APARTMENT NEWS
NOVEMBER/ DECEMBER 2020
The official publication of the Arizona Multihousing Association
What’s on the horizon? 2021
A look ahead to Arizona’s apartment industry
2021 Legislature Battleground Arizona
2021 Look ahead State of the state, industry
2021 Trend Is WFH here to stay?
page 6
page 8
page 23
Apartment News | November/December 2020
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azmultihousing.org
2020: My year as Board Chair, unlike any our industry has experienced
818 N. 1st St., Phoenix, AZ 85004 phone: 602-296-6200 fax: 602-296-6178 web: azmultihousing.org 2020 AMA BOARD OF DIRECTORS EXECUTIVE COMMITTEE Chair, Kim Pacheco Scotia Group Management
Lisa Osborn-Warne Priderock Capital Partners
I remember writing my first letter as
Treasurer, Scott Hines PEM Real Estate Group
John Rials Western Wealth Capital
the incoming Chair of the AMA. Our
Secretary, Linda Coburn NexMetro Development
Lisa Rosenfeld HSL Asset Management
Imm. Past Chair, John Carlson Mark-Taylor Residential
Mark Schilling MEB Management Services
AMC Exec., Sue Campbell Redi Carpet
Tina Schreiber Alliance Residential Company
strong. I was so excited to be a part of such a great organization with such
Courtney Gilstrap LeVinus President and CEO clevinus@azmultihousing.org Phone: 602-296-6200
Gloria Munoz Maricopa County Housing
Vice Chair, Reid Butler Butler Housing Company
industry was strong; the AMA was
AMA STAFF
April Morris Cox Communications
Sarah Fluke Deputy Director sfluke@azmultihosusing.org Phone: 602-296-6212 Lauren Romero Tucson Area Association Executive lromero@azmultihousing.org Phone: 520-323-0643 Erika McDowell Director of Operations emcdowell@azmultihousing.org Phone: 602-296-6210
Stacey Searl Weidner Apartment Homes
promise of a great year. BOARD OF DIRECTORS Elizabeth Beaulieu Quarterpenny Management
Our number No. 1 goal for 2020 was to reach $1 million in our Better Government Fund and we were sure we were going to reach that mark.
Kim Pacheco AMA Board Chair
Krisanne Beckstead Picerne Real Estate Group Lesley Brice MC Residential
We had our first Board meeting in March (yes, we were all together)
Dahnn Brown Camden Property Trust
Christine Shipley Dunlap & Magee
Justin Steltenpohl P.B. Bell Companies
Carmen Suggs ConAm Management Corporation
David Connant Valley Wide Security
David Vanek Greystar Real Estate Partners
Crystal DeHoag Bella Investment Group
Luis Verger Shelton Residential
Anna DiSabato Dunlap & Magee
Wendy Weiske Gorman & Company
What I do want to talk about is how strong the AMA has been the
Kohl Eisenhour Avenue 5 Residential
Debbie Willis P.B. Bell Companies
past six months.
Natalie Evans Apartments.com
Nicole Wray Greystar Real Estate Partners
Courtney and her team have gone above and beyond to keep us
Kimberly Fitch Nicolosi & Fitch, Inc.
Rhonda Wooder Stratton Restoration
They have kept us together (virtually) and have provided all of our
Adam Greco Burns Pest Elimination
Chris Worrell GPM Landscape, Inc.
members with up-to-the-minute information and the tools that we
Kristin Heiple Baron Property Services
had no idea what would hit all of us while we were advocating for our industry in Washington, D.C. No idea how it would affect all of us, our residents, our owners, our vendors, friends and family. We all know what a difficult year this has been, professionally and personally. I don’t want to rehash what we all have been through.
informed of all the changes and challenges we have been through.
needed to navigate through these unprecedented times.
Lisa Garcia Membership & Operations Coordinator lgarcia@azmultihousing.org Phone: 602-296-6207 Amanda Perkumas Tucson Area Executive Assistant aperkumas@azmultihousing.org Phone: 520-323-0643 Jonathan Baldenegro Events & Education Coordinator jbaldenegro@azmultihousing.org Phone: 602-296-6209 Christina Desaubin Communications & Marketing Manager cdesaubin@azmultihousing.org Phone: 602-296-6204 Jenica Hickey Member Relations Coordinator jhickey@azmultihousing.org Phone: 602-296-6214
Robert Hicks Alliance Residential Company
I feel that the AMA has brought us closer and helped us remain stron-
Stacey Hogue Greystar Real Estate Partners
ger and more knowledgeable as an organization. We also hit our goal of reaching $1 million in our Better Government Fund which we all
Michelle Howland Blue Steel Security Services
understand now how important this is to our industry.
Susan Knowles J.R. McDade
Thank you again Courtney and your team at the AMA; we all appre-
Matt Koglmeier Koglmeier Law Group, PLC
ciate all that you have provided to our companies and our industry
David Kotin Kay-Kay Realty
during this difficult time.
Sharon Kuhlman Shelton Residential
I truly hope that all of our members and vendors are safe and well
Dustin Lacey Mark-Taylor Residential
and I wish everyone a much brighter 2021.
Crystal Litzau Weidner Apartment Homes
– Kim Pacheco, AMA Board Chair,
Omar Mireles HSL Asset Management
Scotia Group Management, Inc.
