August 2012 RHA Newsletter

AUGUST 2012

THE RENTAL HOUSING ASSOCIATION of Greater Portland

2012

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AUGUST

Oregon Apartment Association, Inc. WWW.RHAGP.ORG

UPDATE INDEX RHAGP Annual Picnic Upcoming Events

3 4

President’s Message

5

How Much Are Your Two Bedooms? 6 Thank You Early Sponsors

6

The Landlords Fifth Sense

7

Dear Maintenance Men

8-9

Monthly Tips on Management

10

Ways to Extra Revenue

11

Preferred Service Guide

12-14

RHAGP Classes

15

Craigslist Scam

16

Do You Have Satisfied Residents? 17 Five Tips on Creating Effective Rental Listing 20 Home VS Business Expenses

21

Fire Safety

22

Denise Goding and Paul Turnpaugh at RHA’s 2011 Annual Picnic

COME JOIN THE FUN AT THE RHA 2012 ANNUAL PICNIC OAKS PARK AUGUST 15TH STARTING AT 3:30PM See Page 3 for more details.

www.RHAGP.org

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RHAGP UPDATE

COME JOIN A GREAT ORGANIZATION! RHA OFFERS: Your voice heard- State and Local legislative representation Education- We offer a wide variety of monthly training programs, members get a significant discount on classes Monthly Subscription to the UpdateOur monthly newsletter the Update contains up-to-date information on landlord/tenant issues and legislative information Substantial discount on Attorney drawn forms-60% off all rental forms and books for members Savings on tenant screening- Report charges are automatically posted to your interest free account Fully Staffed Office- Our friendly office staff are here Mon.-Fri. 9am-5pm, happy to help you with your property management needs

GET YOUR ATTORNEY DRAWN RENTAL FORMS Visit rhagp.org- Click on “Forms Store” to order physical paper forms mailed directly to you. Click “Online Forms” to create an individual form by filling the form out, downloading the form to your computer and printing Call 503/254-4723- Order forms over the phone with one of our friendly representatives Come visit us at 10520 NE Weidler Portland OR 97220- Fast friendly service

LANDLORDS DOING GREAT THINGS IN YOUR COMMUNITY

AUGUST 2012

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JOIN THE FUN AT THE RHA ANNUAL FAMILY PICNIC Wednesday, August 15, 2012 at Oaks Park Area 1 in SE Portland from 3:30 to 9 p.m. Dinner 5 p.m.

$5.00

Featuring Oaks Fun Rides Delicious Food and BINGO If you plan on playing bingo, you need to bring an age appropriate prize (if it’s a child playing, bring an appropriate age prize and if an adult playing bring an adult prize, etc.)

PICNIC MENU

Golden Fried Chicken, Hot Dogs, Baked Beans, Relish Tray, Fresh Fruit, Jell-O Salad, Potato Salad, Cole Slaw, Chips, Rolls, Watermelon, Pies, Cookies, Lemonade, Ice Tea, Coffee and more!

Directions

From I 5 North: Travel SOUTH on I-5. Take the Lake Oswego Exit-299a. Travel SOUTH on S.W. Macadam Ave. two miles to the Sellwood Bridge.

Stay in the LEFT lane. Travel Eastbound over the Sellwood Bridge. Turn LEFT onto SE 6th. Turn LEFT on SE Spokane, go down the hill on SE Spokane and over the railroad tracks. Take the FIRST RIGHT. Follow the winding road to Oaks Park.

From I 5 South: Travel NORTH on I-5, take the Terwilliger Ave Exit (Exit 297). Turn RIGHT onto Terwilliger Ave and travel to the top of the hill, turn LEFT onto SW Taylor Ferry. Travel down the hill and turn RIGHT onto Macadam Ave., Travel SOUTH on Macadam stay in the LEFT lane, turn LEFT onto the Sellwood Bridge. Turn LEFT onto 6th Ave. Turn LEFT onto SE Spokane St. Go down the hill on SE Spokane and over the railroad tracks. Take the FIRST RIGHT. Follow the winding road to Oaks Park.

Pre-Registration Appreciated!

Please mail this to RHAGP or call 503-254-4723 Name(s): Address: City:

State:

Zip:

Number of Adults & Kids over 12: Number of Kids - 12 and under: Number of limited Ride Bracelets: Total Amount mailed to RHAGP:

Phone: @ $5.00 ea @ FREE @ $10.00 ea

$ $ $

mail to: RHAGP, 10520 NE Weidler, Portland, OR 97220 Or Fax to 503-254-4821 or call 503-254-4723 www.RHAGP.org

RHAGP UPDATE

Page 4 Scan QR Code on Smartphone for Online Events Info.

UPCOMING EVENTS

AUGUST 2012 Su

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6 13 20 27

7 14 21 28

W 1 8 15 22 29

Th 2 9 16 23 30

SEPTEMBER 2012 F 3 10 17 24 31

Sa 4 11 18 25

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3 10 17 24

4 11 18 25

5 12 19 26

6 13 20 27

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23/30

Sa 1 8 15 22 29

Date

Event

Location

Time

8/8 8/9 8/10

Board Meeting Commercial Lending Class Understanding Your Decision Point Report *Online Tenant Screening Class Annual Picinic Understanding Your Decision Point Report Identifying Water Intrusion Problems Class *Online Tenant Screening Class

RHA Office RHA Office WebEx

5pm 6:30pm See Page 15 for more details.

11am See Page 15 for more details.

RHA Office

11am

Oaks Park WebEx

7pm

Standard TV & Appliance WebEx

7pm

Reserve by 8/27/12, 5 people need to register for there to be a class.

Date

Event

Location

Time

Notes

9/3 9/12 9/13

OFFICE CLOSED Board Meeting East Side Class Understanding Your Decision Point Report Dinner Meeting Understanding Your Decision Point Report *Online Tenant Screening Class Westside Class

RHA Office RHA Office RHA Office WebEx

9-5 In Observance of Labor Day 5pm 6:30pm See September Update for more details.

11am See September Update for more details.

Red Lion WebEx

6pm 7pm

WebEx

7pm

8/14 8/15 8/21 8/28 8/28

9/19

9/25 9/25

Standard TV & Appliance

Notes

Reserve by 8/13/2012, 5 people need to register for there to be a class.

See Page 3 for more details.

See Page 15 for more details.

6:30pm See Page 15 for more details.

See September Update for more details.

See September Update for more details.

Reserve by 9/24/2012, 5 people need to register for there to be a class.

6:30pm See September Update for more details.

* Registration is required, please call the RHAGP office for details 503-254-4723

Other Events: August 21st, 6:30 p.m. - NWREIA Multi-Family Commercial Real Estate Secrets RHA Offi ce - Call Jerad Goughnour for more info 503-789-3212 September 18th, 6:30 p.m. - NWREIA Multi-Family Commercial Real Estate Secrets RHA Offi ce - Call Jerad Goughnour for more info 503-789-3212

AUGUST 2012

PRESIDENT’S MESSAGE

By Phil Owen, RHAGP President

“A Shared Path to Fair Housing” was the headline of the Oregonian’s article last June 9th. After reading this I could only conclude that the only way to please them would be to mandate that at least one house on every block in Oregon must be occupied by a low income family.

Every family will have to live in a neighborhood selected by the government to assure the quotas are met regardless of the wishes and needs of the families.

It seems that although the government talks about choice in housing for everyone, they want to take it away so they can obtain a preconceived result. The common answer is we need more government so we can spend more money.

Agencies and governments serving Multnomah, Washington and Clackamas counties accept about $170 million a year in federal money for affordable housing. In doing so, under the Fair Housing Act, they are expected to try to spread affordable housing across neighborhoods. They are expected to avoid concentrating poverty or people of color. In taking the money, they explicitly promise to identify and dismantle barriers to those efforts.

The consequences are far-reaching. Nationally, the U.S. Department of Housing and Urban Development spends nearly $35 billion a year on low-income rental housing programs. In Multnomah, Washington and Clackamas counties, that money provides housing or assistance to at least 20,000 households. People of color, because they are overrepresented in subsidized housing, are particularly affected. In Multnomah County, for example, more than 8,800 black residents -- nearly 1 in 5 -- rely on some sort of assistance from the housing authority.

HUD money How much local governments and agencies receive a year • $85 million: Home Forward (the housing authority that serves Multnomah County) • $29 million: Rent-assistance contracts administered in the metro area by the state • $23 million: Washington County Housing Services • $15 million: Housing Authority of Clackamas County • $13 million: Portland/Multnomah County, Community Development Block Grant (not all CDBG money must go to housing projects) and HOME funds • $4 million: Washington County, CDBG and HOME block grants

•

$3 million: Clackamas County, CDBG and HOME block grants Now we know that it is VERY LIKELY that a bill will be submitted requiring that Section 8 be made a protected class in Oregon. Tina Kotek has made it clear that this is on her agenda and has already begun planning out strategy around this issue.

