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

ON-SITE

Professional Publishing, Inc www.TheLandlordTimes.com

On-Site

Getting Tenants To Care

page 22

Management

Maintenance

Landlord/Tenant Law

Concrete Answers

page 13

Sept 2013

page 7

SEATTLE • TACOMA • OLYMPIA • EVERETT 17,000 Papers Mailed Monthly

Vol. 22 Issue 9

Published 21 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

Apartment Industry Applauds President Obama’s Call for a Strong Multifamily Sector

The Landis Bomb Part 2 of 2 Last month I brought the bad news in what I hope, is a worst case scenario that we never realize. I am not optimistic. I have no doubt that a host of diligent attorneys will be working hard to limit the scope of the Landis decision by arguing that it can only be read to allow a tenant to back out of a contract initially or other similar limitations. The problem is that I have already seen attorneys for the tenants arguing exactly what I posited in the first part of this article.

WASHINGTON, D.C. - Statement from the National Multi Housing Council (NMHC) and National Apartment Association (NAA) by Cindy Chetti, NMHC Senior Vice President of Government Affairs, in response to President Obama’s speech today on housing finance reform:. “We applaud President Obama’s decision to make housing a priority in his economic initiative and support his efforts to advance housing finance reform. We are encouraged that he explicitly acknowledged the importance of rental housing and that the federal government has a critical role to play. Before the housing bubble burst, too often policyContinued on page 3

Apartment and Condominium Market Gains Momentum in Second Quarter August 29, 2013 - Production of apartments and condominiums gained momentum in the second quarter of 2013, according to the latest Multifamily Production Index (MPI), released today by the National Association of Home Builders (NAHB). The index increased nine points to 61, which is the highest reading since its inception in 2003. The MPI measures builder and developer sentiment about current conditions in the apartment and condominium market on a scale of 0 to 100. The index and all of its components are scaled so that any number over 50 indicates that more respondents report conditions are improving than report conditions are getting worse. Continued on page 7 Professional Publishing, Inc PO Box 30327

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The truth is that if we do not fix this legislatively then even if good arguments for limiting Landis are successful, they will be applied locally only and ad hoc until and unless the issue makes it back to the Court of Appeals. That requires some landlord be the victim of a bad Court decision that fails to limit Landis, that the landlord has a point to prove that is more important than the money an appeal will cost and also has the money to follow through Continued on page 5 Page 6 Chapter 27

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Government Affairs – Critical to Page 17 Washington Apartment Association

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makers only thought about homeownership when talking about housing policy. “As Congress considers housing finance reform, it must avoid a “onesize-fits-all” approach. Unlike single family, the multifamily market uses commercial mortgage debt products. Imposing single family market reforms on the multifamily sector could undermine the ability to provide rental housing to millions of Americans, including student housing, seniors housing, affordable housing and military housing. “We look forward to continuing to work with the Obama Administration and Congress to create a multifamily housing finance system that features a market dominated by private capital but also includes a federal guarantee for stability and liquidity in all economic cycles. Doing so will ensure the apartment industry can continue to serve our 35 million residents, support millions of jobs and strengthen communities all while protecting the nation’s taxpayers.”

org/GSEReform. 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

More information about the GSEs, including the NMHC/NAA key principles for housing finance reform, is available at www.nmhc.

or carole@naahq.org or www.naahq. org/governmentaffairs.

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On-Site Northwest • September 2013

ON-SITE Landis Bomb ...continued from page 4 with the appeal. Let us not overlook the fact that the hypothetical appeal would also have to be successful. Washington Apartment Association has already gotten a sponsor for the legislation that we will be proposing but legislation very frequently takes years of attempts before being successful. If it ever is. That being said, how do we protect ourselves now? First, is to do your professional best to limit any habitability issues in your rentals. You need to be proactive in that approach. It is no longer sufficient to expect your tenant to have to notify you. That means sending out periodic letters asking your tenants if they have any habitability issues. Perhaps quarterly you inquire in writing. In your writing it will not be enough to just ask and leave it at that. Require that if they do not inform you of any habitability issues within a specific number of days (which you will choose and inform them) it will be assumed that there are none. Next, you may wish to inspect the property periodically. Again, perhaps quarterly. You do not want to do this so often as to make an argument for your tenant that you are harassing them. Keep copious notes and address those things that the Residential Landlord Tenant Act considers to be landlord duties with extra scrutiny. Document all your conversations and phone calls with your tenant which relate to maintenance and habitability issues. That means memorialize them after the fact. If your tenant calls and talks with you about a maintenance issue, for example, follow up with a writing of some kind that says per our phone conversation of X date and time, it is my understanding that… (fill in the blank). Make sure the writing says that it is the tenant’s responsibility to contact you within a certain specified time period if your understanding is not correct.

Do not short sheet your initial walk through. Get there before the tenant 2 hours early if you must and go through the place with a fine tooth comb then review it all when your new tenant arrives. Do not take any shortcuts in documenting what is both bad and good about the condition of everything. It is not good enough to just check a box. Digit photos are cheap, easy to store and available to everyone. Do not skimp. All this is sound advice with or without Landis. I would add something new in my recommendations however. I think you should require in your contract, as a material requirement of the contract, that your tenant updates your walk through and signs a second time a week or maybe two weeks after moving in. Do not just leave it with them to get back to you. Set an appointment to get it. If you do not, start the tenancy out with a 10 day notice to comply with that provision or vacate. That will certainly make a statement to your tenant that will let them know you are serious about the other clause you want in your contract. Require in writing that all habitability/ maintenance issues must immediately be reported to you in writing. That, however, does not replace the need to proactively ask for those reports.

cially viable. Making it unnecessarily hard on hard working landlords does no favors for tenants either. Landis & Landis Construction, LLC, an Oregon limited liability company vs Nicola Nation d/b/a Nation Management, 286 P.3d 979 (Wash. App Div. 1 2012). Rob W. Trickler Attorney and Counselor at Law President Landlord Association of the North Sound President Washington Apartment Association

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Remember, written records are only good as long as you keep and maintain them. Your letters, notes, emails etc. Keep all of those things as if you are running a business. That is exactly what you are doing. The truth is you may also have to consider how to prepare yourselves for the possibility of an eviction going to trial, both the extra time and expense. That may mean revisiting rents, deposits, operating capital and/or simply being less willing to allow your tenant to get behind as far as you otherwise might. That is the unfortunate reality that the advocates for tenants often miss. Ultimately if affordable housing is going to be available, providing it has to be finan-

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perating expenses in 2012 vs. 2011 were up within a range of $.47 to $1.26 per square foot of rentable area for all types of Section 221(d)3 federally subsidized properties. In contrast, Section 8 Elderly/Handicapped housing experienced operating expense declines ranging from $0.14 to $0.99 per square foot. Depending upon building type, operating expenses for Section 202 properties as well as those in the Section 236 and Section 8 Family categories either were up (within a range of $0.30 to $2.28 per square foot) or down (within a range of $0.12 to $1.22 per square foot).

