Rental Housing Journal Valley Sept 2015

Rental Housing Journal Valley

September 2015

3. Budgeting and the Beginner’s Mind

6. Taking Over an Existing Tenancy

4. Budgets: Don’t Miss Opportunities to Evaluate Employees and Vendors

7. Dear Maintenance Men

EUGENE · SALEM ·ALBANY · CORVALLIS WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC

Portland Apartment Research Report

Creating an Annual Operating Budget for Your Multifamily Property This article will give you some great ideas for using a budget to your advantage.

Portland Metro Area, Third Quarter 2015 Published Courtesy of Marcus & Millichap ibrant Tech Scene Invites New Workers to Portland Demand for Portland area apartments is booming as new employees and job seekers rush to the metro, and completions are barely keeping pace with demand. Already-tight occupancy will be further heightened by job growth in the area’s tech, manufacturing and health care employers, which include the likes of Intel, Oregon Health & Science University and a variety of startups. These industries are drawing young professionals to the Portland metro who hope to be hired by the large number of expanding startups and other technology companies. Potential and new hires

• A baseline for property management reviews.

Some of the items to review are: Multifamily Property Income:

• Income and expense projections based on market drivers and assumptions.

• Vacancies against leasing projections: Is your manager on target for leasing new units or maintaining the average occupancy rate in your market?

Benefits of Creating an Annual Multifamily Investment Property Budget A budget allows you to establish or identify:

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• Performance targets.

vs. budgeted income and expenses.

This budget then establishes a baseline for your property manager’s performance reviews. It’s a great idea to have regular meetings with your manager to review these comparisons. How are they doing in meeting projections? What can be done to course correct when and if your targets are not being met?

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by Theresa Bradley-Banta multifamily real estate annual operating budget allows you to compare the actual financial performance of your property to your longrange projections for future income and expenses.

It’s important to prepare an annual income and expense forecast for your property whether you manage it yourself or if a professional third party management company manages it for you.

Important: Do not prepare an annual operating budget for your multifamily property or apartment building and then file it away and ignore it.

• Capital improvements planning and projections.

• Problems that need to be resolved.

Importantly, a budget can help you maximize profitability and avoid unforeseen major repairs and expenses.

Third Party Property Manager Performance Baseline The best use of a property budget is to track how your manager is performing.

Ask your third party property manager to prepare an annual budget forecast with side-by-side comparisons of actual

• Lease renewal (rollover) projections: These are leases that are due for renewal during the budget period. Make initial contact with residents no later than 60 days prior to lease expiration.

If there is not a renewal commitment from your tenant there should be a follow up in 45-days.

...continued on page 2

Spectrum Educational Conference See you on September 24th!

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pectrum is the largest rental housing educational conference and trade show in Oregon. It will be held September 24th at the Oregon Convention Center in Portland from 8:00am to 4:00pm. Spectrum is the premier annual educational conference for rental housing ownership, management and maintenance. This year’s show features a bustling trade show floor of both lo-

Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007

PRSPRT STD US Postage PAID Portland, OR Permit #5460

cal and national exhibitors. The event draws over 1,000 attendees and offers 28 unique education workshops. Everyone looks forward to Spectrum addressing the needs and issues of our region’s rental property owners, on-site leasing agents, portfolio managers and maintenance professionals.

We are excited to kick off the 2015 conference with a general session fea-

turing national speaker Dr. Ivan Joseph.

Ivan will open the day with his exciting session “The Skill of Self-Confidence.” In this fun, session, Ivan Joseph will show you how self-confidence is a skill that can be built to bring out your best in the ...continued on page 3

Advertise in Rental Housing Journal Valley Circulated to over 6,000 apartment owners, on-site and maintenance personnel monthly.

W W W. R E N TA L H O U S I N G J O U R N A L . C O M

Rental Housing Journal Valley

Creating An Annual Operating Budget ...continued from page 1 • Future profit projections from increased revenue: This could include rent increases, laundry revenue increases, the introduction of a utility reimbursement program (tenant pays utilities), etc. Where are you able to increase revenue at your property?

