Rental Housing Journal Utah June 2016 by Professional Publishing, Inc

June 2016 - Vol. 8 Issue 6

Rental Housing Journal Utah

2. President’s Message – The Befits of the NAA

5. Ask the Attorney – Property Liens

3. Director’s Message – Supporting Those Who Support You

UPCOMING EVENTS General Membership Meetings Ogden ..................................... July 26th 7pm Logan ..................................... July 27th 7pm Salt Lake ............................... July 28th 7pm

EVENTS Good Landlord Class Salt Lake ..................................... July 8th 8:30am Ogden ............................................... July 19th 6pm www.GoodLandlordingTraining.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

Utah Landlords Have Unique Opportunity To Help Local Refugees Jenny Gnagey, Catholic Community Services of Utah

efugees come to Utah having fled persecution and conflict in their home countries. Upon arrival, they begin the process of making Utah their new home. The first step in this process is having an apartment to go home to. Because of this, Utah landlords have a unique opportunity to help local refugees. In recent years, approximately 1,200 refugees are resettled in Utah each year. Resettlement in Utah is operated by two official resettlement agencies, Catholic Community Services and the International Rescue Committee. These agencies provide two years of comprehensive case management for all arriving families. They also help coordinate services such as hous-

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Introducing the Industry Insights Report

he Utah Apartment Association is proud to present our Industry Insight’s Report. This report is a unique benefit to our members and contains detailed, aggregated analysis for the entire state, major counties, and most significant submarkets along the Wasatch Front. By using information provided by members, industry partners and other databases we are able to present you with timely information about the neighborhoods where your properties are located, including average rent by type and by square foot. continued on page 4

UAA Meets With Governor’s Staff About Meth Issue

epresentatives from the Utah Apartment Association and Realtor’s Association met in June with Justin Harding, Governor Herbert’s Chief of staff about state rules regulating meth contamination and cleanup. Attending the meeting from the State as well were Dr. Joe Miner and Dr. Rolfs, the two top appointed officials in the State Department of Health, the state agency that has jurisdiction over public health issues such as meth contamination. At issue was Utah’s only in the nation policy of allowing a kind of testing for meth contamination that is panned by all major sci-

entific and policy organizations and not allowed, according to officials at the state health department, by any of the other State Health Departments. The proper way to test for meth contamination is to use a method called discrete sampling, where individual samples are tested individually for contamination. However, meth testers and the Salt Lake Valley Health Department prefer a method of sampling called compiled composite sampling, which takes all the samples and mixes them together, and then tests continued on page 6

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

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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

President’s Message The Befits of the NAA

Peter Harradine, AIT, CAM Board Chair Utah Apartment Association

, along with over 9,000 other industry professionals, recently returned from the 2016 National Apartment Association Conference in San Francisco. I was reminded once again how lucky our industry is to have associations that support and protect us. As an affiliate of the National Apartment Association, the Utah Apartment Association and its membership have a strong advocate in National Apartment Association. The UAA has a seat at the table and is a welcomed voice

in helping to direct the course on a national level and promote our shared interests from the local level. Many of our board members have had the opportunity to serve on NAA committees and on the NAA board. I currently serve on two national committees with NAA and have had a valuable experience networking with other industry professional, discussing important topics, and bringing back ideas that may help our local association and its membership. In addition

to attending committee and board meetings, this year’s conference offered over 50 education sessions. I was able to take away a lot of good information from the ones that I attended. There were many great presenters like Jonathan Perelman, who is the head of digital initiatives at ICM Partners and former executive at BuzzFeed and Google. He coined the phrase “content is king but distribution is queen” - and “she wears the pants.” He talked about ways to improve your presence online by keeping things simple, adding an element of surprise, and being specific.

I’m proud Utah had such great representation there – we had over 70 conferences attendees and dozens more exhibitors from great Utah companies like Aldous and Associates, Entrata (formerly Property Solutions, Fire Avert, Rent Dynamics, Renters Legal Liability, Western Reporting, and WSI. In all it was another great conference and I come back rejuvenated and encourage with where our industry is going and the possibilities and opportunities that await us.

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Rental Housing Journal Utah · June 2016

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

Supporting Those Who Support You

ne of the advantages of If you are doing business now associations is that they with someone who is not yet a create a network of people member of UAA I want to tell you who can help each other. As part three things: of the UAA, we have a category yFirst, y they should be a member and support your support system. of member that are suppliers and I encourage you to ask them to service providers who work for support your association. Or give us landlords and property managers. a call and ask us to contact them. We We encourage you to support these have a great membership committee companies because they contribute and staff who can help them join. hundreds of thousands of dollars y when they join you will to the association so we can sup- ySecond, be their hero because they can port and protect you. leverage their membership to In the next month or so you grow their business, get more will be receiving the 2016 memclients and make more money. For bership directory with informaabout $300 a year they will receive tion on these companies. When promotion to our 3,500 members plus thousands of other decision you are looking for a supplier or makers. There are many additional service provider we urge you to opportunities to teach classes, look here first.

