grow in magnitude.” For more than 20 years, the National Apartment Association (NAA) and the National Multi Housing Council (NMHC) have partnered on behalf of America’s apartment industry. Drawing on the knowledge and policy expertise of staff in Washington, D.C., as well as the advocacy power of 170 NAA state and local affiliated associations, NAA and NMHC provide a single voice for developers, owners and operators of multifamily rental housing. Apartments and their 35 million residents support more than 25 million jobs and contribute $1.1 trillion to the economy. To learn more about apartments, visit www. weareapartments.org. For more information, contact: NMHC at (202) 974-2300 or info@ nmhc.org or www.nmhc.org. NAA at (703) 797-0616 or carole@ naahq.org or www.naahq.org/govern mentaffairs

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D & Z ...continued from page 4 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 July 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

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INSTITUTE OF REAL ESTATE MANAGEMENT President • Barry Blanton VP Finance • Mark Grey

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New IREM® Whitepaper Examines Effective Communication as a Critical Leadership Skill The most common competency listed for virtually all job descriptions is good communication. A new white paper just published by the Institute of Real Estate Management (IREM®), explores just what it takes for real estate managers and practitioners in other fields to become effective communicators, and therefore better leaders. Titled simply “Leadership Development: E ff e c t i v e Communication,” the publication is the third in a series of IREM® white papers that will examine various leadership-related topics. It acknowledges at the outset that the ability to communicate with others is one of the toughest skills to master, particularly because the meaning of any communication is determined by the person receiving it, not the person delivering it. Consequently, the same message can mean different things to different people. Observing that perhaps the simplest definition of effective communication is when everyone receiving information ascribes to it the same meaning that was intended by the sender, the white paper goes on to address:

• The three basic rules for making any communication more effective • How to craft the message to achieve your communication objectives • Communication barriers to avoid • How to be a better listener • How emotional intelligence (EQ) impacts communication • Specific actions you can take to be a better communicator. PRICE AND ORDERING INFORMATION IREM® Members can download “Leadership Development: Effective Communication” at no cost from www.irembooks.org, but they must log in as a member to download the publication free. The price of the publication for non-members is $5.99 and can be paid for by credit card (VISA, MasterCard, American Express, and Discover) and downloaded at www. irembooks.org.

ABOUT THE INSTITUTE OF REAL ESTATE MANAGEMENT The Institute of Real Estate Management (IREM®) is an international community of real estate managers dedicated to ethical business practices, maximizing the value of investment real estate, and promoting superior management through education and information sharing. An affiliate of the National Association of REALTORS®, IREM is the home for all industry professionals connected to real estate management – and the only organization serving both the multi-family and commercial sectors. We believe that good management matters, and that well-managed properties pay dividends in terms of value and in the quality of life for residents, tenants and customers. We believe in professional ethics. We believe in the power of knowledge and the importance of sharing it. IREM offers a variety of membership types for professionals of every experience

level, from on-site managers to high-level executives. Our credentials, earned by meeting high standards of education, experience, and ethical business practices, include: Certified Property Manager® (CPM®), Accredited Residential Manager® (ARM®), Accredited Commercial Manager (ACoM), or Accredited Management Organization® (AMO®). Since 1933, IREM has set the standard for best practices in real estate management. Today, IREM® membership includes nearly 18,000 individuals and 550 corporate members. To learn more about the IREM and its chapter network, call (800) 837-0706, ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.

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ON-SITE Seattle ...continued from front page building’s energy use with tenants, buyers, lenders and other qualified parties upon request. The City building report includes office buildings, libraries, fire and police stations, community buildings and more. The assessment found that Cityowned downtown buildings (City Hall, Justice Center, Seattle Municipal Tower, Central Library) are more energy efficient than the national average. The Seattle Municipal Tower has an EPA ENERGY STAR score of 93 out of 100 (50 is average), meaning it is more energy efficient than 92 percent of similar buildings nationwide. More than 3,000 people work at this 62-story high rise that uses about 40 percent less energy than a typical building of its size. Regularly monitoring and quick action to address in energy use helps the City keep the building performing at the top of its class. For example, continuous energy tracking led managers to reduce weekend heating and lighting when fewer people use the building. On the whole, the City’s extensive public library system uses about 42 percent less energy than other U.S. libraries. Seattle’s libraries use about 61 kBtus (thousand British thermal units) of energy for each square foot of space, whereas U.S. libraries on average use about 104 kBtu per square foot.

City building energy use was compared to that of similar buildings throughout the nation – information provided by the U.S. EPA’s ENERGY STAR program and the Energy Information Agency’s Commercial Building Energy Consumption Survey (CBECS). Private building owners can also use ENERGY STAR and CBECS data to see how their buildings stack up to others nationally. “We applaud the City for taking a detailed assessment of the energy performance of its buildings and sharing this information with the public. Seattle 2030 District members share building energy performance within our organization allowing participants to compare results, share best practices and make our buildings perform at higher levels of efficiency. The City’s disclosure of its data is a welcome step in providing useful information from which the market can learn," said Brian Geller, Executive Director of the Seattle 2030 District. The Seattle 2030 District is a collaboration of leading building owners and managers, including the City of Seattle, in downtown Seattle committed to significantly reducing environmental impacts within the built environment. While this is the first time City building energy use has been made

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public, the City has a long history of monitoring and improving the energy efficiency of its facilities, including recent energy efficiency upgrades at 17 City facilities. One upgrade—a chiller at Seattle Center’s central plant that cools more than one million square feet of space—is projected to cut electricity use by 13 percent. This and other energy conservation efforts have saved the City and taxpayers $1.25 million since 2008. The City is currently developing a comprehensive Resource Conservation Management Plan to build on its energy efficiency track record. The Plan will outline strategies to improve the energy efficiency of City’s building portfolio by 20 percent by 2020 (from a 2008 baseline). As of April 1, owners of all commercial and multifamily residential buildings 20,000 square feet or larger are required to annually benchmark and report energy use to the City. Already, more than 90 percent of large building owners (50,000 square feet and above) have reported their building’s energy use.