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previous year’s operating data for more than 1,012 high-rise (elevator buildings), low-rise and garden-style properties nationwide – containing 88,099 units – that receive one of six types of federal assistance: HUD Sections 202, 221(d)3, 236, Section 8 Elderly/Handicap and Section 8 Family and Rural Development Section 515. It is designed as a benchmarking and planning tool to help owners and managers of subsidized housing make detailed, accurate comparisons of the performance of properties in their portfolios. It also can be used as a resource for developing appraisals, acquisition or sales proposals, feasibility studies and loan requests. NET INCOME EXAMINED In terms of net income by subsidy type, Section 202 building categories in 2012 ranged from $3.79 to $7.40 per square foot; Section 221(d) 3 buildings ranged from $4.74 to $6.56 per

square foot; Section 236 buildings ranged from $2.94 to $4.14 per square foot; Section 8 Elderly/Handicapped buildings ranged from $4.84 to $7.25 per square foot; and Section 8 Family buildings ranged from $4.41 to $5.88 per square foot. OTHER STUDY HIGHLIGHTS Utility costs for federally subsidized multifamily buildings were both up and down in 2012 from the year earlier. Increases ranged anywhere from $0.02 to $0.70 per square foot whereas decreases ranged from $0.02 to $0.39 per square foot. Section 8 Elderly/Handicapped garden buildings reported the lowest utility costs at $0.78 per square foot. Section 202 elevator buildings reported the highest such costs at $2.63 per square foot.

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ON-SITE Market Gains Momentum The MPI provides a composite measure of three key elements of the multifamily housing market: construction of low-rent units, marketrate rental units and “for-sale" units, or condominiums. In the second quarter of 2013, the MPI component tracking builder and developer perceptions of market-rate rental properties rose six points to 67, the 11th straight quarter above 50; for-sale units had a significant increase of 16 points to 58, which is the highest reading since the second quarter of 2005; and low-rent units increased five points to 60. “Multifamily developer confidence is currently at an all-time high according to our survey results, and we expect to see that continue for the foreseeable future,” said W. Dean Henry, CEO of Legacy Partners Residential in Foster City, Calif., and chairman of NAHB’s Multifamily Leadership Board. “Much of the consumer demand that we are now seeing is coming from a large generation of young people who are able to find jobs and establish their own households as the economy continues to improve.” The Multifamily Vacancy Index (MVI), which measures the multifamily housing industry's perception of vacancies, rose four points to 42. With the MVI, lower numbers indicate fewer vacancies. After peaking at 70 in the second quarter of 2009, the MVI improved consistently through 2010 and has been at a fairly moderate level since 2011. Historically, the MPI and MVI have performed well as leading indicators of U.S. Census figures for multifamily starts and vacancy rates, providing information on likely movement in the Census figures one to three quarters in advance.

...continued from front page

“The apartment and condo sector continues to expand production,” said NAHB Chief Economist David Crowe. “This increased level of activity is needed to meet current demand and to compensate for a serious lack of new units developed during the housing downturn.” For data tables on the MPI and MVI, visit www.nahb.org/mms.• The City currently has a 55.7% recycling rate and the goal is 60% by 2015. Almost one-third of the garbage is food waste, which makes it a hot focus for diversion. So the green food and yard waste cart has good benefits, but how to you get tenants to use it? This is the million-dollar question that comes up at every City of Seattle Friend of Recycling and Composting (FORC) training where managers and resident leaders tell stories of finding pop cans and cardboard in the garbage or food waste in the recycling cart where it so does not belong. Early in 2013, Seattle Public Utilities (SPU) sent out a survey to tenants to learn more about their food waste habits and concerns. Seattle properties of five or more units were the target audience. Over 1,650 residents responded and here is some of their feedback: • Signs, flyers, and posters at the building improve participation. SPU provides free common area/outdoor laminated posters, food and yard waste flyers and “Where Does It Go?” flyers for units, and labels for outdoor containers. If you don’t have these materials, go to www.seattle. gov/util/recyclingeducation or call 206.684.8717, press #2 and leave a message requesting an order form.

• The Curb Waste & Conserve newsletter from Seattle Public Utilities is correlated with greater participation by over 600 survey respondents. Make sure to distribute this free seasonal newsletter to your residents – it will boost your recycling and food sorting rate and reduce your garbage! • Older residents recycle and compost more. If your population is middle-aged or senior you can expect that they will be more willing to participate. Make the effort to provide signage, carts, flyers, and training so your garbage will go down. Senior facility “commercial” kitchens are prime opportunities to reduce waste and save money. SPU provides kitchen containers to help with sorting. Leave a message at 206.684.8717, press #2. • 16% of respondents reported not being able to find the food and yard waste cart. Although it’s the law, many tenants couldn’t find it. Resident comments indicated frustration and the desire to participate. Food waste collection combined with improved recycling can reduce your garbage service and save you money. Need assistance to make it work? Call 206.684.8717, press #2, and leave a message.

• 71% of residents with access to food/yard carts use them at least once a week. Way to go! Our city is a national recycling leader and proud of it. Celebrate your tenants helping Seattle make the goal. • Inconvenience is a primary barrier. If the recycling or food waste cart is too hard to find or too far away, residents won’t participate. Consider grouping your food/yard, recycling, and garbage containers outdoors so people have convenience. Notify tenants where the carts are through new tenant orientation, posters or email/newsletters. SPU provides free indoor small food and yard waste carts for high rises so tenants don’t have to go down 20 floors to get to a cart. Leave a message at 206.684.8717, press #2, if interested. • Odors and pests put tenants off. Surprisingly, SPU has received almost no reports of increased rodents due to a food and yard waste cart. Remember, the food waste has been in the trash can forever; now it’s just re-located. The SPU- provided cart liner will help keep the cart clean which reduces odors. For tips on keeping food contained and flies and odors down, go to www.seattle. gov/util/apartmentfoodwaste.

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Washington Multi-Family Housing Association

Executive Director • Jim Wiard President • Jay Olson Vice President • Joe Manca Past President • Cassandra Haavisto

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Customer Service – A Forgotten Skill?

t our recent quarterly Membership Meeting, speakers Josh McDonald from Holland Partner Group and Jill McNiesh from FPI Management gave a presentation on the value and benefits of new, modern technology that has changed the way we do business in property management. Trends impacting our industry such as social media, web advertising and mobile technologies have allowed the housing prospect to access information and make informed decisions before ever calling the property or stepping foot on the community. A company or property’s online marketing presence as well as online reputation has never before been so essential to business. In “the old days”, prospective renters would grab a rental magazine from Albertsons or Fred Meyer, look through pages of property names, logos, generic amenity information and photos of monument signs, and call properties they thought met their location or price needs. Trained Leasing Agents would answer the phone with a smile and attempt to offer enough information to entice the prospect to visit the property. Prospects would then drive out to properties, rental guide in tow with yellow highlights or Post It sticky notes, and either drive through a property or stop into a rental office to ask questions about an available unit. According to Josh McDonald, the media landscape has shifted dramatically to digital in the past few years, and particularly to mobile device access. Responsive website design, search engine optimization and search engine marketing are not a thing of the future, they are a necessity right now, and your competition likely already has made changes to their marketing strategy to utilize new technology to attract this modern user. “If you’re not already utilizing these new strategies, we at Holland thank you, because we are” Josh said jokingly. These days, prospective renters have all the information they need at their fingertips or in the palm of their hand. They have likely been referred to a property by a friend or a friend of a friend, have spent a great deal of time scouring information about services, prices, customer reviews and viewed dozens of photos of your property and your competitors’. They have multiple tools to gather information matching their needs and desires, and will have narrowed their search dramatically before ever choosing to make contact with your community. They may have even made their purchase decision before 8

ever coming onto the property for the first time. According to Jill McNiesh, your online reputation is more important than ever. Ratings and reviews are more easily obtained than before, and are given more credibility than before. Prospects will make their decision to lease or not lease based upon their perception of reviews of people they do not know but perceive to be similar customers to themselves. To quote Warren Buffett, “It takes 20 years to build a reputation, and five minutes to ruin it. If you think about that, you’ll do things differently.” Although new and changing technology is amazing, technology is meant to streamline processes, make things easier and more efficient, but not meant to substitute for good old fashioned customer service. Jill stated that social media platforms are a great way to extend the feeling of “community” beyond your resident events and really show what living at your community is all about – it gives prospects an opportunity to see your community’s “personality”. It also allows your residents to access your staff when it’s convenient for them, through the same channels they’re already using to communicate with family, friends and other brands. “We’re seeing that social media is becoming more than just a warm fuzzy feeling for our residents. It is a valuable resident retention, referral and even rental tool. With social media and review sites, prospective residents are getting a glimpse of your customer service before they ever come to tour a property.”

