Valley (Eugene, Corvallis, Salem) Rental Housing Journal July 2014 by Professional Publishing, Inc

July 2014 - Vol. 8 Issue 7

Rental Housing Journal Valley

2. The Coach – Can Your Rental Center Walls…Sell?

4. Multifamily NW – “I Just Do Maintenance”

3. Dear Maintenance Men:

6. Shoptalk

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Where’s the Inventory? By Gabe Johansen, Apartment Broker

s the economy slowly improves and banks get back in the business of lending there has been a steady increase of incoming phone calls being directed to my office and it’s not the institutional investors who have composed the buying majority of multifamily transactions throughout the recession who are calling. Rather, it is the smaller investors who have been sitting on the sidelines for a while who are once again interested in getting in the game. This is great news for many reasons, but it does pose one fairly large challenge… in today’s market finding that perfect apartment acquisition may prove to be more difficult than it sounds. Do you remember the famous Wendy’s hamburger commercial from the 1980’s that, for what seemed like the whole decade, kept asking us where the beef was? Almost thirty years later the question on many of our industry’s minds is… where’s the inventory? A quick search on LoopNet, CoStar, MLS or any other property search engine will paint you a picture of a pretty sparse shelf. Most investors and apartment brokers are currently abuzz about how few apartment projects are listed for sale. Where there was once several pages of listings in many of the major markets in Oregon, now you will find one page or two at most in some cases. Contrary to the supply, demand for multifamily real estate is very high. Cap rates continue to compress and several Oregon markets are seeing multifamily properties reaching pre-crash level rates. Most apartment projects have already recaptured a large percentage of the value Continued on page 2 Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007

Understanding Oregon Medical Marijuana Dispensary Tenants By Cliff Hockley and Special Contributors Jacob Zahniser and Chris Walters

building owner asked to lease to a marijuana dispensary is faced with a host of complex legal considerations unique to marijuana dispensary tenants. This arises from the inconsistent state of play between federal, state, and local regulators: • Marijuana remains a controlled substance under federal law. • Oregon law permits dispensaries, subject to licensing and other requirements. • Oregon cities have the right to prohibit dispensaries within their jurisdiction. This article summarizes the key considerations a building owner must keep in mind when thinking about leasing to a dispensary. The Legal Morass Federal Law The sale of medicinal marijuana is illegal under federal law and marijuana remains a federally controlled substance. As long as marijuana remains a federally controlled substance, there will always be a risk that federal law enforcement will shut down a dispensary and potentially seize the premises. The U.S. Department of Justice, however, has stated that federal prosecution will occur only when the sale of medicinal marijuana touches on one of the following: 1. The distribution of marijuana to minors 2. Revenue from the sale of marijuana goes to support criminal organizations, gangs, and cartels 3. The diversion of marijuana from states where it is legal in some form under state law to other states where it is illegal

Current Resident or

PRSRT STD US Postage PAID Portland, OR Permit #5460

4. State-authorized marijuana activities being used as a cover for trafficking other illegal drugs or engaging in other illegal activities 5. The use of firearms or violence in the cultivation and distribution of marijuana 6. The exacerbation of other adverse public health consequences associated with marijuana use such as driving under the influence 7. Growing marijuana on public lands and the attendant public safety and environmental dangers posed by marijuana production on public lands 8. Marijuana possession or use on federal property Civil Forfeiture If federal law enforcement steps in to shut down the dispensary, it may also seek to take the premise through civil forfeiture laws. Under federal and state civil forfeiture law, the government has the authority to seize property used to commit a crime, even if the owner of the property is not charged with, or convicted of, a crime. As long as the property itself is linked to the criminal activity, it may be seized. Typically, the government first seizes the property and then builds its case as to whether the property should be forfeit. This can take months or years before the forfeiture is final, during which time the

building owner is deprived of any revenue from the property. Consequently, while the threat of federal law enforcement is mitigated when a dispensary is operated in compliance with state law, the risk associated with federal law enforcement remains very real (and very high), especially considering that federal enforcement policy may change with a new administration. State Law A building owner would be wise to include terms in the lease that mandate the tenant to provide the owner with documentation of compliance with all state requirements. For example, the premises cannot be within 1000 feet of a school or another dispensary, it must be equipped with an alarm system and video monitoring, and the dispensary tenant must pass a criminal background check. In order to know if the dispensary tenant is in compliance, the building owner should be familiar with the state’s regulations governing dispensaries. Regular property inspections will show tenants that they cannot deviate from their obligations to the law and the lease agreement. Local Law Under Oregon law, any Oregon city may pass a moratorium on dispensaries until May 2015. At least 70 cities across Oregon have passed Continued on page 7

Advertise in Rental Housing Journal VALLEY Circulated to over 6,000 Apartment owners, On-site, and Maintenance personnel monthly.

