Rental Housing Journal Valley January 2017

Page 1

Rental Housing Journal Valley

January 2017

2. The How and Why of Becoming a Really Likable Property Manager

4. Dear Maintenance Men – Slab Leaks, Safety Bars and Shaky Ovens

3. U.S. Housing Worth Record-High $29.6 Trillion in 2016

5. How to Find and Choose the Best Mortgage Lender for You

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

Two Property Managers Shot During Eviction At Portland Apartments

More than One in 10 Homeowners Underwater as Housing Market Nears Full Recovery

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ven as home values approach the highest levels reached during the housing bubble, 11 percent of homeowners with a mortgage are underwater, according to the third quarter Zillow® Negative Equity Reporti The share of homeowners who owe more on their mortgages than their homes are worth has dropped by nearly two-thirds since the housing bubble burst four years ago. Nationally 5.3 million homeowners were in negative equity in the third quarter, meaning they owe more than their homes are worth. At the peak in Q1 2012, 15.7 million homeowners were underwater on their mortgages.

continued on page 7

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wo property managers for Community Development Partners, working at the Cascadian Terrace Apartments in Portland, were shot and wounded by a tenant during an eviction “due to behavioral issues” in late December. Both managers, a 45-year-old man and 64-year-old woman, were treated for serious but not life-threatening injuries and are recovering, police said. The evicted tenant is being held on attempted murder charges. “Assault detectives booked 65-yearold Reynaldo Diaz Cabrera, the evicted tenant, into the Multnomah County Jail on two counts of attempted murder,” according to a release from Portland police. “On Monday December 19, 2016, at 12:36 p.m., North Precinct officers responded to the report of a shooting at the Cascadian Terrace Apartments, located at 5700 North Kerby Avenue. As officers were responding to the scene they learned

continued on page 6 Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007

P

Portland Had Largest Housing Worth Growth in 2016

ortland had the largest housing worth growth among the largest housing markets in 2016, growing 13.4 percent for the year, according to a new study. The total value of the U.S. housing stock grew to a record-high $29.6 trillion in 2016, according to a new Zillow analysis. The housing market saw a strong year of appreciation, growing 5.7 percent in value, or $1.6 trillion. The U.S. housing market has regained all the value lost during the housing crisis. The cumulative value of all homes in the U.S. declined by $6.4 trillion between 2006 and 2012 as the housing market collapsed. continued on page 6 PRSRT STD US Postage PAID Portland, OR Permit #5460

Text REALESTATE-ROI to 44222 to receive a digital copy of this year's Real Estate Opportunities in Investing (ROI) Finding Investing Success in Today's Housing Market


Rental Housing Journal Valley

The How and Why of Becoming a Really Likable Property Manager By Marc Courtenay, www.propertymanager.com

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s I listened to this long-time property manager describe his losses I was astounded. “These ungrateful owners don’t deserve me. I’ve worked hard for them and their residents and this is what I get?” Although this man was intelligent, his people-skills and mannerisms were brash, condescending and curt. Nobody enjoys the company or doing business with a person who abruptly talks down to the them. Like many folks, he didn’t seem to realize he was being rude and abrasive. After patiently waiting for him to finish his heartfelt, self-justifying oration, I asked him, “What’s your plan to solve this problem?” Apparently that was what he was hoping I had up my sleeve…some answers and a plan to help him. I thanked him for his confidence and told him I’d get back to him after giving the matter more thought. After reflecting on the property managers I know or have heard about who are well-liked by both their clients and their tenants, I came up with the following action-steps below. • Talk to people who know you well, care about you, and are able to be blunt with you. Ask them to tell you the facts about how you affect them and make them feel. Seek the painful truth.

take a deep breath, let the person know you’ve heard them, and pause. In that awkward but powerful pause ask yourself, “Am I in the right frame of mind to respond courteously.” • When pausing before responding, consider asking for a “time out.” It’s often appropriate and thoughtful to say, “I want to think about your concerns carefully and get back to you later.”

