.
December 2019
A monthly newsletter published by the Rental Housing Alliance Oregon
rha est. 1927
www.rhaoregon.org In this issue: RHA Calendar of Events .................................... page 2 President’s Message ..... page 3 Dear Maintenance Men.......................................... page 4 Christmas Safety Tips.... page 5 What is exchange insurance?............................ page 6 How to winterize ............ page 7 Property ManagementPeople just don’t understand...........................page 8 Allowable rent increase.................................page 11
RHA Oregon’s annual Holiday Dinner Party December 18, 2019 6:00-9:00pm At
Eastmoreland Golf Club See pages 11 and back cover for more details
RHA Oregon
Holiday Dinner Party
When: Wednesday, December 18, 2019 at 6:00pm Location: Eastmoreland Golf Club 2425 SE Bybee Blvd Portland, OR 97202 Price: $40.00 if registered by close of business Friday, December 13 $50.00 if registered after close of business Friday, December 13 Dinner Menu Prime Rib Carving Station With: Roasted Red Potatoes Fresh Vegetable Garlic Bread Salad Dessert Beverages: Coffee, Hot Tea, Iced Tea, Lemonade, Soda
Installation of Officers & Directors will take place December 18, 2019 (at the Holiday Party)
Officers-
Ken Schriver, President John Sage, President Elect Phil Owen, Vice President Sandra Landis, Treasurer Lynne Whitney, Secretary Ron Garcia, Past President
Nominations for Directors ~ Two Year TermTamara Collins Charles Kovas Melinda McClelland Diana Lindemann
Directors Continuing to Serve~ One Year Term RemainingJerad Goughnour Jim Herman Katie O’Neal Alan Carpenter Doug Moe Jake Ramirez Violet Anderson
To register or for more information visit https://rhaoregon.org/event/october-2019-dinner/
Registration/Cancellation Policy: To qualify for the early bird registration rate you must have your registration into the RHA office no later than 4:59pm on the listed early registration date in the advertising for the event. Deadline for refund/credit or cancellation of registration is up until 48 hours prior to the date and time of the class/seminar, up until 48 hours prior you will be refunded 100% of the cost to attend. If a registered guest/ member does not cancel and/or does not show to the scheduled class/seminar then the registered guest/member will be required to pay the full amount of the class/seminar. All registrations are non-transferable. Those with prior registrations to the class/seminar will be seated first. Once the maximum capacity for the class or room is reached, walk-ins will not be accommodated. Registered attendees who arrive 15 minutes after the start of the class/seminar be aware that your chair may be filled. Our venues do have a limited capacity therefore at times registration to an event may close prior to the event. LOCATION TIME INFORMATION DATE EVENT 12/11
Board Meeting
RHA Conference Annex
4:00pm
12/18
RHA Holiday Party
Eastmoreland Golf Course
6:00pm
See Holiday Flyer on page 11
12/25
Christmas Day
RHA Office
Closed
In Observance of Christmas
01/01
New Years Day
RHA Office
Closed
In Observance of New Years Day
01/08
Board Meeting
RHA Conference Annex
4:00pm
01/18
Mentor Round Table
RHA Conference Annex
11:00am
DATE
CLASSES
LOCATION
TIME
INSTRUCTORS
12/6
Screening Class
WebEx
11:00am
Marcia Gohman w/ National Tenant Network
12/20
Screening Class
WebEx
7:00pm
Marcia Gohman w/ National Tenant Network
01/07
Screening Class
RHA Conference Annex
11:00am
Marcia Gohman w/National Tenant Network
01/09
Relocation Fee’s and No Cause Terminations
RHA Conference Annex
6:30pm
Amber Clark w/The Garcia Group
01/10
Screening Class
WebEx
7:00pm
Marcia Gohman w/National Tenant Network
01/16
Landlording 102
RHA Conference Annex
11:30am
Warren Allen
01/21
Applying Fair Housing Application
RHA Conference Annex
6:30pm
Shyle Ruder, Education & Outreach Director
01/24
Screening Class
WebEx
11:00am
Marcia Gohman w/National Tenant Network
01/28
Screening Class
WebEx
7:00pm
Marcia Gohman w/ National Tenant Network
For additional class/event information visit: https://rhaoregon.org/education 2
RENTAL ALLIANCE UPDATE December 2019
www.rhaoregon.org
President’s Message Ken Schriver, RHA Oregon President
