Rental Housing Journal Utah January 2016

Page 1

Rental Housing Journal Utah

2. President’s Message – Making 2016 A Great Success

January 2016 - Vol. 8 Issue 1

4. Ask the Attorney – Serving An Eviction Notice

3. Director’s Message – Suggested Goals for Rental Owners and Operators

UPCOMING EVENTS General Membership Meetings Logan ...................................... Feb 23rd 7PM Orem ........................................ Feb 24th 7PM Salt Lake ................................ Feb 25th 7PM www.uaaGeneralMembershipMeetings.com

EVENTS Good Landlord Class South Ogden .................................. Feb 10th 6PM Salt Lake .................................... Feb 18th 8:30AM Logan .........................................Feb 23rd 8:30AM www.GoodLandLordTraining.com Tribute Awards Salt Lake .................................................. Feb 12th www.uaaTributeAwards.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

Change Your Behaviors to Become a More Inspiring Leader In 2016 Behavioral Strategist Offers 4 Tips For Broadening Your Mind And Your Leadership Skills

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Re-instated Salt Lake City Inspection Program What you should know By L. Paul Smith, UAA Executive Director

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ost owners and managers of rental property in Salt Lake City are likely aware that for the past year and a half there has been an informal agreement with the city attorneys that landlords who refused inspections would not be penalized while the city and the industry worked towards a mutually acceptable inspection program. Starting January 1, owners and managers need to allow inspections under the terms

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eliminated the authority Salt Lake City had to inspect rentals every 3 years, as they had done. For the first two years, the administration continued on page 5

Teaching Renters Their Rights the contract. Tenants have specific “remedies” when their landlord is not in compliance with the contract or state law. There are three types of notices renters are to use if landlords aren’t in compliance. Let’s go through those three notices and the remedies tenants have if landlords don’t take action in the appropriate time frame.

continued on page 6

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of a negotiated agreement worked out between Salt Lake City and the UAA. The UAA’s position was that the law change four years ago to “cause and compliant” based inspections

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very rental owner or manager knows someone who is a renter and understanding how to advise them when they have a problems with their landlord will help you be a better one yourself.

Three kinds of tenant notices

In Utah, we have a state Fit The three types of tenant notices Premise Act which is a fair law that under the fit premises act are: outlines duties, responsibilities 1. Three day notice of deficient and remedies for landlords and condition tenants. It gives both landlords and tenants tools to use when the othcontinued on page 3 er is out of compliance with law or

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Utah Apartment Association

President’s Message

Making 2016 A Great Success

Peter Harradine Board Chair Utah Apartment Association

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e are coming off a great year and I’m excited to work with each of you in making 2016 another brilliant year for the UAA and for our industry. Let us join together in spreading the word about how the UAA is Utah’s leading advocate and resource for the owners, real estate professionals, developers, management teams, supplies and service providers dedicated to quality rental housing. One of my goals this year is to continue to grow membership, and in particular to grow membership in underrepresented areas like

Utah county. I believe that once people learn about what the UAA has to offer them and the benefits of the membership, they will be glad they joined. Our members are the heart and soul of the association and of our industry, your issues are our issues and together we can make a difference and create an environment of success for our business to flourish. A major part of what we do is legislative advocacy and one of the biggest benefits of being part of the UAA is that you get to join with like-minded people and have a voice loud enough to make a difference. Because of this Utah is a great place to do business and to

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be a landlord. To help maintain this environment the UAA takes a hands on, leadership role in protecting our industry from overburdensome, unnecessary, and costly legislation and has helped to save landlords a ton of money and has help to keep Utah a great place to do business. I would encourage each of you to join with us and become involved in this process. Each year the UAA holds a “Day at The Hill” event where our members get together for lunch at the State Capitol and an afternoon with our Representatives. We may hear from Senate and House leadership or from a number of other representatives. You will also want to

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

take the opportunity for a guided tour of the beautiful Capitol building with our group. This event is a great opportunity to network and talk about our issues with our legislators and to hear what they have to say. I would love to see you there this year so please mark your calendars for Tuesday, February 16th, at 11AM at the State Capitol. Email events@uaahq.org or call 1-888244-0401 for the room information and to sign up for a tour. I look forward to working with you to making this year a great success.