For more information on Seattle’s Energy Benchmarking and Reporting Program and free benchmarking support, visit: www.seattle.gov/energybenchmarking or call (206) 727-8484. www.seattle.gov

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Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez

Dear Maintenance Men: I have a three-vehicle carport that has no electricity or wiring whatsoever. I plan to have wiring installed for lighting purposes and to add garage doors (w/ automatic openers) to close off the carport. Since I am engaging in this project, I figured this was a great time to prepare the carport/garage for future and potential electric car use. What specific items should I keep in mind for this upgrade, e.g. voltage/amps, location of outlet (driver/ passenger side; front or rear of car; distance)? Will the car come equipped with an extended charging cord or would I need to supply one? Ruben Dear Ruben: In a past article we wrote about electric charging stations in the garage. Part of the article is below: “Electric cars make a lot of sense for those commuting thirty or forty miles a day. Many of the new electric cars coming out will allow charging from a 110 volt/15amp outlet. But, that is marginal at best. We would recommend installing at minimum, a dedicated 240 volt/40 amp outlet in each stall or garage. Optimally if you are going through the

expense of running 240 volts, back it up with at least 80 to 100 amp service. This will allow for future expansion and easily charge two 40 amp electric cars at one time. The outlet station should be no more than 25 feet from the vehicle. This is pretty heavy duty electrical work and we would recommend you use a qualified electrician who understands what you want to do.” A station using 110/120volt is know as a Level 1 EVSE Charging Station. A Level 1 station is the minimum needed to recharge an electric vehicle and may take anywhere from 10 hours to 24hours to fully recharge a vehicle depending on battery capacity. 220/240volt station is known as a Level 2 EVSE Charging Station. A Level 2 station will require a 220/240 outlet for operation. The Level 2 station will charge a typical electric vehicle in six to eight hours. Greater or faster charging power will require a larger electrical service not typically found in residential buildings. Electric cars are a relatively new and emerging technology and jumping too early on the bandwagon may be costly. That being said; wiring existing garages, carports with 220/240 capacity is a good idea. Installing the actual charging station should be on a wait and see basis. Keep in mind, Level 1 & 2

Charging Station range in cost from $1000 to $2500 on up not including the cost of installation. The best location for a charging station is hard to answer, as each electric vehicle will be different. At this time, most vehicles seem to use the old gas tank port as an electrical receptacle and that port could be on either side of the vehicle. A front or rear port is also possible. For ease of installation and standardization, we would recommend a front of vehicle install of the charging station. The charging stations come with an adequate cord length for most vehicle applications. EV Chargers will charge any car with the SAE J1772 standardized plug which all new cars in the US are using. If you have Nissan Leaf, Mitsubishi i-Miev, or Chevy Volt, all you need is a 240V 15A device, since these cars only have a 3.3kW/h inverter built in. This website has a lot of useful information. http://www.pluginrecharge.com/2011/08/residential-evseroundup.html Dear Maintenance Men: The concrete and brick sidewalk leading into my building has accumulated unsightly chewing gum. My power washer doesn't remove it. How can I get that stuff cleaned up? Once clean, is there any surface treatment to prevent gum from

sticking? Korey Dear Korey: There are a number of ways to remove gum from a brick or concrete sidewalks. Spray the gum with an aerosol freezing agent or place dry ice on the gum for a few minutes. The gum will become very brittle and should be easier to pry off the surface with a putty knife or scraper. It may take a few tries to remove all the gum. If there is any gum remaining, spray WD-40 or vinegar and let it soak to dissolve the remaining gum. Use a scraper or stiff brush to remove the rest of the gum. After all the gum is removed, use a power sprayer to deep clean and remove any gum residue. If you still have discoloration on the concrete, use muriatic acid & water mixture to bleach the concrete. To keep the gum from sticking to the concrete or brick sidewalks in the first place; use a waterproofing sealer on the sidewalk to reduce the likelihood of the gum sticking to the surface. Dear Maintenance Men: A resident had a flood in his unit and could not immediately get hold of the resident manager. It was almost an hour after the incident Continued on page 9

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ON-SITE Dear ...continued from page 8 before a plumber could solve the problem. Because the resident manager can not be expected to be at the building 24 hours a day, seven days a week; is it wise to show my tenants how to shut down the water and gas in case of an emergency? Mark Dear Mark: Regardless of the size of the property; an emergency procedures policy should be in place. Part of the procedure should include posting basic water, gas and electrical shutdown procedures in the laundry room, mailbox area and in the move-in packet of each resident. Include the shut-off locations and instruction on how to accomplish the shutdown along with emergency telephone numbers for the plumber, gas company & electrician. Be sure all the shut-off locations are clear of debris, bushes and are accessible. Replace any old or worn out valves that could fail in an emergency situation. All water gate valves should be

replaced with ball valves for a positive shut down. 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.BuffaloMaintenance. com & www.ContactJLE.com www.Facebook.com/BuffaloMaintenance

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market conditions change, many leasing consultants are eager to use rent concessions and other incentives to entice people to rent at their communities. Yet even when there are few vacancies, it’s hard to break the habit of readily promoting a “bargain,” rather than the value received for the price. The following concern was recently brought to my attention by a property management company:

Q: My leasing staffs have become so conditioned to using rent concessions and other types of incentives at the first sign of an occupancy problem, I think they are actually selling the concessions, rather than the available apartments. Even when we only have a few vacancies, they immediately want to resort to the use of concessions, rather than get creative to sell the value of their product. What can we do to get out of this vicious cycle, especially if this is what our competition is doing?

