November 2014
Rental Housing Journal Valley
3. Dear Maintenance Men:
5. How to Lose an Eviction Case
4. Partnering With Suppliers and Contractors
6. Shoptalk
EUGENE • SALEM • ALBANY • CORVALLIS
VALLE
WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC
EUGENE • SALEM • ALBANY • CORVALLIS
A Proper Capital Plan and Budget May Save Thousands of Dollars Each Year Replace Those Windows! Get Oregon Tax Credits, Help the Environment, and Reduce Your Energy Bills on Your Small Rental Properties By Cliff Hockley, President, Bluestone & Hockley Real Estate Services.
R
ecently our maintenance team replaced about 40 single pane windows with new vinyl double pane windows at a 10-plex we own in Portland. Fortunately, two programs exist to help us fund the project. The first is a state-run program through the Oregon Department of Energy, and the other is a program available through the nonprofit organization Energy Trust of Oregon. Since this simple process saved us money, I thought I would share the information. Oregon Department of Energy Program The Oregon Legislature realigned the energy tax credits (with the dissolution of the BETC, see ORS 469 B.30) in 2013 to include the Small Premium Projects (SPP), which benefits landlords of smaller properties. Funded at a level of $1,000,000, this tax credit program is geared to projects costing less than $20,000. Administered by the Oregon Department of Energy: (www.oregon.gov/energy/BUSINESS/ Incentives/docs/EIP_SPP.pdf) The SPP has been funded to oper...continued on page 7
Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007
I
n 2013, Energy Trust of Oregon incentive programs saved over $1,000,000 for multifamily property managers and owners. Successful property management requires developing a capital plan and budget that will sustain the building structure, support its function for years and enhance the bottom line for all shareholders. Having a structured and consistent approach is critical. Budgets typically include a reasonable estimate of known operating expenses, as well as a plan for future capital purchases. The operating
expenses portion of the budget may include varying degrees of management and maintenance of the property including; but not limited to, utility and equipment expenses. The goal of many multifamily property owners and managers is to reduce their community expenditures while seeking alternatives that may assist them with reaching their budgetary goals. Additionally, savvy condominium/townhome owners look for ways to decrease their monthly utility expenses, and understand the importance of being financially prepared when the unexpected happens
and a faulty appliance, or water heater, needs to be replaced. Energy Trust understands these budgetary challenges, and we have developed tools and programs that may help reduce operating costs and monthly expenses. We provide and install no cost high-performance lighting, showerheads and faucet aerators to simply help reduce energy consumption and to realize immediate savings for your managed communities. Proper capital planning requires the time-consuming collection of detailed data on a building’s condi...continued on page 8
Lead In Review By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon
H
istory of Lead Regulation The evolution of regulatory changes regarding lead hazards in housing has been interesting to observe. Initially, the Environmental Protection Agency (EPA) required housing providers – sales agents, landlords, etc. – to disclose to potential buyers and occupants that residences built prior to 1978 may contain lead-based paint before the consumer was obligated by contract. This put housing providers in the role of consumer advocate and I personally spent years as a sales agent, like you, distributing the required “Protect Your Family from Lead In Your Home” brochures ; explaining the mandated disclosure form , and then retaining the completed forms for
Current Resident or
PRSRT STD US Postage PAID Portland, OR Permit #5460
three years. This was, essentially, the only requirement of housing providers for nearly two decades – there was, and is, no requirement to test for the presence of lead nor to remediate (remove) it. In 2008, the EPA passed the Renovation, Repair and Painting (RRP) regulation that impacts residences, layering on top of the ’96 law. It required those doing work that disturbs at least six square feet of painted surfaces inside pre-’78 homes (or 20 square feet on the exterior) provide residents with the “Renovate Right” brochure and complete another accompanying disclosure form. Building on the ’08 regulation, two years later the EPA went on to stipulate that those doing such work must be certified (or hire someone who is) and follow specific work practices to prevent lead contamination. The following work methods are specifically
prohibited because they have been proven to create significant levels of lead dust: dry sanding or scraping, removing paint by torching or burning, the use of heat guns over 1100°F, and machine-sanding or grinding without HEPA equipment. Specialized paint strippers are available instead; some even render lead non-hazardous further decreasing risk to workers and residents. Safe work practice requirements include, among other things, posting of signage during the project; the use of plastic sheeting to seal and prevent contamination outside the work area; and proper disposal of lead-based paint waste. The Pre-History We’ve all heard the “before 1978” line, but it turns out the year a residence was constructed offers a fairly precise likelihood of whether or not ...continued on page 2
Advertise in Rental Housing Journal VALLEY Circulated to over 6,000 Apartment owners, On-site, and Maintenance personnel monthly.
