The landlord times metro october 2013 by Professional Publishing, Inc

METRO

Published 17 Years

Professional Publishing, Inc

www.RentalHousing Journal.com

PORTLAND & VANCOUVER

October 2013

Get Social With The Landlord Times

Monthly Circulation To More Than 20,000 In Portland/Vancouver Apartment Owners, Property Managers, On-Site & Maintenance Personnel Published in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association

Fair Housing Case Brought & EPA Takes Action on Lead Violations By Jo Becker, Education/Outreach Specialist, Fair Housing Council

Discriminating against families with children – even in pre-1978 properties that have lead – can also cost you! It is illegal under the federal Fair Housing Act (FHA)1 to deny housing to otherwise qualified families with children (or otherwise treat them differently in any way) simply because there are children in the household, unless the housing provider is exempt as a “designated senior community. The Renovation, Repair and Painting rule protects homeowners and tenants from dangerous lead dust that can be left behind after common renovation, repair, and painting work. It requires that contractors and subcontractors be properly trained and certified, and use Continued on page 3

A Personal Board of Directors… Do You Have One?

by Ernest F. Oriente, The Coach {Article #211…since 1995}

roperty management is rapidly changing, and you are faced with more decisions then ever before. Today’s fast-paced lifestyles create information overload. During your lifetime, you will have 10 or 15 major decisions and another 25-30 semi-major decisions. Developing a Personal Board of Directors will help you make great decisions and this article will tell you exactly how to implement this important idea. Once in place, you will never look back! Developing your Personal Board: Let’s start with the obvious. Your Personal Board of Directors might include: a doctor as a health/medical resource, a CPA for tax advice, an attorney for legal guidance, a banker for financial guidance and a priest/ rabbi/deacon for spiritual support. Here are some of the less obvious: a Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327

sales and marketing professional, a public relations expert, a business coach, a child care specialist, a human resource professional, a webmaster for Internet guidance, a property management professional three levels above you, an executive in an unrelated industry to property management and/or a business owner in the property management industry but not a competitor, based on geography or your resident profile. Tip From The Coach: Think of a Personal Board as your “inner circle”, as each person on your Board will share in very important information about your personal and professional life. Carefully consider every individual you invite to be on your Personal Board, as they should be selected and remain on your Personal Board for the rest of your life. You can always make changes

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to the people on your Personal Board, but richness comes from working together during good times and bad. Like a great bottle of wine, proper “aging” of your Personal Board will give it fullness, maturity and increasing value. Working with your Personal Board: Once you have formed your Personal Board, the next step is to make a list of the ways your Personal Board can assist and support your success. Some examples of professional and personal topics to discuss with your Personal Board: a new career, the start of a new business, advancement in your property management company, the relocation of your family for professional or personal reasons, how to handle a problem employee or supplier problem, life and legacy planning, your children and their development, financial planning, and the health of your marriage, just to name a few. You see, your Personal Board will be a rich resource to you in many ways, so long as you speak truthfully with them and are open to their specific advice and feedback. Continued on page 3

What Renters Want By Katie Poole

utting yourself in the tenants shoes may not be something you’ve done often, if ever. As our clients, it’s very important to know what tenants want and what will make your best residents rent long-term. High tenant satisfaction can not only enhance retention and occupancy rates, but also lower expenses and improve your bottom line. With so much riding on the satisfaction of your tenants, it is critically important to stay close to their priorities, perceptions and concerns. To be heard is a universal human need, and our tenants are no exception. Treat an existing tenant the way you’d treat a new one. From the first meeting through the end of the tenancy, practice active listening. This means don’t interrupt them, maintain eye contact when in person, acknowledge what they’ve said and repeat back what you’ve heard to make sure they feel understood. Take an interest in each resident’s business and stay in touch with them regularly, not just when they complain or it’s time for a renewal. When a tenant calls to Continued on page 5

Page 2 MultiFamily NW – President's Letter D&Z Page 3 Time to Convert a Retail Prop... Page 6 Dear Maintenance Men Page 7 The Multifamily Footprint... Page 8 Shoptalk Page 9 Portland Market Overview Page 12 Ask The Energy Expert Page 14 Clark County Rental Association – President's Message Page 15 IREM Event

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ello Everyone, WOW! The Spectrum Education Conference and Trade Show was truly magical this year. On September 19th, over 1150 attendees made their way to the Oregon Convention Center for a day of education and networking. They were able to choose from 32 educational offerings and visit over 130 Supplier booths. It was the largest Spectrum to date. Many thanks and kudos need to go to the Multifamily NW Staff, the Spectrum Committee and volunteers that helped make Spectrum a wonderful event. I can’t wait for next year! Please make sure to come and join us for the Fall 2013 Apartment Report

Breakfast. The event will be held at the Multnomah Athletic Club on Wednesday, October 16th. Twice a year Multifamily NW compiles the report based on industry data obtained from an extensive survey. The Apartment Report is the most comprehensive study of its kind in the area. The results of the survey will debut at the breakfast event and be discussed by our esteemed panel: Keynote Speaker:

• Dan Saltzman – Portland City Commissioner

• Amy VanderVliet – Regional Economist, State of Oregon

• Mark Barry – Mark D. Barry and

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• Janine Lind – Guardian Real Estate Services LLC

• Eric Cress – Urban Development Partners

Emcee: Steve Rose – Bristol Equities Don’t forget to register for the Reverse Vendor Tradeshow. The 3rd Annual Reverse Vendor Tradeshow will be held on November 14th at the Convention Center and is stacking up to be the best one yet. This is a member only event that affords our supplier members the opportunity to meet and present to decision makers of potential and/or current cus-

tomers. Currently, there are over 15 property management companies planning to attend and we’re expecting several more to participate. If you are a Supplier, you do not want to miss this event. All proceeds of the Reverse Vendor Tradeshow will go towards sustaining Multifamily NW’s legislative efforts. I look forward to seeing all of you there. These are just a couple of the many educational and networking events that Multifamily NW has planned for the remainder of the year. For a complete list, please visit our calendar of events at www.multifamilynw.org.

