Rental Housing Journal Utah March 2017 by Professional Publishing, Inc

Rental Housing Journal Utah

2. President’s Message – The Annual Conference Deserves a Spot on Your Schedule UAA Education TradeshowSchedule

UPCOMING EVENTS Good Landlord Class Ogden ................................ May 17th 8:30am Salt Lake.......................... May 20th 8:30am www.GoodLandlordingTraining.com

3. Director’s Message –

March 2017 - Vol. 9 Issue 3 EVENTS UPRO Class ................................... Fri, Apr 14th 8:30am UAA Office

(448 E Winchester #460, Murray)

UAA Education Conference & Tradeshow ............................. Apr 25th South Towne Expo Center UAATradeShow.com

5. Ask the Attorney – Holding Eviction Lockouts & Security Deposits 6. 4Q16 Market Overview - Salt Lake City

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

Final 2017 Legislative Report

Are You Ready For the April th 25 UAA Trade Show? We will be holding the Good Landlord Refresher Course at 9:00 am (included with the price of admission)

e are pleased to announce that with the support of UAA members, volunteer leaders, staff and our hired lobbyists, the 2017 session has yielded some incredible successes for the rental housing industry.

yDo y you have a real estate or broker’s license? Do you need CE credit? You can get up to 4 hours of credit at this year’s show, with multiple options. yDo y you like to laugh? This year’s keynote speaker Jason Hewlett is hilarious! We can guarantee you won’t be able to keep a straight face.

HB 376: Landlord-Tenant Rights This bill standardizes all evictions to be under the same "expedited timeframes". They bring all five types of evictions into continuity and standardization. The five types are (the five types are 1) nonpayment, 2) criminal eviction - those both are currently expedited, 3) contractual compliance, i.e. violating terms of the lease, 4) end of term eviction where tenants refuse to move after lease ends, and last 5) commercial evictions. This is a significant improvement because tenant’s attorneys were often stalling evictions by 60 days,

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n April 25th 2017 at the South Towne Expo Center the Utah Apartment Association will host its Annual Fair Housing Education Conference & Trade Show. This year is geared up to become the largest in UAA history. With more exhibitors, more education & more fun! Registration is easy. You can register online at uaatradeshow.com or by calling the UAA office at 801487-5619. Register early to receive

special discounts and to be entered to win special prizes. The earlier you register the more you save and the more chances you have of winning! There will be more than a dozen classes for you to choose from, that have been handpicked by a special committee to cover the hottest topics and most important issues facing landlords and property managers like you. yDo y you need to renew your good landlord certificate?

yWant y more information on Fair Housing? We’ve got classes for that. Worried about protecting yourself from liability? We have a class for that. What about issues about Meth contamination? Evictions? Team building? Market trends? Yup. We have classes for those too! For more information about upcoming classes look at the education schedule published in this edition of the Rental Housing Journal.

Jason Hewlett is the 2017 Trade Show Keynote Speaker

he Utah Apartment Association is extremely excited to have Jason Hewlett as our keynote presenter at the 2017 Trade Show. Jason’s One-Man Show of Music, Comedy, Parody & Impressions has received Best of State honors in the Arts & Entertainment category numerous times in his home state of Utah, and is received by standing ovations worldwide. Uniquely enough, this same show is performed on stages for families, corporations, and appeared in continued on page 3

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 Annual Conference Deserves a Spot On Your Schedule.

L Peter Harradine, AIT, CAM 2017 UAA Board Chair Utah Apartment Association

ife is busy. We all know that. Work, family, business, community and other activities take a toll on us and we need to be selective of what we put on our schedule. One thing that definitely deserves to be on your schedule is the UAA Fair Housing Conference and Trade Show on April 25th at the South Towne Expo Center. Whether you own one unit or

manage a thousand, there is something for you at the event. Every year I enjoy spending time with over 1,200 other rental housing professionals. There are over 125 vendors and I always make connections with people who can save me money and help streamline my business. The information, giveaways and relationships I pick up are of incredible value.