Apartment News | November/December 2020
Melissa Lanouette Events & Education Manager mlanouette@azmultihousing.org Phone: 602-296-6205
Greg Stobart MG Properties
Luz Bruscini MEB Management Services
and then the only in-person trip of the year with NAA – Advocate. We
Kyle Simplot Accounting & Operations Manager kyles@azmultihousing.org Phone: 602-296-6203
Michelle Sinclair Evergeen Devco, Inc.
3
AMA CONTRACTORS CAPITOL CONSULTING GOVERNMENT RELATIONS Courtney LeVinus Government Affairs Consultant courtney@azcapitolconsulting.com Phone: 602-390-1398 Jake Hinman Government Affairs Consultant jake@azcapitolconsulting.com Phone: 602-712-1121 Bastien Andruet Municipal Lobbyist bastien@azcapitolconsulting.com Phone: 602-712-1121
PUBLIC RELATIONS/ COMMUNICATIONS MadridMedia Peter Madrid Owner, MadridMedia ptmadrid1975@gmail.com Phone: 480-495-3762 Leibowitz Solo David Leibowitz Owner, Leibowitz Solo david@leibowitzsolo.com GRAPHIC DESIGN James Dempsey Design james@jdempsey.com Phone: 602-510-5508
azmultihousing.org
AMA members, board and team made sure 2020 was not all gloom and doom
AUGUST - SEPTEMBER 2020 NEW AMA MEMBERS The AMA would like to welcome all new members from August and September. We are excited to work alongside you to make our association and industry the best.
OK, we all know what dominated
• ApartmentData.com
the headlines in 2020. How an organization works through tough times and survives should be the real headlines. That was the story line this year for AMA members. COVID-19 severely affected our industry. It also affected the thousands
Courtney LeVinus AMA President & CEO
• Broadstone Grand Apartments
• Farmers Insurance Group Walker Insurance Agency
• Lilly Garden Apartments
• Steamy Concepts
• Broadstone Rio Salado
• Morrison Clark & Company, CPAs
• Catalina Country Apartments, LLC.
• CDR Painting, LLC
• Limberlost Studio Apartments, LLC.
• HRS Disaster Restoration
• The McKinley
• That Guy Services Inc.
• Springs at Deer Valley
• BlueTeam
• Equinox on Columbus
• Diamond Elite Estates
• The Grove on Main
• North West Roofing AZ
• Wasko Modern
• Redline Electric & Solar
• River Park Apartments
• Ceres Assets LLC
• Sierra Verde • District on 5th
happy hour?” We provided several for our members as well. APTUnite
• Taylor Street Tucson Management & Realty, LLC
our first ever virtual Education Conference and Trade show was a
• Kellex Properties, LLC.
of residents who call an apartment home in Arizona.
As the association that represents the state’s rental housing industry, AMA kept the fires burning – even though most of our team did so from home. The bottom line is we are surviving, even thriving. We continue to provide members with quality education programs and signature events. While we couldn’t raise a glass at the 2020 Tribute Awards, we celebrated via a virtual event. That was a win-win situation for all of us. If you never heard of “latte with a lawyer,” you did in 2020. “Virtual
great success.
• Continental Properties Company, Inc.
As we look ahead to 2021, we have many things of which to be grateful.
• Urban Communities
• Our Better Government Fund (BGF) reached and surpassed
• Riverview Group L.L.C.
its goal of $1 million.
• Travis Kipper
• Our board continued to make decisions that positively affect
• Equinox on Prince • Northern Greens Apartments
• Our unit count continues to grow. We have surpassed our 2020 goal of 300,000 units.
• Amara Apartments • Roosevelt Point • Tides North Avondale • Union Tempe
• The Groves Apartments • Escape at Arrowhead
ON THE COVER
• Our AMA team has grown as well.
The September 2020 Associate Member meeting was AMA’s second virtual event of its kind. For the approximately 40 AMC members on the Zoom call, it was a stroll through a true desert jewel, Optima Kierland in Scottsdale.
Let’s put 2020 in the rearview mirror and look down the road to a positive 2021 on the horizon.
– Courtney LeVinus, President & CEO, Arizona Multihousing Association Apartment News | November/December 2020
• Parc Roundtree Ranch
• Tides on South Mill
• Patio 15
awesome board.
• District Apache
• Union on 6th
• Culdesac Inc.
our members. Thank you, Kim Pacheco, for leading our
• Tides on 19th Ave
4
azmultihousing.org
AMA Happenings A big thank you for our scholarship sponsors
Thank you to the following sponsors: Ally Waste, American Roofing & Waterproofing, Apartments.com, Blue Steel Security Services, Burns Pest Elimination, BluSky, GPM Landscape, H3 (Hull, Holliday & Holliday PLC), Law Offices of Scott M. Clark P.C., Phoenix Staffing, CSC Serviceworks, and Kowalski Construction Inc.
The AMA would like to thank its wonderful sponsors who support education designation scholarships. AMA supports its members who desire to pursue education by earning a professional designation from NAAEI. There is a significant investment of time and money, and not everyone has access to the funds or education budgets to make the pursuit of this training a reality. The AMA has awarded more than $7,000 in full and partial scholarships for its CAM, CAPS, and NALP programs. These scholarships make it possible for members to earn a national property management credential, enhance their career and pave a path for continued success in the multi-family industry.
BGF UPDATE $1M GOAL
$1.007 MILLION RAISED
We hit and surpassed our goal! The AMA Better Government Fund (BGF) has hit and surpassed its $1 million goal. The BGF is an industry defense fund used to independently support candidates and initiatives and to help support policies that strengthen the apartment industry in Arizona. As of press time, the BGF has raised $1.007 million.