A: This is a very “sore” subject as and low move-in costs will ultimateconcessions are meant to solve the very problem they create: rent loss. To further add insult to injury, rent concessions and deposit incentives will ultimately devalue a community over time. The rental market goes through cycles, just like everything else. If you teach your employees how to sharpen their leasing skills and offer rewards for NOT using concessions, then you will enable them to “ride out the storms.” You can also network with the competition in your area. If your rents are all approximately the same price per square foot and no one is “giving away the farm,” then everyone will have some “honest” competition. If you lose a prospect to the community down the road, then find out why and figure out what you can do about it. (i.e. If they have an exercise room and you don’t, maybe you can work out a deal for your residents with a local health club, etc.) Quality promotions, like open houses, prize drawings, parties, etc., can increase traffic and boost employee morale. However, rent reductions

ly have a negative impact on your existing residents and compromise the quality of your resident profile. Sure. You might move in MORE people with all the “deals,” but how long can they afford to stay once the rent goes back up? Higher turn-over affects the stability of the “community” environment you have created, and also increases the “wear and tear” on your apartments. Plus, how will these “shorter term” residents pay to restore the apartment to its original condition on the way out, if they didn’t have to pay a full deposit on the way in? Concessions cannot take the place of skillful leasing. They are merely a “quick fix,” which create problems and challenges of their own. You must invest in quality training and come up with creative incentives to motivate your leasing staffs. In addition, you will have to educate other property management companies in your area on the value of “fair” competition in order to “level the playing field.” This will pay off in higher occupancies and increased revenues for EVERYONE!

Are you dealing with a unique challenge or unusual situation at your community that you would like to see addressed next month? The Secret Shopper would like to invite you to send in your questions, as other people may be dealing with the same or similar issues. - You will remain as anonymous as the Secret Shopper! Please ASK THE SECRET SHOPPER by making contact via e-mail. Your questions, comments and suggestions are ALWAYS welcome! ASK THE SECRET SHOPPER Provided by: Joyce Kirby SHOPTALK SERVICE EVALUATIONS Phone: 425-424-8870 E-mail: joyce@shoptalkservice.com Web site: www.shoptalkservice.com Copyright © Shoptalk Service Evaluations

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Move ‘em in, Move ‘em Out The guide to successfully turning units While researching unique perspectives on move-ins and moveouts in the property management world, I kept attempting to resort to a metaphor. Then I came across the origin of the word “metaphor” itself, which means “to carry” in Greek. In the context of a typical metaphor, the “carrying” is referring to the sense of one word to a different word, but I figured there were other ways to manipulate the idiom. So after repeating “Moving tenants in and out of apartment complexes is like…” over and over in my head with no accurate figure of speech coming to mind, I started thinking of all the ways that “carrying” is associated with moving. Not only for the obvious reasons of moving boxes in and out, but in the mindset of a landlord, transferring and carrying out promises, papers and the term of the lease. What every owner or property manager of an apartment building needs to do first is establish move-in and move-out procedures. The only way to successfully move tenants in and out with the least amount of conflict is to enforce a set of procedures applicable to all. Having concrete guidelines to address all that comes up when a unit turns will facilitate smooth transitions. The move-out and move-in procedures will require checklists to ensure that the person overseeing the transition has a list to refer to when inspecting. Let’s start with a typical moveout. When a tenant gives notice, utilize the amount of notice that is currently required in the market. Twenty days is plenty of time to co-

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ordinate with them a pre-move-out inspection which will not only benefit them, but benefit you in the long run as well. Come prepared with a “make ready checklist.” Schedule the necessary vendors (a carpet cleaner is almost always required.) Are the drapes gross and dusty? Do the current tenants want to/have time to clean them? Have they offered to do the nitty-gritty cleaning and have you highlighted how clean it has to be? If you thoroughly describe the condition that the apartment has to be in, it will ensure that nothing slips through the cracks upon move out. You don’t like having to clean more than you anticipated and do so in too short of an amount of time, just as much as past tenants despise receiving deposits back which are half of what they were expecting. Conduct the move-out inspection WITH the tenant present. Close respective utility accounts. Seattle City Light provides a straightforward website and by just clicking the few buttons necessary, it saves the hassle for you and the tenant in the long run as well. CHANGE THE LOCKS! This is an important turnover task because no matter how friendly and moral driven a tenant may seem, they could have given a key to a friend over the past nine years of their tenancy, so who knows who could have access to that given unit! Ensure that the smoke detectors are working and have battery life. Lastly, spruce up the unit to prepare for walkthroughs. The past tenants should have left it in immaculate condition but if there’s anything that catches your eye, take