• Have a business conversation, a face-to-face meeting with a client or resident. Ask permission for someone to video you and you only. Tell the other person it’s for your “self-evaluation.”

based on trust. Who do you know who is a good example of authenticity? Emulate them sincerely and ask for a little coaching as well.

• After seeing the video and recovering from the many surprises, begin a list of ideas for self- improvement. Watch the video as many times as you can until solutions arise in your mind.

• Practice being a focused listener. Instead of focusing on how you’ll reply, zero in on understanding what the speaker is saying and then ask relevant questions. As I often say, “People don’t care how much you know until they know how much you care.”

• Be certain you come across to others as authentic and genuine. We all want to have relationships

• Choose to respond rather than react. If you’re being confronted with accusations or demands,

• Make being reliable a top priority in all your relationships. Clients, residents, family and friends need to be sure they can count on you. Be punctual, don’t keep people waiting and be a person of your word. The property manager I shared these 8 suggestions with took them to heart. Although he still has a tendency to be condescending and reactive, he’s becoming a more likable person and professional. Instead of losing clients and good residents, he’s attracting more than ever. His personal life is more peaceful and satisfying too. Most of all he’s more “comfortable in his own skin” as he describes it.

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Rental Housing Journal Valley · January 2017


Rental Housing Journal Valley

U.S. Housing Worth Record-High $29.6 Trillion in 2016 The national housing market gained $1.6 trillion over the past year, a 5.7 percent increase from 2015

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he total value of the U.S. housing stock grew to a record-high $29.6 trillion in 2016, according to a new Zillow® analysis. The housing market saw a strong year of appreciation, growing 5.7 percent in value, or $1.6 trillion. The U.S. housing market has regained all the value lost during the housing crisis. The cumulative value of all homes in the U.S. declined by $6.4 trillion between 2006 and 2012 as the housing market collapsed. A home is typically the biggest part of an individual or family’s wealth, and the cumulative value of the U.S. residential housing stock is similarly significant to the national economy. The U.S. GDP is an estimated $18.7 trillioni, nearly $10 trillion less than the value of all homes in the country. Los Angeles and New York metros hold the highest shares of the country’s overall housing value, at 8.6 percent and 8 percent, respectively. The next most valuable metro is San Francisco, worth 4.2 percent of the overall housing value. While several markets are now more valuable than they were at the height of the housing bubble, about 60 percent of the markets in the U.S. are still below

the maximum values reached during the bubble years. For example, Chicago is still about $134 billion below the highest value it reached in 2006. “Housing is incredibly important to us personally and to the economy as a whole,” said Zillow Chief Economist Dr. Svenja Gudell. “The U.S. housing stock is worth more than ever, which is a sign of the ongoing housing recovery. As buying a home gets more expensive, affordability remains a concern for many, and these numbers highlight just how much people are spending on housing. The total value of the housing stock grew nearly 6 percent this year, a pace that will likely mean some American families are priced out of homeownership.” Renters this year paid $478.5 billionii, a $17.7 billion increase from 2015. About 635,000 new renter households formed in 2016, contributing to the amount of rent spent even as rent appreciation slowed. Apartment renters spent nearly $50 billion more than renters of single-family homes, as more multifamily construction became available this year. Renters in the New York/Northern New Jersey metro paid the most this year, spending nearly $55 billion on rent.

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Locks Tenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) understands that the additional pet(s) are not permitted unless the landlord gives ten Ceilings ant(s) written permission. Tenant(s) agree to keep the above-listed pets in the premises subject to the following terms and conditions: Electrical Outlets

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

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United States New York/Northern New Jersey Los Angeles-Long Beach-Anaheim, CA Chicago, IL Dallas-Fort Worth, TX Philadelphia, PA Houston, TX Washington, DC Miami-Fort Lauderdale, FL Atlanta, GA Boston, MA San Francisco, CA Detroit, MI Riverside, CA Phoenix, AZ Seattle, WA Minneapolis-St Paul, MN San Diego, CA St. Louis, MO Tampa, FL Baltimore, MD Denver, CO Pittsburgh, PA Portland, OR Charlotte, NC Sacramento, CA San Antonio, TX Orlando, FL Cincinnati, OH Cleveland, OH Kansas City, MO Las Vegas, NV Columbus, OH Indianapolis, IN San Jose, CA Austin, TX Zillow Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