The education classes this year will be better than ever. There are more than a dozen class options, with a variety that allow everyone to find topics that interest and benefit them. This year’s keynote speaker promises to be very entertaining I hope you will join me at this quality event. Register now.

UAA Trade Show Education Schedule

Customer Service - Seeing What Your Customers See.............. Bill Nye We can all agree that attitude is the biggest factor in customer service Current Issues in Fair Housing (1 CE Credit)..............................Panel but what really drives our attitude? This seminar will dive deep into the Fair Housing can be a difficult maze to navigate, with expensive penalties world of social mindfulness and explore the connection it has to customfor doing it wrong. Learn about the most pressing Fair Housing issues er service. You will learn how the way we view life controls our ability that are impacting Utah Landlords and Managers. to serve others. Can we offer great customer service when we feel life is Dominate Your Market - The Best Team Wins........................ Bill Nye unfair? This seminar offers real solutions to your customer service issues. This spectacular and unique program has audiences glued to their seats Liability: Protecting Yourself and your Business.........................Panel as Bill leads them through his 5-step program designed to help you build How can you protect yourself against what you can’t predict? Do you a “market dominating” team. Regardless of your industry or market you have enough insurance? What happens if one of your tenants is injured will be able to apply this program to your team and see results in a very on your property? What if one of my employees is negligent or just goofs short time frame. You will leave this seminar highly charged and armed up? This panel of experts will walk you through some of the most comwith the tools to be a better leader. mon liability issues that landlords and property managers face, and talk

Education Session #1............................................9:30 AM

Meth and Property Contamination Issues ..................................Panel Nothing strikes fear into a landlord’s heart like hearing the phrase “your property is contaminated”. What should you do if you suspect your property might be contaminated? What are the costs involved? How can you protect yourself from false positives? This class will help you through these issues. Air Conditioning Mechanical Electrical (Starts at 9:00 3 Hours)... HD Supply This 3 hour course is a good starting place for any HVAC technician. All skill levels are welcome. We discuss interfacing old and new equipment, service guidelines, repair options and proper charging techniques.

about how you can protect yourself and your business.

Education Session #3............................................ 2:15 PM Current Issues in Fair Housing (1 CE Credit)..............................Panel Fair Housing can be a difficult maze to navigate, with expensive penalties for doing it wrong. Learn about the most pressing Fair Housing issues that are impacting Utah Landlords and Managers.

A Psychological Approach to Leasing and Selling.................... Bill Nye This highly successful and popular program will make you think, laugh and ponder. You will learn so much about human behavior and what drives our decision-making. This research-based seminar conti`nues Good Landlord Refresher Course (2 CE Credit) .... Jeremiah Maughan to be a crowd favorite. Bill will introduce you to the four basic human This class on Property Management Basics meets the requirements of temperaments and describe how our temperament type dictates how we municipal Goodland Lord Programs. At the end of the class, participants view the sales process. will receive certificates they can turn into their city to receive a discount on their business licensing fees. Utilities: Making Profits From a Pain in the Neck........................Panel Utility costs keep going up. What is the best way to handle this increasEducation Session #2..........................................10:45 AM ing expense? How can you turn utility billing into a profit center? What Avoiding Fair Housing Complaints (1 CE Credit)........................Panel is the best way to bill tenants for what they use? And who do you call at One of the biggest fears landlords have is making a small slip up and sud- the utility provider if you have a problem as a landlord? This expert panel denly finding themselves in court being charged with discrimination un- has all the answers. der the Fair Housing Act. Come attend this class and learn how to avoid Air Conditioning Mechanical Electrical (3 Hours).............. HD Supply the most common mistakes that landlords make, how to avoid them, and This 3 hour course is a good starting place for any HVAC technician. All how to handle tenants who present potential problems. skill levels are welcome. We discuss interfacing old and new equipment, service guidelines, repair options and proper charging techniques. continued on page 3 Rental Housing Journal Utah · March 2017

