June 2017
Rental Housing Journal Valley
3. RHA Oregon President’s Message 5. Win, Win: Improving Cash Flow for Renters and Property Managers 6. Tia’s Tips for Better Rental Management
EUGENE · SALEM ·ALBANY · CORVALLIS WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC
Five Ways Managers Can Perk Up Employees this Summer
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by OfficeTeam uman resources managers report workers may feel less productive in the summer and want more flexible schedules, while fewer companies offer flexible schedules, according to a new research. In addition to wanting more flexible schedules in the summer, employees also want the ability to leave early on Fridays, a more relaxed dress code, and events such as company picnics. However trends involving those employee desires have reversed since 2012, according to the survey from Office Team, a Robert Half company. Now fewer companies are offering these benefits with a decline in flexibility of hours and leaving early on Fridays. Also the most common employee behavior that managers see is employees not planning well for vacations. “It’s natural for employees to get distracted when the weather’s nice and thoughts turn to plans outside the office,” Brandi Britton, a district president for OfficeTeam, said in a release. “But savvy companies maintain staff productivity and morale by embracing summer in the workplace. “Letting employees modify their schedules, leave early on Fridays or dress more casually when it’s hot out are easy ways to keep them loyal and engaged,” she said in the release. ...continued on page 5 Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007
Top Regret for Home Buyers and Sellers is Not Prepping Soon Enough
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With the 2017 home shopping season approaching, Zillow reveals data-driven tips for buyers and sellers
he home-buying season is gearing up to be one of the most competitive in recent history, as the shortage of for-sale homes is keeping inventory tight and prices high. Buyers and sellers hoping to be successful should start the process early, according to the 2016 Zillow Group Report on Consumer Housing Trends. Of over 13,000 U.S. residents surveyed, the number one regret for both buyers and sellers was not starting their home search or prepping their home to sell soon enough. U.S. home values across the nation are up 7.2 percent over the past year, and there are three percent fewer homes to choose from than a year ago, according to the January Zillow® Real Estate Market
Reports.i “This spring, both buyers and sellers should be prepared for fast-moving sales, intense negotiations, and even bidding wars,” said Jeremy Wacksman, Zillow Group chief marketing officer. “Home shoppers and sellers are motivated to become more strategic and knowledgeable about what’s happening in their neighborhood. Understanding whether you are in a buyer’s or a seller’s environment will help you manage your expectations and will give you insight into what you’re going to need to bring to the table in order to close the deal.” The Zillow Group Report on Consumer Housing Trends reveal strategies for how to buy and sell in today’s highly compet-
itive market.
Buyers:
• Keep your options open. More than half (52 percent) of buyers said they also considered renting, and more than one third (37 percent) of first-time buyers seriously considered continuing to rent. Savvy shoppers will have a Plan B in place, hoping to buy if it works out, but willing to sign a lease for a home if they don’t make a deal by the time they need to move. • Be realistic with your budget. Once you set it, stick to it: firsttime home buyers are more likely ...continued on page 3
Can I Say “No Pot In My Apartments” When It’s Legal In My State?
by John Triplett
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regon Governor Kate Brown this month signed a bill that prohibits marijuana retailers from keeping or sharing customer’s personal information. According to reports, she said she was concerned about the Trump administration’s future actions when it comes to the legalized pot industry which employs 13,000 people in Oregon. So when pot is legal in a state, what issues does this present to property managers and landlords of rental properties? Property managers are often confused and seeking to better understand how to handle the issues of legal marijuana and medical marijuana when it comes to tenants and rental housing in their states. Laws are changing all the time in many states as voters approve different levels of permission when it comes to marijuana. This leaves property managers trying to figure out what should be in their leases
PRSRT STD US Postage PAID Portland, OR Permit #5460
around the issue. You may be able to ban smoking, but do you really know what your tenants are eating or growing in their apartments? Do you really want to know if they are good paying tenants? Rental Housing Journal did a recent interview with Seattle, Washington attorney Bret Sachter, an expert in tracking the progression and transformation of marijuana laws, to discuss some common questions property managers have about marijuana and tenants. “I’ve been asked this a lot,” Sachter said, “but it does not come up as often as you might think. The overarching issue here is that, with few exceptions, people can do what they want to protect their property, even if the prohibited behavior is not illegal. You can prohibit smoking, prohibit pets, but with marijuana it’s much easier because it is federally illegal. So you can
pretty much prohibit it if you want to no matter what, even medical marijuana,” Sachter said.
4 Questions About Pot, Tenants and Apartment Leases
Sachter says in terms of Fair Housing issues, and the U.S. Department of Housing and Urban Development (HUD) it is a situation where HUD wants it in the lease that marijuana is illegal but enforcement is another issue, he said. It is not so much that HUD wants landlords to evict over ...continued on page 7
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
held on Thursday, May 18th at the World of Speed Museum in Wilsonville. ACE is our annual night of honoring the hard working members of the rental housing industry and celebrating their achieve-
Leasing Associate of the Year Rookie of the Year Single-Family Manager of the Year Senior Housing Manager of the Year Maintenance Tech of the Year (1-99 units) Maintenance Tech of the Year (100-199 units) Maintenance Tech of the Year (200+ units) Maintenance Manager of the Year (1-99 units) Maintenance Manager of the Year (100-199 units) Maintenance Manager of the Year (200+ units) Portfolio Manager of the Year Assistant Manager of the Year (1-99 units) Assistant Manager of the Year (100-199 units) Affordable Housing Manager of the Year (1-199 units) Affordable Housing Manager of the Year (200+ units) Compliance Specialist of the Year Property Support of the Year Property of the Year (Built within 1-10 years) Property of the Year (Built 10+ years) Renovated Property of the Year Property Manager of the Year (1-99 units)
ments and outstanding service to their properties and residents. The categories at the ACE Awards recognize nominees in Leasing, Single-Family properties, Affordable Housing properties, Mainte-
It’s truly an honor to spotlight the professionalism and dedication of all ACE nominees. Congratulations to all nominees and winners! Coming up on Thursday, July 20th the 31st Annual Multifamily Charity Golf Tournament will be held at the Reserve Golf Club in Aloha, Oregon. We’re thrilled to support our three housing charities doing great things for those with higher barriers to housing: Human Solutions, Hope Lift, and Housing Independence. Contact the Multifamily NW office to participate!