Call 503-221-1260 for more info.
RENTAL HOUSING JOURNAL VALLEY
Lead In Review ...continued from front page lead is present in its layers of paint. According to HUD’s Office of Healthy Homes and Lead Hazard Control, homes built:
• before 1940 have a 87% chance
of containing at least some lead paint,
• between 1940 and 1960 have a
69% chance of containing leaded paint,
• between 1960 and 1978 have a
24% chance of containing lead paint, and those
• after 1978 are unlikely to have
lead-based paint. The reason being is that lead compounds were historically added to paint as pigments, or used to improve opacity and durability. These pigments were implicated in child poisonings as early as 1904, when lead toxicity in several Australian children was traced to their porch paint. Within a few years, several nations in Europe and elsewhere began banning lead in certain household paints. Here in the U.S., a voluntary standard limited lead in interior paints in 1955, but we didn’t ban it until 1977 and even then certain levels of lead were allowed. In 2009, the legally allowable concentration was reduced While we were slow to enact protective legal measures, some countries aboard are still manufacturing and selling leaded paint. In many developing nations paint with staggering levels of lead are, or have until recently been, sold freely in their marketplaces. Inertia is largely to blame according to Jack Weinberg of International POPs Elimination Network, a coalition of environmental and health groups working to ban lead-based paint. “Lead-based pigments are marginally cheaper… and some argue they are more durable, more protective, or have better colors, but these claims are highly debatable and, I think, don’t hold up,” Weinberg says. “In the absence of a legal requirement, a lot of companies just do it.” As a result, we’ve seen foreignmade painted products reach our shores. In 2007, news broke that imported Asian toys were coated with lead paint, sparking public ire. We are, in fact, exposed to lead in many ways – through the air, water, food, contaminated soil, dust and, yes, deteriorative paints used on products such as those Asian toys. The Secretary of Health and Human Services labeled lead the "number one environmental threat to the health of
• Driveways • Parking Lots
children in the U.S." back in 1991 and, of all the possible sources, old leadbased paint is the most significant source of lead exposure in the U.S. The last drop of lead-based residential paint was manufactured in the U.S. decades ago yet we are still struggling to overcome our historic use of these products. As of 2006, an estimated 22% of U.S. homes – 23.2 million of them – contained leadbased paint hazards. Calculations suggest that as many as 535,000 young children could have unsafe blood lead levels as a result. Recent Cases The issue of lead hazards is alive in U.S. homes and in our courtrooms. Costly legal battles aimed, ultimately, at protecting our children through disclosure and proper work habits catch housing providers who do not comply with such requirements. There are, too, legal efforts at making U.S. companies that once sold leadbased paints accountable. A couple recent and noteworthy examples:
• In December 2013, a California
judge ordered three paint companies to pay $1.1 billion in a case that took 13 years to reach trial and alleged the manufacturers knew lead made their paint products harmful to children as early as the 1890s but still marketed and sold it to consumers without health warnings.
• In April 2014, Lowe’s settled with
the EPA to the tune of $500,000 after an investigation found a handful of the big box store’s contractors were not complying with RRP requirements. The settlement also stipulates that Lowe’s will create a new compliance and training program at its 17000+ U.S. stores.
• There have also been numerous
cases of housing providers being fined or sued when out of compliance with various aspects of lead-based paint in housing regulations, including here in Oregon.
The Lead-Fair Housing Nexus In an informal study of local housing providers a few years ago, the FHCO found that over a third still don’t realize it is illegal under the federal Fair Housing Act to deny housing simply because there are children in the household – even in pre-1978 properties. Neither the
• Patching & Repairs • Seal Coating
Service Area: Salem, Albany, Eugene & Portland
503-391-6274 *Free Prompt Estimates 2
CCB# 155631
potential risk to occupants if they do not know how to live ‘lead safe’ nor the concern for liability should a child be poisoned is a justification for violating fair housing laws. We’ve seen a number of cases across the country like this. Many of them, like the non-compliance cases, have resulted in very expensive rulings or settlements that went beyond regulatory requirements and obligated those specific housing providers to remediate the lead in their properties. Why It Matters It’s the law and shirking these federal requirements can result in hefty fines, rulings or settlements. That is obvious, but the impetus for expanding U.S. regulation around lead-based paint, and the true motivation behind the obligations on the housing industry are two-fold:
1. Our kids are at considerable risk from lead hazards.
2. Household lead is a considerable
contamination source. Lead is a harmful environmental pollutant. Once airborne, lead particles or microscopic dust settle around our homes; they get into our bodies as we breathe or swallow. The risk to children is compounded by the fact that they (and pets, too) are often on the floor where lead dust often settles and are inclined to put their hands and other objects that may be covered in unseen dust in their mouths. Often, lead exposure has no observable symptoms and goes unrecognized but exposure, even at low concentrations and particularly in early childhood, can cause profound neurobehavioral problems including life-long lowered intellectual performance and behavioral changes. Lead exposure is associated with a multitude of conditions including Alzheimer’s and cardiovascular disease. If it’s your child or grandchild who is poisoned, the impact is tragically powerful. But even if someone you love isn’t poisoned by lead, it truly affects us all. One estimate suggests the U.S. forfeits $50.9 billion in economic activity annually because of IQ points lost to lead exposure. Globally, 49% of all children and 42% of adults have elevated blood lead levels, contributing to 600,000 new cases of intellectual disabilities every year, according to the World Health Organization. One study found that with each IQ point lost, a child who has been poisoned by lead loses an estimated 2% of their lifetime earning potential. The population-wide loss of IQ points resulting from lead exposure costs low- and middle-income countries $977 billion annually in decreased productivity. "That economic drag amounted to 1.2% of global gross domestic product in 2011, yet the cost is nearly invisible unless you crunch
the numbers according to the lead author of the study, Leonardo Trasande, an associate professor at New York University. “If a child comes back with one IQ point loss, the parent doesn’t notice. But if 100,000 kids come back with one less IQ point, the economy notices,” Trasande says, adding that for some countries, the average number of IQ points lost to lead exposure is much higher than 1. Clearly, the numbers justify devoting money and effort to the issue. When you consider these personal and economic factors along with the fact that lead-based paint is the most significant source of such exposure and the majority of our housing stock is covered in it, you can see the justification for evolving U.S. regulatory emphasis on lead hazards in housing. One also begins to appreciate the crucial role housing providers can (and are obligated to) play in preventing unnecessary risk and loss to household residents. What’s more, housing providers can (and are obligated to) keep themselves and those who work on their properties safe by assuring lead-safe work practices and proper protective gear are used, because adults, too, are at risk of lead poisoning. Living Lead Safe One can live (and work) lead-safe, even in pre-’78 properties! Of the housing providers we surveyed, 83% wanted to learn more about the issue and educate consumers about it. To help facilitate these good intentions, we’d like to introduce you to a nonprofit partner of ours in Portland, Community Energy Project. As a former Realtor®, I can tell you their “Living Lead Safe” workshop is an excellent presentation for company meetings, as well as client or resident gatherings. It takes about an hour and I can tell you it is mind blowing! Visit www.communityenergyproject.org/services/lead-poisoning-prevention-workshops to learn more. This article brought to you by the Fair Housing Council; a civil rights organization. All rights reserved © 2014. Write jbecker@FHCO.org to reprint articles or inquire about ongoing content for your own publication. To learn more… Learn more about fair housing and / or sign up for our free, periodic newsletter at www.FHCO.org. Qs about this article? ‘Interested in articles for your company or trade association? Contact Jo Becker at jbecker@FHCO.org or 800/424-3247 Ext. 150 Want to schedule an in-office fair housing training program or speaker for corporate or association functions? Visit www.FHCO.org/pdfs/classlist.pdf
p l e a s e v i s i t us at www. re nt a l h o u s i n g j o u r na l .co m Rental Housing March Valley • November 2014
RENTAL HOUSING JOURNAL VALLEY
Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez
Dear Maintenance Men, It won’t be long before we need to change our clocks for Daylight Saving. I’m a bit concerned about the lights at my apartment building. I have various fixtures, sensors and timers, not one of which turns on the lights at the same time. Some don’t turn off or on at all. Any suggestions? Burt Dear Burt: There are two ways to effectively control exterior lighting: 1. A timer clock. 2. A photocell for detecting light and dark Both time clocks and photocells have been around forever. We prefer to activate landscape lighting with a photocell as it is virtually maintenance free. A photocell will ensure the property has light only when it is needed and turn off automatically with the approach of daylight. Be sure the photocell located where it can “see” ambient light and not near an artificial light source.