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Ultimately, moving is a metaphor in and of itself. A landlord is transferring and carrying out their promise to each tenant as they come and go. The relationships that you build with your residents begin with their experience upon move-in and are “carried out” when it comes time for them to leave. Tenants will have a lasting impression on their living experience with a certain company or individual so being overly thorough throughout each tenancy life cycle can only benefit. To quote a current relevant movie and book, as a landlord you might occasionally feel discouraged as Gatsby did at the end of his novel: “So we beat on, boats against the current, borne back ceaselessly into the past.” Follow these steps on moving tenants in and out of your units and turnovers will become as smooth as if you are floating with the current rather than against it. 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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the time to make those small adjustments because they will make a difference from the eye of a prospective tenant. After you have conducted walkthroughs and found the tenant of your dreams with a check in their hand and a green thumbs up on their application, you are ready to perform the correct steps for moving in a tenant. Schedule the move-in with them so that you accommodate their needs and show that you are available to welcome them into their new home. On the day that they settle in, open up their utility account to ensure that there are no date conflictions with the respective unit’s meter readings. On that same day take care of everything to do with the lease. Ensure that they have signed in all the necessary areas and have fully studied the terms and lease in its entirety. During their move-in walkthrough, require that they complete their move-in inspection form, so that you are not held liable for anything that they hadn’t caught after they have already moved in. Once all of the above steps are complete, bring out those shiny keys that you are now able to confidently place in their hands. The jingle you’ll hear will symbolize success ringing in both of your ears.

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The sun is out and you’re property is no longer hidden, and, due to your busy schedule during the Fall and Winter months, your rental property may have become a magnet for crime or suspicious activity. It’s time to ask yourself, “Is my property’s exterior appearance inviting to criminals, deadbeats or other unsavory characters?” Unfortunately, many landlords surrender a majority of the control of their prop-

erties exterior upkeep to tenants. However, a landlord is obligated to make sure the aesthetic and physical nature of the property is attractive to honest renters and unattractive to dishonest tenants. Landlords can do their part by taking on a few housekeeping items to help prevent crime from happening at the apartment or rental home, and to keep the neighborhood a desirable place to live. The idea is simple; natural sur-

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Excuse of the Day "I got into a car accident going to the city this morning because I was texting:( lesson learnt- It's gonna cost me over 2K since I have no insurance. My bichon will need an X-ray. God will provide." I'm sorry to hear that, let me know if I can help. I hope it doesn't cost you too much. (My heart said ok you can pay this months rent in installments with the next coming rents) but then again I felt may be my kindness will be taken for a weakness and I may never see this months rent and they might give me other excuses in the future. On the other hand why should I help irresponsible people? John, CA

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veillance. Natural surveillance, a term coined by Crime Prevention Through Environmental Design, known as CPTED (pronounced “Sep Ted”); a field of knowledge developed to demonstrate that the architecture of some buildings deters crime while that of others encourages it. This concept includes exterior illumination, landscaping, and general property maintenance. Replace any missing or burnt out light bulbs. Install motion-detecting fixtures if none exist. Trim all shrubs to allow visibility from both inside and outside the unit and in such a way as to not promote humans to hide behind them. Prune any tree branches hanging below 6’. Clear the property paths of any debris to the entrance of the home and install a stone walkway or something similar to deter wandering. Make it clear to visitors where they are expected to enter the rental property from and have a freshly painted front door to welcome them. Maintain the fence in good repair; address graffiti immediately, replace broken sections as needed, keep pets in but leave gaps to maintain visibility. Make sure address numbers are clearly posted for potential renters

or apartment residents to easily find the home as well as for emergency vehicles. “No Trespassing” signage is agreeably unattractive, but that’s the point of them! Simple signage is virtually effortless yet loudly conveys to others that you mean business in maintaining your real estate investment. Taking care of these basics will make at least a psychological impression that someone cares. Crime is less likely to occur if criminals feel like they may be seen. Protect against neighborhood decay. Remember, your investment property is an extension of you. 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 Northwest • June 2013

ON-SITE

Six Reasons to Paint Before You Move In The guide to successfully turning units Moving to a new house, condo, or apartment this spring? Before filling your home with furnishings, there's something you might want to do first: paint. Experts of every stripe - from realtors to authorities on painting -say that one of the very best times to do interior painting is just before moving into a new home. Here are six reasons why, according to Debbie Zimmer, paint and color expert for the Paint Quality Institute: Reason #1 It's easy now. Interior painting is a very simple project - and not at all physically demanding -- when you can move freely within a room. Why wait till later when you may have to move heavy furniture from side to side, or work around big items, to do your painting? Reason #2 It saves time. Painting can take a lot longer when you have to cover and uncover things, move them back and forth, and take down and re-hang artwork. It's better to paint just before moving and short-circuit these time-consuming and unproductive steps.

