February 2018
Rental Housing Journal Valley
2. How to Make Apartment Move-In Easier for Tenants and Managers 3. RHAO President’s Message 7. Dear Maintenance Men:
EUGENE · SALEM ·ALBANY · CORVALLIS WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC
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Pest Preventative Maintenance Steps for Rental Housing
Regulatory Changes Bring Uncertainty to Portland’s Apartment Market Marcus & Millichap
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he maintenance check up this week, provided by Keepe, asks whether you are taking the pest preventative maintenance you need in your rental housing to protect your investment and your tenants. From mice to ants and cockroaches, pest infestations can cause serious property damage and traumatize tenants, significantly worsening their perception of their living conditions. Property managers need to be aware of what draws pests to rental homes and adopt simple pest preventive maintenance steps that can protect properties and tenants.
7 Types of Pest Preventative Maintenance Steps
No. 1 - To avoid any and all infestations, it is fundamental to regularly inspect properties for cracks, crevices and any kind of openings that would allow unwanted critters to access indoor spaces. This includes checking open vents and drainage pipes. No. 2 - Pests need a source of moisture to survive, so it is adequate to minimize the presence of standing water by regularly checking whether pipes, AC units, gutters or downspouts leak or allow water to accumulate; scheduling seasonal maintenance and timely repairs for those systems is ideal. No. 3 - Clogged and debris-filled gutters can make for a cozy hiding spot: making sure that gutters are regularly cleaned avoids this issue. No. 4 - Regular trimming of trees and plants located next to windows and entryways can prevent branches from allowing pests to gain access to them. ...continued on page 8 Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007
olicy change could exacerbate housing shortage. A moderating pace of completions and persistent rental demand will keep vacancy low in 2018. The rate has remained below 4.5 percent for eight years, pushing rent up to record levels. The shortage of units, particularly for low- and moderate-
income households, led the city of Portland to pass the inclusionary zoning policy that required builders to set aside some units for low-income residents. The city estimates 23,000 units are needed to meet the need for low- to moderateincome housing. Many developers fear that the required affordable rentals will not generate enough returns to offset the cost. A surge in multi-housing permitting before the policy could bring thousands
of new market-rate units to the metro but builders may decide to hold off on these projects. Slowing completions in 2018 coupled with strong tenant demand will push down vacancy and drive a respectable increase in rent growth. Range of opportunities entice investors. Low vacancy and steady economic growth will maintain investor interest in ...continued on page 6
New Tax Law Holds Favorable Prospects for Commercial Real Estate Potential to Boost Space Demand and Capital Flows Marcus & Millichap
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ew tax law retains key provisions for real estate investors. The highly anticipated tax reform recently signed into law by President Trump retained numerous key commercial real estate provisions. The1031 tax-deferred exchange, the mortgage interest deduction for investment real estate and asset depreciation had few material changes. This consistency in tax law will enable investors to move forward with most of their existing investment strategies. That said, there are many provisions in the new tax law that will have a more nuanced effect on the sector, and these more subtle adjustments could create significant new opportunities for real estate investors.
Finalization of tax rules to reduce uncertainty. Over the last year, elevat-
ed uncertainty generated by the range of potential government policy changes, including tax laws, caused many investors to move to the sidelines. A more cautious outlook pervaded the industry as investors awaited clarity on taxes, fiscal policy and a change in Federal Reserve leader-
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ship. This perspective could begin to ease as the implications of the new tax law firm up and investors better understand how the new rules will affect their investments. The new tax plan offers generous tax cuts to corporations and pass-through entities such as Limited Liability Companies(LLCs), and investors may see the new
tax rules as an opportunity to reconfigure their portfolios. The new tax structure will apply to 2018 income for tax filings in 2019.
Reduced taxes on pass-through entities may boost capital flows. Per...continued on page 4
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