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

Professional Publishing, Inc

www.TheLandlordTimes.com

ON-SITE

Vol. 22 Issue 3

March 2013

Published 22 Years

SEATTLE • TACOMA • OLYMPIA • EVERETT 17,000 PAPERS MAILED MONTHLY

PUGET SOUND APARTMENT OWNERS, PROPERTY MANAGERS & MAINTENANCE PERSONNEL

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

Seattle's Fourth Quarter 2012 Insight Into The Rental Applicant Risk Index Report By Jay Harris, Vice President of Business Services, CoreLogic SafeRent The CoreLogic® SafeRent® Renter Applicant Risk (RAR) Index Report, formerly known as the Multifamily Applicant Risk (MAR) Index Report, provides market-based benchmarks for evaluating credit quality and risk of default for renters applying for apartment homes in multifamily housing units. The index also includes data from single-family rentals. Using a mean of 100, an index value above 100 indicates decreased risk, and a value below 100 indicates increased risk. According to the data, the risk of default among renters nationwide decreased year over year in the fourth quarter of 2012 with an index value of 103 compared to the fourth Continued on page 3

Study: Apartment Construction and Operations Contributed $3 Billion to Seattle Economy Washington received $28.7 billion economic contribution from the combined construction, operation and resident spending, says new report “The Trillion Dollar Apartment Industry” Despite the worst economy in a generation, apartment construction and operations contributed $2 billion to the metro Seattle economy in 2011 supporting 23,000 local jobs, according to a new report released today by the National Multi Housing Council (NMHC) and the National Apartment Association (NAA). In addition, apartments and their residents statewide contributed $28.7 billion to Washington’s economy supporting 678,000 jobs. The report, along with an interactive map and economic impact calculator, is availProfessional Publishing, Inc PO Box 30327 Portland, OR 97294-3327

able on the new website www. WeAreApartments.org. Based on research by economist Stephen S. Fuller, Ph.D., of George Mason University’s Center for Regional Analyasis, the report covers the economic contribution of apartment construction, operations and resident spending on a national level plus all 50 states. In addition, construction and operations data is available for 12 metro areas: Atlanta, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Miami, New York City, Philadelphia, Seattle and Washington, D.C.

Current Resident or

PRSRT STD US Postage PAID Seattle, WA Permit #741

Highlights from the report include: • Nationally, the apartment industry and its residents contributed $1.1 trillion to the economy in 2011, or more than $3 billion every day. This combined spending supported 25.4 million total jobs. • Within the Seattle metro area, the apartment industry spent $507.4 million on new apartment construction, creating a total economic contribution of $1.1 billion supporting 8,800 local jobs in 2011. Continued on page 15

Please note any problems below and notify us at: PO Box 30327 Portland, OR 97294-3327

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6 Questions with Katie Poole-Hussa The Landlord Times recently caught up with Portland Oregon based property manager, landlord educator and Smart Property Management partner Katie PooleHussa. See what she has to say about motivation, inspiration and fundamentals in her life as a property management professionals. The Landlord Times: What’s your story? What is your background and how did you get into the property management industry? Katie Poole-Hussa: I had been a receptionist in the lumber industry for 6 years., and was attending college classes, as I was able, in an attempt to discover what I wanted to be when I grew up. Through the mandatory “Career And Life Planning” class that the college required of me, I was forced to explore my professional

Continued on page 5 Page 16 Washington Apartment Association

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Chapter 27 Institute of Real Estate Management IREM® REVEALS WOMEN CHANGING THE WORLD OF REAL ESTATE...

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ON-SITE Seattle's ...continued from front page quarter of 2011 with an index value of 101. On a quarter-over-quarter basis, the risk of default increased in the fourth quarter 2012 compared to the third quarter of 2012 when the index value was 106. The increased risk from the third quarter to the fourth quarter of 2012 reflects a riskier applicant pool that is typical in seasonally slower periods of applicant traffic. For additional regional data and renter trends, visit http:// www.corelogic.com/about-us/ news/corelogic-releases-q4-2012renter-applicant-risk-index-report. aspx.

Here is how Seattle-TacomaBellevue, WA performed in the fourth quarter compared to last year: • Seattle-Tacoma-Bellevue, WA: 4Q12 RAR Index = 125 • Seattle-Tacoma-Bellevue, WA: 4Q11 RAR Index = 123 The SafeRent Renter Applicant Risk (RAR) Index Report is published quarterly by CoreLogic. The RAR Index is calculated exclusively from applicant-traffic credit quality scores from the CoreLogic SafeRent statistical lease screening model,

ON-SITE

APARTMENT OWNER & MANAGER NEWSPAPER

STAFF Publisher Will Johnson • will@propubinc.com

Editor Andrea Coulter • andrea@propubinc.com

Circulation Manager Andrea Coulter • andrea@propubinc.com

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Advertising Sales Will Johnson • will@propubinc.com Terry Hokenson • terry@propubinc.com

Serving the Portland/Vancouver Multifamily Housing Industry More than 21,000 Distributed Monthly www. TheLandlordTimes.com The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. Metro Apartment Manager is produced monthly and is published by Professional Publishing Inc. An Oregon Corporation.

Registry ScorePLUS® and is based on an analysis of 39,000 properties representing nearly 6 million apartment homes and single-family rentals. The index provides a benchmark trend of national and regional traffic credit quality scores. Data is also available at the property and sub-market level with our analytics tools. For additional information or the full press release, visit corelogic.com.

CORELOGIC, the stylized CoreLogic logo, SAFERENT and REGISTRY SCOREPLUS are registered trademarks owned by CoreLogic, Inc. and/or its subsidiaries. No trademark of CoreLogic shall be used without the express written consent of CoreLogic.

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Retention will Reward The best practices to guide your property towards success After being struck with Cupid’s arrow and Russia’s meteor madness, passion and reality reiterate the importance of business goals and operations. Questions arise such as, how do you utilize and accomplish corporate goals to their potential? Prepare yourself so that when disaster occurs you are as strong as possible and closer towards climbing the ladder once peace resides again? One way to begin answering these questions is by acknowledging that a successful property needs high and effective retention rates. To obtain the retention rates that are typically sought after in the property management world, a four step strategic process is necessary. In order to provide an effective explanation, I’m going to use soccer as an analogy. Companies first start with the recruiting process similar to drafting players onto a team. Recruiting the right employees (teammates) is vital in encouraging retention and bringing an effective group of people together who will make both a short and long term impact. You’ve got to provide a structured team with clearly defined levels of management, instruction and guidance. The

leaders are the ones directly in control but the team players, who make up the majority, provide the core efforts and execution that reinforce the team’s mission. The second step is training. Practice makes perfect in the world of sports, and in the world of property management, that is the goal, but achieving as close to perfect as possible is more realistic. In training the team that you have crafted you must both prepare and test them for the road ahead. If anyone has successfully passed the interview (drafting) process but shouldn’t have, this is where their flaws will become apparent. Training is a vital portion of the road to success; a team or a company defines their mission (a perfect season), develops a strategy (a playbook) and assigns leadership (the line-up) according to whoever is most capable of accomplishing their mission. The third step is implementing your employees or your team into “the game.” This is the part where the whistle blows and everyone’s potential is discovered. Governance is manipulated and acquiring the win is the ultimate goal. Passion is put to work and operations are uti-

