AMPLIFY YOUR VOICE
With
Lineup of Amazing Events in 2023!
Chloe Moser | Event Coordinator | cmoser@RHAwa.org | (206) 905-0600
Are you all ready for a new year full of new and fun events?
I was so thrilled to see all your shining faces and fabulous formal wear at the Annual Gala last December, what an incredible turnout –why I would say it was the very cat’s pajamas!
2023 is here and I can’t wait to show you the lineup of amazing events we will have for you:
First off, in May 2023 we will be having the Spring Workshop and Tradeshow again. This year the event will be at Cedarbrook Lodge in SeaTac, WA. The Cedarbrook Lodge team is thrilled to host us and share with us their gorgeous venue surrounded by stunning nature views. This is your best opportunity to get information to help your rental business from across the indus-
try in a single day! Hear from housing providers, property managers, attorneys, financial experts, and more to build your knowledge base and run your rental properties with confidence. Whether you want to make sure you're complying with all of the laws in your area, find out more about investment opportunities, or make some valuable connections with RHAWA vendors to bolster your rental network, we've got you covered!
Next up, Legal Forum! If you think you’re excited about the virtual Legal Forum, get ready for our first live in-person Legal Forum since 2019. This year the event will be on June 28, with the location TBD. We can’t wait to get you in front of some incredible attorneys who can tackle those hard to answer questions.
Followed by, Membership Appreciation Day! This day is for you – our members! On a sunny weekend in late August gather your family members and join us for a fun day out. Location is still top secret…but let me tell you –it’s going to be a fun one! There will be food, games, and so much more for us to celebrate our number one priority: YOU!
Later in October, we’ll be having our Annual Business Meeting (ABM) live and in person. The ABM will be held on October 25 for all our members to gain a deeper understanding of our amazing organization. Join us in Kirkland at 11 Capital for an evening of education and discovery.
Finally, what you’ve all been waiting for…RHAWA’s Annual Gala! Saturday, December 2 we’ll be dressed to the nines Under the Big Top at Emerald City Trapeze Arts. This year’s theme is Winter Circus Under the Big Top and we can’t wait to show you what we’ve been planning. While there won’t be any lions or tigers, you will be amazed at the visual delights their trapeze artists and acrobats have in store for us.
If you are interested in sponsoring any of these events, please contact Daniel Bannon at dbannon@RHAwa.org. Be sure to watch your emails and check out our events calendar at RHAwa. org/events for more information about 2023 events. Thank you again for being the amazing members you are –we’ll see you soon!
MANAGE YOUR RENTAL WITH EASE
Chloe Moser
Confidentiality is Important
SHRED IT!
In rental housing, landlords often deal with sensitive information. Keeping that information secure is important because identity theft is so common. Any breach of information could affect someone’s financial history, credit report, and even result in the theft of money or other assets. It’s important that we all do our part to make sure that information stays secure.
Keeping Applications Secure
When you are taking applications for a new unit, it is important to remember
that you are responsible for keeping that information secure. A prospective tenant is entrusting you with their personal identifying information; social security number, driver’s license, and bank account information. If sensitive information like this falls into the wrong hands it can put someone at risk for identity theft.
Make sure that you keep all tenant applications stored in a secure area such as a document safe or locked filing cabinet. When you are ready to dispose
of the information make sure to do so properly, use a paper shredder or other secure disposal system.
Keeping The Information Safe
Remember that the information you receive in a credit report is meant solely for you as the certified Rental Property Owner/Manager. It is meant for you to view in order to make an informed decision as to whether or not the applicant qualifies to rent your unit. This report is not to be given to or shown to the applicant as FCRA rules state (15 U.S.C. 1681b).
You should keep a copy of the rental application along with proof of ordering a tenant screening report, such as a paid receipt for your order or the summary sheet (this comes with all RHA reports), on file for five years. Remember to destroy your copy of the applicants’ credit report after you have made your decision as to whether or not they are qualified to rent from you.
Following these simple precautionary measures can help protect the safety of your applicants’ identity. Wouldn’t you want every precaution taken to protect your identity if you were in their shoes? It is important that you are aware of RHAWA’s responsibilities in providing you with consumer reports as well as your own obligations now that you have access to this information for tenant screening. This is governed by the Furnishers of Information Obligations under the Fair Credit Reporting Act (FCRA).
If you have any questions about these obligations or any other regulations put forth by the FCRA, fair housing, or RHAWA, please email the staff in our Tenant Screening department. We’re happy to help you understand the rules and how to best comply with them.
Formal legal advice and review is recommended prior to selection and use of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific circumstance. The material contained and represented herein, although obtained from reliable sources, is not considered legal advice or to be used as a substitution for legal counsel
FEBRUARY CALENDAR
Denise Myers | Education + Resources Director | dmyers@RHAwa.org
RENTAL INSPECTIONS: CITY REQUIREMENTS
When: Thursday, February 2 | 3-4 pm
Cost: $30 Members | $60 Freemium Subscribers
$90 Guests
Location: ONLINE Only
Many cities in Washington require periodic inspections, usually on a lottery basis. Each of these local inspection programs is different and has unique checklists and criteria. Professional home inspector, Lisa Lotus of Taurus Home Inspections frequently completes these required rental inspections for housing providers in the cities of Seattle, Tukwila, and Burien. In this class, she will review how these programs work, the criteria for passing the inspections, common failures, and how to correct them. Information on registration and inspection programs statewide will be included in the class materials.
LEGAL FORUM ONLINE
When: Wednesday, February 8 | 2-4:30 pm
Cost: $50 Members | $200 Freemium Subscribers
Location: ONLINE Only
Over the last few years, conflicting state and local laws have changed everything from lease renewals to rent payment enforcement. Contradictory and unclear language make it difficult to predict how case law will unfold over the coming years. Hear three attorneys – Chris Benis, Christopher Cutting, and Kaitlyn Jackson – discuss your most difficult questions. Experienced property management professional and housing provider rights advocate, Cory Brewer will moderate questions and lead the discussion. Register now and submit your questions in advance!
PM SERIES-01: BUILDING A CAREER IN HOUSING
When: Thursday, February 9 | 12-1 pm
Cost: $30 Members | $60 Freemium Subscribers
$90 Guests
We are kicking off our 12-part series designed for Property Managers in Washington State. In this session, you will learn best practices for developing a successful and satisfying career in the housing industry. We will explore:
• Various career opportunities in the industry and how to develop as a real estate professional in Washington State.
• Education and licensing requirements in our state.
• Standards for professional appearance, behaviors, and communication.
Instructor: Lawton Coursey, Property Manager
RHAWA MEMBERSHIP PREVIEW AND ORIENTATION
When: Tuesday, February 14 | 1-2 pm
Cost: Free
Please join Grassroots Organizer, Daniel Bannon for an overview of Member Benefits and Services offered by RHAWA. Participants will receive a tour of the RHAWA website and tools and are encouraged to ask questions relating to member benefits throughout the meeting. Register for this meeting which is designed for New Members and those considering membership with RHAWA. Specific Property Man-
(206) 905-0614
agement and Legal questions cannot be addressed during this meeting. Seats are limited to 25 participants.
FIVE TAX-DEFERRAL STRATEGIES WHEN SELLING
RENTAL PROPERTY
When: Thursday, February 9 | 12-1 pm
Cost: $30 Members | $60 Freemium Subscribers
$90 Guests
Richard D. Gann, JD, Managing Partner with 1031 Capital Solutions, will review and compare the five most important strategies for deferring capital-gains taxes upon the sale of appreciated rental property:
1. 1031 exchange
2. 721 transfer into REIT
3. Qualified opportunity zone (“QOZ”) fund
4. Charitable remainder trust (“CRT”)
5. Installment note trust (aka “Deferred Sales Trust” TM)
Additional topics will include debt replacement considerations, depreciation tracking, procedural requirements, and general tax implications. This webinar is designed for rental housing owners contemplating a sale and seeking to minimize the tax consequences of their transactions.
PM
SERIES-02: WORKPLACE ETHICS
When: Thursday, February 16 | 12-1 pm
Cost: $30 Members | $60 Freemium Subscribers
$90 Guests
In this second session of our Property Manager Series, you will learn best practices for creating and participating in a safe, fair, and ethical workplace. We will explore:
• Prevention of sexual and other types of harassment.
• Promoting diversity, equity, and inclusion in workplaces.
• Reporting unethical behaviors.
Instructor: Susan Stahlfeld, Attorney
LINK MEETINGS
When: Multiple dates and times, visit RHAwa.org/events to check the schedule.
Cost: Free
Discussing various subjects related to the housing industry.
* Meeting time and subject vary by location. Check the online calendar for details at rhawa.org/events.
PM SERIES-03: FAIR HOUSING BASICS
When: Thursday, February 23 | 12-1 pm
Cost: $30 Members | $60 Freemium Subscribers
$90 Guests
In this third session of our Property Manager Series, you will learn best practices for providing fair and equal housing opportunities to prospects and tenants. We will explore:
• Protected classes in various jurisdictions, including the source of income and criminal history.
• How to process accommodation requests, including the use of service animals.
• How to respond to retaliation and harassment claims involving tenants and/or staff members.
Instructor: Maxwell Glasson, Attorney
2023 Pre-Legislative Session Update
Chester Baldwin | RHAWA Lobbyist
ON MONDAY, JANUARY 9, THE WASHINGTON
STATE
LEGISLATURE
CONVENED
FOR THE 2023 SESSION. THE REGULAR SESSION WILL LAST 105 DAYS AND ENDING ON SUNDAY, APRIL 23, 2023.
This legislative session marks the first session in over two years that will be convened back in person, although virtual testimony and meeting options for the public will remain available. We will keep you updated about the Legislature’s plans and logistics for remote activity. This still remains in flux and will likely become clearer as we go through the session. Systems and procedures are still being worked on by legislative staff.
With little change in the legislature’s partisan makeup, there will similarly be little change to the ongoing priorities of the legislative leadership, although with an interesting dynamic between the Democrats in the House and Senate, and differing priorities. The major issues of the previous session will carry forward, especially with a large class of freshman legislators, as well as many legislators that are coming to the capitol campus for the first time since
being elected in the 2020 elections.
THE LEGISLATIVE AND POLITICAL MAKEUP
The House is controlled by the majority of Democrats with a 58-40 margin, and Democrats control the Senate 29-20. Andy Billig (Spokane), Senate Majority Leader remains in his post, and Laurie Jinkins (Tacoma) remains the Speaker of the House. The biggest change to the leadership is Rep. Joe Fitzgibbon (West Seattle) who was elected House Majority Leader, succeeding retiring Democrat Pat Sullivan.
House Housing Committee Representatives
• Strom Peterson, Chair (D-21)
• Emily Alvarado, Vice Chair (D-34)
• Mari Leavitt, Vice Chair (D-28)
• Mark Klicker, Ranking Minority (R-16)
• April Connors, Asst Ranking Minority (R-8)
• Andrew Barkis (R-2)
• Jessica Bateman (D-22)
• Frank Chopp (D-43)
• Debra Entenman (D-47)
• Spencer Hutchins (R-26)
• Sam Low (R-39)
• Julia Reed (D-36)
• Jamila Taylor (D-30)
Senate Housing Committee
• Patty Kuderer, Chair (D-48)
• Noel Frame, Vice Chair (D-36)
• Phil Fortunato, Ranking Minority (R-31)
• John Braun (R-20)
• Annette Cleveland (D-49)
• Chris Gildon (R-25)
• Ann Rivers (R-18)
• Rebecca Saldaña (D-37)
• Sharon Shewmake (D-42)
• Yasmin Trudeau (D-27)
• Jeff Wilson (R-19)
In committee leadership news, there are several new committee chairs in the House and Senate. Please see below for the new 2023 committee chairs (in parenthesis below):
New House Committee Chairs Environment (Rep. Doglio); Consumer Protection and Business (Rep. Walen); Finance (Rep. Berg); Healthcare & Wellness (Rep. Riccelli); Local Government (Rep. Duerr); and State Government (Rep. Ramos).