Reason #3 It can save you money - lots of it. If you're using a professional painting contractor, he or she can complete the work far faster in rooms that are empty. That's extremely important, since time charges for labor typically account for 80% of the cost of painting, according to Zimmer. "Bottom line: Calling in a contractor before moving into a home can drastically lower the cost of painting the space," she says. Reason #4 It safeguards your furnishings. No matter how carefully you or your contractor work, there is always the chance of a paint spill, or a few stray flecks finding their way onto a prized possession. Painting before bringing in your furnishings keeps these items out of harm's way. Reason #5 It can simplify interior decorating. Don't yet have your furnishings? There's no better way to set the stage for your décor than by adding a fresh paint color scheme before decorating. Doing so greatly simplifies the selection of new furniture, carpeting, and accents, allowing you to choose

just the right tints, tones, and shades to make your new home picture perfect. Reason #6 It feels good. Adding a new coat of paint makes any home seem cleaner, fresher, more welcoming, and best of all. . .more "yours". To keep your paint job looking great, Zimmer recommends the use of top quality 100% acrylic latex paint; it will produce a more stain resistant finish that will look new-home fresh for years to come. As you can see, there are a lot of good reasons to think about painting even before you move into your new abode. If you're sold on the idea, you can find all sorts of color tips and how-to information at blog. paintquality.com or on the Paint Quality Institute's website at www. paintquality.com.

providing information on the virtues of quality paint as well as color trends and decorating with paint through a variety of instructional platforms and conferences, and traditional and new media vehicles. More information can be found at www.paintquality.com. Debbie Zimmer, PQI Director of Communications and Alliances Dow Coating Materials, North America, The Dow Chemical Company, 727 Norristown Road, PO Box 904, Spring House, PA 19477. Office: 215-619-1683. Mobile: 215-962-5551. Email: dzimmer@dow.com

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WASHINGTON MULTI-FAMILY HOUSING ASSOCIATION Executive Director • Jim Wiard President • Jay Olson Vice President • Joe Manca Past President • Cassandra Haavisto 18300 Cascade Ave. S., Suite 130 Tukwila, WA 98188 (425) 656-9077 (425) 656 9087 (fax) admin@wmfha.org

Secretary • Gail Duke Treasurer • Brett Stevens Vice President of Suppliers Council • Barry Savage

WMFHA – Working For You

he Washington Multi-Family Housing Association is celebrating our 10th Year Anniversary this month with a remembrance of our past and excitement of our future. Interviewing key early contributors to the formation of our association, one theme prevailed, and that was the passion, vision and commitment of those who worked tirelessly to form and grow our association those many years ago. The synergy of that early group of people, powered by the desire to: develop an association that can enhance the careers of those in the industry; promote the businesses of those who serve the industry; and improve the lives of those we serve, was a labor of love for the talented people involved. From our humble beginnings, working out of the garage of one of our founding members, our early affiliation with the National Apartment Association allowed us the opportunity to offer dynamic educational courses, provide legislative advocacy, and enhance professionalism for our membership. Our

membership grew over time, from 20,000 units and 140 members in our first year to over 110,000 units and 830 members today. This year, we have listened to our members and expanded our educational opportunities, from our Certified Apartment Manager (CAM) courses to our Certificate for Apartment Maintenance Technicians (CAMT) designation as well as adding marketing and affordable housing training options. We have increased our networking and information sharing events to assist our industry partners to reach their target market. We have been more deliberate and consistent in our communication. Our primary goal is to ensure we are delivering quality and value to our members and the industry. During the legislative session, over 20 of our members and staff traveled to Olympia to meet with our state legislators to discuss our positions on pending bills and to solicit support for legislation favorable to our industry. Delegates of WMFHA also traveled to Washington D.C. to meet with our congressmen

Happy 10th Anniversary To The Washington Multi-Family Housing Association

and women to create partnerships and relationships with our Senators and House of Representative members from Washington State in order to educate them on the importance of the apartment industry to the national economy and the need for thoughtful legislation conducive to our industry’s growth. In February, we held our 3rd annual Emerald Awards gala, honoring the best of the best in the industry and paying recognition to the individuals who make our industry strong. The lifetime achievement award was bestowed upon Mr. John Goodman, founder of Pinnacle, today one of the largest management companies in the country. Our March Membership Meeting included an economic forecast update by economist Matthew Gardner. Matthew provided outstanding information including market trends and employment dynamics to the large crowd in attendance. In April, we focused on educational hands-on training for our maintenance service team members at our annual Maintenance Summit trade show featuring the Maintenance Mania competition. Attendees chose from a variety of maintenance classes to enhance their knowledge and career skills and to learn ways to save money for their owners. Maintenance Mania winner Angel Munoz from CTL Management will represent Washington in the national competition in San Diego this month. Our Education Conference and Exposition in May brought together management personnel for a fun and

informative day with national and local speakers on such topics as reputation management, generational differences and unique marketing principals. The day culminated with our Think Tank brainstorming session, with dynamic and interactive solutions to challenges and problems brought forth by attendees. The ideas generated during this brainstorming event were published and will help management personnel solve their everyday problems. During our June Membership Meeting, Sunny Kobe Cook provided inspirational advice on growing your business, building relationships and brand marketing effectiveness. We honored all of our past association presidents and board members, as well as our founding members, and reminisced about milestones and accomplishments during the history of our association. As our association embarks on our second decade as an organization serving the rental housing industry, we look forward to improving our technology, refreshing our website and exploring ways to be more efficient and service oriented. We are an association lead by our members, for the benefit of our members, with a goal to improve the industry we all care about and make a positive impact upon the quality of life in our community. Thank you all for your continued support. We are honored to be your association and excited about growth in the future.

Please Visit us at www.TheLandlordTimes.com A proven leader in advocacy and education for the multi-family housing industry, WMFHA has become a strong, vital trade organization thanks to leaders and innovators who are passionate and committed to the success of multi-family professionals. Membership in WMFHA provides opportunities for business growth, personal and career enrichment, and allows avenues to give back to the industry and community. Join WMFHA today and leverage the influence and stability of membership in the National Apartment Association. Your involvement is critical as they embark on their next chapter. BEST WISHES TO WMFHA!!

WWW.WMFHA.ORG 7/1/13.

