Rental Housing Journal Utah October 2015 by Professional Publishing, Inc

Rental Housing Journal Utah

October 2015 - Vol. 7 Issue 10

2. President’s Message Ask the Attorney 3. Director’s Message

UPCOMING EVENTS

EVENTS

www.GoodLandlordTraining.com

Annual Meeting

General Membership Meetings No meetings for Nov and Dec

Legal Seminar .................................. Nov. 10th Certified Pool Operator Class Nov. 19th-20th Tribute Awards ...................................... Feb. 12th www.uaaTributeAwards.com

www.uaageneralmembershipmeetings.com

www.rentalhousingjournal.com • Professional Publishing, Inc Official Publication of The Utah Apartment Association Utah’s Leading Advocate for the Rental Housing Industry – 888-244-0401 – WWW.UAAHQ.ORG

American Family Agent Kandace Brewster Committed to UAA and You

n her desk, Kandace Brewster has collection of awards and accolades, including one from the Apartment Association for being a “member favorite presenter/speaker”. As she talks about it you can feel her sincerity and emotion. “Of all the awards I have ever received, this is the one that means most to me,” she says. An agent for American Family Insurance, Kandace has built her business on that sincerity and the connection she makes with people. A former UAA board member who has been volunteering with UAA for over 12 years, she teaches classes or conducts seminars for members on insurance and risk management over a dozen times a year.

Mission and Goals of the UAA UTAH APARTMENT ASSO CIATION

he Utah Apartment Association Mission is a trade association supporting the rental housing industry, run by industry members. Our 33 board members have set up mission and vision statements and 4 goals. We wanted to share those with readers of the Rental Housing Journal. The Utah Apartment Association is Utah’s leading advocate and resource

for the owners, real estate professionals, developers, management teams, suppliers and service providers dedicated to quality rental housing. Vision Elevating the standards of the rental housing profession through ethics, legislative advocacy, education and networking

Goal 1: Advocate – Be the Voice and Advocate of the rental housing community in government Affairs. Be recognized as the voice of fairness and reason. Cultivate relationships with decision makers and players. Fund resources to successfully accomplish our miscontinued on page 7

Salt Lake City Contemplating Mandatory Multi Family Recycling

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Salt Lake City – The city council in Utah’s Capitol City may be the first in Utah to create a mandatory multi-family recycling program, if they accept a recommendation from city staff. Salt Lake City’s oﬃce of Sustainability has sent a proposal to the council to implement a mandatory

program that would require large apartment communities to have recycling containers. The issue According to Debbie Lyons, Director of the Salt Lake City Sustainability Program, the goal of the program would be to decrease waste and divert

recyclable waste from the landfill by 70% in 2025. She says that to reach that goal, businesses and multi-family recycling rates need to catch up to current residential recycling rates. Salt Lake City is the refuse and recycling collection service provider for continued on page 4

Advertise in Rental Housing Journal Utah Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly. WWW.RENTALHOUSINGJOURNAL.COM

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Utah Apartment Association

President’s Message The Tribute Awards Cheri Goss, Board Chair, Utah Apartment Association

very year about this time, the UAA awards committee undertakes an enormous project. The goal of the Tribute Awards committee is to honor the excellence innovation and talent in our industry. The first step is soliciting our industry twenty five awards. This involves soliciting nominations from major property management companies,

vendors, and others. The committee strives diligently to identify a diverse and eclectic group of both individuals and properties. While there will only be one winner per category, a side goal of the processes is to honor many deserving individuals and properties in addition to the winner. Second, the awards committee establishes and implements a judging processes. This processes involves interviews based on preset questions and criteria, submissions from nominees, and property shops. For instance, the leasing agent of the year award has three components. After talented individuals are identified as nominees, they are notified and con-

gratulated. They are given a nomination form to complete that gives them an opportunity to promote their virtues and display their knowledge and skill. This nominee form will be one third of their total score. Then, they are interviewed by individuals familiar with property managements that work in single family property management. These interviews also constitute a third of their score. Finally, once the finalists are identified secret shoppers are sent to their property pretending to be renters and they are scored by these professional leasing testers. This is the final third of their score.