Christina Wroblewski, Sequoia Equities Myles Glover, Berkshire Communities Scott Lowry, Sleep Sound Property Management Kim Schellman, Cascade Management, Inc. Victor Pizarro, Cascade Management, Inc. James Darghty, Princeton Property Management Coty Kuhns, Sleep Sound Property Management Matthew Ruecker, CTL Management, Inc. Christopher Ludwig, Sequoia Equities Frank Grandstaff, CTL Management, Inc. Rita Crawford, Sequoia Equities Andrea Flores, Cascade Management, Inc. Vanessa Moreno, Prometheus Real Estate Group Katie Barber, Guardian Management Corina Ferris, GSL Properties, Inc. Allison Christensen, Guardian Management DeeDee Meisenbach, Sequoia Equities Hassalo on Eighth, American Assets Trust Harrison Tower, Sequoia Equities Canyon Creek, Greystar Residential Melissa Waters, Cascade Management, Inc.
Upcoming Events for June 2017 6/13/2017 Law and Rule Required Course (LARRC) 6/14/2017 HR Issues: Internal Investigations 6/14/2017 Fair Housing Stereotyping and Bias 6/15/2017 CAM: Human Resources 6/15/2017 Fair Housing Basics with a Historical Perspective 6/20/2017 OSHA/Safety Prep 6/21/2017 Membership Luncheon - Legislative Update 6/28/2017 New Hire Class 6/29/2017 Client Trust Accounts 7/11/2017 Strengthening Front Line Skills for Maintenance 7/12/2017 CAM: Resident Experience 7/12/2017 HR Issues: Employee Coaching
nance, Portfolio Management, Compliance, Property Support and more! Here are the winners in each category:
Form of the Month Abandoned Property Release – M045
OREGON
ABANDONED PROPERTY RELEASE AS DATE __________________________________________ PROPERTY NAME / NUMBER ___________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ RESIDENT NAME(S) ___________________________________________________________________________
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UNIT NUMBER ___________________________________ STREET ADDRESS ___________________________________________________________________________________________________________________________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ ___ ___ ___ ___ __ CITY ___________________________________________________________________________________________________________________________________________________ STATE TAT TA ATE ____________________________________ ZIP _____________________________________________________________ ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __ ___ __ ___ ___ ___ __ STA ___ __ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ ___ __
I/we agree that all personal property left at the Premises mises upon termination rminatio of the he tenancy tena is or shall be considered abandoned and dis se of the personal persona property in i any manner chosen by Owner/Agent without that Owner/Agent may immediately sell and/orr dispose rty. Owner/Agent Owne Agent need not no comply with the provisions of ORS 90.425. giving notice or holding the personal property. Resident will be responsible for all costs incurred urred by Own /Agent to sstore and/or dispose of the personal property. Owner/Agent Residents. abandonment y all Reside s. If the abando ent is as the result of the death of a Resident who was the only This release has been executed by igned by the personal represent Resident, this release has been signed representative, designated person or other person entitled to possession of the personal property such as an heir or devisee. Facsimile, scanned and d e-mailed or electronic tronic signatures will be treated as original signatures. This release has been executed after termination term tion of tthe tenancy or no more than seven (7) days prior to tthe termination of the tenancy.
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Form M045 OR Copyright © 2015 Multifamily NW ®. NOT TO BE REPRODUCED WITHOUT WRITTEN PERMISSION. Revised 5/19/2015.
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pring into summer is always a busy time for our industry and the annual ACE Awards and Multifamily Charity Golf Tournament are highlights of the season. The 2017 ACE Awards were
This forms allows both the landlord and tenant to mutually agree that any items left behind may be disposed of without the customary notice periods outlined in ORS 90.425. This release can only be executed after a tenancy has ended, or no more than seven days prior to the termination of the tenancy.
