rental housing journal metro april 2016

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Text 51WAYS to 44222 to receive the FREE e-book 51 Ways to Increase Your Rental Property Cash Flow (And 10 Ways to Ruin It) 2. Window Film – How Its Proper Use Can Help You Save Money 3. Multifamily Landlords Win Some/Lose Some in the Short 2016 Legislative Session 5. Fair Housing Month Published in association with: Multifamily NW; Rental Housing Association of Oregon; IREM & Clark County Association www.rentalhousingjournal.com • Professional Publishing, Inc Rental Housing Journal Metro April 2016 Portland/Vancouver continued on page 11 6. Service In A Growing Industry 7. HUD Seeks to End Discrimination Against Tenants With Criminal Records 8. Increasing Your Property’s Bottom Line 9. Top Questions Regarding Music Licensing for Rental Properties 10. Dear Maintenance Men – Maintenance Tools & City Inspections 12. How Wireless Security Transformed the Real Estate Industry 17. Ask the Secret Shopper – Pets & Children continued on page 11 continued on page 13 Attract Tenants with Simple Eco-Friendly Upgrades By Scott Matthews, Director, Strategic Accounts, e Home Depot T he multifamily housing indus- try is expected by many to con- tinue growing throughout the year, which means strategic upgrades to your property can help prepare you for increased demand and set you apart from competitors. Approximately 65 percent of renters consider energy-efficient features when deciding what apartments to rent, accord- ing to e Center for Climate and Energy Solutions. ese upgrades will also cut operational costs associated with water usage, heating, cooling and other ener- gy, helping both you and your residents save money. Consider these simple, eco-friendly up- grades before the summer season begins. Save Energy Seal and insulate: Sealing gaps and cracks will help keep money in renters’ pockets. Maintenance can start by prop- erly insulating needed areas around win- dows and doors. Seal cracks and gaps with caulk, spray foam and weather strip- Are You Investing in Real Estate to Go Green or to Make Green? T here are countless ways to make your rental properties more energy efficient. High efficiency applianc- es, high efficiency heating and cooling sys- tems, solar, the list goes on and on. Most of you probably did not purchase investment real estate with the intent of saving the planet. One big question that you need to ask yourself when making your property greener is “How is this going to make me more green ($)?” Any money that is spent improving your property should increase the overall value or lower your monthly expenses or both. Are you looking to increase the value of your property? According to a repu- Common Tenant Complaints and How to Handle Them B eing a landlord inevitably in- cludes dealing with tenant com- plaints. Managing those complaints promptly and effectively is essential for your relationships with the tenants, the security of your property and last but not least – for your landlord’s reputation. If you approach the problems in a profes- sional manner, you are definitely going to lessen the chance of some legal issues as well. Here are the 4 most common tenant complaints and a few useful tips on how to deal with them. Some of them can occur during the tenancy period, but others you can easily foresee and handle in advance. The property is not clean enough Absolutely no tenant will be pleased by the thought that they will have to start cleaning the property from the very sec- ond they move in. In fact, few people will be willing to rent a place where domestic cleaning hasn’t been done since forever. So it is a great idea for you to give your rental property a good cleaning before the new tenants come and avoid starting your Professional Publishing Inc., PO Box 6244 Beaverton, OR 97007 PRSRT STD US Postage PAID Portland, OR Permit #5460

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Rental Housing Journal is the business journal for the Portland Metro area rental housing and multi-family property management industry.

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Page 1: Rental Housing Journal Metro April 2016

Text 51WAYS to 44222to receive the FREE e-book

51 Ways to Increase Your Rental Property Cash Flow

(And 10 Ways to Ruin It)

2. Window Film – How Its Proper Use Can Help You Save Money

3. Multifamily Landlords Win Some/Lose Some in the Short 2016 Legislative Session

5. Fair Housing Month

Published in association with: Multifamily NW; Rental Housing Association of Oregon; IREM & Clark County Association

www.rentalhousingjournal.com • Professional Publishing, Inc

Rental Housing Journal Metro April 2016

Portland/Vancouver

continued on page 11

6. Service In A Growing Industry

7. HUD Seeks to End Discrimination Against Tenants With Criminal Records

8. Increasing Your Property’s Bottom Line

9. Top Questions Regarding Music Licensing for Rental Properties

10. Dear Maintenance Men – Maintenance Tools & City Inspections

12. How Wireless Security Transformed the Real Estate Industry

17. Ask the Secret Shopper – Pets & Children

continued on page 11

continued on page 13

Attract Tenants with Simple Eco-Friendly Upgrades

By Scott Matthews, Director, Strategic Accounts, Th e Home Depot

The multifamily housing indus-try is expected by many to con-tinue growing throughout the

year, which means strategic upgrades to your property can help prepare you for increased demand and set you apart from competitors.

Approximately 65 percent of renters consider energy-effi cient features when

deciding what apartments to rent, accord-ing to Th e Center for Climate and Energy Solutions. Th ese upgrades will also cut operational costs associated with water usage, heating, cooling and other ener-gy, helping both you and your residents save money.

Consider these simple, eco-friendly up-grades before the summer season begins.

Save EnergySeal and insulate: Sealing gaps and

cracks will help keep money in renters’ pockets. Maintenance can start by prop-erly insulating needed areas around win-dows and doors. Seal cracks and gaps with caulk, spray foam and weather strip-

Are You Investing in Real Estate to Go Green or to Make Green?

There are countless ways to make your rental properties more energy effi cient. High effi ciency applianc-

es, high effi ciency heating and cooling sys-tems, solar, the list goes on and on. Most of you probably did not purchase investment real estate with the intent of saving the planet. One big question that you need to ask yourself when making your property greener is “How is this going to make me more green ($)?” Any money that is spent improving your property should increase the overall value or lower your monthly expenses or both.

Are you looking to increase the value of your property? According to a repu-

Common Tenant

Complaints and How

to Handle Them

Being a landlord inevitably in-cludes dealing with tenant com-plaints. Managing those complaints

promptly and eff ectively is essential for your relationships with the tenants, the security of your property and last but not least – for your landlord’s reputation. If you approach the problems in a profes-sional manner, you are defi nitely going to lessen the chance of some legal issues as well.

Here are the 4 most common tenant complaints and a few useful tips on how to deal with them. Some of them can occur during the tenancy period, but others you can easily foresee and handle in advance.

The property is not clean enoughAbsolutely no tenant will be pleased by

the thought that they will have to start cleaning the property from the very sec-ond they move in. In fact, few people will be willing to rent a place where domestic cleaning hasn’t been done since forever. So it is a great idea for you to give your rental property a good cleaning before the new tenants come and avoid starting your

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

PRSRT STDUS Postage

PAIDPortland, ORPermit #5460

Page 2: Rental Housing Journal Metro April 2016

Text 51WAYS to 44222to receive the FREE e-book51 Ways to Increase Your

Rental Property Cash Flow(And 10 Ways To Ruin It)

“51 Ways to Increase Your Rental Proper-ty Cash Flow is full of great advice on how to get the most out of your rental properties.”

–Sam J, Smart Property Management

Contact us [email protected]

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2

Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

It’s somewhat of a secret that window fi lm has more than one application. If used correctly and installed by a pro-

fessional, window fi lm can deliver huge savings to building owners, especially in warmer climates.

Over ten years ago we purchased a small offi ce building to move our business into. We moved in March, and as spring tran-sitioned into summer and the sun came out more oft en, our space started heating up. Th e air conditioning system (about 6 rooft op and ground based split units), could not handle the load and labored to cool down the building. Th e employees complained about the heat, and the high electric bill added insult to injury.

Installing new HVAC units would have been very expensive and the roof was not designed to support the additional weight. We looked for another answer and found one at the booth of a window fi lm vendor during a vendor open house hosted by the Institute for Real Estate Management.