“Once you’ve used all the great techy tools Josh discussed, what will actually make your prospects rent from you? What makes you stand out? Hopefully it’s your customer service. And that starts at the very beginning of a potential customer’s search – by implementing tools to make their search easier, giving them the info they want and making it easy for them to take the next step. But it doesn’t stop there. Make sure you continue to deliver 5-Star service with every interaction, starting even before they step foot on your property.” People might forget what someone said or what someone did, but they likely will not forget how someone made them feel. To expand on the topic of creating great customer experiences in light

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of the changing generational environment, WMFHA will feature seminars this quarter on superior leasing techniques as well as employee motivation and empowerment. Our goal as an association is to inspire out of the box thinking, and to provide skill-building through educational opportunities to support career development so that our member companies and employees can be successful. We are always looking for talented speakers and desired topics to share with industry professionals.

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Jill advised the over 100 WMFHA members in attendance that there’s great customer service – which in this day and age is expected, and then there’s the customer experience. Jill noted that 78% of consumers have bailed on a transaction or not made an intended purchase because of a poor service experience. Her advice - focus on your customer. When the phone rings, minimize the screen on your computer. Put your work aside. Focus on that phone call. The same advice applies when someone – anyone – walks into your office. Focus on what’s right in front of you in that moment. In a recent study, American Express reported that U.S. customers will spend 9% more with companies that provide great customer service. And above all, love what you do. According to an article in Forbes from 2011, happy employees are 50% more motivated. To quote Jim Senegal, cofounder and former CEO of Costco, “when employees are happy, they are your very best ambassadors”. On-Site Northwest • September 2013

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How do, you as a property manager, respond when a potential applicant asks you for information about the racial, ethnic, religious or family composition of an available unit, neighborhood or complex? Think of your response carefully. Such questions don’t necessarily mean that the questioner has the intent to discriminate, so we need to think seriously about how to handle these situations. Some landlords take the stance that such questions should be answered by “telling the truth”. That approach has downsides. First, what is the truth? Hearsay is not truth. Something that may have been true at one time may no longer be true now, and there is always our individual disputed version of “the truth”. This version is based on our own life experiences and is rarely exactly the same as other people. In sports, we have independent authority figures, referees, which use their experience in the sport and knowledge of rules to decide what actually happens. However, in a landlord/ tenant interaction, when a prospective applicant asks about the composition of the population in a neighborhood, chances are that neither other versions of “the truth”, nor a referee, are usually present. Next, even with what may seem to be a “truthful” answer, if the result is discrimination, then you have violated the fair housing laws. Intention is not the problem -- what happens

is. If you accidently break fair housing laws, you are still likely to cause unintentional pain and suffering. The bottom line is breaking the law is breaking the law, no matter intent. The most cautious approach to these kinds of questions is to explain what’s required of you under the law and the potential effects they may have on both you and the prospective tenant. By simply stating the state and federal laws you may be able to appease the questioner. You may also let them know that you do not have the information to give them, nor will you be gathering that information, because it has no bearing on renting the property. What if you are the agent for the property owner and your client suggests that you should avoid renting the property to someone in a protected class? It is our fiduciary responsibility as their property manager to protect them. Explain to your client that making decisions based on discriminatory practices may violate fair housing laws and could subject them to substantial penalties. The have hired you to do a job, so make sure you’re doing it properly and within the laws to protect yourself and the client, regardless of whether they like it or not.

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.com.

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HUD AWARDS $1.7 BILLION TO IMPROVE, PRESERVE PUBLIC HOUSING Housing authorities across the U.S., territories use funding to maintain housing for families, seniors WASHINGTON – U.S. Department of Housing and Urban Development Secretary Shaun Donovan today awarded $1.7 billion to public housing authorities in all 50 states, as well as the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands, to make major large-scale improvements to the nation’s 1.2 million public housing units. View funding by public housing authority here. Today’s grants are provided through HUD’s Capital Fund Program, which provides funding annually to all public housing authorities to build, repair, renovate and/or modernize the public housing in their communities. The authorities use the funding to do large-scale improvements to the housing such as new roofs or to make energy-efficient upgrades to replace old plumbing and electrical systems. “This funding is critical for housing authorities to maintain and improve public housing conditions for their residents,” said Donovan. “However, with a significant repair backlog, I am encouraged by new, innovative long-term solutions HUD is exploring that can be combined with this funding to not only protect and preserve this housing for the next

generation, but to also build the quality infrastructure necessary for families to thrive.” Capital Fund grants are awarded annually to the nation’s approximately 3,100 public housing agencies through a formula that considers number, type and age of units in a community. Eligible uses for this funding include development, financing and modernization of the public housing units as well as management improvements at the public housing authority. Over the past 75 years, the federal government has been working and investing billions of dollars in developing and maintaining public and multifamily housing – including providing critical support through the Capital Fund grants announced today. Still, the nation continues to lose approximately 10,000 public housing units annually, primarily due to disrepair. In 2011, HUD released Capital Needs in the Public Housing Program, a study that estimated the capital needs in the public housing stock in the U.S. The study found the nation’s 1.2 million public housing units are facing an estimated $25.6 billion in large-scale repairs. Unlike

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routine maintenance, capital needs are extensive improvements required to make the housing decent and economically sustainable, such as replacing roofs or updating plumbing and electrical systems to increase energy efficiency. To help protect the considerable federal investment and respond to the growing demand for affordable rental housing, the Obama Administration proposed the Rental Assistance Demonstration (RAD), a comprehensive strategy that complements the Capital Fund Program and offers a long-term solution to preserve and enhance the country’s affordable housing stock, including leveraging public and private funding to make critically needed improvements. Since Congress approved the demonstration, early results show it is

already generating additional capital for public and assisted housing. After opening RAD application periods last summer, HUD has approved or given initial approval to nearly 20,000 public and assisted housing units in 180 different projects across the country. Through these awards, housing authorities have proposed to generate close to $816 million in private debt and equity investments to reduce the capital backlog in public housing properties, which will preserve or replace distressed units and support local jobs in their communities – all without additional federal resources. HUD also recently issued new RAD guidance that expands the program’s flexibility that will benefit current and future applicants and participants. The FY2013 Public Housing Capital Funding by state:

State Alabama Arizona California Connecticut District of Columbia Georgia Hawaii Illinois Iowa Kentucky Maine Massachusetts Minnesota Missouri Nebraska New Hampshire New Mexico North Carolina Ohio Oregon Puerto Rico South Carolina Tennessee Utah Virgin Islands Washington

