Rental Housing Journal Utah January 2018

January 2018 - Vol. 10 Issue 01

Rental Housing Journal Utah

2. President’s Message – The Importance of Networking 3. Director’s Message – Twelve reasons why you should attend the UAA Fair Housing Education Conference & Trade Show 4. Ask the Attorney – Repairs and Rentals Rental Market Trends to Look Out For in 2018 7. Tradeshow Education Schedule

UPCOMING EVENTS

UPCOMING EVENTS

Good Landlord Class Salt Lake ........................................................ Fri, Mar 9th, 8:30 AM Ogden .............................................................Fri, Mar 16th, 8:30 AM

UAA Tribute Awards Banquet Thurs ..................................................... Feb 16th, 6:00 PM Little America Hotel.....500 Main St, Salt Lake City

UAA General Membership Meeting Wed............................................................... February 21st in Ogden (5703 S 1475 E, South Ogden #460) Thurs.................................................... February 22nd in Salt Lake (UAA Office 448 E Winchester #460, Murray)

UAA Trade Show Wed............................................................................... Apr 25th Mountain America Expo Center.....9575 State St, Sandy

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

How to Avoid Fair Housing Issues

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UAA Trade Show to be held April 25th Registration Now Open

he Utah Apartment Association “Fair Housing Education Conference & Trade Show” is one of the state’s best, and most comprehensive recourses for your business. Wither you own or manage rentals or sell products or services to those who do, you can’t afford to miss this show. Come experience world class education seminars that will save air Housing laws are an you money and headache, while at important part of ensuring the same time collaborating with that everybody has equal exhibitors that can save you money access to the housing that they need. on the bottom line. With tensThis year we will be celebrating the of-thousands of dollars in draw 50th Anniversary of the passage prizes, giveaways, and money to of the Fair Housing Act, as we are win; no other event will be as fun grateful that as a nation we have been able to overcome so much.

Fair Housing has been improved immensely in the last half century and we are close and closer to ensuring that it is available to everybody.

However, because the laws can be vague and the application can be counterintuitive and confusing, many landlords can become quite frightened at the prospect of facing

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or as rewarding as this one. Did we mention world class comedy mind reader Sean Bott will be our lunch keynote speaker? You will be blown away by his show. And don’t forget that this year we are going to have an opening general session at 9:00 featuring nationally renowned speaker and Property Management expert Kate Good. You won’t want to miss out on her presentation, especially of her experience as a Property Manager to an apartment community in Houston during Hurricane Harvey.

This year we are celebrating the 50th Anniversary of the Federal Fair Housing Act. In the 50 years since

1968 when the first Fair Housing Act was passed, our country has worked hard to decrease irrational housing discrimination, combat segregation and provide opportunities for minorities and ...continued on page 6

Rocky Mountain Power and Dominion Energy Announce $15 Million in Multifamily Rebates

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ntil recently, most residential energy rebate programs in Utah were focused on single family residences, but that has now changed, with an announcement that both Rocky Mountain Power and Dominion energy will provide comprehensive

old regional nonprofit with a history of designing and launching programs to meaningfully impact communities and provide sustainable solutions.

The program will be targeting only multifamily properties with 4 or more units and offering utility incentives that create energy savings for in-unit as well as owner-paid meters. The first step is for properties to schedule an energy use assessment. Once areas of potential energy reduction are identified, the property is given options on rebate potential for specific upgrades.

According to Dawn PriceSandberg, Businesses Development rebates to multi-family customers Executive with ICAST, this for energy use reduction, through program “offers an innovative their WattSmart and Thermwise one-stop-shop approach to retrofit programs.

MULTI-FAMILY properties by These programs will be integrating the utility rebate administered by ICAST (International program with their other services Center for Appropriate and Sustainable Technology), a 15-year ...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 The Importance of Networking

Jayme Buhlman UAA President Utah Apartment Association

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n Utah we are lucky to be part of one of the largest organizations for landlords in the country. This gives us an excellent opportunities to meet with other landlords, vendors and service providers, which is one of the best resources that the association provides.

