October 2020 RHA Update Newsletter

October 2020

A monthly newsletter published by the Rental Housing Alliance Oregon

rha est. 1927

www.rhaoregon.org

In this issue:

RHA Calendar of Events...........................................page 2 President’s Message............page 3 Landlord Penalty Chart......page 4 Dear Maintenance Men....................... ...........................................................page 5 Handling Maintenance Issues During a Pandemic.....................................page 6 2020 Election and the end of 1031 Exchanges?....................page 8 Fall Maitenance Check List....................................page 11

Rental Housing Alliance Events & Classes DATE

EVENT

LOCATION

TIME

10/14

Board Meeting

Zoom

4:00pm

10/22

Mentor Roundtable

Zoom

6:00pm

11/11

Board Meeting

Zoom

4:00pm

11/21

Mentor Roundtable

Zoom

11:00am

INFORMATION

DATE

CLASSES

LOCATION

TIME

INSTRUCTORS

10/6

Online Tenant Screening

Webex

11:00am

Marcia Gohman w/National Tenant Network

10/7

How to use landlord-Reference.com

Join.me

7:00pm

Robert Collier w/Landlord-Reference.com

10/8

Managing Rental Properties in the City of Portland

Zoom

11:30am

Amber Clark w/ The Garcia Group

10/8

Online Tenant Screening

Webex

7:00pm

Marcia Gohman w/National Tenant Network

10/15

Successful Real Estate Investing

Zoom

6:30pm

Cliff Hockley w/Bluestone & Hockley

10/15

How to use Landlord-Reference.com

Join.me

7:00pm

Robert Collier w/ Landlord-Reference.com

10/20

How to use landlord-Reference.com

Join.me

7:00pm

Robert Collier w/Landlord-Reference.com

10/27

Online Tenant Screening

Webex

7:00pm

Marcia Gohman w/National Tenant Network

10/27

Terminations

Zoom

6:30pm

Mark Passannante w/ Broer & Passannante, P.S.

10/28

How to use Landlord-Reference.com

Join.me

7:00pm

Robert Collier w/Landlord-Reference.com

10/29

Online Tenant Screening

Webex

7:00pm

Marcia Gohman w/National Tenant Network

11/10

Exchange Your Rental for a Better Lifestyle

Zoom

9:30am

Richard Gann w/1031 Capital Solutions

11/10

Online Screening Class

Webex

11:00am

Marcia Gohman w/National Tenant Network

11/12

Hate & Harassment in Housing

Zoom

6:30pm

Shyle Ruder w/Fair Housing Council

11/13

Online Screening Class

Webex

11:00am

Marcia Gohman w/National Tenant Network

11/19

Relocation Fees & No Cause Terminations

Zoom

11:30am

Amber Clark w/The Garcia Group

For additional class/event information visit: https://rhaoregon.org/education

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President’s Message Ken Schriver, RHA Oregon President

October Surprise!

I sincerely hope that you, your families, and your tenants safely made it through last month’s wildfire crisis and are continuing to safely navigate the COVID-19 pandemic. I understand the exhaustion that many of you feel and look forward to sharing more relaxing times with you in the future.

It is now October first. The mornings are a bit cooler, the leaves are starting to turn, and the last of the tomatoes and peppers are coming in from the garden. Let us review some of the things that have changed for Oregon landlords since my last newsletter:

•President Trump, through the Centers for Disease Control and Prevention, issued a nationwide eviction mora

torium on September 4 that is in place through December 31, 2020.

•Last week during Legislative Days, both the Oregon House and Senate Interim Committees on Housing held

hearings regarding the eviction moratorium and the need for getting critical funds out to tenants and landlords

who have been impacted by COVID-19. However, the legislature is not expected to meet or act on any proposals

until November.

•The City of Portland has modified its Mandatory Relocation Assistance Ordinance so that a tenant who receives

a notice of any rent increase effective through March 31, 2021 may inform their landlord that they cannot afford

the increase and request relocation assistance.