lized to their full advantages. In the case of a property, operations can range from people’s individual capabilities all the way to technology’s capabilities and incorporating them into the property’s daily procedures to the most resourceful extents. In property management our mission is the successful execution of the owner’s goals and objectives. Think of the owner of the building as the goalie and the day-to-day operations as the ball. Ultimately the owner is in charge of the property (the net), but the team does everything they can to keep the ball away from them in order to reduce stress and provide a competitive advantage over the “other team.” You keep your eye on the ball and focus on executing plays from your playbook while the goalie surveys the entire field and provides you with direction enabling them to better protect the net. The final step is where the team or your property scores; because in the game of soccer and property management alike, when you score, you score big. Happy fans are equivalent to having happy and loyal employees and tenants. Here is where feedback is provided and goals are reestablished. Properties

are continuously attempting to improve. You want to encourage players to remain on your team not only for your own benefit but for personal incentives that they receive along with the game as well. By operating your property as if it were a soccer team, you will ultimately come out with a win. The key to success is to exercise effective methods of increasing tenant retention by utilizing employees through recruiting, training, implementing and scoring. If you focus on these core principles your property will continue to improve and your property owners will benefit from the highest possible return on investment. By Lauren Ginder, Pacific Crest Property Management Contact info: Lauren can be reached at 206-812-9144 or via email at: ginderl@pacificcrestpm.com www.pacificcrestpm.com

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ON-SITE 6 Questions ...continued from front page strengths & weaknesses. Test, after test, after test repeatedly concluded that property management was where I was supposed to be. So, I listened. Right away I haphazardly submitted my two weeks notice, applied to every property management company that was hiring in the area, and crossed my fingers that the phone would ring. Thankfully it did. The local rental housing association president, and instructor of the property management certification program quickly hired me. What luck! I currently am a licensed property manager in the state of Oregon, an eviction specialist in the Portland area, and a continuing education provider for other licensees. I feel very appreciative that I discovered my niche so early on in life. I made the leap of faith seven years ago and I’ve never looked back.

TLT: What is it about this industry that has kept you motivated and interested? KPH: My motivation to continue managing properties, providing eviction services, and educating other landlords is to help landlords be better landlords. Education is key in this industry. Most often, the mistakes that I see landlords make are simply because they don’t know the laws. Well unfortunately that is not a legally recognized defense. Teaching other property managers and rental owners about laws and common business practices is thrilling to me and I don’t see an end to it anytime soon. As landlords, we must realize that we’re in an ever changing industry. Landlords should approach managing their rentals just like any other business. Do your research, attend workshops, join

landlord associations, etc. The opportunities are out there if landlords are willing to make the time and spend a little money. It’s my opinion that you can’t afford not to. TLT: Who was the most influential person/mentor in the early part of your career? What did you learn from them? KPH: The most influential person in the early part of my career was actually a tenant. We’ll call her Nikki. Nikki was a tenant who came to our company just like all others, and it

wasn’t until I moved her into the simple 1 bedroom downtown apartment was I even influenced by her. We met at the unit to complete the rental agreement. After collecting the prorated rent, confirming the transfer of utilities, and completing the inspection report, it was time I hand over the keys. This simple gesture immediately sent Nikki into what I could equate to an emotional breakdown; she threw her arms around me for a hug, bawled her eyes out with joy, and we sat for the next 20 minutes talking about her rough life history. She was expressing Continued on page 9

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

Past President • Faye Crow

VP Membership • Glen Bachman

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IREM® Reveals Women Changing the World of Real Estate Management Weaving Stories Together Creates a Living Tapestry

The Institute of Real Estate Management (IREM®) today revealed the names of, and narratives about, 72 women from the U.S.

and abroad who are changing the face of the real estate management profession. Recognized for innovation, mentoring, community service,

leadership and other laudable initiatives, the women identified range from senior officers of global real estate firms to self-employed entrepreneurs to site managers of single properties who are prized for the great work they do. Some are IREM® Members, others not, and their stories – as told by those who nominated them – are featured in the March/ April issue of IREM’smember magazine, the Journal of Property Management (JPM®). “In big ways and small,” said IREM® 2012 President James A. Evans, CPM®, “women are changing the face of the real estate management industry daily. This was the impetus for IREM to identify the women who represent the absolute best of what our industry can accomplish.” “Our original intent was to identify and spotlight just 10 women of achievement,” said Russell Salzman, CAE, IOM, RCE, IREM’s executive vice president and CEO. “But as nominations flowed in, we quickly realized that recognizing so few would be difficult, if not impossible. Indeed,” he noted, “each and every nomination contained a story...a story told by a colleague, a direct report, a tenant, a supervisor, and, in some cases, even by daughters writing about their mothers.” Observed Nancye Kirk, IREM’s Chief Strategy Office and Vice President, Global Services: “It is the weaving together of all of these stories that creates a living tapestry, one which enables us to see how women have, and are, changing the world through real estate management.” Added current IREM® President Elizabeth (Beth) Machen, CPM®, who is among the 72 women spot-

lighted: “When I began my property management career, relatively few women were in the business. Today, the percentage of women in management surpasses that of the men. “But,” she continued, “it’s not just about the numbers. As I read through the awe-inspiring stories of my female colleagues, I felt truly honored to be included in this group of passionate, committed professionals.” COMMON THREADS All of the women identified are entwined by common threads – a willingness to mentor others, leadership through caring and nurturing, the ability to create connections and form lasting bonds, a passion for lifelong learning and for sharing knowledge with others. Among these women are single mothers who used real estate management as a career that would support not only themselves but their children. Risk-taking entrepreneurs who started their own management companies. Innovators who leveraged their management knowledge and expertise to create business that supported the industry. Educators, who have prepared young people for successful careers in real estate management. And sensitive and thoughtful managers whose compassion has ensured safe and comfortable homes for those of limited means. LIST OF WOMEN RECOGNIZED • Cammie Allie, CPM®, Fortress Property Management, Portland, OR • Shannon Alter, CPM®, Alter Consulting Group, Santa Ana, CA Sue Ansel, Gables Residential, Dallas, TX • Kristi Bowins, CPM® Candidate, Colliers International, AMO®, Boise, ID • Elizabeth Bunker, CPM®, Windsor Management, Lafayette, CA • Stephanie Burg-Brown, CPM®, BSA Management and Nextage Diamond Realty, Philadelphia, PA • Lori Burger, CPM®, IREM 2013 Secretary/Treasurer, Eugene Burger Management Corp., AMO®, Rohnert Park, CA • Mary Butler Summy, CPM®, LEED, Granite Properties, Houston, TX • Debra A. Cafaro, Ventas, Inc., Chicago, IL • Cynthia Clare, CPM®, Kettler Management, AMO®, McLean, VA • Tisa Clark, JD Clark Professional Services, Capitol Heights, MD • JoAnne Corbitt, CPM®, IREM® 1997 President, Colliers International, AMO®, Nashville, TV Continued on page 7 On-Site Northwest • March 2013