Th eir display was very simple. It con-sisted of a piece of glass with window fi lm on one half of the glass. A heat lamp was positioned on one side of the glass and two thermometers were posi-tioned on the other side, one parallel to the clear glass and the other one next to the glass covered in the fi lm. It be-came clear in a moment that the window fi lm reduced the heat load signifi cantly.

According to tests conducted by win-dow fi lm manufacturers, the fi lm reduces heat loads from 25 to 85 percent. (Results vary depending on manufacturer and type of fi lm; research products carefully

to identify the best fi lm for your need.) Th e location of the window fi lm is also

a factor. Installing fi lm on windows that face east, south and west are typically more eff ective than on the shady north

side of a building, and if your building is already well shaded, window fi lm may not help at all.

Window FilmHow its proper use can help you make money

By Cliff Hockley, President, Bluestone & Hockley Real Estate Services

continued on page 19

Page 3: Rental Housing Journal Metro April 2016

In honor of National Fair Housing Month | April 2016

We Are Fair Housing

16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 | ph: 503-213-1281 email: [email protected]

WE, as housing providers to the people of Oregon, pledge the following:

1. To provide equal opportunities for rental housing to Oregon residents without regard to race, color, religion, national origin, sex, familial status, disability, source of income, marital status, sexual orientation, gender identity, or victims of domestic violence.

2. To be open and transparent in all our practices, investigations, and other activities related to fair housing laws.

3. To provide ongoing training and education in fair housing best practices to all our employees.

4. To address all fair housing complaints and, if fair housing laws are broken, to hold violators accountable.

5. To uphold all fair housing laws as our legal and moral obligation to all Oregonians.

Signed,

The Board of Directors of Multifamily NW representing Cascade Management, Tokola Properties, Greystar, Mainlander Property Management, Quantum Residential, American Property Management, Background Investigations, Bittner & Hahs, Capital Property Management, Guardian Real Estate Services, Home Forward, Income Property Management, Interstate Roofing, Kennedy Restoration, Princeton Property Management, Sterling Management Group, WPL Associates.

This fair housing pledge represents a public commitment from management companies and housing providers that manage or own approximately 160,000 multifamily units or homes in Oregon. To learn more about our pledge and fair housing laws, please visit out website at multifamilynw.org.

3

Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

continued on page 14

Multifamily Landlords Win Some/Lose Some In Th e Short

2016 Legislative Session

In the short spring Oregon legislative session of 2016, landlords were sur-prised by HB 4001, a bill introduced

by tenant advocates.

HB 4001:• Matched Portland’s 90 day rent in-

crease notice requirement (and the reasons for the increase) and added the requirement that a 90 day notice be given for termination of tenancy aft er the fi rst year of occupancy.

• Required that landlords pay the tenant relocation assistance of one month’s rent at the delivery of the ter-mination notice.

• Created the presumption of retaliatory actions between landlord and tenant within 6 months aft er a tenant’s report regarding maintenance.

• Added new language regarding un-reasonable harassment of a tenant by a landlord.

Landlord advocates were able to stop the bill in the Oregon State Senate, but they had to agree to the following con-cessions in a similar bill, HB 4143. HB 4143 was passed and will become eff ec-tive April 14, 2016.

HB 4143:• Rent increase notices for week to week

tenancies must be received at least sev-en days prior to the eff ective date of the lease.

• Landlords may not increase the rent in the fi rst year of month to month tenan-cies, or at any time aft er the fi rst year of the tenancy without giving at least 90 days written notice to a tenant. (Re-member to add mailing time).

· Th is applies to any rent increase and eff ectively overrules the city of Port-land ordinance that called for 90 day notices only for rent increases over 5%.

· Notices must specify the amount of the rent increase; the amount of the new rent; and the date the increase becomes eff ective.

• Th e statute does not address rent in-creases for the renewal of fi xed term tenancies, such as a one year lease.

In light of these new requirements, at-torneys for Multifamily NW believe:

• If the increase is built into the existing lease no specifi c additional notice of rent increase is required.

• If you would like to raise the rent on a tenant who did not sign a renewal and you expect the lease to turn into a month to month agreement then you will want to give the tenants a 90 day notice (plus mailing time) to have the rent increase occur at the same time

that the lease rolls into a month to month agreement.

• If you fail to plan ahead and the lease turns into a month to month agree-ment then you are stuck with the exist-ing rent for one year aft er the conver-

By Cliff ord A. Hockley, President, Bluestone & Hockley Real Estate Services

Page 4: Rental Housing Journal Metro April 2016

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4

Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

Page 5: Rental Housing Journal Metro April 2016

5Rental Housing Journal Metro · April 2016

John Sage,RHA Oregon President

10520 NE Weidler, Portland, OR 97220(503) 254-4723 • Fax (503) 254-4821

[email protected] • www.rhaoregon.org

President: John Sage Vice President: Phil Owen President Elect: Ron Garcia Past President: Elizabeth CarpenterSecretary: Lynne Whitney Treasurer: Elaine Elsea Offi ce Manager: Cari Pierce

President’s MessageFair Housing Month

April is Fair Housing Month and only a few short weeks until the Primary elections on Tuesday,

May 17th. Why do I mention the elections coming up? Because I want to remind ev-eryone of the right and privilege that we have to participate in the governing of our cities, our state, and our country. I could go over the fact that many people gave their lives for this right/privilege. I could remind you of the ease with which we are aff orded the ability to exercise this right and privilege. I could do all of those things and have done so in past articles. Yet, I wonder at times, does it make a dif-ference? Are people truly listening? Th en I have something happen which shows me that people are listening and that maybe I have been looking in the wrong place for my answer. I was talking with my 17-year old daughter and some of her friends the other night and I asked them about the coming elections. Who would they vote for, if able to vote? What did they think about the issues? Th eir answers encour-aged me and gave me hope for our future. Th e next generation is not as uninformed as we might think, and not informed only via what they read on social media. Th ey have ideas on how to face the future and are already thinking about how to tack-le problems with creative solutions that

will take some sacrifi ce and fortitude be-fore progress is made. However, they are willing to try, and their enthusiasm was contagious. So I encourage you since you have the right/privilege to vote that you go out and exercise that right for those that are coming behind you and have not yet the ability to vote but have the courage to dream it. And now this…..

Again, April is Fair Housing month!! Why is April the designated month that we observe this recognition of Fair Hous-ing? On April 11th, 1968 President Lyn-don Johnson signed the Civil Rights Act of 1968, an expansion of the Civil Rights Act of 1964. Th e 1968 act expanded on previous acts and prohibited discrimi-nation concerning the sale, rental, and fi nancing of housing based on race, reli-gion, national origin, sex (and as amend-ed), handicap, and family status. Title VIII of the Act is also known as the Fair Housing Act (of 1968).

We at RHA Oregon are committed to helping you to understand Fair Housing and how it applies to your business. On April 7th, we have Diane Hess with the Fair Housing Council of Oregon present-ing a class on Fair Housing at the RHA Oregon Conference Annex starting at 6:30 pm. She will be presenting an intro-duction to and overview of Federal, State,

and Local fair housing laws. If you would like to attend, go to our website and/or call our offi ce to register. I have been to several classes over the years on Fair Housing and I learn something new each time. Also, if you haven’t done so yet, you should check out the Fair Housing Coun-cil of Oregon website and especially their link to resources for landlords. http://www.f hco.org/hs_provider_info.htm. Th ere is a lot of information here that you should fi nd very helpful for your business.

RHA Oregon also has classes this month on Landlording101, presented by Mark Passannante, Attorney at Law and Past President of RHA Oregon, at the Monarch Hotel. You can check both of

these classes out on the RHA website, http://rhaoregon.org/.

Please remember to go out and get some exercise of your voting rights in May. You wouldn’t want those rights to atrophy!!! As for Fair Housing month, know that we really observe it every day of every month of every year since April 11th, 1968. Re-member that RHA Oregon is a resource for training and answering questions about fair housing. And please be sure to let us know if there is anything that we can do to help you.

