rental housing journal valley march 2016

Circulated to over 6,000 apartment owners, on-site and maintenance

personnel monthly.

Call 503-221-1260 for more information

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2. Oregon’s Bill 4134 and How it May E� ect You

Commercial Real Estate Experts – Mopderate Expansion, Easing Prices Expected in 2016

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Rental Housing Journal Valley March 2016

EUGENE · SALEM ·ALBANY · CORVALLIS

continued on page 5continued on page 4

continued on page 5

3. Ask the Secret Shopper – Don’t Have A Vacant Apartment to Show?

6. Rents to Flatten in 2016

Fair Housing Facts & TipsThe Fair Housing Act protects peo-

ple from discrimination when they are renting, buying, or securing fi -

nancing for any housing transaction. Th e Fair Housing Act specifi cally cover’s dis-crimination because of race, color, nation-al origin, religion, sex, disability and the presence of children. (Provided by HUD)

Fair housing laws prohibit illegal housing discrimination.

Discrimination is illegal in any housing situation if it is based on, or adversely af-fects, a “protected class.” Th at is, if some-one is denied a home, is treated diff er-ently, or is harassed because of one of the reasons listed below, it is illegal.

Consistency is Key!1. Remember to be consistent within

your daily job performance & Inter-actions when dealing with residents, prospective residents and their guests

2. Never make assumptions regardinga. Disabilitiesb. If an animal is a companion or petc. Treat everyone the same!

Discrimination is sometimes deliberate or unintentional due to lack of Fair Hous-

ing knowledge toward residents, prospec-tive residents & their guests that fall into any protected class category

More oft en than not discrimination occurs during the leasing process while dealing with prospective residents. BE CAREFUL!

Th e information and purpose of leasing and Fair Housing is not to scare you out of the industry. It is an extremely import-ant part of the job performance and ex-pectation. Fair Housing classes will give

EPA Cracks Down OnLead Violations

By Jo Becker, Education/Outreach Spe-cialist, Fair Housing Council of Oregon

Late last year the Environmental Pro-tection Agency (EPA) announced it took action against 75 renovation

contractors and others to protect people from harmful lead dust and debris expo-sure, as required by federal Lead-based Paint Renovation, Repair, and Painting (RRP) regulations.

Th ese cases show EPA is cracking down on businesses and renovators who ignore federal requirements that have been in ef-fect for several years now. Th ese require-ments apply to many repairs and renova-tions done to painted surfaces in homes

and daycare facilities built prior to 1978. Pre-78 properties are of concern, as they are a major source of lead exposure that can cause lead poisoning, especially in our nation’s young children.

Why Buy Earthquake Insurance?

Many of our clients have asked us over the years if they should purchase earthquake insurance.

Th is is a diffi cult question to answer spe-cifi cally because every property is con-structed diff erently (i.e. wood, masonry, concrete, metal) and is located on diff erent soil(i.e. clay, rock, sand). Th e height of the building also makes a diff erence.Imagine the impact on a one story building versus a thirtystory unreinforced masonry build-ing.Th e age of the building, and the code requirements in every state and city, need to be taken into consideration as well.

Most importantly, building owners want to know what risks their buildings face located in the Cascadia subduction zone, a seismic area that encompasses the coastal areas of Northern California to Vancouver Island and inland to I-5.

The Impending RiskIn the cover story in theJuly 2015 edi-

tion of the New Yorker Magazine ti-tled,“Th eReally Big One:Anearthquake will destroy a sizeable portion of the coastal Northwest.”Author Kathryn Schulz pointed out, “we now know that the odds of the big Cascadia earthquake happening in the next fi ft y years are roughly one in three. Th e odds of the very big one are roughly one in ten.”

Chris Goldfi nger, professor and paleo-seismologistat Oregon State University, is an expert in seismic and tectonic studies and one of the main sources of the New Yorker article. In 2011, he also authored a comprehensive studyon the Cascadia subduction zone for the US Geological Survey based on 13 years of research that exposed a pattern of earthquakes refl ect-ed in the region’s earthquake history.

“Over the past 10,000 years, there have been 19 earthquakes that extended along most of the margin, stretching from southern Vancouver Island to the Ore-

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Rental Housing Journal Valley

Rental Housing Journal Valley · March 2016

Commercial Real Estate Experts

Moderate Expansion, Easing Prices Expected in 2016

Despite various global and domes-tic hurdles hindering econom-ic growth, steady job gains and

stable leasing demand should help keep commercial real estate activity expanding in 2016, according to the authors of an an-nual report published jointly by Situs Real Estate Research Corporation (RERC), Deloitte and the National Association of Realtors®.

According to the report, Expectations & Market Realities in Real Estate 2016—Navigating through the Crosscurrents, commercial real estate activity is forecast to gradually grow this year with demand for space holding steady across all com-mercial sectors. While commercial prop-erty values and price gains are expected to fl atten aft er surpassing 2007 peaks in some major markets, investors will still benefi t from the strong income fl ows gen-erated from new and existing leases.

Th e fi ft h annual release of the joint re-port draws on the three organizations’ respective research and expert analysis and off ers an objective outlook on com-mercial real estate through forecasts and commentary on the current economy, capital markets and commercial real es-tate property markets. A research-based assessment of the offi ce, industrial, apart-ment, retail and hotel property sectors is also provided.