Keys to Networking When it comes to networking, here are 7 things that you need to make sure that you do in order to be successful.

1. Don’t forget your business card.

Having contact information that you can quickly and easily give out is important in order to follow up.

2. Break the ice quickly. You don’t have to be fancy about it, just going up and saying hello to people and asking them how they are enjoying the event or class can make for an easy segue into taking about common issues.

3. Join a conversation, don’t hijack it. If you see a group discussing something you don’t need to take over in order to be included.

Conversely, feel free to join into an ongoing conversation if you have something to add!

4. Give yourself time to chat.

Arriving early is the easiest way to find other people to talk to.

5. Set a goal of meeting a certain number of people and try to stick to that goal.

6. Pay attention to who asks questions.

If another attendee asks a question that is relevant to you, it might be worth meeting them to discuss your similar interests and issues.

7. Keep in contact. Don’t wait until next year’s trade show

to reach out to your new friends, you might want to follow up within the next few weeks, and it’s always a good idea to keep in touch at least a couple times a year.

Opportunities The UAA provides several excellent opportunities to network.

The best by far is the UAA trade show, which bring together thousands of landlords, property managers and rental housing specialists from around the state, and also includes hundreds of

vendors and specialized service providers. I strongly recommend that you do this, especially if you have never had the opportunity to attend before. You will be able to find other people who know exactly what kinds of issues you face, and who might have some ideas or solutions that can help you.

Other networking opportunities include UAA classes, especially the monthly General Membership Meetings that the UAA hosts at the end of every month, as well as the

other events put on by the UAA including the Reverse Trade Show, Golf Tournament, and Awards Banquet. Also, for those who really want to get involved, we have the UAA Committees where you can work with other members to help plan events, recruit new members, run community service activities, design educational materials and direct our Government Affairs issues. Not only is this a great way to get involved, it is a fun way to meet other members and network.

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Rental Housing Journal Utah · January 2018

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 Twelve reasons why you should attend the UAA Fair Housing Education Conference & Trade Show

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

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here are literally hundreds of reasons to attend the annual Utah Apartment Association Fair Housing Education Conference and Trade Show. As the largest gathering of landlords and property managers in the state this event is the most important event on the association’s calendar. Here are twelve of the most important reasons why you should attend this years Education Conference & Trade Show.

1. To get information on recent changes to Utah State Law that you need to know about.

2. To network with thousands of landlords, property managers, and rental housing professionals from around the state.

3. To make sure you and your staff have up to date Fair Housing training to avoid potential violations.

4. To be entertained by world class entertainer Sean Bott.

5. To view demonstrations of new products designed help you run your business more effectively.

6. To get pumped up and excited about being a landlord in today’s great market by hearing from nationally renowned speaker Kate Good.

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Replacement Cost - (Special Form) Coverage on repairs, even on older buildings.

Increased Replacement Cost Increases the coverage on the dwelling to 125%.

7. To find out more about UAA events and resources that can help you and your organization.

8. To chat with service providers who can help you save thousands of dollars and make your life easier.

9. To find opportunities to volunteer with the UAA on service activities, committees, and more.

10. To discuss future UAA government affairs and legislative efforts.

11. To attend classes taught by experts on topics that can help your operational procedures.

12. Find out more about what is going on the in Rental Housing industry and how things are changing.

No matter who you are or what kinds of properties you manage, this year’s event will offer you an opportunity to improve your business, streamline your processes, and ensure that you are protected now and in the future.