D&Z – What Were You Thinking Moments: Work Orders

uzy Manager – Dana, I have noticed lately that the maintenance department are taking too long on their work orders. This is causing residents to call and complain, what am I missing? D: Suzy Manager, I have always wondered why the administrative

department doesn’t take more ownership in the maintenance issues. A little more effort will only benefit the property and improve the service you provide. Imagine saving money and time on most work orders. Administrators that know maintenance basics can provide enough information for the maintenance

team to allow them to only make one trip with all of the supplies they need to fix the work order. Furthermore, the questions the office team ask the resident in regards to their work order may lead to an easy answer to fix the problem and avoid a work order altogether. A little effort and knowledge by your leas-

ing managers and on-sites can make the lives of your residents and maintenance team a lot easier. SM: That makes perfect sense. I am scheduling a meeting with my maintenance supervisor to discuss educating my leasing agents on maintenance basics and how to best

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The Landlord Times - Metro • October 2013

Time to Convert a Rental Property Prospect Visit to a New Resident: Under One Week

anta Monica, Calif., October 1, 2013 – Rent.com is releasing its annual property managers’ report, which captures trends in the rental market directly from apartment property managers nationwide. In the 2013 survey, property managers provided insight on the current and predicted demand for rentals, expected rent increases, how to retain residents, and the changing demographic profile of American renters. Renting Still Trending Rent.com found in its most recent survey that the rental market is still red hot. Compared to a year ago, 82% of property managers tell us that it takes the same amount of time (52%) or less time (30%) to convert a prospect who visits a rental property to a new resident. Additionally, 44% say there are more applications received per rental property on the market. Seventy three percent (73%) of the property managers surveyed said it takes just one week or less to convert a prospect who visits a property into a new resident. The majority of those, 47%, said it actually only takes a few days. With the rental market still tight, renters should be prepared to apply and sign on the spot if they really like an apartment. The U.S. rental vacancy rate, 4.3% according to Reis, while historically low, was unchanged in Q2 2013. This marks the first slowing in the dramatic rate of vacancy declines witnessed the last few years. With new apartment construction beginning to come online, this could mean rental rate relief on the horizon for renters in the tightest of markets next year.

But, let’s see what our property managers predict… Rents Going Higher, Inflation in Tow The majority of property managers, 60%, predict that rents will rise over the next 12 months and just 2% expect rents will fall; the remaining 38% think rents will be flat. Those who predict an increase foresee, on average, a five percent (5%) change over the next 12 months. The increase in housing prices is one of the key factors driving the 1.5% increase in the inflation rate as reported by the Bureau of Labor Statistics in September 2013. Cash is King Rent.com asked property managers to rank resident retention tactics from most to least important and it’s no secret that money talks. The top

three most important tactics are: 1) Keeping rental rates competitive (flat/smaller) was ranked first by the clear majority of managers. 2) Maintaining the property exterior and grounds came in a definite second for the majority. 3) Offering in-unit upgrades/ remodels was not far behind in third. Renters Are Younger and Richer According to 75% of property managers, prospects applying for apartments are younger or the same age as compared to a year ago. At the same time, the average income of prospects is generally either higher (42%) or the same compared to a year ago. The majority of property managers seeing demographic shifts

in family status among their prospect base (30%) reported that more singles are renting their own places compared to a year ago. These are hopeful signs that the downward trend in unemployment, albeit slow, is driving more financial freedom. Survey Methodology The survey was conducted among Rent.com’s property customers representing approximately 15,000 rental communities and 1 million rental units. Visit Rent.com

Puzzled by Section 8 Procedures? Let Multifamily NW and Home Forward help. Session 1 Date: October 30, 2013 Time: 6:00pm-8:00pm Location: Oregon State Bar Building 16037 SW Upper Boones Ferry Road, Columbia Rooms Tigard, OR 97224 Session 2 Date: November 4, 2013 Time: 10:00am-12:00pm

Advertise in the Landlord Times Metro Circulated to over 20,000 Apartment owners, On-site, and Maintenance personnel monthly. Call 503-221-1260 for more info. The Landlord Times - Metro • October 2013

Location: Oregon State Bar Building 16037 SW Upper Boones Ferry Road, Columbia Rooms Tigard, OR 97224 Cost: $25.00 members $35.00 non-members

Recently, the Oregon Legislature passed a bill removing the exception that allowed landlords to opt out of participating in the Section 8 program by not accepting a Section 8 voucher. Beginning July 1, 2014 you cannot refuse to rent to someone because they are a Section 8 voucher holder .

Multifamily NW and Home Forward are partnering to ensure that landlords have the opportunity to learn about the program and get their questions answered. Our classes will bring together a seasoned property manager with Section 8 experience and a representative from Home Forward’s Housing Choice Voucher program. Together, these instructors will teach you the basics of the program and answer any questions you may have.

M U L TI FA MI L Y NW 16083 SW Upper Boones Ferry Road Suite 105 Tigard, OR 97224

We encourage both landlords and managers new to the program, as well as those with experience working with Section 8 tenants to attend one of these sessions.

Phone: 503-213-1281 Fax: 503-213-1288 multifamilynw.org 3

Lead Violations ...continued from front page contractors that follow the rules.” The enforcement actions address serious violations of the RRP rule, including fourteen actions where the contractor failed to obtain certification prior to performing or offering to perform renovation activities on pre-1978 homes, where lead is more likely to be present. Other alleged violations included failure to follow the lead-safe work practices, which are critical to reducing exposure to lead-based paint hazards. Recent enforcement actions across the country include 14 administrative settlements assessing civil pen-

lead-safe work practices to ensure that lead dust is minimized. Lead exposure can cause a range of health effects, from behavior problems and learning disabilities to seizures and death, putting young children at the greatest risk because their nervous systems are still developing. “Using lead-safe work practices is good business and it’s the law,” said Cynthia Giles, assistant administrator for EPA’s Office of Enforcement and Compliance Assurance. “EPA is taking action to enforce lead rules to protect people from exposure to lead and to ensure a level playing field for

alties of up to $23,000. These settlements also required the contractors to certify that they had come into compliance with the requirements of the RRP rule. Additionally, EPA filed three administrative complaints seeking civil penalties of up to the statutory maximum of $37,500 per violation. As required by the Toxic Substances Control Act, a company or individual’s ability to pay a penalty is evaluated and penalties are adjusted accordingly. You can read up on the settlements at www.epa.gov/enforcement/waste/cases/lrrp050213.html.

For more about lead and instructions on getting certified go to www.epa. gov/lead. You can also find additional information, including required pamphlets and disclosure forms as well as additional lead articles at www.FHCO.org/lead.htm. Following is a media release from Fair Housing Center of Greater Boston The Fair Housing Center of Greater Boston (FHCGB) announced that a West Roxbury Property Management Company has agreed to pay $15,000 in a housing discrimination case that resulted from postContinued on page 17

A Personal Board ...continued from front page future. Remember, “perfect practice” makes for perfect decisions! Communicating with your Personal Board: The next step is to decide how often you will meet with your Personal Board. For some, monthly is perfect, for others twice a year is great and many meet on a quarterly basis. The frequency is up to you and your Board members, but the frequency should depend on the velocity of issues or decisions you are making. Here are some examples of ways you can meet or communicate with your Personal Board: in person, by telephone, by teleconference as a group, by E-mail, by letter, by video conference or during a nice meal. With today’s menu of technolContinued on page 7

Tip From The Coach: While your Personal Board can give you powerful guidance and suggestions, the final decision must always be yours. When making an important professional/personal decision, take a blank sheet of paper and list all the pros and cons surrounding the issue, then ask for and gather the feedback from your Personal Board. Next, write a brief summary statement to yourself explaining the reasons for your decision and store this sheet in a special place. Lastly, mark your calendar for some point in the future to evaluate the results of this important decision. A review of each important decision you make during your lifetime will help you evaluate your accuracy and clarity about the