In Washington, Redmond, Bellevue, Seattle and Unincorporated King County have already adopted protected class status for Section 8 recipients.

The Rental Housing Association of Greater Portland is evaluating language that would prohibit local government from requiring persons to participate in, or accept housing choice vouchers from federal housing subsidy programs.

I feel that the Portland Section 8 program which is administered by Home Forward has been doing a great job of encouraging property owners to accept subsidized tenants by realizing that they have to pay rents that are market rate for the area they are in. They have also made efforts to provide quality customer service to Section 8 landlords and tenants.

This has increased the number of families that were able to move into the areas near where they wanted or needed to live.

The property owners still have to put up with several issues. They have to have HUD approved contracts, there are unpaid rental days waiting for a move-in inspection, notice requirements to Home Forward to get rent increases, and annual inspections.

It seems to me that for the state or city to make another protected class amounts to taking other people’s freedoms and it seems that we are losing more of our freedom every day. It is the landlord that has the responsibility to not only maintain the property but to ensure that all the tenants have the opportunity to have the safe and peaceful use of their unit. It seems clear that there are forces that don’t think that the free market will work, so they want to take tax payer money to deny property rights.

Definition of 'Property Rights' Laws created by governments in regards to how individuals can control, benefit from and transfer property. Economic theory contends that government enforcement of strong property rights is a determinant regarding the level of economic success seen in the area. Individuals will create new forms of property to generate wealth only when they are assured that their rights to their property will protect them against unjust and/or unlawful actions by other parties.

Phillip Owen

www.RHAGP.org

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RHAGP UPDATE How much are your two bedrooms?

Thank You Early Picnic Sponsors We would like to thank the following that have already agreed to sponsor the 2012 Picnic:

GOLD SPONSORS Jeff Bennett - Warren, Allen LLP Roger Harms - Contract Furnishings Mart

SILVER SPONSORS Ron Garcia-Garcia Group Jon Moon - Northwood Business Services David Frost- Frost Integrated Pest Mgmt.

Tony Kavanagh- G & C Distributing Paul Toole- State Farm Insurance

BRONZE SPONSORS Lynne Whitney-, Real Estate Roofing Terry Klein- O’Meara’s Carpet Cleaning Liz Carpenter- LizC Real Estate Investments LLC Find the key Logo hidden amongst the Picnic Sponsor signs at the Picnic to qualify to win 1 of 3 prizes.

Our sponsors help keep the member price of the picnic low.

There is still time for sponsors to sign up, call Alita at 503-254-4723 for details.

Thank you sponsors!

In listening to phone calls I wondered how often we get the question, “How much are your 1/2/3 bedrooms?” I can tell you from the calls I’ve listened to that it happens a bunch. The problem is, so many people want to just answer that question for the customer right away. Here’s why I think you should redirect that question when you’re talking to a prospect on the phone.

1. They already know your price. We know they found your website, an ILS listing, or some ad that shows your pricing. What they are looking for is to confirm what they found in those listings is accurate (including other information beyond price).

2. They really want to know if you have one available for their moving date. Again, they are looking for some type of confirmation on something they may or may not have found in your listing. This is actually more important to them than price, again, because they already know your price.

3. They are checking to make sure you aren’t a complete moron. If you can’t hold a conversation with them or show interest in their needs beyond this price question then you are likely considered a moron in their mind. People want to do business with people they like. This call is your opportunity to be liked. It’s not about your amazing community, plethora of amenities, or AMAZING special.

Here are my tips: - When asked about price right up front just simply ask back, “When are you looking to move?” They forget about price and now you take the lead in the questioning.

- Take time to build rapport and learn more about the customer and their needs (beyond price). Where they work, why they are moving, who the apartment will be for, etc.

- If the conversation ever comes back to price (9 times out of 10 it won’t for quite awhile) just give a range.

Customer: “So, how much is the two bedroom?”

You: “Did you have a price range you were looking to stay in?”

Customer: “I’d like to stay under $900.”

You: ” Great! The apartment we were discussing for you starts in the $800s.”

- If they ask you if you have a special the answer should always be YES. Even if you don’t, it’s all how you explain it to sound like you do. ”Absolutely, we currently have ‘SPECIAL PRICING’ on select/ all apartments.” What’s “SPECIAL” to them is whatever you tell them. They won’t know the difference.

- They called you. They are interested. Build value for your price before quoting anything.

Mark Juleen, reprinted with permission

AUGUST 2012

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The Landlords Fifth Sense

By Robert L. Cain, Copyright 2010 Cain Publications, Inc.

I was just reading parts of Attorney Tom Moorhead’s excellent book, Owner’s Manual for Landlords and Property Managers, when I came across this great point. With all the valuable information that you will be receiving on your rental application, why would you ever not give someone a rental application?

Many landlords dismiss applicants out of hand because the landlords have a “fifth sense” about the quality of applicants due to these landlords lengthy experience in the business. It’s a fifth sense because it doesn’t quite make the grade of a sixth sense and is wrong at least one out of six times. Attorney Moorhead points out that many landlords decide on the spot, for example, that someone is “too young,” that is, under 18, and thus unable to enter into a contract, so never offer an application. That is in spite of the fact that someone being underage would become immediately apparent in the screening process such as when the landlord looks at the picture ID of the applicant.

Here’s my point. We can’t tell by looking- only by screening. Bad tenants are past masters at appearing to be outstanding, upstanding citizens because they rely on landlords assuming that appearance is everything and are masters of finding new places to live since they have to do it so often. But we can cut their evil plans off at the knees; the best way to get rid of a bad tenant is to hand him or her a rental application that contains the language “we carefully screen all applicants.”

Landlords may dismiss some truly outstanding applicants out of hand simply because they don’t meet some preconceived landlord prejudice. Suppose, for example, that a construction worker is on his way home from work and sees a for-rent sign, drives by the property, notices the landlord is there, and knocks on the door? This man doesn’t do too well dealing with the public, but is great at construction work. He doesn’t even talk a good line and stammers when he says why he stopped. Mr. Knows-instantly-the quality-of-anapplicant landlord takes one look at the applicant in his dirty, work clothes and outside at his work truck that could use some washing and immediately acts as if this prospective tenant is imposing on him.

never been late with the rent. But the landlord could tell just by looking that this prospective tenant was unqualified. He never offers an application.

Later that same day, another prospective tenant is driving down the same street on his way back from some nefarious activity and sees the same for-rent sign.

This man is well-dressed and is driving a new Lexus that is about to be repossessed by the finance company because he hasn’t made a payment for three months.

He has to park several blocks away from his current home so the tow truck driver can’t find the car. He also has to sneak into his apartment because he hasn’t paid any rent lately. He has been too busy trying to impress people with his free drinks and meals while he tries to suck them into his latest scheme.

He strides into the property full of self-confidence, wearing his $1,000 suit and Hugo Boss shoes, smiles, introduces himself, and compliments the landlord on a “beautiful property.” He adds that he “could really feel at home in a place like this that is maintained so well since he wouldn’t live in just any rental home. After all, his home has to be one that fits his carefully crafted public facade.

With his fifth sense, Mr. Knows-instantly-the quality-ofan-applicant landlord takes one look at the prospective tenant and knows that this would be a wonderful person to have living in his property. He thinks about offering an application but decides against it for fear of driving off a potential, platinum-quality tenant by doubting his quality. In fact, he asks this applicant, “when can you move in?

As I pointed out above, the best way to get rid of a bad tenant and to entice a good tenant is to offer an application with the words “we screen applicants carefully” somewhere toward the top. The most successful landlords do screen every applicant carefully no matter how “good or bad” they first appear and offer each person who looks at his property an application.

This prospective tenant has worked for the same company for five years, was just promoted to supervisor, earns in excess of $50,000 a year and drives a latemodel, paid-for Toyota Camry on weekends. In addition, he has lived in his current home for seven years and www.RHAGP.org

Robert Cain is a nationally-recognized speaker and writer on property management and real estate issues.

For a free sample copy of the Rental Property Reporter call 800-654-5456 or visit their web site at www.rentalprop. com.

RHAGP UPDATE

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Dear Maintenance Men:

By Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men: I have an older apartment building in a temperate climate. The residents complain about the units being too hot in summer and too chilly in winter.

What do you recommend as the most cost effective method of insulating the building?

Sam Dear Sam: It is very common for older buildings to have no insulation whatsoever. As for where the best bang for your buck is concerned, ceiling insulation is the winner. It is very easy and inexpensive to install.