• Future revenue projections from new sources: Where can you find previously untapped revenue? Can you charge for amenities such as parking, storage, recycling or business/entertainment centers? Can you install vending machines in your common areas?

• Cash flow projections: With accurate cash flow projections you’ll be able to make strategic decisions about the allocation of revenue for improvements.

• Replacement reserves: Determine what percentage of gross scheduled income can be put aside for future use. For example, you might want to hold back 5% of all scheduled revenue or you can allocate a certain dollar amount annually per unit in your property.

Multifamily Property Expenses: • Projections for lowering current expenses: Are your mechanical systems operating at peak efficiency? You may be able to lower utility bills with systems that operate efficiently. Can you contest your current property tax payment amount?

• Review third-party vendors and service providers: Conduct annual reviews of your property vendors such as

services that provide lawn care, cleaning, trash removal and property insurance. Let them know they will be up for annual review for cost and service. Do your service providers have pending increases?

• Utilize the know-how of your service providers: Ask your vendors for efficiency/cost saving suggestions (property improvements or services they can provide) and budget accordingly.

• Property management: Review all fees such as leasing, maintenance and onsite management (if applicable). Are you satisfied with the performance of your manager? Are their fees as projected?

Most multifamily and apartment building management soft ware programs will generate a budget-to-actual income and expense report for comparison. Ask for this report. A budget is nice but you must compare it to the actual property financials.

Investment Property Analysis Assumptions (Drivers) Using the following or similar assumptions, you or your property manager can project all income and expenses over a 12-month period beginning with the current month. You can change these variables at any time. It’s a good idea to run several scenarios using both conservative and aggressive assumptions.

The following assumptions are used for example only. You will need to deter-

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8am to 11:30a

mine your own variables based on your particular investment market.

• Vacancy (7%)

surprise expenses. These funds are commonly referred to as replacement reserves and include: • Common area improvements such as new paint, lighting, vinyl, carpet, parking lots and driveways.

• Income Growth (5%) • Expense Growth (3%)

• Major building systems repair or replacement such as windows, roof, boiler and air conditioning.

• Cap Rate (7%) • Expense Ratio (40-45%) These assumptions will help you determine the best and worst case scenarios and will assist you in planning budgets for the long term. You can create 24-month, 36-month or 48-month projections using assumptions. For example, you can predict your property value over the long term at different cap rates and net operating income. This can help you set targets for increasing revenue and lowering expenses.

For national averages read or download the National Apartment Association 2015 Survey of Operating Income & Expenses in Rental Apartment Communities at this link.

Investment Property Capital Improvements Planning and Projections In addition to predicting regular, recurring expenses your budget should include projections for major capital improvements. For example, you might want to paint your common areas (halls, stairs, entry, mail room, laundry, etc.) every three years.

Planning for long-term improvements allows you to stagger the improvements over time. By doing this you can avoid

• Individual unit upgrades.

A Final Note on Your Annual Operating Budget Use your annual operating budget as a tool. Plan to hold quarterly budget reviews with your property manager and/ or your team at the very minimum. An annual budget can drastically maximize your profits when used as designed.

Theresa Bradley-Banta is the founder and CEO of Denver, Colorado based Theresa Bradley-Banta Real Estate Consultancy, offering a highly skilled sounding board for the professional commercial real estate investor’s ideas and investment strategies. The company provides education and mentorship for entry to mid-level investors seeking reality-based strategies for buying and owning multifamily properties. Bradley-Banta is the author of the book Invest In Apartment Buildings: Profit Without The Pitfalls. Visit theresabradleybanta.com. Reach her at (303) 733-4400 or theresa@theresabradleybanta.com.

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SWV Fair Housing Fair Multifamily NW’s SWV Council is proud to bring you this first annual SWV Fair Housing Fair! On Wednesday, November 18th join us at the Valley River Inn for a full morning of Fair Housing training from experts in the field.

This great event will feature 3 hour-long presentations on important Fair Housing topics including Basics, Reasonable Accommodations and more! There will also be exhibitor booths, breakfast and great games and prizes!