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Rental Housing Journal Colorado is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in Investing & Real Estate Investor Quarterly

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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

Suggested Goals for Rental Owners and Operators

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L. Paul Smith, CAE Executive Director Utah Apartment Association

ince so many people take time at the beginning of each year to set goals, the Utah Apartment Association would like to make a few suggestions for you to make a part of your list of goals in 2016. Share UAA Membership - IN 2015, two UAA members who referred a friend won $1,000, and nearly 300 people attended an exclusive movie premier for referring someone to the UAA. Every one who refers a friend gets:  Entered into the contests for prizes like $1,000 cash and more

for government regulation are to you. Join 1,300 industry professionals at our annual trade Show and Fair  The friend they refer also gets Housing Education Conference a $25 credit – This year’s conference will have Attend Day at the Hill and meet over 140 exhibitors and a record your state representatives – If you attendance nearing 1,500 fellow aren’t involved in the process of professionals. It will be April 27th making sure the laws in Utah proat the South Towne Expo in Santect your industry, make this your dy. Schedule the day off and choose year to get more involved. Come from over 25 different classes and to our Day at the Hill on February learn about the latest products, ser16th and check in with your legisvices and trends. lators and let them know how important property rights and limited  $25 credit UAA service

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use

Teaching Renters Their Rights ...continued from page 1 2. Ten day notice of deficient condition

Ten day notice

Not all of the things that break 3. 24 hour notice of deficient in an apartment are habitability issues. If a refrigerator goes out, if the condition roof leaks, if a garage door openers stops working – these things are Three day notice In Utah state law, there is a not considered “habitability” isstandard called “habitability”. It sues. However, they generally are is the duty of every residential responsibilities of the owner as rental property owner to main- outlined in the lease. In these situtain a “habitable dwelling”, which ation, the landlord has ten days to begin corrective action means assuring:  Running water and opera24 hour notice tional plumbing (including In cases where a condition is “an sewer) immediate threat to the health and  Operational electrical systems safety” of others, a landlord is required to commence action within  Heat and hot water available 24 hours. There are not very many  Property able to be secured of these cases but could include (locks on doors and windows) anything that if not corrected  If installed, maintain any A/C quickly could be fatal. that is in at the time of rental Note: Before a renter serves a in working order notice they must themselves be in If one of the following occurs, compliance with their contract, state law gives landlords 3 days to including being current on their commence action on correcting rent. If they are not current on the issue. If the renter is not able to rent, they are not allowed the beget the issue addressed by talking low renter’s remedies. to the landlord, under Utah law they are to serve a “3 day notice What a landlord must do to of deficient condition”. This notice comply with the notice must be served personally, posted The law says within the time to the management office door, or frame a landlord must commence in any other way provided for in action and be in “substantial comstatute or contract. Email, while a pliance”. This means if a furnace great tool for many, is not sufficient broke on a Friday and the landlord to be legally enforceable. In the no- sent someone Monday, who diagtice, the renter must choose a “rem- nosed the problem and ordered the edy”, or the action they will take if part (which was back ordered and the landlord does not start solving arrived Thursday), that even if they the problem within three days. didn’t complete the job until the Rental Housing Journal Utah · January 2016

next Friday, they commenced action and were in substantial compliance. Landlords can only do so much – they aren’t magicians. Landlords also are supposed to communicate the progress to the renter, and “mitigate damages” if possible. In this case that might be providing space heaters. It is not necessary for a landlord to pay hotel costs for the time the furnace is out.

Remedies for renters

At the time a renter serves notice, they are required under Utah law to select the remedy they will use if the landlord does not commence action within the required time frame. Under the fit premise act, renters have two remedies.

