April 2014 - Vol. 8 Issue 4
Rental Housing Journal Valley 2. MultiFamilyNW – Touch Points: Intentional Customer Interactions
5. Ernest F. Oriente – Become A Daily Learner…Today!
3. Dear Maintenance Men:
6. Shoptalk
4. Three MoreWays to Fill those Vacancies
7. The Mortgage Market is about to Get Smaller
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Do You New Rules for Raising Capital Appreciate for Real Estate Investments your Tenants? C By Darrel Dickson ApartmentsForSale.com
By Marc Courtenay
A
s property managers, we’re all aware of the multitude of issues that frequently arise with unreliable tenants. Late rental payments, disturbing the peace, illegal activity, and a general disregard for the property are all problems that typically arise in the property management industry. Many times, we’re so focused on dealing with the problems prevalent in the property management industry that we overlook the tenants that always pay on time; the tenants that take good care of their property, the tenants that are considerate of their neighbors. How do we make sure that those tenants are happy? That they feel appreciated? That they know that we want them to remain tenants as long as possible? Chances are those good tenants are feeling unappreciated right now; which means that they will have no reason to stay at your property if a better opportunity opens elsewhere. It’s so important to remember that a rental agreement is between two separate parties, and just like any of us, our tenants like to know that they’re appreciated. Here are just a few ways to show your tenants that they are appreciated: Be sure to take their concerns seriously. If your tenant calls to complain about loud music at midnight, or unauthorized vehicles in their parking spot, take prompt action and make sure that you advise them of both the Continued on page 4 Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007
rowd funding rules for real estate changed recently and with the available technology the landscape for raising funds for real estate investments in the future will be changed. The Jobs act created an entirely new exemption from registration of the securities act which will permit companies to publicly offer and sell up to a million dollars in securities over 12 months without needing to register. There are restrictions and individual investors annual income or net worth less than one hundred thousand dollars may invest no more than the greater of $2000 or 5% of his or her annual income or net worth. If his or her income or net worth is higher than $100,000 he or she may invest no more than 10% of annual income or net worth and never more than hundred thousand dollars. A new type of broker known as a funnel portal must be used to facilitate the sale. The funnel portal will be required to register with the SEC and other organizations and to confirm the investors satisfy the investment requirements. Companies that use the crowd funding process will have to file with the SEC. Certain information of the operating companies involved in raising funds will need to be provided to the SEC: such as the business plan description, company’s capital structure, and intended use of the proceeds, audited financial statements will be required for offerings of more than $500,000. The Offering Company will need to file ongoing reports with the SEC based on rules yet to be determined by the SEC Crowd funding is an interesting
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new opportunity for syndicators to raise capital for real estate investments. Real estate operators will be able to raise capital online from groups of investors in an automated way Real estate investments typically have been illiquid. Investors have plenty of opportunities to invest in stocks and bonds but when it comes to actually access private real estate deals the process in the past has been difficult for private investors to participate. Crowd funding will change all of that. Crowd funding eliminates the barriers that are typically associated with real estate investing such as having the time and expertise, and knowledge to invest can make investing in real estate a challenge. But pulling your money together through crowd funding you can access investment opportunities that otherwise would not be available to a busy professional to manage a property by themselves. You can have others with the knowledge and
experience and the time to manage your real estate investments. In the near future, I foresee that you have an opportunity to browse different investments from your computer looking at opportunities in different metropolitan markets throughout the country. Real estate is becoming more efficient with sites like Zillow and others providing incredible amounts of data to real estate investors. You are going to see more efficiency in the private real estate investment market. Because of the change in security laws more investors are going to have crowd funding opportunities and it is going to open up opportunities for not only accredited investors but also with the jobs act crowd funding rules will see retail investors participating in the future. Before September 23, 2013 it was illegal for real estate investment operators to publicly advertise that the private company was seeking funding. The new rule change allowed Continued on page 3
Advertise in Rental Housing Journal VALLEY Circulated to over 6,000 Apartment owners, On-site, and Maintenance personnel monthly.
