ON-SITE
Professional Publishing, Inc
www.RentalHousingJournal.com
On-Site
Getting Tenants To Care
Management
Maintenance
Landlord/Tenant Law
Concrete Answers
Vol. 22 Issue 11
November 2013
page 7
page 13
page 22
Published 25 Years
SEATTLE • TACOMA • OLYMPIA • EVERETT 17,000 Papers Mailed Monthly
to
Puget Sound Apartment Owners, Property Managers & Maintenance Personnel
Published in association with: Washington Apartment Association, IREM & Washington Multifamily Housing Association
NOW MORE THAN EVER! You should attend TRENDS ‘13
29th Annual TRENDS Rental Housing Education Conference and Trade Show, in Seattle THE LARGEST HOUSING MANAGEMENT CONFERENCE & TRADE SHOW IN THE NORTHWEST
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“POSITIONING FOR CHANGE”
DECEMBER 10, 2013 WASHINGTON STATE CONVENTION CENTER, SEATTLE
T
RENDS is “THE” largest and oldest Northwest rental housing management and ownership education conference and trade show. See the TRENDS website at www. trendsnw.com The 29th Annual TRENDS will be December 10th at the Washington Convention Center, Seattle 8:15 am to 4:00 pm. TRENDS is the longest running a continuously produced event at the Washington State Convention Center. TRENDS is the premier annual education conference and trade show for Northwest rental housing ownership, management and maintenance. TRENDS is a national award-winning event. TRENDS 2013 includes the largest regional industry trade show featuring over 215 exhibitors. Contact Diamond Productions for booth inContinued on page 3 Page 33
Washington Apartment Association
Keeping Your Tenants to Produce More Profits Page 34
In this Issue ... 40 Workshops
Speakers & Bios .............. Pg 12
1500 Attendees
Day of Show Sponsors ..... Pg 5
215 Exhibits
Exhibitors .......................... Pg 6
CLOCK HOURS AVAILABLE
Registration Form ............ Pg 3
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WMFHA Hosts Japanese Delegation Page 36 Chapter 27 Institute of Real Estate Management
Building Local Relationships to Increase Leasing
We Paint Hallways, Cabanas, and Offices
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On-Site Northwest • November 2013
ON-SITE TRENDS ...from front page
Bill Jackson, TRENDS, Inc. President Representing, Rental Housing Association (RHA)
President's Message
TRENDS 2013 29th Annual Education Conference and Trade show To keep up with our changing industry, everyone should attend TRENDS 2013! The strength of TRENDS has always been the outstanding educational opportunities offered at the conference. The TRENDS Board works very hard to provide quality speakers and up-to-date subjects for every attendee: Owners; Portfolio Managers; On-site Managers; Leasing Agents and Maintenance Managers. I believe the 29th Annual TRENDS 2013 Education schedule is one of the most dynamic and timely ever offered. We are particularly proud of this year’s workshop selection, which in-
Clock-Hours
cludes topics that relate to our changing economy and the 'Forecasting' of our industry’s future. This years’ program features workshop on using ‘Social Media”, as well as workshops focused on leasing, marketing and selling skills. Feel free to attend any of our outstanding workshops - it's your choice! See the complete schedule at www.trendsnw.com The TRENDS Trade Show also provides an opportunity to see the products and services of our industry. Take time to visit the more than 215 exhibit booths in the TRENDS ‘13 Trade Show! The goal of everyone on the TRENDS Board is to keep our indus-
Workshops 2013 How they work
1. ANYONE may attend the clock-hour workshops, EVEN if you don't want clock-hour credits. However, you only get the clock hour credits if you pay the additional $25.
TO RECEIVE YOUR 3 CLOCK HOUR
2. ONLY the workshops taught by Tamara Simon qualifies for Washington State Real Estate clock-hours.
CREDITS, YOU MUST FIRST PAY AN ADDITIONAL $25 WHEN YOU REGISTER
3. To qualify for the 3 clock-hours, you must attend ALL three classes taught Tamara Simon.
try moving forward. The TRENDS conference includes many successful partnerships, including the Rental Housing Association of Puget Sound (RHA), Washington Apartment Association (WAA) and the Institute of Real Estate Management (IREM). Finally, we are very proud that TRENDS is the longest running and continuously produced event at the Washington Convention Center. Hope to see you there! www.trendsnw.com
Admission to TRENDS includes lunch, workshops and trade show. $65 (early registration) $80 after December 4, 2013 TRENDS offers Washington State Real Estate clock hours. Ticket discount available- when purchasing 9 or more tickets (see TRENDS website for details).
once they start.
TRENDS is brought to you by: • Washington Apartment Association (WAA) • The Institute of Real Estate Management (IREM) • Rental Housing Association of Puget Sound (RHA)
The clock hours provided by the Washington REALTORS® Association
The TRENDS ‘12 Premium SIGNATURE Sponsors: Buy-Rite Carpet Wholesaler E-RENTER.COM
4. You must SIGN-IN and SIGN-OUT of each clockhour workshop. 5. No one is allowed to leave the clock-hour class
The clock hours provided by the Washington REALTORS® Association
On-Site Northwest • November 2013
formation 206-779-5890. The TRENDS Education Conference draws over 1,400 attendees and offers 40 education workshops. View the TRENDS workshop schedule at www.trendsnw.com. Who attends TRENDS? Rental housing property owners; property managers; leasing agents; maintenance personnel and portfolio managers. Registrar on-line for TRENDS ’12 www.trendsnw.com
TRENDS is produced by Diamond Productions 206-779-5890
3
ON-SITE
Rents up 2.4% in Third Quarter By Tom Cain Seattle - Apartment Insights survey shows rents increasing 2.4% in the third quarter. Over the past year they have risen 6.9%, reports Tom Cain of Apartment Insights. The data are from his Seattle firm’s 3rd quarter statistics and trends on 50+ unit properties in the King/Snohomish market. VACANCY: 4.40% The vacancy rate for conventional, stabilized 50u+ properties in the King/Snohomish market is 4.40%, virtually unchanged from 4.41% last quarter. A year ago it stood at 4.85%. The overall vacancy rate which includes properties in lease-up and out-of-service increased from 5.77% to 5.94%. This indicates that all the newly opened properties are negatively impacting the vacancy rate when considering the entire market. King County has a vacancy rate of 4.36%; Snohomish County is at $4.54%. When we began our survey in 2005, there weren't enough 50u+ properties in the area north of the ship canal to 85TH Street to create more than one submarket. With all the new units being built here, we are now able to break this area down
into Ballard, Fremont-Wallingford and the U. District. Surprisingly, of all the submarkets in the two-county area, Ballard has the lowest vacancy rate, 2.39%. However, when factoring in the overall vacancy rate that includes the 586 units in lease-up, the rate is 14.59%. This is by far the highest overall rate of any submarket in the twocounty area. The 591 units that are currently under construction in Ballard will also be having a huge impact on this market in the years ahead. The weakest markets are on the Eastside. The vacancy rate in the
Bellevue East submarket increased to 6.58%, and the Eastside South submarket is about the same as last quarter at 6.43%.
this in perspective, in the two years prior to the second quarter, the average absorption was 525 units per quarter.
RENTAL INCENTIVES: $9 (0.74%) Rental incentives fell from $14 to $9 per unit. In the two-county area 21.6% of the properties are offering incentives, down from.23.3% in the second quarter.
RENTS: $1,219 per Unit $1,190 per Unit – $1.45 per Square Foot 1.41 per Square Foot Following a 3% increase in rents in the second quarter, rents rose 2.4% from $1,190 to $1,219 per unit. Over the past year rents have risen 6.9%. Unquestionably, the hottest submarket again this quarter is Capitol Hill. Rents surged $97 to $1,482 per unit, a 6.9% increase. Last quarter, the effective increase was 7.2%. Yearover-year it is 13%. Rents in downtown Seattle climbed to $1,773 per unit and $2.38 per square foot. Rents here have risen 8.9% over the past year. Rents in grade B properties have bumped up 8.7% in the past year. Grade A and C property rents increased 6.8% and 4.7% respectively.
ABSORPTION: + 1,875 There were +1,875 units absorbed this quarter, up from +1,710 units last quarter. This is a lot of units. To put
NEW CONSTRUCTION There are currently 14,737 units under construction, up from 13,841 units last quarter and 10,022 units a year ago. The majority of these units are in the city of Seattle. Continued on page 9
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On-Site Northwest • November 2013
ON-SITE Trends 2013 is brought to you by:
Special Thanks to the TRENDS 2013 Premium ‘SIGNATURE’ Sponsors:
Buy-Rite Carpet IREM- Institute of Real Estate Management
WAA- Washington Apartment Association
RHA- Rental Housing Association of Puget Sound
E-RENTER.COM
Special Thanks to Puget Sound Energy
Visit the TRENDS ‘GREEN ROW’
where Puget Sound Energy Partners are exhibiting
Thanks to Foundation Bank for sponsoring the Latté Cart
is produced by: Diamond Productions, 425-679-6872 Visit the TRENDS 2013 web site: www.trendsnw.com TRENDS BOARD OF DIRECTORS 2013 Bill Jackson - President John Hatton – Vice President Darlene Pennock– Day of Show Rep. Sherry Zane - Secretary Rob Kellum - Treasurer Eric Smith – Board Member Leo Violette – Board Member Sherrie Clevenger – Board Member Rob Trickler– Board Member
On-Site Northwest • November 2013
Thanks to the TRENDS 2013 Day of show sponsors: Tilco MOCO ConService Atlas Paving Alpha Ecological Leisure Creations AmericanWest Bank Puget Sound Energy Cabinet Renovations
Saltaire Construction Alliance Credit Services Guardian Water and Power EasywayApartments.com PDS Paul Davis Restoration Washington Water Damage & Cleaning Service
Special Thanks to: APCON and SLABJACK NW
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ON-SITE
Visit These TRENDS 2013 Exhibitors Company Name About Grout Tile Specialties AccuSearch Advanced Energy Management Advantage Fitness Products All County Evictions All Weather Rooftop Solutions Alliance Credit Services Alliance Insurance Allied Residential Alpha Ecological American Floors & Blinds American Meter & Appliance American Pool Supply AmericanWest Bank Apartment Advantage Apartment Magazine Apcon, Inc. AppFolio Arrow Insulation Atlas Paving Co. Automated Gates & Equipment Axis Roof & Gutter Cleaning Basic Business Systems Bath Fitter Bathcrest of Seattle Blankenship Equipment Repair Bob Oates Sewer & Rooter Bravo Roofs Budget Key and Security BuildingLink.com Buy-Rite Carpet Wholesaler Cabinet Renovations CAP Supply Career Strategies
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Carports of Washington Cascade Water Alliance Casey & Skoglund, PLLC Central Construction Fence and Deck Certa Pro Painters Chase Commercial Term Lending Club Fitness Equipment CMB Construction Coin Meter Comcast CondoInternet ConService Contract Furnishings Mart Cort Furniture Rental Criterion Brock DE-El Enterprises Inc. Dean and Homer Insurance Department of Ecology, E-Cycle Washington DK Painting Dogwood Building Supply Doors, Inc Dryer Vent Solutions DSI-TV E-Renter USA Earthworks Landscape EasywayApartments.com Eden Advanced Pest Technologies Elite Resurfacing Executive Coatings & Contracting Fastrak, Inc. First Advantage First Choice Remodeling Fischer Plumbing Co Fischer Restoration Flags A’ Flying
Floor Plan Art For Rent Magazine-WA Fortress Railing Foundation Bank Genesis Credit GK Industrial Refuse Systems Glass Doctor Goodbye Graffiti Great Floors Guardian Water and Power Hainsworth Laundry HandyTrac Systems HD Supply Henry Co. Housing Search Northwest Infiniti Window Coverings ING Financial Partners IREM James Hardie Building Products KeyTrak Kidder Mathews Fair Housing Partners King County Hazardous Waste King Electrical Mfg. Co. Kurkov Construction L/T Services, Inc. Landlord Protection Service Inc Larry Palmer Insurance Agency Leisure Creations Lincoln Gutters Luther Burbank Savings Mac Gray Maintenance Supply Headquarters Malone’s Landscape Management Marcus & Millichap Inc. Continued on page 7
On-Site Northwest • November 2013
ON-SITE
Visit These TRENDS 2013 Exhibitors Matvey Construction Mid-Pacific Window and Door Miller Paint Company Millionair Club Charity Minol USA Miracle Method MOCO Inc Moen & Cleveland Faucet Group Mohawk Industries Mono Rooftop Solutions Mr. Pressure Wash Mr. ReKey National Center for Housing Management National Credit Systems Inc National Purchasing Partners (NPP) Noffke’s Towing Service Northwest Asphalt Northwest Center Northwest Playground Equipment Inc. NVL Laboratories, Inc NWP Services Corperation On-Site.com One Call Now Oneway Restoration Osaka Garden Service Pacific Breeze Pacific Supply Paragon Real Estate Advisors Parker Paint Paul Davis Restoration PayLease Pemco Insurance Perfect Drive Golf Carts Phillips Real Estate Services Pipeline Plumbing & Consulting
On-Site Northwest • November 2013
PlumbWorks Precision Concrete Cutting PRECOR Commercial Fitness Professional Publishing Inc. Propel Insurance- IPAH Program Property Solutions Public Health Seat. & King Co. Puget Sound Energy Rainbow International Carpet Cleaning Rainbow Playland RealPage Inc. RedRock Resurfacing Rent Collect Global Rent.Com, an eBay Company Rental Housing Association Rentler RentMoola Payment Solutions RESTORx Rice Insurance Riverstone Residential Rodda Paint SageWater Saltaire Construction Salvation Army Seattle City Light Seattle Housing Authority Seattle Public Utilities Seattle’ Best Pest Detection Servicemaster RESTORE Servpro of Central Seattle Shaw Industries Sherwin Williams Floorcovering Shine a Blind ShowerStart Sign Pros
