December 2014
Rental Housing Journal Valley
3. Dear Maintenance Men 4. True Leadership 6. Shoptalk
Three Important Steps For Conducting Property Management Exit Interviews
EXIT
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Americans' Personal Finance Sentiment Strengthens
Housing Optimism Follows Suit Confidence in Home Selling Environment Hits New Survey High WASHINGTON/PRNewswire
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esults from Fannie Mae's October 2014 National Housing Survey show Americans' optimism about the housing market continued its gradual climb amid greater confidence in household income and personal finances. The share of respondents who say they expect their personal financial situation to improve during the next 12 months climbed to 45 percent – seven points higher compared to one year ago – while the share expecting their financial situation to worsen decreased to 10 percent last month. Although consumer attitudes about the direction of the economy remain subdued, with only 40 percent of survey respondents saying the economy is on the right track, the October results mark a 13 percentage point improvement compared to the same time last year. "Consumers are growing more optimistic about the housing market
in the face of broader improvement in economic sentiment," said Doug Duncan, senior vice president and chief economist at Fannie Mae. "The share of consumers who expect their personal finances to get better is near its highest level since the survey's inception, while those expecting their finances to get worse reached a survey low. Home price expectations rose significantly this month, largely reversing the dip witnessed over the past four months, and the share of consumers who think it's a good time to sell a home reached another survey high. The narrowing gap between home buying and home selling sentiment may foreshadow increased housing inventory levels and a better balance of housing supply and demand. These results may help drive a healthier housing market in 2015." Survey Highlights Homeownership and Renting
• The average 12-month home price change expectation rose to 2.8 percent. • The share of respondents who say home prices will go up in the next 12 months fell by one point to 44 percent. The share who say home prices will go down decreased by one point to 7 percent. • The share of respondents who say mortgage rates will go up in the next 12 months rose by three percentage points to 48 percent. • Those who say it is a good time to buy a house fell to 65 percent. Those who say it is a good time to sell increased to 44 percent—a new all-time survey high. • The average 12-month rental price change expectation rose to 3.7 percent. • The percentage of respondents who expect home rental prices to go up in the next 12 months decreased by six percentage points
to 49 percent. • The share of respondents who think it would be difficult to get a home mortgage today increased by two percentage points. • The share who say they would buy if they were going to move fell to 65 percent, while the share who would rent increased to 30 percent. The Economy and Household Finances • The share of respondents who say the economy is on the right track held steady at 40 percent. • The percentage of respondents who expect their personal financial situation to get better over the next 12 months increased to 45 percent. • The share of respondents who say their household income is significantly higher than it was continued on page 3
Us vs. Them By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon
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nfortunately, some in the housing industry assume an “us vs. them” position to fair housing. As a former Realtor® now working at the Fair Housing Council (FHCO), I regret that. Civil rights are fundamental principles of this country and civil rights in housing—the heart of our shared livelihood—is fundamental to fair and equitable
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treatment for all regardless of protected class status. The defensive nature some assume troubles me on four counts: First, at the FHCO we take a proactive approach to education and outreach. I see my job as doing what I can to insure everyone knows what their rights and responsibilities are under the law. If we could accomplish our mission with education alone we would but truth be told,
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neither an “all-carrots” nor an “allsticks” approach will work. Frankly, we’re fairly unique in the fair housing industry in that we do both education / outreach and enforcement activities. Most organizations like ours do just one or the other. Our approach is holistic and comprehensive. Those of you who know and have trained with our Education and Outreach staff, know that we love what we do and that we take our education / outreach role very seriously.