Repair and deduct

The first remedy is called the “repair and deduct” remedy. In this case, after giving the landlord notice and waiting the required number of days, a renter may fix the problem themselves and deduct the cost (up to two month’s rent) out of future rent. This can only be done if the landlord fails to commence action.

Rent abatement

The second remedy is called the “rent abatement” remedy. In this case, after giving notice and notice having action commenced within the time frame, the renter may chose cancellation of the lease and refund of deposit and any rent since service of the notice.

Summary of the procedure for renter’s remedy

The process is as follows: Step 1 – Notify owner in writing and have the notice served on the owner in accordance with 78B-6-805 (same as eviction notices are served) or as provided in rental agreement. Step 2 – In the notice specify which remedy renter will seek if situation not remedied. The options are 1) cancellation of the lease, 2) fix it themselves and deduct up to two months’ rent to pay for it. Step 3 – List the required number of days a landlord has to remedy the situation. Step 4 – If the owner has not commenced action to substantially correct the situation in the allotted time frame, a renter may use the remedy they indicated in the notice. If the owner did not correct and the tenant opts to cancel the lease, the owner must pay to the renter the entire security deposit plus any pro-rated refund of any rent for time after the first service of the notice of deficient condition. In conclusion, renters rights in Utah are significant and fair. Understanding how renters implement their remedies including the notices they serve, the timelines they use and the remedies that are available helps landlords help renters and stay in compliance themselves.

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Rental Housing Journal Utah

Ask the Attorney Serving An Eviction Notice

By Jeremy Shorts Utah Eviction Law

Dear Attorney,

Q: I have some tenants who stopped paying rent, and promised they will leave at the end of the month. Should I still serve an eviction notice?

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A: If they can’t pay rent to their current landlord, they may not have rent and a security deposit to pay to a new landlord. We have had multiple cases where the tenant doesn’t move as promised which puts the landlord in a bind. If they weren’t going to leave, the landlord should have started the eviction process long ago. Sometimes the landlord has already found another tenant, but having a deadbeat tenant in the unit causes additional problems. Every time in this happens, we strongly recommend the landlord simply serve all applicable eviction notices (three day pay or quit for the rent and if they’re on a month to month basis consider a

no cause lease termination notice). If they leave quickly after being served with eviction notices, then there’s no need to move forward with an eviction. But if they don’t cooperate, then you’ve done what you need to start the eviction process. My suggestion would be to talk with your tenant and let them know that legally you need to provide them with the notice to make sure in the event things don’t work

out how the tenant thinks they will. If you communicate with them about your concerns, they may be understanding. If they aren’t cooperative or understanding, then you’re ready to file an eviction.

Rental Housing Journal Utah · January 2016


Rental Housing Journal Utah

Re-instated Inspection Program ...continued from page 1 agreed with us. However, the city council decided they disagreed with the administration, and instructed council attorneys to leverage a loophole in state inspection law and re-implement inspections because the Council felt strongly in the public safety value of regular inspections on all rental properties. In 2015, the UAA backed proposed legislation to close that loophole and the City Council and UAA then worked out a compromise that has taken almost a year to become new ordinance.

How to respond to requests for inspection

Anyone who has asked if they should let Salt Lake City inspect in the last two years has been told to refuse if it was what the city called a “scheduled” inspection. Starting January 1, however, our counsel to you is to not refuse but allow the city to inspect as long as they follow the terms of the negotiated agreement. If an inspection is based on “cause or complaint” it is always wise to let them in.

How will the city give you notice?

The city has promised to give you at least 10 days’ notice to schedule inspections. They also will use a checklist called the “self-certification checklist” so you can know in advance what they will be looking for.