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RENTAL HOUSING JOURNAL VALLEY

Can Your Rental Center Walls…Sell? by Ernest F. Oriente, The Coach

f first impressions are formed by a new resident within 10-12 seconds of meeting those on your leasing teams, what impressions do the walls in your office make? Can your walls sell? Can your walls motivate and inspire you and your leasing teams? You bet they can! This article will show you three easy steps to make sure your walls are selling—365 days a year. Inspiring your residents: First, recognize that every time a resident comes into the leasing office of the properties you manage, your leasing teams have a golden opportunity to sell and re-sell the wonderful lifestyle your apartment communities provide. Next, have your leasing teams determine how much wall space is available in their leasing offices and ask them to draft a plan for the types of information they want each resident to see. Here are some strategic items your leasing teams can place on their walls: pictures of their residents having fun at a recent property activity, letters of appreciation from current residents, a mission statement from your company, your service guarantee or promise, a current resident newsletter, a reminder about resident referrals, dates for an upcoming resident party or event,

sample floorplans, special awards or training certifications, your Facebook page, and a photo of your leasing and maintenance team. Lastly, have your leasing teams professionally frame each of the items they will be displaying on the walls of their leasing offices, as the quality of the framing will make a subconscious quality impression on your residents and future residents. Tip From The Coach: Now that your leasing offices are ready to sell to your current residents, can your leasing teams use this sales tool for future residents as well? You bet! At the start of each property tour, have your leasing teams begin by showing each future resident the fun items displayed on their walls…especially the pictures of current residents having great fun. When the walls in your leasing offices sell, your leasing experts will have higher closing ratios and more team success! Motivating your team: Once your leasing teams have finished setting up the selling walls in their leasing offices, it’s time to prepare the walls that will motivate them. Ask your leasing teams to locate a wall or two in their leasing offices that is not usually seen by either current residents or future residents. Next,

discuss with your leasing teams the key numbers, corporate information or trends they would like to see on a regular basis. Here are some ideas that might be helpful to display: weekly/monthly leasing goals, budget performance on a monthly and year-to-date basis, maintenance requests, a follow-up system for tracking hot prospective residents, bonus programs, a calendar to plan future resident events or activities, a place to share or post new ideas, company awards and collection reports. Lastly, ask your leasing teams to find a creative way to display this wonderful information so they will have a pride of ownership attached to this special area. Tip From The Coach: Many of our property management clients ask their resident managers to hold a weekly meeting in the area where this information on their walls can be easily referenced. Consistently referencing this information on a weekly basis will show your leasing teams that the information displayed is critical to the success and profitability of their apartment community. Encouraging yourself: As the executive or owner of your property management company, your walls must also sell. Certainly, many of

the ideas mentioned above, would be valuable to have on your walls. Some specialized measurements to place on your walls might include: occupancy trends, employee turnover, ROI performance, quarterly graphs recapping this quarter…compared to the same quarter last year, team rankings and industry statistics that will impact your properties. Tip From The Coach: Remember, whatever you place on the walls in your executive office will send a strong message to your company about the key areas of your business. So choose each item carefully, as every person who comes into your office will survey your walls and ask you questions about what they see or read. In addition, you might consider giving new employees a tour of your office walls on their first day with your property management company. This will allow them an opportunity to see and read firsthand, exactly what is most important to you and those on your executive teams Want to hear more about this important topic or ask some additional questions about how to create walls that sell? Send an E-mail to ernest@ powerhour.com and The Coach will Continued on page 5

Inventory ...continued from front page that was lost during the Great Recession. So if demand is high, cap rates are low and values are approaching pre-crash levels… why don’t more apartment owners want to sell? The apartment market is currently the undisputed champ of the investment world. Vacancy is very low in most Oregon markets and rents are on the rise creating a healthy return for landlords. Another factor to consider is lending. Last year the Commercial MBS market doubled and apartment lending interest rates have remained very close to their historic lows. Many apartment owners have opted to refinance their properties to take advantage of these low rates and further increase their cash flows. This leaves many multifamily property owners asking this question… “If I already own the best investment available to me in the marketplace today, what would I replace it with if I sold?” Many investors would love to increase their unit count or move their investment dollars to a different area for various reasons. As landlords contemplate selling they also understand that

unless they are able to identify an exchange property and complete a successful 1031 tax-deferred exchange, Uncle Sam is going to expect a sizeable check come tax time. With inventory being as low as it is, a lot of investors have decided it is safer to hold on to what they have rather than risk footing a large tax bill. Chasing a bigger or better opportunity just isn’t worth the risk for some and without a larger selection of available inventory it is just too hard for them to get a good comfort level around selecting a potential exchange property. There are however, owners out there who are interested in cashing out and moving away from the multifamily market entirely or becoming the bank by offering seller financing. These are the individuals who will ultimately begin filling up the shelves again and taking advantage of a seller’s market. If that happens to be you, grab a hamburger and call your apartment broker today. SMI Commercial Real Estate, LLC

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Rental Housing March Valley • July 2014

RENTAL HOUSING JOURNAL VALLEY

Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez

Dear Maintenance Men: Mildew is driving me crazy. We have a property with interior bathrooms and they are constantly developing mildew on the walls and ceiling. We have cleaned, painted and cleaned out the duct work for the vent fan and the problem does not go away. How can I solve this problem? William Dear William: A number of things may be at work here. Unit overcrowding is generally the main reason for moisture & mildew build-up in an apartment unit. Because of the overcrowding, the residents, take more showers and baths, throughout the day and evening. Often to hide the excess people in the unit, the resident will keep all the window covers closed and the widows shut, effectively keeping the moisture from escaping. Add a windowless bathroom into the mix and the problem is compounded. Mechanically, we suggest you inspect the vent fans in the bathrooms. Make sure they are not clogged with lint or dust. If the fan is operating properly, check the CFM or Cubic Feet per minute of air movement. The minimum number should be 50 CFM. If the bathroom is getting more than the average amount of use, you may want to replace the existing fan with one that has a higher CFM rating. We recommend using at least a 120-CFM fan. Equally important, many bathrooms have two wall switches; one for the light and the other for the fan. If this is the case, we recommend combining the two switches into one. That way when the resident switches on the light the fan will come on automatically. We find most residents will not turn on the fan if it has its own switch. Lastly of course, is to get the resident to open a few windows and let some fresh air in.