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The Landlord Times - Metro • October 2013

Landlady Katie ...continued from front page complain, you should listen, empathize, and solve the problem. Don’t make excuses. Most often tenants just want someone to listen to their stories or concerns. Keep all lines of communication open with your residents. Don’t be a stranger. It’s not enough simply to provide a lot of services to tenants. Being available in person can sway that renewal decision. Be timely in your responses to requests or questions your tenants will have. Not only are we bound by laws in our response times to some repair requests, but it is also a good business practice to respond within a reasonable time. Recap conversations in writing to maintain a paper trail of important communications. If you’re going to be unreachable at

any time, be courteous and let them know how to handle any emergencies in your absence as you would expect this of them contractually. While it’s important to stay in touch and build a good working relationship with your residents, you also need to respect their need for privacy. Don’t make up excuses to “stop by” or leave notes for your tenants at the property unless absolutely necessary. Not only could this be construed as harassment but it can also be annoying. The rental is their home. By law, you must give tenants plenty of proper notice before paying any visits to the property. Make clear your inspection policies and practices at move-in so that it is clear when they can regularly expect you. Lastly, would you live in your

rental comfortably if you had to? Is the yard manageable? Do the appliances work consistently and to their potential? Is the unit weatherized to help keep the energy bills reasonable? Your rental should be a place that you can be proud of and that tenants will maintain with integrity. If you make sure that your property stands out as well-kept, then you can ask for slightly higher rent rates than those that don’t. Be flexible in your concessions. If tenants are offering to make improvements and they won’t be able to take with them at moveout, help them out. Help can mean purchasing the materials for a desired project while the tenants pay a contractors labor, or splitting the costs with your renters to add new internet jacks to a back bedroom.

Spending on upgrades may hurt the bottom line over the short term, but improvements will pay dividends in long-term tenants. Offer a fair deal, use comps to explain your offer, and communicate your position clearly. If a property is well-maintained, it gives tenants a reason to stay.

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: danabrown3321@gmail.com. Zach can be reached at: zach@aminstitute.net

What Were You Thinking ...continued from page 2 interact with maintenance staff. D: What are your thoughts on the relationship and interaction between leasing staff and maintenance, Zach? Z: Clarity and communication are they key. Let’s clarify from the start. A service request is simply something anyone at the site may want to be done by the maintenance staff. On the contrary a work order is when a service request is written down and documented. Based on my experience, I would make it mandatory for office staff to write up any service request into work order form, no matter how small. If a request is not written up on a work order then it never really happened. Maintenance techs work best off of lists. A stack of generated work orders is the best type of list, because it forces the maintenance staff to address each work order and assign it to a specific destination -- either “not started”, “in progress”, or “completed”. This can correspond to work order bins at the office, so that each service request that is generated into a work order is assigned and returns to the office to be completed later or filed away as complete. Now that we have clarified that, let’s look at an easy way to generate clearer work orders from the service requests the office staff receives. Most office staff doesn’t understand maintenance diagnosis and find it hard to generate clear work orders from the information that’s given to them by the residents. So, many work orders end up being written up like “toilet is broken” or “garbage disposal not working”. For a maintenance tech this can be as easy as a

plunger or a disposal hex tool, and take him less than 5 minutes to perform, or it could mean a new wax ring or new disposal which could take closer to 45 minutes and extra trips to the shop. Here is a simple process that can be put in place to help your office staff ask the right questions during the service request process in order to generate a work order that will save your maintenance staff time and effort, and maybe even some work orders all together. It works like this; I print and laminate a chart of the 10 most requested work orders and accompanying questions to ask. I usually tape it to the desk of the leasing staff and manager if they will let me. In my experience, this simple process has lead to hundreds of hours of free time. I explain it this way; if it takes your maintenance tech 7.5 minutes to walk to his shop because he didn’t have what he needed on the first trip due to a poorly written work order that equates to 15 minutes of lost time round trip. This doesn’t even take into account time wasted looking for parts in a disorganized shop (that’s a topic for another time). If this 15 minute generalization holds and that tech has to make 4 unexpected trips to the shop that’s 1hr/day, 5hr/ week, 20hrs/month. That is more than 2.5 days of lost time and effort per month due to poorly written work orders. The manager complains that things aren’t done and the maintenance staff is complaining that there’s not enough time. They are both right if we continue to generate poor work orders.

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The Landlord Times - Metro • October 2013

Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez Dear Maintenance Men: We are thinking of offering free WiFi at our 25 unit apartment building. What are the steps involved and what are your recommendations? Ryan Dear Ryan: Very interesting question! The short answer is hire a professional IT company who has experience in large wireless Internet installations. For the long answer, we contacted Paul at Acutech Network Services, Inc. www.Acutech.net . We have worked with Paul’s IT company for over ten years knew he would have a good answer: Today, consumer-grade wireless routers and access points are fairly easy to install and work well in most single family homes or small businesses and they will provide good coverage over a 100-150’ area and marginal coverage up to 200’. In a 25 unit building, one access point will not provide the coverage you will need. Without seeing the building, my educated guess is you will need about 6 access points. Now if you use consumer grade products, 6 access points will give you 6 totally independent SSID’s. (The SSID is what you see on your laptop or smart phone and connect to. Essentially, it is the connection point to the wireless network.) This will mean your residents will have to pick from one of 6 devices to connect to. For you, it will mean you will have 6 devices to manage, including managing passwords. And worse yet, because all these are independent devices, you may end up with “channel conflicts” where two or more devices compete for the same channel and knock each other off. When this happens, your residents will experience lots of dropped connections. In situations like this, the proper way to setup wireless is to use a centrally managed, commercial grade system with multiple access points. The access points on these systems each give better coverage than a consumer grade product designed for single family homes. They also function more like a cell phone network. In other words, there is a single connection point (or SSID) for the entire network. You can initially establish a connection at one end of the building (let’s say through access point #1) and

then walk to the far end of the building without dropping a connection. As you move away from access point #1 and your signal becomes weaker, the central management device tries to find you another access point to connect to with a stronger signal and manages the handoff in such a way that the connection does not drop … essentially the way a cell phone network works. Given these systems work with a single router & firewall, you will only need one connection to the Internet, you will only have one SSID for your entire network, and you only have one central place to manage passwords. The downside of these systems is they are more expensive than consumer grade products and are much more complicated to program which is why I recommend the use of someone who specializes in this technology. Dear Maintenance Men: I have 25 or so units (condos/ houses) all spread out and I am not sure how to handle keys. I hate to think that a previous resident will come and access the unit after they have moved out, but the $50 replacement of the lock has prevented me from replacing it every turn. I have heard about those easy to rekey locks where you simply put a pin in the front of them. Do you have any ideas how to manage this? Brian