BGF
GLASS MIRRORS SCREENS
Click here to learn more.
Apartment News | November/December 2020
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ameristarglass.com
602-675-8700 office 602-675-8707 fax ROC# 327236 azmultihousing.org
n
Legislative Update
Election night shake ups bring new faces to office By Jake Hinman and Bastien Andruet
Right on the heels of a contentious and unexpected primary election
While the presidential race consumed most
within striking distance of his challenger,
of Arizona’s attention this year, it was the
Joe Biden was able to secure the state for
down-ballot races that arguably held even
the Democrats for the first time since Bill
season, the state wasted no time
greater significance for Arizona’s political fu-
Clinton in 1996.
in pivoting to the November Gen-
a Democratic flip of the Legislature and many
eral Elections. With shake ups at both the municipal and
ture. While “politicos and pundits” predicted local seats this year, the settling dust and trickling results painted a different picture..
legislative levels, many races began to set
Election night turned into election fortnight
the tone in August for the long-awaited pres-
The 2020 presidential election will certainly
idential race. Record numbers of new voters
go down in history for the country and here
– over 230,000 – registered to vote by the Oct. 5 deadline, with both parties doubling down on their registration after a court decision extended the deadline to Oct. 23.
in Arizona.
Former astronaut Mark Kelly received the most votes of any candidate in the state, nearly 100,000 more votes than incumbent U.S. Sen. Martha McSally, for his victory. While Democrats were ahead early on election night, the long-anticipated “blue wave” was reversed the following morning by what came to be known as the “red dawn.”
Though the Presidential race tightened in Arizona as President Donald Trump came
Apartment News | November/December 2020
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–Continued on next page
azmultihousing.org
In Congressional District 6, for example, Congressman David Sch-
The City of Phoenix held its primary election in November. To nobody’s
weikert came back from a 30,000-vote deficit, securing his seat for
surprise, Vice Mayor Kate Gallego and Mayor Betty Guardado (District
a sixth term. Similarly, in Congressional District 1, incumbent Tom
5) both received well over 60% of the vote and secured re-election.
O’Halleran was able to narrowly fend off Tiffany Shedd by a mere 12,000
In Council District 1, AMA endorsed, Ann O’Brien defeated former
votes to secure another term, and the Democrats’ majority in Congress.
councilman Dave Siebert. Two other AMA-endorsed candidates, in-
Arizona has long been considered a Republican stronghold, especially
cumbent Debra Stark (District 3) and newcomer Cinthia Estela (District
when looking at the Arizona legislature. For decades, the state Capitol
7) have moved on to a March runoff election.
has been strongly controlled by the GOP.
Looking forward
In fact, Democrats have not controlled the Arizona House since 1966,
With many new faces at the Capitol and in city halls, it is hard to
and the Arizona Senate since 1990 (in 2000 the Senate was split evenly
anticipate what the AMA will be facing this upcoming session. One
between Republicans and Democrats).
thing that will be at the forefront of the AMA’s legislative agenda, however, will be the push for more affordable housing development.
Many predicted that both the House and possibly the Senate would
The AMA and other housing stakeholders, working with state Repre-
“flip” in 2020 due to the changing demographics in the state. But those predictions turned out to be wildly incorrect.
sentative Jeff Weninger (LD17), almost reached the finish line last year to establish a state Low Income Housing Tax Credit (LIHTC). Though
While early returns indicated a strong showing for Democratic candidates,
it passed with wide bipartisan support in the state House, the COVID
as the days wore on and as ballots were counted, Republican House
pandemic prematurely ended its passage through the Senate.
and Senate candidates made a strong finish in their respective races.
With housing at the forefront of both state and national politics, once
In the end only one Republican seat was lost in the Arizona senate.
can hope that this will be the year a state LIHTC program is finally
In the House both the Republicans and Democrats each lost a seat
established.
resulting in both chambers remaining in GOP control. Arizonans also weighed in on two significant ballot propositions in
Jake Hinman is the Director of Government
November. Prop. 207, legalizing recreational marijuana, was over-
Affairs for Capitol Consulting.
whelmingly approved by voters. Prop. 208, increasing income taxes
He can be reached at 602-712-1121.
to boost education funding, narrowly passed with less than 52% of the vote in support. Bastien Andruet is a Municipal Lobbyist
Local elections brought new faces to city halls
for Capitol Consulting.
The City of Scottsdale elected David Ortega to be the city’s new mayor,
He can be reached at 602-712-1121.
along with Tom Durham, Betty Janik, and Tammy Caputi (AMA endorsed candidate) as the three new city council members. With four new faces, time will tell what direction the new leadership will take the city.
Apartment News | November/December 2020
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azmultihousing.org
2021 State of our state and the industry By Peter Madrid
When economic prognosticators gazed into their crystal balls a year ago at this time, little did they know that a health crisis would devastate the globe.