Sitelines Park & Playground SLABJACK NW Snohomish County P.U.D. Social Media Made Easy Solid Waste Systems South Tacoma Glass Specialists Spartan Rooter Special Interest Towing Sterling Group Submeter Solutions Sunrise Glass Inc. Surface Renew Tacoma Power Texacraft Tropic Craft The Billing Associates The Chimney Specialists The Fitness Outlet The Screening Pros Tilco TransUnion USAgain Valet Waste Venturi Clean and Restoration Walker Insurance Agency Washington Apartment Association Washington Federal Savings Washington Multi-Family Housing Assoc. Washington Water Damage & Cleaning Service Water Systems WebListers Westlake Associates Wilmar Industries Yardi Systems
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Many apartment communities strive to create a welcoming office environment in order to put prospective residents at ease. From aromatic scents and freshly baked cookies to a warm fire, these comforts communicate a feeling of “home.” However, when managers have an office connected to their apartment or even inside their apartment home, sometimes the lines between the professional office and an employee’s personal space can blur. Q: I supervise several apartment buildings in which many of my managers work out of an office that is attached to or inside their apartment. Some of these employees have young children and pets. Often when I call these properties, I hear a dog barking or a child crying, and not always in the background. Sometimes I am even put on hold while the manager deals with an urgent child-related matter. I am concerned about these situations and how they are affecting residents and prospective renters. However, I’m not quite sure how
to deal with this issue since these managers have a personal residence attached to or combined with their office. A: You have a valid concern and it needs to be addressed. Yet, much respect and consideration are required when dealing with people regarding their pets and children. - ESPECIALLY their children! However, your employees must be made to understand that you have certain expectations regarding office protocol during business hours. If your employees are regularly allowing their children or pets to be in the leasing office during these hours, then this is a disruption to the leasing process and an inconvenience to your residents or prospective renters. Regarding pets, this could end up becoming a liability for your company, community and/or owner. Many people have pet allergies and/or phobias. When someone is looking for an apartment, they do not expect to enter a leasing office; which is a “place of business,” and find them-
selves confronted by a dog. They also aren’t thinking that they have to be prepared with a medication to counteract their body’s response to an extreme cat allergy. They are expecting a professional business setting where they plan to get information about renting an apartment. As with any other office policy or procedure, something should be in writing regarding these issues so that employees will know what the expectations are. It might seem like “common sense” to you for your managers to keep their personal lives separate from their professional lives. On the other hand, when people “live where they work,” it’s not always easy to keep the lines clearly defined; these managers have an obligation to their families as well as to their residents and employer. No matter what type of situation you are dealing with on site, it’s important to keep the lines of communication open. This will ensure that the on site managers understand your expectations and that you will provide them with the support they
need. That way, they can handle their responsibilities at work, as well as at home, and put appropriate distance between the two. After all, employee turnover can have an even greater impact on the dynamics of your community and your bottom line, than apartment turnover.
If you have a question or concern that you would like to see addressed next month, please ASK THE SECRET SHOPPER by making contact via email or through the Shoptalk website. Your questions, comments and suggestions are ALWAYS welcome! ASK THE SECRET SHOPPER - Provided by: SHOPTALK SERVICE EVALUATIONS Phone: 425-424-8870 E-mail: joyce@shoptalkservice.com
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On-Site Northwest • November 2013
ON-SITE
D&Z – What Were You Thinking Moments Suzy Manager - Dana, Fall is here and Winter is on the horizon, which means freezing temperatures. Last winter I received a call from my portfolio manager that something was serious wrong with my expenses over a two month period. It turns out that I had a frozen pipe that resulted in a water leak. This was not something that I had paid attention to, what do you suggest so that this does not occur this year? Dana - Suzy Manager, you definitely don't want to hear from your portfolio manager or owner again this year wondering "What Were You
Thinking?" Frozen pipes or water leaks happen, it comes down to if you notice or not. As a manager these are the things that you will want to pay attention to.
financials, look at each expense line item and look for any number that looks high or out of place. Then, research that number to determine why it is high or low. Don't just assume what it may be.
1. Financials - Your expense categories will alert you to a possible water leak or additional issues that maybe happening on your property. It is imperative that you closely review your Income & Expenses often. Sometimes you cannot see a water leak, but your financials will show you. When it comes to your
2. Staff - I always talk about how important it is to work with your maintenance team to understand the liabilities of your property. The office team should meet with maintenance to review potential liabilities and what to do in emergency situations, such as a water leak. For example, where are the water shut off valves
and how do they work? Staff should know what to look for on their property walks and tours to ascertain if something needs attention. Zach, on the maintenance side of things, what do you train your maintenance team on for looking for and determining water leaks and liabilities on the property? What would be some direction you would give the office team to look for on property walks? I am a strong believer in constant inspections on the site here are a few things to remember: Continued on page 11
Dear Maintenance Men: By Jerry L'Ecuyer & Frank Alvarez
Dear maintenance Men: I came across an article about a new law concerning lead in brass fittings. I did not know any of my brass fittings contained lead. As an apartment owner, how will this affect me? John
the Reduction of Lead in Drinking Water Act was signed into law, which will reduce the allowable lead content of wetted surfaces in drinking water pipes, pipe fittings, and plumbing fixtures. This law goes into effect January 4, 2014 and in the *states listed below, the law has already been adopted.
Dear John: “No-Lead Brass” In January 2011,
(*California & Vermont (Jan 1,
2010), Maryland (Jan 1, 2012), and Louisiana (Jan 1, 2013) have adopted lead in drinking water standards that will go into effect prior to January 4, 2014.) Why is lead in brass in the first place? Answer: Lead is in brass to make castings pressure tight. In the foundry process lead is the last element to solidify and therefore seeks and fills the microscopic voids in the
brass. Bismuth will now replace lead in the foundry process. What products will be affected?
• Brass Ball Valves • Brass Check Valves • Backflow Preventers • Angle Stops • Straight Stops • Cast Brass Copper Fittings • Threaded Brass Fittings
Continued on page 10
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ON-SITE
Dear Maintenance Men ...continued from page 9 • Water Main Fittings • Faucets What products are not affected?
• Toilet fill valves • Tub & shower valves • Service saddles • Water main gate valves in 2” diameter or greater
How can I tell a lead brass product from a non-lead brass fitting? Answer: Non-lead brass will have “NL” stamped on the fitting. “NL” signifies “Non-Lead”. As an apartment owner, how will this new law affect me? Answer: Higher pricing. The “NL” fittings are more expensive to produce. If a job quote comes in significantly cheaper than competing quotes, the lower quote may be using illegal old stock. Dear Maintenance Men: I am upgrading and modernizing my rental units. Do you have any suggestions or trends that might be interesting? We are in a very competitive market and need to stand out. Kyle Dear Kyle: A trend that has been around a
while is painting one wall a bright color. A twist on this idea is to use flooring as an accent piece. Create impact by installing a bright colored floor or painting/staining an existing floor a new color. If you are in a very trendy area; stain and polish concrete floors. It will create an industrial look with a by-product of concrete floors being easy to maintain. Dear Maintenance Men: We are getting ready to interview a number of building contractors that have bid on a project for a building rehab. What are some questions we should keep in mind during these meetings? Mitch Dear Mitch: Understanding how a contractor works is a great way to eliminate problems down the line. A few questions we feel are important and should be asked every time. 1. Ask about a written schedule such as start and end dates and more importantly, ask when major events are scheduled. For example: when are painters scheduled, when are the landscapers scheduled, when are the roofers scheduled, etc.? Knowing
when major events are to happen will help you determine if the job is running on time. 2. Will the contractor, his employees or subs be at your building every day? This is important as any day that the job is idle is a day no work is being done and the project may be falling behind. If the contractor or his superintendent is not on the job site, what happens if there are question about the project? How are problems resolved quickly? 3. Change orders. Tame them before they start. There are almost always change orders in a major project. What are change orders?? A change order is a change in the scope of work not in the original contract. Talk to your contractor about worst case scenarios or hidden issue that may pop up during the project and how they will be handled 4. Ask how to reach the contractor after hours and for emergencies. 5. Something to keep in mind: The lowest bidder is not always the most economical. The lowest bidder often uses change orders to bring his price up, sometimes surpassing the highest bidder. The lowest bidder will often have
issues complying with above questions #1, #2, #3, & #4.
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ON-SITE
D&Z ...continued from page 9 1. Set aside a good chunk of time 45 – 60 minutes 2. Use a checklist so you don’t forget things to look for. 3. Walk where you don’t normally go – around the backs of buildings, between buildings, perimeter of property, and try to walk as close to the building as possible. 4. Don’t be afraid to get dirty (check lower crawl spaces, upper crawl spaces), and bring a ladder and a flashlight to be able to find items in these dark places. 5. Don’t just write down what you see. Instead, create a system to be able to track and complete the work needed ASAP while it is small and easily repairable. On another note from your conversation with Suzy, be sure to have an emergency response plan before the emergency happens. There are a couple of best practices that should be done in order to be prepared if and when emergencies do strike in the middle of the day or night. FIRST: Develop an emergency safety binder that outlines what to do in case an emergency occurs. It should outline different emergencies and the protocol that needs to be followed in order
to decrease the potential liability and damage from the emergency event. For instance what should we do in case of fire, leak, earthquake, flood, bomb threat, terrorist attack, gang activity, domestic violence, or any other potential risk issue. Does your staff know what the corporate response should be with concern to residents, staff, and the media? This should all be outlined in the emergency safety binder. Also include the location of utility shut offs and the items needed to get those systems shut down; such as valve keys, fire system codes and passwords, main electrical panels, and local responders contact information. Obviously, 911 should be called in case of emergency, but what about non-emergency, gas leaks, animal control, neighboring properties, motels, contractors, or anyone else you may need in a moment of panic to alleviate the pressure of the moment? Remember to develop this plan before the event, practice, and let all staff know where the binder is located and how to use it. SECOND: I like to have an emergency zone at the property that holds the Personal Protective Equipment, valve keys, locate maps for utilities, and any other emergency or safety items that may be needed at a moment’s notice, so they can be
located quickly and readily used while responding to the emergency. See the picture for a nice Emergency Zone outline. The goal should always be to prevent major catastrophic events from occurring through proper inspections and general awareness, but even the most prudent staff and properties will on occasion be faced with an emergency. Remember to stay calm, have a plan, and work the plan. It will put your staff and residents at ease and likely save further damage.
Advertise in the Landlord Times - Onsite Circulated to over 17,000 Apartment owners, On-site, and Maintenance personnel monthly.