“Historically low interest rates, espe-cially in treasuries, combined with com-mercial real estate’s stable prices and value make this asset an attractive investment,” says Ken Riggs, president of Situs RERC. “Looking into 2016, the commercial real estate market should moderate, which could stabilize prices.”

Vacancies are expected to continue to decline slightly in 2016 for all prop-erty types, except in the apartment sec-tor, where they are forecast to increase modestly by the end of the year as more new project completions come onto the market. Continued job growth, demand exceeding supply and limited new con-struction (outside of multifamily) should lead to rising rents and steady investor re-turns, which overall will shift away from capital appreciation as price growth levels off in many markets.

Continuing on the same slow trajecto-ry seen for many years, the U.S. economy – facing headwinds from a rising dollar, fi nancial market volatility and geopoliti-cal concerns – is forecast to grow at a rate of 2 percent to 3 percent in 2016, which is stronger than most global economies and enough to generate around two million net new jobs over the next year. Defl a-tionary pressures related to low gasoline and energy prices are expected to dimin-ish by mid-2016, in part because of robust growth in apartment rents.

“Supported by solid hiring in most parts of the country, the demand for own-ership and rental housing will continue to increase in 2016 despite another year of meager economic expansion,” says Law-rence Yun, NAR chief economist. “While supply shortages will weigh on housing aff ordability and push home prices and rents higher, the housing sector will keep the U.S. economy afl oat and lead the res-idential investment component of GDP growth by up to 10 percent this year.”

SOURCE National Association of Realtors

Oregon’s House Bill 4143 and How It May

Aff ect YouIf you have been following Oregon’s

2016 legislative session, you know that there have been two hotly debated bills

brought before our elected offi cials that will have an impact on real estate. One be-ing the Oregon’s new minimum wage in-crease which was signed into law by Gov. Kate Brown on March, 2nd 2016. Th e oth-er being HB 4143 which addresses sever-al topics having to do with rent increases and evictions. HB 4143 as of the writing of this article has passed the Oregon House and Senate and is expected by most to be-come signed into law by Gov. Brown. Law makers have added the following emer-gency declaration as the last piece of that bill making it eff ective immediately upon its signing.

“Th is 2016 Act being necessary for the immediate preservation of the public peace, health and safety, an emergency is declared to exist, and this 2016 Act takes eff ect on its passage.”

Our fi rm has had many discussions over these two bills with the general public, property owners, and other real estate in-dustry professionals and it is the opinion of most that the momentum was driven by historically low vacancies and rapidly rising rents. Th ese trends were primarily eff ecting the Portland and Bend rental markets in recent years but have made their way down the Willamette Valley into the Salem-Keizer area.

According to the speaker at an event I recently attended put on by the Salem Rental Housing Association, renters are becoming more organized. HB 4143 is the tip of the iceberg and is actually a combi-nation of HB 4143/HB 4001. Ideas from both bills were combined to make them more palatable for law makers to pass. As the calls grow louder and more frequent for tenant protections, Oregon’s law mak-ers will undoubtedly be introducing more legislation in the coming years to appease their constituents.

With the minimum wage scheduled to rise over the next several years many ten-ants will fi nd themselves with additional

income. Property owners that have been apprehensive to raise rents in lieu of scar-ing away their long term tenants may now fi nd themselves more comfortable with the idea of moving their rents to current market values. For those owners, there are a couple of important items to factor in now that HB 4143 has passed with regards to noticing tenants including no rent in-creases within the fi rst year of month to month tenancy and 90 day notice aft er that period. Also changing is the increase to 90 days notice for no cause evictions.

If you are confi dent in your manage-ment abilities and enjoy the income these properties produce for you, I would en-courage you to do a couple things. First would be to educate yourself. Make sure that you are up to snuff with changing landlord/tenant laws. If you are not well versed, join a local association like Ore-gon Rental Housing Association. Th ey have several local chapters throughout the state and can help you with the forms and knowledge that you need to protect yourself from liability. If you don’t have the time or desire to learn, seek the help of a professional management company.

For owners who self-manage and are fed up with the increasing diffi culties that new “tenant protection” legislation is cre-ating, it is my opinion that now is the ide-al time to plan your exit strategy and take advantage of a strong sellers’ market. In addition to the rents moving up, we are seeing a signifi cant rise in property values for 2-4 unit multifamily properties in the Mid-Valley.

Chris Salaz is Small Plex Broker at SMI Commercial Real Estate, LLC . Please contact Chris if you would be interested in receiving SMI’s free bi-annual newsletter which includes the most comprehensive rent and vacancy survey in the mid-valley, the SMI Apartment Update.

3



While market conditions remain strong, there may be times when you fi nd yourself in a

situation where you have no apartments to show. Maybe you don’t have a model or you’re in a make ready process with the vacant apartments that are available. Here is the question:

QI know I shouldn’t show an apartment

that isn’t ready, but I hate to ask someone to come back. Everyone is so busy I just don’t think they’ll make the time to come back for another visit. What can I do?

