Valley Rental Housing Journal May 17

Rental Housing Journal Valley

2. President’s Message Multifamily NW 3. RHA Oregon President’s Message 8. Five Qualities & Habits of Great Property Managers

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

Real Estate Investors Beware!!

Seeding Change Protecting Your Single Family Rental’s Landscaping

Bills Being Considered in the Oregon Legislature, Spring 2017:

By Cliff Hockley, President Bluestone and Hockley Real Estate Services and Sperry Van Ness | Bluestone and Hockley his legislative session is challenged by many issues some of which will eventually be pushed aside in a fight to balance the budget. Senator Richard Devlin and his team have drafted a proposed budget that includes program cuts as well as tax increases.

At the same time many of the following bills are trundling through the House and the Senate and will affect many real estate investors. With this many bills the legislature is not a safe place to be if you are a real estate investor. Don’t hesitate to log on to the Oregon State Legislature at www.oregonlegislature.gov/ to track the progress of these bills.

• Get involved with your legislators and send them an email or letter continued on page 4

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By Cliff Hockley and Jeremy Boardman

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ort Studebaker was the owner of single family home rentals.

His rental agreement required the tenants to take care of the landscaping.

A simple concept you would think, but not really. First of all, the tenants didn’t really read the couple lines of fine print in his agreement and they knew nothing about landscaping or plants. More importantly even though they were moving in for what was usually a two year term, they had no landscaping tools.

The Dead Yard His last tenant turn really angered Mort. The tenants had not watered the grass all summer and it had died. It looked like a burned out mess. Years ago, Mort had installed a sprinkler system, but the tenants wanted to save on their water bill, so they decided not to turn on the sprinkler system .

In this case, before Mort could rent the house, he had to completely redo the yard at a cost of over $2000. He was sick and tired of fighting with his tenants over landscaping. Sure, Mort had obtained a security deposit from the tenants, but it would never cover the cost required to replace all of the grass in the yard and any additional damage to the house. As a result, he decided to modify his rental agreements to clarify the tenant responsibilities. He added the following: Tenant Responsibilities • Landscaping must be returned in original condition at move out.

• Mulch during tenancy.

• Grass must be kept at least two inches long , but not longer than continued on page 7

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

Elevated Home Prices Invigorate Seniors Housing Demand While Prospects of Healthcare Reform Raise New Questions

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he aging U.S. population is a major driver in today’s seniors housing segment. A weakened housing market as a result of the Great Recession encouraged many older Americans to extend stays in residences, and the homeownership rate of those older than age 75 peaked in the years that followed. A strengthened housing market, however, is prompting many seniors to sell homes and move into seniors housing communities, where broader access to care is available. While this has increased demand for seniors housing properties today, the segment is also preparing to receive an influx of residents over the next several years as baby boomers head into retirement and require the services of seniors housing communities, prompting a rise of new units. Majority assisted and indepen-

PRSRT STD US Postage PAID Portland, OR Permit #5460

dent living facilities are set to receive the bulk of deliveries for the foreseeable future, though the construction of memory care units is on the rise to meet increased demand that supports the care of seniors

with dementia.

Senior-care providers must balance industry changes. In an effort to reduce resident turnover, seniors-care operators continued on page 6

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

President’s Message Multifamily NW

Upcoming Calendar Vivienda Justa 101 - Español

5/10/2017

HR Issues: Using Salary Surveys

5/12/2017

It's the Law: Time to Part Ways: Terminating the Tenancy

5/15/2017

Landlord Tenant Law Part II

5/16/2017

Fair Housing for Leasing

Form of the Month - Co-Signer App. CO-SIGNER APPLICATION PROPERTY NAME / NUMBER UNIT NUMBER

ADDRESS

SAMPLE OWNER / AGENT _______________________________________________________________________________________________________________________________________________ PHONE NE ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ P OWNER / AGENT ADDRESS

MM / DD / YYYY

CO-SIGNER

CITY

CAM: Legal Responsibilities

__________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ __

INCOME CRITERIA

CO-SIGNER PHONE (__________________)_________________________________________ CO

______________________________________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

CURRENT LANDLORD NAME

CITY

STATE

______________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

ZIP ZI

________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

_________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ____ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ __

STREET ADDRESS (OR APARTMENT NAME)

STATE S

MM / DD / YYYY

LANDLORD PHONE (__________________)_________________________________________

______________________________________________

______________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ _ __

STATE

ZIP

__________________________________________________________________

PHONE (__________________)_________________________________________

______________________________________________

_____________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ____ ___ ___ ___ ___ ___ ___ __

GROSS MONTHLY L INCOME LY INC $__________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ARE YOU OU SELF-EMPLOYED? EMERGENCY CONTACT CT

Maintenance Tips, Tricks & Pitfalls

____________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ____ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

__________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

ADDRESS

DATE YOU MOVED IN

________________________________________________________________________________________________________________________________________________________________________________ _ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ __ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

__________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ __

CURRENT EMPLOYER

OTHER R MONTH MONTHLY INCOME: SOURCE SOU E

____________________________________________________ _ __ ___ __ ___ ___ ___ ___ ___ ___ ___ __

Y YES S

$____________________________

NO

/ SOURCE

ZIP

__________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

HOW LONG?

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____________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

_______________________________________________________________________________________________________________________________ _ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ __

$____________________________ ___ __ ___ ___ ___ __

PHONE (__________________)______________________________________________ PH ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ __ ___ __ ___ ___ __ ___

HAVE YOU EVER BEEN EVICTED, OR ARE YOU CURRENTLY IN THE EVICTION PROCESS? YES NO O IF YES, DATE DA

_______________________________ _ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

MM / DD / YYYY

HAVE YOU EVER FILED FOR BANKRUPTCY, OR ARE YOU CURRENTLY IN THE BANKRUPTCY UPTCY PROCESS? YES NO IF YES, YES DATE

_______________________________

WHAT

SCREENING

MM / DD / YYYY

YES NO IF YES, DATE HAVE YOU EVER HAD A HOME FORECLOSED ON, OR ARE YOU CURRENTLY IN THE HE FORECLOSURE FORECL RE PROCESS? PROC HAVE YOU EVER BEEN CONVICTED OF, OR PLED GUILTY OR NO CONTEST TO, ANY Y FELONY

Unit Inspections and Turnover Techniques (Salem) Forms and Notices: Violation & Termination

ounds for d he application. pplica denial of the 3. Inaccurate, incomplete or falsified information will be grounds

________________________________________________________________________________________ _ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ __

___________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

SOC. SECURITY #

____________________________________________________________

POSITION

5/31/2017

EMAIL EM L

___________ times mes (if bla blank, 4 time times) stated ted ren rent, and must be from a verifiable, legal 1. Monthly income must be equal toSAMPLE source.