Two, illegal housing discrimination – acts that would curl (or straighten, as the case may be) your hair and turn your stomach happen every day. The landlord who shuts the door on an otherwise suitable applicant as soon as he learns she has kids. The lender who is more than happy to work with buyers who happen to be recent immigrants as long as she can get away with charging them more than equally qualified US-born applicants or who pulls a continued on page 2
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Us vs. Them ...continued from front page loan from underwriting when it’s learned the mortgagee is on maternity or paternity leave. The seller who insists the neighbors would be up in arms if a Jewish family moved into the neighborhood and so instructs his agent not to bring him offers from “those people.” The agent who assumes what kind of house would be suitable to a family with kids or operators of a group home for those with disabilities above and beyond what the buyers gave as their search criteria. The bigoted neighbor who paints graffiti across the façade of a new homeowner’s house and burns a cross in his yard. Yes, it does still happen, and sadly in our line of work we see the worst of the worst that one person can do to another! We’d gladly retire if housing discrimination were a non-issue but daily complaints and testing results—both local and national— confirm that illegal housing discrimination is, unfortunately, alive and well. Let me share a just a couple recent examples. Not long ago we received a call from a renter whose landlord followed the family’s announcement that they were expecting their first baby with an eviction notice. The landlord regretfully informed the household that the soon-to-be family of three exceeded his occupancy standard of two people for the two-bedroom unit. Now,
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hopefully you already know that an occupancy standard that restrictive violates federal fair housing protection for families with kids but, unfortunately, this landlord didn’t. When our enforcement team reached out to the landlord to address the situation they found that the landlord was genuinely ill informed about fair housing laws and promptly agreed to comply and cooperate. Familial status discrimination has been illegal for over 20 years yet we see violations not only in terms of restrictive occupancy standards and child-specific property rules, but even blatant criteria stated as “no kids,” “no toddlers,” or “no teenagers.” Happily, in this situation, the matter was amicably resolved with a simple phone call. In another recent case in our service area, homeowners, their association, and the listing agents hired to sell homes in the area advertised the community as an “adult” community for those 18 and older. Both the term “adult” housing and a senior community other than for those over 55 or 62 are not allowed under federal fair housing law. The third thing that bothers me about an “us vs. them” attitude is that some believe that fair housing only protects “them,” “others,” “those people.” Guess what, we all have a race and national origin. We all have a gender. We either do or do
not follow a religion. If you don’t have kids, I’m sure you know and care about someone who does. According to a 1997 Census Brief, 1 in 5 Americans have a disability2; again, if you don’t have a condition that meets the broad definition of disability under fair housing laws, I can guarantee you know someone who does. The truth is fair housing laws protect all of us when we are the housing consumers. And yes, the law is slanted toward the consumer – just like most laws and regulation in this country. Regardless of the industry in question, it is presumed by lawmakers and society that the professional is more knowledgeable and in a greater position of power than the consumer. Based on the bad actions of few (and sometimes many), legislation is proposed to level the playing field and protect consumers. Fair housing laws protect your daughter as she grows up and moves into her first apartment where her onsite manager harasses and sexually assaults her. Fair housing laws protect your elderly parents as they move into a retirement home, designated senior community, or assisted living facility. Fair housing laws protect your neighbor who, because of a war injury or auto injury, now requires the use of crutches, or a walker, or a wheelchair, or perhaps even a live-in caregiver to get around