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Pam McKenna Multifamily NW President
Touch Points: Intentional Customer Interactions
By Pam McKenna Do you ever wonder what your customer really wants? Do you have a plan for finding out, or does it happen by accident or not at all? The more you engage with customers the clearer things become and the easier it is to determine what you should be doing. So, how often do you engage with the customer and are you intentional with your interactions? Setting up a touch point system will help you create a series of intentional interactions with your residents which will help you to better understand their expectations. This can be accomplished utilizing the outlook calendar and will involve the entire team. Start it off with a move in orientation led by the leasing team using the opportunity to educate your residents on what your community has to offer. Include where to
find the nearest trash and recycling areas, how to use all the appliances in the apartment and any other specific information that would start them out on a good note. The next touch point will be within 24 hours of move in. Use this as an opportunity for the maintenance team to get involved. Include a move in gift (ie; picture hangers, plunger, laundry detergent) delivered to the resident. Ask the resident if everything in the apartment is working properly. Be prepared to respond immediately and make repairs right there on the spot. One week later have the manager call the resident to welcome them to the community, ask how things are going in their new home and if there is anything they need to make their experience better. Confirm they are clear on the rent payment process and have all the information they need to get set up for auto payments. Provide them with information on all
the local businesses (ie: dry cleaning, pet services, restaurants, car wash). One month after move in send your resident a personalized hand written card or emailed video card from the entire team to let them know how much you appreciate them living at your community. At the 45 day mark invite them to a resident event that includes opportunities to network with other residents and start to build a sense of community. Hold these events once every three months to maintain comfort levels and to ensure consistency. Additionally, there are third party companies you can engage to send out customer surveys as an additional touch point. These can be sent right after the move in and after every maintenance request is completed. The survey allows you to listen to customer feedback but listen carefully and respond fast. If you respond to their comments they will continue to give you more feedback because
they know you are listening and that you care. The conventional resident experience typically includes focused attention during the sales process but once they are handed their keys they are on their own unless something goes wrong. Then forty five days before the lease ends we slap a note on their door with a rent increase. If you want to want to be in touch with what your residents really want, start by setting up intentional interactions. Don’t wait until it’s too late. With today’s busy schedules we need to plan ahead and be more purposeful to stay in touch. The results will provide an improved customer experience, a stronger sense of community and reduce resident turnover. In the end this shows your customer they are truly valued.
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Multifamily NW
Events Calendar
Join us on Thursday, May 15th at the Portland Art Museum as we honor the “Best of the Best” in the Multifamily Industry with our prestigious ACE Awards!
April 1, 2014 8:00 AM - 12:00 PM Understanding Maintenance for Managers (Portland, OR)
April 16, 2014 7:30 AM - 9:00 AM Spring 2014 Apartment Report Breakfast (Portland, OR)
April 8, 2014 8:30 AM - 12:30 PM Tax Credit Housing Class Part I (Portland, OR)
April 17, 2014 10:00 AM - 12:00 PM Washington County Section 8 Voucher Forums (Hillsboro, OR)
9:00 AM - 11:00 AM 10 Common Fair Housing Mistakes to Avoid (Vancouver, WA)
April 18, 2014 9:00 AM - 3:00 PM NALP: Leasing Demonstration and Resolving Objections (Portland, OR)
April 9, 2014 8:30 AM - 12:30 PM Tax Credit Housing Class Part II (Portland, OR) 2:00 PM - 4:00 PM Section 8 Procedures Class (Portland, OR)
Individual tickets are $85 each or tables of 10 are available for $800. Contact Kristen Davies at kristen@multifamilynw.org or 800-632-3007 for more information.
April 10, 2014 7:00 AM - 4:00 PM EPA Lead-Based Paint Renovation Certification (Portland, OR) April 11, 2014 12:00 PM - 1:00 PM It's the Law Lunch Time Series: Domestic Violence - Making Sense In Challenging Situations (Portland, OR) April 14, 2014 8:00 AM - 12:00 PM Mold Awareness & Remediation (Portland, OR) April 15, 2014 8:00 AM - 5:00 PM CAMT: Electrical Repair and Maintenance (Portland, OR) April 15, 2014 9:00 AM - 5:00 PM CAM: Human Resource Management Part I & II (Portland, OR)
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April 21, 2014 9:00 AM - 5:00 PM CAM: Marketing (Portland, OR) April 22, 2014 8:00 AM - 5:00 PM CAMT: Electrical Repair and Maintenance, Part II (Portland, OR) 9:00 AM - 1:00 PM CAM: Human Resource Management Part I & II (Portland, OR) April 23, 2014 1:00 PM - 3:00 PM Roofing Class (Portland, OR) 6:00 PM - 8:00 PM Washington County Section 8 Voucher Forum (Hillsboro, OR) April 25, 2014 9:00 AM - 1:00 PM New Hire Class (Portland, OR) April 29, 2014 9:00 AM - 2:00 PM CAM: Research, Analysis and Evaluation (Portland, OR)
