Rental Housing Journal Valley October 2015 by Professional Publishing, Inc

Rental Housing Journal Valley

October 2015

3. Giving a Tenant “The Boot”

4. Lead Safety, Testing, & Contractors

5. Winter is Coming, Have A Plan!

Manufactured Fireplaces, Repair or Replace?

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

Prepare Rental Properties 2015 Changes to For The Winter Season the Oregon Landlord F Tenant Act (SB 390) By Scott Matthews, Director, Strategic Accounts, The Home Depot all is a great time to prepare properties for the colder months ahead, which may help prevent or offset costly repairs and high utility bills caused by harsh winter weather. Before winter hits, take steps to ensure that the property is ready for the elements with this must-have checklist.

By Cliﬀord A. Hockley President, Bluestone & Hockley Real Estate Services

nce again, tenants and landlords have come together with the legislature to update the Oregon Landlord Tenant Act. On June 15, 2015, Oregon Governor Kate Brown signed SB 390 into law. The law itself takes effect the 1st of January 2016. While most of the changes to the act are basic clarifications, significant issues are addressed as well. I have reviewed the changes in the act and summarized them here for your convenience. Please read carefully.

1. Clarification regarding mailing of notices To avoid confusion, ORS 90.160 has been updated insofar that notices expire at 11:59 p.m. on the last day of the notice period rather than at 12 midnight. 2. Timing for notices of restitution ORS 105.159 (with a specific focus on ORS 105.151 regarding notices of restitution) has been updated insofar that notices of restitution expire at 11:59 p.m. on the last day of the notice period rather than at 12 midnight. This change also clarifies that the mail time for notices of restitution starts at 12:01 a.m., the day after a notice has been placed in the mail, and ends at 11:59 a.m. four days later. However, if the end date falls on a Saturday, Sunday or other legal holiday, then the notice period shall end at 11:59 p.m. on the day preceding the next judicial day. continued on page 5 Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007

1. Stock up. Property managers – especially those handling procurement – should prepare for colder months by purchasing winter products, such as salt and ice melt, in bulk before the season changes. Buying in bulk not only saves time and money but also gives property managers peace of mind as they look ahead to potential extreme weather. 2. Seal gaps. Thoroughly examine roofs, siding, doors and window frames for damage and drafts. Repair damages immediately and seal around doors

and windows with caulking, weather stripping, or a door sweep to help keep warm air in and cold air out. As a best practice, ensure exterior seals are strong where building materials meet, like where siding stops and brick begins. Encourage tenants to notify of any drafts or noticeable gaps in their units to prevent soaring utility bills. 3. Protect pipes. Install heat cables and pipe insulation to prevent freezing pipes as temperatures drop – especial-

ly for pipes exposed to outside air or on exterior walls. Remind tenants to let faucets drip overnight during extreme cold to keep pipes from bursting and causing water damage. Repairing burst pipes can cost more than $600 – depending on where the pipe is located and the extent of the damage, so take the necessary steps to avoid the additional out-of-pocket cost. continued on page 6

5 Lessons For Winter Property Survival

s Darwin concluded, “It’s the survival of the fittest.” If we hope to preserve our property over the long term, there are simple truth’s we must accept and actions we must take in order to ensure the viability and value of the physical assets under our stewardship. The simple truth is that as soon as a property is built, it begins the process of dying. It’s a harsh truth, but we have all seen it. With that said, there are some properties that seem to escape the inevitability of decay, waste, and death. So, how do they do it? Are they special in some way? What are those operators doing to extend the life of those properties, or, at least, lessen the effects of time in order to retain value? These operators understand the following 5 lessons and PRSRT STD US Postage PAID Portland, OR Permit #5460

keep them at the top of their preventative maintenance approach.

Lesson One: Gutters and drains are key. When gutters, downspouts, and ground drains are neglected, they begin killing your buildings. These components are at the top of the most wanted list when it comes to the destruction of your physical property. When they are clean and clear of debris, they will redirect and remove thousands of gallons of

rainwater per year. To find the estimated amount of rainfall at your property use the following equation: (total sq’ of roof surface X 0.6 X annual rainfall). Here is a common property example from one of the properties in my portfolio in Portland, OR. It’s a 100 unit property with 10 buildings. Each building has a roof surface of approx. 2000 sq’. Using the annual rainfall for Portland continued on page 2

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Rental Housing Journal Valley

