RHJ's Multifamily Magazine August - September 2016 by Professional Publishing, Inc

MULTIFAMILY Vol 1 Issue 3

August - September 2016

MAGAZINE

What's inside: Budgets; Don't Just Update That Spreadsheet Rents Rising Fastest Among Low-End Apartments What Is The Most Popular Word In Rental Listings In Your State? Apartment Settle With Justice Apartment Over Lawsuit Alleging Discrimination Against Children

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Rental Housing Journal â&#x2C6;&#x2019; Multifamily Magazine

Table of Contents O

Welcome to RHJ Multifamily magazine.

ver the last year Rental Housing Journal has seen an enormous amount of growth in reach. We have expanded beyond our regional journals for property managers and apartment owners with our publishing partnership with National Real Estate Investors Association and the launch of the quarterly national publication, Real Estate Journal, and annual Real Estate: Opportunities in Investing (ROI) publications. Additionally, weâ&#x20AC;&#x2122;ve added featured departments online: RHJinvestor.com and RHJblog.com.

RHJ Multifamily is a bi-monthly digital publication specifically for apartment owners and property managers nationwide. The editorial content will include market trends, best practices, legal commentary and other pertinent information from many of the most successful and knowledgeable sources in the multifamily industry. Thank you for reading and, again welcome to RHJ Multifamily magazine. Will Johnson Publisher

Featured Articles

2. Budgets; Don't Just Update That Spreadsheet 6. Creating an Annual Operating Budget for Your Multifamily Property 10. Rents Rising Fastest Among Low-End Apartments 14. 5 Keys That Sway Tenant Decisions About Your Rentals 18. What Is The Most Popular Word in Rental Listings In Your State? 20. How Are You Using Search Technology to Improve Your Online Marketing Results?

23. Apartment Settle With Justice Apartment Over Lawsuit Alleging Discrimination Against Children

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Budgets;

Don’t Just Update That Spreadsheet

h, September… my favorite time of year –warm days, cool nights, back to school, turning leaves – and all that ruined with the prospect of dealing with budgets! With the crazy schedules that fall brings it can be awfully tempting to just increase everything by the obligatory 2 to 3% and call it a day, especially if you are budgeting for multiple properties. Yet, I’ve learned the hard way that accuracy and usefulness can plummet

after a couple of years of that Over time I learned the hard way in my other businesses that budgeting method. The first thing to determine is what you are specifically budgeting for. Is this budget being used for only your personal projections? Or are you using this budget as you prepare a property for sale? Is it possible you might need this budget for refinancing or even for meeting ratios for your current loans? These different needs can make a big difference in how you approach the budgeting process.

a simple increase to cover “cost of living increases” might only not be accurate, but may also keep me from looking at areas in my business that I needed to reevaluate. Now I use a zero based budget for all my businesses. I start at the very beginning and build from the ground up each year. I know that sounds like a lot of work but it gives you the ability to examine your income potentials and opportunities for cutting expenses against your historical

Rental Housing Journal − Multifamily Magazine

Budgets; Don't Just Update That Spreadsheet

numbers. All major service contracts should be competitively re-bid to ensure that the best price possible is secured. If you have multiple properties or if you are a member of a local REIA make sure you use this leverage as a negotiating tool with your vendors. This should be effective for insurance, screening, trash, landscaping, security, cleaning, painting, advertising, etc. Speaking of historical numbers, budget time is a great time to look at your past trends in turnover. How many move-ins, move-outs have you had in each month or season? Has this happened year over year or was last year different? What may have caused the differences? How should you plan for these? Some things to expect might be the summer rush or the winter fall off. Many property owners see an increase in move-in and move out in the summer while children are out of school and the weather is good for moving only to see a complete slowdown in the winter. Some property owners even go so far as to write their leases to expire in the summer so if the tenant leaves it will be easier to fill the property. It also doesn’t hurt to look at current vacancies and rents in the area to see how you compare. There will be future articles on this subject but suffice it to say these can show areas of opportunities or challenges. For the budgeting process it can give you a more accurate picture for your projections.