MAIN OFFICE (IF REQUIRED)
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STATE
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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
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RHA Oregon President’s Message
Ron Garcia, RHA Oregon President
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started off a class on property management recently with a question to the attendees: “What do Landlords and Tenants have in common?” I was surprised that most of the group thought I was about to tell a joke. “They both blame the property manager.” “Lawyers.” “They both eventually die…” Really? It struck me that if a sincere question sounded like a set-up to a punch line, it may be time to review a few basic housing principles. I submit that what Landlords and Tenants have in common is that both parties want (and expect) to have safe, stable, and affordable rental properties. This does not seem to be overly-idealist or unattainable. In fact, in my 30 years as a rental property owner/manager, that pretty much describes my overall experience. Does it mean that I have never had a bad tenant? No. Does it mean that I have
10520 NE Weidler, Portland, OR 97220 (503) 254-4723 • Fax (503) 254-4821 info@rhaoregon.com • www.rhaoregon.org
never worked with a problematic landlord? No. What it does mean is that when things go sideways, like a repair that hasn’t been done, or a tenancy that spirals out of control, or demands that seem out of the ordinary, I know there are remedies available and procedures to follow to get through the issues. When things go upside down and either party over-reacts, digs-in, or behaves in bad faith - there are still remedies… but they tend to get more costly. By the time the string gets too wound around the axle, it may just be too knotted up to do anything but replace the axle! How do we avoid this? Don’t allow that to happen. Minimize your risks and maximize your incentives. The best defense is a good offense. Landlords should maintain the property and budget for repairs and improvements. Replace that old appliance with something nice. They should also maintain their professional and legal boundar-
ies to allow the Tenants’ right to habitability and privacy. Tenants should respect their home and communicate their needs courteously. And of course, they should stay current on their rent. Rather than focus only on their rights, both parties should spend time taking stock of their duties, and observe the Golden Rule. Like so many issues today, the extreme stories always get the most coverage. The only time landlords and tenants get in the news is because of outrageous conduct or bitter protests. Yet is that really a fair depiction of our industry? I don’t think so. The Rental Housing Alliance Oregon has been a resource for property owners for 90 years. Does it seem that Landlord – Tenant relations have deteriorated with time? Maybe – but I can attest that if we went back in time to visit the rental conditions from both sides, it would be easy to see just how much better we all have it now. I recently spent a day on a bus tour with
the Fair Housing Council of Oregon to view Portland’s history of discrimination. It was eye opening and heart wrenching. While we may all agree there is a lot more to do – it is quickly evident how much we have all improved our housing conditions, along with the infra-structure to continue to work for improvement. The Oregon Residential Landlord and Tenant Act can be intimidating to both sides, and it is not uncommon for either landlords or tenants to feel like they got the short side of it. Consider this story: A housewife called up a pet store and said, “Send me thirty-thousand cockroaches at once.” “What in the world do you want with thirty-thousand cockroaches?” asked the astonished clerk. “Well,” replied the woman, “I am moving today and my lease says I must leave the premises in exactly the same condition I found them…” Ha! Ha!
competition is now part of the process. Use search tools, like Zillow’s Agent Finder, to choose an agent based on sales and listing activity, area of expertise and reputation.
sellers who sold quickly and for more than list price worked with an agent, and two out of three (58 percent) began working with an agent at the very beginning of their selling journey.
• Communication is key. Make sure your preferred method – and frequency – of communication matches that of your agent. One third (33 percent) of all buyers preferred phones call with their agent over emailing (21 percent) or texting (15 percent). Buyers can use the agent reviews on Zillow to learn more about prospective agents and their clients’ experiences.
• Pay attention to your online curb appeal. The majority of buyers begin their search online. Sellers who sold their home for more than list price made imagery and home information available online: 48 percent had professional photos taken of the home, 30 percent shot video footage and 21 percent even shot drone footage. Zillow’s video walk-throughs gives sellers an easy way to show home features that are hard to capture in photos.
the home is on the market. Twenty-six percent of those who sold above list price took their home off the market once to adjust the sales price, opting to start anew rather than letting the home languish on the market with minimal activity.
Top Regrets ...continued from page 1 to exceed their budget than repeat buyers (39% vs 26%). Before you meet with a lender to determine how much mortgage you’ll be approved for, take a good look at your individual finances and spending preferences to determine the monthly payment range that you feel you can comfortably afford. Use Zillow’s mortgage calculator to help with you with the math. • Get your financing squared away early. Plan to meet a few lenders four to six months ahead of when you’re planning to buy to ensure you can make a competitive offer quickly when you find your dream home. The majority (82 percent) of buyers get pre-approved, with 77 percent getting pre-approval from a lender before finding a home on which they are interested in placing an offer. • Find an agent with a winning track record. Take the time to find an agent who has expertise in fast negotiation, leveraging escalation clauses, and winning bidding wars. Only 46 percent of buyers got the first home on which they made an offer, demonstrating that
Sellers:
• Start Early & Be Strategic. Sellers consider putting their home on the market for five months before they list it. But the top seller regret is that they wished they spent more time prepping for the sale. Many cities have a magic window in the spring when homes have a higher likelihood of selling quickly for more money. • Work with an agent from the start. The vast majority (90 percent) of
• Home improvements can be a worthwhile investment. Sellers who fetched above list price tackled home improvement before listing their home, being 50 percent more likely to take on a large project like modifying an existing home plan and 20 percent more likely to renovate a kitchen than the average seller. • Don’t be afraid to try again. In many markets, nearly half of listing views occur in the first week
The full 200-page Zillow Group Report on Consumer Housing Trends, which is free and available to the public, can be accessed through the Zillow website The Zillow Real Estate Market Reports are a monthly overview of the national and local real estate markets. The reports are compiled by Zillow Real Estate Research. For more information, visit www. zillow.com/research/. The data in Zillow’s Real Estate Market Reports are aggregated from public sources by a number of data providers for 928 metropolitan and micropolitan areas dating back to 1996. Mortgage and home loan data are typically recorded in each county and publicly available through a county recorder’s office. All current monthly data at the national, state, metro, city, ZIP code and neighborhood level can be accessed at www.zillow.com
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
DEAR MAINTENANCE MEN: Faucets, Bathroom Storage & Good Maintenance
By Jerry L’Ecuyer & Frank Alvarez Dear Maintenance Men: When the bathroom faucet was new, turning off the hot or cold water knobs would cut the flow of water immediately. Two years later, upon turning them off, the faucet weeps a bit of water. Is this a sign the knob isn’t working? Can a clogged spout screen be fixed? With all these problems, do I need to buy an entire new fixture? Paul
the cost of replacement, we recommend the faucet be replaced with new modern fixture.
