metro rental housing journal february 2015

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WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC PORTLAND/VANCOUVER Published in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association February 2015 Rental Housing Journal Metro 2. Instant Tenant Screening Reports & FCRA Accuracy Requirement 3. Afraid to Admit that You Don’t Understand Social Media? 5. 5 Basic Fundamentals For Property Managers and Landlords 6. RHA Oregon Looking Forward to a New Year! 8. Good Client Relationships Focus on the Basics! 9. Assistance Animals 101 11. 4 Tips to Survive the Next Stock Market Crash 14. Dirty Little Secrets of Family Business 16. Secret Shopper 17. Your Voice Carries the Words of 10,000 Leases! Advertise in Rental Housing Journal Metro Circulated to over 6,000 Apartment owners, On-site, and Maintenance personnel monthly. Call 503-221-1260 for more info. By Cliff Hockley, President Bluestone & Hockley Real Estate Services R esidential landlords are faced with many challenges. At the top of the list is making sure that their property is well taken care of and complies with the essential services conditions. This has become an imperative as more cities and counties require licensing and hire rental unit inspectors to keep land- lords compliant. Additionally, ten- ant advocates are working to tighten down the habitability laws. So what are essential services? In Oregon, according to ORS 90.320, residential landlords must maintain tenant spaces in a habitable condition during the term of a rental agreement or lease. A dwelling unit is considered uninhabitable if: 1. The roof leaks and/or if the dwelling is not effectively pro- tected from the weather. For example, a window does not close properly, or is broken. 2. The plumbing facilities are not functioning properly, for example: I t appears that real estate invest- ment has headed south for the winter, this according to year- end data compiled by Local Market Monitor, the national real estate fore- caster, and HomeVestors of America (the "We Buy Ugly Houses"® peo- ple) with Texas, North Carolina and Florida ending 2014 as sure bets for single-family investment property markets. "The real estate markets that made the top 20 list for investing were cho- sen based on population growth and it's near cousin, job growth - both conditions ideal for investing in sin- gle family homes," said Ingo Winzer, president and founder of Local Market Monitor. "In all of the top 20 markets, the populations increased 10 Things That Make the Difference Between Habitable and Uninhabitable Dwelling ...continued on page 4 Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007 CHANGE SERVICE REQUESTED PRSRT STD US Postage PAID Portland, OR Permit #5460 A Dozen States Dominate Top Year-End Real Estate Markets By Denise M. Holliday & Allyssa B. Birnley, Hull, Holliday & Holliday, PLC W hether you have a doubt on whether or not an ac- tion qualifies as an imme- diate, or if your situation qualifies as a fair housing issue, etc., Attorneys Denise M. Holliday & Allyssa B. Birnley of Hull, Holliday & Holliday, PLC agree that the best course of action when in doubt is “call your attorney”. Rental Housing Journal asked Attorney Holliday & Birnley: As an Arizona landlord tenant attorney, if you were to give three pieces of advice to landlords and property managers, what would they be? Attorney Denise M. Holliday advises: 1. Make sure you keep up-to-date on the laws. Most lawsuits arise out of misunderstandings, not intentional acts. 2. Use a well-respected and stan- dardized lease, forms and property management agree- ment. These have been modified through the years to help keep you out of trouble and clarify everyone’s obligations and rights. 3. When in doubt, pick up the phone and call a lawyer. Those few moments can save you thou- sands of dollars. ...continued on page 7 ...continued on page 3

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Metro Rental Housing Journal is published monthly for apartment owners, real estate investors, property managers and other multifamily and real estate professionals in the Portland, Oregon Metro area. RHJ is the business journal for the multihousing and residential property management industry.

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Page 1: Metro Rental Housing Journal February 2015

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC PORTLAND/VANCOUVERPublished in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association

February 2015Rental Housing Journal Metro

2. Instant Tenant Screening Reports & FCRA Accuracy Requirement 3. Afraid to Admit that You Don’t Understand Social Media?5. 5 Basic Fundamentals For Property Managers and Landlords6. RHA Oregon Looking Forward to a New Year!8. Good Client Relationships Focus on the Basics!

9. Assistance Animals 10111. 4 Tips to Survive the Next Stock Market Crash14. Dirty Little Secrets of Family Business16. Secret Shopper17. Your Voice Carries the Words of 10,000 Leases!

Advertise in Rental Housing Journal MetroCirculated to over 6,000 Apartment owners, On-site, and

Maintenance personnel monthly.

Call 503-221-1260 for more info.

By Cliff Hockley, PresidentBluestone & Hockley Real Estate Services

Residential landlords are faced with many challenges. At the top of the list is making sure

that their property is well taken care of and complies with the essential services conditions. This has become an imperative as more cities and

counties require licensing and hire rental unit inspectors to keep land-lords compliant. Additionally, ten-ant advocates are working to tighten down the habitability laws.

So what are essential services?In Oregon, according to ORS

90.320, residential landlords must maintain tenant spaces in a habitable condition during the term of a rental

agreement or lease. A dwelling unit is considered uninhabitable if:

1. The roof leaks and/or if the dwelling is not effectively pro-tected from the weather. For example, a window does not close properly, or is broken.

2. The plumbing facilities are not functioning properly, for example:

It appears that real estate invest-ment has headed south for the winter, this according to year-

end data compiled by Local Market Monitor, the national real estate fore-caster, and HomeVestors of America (the "We Buy Ugly Houses"® peo-ple) with Texas, North Carolina and Florida ending 2014 as sure bets for single-family investment property markets.

"The real estate markets that made the top 20 list for investing were cho-sen based on population growth and it's near cousin, job growth - both conditions ideal for investing in sin-gle family homes," said Ingo Winzer, president and founder of Local Market Monitor. "In all of the top 20 markets, the populations increased

10 Things That Make the Difference Between Habitable and

Uninhabitable Dwelling

...continued on page 4

Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007

CHANGE SERVICE REQUESTED

PRSRT STDUS Postage

PAIDPortland, OR Permit #5460

A Dozen States Dominate Top Year-End Real Estate Markets

By Denise M. Holliday &Allyssa B. Birnley,Hull, Holliday & Holliday, PLC

Whether you have a doubt on whether or not an ac-tion qualifies as an imme-

diate, or if your situation qualifies as a fair housing issue, etc., Attorneys Denise M. Holliday & Allyssa B. Birnley of Hull, Holliday & Holliday, PLC agree that the best course of action when in doubt is “call your attorney”. Rental Housing Journal asked Attorney Holliday & Birnley:

As an Arizona landlord tenant attorney, if you were to give three pieces of advice to landlords and property managers, what would they be?

Attorney Denise M. Holliday advises:

1. Make sure you keep up-to-date on the laws. Most lawsuits arise out of misunderstandings, not intentional acts.

2. Use a well-respected and stan-dardized lease, forms and property management agree-ment. These have been modified through the years to help keep you out of trouble and clarify everyone’s obligations and rights.

3. When in doubt, pick up the phone and call a lawyer. Those few moments can save you thou-sands of dollars.

...continued on page 7...continued on page 3

Page 2: Metro Rental Housing Journal February 2015

2 Rental Housing Journal Metro • February 2015

RENTAL HOUSING JOURNAL METRO

Tenant screening reports typically include a consumer credit report from one of

the three major credit bureaus, a civil (eviction) records search and a criminal records search. More com-prehensive tenant screening reports may include employment verifica-tions, rental references and a recom-mendation based on the landlord's rental criteria.

Tenant screening companies are specialized "Consumer Reporting Agencies" (CRA's) - as defined (and regulated) by the Fair Credit Reporting Act [15 U.S.C. § 1681e] - commonly referred to as the FCRA.

Section 607(b) of the FCRA requires that...

"Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accu-

racy of the information concerning the individual about whom the report relates."

The Consumer Financial Protection Bureau is tasked with enforcement of the FCRA. Much of the focus is on accuracy, of course, since the CFPB recognizes (as Congress did when crafting the FCRA) that the banking system and, arguably, the economy "...is depen-dent upon fair and accurate credit reporting".

The three major credit bureaus have taken considerable fire from regulators (the Federal Trade Commission and the CFPB) as well as the media (60 Minutes - for exam-ple) - regarding the accuracy of con-sumer credit reports and the han-dling of disputes. Here is an excerpt from a previous article on the sub-ject:

"The anecdotes are compelling. Our hearts go out to those whose credit is negatively impacted as a result of identity theft or a mistake on the part of the creditor (or Furnisher as defined by the Fair Credit Reporting Act). But what is the true scope of the problem - what is the error rate and extent to which these errors negatively impact the cost and availability of consumer credit?