Sign up by September 30th and take advantage of our early bird rate of $30 for members and $45 for non-members!

This is a great opportunity to make sure your team has the Fair Housing training they need. Don’t delay - take advantage of this great deal right away.

3 CEUs

Suppliers & Sponsors We haven’t forgot about you!

Exhibitor tables and great sponsorships are available for this event. Email kristen@multifamilynw.org for more details.

Don’t miss this opportunity to brush up on your Fair Housing knowledge!

16083 SW Upper Boones Ferry Road, Suite 105 Tigard, OR 97224 TF - 800-632-3007 Fax - 503-213-1281 info@multifamilynw.org www.multifamilynw.org

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Rental Housing Journal Valley · September 2015

Rental Housing Journal Valley

Budgeting and the Beginner’s Mind apply this to the annual budgeting process for our assets?

The over-simplified budgeting process: take last year’s budget, compare it with actual, split the differences and add 3% to revenue categories and 2% to expense categories. Done. Next! So much for thoughtfulness, professionalism or being connected to reality. Budgeting can be a “value add” proposition, assisted by the beginners mind perspective.

In Any Circumstance there are Many Possibilities Annual budgeting must take into account the realities of each asset; the

By John Wilhoit Jr. physical asset and its market. A picture teve Jobs had an affinity for Zen. perfect asset with 300 newly built units One of the concepts he deployed in across the street in a market with slow business from this perspective was “the beginners mind”. In its most basic absorption has to factor in the impact form “the beginners mind” allows us to of the new competition. These factors believe that in any circumstance there are should be reflected in the budget.

Tony Golsby-Smith wrote a blog many possibilities. Interesting. Can we for Harvard Business Review entitled

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“Is Your Budgeting Process Killing Your Strategy” (http://blogs.hbr.org/ cs/2011/01/is_your_budgeting _process_kill.html). This thought shines an entirely different light on the budgeting process. While it is important to work through the minutia of asset-specific budgeting, this process must also take into account effects on the larger organization.

How do we accomplish this? With the beginners mind; by believing that in any circumstance there are many possibilities. Static number crunching that entails moving last year’s actuals into next years column precludes original thought. The originality necessary in this process is taking current market dynamics into consideration during the budgeting process.

This view may require utilizing additional facets of your existing “suites” soft ware, or re-deploying marketing savings into customer premiums to gain

retention. Or, taking savings from utility usage reductions and deploying these dollars into staff training with measurable results.

Consider the annual budgeting process as more than a perfunctory, number crunching, exercise. There is more to this than making assumptions and passing them up the food chain. Thinking of budgeting as a “value add” process makes the entire endeavor much more exciting, and potentially profitable.

Published with permission by MultifamilyInsight.com

Spectrum ...continued from page 1 workplace and in life.

The 2015 Spectrum curriculum focuses on the current market with several sessions dedicated to timely issues such as: “Customer Service in Today’s Market”, “Marijuana Rules & Regs” and “Public Relations 101: A Primer.”

All of the classics are back. Including sessions on fair housing, landlord/tenant law, resident retention and communications. We are also bringing national market perspectives with speakers on market trends from CoStar and marketing techniques from the National Apartment Association.

For rental property owners, Spectrum has many outstanding workshops, including: “Best Practices for Single-Family Management” and “Where the Wild Things Are: Managing Single-Family Homes.” Spectrum’s maintenance offerings include: “Flooring 101”, “Plumbing Basics” and “Basic Electrical.”

Property Management Industry Educational Conference & Trade Show September 24, 2015

FEATURING:

Ivan Joseph

There is something for everyone – so get signed up today!

Don’t miss this exciting day! See the full list of classes and register for the 2015 Spectrum show at www.multifamilynw.org. Admission to Spectrum includes lunch, workshops and access to the amazing trade show floor. Attendance is $100 for members and $150 for non-members. Most Spectrum classes qualify for Continuing Education Credit for Oregon Broker’s and Property Manager Licenses.