5 Lessons for Winter ...continued from page 1 (37.2”/yr), we can estimate that over 446, 000 gallons of water per year is landing on nearly all surfaces of my property, but mostly on the roofing. Without clean and functioning gutters, downspouts and ground drains all of that water is pouring into your building envelope somewhere. Whether it’s damaging the roof sheeting, deteriorating the fascia, pouring down the siding, splashing over the side and causing splash back on the underside of the siding, or simply creating standing water throughout the property, it will cause you problems. The obvious solution is to give your rain drain system the attention it deserves. I recommend 3 cleaning and line jettings per year. Starting in March, I want to get all the residual debris out from the previous winter. Then in August/September I want to get them all clear for the upcoming Fall and Winter leaf drop, then I will do one final clean and jet in December/January to get rid of all the leaves and debris that was just dropped over the past 90 days.

Lesson Two: Sealant matters. The sealant (caulk) that is protecting your windows and siding material joints is like the sentry guarding the castle gate. At first he is strong, flexible, dependable, and nearly unbeatable. However, he gets weaker over time, and, depending on his location, is constantly under attack and beaten down. Eventually, he fails and must be replaced. The truth of the matter is that even the best sealants on the market have a manufacturer’s recommended useful life of around 3-5 years. This means that if your property was built before 2013 and hasn’t had the sealant removed and replaced then your property is under siege, and there is nothing protecting the critical access points

that could become an open gate for water, mold, dry rot, and building failure. Within the industry there is a push given the construction defect litigation environment that is prevalent to implement sealant replacement schedules every 4-5 years with a focus on the horizontal surfaces, especially those that are not flashed with metal. This increased focus on the sealant will not only prolong the life of the material components, it will eliminate interior envelope damages. Since all surfaces and potential points of intrusion are being reinforced on a regular basis, the life span of the envelope materials, and ultimately the value and future capital needs to retain the value of the property is preserved.

Lesson Three: Irrigation is key to NOI. We all know water is very expensive. What we sometimes forget is, one of the largest water drains on our sites are our irrigation systems. These systems were designed, initially, to get things growing fast at the time of development. Green grass, healthy trees, and bushes that can be trimmed and shaped make the property look good and help with the initial lease up and aggressive marketing that it takes to get the property performing well financially. But, over time, grass takes root, trees and bushes become mature and native plants and trees stabilize, leaving much of our irrigation systems unnecessary. Take this opportunity to do an in depth irrigation audit and determine areas that no longer need to be watered. Some areas may need different approaches, such as drip systems rather than the more common sprinkler heads which use far more water. If possible, remove entire zones in areas that have lit-

tle or no grass, heavily shaded areas, or areas that appear to be heavily saturated. Taking advantage of these savings will not only save you money but eliminates the need for future maintenance and possible damage and repairs as well.

Lesson Four: Don’t forget about crawl spaces. Although often forgotten, neglected crawl spaces can be can serious problems. They may be too cold and wet under the units, or too warm and wet above the units. Take the opportunity to get a visual on these areas. Here is where to focus; lower crawlspaces should be clean and dry. Check the vapor barrier to be sure there are no tears in the barrier, no standing water or stains of previous water stains from the previous winter. Also, be sure to inspect all plumbing pipes that are within 5 feet of the outer foundation wall to be sure they are insulated. As for the upper crawl space, take a few minutes in each building to look for potential problems that add to excessive moisture issues and ultimately mold. Check fan exhaust venting to be sure it is positively connected to the exterior of the building, be sure that intake baﬄing is in place (you should see some outside light coming in where the bird block and intake vents are located), so that clean air can come into the crawl space and help push the moist, stagnant air out the top of the system. Last, be sure insulation is in place all the way out to the edge of the roof. As long as the baﬄes are in place this will ensure proper insulation for the units below. Lesson Five: Emergencies are going to happen. Be proactive by implementing and practicing emergency plans with your