The FTC issued its fifth interim Report to Congress regarding credit report accuracy in December 2012 as required by the FACT Act. The study sampling was 1,001 consum-ers and 2,968 reports (roughly three per consumer). The study found that 6.6% of reports examined con-tained errors that when corrected resulted in a score increase - but only 2% of those had a score increase of 25

points or more. Only 2.2% of reports examined had credit score increases sufficient to move them to a lower credit risk classification - reduce their borrowing costs."

So it might be argued that 98% of credit scores reflect the appropriate risk classification - which is not good enough, of course, if you are one of the 2%. We can and should try to do better, but the data does put the problem (and the likelihood of fur-ther improvements) in perspective.

A much bigger issue in our view - one that has recently gotten the attention of the CFPB - is the accu-racy of non-credit (notably public records) data. The CFPB recently settled claims with two CRA's - for returning erroneous criminal find-ings (false positives) which nega-tively impacted job seekers. The employers were targeted as well - for failing to follow the pre and post adverse action notification require-ment - which, had they been fol-lowed, may have mitigated the dam-age.

The problem is the lack of reliable personal identifiers in the public record - forcing us to search on name alone in the case of civil (or eviction) records - name and data-of-birth in the case of criminal records. The problem is most acute, obviously, when dealing with common names. False positives have been (and con-tinue to be) a significant problem as a result.

While much has been written regarding the impact of inaccuracy on consumers, very little has been written regarding the impact of false positives on landlords and employ-ers. Yet erroneous public records hits can be quite damaging t - caus-ing them to deny residency or employment to otherwise well quali-fied applicants. Equally important, of course, is the potential for under-reporting - which can have a decid-edly negative impact on the business or a property.

Under-reporting is a bi-product of over-reliance on instant (database) public records searches. Don't get me wrong. Database products are quite useful - in the hands of a skilled investigator - who has the time, tools and skills necessary to avoid underreporting and false posi-tives. It is a sole reliance upon data-base solutions that is problematic - due to a lack of consistency and availability of court records and the aforementioned lack of personal identifiers. Exclusive reliance on database products - without the attention of a skilled investigator -

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Page 3: Metro Rental Housing Journal February 2015

Rental Housing Journal Metro • February 2015 3

RENTAL HOUSING JOURNAL METRO

Q & A...continued from front page

Attorney Allyssa B. Birnley recommends:

1. Document everything! Keep a good ledger, take pictures, log all conversations with tenants, and put all agreements in writing. A well documented file makes life easier for (and us).

2. Make policies and stick to them. Make sure the staff receives the same training and that there is consistency in enforcing the poli-cies.

3. If you are not sure how to handle a situation, call your attorney before you take action, not after. We are here to help and it is much easier to prevent a potential prob-lem than to have to deal with it later.

By Marsha Friedman

I talk to a lot of business owners and authors who don’t “get” social media. A year or two ago when I’d speak

with them, most were quick to say they didn’t understand it and didn’t need to.

Today what I hear is: “I know I’m supposed to be doing that, so I have a Facebook account.” Or, “Yeah, I’ve got my teenaged nephew taking care of that.”

Unfortunately, simply posting occasional announcements about upcoming sales or telling people why they should use your service or read your book is not social media marketing and it’s not helping you. In fact, if that’s all you’re doing, it could be hurting you.

What’s worse, you’re not taking advantage of what could become the most powerful tool in your market-ing arsenal. Why?

Social media is the world’s big-gest cocktail party and everyone’s there – including your competitors and your potential customers.

I first heard the cocktail party analogy from marketing guru David Meerman Scott, who used it in his best-seller, The New Rules of Marketing & PR, published in 2007. It immediately clarified for me why social media networks are marketing gold.

Imagine walking into a network-ing party at a hotel. People are roam-ing around, engaging with folks they

know and being introduced to those they don’t know. They’re talking about the economy, the weather, the price of milk.

You get into a nice chat with someone and he asks what you do for a living. If it were me, I’d say, “I’ve got a national PR company that specializes in publicity.” The person might say, “Wow, I’ve got a friend interested in that. Let me introduce you!”

The friend may or may not be present at this cocktail party.

But if that same conversation hap-pened on a social network like Facebook, that friend and dozens

more would be so close by. They may actually be “listening” to your con-versation. That’s what makes social media so much more valuable as a marketing tool. You can be exposed to thousands more potential custom-ers than you would through tradi-tional networking channels.

How does that happen? Social media users stay connected by “fol-lowing” one another.

If I’m following you, I can see your conversations. Post something clever and I might share it with my followers, who may also share it with their followers.

Before you know it, you and your

brilliance may be exposed to hun-dreds of thousands of strangers. Some of them will become your fol-lowers and, voila! You have a grow-ing audience.

But it won’t happen if you don’t have a plan and don’t apply cocktail party rules of etiquette. What works on social media – and what doesn’t – are the same things that work (and don’t) when you’re networking at that hotel conference room party:

Go in with a plan. If you’re going to a party to network, you have goals. Maybe you want to find

Afraid to Admit that You Don’t Understand Social Media?

View Those Sites As A Cocktail Party Where The Rules of Networking Etiquette Apply

Maintenance Fair is back and better than ever! Don’t miss out on this great event!

The 2015 Maintenance Fair show is set to be the best so far. Featuring an exciting Keynote address on PROPERTY SAFETY in addition to TWELVE exceptional classes, this event is not to be missed. Mark your calendar for March 19, 2015! We are also proud to bring back NAA’s Maintenance Mania competition, with 8 challenges including the always popular Motorola Race Car Competition. Join in or just come and support the competitors! Take advantage of Early Bird pricing by registering by February 19, 2015.

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Fair Housing for Maintenance What Your Portfolio Manager Wants from You — Q&A Panel

How to Get the Best from Your Vendor Renovation Project Management — Now vs. Yesterday

Basic Electrical — Multimeters & Basic Troubleshooting Pool & Spa — Safety & Maintenance

Breaking the Information Barrier—How to Transition Info from Vendors Envelope 101

Creating a Property History How to Deal with Contracts Gone Bad

Property Safety Q&A with Dan Estes & Jim Leake How to Schedule Your Time Wisely

*Classes are subject to change.

MAINTENANCE MANIA starts at 1:45pm in Oregon Ballroom (204) Sign up by February 19, 2015 for the discounted price: members $85 | non-members $125 After February 19th: members $100 | non-members $150

Visit www.multifamilynw.org for registration options, call the Multifamily NW office at

503-213-1281 or email us at [email protected]!

...continued on page 10

Page 4: Metro Rental Housing Journal February 2015

4 Rental Housing Journal Metro • February 2015

RENTAL HOUSING JOURNAL METRO

by more than double the national average of one percent."

The top 20 markets for real estate investing are: 1. Austin-Round Rock, TX

2. Houston-Baytown-Sugar Land, TX

3. Raleigh-Cary, NC

4. Nashville-Davidson-Murfreesboro, TN

5. Orlando, FL

6. Boise City-Nampa, ID

7. San Antonio, TX

8. Denver-Aurora, CO

9. Charlotte-Gastonia-Concord, NC

10. North Port-Bradenton-Sarasota, FL

11. Oklahoma City, OK

12. Phoenix-Mesa-Scottsdale, AZ

13. Seattle-Bellevue-Everett, WA

14. Dallas-Plano-Irving, TX

15. Oakland-Fremont-Hayward, CA

16. Fort Worth-Arlington, TX

17. Las Vegas-Paradise, NV

18. Salt Lake City, UT

19. San Jose-Sunnyvale-Santa Clara, CA

20. San Francisco-San Mateo-Redwood City, CA

"Texas has always been a sweet spot for real estate investing. Its economy is strong, and only getting stronger. This is spurring population

and job growth, especially among younger workers looking for work in retail, business and tourism. They are looking to rent, not buy a home," noted David Hicks, HomeVestors co-president.

Along with job growth and popu-lation growth, relatively low home prices is a factor making investments in single-family homes as rental properties a low risk opportunity in some markets. The average home prices in the top 10 markets are under $300,000, although the mar-kets listed among the top 20 range from $166,000 to $844,000.

Despite high home prices, a few California markets made the top 20, including Oakland-Fremont-Hayward (15), San Jose-Sunnyvale-Santa Clara (19) and the San Francisco Bay area (20).

"There is definitely opportunity to strike gold in the California mar-ket for real estate investing. With some notable exceptions, they're growing again - both in jobs and in population - as is clear by double-digit home price increases," explained HomeVestors co-president Ken Channel. "But investors in these markets are likely to see more of their gain come from price apprecia-tion and less from a long-term rental stream, because most of these mar-kets are no longer under-priced."

About the Quarterly Data:The data identifies markets that

will be good rental markets and where home prices are likely to increase at a good rate over the next few years. Criteria include markets where:

• The population has been grow-ing at above-average rates (4% or better) with growth coming from people moving there in search of jobs;

• The current rate of job growth of 2% or better; and

• There is low unemployment, so that new jobs will be filled by people who move there, not by unemployed people who are already there.