New Senate Committees Chairs Business, Financial Services, Gaming & Trade (Sen. Stanford); Environment, Energy & Technology (Sen. Nguyen); Local Government, Land Use & Tribal Affairs (Sen. Lovelett); Way & Means, Capital Budget Chair (Sen. Mullet).
Nearly 400 bills have been pre-filed in the House and Senate, covering topics from education credit access and
Chester Baldwin
curriculum reform, updating the business corporation act, voting rights, retail theft, and online marketplace reform, judicial rights, and traffic safety.
Governor Jay Inslee (D), in mid-December, released his proposed budgets, which proposes large spending into affordable housing and includes issuing $4 billion in housing bonds, which would require approval from the legislature and voters, to finance parts of the budget. There remains a tough dynamic in terms of housing and zoning issues between many local elected officials and the state which will play out further over the session.
Several statewide officials are also releasing proposals for the upcoming legislative session. Attorney General Bob Ferguson, in partnership with Representative Mari Leavitt, is proposing HB 1051, also known as the “Scam Protection Act”, to address illegal robocalls and robocall harassment. Additionally, he and the Governor are proposing legislation to outlaw assault weapons.
Budgets Outlook
Revenue updates from the last quarter of the year have not shown a major decrease in revenue projections. Budget writers have remained cautiously optimistic about future projections but have stated that they are not anticipating strong growth in revenue.
Budget writers have also said they are not planning on cutting the current budget or making major changes to the budget, rather are looking to assess program effectiveness with current funding levels and examine the performance of programs that the Legislature has adopted in the past several years. The budget picture will continue to be shaped throughout the session and as the state revenue forecasts are issued in the spring of 2023, reflecting a possibly changing economic picture. Much remains to be seen.
In general, we are not yet hearing significant support for major legislative proposals for broad-based tax or fee increases in the 2023 session…but we will keep you in the loop as legislation is introduced.
SHOULD YOU HIRE A PROPERTY MANAGER?
Importance of Accurate Information
Luke Brown | Business Development Specialist |
YOUR ACCURACY
Hello members, my name is Luke Brown and I’m the new business development specialist here at RHAWA. I grew up in San Diego, California, and received a brief introduction to the rental housing industry when I worked at Hanken Cono Assad, a San Diego based workforce housing provider. There, I shadowed and assisted property managers at various properties around the San Diego State University college area, helping coordinate vendor repairs during unit turnover and working to better market the properties.
During my time at the University of Washington, I worked as both a sales associate and manager at Sunglass Hut and gained valuable customer service experience. Since graduating from UW with a degree in Economics, I have taken on my new role here with RHAWA. As the business development specialist, I will be working closely with our Executive Director and Deputy Director on developing both membership growth strategies and ways we can better serve our current members. Future articles will discuss specific business development strategies in depth, but
in this article, I will be focusing on the importance of accurate information on your RHAWA profile for both yourself and the association.
Reporting an accurate legislative district is very important, as the location of district lines determines which representative you will be voting for. On February 8, 2022, Washington state underwent redistricting, which changed the boundaries of every district in the state. For many of you, your legislative district changed on this date. This changes the voting pool in each district and can change the political priorities of the district as a whole. This is particularly relevant because, as many of you know, the 2023 legislative session is currently underway. Updating your legislative district will allow us to connect you with both local and state legislators, giving you opportunities to connect with the lawmakers who are representing your area. Making these connections will directly bolster your ability to improve your legislative district, as lawmakers hearing personal stories from citizens from their legislative district has a profound
impact on how they move forward with legislation.
In tandem with your legislative district, recording accurate unit counts and addresses is crucial. If your property makeup has changed, whether that be adding properties, selling, or both, recording the new unit counts and associated addresses will greatly help our advocacy efforts. The more information we have about our members, the more effective we will be in advocating on their behalf. Being able to accurately describe how many units RHAWA supports, how many units our members own and operate, and the locations of these units will greatly enhance how well we can describe our members to lawmakers. This will help us build a more accurate and genuine story to advocate on your behalf.
Furthermore, feedback whenever possible is extremely beneficial to us. Feedback can be received in a number of ways, most importantly through our Connect Forum. The Connect Forum gives you direct communication with other members, where you can share
your own unique experiences to guide each other with everything from repairs to tenant relations. In addition to being able to bounce around ideas with other members, you will also be able to interact with RHAWA staff. Our staff regularly checks the Forum to add clarification or answer any questions you may have. We strongly encourage all our members to check out the Forum, as the more engagement we have, the more all of us benefit.
In addition to the Connect Forum, you can also ask our staff directly about RHAWA related questions. Daniel Bannon, our Grassroots Organizer, is more than equipped to answer most of your questions. You can also reach out to Daniel to share your experience as a small housing provider. RHAWA is always looking to gather member stories and share these stories with other members, media outlets, and lawmakers.
Lastly, I’d like to thank you all for reading. I’m truly looking forward to my future with RHAWA.
Luke Brown
Is Your Property Operating at Peak Performance?
Brian Platt, Michael Urquhart and Ben Douglas | Paragon Real Estate Advisors | Vendor Member
The beginning of the year is a time when many owners in the real estate industry take time to reflect and review the performance of their buildings. As active multifamily real estate brokers in the Puget Sound Region, we are exposed to the building operations of some of the most sophisticated and successful apartment operators. We have resources pertaining to all facets of building operations including lenders, insurance agents, rental data, rental strategies, effective advertising platforms, management companies, attorneys, and additional maintenance/remodel contacts.
Our expertise can assist in identifying where your building operations could be improved upon. Please reach out for a free property analysis and/or valuation to see how you could maximize your return on investment. Below are detailed the various sectors in which you may be able to improve to maximize your return and resulting property value.
Property tax assessments – Are your taxes too high? Do you need to appeal the assessed value? We can provide a valuation on your property to compare it to your assessed value and refer you to an expert to appeal your assessed value.
Lenders – Do you need to refinance soon due to an upcoming maturity date? Looking for an update on the current interest rate environment? Are you looking for the perfect combination of rates, amortization, and term? We have relationships with the most active lenders in the marketplace and can assist with the ideal time in this interest rate environment.
Insurance costs – Have you shopped your policy recently? We can let you know if you are paying too much for minimal coverage. We have a relationship with the highest quality insurance agents that are sure to cut back your insurance expenses while maintaining or even improving the quality of your insurance.
Rents – Are you keeping up with the market? We can provide rent comps within your neighborhood so you can see how your rents compare to your other neighbors’ buildings.
Utility Bill Backs – Are you charging back for utilities? We can provide the numerous strategies and utility reimbursement structures owners are using and discuss the best structure suitable for your building.
Additional Income Streams – Are you charging for parking, pet rent, storage income, and month-to-month fees?
Advertising – Are you reaching all renters? We have suggestions for new ways to reach out to potential tenants.
Management – Do you have the right team in place? Do you want to interview a new management company to take over operations? We do not do management ourselves and can provide unbiased recommendations.
LLC formations – Protect your investments with LLCs. We work with local real estate attorneys that can help.
Vendors lists – Trusted referrals for rehabs, roofs, unit turns, full remodels, etc.
Tenant issues – We have resources that can help.
Landlord Maintenance – Recommended every 12 months
1. Do a full walk through of the property. Allows you to monitor your condition and identify areas for preventative maintenance.
2. Put together a preventative maintenance checklist for all appliances, fixtures, carpets, paint, caulking, air filters, etc.
3. Put together a Capital Improvements List that includes the date of any new systems as well as warranty expirations – roof, appliances, hot water tanks, replaced siding, furnace, etc.
4. Put together a list of your annual expenses – taxes, insurance, water/sewer/garbage, common electrical, maintenance, and professional management. Compare your YTD totals with past Profit/Loss statements to make sure nothing is out of the norm.
5. Review current interest rates and loan programs. If you have a loan in place it’s likely variable, 3-57-10 year money. Staying up to date with interest rates and planning ahead is key in this rapidly changing interest rate environment.
6. Hire professional cleaners upon tenant move out. Yes, there is an expense associated ($200 roughly) but steaming carpets, painting walls, and dusting will help prolong the life of your units and capture a higher rent.
7. Respond to tenants’ needs as quickly as possible. Any repairs such as a broken toilet, refrigerator, or range should be fixed within 24 hours, but preferably within 12 hours. This will go a long way to a healthy tenant/landlord relationship and less tenant turnover.
8. Reach out to your tenants every 6-12 months with a handwritten note or email asking them to let you know if there is anything you can do to improve their tenancy.
If you have any questions about the current real estate market, interest rates, DST’s, cost segregation or loan options for acquisition, disposition, or refinance purposes, please contact Brian Platt at Brian@ParagonREA.com, Michael Urquhart at Michael@ParagonREA.com, or Ben Douglas at Ben@ParagonREA.com for more information.
Brian Platt
Michael Urquhart
Ben Douglas
2022 Seattle Area Rental Market Recap Single-Family
Cory Brewer, General Manager | Windermere Property Management / Lori Gill & Associates | RHAWA Board of Director and Vendor Member
2022 SEATTLE RENTAL MARKET
2022 was another whirlwind year in the world of residential leasing through the Greater Seattle Area, with record-breaking pricing and one of the fastest spring markets we have ever seen. To keep things interesting, a number of new landlord/tenant laws were enacted throughout the region at the city and county levels; not to mention at the state level.
When running a statistical analysis of the single-family rental market, I don’t often do too much comparison with the sales market; however, this year in particular (2022), it feels like there was a strong correlation between the two. Some of the patterns were to be expect-
ed, others came as more of a surprise. The data referenced in this piece, unless otherwise noted, was gathered via the Northwest Multiple Listing Service (NWMLS).
The year started off with a bang due to a combination of factors such as low inventory, COVID-19 related pent up demand, hiring sprees by local tech companies, and very low interest rates. The average home in King & Snohomish Counties during the months of April and May sold in less than 10 days! Limited inventory of homes for sale pushed many people to the leasing market, which also peaked in May at $2.46 per square foot in King County
(the highest single month $/sqft average that I have ever observed).
The second half of 2022 produced quite the opposite effect on the sales market as interest rates began to steadily rise. Pricing in both counties fell by more than 15% from the Spring peaks, and DOM (Days On Market) extended significantly. King county slowed by over 60% while Snohomish slowed by 160%; some truly remarkable numbers. The leasing market, however, maintained a much more stable trendline with pricing in King County remaining flat for the year (January compared to December), and in Snohomish County pricing was up by over 7%. The mar-
ket in King County slowed by about 17% while the Snohomish leasing market actually sped up by over 22%.