Wall insulation is much harder and involves a more invasive approach. To illustrate the differences; ceiling insulation can be either batt or loose fill insulation. The batt method is a bit more labor intensive and is less effective than loose fill. If you decide to use loose fill or blown-in insulation, be careful not to block ventilation holes or cover any through the ceiling light fixtures. Insulating existing walls typically involves drilling holes

just below any fire blocks and blowing loose fill insulation into the wall cavity. Repairs to walls will be needed after the work is completed. The best of all worlds would be to do both wall and attic insulation. However, if you must choose one over the other, we recommend doing the attic first as we have found this to be the most effective at cutting heating and cooling costs. You may want to check with your city or utility supplier; they often have low cost energy saving programs, or rebates. If it is in your budget, replace all the windows with energy saving double pane windows. The double pane windows will help keep the units cool in summer and warm in winter.

Dear Maintenance Men: My rental unit has a kitchen with a double sink and the drains smell bad. I have tried running lemon slices through the garbage disposal, it works for a short time, but the stink comes back. What steps do you recommend for resolving this problem?

Barbra Continued on page 9

Continued from page 8

AUGUST 2012

Dear Barbra: The smell may come from a number of places.

First, remove the rubber splashguard and give it a good scrub down. With the splashguard out of the way, use a small toilet type brush with liquid dish soap and scrub the inside of the garbage disposal. This will remove any slime build-up. (For safety reasons, shut the garbage disposal off at the breaker or pull the plug.) Next remove the drain trap and clean out any accumulated sludge. Many times the horizontal pipe between the trap and the wall may have hard deposits coating the inside of the pipe. The deposits will collect food and debris that may slow the drains considerably. If you have a dishwasher, check the drain line leading from the air-gap or dishwasher to the garbage disposal. It may be full of sludge that will cause a smell to come through the air-gap located next to the faucet. Clean or replace any pipes with deposits or sludge. Check both drain lines for the above problems. Now if you wish, run the garbage disposal with a few lemon slices and it should smell good and stay that way. Occasionally, throw some white vinegar laced ice cubes in the garbage disposal unit to help scrape away any debris & deodorize at the same time.

Dear Maintenance Men: Twice a week, we have a garbage truck empty our buildings trash bin. The problem is that the concrete driveway area where the truck picks up and empties the trash is badly damaged. We have patched the cracks and even dug out the area and poured new concrete. However, the cracks come back and the area starts to sink and break up.

What can I do to stop this cycle?

Marty Dear Marty: This problem can be frustrating; the new generation trash trucks are much heavier and can carry heavier loads than the trucks 20 years ago.

Adding to that problem is that our buildings seem to generate much more trash than before. We have had the same problems ourselves so we understand. The damage occurs when the truck picks up the trash bin and dumps it. The truck bounces on its front wheels each time the bin is shook while dumping the trash. The best solution is to create a landing pad for the trash truck to use. The pad should be at least one and half times as wide as the trash truck and at minimum half as long as the truck. It would be best to make the pad the full length of the truck, but it would be costly. The concrete should be a minimum of eight to twelve inches thick, with the perimeter foundation of the pad at least 18 inches deep by 12 inches wide; this will keep the edges from cracking.

Use six inches of crushed stone as the base for

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the slab. Heavy-duty rebar or heavy mesh will add strength to the slab & foundation. Contact a local concrete supplier for specifications on the size of rebar, mesh and strength of concrete needed. This landing pad is not cheap, but it should last near forever. We feel sorry for a future repair person whose job it is to remove the driveway!

Paint Trivia: In the 1860s, a painted house was a sign of great wealth. Average Americans, who often could not afford to paint their homes, kept up appearances by nailing cedar clapboard to them.

FYI: If you would like to see your maintenance question in the Dear Maintenance Men column, please send in your questions to: Questions@ BuffaloMaintenance.com Bio: Please call Buffalo Maintenance, Inc or JLE Property Management, Inc for Maintenance, consultation or management.

For an appointment, call Frankie Alvarez at 714 956-8371 or Jerry LEcuyer at 714 778-0480. CA contractor lic: #797645, EPA Certified Renovation Company and DRE lic: 01460075. Please view our websites at www.BuffaloMaintenance.com & www.ContactJLE.com

Jeffrey S. Bennett Attorney at Law Serving Oregon & Washington Landlords For Over 15 Years Just three minutes from the RHAGP main office!

850 NE 122nd Ave., Portland, OR 97230 503-255-8795 • Bennett@warrenallen.com

www.RHAGP.org

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RHAGP UPDATE

MRLANDLORD.COM MONTHLY TIPS ON MANAGEMENT IS YOUR SIGN IN THE WRONG PLACE? Once you're in this business for several years, you'll start seeing the cycles that are natural in real estate.

The timing of the cycle will vary from area to area, but the cycle exists just the same. You'll go from having all your rentals full and perhaps a waiting list of people wanting to rent from you, to having several empty apartments and not a good applicant in sight.

When you're in that "down" cycle, times can get tough. I remember one such winter. It was cold and nobody wanted to move unless they absolutely had to. As you drove through my city, you would see For Rent signs on nearly every street. None of the landlords could fill their empty apartments.

It was a renter's dream because there were many more apartments than there were renters. I had an exceptionally high number of vacancies myself. Some of my tenants had left due to job transfers, some had left due to relationship changes, and some probably left because they saw other rentals in the city for rent cheaper than what they were paying me. For me, the bottom line was that I had to get these empty places rented to cover my expenses. I had ads in the newspaper, I had canvassed some neighborhoods with flyers, and of course I had For Rent signs in front of the buildings that had vacancies.

Then one day I sent my handyman to do a number of tasks, one of which was to plant a For Rent sign in the lawn of a building. He ended up putting it at a different building that I owned (the wrong building). However, I started getting a lot of calls due to that sign. Of course, I had to explain to the callers that I didn't actually have a vacancy in that building right now, but I did have several other available apartments close by. I actually ended up renting several apartments due to that sign on the wrong lawn. Over the years, I found that this particular location was my highest visibility spot - it was the front lawn with the most passing traffic out of all my buildings.

Lesson Learned: There's no rule that says the For Rent sign has to be in front of the building with the vacancy. In retrospect it seems like common sense, but I learned to put signs in the busiest and most attractive locations and once you get the calls you can then give them the details about where the vacancies are. The first goal is to get the phone ringing. By Dan Arnold, author of Stupid Mistakes of a Self-Made Millionaire Landlord.

WHAT APPLIANCES DO YOU INCLUDE IN YOUR RENTAL? Landlords often ask the question, "What appliances should I include in my rental(s)?" Most often, the competition in the local area will help dictate what appliances landlords decide to include.

However, I'd like to offer a suggestion to rental owners. Even if you decide to have the appliances present in the rental when showing it to prospective residents, consider asking the following magic question on the application: "Are you able to provide one or more of your own appliances? If not, you can rent or purchase ours at a small additional cost."

This opens up the conversation for discussion which you can then take in whatever direction you think is best. If your state requires that you include a specific appliance, you can say that the question refers to appliances beyond the minimum requirement.

This question may help you generate additional income for appliance(s) that you did not think was possible. Even if you don't charge extra, you may be able to rent your property faster, by saying, "You are currently offering a 'Move-In Special'," where for the next new resident, we can let the appliance(s) remain in the property and you are free to use them on loan and maintain them. Should they ever stop working or you wish to stop using them, we will be glad to remove them for you."

You may also discover, that more prospective residents than you think volunteer that they have their own appliances, which allows you to use your appliances for another rental and not have to worry about the maintenance of their own appliances.

Again, by simply asking the magic question, it offers opportunity for you to "customize" your rental offer to best meet the needs of the prospective rental. The way you "present what you have to offer" can greatly affect your effectiveness in leasing your property and can increase your cash flow. How you present your rentals is often more important than what you actually offer.

The above tips are shared on the MrLandlord.com website and in the Mr. Landlord newsletter from landlord contributors and real estate advisors and authors featured on MrLandlord.com. To receive a free sample of Mr. Landlord newsletter, call 1-800-950-2250 or visit their informative Q&A Forum at LandlordingAdvice.com, where you can ask landlording questions and seek the advice of other rental owners 24 hours a day.

AUGUST 2012

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Ways to Create Extra Apartment Revenue - Yield Management

By Jim Baumgartner It is no mystery that the past few years have been tough on the multi family industry. We are seeing pockets of recovery while other regions are still suffering. Despite overall vacancy issues, you often will see certain floor plans or views maintain high demand. This is where market rate properties can boost revenue by practicing yield management.

I first started practicing yield management when I worked with a client that primarily owned hotels.

They taught me a lesson that I would never forget. When occupancy is high, the prices go up.

When occupancy is low, prices drop. Basic right?

The key, however, was to look for opportunities to grow revenue even when overall occupancy is down.

I was curious as to what Wikipedia had for a definition and really like what they had to say - there are three essential conditions for yield management to be applicable: • That there is a fixed amount of resources available for sale.