Markets are excluded that:

• Have a small population because they don't have stable economies.

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positive impact in each community. In 2013, for the eighth consecutive year, HomeVestors was among the presti-

gious Franchise Business Review's "Top 50 Franchises," a distinction

awarded to franchisors with the highest level of franchisee satisfaction. For more

information, visit www.HomeVestors.com. In 2014 HomeVestors was recog-nized as the 25th fastest growing fran-

chise by Entrepreneur Magazine and number 126 in the Franchise 500 by

Entrepreneur Magazine.

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Year-End Real Estate ...continued from front page

Page 5: Metro Rental Housing Journal February 2015

Rental Housing Journal Metro • February 2015 5

RENTAL HOUSING JOURNAL METRO

Effective January 1, 2015, Shoptalk has been acquired by Jancyn and they will serve your employee evaluation needs. It has been my extreme pleasure to work with all of you over the past 20 years. Yet, it is now time for me to move onto my next great adventure. I am willing to offer leasing training on a limited basis, as an independent consultant. However, I will no longer be involved in secret shopping. For now, your contact at Jancyn will be Vicki Dempsey, VP of Sales & Marketing and a managing owner. You can reach Vicki at: 408-267-2600 ext. 300 or [email protected]. I will be working closely with the Jancyn team as a consultant to help ensure a smooth transition. Thank you for trusting me with your employee evaluations over the years, and now with the transition moving forward!

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Send for your FREE subscription to Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007 • (503) 221-1260 • fax (503) 221-1545

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RHJ METRO FREE SUBSCRIPTION

5 Basic Fundamentals For Property Managers and Landlords

By Will JohnsonPublisher

Interacting with the people who make our industry go is one of the most rewarding and interest-

ing aspects of my job as Publisher of Rental Housing Journal. From the top executives at large manage-ment companies and apartment as-sociation leadership, to on-sites and leasing agents, to independent rental owners and industry suppliers, I’ve gleaned a lot of wonderful and sage advice about how to best run a busi-ness in the rental housing industry. Because of my position as publisher at RHJ, I am given the opportunity to pass much of this information along to others.

While there are certainly com-plexities and nuances to being a property manager or landlord that are unique to this industry, the fun-damentals of the business look a lot like any other business. Whether you’re an executive or a newbie, it’s easy to get distracted with the back-ground noise and circumstances of the daily grind, and it’s always important to remind yourself of the fundamentals.

1. Be OrganizedOrganization and the tools to be

organized and manage your time can be very different depending on your position and the size of your company. If you’re an independent landlord, a datebook and a spread-sheet might be enough to keep your business straight and organized. If you’re part of a larger organization, you probably need a more complex system.

Regardless of what tools you’re using, I suggest using the “Hit By A Bus” test to make sure nothing is slipping through the cracks. That is to ask: “If you were hit by a bus tomorrow, could someone with rea-sonable knowledge of your industry come in and run your business with little issue?”

We all may want to seem irre-placeable in our business, and cer-tainly nobody wants anyone to get hit by a bus, but if your business is organized well enough to pass this test, you are prepared to run your business efficiently yourself.

2. Educate YourselfProperty management is an

industry that requires us to continue to educate ourselves. Some certifica-tions require people to earn continu-ing education credits, but even those of us that aren’t required to take classes need to keep up on current

laws, issues and best practices.Thankfully, there are a lot of great

avenues that folks in the industry can use to keep up. In addition to Rental Housing Journal, there are a number of great publications and websites, both local and national, where you can learn on your own time. But, I am a huge advocate of rental housing and apartment asso-ciations and real estate investor groups and their role in educating the industry through classes and education events. Just about every local area has one or more local groups, but there are a number of great national organizations as well, many of which have local chapters. National Apartment Association, IREM, NARPM and ARPOLA are a few worthwhile national groups.

3. Give Great Customer Service

Sometimes, it’s difficult to remem-ber that our tenants and residents are our customers in the same way that we are customers of the stores where we shop and restaurants where we eat. It can be very easy to forget that their rent payments pay our bills, especially when dealing with the fires and headaches involved in pro-viding homes for people. But, we have to rise above and treat our resi-dents like customers in any other business. In fact, we really need to be going above and beyond – we’re providing the most basic of human needs, after all.

Treat your residents’ concerns

with your own genuine concern. Take their needs seriously, and always fulfill them within reason, landlord – tenant laws and industry best practices. Make sure your resi-dents know that you value you them. Never treat your residents less than you would treat your own friends and family. It seems simple, but when residents have their needs ful-filled and feel valued, they are more likely to renew and pay more rent.

It goes without saying for prop-erty managers that your owners are also customers. It can certainly be difficult to balance the needs and desires of both residents and owners, but a skilled, successful manager will find a way. Your career depends on it.

4. Surround Yourself With Great People

You’re only as good as your peo-ple. How many times have we heard this business cliché? For me, in one form or another, it’s thousands. Yet, only because it’s true.

Great leaders wouldn’t be great without talented and dedicated peo-ple behind them. If you’re an owner or manager, make sure you recruit, hire and retain people that are will-ing and capable to take your busi-ness where you want it to go. Make sure that your employees are both willing and able to perform the tasks you give them and make your com-pany perform to the level you want it to. Don’t skimp.

William MaxwellAssociate

National Multi Housing Group(503) 200-2063

[email protected]

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... continued on page 12

Page 6: Metro Rental Housing Journal February 2015

6 Rental Housing Journal Metro • February 2015

RENTAL HOUSING JOURNAL METRO

President: John Sage • President Elect: Ron Garcia • Past President: Elizabeth Carpenter • Vice President: Robin LashbaughSecretary: Lynne Whitney • Treasurer: Elaine Elsea • Office Manager: Cari Pierce

10520 NE Weidler Portland, OR 97220 (503) 254-4723 • fax (503) 254-4821 [email protected] • www.rhaoregon.org.

John Sage RHAOregon PresidentPresident’s Message:

So how many of us are still working on our New Year’s resolutions? Can I get a show

of hands?!! If you are like most of us your to do list is an ever chang-ing topic. It depends on the weather, time needed to complete, and what may have just hit the rotary oscilla-tor (fan). It is this time of year that I reach for my recent copy of the RHA Oregon Update and start thumbing thru the list of vendors, looking for that trusted affiliate member who is an expert on whatever issue I may

need help with. Be it moss on my roof, a burst water pipe due to cold, that faulty electrical circuit, the wind coming in around the windows that I need to get replaced, or advice from an attorney for the letter that I just got in the mail. Being a property owner sure comes with a lot more hats than I first thought when I got my first property.

I can remember being naive enough to think that I had every-thing handled and knew what I was getting myself into. Then the first

time a major issue happens, it’s like getting sucker punched and going to your knees. It feels like everyone is watching to see how you react. Will you wilt and go into the fetal posi-tion, not knowing what to do or which way to turn? Do you already have all the answers and know exactly how to proceed or do you reach out to a trusted advisor who’s been thru it before and may have some sage advice and years of expe-rience to help you find your way? Believe me, when you first start out you have at one time or another done every one of the things that I just mentioned. I try to always remind myself that there is no reason to “Reinvent the wheel”. Someone has seen it, done it, or heard about it.

Fortunately, issues that I have had with burst pipes, electrical, need for advice from an attorney, and remov-ing moss have all been easily solved with help from these afore men-tioned trusted advisors. With their help I have been able to navigate every situation that has come up.

Navigating these situations is easy by either accessing the RHA

Oregon vendor list, as I mentioned earlier, or by attending RHA classes presented by those in the vendor list with each of them having their own expertise. In February and March RHA has a number of educational classes put on by instructors who are experts in their field including main-tenance turnovers, radon testing, rental forms and how to fill them out, along with classes on updates to the landlord tenant law, top mistakes made by landlords and asset protec-tion. Take a look at page 5 of the Update for a complete list of the upcoming classes, you are sure to find something that will make your job as a rental property owner easier. I sure have.

Since 1927 the Rental Housing Alliance Oregon has set the standard for community participation by landlords providing affordable and quality housing.

Sincerely John Sage, RHA Oregon President

RHA Oregon Looking Forward to a New Year!

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Page 7: Metro Rental Housing Journal February 2015

Rental Housing Journal Metro • February 2015 7

RENTAL HOUSING JOURNAL METRO

10 Things ...continued from front page

a. There is no hot or cold water; both are necessary.

b. There is a lack of running water in one or more plumbing fixtures.

c. The plumbing does not properly connect to sewage disposal systems, or is completely blocked up.

d. There is no safe drinking water, (if safe drinking water is available).