MM / DD / YYYY

CURRENT STREET ADDRESS

CITY

Fair Housing: Pest Control

2. Each applicant will be required to qualify individually or as per specific criteria ria areas.

SAMPLE

_____________________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ __

_______________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

GOVERNMENT ISSUED PHOTO I.D. TYPE_____________________________________________ / STATE__________________ EXP. DATE_____________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ __ #__ ______________________________________________ _ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

STREET ADDRESS

5/30/2017

SAMPLE

______________________________________________________________ _ __ ___ __ ___ ___ ___ ___ ___ ___ __

SAMPLE

_____________________________________

OR MISDEMEANOR?

YES

NO

IF YES, WHO

_______________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

WHERE

_______________________________________________ _ __ ___ __ ___ ___ ___ ___ ___ __

WHEN

_____________________

MM / DD / YYYY

____________________________________

MM / DD / YYYY

___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

Owner/Agent has charged a screening charge as set forth th above. Owner/Agent ner/Ag gent may obtain ain a consumer c credit report and/or an Investigative e co-signer’s credit, c dit, income, income, employment, emp m Consumer Report which may include the checking of the rental history, and criminal court records and characteristic and mode of living. You have the right to request may include information as to his/her character, generall reputation, personal characteristics, e Fair Credit Reporting Act, ct, and a written summary of your rights pursuant to Section additional disclosures provided under Section 606(b) of the a of the information nformation provided to the he Owner/Agent by the screening company or the credit 609(c). You have the right to dispute the accuracy curate disclosure d nat re and scope sc reporting agency as well as complete and accurate of the nature of the investigation.

SCREENING COMPANY OR CREDIT REPORTING PORTING AGENCY AGEN COMPANY NAME ADDRESS

SAMPLE

_____________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ __

PHONE

2. Twelve months of verifiable employment be required yment will b equired if used as a source of income.

3. Applicants using self-employment records verified through the state corporation me income ome will have their heir recor quired to submit bmit records to verify erify their income, which records may include the commission, and will be required previous year’s tax returns. s.

RENTAL HISTORY CRITER CRITERIA 1. Twelve months of verifiable cont contractual rental history from a current unrelated, third party landlord, or home ual renta ownership, is required. uired.

2. Three or mor more notices application. es for nonpayment of rent within one year will result in denial of the applicatio more dishonored checks within one year will result in denial of the application. ored chec on.

3. Three hree or mor 4. Rental past due and unpaid balances to a landlord will result in denial of the ap application. ental history reflecting any pa cation EVICTION HISTORY CRITERIA TORY CRIT Five years off eviction-fr eviction-free history is required. Eviction actions that were dismissed resulted in for the issed or re n a jjudgment dgm applicant will not be considered.

CREDIT CRITERIA expenses) es) will result in denial of the application.

1. Ten or more unpaid collections (not related to medical expen CRIMINAL CONVICTION CRITERIA Upon receipt of this application and the screening ning fee, Owner/Agent will cconduct ndu a search of public records to determine whether applicant has a “Conviction”” (which means: cha charges pending as of the date of the application; ges pend financial fraud, including identity theft and a conviction; a guilty plea; or no contest plea), forr any crime involving finan forgery. Any Conviction within the last seve seven years will result in a denia denial of the application.

SAMPLE

______________________________________________________________________

SAMPLE

_____________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

SAMPLE EMAIL ___________________________________________________________________________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

SIGNATURE

5/17/2017

1. Current, positive, government-issued photo identification that allows Owner/Agent to adequately screen for dequ criminal and or credit history will be required.

__________________________________________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

PERSONS APPLYING TO BE RESIDENTS

DATE OF BIRTH

GENERAL STATEMENTS

SAMPLE

___________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

SAMPLE SAMPLE UNIT RENT $________________________________________ NON-REFUNDABLE SCREENING CHARGE $________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

CO-SIGNER FULL LEGAL NAME

OTHER

5/17/2017

(Applicable only if Owner/Agent does not have custom stom criteria.)

_______________________________________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ _

SAMPLE

_________________________________________

PREVIOUS NAMES, ALIASES OR NICKNAMES USED

5/17/2017

CRITERIA FOR CO-SIGNERS

ALL UNITS SUBJECT TO AVAILABILITY ABIL

TO BE COMPLETED BY EACH CO-SIGNER

OFFICE USE ONLY

5/10/2017

ter for housing policy in the state. HB 2004A which narrowly passed the House last month and had a packed committee hearing where landlords across the state vocalized their objections. Landlords affirmed that the answer is supply not creating draconian public policy. The bill faces an uncertain future if/when it reaches the Senate floor for a vote. Let’s hope that rationality and common sense prevail. Stay tuned for Breaking News from Multifamily NW for the latest in Salem!

Summer is nearly here and we’ll be putting on our Charity Golf Tournaments in Salem (Putt-Putt), Portland and in Eugene. Make sure to check out our events calendar on the Multifamily NW website. Multifamily NW remains your #1 resource!

Form M088 OR-WA Copyright © 2016 Multifamily NW ®. NOT TO BE REPRODUCED WITHOUT WRITTEN PERMISSION. Revised 11/29/2016.

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his spring has been very busy for Multifamily NW. We have had a laser focus on obtaining positive outcomes for the 2017 Legislative Session in Salem and mitigating the effects of the Portland ordinance. The association continues to deliver the education, forms, support and resources members depend on.