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Rental Housing Journal Utah

Ask the Attorney

Rental Market Trends to Look Out For in 2018

Repairs and Rentals

By Jeremy Shorts Utah Eviction Law

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he Utah Fit Premises Act (“UFPA”) lays out specific requirements and procedures related to the landlord tenant relationship. The UFPA states some general requirements for all landlord and tenants under Utah law, but it goes into detail in describing how to handle problems and repairs. As a practical matter, when a tenant makes a request for a repair, the landlord should usually take the request seriously and act in a timely manner. As a legal matter, it is important for landlords to know the requirements imposed by the UFPA. First, the timelines stated below are usually triggered by the tenant giving a written “Notice of Deficient Conditions” which outlines the deficient condition and also alerts the landlord of what the tenant intends to do if the problems are not fixed in a timely manner. There are a few types of property conditions addressed in the UFPA, and each one has their own timeframe to act.

First, a “Deficient Condition” is a problem that violates a standard of habitability or the lease, which typically requires that it interfere with the health or safety of the ordinary renter. A Deficient Condition cannot be caused by the renter and is not created by

the tenant’s actions that violated the lease or applicable law. For Deficient Conditions that impact a standard of habitability, the landlord has three calendar days to “take substantial action … toward correcting a deficient condition.”

For Deficient Conditions that aren’t violations of a standard of habitability but are still based on obligations of the landlord stated in the lease, the timeline is ten calendar days.

Under the UFPA, “Dangerous Conditions” are deficient conditions, but they also must pose a substantial risk of imminent loss of life or significant physical harm. For a Dangerous Condition, the landlord has 24 hours to “commence remedial action to correct the dangerous condition and diligently pursue remedial action to completion.” You’ll notice that the statute doesn’t require the landlord to completely fix the problem within 24 hours, three days or ten days. But the landlord must take substantial action toward fixing the problem and follow through until it is complete.

As a practical matter we routinely advise clients to do everything possible to completely fix the problem within the corrective time frames so they don’t have to worry about a judge deciding they didn’t do enough within the time limits.

Taking care of problems promptly up front can save thousands of dollars in legal fees if it ends up in court.

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

By Elizabeth Millar, www.appfolio.com

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he changing landscape of the real estate market as we look forward into 2018 is going to affect the rental industry in many ways. Anyone in the real estate or rental industry should be looking at these as they think about how to grow their business, meet owner and renter expectations, and create strategies to meet revenue goals this year and into the future.

In a recent Forbes article, AppFolio’s VP of Product Management, Nat Kunes, shares his predictions for the big four rental trends to pay attention to in 2018: 1.) Occupancy Rates Fall And Rent Growth Slows Single-family rent demand is slowing down in most areas of the United States, with the exception of major metropolitan areas that continue to boom. With less demand, property managers will need to get more aggressive about attracting and keeping renters.

2.) Population Shifts And Affordability Reshape The Landscape There are two things that drive the rental market — population shifts and affordability. The biggest trend in affordable housing is the shift away from public housing to

housing choice voucher programs.

Demographic shifts will also reshape parts of the real estate landscape. An increasing trend for baby boomers and the empty nester population is to actually move out of the suburbs and into urban environments, often choosing to rent instead of buy.

3.) Hottest Market Opportunities While we have all heard about the popularity of moving to cities like Nashville — the entire Southeast, in fact, and the Northwest are becoming a popular living destinations for many. After all, hot rental markets tend to follow job and population growth.

Investors looking to expand their properties should consider these regions.

4.) Tech Disruption The use of intelligent systems, machine learning and AI applications in software will, increasingly, be a huge agent of change in the real estate industry. This disruption will alter everything from property valuation all the way to property management — an area where the use of AI and chatbots can offer tenants better service and automate maintenance workflows.

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Rental Housing Journal Utah · January 2018

Rental Housing Journal Utah

Avoid Fair Housing Issues

...continued from page 1

Fair Housing Issues. The key to overcoming this is education.

That is one of the reasons that it is so important for Landlords, Property Managers, and everybody associated with Rental Housing to attend the annual IAA Fair Housing Education Conference & Trade Show, to receive training, updates and the latest information.