team. If there is an after-hours call, does every member of your team know what to do? Setting up emergency response protocols, such as pre-approved vendors for restoration, plumbing, carpet extraction, and leak locators to deal with the problems, and hotels restaurants, or even the Red Cross to deal with the residents. Have a centralized location at the site that has a list of all these vendors, utility shut off locate maps, valve keys, fire panel directions, and emergency protocols for fire, flood, and blood, but also natural disasters, terrorist threats, gang violence, and even domestic violence. When emergencies occur everything is chaotic, be sure your responding site staff are trained, prepared, and are level headed so they can assume the leadership role your residents expect and deserve. Zach Howell, CAMT, UPCS, LEED GA Director, Apartment Maintenance Institute Zach carries a Psychology degree from Oregon State University. He is a nationally Certified Apartment Maintenance Technician, LEED GA, and Certified UPCS inspector carrying more than a decade of experience within the multifamily housing, development, and construction industries. Zach is a valued advocate for the Apartment Maintenance trade, serving as Subject Matter Expert for the National Apartment Association, Training Director for The Apartment Maintenance Institute, Community Education Faculty Member at Portland Community College, and 2014 Apartment Community Excellence “Oregonian Civic Award” Recipient. He can be contacted via email Zach@aminstitute.net

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Rental Housing Journal Valley · October 2015

Rental Housing Journal Valley

Giving A Tenant “The Boot”

he time has come that you want to part ways with your tenants. How do you do it and what things should you be careful of? How much notice do you give them? Can you do things in a way that will avoid upsetting your tenant and causing them to damage your property before moving? Can you walk up to the door of the unit to have a conversation with them? First thing is the amount of notice you give them. This depends on the reason for terminating the relationship. If you are just doing a no-cause notice to vacate then you can give them a 30-day notice, if they have paid rent for less than 12 months. 60-days if they have lived there for more than 12 months. If this is a non-payment of rent situation then you are able to give them a 72-hour non-payment of rent notice on the 8th day of the month (assuming your rent is due on the 1st). This gives the tenant 72 hours to vacate or pay their rent. If your tenant threatens your safety or breaks the law while on the property then you may be able to give a 24-hour notice of eviction. Be careful with this one though and make sure that you are able to prove the violation. For most other lease violations you can give them a 14/30 notice. This is a notice that gives the tenant 14 days to cure the lease violation in a manner that is agreeable to the landlord or 30 days to move out. If the tenants have not become hostile yet then I would suggest that when you give one of these notices you either call the tenant beforehand or do it in person and try to have a conversation with the tenant at the same time. Keep in mind that the main goal is to get the tenant to move out. When you post a notice of eviction for a cause you can accomplish a lot by having a conversation with the tenant. Keep in mind that it is perfectly legal for you to do a “knock and talk”.

are able to file some paperwork at the courthouse and get your FED judgment. If you are evicting a tenant and part of the agreement is that if they follow through you will actually allow them to continue living at the residence then you can add to that agreement that they pay their rent on time. Most judges will allow you to require this for up to 6 months. This is a very good thing to add to that agreement as it makes it so that you can skip the hearing and trial and just evict them on grounds of violating their stipulated agreement if they fail to pay their rent on time.

That is you are allowed, without prior notice, to walk up the normal pathway to the front door to knock on it and try to talk with the tenants. Obviously be careful to stay on the natural path to the front door, don’t look inside any windows, and don’t walk around the property if you haven’t given notice. When you talk to the tenant let them know that you have no choice but to post this notice. Although if they are able to get moved out prior to the notice expiring or even prior to the initial hearing if you have to file an eviction, that you will drop the eviction. 90% of our evictions end on a positive note in this way. Ultimately we get what we want in that the tenant moves out without causing any additional trouble and sooner than if they fight it and we have a trial. They get the added benefit of not ending up with an eviction on their record which could cause them to be denied at the next place they try to rent or pay much higher security deposits. The reason that you want to have this conversation while still posting the necessary notice is that you want to reserve your right to evict them as soon as possible if they don’t follow through on their

side of the agreement. The majority of landlords have heard the “promises” and sob stories. If you still post the notice, but let them know that an eviction won’t end up on their record if they can follow through, then the ball is in their court and if they fail to follow through you haven’t lost any time and can still evict them as soon as possible. The eviction process is much like getting a traffic ticket in that there is an initial hearing to see if you and the tenants can come to an agreement; and then there is a trial if no agreement can be made. The best thing that you can do is reach an agreement at the initial hearing. The reason is that the judge will make that stipulated agreement part of his judgment. In entering this agreement with you and the court the tenants are waiving their right to a trial. So if they fail to follow through on their end you

The last bit of advice I can give is to never make it personal. Keep in mind that even if they live in a property you own that this is just business. Don’t get sucked into arguments with the tenant and stick to the facts at all times. Always remember that your end goal is not to punish the tenant, but to get possession of your property back as quickly as possible with as little damage as possible. So be prepared to offer the tenant something (like dropping the eviction case) if it means they will move out sooner than later and without a fight. Good luck with your next eviction! Christian Bryant

