Featured Management Company
In 1963 Fogelman Management Group began a proud tradition of providing the highest quality property management services to the thousands of residents who call the Fogelman communities “home” for over 50 years. FMG has grown from small local property management firm in Memphis to one of the country’s largest privately held operators of multifamily apartment communities. Fogelman is one of the most experienced and highly regarded property management firms in the multifamily industry. The management portfolio is comprised of over 80 multifamily communities with more than 25,000 apartment homes, totaling over $3 billion in aggregate value. Their client base includes an array of highly regarded pension fund advisors, investment managers, and private investors, many of whom have worked with FMG for decades. They find that Fogelman provides them with an unmatched combination of service, professionalism and proven results. Fogelman’s success has been recognized on both a national and local level. This includes being named as a “Best Place to Work” nationally within the multifamily industry, as well as regionally in markets including Memphis, Atlanta, Houston and Kansas City. Fogelman Management Group received the #3 ranking nationally in the 2017 “Best Places to Work Multifamily” at the Multifamily Leadership awards ceremony in December in Phoenix, Arizona. Finalist were determined after a rigorous assessment process, administered by the Best Companies Group, evaluating each company’s employee policies, procedures, benefits and responses from the company’s employees The principals of FMG are Richard Fogelman, Chief Executive Officer, and Mark Fogelman, President and Chief Operating Officer. Rick and Mark take great pride in leading the company’s 450 plus Fogelman associates with the same core values that guided FMG’s success during the past four decades: hard work, professionalism, the highest level of integrity, and a burning desire to be the best. Our regional operations team is one of the most tenured in the multifamily industry, averaging over 20 years in the multifamily industry and over 10 years with Fogelman. The Nashville area portfolio includes Stewart’s Ferry, Arbors of Brentwood, Creekside at Providence, The Overlook, The Lexington, Cambridge at Hickory Hollow and The Cleo.
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2017 Board of Directors Chairman-Elect Andrew Klahn, CAM, CAPS, NALP, HCCP Vice-Chairman Stephanie Burns, CAPS, CAM, NALP Secretary/Treasurer Zac Ward, CPM® Immediate Past Chairman Diana English Managers Representative Chloé Evans Maintenance Representative John Johnson, CAMT, CPO Associates Representative Lacey Smithson, NALP Management Directors Anne Adams, CAM, NALP Kitty Barry, NAAEI-AIT Brigitte Byron, CAM Tracey Crowe Tina Hamor Stacey Holt, CAM Bret Marchbanks, CAM Jessie Phillips Melanie Schlachter Lori Torres, CAM Maintenance Directors Diane Mason, CAMT, CPO Dale Smith, CAMT, CPO Associate Directors Jack Abernathy, CAS Jill Carpenter, CAS Jennifer McCoy, Esq. Loyd Owen Dwayne Rawls, CAS MDHA Representative Norman Deep Legal Advisor Wes Hall President Diane Carter Director of Education & Events Ginny Johnson Director of Communications & Marketing Scott Meert Finance Connie Morris Statistics Bobbi Turner, ARM Active Past Chairmen Mary Bradley Brad Cather, CPM®, HCCP, SHCM, COS Kirby Davis Faye Ellis, CPM® Diana English Andy Gass, ARM Barbara Haynes Shelley James, CAM, CAPS Tammy Lee, CAM Chari Lewis, CPM® Stacy L. Molen, CAM Nancy Morris Linda Page, CPM®, ARM Judy Rose, CPM® Rita Wilkinson, CPM®, ARM Joyce Wolfe
GNAA News & Events / September 2017
Contents
Chairman Lisa Swick, CAPS
Features 7
9
12
16
It’s the Law Fair Housing “Spirit of the Law” Argument Fails It’s Festival Time In Tennessee! Check Out These Fun Festivals Around the State GNAA Strategic Plan Update Four Main Goals of the GNAA Board Feature Three Factors That Influence Apartment Turnover
Association News 4
5
6
11
11
20
21
22
23
25
About the Cover Fogelman Management Group Cover photo by Penny Rawls Photography
New Members Welcome! Calendar Something Special Noted on the Calendar LIHTC Seminar Fundamental and Advanced Training in LIHTC Compliance Election Night Ghoulish Gala 2071 GNAA Apartment Tour Murfreesboro Takes Center Stage CAM Registration Invest In Your Career! September Networking Opportunities TAA Business Exchange, Managers & Maintenance Lunch 2017 Awards & Installation Banquet Paint the Town Red Membership Connection Stay Connected With Other Members CAMT Registration Build Your Skills and Advance
New Members Management Companies
Titus Young Property Management Allison Wootson PO Box 330996 Nashville, TN 37208 awootson@titusyoungre.com
Apartment Communities