AFirst of all, you do not have to show an

apartment in order to rent one. While many people are “visual” and having a model or vacant apartment to show may seem like an advantage, it is not the only sales tool you have at your disposal. Here is what can happen when there is no apartment available to show:

With a diagram of a 2 bedroom, the consultant “walked me through” the apartment as though we were inside. She used the terms “you” and “yours” during the entire “visual” tour. She pointed out the various storage areas, and also showed me the shelf and cabinet over the wash-er and dryer. Th e consultant used de-scriptive words like “oak cabinetry” and “spacious breakfast bar.” She mentioned the wood-burning fi replace and vaulted ceilings, and pointed out the fi replace and indicated where the ceiling begins to get higher. Th e consultant also helped me vi-sualize what type of furniture would fi t in each room.

When the apartment “presentation” was completed, the consultant walked me over to the location of the upcoming apartment. She pointed out and described the amenities we saw along the way and discussed the proximity of each one to the apartment. She indicated where I and my guests could park. Standing outside the apartment, the consultant pointed out other advantages to this location. She drew my attention to the private patio, nearby fountain and lush landscaping. She also mentioned the friendly neigh-bors upstairs and next door.

Once the leasing consultant confi rmed I was pleased with what I had learned about the apartment and community,

sk The Secret Shopper

she asked if I would like to put a hold on the apartment until it was ready to view. When I declined, she told me she under-stood my hesitation since I had not ac-tually seen the apartment. However, she reminded me it was the only one she had coming available; without a deposit she couldn’t hold it for me. As I continued to hesitate, she told me my deposit would be fully refundable if I did not like the apart-ment once I saw it.

As you can see, having no apartment to show did not hamper the leasing consul-tant’s ability to sell AND close the sale! In fact, it was quite the opposite: She became even more creative in selling her product! She had the opportunity to go the extra mile and “create a visual,” and she took advantage of it. Th e prospective renter in this situation got a more comprehensive tour when there was no apartment avail-able to show!

Remember: You only get one chance to make a good fi rst impression. Selling what you have to off er will increase your leasing ratio. Rather than demonstrating a dirty apartment or asking the client to come back, put your product knowledge to the test: Give a thorough presentation with whatever sales tools you have at your disposal, and then close the sale. Once you rent that last vacant apartment sight unseen, you will have the confi dence to prelease all those upcoming notices . . .

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 Shops

E-mail: [email protected]

Copyright © Joyce (Kirby) Bica

Don’t Have a Vacant Apartment to Show?

48-HOUR NOTICE OF ENTRYTENANT(S): ____________________________________________________ DATE:________ADDRESS: ____________________________________________________ UNIT: _________CITY: _________________________________________ STATE: __________ ZIP: _________48-HOUR NOTICE OF ENTRYPursuant to RCW 59.18.150, this is your 48 hour notice that your landlord or their agents will be

entering the dwelling unit and premises located at (Address)______________________________________________________________________________on between the hours of and . (Date) (Time) (Time)The entry will occur for the following purpose:______________________________________________________________________________

______________________________________________________________________________ Landlord Phone

Method of Service: Personal Service: Post and Mail: ** Add one additional day for compliance if served by post and mail.

WA-RTG-40 Washington

©2009 NO PORTION of this form may be reproduced without written permission.

48-HOUR NOTICE OTENANT(S): ____________________________________________________ DADDRESS: ____________________________________________________ UNI

: _________________________________________ S

48-HOUR NOTICE OTENANT(S): ____________________________________________________ DADDRESS: ____________________________________________________ UNI

: _________________________________________ S

CHECK-IN/CHECK-OUT CONDITION REPORTTENANT(S): __________________________________________________________________ADDRESS: ________________________________________________UNIT: ______________CITY: ___________________________________ STATE: ________ ZIP: _________________Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor IN Out In Out In OutLIVING AREAS KITCHEN BEDROOM 3Walls Walls Walls

Windows Stove/Racks WindowsBlinds/Drapes Refrigerator Blinds/DrapesRods Ice Trays RodsFloor Shelves/Drawer FloorCarpet/Vinyl/Wood Disposal Light FixturesLight Fixtures Dishwasher Doors/WoodworkDoors/Woodwork Counter Tops LocksLocks Cabinets CeilingsCeilings Sink Electric OutletsElectrical Outlets FloorGarbage Cans WindowsTV Antenna/Cable Blinds/Drapes BATH ROOMFireplace

Towel BarsCleanlinessSink & Vanity

ToiletBEDROOM 1 BEDROOM 2 Tub/ShowerWalls Walls Fan (Exhaust)Windows Windows FloorBlinds/Drapes Blinds/Drapes Electric OutletsRods Rods Light FixturesFloor FloorLight Fixtures Light Fixtures Essential ServicesEssential ServicesDoors/Woodwork Doors/Woodwork PlumbingLocks Locks HeatingCeilings Ceilings ElectricityElectrical Outlets Electric Outlets Hot Water

Smoke Detectors

OR-RTG-20 Oregon

TENANT(S): __________________________________________________________________ADDRESS: ________________________________________________UNITE: ________ ZIP: ____________

F)FaiF)FaiF)Fair (P)Poor (P)PoorOut

BEDROOM 3

TENANT(S): __________________________________________________________________ADDRESS: ________________________________________________UNITE: ________ ZIP: ____________