Dana Brown and Zach Howell have been working and training Managers and Maintenance staff in the property management industry for 20 + years. They are excited to give back and share the crazy stories that can only happen in our industry. We would love it if you would share your stories and “WHAT WERE YOU THINKING” moments with us as well as questions that you need answers to. Dana can be reached at: danabrown3321@gmail.com. Zach can be reached at: zach@aminstitute.net
Call 503-221-1260 for more info.
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CONFERENCE & TRADE SHOW IN THE NORTHWEST THE LARGEST HOUSING MANAGEMENT CONFERENCE & TRADE SHOW IN THE NORTHWEST
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DECEMBER 10, 2013 WASHINGTON STATE CONVENTION CENTER, SEATTLE
Speakers, Topics, and Bios 8:15–9:05am Landlord 101 #1 Clock Hours • ”Hour-Match.com” • Speaker: Tamara Simon Learn how to prepare and market your property to attract good tenants. You can be selective with the right screening criteria and choose the winners from the losers.
Tamara Simon is the owner of Koss Property Management, which specializes in the Leasing and Management of Single Family Homes and Apartment Buildings. By combining humor and her experience as a professional landlord for over two decades, Tamara has helped thousands of Real Estate Investors achieve maximum rental income and retain quality tenants. Simon, a popular speaker and teacher is the cre-
ator of the Landlord 101 class, which features ”The 10 Commandments of Property Management.” Tamara has served on the board of the Seattle Chapter of the National Association of Residential Property Managers and currently serves on the Board of the Rental Housing Association of Washington. 8:15–9:05am • The Nuts and Bolts of On-Site Management • Speaker: Phil Cresswell
This workshop focuses on successful on-site management AND BEYOND. Phil will review basic property management and explore advanced managing techniques. A few of the topics Phil will be discussing are: preparing a property for showing; evaluating a property; showing; selling a lease; property knowledge; creating a positive onsite environment; follow-through; prospecting and much more. In addition, Phil will examine how important ‘Attitude’ is in the on-site managers career. Continued on page 13
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12
In this Issue ...
On-Site Northwest • November 2013
ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 12 Phil Cresswell is currently an Investment Manager at Indigo Real Estate Services, Inc. and has been involved in the industry for over 12 years. Recently Mr. Cresswell oversaw a new development on Capitol Hill the Joule Apartments, a 295 unit community with retail space. Currently he manages The Commons in Bellevue, a property with over 600 units undergoing renovation plus the addition of 72 new units. Phil began his career at Essex as a Leasing Agent in 2002 and in 2004 was promoted to Property Manager. By 2008, he was responsible for almost 400 units. Phil has also been heavily involved with IREM at both the local and national level. He has been on the Executive Committee for the local chapter and was also a member of the 2009 National Executive Committee. Mr. Cresswell received his ARM designation in 2006 and has been part of the Essex Mentor Program for new employees since it was started in 2005. 8:15–9:05am • Making a Difference in Resident Retention-Customer Service! • Speaker: Cherie Haven Cherie will discuss the importance
ON-SITE
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of first impressions: in person, over the phone or in an email. She will explore the value of a leasing team’s communication skills both toward each other and to residents. Lease renewal will be discussed. And, how to professionally handle rent increases. There should never be a surprise! Ms. Haven’s main theme is that the on-site staff work as a team.
Ms. Haven was then recruited by Oakwood World Wide and went into the corporate housing industry/relocation industry. After starting and owning a corporate housing company she went to work with AIMCO as the area manager in Seattle and working with a developer doing marketing and corporate housing for several communities in seven states.
Cherie Haven joined MacPherson’s Property Management in February of 2010 with her focus on building the business with a dedication to customer service. Cherie Haven started in the field in 1991 as a Leasing Agent and then became the Activities Director for a medium size company in Oregon. She then worked for Metric managing two communities in the Beaverton. She was then transferred to the Seattle to manage a community in Kirkland as well as support the branch manager.
8:15–9:05am • The Viral Video Difference • Speaker: Rommel Anacan Have you considered using the power of video to attract a wider audience of customers? In this workshop, you will be taken through a proven system to creating, developing and distributing your own unique and organic viral marketing videos. You will be intrigued.
Rommel Anacan is the president and founder of The Relationship Difference, a corporate training, motivational speaking and consulting firm based in Orange County, California. Prior to launching the Relationship Difference he had a successful 20-year career in sales, management, training and property management. He is a multifamily industry veteran, having worked at all levels of the industry from onsite to corporate, where he developed a reputation for tackling common industry challenges in an uncommon way. Continued on page 14
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 13 8:15–9:05am • Managing Costs
Your
Maintenance
tee. Dean is currently employed by Gilbert Bros. Real Estate Services, in Port Orchard
• Speaker: Dean Hanks, ARM®
8:15–9:05am
There are always things that could be done in apartment buildings if the owners had an endless supply of money. Almost no one these days has an endless supply of money so... Attend this lecture to learn the factors to consider in order to make informed decisions to get the most out of upgrades, turnovers and routine maintenance expenditures.
• Conflict Management for Multifamily Professionals
Dean Hanks ARM® has been involved in building and equipment maintenance for nearly 40 years, with experience in marine engineering, power plant construction and maintenance, industrial production systems, as well as experience in all aspects of residential and multi-family maintenance. He began his property management career 21 years ago, and has been an Accredited Residential Manager since 1992, having served as ARM Committee Chairman in 1998. He has served as the course administrator for IREM course MNT 201-Managing Real Estate Maintenance Operations, and has served on the IREM Scholarship commit-
• Speaker: Douglas Chasick, CPM® As multifamily professionals, we deal with lots of people every day: lots of personalities, emotions and opinions—and not always pleasant to see and hear. And oftentimes, we try to solve the symptom instead of the problem. Result? More symptoms emerge! This session is about cutting through the symptoms and uncovering the PROBLEM. We’ll explore what makes a person difficult and examine the difference between “difficult” vs. upset people. We’ll review the basics of powerful communication, learn some simple, effective diagnostic techniques, practice our active listening skills, and discover the magic words that can diffuse almost any situation. Douglas D. Chasick CPM®, CAPS, CAS, SLE, Adv. RAM, CLP, CDEI is “The Apartment Doctor,” restoring rental
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health to multifamily professionals. With 37 years of investment real estate experience, he began as the Resident Manager of a 524-unit apartment property, and has been the President or CEO of five real estate companies, responsible for portfolios of over 28,000 apartments, and more than 8 million square feet of commercial, retail and industrial properties. A nationally recognized speaker and author, Doug was awarded his CPM® in 1979 and was a member of the IREM National Faculty for eight years. He is a Senior Instructor member of the NAAEI Faculty, leading the Advanced Instructor Training course and NAAEI designation courses. A licensed Real Estate Broker in Florida and Georgia, he is also a licensed Expert Fair Housing Instructor in the Commonwealth of Virginia, and the recipient of the 2010 NAAEI Apartment Career & Education (ACE) award and the 2010 Legends of the Industry award from Multifamily Professional and the Annual Brainstorming Sessions 9:30–10:20am Landlord 101 #2 Clock Hours • “Cash Cow or Cash Crocodile” • Speaker: Tamara Simon Avoid costly mistakes and increase your monthly cash flow. Start by understanding your lease and Landlord Tenant Law. 9:30–10:20am • How not to ‘blow’ an eviction — Documentation, to Action and Conviction • Speaker: Rob Trickler, Atty. Rob Trickler, Atty. will discuss how to make your evictions go smooth. This workshop goes beyond the basics. Rob will discuss proper documentation and the certainty that your contracts are all in order. In addition, he will explain how to keep important records in the correct court order. In addition, sharing advice on how to avoid common legal pitfalls associated with notices, their proper
use and proven methods to assure successful legal action. Rob Trickler is an attorney with a practice in Everett WA and the owner of All County Evictions. Other than some family based immigration work Mr. Trickler almost exclusively focuses on landlord tenant law. The overwhelming majority of what Rob does is evictions on behalf of landlords. Rob Trickler the 1st Vice President of Washington Apartment Association and a member of that Legislative Committee. In addition, Rob is also the Vice President of Snohomish County Apartment Operators Association and a member of their Legislative Committee as well. 9:30–10:20am • Unexpected Facts about Social Media and Leasing • Speakers: Lauren Ginder & Mark Davis Expect the Unexpected from the two presenters in this workshop. If you think you know everything about the world of social mediathink again. Lauren and Mark will uncover and discuss interesting features and uses of social media as it relates to property management. Both Lauren and Mark have long histories within the industry and technology. Lauren Ginder works as a marketing manager for Pacific Crest Real Estate, helping them reach their goal of creating strong and vibrant communities throughout the Puget Sound. She graduated from Gonzaga University with a degree in PR and Advertising. Lauren enjoys providing insight to community members throughout Seattle by reaching out to the Rental Housing Association audience and collaborating with property management advice, tips and support. Continued on page 15
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 14 Mark Davis has been in the multifamily housing industry for 10 years and is currently the owner of Hero Creative, which is a full service media company; Mark also resides on the board of directors for the Washington Multi-Family Housing Association. Mark started his career as a professional paraglide pilot in which he competed on a national level as well as teaching hundreds how to fly. 9:30–10:20am • Dollars and Rants— Communicate with residents who are angry, frustrated and hurt because you want to raise their rents? • Speaker: Rommel Anacan Navigating your residents through the changing rental market can be a difficult challenge. How do you encourage residents who are used to concessions, discounts and incentives to renew their leases without them? How do you effectively communicate and interact with residents who are angry, frustrated and hurt because you want to raise their rents? This workshop will show you how. 9:30–10:20am
& Recycling: Good for a Property & Bottom-Line • Speakers: Sue Hamilton, Lauren Tomchick, & Shirli Axelrod We make it easy to find options to reduce wastes, costs and liability with the free services from the Local Hazardous Waste Management Program and Seattle Public Utilities. Carpet and other building materials are getting easier to recycle. Learn more about how and where to recycle, local building products manufactured with recycled materials, and new City of Seattle requirements. Sue Hamilton coordinates Property Management services for the Local Hazardous Waste Program in King County. She works with property managers, owners and commercial tenants to find no or low cost ways
to reduce hazardous materials, waste and environmental liability. Sue has over 25 years of experience working with businesses on environmental and public health protection. Laurel Tomchick is a senior Health & Environmental Investigator with King County’s Hazardous Waste Management Program, Department of Natural Resources & Parks, in Seattle. Tomchick spearheaded and manages the award-winning EnviroStars Business Certification Program, which kicked off on Earth Day in 1995 and has been adopted by counties throughout the Puget Sound region and across Washington State. Laurel was a founder of the Puget Sound Waste Information Network
and Expo. Laurel has a B.A. in Sociology and Environmental Studies from Whitman College. Shirli Axelrod coordinates waste reduction for Seattle Public Utilities business customers and sustainable purchasing for city departments. Her work includes hazardous waste and conservation technical assistance as well. Shirli has a law degree and over 20 years of experience with the City of Seattle. Continued on page 16
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 15 9:30–10:20am • How to Make Your Point and Get What You Want: Presentations Skills for Sales & Leasing Professionals • Speaker: Douglas Chasick, CPM® Life is sales. Every conversation is a presentation. Period. Whether we’re speaking to one person or one thousand, there are some basic principles we must know and some basic techniques we must use in order to be successful. And once we learn and master those, we can customize our presentation. This session is about how to be a more powerful (and more effective) presenter, no matter who your audience is: a prospect, customer, a team mate, a supervi-
sor, or a significant other. You’ll learn specific techniques you can use this afternoon to be more successful. Remember, it’s not what you say, it’s how you say it. 9:30–10:20am • What Direction Are Property Values Moving? Has the Regional Market Peaked? • Speakers: Eric Smith & Bob McGrouther Our speakers knows the Northwest apartment market very well. These industry experts will conduct a round table discussion sharing the current pricing trends of apartment buildings in the Northwest market. The audience will be encouraged to ask questions. However, the value of
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Eric Smith During his 14 years with Paragon, Eric Smith has listed and sold over $300 million in combined multi-unit apartment and commercial transactions, totaling over 209 transactions. Eric’s high closing ratio is the result of his market knowledge, experience and ability to foresee and overcome obstacles during marketing and escrow. Eric is native of Washington and his successful real estate career has spanned over 23 years. Bob McGrouther is a Vice President and Commercial Lending Officer with Luther Burbank Savings. In 2008 Bob opened a new multi family lending office and platform in Bellevue Washington for Luther Burbank Savings. Prior to Luther Burbank Savings, Mr. McGrouther opened offices and platforms for World Savings and Wachovia Mortgage Corporation, in Bellevue. Mr. McGrouther’s offices have funded over 2,500 multifamily loans in the greater Seattle area over the last 21 years.