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

rental housing guarantee fund. We also helped procure another $4 million in affordable housing monies to alleviate pressure on low income renters. We significantly improved and expedited the eviction process. A trespassing bill that helps renters remove unwanted guests was passed. We were able to kill a proposal to tax L. Paul Smith, CAE property management fee and UAA Executive Director other property management or Utah Apartment Association related services. Division of Real e have had a number of Estate Revisions were passed that big successes already will clarify who is exempt from this year at the State licensing requirements and involve Legislature. The most significant the industry in drafting those is that we procured $1 million provisions. Requirements were in funding for a housing choice passed that require landlords to

disclose the criteria they use to qualify applicants but that does not penalize owners or managers (for now) that didn't understand these best practices. All in all it was an extremely successful year. Thanks to all who contributed. If you did not contribute to the PAC this year, as you read the following accomplishments, please resolve to contribute to the PAC in 2017. Our goal is to raise $100,000 and to have 50% of our membership participate. Last year we raised $88,000. We had 31% member participation. One sponsor gave $5,000, three gave $2,000 or more, 15 gave $1,000 or

more, 20 gave $500 or more, 90 donated between $200 and $500, and 675 gave less than $100. Whether it is $50 or $5,000, we encourage you to support the great legislative efforts in protecting you and enhancing the business environment for rental housing.

Tradeshow Education Schedule ...continued from page 2 Evictions (1 CE Credit)............................................Jeremy Shorts, Esq How long does it take to evict in Utah? Most evictions are handled in weeks, but if they are not done correctly they can take months. This class will give you more insights into how to handle evictions quickly and effectively.

Education Session #4............................................ 4:00 PM Avoiding Fair Housing Complaints (1 CE Credit)........................Panel One of the biggest fears landlords have is making a small slip up and suddenly finding themselves in court being charged with discrimination under the Fair Housing Act. Come attend this class and learn how to avoid the most common mistakes that landlords make, how to avoid them, and how to handle tenants who present potential problems. Managing and Motivating the Maintenance Team.................. Bill Nye Maintenance complaints are one of the biggest reasons that tenants move, and it makes no sense for your leasing staff to bend over backwards to get a tenant to move in, just to have them left unsatisfied by your maintenance team. The key to good maintenance is a well-managed and motivated Maintenance Team. How do you do that? Come to this seminar to learn how to make your maintenance staff into “Partners with a Vision” Spring Economic Outlook (1 CE Credit)............................ James Wood Join University of Utah Economics Professor Jim Wood for a presentation on the state of the Rental Housing market in Utah. Dr. Wood is the leading expert on the Utah Housing Market and has conducted in depth research about rentals in the state. Come learn more about what is going on and what is likely to happen in the near future. Knowing When & How to Raise Rent..........................................Panel How do you know if you are charging too much for rent or charging too little? How do you really know what you are apartment is worth right now in this quickly changing market? Join a panel to learn about tools and strategies to boost our bottom line.

Rental Housing Journal Utah · March 2017

Rental Housing Journal Utah

Final 2017 Legislative Update ...continued from page 1 which costs landlords a lot of money and eventually hurt tenants when they lose and get a judgement for treble damages of 180 days rent.

HB 202: Trespass Amendments This bill will allow tenants to have the police help them remove guests who are not on the lease. It's a huge win for tenants and landlords, because often the only way for landlords or tenants to get rid of such people was to evict the tenant.

an extraordinarily complicated business, and adding the such a requirement would be an undue hardship on the property managers as well as their clients, the individual owners. We testified against the bill and helped kill it this year.

HB 196: Division of Real Estate Amendments

require that landlords adopt what is already considered best practice by informing prospective tenants of what criteria will be used to evaluate their applications. A compromise, which we supported, passed, and will make it so that failure to do so does not excuse a tenant from lease compliance or create a cause of action.