L. Paul Smith, CAE Executive Director Utah Apartment Association

Lastly, when you refer a new member, you receive benefits - a $25 credit you can use on any UAA service or class and an entry in our drawing to win $1,000. So far there are about 100 entries this year so you have great odds. Also, everyone who refers a member gets invited to UAA movie night in the fall when we rent out a theatre just for you! So support those who support you and encourage those you support to participate and benefit from the UAA.

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Rental Housing Journal Utah

Industry Insights Report ...continued from page 1

This report is designed to help you understand the market, spot trends and evaluate the position of yourself and your investments. As time goes by more information will be made available in newer editions of the report, including information on amenities and new developments. So check back frequently to see what is new! Deciding how much to charge for rent is one of the most difficult tasks for a landlord or property manager. Get it wrong and you can lose lots of money – either from vacancy and turnover rates on the one hand or lost opportunities on the other. This Industry Insights Report for the first time draws together market data from across the state into a comprehensive listing of information in 25 regions. More than 34,000 apartment listings from 2015 were used to create this report.

the zip codes included and displays a basic map of the area. Every effort has been made to ensure that the regions are roughly equal in population and are of areas that more or less have similar rental markets. Demographic information is summarized at the beginning of each area. Since the regions are made of zip codes rather than city or county boundaries, sometimes a property might be in a region that you wouldn’t at first think to look. For more information check the zip code index at the back of the book.

Apartment Communities Vs. Non-Apartment Rentals

Each area report has two parts. The first part has two tables, one dedicated to rentals in apartment communities which lists the number of apartments advertised in that region by the number of bedrooms and bathrooms, and gives the average square footage, rent and rent-per-square-foot for each type of floorplan. The second table Regional Information Each of the 25 regions used in is labeled “Non-Apartment Rentthis report was created based off of als” and tracks for what econothe combination of zip codes. The mists sometimes call the “shadow beginning of each area section lists market” – rentals in Single Fam-

ily homes, Multi-Family Homes (aka duplexes, fourplexes, etc.) and Condominiums or Townhomes. Like the apartments it lists the number of each type for each type of floor plan and the average square footage, rent and rent-persquare-foot. The second page of each area report has three graphs. The first is called the “Unit Mix” and breaks down the percentage of rentals in the area into three different types of apartments (1 bedroom, 2 bedroom and 3+ bedroom), as well as multi-family homes, single family homes and townhomes/condos. The next two graphs show the average rent that different types of apartments and rentals command on average in the area. The apartments are broken down by studio, 1 bedroom, 2 bedroom, 3 bedroom and 4+ bedrooms. The one, two and three bedroom apartments are also subdivided to show the difference in rent between 1 and 2 bathroom units. The non-apartment rentals are shown in a similar manner, except instead of studio apartments the 5 bedroom rentals are shown.

Bedrooms, Bathrooms And Average Rent Per Square Foot

It is important to compare your apartment to a similar floorplan. Each table in this report has a listing by bedrooms and bathrooms (BR and BA respectively). The larger the number of units reported in your region with a similar floorplan, the more reliable the information will be. Perhaps the most useful measurement is the Average Rent per Square Foot which will allow you to adjust your calculations specifically to your unit. You also must keep in mind the quality of your rental – if your place is nicer than average, then you can charger higher than average rent. Conversely, if your apartment is dated or functionally obsolescent, you may be charging less than the average.

More Information

At the end of this report is a Zip Code Index which will give you a better idea of more specific information for the zip code where your property is located. You can find continued on page 7

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Rental Housing Journal Utah · June 2016

Rental Housing Journal Utah

Ask the Attorney Property Liens

By Jeremy Shorts Utah Eviction Law Q: My tenant has threatened to record a lien against my property if I evict him. Should I be worried? A: It depends on whether or not the tenant has a valid basis for the lien. Anyone can record a lien, just like anyone can file a lawsuit. It doesn’t necessarily mean that they have a valid basis for their claim. If a tenant records a lien on your property without a justifiable legal basis, they can be liable for $10,000 or more in damages. If they are do-

ing it to intentionally interfere with the sale of the property, they could be liable for triple the amount of damages incurred as a result of the loss of the sale. So, while it can create some headaches upfront, there are ways you can ensure you get the lien removed and some compensation for it. As soon as you see that there is a lien on the property, it would be a good idea to contact an attorney to discuss your options which may quickly include filing a motion with the court to have the lien removed. That being said, there is almost always some benefit of trying to resolve the issue without the court and find a solution both parties can agree to.