Dear Paul: Most types of faucets are repairable with standard tools and a rebuild kit. Note the brand and style of the faucet and find a corresponding repair kit at the local plumbing supply house or home improvement center. Repair kits often come with the specialized tool you may need to repair the faucet. The faucet screen can be cleaned and is housed in a removable assemble at the end of the spout. These can be spun off and the screens cleaned and replaced. Keep in mind the cost of repairs may rival the cost of replacement. If the cost of repair is more than fifty percent of
Dear Robert: It does seem bathrooms are sometimes designed as an afterthought. Sink, toilet, bath and that is it. A modern bathroom will take into consideration the need for storage, electrical devises, personal hygiene etc. The first item that comes to mind is installing a bath sink cabinet. An old style cabinet might only have a set of doors under the sink. We find this is not adequate and a cabinet should have drawers along with access to under the sink. The drawers can store hair dryers, and all manner of personal bath items. A unique system we like utilizes the space between
Dear Maintenance Men: How can I add more storage to my utilitarian type bathrooms? The residents complain that they need to store their toilet paper in the hallway! Please list a few suggestions on what to do? Robert
the studs in the wall. Cabinet doors or mirrors can be used to cover storage in the walls. The wall storage is perfect for toilet paper, rolled up towels, tooth brushes, and most other small items. Install multiple towel racks on the back of the bathroom door for additional towel storage. The space above the toilet can easily accommodate an overhead cabinet for larger items. Reversing the swing of the bathroom door from inward to outward will greatly increase the usable room and make the bathroom appear larger. Dear Maintenance Men: It is currently summer time and that is when we get the most vacancies. How do I keep my residents from moving? Denise Dear Denise: Often residents relocate during the summer months due to a change in schools their kids attend. They want to be close or within walking distance. The other more problematic reason is poor maintenance service. According to the 2011 national resident study, "Getting Inside the Head of the Online Renter," the number one factor in a resident's decision to renew a lease is "Quality of Maintenance Services." Additionally, the current SatisFacts Insite® Index for Work Orders indicates that 18% of all service requests are not completed right the first time. And of those, only one-third of residents received notification that there would be a delay in completing the request. What the above means is poor maintenance service can lead to higher vacancies. It does not matter if you have 10 units or 100 units; maintenance is a critical tool in the physical well-being of your property and the happiness of your residents. Think of it this way. A service call and parts may cost $250 to service a broken washing machine or water heater, resulting in a satisfied resident. However, a resident having to live with a broken washing machine or intermittent hot wa-
ter may elect to move rather than dealing with the hassle of calling in repeated service requests. That resident vacating will now cost the owner thousands of dollars in loss rent and rehab work to bring the unit back to rent ready condition. Good maintenance is a year round tool to keeping your investment healthy and your residents paying the rent month after month. Questions, Questions, Questions! We need more of them!!! To be see your question in print, please send your them to: Frankie@BuffaloMaintenance.com Thank you! 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 Frank Alvarez is licensed contractor and 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 and Co-Chair of the Education Committee of the Apartment Association of Orange County as well as being Chairman of the Product Service Counsel. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance.com For more info please go to: www.BuffaloMaintenance.com Jerry L'Ecuyer is a licensed contractor & real estate broker. He is currently on the Board of Directors and Past President and past Chairman of the Education Committee of the Apartment Association of Orange County. Jerry has been involved with apartments as a professional since 1988.
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 www.rentalhousingjournal.com
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Rental Housing Journal Valley · June 2017
Rental Housing Journal Valley
Win, Win: Improving Cash Flow for Renters and Property Managers Increasing acceptance of digital card payments is a giant leap forward for convenience and efficiency
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n this era of digital payment for everything from groceries and plane tickets to city taxes and medical bills, the industries who have been early adopters have created a competitive dynamic over those who have not. One of the latest industries to expand their acceptance to electronic payments is the apartment rental industry. According to a survey by the National Multifamily Housing Council, almost 80 percent of renters would prefer to pay rent with a credit or debit card online or by smartphone. The industry is responding to these digital changes and is reaping the benefits of digital transactions. Over the last few years, apartment managers have taken heed to this statistic and are getting on board to implement a digital strategy. Card acceptance by apartment managers can provide a significant increase in overall convenience and efficiency. Payments that are processed digitally eliminate clerical work, freeing up staff and saving time and money. For tenants – especially millennials – who are used to paying their bills online, paying with a debit or credit card helps them pay rent on time and allows them to budget and
plan better. According to the 2015 Census Bureau Survey, one in three renter-occupied households are millennials. Responding to this emerging trend and opportunity, Visa and Entrata, a property management software company, are making it easier for property managers to accept and process digital payments, subsequently changing how renters are choosing and preferring to pay rent. Entrata enables property management firms to accept Visa cards, which significantly reduces the number of steps it takes to process rent payments. The partnership set an industry precedent that helped broaden acceptance and implementation of electronic payments. Entrata data shows that properties using online payment technology can spend 65% less time processing rent and will decrease rent delinquencies by 50%. One property management firm, Trinity Property Consultants, has had great success with the card payment program. As a national organization managing a geographically diverse portfolio of over 23,000 units in 13 states, Trinity was looking to increase operational efficiency. Trinity had been accepting online pay-
ments since 2013 but they were interested in taking it to the next level by increasing adoption. Their goal in expanding acceptance to electronic payments was to establish a paperless office, with 100% of payments taken online. Trinity estimates they have saved more than 51 employee hours a month with the increase in online payment adoption they have seen since the roll out of the Visa pilot program. By lowering the fee renters incur when using a debit card, Trinity has been able to substantially increase the number of residents paying rent electronically. Trinity was also able to access the funds faster, than when paid by check, which has enabled better cash flow for their business. Over the year, the percentage of renters using cards to pay rose from two to 11%. Trinity reported that because of the program, they are able to focus on providing value-added services to their tenants instead of processing checks, which has led to increased customer and employee satisfaction. “The staff loves it when residents pay rent online. The email notifications in Entrata’s technology has created instant
transparency as to who has paid and who hasn’t,” said Trinity’s VP of Marketing and Training, Carla Alicea. As a result of all of the positive outcomes, Trinity staff across the country are now specifically trained to encourage all residents to choose to make online payments through Entrata. As early adopters, Trinity Property Consultants has benefited greatly from the convenience and efficiency of accepting electronic rental payments.