Total Home Value, Year-End 2016 $29.6 trillion $2.4 trillion $2.5 trillion $772.7 billion $456.9 billion $589.2 billion $373.2 billion $975.1 billion $818.8 billion $413.6 billion $672.7 billion $1.3 trillion $288.7 billion $440 billion $441.5 billion $571.4 billion $332.5 billion $596 billion $192 billion $254.7 billion $287.9 billion $377.5 billion $148 billion $286.6 billion $186.1 billion $269.4 billion $116.4 billion $187.5 billion $128.6 billion $116.8 billion $129.7 billion $175.9 billion $132.9 billion $111.7 billion $636.2 billion $161.4 billion

Total Rent Paid, Year-End 2016 $478.5 billion $54.6 billion $38.6 billion $14.9 billion $11.1 billion $8.5 billion $10.5 billion $14.4 billion $12.3 billion $8.4 billion $10.3 billion $15.8 billion $4.9 billion $7.2 billion $7.1 billion $8.8 billion $5.1 billion $9.6 billion $3 billion $5 billion $4.3 billion $5.8 billion $2.3 billion $4.5 billion $3.2 billion $4.4 billion $3 billion $3.8 billion $2.4 billion $2.3 billion $2.7 billion $4 billion $2.7 billion $2.4 billion $6.3 billion N/A

ii To calculate the total rent paid, we estimated the number of renter households in each metro area based on the U.S. Census Bureau’s 2005 through 2015 American Community Surveys (ACS), and households counts and metro-level homeownership rates from the Current Population Survey/ Housing Vacancy Survey (CPS/HVS). ACS microdata files were downloaded from the University of Minnesota, IPUMS-USA. We then summed the monthly Zillow Rental Indexes (ZRI) for each year, including a forecast for November and December 2016 ZRI. (Actual November December 2016 data were unavailable at the time of the analysis). Finally, we took the product of the estimated number of renter households and the summed ZRIs for each metro, and scaled the results by a rental stock adjustment factor, which controls for differences in the footprint of the rental stock and the total housing stock. The rental stock adjustment factor was derived from the historical and recent relationship between ZRI and monthly contract rents reported in the 2015 ACS for each geography. Either the most recent year’s adjustment factor or the historical average adjustment factor was applied to 2016 data depending on the model cross sectional performance.

Zillow is a registered trademark of Zillow, Inc. i https://www.bea.gov/newsreleases/national/ gdp/2016/pdf/gdp3q16_3rd.pdf

Essential Services

Rental Housing Journal Valley · January 2017 _____________________________ Landlord

sales@rentegration.com 02

Metropolitan Area

written permission.

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Rental Housing Journal Valley

DEAR MAINTENANCE MEN: Slab Leaks, Safety Bars and Shaky Ovens

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men:

Slab leaks! They are the bane of my existence! Turns out the problem is the hot water recirculation line. I’m trying to decide if I should fix it again or just abandon the line and remove the circulation pump and be done with it. What harm can it do? Do I really need a hot water return line for my residential units?

John

Dear John:

Unfortunately, dealing with slab leaks is almost a “rite of passage” for property owners or managers. First, let us demystify what a return line really is. Simply, it is a dedicated hot water line which loops from the water heater to the furthest unit, and back to the cold water heater inlet. Its purpose is to maintain hot water at each tap by assistance from the circulation pump. The circulation pump constantly delivers hot water through the return line or loop. A slab leak is a water line break under the concrete floor of a building. A water pipe under a concrete floor can leak for a long time before it is noticed or it can bubble up through cracks in the concrete depending on soil conditions. The most reported type of slab leak is on the hot water side of the plumbing and along the return line of the recirculating system. The reason for the return line being the most