•Multnomah County voted on September 24 to extend the eviction moratorium until January 8, 2021.

•Over one million acres were burned in multiple megafires throughout the state; hundreds of homes and, most

tragically, at least 10 lives were lost.

This was not a September to remember. I am not sure that October will be much better, as there is a good chance that Governor Brown will issue an Executive Order to extend the statewide eviction moratorium through at least December 31. If that happens, I guess it won’t be much of a surprise.

Rental Housing Alliance Oregon and other rental housing groups throughout the state have been sharing statistical data gathered from our monthly surveys as well as your individual stories with Governor Brown, the legislature, and others.

We have emphasized that (1) the costs of the COVID-19 housing crisis should be borne by society as a whole, not solely by landlords; (2) tenants claiming inability to pay rent should be subject to a means test; (3) constantly changing regulations, often passed at the last minute before a so-called “hard date,” are creating confusion and chaos; and (4) funding, and a long-term solution, is needed now; stop kicking the can down the road.

There is reason for measured optimism: Several legislators who serve on the two Interim Committees on Housing are hearing us and have been hearing from you. Keep those calls coming, especially if you are a small landlord who has lost significant income on which you depend. It is critical that our legislators, who are also our neighbors, hear directly from you as individuals as well as from organizations like RHA Oregon.

Finally, thank you very much to all the landlords who provided information on units that may be available for housing individuals and families displaced by the wildfires. The state is now working with FEMA on a Disaster Housing strategy that will better define specific needs. Once this is in place, watch for another email.

Have a great October and enjoy those peppers and tomatoes! www.rhaoregon.org

RENTAL ALLIANCE UPDATE October 2020

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Landlord Penalty Chart Fair Access in Renting (FAIR) Ordinances, City of Portland, Oregon.

By, Cliff Hockley and Russell White, President and Director of Residential Services Bluestone and Hockley Real Estate Services The time has come for Portland landlords and property managers to be paying closer attention. Even though the final drafts of the ordinances have just arrived, rest assured tenants will be testing us to ensure we are complying with all of the new rules and regulations. Training sessions for Portland renters on these ordinances have been going on since mid-February and will continue through at least May. A summary of the new rules can be found here https://www.svnbluestone.com/major-changes-coming-tocity-of-portland-residential-property-management/ The Portland Bureau of Housing (PHB) has published their list of rules and forms just ahead of the March 1, 2020 deadline (https://beta.portland.gov/phb/rental-services/fair-access-renting-fair-rules). These ordinances are daunting and to avoid a financial blow, you need to be familiar with all of them.

Penalties As a reference tool, we have created a chart of the damages built into the new ordinances. It’s astonishing and overwhelming.

No mistakes allowed, otherwise you will pay applicants or tenants considerably. Pay close attention to the penalties below and establish procedures, such as quality control check every advertisement, rental agreement and final accounting before they are sent out, to avoid mistakes.

This chart shows the potential of a penalty for each type of infraction based on the ordinance. The ordinance reads a landlord is liable to an applicant/tenant if they fail to comply with any requirement. It’s possible that you could be liable to damages to each applicant that finds the mistake you have made. Whether these penalties stack on top of each other or are a one-time charge remains to be seen. In any case forewarned is forearmed.

What is a landlord to do?

PHB – Portland Housing Bureau has established classes not just for landlords but for tenants as well (see their website). You may want to go to both of them to see what they are telling the tenants to do. As you read the material and adjust your forms and policies, take a deep breath, be patient and ask others for help. We suggest that you call the PHB, Multifamily NW, Rental Housing Alliance of Oregon and your local friendly attorney. The lawsuit filed by Multifamily NW et al., requesting a temporary restraining order and injunction against the City of Portland, was denied on February 27th, 2020, but the lawsuit is still ongoing.