The seasonal changes will lead to changes in other income like application fees, and expenses such as turnover costs. The other seasonal variable will be utility costs. Many utility companies publish rates or estimates of rates for the upcoming year. You will want to ensure that you use these more accurate numbers when budgeting. With these projections you can avoid the shock of budgeting for a generic

next time a budget is written. For example, a new permit may be required in October that was originally not budgeted for. Once realizing this, add it to the list, so it is not forgotten the following year.

3 percent increase in water/sewer charges when the utility provider had forecast a 10 percent increase. Some companies try to combat the seasonal effects in utilities by using accruals. I personally hated accruals in college and still hate them today so I attempt to get my projections as accurate as possible.

that we didn’t get it perfect. It does mean that when there are substantial variances to the budget, an analysis must be done on how to improve operations at the property or possible adjustments required for next year’s budget.

Keeping a journal in a separate worksheet of your spreadsheet file is incredibly helpful. It should contain all items that need to be budgeted during the year is helpful so that they aren’t forgotten the

One critical mistake I’ve made it the past is completing the budget and then not actually using it. Using it does not mean running actual-to- budget reports every month and bemoaning the fact

Rebecca McLean is a rental owner, Executive Director at National REIA, and Assistant Vice President at Greater Cincinnati Northern Kentucky Apartment Association.

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Creating an Annual Operating Budget for Your Multifamily Property By Theresa Bradley-Banta

multifamily real estate annual operating budget allows you to compare the actual financial performance of your property to your long-range projections for future income and expenses.

it yourself or if a professional third party management company manages it for you.

Important: Do not prepare an annual operating budget for your multifamily property or apartment building and then file it away and ignore it. This article will give you Itâ&#x20AC;&#x2122;s important to prepare an annual some great ideas for using a budget income and expense forecast for to your advantage. your property whether you manage

Benefits of Creating an Annual Multifamily Investment Property Budget A budget allows you to establish or identify: â&#x2C6;&#x2122;â&#x2C6;&#x2122; Performance targets.

continued on page 6

Rental Housing Journal − Multifamily Magazine

Creating an Annual Operating Budget for Your Multifamily Propety ∙∙ A baseline for property management reviews. ∙∙ Income and expense projections based on market drivers and assumptions. ∙∙ Capital improvements planning and projections. ∙∙ Problems that need to be resolved.

Some of the items to review are: Multifamily Property Income:

∙∙ Vacancies against leasing projections: Is your manager on

business/entertainment centers? Can you install vending machines in your common areas? ∙∙ Cash flow projections: With accurate cash flow projections you’ll be able to make strategic decisions about the allocation of revenue for improvements.

Importantly, a budget can help you maximize profitability and avoid unforeseen major repairs and expenses.

Third Party Property Manager Performance Baseline The best use of a property budget is to track how your manager is performing. Ask your third party property manager to prepare an annual budget forecast with side-by-side comparisons of actual vs. budgeted income and expenses. This budget then establishes a baseline for your property manager’s performance reviews. It’s a great idea to have regular meetings with your manager to review these comparisons. How are they doing in meeting projections? What can be done to course correct when and if your targets are not being met?

target for leasing new units or maintaining the average occupancy rate in your market? ∙∙ Lease renewal (rollover) projections: These are leases that are due for renewal during the budget period. Make initial contact with residents no later than 60 days prior to lease expiration. If there is not a renewal commitment from your tenant there should be a follow up in 45-days. ∙∙ Future profit projections from increased revenue: This could include rent increases, laundry revenue increases, the introduction of a utility reimbursement program (tenant pays utilities), etc. Where are you able to increase revenue at your property? ∙∙ Future revenue projections from new sources: Where can you find previously untapped revenue? Can you charge for amenities such as parking, storage, recycling or

∙∙ Replacement reserves: Determine what percentage of gross scheduled income can be put aside for future use. For example, you might want to hold back 5% of all scheduled revenue or you can allocate a certain dollar amount annually per unit in your property.