On-Site Northwest • June 2013

ON-SITE

PCA Remains Optimistic; Expects Strong Growth in Cement

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VALLEY, METRO, ARIZONA APT Strong Economic Momentum Expected to Spillover to Construction

Following the strongest cement consumption gains in seven years in 2012, cement consumption growth will continue in 2013 with a 6.2 percent increase. According to the latest forecast from the Portland Cement Association (PCA), the majority of market recovery will occur in the second half of 2013. "Recessions correct imbalances generated during boom periods," Ed Sullivan , PCA chief economist said. "Few economists doubt the generation of a large pent-up demand during the past several years. The question is, when the economy will unleash its potential for strong growth?" The recession has created a pentup demand not just for consumer products but also construction. For example, PCA expects housing starts, to reach nearly 1 million in 2013. Multifamily construction also continues to grow at a strong pace and this trend should continue as favorable fundamentals fuel the sector.

Multifamily starts recorded a 55 percent gain in 2011 and 36 percent growth in 2012. PCA expects an additional growth of 29 percent in 2013 to 318,000 units. "Although nonresidential and residential will be in full recovery in 2013, public construction will act as a drag on cement consumption this year," Sullivan said. "However, as the economy gains momentum in 2014, job gains will strengthen states' fiscal conditions and support stronger construction spending." The accelerated consumption predicted during the second half of 2013 should carry into the following year. PCA projects an increase of 9.2 percent for 2014. PCA also upwardly revised its long-range projections for 2015-2017. Annual growth during that period is expected to be as high as 11.1 percent. PCA predicts cement consumption levels will reach 120 million metric tons by 2017.

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On-Site Northwest • June 2013

Salsbury Indu

Note to editors: For additional inforAbout PCA mation, contact Patti Flesher at The Portland Cement Association repnewsroom@cement.org. Portland resents cement companies in the United Cement Association. www.cement.org States and Canada. It conducts market development, engineering, research, eduApr, Jun, cation, and publicFeb, affairs programs. More Aug, Oct, Dec information on PCA programs is available at www.cement.org.

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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National Mortgage Settlement Provides More Than $1.1 Billion in Relief to 15,500 Distressed Washington State Homeowners The nation's largest mortgage servicers have distributed $1,168,242,476 in direct relief to 15,508 distressed homeowners in Washington state or about $75,332 per homeowner as part of the National Mortgage Servicing Settlement according to an update released today by Joseph A. Smith, the Settlement administrator. The Settlement was reached over a year ago when HUD, the Department of Justice and 49 state attorneys general reached an agreement with nation's five largest, mortgage servicers - Bank of America, Wells Fargo, Citibank, J.P. Morgan Chase and Affinity (formerly GMAC) - to address mortgage loan servicing and foreclosure abuses. Nationally, the Settlement Administrator also reported today, as of March 31st the five servicers have distributed $50.63 billion in direct relief to over 620,000 homeowners, or roughly $81,000 per homeowner under the Settlement. The Adminis-

trator's update report can be found at https://www.mortgageoversight.com/map-reports/updatedconsumer-relief/ The assistance provided by the servicers included modifications of 1st and 2nd mortgages, forbearance agreements, short sales and deedsin-lieu of foreclosure. The report demonstrates significant progress on the broadest and most robust principal reduction program in the nation's history. New York homeowners have received more than $1.9 billion in consumer relief. "One year in," said HUD Secretary Shaun Donovan, "it is clear that this historic settlement is making a profound difference on lives and communities. We have far surpassed expectations in our efforts to assist struggling Americans. Due to the efforts by 49 bipartisan state attorneys general and the federal government, hundreds of thousands of people are able to stay in their homes or avoid foreclosure, preventing the erosion

of the social fabric of our communities. As a result of the settlement, over 620,000 homeowners have received on average more than $81,000 in benefits thus far." "The Monitor's latest update reaffirms a simple truth: that large-scale principal reduction is an important tool in preventing foreclosures. We look forward to reviewing the Monitor's compliance reports next month. We will also continue to keep a close eye on the banks to ensure they live up to their end of the deal when completing their consumer relief requirements and their progress on implementing new and improved servicing standards," Donovan concluded. " We will not stop until homeowners get a fair shake."

affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www. facebook.com/HUD. or sign up for news alerts on HUD's News Listserv.

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality

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On-Site Northwest • June 2013

BLUESTONE & HOCKLEY

The Changing Landscape of Property Management

Elena Tangman-Wells, Executive VP, Bluestone & Hockley Real Easte Services

oday property management is a different industry than it was 20 years ago, much different. As managers progress technologically so do their clients. These clients want 24/7 access to their property data and expect constant communication. Managers who are accountable, flexible and work to integrate new technology into their process are poised for immediate and future success At Bluestone & Hockley we use programs and web platforms aimed to increase transparency, communication and client security. Our managers can spend more time improving properties, decreasing vacancy and increasing value. Today’s manager must be trained and kept up to date on the latest updates and programs. Docusign, NetVendor and RentManager are just a few of the programs Bluestone & Hockley has quickly adopted and implemented for cutting edge management. Rent Manager: Because of The wide range of properties under the Bluestone and Hockley’s umbrella needs a highly sophisticated platform is needed. From commercial properties to homeowners associations, Rent Manager allows B&H