448 E Winchester St Ste. 460 Salt Lake City, UT 84107 Ph: (801) 487-5619 Fax: (801) 484-8649 www.uaahq.org

The tribute awards processes will involve hundreds, if not thousands of hours from UAA staff, committee members, and volunteers. It will involve hundreds of paid shoppers who visit properties to assess quality and measure innovations. In the end twenty five winners and hundreds of others will be recognized for their talents, skills, and achievements. I want to thank the awards committee the volunteers and the staff for their monumental efforts to honor the best in our industry. The awards dinner will be Friday February 12th at Little America for more information, go to www.uaahq.org/tribute-awards/

Ask the Attorney By Kirk Cullimore, Esq.

our resident just vacated. You check the unit and no surprise, the unit is a mess. Fortunately, resident paid a security deposit. Now what? Whether your resident gave proper written notice at the end of the lease or skipped before the lease expired, your obligations as a landlord under Utah law on how you handle the security deposit are the same. What then are those obligations? Under Utah law, upon termination of a resident’s tenancy, you may apply money held as a deposit “toward the payment of rent, damages to the premises beyond reasonable wear and tear, other costs and fees provided for in the contract, or cleaning of the unit.” (Utah Code § 57-17-3(1)) This means you can apply the resident’s security deposit towards any monies owed pursuant to the lease, including cleaning and damages. If your resident signed a Cleaning and Damages Addendum (or something similar), any of the applicable charges can be deducted from the security deposit. If your resident did not sign an applicable Addendum, then charges for cleaning, carpet cleaning, painting,

plus anything damaged that must be either repaired/replaced (all subject to normal wear and tear), can be deducted from the security deposit. In cases where there is no applicable Addendum, documentation, including receipts, invoices, and pictures, is crucial. It is not uncommon for former residents to dispute charges for cleaning/damage; having documentation, especially pictures, only bolsters the likelihood of those charges being awarded if contested in court. In addition to deducting amounts for cleaning/damages from the security deposit, you can also include any future rent owed, subject to your obligation to mitigate damages. Look for a future article that will discuss in more

detail mitigation and future rent. After applying resident’s security deposit towards monies owed, then

what? Under Utah law, you then have an obligation to send to the resident a written accounting reflecting how you applied the security deposit. When must you provide this written accounting and where do you send it? Utah law specifically requires that “no later than 30 days after the day on which a renter vacates and returns possession of a rental property,” you “shall deliver to the renter at the renter’s last known address: (a) the balance of any deposit; (b) the balance of any prepaid rent; and (c) if the owner or owner’s agent made any deductions from the deposit or prepaid rent, a written notice that itemizes and explains the reason for each deduction.” (Utah Code § 57-17-3(2)) What if you fail to deliver the written accounting within 30 days of your continued on page 5

Advertise in Rental Housing Journal Utah Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.

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Rental Housing Journal Utah · October 2015

Utah Apartment Association 448 E Winchester St Ste. 460 Salt Lake City, UT 84107 Ph: (801) 487-5619 Fax: (801) 484-8649 www.uaahq.org

Director’s Message Fall 2015 UAA Membership Report

L. Paul Smith, CAE Executive Director, Utah Apartment Association

bers (only Los Angeles Apartment Association has more members. This means that we have thousands of diverse members who are somehow able to come together and work towards a common good. UAA is unique in the country at representing large percentages of both the independent rental owners and the large apartment communities and management companies. Almost all of the other apartment associations in the country cater to either small owners or large companies/communities and not both. Despite the fact that some members only own a house or two and some members have thousands of apartment units, the UAA is an example of finding a way to bring everyone to the table – and that is a great credit to your visionary board of director and association leadership. When hiring a director 14 years ago, the board chose someone who understood both worlds (my fami-

very October, the UAA is required to report a roster of membership to the National Apartment Association. In the last two years, as our market has gone through transformational change, the UAA has grown tremendously.

