Rental Housing Journal Utah May 2017

May 2017 - Vol. 9 Issue 5

Rental Housing Journal Utah

2. President’s Message – Proud to be a Landlord

UPCOMING EVENTS

3. Director’s Message – Resident Retention One of the Keys to Success

Good Landlord Class Ogden ................... Tues, July 19th 8:30am Salt Lake................... Fri, July 28th 8:30am www.GoodLandlordingTraining.com

4. Ask the Attorney – Avoiding Evictions & Good Landlords 5. 5 Qualities and Habits of Great Property Managers

General Membership Meeting Provo .................... Wed, July 26th 7:00 pm Salt Lake................... Fri, July 28th 7:00 pm www.GoodLandlordingTraining.com

EVENTS UPRO Insurance Class .............. Fri, July 14th 8:30am UAA Office

(448 E Winchester #460, Murray)

UAA Golf Tournament

(Talon's Cove Golf Course, Saratoga Springs).... July 12th

www.UAAHQ.ORG/golf-tournament.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

Upcoming Passing Fair Housing Testing UAA Events

By L. Paul Smith

L

H

ere are some of the events that the Utah Apartment Association will be putting on this Summer and Fall.

UAA Golf Tournament: July 12 @ Talon’s Cove

et’s be honest, no one likes tests! But when failing a certain test can lead to fines or law suits, it is especially important to be prepared. In Utah there are organizations that preform Fair Housing testing to verify landlords are complying with Fair Housing law. While most will be on disability issues, tests can be for any of the protected classes: race, color, sex, religion, country of origin, disability, familial status, source of income, sexual orientation and gender identity

The UAA golf tournament is a Paired Testing In Utah the main organization summer event held to help network and connect vendors and property that preforms testing is the managers. The tournament is a Disability Law Center. When shotgun start in the morning, continued on page 5 and plays as a 4-man-scramble.

Golfers are grouped into teams of 4 and as they play they stop at the beginning of every hole and talk to that hole sponsor. Prizes are giving to the top finishing teams, and there are lots of opportunities to win draw prizes as well as contest prizes. This event is a great way to network with vendors and other property managers.

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By Rentler

H

ere’s a fun fact we’ve noticed at Rentler— listings with photos get 27% more views than those without. That’s 27% more people that could be looking at YOUR property instead of another property.

Here are some tips to make sure your photos reflect your wellmaintained property and give potential tenants a glimpse of the community around it:

Staging A well-furnished room gets more tenants ogling over your listing. They can picture and feel at home when you show them potential layouts. Pictures with continued on page 6

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 Proud to be a Landlord

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

I

t’s time to give yourself the credit you deserve. You are engaged in one of the most important and noble professions – providing housing to people. Arguably, after

food and water, shelter is the most basic necessity for human life – and you have made it your business to provide that to other people. Those of you who own properties have put a significant amount of money into this, and those of you who professionally manage properties have made it your career. You are investing your time, effort and energy into our community directly.

would be few places for new workers to live. You are vital to the social and economic wellbeing of our State. And you should be proud of that fact.

It can be easy to forget how noble of a calling it is to be a landlord.

That’s because it’s a tough job.

When you get that phone call at 2:00 AM saying that the toilet is overflowing, when you have tenants who don’t get along and try to Without you, more than one out involve you in every little conflict, of every three people in the state of or when you have a resident who Utah would not have somewhere screams and yells at when they are to live. Without you our economy the ones who caused the problem would falter and new jobs would – it can often be a thankless and cease to be created because there difficult thing to be a landlord. But

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don’t let that get to you! You are part of a group of Landlords and Property Managers who make up the UAA, a group “dedicated to quality rental housing”.

Thank you again for all that you do!

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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

Resident Retention – One of the Keys to Success

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

T

here is a universal truth in property management – turnover creates cost and work. That’s not to say there aren’t costs and work at other times. But it is true that when renters move out, our efforts and money are concentrated as we try to restore a revenue stream as soon as possible.

So seasoned landlords learn quickly an important lesson – if you can hang on to your tenants longer, you are likely to have

less work and less cost. Some experts say each turnover costs an average of $3,000 in turnover expenses (things like cleaning, carpet replacement, marketing, etc) and vacancy cost (the time the place sits unrented times the daily rental amount).