This bill, sponsored by Rep. Gage HB 36 Affordable Housing Froerer (R), Huntsville, will give Amendments more authority to the Real Estate Funds received: Commission to determine when yy $2,061,000* for the Olene owners are exempt from needing Walker Housing Trust HB 302: Modifications to Tax a license. It will also allow for a Fund to fund affordable new "Dual Agent" who works in This controversial tax overhaul both Property Management and housing development bill has received significant Sales under the current Dual yy $2,061,000 for a state Low attention for the fact that it Brokers rule. Income tax credit program to would have put in place sales tax on food. However, we were HB 83: Rental Housing provide tax credits to sell to specifically concerned that it Application Disclosure investors to create capital for will also for the first time put in Amendments affordable housing development place a tax on services such as This is a bill, suggested by yy $500,000* for a housing choice "Real Estate and Rental Leasing". renter's advocates, that would Property Management is already voucher guarantee fund

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Here is a description of how the Department of Workforce Services Housing and Community Development Division (HCD) Olene Walker Housing Loan Fund plans to administer the Housing Choice Landlord Guarantee Program.

Program Overview Housing and Community Development (HCD) was directed by the Utah State Legislature to develop a pilot program for reimbursing persons under certain limited circumstances who provide housing to tenants using Federal Housing Choice Vouchers. The Housing Choice Landlord Guarantee Program is designed to provide financial assistance to landlords to mitigate damages caused by tenants as a result of their occupancy under the HUD Housing Choice Voucher Program, also known as Section 8, and to provide incentives for landlords to open more rental units to Section 8 tenants.

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A landlord may apply for financial assistance to reimburse them for qualifying damages. To be eligible for the program, landlords must have leased to tenants through the HUD Housing Choice Voucher Program, also known as Section 8. The damages to the residence must exceed normal wear and tear. To qualify for the program assistance, a landlord must first obtain a judgement against a tenant from any Utah legal court, in the county in which either the tenant or the property is located. The time frame for appeal of the judgment must have expired without appeal or the judgment must otherwise not be subject to further judicial review. Program assistance is limited to reimbursement for those amounts covered in a final judgment, less treble damages. Claim reimbursements may include expenses related to property damage, or other damages satisfactorily described and documented in a claim from the landlord to HCD. Property damage claims must include the following: a) Landlords will be able to submit a claim based on a judgement dated after May 1, 2017; b) Property damage must have been caused as a result of a tenant's occupancy, pursuant to a rental agreement in force under the Housing Choice Voucher Program at the time

continued on page 7 Rental Housing Journal Utah · March 2017

Rental Housing Journal Utah

Jason Hewlett ...continued from page 1

Ask the Attorney Handling Eviction Lockouts & Security Deposits (which may be your rental) within 30 days after they vacate.

Court Process

By Jeremy Shorts

andlords are often misguided or confused about when and how they go about changing the locks on a tenant. First – Make sure you understand the law! The locks should only be changed in two situations: (1) the tenants voluntarily vacate the property, or (2) the landlord goes through the court process to obtain an Order of Restitution (or Eviction Order).

Tenant Voluntarily Vacates The first, and most common, way to be able to change the locks on your property is if the tenants vacate the property. This can include if the tenant abandons the property or if both sides agree to mutually terminate the lease. No matter the circumstances (i.e. the tenant disappears in the middle of the night or the landlord and tenant agree to a move out date), the landlord should take reasonable steps to ensure that the tenant has actually moved out. Do your best to contact the tenant and confirm that they have vacated the property. If they have confirmed they have vacated (it’s best to get something in writing, the landlord should be fine to change the locks. If you don’t get any response at all, that helps to show they have abandoned the property. Keep copies of any letters, notices, text messages or emails showing you have made reasonable attempts to contact them. Even in abandonment, the landlord should also still issue an itemized security deposit closing statement showing how their security deposit was applied. That may include charges for damages or repairs, but also for any rent or other amounts owed under the lease. Utah law requires the deposit closing statement to be mailed to the tenant’s last known address