3. The heating fixtures are not sup-plying heat, or are in poor work-ing condition.

4. There is no electricity in the dwelling, or the electrical equip-ment is not functioning properly, or is in poor working order (i.e. an outlet has blown, but is not replaced/repaired, etc.).

5. If any area under control of the landlord, including, but not lim-ited to: the buildings, grounds, or appurtenances at the time of the start of the rental agreement are dirty, unsanitary, cluttered, or have accumulated debris, filth, rubbish, garbage, rodents, or ver-min.

6. In certain areas a dwelling can be considered uninhabitable if garbage receptacles are not provided (except as allowed by local ordinance and/or by written agreement between the landlord and the tenant) or if the provided garbage receptacles are not ser-viced in a timely basis.

7. The floors, walls, ceilings, stair-ways, or railings are in a state of disrepair creating a hazard to ten-ants.

8. Provided systems, or systems required to be provided by the landlord, are not in good repair (i.e. out of order elevator, existing ventilation or air conditioning not working, etc.)

9. The required smoke detectors and/or carbon monoxide detec-tors are not present or function-ing.

10. The dwelling is not secur-able (i.e. broken door locks, or window latches, etc.)

What happens if there is a maintenance problem?

First of all, tenants have a respon-sibility to keep a property in good condition. ORS 90.325 basically says that tenants need to keep their unit clean, test the smoke alarms and car-bon monoxide alarms every 6 months, and not cause intentional damage. When something breaks, tenants need to notify their landlord.

Under ORS 90.360 the landlord has seven (7) days from the actual notice to repair an essential service and thirty (30) days to repair non-essential services.

What can a tenant do if a landlord does not repair / provide essential services?

A tenant should first contact the

landlord and state the problem. They should then follow up with a written notice stating the problem again. If the essential service is not restored within 7 days, the tenant may buy the service or have the repairs done to restore the service (if not more than $300) and deduct the cost from their rent. They may also move somewhere else until the service is restored. The tenant does not have to pay rent while living in substitute housing and may go to court to recover the cost of the substitute housing up to the amount charged on the original rent if necessary (ORS 90.365).

If the landlord fails to supply any essential service and the lack of which poses an imminent and seri-ous threat to tenant’s health, safety or property, the tenant can deliver a written notice to the landlord speci-fying the nature of the breach and warning that this gives them grounds to terminate the rental agreement or lease if the breach is not remedied within 48 hours.

A landlord shall not be consid-ered intentionally or negligently fail-ing to supply an essential service if the landlord:

a. Substantially supplies the essential service, or

b. Makes a reasonable and good faith effort to supply the essential service and the failure is due to conditions beyond the landlord’s control.

Does the Landlord have to pay for a hotel or replacement food if the essential services are not available (i.e. a refrigerator fails and all the food spoils)?

There is nothing in Oregon’s Landlord Tenant Act that requires that. Typically landlords will make decisions that keep tenants living in the home or apartment, and may or may not provide some sort of com-pensation.

Some examples of essential ser-vice responses:

A furious winter storm causes a power outage at a 30 unit apartment property. The transformer blew and a second one, installed by the electric company, fails as well. There are no replacements in the city so a new transformer has to be flown in; in the meantime the apartments have no heat. Tenants decide to leave their homes and move in with friends and relatives. The landlord has no con-trol over this essential service. The on-site manager makes sure to stay in touch with all of the tenants to let them know when the power comes back. The landlord has done all he can to get the electricity back.

The water heater fails for a ten-ant at 8 p.m. on a Saturday night. The landlord contacts a plumber and a new water heater is installed on Sunday.

The tenants in a 2 bedroom 2 bath apartment have a clogged toi-let. The tenants call the landlord at 10 p.m. at night. The landlord decides that the plumber can rooter the toilet the next day since the ten-

ants still have one toilet available.The tenant’s children throw a toy

into the toilet. The tenants live in a three bedroom 1 bath home. They call the landlord for help. Since this is an essential service, he calls the rooter company for service that night. The rooter company confirms that the tenants created the damage. The Landlord’s rental agreement spells out that the tenants need to pay for tenant created damages. The Landlord bills back the tenants for the needed plumbing and repair services.

The refrigerator fails. The tenant calls the landlord. The freezer ice has melted and the water service to the ice maker broke as the tenants pulled out the refrigerator. The kitchen is flooded. The landlord calls both a plumber and an emer-gency contractor to suck up the water and install dehumidifiers. This all occurred within one day. Had the landlord not responded ( because they were vacationing) the tenant could either have had it fixed for a cost up to $300 (which they would then subtract from the rent), or moved out and stayed in an alter-nant space until the landlord replaced the refrigerator and the water repairs were taken care of.

A five year old puts a car into drive and the car runs into the side of an apartment building. The land-lord calls the insurance company and they hire a contractor to repair the wall. The wall is repaired in 10

days, work started on the same day the accident occurred.

Clearly, landlords must respond to the essential service needs of their tenants, but tenants also have the responsibility to keep their homes and apartments in good order and communicate with their landlords when a failure of an essential service occurs. Essential services are just that, services that are critical to the health and well-being of tenants, and healthy tenants pay for these essential services with their rent.

Vis it us at

www.rentalhousingjournal .com

Page 8: Metro Rental Housing Journal February 2015

8 Rental Housing Journal Metro • February 2015

RENTAL HOUSING JOURNAL METRO

16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 503-213-1281, 503-213-1288 Fax www.multifamilynw.orgScott Arena

President, Multifamily Northwest

Good Client Relationships Focus on the Basics!On a global level,

today’s service industries fierce-

ly compete for business around the clock. Property manage-ment is no exception. To attract new business a company must sell and demonstrate what they have to offer. This is ultimately exemplified by the business already in place. Clients de-mand superior levels of service and want to be assured they are receiving the best value for their management dollar. Establishing sound practices is a great start but the essential com-ponent is maintaining consistent de-livery of superior service.

The path to good client relations is successfully navigated with hard-work and steady commitment. Here are a few essential tips for navigating the course:Fiduciary Management:

Make money-spending decisions as if you are managing your own money. Owners expect their manag-ers to seek out the best deals possi-ble. Obtain the best value at the best price. A wise mentor once told me “watch the pennies and the dollars will follow”.

Such a basic principle - time test-ed and true.Communicate regularly:

Keeping an open line of commu-nication is vital. Whether done elec-tronically or verbally can depend on desired convenience, but regular updates and keeping an owner apprised of important issues is key

to maintaining trust and credibility. No one likes costly surprises. This also goes a long way in building solid trust relationships.Return the call:

When an owner asks for a return call, text or email response – DO IT! Even if you will need to contact them later, at least acknowledge the call or message as quickly as possible. No one appreciates being ignored. Especially when paying for services.

Just think of the “automated phone menu of endless options” when trying to contact a human cus-tomer service rep! Frustration never breeds comfort.Know the property:

Regular walks and inspections of a property convey that you are in tune with the structural conditions, interacting at the site level, and familiar with staffing and resident matters. It’s impossible to effectively manage property if you are behind a desk 100% of your time. Smart phones and tablets are convenient, but are no substitute for walking and inspecting sites.Manage revenues:

Consistently monitor rents, rate trends and understand your market. Train site managers to do the same. In our current robust rental market it is essential to maximize rents and take full advantage of favorable sup-ply-demand conditions. Make cer-tain that leasing staff understands the importance of lease renewal increases and pushing new market

rent levels at turnover. Be a trendsetter:

Seek out new ways to save on expenses, generate revenues, and ultimately add value to your prop-erty. Utility costs, for example, have increased dramatically in recent years. Implementation of a utility bill-back system can result in signifi-cant cost recovery, as well as pro-mote conservation efforts. Explore energy-rebate programs available to multi-family communities. Upgrades in lighting, plumbing, windows, HVAC can save significant dollars on a long-term basis. Honesty – always the best policy:

Nothing strengthens a relation-ship more than being truthful, dependable and trustworthy. When a problem arises, be honest with your supervisor or owner. And noti-fy promptly. Do not hesitate. Let them know that a new roof is need-ed, parking lot needs an overlay, or

the siding must be replaced. Most investors in multi-family real estate already understand requirements to maintain a property. Needs are to be expected. They are looking to you for cost-effective answers. Notify of a problem or need, but ALWAYS pro-vide well thought-out and effective solutions. Build credibility and instill confi-dence through your actions.

Seek that “win-win” partner rela-tionship that benefits all parties. Such efforts significantly help you weather the “ups-and-downs” of business trends and market cycles. Meeting objectives and achieving desired results are the ultimate goals, but always remember… good rela-tionship-management is essential to establishing long-term customer loy-alty.