Turnover in Utah is as high as 80% - meaning the average tenant stays about 14 months. Over ten years, that’s 8 turnovers. Multiplied by $3,000 each that is $24,000 more expense than having one tenant for that time.

So what are the keys to retention?

First, understand why tenants move. Only 30% have to, because they buy a home, move out of state or get married. A full 70% of renters that move from your rental will move to another similar rental within 20 miles. Of those who moved to another rental when they really didn’t have to, they say they did so because they weren’t getting what they wanted where the where.

Even carpet and paint can be The landlord wasn’t A) responsive, B) reliable or C) respectful. So the used to lock them into leases (especially if you have to do it good news is with better customer anyway if they did move). service, these renters say you would be able to keep them longer. yAllow y tenants to customize their Second, implement the following rental. They will stay longer if you practices to encourage renters to do. Maybe this is letting them stay longer: have an accent wall the paint ySign y long term leases, if possible, color of their choice, their own that only expire in times of window coverings, or planting year convenient for you. There their plants in the yard. If people is nothing worse than having can customize they will feel more a month to month tenant give comfortable and stay longer. you notice they are moving Whatever you do, recognize in a bad time, like winter. having one tenant, even a mediocre yGive y incentives for renewing one, for a long time, could be much a lease and don’t let tenants less work and ultimately make you go month to month. M to M more money in the long run, than agreements give them too having a new tenant every year. much flexibility unless you Work hard to keep them happy and are being compensated by a use leases and incentives to lock month to month fee. Try to offer them in to new long term leases. If improvements to the property you do you will be more successful. you can tie to renewal like new windows, a new garage door, or something you should do anyway, if they will stay.

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Rental Housing Journal Utah

Ask the Attorney Avoiding Evictions & Good Landlords

By Jeremy Shorts, Esq.

I

often have clients that lament about having to go through the eviction process with a problem tenant. Landlords don’t usually get

excited about hiring an eviction attorney. I admit that hiring us is not a “fun” or “luxury” service – we don’t install swimming pools. It’s probably similar to getting those 2:00 AM calls that the bathroom is flooding in one of your units (maybe worse).

But when a landlord is dealing with a problem tenant, using a reputable and competent attorney is the best thing you can do.

We often get asked – “What

should I do so I never have to hire you again?” My first piece of advice is to properly and thoroughly screen your tenants.

A significant portion of our work is because a landlord didn’t take a rental application, didn’t verify employment or income, and didn’t do a background check.

We even had one case where we had just evicted the tenants, and as they were moving into their new rental they left their eviction order out on the table. The landlord came

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by to do some last minute cleaning and saw our name on their fresh eviction paperwork. He recognized our law firm and called us a month later when the tenants gave him excuses about paying rent.

After advising a landlord to properly screen tenants, the next thing I tell them is to join the Utah Apartment Association (UAA). For several years now I’ve been able to work with the UAA. Their resources and impact on the apartment industry will greatly help you to become a better landlord, property manager, etc.

The UAA has documents and forms on their website available to members, they also conduct training and education seminars that are focused on helping you become a better landlord (which will save time, stress and money for both you and your tenants). If you are not familiar with them, I would encourage to look into them and become a member (visit www.uaahq.org).

A few weeks ago I was able to travel with a group from the UAA as we attended the National Apartment Association Capitol Conference in Washington D.C. It was interesting and helpful to see the issues that landlords and property managers in other states are dealing with. Luckily many of the problems that landlords deal with nationwide have not yet crept into Utah, but it’s not a matter of IF but WHEN these issues will come.

Jeremy Shorts, Esq. Utah Eviction Law Phone: 801-610-9879 Fax: 801-494-2058 Email: info@utahevictionlaw.com

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Rental Housing Journal Utah · May 2017

Rental Housing Journal Utah

Passing Fair Housing Testing ...continued from page 1 the DLC tests, they generally use paired testers. This means they send (or have call on the phone) two applicants. They measure if the two prospective applicants are treated the same. One tester is not in a protected class (the “control” tester). The other is (the “protected class” tester). The tests are normally done on the same day, to the same leasing person or landlord. If any red flags are discovered, the DLC orders a second test. If both tests suggest the landlord uses discriminatory practices, a complaint is filed with the state or Housing and Urban Development (the Federal Agency in charge of Fair Housing).