and remain independent. Fair housing laws protect the minimum-wage clerk who bags your goods at the local store who, despite working two jobs, can’t maintain a living wage and receives a rent subsidy. Fair housing laws protect your gay coworker who’s been in a loving and committed relationship for 10 years but is persistently targeted and harassed by his neighbors. When you realize that people all around you—people you know and care about—are subject to discrimination, the impact of it becomes more tangible. When you realize that many of those people don’t know their rights, the resources or recourse available to them, and, therefore don’t take action to protect themselves, it puts a different spin on the issue. And finally, four: We aim to be a resource. First of all, anyone can call our toll-free, free-service Fair Housing Hotline. Secondly, as a housing provider, you deal with housing consumers day in and day out. You may be the one that brings a fair housing violation to light. How often do you hear stories from clients, residents, or applicants? If those stories involve how someone else involved with housing (for example, other landlords they applied with or a lender they’re working with to purchase their first continued on page 3
Rental Housing March Valley • December 2014
RENTAL HOUSING JOURNAL VALLEY
Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez
Dear Maintenance Men: We are contemplating a kitchen remodel of our rental units and want to add a dishwasher. It is understood that we will have to remove one cabinet to accommodate the dishwasher. The problem is that none of the kitchen cabinets if removed will produce the correct size hole to fit a 24” dishwasher. The hole will either be too big or too small. What can we do? Peter Dear Peter: You do have a few options you can look at. A larger hole can be filled with a spacer on either side of the dishwasher to close in the hole to fit the appliance or insert a pull out spice or tray door to fit the space. The spacer will need to be painted or stained to match the existing cabinetry. If the space is too small for a standard size dishwasher, you might consider using an 18” wide dishwasher or a drawer type dishwasher. Another option is resizing your existing cabinets to fit a standard dishwasher. In other words, remove
a cabinet and make it smaller. Resizing a cabinet might be easier said than done, however a good carpenter or cabinet maker could make this job easy. Dear Maintenance Men: As an income property owner; what would be the best thing I could do at my building to help cut heating and air conditioning costs? I keep my property in good shape and want to help my residents keep their costs down which in turn, I hope, will keep my vacancies low. Branford Dear Branford: The number one thing you can do to help your residents and yourself is to insulate the attic. In winter time, heat is lost to the attic and out the roof and in summer the a/c will work harder to overcome the heat generated by the attic and warming the interior. Proper attic insulation will keep the heat in during winter the heat out during summer. Talk to your local utility supplier about energy efficiency programs. Many
will offer different programs during the year and many are at no or low cost to the property owner. Dear Maintenance Men: Can you give me some ideas on updating the kitchen cabinets in my vacancy? I don’t want to replace them and the counter tops are in good condition. Tom Dear Tom: Give the cabinets a good scrub before anything else. You will be surprised how much dirt, grime and grease builds up over the years. Use TSP or a good degreaser for cleaning. If the cabinets are wood use lemon oil or re-varnish after cleaning and they will sparkle and look new again. Painting the cabinets will also bring new life to them. You might consider changing the color using a high gloss paint to add a bit of sizzle. Change the hardware. Knobs and hinges are the jewelry of your cabinets. Look for more modern hardware such as stainless steel, ceramic,
Us vs. Them ...continued from page 2 home, etc.) you may identify something in the story that you suspect violates fair housing laws. You can call us. You can encourage them to call us. In this regard we quite seriously consider you allies in our fight against illegal housing discrimination! As a former housing provider who served my clients and my trade association with the same passion as I bring to my current job, I encourage you to become a partner in our efforts to eradicate illegal housing discrimination in its many forms. As I’ve said many times, please consider us a resource; use the Fair Housing Hotline at 800/424-3247. Please also consider supporting the work we do at www.FHCO.org/ join_us.htm. To learn how you can get involved visit www.FHCO.org/ get_involved.htm. Be sure to sign up for our newsletter too, to say on top of current issues (at the bottom left of any page on our site).