We have been working diligently on our policies for some time and even now continue to refine our forms and policies to make sure we avoid these onerous penalties. If this is as frustrating to you as it is to us, send money to the Multifamily NW Legal defense fund https://www.multifamilynw.org/defense-fund.

If you feel overwhelmed or need help complying with these new ordinances, consider hiring us as your property manager.

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RENTAL ALLIANCE UPDATE October 2020

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Dear Maintenance Men

by Jerry L’Ecuyer & Frank Alvarez

Dear Maintenance Men:

By Jerry L’Ecuyer & Frank Alvarez Dear Maintenance Men: A few months ago, you had question about bath fans and removing moisture from the bathroom to avoid mold issues.

Our residents never seem to switch on the fan or leave it on long enough for it do its job. What else can I do?

Mike Dear Mike: We have often commented about wiring the light switch and the fan switch together, however if the resident turns off the lights as they leave the bathroom; the fan also turns off. Rick a general contractor that reads our column sent us what he does in this situation. Read below for his suggestion: We think it is a great idea and will eliminate any moisture issues in a bathroom. The key is to do one of two things. Either replace the wall switch with a moisture sensitive switch or replace the fan in the ceiling with a Humidity sensing bath fan.

Both will work equally well. The fan will turn on and off depending on the humidity in the room, thereby helping eliminating any mold issues due to excessive moisture.

When installing the fan option, make sure to eliminate the switch and wire directly to the fan. Both the switch and the fan can be found at most home improvement centers.

Dear Maintenance Men: The stench in the rental unit following a nasty eviction was overwhelming. The tenant smoked heavily and collected all sorts of garbage. The unit was a disaster. We have cleaned the unit, including the carpet and painted the walls. The place still smells bad when we show the unit to a prospective resident.

Because of the lingering smell, this unit is un-rentable. What do you suggest?

Jessica Dear Jessica: Rancid smells, nicotine, animal and organic odors are very hard to remove even after painting the walls and cleaning the carpets. Chances are if the resident was a long time hoarder; carpet replacement will be inevitable.

Remove the carpets, pad and tack strips. The tack strips are wood and can absorb and release the smell of smoke, urine etc. Thoroughly clean the floors with soapy water mixed with bleach. After cleaning the floors, it is not a bad idea to paint or use a primer to coat the flooring. www.rhaoregon.org

One of the best ways to remove the odors from the walls is using old-fashioned elbow grease! Before painting wash the walls with soapy water using a brush or rag.

Adding TSP (a powdered cleaning solution available at most hardware stores) or using a degreasing agent will help in the cleaning. If you have flat ceilings, wash them too. If you have “acoustical” or “pop-corn” type ceiling, that’s a problem. By its nature, acoustical ceiling material is difficult to clean. Encapsulating the acoustical ceiling with spray paint may solve the problem.

You will need a primer coat and a minimum of two coats of paint. If the smell is still present, give it another coat of paint and let the unit air as much as possible. Don’t forget to wash the windows and window frames as they can retain nicotine odors. Replace any HVAC filters and vacuum dust from furnaces and A/C units.

Dear Maintenance Men: How do I determine if it is time to replace a roof or just have some maintenance or minor repairs done?

Ed Dear Ed: Determining if a roof actually needs replacement or should be repaired is sometimes more of an art than a science. An old roof in good condition that has roof leaks may be as simple to solve as an inspection of the roof flashing system. The roof flashing is where the roof meets a different material or changes course. For example roof flashing is found around the chimney, in valleys, where the roof transitions to vertical a wall or around vent pipes. Any roof transition area is a potential roof leak. Keeping the roof flashings in good order is the first line of defense. However, should your roof be experiencing leaks in several different areas, missing granules (bald spots) and pooling; might be an indication of a roof past its prime and ready for replacement. In the case of a shingle roof, the tell tale signs are more obvious. For example a shingle roof may exhibit curling edges, loss of granules and material brittleness. This roof may be beyond repairs and should be replaced. Tile roofs may present different issues as they may look great on the outside, but have hidden damage under the tiles, such as a rotted felt membrane or disintegrating roofing paper. These are much more difficult to solve and often times the repairs are more expensive than replacement.