• That the resources sold are perishable (there is a time limit to selling the resources, after which they cease to be of value).

• That different customers are willing to pay a different price for using the same amount of resources.

Airlines jumped on yield management after deregulation. In essence, they cannot manufacture more seats just as we cannot add more rental units. Hotels quickly jumped on this trend as well. We all sell space for a specified time frame. We have a time limit—and if we don’t maximize that time we lose money.

There are software programs available that will help you to do this; however, if you want to experiment without the investment, gather your front-line team, take a look at your property and ask, “Which styles always rent the fastest?” Every property has apartments that rent quickly. This is an opportunity to create revenue where there was none before. Push the rents on those styles.

Create a base price. This may be as simple as taking your current pricing and adjusting from there. However, if upon review you find that some unit styles are always full and you have occupancy issues on others, you may have a pricing problem. If you aren’t already doing so, do a market analysis to compare your pricing with your comps. Are their rents higher or lower than yours? (You can look at rents per square foot; however, most customers do not take the time to analyze this. They are more concerned with “What do I get for my money and how much will it cost me each month?”)

Are their amenities better or not as nice? Is the location comparable? Put yourself in your customers’ shoes. Be as unbiased as possible.

If you were your customer, how much would you pay? As a result of this exercise you will discover where you can push rents and perhaps where some should be pulled back a bit. Increase rents for value items. Increase the base price for amenities such as fireplace, vaults, extra windows, upgraded finishes (appliances, carpet, remodels, etc.), which floor it is on (top floor is generally premium—unless you do not have an elevator, walk-outs are a premium due to convenience for dog owners and active residents) and views (pool or nature views). (One of the benefits of going through this exercise with your team and manually adjusting rents is that everyone understands the reasoning behind the pricing and can therefore explain it to their customers. This has been a frustration with yield management software.)

Invariably, when we have gone through this process we have ended up creating the equivalent of several units’ worth of revenue.

So, on a 100-unit site, we have ended up with revenue generation equivalent to 103 to 107 units (based on former average rents). At the high end you can end up with almost an extra month’s worth of revenue per year!

You will also find that you have enough income to more than offset reduced rents on the apartment styles that typically do not move quickly. This gives you the benefit of a lower ‘loss leader’ for advertising purposes as well. There is also snobbery on the upper end of the market so this increases your total range and broadens your appeal to a larger slice of the market.

At the end of this process you may find that you love the extra income that yield management brings you. (Undoubtedly your ownership will!)

At that point you will want to look at the benefits of utilizing a yield management software versus doing it yourself. There are pros and cons to both. Regardless of which you choose, you will grow your asset and hopefully increase bonuses and your career growth! Seize the opportunity!

Jim Baumgartner is Senior Vice President of RentSoda, a consulting company offering apartment marketing, business & operations consulting as well as industry-specific training.

For more information visit www.rentsoda.com or email jim@rentsoda.com.Reprinted with permission.

www.RHAGP.org

RHAGP UPDATE

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Preferred Service Guide Dual and Affiliate members support the interest of rental housing through their membership in RHA. ACCOUNTING / BOOKKEEPING Balancing Point, Inc. Sandy Buhite-Landis P.503-659-8803, C.503-504-9466 12500 SE Oatfield Rd, Milwaukie, 97222 melandsandyl@hotmail.com

Cheryl C. Delozier, CPA 503-239-0111 Charlie Rogers & Vicki Martin Tax & Accounting Service charlie@cdelozier.com

Northwood Business Svcs Jon Moon, P.503-297-2610 OBTP #B01422 LTC 5177 Accounting/Tax Services northwoodtax@comcast.net

Portland Tax Company P.503-258-0700, F.503-256-1527 Full Service Tax and Accounting portlandrose@comcast.net

ADVERTISING / MARKETING The Landlord Times P.503-221-1260 News for Property Managers and Owners www.thelandlordtimes.com

The Oregonian Publishing David Sandvig, P.503-221-8417 1320 SW Broadway, Portland 97201 dsandvig@oregonian.com

APPLIANCE-RENT,SERVICE,LEASE Azuma Leasing BJ Rosow, P.800-707-1188 P.512-236-9000, F.512-239-9009 2905 San Gabriel St #218 Austin, TX 78705

Mac-Gray Corporation Formerly Web Laundry Company Karen Anthony P-503-330-9628

Mr. Appliance of PDX, CCB#190613 P.503-658-5204 25% Labor for RHAGP Members Any Problem, Any Brand, Any Time

APPLIANCE-SALES ONLY G&C Distributing Company Tony Kavanagh, P.503-288-0221 5010 NE Oregon St, Portland 97213

Standard TV & Appliance Joe Mosee & Cathy Mosee P.503-619-0500, C.503-888-6927 3600 SW Hall Blvd, Beaverton 97005

APPLICANT SCREENING National Tenant Network Marcia Gohman P.503-635-1118, F.503-635-9392 PO Box 21027, Keizer 97303 www.ntnonline.com

Prospective Renters Verification Service Charlie Kamerman P.503-655-0888, F.503-655-0900

Let the advertiser know that you received their contact information through the Rental Housing Association of Greater Portland RHAGP P.503-254-4723, F.503-254-4821 Fast, affordable tenant screening www.rhagp.org

TrueSource Screening, LLC David Mustard P.888-546-3588, F.888-546-3588 www.truesourcescreening.com

Tenant Check LLC Brent Vaughters P.360-574-3924, F.360-397-0196 www.aptcheck.com

ASPHALT PAVING Hal’s Construction, Inc. CCB# 34434 Brian King, P.503-656-4999 20666 S HWY 213, Oregon City 97045 www.halsconstruction.com halspave@easystreet.net

ASSOCIATIONS Metro Area Smoke Free Housing Project P.503-718-6145 www.smokefreeoregon.com

ATTORNEYS Bittner & Hahs, P.C. Andy Hahs, P.503-228-5626 4949 SW Meadows Rd #260 Lake Oswego 97035

Broer & Passannante, P.S. Mark G Passannante, P.503-294-0910 1211 SW Fifth #2330, Portland 97204

Jeffrey S. Bennett Jeff Bennett, P.503-255-8795 850 NE 122nd Ave, Portland 97230 Protecting landlords’ rights in Oregon for over a decade.

Law Offices of Richard Schneider, LLC P.503-241-1215, www.rbsllc.com 2455 NW Marshall St #11, Portland 97210 Business formation ~ LLCs

Scott A.McKeown, P.C. Scott McKeown, P.503-224-1937 8700 SW 26th Ave, STE. S, Portland 97219 scottmckeown@comcast.net

Timothy Murphy, Attorney at Law Always representing ONLY landlords Tim Murphy P. 503-550-4894 522 SW 5th Ave, #812, Portland 97204

BLIND CLEANING Alpenglow Window Treatment Co. Paul Kuzmenko P: 503887-8630 paulkuzmenko10@gmail.com Featuring Ultrasonic Blind Cleaning

BASEMENT WATERPROOFING John’s Waterproofing, CCB# 15830 Crawlspace Waterproofing P. 503-233-0825 Fully Staffed www.johnswaterproofing.com

CARPENTRY & REPAIRS Eaton General Construction, CCB# 154142 P.503-539-0811 Full Service General Contractor www.eatongeneral.com

G&G Construction Inc., CCB# 162743 P.503-826-9404 Maintenance & Painting Specialists miesner@comcast.net

CARPET CLEANING Apple Cleaning Co. Order & Quotes for Carpet Steam Cleaning Apartment, House & Office Cleaning Call 503-380-5298/rolandhreed@msn.com

Dura Clean Carpet Cleaning Upholstery, Pet odor removal, Flood Service P.503-914-8785 F.503-372-9163 www.duracleanllc.com dura-clean@comcast.net

O’Meara Carpet Cleaning 503-538-1983, 503-620-5005 Cleaning, Pet Odor Removal, Flood Damage www.omearacarpetcleaning.com

CARPET SALES Contract Furnishings Mart Ross Williams P.503-230-1250, 800-275-6722 915 NE Sandy Blvd, Portland 97214 Patrick VonPegert P.503-542-8900, 800-935-1250 14160 SW 72nd Ave #110, Tigard 97224 Roger Harms P.503-656-5277, 877-656-5232 15140 SE 82nd Dr, Clackamas 97015 info@cfmfloors.com Pat Hockman P.360-896-6150, 800-267-6150 11013 NE 39th St, Vancouver WA 98682

The Floor Store Ted Stapleton, P.503-408-6488 5628 SE Woodstock Blvd Portland 97206 ted@floorstoreportland.com

CLEANING / CLEAN UP All Surface Cleaning Co., CCB# 155380 Adam Zumwalt, P.503-781-3611 Exterior surface clean & restore www.allsurfacecleaning.com

COLLECTION AGENCIES Anderson & Associates Credit Svcs, LLC P.503-293-5400, F.503-813-2159 PO Box 230286, Portland 97281 andersoncollectionagency@gmail.com

COMMUNICATIONS Comcast Business Services Dave Dronkowski, P.503-957-4186 Telephone, Internet and Cable TV services david_dronkowski@cablecomcast.com

CONCRETE Hal’s Construction, Inc. CCB# 34434 Brian King, P.503-656-4999 20666 S HWY 213, Oregon City 97045 www.halsconstruction.com halspave@easystreet.net

DOORS Goose Hollow Window Co., Inc. Mary D. Mann P.503-620-0898 marymann@goosehwc.com CCB#53631 goosehwc.com Energy Trust Trade Ally

ELECTRIC DeKorte Electric, Inc. CCB#159954 P.503-288-2211 5331 SW Macadam #258-113, Portland 97239

Portland General Electric Anne Snyder-Grassmann, P.503-464-7534

Rental Housing Maint. Svcs. CCB#163427 Gary Indra, P.503-678-2136 Fully Licensed to do it all garyindra@rentalrepairs.com

While the Rental Housing Association accepts advertising at face value, it cannot endorse the advertiser or otherwise guarantee the quality of the products or services being advertised.