• Driveways • Parking Lots
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 www.census.gov/prod/3/97pubs/ cenbr975.pdf
12 months ago remained at 25 percent. • The share of respondents who say their household expenses are significantly higher than they were 12 months ago fell slightly to 36 percent. The most detailed consumer attitudinal survey of its kind, the Fannie Mae National Housing Survey polled 1,000 Americans via live telephone interview to assess their attitudes toward owning and renting a home, home and rental price changes, homeownership distress, the economy, household finances, and overall consumer confidence. Homeowners and renters are asked more than 100 questions used to track attitudinal shifts (findings are compared to the same survey conducted monthly beginning June ALLEY 2010). To reflect the growing share of households with a cell phone but no landline, the National Housing Survey has increased its cell phone dialing rate to 60 percent as of October 2014. For more information, please see the Technical Notes. Fannie Mae conducts this survey and shares monthly and quarterly
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• Patching & Repairs • Seal Coating
503-391-6274 Rental Housing Journal Valley • December 2014
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Americans' ...continued from page 2
Service Area: Salem, Albany, Eugene & Portland
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glass or any type of steel finishes. If your cabinets look plain, add a backsplash above the base cabinets or molding around the doors for an architectural look. To get color and design ideas, take a tour of some local high end apartments and see what they have done to their kitchens. 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
results so that we may help industry partners and market participants target our collective efforts to stabilize the housing market in the near-term, and provide support in the future. For detailed findings from the October 2014 survey, as well as a podcast providing an audio synopsis of the survey results and technical notes on survey methodology and questions asked of respondents associated with each monthly indicator, please visit the Fannie Mae Monthly National Housing Survey page on fanniemae.com. Also available on the site are in-depth topic analyses, which provide a detailed assessment of combined data results from three monthly studies. The October 2014 Fannie Mae National Housing Survey was conducted between October 1, 2014 and October 25, 2014. Most of the data collection occurred during the first two weeks of this period. Interviews were conducted by Penn Schoen Berland, in coordination with Fannie Mae. Opinions, analyses, estimates, forecasts, and other views of Fannie Mae's Economic & Strategic Research (ESR) Group included in these matecontinued on page 5
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True Leadership
s my year winds down as your 2014 Multifamily NW President I wanted to take the opportunity to tell you about one of the most important pieces of this organization: the leader. It is no easy task to lead any association. It demands patience, finesse and the ability to understand the political environment. I’ve often thought about how challenging it would be to have a different “boss” every year as a new board President is sworn in. After spending a year developing a strong working relationship, you turn around and start over with someone new. In addition to that change, as a leader you now have a new executive committee and board members to work with. The ability to accept and work with constant change is part of this role. Deborah Imse took the position as the Executive Director for Multifamily NW in 2001 when the organization was known as Metro Multifamily Housing Association. There were 35,000 units at the time
and income statement was showing a loss. Over the years with Deborah’s leadership, the membership has grown to over 160,000 units with a positive net income and healthy balance sheet. This has been a strategic process requiring hard work and perseverance. Part of this success included fostering the National Apartment Association relationship. Deborah has developed a strong relationship with the leadership at NAA and partners with our national organization in many different ways. She serves as a mentor to other Executive Directors, sharing advice on how to put on a successful trade show. Annually, Deborah attends the Capital Conference in Washington D.C. and the NAA Educational Conference. This year she attended the Association Executive Boot camp and the AE’s for Excellence Conference. These are all excellent opportunities to expand knowledge and share ideas with other executive leaders in our industry. As the association grew into more of a statewide organization Deborah
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lead the charge to develop Regional Councils in Bend and Salem adding to the existing council in the Southern Willamette Valley. She developed structures that would work for each region and provided educational opportunities that expanded to outlying areas that didn’t have access to training. Deborah developed the first “road trip” from Central Oregon which allowed members to attend the Spectrum Trade Show and Conference. In addition she organized the first Apartment Report breakfast for the Southern Willamette Valley region, which immediately sold out.
Multifamily NW
Events Calendar December 1, 2014 9:00 AM - 1:00 PM NALP: The Leasing Interview and Qualifying Residents (Portland, OR)
December 12, 2014 12:00 PM - 1:00 PM It's the Law Lunch Time Series: 2014 - A Year-End Assessment of the Newest Laws (Portland, OR)
December 2, 2014 9:00 AM - 1:00 PM New Hire Training (Portland, OR)
December 17, 2014 4:00 PM - 7:00 PM Portland Holiday Social (Portland, OR)
December 3, 2014 9:00 PM - 3:00 PM Leasing Demonstration and Resolving Objections (Portland, OR)
December 18, 2014 4:00 PM - 7:00 PM Eugene Holiday Social (Eugene, OR)
December 5, 2014 8:00 AM - 10:00 AM Early Registration: Maintenance Fair 2015 (Portland, OR)
December 18, 2014 4PM – 7PM Hilton Eugene 66 East 6th Street Eugene, OR 97401 RSVP: info@multifamilynw.org
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Multifamily NW has increasingly been recognized as a reliable source for issues in our industry. This year alone we have received positive mentions in the Portland Business Journal, the Oregonian, the Tribune and other local papers. Deborah was interviewed by Channel 8 after the Apartment Report Forecast breakfast demonstrating that Multifamily NW is the “go to” organization for authoritative multifamily information in Oregon and Southwest Washington. Deborah collaborates with many external stakeholders that require countless hours and dedication. ...continued on back cover
December 9, 2014 9:00 AM - 11:30 AM Fair Housing 200: Advanced Jeopardy Game (Portland, OR) December 10, 2014 9:00 AM - 10:00 AM Learn the 7 "Secret" Tips to Apartment Buying Due Diligence (Portland, OR)
Consistency Guest Card – M163 OR-WA The Consistency Guest Card form is ideal for multifamily properties, busy with prospective renters regularly inquiring about vacancies. Diligent use of this form is a great tool to keep track of potential applicants and provide the level of information that highly qualified applicants expect. Additionally this form helps ensure that all interactions follow the same template. This form allows for the easy organization and written proof of how all prospective renters are asked the same questions over the phone, experience matching unit tours, and receive identical rent and deposit quotes.