Rental Housing Journal Valley • November 2014
A time clock needs constant attention in order to keep up with the changing seasons and adjustments for longer or shorter nights. There is nothing more frustrating than seeing the property all lit up at 5pm and it only gets dark at 7pm or even worse; the lights turn on at 7pm and it has been dark since 5pm. Remember: the safety of your residents is at its greatest risk when it is dark and the lights are out.
you remove the detectors during painting, don’t forget to reinstall them before the next resident moves in.
Dear Maintenance Men: I’m getting ready to have one of my rental units painted and the painter typically sprays the walls and ceiling as opposed to rolling on the paint. I’m a bit worried about my smoke and CO Detectors. I’m I being overly cautious? George
Dear John: The first issue may be education. When a new resident moves into a unit; explain how to use the garbage disposal, what should and should not be put through the unit. Show them what to do if the disposal jams and where and how to use the unjam key. (The un-jam key should be attached to the side of the disposer.) The same information should be distributed to all existing residents as well. To answer your question about an alternative to a garbage disposal: We recently met with a small Southern California company that makes an item to eliminate the garbage disposal unit altogether. The product is called SemperScreen and it looks just
Dear George: Overly cautious? No! We think you are right to worry. The paint and construction dust can contaminate the smoke/CO detectors and lessen their sensitivity. It is important to either cover the detectors in a protective plastic bag or remove them during the painting and construction work. While you are there, check the batteries and dates of installation. If
Dear Maintenance Men: Garbage deposals are getting me down! I am forever getting calls to unblock them or replace rusted ones. They seem to be a source of constant problems. Are there any alternatives? John
like a standard sink drain strainer. The difference is in the strainer itself. The strainer is a fine stainless steel mesh permanently attached which will only allow water to drain and keep debris from going down the drain and into the pipes. In other words, the new drain strainer is used to replace the garbage disposal unit. Because it is permanently installed, the residents cannot remove it. The garbage disposer is removed the SemperScreen replaces it. This product can be found at: www.semperscreen.com . Please call: Buffalo Maintenance, Inc for maintenance work or consultation. JLE Property Management, Inc for management service or consultation Frankie Alvarez at 714 9568371 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
VALL
EUGENE • SALEM • ALBANY • COR
3
RENTAL HOUSING JOURNAL VALLEY 16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 503-213-1281, 503-213-1288 Fax www.multifamilynw.org
Pam McKenna Multifamily NW President
Partnering With Suppliers and Contractors By Pam McKenna
A
s I walked through the booths at the Spectrum Trade Show, I was struck by the vast amount of knowledge and experience that these industry partners
bring to our business. It underscored how crucial this partnership component is to our success. The challenge can be in choosing the right supplier, understanding how to manage the process and defining the scope of work. This can often be overwhelming but with a few simple steps and procedures in place you can set a standard for your community that will help you alleviate a lot of the
stress. Step one – set up your approved vendor list ahead of time. Don’t wait until something goes wrong to engage your suppliers. Create a list of the categories of supplies and services you will eventually need to order, including emergency services. Once you have created this list you can start the process of locating the right supplier or contractor. Step two – do your research. Multifamily NW offers a great solution called MUM (members using members) Being a member with Multifamily NW gives you access to a list of industry supplier members that are in good standing with the association and the members. Being a member you also have access to other members in the industry that can provide references or feedback on suppliers. Through word of mouth you can discover the best companies for customer service and quality work. Step three – protect your property from liability. Set minimum insurance requirements to protect the
property owner from potential liability resulting from labor, deliveries, and other exposures related to having contractors on site. Consider using a compliance organization that will track your vendor list ensuring every participating vendor is up to date on their insurance coverage and their credentials meet your standards. Step four – define your scope of work. A recommended way to do this for larger projects is to engage an construction project manager that can determine the extent of the work required and help to write the scope of work. If it is smaller projects, for instance exterior building window cleaning, sit down with your maintenance team to properly define the project to include how many stories the building is, how many exterior windows, do you expect them to clean the exterior of the balconies while completing the job, etc. Make sure to include details that may be important to note for instance if you are running a “green” building you ...continued on page 7
Evictions: Getting Rid of the Bad Tenant Join Multifamily NW and attorney Allen Gardner for an informative afternoon of learning the “ins and outs” for evicting a bad tenant. Should you attend this class? Ask yourself the following: Do you know how to file an eviction? What do you do if the tenant wants a trial? How do you handle common issues that are raised by tenants in FED proceedings? If you aren’t able to confidentially answer these questions, then this class is for you.