President Portland Area Rental Owners Association Coldwell Banker Property Management www.CBPropertyManagement.com

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Rental Housing Journal Valley · October 2015

Rental Housing Journal Valley

Lead Safety, Testing, & Contractors Contractors If a pre-‘78 property requires repair or renovation that will disturb painted surfaces, inside or out, federal and state laws require that you hire a Lead-Safe Certified contractor (or become certified yourself). Details can be found on the Oregon Health Authority website, https://public.health.oregon.gov/ HealthyEnvironments/HealthyNeighborhoods/LeadPoisoning/Pages/index. aspx. The LeadLine at 503/988-4000 can provide a list of certified contractors, and explain how to be certified yourself, if you’re interested.

By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon

ne cannot see tiny specks of lead in household dust yet just a minuscule amount can be toxic enough to poison. At greatest risk are children whose bodies and brains are still developing, as well as those with compromised immune systems. The prevalence of lead-based paint used in older housing stock up until its ban in 1978 means that many homes in our area have such potential, if invisible, hazards. Just one sugar packet’s worth of lead dust scattered evenly over an area the size of a football field is enough to poison a child playing on that surface. That might be your child or grandchild. If you do painting or repair work on pre‘78 homes, you may carry toxic lead dust home on your clothes and shoes. You might also poison your residents’ children if you’re doing work on a rental property that you own or manage.

• • • • •

The Dangers • Abnormal fetal development • Learning disabilities • Lower IQ scores; memory, speech, and language problems • Behavioral issues • Damage to the brain and nervous system (especially in kids) • Fertility problems • Diminished motor skills • Decreased bone and muscle growth and coordination; muscle and joint pain • Kidney damage • Hearing loss

Very often health departments and prevention programs respond to lead poisonings identified with blood testing. According to the EPA, over one million kids in the US currently have high blood lead levels from old lead paint in homes. Should we wait for fires to start and things to get burned before acting? Of course not, and just with fire prevention, here we must move together on poison preventative measures aimed at controlling lead hazards in housing and minimizing risk before the harm is done.

Memory loss Digestive problems High blood pressure Headaches In severe cases, seizures, unconsciousness, and death

Prevention is Key • Proactively check for lead hazards in and around homes • Establish maintenance plans that prevent hazards from arising (such as repainting often enough to avoid worn, chipped paint that more readily flakes off creating dust) • Remediate existing lead hazards or fix dangerous problems Home repairs that create even a small amount of lead dust are enough to put lives at risk. If you own, live in, or work in residential property(ies) built before 1978, make sure you know your legal obligations and how to keep yourself and others safe.

Testing A lead dust test is the only way to be sure that lead-contaminated dust is not present in dangerous levels. Instant spot paint test kits available at hardware and home improvement stores can provide useful information but are not as accurate as a tests analyzed by a laboratory. You have options: Use a home dust test kit. Hire a commercial testing service. Lab analysis costs $5 to $20 per sample, depending on the number of samples and the laboratory you choose. Typically, two or three samples per room are adequate. Contact a certified lead professional. This is certainly the most expensive option and the most comprehensive. The LeadLine at 503/988-4000 can provide referrals and information about continued on page 7

Manufactured Fireplaces

Repair or Replace?

any of your units, especially apartments and condominiums, are equipped with Manufactured Fireplaces. Over time, various parts of these Manufactured Fireplaces will wear out. Most commonly the interior fireplace area called the firebox. The firebox consists of the back wall panel, two side wall panels and the floor panel. When the Manufactured Fireplace is cleaned and inspected by a Certified Chimney Sweep and if cracks or holes are noted in the panels, these panels should be replaced soon after by the Chimney Sweep as a follow up service. The Manufactured Fireplaces are basically appliances and it is vital to their longevity to provide routine maintenance and part replacement as needed. If they are left to deteriorate or are not repaired, replacement of the Manufactured Fireplace is then needed which is much more costly. Not to mention being a fire hazard for the property itself.