Multifamily NW’s forms collection has Garage/Storage Rental Agreement for both Oregon and Washington. These are written to accompany the resident’s rental agreement. This form sets the rental term or the garage/storage space, the monthly rental amount, specific security deposit and late fee. There ample room to add lan-guage under special provisions and page two details the terms and conditions that protect the landlord against an array of potential issues.

DATE __________________________________________ PROPERTY NAME / NUMBER __________________________________________________________________________________________________________________________________________________________________

GARAGE UNIT NUMBER _____________________________________________ STORAGE UNIT NUMBER _____________________________________________

UNIT LOCATION ________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

RESIDENT NAME(S) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

UNIT NUMBER ___________________________________ STREET ADDRESS __________________________________________________________________________________________________________________________________________________________________________

CITY _____________________________________________________________________________________________________________________ STATE __________________________________________________ ZIP __________________________________________________________________________

RESIDENT PHONE _________________________________________________________________________________

*Throughout this Agreement the term “storage unit” shall includegarage except where expressly stated to the contrary.

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RESIDENT DATE RESIDENT DATE

_____________________________________________________________________________________ _____________________________ _____________________________________________________________________________________ _____________________________

RESIDENT DATE RESIDENT DATE

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OWNER/AGENT DATE

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DAMAGE OR DEFICIENCIES IN THE STORAGE UNIT* ON COMMENCEMENT DATE:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

SPECIAL PROVISIONS:

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

PAGE 1 OF 2

OREGONRESIDENT GARAGE/STORAGE RENTAL AGREEMENT (USE ONLY FOR RESIDENTS)

RENT FROM _____________________________________ THRU _____________________________________ $__________________________________

SECURITY DEPOSIT $__________________________________

c KEY/CARD DEPOSIT $__________________________________

c REMOTE DEPOSIT $__________________________________

TOTAL DUE AT START OF RENTAL $__________________________________

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______________________________________________ ______________________________________________ _____________________________ ________________ _____________________________________ _____________________________________

______________________________________________ ______________________________________________ _____________________________ ________________ _____________________________________ _____________________________________

______________________________________________ ______________________________________________ _____________________________ ________________ _____________________________________ _____________________________________

______________________________________________ ______________________________________________ _____________________________ ________________ _____________________________________ _____________________________________

______________________________________________ ______________________________________________ _____________________________ ________________ _____________________________________ _____________________________________

c IF CHECKED, GARAGE IS TO BE USED FOR MOTOR VEHICLE PARKING ONLY. NO STORAGE THAT WOULD PREVENT VEHICLEPARKING IS ALLOWED.

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DATE RENTAL TERM BEGINNING:

_____________________________________________________________

MONTHLY RENTAL AMOUNT:

$__________________________________________________

LATE FEE $________________________________________

NSF FEE $35.00 + BANK CHARGES

Resident Garage/Storage Rental Agreement M036 OR & M036 WA

Multifamily NW

Upcoming Educational Opportunities 1/21/2015 CAM Legal Responsibilities

1/29/2015 Safety & OSHA Preparedness

2/2/2015 Oregon Landlord/Tenant Law Part 1

2/4/2015 Emergency Readiness

CAM Risk Management

2/5/2015 Forms & Notices 101

2/6/2015 NALP - Bringing in New Residents: Be Prepared

2/11/2015 CAS Supplier Success

Maintenance Tips, Tricks & Pitfalls (Vancouver, WA)

2/13/2015 It's The Law Lunchtime Series - Marijuana: Smokin' Hot Issues

2/16/2015 Oregon Landlord/Tenant Law Part 2

2/17/2015 CAM Fair Housing

Law & Rule Required Course (LARRC)

Membership Luncheon - An Update from Mayor Charlie Hales

2/19/2015 CAM Human Resources Part 1

2/24/2015 NALP Marketing & Maintaining Your Community

2/25/2015 Basic Electrical for Spanish Speakers

2/26/2015 CAM Human Resources Part 2

ACE Awards | May 21, 2015

ACE Award Nominations FAQ Who gets nominated for an ACE Award? ACE award nominees encompass a wide spectrum of Property Management employees. Companies often nominate at all levels, from on-site leasing staff to Portfolio Managers. The titles may differ across companies but generally ACE nominees are: Leasing Agents, Maintenance Techs, Assistant Managers, Maintenance Supervisors, Managers and Portfolio Managers.

How many nominees are in each category? We do not currently put a cap on the number of nominees in each category. Nominations vary across categories but average about 10-12 per grouping.

Who decides the winner? When ACE nominations are sent to the Multifamily NW office, all specific nominee information is redacted before being sent to the out-of-state judges. The judges make their decision based only on the information provided with no background about the individual or company. There are 3-4 out-of-state judges each year generally Executive Directors of other apartment associations.

Can I, a supplier, nominate someone for an ACE Award? Unfortunately no. Due to the specific information required, entrants can only be nominated by their company. However, if you work with a client that you think deserves a nomination, don’t hesitate to tell their manager!

SAVE THE DATE

Nominations are now open!

Questions? Visit www.multifamilynw.org or call 503-213-1281 for more information.

Nomination forms can be downloaded from our website and completed forms should be sent to [email protected].

Page 9: Metro Rental Housing Journal February 2015

Rental Housing Journal Metro • February 2015 9

RENTAL HOUSING JOURNAL METRO

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

It doesn’t seem to matter how many articles we write, classes we teach, presentations we give,

guidebooks we publish, or videos we make and post, no matter where we are or what we’re doing Fair Housing Council staff always get questions about assistance animals. Some inquiries can get complicated but, to be honest, many of them are the same fundamental questions.

We offer the following article as both an introduction to those the topic may be new to / refresher for those who are somewhat familiar, as well as a reminder on the differences between the Fair Housing Act (FHA) and the Americans with Disabilities Act (ADA) per the Dept. of Housing and Urban Development (HUD).

A relatively recent document issued by HUD clearly affirms stan-dard fair housing advice on the requirements to accommodate assis-tance animals in housing under the FHA, which is quite different than ADA requirements. The 2013 HUD memo., in no uncertain terms, lays out the differences and assures read-ers that changes in the ADA’s defini-tion of “service animals” has abso-

lutely no affect on assistance animals under the FHA.

Following are a few excerpts from the memo.; the full document can be viewed at https://portal.hud.gov/h u d p o r t a l / d o c u m e n t s /huddoc? id=servanimals_ntc f -heo2013-01.pdf. (Emphases below have been added)

This notice explains certain obli-gations of housing providers under the Fair Housing Act (FHAct), Section 504 of the Rehabilitation Act of 1973 (Section 504), and the Americans with Disabilities Act (ADA) with respect to animals that provide assistance to individuals with disabilities.

The Department of Justice's (DOT) amendments to its regulations' for Titles II and III of the ADA limit the definition of "service animal" under the ADA to include only dogs, and further define "service animal" to exclude emotional support animals. This definition, however, does not limit housing providers' obligations to make reasonable accommodations for assistance animals under the FHAct or Section 504.

Persons with disabilities may request a reasonable accommodation for any assistance animal, including an emotional support animal, under both the FHAct and Section 504.

An assistance animal is not a pet. It is an animal that works, provides assistance, or performs tasks for the benefit of a person with a disability, or provides emotional support that alleviates one or more identified symptoms or effects of a person's disability. Assistance animals per-form many disability-related func-tions, including but not limited to, guiding individuals who are blind or have low vision, alerting individuals who are deaf or hard of hearing to sounds, providing protection or res-cue assistance, pulling a wheelchair, fetching items, alerting persons to impending seizures, or providing emotional support to persons with disabilities who have a disability-related need for such support.

For purposes of reasonable accommodation requests, neither the FHAct nor Section 504 requires an assistance animal to be individually trained or certified.

While dogs are the most common type of assistance animal, other ani-mals can also be assistance animals.

Housing providers are to evaluate a request for a reasonable accommo-dation to possess an assistance ani-mal in a dwelling using the general principles applicable to all reason-able accommodation requests. After receiving such a request, the housing

provider must consider the follow-ing:

(1) Does the person seeking to use and live with the animal have a disability — i.e., a physical or mental impairment that substantially limits one or more major life activities?

(2) Does the person making the request have a disability-related need for an assistance animal?

…Where the answers to questions (1) and (2) are "yes," the FHAct and Section 504 require the housing pro-vider to modify or provide an excep-tion to a "no pets" rule or policy to permit a person with a disability to live with and use an assistance animal(s) in all areas of the premises where persons are normally allowed to go, unless doing so would impose an undue financial and administra-tive burden or would fundamentally alter the nature of the housing pro-vider's services. If the answer… is "no," then the… request may be denied. <Requests> may also be denied if:

1. the specific assistance animal in question poses a direct threat to the health or safety of others that cannot be reduced or eliminated by another reasonable accommodation, or

continued on page 15

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Page 10: Metro Rental Housing Journal February 2015

10 Rental Housing Journal Metro • February 2015

RENTAL HOUSING JOURNAL METRO

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prospective clients or get people interested in your upcoming project. You identify your target demograph-ics and learn which influencers will be at the party, such as the local media, politicians and celebrities. On social media, the world’s biggest cocktail party, making the right moves gets a bit more complicated and involves some strategizing. (My company now offers customized strategy plans that can be easily implemented by casual or newbie social media users.)