Findings of discrimination by the state can result in fines of $10,000 for first time offenders. The most effective way to avoid red flags from paired testing is to be sure and treat EVERY PROSPECT the same.

What are red flags?

A landlord recently called the UAA after receiving a letter from the state notifying her it was beginning an investigation based on testing from the DLC. In her case, she had twice been asked (a few weeks apart) if she allowed service animals. Both times she said yes, BUT, both times she told them she charged an extra $500 deposit to have a service animal.

That is an illegal practice. The first offense was the “red flag”. The second led to a formal complaint.

According to the DLC, a significant number of initial tests find "red flags" suggesting discrimination or discriminatory practice, leading to follow-up.

Some of the red flags included: yApartment y manager asked about the nature of a person’s disability (a clear no-no) yTester y was told there would be $50 additional rent added each month for a service animal. yA y protected class tester was told no unit was available while a control tester was told there was one ready now. yA y protected class tester was referred to another complex while a control tester was shown a unit at that complex

yThe y control tester was offered a move-in special while protected class tester was not

Using Rental Criteria and Equal Treatment The best way to help you treat everyone equally is to use the same process, procedure and criteria for everyone. Having a firm list of rental criteria can help make sure applicants are only judged on those items (income, credit, rental history, etc.) and not on some prohibited criteria like having a service animal or children in the home.

In addition to rental criteria, have, in writing if possible, a “script” you use with everyone.

For instance, write down in advance how you will answer every question you might receive. When you do a tour, make it the same for everyone. When getting an application and doing screening, follow the same procedures and require same information from all.

This is especially important if you are not the one actually answering the phone, giving the tour, or screening the tenants. If you have friends, employees or a property manager who is helping you with any of that part of the process, you need to make sure that they are following your Fair Housing script because you will still be on the hook if they do something wrong.

One landlord called the UAA recently after being put in exactly that situation. They had been on vacation and had a friend answer inquiries about a property that was for rent. The friend said that the owner wouldn’t allow any animals onto the property, and although the actual landlord knew enough to answer the questions correctly, their friend didn’t understand the issue and got the owner in trouble when they were tested.

What to Avoid when Renting a Vacancy Answering questions differently can get you in trouble. For instance, if you ask one applicant how many people will live there, but ask another how many kids they have, it might look like you are discriminating against children.

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Doing a tour of the grounds, pool and neighborhood for one person, but not doing it for the next could look like you prefer the one over the other. Treat everyone the same.

When you get an application, run it immediately. Don’t wait for “a few to choose between”. This could look like you are waiting for someone who “is not in that protected class” to rent to. That would be discriminatory.

Deny people only for failing one of your rental criteria, like insufficient income, poor rental or credit history, previous criminal history, etc. Never use your “gut” instinct. Denials must be based on qualifications, not feelings.

Allow anybody to apply. You should explain your criteria clearly, but you should not preemptively deny somebody by telling them they shouldn’t apply or refusing to accept their application.

Furthermore, you should encourage everybody to apply – even if they have a service animal or other potentially complicated Fair Housing issue. If they raise the issue the best thing to say is “you should apply to see if you qualify to rent the unit” regardless of whatever other concerns you or they may have.

Housing Isn’t a Right – but all Should Have Equal Opportunity yYou y don’t have to rent to someone in a wheelchair, who is also an axe murderer and has been evicted five times.

But you should give everyone opportunity by letting them view the housing and apply if they think they can qualify.

yTo y provide opportunity, your rental criteria shouldn’t be so high as only to describe the top 1% of renters. It should be set only to screen out high risk individuals, not setting the bar so high that good tenants can’t qualify. yThe y best indicator of future performance is past performance.