Vintage at the Avenue Melanie Schlachter 1349 Greshampark Dr. Murfreesboro, TN 37129 203 apartment homes melanie.schlachter@greystar.com Greystar Referred by: Melanie Schlachter, Vintage Blackman River House Abby Hainer Rolling Mill Hill Nashville, TN 37210 247 apartment homes riverhouse.mgr@ram-mgt.com RAM Partners, LLC Referred by: Gina Lampe, Terra House
Associates
Caruthers & Associates, Inc. Colby Caruthers 1212 Laurel St., Suite 1610 Nashville, TN 37203 615-761-9098 FAX 901-726-1313 colby@caruthersinc.com Tax consulting, property tax appeals Referred by: Web search FastSigns - Brentwood Jeff McCall 1945 Mallory Ln. #165 Franklin, TN 37067 615-628-7593 jeff.mccall@fastsigns.com Signs, visual communication products, ADA signs, wayfinding signs
4 GNAA
From the Ground Up Plumbing & Renovation Dwayne Metchis 195 Gaskins Rd. Dickson, TN 37055 615-540-9272 dcmmaa@gmail.com General contractor, plumbing services Referred by: Rusty Guilliams, Bug Solutions Fox Design Kristina Holdorf 1386 Volunteer Dr. Hendersonville, TN 37075 888-539-1114 sales@foxdesignservices.com Signage solutions Referred by: Multiple Clients Nashville Downtown Partnership Tamara Dickson 150 4th Ave. N., G-150 Nashville, TN 37219 615-743-3091 tdickson@nashvilledowntown.com Manage a central business improvement district Referred by: Kirby Davis, Freeman Webb Middle Tennessee Waste Solutions Josh Helms Box 91 Thompson’s Station, TN 37179 615-949-8847 ewsvalet@gmail.com Trash valet for multi-family communities Referred by: Erin Bryant, Bell Historic Franklin Realync Corp Jordan Easley 12400 N. Meridian St., Suite 150 Carmel, IN 46032 312-971-7023 jordan@realync.com Software for hosting live video tours of apartment homes Referred by: Cory Owak, Magellan Property Management
Waste Industries of TN, LLC Stephanie Anderson 7320 Centennial Blvd. Nashville, TN 37209 615-350-5901 stephanie.anderson@wasteindustries.com Residential, commercial trash removal West Tennessee Construction Services 315 Deadrick St., Suite 1550 A25 Nashville, TN 37201 615-863-1115 chris.haynes@wtnes.com Asphalt & concrete repair, overlays, drainage, striping, sealing Referred by: Cody Primm, Grove at Shadow Green Zavada Scientific, LLC Alan Croft 10649 Shady Trail Dallas, TX 75220 214-366-7723 info@zavadascientific.com Noble ion odor technology Referred by: Diane Carter, GNAA  
Corrected Information City Fit Concierge Ryan Hartman 11 Music Sq. E., Suite 207 Nashville, TN 37203 615-496-6165 ryan@cityfitconcierge.com Fitness & wellness services Referred by: Chloe Evans, Element Music Row
Full Service Digital Print & Copy Center on-demand orders, quick turnaround promo items, business cards, brochures, banners, signs, direct mail, reports, forms, binding, finishing, wide-format prints and apparel Steve Goldstein, Account Representative 615-727-8193 or steve.goldstein@rjyoung.com
September
Sunday
3
Monday
Tuesday Wednesday Thursday
4
Labor Day
5
GNAA OFFICE CLOSED
6 News & Events Community Service Committee* 8:30am Committee* 9am
Friday
Saturday
1
2
8
9
15
16
22
23
29
30
7
TAA Business Exchange
Ferguson Showroom 6pm
10
11
Maintenance Committee*
12
8:30am
Education Committee*
13
14
9am
Managers Luncheon* 12pm
17
18
Certified Apartment Manager (CAM)* 8am
19
Certified Apartment Manager (CAM)* 8am
20
Certified Apartment Manager (CAM)* 8am
8am
Maintenance Luncheon
25
26
Board of Directors* 9am
Banquet Committee*
8am
(invitation only)
27
28
Beer, Butts & BBQ
9am
American Legion 5pm
Awards Committee*
Leadership Lyceum
10:15am
Certified Apartment Manager (CAM)*
MEC
Hermitage House 12pm
24
21
Certified Apartment Manager (CAM)*
(invitation only)
*at GNAA office
GNAA 5
Thursday, September 28 5:00 p.m. – 8:00 p.m. The American Legion
2864 Elm Hill Pike, Nashville, TN 37214 Proceeds to benefit the GNAA ERP FUND
(Emergency Relief Program)
Cost: $25 per person
(Sponsors & BBQ Teams are free, Guests $25)
Featuring 4th Annual Bake Sale/Auction in memory of Deborah Baumstark (Contact office if you can donate a baked good)
BBQ Competition $300
inning Team w for e 1st Plac RIBS” Q “BEST BB 500!! wins $
Be Prepared to Have Enough BBQ for 50 people
Set up at 8:00 a.m. Event 5:00-8:00 p.m.
Sponsor still avail ships able.. call the g naa offic . more deta e for ils!
Sign up your team or to attend at www.gnaa.org.
Low Income Housing Tax Credit Seminar Fundamental and Advanced Training in LIHTC compliance
Tuesday, November 28th:
Fundamentals of LIHTC Compliance: 9 am - 5 pm (Lunch Provided)
Instructor:
Karen Graham, HCCP, CPM
Wednesday, November 29th: Advanced Training: 9 am - 1 pm Optional HCCP testing: 1 pm - 5 pm
Location both days: GNAA Education & Training Room
The Housing Credit Certified Professional (HCCP) is the leading designation in the Low-Income Housing Tax Credit Industry, representing the highest level of competency and knowledge, as well as a commitment to the highest ethical standards.