Multifamily Property Expenses:

∙∙ Projections for lowering current expenses: Are your mechanical systems operating at peak efficiency? You may be able to lower utility bills with systems that operate efficiently. Can you contest your current property tax payment amount? ∙∙ Review third-party vendors and service providers: Conduct annual reviews of your property vendors such as services that provide lawn continued on page 10

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Rental Housing Journal − Multifamily Magazine

Creating an Annual Operating Budget for Your Multifamily Propety care, cleaning, trash removal and property insurance. Let them know they will be up for annual review for cost and service. Do your service providers have pending increases? ∙∙ Utilize the know-how of your service providers: Ask your vendors for efficiency/cost saving suggestions (property improvements or services they can provide) and budget accordingly. ∙∙ Property management: Review all fees such as leasing, maintenance and on-site management (if applicable). Are you satisfied with the performance of your manager? Are their fees as projected? ∙∙ Most multifamily and apartment building management software programs will generate a budget-toactual income and expense report for comparison. Ask for this report. A budget is nice but you must compare it to the actual property financials.

Investment Property Analysis Assumptions (Drivers) Using the following or similar assumptions, you or your property manager can project all income and expenses over a 12-month period beginning with the current month. You can change these variables at any time. It’s a good idea to run several scenarios using both conservative and aggressive assumptions. The following assumptions are used for example only. You will need to determine your own variables based on your particular investment market. ∙∙ Vacancy (7%) ∙∙ Income Growth (5%) ∙∙ Expense Growth (3%)

∙∙ Cap Rate (7%) ∙∙ Expense Ratio (40-45%)

These assumptions will help you determine the best and worst case scenarios and will assist you in planning budgets for the long term. You can create 24-month, 36-month or 48-month projections using assumptions. For example, you can predict your property value over the long term at different cap rates and net operating income. This can help you set targets for increasing revenue and lowering expenses. For national averages read or download the National Apartment Association 2015 Survey of Operating Income & Expenses in Rental Apartment Communities at this link. Investment Property Capital Improvements Planning and Projections In addition to predicting regular, recurring expenses your budget should include projections for major capital improvements. For example, you might want to paint your common areas (halls, stairs, entry, mail room, laundry, etc.) every three years. Planning for long-term improvements allows you to stagger the improvements over time. By doing this you can avoid surprise expenses. These funds are commonly referred to as replacement reserves and include:

∙∙ Common area improvements such as new paint, lighting, vinyl, carpet, parking lots and driveways. ∙∙ Major building systems repair or replacement such as windows, roof, boiler and air conditioning. ∙∙ Individual unit upgrades.

A Final Note on Your Annual Operating Budget Use your annual operating budget as a tool. Plan to hold quarterly budget reviews with your property manager and/or your team at the very minimum. An annual budget can drastically maximize your profits when used as designed. Theresa Bradley-Banta is the founder and CEO of Denver, Colorado based Theresa Bradley-Banta Real Estate Consultancy, offering a highly skilled sounding board for the professional commercial real estate investor’s ideas and investment strategies. The company provides education and mentorship for entry to mid-level investors seeking reality-based strategies for buying and owning multifamily properties. BradleyBanta is the author of the book Invest In Apartment Buildings: Profit Without The Pitfalls. Visit theresabradleybanta. com. Reach her at (303) 733-4400 or theresa@theresabradleybanta.com.

Rents Rising Fastest Among Low-End Apartments

edian rents are rising of rental housing for those who than in 1960 faster for the least cannot afford the top rents. Others reporting this same trend expensive multifamily rental Zillow analyzed median rents include: homes. in 15 major housing markets According to a Zillow study, across the country and found that only a small portion of all new median rent for the least expensive third of apartments was outpacing apartments are at the low end. the overall rental market. Instead, most new apartment construction is at the top of Rents adjusted for the market, where luxury units inflation are 64 percent command top prices from wealthy renters. This leaves a shortage more expensive today

∙∙ Rents, adjusted for inflation, are 64% more expensive today than in 1960, according to an Apartment List analysis of U.S. census data, The Wall Street Journal reported. ∙∙ Rent growth, adjusted for inflation, has outpaced the rise in income (18%) by more than 350%. ∙∙ Higher construction costs, regulations preventing the development of more supply and increased demand as more people

Rental Housing Journal â&#x2C6;&#x2019; Multifamily Magazine

Rents Rising Fastest Amongh Low-End Apartments move to the most expensive cities are all factors that have driven rents higher. A smaller middle class has also reduced the number of renters able to afford higher rents.