Give everyone an opportunity to show you how well they performed in their last rental, and base qualifications on that not how well they speak English. yYou y don’t have to rent to pets or allow people who are high risk. But if someone with an emotional support animal applies, give them an opportunity to verify they qualify for that “accommodation” for an assistance animal (and the commensurate waiving of all pet fees, pet rent, etc.).

If you need help with that process please contact us.

Many landlords find people they were initially uncomfortable about but couldn’t exactly say why, turn out to be great tenants when given the opportunity.

Whether it is a tester or an actual applicant, the best way to run your business and comply with the law is to provide opportunity for all, treat people equally and qualify tenants on risk based (not opinion or emotion based) criteria. If you do that, you will be successful in business and in passing Fair Housing testing.

yWhile y you can set reasonable occupancy standards (like two people per bedroom), you cannot deny families with children the opportunity to rent your place, if they qualify, simply because they have children. yYou y don’t have to rent to people who are loud and disturb others. But verifying families with kids were not too noisy at their last place and having them agree to abide by your noise standards rather than assuming they are too loud to live there gives them opportunity.

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Rental Housing Journal Utah

5 Qualities and Habits of Great Property Managers

By Marc Courtenay, courtesy of www.propertymanager.com

S

ometimes life is what happens while we’re making other plans. Other times life feels like it’s in the palm of our hands waiting for our decisions about what we want to make happen next.

Maybe that’s the way our lives are supposed to feel. One of the things I know for sure is that you can learn a great deal about successful property management by watching those who are adroit at it.

One of my “pet projects” is studying the habits, qualities and characteristics of highly successful property managers. Through the years I’ve discovered some consistencies they all seem to share.

The first is what I call “brilliance”.

I don’t mean they’re extra smart nor have an unusually high Intelligence Quota (IQ). Their “brilliance” shines in their daily approach to their work. Like this article implies, they’ve learned from other brilliant managers and they’ve applied what they’ve learned. They’re willing to take the time to study the characteristics and successes of others.

The second quality, one that becomes habitual, is that great property managers have an extraordinary amount of curiosity.

Since they are, either by nature or self-discipline, observant professionals, they keep their eyes and ears wide open for better ways to accomplish. They’re not afraid to ask questions, do research, and delegate to others the task of finding solutions.

They’re obsessed with growing and evolving. They seem to innately know that something that they don’t know is holding them back from reaching their full potential. They’ll go to seminars, join associations, listen to selfimprovement CDs and watch DVDs. As the father of SelfActualization, Abraham Maslow, would say, “They must become all that they must be!”

Humility is a key quality and component of their character.

They’re not driven by their egos and they don’t care a hoot about becoming arrogant. They like achieving abundance and success,

but they’re not compelled by an insatiable appetite for wealth and power. With their humility comes a sense of altruism and a desire to know they are making a positive contribution to society. They derive great satisfaction in serving the needs of their clients and residents.

They strive for excellence without being perfectionists. Perfectionism will drive you to distraction!

Wanting to be their “personal best” and to challenge themselves away from mediocrity and complacency describes these high achievers.

They learn from their results.

To gain more understanding about the qualities and characteristics of outstanding property managers, I encourage you to read a book (or listen to the audio version) like “Good to Great” by author Jim Collins.

Property Managers are in many ways similar to companies and corporations. Why do some stay stuck, implode or wither why others “make the leap” from being good to becoming great.

“How can good companies, mediocre companies, even bad companies achieve enduring greatness?” When that question is answered, it can almost always be applied to individuals and partnerships.

“For years, this question preyed on the mind of Jim Collins.

Are there companies that defy gravity and convert long-term mediocrity or worse into longterm superiority? And if so, what are the universal distinguishing characteristics that cause a company to [become] great?” After an intensive 5 year study Collins and his team of researchers found some amazing similarities.

Those in the property management industry can benefit from insights and ideas that articles like this one or a book like “Good to Great” offers. Knowledge and awareness will provide the power and the “fuel” to help propel you to the next level of personal growth and rewarding achievements.

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503-933-6437 Rental Housing Journal Utah · May 2017

Rental Housing Journal Utah

Upcoming UAA Events ...continued from page 1

How to Take Better Photos ...continued from page 1

Reverse Trade Show UAA Movie Night: “Business to Business November 2017 @ Jordan Exchange”: August 30 @ Commons Salt Lake Board of Realtors The UAA Movie Night is

furniture always bode well, as they enable prospective tenants to really visualize your place as their place. However, on the flipside, you want to make sure the photos don’t look too cluttered or filled with personal items.