Sincerely,John SagePresident RHA OregonStegmann Insurance Agency Inc.

Page 6: Rental Housing Journal Metro April 2016

6 Rental Housing Journal Metro · April 2016

Rental Housing Journal Metro16083 SW Upper Boones Ferry Rd, Suite 105, Tigard, OR 97224

503-213-1281 | Fax 503-213-1288 | www.multifamilynw.org

Form of the MonthOregon Notice of Rent/Monthly

Charges Increase – M011 OR

Th is form has been updated to be compliant with language passed during the 2016 short session of the Oregon Legislature. Rent increase notices must include a notice period of 90 days, state the new rent amount and specify the amount of the in-crease over the previous rent amount.

Upcoming Events with Multifamily NW4/6/2016 CAM: Marketing Class4/6/2016 April Landlord Study Hall 4/7/2016 Mold Awareness Class4/7/2016 New Supplier Orientation Program 4/8/2016 It’s the Law - Crazy But True: Stories from a Full Moon 4/13/2016 Low Income Housing Tax Credit Class4/18/2016 CAM: Property Maintenance for Managers 4/18/2016 EPA Lead-Based Paint: Renovation, Repair - REFRESHER 4/25/2016 OSHA/Safety Prep Class4/26/2016 Spring Apartment Report Breakfast 4/28/2016 Reasonable Accommodations Class4/29/2016 A Tour of Portland’s Hidden Discriminatory History 5/2/2016 Oregon Landlord Tenant Law Part I 5/2/2016 Maintenance Boot Camp for Spanish Speakers 5/4/2016 New Hire Class5/6/2016 Forms and Notices Class5/10/2016 CAMT: Plumbing Part I & II 5/10/2016 Fair Housing Basics with a Historical Perspective

I’m oft en involved in the daily conver-sation regarding the state of the mul-tifamily marketplace. Th e conversa-

tion is naturally focused around supply and demand. We oft en speak to the “hot” rental market or “landlord’s” market. In nearly every market there certainly is high demand. Currently, raising rents and ab-sorbing vacant units is oft en easier, how-ever we should never disregard the fact that the marketplace is still very competi-tive. To remain competitive, drive perfor-mance and move our industry forward, we need to focus our work to provide quality service to our applicants and residents.

Service is typically more inclusive than how we view customer service. Custom-er service is typically an action, whereas service relates to everything we do. It’s a way of existing, more than just a task and for that we need a very high level of

self-awareness around hard work, ded-ication, creative thinking and self-mo-tivation. Th is higher level of awareness creates a recognition of service to each other and service to your team. Th is translates to service to our applicants and our residents.

Self-awareness and careful consider-ation of our impact oft en determines how we supply service to our industry but we also need to acknowledge our ever chang-ing marketplace. Newer and more inno-vative product is coming online quickly. Th ere is also a high level of project ac-quisitions that is driving renovations and improving the existing housing stock. Acquisition, new competition and higher rents result in a competitive marketplace where resident retention and applicant acquisition will be a direct result of the customer’s experience.

Our customer has also changed. We frequently serve a more diverse customer with higher expectations and lower toler-ance for mistakes or poor service. Multi-family housing is no longer just a necessi-ty for those who cannot aff ord a home or are in need of a temporary place to live. Th e marketplace has changed to where customers are choosing multifamily as a preference and a lifestyle. More than ever, someone’s apartment is truly their home. It is important to think of an apartment

as the base or foundation block of some-body’s life.

To reference this point it is helpful to think of an example that we can all re-late to. Th ink of visiting your favorite restaurant. Imagine you show up to have dinner with friends and the location is much busier than normal. You typically frequent the location since you know the food and service are both of high quali-ty. If you were told that you had to wait 45 minutes for a table when you only had 20 to spare would you wait? If there were 15 other quality restaurants close by you would likely consider your other options in hopes that someone could better ac-commodate you and potentially fi nd a location that would be more enjoyable for your group.

When thinking of our customers in Multifamily, their experience is more per-sonal because their experience is specifi c to their home or the foundation of their life. In consideration of just how import-ant service among competition is in our industry, it is helpful to review four guid-ing principles to consider when delivering service in this new marketplace:

1) An applicant or resident’s percep-tion IS their reality,

2) More communication is (general-ly) better than less,

3) Hiring and training have never been more important,

4) How we work with each other will certainly translate specifi cally to how we work with our applicants and residents.

Finding the best renters and retaining them will ultimately be determined by service, more than by product. With the amount of activity in our marketplace there will always be a newer, bigger and better apartment down the street. How residents feel about their home, their community and the service they receive from management staff will ultimately lead to higher rents, higher resident re-tention and better fi nancial performance.

Service in aGrowing Industry

Dave BachmanPresident of Cascade Management

Page 7: Rental Housing Journal Metro April 2016

Make your job a little easier

Making sure resident garbage and recycling is properly disposed of can be a big challenge. When it’s not, you’re left with a mess, that costs time and money to fix.

The good news: The City of Portland Multifamily Waste Reduction Program can help.

Get free materials and support to make your job easier. Keep your garbage and recycling program working for you and your residents.

Multifamily Resource Line: 503-823-7224

Email: [email protected]

www.portlandoregon.gov/bps/multifamily

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Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

The U.S. Department of Housing and Urban Development (HUD) published guidelines in April, 2016,

for the proper consideration of applicants’ criminal records when considering them for housing. HUD notes that because a disproportionate amount of people with criminal records are minorities, a blanket policy of refusing to rent to anyone with a criminal history may violate the Fair Housing Act.

Much like the 1991 HUD memoran-dum regarding occupancy standards (the “Keating Memo”) this new document provides general guidance for how to consider whether a housing policy vio-lates federal law. Th e memo is not law in itself, but it interprets how the law may apply to certain situations. As with any new guideline, the legal ramifi cations will develop on a case-by-case basis as matters are heard in court and the guid-ance is considered.

According to the new guidelines, turn-ing down tenants solely based on their criminal history may violate the Fair Housing Act. While the Act does not list people with criminal records as a protect-ed class, HUD notes that minorities have disproportionately high rate of arrests and convictions. For this reason, while in some cases a landlord may refuse to rent to a party with a criminal record, the pol-

icy should not be applied automatically without further consideration.

Th e guidelines note that there is a dif-ference between an arrest and a convic-tion. An arrest may occur if a police of-fi cer forms the belief that someone needs to be detained for their own safety, for the safety of others, or for the investigation of a crime. A conviction may occur only aft er a party has been formally charged with a crime and had an opportunity to defend himself or herself in a court of law. A judge or a jury must determine that it is beyond a reasonable doubt that the indi-

vidual committed the crime. Both arrests and convictions may appear on a crimi-nal history.

HUD takes the position that a policy of excluding individuals because of a prior arrest without a conviction is discrimi-natory. Quoting the U.S. Supreme Court, HUD states, “[t]he mere fact that a man has been arrested has very little, if any, probative value in showing that he has engaged in any misconduct.” In other words, an arrest is not, by itself, proof of a crime. A housing provider who categor-ically denies housing to a person because

of an arrest on their record violates the Fair Housing Act.

Convictions, on the other hand, are diff erent. HUD states in the memo, “In most instances, a record of conviction (as opposed to an arrest) will serve as suffi -cient evidence to prove that an individual engaged in criminal conduct.” Even so, a blanket policy of excluding all people with a criminal conviction probably vio-lates the Fair Housing Act. Th e landlord with a policy of excluding applicants with

HUD Seeks to End Discrimination Against Tenants with Criminal Records

By Evan L. Loeffl er

continued on page 15

Page 8: Rental Housing Journal Metro April 2016

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Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

continued on page 16

Increasing Your Property’s Bottom Lineby Tami Cox

Owning and managing multi-fam-ily properties has its challenges. Two of the most important - keep-

ing residents happy so they keep paying rent (aka - your direct revenue stream and job security) and simultaneously pleasing the property owner (which almost always results in what shows up on the bottom line each month and at the end of the year). In this article, we won’t be covering resident relations, but will be focusing on shining in the owner’s eyes and increasing your property’s bottom line. Whether you work for the owner or are the owner, con-sider these tips to decreasing expenses and increasing revenue - resulting in a health-ier NOI come year end.