“You are in one of the best markets in the multifamily industry,” proclaimed opening
The economy in general was booming. There was positive job growth. Hundreds of new
speaker Tim Sullivan with Meyers Research.
was strong thanks to a diversity of industries, Morin said. Ten years ago, she added, Phoenix
year.”
relied on population growth through housing,
Looking ahead to 2021, AMA brought its members together at APTUnite, a two-day
financial technology and insurance jobs.
of the Arizona apartment market.
ing at a tremendous rate and that one of our
The COVID-19 pandemic has affected every economy on the globe. In Arizona’s apartment industry, it has set off a domino effect that is being felt by owners and residents alike.
by hurt our dependency on housing.
presented the local market update and state
“We’ve been fortunate that Arizona is grow-
nomic experts are using words such as “un-
Then the Great Recession hit and we were
Today Phoenix is home to more technology,
residents were moving into Arizona daily.
certainty … long-term recovery … recession.”
home building and commercial real estate.
economic outlook. Jessica Morin with CoStar
There was pent up demand for rental housing. As 2021 looms on the horizon, those same eco-
Employment growth in Arizona pre-COVID
He and other experts predicted a “banner
virtual gathering that included the annual Arizona’s apartment industry was booming.
Phoenix economy and apartment industry
major economic drivers continues to be jobs,” Morin said. “Since the first U.S. COVID case in January and the school closures in late
“This has insulated us from another economic shock,” Morin said. While the Valley has seen some employers put the brakes on hiring, it has seen others expand:
March and April, our non-farm employment
Scottsdale-based Axon is building a new
has bounced back.
headquarters and adding 650 high-paying
“We have replaced 46 percent of the February to April job losses, but still have a significant way to go since the height of the pandemic.
At last year’s AMA Perspectives & Projections
A full recovery will depend on improving our
industry outlook conference, the 2020 outlook
current health situation,” Morin said.
appeared rosy.
Apartment News | November/December 2020
jobs; Robin Hood, a fin-tech company, is expanding its Valley footprint; Amazon is hiring more than 1,300 people by the end of the year; and TSMC, a Korean semiconductor firm, is bringing 1,600 jobs to Arizona. –Continued on next page
8
azmultihousing.org
There should be good news for the Phoenix
Housing Developers Attempt to Meet Pent Up Demand
apartment market in 2021, Morin said. Nationally, the level of apartment demand has
70
bounced back. New residents have postponed
Single-family starts
Multifamily starts
Household growth (YOY)
60
an initial slow down.
50 Thousands
The pandemic has created a lot of hardships, both for owners and residents. Rents have stabilized and in April the CARES Act helped residents with “$600 they really relied on,”
40
30 20
Morin said.
0
space for a home office or studying area for their school-aged children.
1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020* 2021*
10
A trend seen in the Valley – residents adding
Source: Oxford Economics
“Renters are moving out to suburbs where it’s more affordable,” Morin said. “Lower-wage earners don’t see the benefit of living in
Apartment Supply, Demand, and Vacancy
downtown Phoenix and are moving to the Southeast Valley. The same is happening in
13%
San Francisco and Los Angeles, urban vs. sub-
12%
5K
11%
4K
10%
3K
9%
2K
8%
1K
7%
0K
6%
(1K)
Vacancy Rate
a month moving into the outlying suburbs.” Rents in Phoenix are still holding up much stronger, Morin said. And while rents are going up, so are the use of concessions. Phoenix will remain a market for rent growth. On the construction side, 9,700 units are
5%
expected to deliver this year, which is near record levels for the Valley. In downtown
06 07 08 09 10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 Quarterly Change in Demand
Quarterly Change in Supply
Quarterly Change in Supply & Demand
urban. Renters are saving more than $1,000
6K
Forecast
(2K)
Vacancy
Phoenix alone, 4,600 units are under construction. In Gilbert, 1,800 units are under construction.
Units Under Construction, by Submarket
Aiding in the Southeast Valley’s economic growth are the rise of mixed-use develop-
West Maricopa County
738
West Valley
Gilbert
1,763
Deer Valley
ments in Gilbert, Chandler and Tempe. But when it come to downtown density, Phoenix’s
Downtown Phoenix
urban core remains the champ. There are seven multifamily projects underway – each
4,587
Old Town Scottsdale
a half mile from the other.
892
North Scottsdale
Another trend Morin highlighted – single
Valley and offer a small yard and are being
0%
10%
gobbled up by those Morin refers to as “rent-
continue to gain momentum by 2022 with
South Phoenix
205
1,091
15%
20%
25%
692 0
0%
5%
10%
15%
20%
25%
% of Supply Under Construction (Label shows units under construction)
ers by choice who want flexibility.” For owners and investors, the market will
887
Southeast Valley
472
5%
Chandler
North Phoenix
2,543
Camelback
detached residences are popping up the West
1,036
East Valley
992
Tempe
family rental communities. These single-story,
1,825
5-star product will be traded.
California buyers the most active. In terms
Don’t expect a robust recovering until 2022,
of sales by volume, a lower share of 4-- and
Morin said. Supply, demand and vacancy
Apartment News | November/December 2020
9
will decide how the apartment industry in Arizona fares. –Continued on next page
azmultihousing.org
Tucson Apartment Demand
Tucson economy Tucson has been pretty resilient throughout
Employment declines were seen in employ-
the pandemic, Morin said. It has performed
ee and health services, transportation, and
better in initial losses in employment. How-
manufacturing. Employment growth was
ever, she added that lower wage employment
experienced by companies such as Caterpillar,
has not kept up with mid- and high-wage jobs.
Comcast, ADP and Raytheon.
“Before the pandemic, the Tucson economy was actually picking up after a long and slug-
Apartment demand will continue to remain strong, Morin said.