Don’t stand in the middle of the room saying the same thing over and over. Repeatedly posting the same thing, like “Come in for our big sale tomorrow” or “We won Business of the Year!” is like going to a party and saying the same thing over and over. People will run from you. Instead, engage in conver-sations on a variety of topics. They can be related to your business or book, but in a tangential way. Someone who sells jewelry, for instance, might share a great trick for cleaning rings.

Be genuine and show some personality. At a party, you smile, ask people questions about them-selves, maybe tell some jokes, if that’s your personality and the personality you want your brand to reflect.

People are drawn to people, not things, so let your humanity shine. But don’t try to be something you’re not. Other users will quickly figure it out and you – and your brand – will lose their trust.

Social media is a great way to build awareness of your brand, culti-vate prospective customers and establish yourself as an authority. It has tremendous value for anyone with marketing needs, and it’s really not intimidating once you jump in.

Plus, it’s a whole lot more fun than an old-fashioned networking cocktail party!

Marsha Friedman is a public rela-tions expert with 25 years’ experience

developing publicity strategies for celeb-rities, corporations and media newcom-ers alike. Using the proprietary system

she created as founder and CEO of EMSI Public Relations, (www.emsin-

corporated.com), an award-winning national agency, she secures thousands of top-tier media placements annually for her clients. The former senior vice

president for marketing at the American Economic Council, Marsha is a sought-

after advisor on PR issues and strate-gies. She shares her knowledge in her Amazon best-selling book, Celebritize Yourself , and as a popular speaker at

organizations around the country.

Page 11: Metro Rental Housing Journal February 2015

Rental Housing Journal Metro • February 2015 11

RENTAL HOUSING JOURNAL METRO

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Named Oregon and SW Washington’s SBA’s Rising Star Award Winner for 2014

Oil prices are plummeting, taking energy stocks down with them. Meanwhile,

financial experts such as Harry Dent and Robert Shiller say the U.S. stock market is overdue for a correction. Shiller recently noted in Forbes that the market is 65 percent overvalued, mainly fueled by “irrational exuber-ance.”

“Many investors today are yield-starved savers who are losing their earnings power to inflation, increased taxes, and persistent low interest rates,” says Salvatore M. Buscemi, managing director of Dandrew Partners LLC in New York City and author of “Making the Yield: Real Estate Hard Money Lending Uncovered,” (www.MakingTheYield.com).

“As a result, they are being forced to take risks by investing against their better judgment into markets where they have little to no control, and for the majority, can’t afford to lose their money in another stock market crash as they did in 2001 and 2008.”

A growing trend among those seeking to beat the bear is to channel

investments into real estate, he says. Not the kind of venture that turned many into reluctant landlords dur-ing the housing bust, but another type called hard money lending.

“Here’s how it works,” Buscemi says. “Investors act like a bank and make short-term loans to small busi-nesses that buy and repair distressed properties, refinance them with con-ventional bank loans and repay the short-term loans at higher interest rates, generating more profitable returns for the original lenders.”

Buscemi reviews ways to get the most out of this lucrative venture.• Shop local. All things being equal, private investors are often served by small, perhaps localized real estate private partnerships that throw off real cash flow than by global, publicly listed full-service investment brands where an align-ment of interest between investors and these corporations may be defi-cient or missing.• Explore crowd funding. With the advent of crowd funding and federal rule changes since the last real estate cycle, more people with

4 Tips to Survive the Next Stock Market Crash

Advice on Smart Alternative Investments from Investment Banker

continued on page 13

Page 12: Metro Rental Housing Journal February 2015

12 Rental Housing Journal Metro • February 2015

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5 Basic Fundamentals ...continued from page 5

Always work toward goal align-ment within your organization. For instance, if the goal for your compa-ny is to provide quality housing at a premium price, make sure everyone, from owner to manager to leasing agent to maintenance is doing their part and playing their role in order to achieve that goal.

The same can be said for the industry suppliers and vendors you choose to work with. Whether you’re screening candidates, turning an apartment or installing a play-ground, the people you’re contract-ing with are representing you. Make sure they’re aligned with the goals of your business and delivering the ser-vice and image that you desire.

5. Keep Your Mind On Your Money (And Your Money On Your Mind)

I’m dating myself, but Snoop Dogg had it right. When the rubber meets the road, we’re all in this busi-ness for the money. There may be other, more altruistic, motives, but few people would take on the head-aches of property management if it weren’t paying the bills. So, work your business with the bottom line in mind.

This does not mean that you should go cheap on expenses, or get

greedy when driving revenue. Your decisions on both should be mea-sured, balancing both short and long-term benefit. For instance, you might save money in the short term by doing a minimal clean and repair apartment turn, rather than a major update of the unit. But, if the other communities in your area are new or investing in major updates, that might not be the smart play. Conversely, if your building is already performing well, reasonably updated and the competition isn’t pushing the envelope, it might be worth rethinking the complete remodeling of your clubhouse. Whatever you do, just make sure you’re putting thought into the short and long term effects of your deci-sions on your bottom line.

Will Johnson,Rental Housing Journal

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Page 13: Metro Rental Housing Journal February 2015

Rental Housing Journal Metro • February 2015 13

RENTAL HOUSING JOURNAL METRO

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less money can participate in deals that they may have never been able to get into before.• Have a pre-flight checklist. The best time to worry about a real estate loan is before you make it. Always have a list of items to review before committing capital. These include job history, experience in rehab property, education, and most important, credit quality. Always read the entire credit report as the devil is in the details. Also make sure to accept reports from a third party, not the borrower as they can be faked.

• Always ask how your interests are aligned with your borrowers. If they are not going to make any money, neither will you. The loan will default, and you’ll both be dis-couraged. “Individual investors are looking for a more intimate method of manag-ing their own money, insulated from geopolitical shocks,” Mr. Buscemi says. “They don’t want to wake up in the morning blindsided that

they’ve lost a good chunk of their portfolio because of something that happened overseas. Real estate keeps climbing higher and higher in some markets. And people implicitly trust real estate; it’s a very bankable asset class.”

Salvatore M. Buscemi, author of “Making the Yield: Real Estate Hard Money Lending Uncovered,” is manag-ing director of Dandrew Partners LLC in New York City (www.dandrewme-dia.com). The company specializes in placing capital from prominent institu-tional investors into middle-market dis-tressed commercial real estate invest-ments. He began his career at Goldman Sachs, where he worked four years as an investment banker. A frequent speaker on hard money lending, Mr. Buscemi also co-founded Dandrew Strategies LLC, a $30 million real estate solutions provider in the secondary mortgage market specializing in non-performing residential mortgage portfolios.

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Page 14: Metro Rental Housing Journal February 2015

14 Rental Housing Journal Metro • February 2015

RENTAL HOUSING JOURNAL METRO

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Dirty Little Secrets of Family BusinessPassing Leadership Role To Next Generation Is Tricky If Path Not Carefully Planned

After years of hard work, you’ve built the family busi-ness into a great success and

you take pride in meeting the chal-lenges that each day brings.

At some point, though, the day arrives when it’s time to turn the reins over to the next generation.

That can be an exciting moment or an anxiety-ridden one, depending on what has gone on before to pre-pare for the momentous occasion.

“Laying the path to a successful

family-business transition requires a bit of threading the needle,” says Henry Hutcheson, author of the book “Dirty Little Secrets of Family Business”.

“On the one hand you don’t want to paint an overly rosy picture to the next generation. That could create a sense of entitlement and the false perception that running a business is easy and all you need to do is count the money and show up every now

and then to check on things.”At the same time, he says, if you

put too much emphasis on the diffi-culties of running a business and the stresses that come with it, your sons and daughters might not clamor to be first in line to take over.

Ideally, it’s best to think ahead and start grooming the next genera-tion long in advance, Hutcheson says. Give them summer jobs while they are in high school and college so they can start testing their abilities.

When they join the family busi-ness full time, find initiatives for them to work on that involve group dynamics. But also hand them indi-vidual projects where they hold sole responsibility for the results.

“It’s critical when you are select-ing the next leader to realize that it’s not all about who will lead,” Hutcheson says. “It is also about ensuring that those who are not selected are in support of the deci-sion and can work as a team with the new leader.”