ON-SITE

IREM® Reveals ...continued from page 6 • Dawn Daffinee, CPM®, Travis Commercial, San Antonio, TX Dreamer Dowden, ARM®, CPM® Candidate, CDPM II, Barksdale Family Housing, Barksdale Air Force Base, LA • Doreen Donovan, CPM®, CJ Management, Co., Inc., Dorchester, MA • Mary Joe Eaton, CBRE, In., AMO®, Miami, FL • Faye Ellis, CPM®, Facility Management Services, Nashville, TN • Rose Evans, CPM®, Levin Management, AMO®, North Plainfield, NJ • Christiana Foglio, Community Investment Strategies, Inc., Lawrenceville, NJ • Kate Franco, CPM®, ARM®, Trinity Management Company, LLC, Boston, MA • Vickie Gaskill, ARM®, CPM®, Bell-Anderson & Associates, LLC, Kent, WA • Ginny Goldsmith, CPM®, Sealy & Company, Dallas, TX • Emily Goodman, CPM®, ARM®, Core Realty Holdings Management, Inc. (CRHMI), Greensboro, NC??? • Jamie Gorski, The Bozzuto Group, Greenbelt, MD • Rosemary Goss, PH.D., Virginia Tech University, Blacksburg, VA • Cheryl Gray, CPM®, Bentall

Kennedy, Toronto, Canada • Olga Hakes, ARM®, 1170 Apartment Corporation, Fort Lee, NJ • Mary Hauser, CPM®, Browning Investments, Inc., Indianapolis, IN • Lidia Henclewska, CPM®, Henclewska Nieruchomosci, Poznan, Poland • Tammy Gorr Hendrix, CPM®, Consulting in Houston, TX • Rita Hernandez, CPM®, RiverRock Real Estate Group, San Francisco, CA • Deanna Hill, CPM®, First Management Services, Knoxville, TN • Deborah Ho-Beckstrom, CPM®, Community Association Group, Inc., St. Paul, MN • Alexandra Jackiw, CPM®, McKinley, Inc., AMO®, Indianapolis, IN • Julie Johnson, Phillips Real Estate Service, Seattle, WA • Heidi Kempf-Schwarze, CPM®, RPA, Unilev Management Corp., St. Paul, MN • Laura Khouri, CPM® Candidate, Western National Property Management (WNPM), Irvine, CA • Diana Leka, CPM® Candidate, Housing Authority of Salt Lake City, Salt Lake City, UT • Meaghan Levy, CPM®, CB

Richard Ellis Group, Inc., AMO®, Las Vegas, NV • Sue Lewis, Rental Housing Association of Puget Sound, Seattle, WA • Fernanda Lisboa, CPM®, 1Size Eireli, Sao Paulo, Brazil • Elizabeth (Beth) Machen, CPM®, IREM® 2013 President, Machen Advisory Group, Charlotte, NC • Marla Maloney, CPM®, Cassidy Turley, AMO®, St. Louis, MO • Annie McClinton, Multifamily Ancillary Group (MAG), Irvine, CA • Vera McPherson, CPM®, ARM®, W.H.H. Trice & Co., Williamsburg, VA • Pamela Monroe, CPM®, IREM® 2009 President, Community Realty Management, Inc., AMO®, Pleasantville, NJ • Constance B. Moore, BRE, San Francisco, CA • Reggie Mullins, CPM®, IREM® 2008 President, Cassidy Turley, AMO®, Washington, DC • Patricia Nooney, CPM®, IREM® 2003 President, CB Richard Ellis Group, Inc. (CBRE), Tampa, FL • Susan Passmore, CAM, CAPS, Blue Ridge Companies, High Point, NC • Debbie Phillips, PH.D., CPM®, The Quadrillion, Atlanta, GA • Holly Powell, CPM® Candidate, NRP Management Group,

Detroit, MI • Cathy Robertson, ARM®, Core Realty Holdings Management, Inc. (CRHMI), Greensboro, NC • Beverly Roachell, CPM®, IREM 1994 President, Peak Properties, LLC, Little Rock, AR • Renee Savage, CPM®, CCIM, Capital Growth Properties, Inc., AMO®, La Jolla, CA • Sheri Schwab, AIMCO, Montclair, CA • Felicia Scruggs-Wright, CAM, CPM®, Tenderloin Neighborhood Development Corporation (TNDC), San Francisco, CA • Kim Small, The Morgan Group, Houston, TX • Kerri Stimpson, Taylor Management Company, Spring Lake, NJ • Debbie Weber Sobeck, MidPenn Housing, Foster City, CA • Eileen Swenson, CPM®, Trio Properties, LLC, Glastonbury, CT and 72 Residential , LLC, Lake Mary, FL • Heidi Turner, Blanton Turner, Seattle, WA • Carol Walker, IREM® Northern Virginia Chapter No. 77, Gaithersburg, MD • Brenna Walraven, CPM®, RPA, USAA Real Estate Company, San Antonio, TX Continued on page 17

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Dear Maintenance Men: I would like your thoughts on a landscape makeover I am planning. My rental property is ninety percent grass and very boring. I want to cut down on my water consumption and change the current “look” of the property. What do you recommend? Robert Dear Robert: The single greatest consumer of water in your landscape is the turf. Reduce the grass area to ease the burden on water. Creating a drought tolerant landscape will change the appearance of your property and cost you less money in water and maintenance. Xeriscaping is a term for a water conserving landscape. As mentioned above, the benefits of Xeriscaping is water saving, low maintenance, pesticide free, pollution free (no lawnmowers) and use of local native plants. You might want to consider using Ornamental grasses, as they are drought tolerant, look great and give your landscape a bit of vertical dimension. Succulents of course are great at

conserving water. Flax and Delphiniums Iris are a few perennials to use. Marigolds, Mexican Sunflowers, Phlox and Vinca Passion are Annuals that will work well. As for shrubs, look at Japanese black pine, Mountain currant, Sassafras, Honeysuckles etc and good trees are Acacia, Gray Birch, Monterey Cypress, Eucalyptus, Fig, Juniper Amur Maple to name a few. Be sure to provide good drainage and using plants native to your area are best. Dear Maintenance Men: I am running into an issue at my rental property. The bathrooms are constantly developing mildew. I have replaced the vent fans and the problem does not go away. How can I solve this problem? Bill Dear Bill: A number of things may be at work here. Unit over crowding is generally the main reason for moisture & mildew build-up in an apartment unit. Because

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of the over crowding, the residents, take more showers and baths, throughout the day and evening. Often to hide the excess people in the unit, the resident will keep all the window covers closed and the widows shut, effectively keeping the moisture from escaping. Add a windowless bathroom into the mix and the problem is compounded. Mechanically, we suggest you inspect the vent fans in the bathrooms. Make sure they are not clogged with lint or dust. If the fan is operating properly, check the CFM or Cubic Feet per minute of air movement. The minimum number should be 50 CFM. If the bathroom is getting more than the average amount of use, you may want to replace the existing fan with one that has a higher CFM rating. We recommend using at least a 120-CFM fan. Equally important, many bathrooms have two wall switches; one for the light and the other for the fan. If this is the case, we recommend combining the two switches into one. That way when the resident switches on the light the fan will come on automatically. We find most resi-

dents will not turn on the fan if it has its own switch. Lastly of course, is to get the resident to open a few windows and let some fresh air in. Dear Maintenance Men: I am installing safety grab bars in all of my showers & bathtubs and I need some guidance on the installation procedure. What do I need to know to install these bars correctly? David Dear David: The use of handrails and safety bars help provide stability and extra support required by the elderly and people with limited mobility. Approved ADA grab bars are available in a wide variety of configurations, colors and finishes. The most common is the stainless steel or chrome finish. The grab-bars must be able to support a dead weight pull of 250 pounds. The preferred method is to bolt directly into the wall studs. This is not always practical, as the stud might not line up where they are needed. GrabContinued on page 11