Utah law is clear that “self-help evictions” are not permitted. If a tenant refuses to vacate voluntarily, the landlord must go through the court process to obtain an order of restitution. For most evictions we handle, an order of restitution is usually granted within 2-3 weeks of filing the eviction with the court. Once the landlord obtains the order of restitution, the tenants may be removed by force (if necessary). By the time the locks are changed, the tenant usually has had at least a few weeks of knowing this would be coming. Hopefully they have removed their personal items so the landlord can come in and begin cleaning. However, even if the law allows a landlord to change the locks and put their personal belongings in storage, there are often practical considerations on the day of the lockout. First, if you change the locks with their personal property within the unit you then become responsible to store and care for their personal items. As a practical matter, if the tenant needs a little bit of additional time to finish moving it may be best to allow them that time. This will allow the tenant a chance to remove their own personal property to their own location, instead of you having to remove it, store it, and then have to work with the tenant to pick it up at a later date. Anything outside of these two options (voluntarily vacating or court process) could be considered a wrongful eviction. Landlords should be thorough in their approach prior to changing the locks. When in doubt, seek advice from an experienced attorney. Jeremy Shorts, Esq. Utah Eviction Law Phone: 801-610-9879 Fax: 801-494-2058 Email: info@utahevictionlaw.com

Rental Housing Journal Utah · March 2017

every major Casino in Las Vegas, while remaining a G-Rated, family-friendly, corporate ready experience. Few performers can match the level of laughs, energy, and appropriate material for any audience as Jason Hewlett, and the show continues to evolve and grow each year, resulting in repeat performances for more than half of his clients, which is unprecedented in the corporate market. UAA board member Kirk Cullimore who has had the opportunity to see Jason preform live said that “Jason Hewlett is THE FUNNIEST entertainer I have ever seen. If you don’t usually do the Keynote Lunch, you won’t want to miss it this year.” Even US Senator Orrin Hatch had the chance to see his show and said “I can’t remember another performer or presenter that has so entertained

and enthralled our audience over the years. Jason is a special speaker and messenger that I wish every American had an opportunity to enjoy.” So if you are prepared to have a great time, make sure to join us this year for the keynote presentation during lunch at the Trade Show! Get a sneak peak of the show and find out more at jasonhewlett.com