our building have accumulated a fair amount of chewing gum residue. We are looking for a good method to remove the gum and the gum deposit. Once clean, is there any surface treatment to prevent gum from sticking? Ryan Dear Ryan: There are a number of ways to remove gum from a brick or concrete sidewalks. Spray the gum with an aerosol freezing agent or place dry ice on the gum for a few minutes. The gum will become very brittle and should be easier to pry off the surface with a putty knife or scraper. It may take a few tries to remove all the gum. If there is any gum remaining, spray WD-40 or vinegar and let it soak to dissolve the remaining gum. Use a scraper or stiff brush to remove the rest of the gum. After all the gum is removed, use a power sprayer to deep clean and remove any gum residue. If you still have discoloration on the concrete, use muriatic acid & water mixture to bleach the concrete. To keep the gum from sticking to the concrete or brick sidewalks in the first place; use a waterproofing sealer on the sidewalk to reduce the likelihood of the gum sticking to the surface.

The pipe is extremely flexible and easy to install. Pros and cons of using PEX: Pros: 1: Versatile and user friendly, can be bent around corners & snaked through walls. 2: Minimum of connections needed to complete a pipe run. (Less chance of a leak) 3: Cold weather burst resistant. 4: PEX pipe is less expensive than copper pipe Cons: 1: Cannot be used outside or in sunlight. 2: Not recycle friendly 3: Installation tools can be expensive. 4: Not handyman friendly Pros and cons of using copper pipe: Pro: 1: Long lasting, easy to use and install 2: Resists corrosion 3: Environmentally friendly, i.e.: recyclable. 4: Safe for exterior use. Cons: 1: Expensive to buy. 2: Can burst in extreme cold weather if not properly winterized. 3: More connections and elbows needed to complete a pipe run.

Dear Maintenance Men: I keep hearing about PEX tubing as an alternative to copper tubing when it comes to re-piping my rental units. What is the difference between PEX and copper tubing and why use one over the other? What are the pros and cons? Aldridge

Before making any decisions about using PEX piping, check with your local building department to ensure it is allowed in your area. However, if it were our building, we would use copper pipe. Copper is straight forward to install, no special tools are needed and any competent handyperson can fix a leak with simple tools and a torch. Please send us your 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/BuffaloMaintenance 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

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ON-SITE-NW SEATTLE

Dear Aldridge: First let’s define what PEX tubVALLEY, METRO, ARIZONA ing is. PEX is a cross-linked polyethylene pipe. (It looks and feels like plastic pipe.) The PEX pipe is resistant to extreme temperatures, stress, pressure and chemicals attacks such as acids & alkalies. This makes PEX pipe suitable for both hot and cold Feb, Apr, Jun, Aug, Oct, Dec water systems and can be used in below freezing condition and is suitDear Maintenance Men: Over the years, the sidewalks around able up to 200 degrees Fahrenheit.

APT. NEWS

Salsbury Industries

1010 East 62nd Street, Los Angeles, CA 90001-1598 Phone: 1-800-624-5269 • Fax: 1-800-624-5299 Rental Housing Journal Valley • July 2014

RENTAL HOUSING JOURNAL VALLEY Pam McKenna Multifamily NW President

By Pam McKenna “I just do maintenance.” How many times have heard this statement out at a property? The phrase seems to imply that this role is insignificant or less important than others. Through our resident surveys, I’ve seen consistent feedback on personnel demonstrating the importance the maintenance team plays. Through reviewing financial reports I’ve seen operations literally turn around as a result of an organized, diligent, hardworking maintenance team member. Clearly this is a pivotal role in property management. So what have you done to invest in this critical piece of your operations? Through strategic training, development and oversight, you will experience a higher level of performance and improved operations. The best place to start is with your onsite manager. If your manager and your maintenance team do not speak

16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 503-213-1281, 503-213-1288 Fax www.multifamilynw.org

“I Just Do Maintenance” the same language it can often cause frustration and create unnecessary work for the team. Get your manager signed up for a maintenance class in order to understand the basics of the maintenance function. One of the best experiences I have had in my career was spending the day working alongside the maintenance team. It allowed me to understand the demands of the day for the maintenance crew and highlighted ways that the office team could improve on communication. Let’s just say I had a lot more respect for what they do after walking a day in their shoes. The more knowledge the management team has of this critical function the more effective their management will be over the maintenance role. Budget knowledge is the number one weakness. We don’t want to give our maintenance managers the budget, but when they are over budget they are the first to get reprimanded for spending too much. If you prepare your team with budget