Last month the Spring Apartment Report with the latest rent and vacancy data across the state was presented to a capacity crowd at our bi-annual breakfast held at the Multnomah Athletic Club. Attendees were also provided the Barry Construction Report and our annual Multifamily Expense Report. The Speakers’ Panel included Andy Hahs, Lisa Nerheim, Kelly Cassidy and Keynote Jerry Johnson. In its

events and this spring has been no exception with the Maintenance Fair and Maintenance Mania held at the end of March. The Maintenance Fair honors the important role our maintenance professionals play in the success of our industry.

Coming soon is the ACE Awards ceremony will which will honor those across our industry who have proven as exemplary models to their peers. We’re thrilled to honor and celebrate all nominees and the leadership they provide to our industry in leasing, management, maintenance, support, compliance and more! There are still opportunities to sponsor and attend the ACE Awards coming on Thursday, May 18th at the World of Speed museum in Wilsonville.

The Oregon Legislative Session has been fast and furious. Our professional lobby team was on the ground running even before the session started on February 1st. They have been diligently meeting with legislators to educate them on the reasons that HB 2004A would be a disas-

Form M088 OR-WA Copyright © 2016 Multifamily NW ®. NOT TO BE REPRODUCED WITHOUT WRITTEN PERMISSION. Revised 11/29/2016.

Jeff Edinger 2017 Board President

11th year of publication, the Apartment Report has become an industry standard and resource for our market. Look for the next edition in October 2017.

Members and the public continue to depend on Multifamily NW’s educational offerings to stay updated in a quick changing regulatory environment. We offer frequent opportunities for members to attend classes in landlord/tenant law, fair housing and the other many legal responsibilities that come with operating quality rental housing. Committed to raising the industry together, our professional educational designations of CAM (Certified Apartment Manager) and CAMT (Certified Apartment Maintenance Technician) are offered throughout the year. These training opportunities educate professionals in the skills that are must-haves for industry mobility and advancement. Multifamily NW is ready to help you succeed!

The association is known for its large

I certify that the above information orm r atio is correct rm corr r ect and complete rr omplete and hereby authorize you to do a credit check and make any inquiries you feel r di re d t sta t ndi ta din di ing and ability abilililility t to serve v as ve a co-signer. I understand that giving incomplete or false information is grounds for necessary to evaluate my cre credit standing unders r ta rs t nd that t at if any information th rejection of this application. I understand supplied on this application is later found to be false, this is grounds for termination i in mati t ti of the tenancy of the residents. the Owner/Agent’s co-signer criteria. I am applying solely to act as a co-signer and s. I have v received ve r ceiv d and read re r re will not be occupying the unit. it

X CO-SIGNER __________________________________________________________________________________________________ DATE ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __

Electric Water Heaters

6/6/2017

Fire, Smoke Remediation

6/7/2017

CAMT: Air Conditioning

6/7/2017

Landlord Study Hall: Changing Landscapes: After the 2017 Session

6/9/2017

It's the Law: For Cause Notices: How to Get Them Right, the First Time

6/13/2017

Law and Rule Required Course (LARRC)

6/14/2017

HR Issues: Internal Investigations

6/14/2017

Fair Housing Stereotyping and Bias

MM / DD / YYYY

PHOTO I.D. VERIFIED BY

__________________________

TIME RECEIVED

__________________________

_______________________________

MM / DD / YYYY

(INITIALS)

SAMPLE OWNER/AGENT NOTES ________________________________________________________________________________________________________________________________________________________________________________________________________ ON SITE

6/6/2017

_______________________________

X OWNER/AGENT ___________________________________________________________________________________________ DATE RECEIVED

RESIDENT

PAGE 1

MAIN OFFICE (IF REQUIRED)

ON SITE

RESIDENT

PAGE 2

MAIN OFFICE (IF REQUIRED)

Co-Signer Application M088 OR-WA

This is a brand new form that addresses the unique issues of qualifying a co-signer to a rental agreement. Instead of having the would be co-signer fill out the residential application, this form is tailor made for the co-signer applicant, to make sure you collect all pertinent fields and disclose how the co-signer applicant specifically qualifies for this critical role of the Rental Agreement. Page two lists in detail the criteria for co-signers. Once approved, you’ll want to have the Co-Signer Agreement M026 signed to accompany the

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I am an: OWNER Publisher Will Johnson – will@propubinc.com Designer/Editor Steve Olsen – steve@propubinc.com

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

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

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President: Ron Garcia Vice President: Phil Owen President Elect: Mark Passannante Secretary: Lynne Whitney Treasurer: Sandra Landis

Ron Garcia, RHA Oregon President

S

ince 1927 the Rental Housing Alliance Oregon has set the standard for community participation by landlords providing affordable and quality housing.

I would say that the members of RHA Oregon represent some of the very best examples of self-sufficiency, entrepreneur-ism and community participation.

Let’s take a minute and explore who we are. We are not a committee, or a PAC. We haven’t just been around for years, or even for decades. We have been around for GENERATIONS. We are an alliance of property owners; people who have a vested stake in our community. There are people on our roster whose parents participated in RHA Oregon and who now have their own grown children who are also participating in this organization.

RHA has been hosting monthly dinners for so long that many of us who show up simply take them for granted. Yet volunteers like A.J. Shepard and Lynne Whitney spend countless hours planning the events months in advance; reserving the venues, negotiating the price for meals and tracking down relevant speakers and sponsors to share their expertise.

But it’s not just the beer and wine that we come for. We show up to network with other owners and learn directly or through osmosis from each other. More importantly, we get the chance to meet specialists in every sort of area – finance, repairs, debt collection, investors, insurance, emergency renovators, and more – and we form trusted relationships that become essential to our success and survival in this business. Nothing beats knowing the person and company on the other side of the line or email when we are desperate for assistance!

These sponsors form the basis of keeping us educated – year in and year out - as they explain the ‘need to know’ on city codes, energy conservation, risk man-

Past President: John Sage Office Manager: Cari Pierce

RHA Oregon President’s Message agement, screening guidelines. Members of RHA Oregon can take pride in knowing that they have the best in the latest information pool to acquire the working knowledge and stay on top of an always changing industry.

