Professional Publishing, Inc
www.TheLandlordTimes.com
ON-SITE
Vol. 22 Issue 1
January 2013
Published 22 Years
SEATTLE • TACOMA • OLYMPIA • EVERETT 17,000 PAPERS MAILED MONTHLY
TO
PUGET SOUND APARTMENT OWNERS, PROPERTY MANAGERS & MAINTENANCE PERSONNEL
Published in association with: Washington Apartment Association, IREM & Washington Multifamily Housing Association
Overall Rents Flatten; SR 520 Tolls Impacting Eastside Submarkets
Seattle - Apartment Insights survey shows rents flattening after three quarters of impressive gains, and SR 520 tolls negatively impacting some Eastside submarkets, reports Tom Cain of Apartment Insights. The data are from his Seattle firm’s 4th quarter statistics and trends on 50+ unit properties in the King/Snohomish market. VACANCY: 4.75% The vacancy rate for conventional, stabilized 50u+ properties in the King/Snohomish market is 4.75%, down from 4.85% last quarter, and 5.25% a year ago. Snohomish County was responsible for the improvement this quarter. Its vacancy rate fell from 5.28% to 4.70%. King at 4.76% vacancy remains about the same as last quarter. Continued on page 7
Apartment Insurance Costs Increase for the Second Consecutive Year According to National Multi Housing Council Report The cost to insure apartments increased by 9.5 percent between 2011 and 2012, marking the second consecutive year of rising insurance expenditures according to the National Multi Housing Council’s (NMHC) Apartment Cost of Risk Survey (ACORS). The survey covers data from more than one million apartment units, the largest number of units covered by the survey to date, operated by 55 apartment firms, tracking three principal components of insurance premiums: property, Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327
general liability and workers’ compensation. The 9.5 percent increase in 2012 came entirely from property risk costs, with general liability and workers’ compensation costs staying virtually unchanged from 2011. “Respondents noted that their greatest challenges in 2012 came from obtaining adequate and affordable coverage in traditional catastrophe risk zones. In fact, catastrophe exposed properties were the major drivers of the increase in premium costs and higher deductibles,” said
Current Resident or
PRSRT STD US Postage PAID Seattle, WA Permit #741
Rick Haughey, NMHC’s Vice President of Property Operations and Technology. “With U.S. catastrophe losses in 2012 expected to be moderately higher than average due to Hurricane Sandy, the outlook for insurance costs in 2013 remains uncertain. This uncertainty mitigates what would be downward pressure on 2013 catastrophe rates due to strong underwriting capacity for primary insurers and reinsurers.” Continued on page 11
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TRENDS 2012 A Huge Success! Over 1,500 people attended the 28th Annual TRENDS Education conference and Trade show. TRENDS is “THE” largest and oldest Northwest rental housing management and ownership education conference and trade show. See the TRENDS website at www. trendsnw.com. The 28th Annual TRENDS was held December 11th at the Washington Convention Center, Seattle. TRENDS is the longest running a continuously produced event at the Washington State Convention Center. TRENDS is the premier annual education conference and trade show for Northwest rental housing ownership, management and maintenance. TRENDS is a national award-winning event. TRENDS 2012 included the largest regional industry trade show featuring over 215 exhibitors and offered 43 education workshops. View the 28th Annual TRENDS workshop schedule at www.trendsnw.com Continued on page 3 Page 18 Washington Apartment Association
INCREASING COMMUNITY REVIEWS ONLINE SHOULD ON THE TOP OF YOUR... Page 14
HOW TO CONVERT A PROPERTY TO SMOKE-FREE HOUSING Page 6
Chapter 27 Institute of Real Estate Management HOW TO GET STARTED IN REAL ESTATE INVESTING