Amount 52,519,473 7,463,449 69,368,607 20,575,287 13,677,447 62,681,434 9,066,970 119,818,353 4,530,750 30,461,209 5,171,568 50,360,442 27,386,413 26,213,893 7,550,240 4,704,772 5,382,243 48,626,554 74,896,934 8,269,584 101,468,521 19,177,868 49,540,429 2,245,973 5,055,400 26,083,288

State Alaska Arkansas Colorado Delaware Florida Guam Idaho Indiana Kansas Louisiana Maryland Michigan Mississippi Montana Nevada New Jersey New York North Dakota Oklahoma Pennsylvania Rhode Island South Dakota Texas Vermont Virginia West Virginia

Amount 1,996,710 16,801,739 9,948,853 3,580,287 47,589,476 1,089,579 868,855 20,862,415 9,563,595 37,325,904 25,773,863 30,044,397 19,248,499 2,498,983 5,191,721 57,157,529 307,029,645 2,000,584 14,420,904 117,380,587 11,724,298 1,565,032 71,408,057 2,087,566 27,695,820 7,838,109

Wisconsin

14,578,892

Wyoming

806,929

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 http://espanol.hud.gov. You can also follow HUD on twitter @ HUDnews, on facebook at www.facebook.com/HUD, or sign up for news alerts on HUD’s Email List On-Site Northwest • September 2013

ON-SITE

New Construction Starts to Climb 6% in 2013, Says McGraw Hill Construction Housing continues to lead the upturn, accompanied by modest gains for commercial building and public works, but institutional building remains in retreat NEW YORK, Aug. 12, 2013 /PRNewswire/ -- New construction starts are forecast to rise 6% this year to $506 billion, according to the Midyear Update to the 2013 Construction Outlook from McGraw Hill Construction (http:// construction.com/), a division of McGraw Hill Financial (NYSE: MHFI). This is the same rate of increase for total construction starts that was predicted last October, and follows the 8% gain that took place in 2012. (Photo: http://photos.prnewswire.com/prnh/20130812/NY62740 ) "The recovery for construction continues to unfold in a selective manner, proceeding against the backdrop of the sluggish U.S. economy," stated Robert A. Murray, vice president of economic affairs for McGraw Hill Construction. "While the degree of uncertainty affecting the economy seems to have eased a bit from last year, tight government financing continues to exert a dampening effect on both the economy and the construction industry. On the positive side for construction, the demand for housing remains strong, market fundamentals for commercial building are strengthening, and lending standards for commercial real estate loans continue to ease gradually. On balance, the recovery for construction is making progress, but at a single-digit pace given the mix of pluses and minuses by major sector." Following are the main points by sector for the 2013 construction market: • Single family housing will advance 28% in dollars, corresponding to a 24% increase in the number of dwelling units to 640,000 (McGraw Hill Construction Dodge basis). The inventory of new homes for sale is currently very low, which should spur more construction, and home prices are heading upward. The recent increase in mortgage rates has raised concern, but rates remain near historic lows and have not significantly affected affordability for most potential homebuyers.

To secure a copy of the Midyear Update, visit: http://analyticsstore.construction.com/index.php/outlook/2013-dodge-construction-outlook-midyearupdate.html?sourcekey=PRESREL About McGraw Hill Construction: McGraw Hill Construction's data, analytics, and media businesses – Dodge, Sweets, Architectural Record, and Engineering News-Record – create opportunities for owners, architects, engineers, contractors, building product manufacturers, and distributors to strengthen their Continued on page 16

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• Multifamily housing will climb 23% in dollars and 20% in units, helped by the gains reported for occupancies and rents over the past year. Major metropolitan areas such as New York continue to see groundbreaking for large apartment projects, along with the re-emergence of large condominium projects.

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• Commercial building will grow 15%, after the 11% increase reported for 2012, although this year's level of activity in dollar terms will still be 39% less than what was reported during the 2007 peak year. The pace of store construction is picking up, joining earlier gains registered by warehouses and hotels. The increase for office construction will remain relatively subdued in 2013, as more privately financed office projects are countered by fewer government office buildings. • The institutional building market will slide an additional 5%, after falling 10% in 2012. While state fiscal health has shown some improvement, state and local budgets remain tight, further dampening school construction. Uncertainty related to hospital mergers and the implementation of the Affordable Care Act is restraining construction of healthcare facilities. • The manufacturing building category will drop 8%, as firms hold back on plant investment given the sluggish U.S. economy and slow export markets.

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• Public works construction will rise 3%, helped by growth for highways and bridges. The transportation sector was largely exempt from the federal spending cutbacks under the sequester, and the current year is seeing a number of large bridge projects reach the construction start stage. • Electric utilities will see a 40% plunge in the value of new construction starts, following the record high that was achieved in 2012 which included the start of two large nuclear facilities. With new generating facilities coming on line and capacity utilization rates dropping, the near term is seeing downward pressure on new power plant construction. In addition to the Midyear Update, Murray is the author of the annual Dodge Construction Outlook, providing a look at the year ahead, which is released each October at McGraw Hill Construction's Outlook Conference in Washington, DC. For more information about the conference, visit http:// Outlook2013DC.com/. Member: BBB (A+ rating) and Angie’s List (Super Service Reliability Award 2012

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On-Site Northwest • September 2013

Experience. Solutions. Results. C

R FO

S LL R A OFFE

PENDING

FOR SALE

SOLD

Village at Seeley Lake

Stoney Creek

Kenny Dudunakis & Jim Jensen

Lakewood – 522 units

Lakewood – 231 units

SOLD Chelsea Heights Tacoma – 78 units

Sold: $18,800,000

Kenny Dudunakis & Jim Jensen

SOLD

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Chehalis Avenue

Kenny Dudunakis, Marty Leith & Jim Jensen

Robert Di Pietrae & Jim Jensen

Tacoma – 36 units

Lauriston / Kensington

Tacoma – 25 / 38 units Jim Jensen

Jim Jensen, CCIM, Senior Vice President Jim Jensen, CCIM, Senior Vice President Jim CCIM, Senior Vice President 4041Jensen, Ruston Way, Ste. 103 | Tacoma, WA 98402 253-509-7157 | jjensen@hpapts.com 4041 Ruston Way, Ste. 103 |Way, Tacoma, WA 98402 WA 98402 4041 Ruston Ste. 103 | Tacoma, | jjensen@hpapts.com 253-509-7157 |253-509-7157 jjensen@hpapts.com Kenny Dudunakis, Senior Partner Kenny Dudunakis, Senior 600 University Ste. 1625Partner | Seattle, WA 98101 Kenny Dudunakis, SeniorStreet, Partner 206-521-7216 | kdudunakis@hpapts.com 600 University Street, Ste. 1625 | Seattle, WA 98101

Kenny Dudunakis, Senior Partner

On-Site Northwest • September 2013

Tacoma – 41 units

600 University Street, Ste. 1625 | Seattle, WA 98101 206-521-7216 | kdudunakis@hpapts.com

Price: $2,275,000

Kenny Dudunakis & Jim Jensen

Chehalis – 60 units

SOLD Sold: $8,200,000

Emerson

PENDING

FOR SALE Bella Vista

Sold: $21,500,000

Sold: $2,012,000

SOLD Sold: $3,480,000

Bayview West

Bremerton – 24 units

Sold: $1,300,000

Jim Jensen

We would like WeWe would like would like to thank our clients to thank our to thank ourclients clients for representation representation foronfor representation these multi-family these multi-family We would like on on these multi-family transactions. transactions. to thank our clients transactions. for representation on these multi-family transactions.