Our report for October 2015 was: • 3,716 members • 104,770 units • 255 Associate members (vendors) The UAA is approximately the 25th largest apartment association in the NAA network in numbers of units but the 2nd largest in numbers of mem-

ly had owned small rentals and after college I had work in the large companies, managing big complexes). Even 14 years ago your leadership understood that to be successful in a small market like Utah, the association would need the numbers of the large communities (about 65% of our total number of units) as well as the resources of the small owners (35% of the units but 65% of the dues revenue) in order to support the organization we would need to be successful in our mission. When I was hired, despite neither myself nor the board having any association management background, the wise counsel I received from those in charge was to focus on three things:

we would need to accomplish the first two. As we have all worked together to accomplish those goals not only have we experienced 500% increases from the 450 members, 15,000 units and small revenues of back then, we have made a difference for the industry as a whole and thousands of owners and property managers individually. I’m proud to be associated with this great group of people and look forward for working with you for many years to come as we strive to accomplish our mission and enhance the lives of as many people as we can.

• Legislative advocacy • Enhancing the prestige and image of the association, and • Running the enterprise in a way to create and maintain the resources

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Salt Lake City Contemplating ...continued from page 1 all single family, duplex and triplexes within city limits. Participation in curbside recycling and the curbside green waste program is required. Through this program alone, the city has already achieved a 38% diversion rate for residential. But commercial businesses and multi-family housing recycling is voluntary, and the city has determined only occurs at a 10% rate. So Lyons has proposed an ordinance that would require multi-family and non-residential property owners where more than 4 cubic yard of solid waste a week are created to: • Subscribe to recycling collection from an authorized hauler • Designate areas containers

for

recycling

• Implement a recycling program • Educate occupants about recycling

Lyons says that there will be exemptions for property owners who don’t have enough space for recycling containers or where current parking would be eliminated or enclosures would have to be modified at costly

expense. “My hope is if there is an existing enclosure for an 8 yard dumpster, that it can be replaced with two 4 yarders, one of which is a recycling one, one of which is for trash, without costly modifications or eliminating parking spaces,” she says. UAA Concerns The UAA has been involved in this process and the city has been incredibly receptive to industry concerns, according to Kirk A. Cullimore Jr., UAA Government Affairs Chair. “The three concerns we took to the city were cost of modifying trash enclosures (all dumpsters in Salt Lake must be enclosed) or eliminating parking and they said they will not require owners to do costly refits or eliminate parking. We expressed concontinued on page 6

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Rental Housing Journal Utah · October 2015

Rental Housing Journal Utah

Ask the Attorney ...continued from page 2 renter vacating and returning possession of the unit back to you? If that were to happen, all is not lost, as Utah law then shifts obligations upon the renter. The renter may then serve you written notice. The renter’s written notice must substantially comply with the form provided in the applicable statute and must be served in the same manner as you are required to serve eviction notices, i.e. either (1) personally to the owner/owner’s agent at the address provided in the lease agreement; (2) leaving a copy with a person of reasonable age and discretion if owner/owner’s agent is absent at the address provided in the lease agreement; (3) if no one can be found at the address provided in the lease agreement, aﬃ xing a copy in a conspicuous place at the address provided in the lease agreement; or (4) sending a copy through registered/certified mail to the owner/owner’s agent at the address provided in the lease agree-

ment. (See Utah Code § 57-17-3(4)) If the tenant’s written notice complies with the law and is properly served, you must provide the written accounting within five (5) business days of service. Otherwise, if you fail to do so, the former tenant can initiate litigation where your failure to comply with former resident’s written notice would require you to refund the entire security deposit, a penalty of $100.00, as well as the possibility of being responsible for resident’s court costs and attorney fees. (See Utah Code § 57-17-3(3)(b)) Best practice is obviously to send the written accounting sooner than later. However, should that not happen within 30 days, get it done as soon as you can, as there is no real concern unless or until resident properly serves you the required written notice by law.