When requesting a bid from a

(continued on page 7)

RENTAL ALLIANCE UPDATE October 2020

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Handling Maintenance Issues During a Pandemic: A Legal Perspective Bradley S. Kraus Attorney at Law, Warren Allen, LLP

By now, many of us are growing tired of the burdens that COVID-19 has placed upon us. From job losses to restrictions on travel and other leisure activities, the corona virus continues to shape our lives. Worse yet, it does not appear to be going anywhere soon.

Many of our elected officials have suspended several tenant obligations by way of moratoriums and proclamations.

They have not extended that same courtesy to landlords.

One landlord obligation (among many) challenged by an extremely transmittable virus is the handling of maintenance issues during a pandemic. While landlords never had to worry about things like “self-quarantining” or “socialdistancing” before this year, these things are here to stay.

•So how do you handle a lack of manpower if your staff is self-quarantining?

•What about tenants who cannot seem to maintain proper distance when a maintenance issue is addressed?

Maintenance issues during a pandemic still require a response First, it is important to remember that it is illegal to ask tenants to waive their rights under the Landlord/Tenant Act. ORS 90.320 requires a landlord to maintain the dwelling unit in a habitable condition at all times … even during a pandemic.

Accordingly, a tenant who makes a maintenance request has the right to have it promptly addressed. This includes those times when you may not have maintenance staff due to illness, vacation, or otherwise. Throughout those times, your obligations as a landlord persist, so it may behoove you to have a back-up list of outside vendors you can call in a pinch.

Some tenant issues are obviously more pressing than others.

With small issues, your tenant may desire to have minor maintenance issues—e.g., something which does not substantially diminish the habitability of the premises—taken care of down the road, perhaps when the virus’s transmission slows and life returns closer to our previous “normal.” Should this be true, be sure to (a) have your tenant indicate such a desire in writing, and (b) continue to follow up with the tenant intermittently to ensure the issue stays on the radar. By properly documenting the tenants’ desire to wait and following up, you can protect yourself from any claims down the road that you violated your obligations.

When an issue must be addressed quickly, health and safety protocols advised by experts should be observed. It is important that your staff maintain proper distancing and sanitization while addressing any maintenance requests. This includes wearing a mask throughout their work, and sanitizing after the work is done. This will ensure the safety of both your tenants and your staff in these unsettling times.

What if tenants won’t wear a mask and social distance?

Some tenants may not feel the same regarding things like distancing.

If your tenant refuses to acknowledge the safety and space your staff needs and deserves, remind them of the importance of things like distancing and wearing a mask around others. Let them know that if they fail to observe the same, your staff will come back another time.

If they fail to heed these warnings, your staff ’s safety should take priority, and they may be required to leave for their own safety. Be sure to document these issues and the reason your staff left, both in an office log and in writing with your tenants, and advise them that your staff will return when their safety will be respected. These communications could be critical down the road, should your tenant blame you for their own failure to respect the safety of others.

These are unprecedented times in which we live.

As landlords, issues involving staffing (due to sickness/quarantine), spacing, and safety have now entered the landlord/ tenant equation. Both landlords and tenants should respect the gravity of these issues, even though their interaction with the landlord/tenant act continues to evolve.

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RENTAL ALLIANCE UPDATE October 2020

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FIND EVICTIONS STRESSFUL?

503-­‐242-­‐2312

Full FED Service First Appearances evict@landlord-­‐solutions.com Small Claims

Maintenance Men Cont.

CONTINUED FROM PAGE 5

roofing contractor, always ask for a cost to repair the existing roof and a cost to replace the roof. When having multiple bids, always use the same scope of work for each roofer. A deviation in scope will make it harder to determine the correct course of action.