SIGN UP AT GNAA.ORG.
Members $250 per person (Non-Members $300)
Optional HCCP testing: additional $175 *HCCP Exam not included in class price, Students may elect to attend only the first day of Instruction, however the cost will not be reduced. No refunds or cancellations permitted. 12 Continuing Education Credits for both courses
Thank You 2017 Education Sponsors!
Elmington Property Management • Ferguson Facilities Supply • Langley & Taylor Pool Corporation • Law Office of Hall & Associates L.I.C.R.A - Nashville • Lighthouse Property Management • Lincoln Property Company • RentDebt Automated Collections Sherwin Williams • Valet Waste • Volunteer Properties • Wheeler, Inc.
6 GNAA
It’s the Law
Fair Housing “Spirit of the Law” Argument Fails Attorneys and judges have the ability to come up with some unique arguments. Some of these unique arguments often involve the “spirit of the law.” Essentially, the argument is based on the intent of those who wrote the law and not necessarily the actual words written in the law. This argument recently failed in a Connecticut fair housing case where the person wanting to keep an emotional support animal was not in fact disabled. The story began with a mother, a daughter, four nieces and nephews, and a dog named Mellow. The family lived together in subsidized housing in New Haven, Connecticut. Sadly, the mother died. The daughter remained in the apartment and obtained legal custody of her four nieces and nephews and Mellow. When the daughter signed a new lease, there was a provision that prohibited her from keeping dogs on the property. Although the daughter knew the lease did not allow dogs, she thought Mellow would be accepted because the dog had always lived in the apartment. Not so. The landlord sent the daughter a notice she was in violation of her lease and would be evicted. When the trial day came, the daughter testified in court about how the children had emotional issues and they were attached to Mellow. She also stated that she had learned she could get Mellow certified as a service animal and intended to obtain a certification in order for Mellow to remain in the apartment. The court gave the daughter time to get Mellow certified.
by Angelita Fisher, Attorney at Law Law Office of Angelita E. Fisher
In the next hearing, the daughter had obtained an on-line certificate declaring Mellow an emotional support dog as well as a letter from a doctor and social worker indicating that Mellow provided comfort to one of the nieces who was dealing with a personal loss. The court took these two documents into consideration and held that the “spirit” of the fair housing regulations had been followed by the daughter in this case. She had established that Mellow acted as a therapy dog for the niece who would be harmed if Mellow was removed from the household. Therefore, Mellow could stay. The landlord appealed to the Connecticut Supreme Court. The Connecticut Supreme overturned the lower court’s decision. It held the lower court could not have reasonably concluded that the resident satisfied the “spirit” of the law which provides relief only for specifically defined physical or mental disabilities. The Supreme Court considered the testimony in the lower court trial. At trial, the daughter did not claim she, her nieces, or nephews had a qualifying disability, either physical or mental. She instead testified that none of the occupants of the home have difficulty with daily activities such as brushing their teeth and getting dressed. The daughter testified that Mellow was an “emotional support dog” that she keeps for the “emotional comfort and the mental state” of her niece. All the children had emotional difficulties because their mother, the daughter’s sister, had essentially abandoned them, despite living across the street. Even the letter from the doctor and social worker did not state the niece had a mental or physical disability as contemplate by the Fair Housing Act. On the basis of the record that no person in the household had a disability, the Supreme Court held that the trial court could not have reasonably concluded that the daughter satisfied the “spirit” of the relevant federal regulations. The Fair Housing Act regulations provide relief only for specifically defined physical or mental disabilities. Mellow must go – regardless of how much emotional support he provided.
GNAA 7
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8 GNAA
It’s Festival Time In Tennessee! Muddy Roots Music Festival • Cookeville August 31 - September 4
It’s three days of music, camping, vintage cars and more over Labor Day weekend. Musical acts celebrate diversity across genres with underground country roots. Nashville Greek Festival September 8-10
Savory cuisine, soulful music, lively dancing and more at this event celebrating Greek hospitality and culture. Tennessee State Fair • Nashville September 8-17
Midway rides, pageant, karaoke, cornhole, hula hoop contest and ice cream eating competition. Cumberland River Dragon Boat Festival Nashville September 9
Hosted at Riverboat Park. Thousands will watch 50 dragon boats compete. Fayette County Cotton Festival • Somerville September 9
17th annual event at Historic Somerville Square. Live music includes bluegrass, country, and southern rock. Arts & crafts, car & truck show, festival food, youth talent competition and canning & cooking contest. Germantown Festival • Germantown September 9-10
Fun for the whole family at this annual 5k, pup parade and festival. Americana Music Festival • Nashville September 12-17
100+ live performances at nine stages in the downtown area.