How does Arizona rate vs. other parts of the country? “Overall, I’m very optimistic about
gish recovery,” Morin said. “Tucson was finally
the Valley, particularly Phoenix and
getting its footing.”
Tucson, compared to other areas around the country,” Morin said. “We rely on the leisure industry, which
Demand Starts to Rise After Weak Start to 2020
should bounce back. In dense areas, workers can now work remotely. I’m extremely optimistic that employers will continue to look to Phoenix as being more affordable and offering a better quality of life.”
Flagstaff economy Flagstaff experienced a 20 percent job loss from February to April.
The market will depend on the return of leisure and student activity.
Retail, leisure and hospitality all took the hardest hit. According to
At his annual economic outlook, this year titled “A Tale of Two Econ-
a study conducted by Northern Arizona University, while 84 percent
omies: The Employed Versus The Unemployed During COVID-19,”
of the businesses remained open, 37 percent laid off or furloughed
Elliott D. Pollack of Elliott D. Pollack & Company, predicted:
employees.
“The lack of a meaningful timeline for a vaccine, therapeutics, or in-
With NAU comes 30,000 students. It’s still unclear what kind of im-
expensive, quick, and reliable testing makes forecasts more uncertain
pact COVID-19 has had on the school. New apartment construction
than usual.”
is moderate, and new product could outpace demand, Morin said.
Apartment News | November/December 2020
10
azmultihousing.org
NATIONAL APARTMENT, SINGLE-FAMILY HOUSING OVERVIEW/LOOK AHEAD Kimberly Byrum with Meyers Research presented the national apartment and housing overview and look ahead at APTUnite. Byrum’s takeaways:
• Housing is following a V recovery with Millennials the No. 1 buyer right now. • Working from home is impacting everyone. Don’t expect that to change. In the multifamily
• Contributing to an income cliff timeline:
sector, residents are looking to modify a 750
the eviction moratorium, PPP deadline,
SF apartment to add a personal work space.
airline job cuts and federal student loan forbearance.
•G DP expected to return to 2019 levels by 2020, jobs are expected to rebound in 3 years, inflation will rise moderately above 2 percent for some time. • Multifamily new construction: very few starts through end of the year.
• Good for home builders: lack of resale supply, low mortgage rates, expanded buyer pool from work from home and study from home phenomenon. • Bad for home builders: Lack of new home inventory, high land costs, supply issues, lumber pricing and inability to keep prices low and margins high. • The economy is recovering but still damaged.
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Apartment News | November/December 2020
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azmultihousing.org
AMA members earn 2% Cash Back* How Doers Get More Done Home Depot is dedicated to helping members save time and money. AMA With an easy-to-use website and multiple methods of delivery, we make getting the products you need convenient and simple. For even more business benefits, join our Pro Xtra free loyalty program for the opportunity to earn up to a 2% annual rebate and receive exclusive offers like 20% off paints, stains and primers. Use agreement code HDNAA-AZ to start saving more today.
Contact if you have Sarah Fluke at 602-296-6212 questions or would like to enroll in the Pro Xtra program.
*Accounts must be registered/enrolled at homedepot.com/c/Pro_Xtra to receive rebate credit of up to 2%. Minimum rebate period spend of $25,000 on in-store or homedepot.com purchases required to receive a rebate. Please call 1-866-333-3551 or visit naahq.org for further details. Pro Xtra Paint Rewards is a sub-program of the Pro Xtra Program. Pro Xtra Paint Rewards qualifying ourchases will be tracked during the program period and include select The Home Depot Paint department in-store purchases an online purchases from the The Home Depot website, see homedepot.com/c/
Š2020 Home Depot Product Authority, LLC reserved.
Apartment News | November/December 2020
MPM-14843
12
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Legally Speaking
What will 2021 bring? With 2020 in the rearview mirror, will there be headwinds or tailwinds for the apartment industry?
2021
By Mark Zinman, Esq.
It’s that time of year, where I sit down and write a projection of what property managers can expect in the coming year from a legal perspective. If I had to summarize my thoughts, it would be as follows: “We will likely continue the changes that we have seen since March, 2020 and expect more pro-tenant advocacy.” In other words, buckle up managers and owners and get ready for more change. Last year, in the November-December issue of Apartment News, I wrote the following about 2020:
CHANGE
“Recently, there has been an influx of stories regarding landlord-tenant matters and the negative perception being created about landlords. A day doesn’t go by without a story being published online or written in the newspaper about a landlord increasing rents or evicting a tenant. These stories ultimately create the political climate around which legislators pass laws and judges review landlord-tenant disputes. It is expected that more anti-landlord legislation will be proposed and judges will look more critically upon evictions.” There was absolutely no way to know that COVID-19 would cause a
It’s not as if grocery stores were forced to hand out free food to
global pandemic or the impact it would have on our industry. However,
anyone who wanted it, yet that is effectively what happened with
the anti-property owner sentiment that I mentioned in 2019 permeated
property owners – they were forced to provide services to people
every news story and piece of legislation that we saw in 2020.
who were not required to timely pay for it. This was viewed as acceptable by voters because of the narrative that has been created
While COVID-19 hit everyone in the country, your elected officials
about property owners.
decided for property owners to bear the financial burden for non-paying residents. This unprecedented and unconstitutional decision did not happen in a bubble – it happened because of the negative perception being created about property owners.