F)FaiF)FaiOut

PET AGREEMENTTENANT INFORMATION

TENANT(S): ____________________________________________________ DATE:________ADDRESS: ____________________________________________________ UNIT: _________CITY: _________________________________________ STATE: __________ ZIP: _________

DESCRIPTION OF PET(S)

1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ License Number: ______________



Additional Security Deposit Required:$

AGREEMENTTenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) understands that the additional pet(s) are not permitted unless the landlord gives tenant(s) written permission. Tenant(s) agree to keep the above-listed pets in the premises subject to the following terms and conditions:

1) The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the tenant’s dwelling unit. 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly. 3) Tenant(s) are responsible for the conduct of their pet(s) at all times. 4) Tenant(s) are liable for all damages caused by their pet(s). 5) Tenant(s) shall pay the additional security deposit listed above and/or their rental agreement as a condition to keeping the pet(s) listed above. 6) Tenant(s) shall not allow their pets to cause any sort of disturbance or injury to the other tenants, guests, landlord or any other persons lawfully on the premises. 7) Tenant(s) shall immediately report to landlord any type of damage or injury caused by their pet. 8) This agreement is incorporated into and shall become part of the rental agreement exe -cuted between the parties. Failure by tenant to comply with any part of this agreement shall constitute a material breach of the rental agreement.

_____________________________ ______________________________Landlord Tenant ______________________________ Tenant

nogerO 42-GTR-RO

©2011 NO PORTION of this form may be reproduced without written permission.

TE: __________ ZIP: _________48-HOUR NOTICE OF ENTF ENTF RYRYR 59.18.150, this is your 48 hour notice that your landlord or their agents will be

entering the dwelling unit and premises located at (Address)______________________________________________________________________________

______________________________________________________________________________

___________________________________________________________________________ between the hours of and .ime) (Time)

____________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________

___________________________________________________________________________

Phone

Post and Mail: * compliance if served by post and mail.

48-HOUR NOTICE O 59.18.150, this is your 48 hour notice that your landlord or their agents will be

entering the dwelling unit and premises located at (Address)___________________________________________________________________________ between the hours of (Time

The entry will occur for the following purpose:_________________________________________________________________________________________________________________________________________________________

Post and Mail: compliance if served by post and mail

BEDROOM 3alls

Windows

Blinds/Drapes

Rods

Floor

Light Fixtures

Doors/WDoors/WDoors/ oodwork

Locks

Ceilings

Electric Outlets

TH ROOMowel Bars

Sink & VanityVanityV

ub/Shower

Fan (Exhaust)

Electric Outlets

Light Fixtures

Essential ServicesEssential ServicesPlumbing

48-HOUR NOTICE O 59.18.150, this is your 48 hour notice that your landlord or their agents will be

entering the dwelling unit and premises located at (Address)___________________________________________________________________________ between the hours of

The entry will occur for the following purpose:_________________________________________________________________________________________________________________________________________________________

compliance if served by post and mail

BEDROOM 3Walls

Windows

Blinds/Drapes

Rods

Floor

Light Fixtures

Doors/

Locks

Ceilings

Electric Outlets

BATH ROOMATH ROOMA

Towel BarsTowel BarsT

Sink &

ToiletToiletT

Tub/Shower

Fan (Exhaust)

Floor

Electric Outlets

Light Fixtures

Essential ServicesPlumbing

TENANT(S): ____________________________________________________ DATE:________ATE:________AADDRESS: ____________________________________________________ UNIT: _________

ATE: __________ ZIP: _________ATE: __________ ZIP: _________A

Weight ___ Color ____ Name ________Weight ___ Color ____ Name ________W



enant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) Tenant(s) Tunderstands that the additional pet(s) are not permitted unless the landlord gives ten

enant(s) agree to keep the above-listed pets in the premises

The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the

enant(s) shall promptly pick up all pet waste from the premises promptly.enant(s) are responsible for the conduct of their pet(s) at all times.enant(s) are liable for all damages caused by their pet(s).enant(s) shall pay the additional security deposit listed above and/or their rental

agreement as a condition to keeping the pet(s) listed above.enant(s) shall not allow their pets to cause any sort of disturbance or injury to the

other tenants, guests, landlord or any other persons lawfully on the premises.enant(s) shall immediately report to landlord any type of damage or injury caused by

This agreement is incorporated into and shall become part of the rental agreement exe -cuted between the parties. Failure by tenant to comply with any part of this agreement shall constitute a material breach of the rental agreement.

______________________________enant

______________________________enant

TION of this form may be reproduced without written permission.