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Cabinets Tenant(s) Tenant(s) certify that the above pet(s) are the only pet(s) on the premises. Ceilings understands that the additional pet(s) are not permitted unless the landlord gives ten Sink ant(s) written permission. Tenant(s) agree to keep the above-listed pets in the premises Electrical Outlets subject to the following terms and conditions: Floor Garbage Cans

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On-Site Northwest • September 2013

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

WAA Adds Free Services and Support for Individual

Do you need good vetted forms for managing your rentals? Would you appreciate having an attorney help line at no cost and with attorneys practicing landlord tenant law in your area? Washington Apartment Association (WAA) has added both of these for our members and we have opened membership up to individuals. Individuals can now have a membership to WAA for an annual fee of $45. If you’re a member of a landlord association that has a membership with WAA you are already a member of WAA but if not then you now have more options. For less than the cost of one Latte’ a month you can have one of the best lobby teams in the state in your corner; print a slew of forms such as notices; contracts and addenda at no cost; call up an attorney to answer your specific questions; and manage your rental with piece of mind and a strong resource. We have updated our website to allow members to subscribe to email notifications every time we post something new so that our members can get information

and legislative updates more rapidly and without having to rely on someone forwarding you the right email. In the near future were adding even more resources. For a small fee you will be able to use an on line resource to help do your books so you don’t have to buy software or do the books by hand. Also coming, you will be able to create notices with automatically populating tenant information so you can create notices without having to write or type in the information. A new publication is on the way as well. We still encourage membership in WAA by virtue of being one of our local group members where you can get the local support that can make a big difference in a landlord’s success. As such, you pay even less for a membership in WAA by virtue of belonging to one of our local members. We simply don’t want to leave individual landlords across the state without support or a voice… or a choice. WAA

taking

approach to adding new resources for landlords and improving the way we reach those landlords but what we have not changed is our dedication to a diversified, state wide, leadership that insures our members voices and priorities are not determined by one city. We maintain a board whose voting members are made up of groups from all over the state and one in which no one city or area can set the priorities alone. That is a strength we are proud of. Come check us out and gain the strength of numbers and safety in knowledge. For details and membership contact us at 425-609-1876 or email randy@ waapt.org

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

Dear Maintenance Men: We are taking out the old wood closet doors and putting in the mirrored sliding doors. What product would you use to fill where the door hinges were? I need something that dries quickly and won't bleed through the new paint. Kim Dear Kim: We would use a product called Wood Filler by Bondo, then prime the repair followed by two coats of paint. Most two part wood fillers can be applied and be ready for sanding within fifteen minutes and ready for paint in twenty-five minutes. Use a disposable plastic putty knife to apply the filler and begin sanding as the filler starts to harden. If there are any remaining imperfections, apply a second thin skim coat of filler. After rough sanding the high points, use a block or electric sander to smooth and feather the edges.

If you cannot find the brand name Bondo, use any two-part wood filler product found at most hardware and home improvement stores. TIP: It is better to fill in a deep repair with multiple layers verses one big layer. Dear Maintenance Men: I have been hearing a lot about tankless water heaters lately. Are they better than the traditional water heater? Can I use one in my apartment building? Any information will be helpful. Deanna Dear Deanna, That is a good question. A tankless water heater would sure free up some real estate in the laundry room of most apartment buildings. After getting your question, we did a bit of research on the subject. We have all heard the radio advertisements for

various tankless water heaters saving a ton of money each month. That might be true if you don’t consider the cost of the tank less heater & installation. The savings would also depend on the amount of use the heater gets. The tankless heater operates on demand, which means it only uses gas when someone opens a hot water faucet. On its face, that sounds great, but getting ambient temperature water to rise to 110 or 120 degrees in an instant takes a tremendous amount of energy. In theory a tankless water heater should supply hot water for as long as you needed it. If you exceed the heater’s flow rate and use more hot water than it can produce, there will be fluctuations in water temperature. A typical home tankless water heater flow rate is up to 5 gallons a minute. In a single shower setting that should be adequate. But, consider if a second valve is opened such as a dishwasher, laundry machine or even another shower. The flow rate will quickly exceed the heating capa-

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bility of the heater. A commercial rated tankless heater’s flow rate is close to 10 gallons a minute. To meet the demands of a four-plex, you would need at least two commercially rated tankless heaters connected in a series. The tankless water heater cost & installation for an average home use system is between $2,500 and $4,500 depending on intended use or compatibility with existing plumbing. A commercial system for a small apartment building will average between $5,000 to over $8,000 at minimum. The chances are you will pay off your 30-year mortgage before recouping the savings of the tankless water heater. Another issue is service and parts availability. Tankless water heaters are far more sophisticated than a standard tank water heater; therefore the cost of parts and repair will be higher. Bottom line is, we like the tankless water heaters for saving space, but we will still buy a standard tank water heater because of the cost and abundance of hot water available. Dear Apartment Owners: Remember, the holiday season starts with Halloween and the demand on your properties only increases from there. Check each stove and oven for proper operation, many residents only turn on their ovens at this time of year, and the problem may be as simple as a blown out pilot light. With the holidays comes heavier than normal use of the plumbing; it may be a good idea to snake out or hydro jet your main plumbing lines. In addition, send out a note to each resident explaining the proper use of the garbage disposal including what they should and should not put down the disposal unit. A few items to include on this “Do Not” list are: banana peels, potato skins, coffee grounds and any stringy food. Also, make sure they turn on the water before using the disposer and put down small amounts of food at a time. Using the disposer as a trash can and turning it on when full, will lead to a clog. Christmas and other holidays also mean more people than usual walking on your property. Is your property safe? What are some of the liabilities to worry about? Check trip and fall hazards. Do you have sprinkler heads sticking up above the grass near walkways? Use pop-up heads to solve this problem. Look for sidewalks that have been pushed up by tree roots. This can be solved with a concrete grinder or replacement of the concrete section and removal of the tree root. Cut any low hanging tree branches and look for branches that may break in heavy winter wind, rain or snow. Check your decking for cracks or damage and inspect the exterior stairways for wear and tear. Inspect all your garage door springs, winter wind and rain may make them heavy causing the door to close or fall unexpectedly. Check all property lighting and timers. Remember: Preventive Maintenance is cheaper than Emergency Maintenance!