Dear Brian: As you are aware, you should always change locks on a unit turnover. You never know who might have keys to that unit. I think we can find a simple solution to your problem. Since your units are spread out and not all in the same building, a swap system can be put into place. Supply yourself or your maintenance team with two or three lock sets and when you get a vacancy, swap out the existing lock set with the spare set. The unit now has a new or different lock set and the old lock set can now be swapped into another unit the next time you have a vacancy. This system only works safely if your units are spread out geographically. Another system that works very well with all rental units is the Kwikset Key Control Deadbolt system. This system allows the owner or management company to have one master key and the ability to rekey the lock without removal. It only takes a few moments to rekey a deadbolt. With this system, a temporary vendor key can be setup while the unit is being made rent ready. When the unit is rented, simply rekey and hand the new resident their new apartment key. http://www.kwikset.com/SmartSecurity/Key-Control.aspx

Dear Maintenance Men: What is a pre-hung door and why would I want to buy one over a regular door? Matt Dear Matt: Pre-hung doors come already installed in the door frame. The components include the door, outside frame and the hinges. Before the advent of “Pre-Hung Doors”, hanging a door required a skilled installer. Now a door can come already in its frame with the hinges in place. You must start with a rough opening, which means the old doorframe must be removed. The skill required is minimal and you can often do a professional looking job the first time.

QUESTIONS? QUESTIONS? QUESTIONS? We need more Maintenance Questions!!! To see your maintenance question in the “Dear Maintenance Men:” column, please send submission to: Questions@BuffaloMaintenance.com Please “Like” us on Facebook.com/ BuffaloMaintenance

Advertise in the Landlord Times Metro Circulated to over 20,000 Apartment owners, On-site, and Maintenance personnel monthly. Call 503-221-1260 for more information.

The Landlord Times - Metro • October 2013

The Multifamily Footprint in The United States in 2013 By: by John Wilhoit Jr.

hat percentage of the housing stock in the United States is represented by multifamily? We define multifamily as property with five or more dwellings. One would think there is an easy answer, alas, many very wellinformed individuals and institutions have varying answers. So how many multifamily dwellings are there in the United States, really? In a country of over 314 million people fully one-third live in rental housing. This number has increased

somewhat since the start of the economic gyrations that began in 2008. As the foreclosure rated increased more people became renter’s. As the home ownership rate decreased the n u m b e r o f re n t a l h o u s e h o l d ’ s increased. It’s a pretty easy calculation to make for rental housing. Concurrently, as more family’s turned to renting versus owning, construction starts for all housing fell off a cliff. Even today housing starts are below levels necessary to maintain a viable housing stock given our population growth. Average household size in the U.S.

is 2.63 person per dwelling. Divide the population of 314 million people by 2.63 persons equals 119,391,634 households. Roughly 40 million of these are rental households. We are on our way to finding out how many people reside in just multifamily. Remember, rental housing includes single-family, 2-4 units properties and mobile homes, garages, tree houses, recreational vehicles are all forms of housing minus tents (Ok maybe not tree houses). We qualify multifamily here to account for converted garages, basements and attics that are sometimes

utilized as rentals. A fourplex with a converted basement without an electric meter is not a multifamily asset; it’s a fourplex. Nor is a single family house recently converted without permits advertised as a duplex (all on one meter and with a few people living in the garage). According to the U.S. Energy Information Administration www.eia.gov in 2005 there were more than 16,500,000 buildings with five or more units. According to the National Multi Housing Counsel www.nmhc.org there are 17.8 million multifamily renter households today. Taking this number

and social media strategic solutions [ http://www.powerhour.com/propertymanagement/socialmedialeadership.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox sales methodologies. Recent interviews and articles have appeared more than 7000 times in business and trade publications and in a wide variety of leading magazines and newspapers, including Smart Money, Inc., Business 2.0, The New York Times, Fast Company, The LA Times, Fortune, Business Week, Self Employed America and The Financial Times. Since 1995, Ernest has written 200+ articles for the property management industry and created 350+ property management forms, business and marketing checklists, sales letters and

presentation tools. To subscribe to his free property management newsletter go to: www.powerhour.com. PowerHour® is based in Olympic-town…Park City, Utah, at 435-615-8486, by E-mail ernest@powerhour.com or visit their website: www.powerhour.com

continued on page 18

A Personal Board...continued from page 3 ogy, the distance between you and your Personal Board members is no longer an issue. Instead, invite only the best to be on your Personal Board and allow technology to facilitate your communications. Tip From The Coach: As you invite each member to participate on your Personal Board, be very clear about your expectations for each board member, the frequency you will meet or be in touch, and your request for pointed and honest feedback. After each person agrees to be on your Personal Board, discuss how they would like to be compensated for their time. In most cases, a trade or barter is done for goods or services, in many cases a small gift or favor is enough. If necessary, offer to pay a small fee to each board member, as the value of their feedback will be returned many times over. Want to hear more about this important topic or ask some additional questions? Send an E-mail to ernest@powerhour.com and The Coach will E-mail back to you a free invitation to be a participant on a PowerHour conference call. On this call we will discuss how to form your Personal Board of Directors, in 30 days!

Author’s note: Ernest F. Oriente, a business coach since 1995 [31,000 hours], a property management industry professional since 1988--the author of SmartMatch Alliances--and the founder of PowerHour...[ www.powerhour.com and www.powerhourseo.com and www.pirmg.com ], has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars, traditional and Internet SEO/SEM marketing, competitive sales strategies, and high leverage alliances for property management teams and their leaders. He provides private and group coaching for property management companies around North America, executive recruiting, investment banking, national utility bill auditing [ www.powerhour.com/propertymanagement/utilitybillaudit.html ] national real estate and apartment building insurance [ www. powerhour.com/propertymanagement/ insurance.html ], SEO/SEM web strategies, national WiFi solutions [ www. powerhour.com/propertymanagement/ nationalwifi.html ], powerful tools for hiring property management SuperStars and building dynamic teams, employee policy manuals [ http:// www.powerhour.com/propertymanagement/employeepolicymanuals.html ]

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hile market conditions continue to fluctuate, there may be times when you find yourself in a situation where you have no apartments to show. Maybe you don’t have a model or the one you have is “out of commission” or you are in a make ready process with the vacant apartments that are available. Recently, I was asked the following question:

I know I shouldn’t show an apartment that isn’t ready, but I hate to ask someone to come back. I’m concerned they won’t make the time to come out a second time. What can I do?