Music City Food and Wine Festival Nashville September 15-17
A music and culinary event in downtown Nashville with Grand Tasting, Chef Showcase and other events. National Muscadine Festival Sweetwater September 22-23
Live music, food and family fun. BBQ competition, Miss Muscadine and more. Events will be held at Tsali Notch, Tennessee’s largest muscadine vineyard, and downtown Sweetwater. Ober Gatlinburg Oktoberfest September 22 - October 29
Ober Gatlinburg hosts this festival with Bavarian-style food, Oktoberfest biers and live music. Entertainment includes Bavarian folk dances, schuhplattling, oompah music, sing-a-longs, and yodels. Pilgrimage Music & Cultural Festival • Franklin September 23-24
Nashville Chalk Fest September 30 - October 1
A free, two-day street painting festival featuring sidewalk chalk art by professional artists, hobbyists, and art enthusiasts. It includes entertainment, food, and family fun. Nashville Oktoberfest • October 5-8
37th Annual Tennessee Oktoberfest in Nashville’s Historic Germantown. Autumn festival with free admission; German music and live entertainment; German food, beverages, polka dancing and stein hoisting contest; children’s activity area featuring pony rides, clowns and inflatables; arts, crafts, antiques and tours of Germantown’s historic churches. Location: 7th Avenue & Monroe Street.
GNAA 9
Tennessee’s Leading Advocate for Multifamily Housing
FOURTH ANNUAL
BUSINESS EXCHANGE and
Flavor of Tennessee Reception Thursday, September 7, 2017
Business Exchange/Networking Session 6 - 8 p.m. Flavor of Tennessee Reception 8 - 9 p.m. Ferguson Showroom, 3201-B Powell Avenue, Nashville
Thank You Title Sponsors!
Suppliers, come in to meet these featured management companies!* Bell Partners CLK Multifamily Management Elmington Property Management Fogelman Management Group Freeman Webb Companies, Greystar HND Management Lincoln Property Company MAA NTS Development Co S&S Property Management Timberland Partners Vita Residential *Management companies subject to change.
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10 GNAA
Cast Your Vote for the 2018 GNAA Board of Directors! All GNAA Members are encouraged to VOTE!
Prizes Awarded for:
Best Costume d Funniest Costume Greatest Group Costume Most Original Costume Scariest Costume
Cost: $32 per person (Dinner included). RESERVATIONS ARE REQUIRED. Space is limited.
Register online at gnaa.org!
Thank You Sponsors!
Bouvier Insurance College Hunks Hauling Junk
e s e b r oro f r u M e g Takes a t C enter S
I V
Comcast U CORT Wright Construction Company
Thursday, October 12th 8 a.m. - 4 p.m.
For more information or to register, visit www. gnaa.org. Management/Community Member Cost: $40 per person (includes lunch & transportation) Space is limited. Only Associates who are sponsors may attend the event. GNAA 11
GNAA Strategic Plan Update GNAA instituted its new strategic plan in January of this year following months of intense work from both GNAA Board Members and GNAA staff. The plan is seen as a living document that sets the course for some very big initiatives in the coming three years, initiatives that will greatly enhance the association and create a dynamic experience for our members. For your review, the four main goals are summarized on this page.
Highlights of other Communications work include continuous improvement to the GNAA website (adding new resources and partner links), creation and distribution of member experience videos (the GNAA Go-Getter informational video) and the newly enhanced online version of our monthly publication News & Events.
At the end of each quarter the staff and certain members of the Board get together to review what was set to be accomplished in the previous quarter, successes or challenges that came up and what is set to be achieved in the coming quarter. What follows is the update following our second quarter review.
As the Education Committee and staff looked to plan our 2018 educational events, they did so with the education goal in mind. GNAA continues to seek new course topics and new ways to teach them, whether it is in person at our office, off-site at a new venue or online. In the second quarter we rolled out our online relationship with Visto and that course catalog can be found by visiting gnaa.org.
Goal # 1 – Communications The main focus of the second quarter for the communications goal was to put together a request for proposal (RFP) to go to various public relations firms in order to find a potential PR partner for GNAA. While we already have a lobbyist who works on our behalf to keep track of legislation that may come up in Nashville or the state that will affect the multifamily industry, there are other times that it may be beneficial to have a PR firm that helps GNAA put our industry in the most positive light possible. Affordable housing and our industry is an example of an ongoing public discussion that we could all use some pointers on explaining to the best of our ability. The second quarter goal was to develop the RFP and send out to the potential firms. That was completed and responses from interested partners were due July 31. The next step is for the proposals to be vetted by the staff and Board with a potential partner chosen in September.
Goal #2 – Education
The plan also called for an expansion of our onsite educational area to fit more members in a class. The planning for that expansion is now complete and work should be finished in the middle of the fourth quarter. Finally, the team has also fulfilled one of the requirements to reach out to our members to see what classes they would like to see in 2018. Look for those changes soon when we unveil our 2018 Education Calendar!
Goal #3 – Membership The Membership Committee achieved their main objectives in the second quarter. The biggest item was the completion of the Go-Getter informational video. Feedback prior to the video was that there are a number of members who were not familiar with the program, which rewards referral money to current members who get companies to join our association. This video is posted continued
12 GNAA
on the GNAA YouTube site and has been included in our online version of News & Events.