So how do we make sense of all this? From my perspective, the primary factor is the rise in interest rates and the subsequent reduction in buying power. Would-be sellers could not get as much for their home as their neighbor had a couple of months earlier, and buyers were looking at significantly higher monthly payments for the same sale price. Rental pricing remained relatively flat by the end of the year as would-be buyers turned back to the leasing market.
One of the most interesting developments that we encountered at our brokerage was the number of those aforementioned would-be sellers who contacted us in late summer / early fall after trying to sell their homes but were unsuccessful. Early on in the COVID-19 pandemic, this became quite common for condo units in the city core, but we knew something was changing when we started getting those calls on 4-bedroom suburban houses in late spring. Homeowners who made the decision to flip to the rental market before the end of Summer made out very well, especially in terms of market time. Rental inventory began to grow during a time when a seasonal market slowdown is typical, but even with more inventory rental pricing remained quite stable, especially compared to home sale prices which fell steadily during the back half of the year and ended (December) below where they began (January).
Switching gears: As has become a consistent theme over the past several years, 2022 was no stranger to evolving landlord/tenant law ordinances. Most notably, the ARCH organization (A Regional Coalition for Housing), comprised of cities throughout the Greater Eastside, encouraged its members to pass a series of new rules intended to benefit renters amidst the rising cost of housing. Some of the proposals did pass in some cities, such as Kenmore, Kirkland, and Redmond, while in other cities they either did not pass or were not formally considered. The proposals focused largely on a few primary themes; security deposit limits, late fee limits, and extended notice for rent increases.
Certainly, a balanced approach is beneficial for a healthy housing market. The acute challenge presented by the ARCH effort is that slightly different versions of the proposals were passed from one city to the next, and in most cases enacted on very short notice. Where nearly all cities in King County (aside from Seattle) had long held consistent leasing rules, we are now dealing with a version of landlord/tenant law in Kirkland that is slightly differ-
AT THE FEDERAL LEVEL, A RECENT DECISION STEMMING FROM THE CARES ACT HAS REQUIRED THAT THE MOST COMMON LEASE VIOLATION NOTICES BE EXTENDED FROM 10 DAYS TO 30 DAYS FOR COMPLIANCE, AND FROM 14 DAYS TO 30 DAYS FOR UNPAID RENT.
ent from Redmond, which is slightly different from Kenmore, which is slightly different from Issaquah, which is slightly different from Bellevue, etc.
Speaking of Seattle; there have been updates to the RRIO program as well as a revised version of the Renter’s Handbook (which must accompany every lease in the city), just to name a couple. An additional number of cities throughout South King County, such as Burien, Auburn, and Federal Way have passed their own new ordinances which speak to many of the previously mentioned topics and beyond.
Snohomish County now requires a 14-day issuance of a payment plan prior to a Pay-Or-Vacate Notice. It’s a lot to keep up with, especially if you own or manage properties in multiple jurisdictions.
At the federal level, a recent decision stemming from the CARES Act has required that the most common lease violation notices be extended from 10 days to 30 days for compliance, and from 14 days to 30 days for unpaid rent (with limited exceptions). We are
anticipating that in its 2022 session, the Washington state legislature will hear bill proposals on everything from a statewide rental property registration to security deposit overhaul to funding for rental assistance to some form of rent control (Washington remains the only state on the West Coast without it).
Are these legal policies working? The jury is most definitely out. The city of Seattle has lost well over 2,500 rental houses going back to 2020. It’s too early to see what the effects have been on other nearby cities adopting similar policies, but it is quite simple math to understand what happens to the cost of rental housing when there are fewer rental houses available. Our advocacy efforts as an industry, in partnership with organizations such as NARPM (National Association of Residential Property Managers), have been to encourage housing policy that will encourage the development and growth of more housing supply, not the depletion. If you are reading this and you feel similarly, reaching out to your representatives is worth the effort.
In summary, 2022 was a remarkable
year with frenzied sales market activity driven by factors such as limited supply and low interest rates. Rental housing providers by and large experienced stability and, depending on the timing, realized price appreciation, particularly on new leases. Those looking for housing, depending on the timing, may have found that there wasn’t much to choose from. The evolving landlord/tenant law environment drove some providers out of the market, while others turned to property management professionals for help whether they were new to the market or had long managed their own rentals but felt it was time to hire out some help. As an industry, we’ll continue to discuss responsible solutions to housing affordability, and it all starts with supply & demand.
Cory Brewer is the General Manager at Windermere Property Management / Lori Gill & Associates. His firm oversees management of approximately 1,500 residential rental homes throughout the Greater Seattle Area, as well as commercial & multi-family properties. He may be contacted via wpme@windermere.com. Visit their website wpmnorthwest.com.
Rental Registration & Inspection Programs
Denise Myers | Education + Resources Director | dmyers@RHAwa.org | (206) 905-0614
The majority of cities and counties in Washington do not currently monitor residential rental properties other than responding to tenant complaints about housing code violations. Only a select group has programs that require rental registration, and even fewer require routine periodic inspections on all rental properties under their jurisdiction. This growing number of cities requir-
ing rental housing registration usually charge a registration fee for each unit or property, and require renewal on an annual or less frequent basis. Some cities simply require housing providers to obtain a standard business license. Each local government is unique. RHAWA makes an effort to learn about and share information on these types of programs, but it is challenging for us
to manage an exhaustive list. All rental housing providers should carefully review the city website where each property is located and look for any regulations related to rental housing. If the property is not within any city limits, check the county website. The table below includes a summary of programs currently known to RHAWA. If you are aware of additional city registration
and inspection programs, please let us know by emailing Denise Myers at dmyers@RHAwa.org.
For more information on inspections, attend a class session with Lisa Lotus from Taurus Home Inspections – Rental Inspections: City Requirements on February 2 from 3-4:00 PM. Register at RHAwa.org/events.
CITY REGISTRATION INSPECTION
Registration + annual renewal for all residential rental housing units, single-family homes to large multi-family communities.
Fees: $25 + $1/additional unit
Annual Housing Business License is required for each residential rental property.
Fees: $30 - $500 for each property based on the number of units.
Annual Registration is required for each residential rental housing unit.
Fees: $8-$10 per unit
All registered rental properties must be inspected at least once every 3 years.
The owner must hire a qualified rental housing inspector or City inspector to do the inspections.
Inspections are only required for communal housing and state-licensed facilities.
Property inspections are required every 3-3.5 years.
The owner can hire City Inspector for $100 or use a private inspector and pay a $45 fee to City.
Denise Myers
CITY REGISTRATION INSPECTION
Annual Housing Business License is required for each residential rental property.
Fees: $263.75 - $791.25 for each property based on the number of units.
Business License required.
Fees: $50 to open; $5 annual renewal.
All properties subject to inspection must be registered.
Fees: No registration fee; $15 for online submission of the inspection report.
Business License required.
Fees: $50 to register; $5 annual renewal.
Rental properties must be registered annually. (Rental Housing Safety Program website is currently offline)
Licensing + annual renewal for all residential rental housing properties.
Fees: $40 + $1.50/additional unit
Licensing + annual renewal for all residential rental housing properties.
Fees: $50 + $10/additional unit
Business License required.
Fees: $10 to register; $5 annual renewal.
Every three years, at least 20 percent of a property’s rental units are required to be inspected. The owner must hire a qualified rental housing inspector from a list provided by the City.
No inspection requirement.
Property inspections are required every 3 years. Single-Family Homes are not subject to inspection.
The owner must hire a qualified rental housing inspector.
No inspection requirement.
Property inspections are required every 5 years.
All registered rental properties must be inspected at least once every 3 years.
City or county inspectors conduct all inspections at no charge to the owner.
All registered rental properties must be inspected at least once every 2 years.
City inspectors conduct inspections at no charge to the owner, or the owner may hire a qualified private housing inspector.
Property inspections are required every 5 years. Inspection is done by the city for a fee or qualified private inspector paid by the owner.
CITY REGISTRATION INSPECTION
Annual rental registration for each property.
Fees: None
All rental properties must be registered and renewed every two years.
Fees: $70 per property including one unit; $15 for each additional unit
All rental properties must be registered.
Fees: $100 per property, waived with completion of “Crime Free” education.
Rental Business License is required and must be renewed annually.
Fees: $25 - $1500 based on anticipated gross income.
Rental Business License is required and must be renewed annually.
Fees: $40 per property including one unit; $15 for each additional unit
Rental Business License is required and must be renewed annually.
Fees: $80 - $324 per property based on number of units.
Inspections are required on a complaint basis.
Inspection is required once in the first 5 years, based on lottery selection.
Inspection is done by the city for a fee or qualified private inspector paid by the owner.
No inspection requirement.
The landlord must self-certify that properties meet minimum inspection criteria.
No inspection requirement.
Each unit must be inspected before renting and then once every four years.
Inspection done by city for a fee or qualified private inspector paid by the owner.
Formal legal advice and review is recommended prior to selection and use of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific circumstance. The material contained and represented herein, although obtained from reliable sources, is not considered legal advice or to be used as a substitution for legal counsel.
A Reflection on My First Year with RHAWA
Daniel Bannon | Grassroots Organizer |
MY REFLECTIONS
As many of you know, my name is Daniel Bannon and I am the Grassroots organizer for the Rental Housing Association of Washington. I started working for RHAWA just over a year ago in December of 2021 and I thought it would be fun and informative to reflect on what I have learned in this last year as well as provide some thoughts on what I would like to learn going forward. I hope this article will provide some insight into the inner workings of RHAWA while also providing the opportunity for our members to get to know me.
When I started working for RHAWA I had much to learn and I was eager to do so. I had worked in property management previous to working for RHAWA so I had a baseline of knowledge regarding the operation of a rental property, however, there is always more to learn. My first task working for RHAWA was to learn about how the organization works and understand what kind of work needs to be done in order to provide the highest level of service to our members. This education came in a format that is likely familiar to many
of our members: The Rental Housing AcademyTM. The Rental Housing AcademyTM provides incredible education for our members but it is also utilized to educate new employees at the association. Stemming from this, you can rest assured that when our staff members discuss the value of our education services, they are speaking with first hand knowledge of how to use our education system and as well as the quality of our classes. In my education, I learned best practices for running a rental property from Denise Myers as well as a breakdown of our legislative issues from our Government Affairs team. This education was crucial to my foundation of knowledge with RHAWA because it gave me a perspective on the intersections between legislative issues and how these issues impact the day-to-day operations of a rental property owner.
Following my introduction and education with RHAWA, I attended my first event where I would be speaking to individuals on behalf of RHAWA. Despite the immense amount of information I had just learned through our
education services, I was still quite nervous to speak on behalf of the association. Luckily, the rest of the government affairs team was there to guide me through this new experience. I observed how our team would speak to members as well as non-members about the association. When we would meet non-members, I learned how to communicate the value of RHAWA while keeping it short and sweet. Most of our staff could ramble about the benefits of membership for hours, so it was fascinating to learn what key benefits we mention in a brief conversation. Reflecting on this experience highlights some of the most noticeable changes I experienced in the last year while working with the association. When I have attended events recently, I am now confident and experienced in speaking about the benefits of our association as well as communicating our goals as an association. Instead of observing the conversations our government affairs staff are having with seemingly random individuals, I am now recognizing our members who regularly attend events and introducing them to our new staff members. This
transition happened much faster than I was expecting, and I am enjoying passing along the lessons I have learned to our new staff members.