popular leak point is because the water never stops moving and it wears away and corrodes the pipe. We do not recommend canceling the return line and removing the pump. This will cause other unintended consequence such as a slow delivery of hot water to many of the units in the building. The lack of a pump will waste water while the residents wait for hot water to come out of the tap which in turn will make the water heater work harder. Not only will this annoy the residents, it will cause the water

heating bill to go up. As for repair of the return line, there are a number of solutions. If the return line has chronic leaks, it is best to run a new line outside the slab. The old return is canceled at the pump and the furthest plumbing fixture in the building and the new line installed and routed back to the water heater. Another solution after the pipe is repaired is to limit the incoming water pressure with a pressure regulator and put a timer on the recirculation pump to operate only at peak demand times

such as morning and evening. Installing a water softener system will also help keep both the hot water heater and water lines from corroding as quickly.

Dear Maintenance Men:

I am installing safety grab bars in all of my showers & bathtubs and I need some guidance on the installation procedure. What do I need to know to install these bars correctly?

David

continued on page 8

Information Resources From the Multifamily NW website to regular communications and monthly newsletters we keep our members informed on the industry. Our biannual Apartment Report gives you the latest rent and vacancy data to stay competitive.

Professional Rental Forms Multifamily NW offers a full suite of Single-Family and Multifamily rental forms that are reviewed quarterly by a committee of experts and legal counsel. With over 100 different forms, we have you covered!

Professional Development Property Management has many facets. Whether you manage single-family or multifamily we are here to provide great opportunities for Leasing, Marketing, Financial Management, Forms Training and more! Nationally Recognized Designations through NAA are a great way to show your management expertise in the industry.

Legislative Action Government & Public Affairs Committee meets monthly to discuss the current issues facing the industry and provide support on behalf of our members. Legislative Alerts are regularly provided to members so that all are informed and ready for action.

Commitment to Charity Charity Events are a very important part of the Multifamily NW agenda. Annual golf events support housing charities around the state and the Service Committee hosts charity drives and events throughout the year.

Networking Opportunities Multifamily NW offers regular networking events throughout the year. It’s the perfect chance to connect with your peers to learn the tips and tricks that make your job easier.

Annual Events With 8 large annual events and counting, Multifamily NW is second to none for educational and networking resources. We offer great sponsorship opportunities to promote your business and are committed to promoting Members Using Members (MUM).

16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224  503-213-1281  503-213-1288  info@multifamilynw.org MultifamilyNW.org

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Rental Housing Journal Valley · January 2017


Rental Housing Journal Valley

How to Find and Choose the Best Mortgage Lender for You By Jenny Johnson. Eleete Real Estate

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hink about finding a mortgage lender the same way you think about finding a home to buy: There may be thousands of different possibilities and you may have to do some legwork, but in the end there’s going to be one that’s exactly right for you. Most consumers only deal with mortgage lenders a few times in their lives, so the amount of information to digest can feel overwhelming. Here’s a guide to understanding the language and choosing a direction.

Fixed or adjustable?

A mortgage loan is either fixed-rate, adjustablerate or a hybrid. Fixed-rate loans are exactly that – the interest rate you pay over the life of the loan remains fixed, and your mortgage payment never changes. Adjustable-rate mortgages typically adjust themselves to the financial landscape on an annual basis and rise or fall accordingly. And hybrid loans are fixed-rate for a number of years before changing to an adjustable rate. How long are you planning to stay in the home? If the answer is under 5 years, an adjustable loan may be right for you, because the payments are typically lower in the first years. If you plan to make this your forever home, the fixed-rate loan is more predictable and may be the better choice for you.