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ON-SITE 6 Questions ...continued from page 5 to me the sincere thanks and appreciation she felt towards me for giving her a chance at housing when no one else had. This would be her first apartment since residing at a shelter for battered women. This brief, yet influential, experience with Nikki early on in my career showed me that property management isn’t about just filling and maintaining rental units. My job from that point forward became providing quality housing to real people who want to be heard, respected, and given a chance. Since Nikki, I’ve had many opportunities to fulfill this same dream for others and I am thankful that she changed the way I approach my “job”. TLT: We’re often reminded about the importance of fundamentals in the things we do. What do you consider the fundamentals for success in this business to be? Why are they so important? KPH: Honesty, integrity, attention to detail, forward thinking, and respect just a few of the fundamentals that I think are key to being a successful property manager. As a property manager, not only do you most likely have a boss to answer to, but you also have to answer to your clients, and to your tenants. All parties involved must be treated with respect and honesty. To me, this is a given. Attention to detail and forward thinking go hand-inhand. During turnover for example,

On-Site Northwest • March 2013

items such as confirming move out dates & rent amounts with tenants, advertising upcoming vacancy, notifying your client of the vacancy, coordinating cleaning, painting, and carpet cleaning, all while continuing to show the rental to prospects, answer ad calls, and processing applications… whew! Managing time, coordinating the order of events and some “handholding” requires managers to be thorough, detailed, and forward thinking because time is money. TLT: Generally speaking, what 2 or 3 pieces of advice would you give to a room full of property managers? KPH: First, and most importantly, using the proper forms. The rental forms you use should be state specific, written by a lawyer, and easy to complete. Rental forms should have minimal blanks or areas to be completed by the landlord so that the risk of error is far less than if a landlord either creates their own forms or uses a template from the internet. Second to forms is the importance of tenant application screening. I cannot think of an easier, more inexpensive way to potentially steer clear of a major disaster. Invest a small amount of time, make the phone calls and check for any discrepancies within the information the applicant provides. Similar to educating oneself in the business of managing rentals, you cannot afford not to thoroughly

screen. Lastly, I find the job easiest when all sides (management, tenants, and client) are in constant communication with one another. Just as landlords have to know the laws, I’m all for tenants knowing what their rights and responsibilities are too. Landlords should send copies of the rental agreement and addendums to tenant after completion. We should summarize phone conversations in writing to tenants to help ensure clear expectations. Eyes should be on the property constantly through the help of neighbors, regular interior and exterior inspections by management, and maintenance personnel should be of the understanding that while they’re at the property to make minor repairs, be observant of what they see, smell, hear, etc. The worst thing a landlord can do is to hand over possession to a unit and then never communicate with the tenants until it’s time for them to vacate. Be present and communicate your ideas, intentions, and expectations quickly yet thoroughly. TLT: How has the use of technology changed our industry? KPH: I remember vividly the days when a call to my classifieds rep at the local paper would take over an hour on the telephone to update all of the vacancy ads for that upcoming weekend’s distribution. Besides the huge amount of time involved in newspa-

per advertisement, the cost that I had to forward on to my clients was outrageous. Luckily, new technologies have been introduced and landlords now have several media’s in which they can advertise their vacant units for free with just a few clicks of a mouse. Pinterest, Facebook, and Craigslist are just a few of the free social media sites that I utilize in my business. These popular sites are excellent ways to promote your properties. The key aspects for a successful advertising account include being professional, being relevant, having flattering property pictures, and focusing on great products, fun communities. Linking people from these social medias directly to your website is also an effective and free method of creating interest in your available rentals. The technological combination that these sites offer of free and widely reachable has trumped the daily “pulp” we once relied on. Katie Poole-Hussa, a principle at Smart Property Management, LLC, is a dedicated to professional property management and education. Look for her column "LandLady Katie" debuting in The Landlord Times this Spring. Reach her at katie@smartpm. co. VIsit Smart Property Management at smartpm.com.

one called ahead to make an appointment, is it okay to give them all a group tour?

veryone in the property management business knows certain times of the month are exceptionally busy. Even managers and leasing people who are experts at scheduling will occasionally get “double booked” or swamped with “drop in” visitors. Being able to handle more than one thing at a time and to do so graciously, is just part of the job description in this industry. Here is a question that came up at a leasing seminar:

A: This is a dilemma that everyone will eventually face if they are in the business of renting apartments. However, keep in mind that it’s a positive thing when people are “flocking in” to see your apartments. It means your telephone skills, advertising and/or curb appeal are all working to draw prospective renters into your community. On the other hand, assisting more than one person at a time presents a special challenge, as no two people have the same needs. Also, there will be times

Q: When I am really busy at the

end of the month I occasionally have two or three people show up at the same time to see an apartment. If no

when your prospects are moving for reasons they wish to keep private. These and other factors like “who arrived first” and “who needs to move the soonest,” must be taken into account before deciding if a group tour is in order. I would encourage you to imagine that your busy office is the emergency room of a hospital. Stay calm, confident and in control as you do “triage” to assess the basic needs of your prospects and establish priority. Remember: Not everyone is in a “life threatening” situation, and some people can wait. Hold onto your sense of humor as you explain that you want to assist everyone, but

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there is only one of you and three of them so you will need their help. Ask each party to fill out a guest card with their contact information, along with the size apartment they need and desired move date. Collect the cards and quickly determine which prospect(s) can and cannot wait. For example, if one of your visitors does not need an apartment for two months, then you can encourage that person to join in on a group tour or make an appointment to come back at a later date. If another prospect needs an apartment size that you do not have available, you can phone a sister community and then direct that individual to one of your colleagues who can offer immediate assistance. If you do find yourself on a tour with two or more parties, you must be courteous and give each person or group “equal time,” even if one seems more interested or more desirable as a prospective resident. Think of yourself as the “host” of a party: Your goal is to make sure each one of your guests feels welcome and special so they will want to come back; or in this case rent. Oh, and one last thing: Remember to introduce your “guests” to each other. - This shows that you have good manners! 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! ASK THE SECRET SHOPPER Provided by: 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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ON-SITE Dear Maintenance Men: ...continued from page 8 bars can be mounted vertically or at an angle to match wall stud spacing. Horizontal installation can be difficult because stud spacing and bar sizes do not always match. If finding studs becomes a problem, alternate installation methods are available. If your walls are in good condition, you may use large toggle bolts or if you have access to the backside of the shower or bath walls, insert a backer plate or add a new stud for an anchor point. Safety grab bars can be located at any local hardware store. It is advisable that you check ADA requirements with local, state and federal agencies for regulations governing height, distance & angle of the bars.

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 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.