9:30–10:20am • Playgrounds & Play Areas—What you need to know: Liability; ASTM Standards; Insurance; Maintenance and their Marketing Value • Speaker: Mary Lou Iverson Mary Lou Iverson will discuss: • Standard of Care – The ASTM Standards and CPSC Guidelines that our playgrounds must conform to. • Americans with Disabilities is now Federal Law for Playgrounds • Maintaining your playground — Inspections and Maintenance—inhouse or contract out. • Documentation and Record Keeping Systems. • How to evaluate your playground —Check list with instructions. • Insurance factor—Requirements for low premiums. • Playgrounds as a sales tool— Owner and tenant getting their moneys worth. • Value of Play—What the playground means to the children in your complex. MaryLou Iverson founded The Iverson Associates in 1990. She is an internationally respected risk consultant for all aspects of play Continued on page 17
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 16 areas and playground safety. MaryLou has been Director of Parks and Recreation for cities and special districts in Oklahoma, Colorado and Washington. The Iverson Associates’ client list includes the U.S., Canada and the U.K. MaryLou is a member of the American Society of Testing and Materials International (ASTM) Playgrounds, Surfacing and Amusement Standards Committees since 1988. She has been teaching Playground Safety Programs for the National Recreation and Park Association since 1981, now called the Certified Playground Safety Instructor Program and Certification. 11:00–11:50am Landlord 101 #3 Clock Hours • ”The Long Goodbye” • Speaker: Tamara Simon What to do when bad tenants happen to good Landlords. How to deal with problems and understanding the eviction process. 11:00–11:50am • Performance Management – Developing your staff • Speakers: Paul Tollner, Monica Yoshihara & Suzanne Bachler
In this informative session our panel of industry practitioners will explore the key aspects of identifying competencies. And how to define the unique collection of “skills and behaviors” that makes an organization and it’s people within it successful. Paul Tollner Whether as industry veteran, company principal, IREM Past-President, WMFHA Board Member, VP of Marketing or winery owner, Paul Tollner loves variety and embracing new challenges. Since his earliest days in property management, Tollner has always marveled at the value that people…not technology…bring to an organization. The source of his greatest non-family joy has always come from the people with whom he works. Like the vineyards that create fine wines, Paul believes that a great team requires just the right amount of watering, fertilizing and pruning to reach their potential. Hence our leverage to have Paul join this year’s panel to discuss how to get the most from your employees. Paul is on the leadership team
at Epic Asset Management, one of Puget Sound’s oldest and most respected family-owned management firms. When not working or sailing, Paul lives in the Mount Baker neighborhood of Seattle and is a graduate of UC Davis.
and private ownerships including; Equity Residential, Archstone-Smith and Weidner Apartment Homes. Suzanne is active in the property management industry and devotes extra time to network with her peers on certain initiatives.
Monica Yoshihara is currently a Regional Portfolio Manager with Essex Property Trust, Inc. Monica has 19 years from multi-family housing experience in various markets including Texas, Florida, Oregon and Washington. Her portfolios have included mixed-use, mid-rise, highrise, garden style and real estate projects. Monica has managed over 80 employees at one time during her career. Her philosophy is to ensure all employees have the opportunity to grow in their careers through continued investments in personal development and training. She is passionate about internal promotions and employee education programs.
11:00–11:50am
Suzanne Bachler is currently a Regional Manager at Holland Residential and has over 20 years of property management experience. Suzanne started her career back in 1989 with Lincoln Property Company as a Leasing Consultant while attending college. Over the years, she has held several management and training positions with REITS
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• Marketing Tools—Facebook Twitter, Craigslist. and Other Social Media Networking for Property Management • Speaker: Jill McNiesch Jill is a professional trainer from within the industry. She is well versed on this important subject and will discuss the following: Facebook: Business page vs. profile. Dealing with Facebook if it’s been set up incorrectly and how to convert. Cover photo sizes and ideas on what to use. Important issues as how to drive engagement, content ideas and frequency of posting will be discussed. Twitter: How to use twitter and its value. The content and posting frequency Craigslist: What are the best practices. And, how do you move from good to great. Jill will share templates vs. “plain” ads, tracking results and posting frequency. She will also provide examples of good ads Continued on page 18
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 17 and ads to improve (anonymous— no identifying info will be shown). Jill McNiesh has been a member of the multifamily housing industry since 1996. Ms. McNiesh started her career as a customer service representative for a print advertising company. With her experience spanning from large corporations, small technology start-ups to her current role as Marketing Director for the Pacific Northwest at FPI Management Inc. Jill has gained a broad perspective and ability to identify past, present and trends within our industry. She takes great pride in knowing how to identify and address current industry issues. Jill is passionate about apartment marketing, her family and the Oklahoma Sooners. 11:00–11:50am • Call Me! Show Me!—In fact, Many Leasing Agents Are Simply Not effective on the Telephone Speaker: Rommel Anacan The not so hidden secret in property management is that many leasing consultants are simply not effective on the phone. It doesn’t have to be that way! In this workshop you’ll learn how to use the phone to attract and motivate your customers to want to go on a “date” with your community. 11:00–11:50am • Is the NW Rental Housing Market Overbuilt?
• Speaker: Glenn Crellin Multifamily development since mid-2011 has been nothing, if not robust, causing many to question whether the market is in jeopardy of being overbuilt, and if so, when. To date, absorption has been rapid and rents have been increasingly rapidly, but real estate is cyclical. When will the cycle peak in Seattle and what will be the result? This class will examine data from a variety of sources, including demographic, economic and real estate market data in an effort to answer the burning question. Glenn Crellin has been the Associate Director of the Runstad Center since the beginning of 2012. Prior to coming to the University of Washington, he served as Director of the Washington Center for Real Estate Research at Washington State University for 18 years. He also spent 16 years conducting and managing research for the National Association of Realtors® in Washington, DC. Glenn’s accomplishments include the development of the Housing Affordability Index, a measure of the ability of the middle income family to afford to purchase a home. Mr. Crellin is an economist who earned his B.A. at Drake University in Des Moines, Iowa and his Master’s at the University of Maryland. 11:00–11:50am • Customer Service for the
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Maintenance Team—STOP Kissing Your Customers Goodbye! • Speaker: Doug Chasick In this session we’ll look at how to measure the effectiveness of customer service—what it looks and sounds like —to see where we are today and then determine where we want to be. We’ll identify the attitudes, policies, and techniques used by the most successful companies and learn how to apply them to our daily operations. We all know that Maintenance Professionals have the most contact with our customers – usually in their homes and sometimes in the office - so make sure you attend this session to learn how to more effectively manage your attitude and deliver customer service that REALLY serves your customers! 11:00–11:50am • Reducing Damages and Claims— Risk Management for Property Managers and Owners • Speaker: Christopher T. Benis Chris Benis, Atty.’s discussion will focus on practical ways to avoid risk, allocate risk and even reduce risk. Risk management is the calculated action to reduce the severity, frequency and unpredictability of damages, losses and claims. In this workshop, he will discuss the avoidable circumstances that lead to potential liabilities and the differences between claims arising out of negligence and out of contracts. Chris Benis is a partner with the law firm of HARRISON, BENIS & SPENCE, LLP, which maintains offices in Seattle. Mr. Benis attended the University of Washington, where he received a B.A. in Political Science, a Master of Urban Planning and J.D. from its School of Law. In his law practice, he represents brokerages, design professionals, and construction companies. Chris is a
regular speaker and author on topics related to property management. He has spoken at TRENDS many times and authors a monthly column in the RHA UPDATE newspaper. 11:00–11:50am • Money: Tips on Keeping Your Rentals’ Accounting Straight • Speaker: Julie Johnson Today, we are lucky to have software that will take care of the nuts and bolts of property management accounting. But even with good accounting software, there are some things you must understand to be profitable. This workshop will cover a variety of money/accounting issues affecting the small rental property owner. From the profit, loss statement to collecting rents and budgeting for maintenance. You will leave this class with best practice information regarding owning and operating rental property. Julie Johnson is currently the Director of the Residential Group at Phillips Real Estate Services, which offers leasing, sales and property management services to 1-10 unit rental properties. Julie and her husband own and manage 12 rental units. Julie is the host of the “Rental Property Coach” Radio Show on 1590 AM, Saturday mornings at 9:00. She has taught at TRENDS Rental Housing Management Conference and Tradeshow, teaches several different seminars at RHA and hosts a local supper club for landlords. 1:30pm–2:20pm • Current Condition of the Northwest Multifamily Housing Market • Panel: Rob Kellum, Darlene Pennock, Leo Violette, Larry Miller, CPM, & Lynn Owen This is a ‘featured’ workshop of TRENDS 2013. Continued on page 19
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 18 The panel members on this workshop are all extraordinary. And the topic was brought back by popular demand. As is, the workshop title fully explains the topic: ‘The Current Condition of the Northwest Multifamily Housing Market’. We suggest you get your seat early and don’t miss it! Rob Kellum As a principal and Chief Operating Officer of SUHRCO Residential Properties since 1994, Rob Kellum is responsible for overseeing all operations and property management activities as well as new business development, marketing, property acquisition and disposition. SUHRCO currently manages approximately 9,000 multi-family units consisting of both apartments and condominium associations throughout the greater Puget Sound region. Prior to joining SUHRCO, Mr. Kellum was president and managing partner of a Seattle area investment real estate management, development and brokerage company, managing more than $300 million dollars in real estate assets and developing and/or purchasing and renovating $60 million in real estate during that period. Rob
was the 1999 President of the Western Washington Chapter of IREM. In 2000, Western Washington Chapter of IREM® named Rob as their Property Manager of the Year for the State of Washington. He is a Certified Property Manager (CPM) with the Institute of Real Estate Management (IREM) and licensed real estate broker. Darlene Pennock and her husband Peter own a successful mobile home park in Shelton. The park includes duplexes and many park owned mobile homes. In addition to being a residential property owner/ manager Ms. Pennock was a successful life insurance agent for over 13 years. Darlene is currently very active with the Washington Apartment Association. Through her association involvement she meets with Legislators, testifies and works with her local industry chapter. Leo Violette has been an active member of the Walla Walla chapter of the Washington Apartment Owners Association (WAA) for many years. Currently, Leo is the Vice Chairman of the WAA PAC committee and his wife Judith is the Past President of WAA. Mr. Violette believes that being politically involved within the industry helps
make a difference. Leo and his wife are small business owners. They both understand the issues facing property owners who work full time and manage their units after hours and weekends. Larry Miller is a Certified Property Manager member of the Institute of Real Estate Management with extensive executive experience in commercial, residential and mixed-use property management throughout the United States. In his career, Larry launched two start-up companies, supervised regional and national management companies, and served as Asset Manager / VP of Ancillary Revenue for an 85,000 unit national portfolio. His operational responsibilities include apartment portfolios of 15,000 units and commercial portfolios of 16 million square feet. Larry is currently Senior Regional Vice President for Simpson Property Group with operational responsibilities for the West Coast. In addition to portfolio operations, Larry assists Simpson’s Development and Acquisition departments in analyzing additional investment opportunities. Lynn Owen is the Senior Director, Real Estate at Greystar Real Estate Management. She is a leader in the property management industry.