Such guarantees, written or implied, are solely the responsibility of the advertiser.

ENERGY CONSERVATION EcoTech LLC P.503-493-1040 info@ecotechllc.com www.ecotechllc.com

ESTATE PLANNING Law Offices of Richard Schneider, LLC P.503-241-1215, www.rbsllc.com 2455 NW Marshall St #11, Portland 97210

EVICTIONS Action Services Wally Lemke, P.503-244-1226 PO Box 69621, Portland 97239 Your eviction & process service specialists

Barrister Support Service P.503-246-8934 Evictions, 1st appearances, process serving www.barristersupport.com

Landlord Solutions P.503-242-2312, F.503-242-1881 PO Box 7087, Portland 97007 Online evictions & first appearances www.landlord-solutions.com

Portland Pioneer Properties P.503-238-2560, F.503-232-0187 Full Prop. Management Service LIN# 200201113, CCB# 144531

1031 EXCHANGES/REITS TENANCY IN COMMON Peregrine Private Capital Corp.

P.503-241-4949 5000 Meadows Road, # 230 Lake Oswego 97035 rs@peregrineprivatecapital.com

FINANCIAL SERVICES American Commercial Mortgage Network Al Williams, P.206-264-1325 1366 91st Ave NE, Clyde Hill, WA 98004

Associated Mortgage Group, Inc. Sandi Swinford 503-781-0092 sandi@associated mortgage.com Licensed Mortgage Broker, NMLS 89930

Chase Commercial Term Lending Tom Barbour, P.503-598-3657 Steve Mozinski, P.503-598-3661 steve.mozinski@chase.com

Commercial Lending Group, Inc. Trevor T. Calton, P.503-704-4999 Professor of Real Estate Finance, PSU Commercial/Multifamily Mortgage Broker

RH Financial Services Inc. Robert Hogg, P.503-781-4181 1944 NE 45th Ave, Portland 97213 roberth@rhfinancial.net

Wells Fargo Home Mortgage Ron Eiseman, P.503-886-1497 1300 SW Fifth Ave. STE 950, Portland 97201 ronald.c.eiseman@wellsfargo.com

FIRE / WATER DAMAGE RESTORATION Cooper Construction, CCB#08587 P.503-232-3121, Since 1950 2305 SE 9th Ave, Portland 97214 www.fire-water-restoration.com

Horizon Restoration, CCB#160672 John Pedden P.503-620-2215, F.503-624-0523 7235 SW Bonita Rd, Portland 97224

J.R. Johnson Inc., CCB#102676 P.503-240-3388, 24/7 Response Catastrophe Restoration Specialists www.jrjohnsoninc.com

AUGUST 2012

Page 13

Let the advertiser know that you received their contact information through the Rental Housing Association of Greater Portland FIRE SAFETY Tualatin Valley Fire & Rescue Eric T McMullen, P.503-612-7000 7401 SW Washo Ct, STE 101, Tualatin 97062 eric.mcmullen@tvfr.com

FLOOR COVERING Contract Furnishings Mart Ross Williams P.503-230-1250, 800-275-6722 915 NE Sandy Blvd, Portland 97214 Patrick VonPegert P.503-542-8900, 800-935-1250 14160 SW 72nd Ave #110, Tigard 97224 Roger Harms P.503-656-5277, 877-656-5232 15140 SE 82nd Dr, Clackamas 97015 info@cfmfloors.com Pat Hockman P.360-896-6150, 800-267-6150 11013 NE 39th St, Vancouver WA 98682 Refinishing & Laminate flooring

Eaton General Construction, CCB# 154142 P.503-539-0811 All Types of Floor Covering www.eatongeneral.com

J & B Hardwood Floors, Inc. Jim Cripps, P.503-519-4920 jandbhardwoodfloors@gmail.com

Rental Housing Maint. Svcs. CCB# 163427 Gary Indra, P.503-678-2136 Vinyl, VCT, ceramic, hardwood installs

The Floor Store Ted Stapleton, P.503-408-6488 5628 SE Woodstock Blvd Portland 97206 ted@floorstoreportland.com

FORMS RHAGP P.503-254-4723, F.503-254-4821 Court-tested, up-to-date rental forms www.rhagp.org

FURNITURE Express Contract Services Sean Filzen, P971-678-6691 www.EFRCONTRACT.com Because furnished units rent higher

HANDYMAN Bluestone & Hockley Real Estate Services Chuck Hodges, P.503-222-3800 9320 SW Barbur Blvd STE300, Ptld 97219 maint@bluestonehockley.com

Eaton General Construction, CCB# 154142 P.503-539-0811 Full Service General Contractor www.eatongeneral.com

G&G Construction Inc., CCB# 162743 P.503-826-9404 Maintenance & Painting Specialists miesner@comcast.net

Rental Housing Maint. Svcs. CCB# 163427 Gary Indra, P.503-678-2136 Fully licensed to do it all garyindra@rentalrepairs.com

Wieder Works, CCB#164323 Darren J Wiederhold, C.503-260-2133 Maintenance, Repair, Replacement www.wiederworks.com

HAULING Junk Away Hauling CCB# 177966 P.503-517-9027 Licensed, bonded, insured, trash outs jcdoud@msn.com

HEATING & COOLING Midway Heating Co. CCB#24044 P.503-252-4003 12625 SE Sherman St, Portland 97233

Pyramid Heating & Cooling CCB# 59382 P.503-786-9522 Serving the Portland Metro area. info@pyramidheating.com

HEATING OIL TANK EcoTech LLC

MOVERS-HOUSE Emmert Development Company Terry Emmert, P.503-655-9933 11811 SE Hwy 212, Clackamas 97015

PAINT / PAINTERS Brad Poppino Painting Co. CCB# 185497 Brad Poppino P.503-659-7551,/503-957-8298 Interior / Exterior Lead Paint Certified

G&G Construction Inc, CCB# 162743

P: 503-493-1040 info@ecotechllc.com www.ecotechllc.com

P.503-826-9404 Maintenance & Painting Specialists miesner@comcast.net

HOUSING AUTHORITIES Housing Authority of Portland

Rental Housing Maint. Svcs. CCB# 163427 Gary Indra, P.503-678-2136 Professional interior & exterior painting garyindra@rentalrepairs.com

Jill Riddle, P.503-802-8565 135 SW Ash St, Portland 97204

INSULATION GOOSE HOLLOW WINDOW CO., INC. Mary D. Mann P.503-620-0898 marymann@goosehwc.com CCB#53631 goosehwc.com Energy Trust Trade Ally

Richard Hallman Painting CCB# 142467 RichardHallman, P.503-819-1210 Quality interior painting

Rodda Paint Tim Epperly, P.503-572-8191 tepperly@roddapaint.com

PEST CONTROL Frost Integrated Pest Mgmt

INSURANCE Larry Thompson Agency P.503-924-2200, F.503-924-2202 15573 SE Bangy Rd, STE 220 Lake Oswego 97035

P.503-863-0973 Residential • Commercial • Multi-Family www.frostpestfreezone.com

NW Pest Control

Robinson Financial Group Rita J. Robinson , P.503-557-4997 Group & Indiv. Health Insurance

State Farm Insurance Paul Toole, P.503-655-2206 6105 W “A” St #B, West Linn 97068

Stegmann Agency - Farmers Insurance P.503-667-7971, F.503-666-8110 202 SE 181st Ave #201, Portland 97233 lstegmann@farmersagent.com

Wolter Van Doorninck, CPCU Elliot, Powell, Baden & Baker P.503-227-1771, F.503-274-7644 8355 SW Davies Rd, Beaverton 97008

INVESTMENT SERVICES Peregrine Private Capital Corp.