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Rental Housing Journal Utah

4Q16 Market Overview – Multifamily Housing Update – Salt Lake City, Utah By Daniel J Hogan, Director of Research, Red Capital Group, djhogan@redcapitalgroup.com | 614-857-1416 Office 1-800-837-5100 Toll Free was the largest fourth quarter net Southwest SLC(8.4%) submarkets. Private investors remained the Payroll Job Summary absorptiontally since 2012. But Above average growth also was dominant force in the market.Private Average Payrolls 716.8m supply (439 units) also increased, observed inSandy/Millvale (7.1%) entities accounted for 100% of 4Q16 Annual Change 4Q16 24.5m (3.5%) a firstsalvo of what promises submarket. On the other side of the purchases, up from76% during to be an historic construction coin,West Jordan (3.7%) reported the first nine months of the year. RCR 2017 Forecast 20.7m (3%) fusillade(3.319 units) in 2017. the slowest submarket growth rate. A San Diego-basedfamily-owned RCR 2018 Forecast 16.5m (2.3%) Occupancy declined -10 basis RCR specified an 87.9% ARS real estate company was the largest RCR 2019 Forecast 11.5m (1.6%) points sequentially(-20bps year- (SE=1.0%) rent forecasting 4Q16 acquirer,closing on nearly RCR 2020 Forecast 7.7m (1.0%) on-year) to 96.3%, comfortably equation,using quarterly occupancy $100mm of apartment assets and within the 96%to 97% range changet-1 (+) and home price accounting formore than 35% of total RCR 2021 Forecast 4.3m (0.6%) in which metro occupancy has appreciationt-2 (+) as independent quarterly sales. Unemployment (NSA) 2.7% (Dec.) resided since 2012. variables. The resulting base Observed purchase cap rates 4Q16 Payroll Trends and Axiometrics surveys of forecast isconstructive. Rents are gravitated in a tight 5% to 6% Forecast construction 115 larger, stabilized same- expected to rise at above market range.Recent Salt Lake MSA recorded an store propertiesfound average average(2.0%) rates through the properties traded at the lower end eighth consecutive quarterly occupancy of 95.6% in 4Q16, down end of the decade. Gains are of therange with few apparent annualemployment growth rate –20bps sequentiallyand year- projectedto exceed 4% through geographic distinctions. Older above 3% in 4Q16, adding workers on-year. Inclusive of properties 2018, followed by gradually slowing value-addsexchanged hands at topayrolls at a 24,500-job, 3.5% in lease-up thefigure was 94.8%. growththrough the end of the five- mid-5% to 6% yields based on age. year-on-year pace. The result SLC’s small class-A sector (96.3%) year forecast interval. Earliersales suggest that center city wasmoderately slower than 2Q postedhighest occupancy, followed assets may trade to high-4% caps. and 3Q16’s respective 3.7% and by classes-B (95.6%) and –C (95.1%). Trade & Return Summary RCR conclude that 5.5% 3.8%gains but SLC remained Among submarkets, Murray and $5mm+ / 60-unit+ Sales 17 represents a reasonable purchase one of the fastest growing South SL/Cottonwood (96.7%) Approximate Proceeds $249.0mm caprate proxy for SLC class-B+/B larger metromarkets in the U.S. recorded highest occupancy. quality properties. At this level, Financial service concerns were By contrast, only Northwest Average Cap Rate (FNM) 5.6% aterminal cap rate estimated at 6.2% $165,181 primarilyresponsible for recent (94.6%)fell below 95%. New unit Average Price / Unit and quarterly model-derivedrent strength, hiring 5,100 (10.1%) absorption was slower in 4Q as Expected Total Return 7.1% and occupancy point estimates we workers in2015 and 2016, up from 11 newproperties leased up 10 RED 48 ETR Rank th calculate that an investorwould 17 3,600 in the prior two years. But units per month, down from 17 expect to earn a 7.1% unlevered Risk-adjusted Index 2.78 the techflavored business service during 3Q16. annual total rate of returnon a sector remained the economic 39th 5-year hold. This is 20bps above As noted, an unprecedented RED 48 RAI Rank bulwark,generating 9,700 (8.5%) supply deluge is in store that the RED 48 mean and ranks17th net new jobs over the past two willdeliver more than 3,000 4Q16 Property Markets and among the group. Model standard years,including a metro best 5,800 units to market in 2017. RCR Total Returns Property sales surged in error is high, however,suggesting (4.7%) jobs year-on-year in 4Q16. analysissuggests that demand unusual uncertainty. The riskOfnote, hiring in the construction will lag supply in 2017, causing the fourth quarter as 17 large adjusted index ranks #39. of buildings subsector came to occupancy toslip about -30bps. propertiesexchanged hands for anabrupt halt in 4Q16 as sector But the supply pressures will abate $249.0 million, ranking as the establishments added only 100 in mid-2018,opening the prospect most activequarter in market (0.9%)workers to payrolls, down of metro occupancy rebounding history. The average price of from 1Q16’s 1,300 (19%) job to the 97%area by YE18. Slower 2,815 traded unitswas $165,181; SLC series record high metrics in cycle peak. economic growth after 2018 and each instance. Seasonally-adjusted data were returningsupply in the out years largely consistent, showing a 7,300- will tend to move occupancy lower job net gain in 4Q16, moderately by 2020. stronger than the 6,400– and6,600job gains posted in the year-earlier Effective Rent Summary $879 and prior quarters,respectively. Mean Rent (Reis) The New Year got off to a slow Annual Change 6.3% start, however, as SLCsuffered its RED 50 Rent Change Rank 7th first sequential month net job loss 4.3% (-2,100 jobs) innearly two years RCR YE17 Forecast and only the eighth in the last RCR YE18 Forecast 4.0% seven years. RCR YE19 Forecast 3.2% RED Capital Research specified 2.4% a 95.9% adjusted-R2 (S.E.=0.5%) RCR YE20 Forecast 2.4% forecasting equation using the rate of RCR YE21 Forecast change of U.S. payroll growth,metro 4Q16 Effective Rent Trends personal income growth (+) and Rent growth was seasonallyS&P500 returns (+) asindependent strong during the fall quarter, variables. Under our base macro rising$15 (1.7%) sequentially forecast (see page3) the equation to $879, according to Reis, projects further 2%+ annual gains in representingthe fastest sequential 2017 and 2018but gradually slower gain recorded during a fourth job creation afterward as we forecast calendarquarter period since 2006. weakertrends in each of the equation Asking rents advanced at a solid independent variables beginning $14(1.5%) pace, and concessions 2019. receded -$1 or about 1.5%. Expressedon an annual basis, rents Occupancy Rate Summary increased 6.3%, representingthe Occupancy Rate (Reis) 96.3% fastest growth recorded in SLC RED 51 Rank 15th since 2007, and the seventhfastest Annual Chg. (Reis) -0.2% annual advance observed among the RED 46 peer group. RCR YE17 Forecast 96.0% Axiometrics same-store RCR YE18 Forecast 97.1% data were largely in line with RCR YE19 Forecast 96.9% Reis. Thesesurveys found that large property rents increased RCR YE20 Forecast 95.9% at a 6.2%annual pace, down RCR YE21 Forecast 95.0% from 7.0% in the prior quarter. 4Q16 Absorption and Class-A assetswere in the poll Occupancy Rate Trends position again, rising at a 6.8% Reis report that apartment pace against increases of 6.5% demand was brisk during 4Q16 and 4.6% for classes-B and –C. astenants net leased 354 vacant Trends werestrongest in South units, up from –108 in the SLC/Cottonwood (9.4%) and continued on page 7 comparableperiod of 2016. This 6