Direct lender or mortgage broker? tions and compare the answers just as you You can deal one-on-one with a single mortgage lender, such as a bank, credit union or a private company; they are called direct lenders because you are working with them face to face. If you are approaching several direct lenders, you must apply to each one individually. Or you can use a mortgage broker, a person who acts as a liaison between you and several possible lenders. In the case of the direct lender, you will have to do more research ahead of time to select the company. In the case of the mortgage broker, he or she does some of that work for you, getting quotes from a variety of different lenders. Interest rates and loan fees should be approximately the same with both approaches, though you may get a break if you have other accounts with your direct lender. Mortgage brokers charge more because they are acting as an intermediary, but that may be worth it for the comparison work they do. Either way, it is definitely to your benefit to get several quotes. A 2012 Stanford University study that researched FHA loans made in a six-week period showed that buyers who shopped for mortgages of $100,000 or $200,000 principal lost at least $1,000 and as much as $2,600 if they gathered only two quotes rather than four.

would in any other large purchase. Take good notes and ask the lenders to email or fax you Good Faith Estimates (GFE) and Truth-In-Lending (TIL) statements. When you have several candidates, interview them just as you would if they were applying for a job – because they are. They will be able to take your financial information and help you understand how much of a mortgage you can qualify for. Be sure you understand the following from each lender or broker: • What is the best interest rate can I get with your loan products, and when can I lock that rate in? • Am I eligible for any special programs? (Veterans or first-time home-buyers, for instance.) • How much down payment is required to get your best rate? • What will my monthly payments be with those terms? • What fees will I have to pay? (These are commonly called “points,” which you pay at closing. For every “point” that you pay, the lender will decrease your interest rate by 1 percent.)

• Are there prepayment penalties? You don’t want to be caught paying a penalty fee if you send in an extra mortgage payment once or twice a year. • Will I need mortgage insurance, and how much will that add to my payment? This information will give you a great basis on which to choose a lender. And you can check license information for the financial services provider you are considering at NLMS Consumer Access, which will also tell you how long the loan officer has been in business and whether he or she has been the subject of any selfreportedstate disciplinary proceedings. Jenny Johnson is Senior Real Estate Broker at Eleete Real Estate in Portland, Or. She has been a top producer representing buyers and sellers or homes and investment properties for over 14 years. Jenny.johnson@eleetere.com | 503-267-3412 | www.eleetere.com Free download: The Definitive Guide To Real Estate In Portland, OR by Jenny Johnson https://rentalhousingjournal.leadpages.co/ the-definitive-guide/

Conventional vs. government-inGathering information sured? With so many choices, where does a perConventional loans are private loans, and include those you would get from a bank, a credit union, a mortgage lender or an internet lender. Governmentinsured loans are guaranteed by the federal government, which includes Federal Housing Administration (FHA) and Veterans Administration (VA) loans. FHA loans can be attractive because both your credit score and the down payments can be lower; conventional loans can be attractive because with a highenough down payment, you can avoid mortgage insurance altogether. This and a lower interest rate will make your monthly payments lower.

son start? The same place you start when you are seeking a professional in any business: word of mouth. Do you have friends or relatives who have recently purchased homes? Ask about their lenders and their experiences. Your accountant, financial adviser or real estate agent can be another source of referrals. Spend some time on the internet looking through different deals from different lenders, just to familiarize yourself with the playing field. If you contact various lenders, remember that each of them wants to “sell” you their business, so you need to ask ques-

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Rental Housing Journal Valley

Two Property Managers Shot ...continued from page 1 that two people were shot by a known suspect who fled the scene,” according to the police release. “Officers and medical personnel arrived and located the two victims, a 45-year-old male and a 64-year-old female, suffering from serious but not life-threatening injuries. Both victims were transported by ambulance to a Portland hospital for treatment. “The suspect was located in a vehicle by police at Northeast Martin Luther King Jr. Boulevard and Winchell Street. The suspect was taken into custody without incident. A firearm has been seized as evidence. Preliminary information indicates that the suspect was formally evicted … and the victims are both employees of the apartment complex management,” according to the police department release. Community Development Partners, which owns the apartment complex, released the following statement about the two property managers shot during the incident. “We’re extremely saddened to hear that two exceptional individuals from the property’s management team were threatened and injured by a resident,” the company said in a release according to KOIN.com.