Rental Housing March Valley • April 2014
RENTAL HOUSING JOURNAL VALLEY
Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez
Dear Maintenance Men: How can I add more storage to my utilitarian type bathrooms? The residents complain that they need to store their toilet paper in the hallway! Please list a few suggestions on what to do? Robert Dear Robert: It does seem bathrooms are sometimes designed as an afterthought. Sink, toilet, bath and that is it. A modern bathroom will take into consideration the need for storage, electrical devises, personal hygiene etc. The first item that comes to mind is installing a bath sink cabinet. An old style cabinet might only have a set of doors under the sink. We find this is not adequate and a cabinet should have drawers along with access to under the sink. The drawers can store hair dryers, and all manner of personal bath items. A unique system we like utilizes the space between the studs in the wall. Cabinet doors or mirrors can be used to cover storage in the walls. The wall storage is perfect for toilet paper, rolled up towels, tooth brushes, and most other small items. Install multiple towel racks on the back of the bathroom door for additional towel storage. The space above the toilet can easily accommodate an overhead cabinet for larger items. Reversing the swing of the bathroom door from inward to outward will greatly increase the usable room and make the bathroom appear larger. Dear Maintenance Men: My building is clad in aluminum sid-
ing and it is looking very dull. The siding has its original finish and I was wondering if it can be painted? If so what is the procedure to insure a long lasting finish? Joann Dear Joann: Painting aluminum siding is not a problem. Good prep work will be time well spent for a long lasting finish. The biggest issue with old aluminum siding is the chalking of the surface. To check for chalking, rub the siding with your hand and if your hand picks up any color, that is chalking. Paint will not stick to the chalk. Check at any home improvement center for aluminum siding cleaner or use TSP Cleaner and scrub the siding using a soap bucket and a brush. Don’t forget to remove any mold or mildew as well. An alternative is to use a pressure washer to clean the siding. The pressure washer is much faster, but be careful about water intrusion. Be sure to rinse the siding with clear water to remove any cleaning chemicals before painting. We recommend using a good quality oil based primer if the siding is bare aluminum. (Acrylic primers may react with bare aluminum over time.) After priming or if the siding has been previously painted, top coat with an acrylic paint and only primer the bald spots. Use a satin finish for best results.
Sanford Dear Sanford: Baby Boomers are 25 percent of the population and the first of the Boomers turned 65 in 2011 and the last will turn 65 in 2029. We heard on the radio the other day that 85 is now the new 75 and so on down the line. That is a large healthy aging group! They are not going to go quietly into a nursing home which means as apartment owners & managers; we need to prepare for this group. Aging in place means bigger showers with wider doors, taller toilets, grab bars and bath sinks that will accommodate wheelchairs. This does not mean turning our units into institutions; there are many stylish accommodations to fit a number of needs. For example a grab bar capable of supporting 250 pounds does not need to look like it came out of a hospital. Grab bars come in a variety colors and designs. Many will double as towel bars and be virtually invisible to their primary purpose unless needed. A larger shower stall also will look opulent and practical at the same time. Replace old two handle faucets in the kitchen and bathroom for single handle or touch faucets. Consider installing anti-skid flooring in the bathroom and tub/shower
area. A few other items might be contrasting color edging for the counter tops along with rounded edge and corners. Replace all door knobs with lever handles for ease of use. This is a small sample of the things you can do to stay competitive in a growing market while not making changes that younger generations would objectionable.
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QUESTIONS? QUESTIONS? QUESTIONS? We need more Maintenance Questions!!! To see your maintenance question in the “Dear Maintenance Men:” column, please send submission to: Questions@ BuffaloMaintenance.com Please “Like” us on Facebook.com/BuffaloMaint nance Bio: Please call: Buffalo Maintenance, Inc for maintenance work or consultation. JLE Property Management, Inc for management service or consultation Frankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01460075 Certified Renovation Company Websites: www.BuffaloMaintenance. com & www.ContactJLE.com www.Facebook.com/BuffaloMaintenance
Dear Maintenance Men: I hear the term “Aging in Place” and wondered as an apartment owner, what I could do to market to this growing segment of our population? What should I do to make my property more “Aging in Place” friendly?
New Rules ...continued from front page operators throughout their fundraising efforts to market to persons on Facebook or twitter or other social media outlets. Different real estate investment websites will be developed to raise money on line in the near future. It
Rental Housing Journal Valley • April 2014
will be fun to watch which companies become the leaders in this new frontier of raising capital for real estate investments.