Apartment News | November/December 2020
–Continued on next page
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During this time, we have repeatedly heard from clients that they
are no guarantees that such matters will not be extended or sought
can’t wait until the pandemic is behind them and things go back
again. As of the writing of this article, Gov. Doug Ducey’s Executive
to normal. Unfortunately, I am here to tell you that legal matters,
Order regarding evictions was set to expire on Oct. 31.
evictions especially, are not simply going to revert to how they were
The Centers for Disease Control moratorium is scheduled to expire
pre-COVID and managers must be prepared for change.
on Dec. 31. However, on a national level there are talks about whether
The narrative that property owners and managers are bad is not
another moratorium should be created to deal with the pandemic.
going away once COVID-19 gets under control. This same narrative
While there is no way to know whether new moratoriums would be
will be used to propose pro-tenant legislation and advocacy in 2021.
passed, this demonstrates the fact that everything will not simply go away on Jan. 1, 2021.
First, many people may not realize it, but during the pandemic, the Arizona Supreme Court passed important changes to the practice
What is known, is that managers and owners must take an active role
of law. Starting on Jan. 1, 2021, there will now be a new lower level
in what happens in the years to come. The AMA works diligently to
of a legal provider, called a legal para-practitioner. This is someone
represent this industry at the legislature and in the courts.
who hasn’t gone to law school or passed the bar exam, but has met
It’s necessary for members to support the industry both financially
certain educational and testing criteria to enable them to go into
and with their time. This could be as simple as joining the Gov-
court and represent people.
ernment Affairs Committee or publicizing the positive things your
The thought behind this is that they will charge less and thus bring
communities are doing for residents.
access to justice for people who can’t afford attorneys. It is suspected
These are challenging times for residents, managers and owners
that these lower tier practitioners will likely start showing up on
alike and we need to be proactive as these issues arise.
landlord-tenant matters, including evictions.
Mark B. Zinman is an attorney with Zona Law Group.
This means that even if they don’t bring meritorious defenses for
He is a past and present board member with the AMA.
residents, they will cause delay and increase the attorneys’ fees that
He may be reached at 480-994-4732.
owners pay for evictions. Second, while the current eviction moratoriums are set to lapse, there
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Fleet in the Valley
Dispatch Response Times
Fixed Monthly Rates
Ray King | Director of Sales | (602) 740-1637 | rking@windomsecurity.com Apartment News | November/December 2020
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Desert Jewel
Optima Kierland hosts 2nd online AMC event
By Michelle Howland
Roof top terrace. Sundeck. Zen garden. Car-charging stations. Pet-washing stations. The September 2020 Associate Member meeting was AMA’s second virtual event of its kind. For the approximately 40 AMC members on the Zoom call, it was a stroll through a true desert jewel, Optima Kierland. While we did have the opportunity to do conduct introductions of each associate team member and the company they represent, it was a bit different than in person. Still, it gave us the opportunity to get our names and services out there. We even had some first-time attendees.
AMC members participated in a golf lottery. The winner of the one-on-
We had the pleasure of learning about the Optima communities and
one meeting with Optima was Danielle Archuleta with Fetch Package.
their philosophy on business from Regional Manager Jamie Springer.
About Optima Kierland
Jamie took us on a virtual tour of all of the amenities, which were
Designed by award-winning architects David C. Hovey, FAIA, and David
many. It really gave us a feel of this gorgeous community at 15450 N.
Hovey Jr., AIA, these luxurious new residences offer an experience
Scottsdale Road, in Scottsdale.
of desert living unlike any other. The elegant, modern living spaces
Jamie also shared that Optima Kierland comprises four buildings:
blend seamlessly with the outdoors, and exclusive amenities promote
7120, 7140, 7160 and 7180. The 7120 building is sold out; 7140 and 7160
an overall lifestyle of health and well-being.
are currently leasing. The 7180 building, condominiums, is currently selling units. –Continued on next page
Apartment News | November/December 2020
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Developed by Optima, 7140 Optima Kier-
• Car-charging station
land is the newest apartment tower within
• Business center
the multi-tower enclave of Optima Kierland,
• Clubhouse
North Scottsdale’s most desirable address.
• Lounge
Comprised of 213 meticulously designed, one-,
• Conference room
two- and three-bedroom homes, 7140 Optima
Outdoor space
Kierland embodies the hallmark design of
• Roof terrace
Apartment Amenities
the David Hovey Jr., who creates cutting-edge, sustainable residential buildings accented with lush, hanging gardens.
• High-speed internet access
• Wi-Fi • Washer/dryer (in unit) • Ceiling fans
• Sundeck • Courtyard • G rill • Z en garden • B alcony
• Smoke free
• P atio
• Storage units
• G rill
• Double vanities • Tub/shower Kitchen • Dishwasher • Disposal • Ice maker 7140 Optima Kierland provides a lavish array of private amenities such as a Skydeck with Arizona’s first residential rooftop running track, a heated lap pool, a full outdoor bar and kitchen with entertaining spaces, indoor and outdoor theaters, a state-of-the-art fitness center, an indoor basketball court, and more.
• Granite countertops • Stainless steel appliances • Pantry
Fitness and recreation
• Island kitchen
• F itness center
• Microwave
• S auna
• Oven
• S pa
• Range
• Pool
• Refrigerator
The homes feature luxury plank flooring
• Freezer
throughout, solar shades, floor-to-ceiling glass,
Living Space
expansive terraces, and the latest in smart home
• Carpet
• Basketball court • Game room • Media center/movie theatre
technology. The elevated living experience at
• Tile floors
About Optima
Optima Kierland Apartments includes an ex-
• Family room
Optima is a privately-held, design-driven
traordinary service experience for residents.