Eugene Hilton & Conference Center 66 East 6th Avenue Eugene, OR 97401
Cost: Multifamily NW Members-$65 Non-Members-$105 Lunch Only-$25
November 20, 2014
Email: info@multifamilynw.org Phone: 800-632-3007
Lunch: 12:00-12:30 Class: 12:30-2:30
4
Rental Housing March Valley • November 2014
RENTAL HOUSING JOURNAL VALLEY
L
How to Lose an Eviction Case
andlords, from time to time, have to file with the appropriate court to evict their tenants. This procedure is called an Eviction Action, also known as a Special or Forcible Detainer Action. Evictions are filed for nonpayment of rent, violation of the lease, or failure to move after written Notice. While most of these cases are routine in nature, a landlord should be aware of following the proper procedures. Failure to do so can result in the case being dismissed and, if the tenant is represented by an attorney, paying the tenant’s attorney’s fees. Some of the more common ways to lose your case are the following. First, and foremost, is not complying with the Notice requirements of the Arizona Residential Landlord and Tenant Act. Before a landlord can even file an eviction action through the courts, the tenants must be given proper written Notice. Also, the Notice must be properly served or delivered to the tenant. Service of a Notice There are only two ways to legally serve a tenant a Notice. One is personally handing the Notice to the tenant or an occupant of suitable age at the tenant’s residence. The other method is sending the Notice certified or registered mail, but you cannot start the running of your Notice period until either five days after
mailing or after the tenants sign for the mailing, whichever occurs first. Posting of Notices on doors is not legal serve of Notices. Failure to legally serve the Notice will result in dismissal of the eviction.
Proper Wording of a Notice The language of the Notice must also be properly worded. For instance, a five-day Notice to pay or move must identify the tenant, address of property, amount of rent past due, late charges due under the lease, and if rent is not paid, legal action will be taken to evict them. Simply writing “your rent is late, please pay” or something similar would not be adequate to inform the tenant of the allegations against them. Also, if the tenant is given a Noncompliance Notice to correct behavior or violations (e.g. unauthorized pets or occupants, not maintaining the rental, etc.), the Notice must be very specific as to what the alleged violation is, when it occurred and any other information to inform the resident of the violation. Non-compliance by the Landlord Another possible way to lose your eviction case is to not do necessary or needed repairs to the premises when requested by the tenant. Landlords have a duty to make all necessary repairs and many courts may not
evict a tenant if the landlord deliberately or negligently does not do these repairs. Tenants can claim retaliation by the landlord for failure to make repairs and the remedy is a defense to the eviction, plus two month’s rent or actual damages, whichever is greater. Suing After Regaining Possession Other possible defenses are the tenant has moved and no longer occupies the rental. An eviction is only to regain possession of the rental property and if the tenant has moved and returned keys, there is no issue of who is entitled to possession for the court to determine.
Be Professional, Be Prompt, Be Prepared An unwritten defense is not being prepared when you come to court, not having witnesses who have personal knowledge of the violation, being rude or argumentative to the judge. The golden rule applies – “be professional, be prompt, and be prepared”. Andrew M. Hull, Esq. HULL, HOLLIDAY & HOLLIDAY, PLC www.doctorevictor.com 602-230-0088
VALL
EUGENE • SALEM • ALBANY • COR
www. re nt a l h o u s i n g j o u r n a l .co m
ATTENTION COMMERCIAL PROPERTY OWNERS Need Financing for an Investment Property?