SPECTRUM is brought to you by Multifamily NW.

www.rentalhousingjournal.com

The Skill of Self-Confidence

With a Ph.D. in sports psychology, Ivan Joseph shares studies that apply in business and life. He put these studies to use in his work – he coached at the World Championships and took a collegiate soccer team from a losing record to the National Championship in just 5 years.

28 great classes to pick from, including: Resident Retention Customer Service Leadership & Communication Single-Family Management Fair Housing Landlord Tenant Law Maintenance And more!

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Ticket price:

$85/members $125/non-members Visit:

16083 Upper Boones Ferry Road, Suite 105 Tigard, Oregon 97224

multifamilynw.org for more info and to sign up today!

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7/9/15 6:47 PM

Rental Housing Journal Valley

Budgets

Don’t Miss Opportunities To Evaluate Employees and Vendors

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udget season is right around the corner. It’s that excruciatingly tedious time full of spreadsheets and brain cramps, take-out meals and extra pots of coffee, or glasses of wine, in some cases. Managers know budgets are critical to a successful business, but they are often difficult and can sometimes feel like a 1000 piece puzzle that’s missing a few pieces and has a few pieces from other puzzles mixed in. Often, we end up rushing at the end and relying a little too much on the budget and results from the previous year and can miss some other important opportunities to fine tune our business success pushing into a new year.

Two such often over looked, or at least somewhat under appreciated opportunities are taking closer examinations of our personnel and our vendors.

When it comes to budgeting for people, it can be very easy to look at our employees like commodities. For example, we often take a mind set like this: Based on projections, we have budget for 5 sales reps and 3 admins. Or, this complex is big enough for a manager, 4 leasing agents and 5.5 maintenance techs.

While this sort of thinking is absolutely part of the equation, each year I like to dig a little deeper and consider the actual humans, their strengths and weaknesses in each position.

Maybe Carlos and Tiffany make enough sales calls to adjust their programs to incentivize them to each produce 60% more this year, so you can cut one sale position and save a base salary.

Perhaps Erin is better at multitasking than Joe, so she can handle the phones while also doing the account payable and allow him to focus on his sales support duties without distraction. Could this free up Joe for a few hours a week late in the day so he can make cold calls for Carlos & Tiffany? Or, is Joe just in over his head with the sales support regardless, and simply needs to be replaced?

I recommend doing employee reviews shortly before budget season.

Often, I find that information gleaned from reviews helps with your staffing budget process. You not only get a sense of what each employee has accomplished since their last review, you can take their temperature on where they see themselves going and what else they might be able to bring to the table in the future. Employee reviews offer a wonderful opportunity to find out what your people think about the current operation of your business and what they feel might work better. We don’t always feel we have the time or patience to hear all employee suggestions or input, but we cannot deny the fact that such feedback can be invaluable. You never know when Erin stepping up to handle the phones,

so Joe can focus on sales support will lead to an additional 3 appointments a week for Carlos and Tiffany and a nice increase in revenue while saving you in personnel expenses.

The second area of opportunity that I often see overlooked at budget time is examining the vendors that you’re using.

Again, it’s not uncommon to get annual bids from vendors, but so often it begins and ends with shopping your current providers against their competition on price. While price is important, quality, customer service, and terms are just as important.

One maintenance company might charge $10 less than the others for basic maintenance and apartment turns, but if it takes them 25% longer or if you often have to bring them out to repair their own mistakes, then it’s not worth it.

Similarly, if you have to wait on scheduling, a returned phone call in a time of need, or if you have trouble getting a vendor to make good on their word, you might want to consider interviewing other suppliers.

When it comes to vendors, I like to examine what sorts of products and services I actually want and need for my business while looking at budgets. Looking ahead into the next year, is there any products or services that your company is not currently using that could be a ben-

CITY

I am an: OWNER

Designer/Editor Kristin Flores – kristin@propubinc.com

Budgets are rarely fun, and can certainly be daunting, but it’s important to give them the time they deserve.

While doing so, make sure you’re not missing any less obvious opportunities to examine what you might be able to tweak to make your operation more efficient and more profitable.