Lynn has managed the operation of properties since 1986, where she began her career with the largest property management firm in St. Paul, Minnesota. Formally she was a principal at Glacier Real Estate Services, Principal/Director of Business Development and Marketing at Glacier Real Estate Services. Lynn was formerly a partner in the development of ETICO Property Management Company. Previous to ETICO, she was vice president of conventional properties with the Allied Group. Ms. Owen is a graduate from University of Minnesota-Twin Cities. 1:30pm–2:20pm • For Richer, For Poorer: Owning and Managing Property with Your Spouse and Family • Speakers: Charlie Spaeth, Becky Brown, Don and Laura Decker, John and JoAnna Worthen, Jack, & Deborah Hawes This workshop features couples with decades of experience of jointly managing their own and family properties. This session will be entertaining and an unvarnished version of what to expect when real estate is “all in the family.” How does a “capital gains” guy negotiate risk with a “cash flow” wife? Who decides on which contractor to hire and what Continued on page 20
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Appraisal & Consulting, LLC Office: 206-521-9344 • Fax: 206-667-9260 On-Site Northwest • November 2013
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 19 happens if he’s a deadbeat? When is it appropriate—and necessary— to compensate a family member for managing the clan’s real estate? And what happens if that person can’t deliver? How does a give-the-tenantanother-chance advocate reconcile with a tough love mate? Is there a good way to handle your “otherside-of-the-continent” brother with no management experience but all the answers? Can you ever take a vacation? And the big one: What’s the secret for enjoying a romantic dinner with your spouse without discussing “the property?” This is a workshop for people who want to own and manage real estate with their feet on the ground. Charlie Spaeth At age eight Charlie Spaeth began showing vacant apartments and collecting rent at a rental his parents owned. In his twenties he refined his management skills renovating and managing residential buildings in New York. Since the early eighties he has syndicated, brokered and managed numerous residential properties in the Seattle area, including a 32-unit building in Fremont he still owns. He’s a former board member and board chair of the Rental Hous-
ing Association of Washington and currently chairs its political action committee. Becky Brown married Charlie thirty years ago. While not a hands-on property manager herself, she researches the rental market, is Charlie’s source for sound advice on managing tenants, and rescues him when he locks his keys in the car. In addition, Becky owns a training business. Laura Decker Don and Laura Decker have been married for 17 years. Together they’ve owned rental property for 10 years. With extended family, they purchased a mixed use building in 2003 and after three years with a hired property management company, took over the direct management seven years ago. They recently added a single family home to their portfolio. Laura is a trained accountant. She manages the property as part-time job and spends the balance of time with their boys. Don, works full time for a large company. Don does some of the building maintenance. Laura is on the Board of Directors and Treasurer for the Rental Housing Association of Washington. John and JoAnna Worthen
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share the responsibility of property ownership and management along with their son, daughter, and sonin-law in varying degrees. John is a third generation Seattle residential investor and property manager. He bought his first investment property with his parents at 18 years old from money he saved from hanging wallpaper on and during the summers with his dad. John and JoAnna have found it especially satisfying and rewarding in the last few years to grow in understanding that success can be measured in more ways than just the bottom line and to see the next generation prospering from skills learned through working together. John and JoAnna have been married 34 years, are UW alums, and love to garden, travel, and spend relaxing time with family. Jack Hawes Deborah and Jack Hawes own and manage a 20 unit apartment building in the Greenwood area of Seattle Jack Hawes is currently the Rehab Services Director for the Northwest Region for Equity Residential. In this role he oversees the upgrade and rehab of Equity’s portfolio in greater Seattle, the San Francisco Bay Area, and Denver Colorado. Prior to joining Equity
Residential, Jack was the managing general partner for 20 years withWestern Homes, located in Seattle. Jack is a past President, and currently sits on the Board of the Rental Housing Association of Washington. 1:30pm–2:20pm • Fearless Engagement The Next Level of Facebook® • Speaker: Terry Eccles-Pettet If content is King then engagement is Queen. Fearless Engagement is the course to help you build relationships, improve your posting strategies, and trust your Internet message. There’s nothing to fear about Facebook® content posting and sharing if you understand the network, how best to use the apps and pages, learn best practices and how to engage your personal client base. Terry EcclesPettet is an educator, trainer, consultant, real estate professional. “I don’t believe anyone dreams of becoming a Real Estate Professional as a child. Instead we evolve into a caring, focused, detail minded professional.” I started my professional Continued on page 21
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 20 life at Citicorp headquarters’ in NYC as a management trainee by day and acting in off Broadway shows in the evening, until I married my high school sweetheart and traveled the world—courtesy of the United States Marine Corp. Today I am a Trainer and Real Estate Consultant for Realty Pro, Inc and run TEP Producers - providing training in Social Media, Best Practices, Business Planning, NAR Ethics, and WA Realtors’ CORE Courses, along with coaching and consulting for brokerages. 1:30pm–2:20pm • Reputation line
Management—On-
• Speaker: Mark Davis In this class you will learn how to respond to negative reviews, how to recover from a bad reputation and lastly how to monitor your property moving forward. 1:30pm–2:20pm • How much Liability insurance do you need? • Speakers: Larry Palmer, Peter Tran, John Applegate, & Nate Worden Liability insurance provides valuable protection for the interests and assets of apartment owners and managers. The panel will discuss the types of liability coverage relevant to rental housing, and the considerations that may help when deciding on how much and type of coverage to buy. Because legal and financial peace of mind is the goal of liability insurance, the right amount of liability coverage can vary widely depending on the nature of the apartment property and the situation of the owner and/or manager. Larry Palmer is a principal of Larry Palmer Insurance and active within the multifamily housing market. Peter Tran has 10 years of experience in the industry, and joined Propel Insurance–Seattle office in 2010. Peter is responsible for development and retention of commercial insurance accounts. He’s expertise in designing insurance programs for owners, managers, and developers of commercial real estate and multifamily housing. Prior to joining Propel, Peter was the Vice President of a Bellevue based brokerage for five years. Prior to that he was an Account Executive for an international brokerage firm and was part of a nationally ranked Real Estate Team. Peter has been chosen by two associations to create and manage an insurance program for their members. The program was created in 2006 and now consists of over 40,000 housing units.
John Applegate has over 25 years experience in the insurance business. John is a senior agent representing Pemco. John is knowledgeable in protecting an owner’s investment and providing ultra-affordable renter insurance. Nate Worden originally began working as an insurance representative for apartment communities in 2003. In 2008, he and Ken Johnson joined Alliance Insurance. Together, Nate and Ken are recognized as leading insurance brokers within the multi-family (apartments/condominiums) insurance marketplace. Currently, their team insures more than 50,000+ multifamily units throughout the Western United States. Their clients range from small, single location rental properties, to large property owners and managers with many locations. Nate holds undergraduate and graduate degrees in the areas of philosophy and psychology. He will also soon earn the respected “CIC” designation (Certified Insurance Counselor).
Eric M. Steven P.S. is a sole practitioner in Spokane with a practice emphasis in the area of landlord-tenant relations and housing. He practices in both state and federal courts in all Washington counties east of the Cascades and in Northern Idaho. Mr. Steven litigates landlord/tenant cases involving eviction, ejectment, commercial litigation, fair housing claims, and a variety of other landlord-tenant issues. He is one of the few attorneys in Washington to actually defend a fair
housing case in a federal court jury trial. Mr. Steven is acting counsel for numerous property owners, landlords, management companies, mobile home parks, subsidized housing providers, and the Spokane Housing Authority. He is active in legislative reform and advisory counsel for the Washington Apartment Association (www.waapt.org). Continued on page 23
1:30pm–2:20pm • Do You Have What It Takes to Be a Maintenance Leader? • Speaker: Doug Chasick After exploring what makes great leaders great, we’ll determine how to best channel your skills and energy to produce the results that are needed at your company. We’ll evaluate our skills and unique attributes and learn how to more effectively use them to accomplish our goals. We’ll explore what leadership is and if it is different than management; why great leaders are great; what do you have and what do you need to be a Maintenance Leader and how you make the transition from supervisor to leader. You’ll leave with specific techniques that will help you be an effective Maintenance Leader!
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1:30pm–2:20pm • Strategies- Using Landlord/ Tenant laws to enforce obligations of your residents • Speaker: Eric Steven, Atty. Mr. Steven, Atty. will address notice practice, statutory compliance, and other issues necessary for lawful eviction of residential tenants under Washington law.
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 21 1:30pm–2:20pm • Energy Efficiency Improvements Made Easy—A Bottom Line Perspective • Speakers: Clint Stewart, Will Moby, Lou Ann Quast, & Michael Niall Learn how to take advantage of Puget Sound Energy’s Multifamily Retrofit program offerings and start saving money and energy today. With a multi-stakeholder panel consisting of representatives from the utility (PSE), program administrator (Ecova), contractor (Green Property Solutions), and property management firm (Worldwide Management); you will gain a solid understanding of how to navigate the energy retrofit process from start to finish. Multiple projects will be highlighted with energy efficiency upgrades ranging from insulation to common area lighting to direct installation of in-unit CFLs and efficient showerheads. Financial incentives are available through PSE to help offset project costs; often resulting in little to no out-of-pocket expense. This ultimately translates to happy tenants and a healthy bottom line.
County as well as Gig Harbor and the surround areas. She has helped investors buy hundreds of units as rentals as well as helped them sell large and small complexes. Lou Ann has recently gotten into the property management side of real estate as the General Manager for Worldwide Property Management. She has enjoyed rehabbing the buildings she manages by both upgrading the physical buildings as well as improving the bottom line for the owners by lowering the utility bills through with the assistance of the PSE Multifamily Retrofit Program. Michael Niall is the Field Manager for Ecova, subcontractor for PSE’s Multifamily Retrofit Program. Michael has more than 21 years experience in project management and business development. Michael has been working on the PSE Multifamily Program since 2011, and he man-
ages quality and safety control, customer service, owner and contractor relations and field crews. 3:10pm–4:00pm • FORECASTING 2014 and beyond. The Northwest Multifamily Housing Market • Panel: (Moderator) John Hatton, Greg Anderson, Tom Daniels, & Bill Cook This is a ‘Featured’ workshop of TRENDS 2013. This workshop topic has become a ‘tradition’ at TRENDS. And, always features an extraordinary panel of industry practitioners. The workshop title fully explains the subject to be discussed in this round-table format: ‘FORECASTING- 2013 and beyond the Northwest Multifamily Housing Market’. Looking into the crystal ball. Bill Cook will explore the future
of subsidized housing and it’s redevelopment. We strongly suggest getting to this workshop early and don’t miss it! John R. Hatton, CPM® has over 30 years of diversified real estate experience ranging from property management to property development. He currently is a Principal with The Tessera Group. The Tessera Group provides a wide variety of real estate services to receivers, financial institutions, developers, homeowner associations and building owners. John previously worked for nine years with Legacy Partners Residential Inc. where he served as a Vice President in their Mercer Island office. Prior to his involvement with Legacy Partners, John held various positions with real estate investment Continued on page 24
Clint Stewart is the Program Manager for Puget Sound Energy’s Multifamily Retrofit program. Clint began his career at PSE in 2009 as an Energy Advisor and shortly thereafter became the Program Coordinator for the Low Income Weatherization program. In his current role, Clint is responsible for managing the day-to-day operations of the Multifamily Retrofit program, while ensuring annual energy savings targets are met within budget. He has a Master’s degree in Urban Management and Development from IHS Erasmus University in the Netherlands and a Bachelor’s degree in Environmental Studies from University of Colorado. Will Morby is the Vice president of operations at Green Property Solutions (GPS). GPS works with small, mid-sized and large business owners to help “Navigate the Road to Sustainability”. Will believes that a sustainable business case for his clients will truly improve the bottom line. GPS helps increase building income and decrease expenses by implementing smart, cost effective, sustainable and lasting strategies for buildings. This creates a “WinWin” for business and the environment. Will has worked with apartment, condominium and commercial buildings in the Puget Sound area since 2010. Lou Ann Quast has been a Real Estate professional for 11 years working in the residential, commercial and investment market in Kitsap On-Site Northwest • November 2013
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 23 companies that specialized in multifamily, strip mall and office acquisition and management. He was selected as the 2002 Certified Property Manager of the Year by the Institute’s Seattle Chapter. In 2012 John received the IREM Presidents Award for Excellence. He has served as a director of the Washington Apartment Association and the Rental Housing Association of Puget Sound. Greg Anderson has been involved in the management of residential real estate for more than 23 years. He is a Principal of Allied Residential, having assumed an ownership position in 1999. Allied Residential is a full service property management company that specializes in both conventional and affordable apartment communities. Greg previously worked for Pinnacle Realty Management and also, prior to his time in property management, spent time in the mortgage banking industry. Greg has held the CPM designation for more than 19 years and Allied Residential has held the AMO designation since 1992, having been chosen as Western Washington AMO of the year in 1999. Tom Daniels is the Executive Vice President of Riverstone Residential and oversees Western Washington operations, including 17,000 units
across 119 communities. He has been in the Multifamily industry for over 17 years, starting as a Property Manager in 1992. Prior to Riverstone Residential, Tom was responsible for portfolio operations for both Holland Residential and Trammell Crow Residential Services in Oregon. Before working in Real Estate, Tom spent five years in the U.S. Airforce. He is on the Board of the Washington Multifamily Housing Association and was the Chairperson of the Strategic Planning Committee. Tom graduated from Washington State University with a degree in Business Administration and holds his Washington State Broker’s License. Bill Cook, Director of Property Management with the King County Housing Authority, has been with the Authority since 2006. Mr. Cook has more than 16 years’ worth of both private and public property management experience. Prior to joining KCHA, he has worked for private owner/development firms as well as pension fund advisor real estate management corporations and large REIT companies during his career. Mr. Cook has served on several national committees with the National Apartment Association and, in 2004, graduated from the NAA Leadership Lyceum program. Mr. Cook earned both a Bachelor of Arts degree and a
Bachelor of Science degree from the Florida State University. 3:10pm–4:00pm • Managing Mixed-Use Properties • Speakers: Bree Kauzlarich, Cathy Munson, & Heidi Turner More and more new construction offers both multi-family housing and commercial retail space in the same building. Some of the issues to be explored by the panel are budgeting for mixed-use properties, special management needs, expense allocations and marketing. These mixed-use buildings offer new challenges to property mangers. Our panel of practitioners will examine the unique issue of managing these mixed-use properties. Bree Kauzlarich ARM – Change Agent – has four years as a property manager working specifically with mixed use buildings in the Seattle metropolitan area. As a manager, Bree maneuvers the delicate path of relationships between residents, commercial residents, vendors and staff while keeping customer service the main goal.