Outside ServicesIn the day in the life of property man-

agement, any number of things can go wrong! They can also go right. Smooth operations don’t necessarily equate to a profitable property. One of the key areas to look at is how much you are spend-ing in outside services. This means your maintenance team, plumbers, electri-cians, groundskeepers, painters, carpet cleaners, and so forth. Having good qual-ity people you can rely on and trust is im-portant. But also, having those same peo-ple reliably deliver services at a price your current revenue stream can afford and support on an ongoing basis. I like to get at least three quotes for every project or service job I’m planning to give to some-one. That way, you have a better chance of knowing what rates and pricing is com-

petitive in the market for whatever service you need. Now, if you lock in great pric-ing for your “go-to” people, and you work well together - perfect! Keep it moving that way. But if performance is down and the cost is too steep, it may be time to start

looking for someone new. By the time you add up all the labor, material costs, taxes to services rendered it’s possible to have bitten off more than you can chew! If so, dial it back and implement some imme-diate changes. I like to keep my options open, and not get stuck in long term con-tracts in the event something goes wrong and I’m not happy with either the service or the end price showing up on the bill. The larger the property (in units), the eas-ier it is to slip on these expenses because gross revenue coming in looks good as a big round number. But when you start de-ducting everything coming in, it may not look so good any more.

Maximize RentsCollecting rent on time from every res-

ident at your complex affects cash flow and is vital to the financial health of your property. But it’s not just collecting that

rent and depositing it in the bank that counts. It’s how much you collect (along with your vacancy rate) that is significant. This is where we look at factors that can draw greater rents to a property that may be underperforming financially. So how can that be accomplished?

Part of it has to do with local market conditions and the time of year, we’d be foolish to say otherwise. But the other parts are having a unit that is desirable to

live in in the first place, along with good old fashioned salesmanship - a warm per-sonality and an on your game profession-al approach that nails it when it comes to leasing.

First, the unit itself. It’s not just about doing a turn, where a little paint and cleaning are enough anymore. If you have an established property, chances are pretty great you’re competing in your lo-cal market with brand new developments that have a “newness” you don’t. Residents like shiny and clean and smelling good

and new, in addition to everyday func-tion, location, amenities. Amenities ac-tually have far less impact that they used to. Residents care about them, but not as much as they do about the unit they live in and call “home”. Let me ask you, what are you doing to make it feel like home to a prospect? Their home, not yours. Go shopping. Buy some simple staging items to spruce up the kitchen counter. Get a plant, a place at, some candies, make it

look like an inviting presence which you then leave behind as a house warming gift. Put your sign in sheet next to it with your business cards. But the core of the unit has to “sing” rent me! Is it spotlessly clean? Did you replace anything old and worn out? Spend the money and upgrade all the appliances to stainless steel. Mist resident prefer the stainless. White can be okay, but still look dated. Black, makes the room look small and closed off. Go the extra mile and get an interior design-

Page 9: Rental Housing Journal Metro April 2016

FIND EVICTIONS STESSFUL?FIND EVICTIONS STESSFUL?

Full FED ServiceFirst AppearancesSmall Claims

[email protected]

9

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Rental Housing Journal Metro · April 2016

If you manage a property where music is played in a common area like a club-house, pool or fi tness center, you need

to be aware of copyright implications. As a copyright attorney, I have helped my property management clients comply with public broadcasting licensing require-ments, which can be surprisingly compli-cated. Here are some of the most common questions and answers.

Q: What is copyright?A: Th e Copyright Act gives artists, au-

thors, composers and publishers the ex-clusive right to reproduce and publicly perform their work. A small business, in-cluding an apartment management com-pany, that plays music using any type of device engages in a “public performance” under the terms of the Copyright Act. Th erefore, unless the apartment complex is exempt, it needs permission to play the music. If work is reproduced or publicly performed without proper permission, the conduct may constitute copyright infringement and subject the infringer to damages.

Q: I got a letter from ASCAP. What is ASCAP?

A: ASCAP, BMI and SESAC all are “Performing Rights Organizations,” or “PROs,” that collect copyright roy-alty income on behalf of songwriters and music publishers when a song is publicly broadcast.

Q: I already subscribe to ASCAP, but now I got a letter from BMI? Aren’t we covered already?

A: Most songwriters are members of one of the three PROs. Accordingly, a sub-scription to one PRO provides a license to some, but not all, of the music that would be played on a radio. If you need one sub-scription, it’s likely you need all three.

Q: Is our clubhouse really “pub-lic?” Aren’t these private areas not subject to public performance re-quirements?

A: Th e copyright laws give copyright owners the right to control public (but not private) performances of copyrighted ma-terial. According to the statutory defi ni-tion, a sound recording is performed pub-licly when played “at a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and its social acquain-tances is gathered.” Th ere are certainly arguments that common areas within an apartment community are not “public” for purposes of creating public performance liability. No court has ever published an opinion ruling on the question of wheth-er community rooms, swimming pools or exercise areas are “public.” Pending reso-lution of these questions, most property managers choose to pay the PRO fees in order to avoid the risk of being sued and held liable for copyright infringement.

Top Questions Regarding Music

Licensing for Rental Properties

By Amanda Hyland

continued on page 18

Page 10: Rental Housing Journal Metro April 2016

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Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

Dear Maintenance Men:I am going to university and want to use

my DYI skills to supplement my income.  Being that I live in a college town, there are a lot of rentals aimed at students.  Since students are sometimes hard on their liv-ing quarters and move a lot, I fi gured there might be a maintenance market for repairs and making rooms and rental units rent ready.  I don’t have a lot of money to invest in tools and want your recommendation for the minimum I might need tool wise to get started?

Bryan

Dear Bryan:Good thinking Bryan, you might just

be on to something; students can be a bit hard on rental units! Keeping in mind that as a college student yourself, you have limited funds, so other than a cordless drill, we will leave power tools out of the picture. Th e majority of the repairs will involve drywall, plumbing and cleaning. Other than light bulbs, leave the electrical to the pros.

Basic Tools• Retractable utility knife• 5 in 1 paint scraper• Drywall saw• Drywall mud and tape

• Bucket• Hacksaw• Claw hammer• Tape measure 25’• Caulking gun• 6 way screwdriver• Adjustable wrench• Channelock tongue & groove pliers • Small hand snake for bathroom sinks. • Toilet plunger• Broom and dust pan• Gloves

• Flashlight• Safety glasses• Step stool• Cordless drill/screwdriver

Th is is a limited tool set used for light duty work. Try to buy quality tool. Many can be found at garage sales for a fraction of the retail price. With these tools, you will be able to change a faucet, repair dry-wall holes, unclog bath sink drains, caulk bathtubs, haul trash etc.

Dear Maintenance Men,I am planning major remodel work to

my 4plex and need some advice. My con-tractor has told me not to worry and he will have everything under control but I know that city inspections can cause seri-ous delays if we are not ready for them or do something wrong. I am not an expert or experienced in construction, what should I watch for as far as the actual inspections are concerned?

Bob-

Bob,It is not oft en we are able to share our

experience on the actual General Con-tracting and building side of our business so, thank you for your question.

We have listed the top reasons why pro-fessionals do not pass inspections taken from a 2015 JLC (Journal of Light Con-struction) survey.

Foundation: Improper reinforcement or support of rebar

Wall Framing: missing fi re-blocks, hold down straps etc.