In talking about Fair Housing, here are some principles that you can use to avoid problems.

1. Everybody is welcome to apply You should never make snap judgements about people over the phone. If somebody calls you and asks “do you accept people who ____?”, you should always let them know that you follow all Fair Housing Laws and that anybody is welcome to apply. There are organizations out there that have received government funding in order to call and test landlords to see if they are breaking Fair Housing laws, and often they are hoping to catch you saying something wrong on the phone, so you should never make judgements about people over the phone. Even somebody who is questionable, you should allow them to choose if they should apply and then evaluate their application once you have all the information in front of you rather than telling them something that may not apply when you have more information in front of you.

2. Happy Tenants don’t file a Fair Housing Complaint.

Ultimately people are only likely to file a Fair Housing Complaint

when they are upset or angry.

Sometimes there is nothing you can do to make people happy (such as when you end up denying the application of an angry and belligerent person who happens to be in a protected class who then files a fair housing complaint despite the fact that the denial has nothing to do with his protected class). However, especially with existing tenants, you can often prevent problems by putting in place customer service procedures that can help calm upset tenants and ensure that even if you deny their requests, that they still feel valued and understood.

3. Appearance & Context Matters.

When a fair housing claim is evaluated by the courts or a government agency, the issues are always considered in context. The most important thing you can do to provide this context is to keep good records to ensure that your thought process and rationale are documented and explained. For example, if you have a property that you are going to be renovating so you will not be renewing the lease of the occupant of that property, make sure that you document beforehand your intention to do that. This would protect you in the unlikely case that the tenant of that property happens to be part of a protected class and then proceeds to make a claim that you didn’t renew their lease for discriminatory reasons.

It is important that you keep good records of policy changes,

responses to accommodation requests, reasons why you deny applications, complaints by and from other tenants, and other records.

4. Unintentional Violations usually cost more than Intentional Violation Landlords rarely blatantly discriminate under the Fair Housing Act. Oddly enough, when they do they are usually much better about covering themselves and protecting themselves, and are much more likely to get away with it than if they had inadvertently and unintentionally done something that might be deemed to be discriminatory by the courts. Therefore you should frequently reevaluate your policies, practices and procedures to ensure that there would not appear to be anything weird or inappropriate going on to an objective and informed outsider. And if you want to do something new, innovative or unique you might want to run it by an attorney, the association or by other rental professionals first.

5. If you create a rule that has exceptions, you create potential fair housing issues Be careful before you create a new rule, because if that rule will have any exceptions then it is possible that you might be creating a potential fair housing violation. For example, many landlords now have a policy that they will not waive late fees under any circumstances.

However, other landlords do have a policy that under very specific circumstances they might waive a late fee. For example, a long term tenant that has paid on time for at least a year forgot somehow to pay rent, and the landlord is willing to waive that late fee in recognition

of their long history with the tenant. That is an exception policy that is fair and valid, however it still creates a potential problem inasmuch as it is offered to one tenant and not another. So, if you waive one tenant and not another, and there is some difference between the two that might be a protected class, you might end up having to defend yourself against a fair housing claim. You will probably win, especially if you have a documented policy on file about how you waive the fees, but you would still face the headache of dealing with the complaint and having to defend yourself.

6. The Importance of Communication One of the most important things you can do to prevent a Fair Housing complaint is to clearly communicate with your tenants and your applicants about potential issues. There have been unfortunate cases where landlords find themselves facing a fair housing complaint from a tenant who they thought they had done everything that that they had been requested.

However it turned out that there was a miscommunication between the tenant and the landlord of what was expected.

In the end it is important to learn about Fair Housing laws and take them into account, but it is also important to not overreact and end up hurting your bottom-line over a potential issue that will likely never arise. Ultimately the most important principle is to try to treat everybody the same, review your procedures to ensure that they are fair and reasonable, and to continue to attend Fair Housing training.