Another aspect of my experience I would like to highlight is regarding my contributions to our CURRENT Newspaper. When I first started writing articles for our newspaper, I was still figuring out how to write in an informative and personal way. During my education at the University of Washington, I would typically write in an analytical, professional manner but I wanted my articles in CURRENT to provide some insight regarding my personality as well as my knowledge. It took a few attempts, but coming into the summer months I think found that balance that I was looking for. I’m sure if you compared some of my earliest articles to my recent articles you will notice a slight difference in tone, but a consistency in the quality of information I provide. I imagine myself speaking directly to our membership when I write articles for our newspaper and I
Daniel Bannon
RHAWA Wants to Hear from YOU!
Daniel Bannon | Grassroots Organizer | dbannon@RHAwa.org | (206) 905-0609
AMPLIFY YOUR VOICE
If there is one thing we know about our members, it is that we are an outspoken group of small housing providers who are passionate about the rental housing industry. As such, RHAWA would like to foster connections between our members and give our members the ability to amplify their voices to a larger audience if they so desire. With Legislative Session underway, the topic of amplifying your voice is as relevant as ever. In this article, I will detail some of the ways RHAWA can help your outreach efforts as well as describe the importance of communicating with RHAWA as a member.
ADVOCACY EFFORTS
The first method that comes to mind when thinking about amplifying our member’s voices to a larger audience is our advocacy efforts. During Legislative Session we have, at a minimum, a weekly meeting that will provide you with updates regarding upcoming legislation as well as providing guidance as to how to provide testimony. We look forward to these meetings becoming a place where members and staff can bounce ideas off of each other regarding the most effective way to communicate with lawmakers as well as fostering deeper connections between staff and all the members who participate in our advocacy efforts.
NEW LAWS
Advocacy doesn’t end with the legislative session, there are local cities that are passing new laws regarding rental housing even after state lawmaking is over. This means that it is crucial to be involved year-round and part of being involved is reaching out to RHAWA when you need help or have questions. RHAWA is here to help you as a small housing provider and we cannot overstate how important it is that we learn from the experiences of our members in order to provide the highest level of service possible. We do our best to provide you with everything you may need to provide public testimony or communicate with your local lawmakers, but we know that these processes can be confusing and we may need to provide additional instruction in some cases. Whatever the situation, do not hesitate to reach out to me or the rest of the RHAWA team if you need answers. It is important to briefly note that RHAWA Staff cannot provide legal advice and there are some instances where an RHAWA staff member will advise the use of a legal professional for certain situations.
OUTREACH EFFORTS
Additionally, we want all members who are interested in assisting and bolstering RHAWA’s outreach efforts to reach out and share their experience via a short interview with an RHAWA staff member. Every housing provider’s experience is different and the experiences of one member can inform the experience of another. RHAWA will never use the information gathered from member testimonials without express consent from the given member and it cannot be overstated how important these stories can be to not only our advocacy efforts but our outreach efforts generally. Learning about the personal experiences of our members can be effective in communicating the needs of small housing providers to the general population as well as lawmakers. We say this all the time, lawmakers and the general population are much more sympathetic when hearing directly from our members. Many individuals outside of our organization do not understand the struggles our members face and it is up to all of us to change that.
FEEDBACK
RHAWA values all kinds of feedback that our members can provide. For example, we received significant feedback regarding our 2022 Annual Gala letting us know how much our members appreciate the organization and accommodations of our biggest party of the year. This kind of positive feedback lets us know when we really knock something out of the park and helps us tailor future events to align with what our members value most. Alternatively, constructive criticism also helps us improve our services in order to serve your needs better. Sometimes we need to change things in response to member feedback, and we are happy to do so when it improves our members’ customer experience.
CONNECT FORUM
Recently, we received feedback from our membership that the Connect Forum is too convoluted which is discouraging higher levels of participation in the Forum. The Connect Forum was refined from 6 categories to three earlier this year and we saw a jump in engagement following this change. Taking simplification to its next logical step, we have determined that splitting the forum into categories makes the Forum needlessly difficult to navigate and the system would work better with simply one board where our members can interact. We are also running a poll in the Forum which is gathering feedback regarding recent changes and inquiring about future changes. The Connect Forum is one of the most valuable resources on our website, where you can meet fellow members from across the state and learn about their experiences and receive recommendations on best practices. The changes that are taking place on the Connect Forum are a direct result of member communication with RHAWA. We need your feedback in order to improve our services and we encourage members to speak up on the forum or via email if they have feedback on RHAWA’s services.
SPEAK UP
I hope you found this article informative and motivational. I want to motivate our members to speak up when they have something to contribute. Regarding both our advocacy efforts and the general operations of RHAWA, your feedback is crucial to making RHAWA the best it can be. Feel free to give us a call, email, or stop by a LINK Meeting if you want to help RHAWA continue to provide the highest level of service in the rental housing industry. Your feedback is the pathway to making changes in your favor and we will always encourage you to use your voice to make a difference. Thanks for speaking up!
TURN KEY MAKE READY, VENDOR
Apartment Painting Prices Walls Only*
One Coat Labor Only. Customer to Supply Paint.
Studio Apt...................................................From $395
One Bedroom Apt.....................................From $495
Two Bedroom Apt......................................From $495
Three Bedroom Apt...................................From $695
Houses............................................................Bid Only
*Ceilings, Doors, Jambs, Kitchen Cabinets, Millowrk, Base Trim, Wall Repair Additional Charges
Apartment Cleaning Prices*
Studio Apt...................................................From $195
One Bedroom Apt.....................................From $225
Two Bedroom Apt......................................From $250
Three Bedroom Apt...................................From $275 Houses............................................................Bid Only
*Heavily Soiled Additional Charges
Apartment Carpet Cleaning Prices*
Studio Apt.......................................................From $95
One Bedroom Apt.......................................From $125
Two Bedroom Apt........................................From $150
Three Bedroom Apt.....................................From $175
Houses..............................................................Bid Only
*Heavily Soiled Additional Charges, Town Houses Add $45
ADDITIONAL SERVICES WE OFFER (Bid Only):
• Vinyl Plank Floor Cleaning
• Water Extractions 24/7 - 365 days a year
• Odor Treatments
• Hallway Cleaning
• Pressure Washing EPA Compliant
• Junk removal after evictions
JON: (425) 330-9328 WENDY: (425) 870-2295
EMAIL: extremesteamcc@comcast.net
A Reflection on my First Year with RHAWA
hope you have enjoyed learning about me over the past year.
I would be remised to forget to mention the most important aspect of our association. If you didn’t already guess, it is all of you: our members. RHAWA wouldn’t exist without the support of all of our members, and it has been an absolute pleasure meeting many of you over this last year. One of my first experiences meeting our members was at the East King County LINK Meeting and I immediately felt welcomed by the members I met that night. Since then I have built relationships with many of our LINK attendees and I look forward to continuing to meet attendees in the future. The value of interactions between staff and our members cannot be overstated and it is one of the key reasons we have changed the LINK Meeting schedule in order to allow more interaction between staff and membership. I have learned so much about the industry from our members and I appreciate everything you all have taught me over this last year. There is always more to learn and I am excited to see my knowledge base expand even more as I continue to meet members with unique experiences.
Thank you for taking the time to read my reflection on my last year with RHAWA. It has truly been a fascinating and informative experience and I look forward to using the skills and knowledge I have gained to continue assisting members in the future. I try to mention this as much as possible, but I encourage our members to reach out to me to ask questions about the association, especially if you have questions about our advocacy efforts or would like to share your experience as a housing provider. Answering questions about the association allows me to take note of my knowledge base and discover aspects of the association I may need to learn more about. On behalf of the association and all our staff, thank you for your membership. We look forward to providing the highest level of service for housing providers in 2023 and beyond.
Industry in Motion
Submissions are compiled and printed, depending on space available. RHAWA does not guarantee submissions will be included.
ANNOUNCEMENTS
Interested in Submitting Your Annoucement?
We welcome information about industry job postings, new employee and location information, and more. If you have questions, or would like to submit an item for consideration, email publications@RHAwa.org.
NEW VENDOR MEMBERS
VENDOR LISTINGS
We encourage you to consider the vendors found within these listings for your rental business needs. When seeking competitive bids, be sure to mention your RHAWA membership as many offer member discounts. RHAWA does not specifically endorse any business listed herein. References are always recommended. If you would like to submit a customer testimonial for our records, please submit to publications@RHAwa.org. Please note that changes made to a vendor member profile will not be reflected in the CURRENT Vendor Listings unless the change is also sent to publications@RHAwa.org.
BANKS
Brink & Sadler (253) 582-4700 | brinkandsadler.com
Hutchinson & Walter, PLLC (425) 455-1620 | hutchcpa.com
Pacific Publishing Co. | Print + Internet (206) 461-1322 pacificpublishingcompany.com
Seattle Rental Group | Property Management (206)315-4628 | www.seattlerentalgroup.com
(360) 529-7567 |
Donald B. Kronenberg (206) 877-3191
Greenwood
(206) 783-2900 |
Brink Property Management
Dean Foggitt (425) 458-4848 | brinkpm.com
Access Evictions
Travis Eller (425) 641-8010 | accessevictions.com
Christopher T. Benis, Attorney at Law First Avenue Law Group, PLLC
Vendor of the Year 2006 (206) 447-1900 | firstavenuelaw.com
Demco Law Firm, P.S. (206) 203-6000 | demcolaw.com
Dimension Law Group PLLC
Synthia Melton (206) 973-3500 | dimensionlaw.com
Flynn and Associates, PLLC
Sean Flynn (206) 330-0608 | theflynnfirm.com
Glasson Legal (206) 627-0528 | glassonlegal.com
Gourley Law Group / The Exchange Connection (360) 568-5065 | gourleylawgroup.com
Holmquist & Gardiner, PLLC (206) 438-9083 | lawhg.net
Jeffery Bennett (503) 255-8795
Law Office Of Shaun Watchie Perry (206)729-7442 | swp-law.com
Ledger Square Law
(253) 327-1701 | ledgersquarelaw.com
Ling & Liang PLLC
(206)462-2884 | ling-liang.com
LT Services
(206) 241-1550 | ltservices.net
Loeffler Law Group, PLLC (206) 443-8678 | loefflerlawgroup.com
Maxwell Glasson (206) 627-0528 | loefflerlawgroup.com
Micheal D Mclaughlin, Attorney at Law (253) 686-9786
Reed Longyear Malnati & Ahrens, PLLC (206)624-6271 | www.reedlongyearlaw.com
Seattle Real Estate Law Group (206) 623-4846 | seattlerealestatelawgroup.com
Eastside Funding (425) 230-0000 | eastsidefunding.com
First Federal Savings and Loan (206) 586-1701 | ourfirstfed.com
First Financial Northwest Bank
Tom Jarzynka (425) 264-2757 | ffnwb.com
Homebridge Financial (206) 915-3742 | homebridge.com
Luther Burbank Savings Bank
Tiana Jackson: (425) 739-0023 lutherburbanksavings.com
Pacific Crest Savings Bank
Scott Gibson (425) 670-9600 | (800) 335-4126 paccrest.com
Umpqua Bank | Multifamily Lending
Matt Couch (425) 602-1250 | umpquacrelending.com
Washington Federal Vendor of the Year | 2015
Tim Marymee: (206) 777-8213 | (800) 324-9375 washingtonfederal.com
+ SHOWER RENOVATION
Fischer Restoration (888) 345-2532 | fischerrestore.com
Flippers Warehouse (206) 656-3222 | flipperswarehouse.com
Tub Cove Inc. New Tubs, Surrounds and Bathroom Plumbing (206) 522-1711 | tubcove.com
NWK9 Bed Bug
(206) 801-3522 | nwk9bedbugdetectives.com
Ultrasonic Mini-Blind Cleaning + Repair (425) 771-7799 | shineablind.net
+1 Construction (206) 313-6587 | plusoneconstruction.com
Bellan Group, LLC
Susan Bellan (206) 383-0102 | bellan.com
Construction Expeditors, LLC (206) 595-8852 | (877) 644-1700 constructionexpeditors.com
Fischer Restoration (888) 345-2532 | fischerrestore.com
Flippers Warehouse (206) 656-3222 | flipperswarehouse.com
Haynes Contracting LLC (253) 335-7905 | haynescontractingllc.com
Interland Design
Jake Cervilla (425) 290-9639 | interlanddesign.com
Kanso Homes, Inc. (206) 278-3403 | kansohomes.com
Maintco (425) 822-5505 | maintcogc.com
Masonry Restoration Consulting (425) 344-3893 masonryrestorationconsulting.com
Next Level Property Maintenance (206) 922-8119 | nxtlevelpm.com
Pro Realty Options, Inc. (425) 745-2400 | prorealtyoptions.com
Rife Masonry
Chad Rife: (206) 696-6998 rifemasonry.com
T.E. Kelly Company, LLC
Tim Kelly: (206) 240-1950
The Wall Doctor, Inc.