CHECK-IN/CHECK-OUT CONDITION REPORTTENANT(S): __________________________________________________________________ADDRESS: ________________________________________________UNIT: ______________CITY: ___________________________________ STATE: ________ ZIP: _________________Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor

Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor







Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor IN Out In Out In OutLIVING AREAS

KITCHENBEDROOM 3

WallsWalls

WallsWindowsStove/Racks

WindowsBlinds/Drapes

RefrigeratorBlinds/Drapes

RodsIce Trays

RodsFloorShelves/Drawer

FloorCarpet/Vinyl/WoodDisposal

Light FixturesLight Fixtures

DishwasherDoors/Woodwork

Doors/WoodworkCounter Tops

LocksLocksCabinets

CeilingsCeilings

SinkElectric Outlets

Electrical OutletsFloor

Smoke DetectorsGarbage Cans

WindowsTV Antenna/CableBlinds/Drapes

BATH ROOMFireplace

Towel BarsCleanliness

Sink & Vanity

ToiletBEDROOM 1BEDROOM 2

Tub/ShowerWalls

WallsWindows

WA-RTG-20 Washington

5 REASONS TO USE RENTEGRATIONColor Standards for National Tenant Network Logo

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from the database. The modules are all in-tegrated and work together. For example, a customer can use the rent-roll function to identify all delinquencies, apply fees, and create eviction forms with a few simple clicks of the mouse.

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gon-California border,” Goldfi nger noted in a 2012 OSU news release on the paper. “Th ese would typically be of a magnitude from about 8.7 to 9.2 – really huge earth-quakes.We’ve also determined that there have been 22 additional earthquakes that involved just the southern end of the fault,” he added. “We are assuming that these are slightly smaller – more like 8.0 – but not necessarily. Th ey were still very large earth-quakes that if they happened today could have a devastating impact.”

Jay Patton, a co-author on the study, added, “By the year 2060, if we have not had an earthquake, we will have exceeded 85 percent of all the known intervals of earth-quake recurrence in 10,000 years. Th e interval between earthquakes ranges from a few decades to thousands of years, but we already have exceeded about three-fourths of them.”Th e last major earthquake along the Cascadia subduction zonewas estimated to have occurred in approximately 1700.

The Predicted ImpactWhat that mean to owners of Pacifi c Northwest properties is that there is a risk and

we need to prepare for it.A 2011 Cascadia earthquake study by the Federal Emergency Management Agency (FEMA) estimated that only 20 percent of the buildings located in the Portland Metro region would escape damage; the other 80 percent would suff er damage from slight to complete loss.

Table 1: Analytical Baseline Study for the Cascadia Earthquake and Tsunami (Source: FEMA, November 18, 2011)

Commercial None Slight Moderate Extensive Complete TotalMetro 6,759 10,106 12,270 4,647 461 4,242Outside Metro 14,333 7,596 11,878 7,904 3,072 44,785Total 21,092 17,702 24,148 12,551 3,533 79,027

Statewide, the report predicted that about 27 percent of commercial buildings would survive without damage, and 22 percent would suff er slight damage. Th e remaining buildings which would suff er moderate damage (31 percent) or extensive damage (16 percent)or will be completely destroyed(4 percent)will not be unusable for commercial purposes. More importantly, the Oregon and Washington coastline will most likely be swamped with a tsunami.

It predicted that the most dangerous impact at the 9.0 scale will be felt all along the Oregon coast and be particularly devastating to the coastal communities of Crescent City, California; Cannon Beach and Warrenton in Oregon; as well as the Moclips/Westport area in Washington. It will include a tsunami and the following impacts along the I-5 corridor.

Th is major FEMA study also included signifi cant details regarding the infrastruc-ture impact of such a large earthquake:

Electric power: Extensive electric power outages would be experienced throughout the region. Outages could last several weeks along coastal areas but most customers in

other areas are expected to have power restored within 1 to 8 days.Natural Gas: Damage to both the transmission and distribution pipeline networks

in the aff ected region could cause the majority of customers in western Washington and western Oregon to lose natural gas service. Many homes may lose all sources of heating due to the combined eff ects of natural gas and electric power outages.

Telecommunications: Major undersea transpacifi c cables are likely to be severed; disrupting communication service to East Asia as well as between Alaska and the con-tiguous United States, with a two- to three-month expected restoration time.

Transportation Fuels: A signifi cant number of pump stations along the Olympic and Oregon Line refi ned-product pipeline system, as well as a substantial number of refi ned product terminals in the region, are expected to sustain considerable damage; the inability to store and distribute fuels locally is likely to have a major impact on regional fuel supplies.

Road Transportation: Signifi cant damage to roads can be expected, particularly those along the coast and connecting the coast to the I-5 corridor. U.S. 101 is expected to suff er substantial damage due to both ground shaking and tsunami, resulting in a limited capacity to carry traffi c for several months. Nearby coastal areas may be isolat-ed for a short period.

Water Transportation: Tsunami damage at the mouth of the Columbia River is like-ly to impact navigation and the ability to export agricultural commodities.

Rail Transportation: Long-term rail traffi c disruptions along the I -5 corridor and a complete loss of key rail bridges in the Olympia and Seattle area and downtown Port-land are expected.

Banking and Finance: Loss of major transpacifi c undersea cable capacity would af-fect transoceanic commerce, settlement, and transpacifi c fi nancial market exchanges.

Emergency Services: Widespread damage to police stations, fi re stations, and hospi-tals along the coast is expected.

Health Care: Th e potential of 15,000 to 30,000 casualties and the expected loss due to damage of 15-27 hospitals comprising 524-1708 regular beds and 60-228 critical bed facilities concentrated near the coast would be suffi cient to saturate the excess capacity of other hospitals within a 250- mile range of the worst damage.