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

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Rental Housing Journal Utah · June 2016

Rental Housing Journal Utah

UAA Meets With Governor’s Staff ...continued from page 1 the whole batch. The argument for this method is to reduce cost for the person ordering the test (usually renters or buyers). “There are two ways you can do a composite sample – one fair and one abusive,” says Taylor Smith, Education Director at the UAA. “Averaging is the method suggested by reputable scientists and says if you took four samples and mixed them, you average the result. Compiled sampling is when you take the result of all four samples but you test it as if it was one sample – that’s abusive because it effectively reduces the standard by a factor of 4. So properties can be deemed “contaminated” by this abusive method of testing, even though each area if tested individually would have passed.” “Do you mean to tell me,” said Curt Webb, State Representative from Logan during a recent legislative hearing on the issue, “that the health department allows a method of testing that is cumulative, meaning you can just keep adding samples until the property fails the test?” “That’s exactly what they do,” says Taylor. “Meth testers, who are also the “remediators” and benefit financially from failing properties because the average cost of cleanup

is $5,000 to $10,000 and goes into their pockets, prefer this type of test because it leads to more work and money for them. The sad thing is the health department enables them to abuse property owners by not outlawing this type of testing.” During testimony in front of the legislature this Spring, the State Health Department presented a slide acknowledging that compiled composite testing did have the potential to make landlords do costly cleanup that would not be required if the more thorough discrete sampling or averaged compiled samples were conducted. The UAA estimates that hundreds of thousands of dollars are inappropriately transferred from property owners to meth remediators each year through this method. Members of the legislative committee overseeing State rules asked the health department to revise the rule to stop this abuse and they agreed to start the process. The meeting with the Governor’s staff was a follow up to discuss and continue the process. Dr. Miner, who was been Director of the State Department of Health for less than a year said that the State regulations are currently silent on whether compiled composite sampling is allowed or not but that they are in process

of rewriting their regulations in a process that will involve all stakeholders, including the real estate industry. “We probably need to clarify that a property is not considered contaminated under compiled composite sampling – that there needs to be an averaged composite test or a discrete sampling test confirming contamination before it can be deemed contaminated,” he said. Harding said that it was important for the State to find a balance in protecting public health while recognizing Utah’s commitment to be business friendly and property rights oriented and expressed faith the health department and the real estate industry can find common ground during the process of revising the regulations.

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Rental Housing Journal Utah · June 2016

Rental Housing Journal Utah

To Help Local Refugees ...continued from page 1

Industry Insights Report ...continued from page 4

ing, English instruction, job development, school enrollment, and health care. Refugee resettlement in Utah dates back to 1975, but up to the present time, the resettlement program has operated exclusively in the Salk Lake Valley. However, starting this summer, Catholic Community Services plans to expand its resettlement efforts to the Ogden area. The cooperation of landlords in Ogden will be crucial to the success of this new resettlement initiative. There are many reasons to consider renting to refugees. Financially, funding from the U.S. State Department and the Office of Refugee Resettlement can cover families’ basic needs for the first six months. This includes funds for paying rent as well as start-up costs such as a security deposit in addition to comprehensive job training, job development, intensive language training, and cultural orientation to help newcomers adjust to their new life in the U.S. As a result, most refugee families are able to support themselves after the first six months and usually do not need to take advantage of other safety net funds or programs. Refugees are survivors and strivers and are highly motivated

a specific average rent for that zip code as well as an average square footage, number of bedrooms and bathrooms, and rent per square foot. If you are unsure which region your property is located in, this index will tell you which page to turn to for more information. Naturally there are limitations to any generalized report like this. If you have any questions, would like a full copy of the report, or if you would like a personalized report of comparable units listed in your area from our database, please contact info@uaahq.org for more information. Likewise, if you would like to help us with suggestions or data for the compilation of the next edition of this report please feel free to contact the UAA staff.

to establish themselves in their new country. Renting to refugees also makes a meaningful difference in the life of a family, and it constitutes a concrete step toward alleviating the current global refugee crisis. This year a broad range of religious and political leaders, both global and local, have raised calls to action for individuals to do their part to address the refugee crisis. Landlords are uniquely situated to heed these calls by providing valuable housing services to refugee families and assisting in that first step of providing stability and hope. If you are interested in renting to a refugee family in the Ogden area, please contact Jenny Gnagey either by email, jgnagey@ccsutah.org, or by phone, 801-428-1310. For those with properties in the Salt Lake City area, please contact Jeanette Hock at jhock@ccsutah.org or by phone at 801-428-1298.

Areas Covered In The Report Salt Lake County Downtown Salt Lake City The Avenues & University South Salt Lake & Sugarhouse Murray & Holliday Draper & East Sandy South Jordan, Herriman & Oquirrh Mountain Cottonwood Heights Midvale & Historic Sandy Taylorsville & West Jordan West Valley, Kearns & Magna Utah County Lehi & Pleasant Grove Orem Provo Eagle Mountain & Saratoga Springs Spanish Fork Davis County Bountiful & Centerville Kaysville, Layton & Clearfield Weber County Ogden, South Ogden & Roy North Ogden & North Weber County Logan & Cache County St George & Washington County Cedar City & Iron County Park City & Eastern Utah Tooele & Western Utah Central & South-Eastern Utah

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