The National Fire Protection Association recommends annual inspections and cleanings of fireplaces. “13.2 Annual Inspection. Chimney, fireplaces and vents shall be inspected at least once a year in accordance with the requirements of Section 14.2” “14.2.1 Selection of Inspection Type” “Level 1” “Annual inspections as required by 4

Section 13.2: during routine cleaning of chimney flue; upon direct replacement of connected appliance with one of similar type, input rating and efficiency.” In the Great Northwest fireplaces abound for brick masonry chimneys and Manufactured Fireplaces. Let’s keep them clean, properly maintained and ready for use. Article submitted by PORTLAND CHIMNEY & MASONRY INC. Reference: National Fire Protection Association 211 Standard for Chimneys, Fireplaces, Vents, and Solid Fuel-Burning Appliances 2010 edition. Chapter 13 Maintenance and Chapter 14 Inspection of Existing Chimneys.

Rental Housing Journal Valley · October 2015

Rental Housing Journal Valley

2015 Changes to the Oregon ...continued from page 1 2. Noncompliant pet fees ORS 90.302 has been amended to include authorization to charge noncompliance fees to tenants for failure to clean up the waste of a service/companion animal from a part of the premises other than the dwelling unit. (The point of this change was to encourage owners of those animals to pick up animal waste at a property just like any other tenant would be responsible for.) In addition, there was a change to the section of the act that addresses the penalties for keeping an unauthorized pet capable of causing damage to persons or property as described in ORS 90.405. Initial noncompliance fees are limited to $50 (see ORS 90.302(3)(a)(A). However, a fee for a second or any subsequent noncompliance relating to an unauthorized pet can increase to a maximum of $250. Those unauthorized pet fees may not be imposed until 48 hours after the warning notice has been delivered to the tenant. 3. Assessments imposed by a homeowner / condominium association ORS 90.302 has been modified to address homeowner / condominium association fees. This section clarified that assessments can be passed on to tenants if they are imposed for moving into or moving out of a unit or property located within the association. To levy these fees the landlord must establish the fees in a written rental agreement at the beginning of the lease term and the landlord must give a copy of the assessment distributed by the association to the tenant before or at the time the landlord charges the tenant.

If a landlord charges a tenant a fee in violation of this section the tenant may receive from the landlord a penalty that recovers twice the actual damages to the tenant or $300, whichever is greater.

4. Regarding a tenant’s failure to pay for damages, utility fees and / or charges and deposits. Amendments to ORS 90.412 (the “waiver” statute) clarifies a tenant’s failure to pay money to a landlord for damages to the property, structures at the property, utility fees and / or charges and deposits. The following section is new: The violation concerns the tenant’s failure to pay money owed to the landlord for damage to the premises, damage to any other structure located upon the grounds, utility charges, fees or deposits and, following the violation but prior to the acceptance of rent for three rental periods or performance as described in subsection (2) of this section, the landlord gives a written warning notice to the tenant regarding the violation that: • Describes specifically the basis of the claim and the amount of money owed that constitutes the violation; States that the tenant is required to correct the violation by paying the money owed; and • States that continued nonpayment of the money owed that constitutes a violation may result in a termination of the tenancy pursuant to ORS 90.392 This statute is also amended to read that “ for violations concerning the tenant’s failure to pay money owed to a landlord, the landlord’s written warning remains eﬀective for 12 months from

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

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

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be reproduced without

written permission.

5. Regarding renter’s liability insurance and landlord requirements thereof. Changes to ORS 90.222 are important given that as of January 1, 2016 landlords must provide a reasonable written summary of the exceptions to the insurance requirements to tenants. This typically addresses low income tenants or tenants using vouchers or living in subsidized housing, and basically exempts Section 8 tenants for carrying rental liability insurance. Should a landlord desire to amend a month-to-month rental agreement, so as to require rental liability insurance, the landlord must not only give a tenant a 30 day notice, but must also deliver the same written summary of exceptions to a tenant/tenants. A landlord may require that the tenant provide documentation that the tenant has named the landlord as an interested party on the tenant’s renter’s liability insurance policy authorizing the insurer to notify the landlord of: a. Cancellation or non-renewal of rental insurance policies b. Reductions of policy coverage c. Removal of the landlord or other interested party (like a property management company or an attorney) If a landlord” knowingly” does not follow the modified rules, tenants may recover actual damages or $250, whichever is greater.