On-Site Northwest • June 2013

property managers to restrict properties to designated bank accounts, create property groups and pull customized, detailed, accounting reports based on these groups and electronically file monthly financials with a few key strokes. Besides its organizational skills the software saves thousands of sheets of papers and rooms of filing boxes, and with environmental concerns taking precedent this is a definite plus. Net Vendor: How do you know the technician you hired to replace the drywall in your 100 unit complex is reliable and professional? Are they licensed and bonded? With NetVendor these questions won’t enter your mind. NetVendor filters vendors through its system checking insurance, backgrounds, and valid trade licenses. All this information assures the work will be completed by a professional and licensed technician. Property Managers can also “rate” the quality of vendor, which improves the vendor selection process. vFlyer: vFlyer is an online service for creating standardized, professional-looking classified ads. Design templates are included in the service,

optimized for sites like Craigslist, Zillow and Trulia. The advanced software targets large audiences both online and offline and the posts are easily linked and can be embedded on websites and other pages. Bake Extra Cookies: Craigslist has become a hub for rental advertisements and Bake Extra Cookies has the resources and knowledge to create an effective Craigslist ad. There tagline is “Get Leases By the Dozen” and they call themselves “your property advertising platform”. Their system, which provides a simple way to create successful online advertisements optimized for the web, is effective and has become a useful tool for managers and leasing agents. Docusign: This software service provides cloud-based electronic signature technology allowing managers to send secure documents at light speed. This process saves manager’s time and gives tenants and owners a convenient way to sign important documents anywhere, without the manager chasing autographs the whole day. PayLease: With PayLease property managers have the ability to collect rent, dues and lease payments elec-

tronically. The software improves funding time so managers aren’t waiting by the mailbox to collect checks. Custom web integration is also used to embed the PayLease services into a company’s website making payment simple and fast. CellPhones: How significant is it if all the applications listed above can be accessed on a cellphone? The miniature computers in our pockets give property managers the ability to stay connected with their clients, check the progress of service orders, reply to e-mails, and monitor rent collection all while out of the office. Mobile information and communication are big reason why the property management industry has become so dynamic and multifaceted. Managers are taking on more as their ability, knowledge and connectivity develop with the advances in mobile technology. This industry has been fast to integrate new developments into every operation. Adopting these programs and methods to expand a property manager’s ability to quickly market and communicate with owners, tenants and vendors has raised the perContinued on page 22

ON-SITE

Property Management Peak Performance What You See Is What You Get! By Ernest F. Oriente, The Coach Would you like an easy way to track the performance of your property management SuperStars? Will a large on-site activity board really make a difference? You bet! This article will give you three easy ways to improve the performance of the properties you manage because what you see is what you get! Setting up your on-site activity board: Start by ordering a large erasable board from your local office supply store, the bigger the better (hint, a big board = assumed big results!) and mount this board on a wall easily seen by your leasing team but not visible to your residents or future residents. Use this activity board to track the performance of each property, highlighting the “critical” factors for success. Initially, track each property’s leasing activity, resident retention percentages, units available, the number of daily apartment tours, closing ratios of tours versus leased units and maintenance requests. This on-site activity board is also a perfect place to forecast the monthly team goals for each property you manage and gives each team member a way to see how the month is progressing. At the end of each month, schedule a regroup meeting [request article #5 for the steps to run a regroup meeting] to summarize the performance of the most recent month. Then, erase the board and set new individual and team goals for the upcoming month. Tip From The Coach: After you have installed your erasable on-site activity board, assign a unique marker color to each person at the properties you manage. This

“pride of ownership” means that each person on your leasing team will have great enthusiasm in making sure they can see as much of their marker color on the board, as the rest of the team. Sounds crazy, but it works! Ranking top performers: Using your on-site activity boards, recap the monthly performance for each person at each of the properties you manage and develop a ranking report. Use this report to track the SuperStars in your property management company and circulate this information company-wide. This ranking report should reward top monthly performance both individually and as a team, depending on the areas you are measuring. This ranking report should also summarize your SuperStar performers for the month, by the quarter and year-todate. By reflecting these three time periods, everyone is given a chance to shine and each individual within your company can see how their performance compares to the best within your property management company. Tip From The Coach: Based on the results from your ranking reports you can now create leasing incentive programs and build new compensation plans with much greater accuracy. In addition, your ranking reports will also become a powerful tool for calculating quarterly projections and developing each year’s budget. Lastly, try and keep your “critical” factors for leasing success on a one-page report, if possible.

Tracking your key prospects: Now, set-up a place on your onsite activity board to track the progress of key off-site marketing opportunities. For instance, if five new residents have come from a large nearby company, ask your leasing team to put their name on the on-site activity board and leave a space to track the number of contacts being made with this company. Or, gather a sample of this month’s guest cards and see if there is a common zip code or section of town where your future residents are coming from. Then, list this zip code as a key area for your leasing team to visit when they are doing their off-site marketing. Tip from The Coach: Be certain your leasing team works their key prospects consistently while continuing to be “professionally persistent”. Ask your leasing team to work like “heart surgeons”. A heart surgeon can apply a little pressure in a small area and get giant results. The same thing will happen for your leasing teams when they see the results of focusing on their key prospects. 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 type of information to put on your activity boards and how to develop a performance ranking report for the properties you manage, using a one-page form.