GOAL #1 Communications To become the leader in industry communication in both relevance and technology to maximize our influence. GOAL #2 Education To provide members with gold-standard educational opportunities, enhancing their membership value and enabling them to achieve their full potential in the industry. GOAL #3 Membership To engage members in benefits of membership and build loyalty to the GNAA. GOAL #4 Government Affairs To expand wide-ranging legislative advocacy and PAC awareness.
Membership also successfully created, distributed and collected the results from a member survey that went out to all GNAA members. This was to gauge our members’ experience and what we, as an association, can do better for all members. Those results will guide the membership efforts for the next 12 months. Look for an Ambassador when you attend your next GNAA meeting! The last item from the second quarter was to rejuvenate the GNAA Ambassador Program. Ambassadors are cheerleaders for the organization and have special name tags at events so people know who to go to with questions or suggestions. New members have already noticed these folks at our General Membership meetings and have given them a thumbs-up.
Goal #4 – Legislative
The Legislative Committee’s main focus in the second quarter was to expand the reach of GNAA within the Nashville Metropolitan area, through strategic relationships and partnerships that are highlighted on our website at gnaa.org. The goal is also to continuously monitor governmental activities throughout the year, as issues affecting multifamily can arise at any time. Remember that an important issue for any GNAA member is the support of our PAC program. We are happy to say that GNAA exceeded our Fair Share goal this year! This wraps up the second quarter review. Look for our third quarter update sometime in late November or early December. Hope your company has great third quarter results as well!
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GNAA 13
Trade Show - United We Stand
Real Floors
Sherwin Williams
2018 Trade Show Ribbon Cutting
Landscape Workshop
T
ServPro
L.I.C.R.A.-Nashville
W
ForRent.com
Thank You To Our 2018 Sponsors!
JRC, Inc.
Restoring Nashville’s Multifamily One Community
The Liberty Group
CORT
R3 Contractors
Windsor Redevelopment Corporation
Apartments.com
Bug Solutions
Law Office of Jennifer McCoy
Wright Construction
Law Office of Hall & Associates
Ace Exterminating
Bradshaw’s Landscape & Maintenance
Window City
Lewis Letterworks
y at a Time
Contractors, Inc.
BG MultiFamily
Summit Property Restoration
655 N. Main Street • Goodlettsville, TN 37072 Phone: 615.873.4631 • Fax: 615.873.4634 ryan@summitpr.net
Three Factors That Influence Apartment Turnover Renter turnover is inevitable. Unless rents are absurdly cheap, people are going to come and go. It’s the nature of the multifamily industry.
But what does the turnover ratio tell us? Turnover is a measure that defines whether a resident chooses to renew their lease or to move out. The terms “turnover” and “retention,” while opposing concepts, are often used interchangeably. Low resident retention indicates high turnover, and vice versa. All other things equal, the rent roll of an asset with high turnover will churn more often. But that’s not necessarily a bad thing. Costconscious operators argue that resident turnover should be minimized whenever possible. After all, vacant, unleased units are a deadweight loss on the rent roll. Meanwhile, revenue-focused managers argue that aggressive rent growth is best achieved through strategic and efficient turnover. The goal here is to push rents hard enough but still avoid a mass exodus by staggering expirations and maintaining sustainable capacity. Nationally, renter turnover has historically hovered around 50%. And while that has evolved over time, it remains fairly predictable that roughly one-half of all apartment residents will choose to renew their leases, while the other half will move out.
Why does the resident retention rate matter? It can serve as a meaningful gauge for an investment manager to use in conjunction with his or her bigger operational picture. Line items related to turn costs are
some of the primary contributors to operating expenses. Move-outs don’t just add to vacancy loss. They also increase marketing, maintenance and utilities costs. The likelihood of a renewal should not be used in isolation, but rather should help mold the mosaic theory of an asset’s relative performance. Factors such as single-family prices, government subsidization, crime rate, walkability, amenities, customer service and cleanliness, among others, influence a resident’s likelihood of renewal. But these are not strong predictors at the market level. Our research shows what does and does not correlate with resident turnover. We ranked the top 50 metros in terms of their renewal conversion rate in the year-ending June 2017. The top 10 and bottom 10 were grouped together to visualize how they relate to other indicators.