By Will Johnson Publisher Rental Housing Journal

NAME

ADDRESS

Publisher Will Johnson – will@propubinc.com

efit? Is there any new technology or way of accomplishing some current business need that might be a better alternative to what you’re using now? What products and services have you been allocating budget to that you simply do not need?

All of these are important questions to ask and do a little research on.

Payment and finance terms are also an important thing to consider when choosing a vendor. Some vendors will require payment up front or at the time of service or delivery. Others will offer 30, 60 or even 90 days with varying interest rates. Make sure you take this into consideration with your projected cash flow situation. If all else is more or less equal having 60 days to pay rather than paying upon delivery allows for a lot of flexibility when managing your cash flow.

Advertising Sales Will Johnson – will@propubinc.com Terry Hokenson – terry@propubinc.com Larry Surratt – larry@propubinc.com

Rental Housing Journal Valley is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in Investing & Real Estate Investor Quarterly

www.rentalhousingjournal.com The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

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Rental Housing Journal Valley · September 2015

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Rental Housing Journal Valley

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s a rental owner, most of the properties hubby and I purchased were vacant or were our primary residence before being turned into rentals. We did have instances however, when we purchased a property with a tenant in place, and in my career as a property manager, certainly it happens all the time. The procedures do vary depending on whether you have a monthto-month (MTM) agreement in place or a fixed-term lease (FTL). So, step by step, here’s how I approach the changeover.

Whether the tenants are MTM or FTL, I send a nice letter introducing myself and letting the tenants know the effective date of the change, where they should pay rent in the future, and how to make maintenance requests.

For MTM tenancies (or tenancies with only a verbal rental agreement), I also include a new rental agreement and addendums for them to sign and return to our office. I add a sentence that basically says, “Enclosed you will find a new rental agreement and addendums, please sign and return them to us within 30 days.

Should you fail to do so, this is your official 30-day notice of our intent to change the terms and conditions of your rental agreement. Whether you sign and return the documents or not, all the provisions

Taking Over an Existing Tenancy therein, shall take effect 33 days from the date this letter was mailed.” This is the easy part. More often, the difficult part is no application, uncommunicative or uncooperative tenants, or fi xed-term leases that are contrary to your current practices. But in the case of MTM tenancies, this “official notice” will cure any waiver problems that could have been created by the previous owner or manager for failing to enforce their terms and conditions, and establish that there’s a new sheriff in town.

Should your tenants decline to return the forms, there is also some risk that you would not have proof that they acknowledge receiving the forms. If you take over a property built before 1978, the EPA audits you, and you have no signed form from the tenant acknowledging that they have received the pamphlet, “Protecting Your Family from Lead in the Home,” they will not be happy about that, to say the least, and you could incur substantial fines. If the former owner/manager didn’t get one to them, you could inherit a major problem. So, can you make your tenants sign these forms? Not really, but you can serve a 30/14 (Notice of Termination with Cause), which would give them the choice to sign or vacate.

Fixed-term leases present more difficulty as their terms are “fi xed,” so while you can request that the tenants sign your lease, you cannot require it without

agreement of all parties. For example, if you took over a lease that set the late fee at $25 and requires you to provide lawn care, you are stuck with those terms until the lease expires. You can, however, change things like where to pay rent and make maintenance requests. I have been pleasantly surprised on many occasions though, when tenants in a lease will agree to sign new forms. Also, if there was a missed addendum such as the LeadBased Paint Addendum that never got properly signed, I believe you can press this issue as it is simply an acknowledgment, not a change in the terms.

Illegal provisions in a rental agreement are another potential hassle that you may inherit from the previous owner/manager. Remember that a tenant cannot waive their rights under landlord-tenant law (even with their agreement), so if you have inherited a defective agreement, whether MTM or FTL, and the tenants won’t sign a new one, and you’re choosing to not push the issue, just don’t attempt to enforce those provisions. Some common illegal provisions that have crossed my desk include usurious late fees; premature grace periods, such as three days instead of the minimum four; allowance for abuse of access; and unreasonable restrictions on legal activities, such as no overnight guests or visiting children.