And when, like me, members sometime have a brain slip or a senior (or junior) moment, they know they can dial the office and Cari Pierce or another member of the RHA Oregon team is there to help talk us off the ledge - or repeat the simple step by steps in handling how to fill in the blanks on a notice that needs to be sent, or they help us out with what other options might be available to us. What a relief!

But of course, most of that working knowledge comes from, (what else??), THE FORMS that we all know and trust as the Number 1 reason that we continue to pay our membership dues. With each passing year the State Legislature comes up with something new, and we are never caught in the wrong when we get the updated forms. In today’s world this is critical. And, by the way, the forms come from the State’s most successful landlord attorneys (who are also members, and former and current board members of RHA Oregon).

Of course, knowing those regulations as they occur is just the second act to actually participating in the legislation – which our lobbyist Cindy Robert – does so well. She, along with members who have chosen to raise their hands like Phil Owen, Jim Herman, Jerad Goughnour, and I regularly meet with and participate in forums with the City and State leaders (and in the past, the Landlord Tenant Coalition) as well as the Fair Housing Council.

All of this is done to continue to stand up for our basic rights of property ownership in what seems like a tsunami of protest and erosion that feels as though it rivals nothing less than global warming.

So does it sound like I’m bragging?

What about men like John Sage, a successful insurance agent and expert in his field, who has spent countless hours involved in helping create and maintain The Good Landlord PAC, and now along with Mihyun Pratt are working diligently to upgrade our website. Or Katie Poole-Hussa, ‘LandLady Katie” who shares her knowledge freely in a monthly column and coordinates all of the classes as head of the Education Committee?

But I haven’t even begun to discuss the critical roles of people like Liz Carpenter who has spent years cultivating new members and directors, or Sandra Landis who volunteers to do our accounting.

Ami Stevens who devoted two years of her life to helping to re-brand and update our logo and marketing, or members like Cathy and Sue Herman and Sue Owen who work at registration and set up of every event to help make it go smoothly.

Or Alita who along with Tony Kavanagh has worked for years and years without fanfare or ceremony, still make sure that every month scores of men women and children who are living on the streets of our community are fed a decent meal, and help sponsor our annual Christmas Toy Drive to bring joy to the families of disabled veterans.

There is a huge heart and a great soul in The Rental Housing Alliance Oregon.

There is dedication of purpose and a sense of steadfast resilience that, like the

10520 NE Weidler, Portland, OR 97220 (503) 254-4723 • Fax (503) 254-4821 info@rhaoregon.com • www.rhaoregon.org

Ever-Ready bunny, just keeps going and going. So, more than being proud of participating or humbled to have the chance to be the current President, I’d like to simply encourage everyone reading this letter to pick up the baton and step outside of your comfort zone and habits and get more involved, because - even if it just seems like you are doing a chore like selling a raffle ticket or moving a table, like Alan Carpenter or Rita Robinson do every month with little recognition or expectations, the ripple effect magnifies many times over in what we can do together as a group and creates a bond that makes our cause strong.

So here is my question: Do we need to work together as a group? Has there ever been a more important time to stand up for our core values and principals and make sure the press and politicians get it right before they turn us into those greedy villains, as they portray us? Join us today and be involved. And thank you for all that you already do!

Ron Garcia Rental Housing Alliance Oregon President

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Rental Housing Journal Valley

Investors Beware ...continued from page 1 to let them know where you stand • Make phone calls • Deliver checks to people they to know for their reelection campaigns.

• Be prepared to make thoughtful and reasonable suggestions to the bills, do not rant • Coordinate your positions with the associations that are lobbying on your behalf • Make yourself available to lobbyists to give a face to their efforts; we need to bring a united front We have the key bills and legislative deadlines to help you track bills that affect you.

19 May 2017 This is the day second chamber bills must be heard by, in other words house bills must be heard by Senate committee and Senate bills by House committee.

The following bills have been introduced and deserve review. In the next three to four weeks we will see which one of these will survive the committees and need to be killed this session. Residential investors and developers need to pay close attention to HB 2004, HB2511 and HB 2724, HB 2939 and HB 3394. Commercial investors and developers need to pay attention to HB 2510 and HB 2939 and HB 3394.

SB 133 – In Senate Judiciary Committee have had a work session and there are amendments Places certain additional prohibitions and requirements on towers. Adds certain towing provisions, to existing rules gov-

erning provisions enforceable as unlawful trade practices. Reorganizes and consolidates towing provisions applicable to unlawfully parked and abandoned vehicles.

SB 259 – In Senate Human Services Committee Limits landlord to charging single applicant screening charge for applicant applying to rent multiple dwelling units owned or managed by landlord. Requires landlord to refund applicant screening charge if applicant qualifies but is not offered to rent dwelling unit.

SB794 – In Senate Human Services Committee Establishes Oregon Renter Assistance Program for purpose of providing temporary rent subsidies to tenants of privately owned rental housing.

Creates Trust for Oregon Renter Assistance Account. Creates tax credit for qualifying taxpayer that makes contribution to Trust for Oregon Renter Assistance Account. Applies to tax years beginning on or after January 1, 2017.

HB 2001 In House Human Services Committee Repeals statewide prohibition on city and county ordinances regulating rents.

Permits city or county to adopt rent stabilization program with certain restrictions. Imposes moratorium on rent increases greater than five percent for residential tenancies, with exceptions. Sunsets moratorium on July 1, 2018. Declares emergency, effective on passage.

HB 2003 – In House Human Services Committee Repeals prohibition on city or county ordinance or resolution controlling rent charged for rental of dwelling unit. Declares emergency, effective on passage.

HB 2004 - In the House Human Services Committee – This bill will come out of Committee and move over to the Senate. This Bill is moving - The tenants have staked all of their hopes on this bill.

Prohibits landlord from terminating month-to-month tenancy without cause except under certain circumstances with 90 days’ written notice and payment of relocation expenses.

Provides exception for certain tenancies for occupancy of dwelling unit or on property occupied by landlord as primary residence. Makes a violation a defense against action for possession by landlord.