• Walk-in closets
real estate development firm with offices
• Double pane windows
in Illinois and Arizona. For more than 40
All residents will enjoy Optima’s complimentary in-home concierge program, Optimized Service®, that provides assistance with conveniences like in-home dry-cleaning delivery, plant watering and package delivery. A virtual concierge service is also available to book reservations or appointments, coordinate travel and other similar tasks.
• Window coverings
years, Optima has been developing, designing,
Community amenities
building, marketing and managing striking
• Demonstration kitchen
urban and suburban luxury residential com-
• Hot tub and cold plunge
munities. From the beginning, Optima aimed
• Locker rooms
to reinvent housing by integrating the func-
• Sauna
tions involved in new construction within
• Steam rooms
one company. Optima controls and executes
• Dogs and cats allowed (breed restrictions
every aspect of the process in-house – de-
The onsite property management team at
apply; two pet limit)
velopment, design, construction, sales and
Optima Kierland Apartments was recently
• Parking: covered and assigned
management – for a dynamic system that
awarded the Best Community and Manage-
• Community-wide Wi-Fi
offers greater focus and fluidity. Optima is
ment Team at the 2020 AMA Tribute Awards
• Wi-Fi at pool and clubhouse
committed to delivering extraordinary living
for its work with the first rental tower, 7160
• Maintenance on site
through design, innovation, sustainability
Optima Kierland. Steps from the high-end
• Recycling
and management. The result has been the
dining, shopping and nightlife at Kierland
• Renters insurance program
creation of over 40 communities in Arizo-
Commons and Scottsdale Quarter, 7140 Op-
• Dry cleaning service
na and Illinois, along with being nationally
tima Kierland is a world-class destination set
• Pet play area
recognized with over 50 prestigious awards.
against a captivating desert backdrop.
• Pet-washing station
Learn more at Optima.Inc.
Apartment News | November/December 2020
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AMA Patron Profile Roofing Southwest 7620 N. Hartman Lane, Suite 120, Tucson, AZ 85743
By Peter Madrid
Building relationships and maintaining them is the cornerstone of the Roofing Southwest way of business. So, when the COVID-19 pandemic struck in
“The best part of being a member of AMA are
the spring, Roofing Southwest reminded its
the relationships we have built along the way,
employees of the importance of those rela-
both with other industry professionals and
tionships.
property management companies,” Dowse
“Anyone would agree that COVID-19 has taught us that we should never take anything for granted,” said Roy Dowse, Operations Manager of Roofing Southwest in Tucson. “In the beginning of this pandemic outbreak, the
said. “As a Patron Member, we have been able to grow life-long relationships with various professionals in the state, bringing in new business opportunities which have allowed our company to grow.”
fear of the unknown is what affected every
How has Roofing Southwest weathered the
person out there, which in return affected
COVID-19 storm? Dowse said COVID-19 has
businesses as well. “People were scared to show up to work or simply go out in public. However, Roofing Southwest was quick to implement new means and methods to keep our employees and customers safe. We adapted to
brought on a variety of
Our people are what make the difference and have allowed us to weather the storm together” – Roy Dowse
the pandemic quickly as
challenges that no one is a stranger to. “Our people are what make the difference and have allowed us to weather the storm together,” he said. “Our team members are devoted, loyal, honest, fun loving, team players,
we already had virtual meeting platforms in
humble, grateful, and care about the end
place. We are fortunate to have a great team of
product and the process to get there. Their
leaders that were able to provide the resources
trust in the company accompanied with their
for all of us to succeed during this time.”
hard work, grit, and perseverance have kept
Roofing Southwest has been an AMA member for more than two decades, but its affiliation extends beyond that. Roofing Southwest was
Roy Dowse Operations Manager (520) 336-3410 royd@roofingsouthwest.com
as going. We couldn’t be more thankful for our team of experts that give their all, day in and day out.”
founded in Phoenix in 1971; it has worked alongside the association since its founding. –Continued on next page
Apartment News | November/December 2020
18
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“The best part of being a member of AMA are the relationships we have built along the way, both with other industry professionals and property management companies.”
Industry groups are vital to the success of any business. How has Roofing Southwest leveraged it standing in the Arizona multifamily community through its membership in AMA? “By utilizing the relationships we have built to host socially distanced meetings. By utilizing the relationships we have built to create new relationships. By utilizing the association membership directly to make introductions and offer help where people need it in a variety of capacities, both personal and professional,” Dowse said. Multifamily continues to be one of the hottest property types in Ari-
timeliness of inspecting and getting a proposal back to the property
zona. How has Roofing Southwest benefited?
managers, and then performing the work of a quality install. There are so many roofing companies out there, but our ability to perform
“Nobody likes a leaking roof, and maybe even worse than that, no
at such an elite level is what benefits us the most.”
property management company want calls from an angry tenant (or owner) about a leaking roof,” Dowse said. “Even during one of the
What does it mean personally to Dowse to be a member of AMA?
driest summers on record in Arizona, buildings still have leaks. So,
“It means that I get the opportunity to help our industry partners with
the need is there.
their roofing needs and nothing makes me happier than solving a
“I think Roofing Southwest benefits more because of our ability to
roof problem for someone and hearing how gratified they are when
mobilize, responding to leak calls quickly, being efficient in our
they have “No Leaks.”