Habitability issues can also rear their ugly head, so be careful in regards to the condition of a property you purchase or take over for management.

If there are substantial problems, I would decline to purchase or manage until or unless the tenants were removed so that I don’t inherit a legal claim for damages from the prior owner/manager.

Should you choose to take on that risk, deal promptly with all true habitability repairs.

What if you take over a property containing a difficult tenant? If they are in a FTL, you will just have to find a way to put up with them through the term of the lease unless they directly violate their rental agreement. With MTM tenants, you can serve a no-cause notice of termination, as long as the termination is not retaliatory for any protected behaviors such as reporting maintenance issues, complaints about neighbors, organizing a tenant rights group, or for being a member of a protected class, among other things. I’ve had people (somewhat jokingly) say, “Well, I’ll just raise the rent $300 a month and they won’t be able to afford it and will have to move out!” ...continued on page 8

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Rental Housing Journal Valley · September 2015

Rental Housing Journal Valley

Dear Maintenance Men

By Jerry L’Ecuyer & Frank Alvarez Dear Maintenance Men: Because of the drought, we have left our yards to dry out and the grass to die.

One issue I have is the mature trees on the property. Grass and plants are easy to replace, however the trees are another thing altogether. How do maintain our trees and still conserve water?

Margret Dear Margret: The extended drought we are experiencing is tough on everything and sacrifices must be made. However we think a line must be drawn at our trees. The method we recommend to save the trees and still be draught aware is in the use of soaker hoses. The placement of the soaker hose is important. Visualize the shape of a tree with its truck and canopy of branches and leaves. The edge of the canopy is known as the “Drip Line” of the tree.

This means that any “rain” or moisture that falls on the tree will be absorbed by the tree’s feeder root system at the drip line. To take advantage of these thirsty roots, place a soaker hose at the drip line or edge of the tree’s canopy. A soaker hose is very water efficient and puts water exactly where you want it. Water the trees at least twice a week and for a couple of hours at a time. The water will soak deep into the soil where it is needed without waste. The trees will be much happier and you will be using and conserving water efficiently.

Dear Maintenance Men: I am trying to do my part to conserve water and have found my toilets are the biggest offenders. The toilet constantly fills every five or ten minutes. I have replaced the fill & flapper valves but the problems persist. I’m at my wits end about this! What can I do besides replacing the toilets?

Benjamin Dear Benjamin: Leaks at the Flush Valve are possibly caused by a damaged flush valve seat ...continued on page 8

Portland Apartment Report ...continued from page 1 Higher cap rates were obtained in properties purchased to the east of the core at an average of 60 basis points higher, while properties farther north on Interstate 5 and into the state of Washington sold at cap rates that were nearly 130 basis points higher. Tight operations will continue to draw buyers this year and drive down cap rates.

are adding households and increasing demand for local apartments, as net absorption tops prior peak levels, and further momentum is expected in the long term.

Developers are responding with a new high in apartment completions, which may slightly exceed annual demand for the first time in the recovery.

This is likely to occur just in the short term, considering the area’s job market and the tight vacancy rate that is below replacement. Construction is concentrated in downtown to just west of Interstate 205 to meet demand for a livework-play lifestyle. Those residents who are unable to lease one of these units will commute to suburban areas along major transportation routes, continuing to push down the metro’s average vacancy rate. Robust occupancy will boost average effective rent this year to a new peak.

Apartment investment sales are strong in Portland’s core and along major transportation routes. Core-based assets were sold at higher price points, with the price per door generally rising as investors travel east of the river. The metro’s average first-year returns compressed to 6 percent in the past year, and assets traded 120 basis points lower in northwest and southeast portions of the city.

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2015 Annual Apartment Forecast Employment: Expansions in payrolls will add 35,000 positions or 3.9 percent to the employment level in 2015, which will be led by professional and business services. Employers created 31,000 jobs in the prior year.