knowledge they will understand the goals for the year ahead and can find ways to not only meet budget but often come up with creative ways to reduce expenses resulting in savings. Time management for the maintenance team includes efficiency in ordering. On-line ordering will cut down on hours spent thumbing through a catalog. Create a saved favorites list that only requires you to enter the quantity of items and with a few clicks the order is submitted. Planning ahead will make it easier to cut down on driving to the local hardware store for those last minute items needed to wrap up a turn. It is more effective to order supplies once a week through organized scheduling rather than putting in an order every other day. Communication between the maintenance team and the management team is critical. It begins with holding regular team meetings to ensure the team is on the same page. Was a move-in bumped up to an

earlier date? Did someone cancel their notice and they are not moving out? Did a resident complain about a work order not getting handled correctly? Team meetings can be an excellent way to coordinate and efficiently work through changes and challenges. How often do the manager and maintenance walk the property together? This should be done weekly so that both sets of eyes are on the community and expectations are reviewed and discussed during that walk. The team should set goals for each week, month and year and track them in order to appreciate their progress. Establish standards regarding the use of radios to ensure all communications are professional and appropriate. Train the management team on how to better communicate when preparing a maintenance request. There are questions that when asked can clarify the specifics of the request. An example might be clarifying a specific room Continued on page 7

Multifamily NW

Events Calendar July 8, 2014 9:00 AM - 11:00 AM SOLD OUT Fair Housing for Maintenance (Portland, OR) July 10, 2014 1:00 AM - 1:00 AM PDX Charity Golf Tournament (Portland, OR) July 11, 2014 12:00 PM - 1:00 PM It's the Law Lunch Time Series: Dealing With Non-Tenants Unauthorized Occupants, Trespassers & Ejectments (Portland, OR) July 15, 2014 7:00 AM - 4:00 PM SOLD OUT EPA LeadBased Paint Renovation Certification (Portland, OR) July 16, 2014 9:00 AM - 11:00 AM NALP: Rental Policies and Procedures (Portland, OR) July 22, 2014 9:00 AM - 1:00 PM New Hire Training (Portland, OR) July 24, 2014 8:00 AM - 5:00 PM CAMT: Appliance Repair Part I (Portland, OR)

Golf spots are available for $100 each and sponsorships start at $125! Sign up today by visiting multifamilynw.org, calling 800-632-3007 or emailing Kristen Davies at kristen@multifamilynw.org.

July 31, 2014 8:00 AM - 5:00 PM CAMT: Appliance Repair Part II (Portland, OR)

August 5, 2014 1:00 PM - 5:00 PM OR Landlord/Tenant Law Part 1 (Portland, OR) August 6, 2014 9:00 AM - 12:00 PM NALP: Leasing and the Internet (Portland, OR) August 7, 2014 1:00 PM - 4:00 PM Washington State Forms & Notices (Vancouver, WA) August 8, 2014 8:00 AM - 12:00 PM Mold Awareness & Remediation (Portland, OR) August 8, 2014 12:00 PM - 1:00 PM It's the Law Lunch Time Series: Crazy But True: Stories From a Full Moon (Portland, OR) August 12, 2014 1:00 PM - 4:00 PM Washington State Landlord/Tenant Law (Vancouver, WA) August 15, 2014 9:00 AM - 1:00 PM New Hire Training (Portland, OR) August 19, 2014 1:00 PM - 5:00 PM OR Landlord/Tenant Law Part 2 (Portland, OR)

Notification of Balance Due M042 OR-WA

Check out this new form offering from Multifamily NW! The Notification of Balance Due offers an easy and standard way to serve written notice of any balance a tenant may owe. Deposit still owing? Never got last month’s Pet Rent? There are other more serious termination forms that can communicate the same balance due, however this form allows a friendlier way of explaining the balance due while still building a paper tail of enforcement. 4

Rental Housing March Valley • July 2014

RENTAL HOUSING JOURNAL VALLEY

The Coach ...continued from page 2 E-mail you a free PowerHour invitation.