Which factors influence resident retention? The first data point, employment growth, tends to be a strong predictor of resident retention. Intuitively this makes sense. People want to live near where they work. And areas with robust employment opportunities see a higher degree of mobility. In fact, over the past two years, markets reporting the lowest resident retention averaged cumulative net job growth of nearly 6%. On the flip side, continued
16 GNAA
turnover tends to be less prominent in metros with fewer employment opportunities. High retention markets averaged about 1.7% net employment growth over the last two years. Residents in these markets tend to stay put longer. Another measurement that correlates with the resident retention rate is median age. Simply put, mobility tends to decrease with age. This makes sense intuitively. High turnover markets have an inherently younger renter base and higher degree of mobility. The transient life stage of younger people make them less likely to have children and more likely to switch jobs. Renter mobility is clearly evident when looking at the metros’ median age. Cities with the highest retention also tended to have an older median age than those where residents were likely to move out. In fact, 5 of the 10 low-turnover metros reported median ages of 40 years or higher. Meanwhile, none of the cities with high turnover reported a median age above 38. The one exception was Tampa, which has one of the highest median ages nationally (43 years old). On the flip side, Salt Lake City was another outlier, reporting one of the youngest median ages in the country at 29.6 years. The final angle in the retention triad is supply growth. New apartment supply growth tends to correlate highly with a market’s level of renter turnover. Conceptually, it makes sense. As new apartments open up, renters have more choices of places to live. This creates a more competitive leasing environment. Many of the highturnover markets have also been development leaders since the current cycle began in 2010. This inverse relationship between retention and development is especially pronounced when looking at submarkets where a bulk of the new supply in those high-development metros is being delivered. In fact, Charlotte’s Uptown/South End, Far Northwest San Antonio and Downtown Denver have all experienced some of the strongest inventory growth nationally. Combined, these three submarkets recorded resident retention of just 41% during the past year. That means only about 4 of 10 residents in those submarkets renewed their lease upon expiration. By comparison, the average retention rate is 60% or higher in low-development markets overall. continued
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Which factors do not correlate with turnover? While the primary indicators are interesting, it’s also insightful to see what does not correlate with renewal conversion. Some of the more obvious are median household income and income growth, which can vary wildly by market Employment independent of growth tends to be how long a renter might stay. Income a strong predictor levels are primarily a function of other of resident factors – like singleretention. Another family prices, housing demand, measurement that employment correlates with the opportunities, cost of living and the resident retention tax environment – which median rate is median age. age and job growth The final angle in don’t directly capture. Resident the retention triad turnover is an effect, is supply growth. not the cause, of a market’s underlying demographic and economic drivers. Income levels and income growth were all over the board for both groups, indicating no correlation. Simply stated, the cost of living has virtually no statistical relationship to the likelihood of renewal.
Rent growth, also, did not correlate strongly with renter retention. While the average rent growth in the highturnover markets averaged 110 basis points greater (4.4% vs. 3.3%), the metro-level results were divergent. San Antonio, for example, consistently reports the highest resident turnover nationally. However, it also recorded one of the lowest annual rent growth figures (2.1%), primarily a result of a supply-induced slowdown. It had the second highest annual inventory growth rate most recently, behind Charlotte. Conversely, San Diego and Phoenix, which also reported very high turnover, recorded annual rent growth two to 2.5 times higher than the Alamo City metro. The same juxtaposed trend is also seen in low-turnover markets like Cleveland (0.5%) and Minneapolis (4.9%). Simply put, rent growth levels tend to have a lot of variability and don’t correlate with the level of renter turnover. As stated earlier, resident turnover will significantly impact gross potential revenue. Turn costs carry some of the most expensive operating expenses. But the goal is not 100% resident retention. The ideal balance is offering exceptional renter value while simultaneously testing the market with rent increases using a foundation of robust, granular data. It’s important for investment managers to understand market-level economic indicators that drive performance at the asset level. Leveraging relevant market data can add tremendous insight into a manager’s operational decisions, regardless of whether the asset is in high-turnover Denver or high-retention Chicago. And resident turnover, while not a primary indicator, can be a useful gauge for operators who want to target an anticipated vacancy loss while simultaneously pushing revenue growth.
GNAA is excited to announce that Ginny Johnson will be moving into the Director of Education and Events position recently vacated by Daniel’s departure. Ginny will capitalize on her almost three years of GNAA experience, along with a true dedication to the educational programs we provide, to bring some new energy to the position. Please join us in congratulating her and wishing her great success in this role!
18 GNAA
Invest in your career!
September 18-22, 2017
8:00 am - 5:00 pm
GNAA Education & Training Room
Instructor:
Doug Chasick, CPM®, CAPS,
CAS, Adv. RAM, CLP, SLE, CDEI, Lead Instructor NAAEI Faculty
Cost: $899/person GNAA Policy: Payment must be made by course date. Absolutely no refunds will be issued. If for any reason you cannot attend the course, you or your company may send someone in your place.
SPACE IS LIMITED! SIGN UP TODAY. Fax to GNAA at (615) 365-3571, email to danielsircy@gnaa.org or register online at gnaa.org. Name(s): _________________________________________________________________________________________________________________ Email:______________________________________________________________ Phone: _______________________________________________ Property/Company: ______________________________________________________________________________________________________ Authorized by: ____________________________________________________________________________________________________________ Date: __________________________________ Bill Account $______________ Payment enclosed $ __________________________________
Thank You 2017 Education Sponsors!
Elmington Property Management • Ferguson Facilities Supply • Langley & Taylor Pool Corporation Law Office of Hall & Associates • L.I.C.R.A - Nashville • Lighthouse Property Management Lincoln Property Company • RentDebt Automated Collections • Sherwin Williams • Valet Waste Volunteer Properties • Wheeler, Inc. Two International Plaza, Suite 201, Nashville, TN 37217 • P: 615.365.3047
20 GNAA
July General Membership Meeting
September’s GNAA
Networking Opportunities TAA Business Exchange
Kitty, CLK; Michael, Cumberland on Church; Andrew, Schatten Properties; Crystal, S&S Property Management
September 7, 2017 Starts at 6:00pm
Ferguson Showroom
3201-B Powell Ave Nashville, TN 37204
Thank you Title Sponsors Ferguson Facilities Supply and Summit Property Restoration!