Largest Housing Worth Growth ...continued from page 1

“The resident was in the process of being legally evicted due to behavioral issues. We are pleased that the suspect is in police custody. We’re cooperating by offering law enforcement any information on the resident they request.” Resources: Two people injured in North Portland shooting http://www.portlandoregon.gov/police/news/ read.cfm?id=17825 Man allegedly shot apartment managers after eviction http://koin.com/2016/12/19/2-injured-in-northportland-shooting/ Evicted tenant held on attempted murder charges http://portlandtribune.com/pt/9-news/337050217134-evicted-tenant-held-on-attempted-murder-charges After eviction, suspect shoots apartment complex employees http://www.kgw.com/news/local/after-eviction-suspect-shoots-portland-apartment-complex-employees/373725577 Cascadian Terrace Apartments http://www.cascadianterrace.com/ Community Development Partners http://communitydevpartners.com/

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Highlights of the housing worth is an estimated $18.7 trillion, nearly $10 trillion less than the value of all homes in growth report include: • Los Angeles is the most valuable metro, worth a cumulative $2.5 trillion • Portland, Ore. had the biggest increase in value among the largest housing markets, growing 13.4 percent in 2016 • Renters paid a cumulative $478.5 billion in 2016, a 3.8 percent increase from 2015. “Housing is incredibly important to us personally and to the economy as a whole,” Zillow Chief Economist Dr. Svenja Gudell said in the release. “The U.S. housing stock is worth more than ever, which is a sign of the ongoing housing recovery. As buying a home gets more expensive, affordability remains a concern for many, and these numbers highlight just how much people are spending on housing. The total value of the housing stock grew nearly 6 percent this year, a pace that will likely mean some American families are priced out of homeownership,” he said in the release. A home is typically the biggest part of an individual or family’s wealth, and the cumulative value of the U.S. residential housing stock is similarly significant to the national economy. The U.S. GDP

the country. Los Angeles and New York metros hold the highest shares of the country’s overall housing value, at 8.6 percent and 8 percent, respectively. The next most valuable metro is San Francisco, worth 4.2 percent of the overall housing value. While several markets are now more valuable than they were at the height of the housing bubble, about 60 percent of the markets in the U.S. are still below the maximum values reached during the bubble years. For example, Chicago is still about $134 billion below the highest value it reached in 2006. Renters this year paid $478.5 billion, a $17.7 billion increase from 2015. About 635,000 new renter households formed in 2016, contributing to the amount of rent spent even as rent appreciation slowed. Apartment renters spent nearly $50 billion more than renters of single-family homes, as more multifamily construction became available this year. Renters in the New York/Northern New Jersey metro paid the most this year, spending nearly $55 billion on rent.

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Rental Housing Journal Valley · January 2017


Rental Housing Journal Valley

More Than One in 10 Homeowners ...continued from page 1 The numbers are another sign that the housing market has nearly regained the value lost during the recession, and is only 2.7 percent below the peak reached at the height of the bubble. Not all regions have experienced the same recovery, though, and some markets are still well below those bubble highs. Underwater homeowners can’t refinance to take advantage of still-low mortgage rates and they can’t sell their homes except in short sales, which keeps these homes off the market, contributing to low inventory.

Seven of the 10 large metros with the lowest rates of negative equity are along the West Coast, and also have strong economic markets. Fewer than five percent of homeowners are underwater in San Jose, San Francisco, Portland, Ore., Denver, and Dallas. In these metros, home values have also surpassed the highest point reached during the bubble, and are now higher than ever. Chicago and Las Vegas have the highest levels of negative equity, with 17 percent and 16.8 percent of homeowners underwater respectively. Home val-

ues in these markets remain well below their peak levels. “As the housing market recovers and home values rise, the number of homeowners underwater on their mortgages continues to drop,” said Zillow Chief Economist Dr. Svenja Gudell. “In addition to the individual homeowners who are underwater, negative equity affects the housing market as a whole, so this is good news not only for these owners, who are now able to either sell their home or at least regain some financial stability, but also for buyers who may find

more options now. I expect homes will gain value steadily, for solid economic reasons, and that negative equity rates will continue to fall.” Homeowners who have less than 20 percent equity in their homes may find it difficult to cover the associated costs of selling, such as agent fees, closing costs, and a new down payment if they are buying a new home. More than a quarter of homeowners with a mortgage are in this situation, known as effective negative equity.