First of all, you do not have to show an apartment in order to rent one. While many people are “visual” and having a model or vacant apartment to show is a tremendous tool, it is not the only tool. Following are some comments from a shopping report in which the leasing consultant did not have anything to show: With a diagram of the 2 bedroom, the consultant “walked me through” the apartment as though we were inside. She used the terms “you” and “yours” during the entire “virtual” tour. She pointed out the various storage areas, using the floor plan, and she even showed me the shelf and cabinet

over the washer and dryer. The consultant used descriptive words like “oak cabinetry” and “counter with breakfast bar.” She mentioned the wood-burning fireplace and also the vaulted ceilings. She then pointed out where the fireplace is located and indicated where the ceiling begins to get higher. The consultant made sure I understood the lay out of each room, and helped me visualize what type of furniture would fit in each area. When I questioned her about the location of electrical outlets and phone jacks, she was able to help me pick out the best place for my computer. When the apartment “presentation” was completed, the consultant walked me over to the location of the upcoming apartment. She pointed out and described the amenities we saw along the way and discussed the proximity of each one to the location of my apartment. She made sure I understood where I could park, as well as my guests. When we were outside the apartment, the consultant pointed out the other advantages of this particular location. She drew my attention to the private patio, nearby fountain and lush landscaping. She also mentioned the quiet, friendly neighbors who live upstairs and next door. Once the leasing consultant con-

firmed that I was pleased with what I had learned about the apartment and community, she asked if I would like to put a hold on the apartment until it was ready for me to view. When I declined, she told me that she understood my hesitation since I had not actually seen the apartment. However, she reminded me that it was the only one she had coming available, and that without a deposit she could not hold it for me. When I continued to hesitate, the consultant told me that my deposit would be fully refundable if I did not like the apartment once I saw it. As you can see from the example above, having no apartments to show did not hamper that leasing consultant’s ability to sell AND close the sale! In fact, it was quite the opposite: With no apartment to show, this leasing person became even more creative in selling her product, as she was forced to describe the apartment in order for her prospect to visualize what she was talking about. Sometimes a client will get MORE detailed information in these situations, not less. Remember: You only get ONE chance to make a good first impression. Selling what you have to offer, even if you can’t show it will increase your leasing ratio. Rather than demonstrating a dirty apartment or asking

prospective renters to come back, put your product knowledge to the test: Give a thorough presentation with whatever sales tools you have at your disposal, and then close the sale. Once you rent that last vacant apartment, then you can start working on those unrented notices.

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Metro Apartment October 2013 2008 The Landlord TimesManager - Metro •• October

Portland Oregon Market Overview Multifamily Housing Update 2Q13 September 2013 by RED CAPITAL GROUP® 2Q13 Payroll Trends and Forecast The Rose City labor market wilted a bit during the fall and winter seasons but blossomed again in full force during the spring and early summer. Payrolls grew at a 16,000-job, 1.6% annual pace during 2Q13, up from 10,300- and 13,200-job gains in 1Q13 and 4Q12, respectively. July headcounts were up 23,600 jobs over the comparable period of 2012, representing the strongest 12month advance recorded since March 2007. Seasonally-adjusted data were robust, indeed. This series indicates that Portland establishments created 14,800 jobs April to June, the largest one quarter harvest in the 24-year BLS data series. The year-to-date through July total was 24,300! The seasonallyadjusted figures are somewhat inconsistent with the unadjusted data against which our model is specified. The 97.1% adjusted R-squared model expects growth to accelerate to about 2% in 2H13 and remain in the high-1% to low-2% range through 2015. The base case calls for acceleration thereafter with a momentum boost from faster U.S. income and job growth. As a result, annual job adds may surge from the 20,000-job area to about 30,000 in the out-years.

Payroll Job Summary Total Payrolls 1,025.2m Annual Change 16.0m(1.6%) 2013 Forecast 16.3m 2014 Forecast 20.0m 2015 Forecast 21.2m 2016 Forecast 28.8m Unemployment 7.5% (July) 2Q13 Absorption and Occupancy Rate Trends Owners continued to enjoy torrid apartment demand even as the market grew exceptionally tight. Tenants occupied a net of 439 vacant units during 2Q, on par with the 430-unit average recorded during the previous three quarters and sharply higher relative to spring quarter 2012 (50). Supply of 179 units was partially offsetting, but occupancy surged 20 basis points sequentially and 40 bps year-over-year to 97.1% (Reis) nevertheless. Axiometrics surveys of larger properties found a 96.0% average occupancy rate for 2Q13, up 80 bps sequentially and 50 bps year-over-year. Reis models suggest that supply will put downward pressure on occupancy rates beginning in 2014, trimming about 120 bps from the metro average by 2017. The RCR absorption model (a- R2=89.4%) is considerably more optimistic than Reis’s and projects that renters will net lease about 50% more units than Reis forecast from 2014 to 2016. Consequently, RCR foresee occupancy retesting the 97% level

by 2016 after touching a cycle bottom of about 96.5% in late 2014.

Occupancy Rate Summary Occupancy Rate (Reis) 97.1% RED 50 Rank 5th 5th Annual Chg. (Reis) +0.4% RCR YE13 Forecast 96.7% RCR YE14 Forecast 96.5% RCR YE15 Forecast 96.6% RCR YE16 Forecast 96.9% 2Q13 Effective Rent Trends Portland apartment owners enjoyed some of the strongest rent growth in the country as metro average effective rent surged $10 (1.2%) quarter-toquarter to $866, considerably faster than 1Q13’s $7 (0.8%) advance (Reis). Expressed on a year-onyear basis, rents increased 4.2%, marginally slower than 1Q’s 4.3% metric. Axiometrics surveys of larger properties record a more dramatic 6.6% y-oy rent surge during the spring, largely due to a 2Q13 sequential quarter gain of more than 5%. Reis report that every submarket achieved sequential quarter rent growth of 0.8% or greater. Tech redoubts Beaverton (1.5%) and Northwest (1.6%) chalked down the largest gains, followed by Tigard (1.1%) and Vancouver (0.9%). Variables in the 90.0% adj-R2 RCR rent model include metro income and payroll growth and U.S. payroll growth. Slower expansion in these variables contribute to rent deceleration to the high-2% area through 2014. Stronger economic growth in 2015 and 2016 should reignite rent trends, as gains return to the 3.2% - 3.7% region.

Effective Rent Summary Mean Rent (Reis) Annual Change RED 50 Rank RCR YE13 Forecast RCR YE14 Forecast RCR YE15 Forecast RCR YE16 Forecast

$866 4.2% 5th 3.4% 2.9% 3.2% 3.6%

2Q13 Property Markets and Total Returns Transaction volume was steady in the second quarter as ten properties valued at $5 million or more exchanged hands. Proceeds totaled about $250mm and the average price per unit observed among trades for which pricing information was available was $129,151. These statistics compare to $155mm and $96,881 in the first quarter. The marquis transaction involved a purchase of a 4-year old Downtown high rise by a large pension fund. The fund paid $95.8 million for class-A property, achieving a going in yield of 3.8% by our estimate (although reportage from brokers suggest that it was 40—50 bps higher), which would represent one of the lowest ever Portland cap rates.