Requires fixed term tenancy to become month-to-month tenancy upon reaching specific ending date, unless tenant elects to renew or terminate tenancy. Requires landlord to make tenants an offer to renew fixed term tenancy. Repeals statewide prohibition on city and county ordinances controlling rents. Declares emergency, effective on passage.

At the work session on the 30th of March the following key issues were discussed and added to the bill: The Bill: • Lifts rent control preemption - If cities decide to engage in “rent stabilization program”, they have to establish a process for fair rate of return • Adds appeals process for landlords • The Bill: • Lifts rent control preemption - If cities decide to engage in “rent stabilization program”, they have to establish a process for fair rate of return • Adds appeals process for landlords • With new construction, first five years outside of rent stabilization program

With no cause - 1 month (not 3 as in the original bill) relocation costs required.

Landlords not in sync with the termination laws will have to pay a penalty of 3 months’ rent to the tenant in addition to damages. Gives tenant one year (statute of limitations) to reach back and ask for resolution.

HB2240 - In the House Human services Committee Prohibits landlord from terminating month-to-month tenancy without cause.

Allows landlord to terminate month-tomonth tenancy without cause under certain circumstances or if landlord provides tenant with relocation assistance equal to three months’ rent. Requires landlord to provide 90 days’ written notice for tenancy renewal or termination under certain circumstances. Permits tenant to renew rental agreement if landlord did not invoke exception or terminate for cause.

Declares emergency, effective on passage.

Staff summary of amendments: Allows landlord to terminate monthto-month tenancy any time for no cause during the first six months of occupancy with 30-day written notice. Requires landlord to provide cause and 30-day notice when terminating a month-tomonth tenancy after first six months.

Requires landlord to provide cause and 30-day written notice prior to the specified end date for a fixed term tenancy.

Allows landlord living on property with two units or less to terminate tenancy at any time for no cause providing a 30-day

HB 2404 - In the House Energy and Environment Committee Requires Oregon Health Authority to analyze ground water contaminant data and provide education in areas with ground water contaminant problems.

Authorizes authority to make grants and loans for purpose of assisting rental property owners and low-income property owners with installation of treatment systems. Authorizes authority to make grants to local public health authorities and other specified entities for purposes related to ensuring safe ground water.

• Termination applies to month-to month tenancies • No cause notices still allowed in first 6 months of tenancy • Relocation costs only required for owners of five units or more

4

notice during first year or 60-day notice after first year of tenancy to tenant.

Allows tenant of month-to-month to terminate the tenancy with no cause providing a 30-day written notice to landlord. Allows tenant of fixed term tenancy to terminate tenancy with no cause providing written notice 30 days prior to either specified end date of tenancy or designated date in notice.

Requires a fixed term tenancy become month-to-month upon end of original fixed term if landlord does not offer renewal of fixed term tenancy. Provides exceptions for landlord providing cause for termination of month-to-month tenancy or avoidance of fixed term renewal if landlord provides 90-day written notice. Requires landlord of more than four dwelling units terminating tenancy under exception to state reasoning in notice and pay tenant one month’s periodic rent.

Requires landlord terminating tenancy under repair exemption to offer previous tenant a new rental agreement prior to new tenants. Requires landlord of more than four dwelling units terminating tenancy under an exception to give notice to tenant about reason and pay equal to one month’s periodic rent. Requires landlord terminating tenancy in violation of terms to pay equal to three month’s rent in addition to damages to tenant. Allows tenant to recover payment for violation and damages within one year after knowing the violation occurred. Applies to new or renewed fixed term tenancies after the effective date. Applies to month-to-month 30 days after the effective date.

Removes repeal of the prohibition on a city or county ordinance regulating rent of a dwelling unit. Amends statute allowing city or county to adopt ordinance or resolution implementing a rent stabilization program within jurisdiction. Specifies provisions of rent stabilization program including providing landlord fair rate of return, process for landlord to petition an increase in rent and exempts new residential developments for five years.

Thank you to Cindy Robert lobbyist for the Rental Housing Alliance of Greater Portland for her notes, she attended the hearing.

Rental Housing Journal Valley · May 2017

Rental Housing Journal Valley

Investors Beware ...continued from page 4 Establishes Safe Ground Water Fund and continuously appropriates money in fund to authority for purpose of making grants and loans. Appropriates funds for deposit in fund. Requires, for each dwelling unit rented by landlord for which source of drinking water is well, landlord to collect and test samples of drinking water from dwelling unit for arsenic, total coliform bacteria and nitrates. Becomes operative March 1, 2018.

HB2510 - Out of Committee and moving Relating to electric Vehicle Charging Stations. Authorizes commercial tenant to install on premises and use electric vehicle charging station. Declares charging station to be personal property of tenant unless different result is negotiated between parties. Declares emergency, effective on passage.

HB 2511 – Out of Committee and Moving Authorizes residential tenant to install on premises and use electric vehicle charging station for personal, noncommercial use. Declares charging station to be personal property of tenant unless different result is negotiated between parties. Declares emergency effective upon passage.

HB 2650 –In House Human Services Committee Prohibits landlord evaluating applicant for tenancy from considering crim-

inal history prior to performing criminal background check.

HB2724 – This Bill is moving out of Committee Relating to the Rent Guarantee Program: Directs Housing and Community Services Department to develop and implement Rent Guarantee Program to provide incentives and financial assistance to landlords that rent or lease to low income households by guaranteeing payments to landlords for unpaid rent and for eviction and property damage costs within certain limits.

Authorizes department to request proposals from and contract with program providers to administer program.

Requires collection of performance outcome measures and annual report to interim committees of Legislative Assembly on housing. Establishes Rent Guarantee Program Fund and continuously appropriates moneys to department for Rent Guarantee Program.

HB 2939 This Bill is in the House Revenue Committee and has a work Session scheduled on 4 April 2017 Limits rate of tax that city or county may impose on commercial construction.

This bill allows all cities to tax any amount of tax for new construction projects HB 2944 – No Activity as of the beginning of April 2017

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Limits landlord assistance under Housing Choice Landlord Guarantee Program to damages awarded in a judgment following a hearing in which landlord proves amount of damages.