Metropolitan Area

Percent of Underwater Homeowners

Total Amount of Negative Equity

Number of Homes in Negative Equity

Effective Negative Equity Rate

United States

10.9%

$479 billion

5,269,166

26.1%

New York/Northern New Jersey

10.0%

$40 billion

250,842

21.5%

Los Angeles-Long Beach Anaheim, CA

5.7%

$18.8 billion

90,452

14.0%

Chicago, IL

17.0%

$29.8 billion

277,867

33.5%

Dallas-Fort Worth, TX

4.4%

$5 billion

44,998

12.7%

Philadelphia, PA

11.8%

$10.7 billion

124,492

29.4%

Houston, TX

6.9%

$6.1 billion

59,000

19.4%

Washington, DC

12.4%

$19.9 billion

136,068

30.5%

Miami-Fort Lauderdale, FL

10.6%

$9.8 billion

88,840

21.1%

Atlanta, GA

13.0%

$10.8 billion

127,592

30.3%

Boston, MA

6.2%

$7.9 billion

49,005

14.3%

San Francisco, CA

3.7%

$5.9 billion

24,224

8.9%

Detroit, MI

12.2%

$5.8 billion

93,270

24.0%

Riverside, CA

10.5%

$8.3 billion

65,609

26.3%

Phoenix, AZ

11.2%

$9.1 billion

79,519

29.6%

Seattle, WA

6.6%

$6.8 billion

41,667

17.2%

Minneapolis-St Paul, MN

7.3%

$5 billion

48,956

22.4%

San Diego, CA

6.3%

$4.9 billion

27,452

18.1%

St. Louis, MO

12.6%

$4.2 billion

66,607

30.8%

Tampa, FL

10.5%

$3.6 billion

48,764

24.9%

Baltimore, MD

14.4%

$7.9 billion

73,895

34.4%

Denver, CO

4.4%

$3.3 billion

22,326

11.9%

Pittsburgh, PA

8.1%

$2.2 billion

33,395

19.8%

Portland, OR

3.8%

$2.1 billion

15,152

11.7%

Charlotte, NC

8.1%

$3.6 billion

34,268

24.2%

Sacramento, CA

7.6%

$3.6 billion

27,123

20.9%

San Antonio, TX

10.2%

$2.9 billion

30,933

28.3%

Orlando, FL

11.4%

$3.3 billion

39,743

27.0%

Cincinnati, OH

10.8%

$3.1 billion

43,385

29.6%

Cleveland, OH

14.6%

$3.3 billion

55,547

31.1%

Kansas City, MO

12.4%

$3 billion

44,646

33.1%

Las Vegas, NV

16.8%

$5 billion

49,809

36.8%

Columbus, OH

9.0%

$2.7 billion

31,314

24.1%

Indianapolis, IN

12.8%

$3 billion

46,772

33.9%

San Jose, CA

2.6%

$1.9 billion

6,905

6.4%

Austin, TX

6.6%

$2.2 billion

18,383

18.6%

Zillow® is the leading real estate and rental marketplace dedicated to empowering consumers with data, inspiration and knowledge around the place they call home, and connecting them with the best local professionals who can help. In addition, Zillow operates an industry-leading economics and analytics bureau led by Zillow’s Chief Economist Dr. Svenja Gudell. Dr. Gudell and her team of economists and data analysts produce extensive housing data and research covering more than 450 markets at Zillow Real Estate Research. Zillow also sponsors the quarterly Zillow Home Price Expectations Survey, which asks more than 100 leading economists, real estate experts and investment and market strategists to predict the path of the Zillow Home Value Index over the next five years. Zillow also sponsors the bi-annual Zillow Housing Confidence Index (ZHCI) which measures consumer confidence in local housing markets, both currently and over time. Launched in 2006, Zillow is owned and operated by Zillow Group (NASDAQ: Z and ZG), and headquartered in Seattle.