January 6, 2015 9:00 AM - 1:00 PM New Hire Training (Portland, OR) January 15, 2015 8:00 AM - 12:00 PM Fair Housing Fair (Portland, OR) January 20, 2015 8:00 AM - 12:00 PM Mold Awareness & Remediation (Portland, OR) January 21, 2015 9:00 AM - 2:00 PM CAM: Legal Responsibilities (Portland, OR)
CONSISTENCY GUEST CARD WELCOME CONVERSATION PHONE / IN PERSON
DATE __________________________________________ TIME __________________________________________ LEASING CONSULTANT ______________________________________________________________________________________________________________________
Applicant names______________________________________________________________________________________________________________________________________________________________ How soon do you need an apartment?________________________________________ How many people will this be for?_____________________________________ Where are you living now? Address:__________________________________________________________________________________________________________________________________ Any pets?__________________ Type_____________________________________________________________ Weight_______________________________ Age________________________________ What size apartment/how many bedrooms are you looking for?___________________________________________ How many baths?______________________ Is there a particular rent range?___________________________________________ What is important to you in your new home?_____________________________ ______________________________________________________________________________________________________________________________________________________________________________________
How many cars do you have?_____________________________ Why are you moving?______________________________________________________________________________ How did you hear about us?
c Print ad
c Internet
c Drive by
c Resident referral
c Used approved script to describe community amenities c Brochure/application was offered/given to applicants Price quoted________________________ Deposit or deposit range quoted________________________ Different rent or deposit rates quoted?
c Yes
c No
If yes, explain:
_________________________________________________________________________________________________________________
c Revenue Management System
c Other________________________________________________
May we have a phone number and email of where you can be reached? Phone:_______________________________________________________________________________________________________
PHONE CALLS How soon can you come and see me today? Time__________________________ If you are shown an apartment you like, are you prepared to fill out an application? c Yes c No Do you know where we are located? Do you need driving directions? Remember, please bring a copy of a government issued ID.
Email:________________________________________________________________________________________________________
INTERNAL NOTES Recorded visit into log: Call________________ Visit________________ Prospect #_________________________ Date_______________________ Initial_______________________
Form M163 OR-WA Copyright © 2013 Multifamily NW™. NOT TO BE REPRODUCED WITHOUT WRITTEN PERMISSION. Revised 10/1/2013.