Perk Up this Summer ...continued from page 1 Which if any benefits are offered at your company? Additional managers survey findings More than one-third of HR managers (34 percent) feel workers are less productive during the summer months. Another 34 percent said there’s no change in onthe-job performance. Not planning well for vacations (32 percent) and unexpected absences (22 percent) were identified as the most common negative employee behaviors at this time of year, ahead of dressing too casually (19 percent), sneaking in late or leaving early (15 percent), and being mentally checked out (12 percent).
5 Ways Managers Can Perk Up Employees This Summer
Perk up. Give employees more control over how they spend their time by offering flexible schedules and occasionally letting them leave early on Fridays. Just make sure policies are clear so business can continue as usual. Rally for rest: Remind workers to take time off, and set an example by doing so yourself. Bring in temporary professionals to fill in during absences.
Venture out: Holding meetings outdoors or while taking a walk is a great way to get fresh air while accomplishing business objectives. Have some fun: Plan an ice cream break, picnic or group outing. Employees will appreciate being able to relax and bond with colleagues in a non-work setting. Dress down: Allow staff who aren’t customer- or client-facing to wear more casual attire, as long as it doesn’t detract from work. You might even consider instituting themed Fridays where Hawaiian shirts or sports apparel are encouraged.
COMMERCIAL REAL ESTATE, LLC
The surveys of HR managers and workers were developed by OfficeTeam. They were conducted by independent research firms and include responses from more than 300 HR managers at U.S. companies with 20 or more employees, and more than 380 U.S. workers 18 years of age or older and employed in office environments. OfficeTeam, a Robert Half company, is the nation’s leading staffing service specializing in the temporary placement of highly skilled office and administrative support professionals. The company has 300 locations worldwide.
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Finding Investing Success in Today's Housing Market Rental Housing Journal Valley · June 2017
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Rental Housing Journal Valley
MIND YOUR BUSINESS Tia’s Tips for Better Rental Management Top Ten Classic Landlord Mistakes
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By Tia Politi, Lane ROA President s a property management consultant, I guide landlords through the processes of dealing with tenant noncompliance, termination, deposit reconciliation, eviction and small claims. Through the years, common themes have emerged regarding lack of knowledge in the following 10 areas:
1.) Fair Housing violations in advertising & first contact
To stay out of trouble, follow the rule: Describe the property not the people. Don’t say things like, perfect for older married couple, ideal for single man who works nights, Buddhist vegans only need apply. And especially don’t say things like, no Section 8, no animals, and now - no criminal history. The HUD Memo of 2016, requires landlords to consider an applicant’s criminal history in context. Landlords need to look at whether the history presents an actual danger to themselves, the property or the neighbors, by considering such things as the type of crime(s), how many convictions, how long ago the crime(s) occurred, and the rehabilitative measures they have taken since. Residents can also request a reasonable accommodation for a waiver of poor history related to domestic violence, or criminal history related to a prior addiction when the applicant has received treatment and stayed clean. Don’t prescreen potential applicants when they call, or ask potentially illegal questions such as number of children, source of income, marital status, ethnicity, religious preference, etc. Everything you need to know will be on the application. Some landlords say they do a bit of prescreening so people won’t waste their time applying if they won’t qualify. Unfortunately, this opens the door to saying or doing something that results in a Fair Housing violation against an applicant in a protected class. Offer an application to any who indicate an interest in applying, even if at first contact it appears they might not qualify. All of the information regarding that applicant will be on the application, and that’s when the job of screening begins. Landlords also get into trouble when they answer questions by disabled applicants related to Reasonable Accommodation of the lease terms, or Reasonable Modification of the premises. The best way to avoid trouble in this regard is to create an auto-response, such as, “I do not discriminate based on any protected class. Would you like an application?” Don’t put the cart before the horse, it will only lead to trouble. If the applicant is approved, the landlord can then move through the request, verification, registration, modification process.
2.) Screening poorly or not at all
If you have a decent rental property and good people in that property, there’s no easier job in the world than being a landlord. And that’s the trick: identifying people who will take care of the property, pay their rent in full and on time, and keep to the terms of the rental agreement. The best chance of achieving that is to ac-
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tually screen potential residents. Require each adult applicant to fill out an application. Check all disclosure boxes for requirements like renter’s insurance, utilities or services that benefit the landlord or another tenant, or yard care. Require applicants to answer every question and fully complete the application before it is accepted, then verify the information. There are many fine screening companies that can help. Apply rental criteria fairly, without regard to race, color, national origin, religion, sex, familial status (families with children), disability, marital status, source of income (including housing subsidies), sexual orientation, gender identity, type of occupation, or domestic partnership. If applicants meet the criteria they are approved or conditionally approved; if not, they are denied. If a landlord charges a screening fee, there are extra requirements. The applicant must be provided with the landlord’s written screening criteria prior to applying, the landlord must have an available property or one that will be available soon, the applicant must be told where they are in line for an advertised property, the landlord must provide a receipt for the fee, and they must actually screen the applicant, or are required to refund the fee. The landlord must also issue any denials in writing separately to each applicant, and must reconsider the applicant if they provide evidence showing that the reason for denial is wrong in some fashion.