Floor framing: missing anchor bolts, sheeting nails missing joist.

Trusses: bracing not installed, improp-erly connected to wall plate

DEAR MAINTENANCE MEN:

By Jerry L’Ecuyer & Frank Alvarez

Maintenance Tools & City Inspections

continued on page 13

Page 11: Rental Housing Journal Metro April 2016

11

Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

ping. This simple project can reduce en-ergy bills by up to 30 percent and ensure that air remains inside the units.

Upgrade thermostats: Allow residents to moderate electricity and gas usage by upgrading to programmable and / or Wi-Fi-enabled thermostats. The thermostat can adjust to their schedule manually or automatically through a convenient app on their smartphone. Tenants will save an average of 10 to 12 percent on heating and 15 percent on cooling bills, and you may be able to offset part of your investment by taking advantage of rebates.

Switch to LEDs: Increase savings eas-ily by converting to LED lighting, which uses approximately 84 percent less ener-gy than incandescent bulbs and lasts 25 times longer. Install LED lighting in in-terior fixtures, pathways, hallways and parking garages. Also consider decorative LED options for communal areas. LED technology is integrated in a variety of lightbulbs and fixtures, allowing for an easy transition and customization for the property.

Invest in HVAC: Switch to high-effi-ciency, ENERGY STAR®-certified units and reduce air-conditioning energy usage by up to 50 percent. Maintain the lon-gevity by cleaning the evaporator coils and drain channels to prevent potential clogging. These practices will reduce un-necessary wear and tear on the AC unit. Take extra steps to improve the air qual-ity for residents by having maintenance change air filters regularly, at least every 1-3 months.

Conserve WaterTend to the bathroom: Reduce water

usage by updating toilets, showerheads, faucets and additional bathroom acces-sories with WaterSense-labeled products, which are approximately 20 percent more efficient. Excessive water usage can be a

sign of leaky plumbing, so inspect plumb-ing fixtures for leaks annually to avoid water damage and potentially high out-of-pocket costs.

Update water heaters: Upgrade water heaters to newer units that are compliant with more energy efficient standards that went into effect in 2015 – some of which can have the output of a 50-gallon unit with the footprint of a 30-gallon unit. This is an excellent option when hot water is needed and space is limited. Insulate the water heater with a blanket for extra savings.

Maintain the landscaping: Maintain a green space and reduce water usage with a low-water-use landscaping or xeriscaping plan. Mulch and drought-tolerant plants, such as coneflowers, daylilies or butterfly weeds, can help reduce and / or minimize excessive watering. Adding decorative gravel and well-aerated soil will enhance a walkway or landscape bed, while also conserving water and adding nutrients to the green space. Improve water efficiency even further with smart irrigation tech-nology. Smart controllers can reduce an-nual bills as much as 15 percent by water-ing plants only when necessary.

By Scott Matthews, Director, Strategic Accounts, The Home DepotScott is responsible for managing national ac-counts and e-commerce while overseeing busi-ness-to-business relationships. During his 25 years at The Home Depot, he has served in a variety of roles and capacities, including Re-gional Pro Sales Manager, District Manager and Store Manager.

Eco-Friendly Upgrades ...continued from page 1Common Tenant Complaints ...continued from page 1

relationship making the wrong impres-sion. In case you are not capable of tak-ing proper care of the hygiene, maybe you should hire a professional cleaning com-pany at least a week before the scheduled moving day. Make sure no stains and dust will greet your tenants as they go through the door.

Something does not work properlyAppliances and facilities just stop

working sometimes; it happens no matter that no one wants it. Test all domestic ap-pliances in advance to prevent complaints from your new tenants. In case the same person has been renting your property for a certain period of time, make sure you respond immediately to their signal. A clogged sink or an oven which can-not heat may be or not be your tenant’s fault, but you have to handle the matter in both cases. Check the issue as quickly as you can and make an appointment with an expert if you are not capable of deal-ing with the problem by yourself. Warn the renter when to expect a plumber for example and pay for the service. You can figure out who is financially responsible after the specialist has done their job and things are under control again.

Pest complaintsRegardless of how clean the tenant

keeps your property, unfortunately pests can always invade it due to many reasons other than irregular cleaning. If the adja-cent apartments, for example, have been infested with mice or bugs, this can turn out to be a great problem. As a decent landlord, you should react immediately to such complaints. The best thing you can do when it comes to pest control is to hire an exterminator to handle the pests

in your property. It will be wise of you to schedule a second appointment after 7 – 10 days and thus ensure the safety of both your property and tenants.

Inoperative keysIf you are not a first-time landlord, you

should not at all be surprised by such a complaint from your tenants. Keep an ex-tra set of keys at your disposal for emer-gency situations. Should you find that the lock is hard to open, it would be wise to change it as soon as possible or you may have to change the whole door if some-body gets locked inside eventually. Buy-ing an installing a new lock promptly will make things much easier for you and your tenants. Do not forget to change the locks every time when a tenant ends your con-tract is an additional security measure.

Doing your best to help your tenants will always be appreciated, so do not hide when they complain about something. After all, renting a property is a kind of a job and you will have to do it well if you want to get your rent on time.

Page 12: Rental Housing Journal Metro April 2016

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Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

How Wireless Security isTransforming the Real Estate Industry

The real estate industry has long been faced with a problem: “You can’t be everywhere at once.” It feels

impossible to monitor your property and staff , without forgoing your other tasks. But now, with new wireless technology there is fi nally a solution. A professionally monitored wireless security system gives real estate professionals essential insights into their units. More and more real estate professionals are using wireless alarm sys-tems, to protect vacant homes, keep an eye on their staff , prevent water damage and provide extra value to their tenants.

Keep an Eye on Vacant Properties:When you’re not around, what’s hap-

pening to your properties? You hope that the answer is “Nothing”, but you worry. What if someone has broken into your home? Between squatters and cop-per thieves, there are many reasons to be concerned. Copper theft can cause tens of thousands of dollars in damage. In the old days, a wired security system was the only option, but the contract and need for a landline phone usually made this a non-starter for a vacant property. With a professionally monitored wireless secu-rity system at the property, you can keep this worry at bay. When your property is monitored, if you ever have a break-in, the police will be on their way immediately. Th e siren will sound, and the would-be-burglars won’t have time to steal from you.

And when you’re selling the property, a security system is an easy way of letting realtors in and out. You can set up a spe-cifi c PIN for them, and you’ll be able to see when they come, and how long they stay! With a home security system, you’ll know that the property is protected by more than just a lock box and a lock.

Know when your maintenance staff comes and goes:

With an alarm system, you can create custom PINs that will let you know when contractors enter and exit. Many of the property managers we spoke with told us that they use this feature to make sure work that needs to get done gets done. Know who has come and gone from what apartment or home easily. You can make

sure that your maintenance needs are addressed, that your staff is doing its dil-igence, and just in case, you have a record of it all!

If you and your renters agree, you can also set up a specifi c maintenance PIN. Th e maintenance PIN can be added for all units and will not be able to be seen by the tenants. Consequently, you can use the same number for each property, without security risk, by adding a main-tenance PIN.

Stay on top of your pipes and plumbing:

New wireless security systems, let you monitor the environment in your prop-erties. Worried about freezing pipes? No need with a freeze sensor. You’ll be able

to access the temperature at the property remotely, you never need to stress, or get in your car and drive down to check the property out. Assurance at your fi ngertips.

And it’s not just the freezing pipes that a security system helps you combat. Nev-er worry about whether or not the pipes burst, or if a washing machine is leak-ing. To the average apartment, water can cause $11,000 or more worth of damage. Water damage is expensive and time con-suming to repair, but water sensors let you know as soon as they detect even a small amount of water. Th is way you can prevent any damage from happening and move on with your day.