Have you visited us on the web?
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THANK YOU
What’s up
PATRON MEMBERS! P L AT IN U M
down in Tucson
Annual golf tourney scores
GOL D
The Sept. 25 AMA Tucson/SmartRent Golf Tournament at Randolph Golf Course was a hit – on many levels. • It was the first in-person event for Tucson AMA members in over 6 months;
SILV E R
• It raised more than $30,000 for the Better Government Fund; • It attracted a sold-out field of 154 golfers.
The original theme of March Madness (the tourney was scheduled for March) brought out some imaginative and creative ideas. Edmondson Law Group won the Best Use of Theme Award for event hole sponsors with Mad Hatter motif. Arizona 1st Realty’s Tune Squad won the Bran-
For more information on how to become a patron member of AMA, please contact Sarah Fluke, sfluke@azmultihousing.org, 602-296-6212.
don Bosshardt Award for best use of theme by golfers. A big thank you to the event sponsor, SmartRent.
Apartment News | November/December 2020
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Serving ‘work from home’ residents
By Elaine Simpson
Google “How can a landlord better serve their work-from-home residents?” and you won’t find an article that provides an answer to this question. That’s probably because we are all trying to figure out the answers and one reason we created this article.
The Centers for Disease Control says social media is upsetting people and increasing anxiety due to the deluge of rumors and fear mongering. They suggest less use of social media and more use of emails to disseminate information to residents. You should be communicating with your residents via personal emails, the old-fashioned way – with cards and notes and if your residents desire communication via social media, then by all means do so. Not everyone has extra rooms in the apartment homes to set up a home office or place for their children to set up and attend virtual
“When there’s no wind, row.” We are all rowing as fast as we can right
school. Why not make a list of suggestions to give them for ideas on
now due to our current environment. The following are some of the
how to create those spaces?
ideas we came up with that might help you and your residents make
For example, if your apartments offer large closets, perhaps the
the best of working from home.
closets would accommodate the addition of a small desk creating a
Many of your residents are now working from home for the first time
study nook. Use a copy of your floor plans and illustrate options for
and some have to contend with their children being entertained and
adding those workspaces.
educated from home while they are working. Virtual education and virtual activities are becoming the norm.
Apartment News | November/December 2020
–Continued on next page
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Suggest residents dedicate an area just for work/study and maybe a
bio: Elaine Simpson
special drawer to hold work and school supplies. Even a corner of a kitchen table or countertop can become a workstation. It is best not
President, Occupancy Solutions, LLC Operations, Leasing, Marketing Consultant and Training Specialist
to work from the couch or bed to avoid mixing business with pleasure. If the everyday apartment community noise is a distraction, suggest they invest in some good headphones to minimize distracting noises but allows them to hear sounds the want to hear such as phone calls,
Elaine Simpson has been involved in the housing industry since 1986. Starting on site as a leasing agent, she moved up, working as assistant manager, site manager, executive director and finally senior regional manager with communities in several states and portfolios containing more than 1,400 units. Simpson has worked for local and national industry leading companies and throughout her career, has trained new managers across the country, assisted in creating “Best Practices” and procedure manuals, participated in numerous task forces during national mergers, acquisitions and dispositions and headed “turn around” teams assigned to troubled communities, successfully increasing income while decreasing expenses and allowing the property to recover economic viability.
computer alerts or little voices. Do the research for your residents and give them the links to resources such as where they can purchase items that may help them work from home more effectively. The same goes for standing desks, ergonomic chairs, computer chargers, dual monitors, etc. Another good technical tip to pass along: if the WIFI speed is slow in their apartment, suggest that they try plugging their computer di-
Family fun for your residents
rectly into their router to speed things up. If that’s not possible, just moving the router to a different location in the apartment may help.
According to Education Week, over 55 million students are learning remotely. It’s a challenge for parents to keep track of the classwork and homework as well as keeping kids motivated. Here’s a list of some fun websites for children and the entire family to enjoy. Virtual learning does not have to come just from teacher-led assignments. Put the list in your next resident communication.
Task your staff to come up with some creative ideas to entertain all residents, not just those working from home during this time Occupancy Solutions will continue to gather good ideas to share with you during these trying times. If you have any specific challenges you would like to discuss, please call or visit our website today.
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Apartment News | November/December 2020
24
Crayola Lesson Plans: Crayola.com/lesson-plans
K en Burns in the Classroom: Documentaries and lesson plans regarding American History can be found at az.pbslearningmedia.org/collection/kenburnsclassroom/home/
K idLit TV: webseries, podcasts and tutorials from popular children’s authors and illustrators. KidLit.tv
Learn@Home (YouTube): learnathome.withyoutube.com
ASA at Home: Science lessons and virtual tours can be found N at nasa.gov/nasa-at-home-for-kids-and-families
Scholastic Learn At Home: learnathome.scholastic.com
S esame Street (Caring For Each Other): Visit sesamestreet.org and sesameworkshop.org for games, videos and wellness tips.
ix it up with some fun sites too. The San Diego Zoo, for example, M offers animal stories, facts, videos and activities at kids. sandiegozoo.org.
E xplore is another site. Log into explore.org/livecams to view up to 95 different live camera feeds of nature and animals.
For Dr. Seuss videos and activities visit Seussville.com.
T he Boston Children’s Museum offers daily activity emails and a virtual tour. Visit BostonChildrensmuseum.org/museum-virtual-tour.
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