Pam McKenna Multifamily NW President
Apt # shown_______________________ If not shown, reason:______________________________________________________________________________________________________________ Follow-up date within 24 hours?________________________ Second follow-up date:________________________ Third follow-up date:________________________ Leased apt #_______________________ Quoted monthly rent_______________________ Specials quoted_______________________________________________________________ If not leased, give reason__________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________________________________________________________________ ______________________________________________________________________________________________________________________________________________________________________________________
Rental Housing March Valley • December 2014
RENTAL HOUSING JOURNAL VALLEY
Americans' ...continued from page 2 rials should not be construed as indicating Fannie Mae's business prospects or expected results, are based on a number of assumptions, and are subject to change without notice. How this information affects Fannie Mae will depend on many factors. Although the ESR Group bases its opinions, analyses, estimates, forecasts, and other views on information it considers reliable, it does not guarantee that the information provided in these materials is accurate, current, or suitable for any particular purpose. Changes in the assumptions or the information underlying
Rental Housing Journal Valley • December 2014
these views could produce materially different results. The analyses, opinions, estimates, forecasts, and other views published by the ESR Group represent the views of that group as of the date indicated and do not necessarily represent the views of Fannie Mae or its management. Source Fannie Mae Fannie Mae enables people to buy, refinance, or rent a home.
VALLEY
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July, and the few people who are moving, may or may not make it to your community before they decide to rent somewhere else first. A vacant apartment TODAY, could be “ringing in the New Year” with you on January 1st. The SECRET SHOPPER phoned three communities, looking for immediate availability. I told each consultant that I was new to the area and needed a place to live right away. Each leasing person seemed interested in helping me, but only one motivated me to visit immediately. My first call was answered promptly by a friendly voice. I stated that I was new to the area and needed to find a place right away. The consultant asked where I was moving from and what was bringing me to the area. She then asked for my name and began to inquire about the specific needs and requirements that I had. It was a pleasant exchange that went on for several minutes. Once the consultant learned what was important to me, she began to talk about various openings. She said that I had called at a good time because there were a couple of great apartments to choose from. The con-
learned thatMETRO, I needed anARIZONA apartment APT sultant invited me to visit and told VALLEY, me the office hours. She said, “If I’m immediately, she said, “Well, you not here, anyone in the office can better get right over here because I only have one left!” I laughed help you.” She gave me directions and closed with, “I hope to see you and asked if she could tell me a little bit about it first. The consultant soon.” The next call I made was answered described the apartment interior, as Feb, Apr, Jun, Oct, DecShe explained that well as the view. with a great deal of enthusiasm. TheAug, consultant asked for my name right the “view apartments” don’t open away, and I could hear the smile in up very often, and said this one was her voice as she spoke and offered especially nice because of its southher assistance. I explained that I was western exposure. The consultant said she had a new to the area and needed to find a place to live right away. The consul- model to show, and she could take tant asked questions to determine me by the location of the apartment my needs and find out what was for rent. She told me they were still important to me. She told me there getting it ready, but that I could were only two apartments available, move into it by the week-end. The and briefly described the positive consultant asked if I had time to attributes of each one. She asked come over right now. She said she when I would like to come by, and had another appointment in an hour we discussed the driving distance and if I waited, the upcoming apartment wouldMETRO, probably ARIZONA be gone. I APT and the fact that it was raining. The VALLEY, consultant said, “It’s been kind of agreed to come over within the next slow today because of the weather. If twenty minutes. The consultant then you want to wait and come by tomor- gave directions carefully, since I had row, I’m sure the apartments will stated I was new to the area. She sugstill be available.” I said, “I think I’ll gested I bring along her phone numdo that.” The consultant said, “Great! ber, in case I get lost so I could call from the road. Before we hung up, I’ll see you tomorrow!” Jan, Mar, May, Jul, Sep, Nov, My final call was met with an she asked for my number to be able 1010 East 62nd Street, Los Angeles, CA 90001-1598 to check back1-800-624-5299 with me if I didn’t energetic greeting and an immediate Phone: 1-800-624-5269 • Fax: offer of help. When the consultant continued on page 7