Q UESTIONS ? Q UESTIONS ? 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 On-Site Northwest • September 2013

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Commercial Real Estate Mending Amid Ongoing Economic, Political Uncertainty Q3 Roundtable Survey Shows Fundamentals, Property Values Improving, But Vulnerable to Rising Interest Rates, Economic Headwinds, Looming Policy Decisions WASHINGTON, Aug. 2, 2013 / PRNewswire-USNewswire/ -- Commercial real estate markets continue their gradual, uneven recovery — with investment capital beginning to flow beyond "gateway" and multifamily markets — yet industry executives remain wary about the future amid lackluster job creation; uncertainty over monetary, fiscal and terrorism insurance policy; and rising interest rates, which could lead to deceleration in the pace of property value gains, The Real Estate Roundtable's Q3 Sentiment Survey showed today. The latest survey continues the basically flat trajectory of the past several quarters, with the "Current Conditions" index remaining at 71, the "Overall" index rising 1 point since the previous quarter (to 70), and the "Future Conditions" index rising 1 point (from the 67 points registered in the past two quarters). Although today's figures certainly are in positive territory (being above 50), they also illustrate an erosion of confidence among industry participants as the recovery has dragged on. The Future Index, for example, hit almost 80 in Q2-2010 but slipped below the Current Index around the time

of the 2011 debt ceiling crisis (falling to 75), and now stands at only 68, several points below the Current Conditions reading. "Today's survey indicates a commercial real estate sector and national economy stuck on a plateau of recovery — certainly improved since the worst days of the recession, but not moving forward in any robust way," said Roundtable President and CEO Jeffrey DeBoer. "The slow pace of macroeconomic recovery is directly tied to the 'flatlining' of expectations in our industry, which is why The Roundtable continues to press for an array of federal policies aimed at unleashing investment and job creation," he added. These include proposals to spur foreign equity investment in U.S. real estate and infrastructure — cited by President Obama in his economic speech this week and reintroduced Wednesday by Reps. Kevin Brady (R-TX) and Joseph Crowley (D-NY). The Roundtable also strongly supports legislation to encourage energy retrofits of commercial buildings; progrowth tax reform that preserves real estate's role as an economic driver; and

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balanced immigration reform. [See July 23 real estate letter to U.S. Senators on tax reform] Keeping the U.S. terrorism risk insurance program ("TRIA") in place beyond 2014 is also critical to protecting future credit availability for commercial real estate, and borrowers' ability to refinance maturing debt. At a meeting of U.S. Senators and industry representatives yesterday, DeBoer underscored the vast policy uncertainty that continues to undermine job creation. "The level of uncertainty today continues to be high. Interest rates, health care, tax policy — all are huge question marks for businesses looking to create jobs and expand," he said. On the positive side, a majority of respondents in the Q3 survey continued to view real estate market conditions as having improved at least somewhat over the past year (77% in the current survey, compared to 75% in Q2), and there was a slight uptick (from 62% to 65%) in the number of participants anticipating at least "somewhat better" conditions within the next 12 months. Q3 survey participants also noted increased planning and construction in asset classes outside the multifamily (apartment) segment — as well as increased investor interest outside "red hot" cities such as New York, San Francisco, Dallas and Houston. At the same time, there was a strong undercurrent of caution in the respondents' anecdotal comments. Thus, while prospects are improving in second-tier cities — particularly for "the best assets" and for valueadded deals — the bifurcation that has characterized the industry's recovery over the past four years largely continues. As one respondent said, "Capital is moving up the risk curve in the most popular markets and migrating to the best assets in second tier cities, but for the majority of assets the outlook remains uncertain at best." Echoing these nuanced views of market conditions, another commenter said, "General conditions are good but not terrific. People are still incredibly cautious with their growth plans; everyone is planning on growth, but they are hesitant to take a leap of faith in this economy." Yet another said the "torturous recovery . . . is continuing." On the subject of interest rates, the current survey revealed a similar split in views between current and future conditions. For now, strong capital availability and optimism about better growth have helped to maintain or even improve property values. Looking ahead, however, numerous respondents in the Q3 survey expressed concern about interest rates and their potential to slow the recovery of asset values, which fell as much as 50% in some markets during the Great Recession (wiping out owner equity and leaving many properties "underwater").

for the foreseeable future — signaling this week that "tapering" of the "QE3" program is now less imminent — the risk is that interest rates could begin to rise before property owners' net operating incomes (NOI) have caught up with increasing job creation. Artificially low interest rates are also contributing to artificially high asset prices in some areas, so that a sudden increase in interest rates could wreak havoc with property values and pricing. The Roundtable's Sentiment Index is the industry's most comprehensive measure of leading real estate executives' confidence in financial and real estate markets. The survey, conducted by FPL Advisory Group, captures the perspectives of senior real estate executives, including CEOs, presidents, board members, and other executives from a broad set of industry sectors including owners and asset managers, financial services firms and operators. A PDF of the entire survey report is available online at www.rer.org.

SOURCE Real Estate Roundtable www.prnewswire.com

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HUD AWARDS WASHINGTON STATE HOUSING AUTHORITIES $26 MILLION TO IMPROVE, PRESERVE PUBLIC HOUSING STOCK Housing authorities across the U.S., territories use funding to maintain housing for families, seniors SEATTLE - U.S. Department of Housing and Urban Development Secretary Shaun Donovan today awarded public housing authorities (HA) in Washington State $26 million that will be used to make major large-scale improvements to their public housing units. This funding

is part of $1.7 billion HUD awarded public housing authorities in all 50 states, as well as the District of Columbia, Guam, Puerto Rico and the U.S. Virgin Islands. The following housing authorities

Housing Authority Anacortes Everett Kalama Kelso Kennewick Pasco And Franklin County Renton Sedro Woolley Spokane Sunnyside Tacoma Walla Walla Yakima King County Asotin County Grant County Grays Harbor County Island County Pierce County Whatcom County Bellingham Othello Kittitas County Snohomish County Bremerton Vancouver Kitsap County Peninsula Ha Seattle Washington Total The grant announced today are provided through HUD’s Capital Fund Program, which provides funding annually to all public housing authorities to build, repair, renovate and/or modernize the public housing in their communities. The authorities use the funding to do large-scale improvements to the housing such as new roofs or to make energy-efficient upgrades to replace old plumbing and electrical systems. 20

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“This funding is critical for housing authorities to maintain and improve public housing conditions for their residents,” said Donovan. “However, with a significant repair backlog, I am encouraged by new, innovative long-term solutions HUD is exploring that can be combined with this funding to not only protect and preserve this housing for the next generation, but to also build the Continued on page 21

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Every apartment community has a “reputation” in the marketplace. What your community is known for is based upon a variety of factors. Some of these factors are beyond your control; like the location of your community and the layout of your apartments. Yet, there are certain factors in which you have some measure of control; like your management style and resident profile. However, sometimes the longer a staff has been working at a community the harder it is to be objective. While long term employees can bring stability and consistency to a community, there can be a subtle tendency for the on site staffs to try and lease to only those people who they believe will “fit in,” so as not to upset the “status quo.” Here is a concern that illustrates this point: Q: I have been the resident manager at the same community for over 10 years, and have worked very hard to establish a quality clientele. I am now in a situation where I have more vacancies than I have had in quite a while, but with fewer prospective

renters who match the demographics of my existing residents. I am concerned that if I start renting to everyone who comes through the door, that this will upset my current residents and that I’ll have even more vacant apartments. What can I do? A: First of all, I applaud you for your longevity in the business, especially as an on site manger! Your residents undoubtedly appreciate you and all your efforts to create a quality environment. However, why would you limit such an outstanding community to just a few people who you are “hand picking” to live there? Not only is this practice obviously affecting your leasing ratio, it is a Fair Housing violation! You do not have to rent to “everyone who comes through your door.” Yet, you do have to rent to everyone who “qualifies” based upon certain criteria established by your screening company. Your current method of leasing may be doing more harm than just jeopardizing the occupancy of your building: Should a complaint be

lodged against your community, there is the possibility that you, your employer and also the building owner could be sued for discrimination. By renting to all types of people without regard for their family or marital status, their race, religion, age, etc., you will be in complete compliance with the Fair Housing Act, AND you will create the type of community where everyone feels welcome and wanted. Remember: A quality community + satisfied residents = higher occupancy If you have a question or concern that you would like to see addressed next month or if you would like to inquire about leasing training, please ASK THE SECRET SHOPPER by making contact via e-mail or fax. Your questions, comments and suggestions are ALWAYS welcome!