6. ORS 90.325 tenant responsibilities 1. New codes require that new apartments be constructed with fire sprinklers installed. To that end tenants may not remove, obstruct, or tamper with a sprinkler head used for fire suppression. 2. Other new rules regarding tenant responsibilities define what damages tenants are NOT responsible for: a. Acts of God b. Conduct by a perpetrator relating to domestic violence, sexual assault or stalking c. Damage resulting from conduct by a perpetrator relating to domestic violence, sexual assault or stalking. A Landlord may require a tenant to provide verification that the tenant or a member of the tenant’s household is a victim of domestic violence, sexual assault or stalking as provided in ORS 90.453. 7. Utility and public service charges ORS 90.315 now allows landlords to bill tenants for utilities and public service charges (charged to the landlord by the public service. A ‘public service’ is defined as municipal services and the provision of public resources related to the dwelling unit, including street maintenance, transportation improvements, public transit, public safety and parks and open space. “Public service charge” means a charge imposed on a landlord by a utility or service provider by a utility or service provider on behalf of a local government or directly by a local government. However, continued on page 6

Winter is Coming

5 reasons to use rentegration 1. Access - Rentegration.com is a web based, multi-user software offering customers 24/7 access to forms generation, archives, property management dataColor Standards for National base, basic accounting, vendor ordering • Logos are provided on the CD in all three forms: and other services.

the date of the tenant’s failure to pay the money owed.”

sales@rentegration.com 02

Have a plan!

t’s budget season for property manager and everyone is scrambling to get them done accurately and on time, while managing everything else that goes on daily on our properties. But, we can’t forget cold weather and freezing conditions are coming. Although, we have had a hot long summer into fall, we need to be prepared for cold weather. Prepare for the worst and hope for the best!

Here are some best practices for to help ease the process and headache. Prepare the residents. • Staff should be prepared with all emergency situations and how to navigate all emergencies. Winter can bring fires, floods, freezing pipes, and freezing branches that can fall on buildings. All staff should know how to handle all of these situations. Be prepared with phone numbers for after hours emergencies for restoration companies, electricians, tree removal and landscaping companies, and help organizations like The Salvation Army. It’s also important to make sure that your whole team has contact information for all team members, in case of emergency. • Prepare staff and residents for emergencies. Make sure everyone knows what to do in case of emergencies during business hours and after. Office Hours and emergency contact information, including emergency and utility information, should go out to all residents and posted on the office door as well as voice mail.

• Publish and distribute an information booklet of emergency plans and reminders. For example: in the event of a power outage, remind resident not to use stoves or space heaters that do not automatically shut off if tipped over. Avoid candles and make certain that residents have working flashlights and batteries. Another important plan to include is fire evacuation. Make certain to walk your property and note potential areas of concern – IE sidewalks, parking lots or stairway that might freeze over, etc. Include those in your plan. Everyone hopes that none of these emergencies will occur, but they do happen. The best way to overcome, minimize damage and keep residents as happy as we can will come from BEING PREPARED! By Dana Brown

Dana Brown has worked in all facets of the property management and rental housing industry for over 30 years. She is a national speaker and trainer who consults with both property management companies and industry service providers. You may reach Dana at: danabrown3321@gmail.com

Rental Housing Journal Valley

Prepare Rental Properties ...continued from page 1 4. Check the water heater. Ensure units on the property are in good condition with thorough inspections. Drain and flush the hot water heater to get rid of sediment build-up. If it’s time for an upgrade, choose a model that’s compliant with the latest efficiency requirements enacted in April of this year. 5. Install programmable thermostats. Wi-fi enabled thermostats offer customizable convenience by enabling users to control temperatures from their smart phone. Some models even sense when a unit is occupied, delivering comfortable temperatures when it is in use and saving energy and money when no one is home. Property managers can also program smart thermostats to send reminders for filter changes or extreme temperature alerts.

2015 Changes to the Oregon ...continued from page 5 “public service charge” does not include real property taxes, income taxes, business license fees or dwelling inspection fees. Provided your rental agreement requires a tenant pay a utility or service charge, landlords can bill for it but landlords must bill for the utility within 30 days after receipt of the utility provider’s bill. If the landlord includes the bill in the monthly statement of the rent due, the landlord must separately and distinctly state the amount of the rents and the amount of the utility and / or service charge. To be able to bill back utilities to the tenant the landlord must provide to the tenant in the rental agreement or

Scott is responsible for managing national accounts and e-commerce while overseeing business-to-business relationships. During his 25 years at The Home Depot, he has served in a variety of roles and capacities, including Regional Pro Sales Manager, District Manager and Store Manager.

continued on page 7

9. Create a severe weather kit. Prepare for the worst by assembling a severe weather kit before the season hits, including generators, batteries, flashlights and a First Aid Kit. Also include snacks, water and other essential supplies.