Giovanna, Cedars at Elm Hill; Kitty, CLK; Mindy, The Grove
Jason & Monica, Vita, June’s Featured Management Company
Managers Luncheon September 13, 2017 GNAA Offices @ 12pm
Leadership 101 Speaker: Dr. Jason Brooks
Thank you to our sponsors!
Welcome GNAA New Members!
A-1 Concrete Leveling Bouvier Insurance • Hiram Group Pet & Playground Products Reliable Roofing • True Friends Moving
Maintenance Luncheon September 20, 2017 Starts at Noon
Hermitage House Smorgasbord
Cash is king for our GNAA Go-Getters!
3131 Lebanon Pike Nashville, Tennessee 37217
The Mold Chain Reaction: Fire, Water then Mold! Speakers: Kelly Kennedy, BMS CAT, Inc.
Thank you to our sponsors!
A-1 Concrete Leveling • Baker Roofing BMS CAT, Inc. • Reliable Roofing Team Air RAM Partners, May’s Featured Management Company
GNAA 21
Thank you to our banquet sponsors! Diamond Sponsor:
Summit Property Restoration, LLC
Platinum Sponsor:
L.I.C.R.A. - Nashville
Gold Sponsors: AT&T Comcast CSC ServiceWorks Volunteer Properties Windsor Redevelopment Corporation
Favor Sponsor:
Law Office of Hall & Associates
Photo Booth Sponsor:
5:00 p.m. Reception 6:00 p.m. Banquet
American Painting & Renovations
ORDER YOUR TABLES AND TICKETS FOR THE
ON SATURDAY, NOVEMBER 18th!
Register for your table or individual tickets online at www.gnaa.org!
Silver Tables:
Want to stay at the Omni?
Black Tie Optional
2017 GNAA AWARDS & INSTALLATION BANQUET
Preferential reserved table placement 12 tickets/seats: $1,300 Individual Tickets: $100
22 GNAA
Guests wishing to reserve a room at the Omni Hotel should visit
www.omnihotels.com/hotels/ nashville/meetings/ greater-nashville-apartment-association.
Dear Greater Nashville Apartment Association Members, Thank you for the opportunity to serve and help grow the Greater Nashville Apartment Association for the past 27 years. This association has been my passion and I appreciate all the great experiences I have had with the GNAA, starting in an entry level position and concluding with my current position as President. The GNAA has experienced phenomenal growth under my leadership, and I want the association to continue to grow and prosper. The time has come for me to start thinking about beginning a new phase of my life to spend more time with my husband, children and beautiful grandchildren. I have set a retirement date of July 31, 2018. During the next 12 months I am committed to assisting the Board of Directors in finding my successor and making the transition as smooth as possible. Thank you most graciously for this amazing ride. I will always cherish the loving support and lifelong friendships from each of you. Kindest regards, Diane Carter President, Greater Nashville Apartment Association The GNAA Board of Directors has put together a Committee to develop a succession plan for Diane’s retirement. Please send any inquiries to Scott Meert, GNAA Director of Communications”
Maximize Your Membership! Stay Connected.
Get to know other members and maximize your involvement in GNAA.
GNAA’s Membership Connection
Wednesday, October 4 • Lunch starts 11:30 • Register online at gnaa.org! GNAA 23
SERVICES PROVIDED H Balcony/Patio Repair & Replacement H Carport & Garage Construction/Remodel H Fencing: Wood, Aluminum & Iron H Gutter & Downspout Installation H Interior Renovation H Iron Work & Welding Repair H Outdoor Kitchen Construction H Painting: Exterior & Interior H Power Washing H Roofing H Siding: Wood, Vinyl, Stone & Fiber Cement H Stairwell Repair & Installation H Wood Replacement H Window, Screen & Door Replacement
2007, 2008, 2009
1325 Satellite Boulevard, Suite 101 • Suwanee, Georgia 30024 770.995.8787 • 888.522.9288 (Toll Free) • 770.995.8881 (fax) Sidney H. Theus, CEO (12 year resident)
Visit us at: www.amerapaint.com
October 24-27, 2017 November 7-10, 2017
8:00 am - 4:30 pm 8:00 am - 4:30 pm
Must attend both sessions • GNAA Education & Training Room
Cost: $849/person GNAA Policy: Payment must be made by course date. Absolutely no refunds will be issued. If for any reason you cannot attend the course, you or your company may send someone in your place.
SPACE IS LIMITED! SIGN UP TODAY. Fax to GNAA at (615) 365-3571, email to danielsircy@gnaa.org or register online at gnaa.org. Name(s): _________________________________________________________________________________________________________________ Email:______________________________________________________________ Phone: _______________________________________________ Property/Company: ______________________________________________________________________________________________________ Authorized by: ____________________________________________________________________________________________________________ Date: __________________________________ Bill Account $______________ Payment enclosed $ __________________________________
Thank You 2017 Education Sponsors!