 The city must use objective  Cause or complaint will not be  Ten to twenty unit buildings – pre-created health and safety defined, in order to give Salt no more than 20% (not cosmetic) standards Lake City maximum flexibility  Twenty-one or larger unit to address issues and inspect buildings 15% when necessary Conclusion  Inspectors must provide ownWe advise you to once again work  The current self-certification ers ten days’ notice which with city inspectors but hold them standards required to be signed units are to be inspected so to the agreement. Let us know of by single family and duplex owners can make arrangeany violations or any behavior of owners every three years will ments with tenants inspectors you find troubling. also be required every three Below are the memo of underyears by owners of buildings  Rental inspections will only consider items expressly on standing on rental inspections with three or more units the current Salt Lake City and the city’s summary of their  Salt Lake City will inspect Self-Certification standards new ordinance. buildings with three or more checklist rental units (unless by cause or Memorandum of Undercomplaint) no more than once  UAA will accept without modification the current Self-Cerstanding on Rental Inspecevery 4 years tification standards as basis of tions between Salt Lake  New construction will not be inspections but Salt Lake City City and the Utah Apartrequired to have inspections in agrees to follow Utah State ment Association the first 4 years and change of Code 10-9a-511 which releasGoal: Establish a system that ownership/management will es non-conforming properties promotes health and safety in rentnot trigger inspections (howfrom some of those requireal units, while being minimally inever the building can be inments, and Utah State Code vasive to landlords and tenants spected again 4 years after the 10-9a-505.5 which sets pa To that end the Utah Apartment last inspection or upon cause rameters for the definition of Association, representing property or complaint) a single family owners, and Salt Lake City agree to  Percentage of units inspectThe proposed ordinance amendwork towards codifying and imed during the 4 year building ments include (summary provided plementing the following: inspection cycle will be estab- by Salt Lake City):  Single family and duplex rentals lished by the size of the building  Inspections will receive city inspections only according to the following scale  Rental properties with two by cause or complaint and will and terms: or fewer units will continue instead, self-certify that they  Three to ten unit buildings – meet Salt Lake City standards no more than 35% of units continued on page 7

How much does the job pay?

What concessions did we win from the city?

Our position still is that cities can only inspect based on cause or complaint. We think any more than this wastes resources and the time of landlords and tenants and is just an employment plan for more than needed city inspectors. However, in the interest of cooperation with Utah’s largest city, we agreed to allow some inspections. The agreement did accomplishment several major concessions:  New construction will not be re-inspected for four years (“double inspections”, ie. being cleared for occupancy by building inspectors and then once tenants moved in being re-inspected to get a business license were common)  It was reaffirmed that single family and duplexes will not be inspected (except by cause or complaint) but will fill out self-inspection checklists  Instead of entire building, the city will only inspect a portion of units  Changes of ownership will not trigger inspections

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Rental Housing Journal Utah

Become a More Inspiring Leader ...continued from page 1 and by preconceived notions,” says Rob-Jan de Jong, a behavioral strategist and author of “Anticipate: The Art of Leading By Looking Ahead” (www.robjandejong.com). “We think we know ahead of time what will and won’t work, which makes us quick to dismiss ideas that sound too ‘out there.’ The people who answer to you learn the lesson that creative thinking is frowned upon, even if that’s not the lesson you wanted to teach.” Simply making a New Year’s resolution to have a more open mind in 2016 likely won’t be enough to turn things around. But de Jong says there are behaviors and practices that, through repetition and perseverance, can help leaders and anyone else develop a mindset that’s open to imaginative and better ideas.

Formulate powerful questions.

Jong says. Train yourself to catch poorly designed questions, asked by you or someone else, and reformulate them. Questions that begin with “why,” “what” and “how” are best because they require more thoughtful responses than those that begin with “who,” “when,” “where” and “which.” Especially avoid questions that can be answered with a “yes” or “no.”

Expand your sphere of influence.

“We are strongly influenced, for better or worse, by the small group of people we have direct contact with,” de Jong says. “Since we tend to hang out with people who are fairly similar to ourselves, chances are we are limiting our perspectives.” He recommends making a deliberate effort to encounter people and ideas that are “profoundly different from the usual suspects you hang out with.” Visit a conference of a different profession, hang out with skaters, join an arts club or buy a magazine randomly off the shelf.