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On-Site Northwest • March 2013

ON-SITE

How To Hire Property Management Superstars! © By Ernest F. Oriente, The Coach Can a person’s behavior and values really determine if they will be a future SuperStar for your property management company? If you knew the formula for hiring SuperStars and could cut your recruiting costs in half, would you start today? This article outlines three simple but critical steps for adding structure to your hiring process and raising your level of success. Strengthening the interview process: Prepare a consistent written interview game plan, to be used by each person conducting the interviewing for your property management company. Prior to the first interview, carefully review each resume looking for any gaps or red flags that need to be resolved in the interview. Then, identify the values and behaviors of the SuperStars currently employed by your company and use this important data to develop your interview questions to probe for these special attributes. Next, prepare a list of questions to be asked by each person in the interview process, as these questions should focus on the key success factors at your property management company. For example,

if your company is “performance driven”, then the behaviors or critical success factors you want to listen for must be consistent with these characteristics. Lastly, make sure your interview plan includes how to do effective reference checks. Tip From The Coach: Remember, the single best predictor of future behavior is past behavior and what people have done is less important than who they are. Be certain to conduct multiple interviews as few people reveal enough about themselves in one session. In addition, spend only 20 percent of the interview talking, so you can spend the rest of the interview listening for behavior and critical success factors. Recruiting close to home: It takes a special kind of person to thrive in the property management field and the people who do, tend to spend time (personally and professionally) with people like them. So, consider your current employees as your best recruiting source, as they understand the soul and spirit of your property management company. Some of our clients hire 50 percent of all new employees from em-

ployee referrals and it makes for very cost effective recruiting. Tip From The Coach: Consider some form of cash incentive or special award to those who refer new employees to your property management company. Your appreciation will go a long way in helping to find future SuperStars and will enhance team spirit. However, just because a current employee recommends a person, doesn’t change your employment process. Using powerful assessment tools: In addition to the traditional interview steps, use written assessment(s) to validate your interview process. This kind of tool can be custombuilt for your company and will benchmark the behavior and values of your current SuperStars for each key position within your property management company. By using this benchmark you will be able to compare the behavior and values of each new hire to your current SuperStars and numerically be able to compare any variances, before you finalize your hiring decisions.

Tip From The Coach: Once a benchmark has been developed for your company, the accuracy of your hiring will greatly improve. This benchmark will also help to reduce employee turnover, increase morale and solidify your company’s position as a market leader. While there are many types of assessments, it is critical to use validated instruments in your hiring process. Want to learn more about using assessment tools in the hiring process? Send an E-mail to ernest@powerhour.com and we will send you a two-page behavior and values assessment form which can be completed in ten minutes or less. Complete both pages and fax your assessment forms back to our office at 435-615-8670. In return, you will be confidentially sent an 18 page assessment* (a $200 value) outlining your unique leadership and communication styles/ values. In addition, once you receive your assessment we will schedule a 45-minute call (a $300 value) to review your results and to explain how this tool will help you hire property management SuperStars. In summary, hiring SuperStars is vital to the Continued on page 17

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ON-SITE

Dryer Vents: Inspection and Cleaning Article submitted by Portland Chimney & Masonry, Inc. reported to U.S. fire departments each year and cause an estimated 5 deaths, 100 injuries, and $35 million in property loss. “Clothes dryer fire incidence in residential buildings was higher in the fall and winter months, peaking in January at 11 percent.”* Clogs: Plus, the more these vents clog, the more time is needed to dry the clothes in the dryers. This can waste a great deal of money on electricity and is also why these vents should be cleaned out on a regular basis. Extremely clogged vents are harder to clean and may require extensive measures to gain access to the clog, which can be costly.

The vents of dryers serve the same purpose as the chimney of a fireplace: a way for exhaust to be allowed to get out of the building. Usually these vents are vented through the roof or out the side of your buildings. Either way, there must be a clear passage for the exhaust to get out. Structural: Under no circumstances should these vents be allowed to vent anywhere inside the building, such as an attic or the like. This is simply allowing the exhaust and flammable lint to be vented into an enclosed, often unattended area. This is a fire waiting to happen.

A Certified Dryer Vent Technician should inspect the air flow to determine the air flow, as noted above, as part of the annual maintenance of the dryer vents. So protect your property, protect your tenants. Ensure your dryer vents are properly vented and cleaned for maximum safety and efficiency. You can always call a Chimney Professional to inspect the venting and to clean the vents when needed.

Reference: *www.usfa.fema.gov/ media/press/2012releases/080712.shtm Clothes Dryer Fires in Residential buildings (2008-2010) is part of the Topical Fire Report Series. Clothes Dryer Fires in Homes/ 8/7/12 Press Release

Inspection: It is vital as the first step of servicing the dryer vents to inspect the air flow. If there is no air flow or low air flow it is an indicator of: Damaged dryer Clog in vent system Pinched transition (accordion style vent that connects the dryer to the rigid venting in the wall). Dyer not connected Damaged dryer.

Cleaning: The lint that is built up in these vents is highly flammable and must be cleaned out on a regular basis, as should the chimneys for fireplaces. If this lint were to catch on fire, it could cause severe damage to your property. According to the USFA (U.S. Fire Administration) “An estimated 2,900 clothes dryer fires in residential buildings are

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

18300 Cascade Ave. S., Suite 130 Tukwila, WA 98188 (425) 656-9077 (425) 656 9087 (fax) admin@wmfha.org

Legislative Advocacy for the Apartment Industry

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ne of the primary missions of the Washington Multi-Family Housing Association is to be a strong advocate for the multifamily housing industry and influence legislation favorable to the industry, our members and property owners. We are fortunate to be well respected among policy-makers and legislators due to the professional approach we exhibit to collaborate for sound and practical improvements which balance objectives for owners, managers, industry suppliers, residents and government officials. Kathryn Hedrick of H2 Government Relations, Inc. represents WMFHA as our state lobbyist. Kathryn has many years of experience fostering positive relationships and has participated in several legislative sessions in Olympia. Kathryn’s primary focus is representing the voice and views of WMFHA members, as well as consulting and informing our membership of important legislation which would affect the way our members and their clients do business.

WMFHA’s Government Affairs Committee and our Director of Government Affairs, Joe Puckett, as well as Kathryn, have been working hard since January tracking and evaluating legislation, meeting with key state legislators, and testifying in support of or in opposition to bills which have been introduced this session. WMFHA sponsored and introduced two sets of bills this legislative session, HB 1605/SB 5495 and HB 1606/SSB 5494. Below is a listing of some of the key legislation that we are tracking this year. Of course, some bills either do not make it out of committees, or are amended from their original version, or may move through the House or Senate and pass to go before the Governor for signature and enactment. We thank all of our association members who traveled to Olympia in January to attend our “Legislative Day On The Hill” event, where we met with several legislative representatives to educate them on the importance of the apartment industry and issues facing our constituents.