By Scott Matthews, Director, Strategic Accounts, The Home Depot

Service charge pass through A landlord must provide 60 days written notice to a tenant before the landlord may amend an existing rental agreement to require a tenant to pay a new service charge adopted by a utility service provider (such as a billing service or a local government) that was not in existence at the time the rental agreement was entered into and that was adopted by a

SWV Fair Housing Fair

8. Defend against moisture. Keep outdoor fabrics and surfaces safe from the winter elements with a moisture blocking spray or sealant. Use the product to protect walkways, wood and other outdoor surfaces before the harsh weather arrives.

10. Help residents prepare. Encourage tenants to report maintenance issues immediately and share tips to help them get ready for the winter season. Let them know that they play a huge role in keeping the unit intact during the colder months.

reasonable cost. Utility bills and service charges can be transmitted to tenants via first class mail, posted on the door, or via email, if the rental agreement so provides (ORS 90.155).

W y N th h 8am to 11:30am m

6. Clear gutters. Remove debris from gutters to ensure proper drainage around the property. The fall and spring seasons are the best times to clean gutters, and property managers should take this one at least two times per year. Improper drainage can damage landscaping and the property’s foundation and cause snow and ice to build up in the winter months. 7. Protect the landscaping. The steps to winterize your landscape largely depend on your location. In milder climates, like the West Coast or Deep South, you can protect your outdoor plants by applying mulch or protective fencing and verifying that the freeze sensor on the irrigation system is working properly. In colder climates, drain water from the irrigation system so pipes and sprinklers don’t burst underground. There are three common techniques to winterize irrigation systems – manual, automatic and compressed air blow-out methods – so property managers should review the options to determine which can best protect their landscape.

in a separate bill to the tenant an explanation of: a. The manner in which the utility provider assesses the utility bill or service charge. b. The manner in which the service charge is allocated if the provider’s bill is allocated among multiple tenants, (for example: RUBs (Ratio Utility Bill back), sub meter, by number of residents in a unit, or by number of units). Landlords must include a copy of the utility bill for the tenant to review or state in the rental agreement and / or tenant bill back that the tenant can inspect the bill at the landlord’s office (during reasonable office hours) and that the tenant can have copies of the bills at a

3 CEUs

Suppliers & Sponsors We haven’t forgot about you! Exhibitor tables and great sponsorships are available for this event. Email kristen@multifamilynw.org for more details.

Rental Housing Journal Valley · October 2015

Rental Housing Journal Valley

2015 Changes to the Oregon ...continued from page 6

Lead Safety ...continued from page 4

utility or service provider or a local government within the previous six months. A landlord may not hold a tenant liable for a public service charge billed to a previous tenant.

local programs, grants, testing, and certified professionals.

8. Application order for tenant payments According to ORS 90.220(9)(a), as of January 1, 2016 funds received from tenants must be applied in the following order: a. Outstanding rents from previous periods b. Rent from the current period c. Utility or service charges d. Late rent payment charges e. Fees or charges owed by tenants under ORS 90.302 or other fees and charges related to tenant caused damages and other claims This section does not apply to rental agreements subject to ORS 90.505 – 90.840 relating to manufactured dwellings or floating homes but does affect all rental agreements for fixed term tenancies entered into or renewed after the effective date of this 2015 Act (January 1, 2016). 9. Definition change regarding emergency exits Section ORS 90.100 creates new language requiring a landlord to provide an emergency or secondary means of exiting a bedroom (in addition to the main door to the room,) and allows a tenant to terminate such a tenancy on 72 hours’ notice unless the landlord cures the noncompliance, compensates

for damages and pays a penalty for their failure to cure. This change is aimed at landlords who rent out illegal units containing bedrooms without legal or approved egress, which can be catastrophic in the case of a fire or other emergency. This law is focused on landlords who build extra rental rooms without a permit, with a specific focus on basements, attics and rooms that have no windows that can be used for emergency egress. If the landlord does not cure the noncompliance within a 72 hour period the tenancy terminates without any tenant penalties, and the tenant can recover twice the tenant’s actual damages or twice the periodic rent, whichever is greater. Within four days after termination, the landlord must return all the security deposits and any prepaid rent owing to the tenant.