Generating ideas starts with asking the right questions and the best questions are thought-provoking. They challenge underlying assumptions and invite creativity. “They also give us energy, Break your patterns. You can increase your chances of making us aware of the fact there seeing things differently if you deis something to explore that we hadn’t fully grasped before,” de liberately break your normal pattern of working, communicating,

“Some of these practices may take people outside their comfort zones, and everyone might not be ready to try all of these at once,” de Jong says. “But if you start to put them into practice, you’ll be able to Learn to listen. grow into a more mindful, vision“We’ve all been taught the im- ary leader one step at a time.” portance of being good listeners,” About Rob-Jan de Jong de Jong says. “The problem is most of us struggle to actually do it.” Rob-Jan de Jong, author of “Anticipate: The Often when people are “listening,” Art of Leading By Looking Ahead” (www. they really are waiting for the first robjandejong.com), is an international speaker, writer and consultant on stratopportunity to share their story, egy and leadership themes. He serves as their opinion or their experience. an expert lecturer at various leading busiDe Jong suggests training your- ness schools such as the Wharton Business self to engage in three pure lis- School (USA), Thunderbird School of Globtening conversations a week. They al Management (USA), Nyenrode Business University (The Netherlands), and Sabanci don’t need to be longer than 15 Business University (Turkey). to 20 minutes, they can be formal or informal, and the other person As a behavioral strategist, he speaks, teachdoesn’t need to know what you’re es and consults on executive subjects such as visionary leadership, influence, stratedoing. Vow that you won’t try to gic decision-making, and innovation. take over the conversation no matter how much you want to. “Just keep asking questions and don’t dismiss anything the other person says,” de Jong says. After the conversation, reflect on what you learned. Don’t dismiss any ideas or views that don’t align with yours. “Dare to challenge your own assumptions and reframe your beliefs if need be,” he says. thinking, reacting and responding, de Jong says. Take a different route to work. Change where you sit in meetings. If you are normally the first to volunteer, hold back.

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Rental Housing Journal Utah · January 2016


Rental Housing Journal Utah

Re-instated Inspection Program ...continued from page 5 to use the self-certification checklist as they have for the duration of the Landlord / Tenant program.

 Criminal action depending on which self-certification standards are violated, and/or

 Rental properties with three or more units will utilize the self-certification checklist every two-years and onsite rental inspections will be performed no more than every four years (unless by cause or complaint).

 Civil action depending on which self-certification standards are violated. - 1st Notice of violation including nature of violation and proposed action in response, warning period, - Violations threatening life and/or safety may trigger fines before a lengthy notification period,

 Onsite inspections will apply to:  35% of the dwelling units for buildings with three to ten units.  20% of the dwelling units for buildings with eleven to twenty units.  15% of the dwelling units for buildings with twenty-one or more units.

- 2nd notice of violation including date when fines will begin.  An appeal process exists through the Housing Advisory & Appeals Board and City hearing officer.

 Refusal to allow an onsite  Initial rental inspections will inspection may result in ON-SITE-NW SEATTLE not be required for new conrevocation of the business METRO, ARIZONA struction, because of the in- VALLEY, license or removal from the APT. NEWS spection and permitting proLandlord / Tenant program. Industries Salsbury cess involved with receiving a - Removal from the Landcertificate of occupancy. This lord / Tenant program relates to the first required results in paying higher inspection upon issuance of business license fees and Feb,license, Apr, but Jun, the business theAug, Oct, perDec unit fees. next inspection at four-years - Higher business license would be required. fees are set based on the  Any time there is cause or amount of disproporcomplaint, the City can tionate level of City serschedule an inspection withvices those properties out limitation, regardless of typically require. the status of the self-certification checklist and/or fouryear inspection cycle.

 Although inspections will be based on the self-certiON-SITE fication checklist, the City VALLEY, METRO, ARIZONA APT. NEWS maintains its Housing Code is Salsbury Industries Section 18.50 of the Salt Lake City Code.  Enforcement (Section 5.14.120)

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Rental Housing Journal Utah 路 January 2016


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