The trend is especially prevalent in California. In Sacramento, for example, the price of the least expensive rental homes rose 33 percent over the last year, while overall median rent rose just 7 percent. Cheaper apartments were more in line with overall rent appreciation in Denver and Seattle. The least expensive rentals rose 9 percent in Denver over the past year, while the rental market as a whole rose 7 percent. In Seattle, the least expensive rental homes rose 14 percent and the entire rental market rose 9 percent. "There's a growing divide in the rental market right now," Zillow Chief Economist Dr. Svenja Gudell said in a release. "Very high demand at the low end of the market is being met with more supply at the high end, an imbalance that will only contribute to growing affordability concerns for all renters. We're simply not building enough at the

bottom and middle of the rental market to keep up with demand. As a result, these segments are becoming very competitive, as both new renters look to find their first place and existing renters get shut out of homeownership because of extremely limited for-sale inventory. Apartment construction at the low end needs to start ramping up, and soon, in order to see real improvement.

A Harvard study earlier this year found that the number of families spending more than one-third of their income on rent rose to 40 million in 2014 and that 11.4 million renter households had to pay more than 50% of their income in rent. The report also found the median rent for new units increased to $1,381 in 2015, 70% more expensive than overall continued on page 12

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Rental Housing Journal â&#x2C6;&#x2019; Multifamily Magazine

Rents Rising Fastest Amongh Low-End Apartments

median rent. The pricier rents, the report said, are effectively forcing some families out of the market. In Tampa, Fla., 93 percent of apartments built after 2014 were among the most expensive. In Miami, 69 percent of listed new construction was among the most expensive and just 11 percent was among the least expensive. Charlotte, Denver and Seattle had the smallest percentage of low-end construction built after 2014 -just 4 percent of new construction in Charlotte was among the least expensive third of rental homes

Rental Housing Journal â&#x2C6;&#x2019; Multifamily Magazine

Rents Rising Fastest Amongh Low-End Apartments

and only 7 percent in Denver and Seattle.

State United States California Texas New York Florida Pennsylvania Georgia North Carolina New Jersey Virginia Washington Massachusetts Maryland Alabama South Carolina Louisiana Oregon Connecticut Mississippi Hawaii Maine New Hampshire Rhode Island Delaware

Number of Homes at Risk of Being Underwater 1,867,801 42,353 46,804 96,708 934,411 2,661 24,379 57,259 190,429 46,287 31,235 62,069 64,299 12,735 83,833 80,080 4,959 18,173 5,572 37,556 5,412 4,064 4,853 11,670

Percent of Homes at Risk of Being Underwater 1.9% 0.4% 0.6% 2.1% 12.6% 0.1% 0.7% 1.6% 7.3% 1.8% 1.3% 3.1% 3.1% 0.8% 4.4% 5.9% 0.4% 1.6% 0.7% 9.1% 1.0% 0.7% 1.5% 3.1%

Total Value of Homes at Risk of Being Underwater $882 billion $49.2 billion $12 billion $71 billion $412.6 billion $730 million $10.2 billion $20.6 billion $93.1 billion $14.4 billion $13.8 billion $51.2 billion $19.6 billion $3.8 billion $45 billion $13.2 billion $1 billion $13.2 billion $1 billion $25.3 billion $3.1 billion $1.7 billion $2.9 billion $3.6 billion

Median Value of Home at Risk of Being Underwater $296,296 $891,269 $195,029 $495,712 $262,626 $188,505 $291,409 $266,693 $365,233 $252,985 $291,965 $551,866 $233,937 $234,987 $369,047 $139,042 $179,424 $414,616 $148,161 $475,345 $436,798 $337,320 $454,559 $261,802