WE NEED Maintenance Questions!!! If you would like to see your maintenance question in the “Dear Maintenance Men:” column, please send in your questions to: DearMaintenanceMen@gmail.com

Bio: If you need maintenance work or consultation for your building or project, please feel free to contact us. We are available throughout Southern California. For an appointment please call Buffalo Maintenance, Inc. at 714 956-8371 Frank Alvarez is licensed contractor and the Operations Director and co-owner of Buffalo Maintenance, Inc. He has been involved with apartment maintenance & construction for over 20 years. Frankie is President of the Apartment Association of Orange County and a lecturer, educational instructor and Chair of the Education Committee of the AAOC. He is also Chairman of the Product Service Counsel. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance.com For more info please go to: www.BuffaloMaintenance.com Jerry L’Ecuyer is a real estate broker. He is currently a Director Emeritus and Past President of the Apartment Association of Orange County and past Chairman of the association’s Education Committee. Jerry has been involved with apartments as a professional since 1988. www.rhaoregon.org

RENTAL ALLIANCE UPDATE October 2020

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Will the 2020 Election Mean the End of 1031 Exchanges?

Austin Bowlin, CPA – Partner at Real Estate Transition Solutions

Biden’s Plan to Eliminate 1031 Exchanges Election years always have an element of uncertainty associated with them. Owning and managing investment real estate presents enough challenges, especially during difficult economic times, so the potential for significant policy change only makes the job that much more difficult. 2020 has already been an “unprecedented” year and now Presidential candidate Joe Biden wants to eliminate Section 1031 from the tax code to fund his proposal for universal childcare and in-home care for seniors.

What is a 1031 Exchange?

IRC Section 1031 allows for the taxes associated with the sale of investment property such as capital gains tax and depreciation recapture tax to be deferred, provided “like-kind” real estate is acquired within 180 days following the sale of the original property. Commonly referred to as “1031 Exchanges”, IRC Section 1031 has been part of our tax code for nearly 100 years and is utilized by thousands of small and large investment property owners every year. For further information on the history, rules, benefits and strategies available using 1031 exchanges, please visit our website at www.re-transition.com and download our free guide: “Understanding 1031 Exchanges” Why Eliminating IRC Section 1031 is a Bad Idea?

Presidential candidate Joe Biden portrays 1031 Exchanges as a tax loophole for the wealthy, even though 1031 Exchanges are clearly codified within our tax code and are available to all owners of investment real estate – regardless of the property size or individual’s income. His proposal eliminates the use of 1031 Exchanges for taxpayers with annual income in excess of $400,000. Limiting the use of 1031 Exchanges is not only bad policy but reveals a lack of understanding of the role real estate plays in our economy.

Real estate represents a major portion of the U.S. economy. According to Ibis World, a global industry research firm, commercial real estate employs nearly 3.3 million individuals within the United States and is the U.S.’s 7th largest industry. Real estate is such a large U.S. industry, in part, because of the ability for capital to move efficiently between properties. 1031 Exchanges are a major driver of that efficiency. Utilizing a 1031 Exchange, capital can be reinvested from one property to the next without a significant reduction from taxes. The movement of capital creates economic opportunity for brokers/agents, consultants such as appraisers, lenders, bookkeepers, property managers, construction workers, insurance agents and many other hardworking individuals. Candidate Biden talks about the taxes that are deferred annually through 1031 Exchanges as if these dollars would then be available to spend on social programs, which they will not. The reality is the volume or “velocity” of real estate transactions would decline significantly and with that decline would come the loss of hundreds of thousands of jobs.

California’s implementation of Proposition 13 in 1978 is a perfect example of how this concept would play out.

Proposition 13 stated that the assessed value of property for tax purposes could not increase (continued on page 9) 8

RENTAL ALLIANCE UPDATE October 2020

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2020 1031 Exchanges Cont.