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vailable for a limited time! Only one of its kind! Offer expires at midnight! These and similar phrases are used to make people “spring boldly into action.” They conjure up images of people rushing into department stores and retail outlets to take advantage of incredible offers on quality merchandise, especially during the holiday season. The advertisers and merchandisers are trying to create a sense of urgency in the minds of their customers; which will motivate them to take immediate action. They are in the “sales” business and want the customer to immediately purchase a product and part with some of their money! You may not have to meet monthly or quarterly sales “quotas,” but undoubtedly you have specific occupancy standards which must be met and maintained. Therefore, you need to rent a certain number of apartments each day, week or month to achieve the goals set for your community. It’s no secret that in the Pacific Northwest, many prospective renters decide to hibernate for the winter and dig in their heels until after the holidays. The phone isn’t ringing off the hook like it was in
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Three Important Steps For Conducting Property Management Exit Interviews ©
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esearch has shown that a person who resigns from your property management company is leaving for one of three possible reasons: a new career opportunity, an unsolicited job offer or for a grievance that has not been handled correctly. Whenever a person resigns from your property management company for voluntary reasons it’s normally a surprise and it can be expensive to replace a valuable team member. This article will outline three important steps for conducting exit interviews, a process which will reduce employee turnover and improve profitability at the same time. Implementing exit interviews: Start by explaining to your property management team that an exit interview will be conducted for any person who is voluntarily leaving your company. When done respectfully, exit interviews send a strong message to your team because it says that you and your company want to know why they are leaving. An exit interview process will also help you and your property management company clearly understand why people are leaving and may give you valuable clues as to where some improvement needs to be made from within your company. An exit interview process will also give each former employee a chance to tell you why he or she is leaving and this form of closure is both healthy and productive prior to their departure. Tip From The Coach: As you begin to review your exit interview forms, look for trends that might point to deeper problems or might help you see new opportunities. Here are some trends to look for: the average length of time a person works for your property management company before they voluntarily resign, the top three reasons why a person leaves your company, the top three positions with the most turnover, what internal changes might prevent team members from leaving, do you see any turnover patterns within a specific depart-
Ernest F. Oriente, The Coach {Article #223…since 1995}
ment or group, and what are you doing on a personal level to prevent future resignations. Conducting exit interviews: The next step is to determine how exit interviews are going to be done in your property management company. Here are some typical ways to conduct an exit interview: give an exit interview form to the person who is leaving and ask them to complete it before their last day, give an exit interview form to the person who is leaving and ask them to mail it back in a confidential envelope, meet with the departing person on their last day to conduct a verbal exit interview or schedule a time to have this person call your human resource department for a telephone exit interview. Tip From The Coach: With many of our property management clients, we have been asked to conduct exit interviews with some of their departing employees, as a neutral third party. We use a custom exit interview form for each property management company and then create a summary of our findings. From this summary, we then begin to address the internal areas that will either reduce employee turnover or make for a more productive and profitable organization. Questions to ask during an exit interview: It has been our experience that each of our property management clients want to create their own custom exit interview form. Here are some sample questions to get you started with yours: What did you enjoy the most about working for our property management company? What did you enjoy the least and why? What suggestions or feedback can you share that would make our company stronger and more successful? Did we handle your complaint/ grievance in an appropriate and timely way? Were you clear about your career path and future within our property management company? What would it take for you to stay, if that were possible? Is there
anything else you would like to share as your final comment? Tip From The Coach: Remember, if exit interviews are handled respectfully, you and your company will gain a wealth of knowledge to help grow, refine, polish and solidify the success of your property management organization. In addition, a departing employee will more than likely offer honest commentary about what is and what is not working in your company. Are you ready to really listen to what they have to say? More importantly, are you ready to take the action steps to resolve, fix, and improve whatever is necessary? For leading trends about property management since 1995, surf www.powerhour.com Want to hear more about this important topic or ask some additional questions about how to build a custom exit interview form? Send an E-mail to ernest@powerhour.com and The Coach will E-mail you a free PowerHour invitation. Author’s note: Ernest F. Oriente, a business coach/trainer since 1995 [32,850 hours], serving property management industry professional since 1988--the