Cathy Munson, CPM®, CSM, CCIM joined Schnitzer West in 2001 as an Investment Manager, and is currently the General Manager of The Bravern, a mixed use project in downtown Bellevue comprised of two office towers (750,000 sf), a Retail component anchored by Neiman Marcus (300,000 total sf), two luxury high rise residential towers, and over 35 acres of subterranean parking. Cathy’s early career began at Norris, Beggs and Simpson in 1983, managing a diverse portfolio of properties Cathy holds a bachelor’s degree from the University of Oregon. She also holds the professional designations of CERTIFIED PROPERTY MANAGER® (CPM®), Certified Shopping Center Manager (CSM) and Certified Commercial Investment Manager. Cathy has been a prominent member of the Institute of Real Estate Management (IREM) since 1980, as well as the Building Owners and Manager’s Association (BOMA) and the CCIM Institute. Heidi Turner, CPM is the Director of Intangible Assets and Principal at Blanton Turner. Heidi Turner has over 20 years of experience in property management. As a principal, her role is to oversee all residential propContinued on page 25
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 24 erty management operations; professional employee development and training. Heidi specializes in new lease-ups and student housing and enjoys the challenge and fulfillment of creating a meaningful experience for new residents at market rate complexes and students in their first home away from home. Her own formal education occurred at Vanguard University, where she graduated Summa Cum Laude before earning an MBA from Seattle University. Heidi is a Certified Property Manager, and served as 2004 President of IREM Chapter 27 (Western Washington) and was awarded CPM of the Year in 2005. 3:10pm–4:00pm • Being Internet Correct - Etiquette for Today’s Tech Savvy • Speaker: Terry Eccles-Pettet There are rules and proper manners for our Online communications on the InterWeb, problem is the rules are in flux and vary greatly from one network to the other. Internet Correct explores proper etiquette and online behaviors for the Professional. Learn about the different forums and the policies and rules of each while posting and sharing. Learn best practices to avoid multi-posting, cross-posting, hijacking and how to share not “steal” someone else’s creative ideas. 3:10pm–4:00pm • Dealing with Hoarders & Difficult Residents • Speaker: Bruce Kahn Come join in on a discussion of how to handle Hoarders and other problem tenants. We will be discussing various ways to classify them, the
best practice methods of dealing with them, and the laws that relate to them. The program will offer an open-mike discussion where you can ask questions and share experiences with the group. Bruce Kahn, CCIM, CPM is a Managing Director of The Foundation Group Real Estate Services, a full service investment property management and brokerage company. He holds the designation of CCIM (Certified Commercial Investment Member) issued by the Commercial Investment Real Estate Institute, and CPM (Certified Property Manager) with IREM (Institute of Real Estate Management). Bruce has been active as an investor and real estate professional for over twenty five years. 3:10pm–4:00pm • Capital Projects—Choosing Vendors & Protecting Yourself • Speakers: David J. Alfano and Donn Garrett Currently many properties are pursuing or considering capital improvement projects. Often, these projects are large, complex and must be monitored. David and Donn are both well experienced with managing capital improvement projects. Choosing the correct vendors is essential as well as protecting yourself and the property are mandatory. David and Donn will provide insight on how to accomplish these tasks. Note: Vendors are encouraged to attend this workshop. David Alfano is responsible for capitol projects by performing inspections and acquiring all necessary bids from vendors/contractors.
David’s duties include writing scope of work details, contracts and securing all necessary insurance requirements. His department also handles any general work needed such as dry-rot, water intrusion, damaged caused by residents. David can claim over 40 years of strong and diverse
experience in the Maintenance field. And managed a crew of employees and over saw various subcontractors in the refurbishment of 6,587 manors in a 10 year program. Donn Garrett has worked in property management for over 20 Continued on page 26
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ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 25 years. In the position of Maintenance Manager Mr. Garrett has worked on properties ranging from 123-474 units. Donn has been a speaker for TRENDS and WMFHA. He has won the prestige’s award for “Best Curb Appeal to Grand Prize Overall”. To Donn, Continued Education is very important as he attends Advanced Appliance Classes and was one of early O7B License Holders. Due to a heavy performance and recording schedule he is finding working on a smaller community a breath of fresh air. 3:10pm–4:00pm • New State/Local Laws Impacting Rental Housing • Speakers: Eric M Steven, Mark Gjurasic, Bill deWeber, Sean Martin and Bill Hinkle The impact of the recent new State and Local laws can be significant to the entire industry. Including the increase of local government control over multi-family housing that can potentially threatening and violate resident’s privacy. Every owner of a large or small property should attend this workshop to hear what is happening to our industry. And how it impacts you!
Mark Gjurasic is president of Public Affairs Washington, specializing in governmental affairs representation, fundraising, and educational services. He currently represents many associations before the Washington State Legislature, some of which are: Building Owners and Managers Association of Seattle and King County, Tacoma and Spokane, Institute of Real Estate Management, Washington Apartment Association, and Washington State Mobile Park Owner’s Association. Bill deWeber has been involved in the Residential Rental Industry for more then 13 years. Besides being a landlord and managing rental property, he owns and operates a background screening company called The Information Source, assisting Landlord and Property Management Companies in their tenant selection process. Bill regularly participates as an instructor in educational seminars and continuing education classes for Landlords. Bill has been on the Board of Directors for the Washington Apartment Association for over 10 years.
PINPOINTING SAVINGS IS RE-ENERGIZING
Sean Martin serves as Director of External Affairs at the Rental Housing Association of Washington and has been tracking and collaborating on issues affecting the rental housing industry at the local level for over six years. Over the course of the past six years, he has worked on a number of concerns facing rental housing operators, notably rental housing inspections, crime free legislation, protected class and fair housing laws, and various fee and taxation issues. Sean graduated in 2005 from the University of Washington with a degree in Political Science. His experience at RHA began as an intern and over seven years has grown in to the position he holds today. He recently became a graduate member of the Jennifer Dunn Leadership Institute, completing the course in May of 2012. Bill Hinkle is the Rental Housing Association of Washington (RHA) Executive Director. Mr. Hinkle previously served as Minority Whip in the State House of Representatives and is retiring
from the Legislature after 10 years of public service. While serving in the House, Bill has also been a business consultant in the Real Estate and Development industry providing him with the kind of understanding of the industry and leadership skills critical for this new post. 3:10pm–4:00pm • The 10 Biggest Mistakes Landlords & Managers Make and How to Avoid Them • Speaker: Chris Benis, Atty. For the past many years, well know Attorney Chris Benis has made a serious study of the ‘classic’ yet ‘avoidable’ mistakes made by most every property owner, manager and himself. By attending you will definitely benefit from his insights as an attorney and property owner on ‘How to avoid making classic mistakes.’ This workshop is highly recommended. 3:10pm–4:00pm • Planning for the Tenancy Cycle— Move In, Move Out and Inspections • Speaker: Sue Lewis This session will cover the entire Continued on page 27
Now is the time to map out your retrofit plans for the New Year and start saving time, energy and money! Check out Puget Sound Energy’s Direct Install Program that takes the worry out of managing the cost and installation – it’s FREE! For qualified customers, the program can retrofit your building’s units with energy and water saving showerheads, water heater pipe wrap, energy efficient lighting and other energy upgrades. To learn how you can get started: 1. Call a Program Representative at 1-866-997-9767 or e-mail at MultifamilyRetrofit@pse.com to schedule an appointment. 2. A free energy audit will be scheduled to qualify and establish pre-existing conditions. PSE will make recommendations on energy efficiency upgrades and see if your building qualifies for the Direct Install program. 3. The audit will also identify other ‘no cost’ and ‘low cost’ retrofit incentives your properties may qualify to receive through PSE’s Multifamily Retrofit Program. Schedule your appointment now to receive a PSE Direct Install Sample Kit
PSE is offering Direct Install Sample Kits that include ENERGY STAR® qualified CFL and LED light bulbs, a WaterSense® showerhead, and a section of pipewrap that will aid in your review process.
Incentives apply to existing multifamily properties with five or more attached units located in PSE service area and dependent on installed equipment efficiency and energy type. PSE’s programs are tariffed services, and are subject to change or termination without prior notice. Always refer to our website for the latest offerings.
PSE.COM/MULTIFAMILYRETROFIT 26
On-Site Northwest • November 2013
ON-SITE 2013 Speakers, Topics, and Bios ...continued from page 26 tenancy cycle in a step-by-step process. From when the tenant moves in, unit inspections & maintenance requests to what needs to be done when a tenant gives notice and you’re ready to turn, Sue has the answers. Sue Lewis has been in property management for over 20 years, having filled positions ranging from apartment manager, to ultimately running the residential division of an international holding company. She has also worked with a motivational training company, been a personal and professional coach, and done work for the Department of Defense and Department of Commerce. Sue served as 2009 National Chair for the Journal of Property Management Advisory Board and was the 2008 Western Washington Chapter President for the Institute of Real Estate Management. Sue currently pursues her passion for excellence through education and understanding in her role as the membership administrator for the Rental Housing Association of Washington (RHA), providing training and education, as well as helpline services to over 5,000 members.
Keynote • 4:15pm
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• Relationology: The Alchemy of Understanding and Connecting with People • Speaker: Rommel Anacan
TRENDS
Relationology is a workshop that will help you better understand people. What people want. What people don’t. The hidden questions we all ask and the answers we seek from those around us. In this talk you’ll learn how to apply these secrets to improve the quality of your relationships with clients, co-workers, supervisors, vendors and partners.
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On-Site Northwest • November 2013
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ON-SITE
The ABCs of Property Management:
Guaranteed funds are the most ideal funds.
Use state-specific forms, agreements, and addendums.
Hire only licensed and bonded contractors to do the repairs at your properties.
Verify ALL of the information on the rental applications that you process.
Issue termination and warning notices timely and correctly.
When turnover happens, devote to the process the time that it deserves.
Join a landlord association.
Xtra attention spent on Fair Housing laws can potentially save you thousands.
Keep up with the frequent law changes. Label your income and expense accounts to optimize potential returns at tax time.
26 Ideas for Running Your Business
Yearly inspection of the property is an easy way to look after your investment.
Zap your headache and hire a property manager if the above is too daunting.
Katie Poole – Hussa is a Licensed Property Manager, Continuing Education Provider and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at Katie@SmartPM.co.
Maintain your rentals as if they are your primary residence. Neighbors can play an important role in the management of your property.
A landlord attorney on speed dial is a great idea. Be the landlord that you would want.
Operate as a lawful business. Be professional and ethical in your practices.
Collect large security deposits, in guaranteed funds, PRIOR to handing over keys.