Construction: Developers will add 5,700 apartments to the metro, increasing stock by 6 percent this year; most projects are scheduled to be delivered in the second half of the year. This is the most deliveries in three decades and an acceleration from 2014, when 4,300 rentals were delivered.

Vacancy: Strong hiring and household formation is adding residents to well-located apartments. Although many will lease up space in the core, other households will seek suburban units near transportation routes and other nearby employers. Yet, the most construction in years will add 50 basis points to vacancy, which will end the year at 3.3 percent.

Rents: Average effective rent will advance 7.1 percent to $1,119 per month in 2015 as new units are quickly absorbed.

Local average rent broke the $1,000 mark in 2014, rising 7 percent last year.

Demand from new workers will continue to boost average rent in the long term.

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BEFORE

AFTER

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Rental Housing Journal Valley

Taking Over

...continued from page 6

Unless your unit was under-rented by that amount prior to your taking over, and you can prove that to a judge, this is called Constructive Eviction, and it is illegal.

Just like other areas of life, courtesy and kindness go a long way to drawing people to your way of thinking.

Transitions can be particularly difficult for some people and a pleasant, calm, helpful demeanor is always a good idea. I have occasionally had tenants who struggled with the transition at first, but then settled down, so don’t assume that the first reaction you get will be how things go forever. I also had a mentally ill tenant who refused to accept the transition, kept sending rent to the previous manager and was evicted by us for non-payment. You can’t make everything perfect, but in most cases, your attitude will definitely influence the response from your new tenants, so be mindful of that and your chances of a successful transition will increase exponentially.

This column offers general suggestions only and is no substitute for professional legal advice. Please consult an attorney for advice related to your specific situation.

By Tia Politi

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Dear Maintenance Men ...continued from page 7 which may have a hole or the rim is pitted or cracked. The seat is the large drain hole at the bottom of the tank. A temporary repair may be to sand the seat with a steel wool pad or wet/dry sandpaper.

This will remove the calcium build-up.

If the seat is damaged, replacing the seat will be the next option. “Fluidmaster, Inc” makes a Flusher Fixer Kit that can be cemented directly on top of your old worn flush valve seat. This is a quick fi x that may not work on all toilets. If the seat kit does not work, you will need to replace the valve seat.

This can be accomplished by removing the tank from the base of the toilet: Turn off the water to the fill valve, disconnect the water line and remove any water from the tank. Unscrew the two or three brass bolts under the tank and carefully lift the tank off. Once the tank is removed, turn it upside down. Remove the rubber

“Spud” washer from the tank. Spin the large nut from the threads and then push the valve seat through the tank. Reverse the procedure when installing the new valve seat. Always install a new “Spud” washer and new brass bolts and washers.

Be sure your toilet tank is installed level, as this will aid in its operation. The new flush valve will give the rubber flapper a smooth seat for a positive seal.

Dear Maintenance Men: I hear people talking about winterizing their buildings. I grew up on the east coast were that meant something!

In Southern California, what “Winterizing” could we possibly be doing?

Jonathon Dear Jonathon: In California and many western states, “Winterizing” simply means we switch from light shorts and white T-shirt to dark shorts and a long sleeve T-shirt!

When it comes to your building, “Winterizing” California style is simple.

Start from the top and go down.

Inspect your roof; replace any loose tiles, shingles etc. Caulk all flashings around fireplaces, vent pipes, siding to roof transitions and skylights. Remove any junk on the roof, clean your gutters, and secure any loose gutters. Test your gutters with water to make sure they are pitched correctly and check your gutter downspouts; make sure they direct the water away from the building. If you have any floor drains, clean out and snake them. Caulk any wood seams, window

trim, stucco cracks, vents and any area that might soak in water during a rainstorm. Check your sprinkler timers and adjust the duration and days watered.

Depending on water restrictions in your area; to keep your grass green all winter; fertilize and seed with Rye grass. During windy, rainy weather, trees may touch both the side and roof of your building, trim any branches that may cause damage. Secure any weak or young trees or bushes that may fall in a storm. These simple winterizing steps will help keep you dry and off of the roof during winter weather.

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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Rental Housing Journal Valley · September 2015