author of SmartMatch Alliances™, the founder of PowerHour® [ www.powerhour.com ], the founder of PowerHour SEO [ www.powerhourseo.com ], the live weekly PowerHour Leadership Academy [ www.powerhourleadershipacademy.com/ pm ] and Power Insurance & Risk Management Group [ www.pirmg.com ], has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars, traditional and Internet SEO/SEM marketing, competitive sales strategies, and high leverage alliances for property management teams and their leaders. He provides private and group coaching for property management companies around North America, executive recruiting, investment banking, national utility bill auditing, national real estate and apartment building insurance, SEO/SEM web strategies, national WiFi solutions [ www.powerhour.com/propertymanagement/nationalwifi.html ], powerful tools for hiring property management SuperStars and building dynamic teams, employee policy manuals [ www.powerhour.com/propertymanagement/employeepolicymanuals.html ] and social media strategic solutions [ http://www.powerhour.com/propertymanagement/socialmedialeadership.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox sales methodologies. Recent interviews and articles have appeared more
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Shoptalk ...continued fromfront page make it by. The consultant thanked me for calling and ended with, “I look forward to meeting you. I’ll see you when you get here.” What are you doing to create URGENCY when the telephone rings at your community? How do you convince the caller that what you have to offer is worth their time and consideration? Your community may be just one of a dozen competing for their attention. Why should they visit YOUR place, and why should they DO IT NOW? Is there something about your apartments or community that stands out from all the rest? Could it be a unique floor plan or desirable location? What about the easy access to area conveniences Rental Housing Journal Valley • December 2014
or your sensational staff? Whatever it is, use it to create urgency to get your callers to visit TODAY! Tomorrow is TOO LATE! By then, they will have already rented from the leasing consultant who invited them to visit YESTERDAY! Secret Shopper Provided by: Shoptalk Service Evaluations Phone: 425-424-8870 E-mail: Joyce@shoptalkservice.com Website: www.shoptalkservice.com Copyright © Shoptalk Service Evaluations
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RENTAL HOUSING JOURNAL VALLEY
True Leadership ...continued from page 4 Deborah is one of the Portland Housing Advisory Committee Commissioners. She sits on the Landlord Tenant Coalition where she negotiated rules favorable to allow required renters insurance and continued criminal background checks. Deborah sits on the statewide Section 8 advisory group and the Fair Housing Advisory committee for Portland, Washington County and Clackamas County. She also works with the statewide Reentry Housing Workgroup, the Quality Rental Housing Workgroup, Multnomah County Housing Impact Assessment Committee and the Gresham Revised Stakeholder Group. Deborah continues to work with Healthy Homes for Multnomah County, Clackamas County and all of Oregon. She has also served on the bedbugs and hoarding state groups. Most notably this year, through Deborah’s efforts Multifamily NW was awarded the Meyers Memorial Trust Grant to promote statewide education. The grant will pay for her to travel to rural areas of Oregon to train landlords on House Bill 2639
which makes Section 8 Vouchers protected under source of income. Deborah is committed to our statewide organization and ensuring equal educational opportunities for all landlords and this grant will allow her to extend our reach. Deborah holds a Masters in Public Administration from Washington State University. This training regarding public policy translates well for our association. Deborah has gained the respect of our members, the media, housing groups, politicians and national representatives through her work in the field. Her years of commitment to housing have earned her this position and the association has grown to what it is today through her leadership. On behalf of the Association, I would like to publicly thank Deborah Imse for her professionalism, her dedication and continued commitment to the housing industry. We should all be proud to have an Executive Director with such integrity and reach within our industry.
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The Coach ...continued from page 7 than 8000+ times in business and trade publications and in a wide variety of leading magazines and newspapers, including Smart Money, Inc., Business 2.0, The New York Times, Fast Company, The LA Times, Fortune, Business Week, Self Employed America and The Financial Times. Since 1995, Ernest has written 225+ articles for the property management industry and created 400+ property management forms, business and market-
ing checklists, sales letters and presentation tools. To subscribe to his free property management newsletter go to: www. powerhour.com. PowerHour® is based in Olympic-town…Park City, Utah, at 435615-8486, by E-mail ernest@powerhour. com or visit their website: www.powerhour.com
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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.” 8
Rental Housing March Valley • December 2014