Continued on page 10 Metro Apartment The Landlord TimesManager - Metro • October 2008 2013

Market Overview...continued from page 9 A pair of Vancouver garden complex trades are more indicative of the general market, with cap rates in the 5.6%-5.8% range. Using this as our guide, RCR maintain its 5.6% indicative level for purposes of calculating expected total return. We now estimate a 7.0% 5-year unlevered return, down 40bps quarter-to-quarter. Driving forces include a moderating rent forecast and rising 10- year UST yield and SUBMARKET TRENDSthat erode terminal inflation forecasts NOI and raise terminal cap rate to SUBMARKET TRENDS 6.6%. Effective Rent

Submarket

Beaverton

Submarket

Metro

Total Return Total Return

10% 12% 8% 10% 6% 8% 4% 6% 2% 4% 0% 2% 0%

2Q12

2Q13Rent Effective

Change

2Q12

$840

5.0%

3.3%

$737 $840 $767 $737 $924 $767 $1,206 $924 $858 $1,206 $827 $858 $866 $827

Change

2Q12

2Q13

$831

$866

4.2%

3.3%

2.9%

4.0%

4.5%

4.0%

4.5%

90% 90%

5.9%

3.5% 5.0% 4.2% 3.5% 3.2% 4.2% 2.7% 3.2% 4.6% 2.7% 4.0% 4.6% 4.2% 4.0%

Change

2.7%

2Q13

5.9%

1.9%

2Q13 Physical Vacancy

$712 $800 $737 $712 $895 $737 $1,174 $895 $821 $1,174 $795 $821 $831 $795

POR T (R A I =2. 07) R ED 46 A VG. (R AI =4. 03) POR T (R A I =2. 07) R ED 46 A VG. (R AI =4. 03)

1.9%

Physical Vacancy

$800 2Q12

East Gresham Beaverton Milwaukie / Oregon East Gresham Northeast Milwaukie / Oregon Northwest Northeast Tigard / Oswego Northwest Vancouver Tigard / Oswego Metro Vancouver

12%

Trade & Return Summary $5mm+ Sales 10 Approx. Proceeds $255mm Avg. Cap Rate (FNM) 5.3% Avg. Price/Unit $129,151 Expected Total Return 7.0% RED 46 ETR Rank 18th Risk-adjusted Index 2.07 RED RAI Rank 38th

2.6% 3.3% 2.8% 2.6% 2.7% 2.8% 4.6% 2.7% 3.5% 4.6% 3.4% 3.5% 3.3% 3.4%

-60 bps

Change

2.0% 2.7% 3.3% 2.0% 3.3% 3.3% 4.2% 3.3% 2.8% 4.2% 3.1% 2.8% 2.9% 3.1%

-60 bps -60 bps 50 bps -60 bps 60 bps 50 bps -40 bps 60 bps -70 bps -40 bps -30 bps -70 bps -40 bps -30 bps -40 bps

Total Return Distributions Source: RED CAPITAL Research

10.4%

Total Return Distributions

Source: RED CAPITAL Research 8.0% 7.1% 6.3% 6.3%

7.1%

8.0%

8.1%

10.4%

8.1%

70% 50% 30% P roba bility of Ac hie ving S ta te d Re turn or G re a te r 70% 50% 30% P roba bility of Ac hie ving S ta te d Re turn or G re a te r

9.5%

10% 10%

continued on page 10

RED CAPITAL GROUP RED CAPITAL GROUP For more information about RED’s research capabilities contact: For more information about RED’s research capabilities contact:

Daniel J. Hogan, Director of Research Daniel J. Hogan, Director of Research djhogan@redcapitalgroup.com djhogan@redcapitalgroup.com 614-857-1416 614-857-1416

James P. Hensley, Senior Managing Director James P.Mortgage Hensley, Originations Senior Managing Director Head of Head of Mortgage Originations jphensley@redcapitalgroup.com jphensley@redcapitalgroup.com 800-837-5100 800-837-5100

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mg_cp_8.5x11_Landlord Times Metro.indd 1

8/28/13 9:09 AM

The Landlord Times - Metro • October 2013

Market Overview...continued from page 10

MARKET OVERVIEW 2Q13 | PORTLAND, OREGON

Metro Occupancy Rate Trends

Metro Effective Rent Trends

98% RED 46 AVERAGE

97%

PORTLAND 97.1%

96%

96.6%

97.4%

97.0%

96.9%

YoY Rent Trend

Average Occupancy Rate

Source: Reis History, RCR Forecasts

95% 94% 93% 92% 91% 2Q 07

2Q 08

2Q 09

2Q 10

2Q 11

2Q 12

2Q 13

2Q 14

2Q 15

2Q 16

Sources: Reis, Inc., Axiometrics, RCR Forecast

12% 10% 8% 6% 4% 2% 0% -2% -4% -6% -8% -10%

6.6%

2Q 08

2Q 09

2Q 10

Metro Cap Rate Trends

POR TLA ND

PACI F I C R EGI ON Y-o-Y % Change

Average Cap Rate

7.0%

6.0% 5.5%

6. 3%

5. 5%

5.0%

5. 7%

6. 0% 5. 3%

6. 5%

6. 0%

5. 3%

4.5% 2Q11

3Q11

4Q11

1Q12

2Q12

3Q12

4Q12

1Q13

2Q13

3Q13

U. S. A .

2011

2012

2013f

2Q 14

2Q 15

2Q 16

2Q 17

P ORTL A ND

PACIFIC REGION

2014f

2015f

2016f

2017f

Source: BLS, Institute for Economic Competitiveness at UCF & RCR

3.5% 3.0% Y-o-Y % Change

Annual Chg (000)

2Q 13

Metro Payroll Employment Trends

Source: BLS History, RCR Forecasts

PO R T

2Q 12

Source: FHFA Home Price Indices and RCR Forecasts

12% 10% 8% 6% 4% 2% 0% -2% -4% -6% -8%

Metro Payroll History and Forecast 40 30 20 10 0 -10 -20 -30 -40 -50 -60 -70

2Q 11

Metro Home Price Trends

Source: eFannie.com, RCR Calculations

6.5%

3. 6%

3. 3%

RED 46 AVERAGE PORTLAND AXIOMETRICS SAME-STORE PORTLAND (REIS/RCR)

2Q 07

2Q 17

2. 9%

3. 6%

2.5%

U.S.A.

PORTLANO

2.0% 1.5% 1.0% 0.5%

2008

2009

2010

2011

2012

2013f

2014f

2015f

2016f

2017f

(0. 7)

(60. 4)

(5. 0)

19. 0

18. 8

16. 3

20. 0

21. 2

28. 8

32. 4

0.0% 2011

NOTABLE TRANSACTIONS NOTABLE TRANSACTIONS Property Name (Submarket)

Property Class/ Type (Constr.)