Hutcheson says there are four key ingredients to developing the right person to take over the family busi-ness.

• Independence. Next generation leaders must have confidence in themselves, their thoughts and their beliefs. “Much of this can be devel-

oped while working in the family business by constructing and leading significant projects,” Hutcheson says. But one shortcut to accomplish this is to work for some other com-pany early on. Many multi-genera-tion family businesses like to make that a requirement for family mem-bers.

• Competence. This is more than just being able to do the work. It means developing bottom-up expe-rience. Not just being the accountant, but being able to reconcile the accounts and perform the journal entries. Not just being sales and mar-keting manager, but having been on a quota and worked the trade shows. Experience doing some of the day-to-day grunt work can pay divi-dends down the line.

• People skills. “It’s not enough to just be smart and confident,” Hutcheson says. “You need to be able to work with people.” He notes that in the book “Emotional Intelligence,” Daniel Coleman out-lines two studies that measured the success of a batch of high school valedictorians and Harvard gradu-ates. Those who were able to per-ceive the emotional state of others and react to it appropriately proved to be the most successful.

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Page 15: Metro Rental Housing Journal February 2015

Rental Housing Journal Metro • February 2015 15

RENTAL HOUSING JOURNAL METRO

2. the specific assistance animal in question would cause substantial physical damage to the property of others that cannot be reduced or eliminated by another reasonable accommodation. A determination that an assis-

tance animal poses a direct threat of harm to others or would cause sub-stantial physical damage to the prop-erty of others must be based on an individualized assessment that relies on objective evidence about the spe-cific animal's actual conduct — not on mere speculation or fear about the types of harm or damage an animal may cause and not on evidence about harm or damage that other animals have caused.

Conditions and restrictions that housing providers apply to pets may not be applied to assistance animals. For example, while housing provid-ers may require applicants or resi-dents to pay a pet deposit, they may not require applicants and residents to pay a deposit for an assistance animal. <In addition,> breed, size, and weight limitations may not be applied to an assistance animal.

Housing providers may ask indi-viduals who have disabilities that are not readily apparent or known to the provider <or if the need for the assistance animal is not apparent> to submit reliable documentation of a disability and their disability-related need for an assistance animal. For example, the housing provider may ask persons who are seeking a rea-sonable accommodation for an assis-tance animal that provides emotional support to provide documentation from a physician, psychiatrist, social worker, or other mental health pro-fessional that the animal provides emotional support that alleviates one or more of the identified symp-toms or effects of an existing disabil-ity. Such documentation is sufficient if it establishes that an individual has a disability and that the animal in question will provide some type of disability-related assistance or emo-tional support. <NOTE: Case law tells us that such verification does not necessarily need to come from a medical provider. In truth, a family member or the individual him/her-self may act as the verifier in some situations, though is not particularly common.>

So, what about the ADA? Do you have obligations under it, as well, as a housing provider? Maybe…

Certain entities will be subject to both the service animal requirements of the ADA and the reasonable accommodation provisions of the FHAct and/or Section 504. These entities include, but are not limited to, public housing agencies and some places of public accommodation, such as rental offices, shelters, resi-dential homes, some types of multi-family housing, assisted living facili-ties, and housing at places of educa-tion. Covered entities must ensure compliance with all relevant civil rights laws.

The preambles to DOJ's 2010 Title II and Title III ADA regulations state

that public entities or public accom-modations that operate housing facilities "may not use the ADA defi-nition [of "service animal"] as a justi-fication for reducing their FHAct obligations." <The preamble further indicates that> under the FHAct, "an individual with a disability may have the right to have an animal other than a dog in his or her home if the animal qualifies as a 'reasonable accommodation' that is necessary to afford the individual equal opportu-nity to use and enjoy a dwelling, assuming that the use of the animal does not pose a direct threat." In addition,… emotional support ani-mals that do not qualify as service animals under the ADA may "never-theless qualify as permitted reason-able accommodations for persons with disabilities under the FHAct." While the preambles expressly men-tion only the FHAct, the same analy-sis applies to Section 504.

DOJ's revised ADA regulations define "service animal" narrowly as any dog that is individually trained to do work or perform tasks for the benefit of an individual with a dis-ability, including a physical, sensory, psychiatric, intellectual, or other mental disability. The revised regula-tions specify that "the provision of emotional support, well-being, com-fort, or companionship do not con-stitute work or tasks for the purposes of this definition." Thus, trained dogs are the only species of animal that may qualify as service animals under the ADA <not the FHA> (there is a separate provision regarding trained miniature horses), and emotional support animals are expressly pre-cluded from qualifying service ani-mals under the ADA <not the FHA>.

The ADA definition of "service animal" applies to state and local government programs, services activities, and facilities and to public accommodations, such as leasing offices, social service center estab-lishments, universities, and other places of education.

<Under the ADA the> animal may not be denied access to the ADA-covered facility unless:

(1) the animal is out of control and its handler does not take effec-tive action to control it;

(2) the animal is not housebro-ken (i.e., trained so that, absent ill-ness or accident, the animal controls its waste elimination); or

(3) the animal poses a direct threat to the health or safety of oth-ers that cannot be eliminated or reduced to an acceptable level by a reasonable modification to other pol-icies, practices and procedures. A determination that a service animal poses a direct threat must be based on an individualized assessment of the specific service animal's actual conduct — not on fears, stereotypes, or generalizations. The service ani-mal must be permitted to accompa-ny the individual with a disability to all areas of the facility where mem-bers of the public are normally allowed to go."

<NOTE: In all ways related to

disability-related animals, the FHA is more liberal than the ADA. If DOJ stipulates the above items for “ser-vice animals” under the ADA, than you can be fairly certain that they are – at a minimum – what would be considered reasonable for assistance animals under the FHA.>

In cases where all three statutes apply…. the housing provider should apply the ADA service ani-mal test first. This is because <under the ADA, not the FHA> the covered entity may ask only whether the ani-mal is a service animal that is required because of a disability, and if so, what work or tasks the animal has been trained to perform. If the animal meets the test for "service animal," the animal must be permit-ted to accompany the individual with a disability to all areas of the facility where persons are normally allowed to go, unless <see points (1), (2), and (3) above>. If the animal does not meet the ADA service ani-mal test, then the housing provider must evaluate the request in accor-dance with the guidance provided in Section I of this notice. <Note that compliance> with the FHAct and Section 504 does not ensure compli-ance with the ADA. Similarly, com-pliance with the ADA's regulations does not ensure compliance with the FHAct or Section 504… It is the housing provider's responsibility to know the applicable laws and com-ply with each of them.

For yet more information on this topic including other memos from

HUD, previous FHCO articles, sample accommodation / modification forms,

and other guidance visit:www.FHCO.org/disability.htm,

www.FHCO.org/assistanceanimals.htm,

www.FHCO.org/guidebooks.htm, www.FHCO.org/forms.htm.

This article brought to you by the Fair Housing Council; a civil rights organization. All rights reserved © 2015. Write [email protected] to

reprint articles or inquire about ongo-ing content for your own publication.

To learn more… Learn more about fair housing and / or sign up for our

free, periodic newsletter at www.FHCO.org.

Qs about this article? ‘Interested in articles for your company or trade asso-ciation? Contact Jo Becker at jbecker@

FHCO.org or 800/424-3247 Ext. 150Want to schedule an in-office fair

housing training program or speaker for corporate or association functions?

Visit www.FHCO.org/pdfs/classlist.pdf

Assistance Animals ...continued from page 9

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Page 16: Metro Rental Housing Journal February 2015

16 Rental Housing Journal Metro • February 2015

RENTAL HOUSING JOURNAL METRO

Dirty Little Secrets ...continued from page 14

In strong rental markets, many leasing employees are faced with the wonderful challenge of being

100% leased. Some apartments are being rented “sight unseen,” and perhaps there are only a few days in any given month where vacant apartments are available to look at before the new residents move in. For communities that have rented and done away with their model apartments, many leasing consul-tants are now in situations where they have nothing to show, even if

they have unrented notices. The following question expresses this di-lemma and the leasing consultant’s frustration:

Q: Our property consistently stays full and we typically rent our notices almost as soon as they come in. When people call to inquire about an apartment and I don’t have any-thing available to show, I will usual-ly refer them to our website or rec-ommend that they call back at a later date. I don’t want to waste their time

if I don’t have anything available. However, lately some callers have been pretty insistent about wanting to come by even when I don’t have an apartment they can see. Should I really be trying to set appointments when all I can do is hand out a floor plan and give a property tour?