Provide Extra Value to Tenants:With wireless security systems, once

you buy your system, they belong to you. Th erefore, you can do anything you’d like with them. Th is includes providing sys-tems to your tenants. It’s easy to transfer ownership. Alternatively, many property owners and landlords rent the securi-ty system as part of the apartment. You can either have the tenant subscribe to the monitoring service, or you can take care of this for them! Your tenants will love the extra security that comes with your homes!

Page 13: Rental Housing Journal Metro April 2016

13

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Rental Housing Journal Metro · April 2016

Roofing: over driving of nails in shin-gles, missing nails, incorrect felt

Window and Door: improper flashing, inadequate fire rating, improper weath-er stripping

Handrail: Improper height or spacing

Plumbing: missing nail plates, improp-er pipe support

Electrical: missing grounds, GFCI protection, labeling of circuits

Decks: deck not built according to the plans, improper handrail installation

Dear Maintenance Men:I have been contemplating the purchase

of a high pressure sprayer for my employ-ees to use in maintaining and cleaning around my apartment buildings. Because these pressure washers produce a powerful stream of water, I am worried about my employees hurting themselves or damag-ing the building. What size machine do you recommend and how safe are they to use? Should I rent one first?

Julia

Dear Julia:As with any large ticket items it is al-

ways prudent to “try before you buy”. Fortunately there are a variety of rental places to choose from which carry all siz-es, makes and models.

A rental yard will often use the best and longest lasting machines. Most times these companies can provide you with the best information on the products in regards to maintenance, wear & tear, life expectancy and performance.

In regards to workers safety, look at the operators manual for the best advice on personnel safety wear and use. These ma-

chines can produce a very powerful jet of water capable of ripping through cloth-ing, skin and even break small bones. You should always wear goggles, leather gloves, and steel toe leather work boots with nonskid soles.

Stucco & wood siding is especially sus-ceptible to damage when using a power washer. Use the lowest setting and wide spray nozzle to avoid damage. Lightly mist stucco surfaces if cleaning is your objective. Keep nozzle adjusted to spray not stream and approx. 2’ to 3’ away from the surface.

As with most things, proper training will help insure safe usage of power tools.

Bio:Please call: Buffalo Maintenance, Inc for mainte-nance work or consultation. JLE Property Management, Inc for management service or consultationFrankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01460075Certified Renovation Company www.BuffaloMaintenance.com www.ContactJLE.comwww.Facebook.com/BuffaloMaintenance

Dear Maintenance Men ...continued from page 10Investing to Go Green or Make Green ...continued from page 1

table local appraiser there are very few green upgrades that will increase the val-ue of the property itself. “Vinyl windows may be one of the best upgrades you can make,” said the appraiser “tenants like them because it saves money on heating. Plus it will add to the appraised value.” I asked her to what level solar panels, tank-less water heaters, and high efficiency fur-naces add to the value of real estate. Her answer was “none”. Every buyer expects appliances, furnaces, and water heaters to be in working order. It does not mat-ter if they are high efficiency as long as they work.

Appliances and heating/cooling sys-tems may not add value to your property at sale but may add value to your bottom line. The potential savings on owner paid utilities such as gas, electric, and water/sewer might make some “green” upgrades worth the investment. As a landlord you should consider investing in upgrades that either make or save you money. If you are paying the utility bill for units being heated during Oregon winters, putting in a high efficiency furnace might be a good long term investment for you. If you do not pay for the utilities, you will be spend-ing money on upgrades that will only save tenants’ money unless you plan on pass-ing that expense on to the tenant in the form of a rent increase or utility bill back.

Most small plexes are not separate-ly metered for water and sewer and the owner is likely responsible for the water/sewer bill. If that is the case making small changes like low flow toilets, low flow

shower heads, and low flow faucet aera-tors could save you a substantial amount of expense on your water bill over time. Another consideration is low mainte-nance landscaping. Grass may look good but does come with added upkeep. Look at your annual landscape expense for the last few years. You may find that lower maintenance landscaping which consists of native plants, shrubs, and trees will save you money over time.

Think about your short and long term financial goals and ask yourself if making “green” improvements to your properties is putting more “green” into your pocket.

Chris is Small Plex Bro-ker at SMI Commer-cial Real Estate, LLC . Please contact Chris if you would be interest-ed in receiving SMI’s free bi-annual news-letter which includes the most comprehen-sive rent and vacancy survey in the mid-val-

ley, the SMI Apartment Update. 503.390.6060. [email protected]

Page 14: Rental Housing Journal Metro April 2016

Natural gas is comfortable, clean burning and affordable. It’s also in high demand, which makes incorporating natural gas service into your next project the right move. After all, buildings are easier to sell and lease when they come with the amenities tenants want. And NW Natural is

standing by with the incentives, and the technical and engineering guidance to make adding natural gas to your next project more affordable. Call 503-220-2433 to connect with one of our experts, or find out more at nwnatural.com/multifamily.

*Renter preference acquired from a 2014 Market Strategies International discrete choice modeling study. An 80% preference for gas was reported among Portland tenants paying $1,200+ in monthly rent. For more details visit nwnatural.com/multifamily. **Limited incentives available and distributed on a first come, first served basis.

10695_NWN_MultiFamily-Rental_Housing_Journal-Builder_SNAP.indd 1 3/9/15 12:57 PM14

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Rental Housing Journal Metro · April 2016

Multifamily Landlords Win Some ...continued from page 3

sion to a month to month agreement.

• Th e terms of a fi xed term tenancy, in-cluding the amount of rent, may not be unilaterally amended by the landlord or tenant.

Other items amended with HB 4143 include:

• Notices and penalties for smoking: Fees may be assessed for smoking in a clear-ly designated nonsmoking unit or area of the premises. Th e fee for a second or any subsequent noncompliance may not exceed $250. A landlord may not assess this fee before 24 hours aft er the required warning notice to the tenant.

• Th e legislature also fi xed a small prob-lem that occurred with new rules re-garding changes for emergency ex-its in apartments established in the 2015 session.

· In ORS 90.460(2), it removed the language requiring a landlord to pro-vide at all times during the tenancy “a route of exit from a bedroom, other than the main entrance to the bed-room, for use during an emergency.”

· Th e language now requires the land-lord to provide “a route or routes of exit from each bedroom and, if required, a secondary route of exit from each bedroom, for use during an emergency. Th e routes of exit must conform to applicable law in eff ect at the time of occupancy of the building or in eff ect aft er a renova-tion or change of use of the building, whichever is later.”

Th is change helped landlords who had permits for legal bedrooms that may not have had an immediate outside exit, and whose design had been approved by

building offi cials.Th e session also included a new bill

regarding inclusionary zoning, SB 1533, which originally was also included in HB 4001. Inclusionary zoning is defi ned as zoning that requires permanently aff ord-able residential units (inclusionary units) be set aside in either a new development or a substantial rehabilitation in exchange for a bonus density.

SB 1533 was a part of a ‘package deal’ of housing related bills instigated by House Speaker Kotek. Th e version that passed included many key incentives which earned the support of many building and development advocates.

SB1533:• Removes the preemption regarding lo-

cal control against inclusionary zoning.

• Requires 20% of the units to be af-fordable to gain the benefi ts of inclu-sionary zoning.

• Applies to units that are 80% MFI or above.

• Has a number of incentives that can be off ered (including tax abatement).

Th ese were the key landlord tenant bills that passed in the 32 days of the short legislative session. Tenant advocates were very disappointed as their fi ght for aff ord-able housing and more substantial rent control appeared somewhat stymied in the Senate. Landlords beware; the tenants will be back in 2017 to fi ght for more help in controlling the fast increasing rents, es-pecially in the major metropolitan areas. Th e battle for regulated aff ordable hous-ing is far from over.

Unfortunately, in the fi ght to provide aff ordable housing for low income Or-

egonians, laws will be passed that aff ect all tenants and this could hurt landlords in the future. Residential landlords must stay engaged and be involved in the up-coming local elections for Oregon Sena-

tors and Representatives if they want to protect their investments.