Rental Housing Journal Utah · March 2017

Rental Housing Journal Utah

Final 2017 Legislative ...continued from page 4 the time required for repairs the damage was incurred; with respect to qualifying c) Damages to property must exceed property damage; normal wear and tear; and c) Lease-break fees; d) Claims will not be accepted for d) Pre-Judgment and/ or postexpenses of less than $500, but judgment interest; total claims payment will not be e) Other costs related to repair more than $5,000 per tenancy. labor, materials, disposal fees, etc. This does not include unit Types of Program upgrades. Assistance f) Actual damages will be paid. A Judgment (less treble damages), Treble damages are excluded including court fees, would be paid in the full amount up to the Program Delivery $5,000; partial payments will not A landlord must submit a claim be an option. for program assistance to the Department within 60 days of Qualifying Damages obtaining a judgment against a Include qualified tenant. The time frame a) Attorney fees, court costs; for appeal of the judgment must b) Loss of rental income during have expired without appeal or the

judgement must otherwise not be subject to further judicial review. After submission of the application HCD will notify applicants if the application is incomplete within ten (10) days. HCD will process applications and approve payments to landlords within forty-five (45) days of receiving a complete application. Checks or electronic transfers will be sent directly to the landlord once the landlord has signed the satisfaction of judgment. After receiving payment, a landlord must file the satisfaction of judgment within thirty (30) days. A copy of the filed satisfaction of judgment must be delivered to the department within forty (40) days of receipt of the payment or 10 days

of filing. Future rent is excluded from claims to this fund. Damage claims and claims for rent lost while repairs were being made may be treated as two separate claims; therefore they may to be in separate judgments. When a landlord signs the satisfaction of judgment for a damage claim, the landlord is still eligible to file a second claim for a judgement for rent lost due to the qualifying repairs (apart from normal time required to re-rent the property) so long as total payment is under $5,000 per tenant.

Market Overview ...continued from page 6

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 recommendationsto buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not beenindependently 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 informationgathered 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 toparticipate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountantor other advisor regarding your specific situation. Any views expressed herein are subject to change without notice due to market conditions and other factors.

Rental Housing Journal Utah Âˇ March 2017

Rental Housing Journal Utah

LOWER MAINTENANCE COSTS AND LESS TENANT TURNOVER. GO SMOKE-FREE. www.tobaccofreeutah.org/muh-intro.html

Rental Housing Journal Utah Â· March 2017