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5 Keys That Sway Tenant Decisions About Your Rentals By Larry Arth

ow great would it be if you investors, is we collectively acquire Through a lot of interviews and knew what your tenants the economies of scale knowledge. surveys here is what we have found: or future tenants are thinking Through this experience we have Top 3 reasons a tenant about rental properties? It has been my experience that landlords tend to put all their energy into what they as landlords want without getting in tune with what the tenant wants. The nice thing about owning my own investment properties, as well as working with hundreds of

discovered the key to getting and keeping happy tenants is knowing what they think and the key factors in their decision-making process. Their thought patterns can change with the economy and their own personal financial situation, so you need to constantly keep on top of this.

may move

∙∙ Current lease expiring: As I mentioned above, most landlords do not try to understand what their tenants want and as a result they are not motivated to renew their lease. So a top reason given as to why they move was, “My lease was expiring.” Sad but true. Do not let this happen to you. I learned early on in continued on page 12

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Rental Housing Journal − Multifamily Magazine

5 Keys That Sway Tenant Decisions About Your Rentals the business world that success is all about building relationships. I knew I had to build a strong relationship with my tenants, and those long-term lasting relationships would translate into long-term loyal clients for my real estate investing. ∙∙ Job relocation or new job: Relocation for jobs tends to be more common place for the professional white collar workers. I have in the past addressed getting two- and three-year leases at the time of lease. Their response to this may give you clues as to whether they foresee job relocation in the future. People who wish to take on a two or three year lease typically feel pretty secure in their long term stability at the current location. ∙∙ Moving out of parents home: This, now more than ever, is common place. It is suggested that about a third of young adults age 18 to 30 have been living with their parents as a way to save money. Often referred to as the basement kids because they live in their parent’s basement. These may be great tenants but finding payment history will be more challenging. As an apartment or single family rental home may be a new expense for them, you want to be sure they can afford to make your rent payments.

5 keys that sway tenant decisions about your rentals

∙∙ Price of unit: One of their primary concerns is price. When probing deeper, we realized that this is better illustrated as value. It may be human nature to look at the price but it ultimately comes down to value. When they compare what your rental offers versus another rental they want the best value. You want to be sure to promote the benefits and attributes that your rental will offer them so they realize the value of your property. ∙∙ Location of the unit: Convenient location is of utmost importance. Knowing real estate is all about location, you want to sell the location of your unit. What is the reason you manage the property or why did you buy the property where you did? Share this within your ads. For example: near bus stops, near many businesses and places of work, near shopping or close to main roads and highway. ∙∙ Crime statistics: People of course want to feel safe. Assuming you purchased the property because it was in a desirable and safe neighborhood, share this with your tenants. It is what they want and

Photo by Larry Arth showing one of his rental properties he has kept constantly leased using the 5 keys that sway tenant decisions about rental property.

telling them up front will keep them from having to guess or figure it out. ∙∙ School systems: First, remember that housing laws prohibit discrimination against children and “familiar status” is a protected class. You do not want to get into the conversation about having children. However mentioning the quality schools in the area is important to them. ∙∙ Community amenities: Tenants too want a home not just a place to live. Share with them what is in the community or the nearby area. The walkability score can be a big benefit to them.

These are things that your tenants are thinking about. When you can address these triggers up front, you will stay ahead of your competition and keep your phone ringing. Any good business does research and a lot of surveys to find out what their customers want. As renting property is your business, you want to stay on top of what a tenant thinks, so you can stay ahead of your competition. It is the little things that are remembered.

A few little differences can mean a lot to a tenant These little differences in how we manage our properties have people wanting to stay and rent with us. As families outgrew their homes they would ask us if we had any other properties that were bigger, as they wanted to maintain our relationships. Their friends were always inquiring about renting from us. We have great reputations

Rental Housing Journal − Multifamily Magazine

5 Keys That Sway Tenant Decisions About Your Rentals

as property owners who care about their tenants. As a result, the only time people moved is if they left the area or if they bought a house.