ing dynamic teams, employee policy manuals [ www.powerhour.com/propertymanagement/employeepolicymanuals.html ] and social media strategic Author’s note: Ernest F. Oriente, a business coach/trainer since 1995 solutions [ http://www.powerhour.com/ [32,170 hours], serving property man- propertymanagement/socialmedialeaderagement industry professional since ship.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox 1988--the author of SmartMatch Allisales methodologies. Recent interviews ances™, the founder of PowerHour® [ and articles have appeared more than www.powerhour.com ], the founder of PowerHour SEO [ www.powerhourseo. 8000+ times in business and trade publications and in a wide variety of leadcom ], the live weekly PowerHour ing magazines and newspapers, includLeadership Academy [ www.powerhouring Smart Money, Inc., Business 2.0, leadershipacademy.com/pm ] and Power The New York Times, Fast Company, Insurance & Risk Management Group [ www.pirmg.com ], has a passion for The LA Times, Fortune, Business Week, Self Employed America and The Ficoaching his clients on executive leadernancial Times. Since 1995, Ernest has ship, hiring and motivating property written 225+ articles for the property management SuperStars, traditional and Internet SEO/SEM marketing, management industry and created 400+ property management forms, business competitive sales strategies, and high and marketing checklists, sales letters leverage alliances for property manCALIFORNIA, COLORADO, DELAWARE, andALASKA, presentation tools. To subscribe to agement teams and their leaders. He ARIZONA, FLORIDA, GEORGIA, ILLINOIS, INDIANA, KANSAS, KENTUCKY, his free property newsletprovides private and group coaching MASSACHUSETTS, NEVADA, NEWmanagement JERSEY, NEW YORK, NORTH ter OHIO, go to: www.powerhour.com. for property management companies CAROLINA, OREGON, PENNSYLVANIA, TEXAS, UTAH, PowWASHINGTON D.C., WEST VIRGINIA & MORE. erHour® is based in Olympic-town… around North America, executive re- WASHINGTON, Park City, Utah, at 435-615-8486, by cruiting, investment banking, national E-mail ernest@powerhour.com or visit utility bill auditing, national real estate 1. Access - Rentegration.com is a web based, - Owners and 5. Value - Large property management Color forand National Tenant Network Logouse Rentegration.com for companies that can Standards track income expense their website: www.powerhour.com and apartment buildingmanagers insurance, for each unit, property and company. Per- only forms generation will save time and access to forms generation, archives, propSEO/SEM web national fect for mid and small size property manag- money over other methods. Mid and small erty management database, basicstrategies, accounters and independent rental owners, who size property managers and independent ing, vendor ordering and other services. WiFi solutions [ www.powerhour.com/ neither have the need or budget for larger, rental owners can manage their entire business at a fraction of the cost of other softmore expensive software. 2. Rental and Lease Forms - Unlimited use propertymanagement/nationalwifi.html ware and forms. forms. All Rentegration.com forms are cre4. Management Database - Rentegration. ], powerful tools for hiring property ated by attorneys and/or local rental houscom is an easy to use, database driven softing associations. management SuperStarsfrom andthebuilddatabase. The modules are all in-

5 REASONS TO USE RENTEGRATION • Logos are provided on the CD in all three forms: all black, reversed to white, or in PMS 280 Blue/PMS 7543 Gray spot or 4/color applications. Please see below for specific use examples. • No other colors are acceptable for use for the logo.

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BLACK

OR-RTG-20 Oregon

CHECK-IN/CHECK-OUT CONDITION

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TENANT(S): ___________________ ______________________________________ 48-HOUR NOTICE _________ ADDRESS: ___________________ OF ENTRY ___________________ OR-RTG-24 Oregon __________UNIT: ______________ CITY: ___________________________________ STATE: ________TENANT(S) : ______________________ ZIP: _________________ Rating

Scale = (E)Excellent (VG) Very Good PET AGREEMENT

WA-RTG-40 Washington

___________ ADDRESS: ___________ ______________________ ___________________ DATE:_____ (G)Good (F)Fair CITY: (P)Poor ___ ______________________ ___________________ UNIT: _________ ___________________ In Out STATE: __________ In Out ZIP: _________

IN Out TENANT INFORMATION LIVING AREAS TENANT(S): ____________________________________________________ DATE:________ KITCHEN ADDRESS: ____________________________________________________ UNIT: _________ Walls Walls CITY: _________________________________________ STATE: __________ ZIP: _________

48-HOUR NOTICE OF ENTRY

BEDROOM 3

Walls

Pursuant to RCW 59.18.150, this is your 48 hour notice that the dwelling unit and your landlord or their premises located at agents will be (Address) ______________________ WA-RTG-20 ___________ Washington ______________________ _ between the hours of (Date)K-OUT CONDIT and ION(Time) REPORT(Time) . The entry will occur __________Doors/Woodwork for the following purpose: __________ __________ ADDRESS: __________ ___________ Doors/Woodwork _____________________ ____________________ Counter Tops __________ Additional Security Deposit Required:$ ___________ __________ Locks ___________ ___________ ______ CITY: __________ ____________________ ___________ Locks ________UNIT:___________ _______________ ___________ Cabinets _____________________ ___________ ______________________ AGREEMENT ____ Ceilings STATE: ________ Rating Scale = (E)Excellent ______________________ _ ZIP: _________________ Ceilings Tenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) Sink _ (VG) Very Good Electric Outlets (G)Good (F)Fair understands that the additional pet(s) are not permitted unless the landlord gives ten Electrical Outlets (P)Poor IN Out ant(s) written permission. Tenant(s) agree to keep the above-listedFloor pets in theLIVING premises In Landlord AREAS Out Garbage subject to the following terms and Cans conditions: KITCHEN In Windows Out Walls BEDROOM Phone Windows

Stove/Racks

DESCRIPTION OF PET(S)Blinds/Drapes

Windows entering

Refrigerator

Rods 1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Ice Trays Vaccinations: Yes____ No____ License Number: ______________ Floor

Shelves/Drawer

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on CHECK-IN/CHEC Floor

3) Type _______________ Breed _______________ ________ Light Fixtures Size ______ Age __ Weight ___ Color ____ Name DishwasherTENANT(S): Vaccinations: Yes____ No____ License Number: ______________

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Towel Bars

Refrigerator

* Add one Sink & Vanity

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Ice Trays

Toilet

Shelves/Drawer

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and Mail:

Blinds/Drapes

compliance if served Rods

by post and mail.