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Three MoreWays to Fill those Vacancies By: by Marc Courtenay PropertyManager.com a Service of AppFolio
H
ere are three ideas from my upcoming article series titled “50 Ways to Fill Your Vacancies”. Like you, I’m fired up about the idea of having as many marketing tools as possible to manage properties effectively. As a property owner and/or manager, you may already have many successful ways to quickly fill your vacancies with well-qualified new residents. My hope is that I can add a long list of intuitive and counter-intuitive suggestions that have worked and will keep on working. So here are three more suggestions that can insure that the rental income stream keeps flowing to your clients and yourself. 1. Go to the restaurants you frequent the most. Ask the owner or manager to allow you to display a tastefully crafted “take one” box at the check-out counter or hostess table. Make sure it clearly displays the message that a gift certificate for that
restaurant will be given to the individual who takes one of the special display cards and gives it to a prospect who becomes a resident. A variation of this is to tell the restaurant owner, manager or hostess that if someone rents one of your units, you’ll buy a gift certificate from the restaurant and give it to a new patron who has never been to their restaurant. It will generate a fresh batch of regular customer for the restaurant and a repetitive source of referrals to you. You’ll be amazed how many restaurants will love the idea as they’re always looking for new ways to increase their clientel. 2. It may seem old-fashioned in this age of digital, mobile media, but creating a full-page, colorful, glossy hand-out that lists all of the benefits, accoutrements, and features of your available rental still works. Make sure you show some photos of how nice the vacant unit looks, and when you take the photo “stage it” with a few perky pieces of furniture or wall furnishings. Continued on page 6
Appreciate ...continued from front page action and the outcome; don’t make them complain more than once about the same issue. Fulfill the promises that you make. If you promise a tenant a new dishwasher or new carpeting, be sure to fulfill that promise. Don’t make them ask you about it. Just schedule a time and do it. Respond promptly to any and all maintenance requests. If a tenant is responsible and takes good care of the property, they shouldn’t have to wait three months to have their stove repaired. Bend the rules – just a little. Should you wave a late fee – due to a mix-up with the post office for a reliable tenant that is never late with their rent? While opinions vary, remember that a good tenant is like a good customer, and it may be appropriate to bend
the rules now and then. That’s not discrimination; that’s good business sense. Give them a gift. A gift card to a local store at lease renewal time, or a card on their birthday will make a tenant feel appreciated, and build loyalty in the process. There are many ways to make a good tenant feel appreciated, with tenant stability and timely rent payments the ultimate payoff. What more could a property manager want?
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Rental Housing March Valley • April 2014
RENTAL HOUSING JOURNAL VALLEY
Become A Daily Learner…Today! by Ernest F. Oriente, The Coach {Article #213…since 1995}
O
ur economy and your success in the property management industry is based on knowledge. Gone are the days when you could graduate from high school or college and never again pick up a textbook or attend another class. Ready or not, your lifetime of learning has already begun, no matter how reluctant or scared you might be. In addition, sophisticated technology, business acquisitions, new products and significant regional or national competitors will continue to require your full attention. Ready to become a daily learner? Let’s get started! Staying current with your profession: Begin your learning journey by subscribing and reading the industry publications, E-newsletters, blogs and LinkedIn groups that serve the property management industry, such as your local apartment association magazine, UNITS Magazine, The Journal of Property Management and Multi-Housing News…just to name a few. These are great waysfor keeping you in touch with local, state, regional and national trends. Next, consider investing the time and money to upgrade your profes-
Rental Housing Journal Valley • April 2014
sional certifications as this says to your peers and colleagues that you are serious about your property management career. In addition, research the one day seminars delivered by Career Track {800-780-8476} or SkillPath {800-873-7545}, as their programs can advance your specific business skills in a short amount of time and with minimal investment. Lastly, search the Internet for industry websites such as MultifamilyBiz [ http://www.multifamilybiz.com ] that serve the property management industry and register for their E-mail newsletters, read their industry news or participate in one of their live and dynamic webcasts, to experience an engaging form of distance learning. Tip From The Coach: Start each year by reserving the property management seminars and trade show workshops you will be attending. Then, schedule your company meetings and training that is planned and budgeted. Now, look at your calendar and reserve the time and dates you are going to schedule for the professional and personal learning that will best serve you. More specifically, consider budget-
ing $50-$150 per month for your continued education. This small investment today will pay large dividends in the near and distant future…The Coach says so! Using technology: Technology has created many new time saving, cost-efficient ways to enhance our professional and personal lives. But of course, you need to learn how to best maximize your technology tools to receive the highest return on your learning investment. Let’s start with the basics. Learn and master the software used by your property management company. Learn the shortcuts for creating professional looking correspondence, presentations or proposals. Understand the power techniques for using a spreadsheet or preparing your property budgets. Research social media websites and related software as powerful marketing engines. Tip From The Coach: Start with what you already know about technology tools and take it one step further. Not 10 or 100 steps further…just one step at a time. If you push yourself too far or too fast,
you might be in a situation where you will not have the resources to succeed. Instead, take one step at a time, master your new skill, then take another step. For many, hiring a private business trainer or coach, can rapidly accelerate your learning curve around technology. For others, just reading two or three pages of their software user manual each day, is enough to gain incremental knowledge with technology tools. Helping your team to learn: In addition to your daily learning, it will be equally important that your property management team continues to grow and learn at a comfortable pace. Property management companies around the world are finding a direct connection between learning and company performance. In fact, many companies are now measuring both performance goals and learning goals on an individual basis. These learning goals are focused on areas such as: resident satisfaction, increased asset performance, maximizing technology and team-building skills. Tip From The Coach: When helping your team with their
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T
he value of setting up appointments from telephone inquiries has been clearly established. Yet, it seems that the number of callers being converted into visitors is not always producing a high percentage of rentals. A recent question submitted by a manager of a large apartment community may shed some light on this subject:
up giving a tour when the client arrives? I manage and lease out of a busy office and we all work together, VALLEY, METRO, ARIZONA but sometimes I wonder if we would have a higher closing ratio if each of us helped our own clients. What do you think?