3.) Rushing the move-in process
Don’t be pressured by applicants (or finances) into rushing the move in. When move in is rushed, it results in three fatal errors: 1) Failure to fully screen, resulting in poor quality tenants; 2) Failure to document the condition of the property, resulting in disputes over damages at the end of the tenancy; 3) Failure to ensure the property meets habitability standards, resulting in aggrieved tenants with a basis for complaint, and even counterclaim in a legal action. Diligence at the beginning of the relationship is rewarded at the end. It’s a big red flag when an applicant holds a handful of cash and pressures the landlord to move quickly. Haste makes waste. Prepare the property completely before handing over possession. Verify the transfer of utilities, and make sure the rental agreement and all addenda are completely filled out, initialed and signed by all parties.
sistance animals, and must be cautious in regards to restricting number or species. It’s not unusual for tenants to have more than one animal, or even different animals for different family members. Landlords may require a third-party verification of disability documenting the need for the animal. They may also require that the animal be vaccinated and licensed as required by law or code, and may request that the animal be spayed or neutered. Be prepared for pushback if the surgery would be contraindicated due to the age of the animal or other considerations.
5.) Improper entry and abuse of access
Prior to entering the rental property, the landlord or their agent must provide a minimum of 24-hours’ notice to enter. That notice can be in the form of a written notice that is either posted to the main entrance of the dwelling unit, or mailed first class (mailed notices must provide an additional three days plus the 24 hours required by law, prior to entry). A notice to enter may legally be delivered by telephone or voice message, as well as text and email, if allowed by contract. What trips up many landlords is their belief that if they’re not entering the dwelling unit itself, it’s okay to drop by. Not so. A landlord has no right of entry to any portion of the premises under the exclusive control of the tenant, including the yard, lot, or land area itself, with specific exceptions. Common areas of a multiplex are exempt from notification requirements, as are entering to perform regular, ongoing exterior landscaping (if specified in a written rental agreement), to serve a notice to the tenant, or in an emergency. Abuse of access means what it says: Landlords cannot abuse their right of entry. There is no specific definition, so proceed with caution and respect.
6.) Creating Waiver
Only landlords can waive their legal rights; tenants never can – even with their consent. A landlord’s failure to act upon knowledge of a breach of contract by the tenant for three separate rental periods or longer creates waiver. Whether that is an unauthorized occupant or pet; repeated late or partial payments of rent; accepting a payment of rent that extends beyond an outstanding no-cause notice of termination; or perpetuating any known breach, landlords must act or give up their rights. Waiver covers a lot of ground, and the further a landlord heads down the road of waiver, the harder it is to turn around, so act upon every breach, no matter how seemingly insignificant. Waiver can be cured with proper notice in a month-tomonth agreement, but not in a fixed-term lease until it expires.
7.) Not having a good grasp on preparation and service of legal notice
Selecting the correct notice for the situation is the first hurdle. The second hurdle is meeting the statutory requirements for its preparation and service. Proper calculation of time is essential, as well as specificity in regards to the breaches and cures in for-cause notices of termination. Perfecting service of notice is another minefield. Whether serving personally, by first class mail, or post and mail, each manner has specific requirements created by statute or case law. Notice to a tenant that could result in a filing of eviction must be perfect in every way, because the easiest win for a tenant in eviction court is a defective notice. The worst-case scenario results in landlords with valid claims paying for their tenant’s attorney, or having their credit damaged by an adverse court judgment. Learn how to serve notices legally and perfectly, or hire someone to do it. ...continued on page 7
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4.) Confusing pets with assistance animals
A pet is a pet; an assistance animal is a wheelchair. Too many landlords confuse the two, to their detriment. Landlords may restrict a tenant’s right to keep a pet in the rental property by limiting the number, size, species, and breed of pets, and charging increased deposits and rent for the privilege of keeping a pet. An assistance animal is not a pet, but an assistive device that allows a disabled resident the ability to occupy and enjoy the unit the way a non-disabled resident could; therefore, landlords cannot require any additional deposits or rent for assistance animals, restrict size or breed of as-
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Tia’s Tips ...continued from page 6 8.) Maintenance, repair and failure to document
Landlords must maintain rental properties within minimum habitability standards, respond reasonably to tenant maintenance requests, and maintain strict liability in terms of habitability issues – in some cases even when the tenant has deliberately or negligently contributed to the damage. A landlord’s failure to maintain habitability standards and supply essential services is a common successful tenant defense in eviction cases. At a minimum, a residential unit must provide adequate heating facilities; hot and cold running water furnished to appropriate fixtures, and maintained so as to provide safe drinking water; a sewage disposal system approved under applicable law; windows and doors that open, close and lock properly; a unit and grounds free of rubbish, trash and vermin at the outset of the tenancy; effective waterproofing and weather protection; properly functioning utility systems; a secondary escape route for each designated sleeping place in case of fire or other emergency; and safety and security of all components, inside and out. Failure to document tenant maintenance requests and actions taken is another sticky wicket for landlords. If a tenant accuses their landlord of failing in their duty to provide essential services, and agitates for a diminution in value of the rental dwelling, either in or out of court, where’s the evidence to contradict their claim? In many cases, it’s nonexistent. Memories are fallible, and documenta-
tion is essential to proving the landlord’s response and actions.