When you show you genuinely are interested in a happy partnership where you provide a nice home and maintain the home in turn for happy tenants who pay on time, You all heard of, or personally live you have a successful business that the “Pride of ownership.” When is scalable and your investment you can create this same type of portfolio can flourish. pride for your tenants, you have created a great partnership that will Visit Larry’s website here. have them renewing their lease. A person’s home is his castle. It is his About the Author: independence. Even though they Larry Arth is a landlord and the founder and CEO of Equity Builders Group, a do not actually own the home, Florida based Real Estate investment you want them calling it their Group. As a 36 year veteran to real estate home. When they feel great about investing, Larry understands that we are now in a global economy and as times where they live and are happy with have changed, investment strategies must it, they will call it their home and change as well. Larry is an international recognized consultant and speaker and they will treat it like their home.

assists hundreds of investors per year, both foreign and domestic to realize their investment potential. He analyzes locations across the country for economic strength and the locations that yield the largest most sustainable return on investment. Within these locations he seeks out and gathers the best teams to deliver sound, high performing and most importantly sustainable turnkey investment. He works with investors to ride the wave of each areaspecific market surge. Larry’s primary focus is offering (Non Listed) safe and sustainable turnkey investments to the passive investor.

What Is The Most Popular Word In Rental Listings In Your State? P

eople looking for an apartment rental, or a singlefamily home, respond more quickly to certain words in your ads, depending on which state they live in, according to a study from Zillow.

times more likely to mention the distinctive home styles to an area’s word “marijuana” according to the recreational preferences, weather Zillow study. Actually probably and even a fondness for flora. not a big surprise, right? But some others may surprise you. Rental listing words

As to that mention above about “Close to Walmart” in the listing, while Walmarts are certainly So when landlords or property popular across Arkansas, the managers are placing ads for rent, state is also the headquarters for it makes sense for your ad to say, Walmart in Bentonville, Arkansas. “Close to Walmart,” or “Close to Starbucks,” depending on the state According to the study, Zillow in which you are advertising for analyzed every listing from the last tenants. year to find out which unique terms

set apart each of the 50 states, and Some of the states you can the results reveal a whole lot about probably guess which words what’s important to landlords match easily with the state. For and renters in each locale, from instance, in Colorado ads are 45

popular in these states Here are a few of the states and the rent terms that are most popular:

∙∙ California was especially interesting according to the report as fruit trees such as avocados, oranges or lemons are popular. ∙∙ Those fruit trees are also popular in Arizona, but not as popular as the words “RV gate” for listings in Arizona. ∙∙ Oregon, keeping with the importance of technology in state, has the word “free wifi” as the most popular term

Rental Housing Journal − Multifamily Magazine

What Is The Most Popular Word In Rental Listings In Your State? in ads in the state. It is six times more likely to be mentioned in an ad for rent. ∙∙ In Washington State, the words “eatin-bar” are the most popular in ads. ∙∙ In Utah, the “ski resort” is 73 times more likely to be mentioned in an ad. ∙∙ In New Mexico, fireplace features are popular in listing descriptions, and keeping in style with much of the state, “kiva fireplace” is 734 more likely to be included in a listing.

suggest to include “one exciting Resources: detail” to give the tenants a little Zillow Porchlight blog tidbit to set your rental apart. They suggest the one exciting detail Point2Homes could be something like: Rentalutions ∙∙ Beautiful views

RentPingMedi

∙∙ Private backyard ∙∙ Pool ∙∙ New renovations

Read the full story on Zillow here Be sure when picking that word to and take their quiz on the states. put in your ad in your state to avoid the overused, No. 1 word which is The folks over at Rentalutions “beautiful.” Too many ads use it also have some good advice on and it lacks the specifics you want important words to place in your in your ad to stand out from the listing. They have lots of good rest. And don't forget to feature advice on writing ads, but also they what is popular in your state.

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How Are You Using Search Technology to Improve Your Online Marketing Results? By Matt Easton

here are several ways to get your property to rank in search results and bring you more leads and more good tenants.