Salsbury Industries
I think there is a lot to be said for the environment of “teamwork” that Jan, Mar, May, Jul, Sep, Nov, you have created. Those managers Q: I know it’s important to set ap- who work side by side with their pointments from my phone contacts, leasing staffs, will keep them mo-
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but does it really matter who ends
ON-SITE
apartments. However, in working too closely as a team when it comes to leasing, some of the “personalAPT. NEWS ized” service can be lost. If a prospective renter is helped by someone else when they arrive for an appointment, it can give them the impression that their initial contact wasn’t genuinely interested in helping them. Also, any “rapport” that was personally created by you, or another member of your staff over the phone, is lost if they have to “start from scratch” with someone else. - Not to mention the inconvenience to the client if they have to repeat their needs and preferences all over again to someone else. Many times it’s the personality, sales skills and knowledge of the employee on the phone that “sells” the client on making an appointment in the first place. Once a relationship is established in the initial phone contact, the prospective renter is expecting to meet with the same person when they arrive at the community. It can be a real let down to learn that the employee they connected with from the phone contact is unavailable. Worse yet, no one else in the office even knew they were coming in. For leasing consultants whose primary role is renting apartments, careful planning and scheduling can make it possible to keep most of the appointments they set. For managers and other office staff who end up
tivated and excited about renting
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answering the phone, but who are not available to keep appointments, it might be best to resist answering the phone on the days you are unavailable. This will give your leasing staff the ultimate opportunity to sell and close the deal. Remember: Working as a team means some players will spend time “on the bench” while other members of the team are out on the field. If you assemble your team before the day begins, then you can decide which employees are best equipped and available to lease apartments that day. With your strongest players on the front line and everyone “passing the ball” (clients) to them, you will score more rentals every time! If you have a question or concern that you would like to see addressed next month, please ASK THE SECRET SHOPPER by making contact via e-mail. Your questions, comments and suggestions are ALWAYS welcome! ASK THE SECRET SHOPPER
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Provided by: SHOPTALK SERVICE EVALUATIONS Phone: 425-424-8870 E-mail: joyce@shoptalkservice.com Web site: www.shoptalkservice.com Copyright Shoptalk Service Evaluations
Fill Vacancies ...continued from page 4 bw
List any extra features like a new dishwasher or free Wi-Fi and provide information about the local area, bus routes, schools, laundry and conveniently popular shopping venue. You’ll be providing a valuable service that few property managers take the time to offer. Let your prospects take your hand-out and tell them to call you if they have any questions. Ask for their contact info so you can follow up. 3. Ask your current residents, clients and “happy campers” for a glowing testimonial of what it’s like to be a resident in one of your wellmaintained and thoughtfully managed buildings. Let your prospects know ahead of time how much current and past residents appreciated your services. Ask for as many testimonials as possible, and use them to attract more owner-clients as well as prospective renters to fill your vacancies.
There you have three more ideas on how to fill your vacancies as fast as possible. Keep in mind that if you haven’t tried these ideas lately, you can’t objectively know why they work or how they work. These ideas derive from my property manager colleagues and my own experiences. Together we have many decades of management and marketing expertise and that’s why I literally have at least 50 of these tried and tested tools. They’re based on the principles that if you’re willing to do what few property managers are willing to do, you’ll have the kind of success that few will enjoy and experience. Also, your clients and residents don’t really care how much you know until they know how much you care. So get busy and show them!
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Rental Housing March Valley • April 2014