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SHB 1024: Modifies the state’s laws against discrimination by removing the training requirement for service animals in connection with claims involving housing. HB 1367/SB 5323: These bills authorize a city to enact ordinances that determine what is a nuisance, including “litter” and “potentially dangerous litter.” These bills give cities the same authority that counties already have. HB 1473: This proposal would require individuals or corporations that pay $600 or more per year to anyone for construction services to file a report with the Department of Labor & Industries. SHB 1529/SSB 5568: The bills prevent a screening company from disclosing that the applicant is the victim of domestic violence, sexual assault or stalking. HB 1605/SB 5495: These bills add 2 additional members to the current 15 member State Building Code Council. HB 1606/SSB 5494: These bills would push back the deadline for installation of CO alarms to January 1, 2015. The Senate bill has been amended to change the date to July 1, 2014. SHB 1647: This bill has been amended to require landlords to use “reasonable care” to safeguard duplicate or master keys to dwelling units.

lenging the assessed valuation of the property. SB 5280: This is an attempt to deal with gang problems in rental properties. If a person obtains possession of property without the consent of the owner (trespasser) the owner may demand that the trespasser vacate immediately. If the trespasser does not vacate, the person can be arrested and charged with criminal trespass. SB 5426: This bill amends the eviction statutes to allow a landlord to include late fees and other fees in a 3-day notice. HB 1497/SB 5341: These proposals have several sections dealing with “non-conviction records” (records of arrest not resulting in conviction, charges that are dismissed, convictions that are pardoned). HB 1520/SB 5306: These almost identical bills provide a method for dealing with the personal property of a deceased tenant. HB 1532/SB 5307: Adds a new provision to the unlawful detainer or eviction statutes. They would authorize eviction procedures for people who are given possession of real estate without a rental agreement or any obligation to pay rent. SB 5062: This bill creates a new crime of trespassing on property that has been foreclosed on or is in the foreclosure process. It allows the landlord or a neighbor to have the occupant arrested.

HB 1716/SB 5336: These bills reduce the burden of proof imposed on a property owner who is chal-

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Study ...continued from front page • The apartment industry spent $1.0 billion operating the metro’s 314,000 apartment homes, generating a total economic contribution of $1.8 billion supporting 15,000 local jobs. • Within Washington, apartment construction contributed $1.5 billion to the state economy supporting 11,000 jobs in 2011. • Operating the state’s 475,000 apartment homes created a total economic impact of $3.0 billion to Washington supporting 44,900 jobs. • Washington’s 826,000 apartment residents spent $11.5 billion on goods and services within the state in 2011, creating a total economic impact of $24.1 billion supporting 621,000 jobs. “The apartment industry doesn’t just provide homes, but creates thousands of good paying, local jobs that stay right here within Seattle,” said Jim Wiard, executive director of the Washington Multi-Family Housing Association (WMFHA). “The eyeopening report shows just how important apartments and our residents are to Washington— contributing more than $28 billion to the state economy.” “Although attention is usually focused on homebuilding and the single-family sector, the annual con-

struction and operating outlays for apartment buildings with five or more units are major sources of economic activity, jobs and personal earnings,” said Fuller. “In addition, the residents of apartment buildings constitute an important source of local, state and national economic activity as their spending for goods and services is recycled through the economy. Like the operating outlays for apartment buildings, the spending by renters recurs annually thereby supporting local economies on an ongoing basis.” In conjunction with the study’s release, the new website www. WeAreApartments.org breaks down the data by each state and the 12 metro areas through an interactive map. Visitors can also use ACE, the Apartment Community Estimator, a new tool that allows users to enter the number of apartment homes of an existing or proposed community to determine the potential economic impact within Washington or any of the 50 states. “For the first time we’re able to quantify the tremendous economic impact of apartment residents across the country, in addition to the powerful contributions from apartment construction and operations,” said NAA Chairman of the Board Alexandra Jackiw, CPM, CAPS. “It truly shows a comprehensive view

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of the industry’s critical role not just in housing, but to the economy at large.” “Even in one of the worst economic climates we’ve ever seen, the multifamily industry and its 35 million residents contributed more than $1 trillion to the economy,” said NMHC Chairman Thomas S. Bozzuto, CEO, The Bozzuto Group. “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 information or to download the report “The Trillion Dollar Apartment Industry”, visit www. WeAreApartments.org. Seattle-specific information can be found at www.WeAreApartments. org/Seattle. Washington-specific information can be found at www. WeAreApartments.org/Washington. Metro Area Defined: Seattle-Tacoma-Bellevue, Wash. Includes King County, Pierce County and Snohomish County. About National Apartment Association and National Multi Housing Council: 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. One-third of Americans rent their housing and 35 million people live in an apartment home. 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/governmentaffairs. About Washington Multi-Family Housing Association: The Washington Multi-Family Housing Association was formed in 2003 and is the largest professional trade association in the state of Washington serving managers, owners, developers and industry suppliers of the multifamily housing industry. WMFHA supports member businesses and the housing industry through legislative advocacy, educational courses, quality events and networking opportunities. WMFHA is the Washington State affiliate of the National Apartment Association (NAA). WMFHA at (425) 656-9077 or jim@ wmfha.org or www.wmfha.org.

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New Updates on Carbon Monoxide Alarm Requirements in Washington State Section R315 Carbon monoxide alarms. WAC 51-51-0315 (Effective Until July 1, 2013.) R315.1 Carbon Monoxide Alarms. For new construction, an approved carbon monoxide alarm shall be installed outside of each separate sleeping area in the immediate vicinity of the bedrooms in dwelling units and on each level of the dwelling and in accordance with the manufacturer's recommendations. R315.2 Existing Dwellings. Existing dwellings shall be equipped with carbon monoxide alarms when alterations, repairs or additions requiring a permit occur, or when one or more sleeping rooms are added or created. EXCEPTIONS: 1. Work involving the exterior surfaces of dwellings, such as the replacement of roofing or siding, or the addition or replacement of windows or doors, or the addition of a porch or deck, or electrical permits, are exempt from the requirements of this section.

2. Installation, alteration or repairs of noncombustion plumbing or mechanical systems are exempt from the requirements of this section. R315.3 Alarm Requirements. Single station carbon monoxide alarms shall be listed as complying with UL 2034 and shall be installed in accordance with this code and the manufacturer's installation instructions. (Effective July 1, 2013.) R315.1 Carbon Monoxide Alarms. For new construction, an approved carbon monoxide alarm shall be installed outside of each separate sleeping area in the immediate vicinity of the bedrooms in dwelling units and on each level of the dwelling and in accordance with the manufacturer's recommendations. R315.2 Carbon monoxide detection systems. Carbon monoxide detection systems that include carbon monoxide detectors and audible notification appliances, installed and maintained in accordance with this section for carbon monoxide alarms

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and NFPA 720-2012, shall be permitted. The carbon monoxide detectors shall be listed as complying with UL 2075. Where a household carbon monoxide detection system is installed, it shall become a permanent fixture of the occupancy. EXCEPTION: Where carbon monoxide alarms are installed meeting the requirements of Section R315.1, compliance with Section R315.2 is not required. R315.3 Where required in existing dwellings. Existing dwellings shall be equipped with carbon monoxide alarms in accordance with Section R315.1. An inspection will occur when alterations, repairs or additions requiring a permit occur, or when one or more sleeping rooms are added or created.

tion of a porch or deck, or electrical permits, are exempt from the inspection requirements of this section. 2. Installation, alteration or repairs of nonfuel burning plumbing or mechanical systems are exempt from the inspection requirements of this section. 3.