Better content to improve your organic search ranking, along with a paid campaign, will help build your presence in search. Always remember that content you want Paid search using Google to build is not about you and AdWords is one strategy that can your property necessarily. That of work, but you also want to be sure course is important. your website has the content your prospective tenant is looking for But content for the tenant also when they land on your website involves your site providing the top 5 places to eat, play and shop from that paid campaign.

near your apartments. What is 5 minutes away? What is 10 minutes away? Do content better than your competitors and you will see good results in search. A little content marketing on your site can help the tenants and show them you can be helpful and useful in their lives. You will get a return on it along with your paid search plan.

Rental Housing Journal − Multifamily Magazine

How Are You Using Search Technology To Improve Your Online Marketing Results?

Remember, do not try to outsmart Google’s algorithms. Get help from an expert. And be careful not to put all your eggs in one basket. Bigger players with bigger marketing budgets can outbid smaller players in paid search and take over the rankings in your geographic area. So get expert help.

Using paid searc

Apartment managers are having to take digital marketing and apartment SEO more seriously as weaknesses are starting to show up in the boom that has sent apartment rent rates skyrocketing for the last five years all across America, according to Axiometrics which you can see in the chart below.

Now with many cities like New York, Dallas, San Francisco and One example of a manager using Denver starting to build a surplus paid search (Google AdWords) is of new apartment units, rents are Mark Hunter in Austin, Texas. He beginning to slow and leasing found a way to stand out from all of the other properties rushing to lease apartments in Austin's hippest neighborhood using search engine optimization (SEO) and Google AdWords without a special offer like free rent or a lower lease rate.

to cover the added expenses of staff salaries and rising cost of land to build on. With many new properties featuring trendy locations, rooftop pools and fire pits, managers like Hunter will have to work harder to find renters.

Getting to the top of Google search "We found that once we started to rank the community at the top of Google search results, renters called our leasing office before

“I found myself questioning why my community website did not appear on Google by itself for the top keywords luxury renters in Austin were searching for,” Hunter said. So he got expert help and the results? His property went from 82 percent occupancy to 100 percent occupancy, with a wait list, in just 120 days using SEO and AdWords. “We decided we weren't happy only being visible to Austin renters in the cattle-call of Internet Listing Services and that it was time for us to stand out and attract renters willing to sign a lease today without a concession."

units is becoming increasingly anyone else," Hunter said. "By more difficult without solid being the first property a renter online visibility. visits, I don't have to be saying “me too” as the prospect mentions Over the last five years, many amenities they have already seen community developers have somewhere else. The best part decided to concentrate much about SEO is that I get the first of new construction on luxury at bat and when those renters that communities in an effort to help them achieve the profits needed continued on page 22

Rental Housing Journal − Multifamily Magazine

How Are You Using Search Technology To Improve Your Online Marketing Results?

visit us before any other property with other properties. If you and sign a lease, I can avoid a price want the highest rents and 100 war with my neighbors." percent occupancy you don’t want to compete. You want to So if you are as concerned as many dominate your space. That means operators are that your units will when someone even thinks about not be able to fetch premium rents

The next step is looking for a partner that can drive renters to you without asking you to make changes to your website or overcharging you for the work they do. There are many SEO providers that charge thousands per month for a mixed bag of results. You want to work with a firm that understands the industry and can guarantee results for a price you can fit in your budget. Once you get your property to the top of the search results you will hear the results in the form of calls to the leasing office. Make sure your staff is ready to follow up quickly. About the author: Matt Easton is EVP of MultiFamily Traffic the leading apartment SEO and digital marketing provider. MultiFamily Traffic works with 500 communities across the U.S resulting in thousands of leases signed every day. Matt can be reached at 303-8037372 or www.MultiFamilyTraffic.com

and you won’t keep occupancy an apartment in your city, your at 100% what can you do to get property company comes up. Google working for you? Working with the right apartment SEO and certified Google These days 98 percent of all leases AdWords specialist can help you Resources: start with a search online. If your ensure that your community property is not in the search results dominates as renters look for an Refining the strategy: A case study it may as well not exist. apartment. Paid, owned, shared and earned So then why are renters calling you The first step is knowing what the media if you are not in the search results? top searched keywords are in your Ranking factors: understand how The answer is, you are – you just city and where your website ranks the deck is stacked happen to show up via a surrogate for them. Multifamily Traffic has like an apartment listing service. a dedicated research team that Services like Apartments.com are performs this as a free service for fantastic but as Hunter put it “a anyone. You can call that team cattle call is not the best place to directly and have your research get the highest rent.” back free of charge in less than one hour in most cases. They are Listing services are great but by available at 888-683-5885. nature they make you compete