HB 3394 - House Veterans and Emergency Preparedness Committee, hearing scheduled for 4 April 2017.

Authorizes local governments to assess system development charges for disaster resilience and mitigation. Requires 10 percent of system development charges for disaster resilience and mitigation to be spent on state disaster resilience and mitigation priorities and 90 percent to be spent on local and regional disaster resilience and mitigation priorities.

Mobile Homes /Manufactured Housing SB 277 – In the House Human Services Committee Increases notice period for termination of rental agreement and removal of manufactured dwelling or floating home.

Requires landlord to notify tenant of specific disrepair or deterioration causing termination and describe repairs necessary to avoid termination. Defines terms.

Declares emergency, effective on passage.

HB 2008 – In House Human Services Committee – Scheduled for a hearing on the 4th of April 2017 Requires landlord of manufactured

dwelling park to pay tenant necessary relocation costs or applicable manufactured dwelling park closure penalty, as determined by Office of Manufactured Dwelling Park Community Relations, upon closure of park to convert to other use. Requires owner of manufactured dwelling park to give notice of final sale to office upon sale of park. Prohibits landlord from terminating without cause, unless under certain circumstances with 90 days’ written notice, month-to-month tenancy consisting of rental of manufactured dwelling of floating home owned by landlord on space in facility. Requires fixed term tenancy consisting of rental of manufactured dwelling or floating home owned by landlord on space in facility to become month-to-month tenancy upon reaching specific end date, unless tenant elects to renew or terminate tenancy. Requires landlord to make tenant offer to renew fixed term tenancy. Requires office to produce materials to inform tenants of rights and adopt rules to require landlords to post materials in manufactured dwelling park public spaces. Directs office to establish and administer landlord-tenant dispute resolution program. Requires office to submit annual report on progress of program to interim committees of Legislative Assembly related to housing and human services for five years. Authorizes office to impose penalties for violations of landlord-tenant law against landlords of manufactured dwelling parks. Declares emergency, effective on passage.

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48-HOUR NOTICE TENANT(S): Windows OF ENTRY OR-RTG-24 Oregon __________________ __________________ ____________ ADDRESS: ____________________________________ __________________ Blinds/Drapes TENANT(S) : ____________________ ____________UNIT: ______________

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TENANT INFORMATION

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TENANT(S): ____________________________________________________ DATE:________ IN ADDRESS: ____________________________________________________ UNIT: _________ LIVING AREAS CITY: _________________________________________ STATE: __________ ZIP: _________ DESCRIPTION OF PET(S)

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Pursuant to RCW Doors/Woodwork 59.18.150, this is your Counter Tops 48 hour entering the dwelling notice that your la Locks landlord or their agents unit and premises located at (Address) ____________________ Cabinets will be ____________________ Ceilings ____________________ Sink __________ Electrical Outlets ________ on between the hours Floor of Garbage Cans (Date) and .

Windows (Time) TV Antenna/Cable (Time) The entry will occur Blinds/Drapes for the Fireplace ____________________ following purpose: __________ __________ Cleanliness Doors/Woodwork__________ ____________________ ____________________ __________________ ____________________ Locks ____________________ ________ Walls

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Light Fixtures

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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.

Disposal

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Floor

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Ceilings

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Light Fixtures Doors/Woodwork Locks Ceilings Electric Outlets

may be reproduced without written

Ceilings

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Essential Services Plumbing Heating

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Rental Housing Journal Valley

Senior Housing Demand ...continued from page 1 are striving to attract and service a wider range of residents. Advances in medical technology and the integration of third-party ancillary service providers are aiding in the convergence of independent living, assisted living, and memory care units. Meanwhile, healthcare reform, specifically related to reductions in Medicare and Medicaid reimbursements, are causing a shift in the skilled nursing segment. Some facilities are choosing to focus on short-term, post-acute care patients instead of serving long-stay, custodial- care residents in an effort to improve profit margins.

Investment Highlights REITs are focused on assisted and independent living properties, while restructuring portfolios by selling off skilled nursing centers. Rising inter-est rates,

however, could put up-ward pressure on cap rates, which average in the 7 percent to mid-8 percent range.

Memory care facilities are generating significant interest from private buyers, and initial yields for these assets range from 7 percent to 8 percent.

Private capital accounts for the largest share of skilled nursing transaction velocity. Unleveraged returns for skilled nursing p 2017 Seniors Housing Market Highlights Independent Living (IL): Occupancy up 10 basis points Occupancy at IL centers will rise 10 basis points this year to 91.8 percent as healthy demand for units persists in the wake of elevated construction. In addition, rent growth remains steady, rising 3.0 percent annually to $3,109 per month.

Assisted Living (AL): Occupancy down 40 basis points Mounting completions put additional downward pressure on stabilized occupancy this year despite healthy demand, and the occupancy rate falls 40 basis points to 89.3 percent by year-end.

The average monthly rent will climb at a healthy clip, rising 3.1 percent to $4,601 per month.

Skilled Nursing (SN): Occupancy down 40 basis points Occupancy at skilled nursing facilities will continue to dip despite units coming out of service, reaching 86.4 percent by year-end, a decline of 40 basis points. This dip will have little effect on rent growth and the average daily rate will rise 2.0 percent to $308 per bed per day.

Continuing Care Retirement Communities (CCRCs): Occupancy up 30 basis points The national stabilized occupancy rate at CCRC centers continues to rise this year, reaching 91.1 percent by year-end on a 20-basis-point annual increase. The average monthly rent will also advance, climbing 2.7 percent year over year to $3,189 per month in 2017.

Independent Living Facilities After rising consistently for five straight years, stabilized occupancy held firm in 2016, resting at 91.7 percent in the fourth quarter and remaining near its previous peak of 92 percent set in early 2008. Demand for IL units is strong with absorption rising from 2015 as more than 7,500 units were filled.