Gary Borracchini (425) 822-8121 | thewalldoctor.com
Top-Rung Construction LLC
Gary Gilmer (253) 893-1101 | fieldsroofservice.com
+
Envirotest | Mold & Air Quality Analysis
Donald B. Kronenberg (206) 877-3191 | seattlemoldandairquality.com
Greenwood True Value Hardware | Detectors (206) 783-2900 | greenwoodhardware.com
Pacific Northwest Locksmith | Detectors (206) 531-0411 | pnwlocksmith.com
CONTRACTORS
Maintco (425) 822-5505 | maintcogc.com
Pioneer Masonry Restoration Co. (206) 782-4331 pioneermasonry.com
Reinhart Electric & Service (425) 251-5201 reinhartelectric.net
T.E. Kelly Company LLC Tim Kelly: (206) 240-1950
Rental Housing Association of Washington Chartrice Young (206) 283-0816 | RHAwa.org
Lumber |
& Lumber (206) 632-2129 | dunnlum.com
(206) 812-9155
(206) 812-9155
Therasa Alston (206) 650-4777
|
- 1031 Real Estate (206) 502-4862 | www.re-transition.com/rhawa
Partners, LLC
(206) 323-1771 | redsidepartners.com
+1 Construction (206) 313-6587 | plusoneconstruction.com A&A Electric (206) 212-1888 | anaelectric.com
ABC Towing, Inc.
Seattle: (206) 682-2869
Tukwila: (206) 767-4024
abc4atow.com
Bellan Group, LLC
Susan Bellan (206) 383-0102 | bellan.com
Bravo Roofing, Inc.
GoldStar Vendor + Vendor of the Year | 2014
John Paust, Estimator: (206) 948-5280 (253) 335-4825 | (360) 886-2193
john@bravoroofs.com | bravoroofs.com
Construction Expeditors, LLC (206) 595-8852 | constructionexpeditors.com
Diamond Roofers, LLP | Flat & Low Slope (206) 202-7770 | diamondroofers.com
ER Flooring (360) 402-9566 | erflooring.com
First Choice Remodeling, Inc. (253) 846-9000 | firstchoiceremodelinginc.com
Global Paving LLC (253) 286-7943 | globalpavingllc.com
Masonry Restoration Consulting (425) 344-3893
masonryrestorationconsulting.com
of the Year | 2020 (425) 775-6464 (800) 972-7000
dayandnite.net
Fischer Plumbing, Inc. (206) 783-4129 | fischerplumbing.com
The Pipe Guys (253) 537-2830 | pipeguys.com
DRYER VENT + DUCT CLEANING
The Chimney Specialists, Inc. | Dryer Vent Only Seattle: (206) 782-0151 | (888) 979-3377
So. King Co.: (253) 833-0144 | (888) 979-3377
Pierce Co.: (253) 475-0399 | (888) 979-3377 thechimneyspecialists.com
VentMasters (206) 362-5190 | ventmasters.net
DRYWALL
The Wall Doctor, Inc. Gary Borracchini (425) 822-8121 | thewalldoctor.com
EDUCATION – REAL ESTATE
Rental Housing Association of Washington Denise Myers (206) 283-0816 | RHAwa.org
ELECTRICAL MAINTENANCE + REPAIR
A&A Electric (206) 212-1888 | anaelectric.com
Alpine Ductless, LLC (360) 529-7567 | alpineductless.com
Capstone Solar (206) 580-3448 | capstonesolar.com
Reinhart Electric & Service (425) 251-5201 reinhartelectric.net
ENERGY CONSERVATION + WEATHERIZATION
Rental Housing Association of Washington (206) 283-0816 | RHAwa.org FLOOR
Capstone Solar (206) 580-3448 | capstonesolar.com
Energy Benchmarking Services
Michael Jones (206) 245-8737 | EnergyBenchmarkingServices.com
SRC Windows (253) 565-2488 | srcwindows.com
ESTATE PLANNING
Dimension Law Group PLLC
Synthia Melton (206) 973-3500 | dimensionlaw.com
Flynn and Associates, PLLC
Sean Flynn (206) 330-0608 | theflynnfirm.com
Olympic Estate Group, LLC
G.A. “Jeri” Schuhmann (206) 799-0544 | OlympicWealthStrategies.com
EVICTIONS
Access Evictions
Travis Eller, Attorney at Law (425) 641-8010 | accessevictions.com
Demco Law Firm, P.S. (206) 203-6000 | demcolaw.com
Glasson Legal (206) 627-0528 | glassonlegal.com
LT Services, Inc. (206) 241-1550 | ltservices.net
Loeffler Law Group, PLLC (206) 443-8678 | loefflerlawgroup.com
Maxwell Glasson (206) 627-0528 | loefflerlawgroup.com EXCHANGE —
1031 Capital Solutions (800) 445-5908 | 1031capitalsolutions.com
Gourley Law Group / The Exchange Connection (360) 568-5065 | gourleylawgroup.com
Investment Property Exchange Services, Inc. (425)582-3487 | www.ipx1031.com
Kay Properties & Investments
Dwight Kay (855) 899-4597 | kpi1031.com
- 1031 Real Estate (206) 502-4862 | www.re-transition.com/rhawa
AFB Floors (425)255-3893 | afbfloors.com
Alliance Flooring Services (253) 850-1288 | allianceflooring.com
ER Flooring (360) 402-9566 | erflooring.com
Rental Housing Association of Washington (206) 283-0816 | RHAwa.org
Seattle Public Utilities | Resource
(253) 281-7674 | tacomahousing.net
Optimized
Services, LLC Bryan Mize (206)
| seattlerentalinspector.com Seattle Rental Inspection Services (RRIO) (206) 854-0390 seattlerentalinspectionservices.com
Street Building / Home Inspection
Gonzalez (206) 999-1234 | hi@homeinspect.ws
Brent Ward State Farm Insurance (425) 488-9100 | (888) 532-1875
brentwardagency.com
Diamond Cut Insurance Group, Inc.
Larry Janowicz (425) 879-5198 | larry@dcigi.com
State Farm Insurance (206)322-3910 | myseattleinsurance.com
INVESTMENT + FINANCIAL SERVICES
Colliers International
GoldStar Vendor + Vendor of the Year | 2018
Tim McKay: (206) 223-5586
INVESTMENT + FINANCIAL SERVICES
CPX LLC
(866) 405-1435 | cpxone.com
Dan Chhan: (206) 223-1265
Joe Levin: (206) 223-5583
Sam Wayne: (206) 515-4498
Brittany Rondello: (206) 515-4495
colliers.com
Flynn Family Lending
Matt Flynn (425) 221-8660 | flynnfamilylending.com
Havium. Inc (888) 642-8486 | havium.com
Kidder Mathews
Dylan Simon: (206) 414-8575
Jerrid Anderson: (206) 499-8191
DylanSimon.com
Luther Burbank Savings Bank Tiana Jackson: (425) 739-0023 lutherburbanksavings.com
McTaggart Real Estate (206) 322-9495 | darcoapts.com
Paragon Real Estate Advisors, Inc.
Vendor of the Year | 2016 (206) 623-8880 | (800) 643-9871 paragonrea.com
Peak Mortgage Partners
Dave Eden (206) 660-3014 | peakmp.com
Sound Reatly Group
Charles Burnett, CCIM (206) 931-6036 | soundmultifamily.com
Umpqua Bank | Multifamily Lending
Matt Couch (425) 602-1250 umpquacrelending.com
Wilson Property Management, Inc.
Gary Wilson, CPM (425) 453-0089 | wilsonmanagementinc.com
LENDERS, MORTGAGE CAPITAL
CrossCountry Mortgage LLC (206) 650-4041 | keaneloans.com
Eastside Funding (425) 230-0000 | eastsidefunding.com
First Federal Savings and Loan (206) 586-1701 | ourfirstfed.com
First Financial Northwest Bank
Tom Jarzynka (425) 264-2757 | ffnwb.com
Flynn Family Lending
Matt Flynn (425) 221-8660 | flynnfamilylending.com
Homebridge Financial (206) 915-3742 | homebridge.com
Kidder Matthews Simon and Anderson Team (206) 747-4725 | dylansimon.com
Luther Burbank Savings Bank
Tiana Jackson: (425) 739-0023 lutherburbanksavings.com
Pacific Crest Savings Bank
Todd M. Hull | Scott Gibson (425) 670-9624 | (800) 335-4126 pacificcrestbank.com
Peak Mortgage Partners
Dave Eden (206) 660-3014 | peakmp.com
Sound Community Bank (206) 448-0884 x202 | soundcb.com
Umpqua Bank | Multifamily Lending
Matt Couch (425) 602-1250 | umpquacrelending.com
Washington Federal Vendor of the Year | 2015
Tim Marymee (206) 777-8213 | (800) 324-9375 washingtonfederal.com
Tacoma Public Utilities Power: (253) 502-8600 Water: (253) 502-8723 TacomaPowerRebates.com/multifamily
Pacific Northwest Locksmith (206) 531-0411 | pnwlocksmith.com
Dunn Lumber (206) 632-2129 | (800) 248-3866 dunnlum.com
First Choice Remodeling, Inc. (253) 846-9000 | firstchoiceremodelinginc.com
Multifamily Elites (425) 698-1631 | multifamilyelites.com
Pro Realty Options, Inc. (425) 745-2400 | prorealtyoptions.com
Real Property Management Today (253) 426-1730 | rpmtoday.com
RentalRiff (541) 600-3200 | rentalriff.com
Rife Masonry Chad Rife: (206) 696-6998 rifemasonry.com
Masonry Restoration Consulting (425) 344-3893 masonryrestorationconsulting.com
Pioneer Masonry Restoration Co. (206) 782-4331 | pioneermasonry.com
Guardian Water & Power
Chris Apostolos (206) 271-6913 | (877) 291-3141 x139 guardianwp.com
Submeter Solutions, Inc.