If someone is currently living in the property you will be listing, inform them ahead of time you would like to come take some photos and mention that you would like the decor to look as simple as possible. Once you begin photographing, try to crop the photos so personal items are out of the frame.

If the property is empty, we get that you probably don’t want to spend the time or money it would take to fill it up. You can get creative and repurpose items from your lobby (if your property has one) or bring a few things from your own house. All you really need is a chair or two, mirrors to reflect natural light, and a plant to make a place look inviting. If you want to invest a little bit more into photography, you can also use a staging company that will bring in furniture and take the photos for you.

While you’ve got the camera out, take some photos of the area around the property. Whether that’s the yard, courtyard, sidewalk, or hallway, people want to see what their new surroundings will be.

The UAA Reverse Trade Show “Business to Business Exchange” is a fundraiser for the UAA’s Political Action Committee. In order to sponsor the event you must exhibit in the 2017, or contracted to exhibit in the 2018 UAA trade show. At the event property managers and decision makers volunteer their time to hear from you. Vendors get 5 minutes at each table and then move to the next one (at the ring of a bell).

Economic Conference: September 12 @ Salt Lake Board of Realtors The Economic Conference which the UAA puts on every year is a chance to hear from economist, demographers, and experts in the rental housing market discuss trends and forecast what will be coming in the following months and years, and is growing in popularity and size every year.

UAA PAC Luncheon: October 11, 2017 @ Top Golf in Midvale The UAA P.A.C. Luncheon is held to honor those who have helped the industry by donating to the UAA PAC. It also helps raise awareness regarding pressing issues landlords face every year.

This event is designed to be a fundraiser and includes: yBottomless y soda, water, and tea

held at the end of every year to honor those individuals who go above and beyond to make the UAA a successful and striving organization. Those who participate with the “member get a member program” are invited to reserve tickets. We rent out an entire theater and watch a newly released movie, the past two being “James Bond: Spectre” and “Fantastic Beast and Where to Find Them”. Make sure to get your spot by referring a new member to the UAA and having them tell us you sent them!

Tribute Awards: January 2018 @ Little America Hotel

The UAA Tribute Awards is an event held to honor those who excel within the rental housing industry. Companies, properties, individuals, and vendors are nominated for specific awards and then judged by an awards committee. Finalist are invited to attend, with the winners being announced at the event. We are currently looking for nominations for individual, property and vendor awards. Please email info@uaahq. org if you would like to nominate an individual or company (or to check and see if you have Lighting been nominated!)

Be Professional No need to hire a professional, just try to get the best angles and use a great camera with high resolution if you have access to one. Make sure your photos aren’t blurry or pixelated. Remember, photos can be the deciding factor for those who are on the fence about renting your place.

If you don't have a fancy camera, using your smartphone for photography is no longer taboo.

However, you may want to invest in a phone tripod that helps with blurry pics. Then, edit your photos on your phone before you post them. Most smartphones have the option to auto-enhance, so just stick to that if you're unsure about your editing skills.

Give Yourself Options Taking more photos than you think you’ll need is a great way to give yourself options, then select the photos that turn out the best.

Also, take photos at different times of the day in order to capture different lighting and effects.

Following these simple tips will make a massive impact on the number of visitors to your listing.

Article courtesy of Rentler 1-888-222-1009 www.Rentler.com

Natural light will be your best friend, so try to take the photos during daytime hours. Turn on all the lights before you snap your photos. If you have a dark room or area, use lamps to brighten the place up. Light brings life to your listing by infusing it with colors and warmth. Accent lighting can be decorative and bring harmony and balance to rooms as well.

yLunch y yLifetime y membership at Top Golf y1.5 y hour Q & A with political officials and UAA lobbyists y3 y Hours of unlimited Top Golf yOpportunity y to network and mingle with members of the Utah Apartment Association and other industry leaders

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Rental Housing Journal Utah · May 2017