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ON-SITE IREM® Reveals ...continued from page 7 • Lindsey Weir, Signature Property Group, Inc., Greensboro, NC • Karen Whitt, CPM®, RPA, CRE, Colliers International, AMO®, Washington, DC • Becca Wilson, Spherexx.com, Tulsa, OK • Deb Wise, Network Property Services, Muncie, IN • Sarah Wood, CPM® Candidate, Gene B. Blick Company, Indianapolis, IN • Marie Worsham, CPM®, Cassidy Turley, AMO®, Atlanta, GA

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mercial 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 busi-

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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

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How To ...continued from page 12 success of your company…why not do it right the first time? [* A small processing/analysis fee of $25 will be assessed, limit one per company] Author’s note: Ernest F. Oriente, a business coach since 1995 [30,100 hours], a property management industry professional since 1988--the author of SmartMatch Alliances--and the founder of PowerHour...[ www.powerhour.com and www.powerhourseo. com and www.pirmg.com and www. powerhoursalesacademy.com and www. powerhourleadersacademy.com ], has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars,

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Hello property management teams in the best industry ever! We’ve seen a lot in this industry, does this story sound familiar? Suzy Leasing – Last week I walked a move-out that skipped out on rent. The apartment was a disaster to say the least, I had fleas jumping on me and stepping over garbage. I got out of the apartment and instructed the maintenance team to toss everything. D – Suzy, I hope that you filled out an abandoned property notice to protect you from the resident coming back to claim that there was something of importance in the apartment. Suzy Leasing – We’ll it just so happens that the resident did come back and said that they had left a family heirloom in the apartment worth $25,000 and they wanted it back. D – Suzy, This is a “WHAT WERE YOU THINKING” moment! An abandoned property notice is about a $1.50 compared to a possible lawsuit for the $25,000 heirloom. Suzy Leasing – Could the tenant file a lawsuit?

By Dana Brown and Zach Howell D - Well, that depends on the attorney and judge, however, you will be going to court without an abandoned notice form and telling the judge that all of the contents in the apartment were junk and you tossed it. Suzy, one persons junk is another’s treasure. Even if you feel that the contents of the apartment are under $1,000, do yourself a favor, protect yourself and fill out the abandoned property notice. Renters are savvy and by not properly filling out the abandoned property notice form, the tenant can come back and claim damages on an item they say was in the apartment. Once the form is filled out and you have waited the appropriate amount of days and depending on delivery method, then it is time to give a shout out to maintenance. Z – As a maintenance tech, my first question would be what is supposed to be kept (as valuable) and what can be tossed. This can be tricky determining what is garbage and what is valuable. As D mentioned above, one person’s trash is another person's treasure. My basic rule of thumb is to start with what is on the floor. Likely, if it’s on the floor and covered in paper and garbage, it’s not valuable to the resident. If it is hanging on the wall or on a shelf

or in a dresser then it probably means something to the former resident, and should be stored temporarily until the abandoned property process has reached its statute of limitation. Next, the question is how do I get this unit ready to work on for turnover. As mentioned above. get the floors generally cleaned up -- usually with trash bags, rubber gloves, and a scoop shovel. If you find something in the garbage that may be valuable, stick it on the shelf to be addressed later. Next I would take many pictures of the remaining items left just for documentation. In the case of a skip or a hoarder, I would hire a vendor to do the pack out and moving of the remaining items. This not only frees up the maintenance staff, it also passes some liability of items being damaged or missing to a neutral party. If you have a storage space on site then have the vendor move the items into the storage area. I recommend not co-mingling the belongings of different residents, so only store one unit per storage area. If you don’t have a storage area then you will have to find a local storage facility, and the vendor will have to load the items and deliver them there. All of these costs can be charged to the resident and taken

out of the security deposit. Once the unit is ready for turnover work, and we have all valuable items stored and ready for pick up by resident, we simply wait. Lets be honest, most folks who skip will not be coming back for their items. That said, you never know when they may be setting us up for a lawsuit, so follow the same procedure with all residents. That’s why they call it “best practice”. If we ever do find ourselves in front of a judge we have a set process, pictures, invoices, third party vendors, the former residents junk, and a solid case. 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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On-Site Northwest • March 2013

ON-SITE

Housing Starts Down on Typical Multifamily Volatility; Permits Hit Four-Year High Due to a double-digit dip on the ably large gain in December, and is typically volatile multifamily side, consistent with the up-and-down nationwide housing starts declined swings that are often associated with 8.5 percent to a seasonally adjusted that sector.” In January, single-family housing annual rate of 890,000 units in January, according to newly released starts were virtually unchanged data from HUD and the U.S. Census from an improved pace in the previBureau. Meanwhile, issuance of per- ous month, registering a 0.8 percent mits for new-home construction rose gain to 613,000 units. This was the 1.8 percent to 925,000 units – the strongest pace of single-family housing production since July 2008. quickest pace since mid-2008. “Steady demand for new homes Meanwhile, multifamily housing is prompting builders to put more starts, which tend to display significonstruction crews back to work in cant month-to-month volatility, order to replenish thin supplies of declined 24.1 percent to 277,000 completed product,” noted Rick Jud- units. Regionally, combined single- and son, chairman of the National Association of Home Builders (NAHB) multifamily housing production and a home builder from Charlotte, gained 4.1 percent in the South and N.C. “We expect this progress to 16.7 percent in the West, but fell 35.3 continue through the spring buying percent in the Northeast and 50 perseason and beyond, with credit cent in the Midwest in January. Permit issuance, which can be an availability and poor appraisals indicator of future building activity, being the primary limiting factors.” VALLEY, METRO, ARIZONA “Today’s report is quite positive rose 1.9 percent on the single-family in that it shows continued upward side to a seasonally adjusted, annual movement in single-family housing pace of 584,000 units and rose 1.5 production and permitting activity percent on the multifamily side to a for both single- and multifamily 341,000-unit pace in January. Both units,” noted NAHB Chief Econo- were the strongest permit numbers mist David Crowe. “Meanwhile, the seen since mid-2008. Jan, Mar, Sep, Nov, activity rose in three decline in multifamily startsMay, reflects Jul,Permitting an adjustment from an unsustain- out of four regions in January, with a

10.1 percent gain registered in the Northeast, a 1.4 percent gain registered in the Midwest and a 1.1 percent gain registered in the South. The West posted virtually no change

in permitting activity, with a 0.5 percent decline. www.nahb.org

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Apartment Industry and Residents Contributed $1.1 Trillion to the Economy