9.) Being a pushover
Excuses are the pavement that builds the road to failure. That’s a really mean thing to say, I know, but it’s based on experience. I’m the despicable character who has to put limits on tenant behavior, enforce compliance, and evict, if necessary. As a property manager, I operate as my clients’ fiduciary, so I must act within reasonable standards. Private landlords can always choose to capitulate to sad tales of woe, but heading down that path rarely ends well. It starts with the tenant making excuses and the landlord making allowances, and ends with the landlord losing time, money and self-respect. Providing housing for other humans is a privilege, but it’s a business, not a charity.
10.) Messing up move out and deposit reconciliation
The end of tenancy is where a landlord’s shortcuts at the beginning of the relationship will come back to haunt them. Failure to document the condition of the property at the beginning, the end, or both, can lead to a losing lawsuit. The final arbiter of charges to a tenant’s security deposit is a judge, so charge appropriately, but be fair. Landlords may charge daily rent for lossof-use, as long as repairs are performed in a timely fashion, as well as a reasonable hourly wage for their own performance of cleaning and repairs, but it can be best to hire out at least some of the work, to avoid
accusations of “padding” and to provide a professional third-party who can testify to the condition of the unit, and the remediation required to correct the tenant’s deficiencies. When assessing charges to a tenant’s deposit, landlords must account for depreciation for the replacement of certain damaged components, such as flooring or appliances. It requires a good faith effort to take into account the age and useful lifespan of the damaged item, versus the landlord’s cost of replacement. Other common errors with deposit accountings include lumping charges together in a general way that deprives the tenant of the detailed accounting the law requires, failing to meet the 31-day deposit accounting deadline, withholding the deposit monies in bad faith, or failing to send the accounting by first class mail, with penalties of twice the amount wrongfully withheld. Another common misconception is that if the tenant doesn’t provide a forwarding address, landlords are not obligated to mail an accounting. Not true. If no forwarding address is given, the accounting should be mailed to the rental property address with the expectation that the tenant will have their mail forwarded, and copies mailed to any other addresses on file, such as an employer or emergency contact.
painful and costly consequences. There is an inherent imbalance of power in the landlord-tenant relationship, so the law tilts toward protection of the weaker party. While tenants can suffer the ultimate indignity of eviction, landlords are held to a very high standard of behavior and action with severe financial penalties for violating a tenant’s rights. This article and the brief description of each of the Top Ten Classic Mistakes, is in no way a comprehensive educational description of the legal and ethical requirements of each topic. The nuances of landlord-tenant law, Fair Housing law, contract law, as well as the obligation to be reasonable and act in good faith, require a broad base of knowledge and education, and are laced with multiple levels of statutory requirements. It is every landlord’s responsibility to stay abreast of law changes, and operate at the highest ethical and legal standards. Detailed articles addressing each of these topics in more detail can be found on the ROA website – www.laneroa.com – in the Members Only section. This column offers general suggestions only, and is no substitute for professional legal counsel. Please consult an attorney for advice related to your specific situation.
The Takeaway
Like any specialty business, there is a lot to know about the landlord-tenant relationship, and the burden is on landlords to know the law and abide by it, or face
Can I Say No to Pot? ...continued from page 1 marijuana, but that you have something in the lease language that allows for eviction in the instance of marijuana use on the property. “So it is pretty clear as far as HUD is concerned,” he said. Here are his answers to four questions on pot and apartments.
No. 1 - Tenants with a disability and medical marijuana
Question: If a tenant comes in and says I have a disability, here is a note from my doctor, I use medical marijuana, which is legal in this state, and I want to rent your apartment. Can a landlord prohibit that? Answer: “A landlord can absolutely prohibit that because marijuana is illegal under federal law.” The landlord can say, “I understand our state allows medical marijuana but as it is still a Schedule 1 drug and I prohibit it on my premises.”
No. 2 - Marijuana is legal in my state - but what does the lease say?
Question: What if a tenant says marijuana is legal and they should be allowed to use it? Answer: “If your lease prohibits smoking and prohibits use of illegal drugs, then the legality of marijuana at the state level is irrelevant because under federal law marijuana is illegal. If your lease does not have those types of clauses, you should talk to an attorney in your state or city to find the best solution for your lease.” There is no law about reasonable accommodation for marijuana users, federal laws do not require it. As far as the federal government is concerned it is not ok. “One thing I would say, and it is important, I would encourage landlords just to make everything clear,” in the leases,
he said. “Clarify in a lease that you must abide by all laws state and federal.” That is the case in residential. He said it can be different in commercial. (There was a commercial case in Oakland, California and you can read more about it here.) “But In residential it is not as tricky, and I am speaking very generally here,” Sachter said. “The states may have their own thing going on with legal marijuana laws, but it is still federally illegal. Make it crystal clear in your leases is my best advice,” he said. “How can you attract tenants in a state where it is legal yet protect the owners of the property? You cannot have it both ways.” “I know in Seattle there are Airbnb bed and breakfasts that specifically market themselves accordingly, as part of marijuana tourism to come and stay in our place where it is legal.” But if a property manager doesn’t want that going on, then they have to be up front in the lease. “If your tenant is Airbnbing to a tenant who is then using marijuana – well if you can’t catch them you cannot do anything about it. You have to prove they are doing this. They are going to be using marijuana regardless of what the lease says.”
ever do it again,” he said. “Just because you get away with it once, does not mean you get away with it every time,” Sachter said.