The data in the Zillow Negative Equity Report incorporates mortgage data from TransUnion, a global leader in credit and information management, to calculate various statistics. The report includes, but is not limited to, negative equity, loan-to-value ratios, and delinquency rates. To calculate negative equity, the estimated value of a home is matched to all outstanding mortgage debt and lines of credit associated with the home, including home equity lines of credit and home equity loans. All personally identifying information (“PII”) is removed from the data by TransUnion before delivery to Zillow. Overall, this report covers more than 870 metros, 2,400 counties, and 23,000 ZIP codes across the nation. i

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 information Rental Housing Journal Valley · January 2017

7


Rental Housing Journal Valley

Dear Maintenance Men ...continued from page 4 Dear David:

The use of handrails and safety bars help provide stability and extra support required by the elderly and people with limited mobility. Approved ADA grab bars are available in a wide variety of configurations, colors and finishes. The most common is the stainless steel or chrome finish. The grab-bars must be able to support a dead weight pull of 250 pounds. The preferred method is to bolt directly into the wall studs. This is not always practical, as the stud might not line up where they are needed. Grab-bars can be mounted vertically or at an angle to match wall stud spacing. If finding studs becomes a problem, alternate installation methods are available. If your walls are in good condition, you may use large toggle bolts or if you have access to the backside of the shower or bath walls, insert a backer plate or add a new stud for an anchor point. Safety grab bars can be located at any local hardware store. It is advisable that you check ADA requirements with

local, state and federal agencies for regulations governing height, distance & angle of the bars.

Dear Maintenance Men:

I was cleaning the kitchen stove in one of my vacant units and noticed the free standing stove tipped forward when I put a bit of weight on the open oven door. It looked a bit dangerous and was wondering how I can fix this issue.

Rick

Dear Rick:

You are very lucky it was you and not one of your resident’s children that found out about the dangers of a tipping oven. First let us explain what a tipping oven is: Most stoves with an oven are free standing appliances. The stove is placed in the kitchen, gas or electrical lines are installed and it is ready for use, very simple. The issue arises when a resident is using the stove and they or a child opens the oven door and puts weight on the open door. This causes a cantilever effect which may

pitch the whole stove forward causing the stove top pots or pans to fly off the stove and onto the person or child in front of the stove. Best case scenario is this causes a mess in the kitchen and worse case is a resident or child is badly burned or disfigured. It is not uncommon to hear about a small child wanting to see what Mommy is cooking by using the oven door as a stepping stool or even more common, removing a turkey, roast or other large item from the oven and placing it on the open door. The extra weight is enough to tip the stove forward. The solution is an “anti-tip bracket” installed behind the stove. An anti-tip bracket is “L” shaped and usually installed on the floor and against the wall (towards the back of the stove) for one of the rear legs to slide into. Replacement parts are available at any hardware or home center stores, however, if not installed, there is a good chance, it is still in the plastic bag tied to the back of the stove. Shut off the circuit breaker or gas line feeding the

Tenant Screening 4 Less...

stove, carefully slide the stove away from the wall, ensure a bracket isn’t installed (the last time the stove was slid against the wall it may have simply missed the bracket) and if not installed, search around for the original plastic bag. Hopefully, the instructions and template is still in the bag. Keep in mind installing an anti-tipping bracket is both a resident safety issues as well as an owner liability issue. This is a $10.00 part and a ten minute install that will keep both you and your resident out of hot water. Bio: If you need maintenance work or consultation for your building or project, please feel free to contact us. We are available throughout Southern California. For an appointment please call Buffalo Maintenance, Inc. at 714 956-8371 Jerry L’Ecuyer is a licensed contractor & real estate broker. He is currently on the Board of Directors and Chairman of the Education Committee of the Apartment Association of Orange County. Jerry has been involved with apartments as a professional since 1988. Frank Alvarez is the Operations Director and co-owner of Buffalo Maintenance, Inc. He has been involved with apartment maintenance & construction for over 20 years. He is also a lecturer & educational instructor. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance.com For more info please go to: www.BuffaloMaintenance.com

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