Jeff Lowry: (425) 228-6831 (888) 64-METER (63837) | submetersolutions.com
| MOLD INSPECTIONS
Envirotest | Mold, Air Quality Analysis, Inspections
Donald B. Kronenberg (206) 877-3191 | seattlemoldandairquality.com
Hainsworth Laundry
Jason Hainsworth (509) 534-8942 | hainsworth.biz PAINTING | PAINT
Extreme Steam Carpet Cleaning (425) 330-9328 | extremesteamcc.com
Interland Design
Jake Cervilla (425) 290-9639 | interlanddesign.com
Ohlsen's Property Renewal (206) 228-2123 | propertyrenewals.com
PEST INSPECTIONS
NWK9 Bed Bug Detectives (206) 801-3522 | nwk9bedbugdetectives.com
Straight Street Building / Home Inspection
John Leon Gonzalez (206) 999-1234 | hi@homeinspect.ws
PIPE RESTORATION
Best Plumbing Group (206) 633-1700 | (425) 771-1114
Fischer Plumbing, Inc. (206) 783-4129 | fischerplumbing.com The Pipe Guys (253) 537-2830 | pipeguys.com
Tub Cove Inc. One-piece one-of-a-kind bath walls (206) 522-1711 | tubcove.com
PLUMBING
Best Plumbing Group (206) 633-1700 | (425) 771-1114 bestplumbing.com
Affinity Real Estate Management (206) 812-9155 | affinityrem.com
All County Evergreen Property Management (253) 238-9590 | allcountyevergreen.com
Allen Property Management
Mike Larson (253) 582-6111 | (800) 995-6111 haroldallen.com
Bell-Anderson & Assoc., LLC, AMO (253)852-8195 | bell-anderson.net
Brink Property Management
Dean Foggitt (425) 458-4848 | brinkpm.com
Cadence Real Estate (206)258-4871 | www.cadencere.com
Capstone Commercial Real Estate Advisors
John Downing (206) 324-9427 | capstonerea.com
Champions Real Estate Services (425) 744-5550 | nwchampions.com
Cornell & Associates Inc (206)329-0085 | www.cornellandassociates.com
Dave Poletti & Associates (206) 286-1100 | davepoletti.com
Dobler Management Company Inc. (253) 475-2405 | doblermanagement.com
Elita Living Real Estate LLC
Erica Vincent (206) 323-0771 | elitaliving.com
Emerald Heights Property Management
Ryan Dosch (206) 457-2475 emeraldheightspm.com
First Comercial Properties NW. (206) 985-7275 | fcpnw.com
Foundation Group, LLC (206) 324-7622 | foundationgroupre.com
Icon Real Estate Services Inc.
Jeremiah Roberson (425) 633-3330 | www.iconre.org
Jean Vel Dyke Properties, LLC (206) 725-3103 veldyke.com
Jevons Property Management
Enrique Jevons (206) 880-7935 | jevonsproperties.com
Krishna Realty (425) 209-0055 | krishna-realty.com
Lexington Asset Management (310) 650-3343
Longley Property Management Inc.
Venita Longley (206) 937-3522 | longleypm.com
Madeson Management LLC
Melissa Melia (206) 673-4282 | madesonmanagement.com
Madrona Real Estate Services, LLC
Bradford Augustine (206) 538-2950 | MadronaRealEstate.com
Maple Leaf Management LLC
Michelle Bannister (206) 850-8095 | mapleleafmgt.com
Marathon Properties
Jeff O’Hare (425) 745-9107 | marathonpropmgmt.com
Multifamily Elites (425) 698-1631 | multifamilyelites.com
Nathaly Burnett Property Management (253) 732-9535 | beyondseattle.com
Next Brick Property Management (425) 372-7582
Niche Realty Associates LLC (206) 851-4694 | nichrealtyassoc.com
Northfield Properties Inc. (425) 304-1250 | (425) 304-1250
North Pacific Property Management
Joshua Fant (206) 781-0186 | (800) 332-1032
northpacificpropertymanagement.com
Pacific Crest Real Estate (206) 812-9155 | pacificcrestre.com
PROPERTY MANAGEMENT
Park 52 Property Management
Paul Jakeman (253) 473-5200 | park52.com
People’s Real Estate, Inc.
Lisa Brannon (425) 442-9941 | peoplespm.com
Phillips Real Estate, LLC (206)22-8600 | philipsre.com
Pilot Ventures LLC | Property Management (206) 566-6600 | pilotnw.com
PROPERTY MANAGEMENT SOFTWARE
Rental Housing Association of Washington (206) 283-0816 | RHAwa.org/RMAP
Windermere Property Management / WPM South, LLC
Ed Verdi (253) 638-9811 | wpmsouth.com
WPI Real Estate Services, Inc. (206) 522-8172 | wpirealestate.com
Yardi
Kelly Krier (805) 699-2040 | yardi.com
RECYCLING + GARBAGE
Junk Busters-Big Haul (360) 390-2014 | junkbustersllc.com
REAL ESTATE BROKERS
BricksFolios Real Estate Solutions
Prospector Property Management (206) 508-6366
prospectorpropertymanagement.com
Real Estate Gladiators (425)260-3121 | www.realestategladiators.com
Real Estate Investment Services (REIS) Lakewood: (253) 207-5871 Seattle: (206) 319-5981
REISinvest.com
Real Property Management Today (253) 426-1730 | rpmtoday.com
Redside Partners, LLC
Craig Swanson (206) 323-1771 | redsidepartners.com
Rentals Northwest
Richard Wilber (253) 581-8616
Renters Marketplace
Larry Cutting (425) 277-1500 | rentersmarketplace.com
Seattle's Property Management (206) 856-6000 | seattlespropertymanagement.com
Seattle Rental Group Property Management (206)315-4628 | www.seattlerentalgroup.com
SJA Property Management (425) 658-1920 | sjapropertymanagement.com
SJC Management Group
Jason Clifford (253) 863-8117 | sjcmanagement.com
Spartan Agency, LLC (253) 863-6122 spartanagency.com
SUHRCO Residential Properties (425) 455-0900 | (206) 243-5507
suhrco.com
The Paris Group NW (206) 466-4937 | theparisgroupnw.com
TQ Handyman LLC
Trevor Rose: (206) 222-5129
trevor@tqhandyman.com
T-Square Properties | Real Estate Brokers (425) 485-1800 | www.tsquaremanagement.com
Weber & Associates Property Management (425) 745-5838
Westlake Associates (206) 505-9400 | westlakeassociates.com
Wilson Property Management, Inc.
Gary Wilson CPM (425) 453-0089
wilsonmanagementinc.com
Windermere Property Management
/ Lori Gill & Associates (425) 455-5515 | wpmnorthwest.com
Windermere Property Management
/ JMW Group (206) 621-2037 | windermere-pm.com
Jyotsna (Jo) Dixit (425) 503-1225 | brickfolios.com
Capstone Commercial Real Estate Advisors
John Downing (206) 324-9427 | capstonerea.com
Champions Real Estate Services (425) 744-5550 | nwchampions.com
Colliers International (206) 223-1428 | colliers.com/seattle
Cornell & Associates Inc (206)329-0085 | www.cornellandassociates.com
Dave Poletti & Associates (206) 286-1100 | davepoletti.com
DVF Legacy Investments (206) 650-6113 | pugetsoundinvesting.com
Elita Living Real Estate LLC
Erica Vincent (206) 323-0771 | elitaliving.com
Foundation Group, LLC (206) 324-7622 | foundationgroupre.com
Havium. Inc (888) 642-8486 | havium.com
HFO Investment Real Estate (971) 717-6337 | hfore.com
Jean Vel Dyke Properties, LLC (206) 725-3103 | veldyke.com
Kay Properties & Investments
Dwight Kay (855) 899-4597 | kpi1031.com
Kidder Mathews
Dylan Simon: (206) 414-8575
Jerrid Anderson: (206) 499-8191
DylanSimon.com
Krishna Realty (425) 209-0055 | krishna-realty.com
Leading Edge Property Management (425) 405-2358 | edgehomerentals.com
Lee & Associates
Multifamily Team
Candice Chevaillier (206) 284-1000 | lee-nw.com
Madrona Real Estate
Bradford Augustine (206) 538-2950 MadronaRealEstate.com
McTaggart Real Estate (206) 322-9495 | darcoapts.com
Next Brick Property Management (425) 372-7582
Niche Realty Associates LLC (206) 851-4694 | nichrealtyassoc.com
North Pacific Property Management (206) 781-0186 | (800) 332-1032 northpacificpropertymanagement.com
REAL ESTATE BROKERS
Paragon Real Estate Advisors, Inc.
Vendor of the Year | 2016 (206) 623-8880 | (800) 643-9871 paragonrea.com
Park 52 Property Management
Paul Jakeman (253) 473-5200 | park52.com
People’s Real Estate, Inc. (425) 442-9941 | peoplespm.com
Phillips Real Estate, LLC (206) 622-8600 | phillipsre.com
Prime Metropolis Properties, Inc. (425) 688-3003 | pmp1988.com
Real Estate Gladiators (425)260-3121 | www.realestategladiators.com
Real Estate Investment Services (REIS) Lakewood: (253) 207-5871
Seattle: (206) 319-5981
REISinvest.com
Seattle Land Broker Inc. (206) 973-3022 | seattlelandbroker.com
SJA Property Management (425) 658-1920 | sjapropertymanagement.com
Sound Reatly Group
Charles Burnett, CCIM (206) 931-6036 | soundmultifamily.com
SUHRCO Residential Properties (425) 455-0900 | (206) 243-5507 suhrco.com
Tecton Corporation (206) 448-4100 | tecton.com
The Chang Group (425) 678-2288 | changgroup.com
The Paris Group NW (206) 466-4937 | theparisgroupnw.com
T-Square Properties | Real Estate Brokers (425) 485-1800 www.tsquaremanagement.com
Westlake Associates (206) 505-9400 | westlakeassociates.com
Windermere Property Management / Lori Gill & Associates (425) 455-5515 | wpmnorthwest.com
Windermere Real Estate Commercial
Therasa Alston (206) 650-4777
Windermere Real Estate / East
Buck Hoffman (206) 660-3764 | buckhoffman.com
WPI Real Estate Services, Inc. (206) 522-8172 x105 | wpirealestate.com
RENTAL HOUSING INSPECTORS
Ideal Inspection Services LLC RRIO Certified + Licensed Inspector (206) 930-0264 | idealinspectionservice.com
Optimized Inspection Services, LLC
Bryan Mize (206) 349-0733
Submeter
Guardian Water & Power
Apostolos (206) 271-6913 | (877) 291-3141 x139 guardianwp.com
Submeter Solutions, Inc. Jeff Lowry: (425) 228-6831 (888) 64-METER (63837) | submetersolutions.com
ABC Towing, Inc. Seattle: (206) 682-2869 Tukwila: (206) 767-4024 abc4atow.com
Bio Clean, Inc. (425) 754-9369 | biocleanwa.com
Conservice (435) 419-4960 conservice.com
Tacoma Public Utilities Power: (253) 502-8600 Water: (253) 502-8723 TacomaPowerRebates.com/multifamily
Pacific Publishing Co. | Print & Internet (206) 461-1322 | pacificpublishingcompany.com
Renters Marketplace Larry Cutting (425) 277-1500 | rentersmarketplace.com
MONTHLY NEW MEMBER ORIENTATION
Join
Seattle Public Utilities | Saving Water Partnership (206) 615-1282 | savingwater.org
WATER | FIRE DAMAGE RESTORATION
Fischer Restoration (888) 345-2532 | fischerrestore.com WATER HEATER SALES & SERVICE
Best Plumbing Group (206) 633-1700 | (425) 771-1114 bestplumbing.com
Day & Nite Plumbing & Heating Inc. Vendor of the Year | 2020 (425) 775-6464 | (800) 972-7000 dayandnite.net
Fischer Plumbing, Inc. (206) 783-4129 | fischerplumbing.com
Greenwood True Value Hardware (206) 783-2900 | greenwoodhardware.com WATERPROOFING
Masonry Restoration Consulting (425) 344-3893 masonryrestorationconsulting.com
WINDOW COVERINGS
Shine a Blind | Blinds On-Site Ultrasonic Mini-Blind Cleaning + Repair (425) 771-7799 | shineablind.net
(253) 565-2488 | (800) 870-2488
Public Utilities Power: (253) 502-8600 Water: (253) 502-8723
MAINTENANCE Echo Yard Maintenance (206) 909-6873
City of Kenmore Law Summary
Denise Myers | Education + Resources Director | dmyers@RHAwa.org | (206) 905-0614
This article provides a summary of the following Kenmore policies related to rental housing:
• Use of SSN in Screening
• Move-in Cost Caps
• Move-in Cost Payment Plan
• Notice to Increase Rent
• Late Rent Fee Cap
• Notice to Terminate Tenancy
• Rent Due Date Accommodation
These policies are found in the following:
• The Kenmore Tenant Protections KMC 8.55 applies to tenancies governed by RCW Chapter 59.18 (RLTA) and RCW Chapter 59.20 (Manufactured/Mobile Home Landlord-Tenant Act)
Use of SSN in Screening
A housing provider shall not require a social security number for the purposes of screening a prospective tenant, as allowed under RCW 59.18.257.