Water and Wastewater: Disruptions to potable water supply are expected with resto-ration times of three weeks to seven months with the greatest damage and restoration times occurring near the coastline.

It is clear that the impact for a 9.0 earthquake will aff ect many businesses. Many small companies, because they lack the fi nancial resources to survive, will be put out of business. Th is will have a direct impact on residential and commercial investments since businessesleasing commercial space might fail due to a lack of power, fuel, and communications.If some commercial tenants fail due to the earthquake, then many people will be left without the incometo pay residential rent with.

Earthquake Insurance ...continued from page 1

continued on page 7

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Fair Housing Tips ...continued from page 1

you the understanding of pitfalls of fall-ing into possible discrimination in Fair Housing. It also prepares and gives the tools necessary to help avoid complaints.

Here are a few examples that oc-cur during leasing:

Example: Oh my, your children are beautiful! I have the perfect home for you on the ground fl oor by the playground! I am so excited to show you this apartment

Intention: More than likely the leasing associate has the best intentions for the prospective residents, it is still DISCRI-MATION.

Perception: Th is is discrimination in the form of Steering, and could prompt a complaint.

Correct Action: Anyone applying for an apartment can live in any available unit and must be show the same apart-ments as anyone applying

Prevention: EDUCATE, EDUCATE, EDUCATE! It is necessary to make cer-tain that the associates working for you are knowledgeable and trained to mini-mize the risk to you and your company

Discrimination is Discrimination! Unfortunately, even the best of in-

tentions of the leasing consultant can put them, the owner and Management Company at risk. Make no mistake, Fair Housing and discrimination is real and happens.

Ignorance Of �e Law Is No Excuse!

Learn about the Federal, State and Lo-cal protected class on Th e Fair Housing website http://fh co.org

My best advice is Document, Doc-ument, and Document!Documentation

How does documentation have the po-tential for a complaint?

Example: You may have a star on one guest card and not another or you may have written she is so sweet make a great resident!

Intention: You really liked that pros-pect and really thought they would make a great resident and noted as much on their guest card

Perception: Th is could be construed as discrimination base on the fact that these types of doodles and or comments were not present on all guest cards. Th ese guest cards would be brought into question should a complaint be fi led

Remember not to doodle or make marks on applications, guest cards or any paperwork related to prospect or resident

Fair Housing Laws apply to:• Owner / Agents

• Property Management Companies

• Maintenance, Leasing & Administra-tive staff

• Outside Vendors such as Landscapers, Painters,

• Exterminators, Insurers, etc.

• Real Estate Agents, Brokers, Lenders

• Homeowners & Condo Associations

• Individuals, Corporate & Business Owners

• Architects, Builders, Developers, Engineers

• Responsibility is non-delegable

• Ignorance of the law is no excuse

A couple of thoughts, ask your asso-ciates and how they would address these scenarios in the leasing process? (In red are common answers and or thoughts your will receive from the well intentioned leasing associates and are discriminatory, in my experience during training)

• Women with 2 young children? Do not make assumptions!. Th is women and children will be

quite, I can put them upstairs

• Married couple with 2 teen aged boys?. Th ose boy are going to be trouble

• Married couple with 1 teen aged girl?. Quite residents

Discrimination is real and can be prevented! by Dana Brown – EDGE Training – Full Spectrum Residential Services, LLC [email protected] or503-740-8432

Th e RRP Rule, which is part of the federal Toxic Substances Control Act, is intended to ensure that owners and oc-cupants of pre-1978 “target housing” and “child-occupied facilities” receive infor-mation on lead-based paint hazards be-fore renovations begin, that individuals performing such renovations are properly trained and certifi ed, and that renovators follow specifi cally prescribed lead-safe work practices to reduce the potential for exposure to lead for all, including workers.

Renovators are required to give the pamphlet to property owners and oc-cupants within 60 days before starting a renovation. Housing providers, simi-larly, have obligations to notify residents prior to covered repairs and renovations, to share informational literature with them, including a disclosure form, and to be lead-safe certifi ed or hire a contractor who is.

To protect yourself and your invest-ment, it’s important, that you assure the contractors you hire are in fact lead-safe certifi ed and complying with the EPA’s safe work practice requirements. To learn more about what repairs are cov-ered and what these work-safe practices are, visit http://www.epa.gov/sites/pro-duction/files/documents/renovateright-brochure.pdf.

Th e EPA reported that rough two-thirds of the cases they recently settled in-volved failure to obtain EPA certifi cation prior to conducting renovations. Over half the cases were related to violations of required safe work practice standards.

Th e EPA states its aim in seeking penal-ties against RRP violators is to help deter other violations and to level the playing fi eld for companies that do follow the law.

Such fi nes and settlements help eliminate the fi nancial advantage a violator may get by underbidding competitors that are compliant.

You can read the full EPA me-dia release here: http://yosemite.epa.gov/opa/admpress.nsf/0/0D3D2DBE-30561BAD85257EEB00698FC7

‘Looking for a lead-safe contractor or want to become certifi ed yourself in or-der to do work on your own properties? Call the Leadline for free information at 503/988-4000.