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Rental Housing Journal Utah

UAA Tradeshow ...continued from page 1

protected classes to have equal access to the housing market, and in turn access to good paying jobs, quality schools and economic opportunity.

And, as another incentive to sign up early, this year we will have a Registration Raffle where every week starting February 5th we will have a drawing among all of those who are currently registered to give one lucky attendee a $50 gift card!

Come join us as together we celebrate, learn, network, advocate and grow!

ICAST Launches ...continued from page 1

For more information, or to find out other ways the UAA Trade Show will benefit you and your company contact us at 801-4875619, email info@uaahq.org or visit uaahq.org/uaa-educationconference-trade-show. Make sure that if you sign up online you don’t forget to enter code TS18EB to get $10 off before March 1st!

including Site Assessments; DesignBuild for Rehabilitation of existing Multi-family properties; Access to low-cost financing, incentives, utility rebates and grant funding; Construction Management; and Green Consulting.”

Retrofits eligible for rebates can include not only gas and electrical utility system upgrades but also water and plumbing systems, solar power upgrades, etc. In properties where utility costs are passed on to tenants, upgrade costs can potentially be passed on as well, since the tenant will eventually benefit.

“This is really an exciting opportunity” said UAA Education Coordinator Taylor Smith.

“Landlords have been calling me for years looking for information on how they can do these types of upgrades, and having one point-of-contact that can help do

it all, is fantastic.” Smith noted that most tenants look for “green communities” and this can be a marketing advantage up-front, and a cost savings advantage long term.

“It really is a win-win situation for the property manager, the tenants, the community and the environment.”

In some cases multifamily customers can combine utility rebates with additional incentives, including green lending incentives from Fannie Mae, Freddie Mac and FHA, various tax credits and deductions, grants, etc.

For more info on this programs and how they can help you and your tenants save money and energy, please contact Dawn PriceSandberg at DawnPS@icastusa.org or 801-874-5204

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for each • unit, property and company. Per- only forms generation will save time and Logos are provided on the CD in all three forms: all black, to white, or inproperty PMS 280 Blue/PMS 7543 Gray spot money or 4/color applications. fect for mid andreversed small size managover other methods. Mid and small Please see below for specific use examples. ers and independent rental owners, who size property managers and independent • No other colors are acceptable for use for the logo. neither have the need or budget for larger, rental owners can manage their entire busi• No altering of the logo is allowed. If you have a special circumstance that requires something not more expensive ness at aforfraction provided on software. the CD, please call NTN NA TIO NAL HEADQUAR TERS 1.800.228.0989 assistance. of the cost of other soft• Logos should not be put over a busy background. ware and forms.

4. Management Database - Rentegration.

BLACK com is an easy to use, database driven soft- WHITE (with 40% gray circle) from the database. The modules are all integrated and work together. For example, a customer can use the rent-roll function to identify all delinquencies, apply fees, and create eviction forms with a few simple clicks of the mouse.

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503-933-6437 Rental Housing Journal Utah · January 2018

Rental Housing Journal Utah

Tradeshow Education Schedule Opening Session |

9:00 AM

Kate Good

The Opening session of the 2018 Trade Show will feature nationally recognized Multi-Family expert Kate Good. Kate has been working in apartments her entire life, and has brought invaluable insight to developers, marketing directors and associations across the country.

This opening session is perfect for all team members, managers, and landlords—everybody will benefit from Kate’s high creative energy and in depth knowledge of the issues they face. You won’t want to miss it!

Air Conditioning Mechanical Electrical (9:00-12:00) - 3 Hours long

This 3 hour course is a good class for any HVAC technician. All skill levels are welcome. We discuss interfacing old and new equipment, service and maintenance guidelines, repair and replacement options, proper charging techniques as well as go over troubleshooting procedures. This is a fantastic opportunity to get hands on information from a nationally recognized expert on HVAC systems.

program, we will look at the new needs of the recession driven customer and channels you can use to reach them. In this crowded market you need to learn how to stand out.