Floor

Tub/Shower Disposal

Light Fixtures

Fan (Exhaust) Dishwasher Floor

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1) The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the Blinds/Drapes Windows tenant’s dwelling Fireplace unit. Blinds/Drapes 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly. Cleanliness 3) Tenant(s) are responsible for the conduct of their pet(s) at all times. Rods 4) Tenant(s) are liable for all damages caused by their pet(s). Floor 5) Tenant(s) shall pay the additional security deposit listed above and/or their rental BEDROOM agreement as a condition to keeping the pet(s) listed above. 1 Carpet/Vinyl/Woo BEDROOM 2 d 6) Tenant(s) shall not allow their pets to cause any sort of disturbance or injury to the Walls Light Fixtures Walls other tenants, guests, landlord or any other persons lawfully on the premises. Windows report to landlord any type of damage or injury 7) Tenant(s) shall immediately caused by Doors/Woodwork Windows their pet. Blinds/Drapes 8) This agreement is incorporated into and shall become part of Blinds/Drapes the rental Locks agreement exe -cuted between the parties. Failure by tenant to comply with any part ofCeilings this agreement Rods shall constitute a material breach of the rental agreement. Rods

WHITE (with 40% gray circle)

Doors/Woodwork

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Floor

_____________________________ Light Fixtures Landlord

Counter Tops

Locks

Electric Outlets Cabinets

Ceilings

Sink Light Fixtures

Electrical Outlets

Electric Outlets

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______________________________ Garbage Cans Light Fixtures Tenant TV Antenna/Cable ______________________________ Doors/Woodwork Tenant Fireplace

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sales@rentegration.com Doors/Woodwork

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Ceilings

Blinds/Drapes Plumbing

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BEDROOM 1

Sink & Vanity

Hot Water

Walls

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503-933-6437

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Heating

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Electric Outlets

Toilet

of this form may

Tub/Shower

be reproduced without

written permission.

1. Access - Rentegration.com is a web based, access to forms generation, archives, property management database, basic accounting, vendor ordering and other services.

- Owners and 5. Value - Large property management Color forand National Tenant Networkthat Logouse Rentegration.com for companies managers can Standards track income expense 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, reversed to white, or inproperty PMS 280 Blue/PMS 7543 Gray spot money or 4/color applications. over other methods. Mid and small fect for mid and small size managPlease 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. rental owners can manage their entire busineither have the need or budget for larger, • No altering of the logo is allowed. If you have a special circumstance that requires something not ness at aforfraction more expensive 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)

ATTENTION COMMERCIAL PROPERTY OWNERS

2. Rental and Lease Forms - Unlimited use forms. All Rentegration.com forms are created by attorneys and/or local rental housing associations. OR-RTG-20 Oregon

CHECK-IN/CHECK-OUT CONDITION

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Need Financing for an Investment Property? 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.

WARNING! Working directly with Chase Bank, Umpqua Bank, Union Industry Partner of:Mae, Freddie Mac, etc. can Bank, Opus Bank, AmericaExclusive West, Fannie be Dangerous To Your Financial Health! You Should Be Asking Yourself These Questions: Do You Really Think Any Commercial Lender Is Working In5Your Best sales@rentegration.com 03-933-6437 www.Rentegration.com Interests? NO ONE within those institutions is working for you. Staff employed by these lenders are making decisions based on what is in the best interests of the lender – NOT YOU! Doesn’t It Cost More to Use a Mortgage Broker? NO – in almost ALL cases I save investors thousands of dollars and weeks of frustration. Rating

Scale = (E)Excellent (VG) Very Good PET AGREEMENT

DESCRIPTION OF PET(S)Blinds/Drapes

Floor

Walls

Stove/Racks

Shelves/Drawer

2) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ Carpet/Vinyl/Wood License Number: ______________

Disposal

Windows entering

Refrigerator

Rods 1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Ice Trays Vaccinations: Yes____ No____ License Number: ______________

48-HOUR NOTICE OF ENTRY

BEDROOM 3

______________________ Blinds/Drapes

Rods

on CHECK-IN/CHEC Floor

3) Type _______________ Breed _______________ ________ Light Fixtures Size ______ Age __ Weight ___ Color ____ Name DishwasherTENANT(S): Vaccinations: Yes____ No____ License Number: ______________

Light Fixtures

The entry

will occur for the following __________Doors/Woodwork __________ ____________________purpose: ADDRESS: __________ ___________ ______________________ ____________________ Counter Tops __________ Additional Security Deposit Required:$ ____________________ Locks ___________ ___________ ______ CITY: __________ ______________________ Locks ________UNIT:___________ ____________________ Cabinets _____________________ ___________ ______________________ AGREEMENT _____ STATE: ________ ____ Ceilings Rating Scale = (E)Excellent ______________________ _ ZIP: _________________ Ceilings Tenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) Sink _ (VG) Very Good Electric Outlets (G)Good (F)Fair understands that the additional pet(s) are not permitted unless the landlord gives ten Electrical Outlets (P)Poor IN Out ant(s) written permission. Tenant(s) agree to keep the above-listedFloor pets in theLIVING premises In Landlord AREAS Out Garbage subject to the following terms and Cans conditions: KITCHEN In Windows Out Walls Phone