No. 4 - Can I say ‘no pot in my apartment?”
“Usually if you say, ‘No pot in my apartment’ and you find a tenant using marijuana and you haul them into court, more than likely the judge is going to say, ‘Have you stopped?’ to the tenant and ‘Are you going to do it again?’ and the tenant is going to say ‘No.” And then judge will say, ‘Ok, dismissed.” To put a more legalistic term on it, usually a court will be in favor of “allowing the tenant to cure the defect,” rather than evict for most things like that, Sachter said.
Technically, in Washington, a landlord would serve a 10-Day notice to comply or vacate with the terms of the lease. This process, therefore, gives the tenant a chance to “cure” the violation before the landlord can evict. Check your local state laws on this.
What one experienced property manager says about pot
Sam Driver, Product Director for Buildium.com, and an experienced property manager at the property management software company, said as far as marijuana use in apartments, due to the newness of the legislation, the federal laws that supersede state and county laws, and liability concerns, it is not a topic that comes up a lot - yet. ...continued on page 8
No. 3 - What if the tenant using marijuana is a well-paying, good tenant?
“Landlords can certainly put a no-waiver clause in the lease. If I say, ‘Here is a list of prohibited things’ and if you do these prohibited things in the lease, you are subject to eviction,” he said. “However, any time I waive any of these things does not constitute an overall waiver. It basically means you should not
Rental Housing Journal Valley · June 2017
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Rental Housing Journal Valley
Can I Say No to Pot ...continued from page 7 “Generally, the safest solution is to choose the most conservative path-impose a no-smoking policy, which can in some cased cover outside areas, and a crime provision that includes local, state and federal laws. In many states, there are setbacks from doors, and it is particularly important if the building is a place of work which a multi-unit apartment building certainly is. So your lease should contain a provision explicitly banning smoking and illegal activity. Because the feds still outlaw it, this should be sufficient,” Driver said. “This of course only covers the smoking angle. If a resident consumes it in another way, you’d likely never know,” he said.
Growing marijuana could put a power load on your apartments
“As for growing, that’s less clear. But in general, unless the electrical system is designed for it, the loads grow lights put on the apartment unit could be excessive.
I’d consider a reasonable use clause that specifies all high load equipment, including lights, air conditioners and any kind of pump be approved by you. “This would put you in a position to take action if they are putting too much load, without specifically calling out the use of the equipment. Pumps are a good area for monitoring, because of the intermittent load, they trip breakers, and anyone who is using a hydroponic system would need several,” Driver said.
What if I want to market my apartment to marijuana users?
“If, however, you wanted to roll the dice and market to this crowd, assuming your state laws allow it, remember that the federal laws would cover any bank deposits from proceeds,” Driver said. “In this case, you’d be able to do it, assuming no federal intervention, in compliance with local laws. No insurer would provide EO&E (errors and omis-
sions excepted) insurance to you, and you wouldn’t be able to deposit any funds into a federally-accredited bank. So you’d have to self-insure, and run an entirely cash business, but you could do it, risking only federal enforcement. “The big question is, ‘Would the premium rents be worth the risk of forfeiture?’ If you run afoul of the federal drug laws, the asset seizure possibility is a huge risk. You could lose the building. “If you’re managing other owners’ properties, then you’d be risking their assets even if you used different leases, unless you kept fully separate books, bank accounts, and co-mingled nothing. So I’d say it would be all-or-nothing,” he said. “The timing is tricky, too. Leases contain a provision that stipulates that the contract is in force in a specific jurisdiction. If they change the laws rendering your lease out of compliance, what happens during the remaining time of the
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lease? Is it invalidated? Or does the contract remain in force until it expires? “Good questions for your lawyer,” Driver said.
How to keep up with status of pot laws in the different states
ProCon.org, a 501(c)(3) nonprofit nonpartisan public charity, provides professionally-researched pro, con, and related information on more than 50 controversial issues from gun control and death penalty to illegal immigration and marijuana laws across the country. “Using the fair, FREE, and unbiased resources at ProCon.org, millions of people each year learn new facts, think critically about both sides of important issues, and strengthen their minds and opinions,” according to the company’s website. Here are where the pot laws stand for medical and recreational marijuana in several states, how it was passed, and what is permissible in the possession limit, according to procon.org. You can see their excellent full chart here state by state. Keep this link as they update the ever-changing pot laws in the different states. Here are what some some states are doing with links to more information on each state’s pot laws. • Oregon: Ballot measure 67, 24 oz usable; 24 plants, 6 matures and 12 immature • Washington: 8 ounces usable, 6 plants • Arizona:medical marijuana is legal 2.5 ounces usable, 12 plants • Colorado: 2 ounces useable, 6 plants, 3 mature, 3 immature • Utah: prohibited with a few narrow exceptions As a Presidential Scholarship recipient, Bret Sachter received his law degree from the Seattle University School of Law. In addition to his law degree, Bret holds a bachelor’s degree in evolutionary psychology and master’s degree in psychology. Bret has taken an interest in tracking the progression and transformation of marijuana laws, as they are among the most recent and highest-profile legal issues affecting entrepreneurs in Washington and, increasingly, all around the country. You can call him at 206-295-2547 or visit his website here. Resources: • Proposed bill would allow Washington residents to grow pot at home • Arizona weed laws, what to do about legislation after prop 205 defeat • 29 legal marijuana states and DC • Smoke pot in Oregon? Your name is now protected from the Feds • Retail marijuana use within the City of Denver • Utah marijuana laws • Real estate concerns in the cannabis industry: Case study
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Rental Housing Journal Valley · June 2017