WARNING! Working directly with Chase Bank, Umpqua Bank, Union Bank, Opus Bank, America West, Fannie Mae, Freddie Mac, etc. can be Dangerous To Your Financial Health! You Should Be Asking Yourself These Questions: Do You Really Think Any Commercial Lender Is Working In Your Best 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. 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 • November 2014
5
RENTAL HOUSING JOURNAL VALLEY
W
hether you have several vacancies and upcoming notices to lease or you are down to that last “net to rent,” you must still qualify your prospects in order to ultimately secure the rental. How you remember and record the needs and preferences of your callers and visitors, is just as important as obtaining the information in the first place. Following is a question that came up on the topic of guest cards: Q: My property supervisor is really pushing us to use guest cards. However this whole “qualifying thing” makes me feel uncomfortable, like I am invading someone’s privacy. I have a pretty good memory and don’t really think it’s necessary to write down everything on a guest card. What’s the big deal anyway? A: I commend you for being respectful of the privacy of others. This demonstrates professionalism and consideration on your part. However, it is possible to note the preferences and personal information of your prospective renters without being intrusive. Remember
the old adage: “The shortest pencil is longer than the longest memory.” No matter what your recall ability is, you will not be able to memorize all the needs and preferences of every client, along with their name and contact information. Try asking each one of your prospective renters for “permission” to question them about their needs in order to provide them with the best possible service. It might sound something like this: “Is it okay if I ask you a few questions to find out what you’re looking for in your new home? - I want to help you pick out the apartment that will best meet your needs!” Then, at the end of the phone contact or visit, once you have established a rapport, it would be perfectly natural to ask for their email, phone number or mailing address so you can keep in touch with them. Remember: You are in the “customer service” business. You can’t meet the needs of your customers if you don’t know what they are. (Neither can anyone else in your office if your phone callers show up and you are not there.) You can’t fol-
low up on the interest of your clients either, if you don’t have their contact information. Think of a guest card as a “tool.” When used properly you will find that it is a professional, organized method for learning everything you ever wanted to know about your prospects, but were afraid to ask! If you have a question or concern that you would like to see addressed next month or if you would like to inquire about a shopping program and leasing training, 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 site: www.shoptalkservice.com Copyright Shoptalk Service Evaluations
VALL
EUGENE • SALEM • ALBANY • COR
RHJ VALLEY FREE SUBSCRIPTION
PROPERTY NAME
NAME ADDRESS
CITY STATE ZIP EMAIL ADDRESS
PHONE
Send for your FREE subscription to Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007 • (503) 221-1260 • fax (503) 221-1545 6
Rental Housing March Valley • November 2014
RENTAL HOUSING JOURNAL VALLEY
Partnering ...continued from page 4 may have requirements for products that can be used at your community. Step five – take it out to bid, with a standard written scope of work, providing all suppliers the written scope. This allows for a more precise and fair bidding process relying on an “apples to apples” comparison of price based on an identical scope. Be clear on your change order process in the event that the job requires additional work. Step six – create a bid comparison sheet. Compare the bids side by side with your property owner, your supervisor or your team. This is an efficient way to get approvals processed and documented, especially for larger projects. Step seven – execute a contract.
This is an important document so be sure to review the contract before signing it. Have your project manager or legal department review the contract if necessary. Are you the right person to sign it based on your Property Management Agreement? What are the specific terms of the contract? Does it have an auto renewal written into the contract? Often we get in a rush to push work through and can overlook unfavorable terms. Take the time to ensure what you are putting into place is the best for your property owner. Step eight – clarify the payment process. What are the terms of payment for your property? Communicate this to your contractor or supplier so they understand the
process. If you are processing a draw request for capital improvements this can often delay the timing of payment. Being transparent up front is always a benefit to both parties. Step nine – inspect what you expect. Follow up and inspect the work before signing off on the work. If you are not satisfied with the work, allow the contractor to come back and make it right. One of my biggest pet peeves is managers that want to fire a vendor for not meeting their expectations before they make them aware they aren’t happy with the work performed. Give your industry suppliers the same respect we would want to receive. Step ten – build partnerships. Long term partnership will work in
your favor. When you have built solid relationship with an industry supplier they will better understand your expectations for future work. You will spend less time explaining what you expect the next time around. Long term partnerships build dependability, trust and confidence. These steps will help in building industry partnerships resulting in better solutions and costs savings. This valuable partnership is well worth your time and energy, allowing you to tap into the vast knowledge and experiences of our great industry suppliers and contractors.