“The Trillion Dollar Apartment Industry” report examines the industry’s total economic contribution

espite the worst economy in a generation, apartments and their residents contributed $1.1 trillion to the national economy in 2011, supporting 25.4 million jobs, according to a new report released recently by the National Multi Housing Council (NMHC) and the National Apartment Association (NAA). The report, along with an interactive map and economic impact calculator, is available on the new website www.WeAreApartments.org. Based on research by economist Stephen S. Fuller, Ph.D., of George Mason University’s Center for Regional Analysis, the report covers the economic contribution of apartment construction, operations and resident spending on a national level plus all 50 states. In addition, construction and operations data is available for 12 metro areas: Atlanta, Boston, Chicago, Dallas, Denver, Houston, Los Angeles, Miami, New York City, Philadelphia, Seattle and Washington, D.C. Highlights from the report include: • The apartment industry spent $14.8 billion on construction in 2011, and this was a year with one of the lowest multifamily completions on record, just 130,000 new units. The average

pre-recession was around 270,000 completions. • The industry spent $67.9 billion in 2011 to operate and improve the country’s 19.3 million apartments— more than four times the amount spent on construction—creating a $182.6 billion economic contribution supporting 2.3 million total jobs. • The country’s 35 million apartment residents spent $421.5 billion on goods and services in 2011—70 percent of which stayed within the local economy. The spending created a total economic impact of $885.2 billion supporting 22.8 million jobs nationwide. • The combined contribution of apartment construction, operations and resident spending equals $1.1 trillion, or more than $3 billion every day. “Although attention is usually focused on homebuilding and the singlefamily sector, the annual construction and operating outlays for apartment buildings with five or more units are major sources of economic activity, jobs and personal earnings,” said Fuller. “In addition, the residents of apartment buildings constitute an important source of local, state and national

economic activity as their spending for goods and services is recycled through the economy. Like the operating outlays for apartment buildings, the spending by renters recurs annually thereby supporting local economies on an ongoing basis.” In conjunction with the study’s release, the new website www. WeAreApartments.org breaks down the data by each state and the 12 metro areas through an interactive map. Visitors can also use ACE, the Apartment Community Estimator, a new tool that allows users to enter the number of apartment homes of an existing or proposed community to determine the potential economic impact within a particular state. “For the first time we’re able to quantify the tremendous economic impact of apartment residents across the country, in addition to the powerful contributions from apartment construction and operations,” said NAA Chairman of the Board Alexandra Jackiw, CPM, CAPS. “It truly shows a comprehensive view of the industry’s critical role not just in housing, but to the economy at large.” “Even in one of the worst economic climates we’ve ever seen, the multifamily industry and its 35 million

residents contributed more than $1 trillion to the economy,” said NMHC Chairman Thomas S. Bozzuto, CEO, The Bozzuto Group. “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 information or to download the report “The Trillion Dollar Apartment Industry”, visit www. WeAreApartments.org.  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. One-third of Americans rent their housing and 35 million people live in an apartment home. 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/governmentaffairs.

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Poverty & Race Research Action Council Applauds BPC Housing Report’s Focus On Affordable Housing Raises Concerns About Reduced Government Involvement

he Poverty & Race Research Action Council (PRRAC) today applauded many of the recommendations of the Bipartisan Policy Center Housing Commission, which issued a report proposing a national housing policy that seeks to further the nation’s economic recovery and meet the housing needs of America’s most vulnerable households. Philip Tegeler , PRRAC’s president, said his organization welcomed many of the Commission’s recommendations, but questioned whether increased privatization, retargeting of housing assistance, and an outcomebased housing policy – all priorities in the Commission’s housing report - can be implemented in ways that ensure a stable, accessible supply of affordable housing for the range of people who rely on it. “Clearly, the Commission has made some recommendations that can improve the supply of affordable housing for families and individuals of all income levels,” Mr. Tegeler said. “At the same time, we are skeptical about

proposals that would significantly reduce government involvement in housing finance. There may be legitimate concerns that the private industry will focus on reducing their risks and increasing profits and implement standards for mortgage loans that will leave sustainable homeownership out of reach for many Americans.” Another issue, Mr. Tegeler said, is whether liquidity for multifamily housing, including housing that is affordable for moderate - and lower-income families, could truly be ensured in a system that pares down the federal government’s current important role in housing finance. But Mr. Tegeler called it “very significant” that the Commission recommended that the federal government “encourage the removal of local and state barriers to the development of rental housing” by ensuring that “communities employing highly restrictive zoning” are “not rewarded with larger allocations of federal housing funds.” If implemented, Mr. Tegeler said this policy could help reduce segregated housing patterns in the country by

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opening the way for more development of affordable housing in affluent communities. Mr. Tegeler also praised the Commission’s promotion of de-concentration of poverty and access to neighborhoods of opportunity as one of the “key desired outcomes of HUD-funded rental assistance.” The report noted the importance of programs such as mobility counseling, and stated: “Both research and practice confirm the harmful effects of concentrated poverty on the well-being of low-income housing households and the health and educational benefits of accessing neighborhoods. While preserving individual choice, housing policy should strive to increase opportunities for households to find affordable housing in areas of opportunity and avoid concentrated poverty.” The Bipartisan Housing Commission is comprised of former Cabinet secretaries, former Senators and other leading housing and economic experts. It is co-chaired by former Senate Majority Leader George J. Mitchell (D), former Senator Christopher S.

“Kit” Bond (R), former Senator and HUD Secretary Mel Martinez (R), former HUD Secretary Henry Cisneros (D). In the commission’s report, Housing America’s Future: New Directions for National Policy, they propose a new housing finance system that calls for a far greater role for the private sector, a continued but limited role for the federal government, the elimination of Fannie Mae and Freddie Mac, and reform of the Federal Housing Administration. PRRAC is a leading voice advocating for more affordable housing options for low-income families, as well as public policies that promote fair housing and address housing segregation. The organization connects advocates with social scientists working on race and poverty issues, and promotes a research-based advocacy strategy on structural inequality issues, including housing. Mr. Tegeler was pleased that the Commission report emphasized the need for affordable rental housing Continued on page 22

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ON-SITE Poverty ...continued from page 21 and acknowledged that the demand for affordable rental housing currently far exceeds the supply. “We fully support the policy recommendation that our nation needs to ‘increase the supply of suitable, decent, and affordable homes’ through increased production of rental housing,” he said. Furthermore, Mr. Tegeler strongly agreed with the Commission’s stance that a tax credit for renters, a proposal developed by the Center on Budget and Policy Priorities, is worthy for consideration. The report said that this program could increase the ability of low-income households to pay

prevailing rents in high-opportunity neighborhoods. The program would be administered by the states. Mr. Tegeler said that PRRAC supports the Commission’s recommendation for creating flexibility and new approaches in HUD rental assistance programs. Specifically, he noted that the report recognizes the current Small Area Fair Market Rent demonstration project as a new approach that could make it easier for voucher holders to move to better neighborhoods. “The nation needs a vision for housing policy that focuses on the future,” Mr. Tegeler said. “In many ways, the

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commission provides that future outlook in this report. We look forward to working with the Commission, Congress and the Administration in making many of these recommendations a reality so that more Americans can live in communities that are thriving and will nurture their young.” About PRRAC The Poverty & Race Research Action Council (PRRAC) is a civil rights policy organization convened by major civil rights, civil liberties, and anti-poverty groups in 1989-90. PRRAC’s primary mission is to help connect advocates with social scientists working on race and poverty issues, and to promote a researchbased advocacy strategy on structural inequality issues. PRRAC sponsors

social science research, provides technical assistance, and convenes advocates and researchers around particular race and poverty issues. To join PRRAC’s biweekly email list go to http://visitor. constantcontact.com/manage/optin/ea? v=001EZ1xV5UTY8vgeWJATo2EKGf v_t1AGWN24Cbm7mN40TiEoJwIcHUSz9QzZcKDa0zywZpmf7ylcI%3D You can also follow PRRAC on twitter at https://twitter.com/PRRAC_DC, on Facebook at http://www.facebook.com/ pages/Poverty-and-Race-Research-Action-Council/480723658639202 and at www.prrac.org. Media Contact: Michael Frisby (202) 625-4328, mike@frisbyassociates.com SOURCE Poverty & Race Research Action Council

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