“Housing authorities in Washington count on this funding to maintain and improve their public housing for many families, especially the most vulnerable – our seniors,” said HUD Region X Regional Administrator Mary McBride. “HUD is currently taking bold steps to preserve this affordable housing.” Capital Fund grants are awarded each year to the nation’s approximately 3,100 public housing agencies through a formula that considers number, type and age of units in a community. Eligible uses for this funding include development, financing and modernization of the public housing units as well as management improvements at the public housing authority. Over the past 75 years, the federal government has been working and investing billions of dollars in developing and maintaining public and multifamily housing – including providing critical support through the Capital Fund grants announced today. Still, the nation continues to lose approximately 10,000 public housing units annually, primarily due to disrepair. In 2011, HUD On-Site Northwest • September 2013

released Capital Needs in the Public Housing Program, a study that estimated the capital needs in the public housing stock in the U.S. The study found the nation’s 1.2 million public housing units are facing an estimated $25.6 billion in large-scale repairs. Unlike routine maintenance, capital needs are extensive improvements required to make the housing decent and economically sustainable, such as replacing roofs or updating plumbing and electrical systems to increase energy efficiency. To help protect the considerable federal investment and respond to the growing demand for affordable rental housing, the Obama Administration proposed the Rental Assistance Demonstration (RAD), a comprehensive strategy that complements the Capital Fund Program and offers a long-term solution to preserve and enhance the country’s affordable housing stock, including leveraging public and private funding to make critically needed improvements. Since Congress approved the demonstration, early results show it is already generating additional capital for public and assisted housing. After opening RAD application periods last summer, HUD has approved

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or given initial approval to nearly 20,000 public and assisted housing units in 180 different projects across the country. Through these awards, housing authorities have proposed to generate close to $816 million in private debt and equity investments to reduce the capital backlog in public housing properties, which will preserve or replace distressed units and support local jobs in their communities – all without additional federal resources. HUD also recently issued new RAD guidance that expands the program’s flexibility that will benefit current and future applicants and participants.

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 http://espanol.hud. gov. You can also follow HUD on twitter @HUDnews, on facebook at www. facebook.com/HUD, or sign up for news alerts on HUD’s Email List.

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Three Important Steps For A Positive And Profitable Employee Review © by Ernest F. Oriente, The Coach {Article #209…since 1995} Can employee reviews really be positive and profitable? You bet! Follow the steps in this article and the changes in your property management company will be felt immediately! How you and your company handle each employee review is a direct reflection of your leadership and the importance of each individual within your property management company.

format, as this makes it easy to read and looks more professional when being presented. Lastly, ask each of your managers to give you a copy of the final review notes, prior to it being formally presented. This gives you an opportunity to assess the quality of the work being done by each of your managers/supervisors and gives you a window for making any changes.

Preparing for each review: Start by establishing the frequency and time frame for your company employee reviews and be certain this is outlined in your administrative guidelines and employee manual. If each review is tied to a person’s anniversary date, keeping track of employee review schedules can be a challenge. Consider doing all reviews during two months of the year, for instance-November and May. Each of your managers should be given a blank copy of the review form required by your property management company, and a list of their team members, who are scheduled for a review. Instruct your managers/supervisors to prepare each review in a typed

Tip From The Coach: In the same way you give a blank copy of the employee review form to your managers/supervisors, give a blank copy of the review form to each person being reviewed. This will give your employees an opportunity to make notes about their performance, prior to each performance review. This step is critical because it allows each of your managers to “see” the gap between their point of view versus their employees’ point of view. This gap is exactly where the best coaching can be done to improve the performance of each person on your property management team. Conducting each review: Since your

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manager and your employee will both be well prepared for this review, the exchange of ideas and the depth of feedback will make for a rich and rewarding meeting. The review should start by having your manager explain how each person’s review is a special time for personal and professional growth and the tone for each review will be both positive and productive. Have your manager begin by reading out loud the first question, then read his/her comments about their employee. Next, their employee should read their comments out loud. After each person has read their response to the first question, then specific feedback should be given by your manager or supervisor, about how the comments are similar and a discussion about any comments that are different. This “gap” leaves room for personal and professional growth and is the perfect place to build action items to be addressed between this review and the next one. After completing the first question, have your manager continue the rest of the employee review, using this format. Tip From The Coach: This review format communicates mutual respect for each employee of your property management company, but it must go one step further. Since the feedback of each employee is important, and since you are requesting their feedback during each employee review, a salary increase must consider the comments from both your manager and your employee. This means a final decision about the size of each person’s salary increase should be given one or two days after the review is completed. If a salary increase is given at the close of each employee’s review, this says to your employee that their feedback was not important, as the salary increase had been pre-determined in advance. I know this sounds like a small point…but it will make a BIG difference to those on your team! Using the review for grooming and growth: So, the review is finished and the paperwork can now be placed in the employee’s file to gather dust for the next year, right? Not a chance! Have your manager or supervisor end each employee review by first recapping all the positive comments that were shared and have them summarize each action-step required for improvement or growth. These action steps should focus on the goals and objectives for the next period and must be in alignment with the goals of your property management company. Have your manager schedule a

short meeting in 30 days, to review the progress being made for each action item, as this review will become an important part of each month’s conversation between your manager and his/her employee. Then continue to use this employee review monthly until the anniversary of the next formal review. Tip From The Coach: While your manager is using this “year-around” review process, ask them to keep you posted on those who are making the most progress on their action steps. This is a good sign and a strong indicator that this person has leadership abilities and can easily be groomed for additional responsibility. As you identify these leaders in your property management company, develop a second set of action steps to accelerate this person’ career path within your company. 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. Author’s note: Ernest F. Oriente, a business coach since 1995 [30,700 hours], a property management industry professional since 1988--the author of SmartMatch Alliances-and the founder of PowerHour... www.powerhour.com http://www.powerhourseo.com www.powerhourseo.com 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: http://www.powerhour.com/prop ertymanagement/utilitybillaudit. html www.powerhour.com/property management/utilitybillaudit.html national real estate and apartment building insurance: http://www.powerhour.com/propertymanagement/insurance.html ...continued on page 24 On-Site Northwest • September 2013