A F u l l S E Rv I C E T E N A N T S C R E E N I N g a n d C R E D I T R E P O RT I N g CO m PA N y
Post the emergency locations of water shutoff, etc. for the residents, JUST-IN-CASE.
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Quickly respond to maintenance requests.
Quick turn around time
Emotions should play a very small role in the management of your properties.
Rent is rent; not security deposit, late fees, or some combination thereof.
Personal and professional assistance
Familiarize yourself with the terms of the rental agreement and addendums.
Screen. Screen. Screen.
Determine rents by researching comparable properties in the same area.
Tenants are our clients too.
Nationwide criminal and evictions records Credit score – full credit reports available Online access C R E D I T R E P O RTS S TA RT AT $1 6. 3 7 RHA membership required for RHA products & services
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On-Site Northwest • November 2013
ON-SITE
Best in the West By Lauren Ginder, Pacific Crest Real Estate “Practice does not make perfect. Only perfect practice makes perfect.” –Vince Lombardi What a true statement! And coming from such an accomplished and successful individual. When it comes to taking on the best practices in the real estate and property management business, how exactly do you define the best? Yes, you have the Institute of Real Estate Management guide to refer to which is updated annually as better practice methods are discovered. However, these tips only go so far according to HOW they are implemented. A list of items is a list of items, which mean nothing without a strategic plan. Over the past year we have acknowledged in our monthly articles many of the components included in IREM’s best practices manual. We have addressed budgeting, maintenance, marketing, hazard control, turning units, leasing procedures and the altogether operation of properties. Simply listing the topics of what comprise successful management objectives is just a stepping stone for property managers and landlords. Identifying which techniques work best and what practices are necessary in certain scenarios is a talent acquired through hard work and perseverance. Finding a balance between increasing the net operating income for your owner while maintaining resident welfare is always the number one goal. The steps you take along the way are where it counts. Begin by gathering a team of ambi-
tious employees with integrity. Don’t let them out that door until they are educated. Once they are ready, put them out in the field, guide them through their mistakes and nurture their good habits from the start. Properly implement company guidelines, acknowledge their effectiveness and monitor successes/failures. Choosing to participate in local outreach programs or to offer insurance package discounts are great retention strategies for residents and owners respectively. However, your efforts will only succeed if your guidelines are strictly adhered to. Promoting your company with wholesome individuals, continuously educating them, and fostering partnerships with companies you rely on will earn the positive reputation sought after in the real estate and property management industry. The Northwest is a competitive market filled with continuous renovation and advancement. The best techniques adapt along with time requiring consistent monitoring of strategic methods. Ultimately, your initial promise to the owner is to protect their investment. Conduct legitimate unit inspections and adhere to necessary grounds keeping and you will protect the owner’s investment as well as the residents’ safety and happiness. Winning is a habit, so educate yourself and others on how to ‘win’ in the property management world and maintain those habits. To end with another inspirational Lombardi quote, “Winners never quit and quitters never win.”
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Key Changes to the Landlord Tenant Act
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n the last Oregon legislative session (that recessed in July of 2013), there were significant changes made to the Oregon Landlord Tenant Act. This article will summarize the key changes to the Landlord Tenant Act as updated by Senate Bill 91. HB 2639 was also passed in this session. This bill authored by House Speaker Tina Kotek basically adds a new classification of protection from discrimination for Section 8 and Section 42 tenants regarding their source of income. HB 2639 The bill provides that a Landlord may “only” turn down tenants thereby protecting Section 8 and Section 42 tenants: “(A)Based upon the past conduct of a prospective renter or prospective lessee provided the refusal to lease or rent based on past conduct is consistent with local, state and federal law, including but not limited to fair housing laws; or (B) Based upon the prospective renter’s or prospective lessee’s inability to pay rent, taking into account the value of the prospective renter’s or prospective lessee’s local, state and federal housing assistance, provided the refusal to lease or rent based on inability to pay rent is con-
sistent with local, state and federal law, including but not limited to fair housing law.” Additionally, the law provides the establishment of a fund (Housing Choice Landlord Guarantee Program) to offset damages caused by Section 8 tenancies. Those costs must be over $500 and not exceed $5000. Sources close to the implementation process of this bill, have informed me that there are still some open issues that need to be sorted out, those include the following: 1. If the Housing Authority does not want to make the voucher for the customary length of the lease, can the landlord refuse to accept the voucher holder? 2. If the landlord does not want to do the repairs required by the Housing Authority, can the landlord just say no? 3. What constitutes timely inspections and at what point can the landlord go ahead and rent a unit to a non- section 8 tenants if the inspections from the housing authority are not forthcoming? SB 91 The landlord tenant omnibus act
which is effective 1 January 2014 changed the landlord tenant act in the following ways:
• Neither part is allowed to harass each other regarding the provision of renters insurance. • Landlords may not:
Renters Insurance (ORS 90.367, 90.100 and 90.465) • Before entering into a rental agreement the landlord must notify a tenant of the requirement to carry renters insurance and the amount of the insurance required. Renter’s insurance coverage cannot exceed $100,000 or the customary amount required by landlords for similar properties with similar rents (this allows landlords to require more on an expensive house that needs more coverage). • The Landlord can only require the renters insurance if they carry comparable liability insurance. The landlord must provide documentation of that insurance to any tenant that requests such. Such documentation (typically a certificate of insurance) can be posted in a common area, mailed, handed, or emailed to the requesting tenant. • Written rental agreements must be updated to include the description of the requirements of this insurance subsection.
o Require that the insurance is purchased from a specific insurance company/agency. o Require that the landlord be named as additional insured. o Make a claim against a tenant’s renters insurance for costs that result from wear and tear, acts of God, or conduct by a landlord. o Make a claim unless the claim is greater that the security deposit held by the landlord. o A landlord may not require that a tenants to carry rental insurance if the household income is less than 50% of the area median income, as determined by the state housing council. o A landlord may not require a tenant to obtain or maintain renters liability insurance if the dwelling unit of the tenant has been subsidized with federal funds o Should a landlord file a frivo...continued on page 35
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Property Management Field Coaching How To Do It and Why It Works? ©
By Ernest F. Oriente, The Coach {Article #211…since 1995}
Y
ou've hired a property management SuperStar and the classroom training for your new employee is finished. As their manager, is training really complete? Not a chance! Field coaching is the next step and the most important part of a well-rounded and worldclass property management training system. In this article you will learn the three steps for building a powerful field coaching program and once in place, this process will become a standard part of your training for every new hire at your property management company. Planning your coaching day: Begin by telling your new employee the exact day and time you will be working with them. Ask them to prepare a schedule of the activities planned for the day to include their appointments with future residents, resident customer care, and followup contacts with apartment shoppers from the previous day or week. Next, discuss how each new future resident will be serviced and have your employee take you through their "perfect" office presentation, a
mock telephone call with a future resident and a property tour. Lastly, have your new employee return to your leasing office and practice completing all the necessary paperwork required by your company for prospect follow-up. Tip From The Coach: Start your coaching day by explaining to your
new employee that you are there to assist them be more successful and your time together will be a positive and productive experience. Ask them to first watch your "perfect" office presentation, your telephone demonstration and a property tour. This will make them more comfortable working with you and they will
aspire to model your world-class skills. Handling your coaching day: With practice now complete, you and your new employee are ready to serve the first future resident of the day. Ask your employee to introduce you so each future resident knows who you are, but this should be done with little fanfare and it is optional to share your job title. Allow your new employee to handle the entire meeting with each future resident, as the purpose of your coaching day is to observe them in action. If necessary, tell your new employee that you will be happy to help them during any leasing/sales presentations, but only if they turn to you and ask you for specific feedback. Otherwise, it is your role to observe them while making detailed notes to be reviewed together after the presentation is compete and each future resident has left your leasing office. Tip From The Coach: Powerful field coaching is like learning to ride your first bicycle. At first you were scared, then you rode your bicycle Continued on page 37
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Washington Apartment Association President • Rob Trickler
Past President • Judith Violette
1st Vice President • Darlene Pennock
Treasurer • Gina deWeber
Secretary • Donna Lee Smitt
1500 Water St. SW, #5, Olympia, WA 98501 • (360) 951-1426 • www.waapt.org
Keeping Your Tenants to Produce More Profits By Leonard Baron in Business from PropertyManager.com a Service of AppFolio
I
n the real estate game, when we are talking rental properties, one of the most important things that will help you earn more money is long term tenants. The longer the tenant stays, the lower the number of unit turnovers you will have. Turnovers cost money! So as owners, we should do everything possible to keep our tenants – and yes, occasionally there is a bad one we might unfortunately have to “fire” and let vacate! So, let’s talk about a few ways to help the cause! First, when a unit turns over, even if you have a new tenant whose lease starts the next day, it still costs lots of money. If you manage the rental yourself, you have to advertise, take calls, show the property, write up a lease, get it signed, collect a security deposit, deposit it in the bank, etc. This all takes significant time and energy – and time is money!
Alternatively, if you have an outside party do it, it’s usually one-half to one full month of rent you need to pay as a commission. In addition to the leasing process, you need to inspect the property before the prior tenant leaves, schedule the unit and carpets to be cleaned, have your handyman go in and paint, patch, repair, etc. and you must finalize the old tenant’s lease and security deposit. Then you’ve got to do a move in with the new tenant, document the condition, exchange repair requests from them, coordinate utilities changeovers, etc. What a pain! All in all, you’re probably going to spend several days of your time handling all these issues, probably a whole week of time or more once all is said and done. Wouldn’t it have been easier to just keep your existing tenant in
place? Most apartment building surveys find that the main reason people leave their existing rentals is because of poor management. So that’s not being attentive to their issues, not fixing stuff that breaks, blaming the tenant for broken items, etc. So tenants get frustrated and find a better place to live. Therefore, to keep your tenants as long as possible, which also reduces your hassle factor on rentals, you need to treat your residents with respect. And, keep your properties updated and in good shape, repair items when they break and don’t point the finger at your tenants, handle issues professionally, and don’t let them even consider leaving! To further your devotion and appreciation of them, you might also consider minimal, if any, rent increases for great tenants who are responsi-
ble, take care of your property, and work with you if there are issues. The longer your tenant stays, the more money you earn, there couldn’t be any more simple math than that! The better you are as a landlord, the longer residents will stay and keep those rental checks arriving on time. Good luck.
Leonard Baron is America’s Real Estate Professor – his unbiased, neutral and inexpensive “Real Estate Ownership, Investment and Due Diligence 101” textbook teaches real estate buyers how to make smart and safe purchase decisions. He is a San Diego State University Lecturer, blogs at Zillow.com, and loves kicking the tires of a good piece of dirt! More at ProfessorBaron.com.
www.rentalhousingjournal.com
On-Site Northwest • November 2013
33
Washington Multi-Family Housing Association
Executive Director • Jim Wiard President • Jay Olson Vice President • Joe Manca Past President • Cassandra Haavisto Secretary • Gail Duke Treasurer • Brett Stevens Vice President of Suppliers Council • Barry Savage
18300 Cascade Ave. S., Suite 130 Tukwila, WA 98188 (425) 656-9077 (425) 656 9087 (fax) admin@wmfha.org
WMFHA Hosts Japanese Delegation
T
he Washington Multi-Family Housing Association (WMFHA) was privileged to host a study delegation of multifamily residential housing executives from Mitsui Fudosan Housing Company of Tokyo, Japan. Mitsui Fudosan personnel traveled to the United States to meet with industry counterparts in Seattle and Northern California. Their goals were to tour luxury apartment properties in the U.S. and exchange information on best practices to learn more about property management trends in our country. Their interests in possible differences between the two countries ranged from tenant satisfaction, technology, leasing strategies, facility amenities and personnel management. WMFHA’s Executive Director, Jim Wiard, was able to arrange corporate office visits with company representatives from Equity Residential, Holland Partner Group and Madrona Ridge Residential. These association members made presentations on the history of their companies, company culture, management practices and specific portfolio specialties. The delegation was able to tour many of their properties in the downtown
Seattle market, and hear from management personnel some of the challenges they have faced and successful management strategies they have deployed. The delegation’s visit ended with a meeting with WMFHA association staff and board members. Speaking through an interpreter, the group explored industry differences between Japan and the U.S., unique challenges in property management, leasing techniques, and trends toward ecofriendly apartment design and development. Wiard found very interesting differences in management practices between the two groups. In Japan, fair housing practices are not given strong emphasis. Property management companies vend out almost all maintenance work to vendors – they do not employ maintenance technicians other than a building maintenance supervisor. While we have 35,000 units under development in the next three years, in Tokyo, 35,000 new units have come online in just the first three months of this year. Lots of condos are being built, we were told.