Property Management 101 (10:15-12:15)*2 CE Credits

The UAA has been offering this basic introductory class on how to manage rental property for decades now. This years class has updated content on new laws, new issues, and new resources, and is one of the most popular classes that the UAA has. The class will go over the basics of how to do tenant screening, the This class meets requirement of municipal good landlord programs. At the end of the class, participants will receive certificates for their cities.

Education Session #2

|

2:15 PM

Avoiding Fair Housing Complaints & Handling Assistance Animals *1 CE Credit

Current Issues in Fair Housing *1 CE Credit

Come attend this class and learn how to avoid the most common mistakes landlords make, how to avoid them, and how to handle tenant who present potential problems. It’s a sad irony that unintentional fair housing violations usually cost much more than intentional cases of discrimination—so come make sure that you and your staff are educated and can avoid potential pitfalls.

Kate Good

R-410A HVAC Maintenance Education

Education Session #1

|

10:15 AM

Fair Housing can be a difficult maze to navigate, with expensive The Price Is Always Right Kate Good penalties for doing it wrong. Come learn about the most pressing Fair When the price is not right for your property, you know it – but do Housing issues that are impacting Utah Landlords and Managers, how you know what to do about it? Find out at this entertaining mash-up you can protect yourself and your business from complaints, and what of game show and marketing gamesmanship . Once you determine the Fair Housing issues are going to be appearing on the horizon. right price, you have to sell it. Join game show Kate as she presents a solid 50 Ways to Market, Connect and Create a Customer strategy for maximizing your property’s income.

Kate is really EXCITED about this program. The secret to earning a (2:15-5:15) - 3 Hours long new customer is to first attract a new customer. Today we know the laws Newer air conditioning models are designed to be used with R-410A of attraction are everything but what does it mean in marketing? In this for reliable and more efficient operation. Because R-410A can absorb and release more heat than older systems, an air conditioning compressor can run cooler, reducing the risk of compressor burnout due to overheating.

However, R-410A also functions at a higher pressure, creating other issues. This class will go over everything you need to know about these new systems, and is designed to be a benefit to people of all skill levels.

Collections *1 CE Credit

IT’S WHO WE ARE. IT’S WHAT WE DO. (L) MORRIS HAINSWORTH (R) KENNETH HAINSWORTH

Since we were founded 50 years ago, there continues to be one constant in who we are and what we stand for.

The Hainsworth name.

Still family run. Still locally serviced. We are where you are. Since 1963.

Getting a judge to give you a sheet of paper saying that the tenant owes you money is one thing, actually getting the money from your current or former tenants is quite another. Come learn more about how to navigate this process at this class.

Education Session #3

|

4:00 PM

Handling Section 8 Tenants / Section 8 Reimbursements *1 CE Credit Section 8 housing continues to be one of the more misunderstood topics landlords have to deal with. This class will help you understand section 8, how to apply for a state reimbursement, and other HUD Programs.

Evictions *1 CE Credit

How long does it take to evict in Utah? What new rule changes to I need to be aware of as a manager? What are the best ways to avoid eviction process? This class, which is taught by an attorney, will give you insights into how to navigate evictions quickly and effectively.

Is your Rent too high or too low? *1 CE Credit

The market for rental properties in Utah is changing rapidly. How do you know how much you should charge for rent? And how do you actually go about raising your rent if you are below market value? This class will go over these topics and more.

Salt Lake City Recycling Program

An ordinance requiring multifamily properties with 8 units or more to provide recycling to tenants went into effect on January first, affecting approximately 20,000 housing units in Salt Lake City. Come find out more about how this will impact you and how you can comply with the new rules without breaking the bank.

WWW.HAINSWORTH.BIZ 1.800-526-0955

Rental Housing Journal Utah · January 2018

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Rental Housing Journal Utah

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

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Rental Housing Journal Utah · January 2018