A: This is a challenge, and yet a unique and incredible opportunity for you to highlight and sell many other aspects of your community that you might not normally focus

on during an apartment tour. EVERY caller should be extended an invita-tion to visit your community, wheth-er you have an apartment to show or not. While a website is just one of many “sales tools” at your disposal, it is not the only tool you have. What about your property and the many community benefits you have to offer? Even if you work at a smaller community, you still have numerous benefits to sell. Perhaps it’s the loca-tion of your building and the many

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“This will show that you are part of the team and that you want to be judged on the merits of your work, not your bloodline,” Hutcheson says. It will also help the next generation gain the respect of co-workers.

Henry Hutcheson is president of Family Business USA and specializes

in helping family and privately held businesses successfully manage transi-tion, maintain harmony, and improve operations. His newest book is “Dirty

Little Secrets of Family Business: How to Successfully Navigate Family

Business Conflict and Transition” (http://dirtylittlesecretsoffamilybusi-

ness.com). He’s also quoted in “Kids, Wealth, and Consequences” and “Sink

or Swim: How Lessons from the Titanic Can Save Your Family Business.”

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Page 17: Metro Rental Housing Journal February 2015

Rental Housing Journal Metro • February 2015 17

RENTAL HOUSING JOURNAL METRO

From the moment you spoke your first word as a small child, your voice and the

words you select are often taken for granted—a gift you use throughout your life. As leasing professionals, you know the importance of using the telephone, because this is how a majority of your future residents contact your apartment communi-ties. In this article, we are going to ask you to capture your voice and listen closely to how you are han-dling each call—a powerful exercise for becoming a leasing SuperStar.

Capturing your voice and words: Let’s start by agreeing that capturing your voice and hearing the words you are using to lease apartments is an important first step. As a leasing professional, how much would your leasing skills and closing ratios improve if you listened to 50 or even 100 of the most recent calls you received from future residents? Capturing your voice and listening to the words you are using to paint verbal pictures about your apart-ment community will have a posi-tive impact on your leasing perfor-mance and your career in the multi-housing industry. As a resident man-

ager or property supervisor, imagine the powerful coaching you could do with/for your leasing teams, if you could hear the five best presenta-tions this week, given to future resi-dents?

Tip From The Coach: Using the simplest of tools, place a digital recorder next to your telephone and start the record every time a future resident calls your apartment com-munity. This will give you the opportunity to hear your voice and listen to the words you are using to lease your apartment lifestyle. For a more powerful system, select a ven-dor who can help you automatically capture, save, and index every future resident telephone call. An impor-tant note for resident managers and property supervisors: you must receive written permission from your leasing teams to capture their voices and we recommend a system be used just for in-bound calls from future residents, as these are the calls that increase your occupancy and define property management suc-cess.

Learning from your voice-mirror: Once you have selected a system for capturing your leasing voice, it’s

now time to learn from your power-ful voice-mirror. Begin by play the recording of your calls from today and ask yourself these important questions as you listen to your voice-mirror: Can I hear the smile in my voice? Was my voice too soft or too loud? Was the speed of my voice too fast or too slow? Am I proud of the way I handled the questions asked by this future resident? If I could re-do this call with the same future resident, what single improvement would I make? Now, continue this process of capturing your calls and listening to your voice-mirror for the next four weeks. Then, call us in 30 days at 435-615-8486 and tells us how your leasing skills and closing ratios improved. We want to hear your success stories!

Tip From The Coach: As a resi-dent manager or property supervi-sor, imagine how powerful it would be to have a recording collection of the best-of-the-best in telephone pre-sentations to share with a newly hired leasing professional. These powerful telephone presentations could also be shared during weekly leasing meetings so your entire team could continue to polish their skills

and refine the verbal pictures they are using to invite future residents to your apartment communities. In addition, try comparing these tele-phone calls to the shopping reports used by your company—and watch to see how the scores of your leasing teams improve.

Linking your voice with your leasing success: As an added bonus, companies like Who’s Calling® or Lead Tracking Solutions® will help you and your leasing teams auto-matically capture every in-bound telephone call from future residents and will provide you with a special index number that is spoken out by the system at the end of each call. As a leasing professional, this becomes a wonderful audio guest card which you can go back and replay right after you finish speaking with each future resident. By replaying this message right after each call, you can add any additional notes you might have missed during the original tele-phone call. In addition, if you place this special index number on your guest card or traffic log, you can replay this saved call minutes before your appointment with each future

...continued on page 19

Your Voice Carries the Words of 10,000 Leases!©

By Ernest F. Oriente, The Coach {Article #225…since 1995}

Page 18: Metro Rental Housing Journal February 2015

18 Rental Housing Journal Metro • February 2015

RENTAL HOUSING JOURNAL METRO

Secret Shopper ...continued from page 16

area conveniences, which no one will truly appreciate unless they make a visit and drive through the neighbor-hood. Maybe you have an outstand-ing maintenance staff that is highly visible that a prospective resident would observe hard at work when visiting your community. What about your friendly residents who are out and about? The ones who smile and cheerfully say “Hello” to everyone they meet. Have you ever considered your existing residents as a “sales tool?” Then, last, but cer-tainly not least, there is YOU!! No website or other form of “inanimate” advertising can take the place of a warm, friendly and VERY enthusias-tic person who is excited about their product and what they are doing.

Of course it’s much “easier” to just refer someone to a website or encourage them to check back with you when you have no apartments to show. After all, it does “appear” that you are trying to be “helpful.” What if you extended an invitation to visit instead? You would defi-nitely have to expend some extra time and energy and get creative to sell your product in a new and excit-ing way without a “visual.” Perhaps your enthusiastic personality could describe and demonstrate with such animation that you could create your own “visual?”

Of course you want to be honest about your apartment availability

and not get your prospects so “worked up” that you sell them on renting an apartment that is not available for their time frame. On the other hand, maybe there is some flexibility with their move date. Remember: Part of your job as a sales person is to convince the customer that what you have to offer is worth waiting for.

If you are interested in leasing training or have a question or con-cern that you would like to see addressed, please reach out to me via e-mail.

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Page 19: Metro Rental Housing Journal February 2015

Rental Housing Journal Metro • February 2015 19

RENTAL HOUSING JOURNAL METRO

Your Voice – The Coach ...continued from page 17

resident! Wow! Can you imagine the response you are going to receive from future residents when you can remember the exact details of your telephone conversation from a week ago? More importantly, how will this personalized approach increase your leasing success?

Tip From The Coach: As a resi-dent manager or property supervi-sor, this special index number can serve a dual purpose. For example, your leasing professional, Mary, speaks by telephone to Rick Brown on Monday and schedules an appointment for a Friday morning leasing tour. Mary calls in sick on Friday so you can now ask Bill to cover for Mary and have him use this special index number to hear Mary’s original telephone call with Rick Brown. What a concept! Bill is right in step with Rick Brown, a future resident, and Bill has a better opportunity to lease a new apart-ment to Rick because he has the information he needs to close this sale.

Want to hear more about this important topic or ask some addi-tional questions about how to cap-ture your voice-mirror or how to link your voice with your leasing suc-cess? Send an E-mail to [email protected] and The Coach will E-mail you a free PowerHour invita-tion.

Author’s note: Ernest F. Oriente, a busi-ness coach/trainer since 1995 [33,300 hours],

serving property management industry profes-sional since 1988--the author of SmartMatch

Alliances™, the founder of PowerHour® [ www.powerhour.com ], the founder of

PowerHour SEO [ www.powerhourseo.com ], the live weekly PowerHour Leadership

Academy [ www.powerhourleadershipacade-my.com/pm ] and Power Insurance & Risk

Management Group [ www.pirmg.com ], has a passion for coaching his clients on executive

leadership, hiring and motivating property management SuperStars, traditional and

Internet SEO/SEM marketing, competitive sales strategies, and high leverage alliances for property management teams and their leaders.

He provides private and group coaching for property management companies around

North America, executive recruiting, invest-ment banking, national utility bill auditing, national real estate and apartment building

insurance, SEO/SEM web strategies, national WiFi solutions [ www.powerhour.com/proper-

tymanagement/nationalwifi.html ], powerful tools for hiring property management

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com/propertymanagement/employeepolicy-manuals.html ] and social media strategic

solutions [ http://www.powerhour.com/proper-tymanagement/socialmedialeadership.html ]. Ernest worked for Motorola, Primedia and is

certified in the Xerox sales methodologies. Recent interviews and articles have appeared more than 8000+ times in business and trade publications and in a wide variety of leading magazines and newspapers, including Smart

Money, Inc., Business 2.0, The New York Times, Fast Company, The LA Times,

Fortune, Business Week, Self Employed America and The Financial Times. Since

1995, Ernest has written 225+ articles for the property management industry and created 400+ property management forms, business

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Page 20: Metro Rental Housing Journal February 2015

20 Rental Housing Journal Metro • February 2015

RENTAL HOUSING JOURNAL METRO