CONTINUED FROM PAGE 8

more than 2% annually beyond the 1976 value, unless there was either a change of ownership or completion of new construction. The result? Individuals owning property with a fair market value that exceeded the assessed value for property taxes purposes refused to sell their property due to the increased taxes they would bear upon the purchase of new real estate. Many properties went underutilized and undeveloped because the tax structure made it unattractive to either sell or improve. The same series of events would play out if 1031 Exchanges were limited.

This is not the first time eliminating 1031 Exchanges has been discussed as a means to narrow the deficit between our Federal tax revenue and Federal spending, nor will it be the last. Fortunately, several respected economists have studied the impacts of the proposal and the results are far from favorable for Americans. A 2015 report co-produced by David Ling of the University of Florida and Milena Petrova of Syracuse University entitled “The Economic Impact of Repealing or Limiting Section 1031 Like-Kind Exchanges in Real Estate” states: “[…] the cost of like-kind exchanges is likely largely overestimated, while their benefits are overlooked. The elimination of real estate exchanges will likely lead to a decrease in prices in the short run, followed by an increase in rents in the longer run. These negative effects will be more pronounced in high tax states. Elimination will also likely produce a decrease in real estate investment, increase in investment holding periods, and an increase in the use of leverage.”

In the same year, Ernst & Young produced a report quantifying the impact of eliminating 1031 Exchanges at a net reduction in GDP between $61 billion and $131 billion over a 10-year period. In 2016, the Tax Foundation produced a report stating that eliminating 1031 Exchanges would provide $4 billion of additional annual tax revenue at a cost of $18 billion in GDP – hardly a return on investment anyone would consider attractive.

In summary, 1031 Exchanges create jobs that benefit millions of Americans. Section 1031 is not a tax loophole, but a very intentional section of our tax code that benefits individuals of all economic levels. Do wealthy real estate investors benefit from 1031 Exchanges? Yes. Do “mom and pop” property owners benefit from 1031 Exchanges? Yes. Do tenants and small businesses benefit from 1031 Exchanges? Absolutely. Hopefully Candidate Biden will move beyond political rhetoric and take a good look at the economic data to support maintaining 1031 Exchanges. Failure to do so will negatively impact an industry already being asked to shoulder a significant portion of the turmoil that has resulted from Covid-19 and is quite simply bad economic policy, in my opinion.

If you are considering a 1031 Exchange and have questions, contact Real Estate Transition Solutions to schedule a complimentary consultation.

Our free consultations can be done over the phone, via web meeting, or in person at our office in Mercer Island, Washington, or in Portland, Oregon.

To schedule your free consultation, call 206-686-2211, email info@re-transition.com, or visit www.re-transition.com/free-1031-consultation.

Austin Bowlin, CPA – Partner at Real Estate Transition Solutions, provides exit strategy analysis, execution, potential income, and equity replacement options for investment property owners.

About Real Estate Transition Solutions Navigating the Exchange process successfully can be challenging and complex. For over 20 years, Real Estate Transition Solutions has helped investment property owners navigate and execute tax-deferred 1031 Exchanges, Delaware Statutory Trusts (DSTs), complex real estate investments, and tax planning strategies. Our team of dedicated 1031 Exchange consultants help clients select and acquire Exchange properties that seek to meet their financial and lifestyle objectives. To learn more about Real Estate Transition Solutions, visit our website at www.re-transition.com.

The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. There are material risks associated with investing in DST properties and real estate securities including liquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potentially adverse tax consequences, general economic risks, development risks, long hold periods, and potential loss of the entire investment principal. Potential cash flows/returns/appreciation are not guaranteed and could be lower than anticipated. Diversification does not guarantee a profit or protect against a loss in a declining market. It is a method used to help manage investment risk. DST 1031 properties are only available to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney. Because investor situations and objectives vary this information is not intended to indicate suitability for any individual investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for guidance regarding your individual situation.