More information at: 308.WarrenAllenLLP

Page 15: Rental Housing Journal Metro April 2016

Advertise in Rental Housing Journal MetroCirculated to over 6,000 apartment owners, on-site and

maintenance personnel monthly.

Call 503-221-1260 for more information

PublisherWill Johnson – [email protected]

Designer/EditorKristin Flores – [email protected]

Advertising SalesWill Johnson – [email protected]

Terry Hokenson – [email protected] Surratt – [email protected]

Rental Housing Journal Metro is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in

Investing & Real Estate Investor Quarterly

w w w . r e n t a l h o u s i n g j o u r n a l . c o m

The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

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Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

HUD Seeks to End Discrimination ...continued from page 7

a criminal history must be able to point to a “substantial, legitimate, nondiscrim-inatory interest” served by the policy. Th e landlord must also be able to prove that the policy achieves those goals. A housing policy must take into consideration the nature and severity of the crime, and the amount of time that has passed since the criminal conduct occurred

Whether the discrimination is acciden-tal or intentional, during screening or just at the inquiry stage, the landlord or prop-erty manager is still at risk of a discrimi-nation lawsuit. Th e best practices are:

• Do not impose blanket bans on rent-ing to those with criminal history or arrest records.

• If there is evidence of a conviction, consider the nature and severity of the crime and how long ago the criminal conduct took place.

• Ensure everyone who interacts with applicants is trained well on current Fair Housing policies.

• Keep screening policies pertaining to arrest records and criminal history specifi cally related to safety of persons and property. Th e policy must distin-guish between criminal conduct that indicates a demonstrable risk to resi-dent safety and property and criminal conduct that does not.

• Obtain and use a standard screening policy in compliance with Fair Hous-ing and HUD regulations, and apply it equally to anyone who applies. You may want to consult an attorney or housing specialist to develop a rental criteria relating to criminal conduct.

Keep in mind that HUD has not stat-

ed that criminals are a protected class. HUD recognizes that housing providers have an interest in providing safe housing to all their tenants. Th ese new guidelines do not require landlords to rent to con-victed felons, but do require landlords to examine the criminal history (if any) of its applicants with more care than before. Naturally, there will be applicants who refuse to provide details about their crim-inal history or provide inaccurate infor-mation revealed by a screening company. An incomplete or inaccurate application may be denied.

Following best practices will save you thousands of dollars in litigation and court costs, so it is well worth the eff ort. If in doubt about a policy, contact your le-gal resource for help dealing with tricky questions related to this new HUD guid-ance and the Fair Housing Act.

Evan L. Loeffl er is the principal attorney at the Loeffl er Law Group PLLC in Seattle,

Washington. His fi rm’s practice emphasizes landlord-tenant relations.

www.loeffl erlawgroup.com

B&W

Page 16: Rental Housing Journal Metro April 2016

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Rental Housing Journal Metro

Rental Housing Journal Metro · April 2016

Increasing Your Property’s Bottom Line ...continued from page 8

er in to help you spec out the unit turn with the goal of maximizing rents with a new lease. Don’t lock in a one year lease that’s going to end at a time of year un-desirable for leasing. Be open to adjust-ing the lease term to say 7 months, or 10 months. Whatever works so you expire at peak leasing times. Th e exterior has to be impeccable as well. Always have your cleaning crew on top of every detail when you’re about to lease a vacant unit. It mat-ters. Th ese are just a few of the things you can do aesthetically to improve your units in such a way as to draw bigger rents.

Th en there is salesmanship. Who you put to the task of making that fi rst im-pression and communicating with pro-spective new residents will either advance you or kill you! Th e longer a unit sits va-cant because it doesn’t get leased is mon-ey out the door and off your bottom line. Find great people (or a great person) to do your leasing and reward them generously for doing so. Th is keeps motivation high and keeps your property showing green! Don’t assume the best person for the job is the property manager. Not always true. It could be one individual you know who has a talent for such work and all they do for you is lease. It doesn’t have to be that way. I’m just saying that who you choose for this particular role in the operations and management of your property is ab-solutely key!!! A good “sales person” can convert features to benefi ts in ways that are received well during a showing. I like to say, if the deposit is getting collected and the lease inked on the fi rst visit - you’ve got a strong closer. Getting them approved and issuing keys as well for im-mediate move in is icing on an already sweet cake. A rock star leaser can do that. Find that person! Th ey are one of your

property’s most valuable assets. A per-son with good salesmanship abilities can also drive rent rates up a notch, and every dollar counts on you year-end statement. Completely aff ects your overall proper-ty value. My suggestion - when you fi nd that person, bonus them well. Give them that “carrot’!

A well prepared unit along with an ex-ceptional leasing professional will direct-ly impact your bottom line.

Organization and Due DiligenceTh is last point I’m going to mention

has everything to do with organizational skills, keeping the property books in or-der, knowing where to fi nd things, stay-ing on top of the numbers and how your property is actually performing month to month. Don’t wait until the end of the year or tax time to get your ducks in a row and see how it all turns out. Can you spell disaster? No, someone should be assigned the task as scrutinizing the income and the expenses each month, and looking at what can be changed or adjusted for max-imum productivity and profi t. If you don’t

know your numbers, or if they aren’t ac-curate - how can you manage your prop-erty eff ectively and make money? Are you using the right soft ware program to help you with this? How long has it been since you even looked at new soft ware options out there (with so many talented computer geeks coming up with amazing programs!) that could be better for your property manage to and portfolio track-ing tasks. Or are you still on a dinosaur system, because it’s just what you’ve used for years? Th at dinosaur could be costing you money!

Th en there is the person who is actually putting the numbers in. Is it getting done regularly, on schedule, and is it accurate? Or are things falling through the cracks? Again, good people are an asset to you. Value and appreciate them. Train them. Create a positive work environment that makes them want to dig into those num-bers and crunch them for you! Lunch now and then, Starbucks, cookies, a gift card of appreciation. I see this people side of your business (because your property is your business) as due diligence. Th ings you

need to do to arrive at a specifi c outcome. Th at outcome is profi tability. We’re all about the bottom line, but what are you doing to improve it?

Taking these things into consideration for each of your properties will become like second nature once you get the sys-tem in place. Whether you win one prop-erty it multiples, it’s your system that you must improve to create assets that per-form well. Th ere are many other factors I could elaborate on, but these are some of the basics that I hope will give you a fresh perspective and jump start to putting a fi ner pencil to that operating statement. Th e one that can get you more money to buy the next property, when you need it. Because you will have proven you know how to not just repay debt service, but take a multi-family property and improve its performance over time with your top rated management skills. Investors and partners will love you, and so will your bank account!

Tami Cox is a Business Consultant and Commer-cial Real Estate Lender that has been working with investors and business owners for over 16 years - helping them become more profi table, grow, reach their business goals, and improve their bottom line. You can learn more about her services at www.sizzlinghotbusiness.com or reach her by phone at 952-491-0030.

Page 17: Rental Housing Journal Metro April 2016

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Rental Housing Journal Metro · April 2016

Many apartment communities strive to create a welcoming of-fi ce environment in order to put

prospective residents at ease. From aro-matic scents and freshly baked cookies to a warm fi re, these comforts communicate a feeling of “home.” However, when man-agers have an offi ce connected to their apartment or even inside their apartment home, sometimes the lines between the professional offi ce and an employee’s per-sonal space can blur.

QI supervise several apartment build-

ings in which many of my managers work out of an offi ce attached to or inside their apartment. Some of these employees have young children and pets. Oft en when I call these properties, I hear a dog barking or a child crying, and not always in the background. Sometimes I am even put on hold while the manager deals with an ur-gent child-related matter. I am concerned about these situations and how they are aff ecting residents and prospective rent-ers. However, I’m not quite sure how to deal with this issue since these managers have a personal residence attached to or combined with their offi ce.