Majority IL inventory growth reached a seven-year peak during 2016 as de-

6

velopers brought nearly 9,400 units online. Completions during the year were well above the average annual deliveries during the span but remained below pre-recession levels. More than 19,000 IL units were under construction at the end of last year, suggesting that deliveries will remain elevated.

Rent growth at IL units strengthened last year as occupancy continued to remain near peak levels. A 3.4 percent advance pushed up the average to $3,017 per month. Strong demand for units in spite of rising deliveries over the past few years has facilitated a healthy pace of rent growth across the IL segment, a trend that will persist through the remainder of this year.

IL property sales declined by nearly half during the last year, largely due to a reduction in the number of portfolio deals occurring compared with the prior year.

The average price per unit held relatively fi rm, however, at $188,900, and first-year returns normalized in the low-7 percent area.

Outlook: Strong demand persists, though construction remains elevated in the IL sector this year, and the stabilized occupancy rate will end the year at 91.8 percent, up 10 basis points from 2016.

This will encourage a healthy pace of rent growth in the months to come, and the average will rise 3.0 percent year over year to $3,109 per month.

Assisted Living Facilities Supply additions outweighed demand over the past year as 11,050 AL units were filled, and occupancy fell below 90 percent for the first time since 2011. In 2016, occupancy declined 70 basis points year over year to 89.7 percent. With construction remaining elevated, occupancy is likely to retreat further this year.

The completion of nearly 17,700 majority AL units during 2016 reached the highest level of deliveries in seven years. Approximately 30,300 units were underway at the beginning of 2017, down slightly from the previous year. AL development makes up the bulk of seniors housing construction.

Rent growth for AL units continued to strengthen last year, advancing 3.5 percent annually to $4,464 per month. The gain in the average was the healthiest in the last eight years.

AL properties built since 1990 remain in the highest demand, accounting for approximately 65 percent of trades during 2016. While investors continue to heavily target Southern and coastal markets, Midwestern states such as Kansas and

Wisconsin are capturing a larger share of buyers. Last year, AL properties changed hands for an average $158,600 per unit, with initial yields in the low-8 percent area.

Outlook: Occupancy will stay relatively in line with levels over the previous 10 years, though supply-side pressure remains a concern for AL operators. This year, the rate will fall 40 basis points to 89.3 percent, and strong absorption trends will encourage rent growth to remain healthy, pushing up the average 3.1 percent to $4,601 per month.

Skilled Nursing Facilities Stabilized occupancy at majority SN centers fell 60 basis points during the last year to 86.8 percent, reaching an eightyear low. Occupancy is trending downward due to many factors, including changes in the care delivery model and reimbursements, though beds continue to be removed from inventory.

Majority SN inventory declined again in 2016 as approximately 600 beds were removed from inventory. In the previous year, SN stock fell by more than 1,000 beds, continuing a trend that has persisted for the past few years. The construction pipeline thinned significantly over 2016, with 4,900 SN beds underway at the end of the fourth quarter, compared with 8,300 beds one year ago.

The average daily rate at SN facilities continued to rise last year, largely due to the increasing cost of medical care.

During 2016, the average topped $300 per bed per day for the first time after climbing 2.4 percent. This was a slowdown from 2014 and 2015 when the average advanced 2.9 percent and 3.1 percent, respectively.

Price appreciation for SN facilities in many Southern, Northeastern and Midwestern states contributed to a healthy gain in the average price per bed last year, which reached $91,600, the highest level in five years. The average cap rate for SN assets hovered in the mid-9 percent area during 2016, remaining compressed when compared with prior years.

Outlook: In 2017, occupancy will fall 40 basis points to 86.4 percent despite the removal of additional units from service.

Rent growth remains healthy, with the average rising 2.0 percent to $308 per bed per day this year.

Continuing Care Retirement Communities CCRC occupancy has hovered between 90 percent and 91 percent for the past two years, ticking down 10 basis points in the last 12 months to 90.9 percent. As the number of units underway continues to diminish, occupancy should remain elevated through 2017.

Inventory of CCRC units grew by nearly 3,900 during 2016, the highest level of completions since 2009. The construction pipeline has thinned over the last two years, with the number of units underway peaking at the end of 2015. Currently 5,800 units are underway, suggesting that deliveries will temper this year.

After rising steadily for the past few years, rent growth for CCRC units strengthened. The average rent advanced 3.3 percent to $3,104 per month. Approximately half of all CCRCs require entrance fees, which averaged near $314,000 during 2016.

Nearly 50 percent of all CCRC properties trading during the last 12 months were built before 1990, and the sale of

Rental Housing Journal Valley ¡ May 2017

Rental Housing Journal Valley

Senior Housing Demand ...continued from page 6

Seeding Change ...continued from page 1

older facilities is reflected in the average price per unit. In 2016, the price averaged $107,800 per unit, down 25 percent from the peak achieved in 2014 when the bulk of trades were newer construction properties. Cap rates averaged in the low- to mid-7 percent area last year.

Outlook: Occupancy at CCRCs will rise 20 basis points this year to 91.1 percent as demand remains strong and completions taper slightly. This encourages rent to grow at 2.7 percent to $3,189 per month by year-end.

five inches.

• Water, weed and maintain all planter beds.

• Water all trees and bushes under six feet tall.

• Keep tree water bags full May – October when he supplied water bags.

• Water features must be kept filled, clean and free of debris and algae.

• Leaves must be cleaned up by December at the tenant’s expense.

He also gave the tenants the option to hire a landscaping company, of his choice, for approximately $150 a month. Finally, he also included some penalties for non-compliance. He was fair about this by giving them 15 days to clean up after the notices were mailed. If no cleanup was completed when he re-inspected, he put in place financial penalties that were in sync with state laws. If he drove by and saw the property looking great, he would send them a note thanking them for their efforts and usually included a $25 Starbucks gift card . If the work was not completed, the landscape addendum authorized him to hire a landscaper to clean up the property and bill it to the tenants.