Date of Transaction

Total Price / <Appr Value> (in millions)

Price / <Appr Val> per unit

Estimated Cap Rate

Cyan PDX (Northwest / CBD) Armada Pointe Apts. (Vancouver) Marketplace Apts. (Vancouver)

A+/HR (2009) B / GLR (1995) B / GLR (1998)

20-May-2013 28-Jun-2013 12-Jul-2013

$95.8 $17.2 $12.4

$272,017 $86,000 $71,387

3.8% 5.5% 5.8%

Berry Ridge Apts. (East Gresham) Springs at Tanasbourne (Beaverton)

B / GLR (1998) A /SrHg (2009)

June-2013 May-2013

<$17.7> <$60.9>

<$71,169> <$264,565>

6.6% FNM Refi 6.9% FNM Refi

2012

2013f

2014f

2015f

2016f

2017f

The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED CAPITAL GROUP. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors.

RED CAPITAL Research | September 2013

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Ask The Energy Expert Mark Whitney, PGE Energy Expert

New Technologies Make Lighting Upgrades Cost Effective Q. I want to upgrade my common area and exterior lighting and am wrestling with the options available. Across all my properties, I have fluorescent fixtures, track lighting, recessed cans and exterior high-pressure sodium. How do I determine what offers the best return for my dollar?

A. It’s challenging to keep up with lighting technologies because they are evolving rapidly. But you can take the guesswork out of where to begin by turning to the PGE Energy Experts. PGE offers a free energy-efficiency consultation of your property—either onsite or over the phone—that will help you identify energy-saving opportunities and prioritize your efforts based on your budget and goals. We’ll also connect you with trusted contractors and Energy Trust of Oregon cash incentives that are available on most upgrades. Request a free energy consultation at www.PortlandGeneral. com/EnergyConsult.

Here’s an overview of options that might work for you and other property managers: Fluorescent lighting: Upgrade your T12s and older T8s

were not nearly as efficient as today’s high-performance versions. New technologies are so much more efficient that a T8-to-HPT8 conversion, with new electronic ballasts, may qualify for cash incentives from Energy Trust. Another option for both T12s and older T8s is to convert your fixtures and lamps to LED (light emitting diode) technology, especially in fixtures that have long hours of operation. New LED options are coming on the market every few months. LEDs can offer excellent color quality and uniform lighting levels. With new Energy Trust cash incentives, a conversion to LEDs can pay for itself through energy savings in as little as five years. Because they typically last a long time, LEDs also reduce your maintenance costs. The PGE Energy Experts can help you explore the cost effectiveness for your property and help ensure you get the best LEDs for your application.

Do you still have T12 fluorescent lighting? If you aren’t sure, measure the diameter of your fluorescent tubes. A fluorescent lamp that measures 1.5 inches in diameter is a T12, which is so inefficient that replacement lamps are no longer readily available. (Note that fluorescent lamps are measured in 1/8-inch increments. The number after the T helps you determine the diameter. A T8 is one inch in diameter. A T5 is 5/8 inches.) Upgrading T12 lighting to high-performance T8 lamps with electronic ballasts is a highly cost-effective investment. In most cases, you can use your existing fixtures. If you have T8 fluorescent lamps that are 10 years or older, you also Recessed cans: Look to CFLs or LEDs shouldRconsider to anew elia bleupgrading a nd pro c tiv e – HPT8 lamps with electronic ballasts. qua lity la nds c a p e In most situations, you can save Early T8 lamps and electronic ballasts big by upgrading the lamps in your

R elia ble a nd pro a c tiv e – qua lity la nds c a pe Landscape m a inte na nc eMaintenance c a re for ym our pro erty. Specializing in-Multi FamilyR elia ble a nd pro a acinte tiv enap–nc e c a re for

recessed can fixtures. But the cost effectiveness varies with what you currently have in those cans. If you’re using any type of incandescent bulb, you definitely should upgrade. The best options include installing either ENERGY STAR® qualified reflector compact fluorescent light bulbs or LEDs. If you go the LED route, you have two options: You can install reflector-style LED lamps or you can buy kits that retrofit your cans so they look like new, attractive flush-mounted fixtures. With cash incentives, LED options often pay for themselves through energy savings in about two years. Although reflector CFLs may have a quicker simple payback, taking advantage of LED options is usually a better long-term investment. If you have already installed regular (non-reflector) CFLs in your can lights, it’s important to know that only about half of the light is making it out of the can. You could just replace this type of CFL with a lower-wattage reflector CFL, but a better option might be a reflector-style LED or LED retrofit kit

Continued on page 16

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Multifamily NW EDUCATIONAL OPPORTUNITIES October 8, 2013 1:00 PM - 3:00 PM ELEVATE: The Anatomy of Multifamily Roofs October 9, 2013 6:30 PM - 8:00 PM October Landlord Study Hall - Property Maintenance: A Schedule to Safeguard and Winterize your Property October 15, 2013 9:00 AM - 1:00 PM ELEVATE: Forms and Notices - Portland 12:00 PM - 2:00 PM ELEVATE: Winterizing Your Property

October 16, 2013 7:30 AM - 9:00 AM Fall 2013 Apartment Report Breakfast October 21, 2013 9:00 AM - 2:00 PM ELEVATE: New Hire Portland October 24, 2013 8:00 AM - 12:00 PM ELEVATE: Unit Inspection / Turnover Portland October 28, 2013 9:00 AM - 1:00 PM ELEVATE: Oregon Landlord/Tenant Law Part 1 - Salem, OR October 30, 2013 6:00 PM - 8:00 PM Puzzled by Section 8 Procedures? Homeforward Session 1

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Clark County Rental Association President • Lyn Ayers Vice President • Blain Cowley Secretary • Patty Silver Contact • Lyn Ayers • Phone (360) 693-0025 • info@ccrawa.org

Treasurer • Janine Ayers

Membership Committee • Roger Silver

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President's Message

t looks like our summer is over members we can call when we have for the year. As I sit down to questions. We have mentors who write this message the tempera- have been around and have experiture is 53 degrees and the weather enced many different situations othprognosticators are telling us more ers of us may encounter. The officers days of rain are coming. It appears of CCRA can and do a lot of work to that weather-folks are not the only keep us up to date with what is hapones with negative information. Our pening. Our newsletter editor scours economists and the media are all the internet searching for articles to worrying about a government shut- keep us current. WAA keeps us down leading to possible recession. informed at the state level and has But does this affect those of us with members who advocate for us in residential property? Should we be Olympia. We should be thankful we negative or should we be thankful heard about the organization and for what we have? After all, we had the good sense to join. If you have kids or grandkids, you could have half our units vacant. We could have the worst tenants on the will undoubtedly agree with me that planet. But we don’t, so why not con- ways of communication will rapidly migrate to the internet. Obviously sider ourselves fortunate? Members of CCRA have a great PGE_SpectrumAd_BW_5.pdf 1 8/30/2013 9:46:48 AM that will create a challenge for most support system. There are fellow of us who grew up before comput-

ers. Newsletters will be primarily available on-line (especially if the postal service goes away.) The majority of questions and related responses will be handled over the internet. If you are like me, I hear or read about these changes and I feel threatened. I don’t know how to do all these things and I’m not sure I want to. That sums up the challenge for CCRA going forward: how do we accommodate technology demands for our younger landlords without leaving behind or inconveniencing our less-computer literate landlords? What do we need to do to satisfy the needs of the next generation who prefer searchable newsletters on-line without losing our previous generation members?