AYou have a valid concern and it needs to

be addressed. Yet, much respect and con-

sideration are required when dealing with people regarding their pets and children. - ESPECIALLY their children! However, your employees must be made to under-stand you have certain expectations re-garding offi ce protocol during business hours. If your employees are regularly allowing their children or pets to be in the leasing offi ce during these hours, then this is a disruption to the leasing process and an inconvenience to your residents or prospective renters.

Regarding pets, this could end up be-coming a liability for your company, community and/or owner. Many people have pet allergies and/or phobias. When someone is looking for an apartment, they do not expect to enter a leasing of-fi ce; which is a “place of business,” and

fi nd themselves confronted by a dog. Th ey also aren’t thinking they have to be prepared with a medication to counteract their body’s response to an extreme cat allergy. Th ey are expecting a profession-al business setting where they plan to get information about renting an apartment.

As with any other offi ce policy or pro-cedure, something in writing regarding these issues will help your employees know what the expectations are. It might seem like “common sense” to you for your managers to keep their personal lives sep-arate from their professional lives. On the other hand, when people “live where they work,” it’s not always easy to keep the lines clearly defi ned; these managers have an obligation to their families as well as to their residents and employer.

No matter what type of situation you are dealing with on site, it’s important to keep the lines of communication open. Th is will ensure the onsite managers un-derstand your expectations and help reas-sure them you are committed to provid-ing the support they need. Th at way, they can handle their responsibilities at work, as well as at home, and put appropriate distance between the two. Aft er all, em-ployee turnover can have an even greater impact on the dynamics of your com-munity and bottom line, than apartment turnover.

If you are interested in leasing training or have a question or concern you would like to see addressed, please reach out to me via e-mail. Otherwise, please con-tact Jancyn for your employee evaluation needs: www.jancyn.com

ASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica Former owner of Shoptalk Service Evaluations Consultant to Jancyn Evaluation ShopsE-mail: [email protected] © Joyce (Kirby) Bica

sk The Secret ShopperPets & Children

Page 18: Rental Housing Journal Metro April 2016

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Rental Housing Journal Metro · April 2016

Music Licensing for Rental Properties ...continued from page 9

Q: Do I need to worry about these is-sues if we exclusively use Pandora at our pool and in our gym? We never use the radio.

A: Pandora has partnered with Mood Media to provide rights to Pandora mu-sic such that the business owner does not need to separately obtain PRO rights. If you obtain a license from Mood Media, you should not need a separate license from a PRO for Pandora music.

Q: What about Spotify? Or Apple music?

A: If you have not negotiated a license specifi cally for business use of the music, such as through Mood Media, you prob-ably need a license. In fact, some exemp-tions that pertain to radio transmissions do not apply to streaming music. Any public performance of music by using streaming services requires a license.

Q: I heard that there are certain ex-emptions for businesses that only play the radio. If I only play the ra-dio, do I need to pay any PROs?

A: If you are playing music from the radio, including satellite radio like Siri-usXM, your property might fall into an exemption. As noted earlier, streaming music does not provide any exceptions.

Q: How do I know if I fall into the ra-dio performance exemption?

A: Congress exempted certain types of businesses from compliance with the copyright laws, so long as certain con-ditions are met. Areas less than 2,000 square feet are exempt. Areas larger than that are exempt if ALL of these require-ments are met: (1) No TV is larger than 55 inches, (2) there is no more than one

TV in any room, (3) no more than four televisions are in the establishment, (4) no more than six speakers are in the es-tablishment and (5) no more than four speakers are in any room.

Q: I’ve decided to pay ASCAP the licensing fee. How do I know if I’m getting a fair deal? Can I negotiate with the representative for a lower rate?

A: Apartment complexes are charges fees based on the number of units in the community. Th ese rates are set by the courts and are the same for everyone. For example, for 2016 ASCAP charges $351 annually to provide a license for a com-munity with less than 150 units, and $421 to provide a license for a community with 151 to 500 units. Discounts are typically off ered to property managers who enter into licenses for multiple communities.

Q: I received a letter from BMI de-manding that I pay fees. Can I ignore it?

A: Yes, but you are putting your com-pany at risk of getting sued for copyright infringement. Although it is not neces-sarily likely that a lawsuit would occur, it would expose the infringer to signifi cant risk. Th e law allows the copyright owners to sue for statutory damages in a range between $750 and $30,000 per individual copyrighted work infringed, i.e., for each song played. Th e liability to the proper-ty management company will be much greater in court than the licensing fees the PRO requested.

I have helped clients with other chal-lenging questions as well. For example, some property owners are concerned about fee calculation on properties with high vacancy rates. Other owners are

concerned about public areas that are not used. Another interesting question is what to do when the cardio equipment in the gym features individual televisions. Do these count towards the four televi-sions? Th ese are all tricky questions with-out black and white answers. Consult an attorney before entering into a licensing agreement or deciding that no agreement is necessary.

Amanda Hyland is an attorney with Taylor En-glish Duma LLP in Atlanta. She counsels clients on a variety of intellectual property matters, includ-ing trademark registrations. She may be reached at [email protected].

Page 19: Rental Housing Journal Metro April 2016

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Rental Housing Journal Metro · April 2016

Window Film ...continued from page 2

Of course window film can be used in residential (single family and multifami-ly) applications as well. Say you wanted to renovate an apartment complex in Phoe-nix and the windows are 25 years old. Rather than buy new windows, you can use window film and market the advan-tage of lower electrical bills to potential tenants. Owners of residential buildings in hot climates are responsible for main-taining the air conditioning units, so re-ducing the solar heat load with window film makes a lot of sense since it relieves stress on air conditioners.

Secondary benefits of window filmAlthough reducing a building’s solar

heat intake is the primary purpose of

window film, it has other advantages as well. It relieves the stress and resulting wear and tear on the cooling unit, and re-duces the need for individual fans, saving energy and money. Most of these films also almost completely (up to 99 percent) reject UV rays, extending the lifetime of carpeting and furniture in addition to mitigating the harmful effects UV rays on people. As the technology as developed, many film manufacturers have marketed other dual benefits their product.

Security and windstorms: The 3M company has developed a film series that will work effectively in wind storms of up to 185 miles per hour and will resist breaking and entering, if installed by an experienced and certified installer. This

micro layered technology is typically blast and tear resistant (see their website for examples).

Anti Graffiti / Surface Protection Series: 3M also offers products that are graffiti and scratch resistant. They can be either 4 or 6 millimeters thick and offer protec-tion from taggers in high risk areas by us-ing an invisible sacrificial layer to protect glass from acid etchings, scratches and tagging. This layer can also protect win-dow surfaces from regular wear and tear.

This product solved a recurring tagging problem we had at a commercial building we manage in a high risk area. Vagrants had repeatedly defaced the windows us-ing keys and other materials. We re-placed the windows twice before discov-

ering this window film. That was eight years ago. The surface is scratch resistant and has held up well. Though there is evi-dence of attempts of attacks to the surface since the installation, the perpetrators eventually became frustrated by the lack of results that they stopped attacking the building altogether. If, perchance, they have some success, we can always strip off the film and replace it rather than install-ing a new window.

The film offers the added benefits of heat load protection (these windows are on the south side), and privacy. The window film is dark and reflective which makes it difficult to look into the space, (preventing a thief from “casing the joint” by looking through the windows.)

Saving you moneyIn select situations, window film can

be used to reduce heat load, the stress on HVAC systems, electrical bills, glare and crime. It also distributes light better in some applications. As you troubleshoot operational problems and/or attempt to reduce energy needs, consider the use of window films as an economical alternative to window or cooling unit replacements.

Note: There are any more uses of win-dow films. In a future article we will address how window films can be used decoratively or to increase privacy in the interior of buildings with glass walls.

Page 20: Rental Housing Journal Metro April 2016

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