Blue PMS 280/Gray PMS 7543

PMS 280/PMS 7543 over color

Doors/Woodwork

TV Antenna/Cable

1) The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the Blinds/Drapes Windows tenant’s dwelling Fireplace unit. Blinds/Drapes 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly. Cleanliness 3) Tenant(s) are responsible for the conduct of their pet(s) at all times. Rods 4) Tenant(s) are liable for all damages caused by their pet(s). Floor 5) Tenant(s) shall pay the additional security deposit listed above and/or their rental BEDROOM agreement as a condition to keeping the pet(s) listed above. 1 Carpet/Vinyl/Woo BEDROOM 2 d 6) Tenant(s) shall not allow their pets to cause any sort of disturbance or injury to the Walls Light Fixtures Walls other tenants, guests, landlord or any other persons lawfully on the premises. Windows report to landlord any type of damage or injury 7) Tenant(s) shall immediately caused by Windows Doors/Woodwork their pet. Blinds/Drapes Locks 8) This agreement is incorporated into and shall become part of Blinds/Drapes the rental agreement exe -cuted between the parties. Failure by tenant to comply with any part ofCeilings this agreement Rods shall constitute a material breach of the rental agreement. Rods Floor

_____________________________ Light Fixtures Landlord

Doors/Woodwork

Locks

Floor

Electrical Outlets

______________________________ Garbage Cans Light Fixtures Tenant TV Antenna/Cable ______________________________ Doors/Woodwork Tenant Fireplace Locks

Ceilings

Cleanliness

Electric Outlets

BEDROOM 1

Walls

Windows

BEDROOM 3

Walls

BATH ROOM

MethodStove/Racks of Service:

Towel Bars

Refrigerator

* Add one Sink & Vanity

Personal Service:

additional day for

Ice Trays

Toilet

Shelves/Drawer

Counter Tops

Electric Outlets Cabinets

Walls

Locks

Electric Outlets

Floor

Windows Essential Services

Blinds/Drapes Plumbing

Smoke Detectors

BATH ROOM

Heating

Towel Bars

Electricity

Sink & Vanity

Hot Water

Detectors

by post and mail.

Doors/Woodwork

Ceilings

Sink Light Fixtures

and Mail:

Rods

Floor

Light Fixtures

Fan (Exhaust) Dishwasher

Floor

Walls

Windows Post

Blinds/Drapes

compliance if served

Tub/Shower Disposal

Toilet

of this form may

Tub/Shower

be reproduced without

written permission.

Current Interest Rates Multifamily Mobile Home Parks Fixed rates start @ low 3% Office Retail/Industrial/MOD Fixed rates start @ mid 3%

What Lending Sources Do You Use? I have access to dozens of commercial lenders with dozens of different and innovative loan products. You have choices – and are not STUCK with just one lender and whatever they have for a loan program. How Do I Reach You? I will come to you! Doubtful you will get any other banker to come right to your home or office and sit down with you to discuss financing in detail. Free Framed Print When We Meet! If you are going to need a new commercial loan anytime in the next 12-24 months, you should seriously consider moving NOW. If you are ready to start the financing process, just email me or give me a call. When we meet, I will bring as a gift a beautifully framed print of the cartoon below with your name on it – a keepsake for your home or office.

Al Williams, American Commercial Mortgage al@apartmentfinancing.com

800.265.3860

“I listened to Al Williams.” Rental Housing Journal Valley • July 2014

RENTAL HOUSING JOURNAL VALLEY

here is an old saying when it comes to selling/renting real estate that the three most important factors are: location, location, location. Yet, what if you are working at an apartment community that does not have these three things going for it? Maybe your community is “off the beaten path” and no one can find you, or your building is located in a neighborhood that is not considered desirable because it needs a facelift. Perhaps you are near certain types of businesses that may discourage people who are driving by from driving in. The issue of “lo-

cation,” is obviously a concern based on the following question:

move this building I would do it! Do you have any suggestions?

Q: I work at an older building that is tucked away in a secluded spot. It once had a great reputation, but over several years, the local neighborhood has taken on a “run down” appearance and many of the area businesses are not caring for their properties the way they once did. It’s getting harder and harder to attract new renters, not to mention trying to hang onto existing residents who are now concerned with security and safety issues. If I could pick up and

A: I want to commend you for your loyalty to your building and residents. It’s obvious that you care a great deal about the people and the place where you work, as well as your local community. Challenges with “location” are especially difficult as they sometimes fall into the realm of things that we consider to be “beyond our control.” We feel powerless and frustrated. On the other hand, difficult challenges present unique and exciting opportunities to become creative and also get other people involved in the problem-solving process. Thomas Edison said, “Opportunity is missed by most people because it is dressed in overalls and looks like work!”

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Well. . . solving challenges related to “location” is work; it’s HARD work! It requires spending time analyzing ALL of the problems, not just the ones that are blamed on location. Let’s face it: Over a period of time, it becomes easier and easier to make “excuses” and “blame” what is perceived as a “bad location” on EVERY problem that arises. (i.e. “No one can find us because we are in a bad location!” - How colorful and well placed are your signs? How skilled are you at giving specific, detailed directions; even if it means using a local pub as a landmark? “No one will use our laundry facility because it is perceived as being ‘unsafe’ because we are in a bad neighborhood.” - Is your laundry room bright, cheerful and welcoming? Is the interior, as well as the exterior building and surrounding area, well lit? Can residents be introduced to each other and encouraged to use the “buddy system?”)