Bruce Beswick, P.503-253-5325 9108 NE Sandy Blvd, Portland 97220 www.goodbyebugs.com nwpestcontrol@aol.com

Orkin Pest Control Dan Wolcott Account Manager & Inspector P-503-384-8384 dwolcott@orkin.com

PLUMBING / DRAIN CLEANING Grumpy’s Drains Portland’s #1 Drain Cleaning Service www.grumpysdrains.com 503422-9476

MJ’s Plumbing, CCB# 36338

P.503-241-4949 5000 Meadows Road, # 230 Lake Oswego 97070 rs@peregrineprivatecapital.com

LANDSCAPING J. Salinas Landscaping

Michael LeFever, P.503-261-9155 1045 NE 79, Portland 97213

ProDrain & Rooter Service, Inc. West 503-533-0430, East 503-239-3750 Drain cleaining/plumbing www.prodrainpdx.com

Rental Housing Maint. Svcs. CCB# 163427 Gary Indra, P.503-678-2136 Fully licensed to do it all garyindra@rentalrepairs.com

J. Salinas, P.503-816-1190

Oregon Tree Care P.503-929-9437 www.oregontreecare.com info@oregontreecare.com

PROPERTY MANAGERS Action Management

MASON CONTRACTORS D&R Masonry Restoration, Inc., CCB#99196 Ray Elkins, P.503-353-1650 8890 SE McLoughlin Blvd, Milwaukie97222 www.drmasonry.com

Wendi Samperi, P.503-710-0732

Alpine Property Management Tiffany Arrington, P.503-641-4620 4750 SW Washington Ave, Beaverton 97005 www.alpinepdx.com

Associated Property Management

MOLD J.R. Johnson Inc. , CCB#102676 P.503-240-3388, 24/7 Response Catastrophe Restoration Specialists www.jrjohnsoninc.com

Real Estate Roofing Service, CCB# 149575

Jane Raffety, P.503-648-2150 408 SE Baseline, Hillsboro 97123 www.associatedmgmt.com

Bluestone & Hockley Real Estate Services Cliff Hockley, P.503-222-3800 9320 SW Barbur Blvd STE300, Portland 97219

Yost Espelien, P.503-232-6653 Free Inspections, Testing & Remediation www.realestatemoldsolutions.com

www.RHAGP.org

Bridge City Properties Tony Forhan, P.503-866-8894 Serving Multn., Clackamas, Wash. counties www.bridgecitypm.com

Fox Management, Inc. Tressa L. Rossi, P.503-280-0241 C.503-750-8124, F.503-280-0242 1734 NE Broadway, Portland 97232 tressa@foxmanagementinc.com

The Garcia Group Ron Garcia, P.503-595-4747 5320 SW Macadam STE 100, Portland 97239 www.4-homes.com

Gateway Property Management P-503-303-8545 www.gatewaypdx.com Property Management Done Right!

Lakeside Property Management Co. Michelle Wrege, P.503-828-2283 Finding Home Owners Qualified Tenants www.lakesidepmc.com

Micro Property Management “We focus on the small details” P- 503-473-3742 jeannie@micropropertymgmt.com

Portland Pioneer Properties P.503-238-2560, F.503-232-0187 Full prop. managment service LIN#200201113, CCB# 144531

Prim & Prosperous Property Management 3PM, 503-635-8926 Patricia Turner turnerfp@yahoo.com

Rappold Property Management Troy K. Rappold, P.503-232-5990 1125 SE Madison St STE 201, Portland 97214 troy@rappoldpropertymanagement.com

University Real Estate Services, Inc. Tom Coulter, P.503-492-8668 929 NE 181st STE C, Portland 97230

Voss Property Management Richard Voss, P.503-546-7902 6110 N Lombard St, Portland 97203

RADON EcoTech LLC P: 503-493-1040 info@ecotechllc.com www.ecotechllc.com

REAL ESTATE SALES Bluestone & Hockley Real Estate Services Cliff Hockley, P.503-222-3800 9320 SW Barbur Blvd STE300, Portland 97219

Chris Anderson John L. Scott Real Estate 503-783-2442 chrisanderson@johnlscott.com

Denise L Goding Keller Williams Realty P.503-336-6378, C.503-799-2970 www.denisegoding.com

Elizabeth Carpenter LizC Real Estate Investments, LLC P.503-314-6498, F.503-698-6566 liz @ lizcrei.com, www.lizcrei.com

HFO Investment Real Estate Greg Frick, P.503-241-5541 1028 SE Water Ave, STE 270, Portland 97214 www.hfore.com

Ilse Norman Associate Advisor Sperry Van Ness Bluestone & Hockley p-503-459-4376 www.svnbluestone.com

RHAGP UPDATE

Page 14

Let the advertiser know that you received their contact information through the Rental Housing Association of Greater Portland J.L. Lutz & Company Jim Lutz P.503-297-7101, F.503-291-7851 5440 SW Westgate Dr #115, Portland 97221 info@jllutz.com

The Garcia Group Ron Garcia, P.503-595-4747 5320 SW Macadam STE 100, Portland 97239 www.4-homes.com

RESTORATION / RECONSTRUCTION Eaton General Construction, CCB# 154142 P.503-539-0811 Full Service General Contractor www.eatongeneral.com

Horizon Restoration, CCB#160672 John Pedden P.503-620-2215, F.503-624-0523 7235 SW Bonita Rd, Portland 97224

J.R. Johnson Inc., CCB#102676 P.503-240-3388, 24/7 Response Catastrophe Restoration Specialists www.jrjohnsoninc.com

Rental Housing Maint. Svcs. CCB# 163427 Gary Indra, P.503-678-2136 Fully licensed to do it all garyindra@rentalrepairs.com

ROOFING AAA Roof Service, CCB# 78618 Jack Robinson, P.503-642-5353 Shingle & Flat Roof Systems www.aaaroofservice.com

All Surface Cleaning Co., CCB# 155380 Adam Zumwalt, P.503-781-3611 Replacement, repair, cleaning www.allsurfacecleaning.com

Real Estate Roofing Service, CCB# 149575 Lynne Whitney, P.503-284-5522 Free Inspections, ReRoof and Repairs www.realestateroofing.com

SEAL COATING Hal’s Construction, Inc. CCB# 34434 Brian King, P.503-656-4999 20666 S HWY 213, Oregon City 97045 www.halsconstruction.com halspave@easystreet.net

Scan QR Code on Smartphone for Online Vendor Info.

SEISMIC RETROFITS EcoTech LLC P.503-493-1040 info@ecotechllc.com www.ecotechllc.com

SIDING J.R. Johnson Inc., CCB#102676 P.503-240-3388 General Contracting Services www.jrjohnsoninc.com

TELEPHONE Comcast Telephone, internet, Cable and TV Services Dave Dronkowski P.503-957-4186

UTILITY BILLING Minol USA 15280 Addison Rd. Suite 100 Addison, TX. 972-386-6611 minolusa.com

WATERPROOFING / CONCRETE REPAIR D&R Waterproofing, Inc. CCB# 99196 Ray Elkins, P.503-353-1650 8890 SE McLoughlin Blvd, Milwaukie97222 www.drmasonry.com

WINDOWS / STORM WINDOWS GOOSE HOLLOW WINDOW CO., INC. Mary D. Mann P.503-620-0898 marymann@goosehwc.com CCB#53631 goosehwc.com Energy Trust Trade Ally

J.R. Johnson Inc.., CCB#102676 P.503-240-3388 General Contracting Services www.jrjohnsoninc.com

AUGUST 2012

RHAGP CLASSES

Page 15 Scan QR Code on Smartphone for Online Event Ticket Info.

Commercial Lending Class Taught by Trevor Calton with Commercial Lending Group Thursday August 9, 2012 from 6:30pm-8:00pm at RHA Office 10520 NE Weidler Portland 97220 Trevor Calton with Commercial Lending Group is a 15-year veteran of mortgage banking and multifamily real estate, will be talking on the following topics: • • •

Calculating the ROI of Refinancing-Is it worth paying that prepayment penalty? the Current Real Estate Lending Environment-”Where’s the money?”

Calculating Property Values and Actual Returns- “How much am I really making?”

The RHAGP Mission The Rental Housing Association of Greater Portland is a group of rental housing owners and managers in the Portland metropolitan area who have joined together for the purposes of: • Providing information to improve the knowledge of rental owners and managers.

• Enhancing the reputation of “landlords” by promoting professional practices.

• Assisting local public officials on various community endeavors relating to public or private housing.

The Update is a monthly publication for members of The Rental Housing Association • Leveraging Leverage-”How a Low-Interest Assumable Loan Makes Your of Greater Portland.