Elmington Property Management • Ferguson Facilities Supply • Langley & Taylor Pool Corporation Law Office of Hall & Associates • L.I.C.R.A - Nashville • Lighthouse Property Management Lincoln Property Company • RentDebt Automated Collections Sherwin Williams • Valet Waste Volunteer Properties • Wheeler, Inc. Two International Plaza, Suite 201, Nashville, TN 37217 • P: 615.365.3047
GNAA 25
Summer Mixer Highlights
Summit Property Restoration
Alberto, Real Floors; Lori, Brookside; Jack, Affiliated Creditors; Maria, Lenox Village; Lacey, CORT; Connor, Real Floors; Lauralee, The Monroe
Melanie, Vintage at the Avenue; Bret, Crescent Music Row; Lauralee, The Monroe
Enjoying the Summer Mixer!
Enjoying the Summer Mixer!
Tracy, Verse on Bell; Diana, HND Management; Erick, Verse on Bell
Enjoying the Summer Mixer!
ICU Security
Brigitte & Rick
Mark & DJ, The Liberty Group
Bobbi, GNAA; Carlton, Maintenance Supply Headquarters
Enjoying the Summer Mixer!
GNAA 2017 Summer Nights Mixer
26 GNAA
Proudly Serving the USA!
Serving The Multi-Family Industry Nationwide
1-866-204-8734 With a strong sense of urgency while catering to your needs, Windsor Redevelopment is committed to helping you succeed.
Specializing in all Aspects of Construction on Multifamily/Commercial Properties • Complete Interior and Exterior Property Rehabs • Water Intrusion Specialist • Disaster Relief • 24 Hour Emergency Service
ONE CALL DOES IT ALL!
Take your property to a whole new level.
PRSRT STD U.S. Postage PAID Nashville, TN Permit No. 380
Upgrade your property with XFINITY and give your residents the best in entertainment. XFINITY X1
XFINITY TV
XFINITY Internet
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XFINITY Home
An interactive TV experience.
Movie night, every night.
Think fast. Really fast.
Connecting to what matters.
Connected. Protected. Home.
Call 1-800-XFINITY today!
Restrictions apply. Limited to new or existing residential customers. XFINITY service not available in all areas. TV and Internet limited to a single outlet. May not be combined with other offers. X1: X1 not available in all areas. Requires subscription to qualifying Double or Triple Play package. TV: Limited Basic Service subscription required to receive other levels of service. On Demand selections are subject to charge indicated at time of purchase. May vary by market. Not all programming available in all areas. Access to online and On Demand programming is limited to programming to which you subscribe. Internet: Actual speeds vary and are not guaranteed. XFINITY WiFi is included for XFINITY Internet Performance tier and above only. Requires compatible WiFi-enabled laptop or mobile device. Not available in all areas. Voice: Service (including 911/emergency services) may not function after an extended power outage. Unlimited Talk & Text Requires download of the XFINITY Connect app. Standard data charges may apply. Check with your carrier. Home: Requires subscription to compatible high-speed Internet service. Visit xfinity.com/HomeSupport for more details. License #s: AL: 001484, 001504 Alarm company operators are licensed and regulated by the Alabama Electronic Security Board of Licensure, 7956 Vaughn Road, PMB 392 Montgomery, AL 36116, Phone (334) 264-9388, Fax (334) 264-9332; AR: 12030; AZ: ROC 280515, BTR 18287-0; CA: CSLB 974291, ACO 7118 licensed and regulated by the Bureau of Security and Investigative Services, Department of Consumer Affairs, Sacramento, CA, 95814; CT: 1040196, ELC 0189754-C5; DE: FAL-0299, FAC-0293, SSPS 11-123; FL: EF0000921, EF20001002, EF0001095; GA: LVU406303, LVU406264, LVU406190; LVU406354; IL: PACA 127-001503; LA: F1691; MA: SS-001968; MD: 107-1776, Baltimore County: RK9552, Howard County: ER00990, Washington County: EL-R-0218, Harford County: 00005321, Calvert County: L0188, Prince George’s County: 13958-2014-0; ME: LM50017039; MI: 3601206217; MN: TS674412; MS: 15018010; NC: 2335-CSA; NJ: 34BF00047700; NM: 373379; NY: licensed by the N.Y.S. Department of State 12000305421, Putnam County: L00812; OH: 53-89-1732; OR: CCB 192945 All electrical work is performed by a licensed subcontractor; SC: SCBA-13497, SCFA-13440; TN: ACL 1597, ACL 1604; TX: B-16922,-02571, ACR-1672104,-1818 We are licensed by the Texas Department of Public Safety Private Security Board whose address is: P.O. Box 4087, Austin, TX 78773, (512) 424-7710; UT: 8226921-6501; WA: COMCABS892DS; VT: ES-02366; VA: 2705145289, DCJS 11-7361; WASHINGTON, DC: ECS 902687, BBL 60251200009; WV: WV049211. Valid 2/12/16. See www.xfinity.com/homesecurity for current list. Call for restrictions and complete details, or visit xfinity.com. © 2016 Comcast. All rights reserved.