VALL
EUGENE • SALEM • ALBANY • COR
Windows! ...continued fromfront page ate for at least the next 12 months, commencing on 1 July 2014. In order to be eligible for these tax credits you must:
1. Be a trade, business, or rental
property owner with a business site in Oregon or be an Oregon non-profit organization, tribe or public entity that partners with an Oregon business or resident,
2. Own or be the contract buyer of the project, and
3. Use the equipment or lease it to another person or Business in
Oregon In other words, rental homes, small rental properties, and businesses are eligible to receive these credits. Some of the energy efficient categories that are included for residential landlords are:
• LED Outdoor Lighting • Building Envelope Thermal
Improvement ( i.e. Windows)
• Solar Thermal Water Heating • Adjustable Flow Irrigation
Pumping
• Energy Improvements to
Commercial Greenhouses
• Heat Pump Service/Hot Water Heating
• Agricultural Irrigation System Improvement
• Compressed Air Systems Components
• High Performance Homebuilding • Boiler-vent Dampers • Premium Efficiency Electric AC Equipment
• Industrial Piping Insulation • Direct-fired Radiant Heating in High Volume Spaces
• Ductless Heat Pumps with
Variable Refrigerant Flow This program is also available to homebuilders. They are allowed a $12,000 credit for new home construction if they include these energy conservation methods:
• The building shell must meet
specified heat loss requirements
• The house must be verified
by ENERGY STAR ® Homes Northwest program
• The HVAC system must be high performance
• A renewable energy system must be installed
Homebuilders must apply for the tax credit (not the new homeowner). Typically you will want to prequalify your property upgrades through the SPP desk before you
Rental Housing Journal Valley • November 2014
start. Energy Trust of Oregon A number of cash incentives are offered through Energy Trust of Oregon. Go to (energytrust.org) to investigate further. LED Lights: For a limited time during 2014, Energy Trust of Oregon can help landlords save energy and money with LED light bulbs and light fixtures. When you purchase from a distributor participating in the Lighten Up with LEDs promotion, you can apply at order time to have your distributor instantly reduce the purchase price of qualifying LED lamps by the Energy Trust incentive amount. Promotion incentives are available for business customers with an eligible commercial, industrial or multifamily (2+ units and for common area lamp installs only) sites in Oregon that receives electrical service from Portland General Electric or Pacific Power. For more Energy Trust Multifamily incentives log into this website: http://energytrust.org/library/forms/ BE_MF_Incentive_Booklet.pdf There are many ways that you can save money as you modernize and upgrade your rental property. I encourage you to discover the tax credits and cash incentives that are available to you if you own property in the Portland Metro area.
VALL
EUGENE • SALEM • ALBANY • COR
7
RENTAL HOUSING JOURNAL VALLEY
Proper Capital Plan ...continued from front page Energy-efficient buildings protion and its deficiencies. Our energy advisors collect this data for you by duce real savings, which fall directly providing a no-cost walkthrough to the owner’s bottom line. survey and site evaluation to identi- Improving buildings’ energy effify building efficiency opportunities ciency also enhances property value within common areas, and within and significantly reduces operating METRO, ARIZONA APT. NEWS costs, sometimes by as much as hunowner-units, to determine where the VALLEY, largest savings potential exist for the dreds of thousands of dollars a year. complex and the owner. The benefit To learn about our cost-saving proof engaging Energy Trust resources, grams and cash incentives for multiservices and cash incentives is family properties, visit our website or through delivering substantial cost savings and efficiency gains, reduc- contact us at multifamily@energytrust. Feb, Apr, Jun, org. ing financial and operational costs, Aug, Oct, Dec and providing long-term benefits to all shareholders. ALLEY
ON-SITE-NW SEATTLE Salsbury Industries
V
EUGENE • SALEM • ALBANY • CORVALLIS
ON-SITE
VALLEY, METRO, ARIZONA APT. NEWS
Salsbury Industries
Jan, Mar, May, Jul, Sep, Nov,
1010 East 62nd Street, Los Angeles, CA 90001-1598 Phone: 1-800-624-5269 • Fax: 1-800-624-5299
September
p
Octoberp
The Industry Leader in Quality 1/8 Page 4 7/8” x 3 5/8” On-Site4
bw
Contact Us Today for a Free Catalog!
Order Factory Direct! 1010 East 62nd Street, Los Angeles, CA 90001-1598 Phone: 1-800-624-5269 • Fax: 1-800-624-5299
1/8 Page 4 7/8” x 3 5/8” On-Site3a
8
bw
Rental Housing March Valley • November 2014