10520 NE Weidler St, Portland, OR 97220 Property More Valuable.”

Phone 503-254-4723, Fax 503-254-4821 Cost is $25 for members or $35 for non-members. Register by Monday August 6th and receive a $5.00 www.rhagp.org Hours: Monday through Friday 9 a.m. to 5 p.m. discount on the price of class.

•

Leveraging Properties to Reinvest-”Can I turn excess equity into cash?”

Decision Point WebEx Class-

Editorial Staff Alita Dougherty Cari Pierce - Graphic Designer

Taught by Marcia Gohman with National Tenant Network Publisher: Friday August 10, 2012 at 11am The Rental Housing Association Thursday August 23,, 2012 at 7pm of Greater Portland This class is offered to members of the RHA only. If you have a current service agreement and do your tenant screening through the RHA and would like to learn how to read the Decision Point report with more accuracy, The opinions expressed in this newsletter are then this is the class for you. those of the authors and do not reflect those of This is a FREE class for RHA members only. This is a WebEx class that is taken from the comfort of your own home or office computer.

Call the RHA office at 503/254-4723 for more details and to reserve your spot in the class.

Identifying Water Intrusion Problems Class Taught by John Lombardi with John’s Waterproofing Co. Tuesday August 28, 2012 from 6:30pm-8:00pm at Standard TV & Appliance 3600 SW Hall Blvd. Beaverton 97005 Basements and crawlspaces leak with regularity, therefore, we will discuss new construction codes, methods of waterproofing, and proper drainage.

For existing basements and crawlspaces, we will explain why they leak, problems caused from leakage and water, structure and health, problems with water vapor, and how to guarantee repair.

Cost is $25 for members or $35 for non-members. Register by Friday August 24th and receive a $5.00 discount on the price of class. This class will be worth 1 Continuing Education Hour.

www.RHAGP.org

the Board of Directors or the newsletter editor or committee.

All advertising inquiries should be directed to Alita Dougherty or Cari Pierce at 503-254-4723.

Please notify the RHA office of any address changes.

Page 16

RHAGP UPDATE

RHAGP NEWSLETTER WARNING OF CRAIGSLIST SCAM IN PORTLAND

By Steve Sichau

I have just been scammed by a person outside the US for my rental house.

My renter is in real estate and said this Craigslist fraud is widespread in Portland now.

You can tell from the grammer and syntax of the scam email below that this looks bogus.

I put an ad on Craigslist with 1 photo and text with a rental price of $1550 for my 2500SF house in SW Portland.

to the house and on the flyer box warning that the rental ad was a scam and not to disturb the renters, so please call my phone, as the owner.

The following text was sent to me by a person who corresponded with the scammer: They listed a return phone of +34 which is in Spain From: Person who responded to scam ad

The scammers took the actual text from my real ad and made a Craigslist property ad with a phony email return address with the actual name of my current renters as actualrentersname@ Yahoo.com They did this by going into whitepages.com and typing in the address of the property. It returned the complete names of my renters including middle initial.

The scammers created an ad with my photo of the house and my ad text and listed the property in Craigslist for $900 in the scam ad.

The scammer then responded to many email replies in order to get people to send information about their credit on a rental form or to ask for money.

A number of people went to the property and disturbed my renters. The flyer box at the site listed the correct rent at $1550 and the flyer had my phone number. I got about 20 emails and calls on this house in a two day period. Many people were upset that they had one price in the scam ad and traveled to the property to see a higher rent listed.

My renters were very upset, as their real names were used to create a phony Yahoo email account, and my renters had people just showing up and knocking on their door.

I finally had to put a sign up on the front door

Sent: Friday, May 18, 2012 9:44 AM To: Subject: Suspected Spam: Re: House for Rent Hello , The house is still available for rent. As you can see a lot of people have responded to this advert and it is first come first serve. We are renting out this house because of the new contract I have signed with an employer in Spain, We have been waiting for our agent to rent out the home before we live for Spain but because of his inflated price the renting out of my home has been delayed till date, that is why we decided to handle this.

As you can see I am presently in Spain with my family, below is my phone number, you can call me anytime, skype or e-mail me. You can drive by and take a look of the house ( full address: XXXX Southwest XXXX Street, Portland OR 97221) and get back to me for more photos and renters form.

Cheers, Renters actual name at rental property +34 911 876 584 Email return address for this scam was: actualrentersname@Yahoo.com

By Steve Sichau

AUGUST 2012

Page 17

DO YOU HAVE SAD-ISFIED RESIDENTS?

BY RUSS SANDLIN If you are to be effective in property management,

you must continually strengthen resident retention. With resident retention so important, why do so many “sad-isfied” residents tell me, “When I was considering renting, they waited on me hand and foot. Now that I’ve moved in, it’s my turn to wait for everything!”

While there has been a revolution in service in our industry, many residents indicate it’s only “Lip Service!” How effective are you in living up to commitments made to your residents?

Ask yourself this question, “What does a satisfied

resident look like?” When I recently asked this of a group of landlords and property managers, they said that satisfied residents do some of the following actions: •

Smile when they pass you or speak in pleasant tones and in a warm, friendly manner over the phone • Call you by name when they greet you • Pay their rent on time • Take their garbage all the way to the dumpster (in multi-unit buildings) • Refer others like themselves to your rentals I recall one landlord who took resident retention on

as her personal mission. She remarked, “I want to make sure that living in the property is the pleasant experience I represented when I first leased them the home!”

It was obvious that she was looking for opportunities

to create resident retention. Her attitude was the most important factor. She responded with solution-oriented feedback when her residents presented her with problems. She also sought out areas where challenges might occur and modified these conditions before they became problems.

By sending resident surveys, she was able to receive specific feedback on potential areas of improvement and desired upgrades. She then worked to implement those improvements that were economically feasible. When confronted with an angry resident, she tried to remain calm, professional and most importantly, realistic about a solution. She attributed her success in working with angry residents to consistency and fair treatment to everyone.

It is critical to set resident retention goals and institute programs that meet those goals. I’ve isolated four specific stages where individuals are

making a decision on whether or not to remain or become a resident: • Prospective Resident • New Resident • Residing Resident • Intent to Vacate Prospective Resident Do you paint a realistic picture for prospects when they are first considering renting? We found that in some situations “sad-isfied” residents were created by landlords overselling the rental; i.e. promising features and property or neighborhood attributes that were not truly present in order to simply rent the place.

New Resident The greatest impact you have on resident retention occurs when the prospect becomes a resident. His/her “first impression” of living in your rental occurs then.

What programs do you have in place to cement that relationship? Here are a few possible approaches to this goal” • Move-In Package – Develop a special movein package you will give each new resident.

• Market-Ready Move-In Checklist – Create a checklist to ensure every apartment is 100% ready when the new resident moves in.

• Local Area Service Guide – Create a list of all the services and merchants available in your area, such as schools, stores and recreation.

Residing Resident It is at this time that a resident is most often forgotten. They were given special treatment when first applied and moved-in. During the move-in and property acclimation process, they received a great deal of attention from you to ensure they were settled into their new home.

What specific programs do you have in effect to create resident retention during this time? Here are a few of the many ideas developed: • Resident Rewards Program – Offer resident access to exclusive discounts to local merchants and restaurants. [AOA has the Resident Discount Club specifically designed for this purpose1] • Resident Newsletter - This device should be used to keep residents informed of rental policies and ways you celebrate accomplishments of your residents (or their

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children). For example, yard of the month, birthdays, good grades, etc.

• Referral Program – If a referral program is legally permitted in your area, it is a tremendous way to thank residents for referring new residents to your community and fill unwanted vacancies.

• Anniversary Gifts – on their rental anniversaries. Offer to give small or relatively low-cost property improvements, upgrades to your residents each year. Examples of what I’m talking about could include one room of their choice carpet cleaned, one room of their choice painted, maid service for a day, lawn or landscaping service for a day, new flooring in the bath or kitchen or one complimentary pest control treatment.

Intent to Vacate Landlords should concentrate lots of energy on possibly saving a resident who has given notice to move. Once a resident begins making plans to leave, they are certain to talk about your rental for a period of time after they move. What will they say, “What a great place, sorry I had to go” or “Was I glad to get out of there!” It’s up to you.

Intent to Vacate Program: Determine the real reason a resident is leaving. If they have a job transfer or are buying a home, it’s difficult to save that intent. However, if a resident loses a roommate or runs into a temporary financial crisis, there may be a way to work it out. Every canceled intent to vacate is like two rentals. Are you interviewing every resident giving their intent to vacate? Are you willing to paint, shampoo or even re-carpet a home to save a resident?

Cost of Moving: Develop a simple flyer that shows residents the real cost of a move. New deposits, new phone, address changes, renting a van or moving company add up to significant dollars!