Real Estate Transition Solutions offers securities through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services through Concorde Asset Management, LLC (CAM), an SEC-registered investment adviser. Real Estate Transition Solutions is independent of CIS and CAM. www.rhaoregon.org

RENTAL ALLIANCE UPDATE October 2020

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Considering Selling Your Investment Property?

Considering a

1031 Exchange?

ASK US ABOUT:

1031 Exchange Solutions Real Estate Investing Seminars and Workshops Passive Investment Opportunities – No More Tenants Toilets and Trash!

Delaware Statutory Trust (DST) Properties Triple Net Leased (NNN) Properties 721 Exchange UPREIT Properties – How to 1031 Exchange into a Real Estate Investment Trust (REIT) Opportunity Zones Preferred Return Investment Opportunities

Learn More at www.kpi1031.com or call 1.855.466.5927

CALL TODAY

FOR A FREE BOOK ON 1031 EXCHANGES YOU WILL ALSO GET FREE 1031 EXCHANGE LISTINGS! 1.855.466.5927 or visit www.kpi1031.com

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax and legal professional for details regarding your situation. This material is not intended as tax or legal advice. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities. Preferred return is not guaranteed, and subject to available cash flow.

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RENTAL ALLIANCE UPDATE October 2020

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Fall Maintenance Checklist In fall, prepare your rental property and yard for cooler temperatures, falling leaves and more hours spent indoors.

Outdoor Tasks:

Clean gutters and downspouts.

Have a fireplace professional clean & inspect the fireplace, roof and chimney for cracks or damage.

Close or install covers on foundation vents.

Rake leaves and shred to use as mulch or dispose of them based on local guidelines.

Close or install storm windows.

Remove hoses from spigots. Install spigot covers.

Prune trees and shrubs.

Have heat pump professionally inspected and serviced.

Indoor Tasks:

Test all smoke and carbon monoxide detectors.

Check windows and doors for weather-tightness and install weather stripping where it's needed.

Have furnace professionally inspected and serviced.

Maintain clean drains by adding one-half-cup baking soda followed by one-half-cup white vinegar.

After 10 minutes, flush with boiling water.

If needed, set traps for rodents and/or insects. Use a professional service if necessary.

Katie O’Neal is a Licensed Property Manager, Continuing Education Provider, Chair of the Education Committee for the RHA Oregon, and General Manager of the Portland Oregon branch of Acorn Property Management, LLC. She can be reached with questions or comments at 971-352-6760 or Katie@AcornPM.net.

www.rhaoregon.org

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Monthly Fire Safety Tip Monthly Safety Tip For Multi-Family Housing

Fire Lanes

Tualatin Valley Fire & Rescue 503.649.8577

When you dial 9-1-1 to report a fire or medical emergency, knowing help is on the way is a relief. But imagine if the fire engine or the ambulance couldn’t reach you!

Fire crews can be blocked from entering and assisting at an apartment complex if you or your neighbors block emergency fire lanes.

What does a fire lane look like: Fire lanes are driving surface areas that are a minimum of 20 feet wide.

They are required to be marked with a “No Parking—Fire Lane” sign posted no lower than four feet, and no higher than seven feet. In addition, fire lanes have painted curbs, either red with white letters, or yellow with black letters, every 25 feet stating “No Parking—Fire Lane”.

What can happen if you block a properly marked fire lane?

Law enforcement or privately contracted tow companies can have your vehicle removed and impounded for parking in properly marked fire lanes.

The delay as crews scurry to find another way to reach the emergency could cost someone’s life. If you are responsible for the delay, you risk additional legal exposure.

Why is a fire lane important?

Our largest piece of firefighting equipment is Truck 51. This truck is 13 feet wide, but when operating the 100 foot aerial ladder it’s required to use outriggers (stabilizers) extending its width to 20 feet!

For more fire safety tips, visit www.tvfr.com