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Salt Lake City Contemplating ...continued from page 4 ism, to approve certain companies and exclude others, like with taxicabs. After noticing a requirement that would have eliminated several companies from contention, Lyons suggested changes to the city to make it so more companies can qualify as providers. That’s good for business and consumers,” he says.

cerns about owners being charged for cross contamination (when a resident puts the wrong stuff in the wrong place) and the city said they weren’t doing that. Last, we expressed concerns that affordable housing units can’t pass the trash fees on to residents and the city is looking at an exemption for government subsidized housing so those owners wouldn’t have to implement a program they can’t pass along the cost to residents,” he says. “So I feel they have been incredibly responsive and accommodating.” Most apartment owners already pass the expense of garbage onto the resident through the contract, and if the program does increase cost, that would be passed along to apartment

residents who by a large majority, according to Lyons, want recycling at their apartments. Robert Watson, President of WSI Utah, a trash valet and recycling service says that done right, this program could be a positive enhancement for Salt Lake City. “We already provide valet recycling services at many higher end Salt Lake City apartments and the residents love recycling. Making it more accessible would be a great thing,” he says. Watson has also been impressed with Lyons willingness to accommodate the industry. “When Salt Lake City first started talking about an approved provider list we were concerned about it being crony capital-

Possible Industry Endorsement Lyons hopes a final draft will be ready for the council in the next 90 days and that the apartment industry will fully endorse it. “We’d love to see the UAA get on board. We think this

is a positive for everyone,” she says. “It’s highly possible the UAA will endorse the ordinance if we feel like it is fair to owners and addresses the major issues,” says Cullimore. “Everyone wants to be for recycling.” Cullimore says its essential UAA members contact us and express any concerns as we work through the process so we can address them. “As of right now we will probably support this, unless the city doesn’t exempt government subsidized housing or if there are other issuers brought to our attention,” he says.

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Mission and Goals of ...continued from page 1

Kandace Brewster ...continued from page 1 • American Family has over 40 years of service and dedication • They treat customers like partners • AMFAM is financially stable at $6.9 billion in equity • Protecting business is their business and they can offer multiple products at competitive prices

sion. Highlight accomplishments for industry members and the public and involve all industry members in our efforts. Goal 2 Educate – Be a Knowledge Center. Provide Training that empowers and strengthens as well as communicate Best Practices. Provide relevant and useful resources and training on ethics, cutting edge information, and protecting oneself from risk.

Goal 4 Grow – Increase membership through outreach and retention. Strategy 1: Outreach. Invite all industry members to participate. Target potential members. Involve all members in outreach. Strategy 2: Retain. Provide world class customer service. Engage members through regular contact. Provide tools to aid in member’s success.

Goal 3 Connect – Facilitate networking. Partner with organizations with similar goals. Create engagement and discussion on important topics. Create opportunities for interaction through social media, interactive website, events and educational opportunities.

• Agents like Kandace are part of the community and strive to serve • Claims handling is fast and fair • Policies are designed and customized specifically for the customer • AMFAM is proactive, helping you identify and reduce risks “Our students just love Kandace,” says Taylor Smith UAA Education Director. “She is so genuine and kind and they can tell she really cares about them,” he says. American Family and Kandace are a UAA Premier Sponsor, which means they contribute over $5,000 a year to the association and participate in every event. Whether it’s the trade show, the golf tournament or the Economic forecasting Conference, you will find a smiling Kandace there eager to serve you. American Family insurance is one of the top ten insurers in Utah with an immense value to offer customers. Some of American Family’s features and benefits include:

• Knowledgeable and experienced staff like Kandace are there for you 24/7 Brad Randall, with Welch Randall Property Management says he couldn’t be happier with Kandace and American Family. “As a company we have loved working with Kandace. She and her responsive team have provided great insight and affordable options for many of the rental units and communities we manage.” “I also like that they take the time to educate clients and management companies on upcoming trends and opportunities,” he said. To get a quote or contact Kandace call 801-966-4571 or go online to http://insurance-agency.amfam.com/ UT/kandace-brewster/

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