munity could become a member of your local Chamber of Commerce and network with other area businesses who care about the condition of your section of the city. Maybe your staff and residents could get involved civically and attend local town meetings to make your voices heard about what’s happening in your neighborhood. What about forming a block watch at your community? The problems you face won’t go away overnight. They took years to develop and will take time to correct. MUCH patience will be required to bring about any lasting change. Of course many people prefer to stay with problems they understand rather than look for solutions they’re uncomfortable with. (It’s easier to complain than change!) However, if you always do what you’ve always done, you’ll always get what you’ve always got. You may not be able to change the location of your building, but you CAN change the direction of your thinking. - After all, it’s a lot easier to “pick up and move” people, rather than buildings! 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 Provided by: SHOPTALK SERVICE EVALUATIONS Phone: 425-424-8870 E-mail: joyce@shoptalkservice.com Web: www.shoptalkservice.com Copyright – Shoptalk Service Evaluations

With regards to your neighborhood situation, perhaps your com-

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RENTAL HOUSING JOURNAL VALLEY

I Just Do ...continued from page 4 and wall an outlet is not working instead of just saying “outlet in bedroom not working.” Resident satisfaction is often tied to the relationship with maintenance. This team is interacting with the residents on a more consistent basis making customer service and fair housing training a critical piece for improved resident satisfaction. The maintenance team should know how to sell the value of the community when interacting with the residents and do their part to market the service they provide. Make sure they are completing follow up calls to verify the residents are satisfied after every work order. What about leaving behind a thank you note and a treat? This can add that additional marketing and customer service “wow” factor to your maintenance team. Setting up a team with the proper personal protection equipment, current MSDS sheets, and regular training on safety practices can reduce liability at the property. Routine site inspections are encouraged to stay out in front of any areas that may become liabilities and are being overlooked. Set standards for the team on appearance and hygiene. Personally, I am more comfortable allowing a maintenance person into my home that is in a clean uniform with a proper name badge. Smoking should

Rental Housing Journal Valley • July 2014

Dispensary...continued from

front page only be allowed in designated areas and steps should be taken to remove the smoke smell that lingers on an employee. How else can you improve efficiency with the maintenance team? Be clear on when it is a good time to include two workers to complete a task. Train the team to plan ahead to bring all the right tools and supplies to a job to avoid those needless trips back and forth to the maintenance shop. Managers should be aware of what a reasonable amount of time is required to complete typical tasks so they can help monitor efficiency. The maintenance team needs to know when it is appropriate to call in a vendor because an issue is larger than what they can handle. Keeping the shop organized will help improve efficiency as well. A shop should have minimal inventory with a system that is organized making it easy to quickly locate the parts needed. Dispose of old random parts that will never be utilized. Create smart work spaces that allow for easier repairs, such as a large table to cut screens. Get rid of old couches and TVs and create appropriate lunch stations for the team to take breaks. Compile a standard specs list for your community making it easier to order supplies and creates a more consistent apartment turn for residents. It is easier to find the parts

you need when the specs are the same throughout the property. Create a record documenting the property systems, dates replacements occurred, annual inspection dates and routine maintenance calendars. Plan the year ahead by creating a capital planning board in the shop. Map out the plan for the year ahead and what items are budgeted or planned for in each month. Set the tone that a great attitude goes a long way. Coming to the property with a “can do, get it done” outlook will make a huge difference in performance. Ask for their commitment to excellence and to bring 100%. Invest in your maintenance team through training. Maintain consistent oversight – “inspect what you expect”. Follow up with recognition, rewards and appreciation. Validate how valuable they are to the operations of your communities and definitely don’t accept the statement “I just do maintenance.”

moratoria or other regulations effectively prohibiting dispensaries altogether. These cities include Hillsboro, Beaverton, Tigard, Tualatin, Milwaukie, Gladstone, Oregon City, and Wood Village. Thus, the building owner should know whether the local code even allows a dispensary at the premises. The Practical Considerations Once through the legal morass, the building owner must address the host of other considerations unique to dispensaries such as (a) tenant mix, (b) image issues, (c) insurance considerations, (d) compliance with other leases, and (e) compliance with financing restrictions. For example, in a multi-tenant building the other tenants may not appreciate having a marijuana dispensary as a co-tenant. Besides the Continued on page 8

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EUGENE • SALEM • ALBANY • CORVALLIS

pl e a s e v i s i t u s at www. rent a l h o u s i n g j o u r na l .co m

RENTAL HOUSING JOURNAL VALLEY

Dispensary...continued from page 7 perceived image problem, marijuana gives off distinctive odors that other tenants sharing a common HVAC system may not appreciate inhaling. Relatedly, having a dispensary as a tenant could lead to a decrease in lease renewals from other tenants in the building. Other tenants may perceive any loss of business as caused by the dispensary (whether true or not). To mitigate this, and other cotenant risks, stand-alone facilities may be the best option for dispensary tenants. Finally, dispensaries are relatively new and their operators may be inexperienced in operating a dispensary.

This inexperience increases the likelihood that the dispensary will fail and the tenant will default on the lease. Conclusion A building owner asked to lease to a marijuana dispensary is faced with a host of complex legal and practical hurdles unique to marijuana dispensary tenants. While not insurmountable, the building owner should take great care, and consult with experienced legal counsel, when considering whether or not to enter into a lease with a marijuana dispensary.

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Rental Housing March Valley • July 2014