Federal Regulation Federal agencies have developed and implemented measures such as these to reduce exposure to lead hazards in housing: Lead Hazard Control Grant Programs enable local and state agencies to contract for lead hazard control in low-income high-risk homes. Learn more at www.portlandoregon.gov/phb/61012. The Federal Real Estate Notification and Disclosure Rule mandates that property owners reveal information about known lead-based paint and hazards and testing to prospective buyers and renters. (www.epa.gov/lead/pubs/ fs-discl.pdf) Oregon’s Lead-Based Paint Activities Certification and Accreditation Program oversees lead-based paint inSummary spections, risk assessments, and abateIn summary, as these new laws take ef- ment. (https://public.health.oregon.gov/ fect, landlords must be vigilant in cases HealthyEnvironments/HealthyNeighregarding the mailing period of notices, borhoods/LeadPoisoning/Pages/index. pet waste in public spaces / noncompli- aspx) ant pets, homeowner / condominium HUD’s Lead Safe Housing Rule govassociation assessment fees, tenants’ fail- erns how lead safety is addressed in fedure to pay fees, exceptions to insurance erally funded housing. (www.hud.gov/ requirements, tenants’ responsibility offices/lead/enforcement/lshr.cfm) for damages, utility and public service EPA’s Renovation, Repair and Paintcharges, the order tenants’ payments ing Rule requires housing providers, are applied, and provisions for emer- contractors, and those who work in oldgency exits as they adapt their policies, er homes and child-occupied facilities to procedures and documentation to the take precautions to avoid creating and new provisions. spreading lead paint debris and dust. (www.epa.gov/lead/pubs/renovation. htm) EPA Standards on Lead Dust define what is a dangerous level of lead in paint, bare soil, and interior dust. (http://www. epa.gov/lead/pubs/leadhaz.htm) In additional, federal, state, and local fair housing laws2 protect families with children from discrimination in housing. Although lead poisoning is especially dangerous for kids, the fear poisoning or liability does not give housing providers the right to deny or discourage families with children away from pre-‘78 housing. Visit www.FHCO.org for more VALLEY, METRO, ARIZONA APT. NEWS about this and other protected classes.

ON-SITE-NW SEATTLE Salsbury Industries Questions?

Call the LeadLine: 503/988-4000. It’s a free service – request a free lead test kit, learn where to get a blood-lead test, ask

Feb, Apr, Jun, Aug, Oct, Dec

about Lead-Safe Certified contractors or how to become certified yourself. This article brought to you by the Fair Housing Council; a civil rights organization. All rights reserved © 2015. Write jbecker@FHCO.org to reprint articles or inquire about ongoing content for your own publication. To learn more… Learn more about fair housing and / or sign up for our free, periodic newsletter at www.FHCO.org. Q’s about this article? ‘Interested in articles for your company or trade association? Contact Jo Becker at jbecker@ FHCO.org or 800/424-3247 Ext. 150 Want to schedule an in-office fair housing training program or speaker for corporate or association functions? Visit www.FHCO.org/learning-resources/ trainings to learn about the trainings we offer for companies and groups. 1 Housing Providers’ Lead-Related Obligations: Distribute the “Protect Your Family from Lead in Your Home” booklet (available at http://www.hud.gov/offices/ lead/library/enforcement/pyf_eng.pdf) Get a disclosure form signed prior to contract (available at www.hud.gov) Provide the “Renovate Right3” brochure and disclosure form prior to repairs / renovations (available at www. epa.gov/lead/pubs/renovaterightbrochure.pdf) Hire a contractor who is lead-safe certified or become certified yourself 2 Federally protected classes under the Fair Housing Act include: race, color, national origin, religion, sex, familial status (children), and disability. Oregon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Additional protected classes have been added in particular geographic areas; visit www. FHCO.org to learn more.

It might be your child or grandchild at risk! If you do painting or repair work on pre-1978 homes, you may carry toxic lead dust home on your clothes and shoes. You might also poison your residents’ children if you’re doing work on a rental property that you own or manage.

ON-SITE

VALLEY, METRO, ARIZONA APT. NEWS

Salsbury Industries

Jan, Mar, May, Jul, Sep, Nov,

1010 East 62nd Street, Los Angeles, CA 90001-1598 Phone: 1-800-624-5269 • Fax: 1-800-624-5299

Rental Housing Journal Valley 2015 October p · OctoberSeptember

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Rental Housing Journal Valley · October 2015