A reminder that although lead poison-ing is especially dangerous for kids, the fear of lead poisoning or liability does not give housing providers the right to deny or discourage families with children away from pre-1978 housing. Familial status is a protected class under federal fair hous-ing law1 and doing anything to deny or discourage otherwise qualifi ed families is illegal. Visit www.FHCO.org for more information on this topic.

Th is article brought to you by the Fair Housing Council; a civil rights organiza-tion. All rights reserved © 2016.

Federally protected classes under the Fair Housing Act include: race, color, national origin, religion, sex, familial status (children), and disability. Oregon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Additional protected classes have been added in particular geo-graphic areas; visit www.FHCO.org for more information.

EPA Cracks Down ...continued from page 1

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Advertising SalesWill Johnson – [email protected]

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

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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.

6



Metropolitan Area Dec. 2015 ZHVI Dec. 2015 ZRI ZRI Forecast for Dec. 2016 Forecasted Difference Between Dec. 2015 ZRI and Dec. 2016 ZRI

United States $183,500 $1,381 $1,396 1.1%New York/Northern New Jersey $381,200 $2,384 $2,400 0.7%

Los Angeles, CA $554,700 $2,491 $2,561 2.8%Chicago, IL $193,000 $1,633 $1,611 -1.4%

Dallas-Fort Worth, TX $177,200 $1,500 $1,532 2.1%Philadelphia, PA $203,100 $1,558 $1,550 -0.5%

Houston, TX $170,100 $1,579 $1,619 2.5%Washington, DC $357,800 $2,107 $2,118 0.5%

Miami-Fort Lauderdale, FL $225,700 $1,822 $1,886 3.5%Atlanta, GA $160,000 $1,274 $1,280 0.5%Boston, MA $382,900 $2,247 $2,309 2.7%

San Francisco, CA $785,800 $3,338 $3,536 5.9%Detroit, MI $121,800 $1,132 $1,128 -0.4%

Riverside, CA $298,200 $1,691 $1,723 1.9%Phoenix, AZ $216,000 $1,249 $1,266 1.4%Seattle, WA $368,700 $1,931 $2,018 4.5%

Minneapolis-St. Paul, MN $214,300 $1,500 $1,511 0.8%San Diego, CA $499,900 $2,316 $2,348 1.4%St. Louis, MO $141,000 $1,123 $1,115 -0.7%

Tampa, FL $160,100 $1,296 $1,302 0.5%Baltimore, MD $242,300 $1,714 $1,702 -0.7%

Denver, CO $320,800 $1,952 $2,031 4.0%Pittsburgh, PA $126,700 $1,090 $1,079 -1.0%Portland, OR $310,200 $1,689 $1,753 3.8%Charlotte, NC $157,800 $1,221 $1,250 2.4%

Sacramento, CA $331,500 $1,599 $1,654 3.4%San Antonio, TX $148,000 $1,301 $1,306 0.4%

Orlando, FL $180,600 $1,343 $1,373 2.2%Cincinnati, OH $141,800 $1,225 $1,243 1.5%Cleveland, OH $124,300 $1,124 $1,117 -0.6%

Kansas City, MO $146,600 $1,199 $1,228 2.4%Las Vegas, NV $199,800 $1,212 $1,191 -1.8%Columbus, OH $150,900 $1,271 $1,289 1.4%

Indianapolis, IN $130,100 $1,181 $1,138 -3.6%San Jose, CA $933,000 $3,431 $3,699 7.8%Austin, TX $242,900 $1,683 $1,741 3.4%

Source Zillow

Rents to Flatten in 2016After years of record rent appre-

ciation, Zillow’s rental forecast shows relief in sight for cash-

strapped renters.• National median rent at the end of

2015 was $1,381, and is expected to in-crease slightly to $1,396 over the next 12 months.

• The slowdown in rents means that, by the end of the year, they will be ris-ing at a slower pace than incomes in many markets.

• In December, home values rose 4 per-cent to a Zillow Home Value Index of $183,500.

Rent appreciation will level off over the next 12 months, slowing to an annual rate of 1.1 percent by December 2016, accord-ing to the new Zillow® Rent Forecasti. The national Zillow Rent Indexii at the end of 2016 is projected to be $1,396 -- compared to $1,381 in December 2015.

Zillow is forecasting a decrease in the rate of rental appreciation amid a rent-al affordability crisis that has renters in some markets spending almost half of their income on rent. Some of the fastest growing metros had double-digit annual rental appreciation at the end of 2015.

Zillow expects rental appreciation to slow down most significantly in Nash-

ville, Tenn., San Francisco, Portland, Ore. and Denver. Rents in San Francisco saw 12.5 percent appreciation in 2015. Zillow forecasts rent in San Francisco will grow half as fast in 2016 -- 5.9 percent.

Even with the slowdown, rents will re-main unaffordable in many of the major markets across the U.S., especially on the West Coast. Renters in San Francisco and Los Angeles can expect to spend 40 per-cent of their income on a rental paymentiii.

“Hot markets are still going to be hot in 2016, but rents won’t rise as quickly as they have been,” said Zillow Chief Econ-omist Dr. Svenja Gudell. “The slowdown in rental appreciation will provide some

relief for renters who’ve been seeing their rents rise dramatically every single year for the past few years. However, the situ-ation remains tough on the ground: rents are still rising and renters are struggling to keep up.”