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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 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

List of Improving Housing Markets Rises to 263 Metros in June The number of U.S. housing markets on the mend rose by five to a total of 263 in June, according to the National Association of Home Builders/First American Improving Markets Index (IMI), released today. The list includes entrants from 49 states and the District of Columbia. 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. Twenty-nine new markets were added to the list while 24 others were dropped from it this month. New entrants included such geographically diverse metros as Salinas, Calif.; Sioux City, Iowa; Chicago, Ill.; Topeka, Kan.; Baton Rouge, La.; Laredo, Texas; and Philadelphia, Pa. “This is the fifth consecutive month in which the IMI has designated more than 70 percent of U.S. metros as improving,” observed NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “While that’s a good sign that the housing recovery is on solid footing, we know that various challenges are slowing its progress – including con-

tinuing issues with credit availability for builders and buyers, as well as appraisals that aren’t keeping up with the rising cost of construction.” “As market conditions improve across most of the country, some metros have moved onto the IMI list while marginal seasonal fluctuations have nudged others off of it,” noted NAHB Chief Economist David Crowe. “This is to be expected as the recovery expands. Meanwhile, it’s worth noting that the number of improving markets is now more than three times what it was in June 2012.” “The continued strength of the IMI is an indicator of the ongoing, positive momentum in housing markets nationwide as consumers move to take advantage of historically favorable interest rates and affordable home prices,” added 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 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 263 metros currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in June, is available at www.nahb.org/imi. www.nahb.com

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HUD Renews Funding for Seattle's Downtown Emergency Service Center to Prevent Homelessness Among Persons with HIV/AIDS Housing and Urban Development (HUD) Secretary Shaun Donovan and HUD Northwest Regional Administrator Mary McBride recently announced the renewal of $636,640 to the Downtown Emergency Service Center under HUD's Housing Opportunities for People with AIDS (HOPWA). The Center's three-year renewal award was part of a national announcement providing $32.3 million in HOPWA funds to 30 projects in 20 states. The HOPWA funds will enable the Downtown Emergency Service Center to continue providing post-incarceration housing and support services very low-income families experienc-

ing AIDS/HIV in Seattle through 10 facility based housing units, three respite beds serving up to 25 households a year, and housing case management services. The Center offers the service with support and collaboration from Evergreen Treatment Services, (ETS); Compass Center; King County jail; and the Washington State Department of Corrections. "These grants will provide our local partners with crucial funding that is necessary to provide individuals and families living with HIV/AIDS a place to call home," said Secretary Shaun Donovan. "The comfort of knowing that you have a roof over your head makes a huge difference

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in the wellbeing of families and gives hope to those who might otherwise end up living on the streets. For those they serve, this program is the difference between a life well-lived and a life on the streets." "The Northwest in has a long, proven track record of developing cutting-edge solutions to some of our most vexing problems. and serving some of our most vulnerable populations," said HUD Northwest Regional Administrator Mary McBride. "We are pleased to continue supporting the very good work of organizations serving people with AIDS/HIV like the Downtown Emergency Service Center." Many of the projects receiving renewed funding provide for specialized models in outreach and service delivery, including efforts that target help to persons who have been homeless or are at extreme risk of becoming homeless. The awarded programs are designed to increase coordination with the homeless assistance grant programs as well as other federal resources provided at the local level. These grants offer innovations

in HIV care to increase job readiness and employment opportunities for persons in stabilized care. The grants announced today also support the Obama Administration's Opening Doors, strategic plan to prevent and end homelessness, and National HIV AIDS Strategy, that identifies Housing as a key component to preventing the spread of HIV. In addressing goals under these strategies, HUD will contribute a variety of housing resources to promote better integration of housing interventions into comprehensive HIV care systems. Housing assistance and related services funded by HOPWA are an essential part of the comprehensive system of care for low-income persons living with HIV/AIDS. A stable home environment is also vital for these households in allowing them to access consistent medical care and maintain their health. Furthermore, secure housing can be a platform for improved quality of life. Ninety percent of HOPWA funds are distributed by formula to cities and states based on the number of Continued on page 21

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ON-SITE HUD ...continued from page 20 AIDS cases reported to the Centers for Disease Control and Prevention. HUD's formula grants are managed by 138 local and state jurisdictions, which coordinate AIDS housing efforts with other HUD and community resources. Overall, these resources assist over 60,000 households annually to provide stable housing and reduced risks of homelessness for those living with HIV and other challenges. HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD

is working to strengthen the housing market to bolster the economy and protect consumers; meet the need for quality affordable rental homes: utilize housing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does business. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www. facebook.com/HUD. or sign up for news alerts on HUD's News Listserv.

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The Changing ...continued from page 17 formance bar and has become a part of the regular activity in this industry. Property managers are highly skilled professionals who now merge the latest gadgets and software with management skills and real estate knowledge. Companies who train their employees and support this wave will reap the benefits immediately. This rush to technology has freed property managers to explore their field and connect with people in the field. However, the ability to grasp new technologies hasn’t transformed the essence of the business or real estate. Technology has changed the operations and communication lines but real estate is still an industry of relationships. Software and cell phones can’t change that. Elena Tangman-Wells, Executive Vice President, has been associated with Bluestone & Hockley since 1993. She started her real estate career with B&H

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and now oversees Residential, Community Association Management and Maintenance departments-three of the six departments of the company. She has a strong background in many aspects of property management including enforcement of the landlord/tenant laws, general maintenance, financial management, and resident manager training. As a senior member of the corporate management team, Elena’s focus has been the development of our “best practices.” She sets company policies, procedures and training programs to insure that Bluestone & Hockley Real Estate Services stays one of Portland’s most successful property management firms. She firmly believes that the company’s mission to be “A Better Real Estate Experience” is achieved through staff education and development and a commitment to providing excellent customer service.

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