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Japanese properties generally have no resident amenities (other than package lockers, they stated), not even laundry facilities. The group were amazed at property key fobs, fitness centers, movie rooms and common area kitchens. Their employee turnover rates are extremely low compared to the multifamily industry in this country. Rent growth is not as high as it is in Seattle. Property managers prefer two year leases on their rentals and almost everyone needs a guarantor, even applicants that have good credit. One similarity, however, is that when the group heard the word “Craigslist”, there was a collective nodding of heads. Yes, they advertise on Craigslist in Japan too. Mitsui members were very interested in regional demographic characteristics in occupancy, rent growth, turnover rates and construction starts in the Seattle market. Shori Nakahara, Manager of Lease Administration, explained that in Japan, property management companies lease an entire apartment building from an owner, then actively work with third party leasing companies to find residents for their units. “Although
the market is current averaging 90% occupancy, our buildings are at 97% occupancy” boasted Mr. Nakahara. Their “fee” earned is the spread on sub-lease occupancy between actual income and their master lease with the owner. The delegation was very interested in understanding the association model and role in the multifamily housing market that WMFHA plays, and how it supports its members and the industry. When asked by WMFHA board members if Mitsui Fudosan belongs to any associations in Tokyo, Shori said yes, they belonged to the Japan Property Management Association, which he felt was fairly similar in activities to the National Apartment Association. “This was a huge honor for us to meet with this group from Japan. We enjoyed hosting their delegation and learning more about property management in another country.” stated Jay Olson, association board President.
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On-Site Northwest • November 2011
ON-SITE
Key Changes ...continued from page 30 lous claim against a renters’ insurance policy the tenant can recover from the landlord actual damages plus $500. Tenant Screening and evictions (ORS 90.505 to 90.840) • When evaluating a tenant’s application a Landlord may not consider eviction histories if: • The evictions were dismissed, or resulted in a general judgment for the applicant, submitted before the application is tendered. • The general judgment against the applicant was entered five or more years before the applicant submits the application. • Arrest Records: o Arrest records that do not result in a conviction must be ignored as part of the application screening. o The Landlord may consider criminal conviction and charging history if the conviction or pending charge is for: o An arrest resulting from criminal behavior: drug related crime, a person crime*, a sex offense, a crime involving financial fraud (including identity theft or forgery), or any other crime for which the applicant was convicted or charged for that what would adversely affect: o The property of the landlord or a tenant. o The health safety or right to peaceful enjoyment of the premises by residents, the landlord, or the landlord’s agent. Timing of notice periods (ORS 90.160) • Notice days shall be calculated by use of consecutive calendar days not including the initial day of service but including the last day. For 72 hour and 144 hour notices the time period shall begin at 11:59 p.m. of the day the notice is both mailed and attached to the premises. The time period shall end 72 hours or 144 hours after the time started to run at 11:59. p.m. All other notices shall use 12 midnight for the last day.
• Temporary occupancy (ORS 90.275) Housekeeping issues o A landlord may allow an individual to become a temporary occupant of a tenant’s dwelling unit. In order for this to occur the landlord and the temporary occupant must enter into a written temporary occupancy agreement that describes the temporary occupancy relationship. o This agreement is not a rental agreement or a lease o Does not have the rights of a tenant o The Agreement can be terminated by: • The temporary tenant without cause at any time. • By the landlord only for a material violation of a temporary occupancy agreement. • Before entering into a temporary occupancy agreement a landlord may screen the proposed. temporary occupant for issues regarding conduct • For a criminal record. (You cannot screen a proposed temporary occupant for credit history or income level.) • A temporary occupant shall be treated as a squatter if the temporary occupant continues to occupy the dwelling unit after the tenancy has ended or the tenant has revoked permission for the temporary occupant to reside with the tenant. Noncompliance fees (ORS 90.302) and passing through of fees charged by credit card companies
• A landlord may charge a tenant a fee for a second or third noncompliance of written rules and policies after a written warning notice has been issued. The fee may not exceed $50 within one year and $50 plus 5% of the rent for a third or subsequent noncompliance notice within one year. o Notices shall clearly detail the non-compliance and the penalties for non- compliance and subsequent non-compliance. o Landlords can assess a fee or terminate a tenancy for noncompliance with rules... but not both. • Processing fees charged to the landlord by credit cards can be passed through to a tenant when the credit card processing company allows the fees to be passed through to the credit card holder. Abandonment (ORS 90.425) • There has been a subtle shift in this language. In section (2) the burden of responsibility has been solidly shifted to the backs of the landlords. The new language is now: A Landlord... is responsible for abandoned personal property and shall, store, sell or dispose of abandoned personal property as provided for in this section. As you can see there were many
significant changes. You may want to download the bills off of the internet to review or you can coordinate through the Rental Housing Association of Greater Portland (http://www.rhagp.org/) or Multifamily Northwest (http:// www.multifamilynw.org/) to get updated materials (i.e. forms and rental agreements) and classes, or call your favorite landlord tenant act attorney.
‘PERSON CRIMES’ DEFINED OAR 213-003-0001- ‘Person Crime’ is a designation given under Oregon law to certain specific offenses that involve offensive person to person conduct. Person crimes can be either person felonies or person misdemeanors. If someone is convicted of a person crime, the designation itself has little impact at time of sentencing. Where these offenses really come into play is when an individual who has previously been convicted of a person crime is sentenced on a new felony charge. At that point any prior person crimes in the individual’s past will serve to greatly enhance his or her sentence pursuant to the Oregon Criminal Justice Commission Sentencing Guidelines Grid. http://www.squirebozorth.com/ information-blog
35
• It is now permissible to assess non-compliance fees for : o Noncompliance regarding smoking in nonsmoking units and in areas where smoking is not permitted. o Keeping an unauthorized pet capable of causing damage to persons and or property.
Advertise in the Landlord Times - Onsite Circulated to over 17,000 Apartment owners, On-site, and Maintenance personnel monthly.
Call 503-221-1260 for more info. On-Site Northwest • November 2013
35
Institute of Real Estate Management President • Barry Blanton VP Finance • Mark Grey
Past President • Faye Crow
VP Membership • Glen Bachman
VP Communications • Christy Mays
Building Local Relationships to Increase Leasing By Mary Girsch-Bock in Business from PropertyManager.com a Service of AppFolio
T
he number one job of the property manager is to lease. Whether it’s a unit in a multifamily complex or a single family home; the success of the property manager lies in large part in how quickly and how effectively they lease empty space. Today, there are more leasing tools available to property managers than ever before. But there’s also more competition than ever before. While some managers may find it relatively easy to lease quickly, depending on market conditions and location, leasing effectively means that the property manager is not just filling those spaces, but filling them with quality tenants who will most likely pay their rent on time, take care of the unit appropriately, and likely not skip out on a lease. Wouldn’t it be great if you could have
a steady stream of quality applicants simply show up at your doorstep? Well, you can – if you know where to look. As a matter of fact, it’s likely they’re right next door, a few blocks over, or less than a mile away. They’re the employees of local businesses, and quite possibly, your future tenants! While online marketing, local ads and even a Facebook page can help drive traffic to your leasing office, building long-term relationships with area employers can help drive those quality applicants to your doorstep. Here are some suggestions on how to establish these relationships and why building these relationships will help keep your vacancies low: Offer local business a rental discount. Even a 5% discount will be sig-
nificant. By offering reduced rental rates or perhaps flexible leasing terms, you’re making a commitment to the company, who in turn, can help drive their employees your way. Don’t think of the partnership just in terms of leasing. These same companies can also be your partner in community events such as a local food drive or a coat drive in the winter. Partnering with area businesses will help raise your visibility in the community – a great strategy for lease-up or recently rehabbed properties. Rather than approaching businesses individually, consider having a community open house that provides property tours and additional information on the property. Once this is done, approaching the area businesses will likely yield better leasing results.
By partnering with area businesses, property managers will not only increase qualified applicant traffic, but will also gain a stronger presence in the community for the foreseeable future.
See You at TRENDS Dec. 10, 2013
ON-SITE
SEATTLE • TACOMA • OLYMPIA • EVERETT
Publisher Will Johnson will@propubinc.com
Designer/Editor Steve Olsen steve@propubinc.com
Advertising Sales Will Johnson will@propubinc.com Terry Hokenson terry@propubinc.com
Serving the Portland/VancouverMultifamily Housing Industry More than 17,000 Distributed Monthly www.rentalhousingjournal.com
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. Metro Apartment Manager is produced monthly and is published by Professional Publishing Inc. An Oregon Corporation. PO Box 30327 Portland, OR 97294-3327. (503) 221-1260 • (800) 3986751 Copyright 2013. All rights reserved.
36
On-Site Northwest • November 2011
ON-SITE
Field Coaching...continued from page 32 with training wheels, then the training wheels came off and you zigzagged and wobbled around and finally you could ride your bicycle, all by yourself. Your new employee is experiencing the same emotions and just needs your kindness and support while they are learning the skills you expect. Great coaching means, "listening" three times as much as you speak. And if coached properly, your new employee will be "riding" their new bicycle, having great fun and generating profitable results! Recapping your coaching day: After each future resident leaves your leasing office, spend the next 10-15 minutes recapping each presentation. Ask your new employee to describe for you exactly what went perfect and compliment them on their progress. Then, ask them to tell you exactly what they would improve when the next future resident arrives. Help them find ways to improve each presentation and watch to see their progress as your day with them continues. At the end of the day, ask your employee to watch you give one more perfect presentation, another telephone demonstration, a property tour and ask for their critique. This will serve as a powerful model for them to remember, long after this day is complete. Tip From The Coach: After you invest time field coaching a new employee, take 15-20 minutes the very next day to draft a letter thanking them for your time together. In the letter, praise them for the progress they made and recap the areas you would like them to develop and/or improve. Place this letter in your employee's file and make a note in your appointment book to review it again in 30 and 60 days. Remember quick follow-up and
reinforcement for every new employee during the first 60 days is the key to their success with your property management company. Want to hear more about this important topic or ask some additional questions about field coaching? Send an E-mail to ernest@ powerhour.com and The Coach will E-mail back to you a free invitation to be a participant on a PowerHour conference call.
nationalwifi.html ], powerful tools for hiring property management SuperStars and building dynamic teams, employee policy manuals [ http://www.powerhour.com/propertymanagement/employeepolicymanuals. html ] and social media strategic solutions [ http://www.powerhour.com/ propertymanagement/socialmedialeadership.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox sales methodologies. Recent interviews and articles have appeared more than 7000 times in business and trade publications and in a wide variety of leading magazines and newspapers, including Smart Money, Inc.,
Business 2.0, The New York Times, Fast Company, The LA Times, Fortune, Business Week, Self Employed America and The Financial Times. Since 1995, Ernest has written 200+ articles for the property management industry and created 350+ property management forms, business and marketing checklists, sales letters and presentation tools. To subscribe to his free property management newsletter go to: www.powerhour.com. PowerHour® is based in Olympic-town Park City, Utah, at 435-615-8486, by E-mail ernest@powerhour.com or visit their website: www.powerhour.com
Author's note: Ernest F. Oriente, a business coach since 1995 [31,120 hours], a property management industry professional since 1988--the author of SmartMatch Alliances--and the founder of PowerHour...[ www.powerhour.com and www.powerhourseo.com www. powerhourleadershipacademy.com and www.powerhoursalesacademy.com and www.pirmg.com ], has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars, traditional and Internet SEO/SEM marketing, competitive sales strategies, and high leverage alliances for property management teams and their leaders. He provides private and group coaching for property management companies around North America, executive recruiting, investment banking, national utility bill auditing [ www.powerhour.com/propertymanagement/utilitybillaudit.html ] national real estate and apartment building insurance [ www.powerhour. com/propertymanagement/insurance. html ], SEO/SEM web strategies, national WiFi solutions [ www.powerhour.com/propertymanagement/
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