Apartments Settle With Justice Department Over Lawsuit Alleging Discrimination Against Children T

he owners and operators of seven apartment complexes in Michigan will pay $25,000 in a discrimination settlement with the U.S. Department of Justice over allegations the apartments violated the Fair Housing Act by prohibiting families with children from renting one-bedroom units, according to a release

U.S. Attorney Barbara L. McQuade

â&#x20AC;&#x153;The law prohibits landlords from refusing to rent to people with children,â&#x20AC;? U.S. Attorney Barbara L. McQuade of the Eastern District of Michigan, said in the release.

â&#x20AC;&#x153;We commend the defendants in this case for agreeing to change their policies and pay continued on page 24

Rental Housing Journal − Multifamily Magazine

Aaprtments Settle With Justice Department Over Lawsuit Alleging Discrimination Against Children

damages to victims for their past discriminatory practices. This settlement will further the goal of the Fair Housing Act to protect families from discrimination because they have children.”

The allegations were based on evidence generated by the Fair Housing Center of Southeastern Michigan, which had testers, posing as prospective residents, contact the defendants and ask to rent one-bedroom apartments. Testers who said that they wanted to rent an apartment with their child were told that children were not allowed in one-bedroom units. The Fair Housing Center filed a lawsuit, which was resolved separately.

Under terms of the consent decree, which still must be approved by “Adequate housing is a the court, the apartment owners fundamental need for families and operators agreed to: and equal access to that housing must be protected,” U.S. Attorney ∙∙ Establish a settlement fund of Patrick A. Miles Jr. of the Western $20,000 to compensate victims of District of Michigan, said in the their discriminatory practices. release. “Our ongoing actions ∙∙ Pay $5,000 in civil penalties to the United States. to enforce the Fair Housing Act provide that protection.” ∙∙ Eliminate the restrictions on children that they previously imposed at the seven complexes that they own and operate.

∙∙ Provide training on the Fair Housing Act to their staff and agents. ∙∙ Require defendants to inform tenants of their new nondiscriminatory policies.

“Families with children deserve access to housing that meets their needs without facing unlawful discrimination. The Justice Department will continue to enforce the Fair Housing Act to ensure that families with children have the same rights to housing within their price range as people without children,” Principal Deputy Assistant Attorney General Vanita Gupta, head of the Justice Department’s Civil Rights Division, said in a release.

The Justice Department suit was originally filed in November 2015. The apartment complexes involved include: Parkside East Apartments in East Lansing, Michigan; Holt Manor Apartments and C and H Apartments in Holt, Michigan; Kelly Manor Apartments in Owosso, Michigan; Camelot Apartments in Lansing, Michigan; Pine Cove Apartments in DeWitt, Michigan; and Park Place Apartments in Williamston, Michigan.

the Eastern and Western Districts of Michigan. The federal Fair Housing Act prohibits discrimination in housing on the basis of race, color, religion, sex, familial status, national origin and disability.

Discrimination in housing based on “Familial Status” Here is some language from the act: “The Fair Housing Act, with some exceptions, prohibits discrimination in housing against families with children under 18. In addition to prohibiting an outright denial of housing to families with children, the Act also prevents housing providers from imposing any special requirements or conditions on tenants with custody of children. For example, landlords may not locate families with children in any single portion of a complex, place an unreasonable restriction on the total number of persons who may reside in a dwelling, or limit their access to recreational services provided to other tenants. In most instances, the amended Fair Housing Act prohibits a housing provider from refusing to rent or sell to families with children.”

The case was handled jointly by the More information about the Civil Civil Rights Division’s Housing Rights Division and the laws it and Civil Enforcement Section enforces is available at here. and the U.S. Attorneys’ Offices of

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