Housing providers are required to accept “alternative proof of financial eligibility."
Move-in Cost Caps
The total of all move-in fees and deposits charged by landlord must not exceed one month's rent, except in subsidized housing where the monthly rent is based on the tenants income.
Move-in Cost Payment Plan
• Tenants entering rental agreements with terms lasting six or more months may choose to pay their move in fees and security deposits in six equal monthly installments over the first six months occupying the dwelling unit.
• Tenants entering rental agreements with terms lasting fewer than six months or month-to-month rental agreements, may choose to pay move in fees and security deposits in two equal monthly installments over the first two months occupying the dwelling unit.
• Notice to Increase Rent
• When raising rent at the beginning of a rental period or term lease renewal, landlords must give:
• 120 days' written notice for rent increases greater than three percent (3%); or
• 180 days' written notice for rent increases greater than ten percent (10%).
• As required under WA State law, 60 days' written notice for any rent increases 3% or less.
• If the rental agreement governs subsidized housing where the amount of rent is based on the income of the tenant or circumstances specific to the subsidized household, the landlord shall provide a minimum of thirty (30) days' prior written notice of an increase in the amount of rent to each affected tenant.
Late Rent Fee Cap
Late fees and penalties due to nonpayment of rent charged to a tenant shall not exceed 1.5% of one month's rent.
Notice to Terminate Tenancy
• A housing provider cannot refuse to continue a tenancy after the rental agreement expires without cause per KMC 8.55.075(B)(1-16). This applies to both month-to-month and term leases with a fixed end date.
Rent Due Date Accommodation
Housing provider must accept a tenant’s proposal to change rent due date if their primary source of income is a fixed source or governmental assistance that is not received until after the date rent is due per the agreement.
Formal legal advice and review is recommended prior to selection and use of this information. RHAWA does not represent your selection or execution of this information as appropriate for your specific circumstance. The material contained and represented herein, although obtained from reliable sources, is not considered legal advice or to be used as a substitution for legal counsel.
Ready to Move from Property Owner to 1031 DST Investor?
Austin Bowlin, CPA – Partner | Real Estate Transition Solutions | Vendor Member
Real estate investment has long been a popular asset class for individuals looking to expand their net worth with appreciation and cash flow that accrue over time. For many of our clients, those real estate holdings end up serving as a "personal property pension plan" – a nice nest egg that can provide financial security during retirement. However, retirement often comes with a change in lifestyle and a change in risk tolerance that does not always mesh with the role of a landlord.
Retirees typically want to move away from day-to-day management responsibilities while still holding onto some of the key benefits of real estate – pres-
ervation of value, steady income, and portfolio diversification. Choosing to hire a manager or third-party management firm translates to added fees that can dilute cash flow. In addition, holding onto existing assets makes it difficult to re-balance and diversify an investment portfolio to provide the security and stability many want and need for their retirement years. In fact, a significant portion of an individual's net worth may be concentrated in a particular property type or location or, in some cases, a single asset. Having all or most of your eggs in one basket is rarely a sound financial strategy. One alternative to consider is a tax-deferred 1031 Exchange into a Delaware Statutory Trust (DST).
What is a 1031 Exchange?
A 1031 Exchange, also known as a "like-kind" Exchange, gets its name from Section 1031 of the U.S. Internal Revenue Code. By performing a 1031 Exchange, you can sell investment real estate without paying capital gains tax if you reinvest the sales proceeds into like-kind investment property of equal or greater value and adhere to IRC 1031 rules and timing requirements. And, because the IRS defines "likekind" as any real estate of the same nature or class (not of the same quality or property type), you can exchange any investment real estate asset (excluding a personal residence) for another investment real estate asset.
What is a DST Investment?
A Delaware Statutory Trust (DST) is a type of investment property that qualifies for a tax-deferred 1031 Exchange. Typically comprised of institutional-grade assets, DSTs are popular with investment property owners seeking management-free 1031 replacement property with the potential for steady monthly income. DSTs offer fractional real estate ownership in a single property or a diversified portfolio of assets and often have a low minimum investment amount of $100k. The relatively low buy-in allows property owners to exchange the proceeds from selling an existing property into multiple DSTs, thereby creating a diverse
Austin Bowlin
portfolio of different types of properties and geographies.
Structured as security, DSTs are regulated by the Securities and Exchange Commission (SEC) and are available only to accredited investors. Accredited investors must meet a threshold of having a net worth above $1 million, excluding your primary residence. Alternatively, accreditation can be reached for those who have generated $200,000 of annual income individually or $300,000 jointly for the last three years.
Understanding the Pros & Cons Delaware Statutory Trusts offer many benefits and provide flexible options to help meet your objectives. Below are a few advantages of a DST investment property. For more detailed information on 1031 DST replacement property, download our FREE Guide: Investing in 1031 Delaware Statutory Trusts.
• Substantial Tax Savings: As a qualified 1031 Exchange property type, DSTs allow for the deferral
of federal capital gains tax, net investment income tax, and depreciation recapture tax.
• Maximize Potential for Cash Flow: DSTs are structured with an emphasis on cash flow and typically include high-quality institutional property.
beneficiaries by providing a full step-up in tax basis upon the death of an owner.
• Fractional Ownership Structure: Allows investors to own a "fractional interest" in a large property or a portfolio of multiple properties.
IF YOU PLAN TO SELL PROPERTY USING A 1031 EXCHANGE, A DST INVESTMENT PROPERTY IS WORTH CONSIDERING
• Eliminate Active Property Management: DST properties are managed by prominent real estate firms called DST Sponsors.
• Estate Planning Benefits: Eliminate inheritance and estate tax for
• Institutional-Grade Real Estate: DST investors have access to higher-grade institutional real estate, typically held by pensions, REITS, and large institutional investors.
• Reduce Risk Through Diversifi-
cation: Investors can access different property types and markets.
• Low-Cost Non-Recourse Debt Matching: Because most investors have debt that must be matched in their 1031 Exchange, Delaware Statutory Trusts are often structured with debt in place.
• Increase Annual Depreciation to Offset Taxable Income: Another tax benefit of owning DST real estate is the potential to increase annual depreciation to offset taxable income for the investor.
• Low Investment Minimums: DSTs typically have a minimum investment of around $100K, allowing investors to acquire multiple DSTs.
• Quick Closing: DSTs can close in a matter of days, which makes them an excellent option for investors approaching their 45-Day identification deadline.
It is important to consider all risks when determining the suitability of any investment. DST investments offer attractive benefits but are not suitable
for everyone. DSTs come with many of the same risks inherent to owning real estate, including lack of liquidity, interest rate risk, financing risk, costs and fees, market conditions, etc. Therefore, before deciding to invest in DST real estate, we recommend speaking to a 1031 Exchange Advisor at Real Estate Transition Solutions to discuss suitability and risk tolerance.
Is a DST Investment Right for You? DSTs are a popular exit strategy that can address the changing nature of an owner's objectives, whether an individual is moving into retirement, seeking
IMPORTANT INFORMATION
to diversify an investment portfolio, or simply trying to lighten their workload. If you plan to sell property using a 1031 Exchange, a DST investment property is worth considering.
The easiest way to determine if a DST investment is right for your situation is to speak with a licensed 1031 Exchange advisor at Real Estate Transition Solutions. We offer complimentary consultations that can be done over the phone, via web conference, or in person at one of our offices. To schedule your consultation, call (206) 502-4862 or visit us at www.re-transition.com/rhawa.
Austin Bowlin, CPA - Chief Exchange Strategist & Partner at Real Estate Transition Solutions. As Chief Exchange Strategist, Austin leads the firm's team of licensed 1031 Exchange advisors & analysts and provides consultation on tax liability, deferral strategies, legal entity structuring, co-ownership arrangements, 1031 replacement property options, and Delaware Statutory Trust investments. About Real Estate Transition Solutions Real Estate Transition Solutions (RETS) is a consulting firm specializing in tax-deferred 1031 Exchange strategies and Delaware Statutory
Trust investment property. For over 26 years, we have helped investment property owners perform successful 1031 Exchanges by developing and implementing well-planned, tax-efficient transition plans carefully designed to meet their objectives. Our team of licensed 1031 Exchange Advisors will guide you through the entire process, including help selecting and acquiring passive management replacement properties best suited to meet your objectives. To learn more about Real Estate Transition Solutions, call (206) 502-4862 or visit our website at www. re-transition.com/rhawa.
The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. Such offers are only made through the sponsor's Private Placement Memorandum (PPM), which is solely available to accredited investors and accredited entities. Case studies and examples are for illustrative purposes and not representative of future results. There are risks associated with investing in real estate properties, including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies, and illiquidity. Because investor situations and objectives vary, this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your situation. DST 1031 properties are only available to accredited investors (generally described as having a net worth of over $1 million exclusive of primary residence) 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. Securities are offered through Aurora Securities, Inc. (ASI), member FINRA/SIPC. Advisory services are offered through Secure Asset Management, LLC (SAM), a registered investment advisor. ASI and SAM are affiliated companies. Real Estate Transition Solutions (RETS) is independent of ASI and SAM.
New Opportunities in 2023, Leaving Behind Steady Gains in 2022
Christie Lagasse, Sterling Johnston Investment Team |
MORTGAGE RATES AND 1031 EQUITY
Historically, the most important factor for home value trends is directly related to mortgage rate direction trends. Falling rates and mortgage payments make homes more affordable for a larger number of buyers. Conversely, rising rates make it more challenging to qualify to purchase properties.