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New Report From ULI Greenprint Center for Building Performance Shows Continued Progress in Reducing Energy Consumption and Greenhouse Gas Emissions PRNewswire-USNewswire/ -- A new report published by the Urban Land Institute's (ULI) Greenprint Center for Building Performance suggests that the global real estate industry continues to make progress in improving the environmental performance of existing buildings. (Logo: http://photos.prnewswire. com/prnh/20100310/ULILOGO) Volume 4 of the Greenprint Performance Report™, which measures and tracks the performance of 3,232 buildings owned by Greenprint's members, demonstrates a year-over-year reduction of 3.2 percent in energy consumption and 3.4 percent in carbon emissions. The report finds that the reduction in carbon emissions equates to nearly 268,400 barrels of oil not consumed, 24,044 cars taken off the road, and over 2.9 million trees planted in the past 12 months. The report also found a 21.4-percent increase in recy-

cling, and only a modest 0.5-percent increase in water consumption. The property data was submitted to the Greenprint Center by its 31 members and affiliated partners, who comprise an alliance of the world's leading real estate owners, investors and financial institutions committed to improving environmental performance across the global property industry. Greenprint is aiming to achieve a 50-percent reduction in the overall building emissions for its property portfolio by 2030. The number of properties included in this year's report has risen by 20 percent from last year, as Greenprint continues to expand both its membership and the building data collected from members. The portfolio has also grown by 15 percent in terms of floor area, and now includes over 75 million square meters (over 800 million square feet) of office, multifamily, industrial retail, and

hotel property. The 3,232 buildings are located across 44 countries and accommodate more than 1.1 million people. Greenprint members hold over $600 billion (450 billion euros) of real estate assets under management. "The reduction in both energy consumption and carbon emissions are very encouraging signs and a clear indication that the global real estate sector is moving in the right direction," said Greenprint's Chairman Charles B. Leitner, III. "Greenprint continues to drive progress in improving the environmental performance of the real estate industry in ways that enhance the long-term value of our investments. I am proud of the progress we have made, but I know we can achieve more through leadership, commitment and stakeholder engagement." The Greenprint Performance Report™ is unique in that it provides

an open standard for measuring, benchmarking and tracking energy usage and resulting emissions at a property, fund and portfolio level. The global scope and size of the report make it the industry's largest, most verifiable, transparent and comprehensive benchmark of energy use and carbon emissions. Currently, the database includes 2,021 properties in the Americas; 1,022 in Europe, the Middle East and Africa; and 189 properties in Asia Pacific. "Greenprint's building performance management platform is a cornerstone of ULI's efforts to promote sustainable land use practices," said ULI Chief Executive Officer Patrick L. Phillips. "The annual performance report provides the real estate industry with a useful indication of the progress being made in cutting resource consumption and reducing carbon emissions, and provides Greenprint members with an invaluable benchmark against which to ...continued on page 24

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measure their existing portfolios. Most importantly, it shows the positive environmental impact resulting from a solid commitment by Greenprint's members to make a difference." Currently, Greenprint's members are: Aetos Capital; AvalonBay; Beacon Capital Partners; BlackRock; Blackstone Group; CalPERS; CommonWealth Partners; Deutsche Asset and Wealth Management; Equity Office Properties; First Washington Realty; GI Partners; General Investment and Development Advisors, Inc.; GLL Real Estate Partners; Grosvenor; Hines; Jamestown Properties; Jones Lang LaSalle; LaSalle Investment Management; Miller Capital Advisory, Inc.; Paramount Group; PATRIZIA Immobilien; Prologis;

Prudential Real Estate Investors; Silverstein Properties; Sonae Sierra; Starwood Hotels and Resorts Worldwide, Inc.; Thomas Properties; TIAA-CREF; Tishman Speyer and UDR. The center is guided by an advisory board that includes key industry leaders from Greenprint's member companies.

C40 Cities Climate Leadership Group, and the Downtown (Washington) D.C. ecoDistrict program. These relationships are creating opportunities for Greenprint to harmonize and scale standards and tools across the global real estate industry, while addressing the specific needs of individual markets.

In addition to working closely with its members, Greenprint continues to collaborate with its innovation partners Arup, Deutsche Bank, Gensler, Johnson Controls and Lutron. It also is strengthening its ongoing collaborative efforts with the Natural Resources Defense Council and the London Better Buildings Partnership. Over the past year, Greenprint has also established new alliances with the U.S. Environmental Protection Agency's Energy Star Program, the

About the ULI Greenprint Center for Building Performance The ULI Greenprint Center's mission is to lead the global real estate industry towards improved environmental performance, focusing on energy efficiency, and reduced carbon emissions, water and waste. Greenprint is a member-driven organization that achieves its goals through measurement, action and education. For additional information, visit www.

uli.org/greenprint. About the Urban Land Institute The Urban Land Institute (www.uli. org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has nearly 30,000 members representing all aspects of land use and development disciplines.

SOURCE Urban Land Institute www.prnewswire.com

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Employee Review

...continued from page 22

www.powerhour.com/propertymanagement/insurance.html SEO/SEM web strategies, national WiFi solutions "http://www.powerhour.com/propertymanagement/nationalwifi.html 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: "http://www.powerhour.com" www.powerhour.com". PowerHour® is based in Olympictown…Park City, Utah, at 435-6158486, by E-mail ernest@powerhour. com or visit their website: HYPERLINK "http://www.powerhour.com" www.powerhour.com

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Contact Scott Paust at 206-786-0484 25

ON-SITE

Will it all fall down? Or finally fall into place?

your checklist, and adapting after the winter is over to be even more prepared for the next time around.

am the last person to admit that the seasons are changing, and as much as I want to deny it, fall will approach quickly. My friends are already dusting off their winter boots while I’m clinging to my flipflops. However, when it comes to property management and the maintenance of investment properties, you have to acknowledge the inevitable. The demand for maintenance is as volatile as market predictability altogether. You never know what’s coming or what to expect. The best way to prepare and ensure the least amount of problems slip through the cracks is by creating a Winter Checklist. Utilize this tool by acknowledging issues that arise in the winter, addressing the issues in

Acknowledge which problems typically occur in the winter by breaking down the building into specific categories on your checklist. First off, the building will need a full smoke detector inspection. Going from the outside-in, address relevant features of the siding and roof. Ensure that all outside spigots have insulating covers or have been shut off inside the building and drained. Clear the roof of all debris, check for missing/loose shingles and clear roof drains. If chimneys are relevant ensure they are sealed and secure as needed. Clear basins and drains of debris

since the falling leaves and winter winds will create a significant pileup. Inspect spout and gutter connections and implement routine cleaning procedures. Reset the timers on the common area and exterior lighting to coordinate with daylight savings. Confirm that all door closers are functioning properly, inspect caulking, weather-stripping and door sweeps. Drain the sprinkler system and have it shut down by a professional vendor. Equip your property with a bag of de-icer and a snow shovel. Address the checklist by enforcing it to be completed as part of your resident manager or landlord’s job responsibility. The fall and winter seasons in the Seattle area might not have as harsh of an

Get money to upgrade your rental property Decrease maintenance and operation costs, and improve the look of your building with rebates from Tacoma Power.

GET MONEY FOR: • Single-pane window and sliding glass door replacement • Attic, floor and wall insulation upgrades

impact as other cities, but the heavy rains and colder weather have a significant wear-and-tear on an unpreparedbuilding. Become a professional at adapting between the seasons. Review what went well and what fell apart so that you can be even more prepared for next year. By acknowledging items on your winter checklist, addressing the importance of complying with the checklist and adapting your maintenance procedures year after year, you will ultimately find the best ways to cope with the fall and winter season. You will see the inner-workings of your building fall into place rather than the latter. What better way to welcome spring than with a strong, functioning building and satisfied residents? Lauren Ginder, Pacific Crest Property Management Lauren can be reached at 206-812-9144 or via email at: ginderl@pacificcrestpm.com. www.pacificcrestpm.com

“The incentives that Tacoma Power offers make it appealing for property owners to participate. They make it feasible for us to make the improvements.”

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On-Site Northwest • September 2013

On-Site Northwest â&#x20AC;˘ September 2013

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