Before he rented the houses out, he delivered the landscaping in excellent condition. He prepared the property for rent by: • Complete landscaping ‘clean up’ before new tenant move in

Accelerating Home Prices Unlock Demand for Seniors Housing Homeownership among the 75 and older age segment nears decade low. Following the Great Recession, single-family home prices fell nearly 30 percent, keeping many seniors from cashing out home equity and funding their transition into seniors housing. For those older than age 75, homeownership peaked at more than 80 percent in early 2013 as households extended stays and waited for the market to rebound. As single-family home prices have surpassed their prior peak over the last few years, the homeownership rate for this age segment has fallen closer to the long-term average of 75 percent, suggesting that many seniors are taking advantage of appreciated home values by selling and moving into seniors housing communities.

Sales of homes help seniors cover longterm-care costs. IL communities, in particular, are heavily reliant on private-pay residents, meaning seniors and their families must foot the bill to reside in the facility. Private pay is also the most common form of payment among long-term-care patients in all segments of seniors housing, and in many cases, it may be the only option available. The return of home prices to previous levels has allowed seniors to take advantage of untapped equity to help fund stays in senior care facilities, helping to mitigate the housing-related costs not covered by Medicare and Medicaid.

The information contained in this report was obtained from sources deemed to be reliable. Every effort was made to obtain accurate and complete information; however, no representation, warranty or guarantee, express or implied, may be made as to the accuracy or reliability of the information contained herein.

Sources: Marcus & Millichap Research Services; American Health Care Association; American Legislative Exchange Council; American Retirement Corp.; American Seniors Housing Association; Assisted Living Federation of America; BLS; Capital Senior Living Corp.; CoStar Group, Inc.; Council for Affordable Health

Annual Tasks: • Cleaning of gutters & downspouts • Winterize irrigation system Biennial/As Needed Tasks: • Tree and bush trimming • Fertilizing and over seeding grass Additionally, he took before “move in” pictures of the landscaping and the inside of the house and emailed a copy to the tenants when they signed the rental agreement so that they knew in what condition he wanted the property back. He also implemented a separate “Landscaping Addendum” to his lease that codified his expectations. This agreement had to be reviewed and signed by both parties at move in.

In the end, he was able to solve his problems with the new Landscaping addendum and was able to reduce his operating costs at the same time; something which all landlords strive for. If this story sounds like your Landlord experience, consider creating your own addendum.

You might even consider leaving some tools in the shed, but if you do that your Landscape agreement must include language with liability limitations if they use the tools and get injured.

Bluestone and Hockley Real Estate Services

• Fresh mulch when the season required it Insurance; Eli Research; Economy. com; Irving Levin Associates, Inc.; NIC Map Data and Analysis Service (www. nicmap.org); Real Capital Analytics; TWR; Ziegler Capital Markets Group.

National Seniors Housing Group Al Pontius Senior Vice President, National Director Specialty Divisions Tel: (203) 672-3300 | al.pontius@marcusmillichap.com 750 Battery Street, Fifth Floor San Francisco, California 94111 Prepared and edited by Jessica Hill Market Analyst | Research Services For information on national seniors housing trends, contact: John Chang First Vice President | Research Services Tel: (602) 687-6700 | john.chang@marcusmillichap.com © Marcus & Millichap 2017| www.

MarcusMillichap.com

• Lawn cutting and edging. Walkways, decks, patios and fences pressure washed if necessary

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

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S

Five Qualities & Habits of Great Property Managers

By Marc Courtenay ometimes life is what happens while we’re making other plans. Other times life feels like it’s in the palm of our hands waiting for our decisions about what we want to make happen next. Maybe that’s the way our lives are supposed to

feel. One of the things I know for sure is that you can learn a great deal about successful property management by watching those who are adroit at it.

One of my “pet projects” is studying the habits, qualities and characteristics of highly successful property managers.

Through the years I’ve discovered some consistencies they all seem to share.

The first is what I call “brilliance”. I don’t mean they’re extra smart nor have an unusually high Intelligence Quota (IQ). Their “brilliance” shines in their daily approach to their work. Like this article implies, they’ve learned from other brilliant managers and they’ve applied what they’ve learned. They’re willing to take the time to study the characteristics and successes of others.

The second quality, one that becomes habitual, is that great property managers have an extraordinary amount of curiosity. Since they are, either by nature or self-discipline, observant professionals, they keep their eyes and ears wide open

Tenant Screening 4 Less...

Tenant Screening 4 Less...

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for better ways to accomplish. They’re not afraid to ask questions, do research, and delegate to others the task of finding solutions.

They’re obsessed with growing and evolving. They seem to innately know that something that they don’t know is holding them back from reaching their full potential. They’ll go to seminars, join associations, listen to self-improvement CDs and watch DVDs. As the father of Self-Actualization, Abraham Maslow, would say, “They must become all that they must be!”

Humility is a key quality and component of their character. They’re not driven by their egos and they don’t care a hoot about becoming arrogant. They like achieving abundance and success, but they’re not compelled by an insatiable appetite for wealth and power. With their humility comes a sense of altruism and a desire to know they are making a positive contribution to society. They derive great satisfaction in serving the needs of their clients and residents.

They strive for excellence without being perfectionists. Perfectionism will drive you to distraction! Wanting to be their “personal best” and to challenge themselves away from mediocrity and complacency describes these high achievers.

They learn from their results.

To gain more understanding about the qualities and characteristics of outstanding property managers, I encourage you to read a book (or listen to the audio version) like “Good to Great” by author Jim Collins.

Property Managers are in many ways similar to companies and corporations.

Why do some stay stuck, implode or wither why others “make the leap” from being good to becoming great.

“How can good companies, mediocre companies, even bad companies achieve enduring greatness?” When that question is answered, it can almost always be applied to individuals and partnerships.

“For years, this question preyed on the mind of Jim Collins. Are there companies that defy gravity and convert long-term mediocrity or worse into long-term superiority? And if so, what are the universal distinguishing characteristics that cause a company to [become] great?” After an intensive 5 year study Collins and his team of researchers found some amazing similarities.

Those in the property management industry can benefit from insights and ideas that articles like this one or a book like “Good to Great” offers. Knowledge and awareness will provide the power and the “fuel” to help propel you to the next level of personal growth and rewarding achievements.

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Rental Housing Journal Valley · May 2017