I believe we make changes one step at a time, keeping in mind that a significant percentage of our members do not presently have internet capability. When we move in the direction technology is taking us, we can’t ignore our more senior landlords. Several years ago we migrated to a full-color newsletter. We continue to receive positive comments about it both from inside and outside our industry. A couple of years later we substantially upgraded the CCRAwa. org website, but there remains a hole in its utility for our younger members. We do not have a working Members’ Only section. Addressing this need has been a topic of discussion for more than a year. Recently the board decided to move ahead and address this shortcoming. We will soon announce the effective date, what it will look like, how to log in and where you can find it. This will be followed fairly soon by actually building the Members’ Only section. Keep tuned. So as our ways of communication evolve, hang onto your optimism. This is just another example of the horse and buggy being replaced by something new. I hope you agree that there are several reasons to be optimistic about the future of landlording in Clark County. This is an exciting time. Enjoy the ride.

Advertise in the Landlord Times - Metro Circulated to over 20,000 Apartment owners, On-site, and Maintenance personnel monthly. Call 503-221-1260 for more information.

The Landlord Times - Metro • October 2013

Institute of Real Estate Management President • Christina DuCote’, CPM, RPA President Elect • Cammie Allie, CPM, ARM Vice President-Member Services • Kimberly Fuhrer, CPM Vice President-Communications • Jocelyn Burmester, CPMC Vice President Education • Kathi Pearce, CPM Vice President-Finance • Stephanie MacPherson, CPMC

Join us October 24, 2013 at The Slide Inn (Featured in Portlandia and Grimm) for IREM®’s Annual Friends Appreciation Event from 4:00 to 7:00 p.m. We are featuring a special presentation on Social Media. It’s a MUST for real estate companies to be active on social media. Learn the proper way in which to enrich your business using the social media outlet that’s right for you. Taught by social media wizard: Josh Kroeker, Fortress Property Management. You won’t want to miss this opportunity to learn the ins and outs of social media.

Don’t miss this year’s Inauguration and IREM®’s 80th Birthday gala on November 15, 2013 from 6 to 11 p.m. at the Jupiter Hotel. It’s sure to be a great time. You can register for both at www. iremoregon.org. We’ll see you there!

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Track lighting almost always uses halogen reflector lamps, which are extremely inefficient. With Energy Trust incentives, converting to LED technology is highly cost effective with payback often in less than two years. LED reflector-style lamps come in many shapes and sizes and even lowvoltage versions. Savings are usually 75 percent or more, with lamp life 10 times longer than halogen. Light quality is as good or better, so you can install them with confidence.

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Lead Violations ...continued from page 3 ing a Craigslist advertisement indicating their unwillingness to rent to families with children because of the lead status of a rental unit. On September 3, 2013, the FHCGB entered into a settlement agreement with Charles River Realty Group and Karen Coffin, property manager for Charles River, in order to resolve a complaint filed by the FHCGB with the City of Boston’s Fair Housing Commission (BFHC). The complaint, filed in April 2013, alleged that Charles River, through its property manager, posted advertisements for available rental units on Craigslist.org which stated that the available units were “not deleaded.” Investigations by the Suffolk University Law School’s Housing Discrimination Clinic and the FHCGB revealed that Ms. Coffin made discriminatory statements to potential tenants with children under six, in violation of federal, state, and municipal fair housing laws. In the settlement agreement, Charles River Realty agreed to pay $15,000 to the FHCGB, and further agreed to promise to comply with all fair housing laws; to have all of its employees attend fair housing training; and to have all of the rental units that it owns tested for lead paint. Furthermore, Charles River Realty agreed to submit all of its advertisements for available units to the FHCGB to review them for compliance with fair housing laws prior to

making the advertisement available to the public. The FHCGB works to eliminate housing discrimination and to promote open communities throughout the region. It serves five counties in eastern Massachusetts (Middlesex, Essex, Suffolk, Norfolk, and Plymouth). Under federal and/or state fair housing laws, it is illegal to discriminate against an individual or a family seeking housing because of a person’s race, color, religion, sex, familial status (e.g., children or marital status), national origin, handicap/disability, marital status, sexual orientation, military/veteran status, genetic information, or receipt of public assistance. As the media release above points out, it is illegal under the federal Fair Housing Act (FHA)1 to deny housing to otherwise qualified families with children (or otherwise treat them differently in any way) simply because there are children in the household, unless the housing provider is exempt as a “designated senior community.” (For information on familial status protections and the housing for older persons exception visit www.FHCO.org/ families.htm). The Boston settlement is just one more example of case law that has reinforced the fact that housing providers may not discourage potential residents with children simply because the property has or may have “hazards” such as steep stair-

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ways and balconies, busy streets, the presence of dangerous equipment or lead-based paint. It is up to the household to determine if a given property is appropriate for them; it is not up to a housing provider to determine this for them. For more on familial status protections visit www.FHCO.org/families.htm or www.FHCO.org for other fair housing information.

letter at www.FHCO.org. Qs about this article? ‘Interested in articles for your company or trade association? Contact Jo Becker at jbecker@FHCO. org or 800/424-3247 Ext. 150 Want to schedule an in-office fair housing training program or speaker for corporate or association functions? Visit www.FHCO.org/pdfs/classlist.pdf

This article brought to you by the Fair Housing Council; a nonprofit serving the state of Oregon and SW Washington. All rights reserved © 2013. Write jbecker@FHCO.org to reprint articles or inquire about ongoing content for your own publication. To learn more… Learn more about fair housing and / or sign up for our free, periodic news-

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Multifamily Footprint...continued from page 7 multiplied by average household size of 2.63 persons per household provides an estimated number of total multifamily dwelling units in the United States. That number is: 46.8 million units. This is the number of housing units represented by buildings with five or more units. This number is not exact but certainly falls into the bell curve of having a high probability. This is a ”thumb sketch” number. We are not attempting to account for new construction, tear downs, vacancy etc. In my opinion, these numbers provide a breathtaking scope of just how important our industry is recognizing that we house a very large percentage of the population, account for measurable GDP and impact resources of all kinds; fire, police, ground water, trans-

portation to name a few. Just something to think about. As an owner or property manager your contribution to mankind includes a footprint that is part of a very large, very important part of the American experience.

Multifamily Insight is dedicated to assisting current and future multifamily property owners, operators and investors in executing specific tasks that allow multifamily assets to operate at their highest level of efficiency. We discuss real world issues in multifamily property management and acquisitions. This blog is intended to be informational only and does not provide legal, financial or accounting advice. Seek professional counsel. http:// www.MultifamilyInsight.com

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and easy to follow disclosure explaining expectations and providing guidelines. Giving tenants the responsibility of their own utility expenses also incentivizes conservation, compared to when the landlord automatically pays for the usage. Log on to multifamilynw.org to secure a copy today.

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