Mortgage rates today are just moving back towards historical trends. For example, the average 30-year fixed mortgage rate over the period of 51 years between April 1971 and September 2022 was 7.76%, as per the Federal Reserve. The Fed may start cutting rates again in 2023 after pushing rates so quickly in 2022. If so, real estate price gains might rise yet again at near record paces like those seen over the past 10 years.
In January 2023, the conforming loan limits for loans funded and sold off to Fannie Mae and Freddie Mac in the secondary market are rising yet again. This is good news for our state as large loan amount allowances of up to 97% of the purchase can make it easier for more buyers to purchase properties.
The conforming loan amount changes increased from the single-family conforming loan amount limit of $647,200 in 2022 to $726,200 in 2023 for a one unit property (single-family home, condominium, townhome, etc.). The two-unit or duplex loan limit rises to $929,850; the three-unit or triplex loan limit increases to $1,123,900; and the four-unit or fourplex loan limit reaches $1,396,800.
For the more expensive high-cost conforming loan limit regions found in King, Pierce, and Snohomish counties, the 2023 loan limits are much higher as follows:
Buyers with cash or equity rolls from 1031 tax-deferred exchanges may not need a very large mortgage to purchase a new rental property or properties. As such, the rising mortgage rates have much less of an impact on them than they would for first-time home buyers who are seeking a highly-leveraged VA, FHA, or conforming mortgage with loan-to-value (LTV) ranges that may vary between 97% and 100% of the purchase price.
Many of our investors use 1031 tax-deferred exchanges to roll their profits from the sale of one property into one or more other properties. The key is to sell at the price peak for the market and let our Sterling Johnston Real Estate team members find you the best bargains to exchange into shortly thereafter.
Investors and homebuyers are relying upon a higher number of real estate licensees to guide them through the ever-changing rate cycles and housing market trends. With less competition from other buyers partly due to rising mort-
gage rates, now is the time for both first-time buyers and experienced investors to enter the market.
REAL ESTATE IN 2022 - A REVIEW OF THE YEAR
Homes in the Seattle region appreciated 137.11% over the past 10 years, as per NeighborhoodScout.com. This is equal to an average annual gain of 9.02%. This puts the Seattle region in the Top 10% nationally for home price appreciation.
Between the second quarter of 2021 and the second quarter of 2022, the Seattle appreciation rate was 12.16%. Over the period of 15 months between the first quarter of 2021 and the second quarter of 2022, home prices in Seattle rose at a much higher 18.58% annual pace.
Obviously, these record price gains can’t continue at double-digit gains each year. Based upon historical trends, homes rose in value at or above the published annual CPI (Consumer Price Index) rate which is more like 3% or so each year. Real estate has proven to be an exceptional hedge against inflation because it floats like a buoy that rises with inflation trends. Any talk of a “cooling” for real estate is more like talk about the appreciation gains possibly becoming more normal as seen in years past.
The Median Home Sold price of $819,717 rose +9.4% for King County between November 2021 and November 2022. This was equivalent to an average equity gain of $70,611 over just one year. The average selling price per square foot was $508.
The S&P/Case-Shiller Index for the King, Pierce, and Snohomish county regions shows a higher +9.87% year-over-year home price gain through October 2022 for single-family homes. The NWMLS report for October 2022 lists a fairly balanced 6,435 pending transactions and almost an identical 6,464 closed home sales transactions.
The median price for single-family homes and condominiums together as of October 2022 was reported as follows:
MIGRATION TRENDS FOR WASHINGTON
The four-county region of Puget Sound (King, Snohomish, Pierce, and Kitsap) and other counties around Washington continue to attract new residents from across that nation and the world. This is partly due to high-paying jobs associated with Microsoft, Amazon, Google, and Boeing.
Christie Lagasse
A recent study conducted by a moving company database named moveBuddha found that the exact same three states were involved in both inflow and outflow for resident movements. Washington residents moved out of state to these Top 3 states which included California (13.8%), Texas (11.9%), and Florida (8.71%). At the same time, these three states were the Top 3 for new residents who moved to Washington as follows: California (25.91%), Texas (10.41%), and Florida (4.73%).
SUPPLY TRENDS FOR LISTINGS
We’re still seeing home listing numbers that are well below historical trends. In fact, the current supply of home listings for the Puget Sound four-county region averages nearly just two months and is broken down as follows: King County (2 months), Pierce County (1.99 months), Kitsap County (1.98 months), and Snohomish County (1.83 months).
UNSOLD HOUSING LISTING INVENTORY IN KING COUNTY
Current unsold listing inventories are still below the 5-year historical average in King County. When the buyer demand exceeds the available supply for real estate, consumer goods, or other services, then prices tend to rise. Let’s take a look below at some of the unsold housing inventory numbers:
Investors and homebuyers are relying upon a higher number of real estate licensees to guide them through the ever-changing rate cycles and housing market trends. With less competition from other buyers partly due to rising mortgage rates, now is the time for both first-time buyers and experienced investors to enter the market.
Christie Lagasse is the Director of Business Development at Sterling Johnston Investment Team, a company that operates in the real estate industry. Prior to joining Johnston, Christie gained over 10 years of experience in operations, business development, and project management. In the last 8 years, she has worked in various roles within the real estate industry and has established a strong background in building trusted relationships with clients and community members, developing and training teams, implementing processes, and implementing successful sales strategies. Christie is known for her effective, detail-oriented leadership style and her ability to mentor and highlight the strengths of her team and individuals to ensure optimal growth and success. She is highly organized and has a proven track record of setting and achieving goals within budget and on time.
Build a Positive Working Relationship with Your Tenants
Lisa Lotus | Taurus Home Inspections | RHAWA Vendor Member
By now, you’ve probably heard about “the City rental inspection” you need to get done. It can sound overwhelming but it’s really not too bad.
I am a registered vendor with RHAWA and a licensed, certified residential home inspector who performs rental inspections for Seattle, Tukwila & Burien as well as inspections for transactions.
I follow a simple checklist to make sure the home is safe and habitable for the tenants (whether long or short term) and complete the paperwork with the City. Then you’re good to go…until you receive notice that another inspection is required.
I encourage you to attend the upcoming RHAWA class on February 2nd. I’ll go over the various City requirements and how they differ if you own rental properties in Seattle vs. Burien or Tukwila. I’ll show you case studies and the kind of things that hold up the process. Find out how to pass a rental inspection in a snap!
Lisa Lotus (WA State Residential Home Inspector #2261) of Taurus Home Inspections conducts residential home inspections and also performs rental inspections for the cities of Seattle, Tukwila, Burien, and Renton. Lisa is happy to answer any questions you may have. For more information about rental or any other kind of inspections, please contact Lisa at (206) 676-0023, or at lisa@taurushomeinspections.com. Learn more about her company by visiting her website taurushomeinspections.com.
Lisa Lotus
VENDOR
MEMBER
How to Choose Your Home’s Replacement Heating System
Bruce Davis, Sr. | Day & Night Plumbing & Heating, Inc. | 2020 Vendor Member of the Year
Having worked in the Plumbing, Heating, & Cooling industry now for over 40 years, I’ve come to notice a few basic things worth considering when it’s time to choose a heating/cooling system; either initially with a new home, or as a replacement for an existing system.
The most basic thing to consider is what kind of system or systems are you most comfortable living with…
• Do you like the feel and convenience of central air?
• Do you like the warmth of radiant heat coming off a stove, fireplace, or radiator?
• Do you want the hard surfaces in the home to be warm to your bare feet?
• Do you need to have good air circulation and filtration due to allergies?
• Is controlling the humidity unnecessary… or an important issue?
After that, it’s best to consider the types of systems that have worked well for people in your area, and the companies that have a long history of installing and supporting these systems.
It used to be that only one type of system could be used in a home. That’s not true anymore. Now, it’s possible and often a good idea to use several types of equipment together in order to achieve the most comfortable and economical heating and cooling system in our homes. These ‘hybrid systems’ are becoming more and more common.
As an example, our home in the Pacific Northwest is 42 years old and has several types of systems, although when we built it, all we could afford was a cheap electric furnace with conventional ductwork. Over the years we improved and upgraded.
Our primary central heating/cooling system still has conventional duct work under the house in a crawlspace, but it’s now sealed and super-insulated, with a heat pump unit outside that can keep heating our home down to 10 degrees Fahrenheit, without the need for expensive electric ‘back-up’ strip heat. And, since we live in the foothills of the Cascades, and our power goes out frequently, we have a ‘wood stove’ style heater in the main living room, powered by propane, which also heats our on-demand water heater.
Just to bless my wife, we have tapped into that potable hot water system and are warming the floors in the master bedroom with some radiant heat. Since we own pets and allergies, we also incorporated an extremely good quality media air filter, and our variable-speed furnace blower unit now runs 24 hours a day, 365 days a year. Fortunately, it doesn’t cost much to run. We are always filtering the air, and when there is a call for heating or cooling, the fan ramps up to the proper speed until the right temperature is achieved, and then goes back down to a very slow, gentle circulation.
It’s best that Hybrid Home Comfort Systems like ours only be designed, in-
stalled, and maintained by a good quality HVAC/R dealer company, that stays abreast of the industry, keeps its people well trained, and in my opinion, is staffed by a team of professionals who have a long history of success with the equipment and the same company.
I also believe it’s best to work with a company that’s been in your community a long time and installs good quality equipment from manufacturers that have strong distributor networks. This benefits you because if the company that installed your equipment needs backup help or training, there is a network in place to make sure you aren’t left ‘out in the cold’.
I don’t think it’s a coincidence that the equipment manufacturers like Lennox and York who do not have a Distributorship Network to support their dealers have the lowest ratings by Consumer Reporting agencies.
Unlike simple appliances i.e., dishwashers or washing machines and dryers; Furnaces, boilers, air conditioners, solar heat, geothermal heat, heat pumps, and ductless heat pumps, are all very sophisticated systems that run on-demand for months at a time. And it takes a lot of support and ongoing training to maintain them properly.
If you’re thinking about getting or replacing your HVAC/R System here are a few things to remember:
• Make sure you have researched a handful of good companies that are
dealers for higher-rated equipment like Carrier, American Standard, Bryant, or Trane.
• Have them come to your home and spend time with you so they understand what you need and like, and what your structure needs.
• Have them perform a comprehensive Energy Audit and Heat-Cooling Loss/Gain calculation according to Local and Federal Standards and Codes.
• Most importantly…Be proactive! Having these things done before an emergency breakdown forces you to make a rash decision.
A good quality, whole-house HVAC/R, and Filtration System is not something that you can just buy out of a box and apply generically. It’s a holistic Comfort System that needs to be designed, installed, supported, and maintained by professionals who are invested in their trade, and invested in helping you and your family for the life of your home.
Bruce Davis, Sr. is a Licensed Journeyman Plumber, Licensed Electrician, HVAC/R Electrical Administrator, HVAC/R ,and Certified WA State C.E.U. Instructor. Day and Nite Plumbing and Heating, Inc has been in Lynnwood serving Snohomish and N. King County for over 68-years, and Bruce Sr. has been President and working at this family-owned business for 36-years. Bruce can be contacted at: Email: Bruce@ dayandnite.net.Day and Nite Plumbing and Heating Inc. 16614 13 Ave. W., Lynnwood, WA 9803, (800) 972-7000.
Bruce Davis, Sr.
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