Resident retention is not a destination, but a journey. It is your personal statement, “This is my work product. I’ve put a measure of my time and life into creating a great home\ that I can be proud of.”

Russ Sandlin is a management consultant and can be reached at RussSandlin.com.

Reprinted with permission of the Wisconsin Apartment Association News.

new

The Update Q&A

Here is your opportunity, submit your landlord/tenant questions to Q&A at Rental Housing Association of Greater Portland at 10520 NE Weidler, Portland, OR. 97220 or email your questions to alita@rhagp.org.

The following are questions and answers supplied by oregonlandlordlaw.com Q. When can I serve a 30 Day or 60 Day No Cause Notice?

A. In month-to-month tenancies, the landlord may serve "No Cause" Notice of Termination. That Notice, must be 30 days long, if all tenants occupying the premises have lived there less than one year, or 60 days long if they have lived there more than a year. (Caveat: A landlord can serve a 30 day no stated cause Termination Notice to a month-to-month tenant, regardless of the length of their residency, upon the sale of the rental property, if the buyer will be occupying the dwelling as their primary residence.)

Month-to-month tenants are only required to give the landlord a 30 day notice of their intent to move out of the rental property. Note that different rules apply to fixed term tenancies.

Q. Can I demand payment of a late fee in a Notice of Termination For Nonpayment of Rent?

A. No. The nonpayment of rent notice may not require your tenant to pay a late fee in order to avoid termination.

Q. Can I require my residential tenant to do repairs?

A. No. Q. Can I refuse to do repairs if my tenant is behind in his/her rent?

A. No. Q. What do I do if my tenant is complaining about repairs and withholding rent?

A. Get immediate legal advice before doing anything. Your tenant may be setting you up.

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RHAGP LIST OF COMMITTEES Building Chair: Phil Owen, Phone: 503-244-7986 Community Relations/Donations Chair: Tony Kavanagh, Phone: 503-522-4474 Dinner/Program Chair: Lynne Whitney, Phone: 503-284-5522 Education Chair: Ron Garcia, Phone: 503-595-4747 Forms Chair: Mark Passannante, Phone: 503-294-0910 House Chair: Robin Lashbaugh,

Phone: 503-805-5993

Legislative Chair: Phil Owen, Phone: 503-244-7986 Membership Chair: Elizabeth Carpenter, Phone: 503-314-6498 Newsletter Chair: Will Johnson, Phone: 503-221-2163 Office Chair: Robin Lashbaugh, Phone: 503-805-5993 Public Relations Chair: Margaret Baricevic, Phone: 503-329-5223

RHAGP LOBBYIST Cindy Robert, Phone: 503-260-3431

RHAGP OFFICE STAFF Alita Dougherty, Office Manager - alita@rhagp.org Pam VanLoon, Bookkeeper - pam@rhagp.org Cari Pierce, Member Svcs - cari@rhagp.org Lisa Craddock, Member Svcs-

RHAGP OFFICE Monday - Friday * 9:00am - 5:00pm Phone: 503-254-4723 * Fax: 503-254-4821 10520 NE Weidler St Portland, OR 97220 www.rhagp.org

“Landlords doing good things in their communities” www.RHAGP.org

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RHAGP UPDATE

Five Tips for Creating an Effective Online Rental Listing From Rent.com

An effective property listing provides renters all of the details necessary to understand if your property is a good fit for them. Making a good first impression is critical to get renters interested in learning more about your property. But the second step, providing all of the information they commonly need in order to take the next step, is equally important. To build your best property listing, we recommend that you: Compare Your Listing to Other Competitive Listings This will help you understand how best to differentiate your property and make your listing stand out in the crowd. Look at how comparable properties are marketing themselves and what they are offering. Then think about what features and amenities your property has that are unique and different from the others. Call attention to these aspects through descriptive text and photos to build a picture for the renter about how life would be better at your property.

Choose Your Property Images Carefully Leverage the best photos of your property and be sure to include both exterior and interior shots. Your primary image may be the only image a renter sees to determine if they want to visit your property. It should be colorful, sharp and distinct from other comparable listings. Renters have told us that photos of a rental unit’s interior are extremely important to them so don’t skimp here. Make sure you provide enough interior photos to completely show each room of the rental unit and any details that make your rental property unique.

Create Impactful Headlines We recommend that your headline highlights three aspects of your property: • Your location • An amenity and • An interior feature This will give renters a complete view of what you have to offer. It’s important to use specific and descriptive words instead of generalities to grab the renter’s attention. For example, instead of highlighting location with generic words like “convenient location,”get more specific such as “within three miles of upscale shopping and dining” or “easy access to I-5 and I-405.: When calling out an amenity, instead of “sparkling pool” you might say

“resort style pool with expansive sundeck.” As for interior features, again, specifics are more tangible.

Instead of “spacious floor plans”, try something like “up to 1,200 square feet” or instead of “renovated apartments” you might say, “brand new kitchen appliances and fixtures.”

A strong sample headline would go as follows: “Within 3 Miles of Upscale Shopping & Dining, Resort-style Pool with Expansive Sundeck and brand New Kitchen Appliances & Fixtures.”

Include Floor Plans and Complete Property Details Floor plans are the second most requested images behind interior photos for rental units. Renters want as much information as possible to help them understand if the property will work for their space requirements, furniture and lifestyle. Without enough detail, they may opt to pass over your listing entirely.

Aside from the basic information on number of bedrooms/bathrooms and rental price, make sure to include information on: • Square footage • Security deposits • Application fees • Pet policies and fees • Parking • Whether or not utilities are included in the rent • Any special amenities on the property Advertise Move-In Specials if You Have Them By displaying your move-in specials in your online ads, you provide an instant incentive for someone to visit your property. If you have a special offer for new tenants, make sure to broadcast that message in your online advertising to drive traffic to your property, increase leases and maximize the overall impact of your promotional campaign.

Rent.com is the nation’s #1 Internet listing site (ILS) with more renter traffic than any other national ILS since 2004. Fill your vacancy faster on Rent.com. To learn more, go to www.rent.com/ manage/. Reprinted with permission of UPDATE, the official publication of the Rental Housing Association of Puget Sound.

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HOME VS. BUSINESS EXPENSES AND TAX DEDUCTIONS FOR LANDLORDS From Completelandlord.com

No matter what anybody tells you, you cannot deduct personal, living or family expenses as business expenses. The IRS is committed to keeping your business expenses separate, despite a rise in fraudulent home-based business tax schemes. The IRS noted that the following examples are not considered ordinary and necessary expenses to run a business: • • •

•

•

• •

Deducting all travel, meals and entertainment because anyone you meet is a potential client Deducting all automobile or truck expenses when the vehicle was used both for personal and business travel Deducting payments to family members as business expenses when the activities performed were for the use of the home and family Deducting excessive payments to family members as business expenses when the activities performed would not warrant the amount paid Deducting utility expenses for the entire home because business materials have been placed in every room so the whole house is, in effect, the home office Deducting all of the medical expenses for family members Deducting education expenses for family members

Recordkeeping 101: Real Estate Tax Planning for Landlords Newer landlords may not be aware of all the paperwork they have to keep on tenants, their rental property and their taxes. To be safe, landlords should keep the following records to support their tax deductions, reported income and to keep tabs on tenants: • • • • •

Tax records for the last seven years Maintenance schedules for all rental property organized by property and by type of work done Improvement schedules for all rental property organized by property and by type of completed project Building records including the original cost of the building, the mortgage and information about when the building was constructed Bills, receipts and invoices from all

• • • • •

contractors, cleaning services or companies who have done work on the rental property Insurance policies for all rental property organized by building Tenant contact information including telephone number, cell number and email address Signed rental agreements and leases from all current tenants Financial information on disposition of all security deposits for current tenants Correspondence file with all letters, notices, legal actions and contacts with current and former tenants

IRS Tax Credits for Older Buildings Many new landlords shy away from buying older buildings due to higher maintenance costs associated with older structures. However, the IRS offers a substantial tax credit for landlords who buy certain older or historic buildings.

The Rehabilitation Tax Credit applies to the costs of renovation and reconstruction of specific buildings. The credit includes renovation, restoration and reconstruction but does not include new construction or enlargement of the original structure. Currently, the IRS allows: • •

10% credit for the rehab of non-historic buildings that were built before 1936 20% credit for the rehab of a Certified Historic Structure. (Certified Historic Structures are listed on the National Register of Historic Places, located in a Registered Historic District or determined to be of significance to the Historical District or community.)

The rehab credit is generally given in the taxable year in which the property was placed in service.

The taxable year is usually the time that the entire property was placed in service. The taxable year is usually the time that the entire property was ready to be rented or when only a portion was available to be rented.

Reprinted with permission of the Wisconsin Apartment Association News

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