The slowdown in rental appreciation indicates that supply of new multi-fami-ly homes is catching up to demand. Sub-stantial new housing supply is becoming available in Atlanta, Denver, Portland, Seattle, and other markets.

The Zillow Home Value Index rose 4 percent year-over-year in December 2015, to $183,500, according to the Zillow® De-cember Real Estate Market Reportsiv.

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I believe all properties should be covered by earthquake insurance. In that vein, we have included some tips to consider when shopping for earthquake insurance.

Understanding Earthquake InsuranceThere are typically three (3) main parts

of the basic earthquake coverage, your property coverage which covers your property up to a certain amount, called the limit; personal property coverage; and loss of rents coverage.

Property coverage needs to be re-searched, as do deductibles. In Oregon, unlike California, there is no regulat-ed coverage and only a limited pool of providers. Choose a company that is strong,rated by A.M. Best or check with the Oregon insurance commissioner.Note that earthquake insurance may not cover landscaping, pools, fences, masonry, and out buildings like storage or garages.If you rent or own a condo, you do not need this coverage as long as you make sure your association has the coverage.

Loss of rents coverage should be on an ”actual loss guaranteed basis” and ex-tend for at least 24 months, preferably 36 months(if you can find it). The longer the better since after a major earthquake you may have trouble finding tenants.

Other coverages to consider include building code upgrade coverage or cover-age for limited debris removal, land resto-ration, and emergency repairs.

It is also important to know what your earthquake insurance policy does not cover.All insurance policies have exclu-sions. Have your insurance agent help you understand your policy. In general, earthquake insurance usually does not cover anything that your normal build-

ing insurance policy already covers.You definitely need to check with your in-surance agent to confirm where fire and liability insurance leave off and where earthquake insurance kicks in.Common exclusions include:

Fire: Even if an earthquake causes the fire, your building insurance policy cov-ers fire damage.

Land: Usually, earthquake insurance does not cover damage to your land, such as sinkholes from erosion or other hidden openings under your land. You may be able to buy limited additional coverage to restore or stabilize land.

Vehicles: Earthquake insurance does not cover damage to your vehicles or your tenants’ vehicles. If you have a fleet of ve-hicles that might be damaged you may want to check into additional insurance.

Flood: Even if you live near a lake that floods your home after an earthquake, wa-ter damage from floods, including those caused by a tsunami, are covered by flood insurance, not earthquake insurance.

When purchasing earthquake insur-ance, you may need to buy on a second-ary market. Askyour insurance agent to scour the market and make sure that you are getting the best deal you possibly can. Don’t be surprised if the deductibles run from 15 – 25%. Consider how much cash you will have on hand to jumpstart a re-pair process. After a 9.0 earthquake it may take 6 – 8 months before the city will clear your building for occupancy.

Earthquake insurance premiums vary depending on many factors, including the age of your building, the rent collect-ed, the location, the kind of soil, the cost to rebuild, and the deductible. Don’t be shocked if it is expensive.

What else can you do to protect your property and manage your risk from a major earthquake?

• Bolt theproperty to the foundation.

• Brace any chimneys.

• Strap water heaters to the wall.

• Put in automatic gas shut-off valves.

• Advise tenants to screw bookshelves and book cases into the wall.

• Research the location of the property on a local hazard mapto assessyour risk.

• Follow government issued earthquake proofing recommendations.

• Reserve funds for earthquake proofing capital projects.

• Tie the roof to the studs during roof replacements.

• Tie the roof structure to the wall structure.

The main recommendation in all doc-uments regarding the impending Cas-cadia earthquake stress preparation and planning. We may not have the power to prevent the earthquake, but we do have the knowledge and technology to reduce the damages it may inflict. Even if you own one of the 20 percent of properties not affected, you still will be faced with the infrastructure problems such as a lack of power andtelecommunications for days or weeks resulting in tenants unable to pay the rent. All buildings will be affected and all building owners need to prepare. The first step to mitigating your risk is to buy earthquake insurance.

ResourcesThe Oregon Resilience Plan https://multco.us/em/ore-gon-resilience-plan

The City of Portland Hazard Map: https://www.portlan-doregon.gov/pbem/58572#maps

Story: Historic Earthquakes, Teara: The Encyclopedia of New Zealand http://www.teara.govt.nz/en/histor-ic-earthquakes/page-13

The Really Big One: An earthquake will destroy a size-able portion of the coastal Northwest, The New Yorker http://www.newyorker.com/magazine/2015/07/20/the-really-big-one

Turbidite Event History—Methods and Implications for Holocene Paleoseismicity of the Cascadia Subduction Zone, U.S. Geological Survey http://pubs.usgs.gov/pp/pp1661f/ 13-year Cascadia study complete – and earthquake risk looms large, OSU News & Research Communications http://oregonstate.edu/ua/ncs/archives/2012/jul/13-year-cascadia-studycomplete-%E2%80%93-and-earthquake-risk-looms-large

Analytical Baseline Study for the Cascadia Earthquake and Tsunami, Department of Homeland Security https://www.bluestonehockley.com/wp-content/up-loads/2016/01/FEMA-earthquakestudy.pdf

Earthquake Insurance ...continued from page 4

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rental housing journal valley march 2016

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