I hope you had a wonderful Thanksgiving break last week! I also hope you were able to take advantage of the great weather we had in November to carry out year-end maintenance projects in preparation for the coming cold weather. It isn’t yet too late to schedule gutter cleaning, furnace servicing, and other winterization projects to preserve your property and keep your tenants warm and dry. As we prepare for winter and various holiday celebrations, we should also be planning for both our own vacations and any extended tenant absences. This is a good time to provide an updated contact list to your tenants including emergency contacts if they are unable to reach you. Likewise, it is also a good time to update your own emergency contact information for your tenants and remind them to advise you if they will be away from their unit for an extended period. The holiday season can also be a time to reinforce the business relationships that landlords and tenants (should) have. It is interesting that while most of our friends and family no longer mail holiday greeting cards, my wife and I continue to receive an annual card from various individuals and companies with whom we have a professional relationship. This time of year, we receive cards from our dentists and optometrists, our financial planners, and even an airline lounge (we are frequent flyers). They often contain a handwritten note, usually expressing their appreciation for our business as well as conveying good wishes for the holiday season and the upcoming year. Although we don’t consider most of these people “friends” that we would invite to our home for a party, we do have a friendly, professional relationship with them. So how is your business relationship with your tenants? Is it like your other business relationships? After all, for many renters the landlord is the entity with whom they do the most commerce each month. They may be spending as much as one-half of their take-home salary on rent. Given this, it is only natural that we might cultivate a positive, professional business relationship. The benefits of having such a relationship with our tenants can be quite tangible: We had a turnover in a one-bedroom at the end of October, and the tenant left the unit in a condition essentially identical to when she moved in two years ago. I was happy to return her full security and pet deposits (she had both a dog and cat). She is happy to have an excellent landlord reference as she starts her new life in another state. Of course, not all tenants are as conscientious as she was. However, establishing and reinforcing a positive business relationship can go along way to reducing problems with our tenancies. While you may be using e-mail or an online platform to accomplish your maintenance scheduling or updating contact lists, a short note or card to your tenants at this time of year can be a very effective way of expressing your appreciation for their continued business. It also helps build a positive image for you as the landlord if you ever need to serve a tenant with bad news such as a notice of lease violation. Such a negative action is more likely to be perceived as a business decision rather than a personal attack when you have already established your credentials as a fair-minded landlord. Although I cannot send a hand-written note to all the members of RHA Oregon, I wish each of you, your families, your customers, and your tenants a wonderful holiday season and a prosperous 2020. Merry Christmas and Happy New Year! www.rhaoregon.org
RENTAL ALLIANCE UPDATE December 2019
3
Dear Maintenance Men by Jerry L’Ecuyer & Frank Alvarez
Dear Maintenance Men: How do we safely get rid of mouse droppings and nesting from a recent infestation? We have managed to get rid of the mice, but they have left behind a mess. What is the best way to handle some cleanup under the house now that they're gone? It's been about 6 months. Observed are mice fecal pellets and chewed insulation. Kirstin Dear Kirstin: Mice droppings and nesting can carry the Hantaviruses, so a bit of caution needs to be used. When you begin cleaning, it is important that you do not stir up dust by sweeping or vacuuming up droppings, urine, or nesting materials. •Wear rubber, latex, or vinyl gloves when cleaning urine and droppings. •Spray the urine and droppings with a disinfectant or a mixture of bleach and water and let soak 5 minutes. The recommended concentration of bleach solution is 1 part bleach to 10 parts water. When using a commercial disinfectant, following the manufacturer’s instructions on the label for dilution and disinfection time. •Use a paper towel to pick up the urine and droppings, and dispose of the waste in the garbage. •After the rodent droppings and urine have been removed, disinfect items that might have been contaminated by rodents or their urine and droppings. If you have not done this already, seal up any entryways to ensure that no rodents can get back in. Dear Maintenance Men: I am in the process of installing new dead bolt locks on a number of doors at my building. These doors have never been drilled for dead bolts before. The problem I’m running into is how to line up where to drill for the latch plate in the doorframe. The door is either tight against the fame or is too loose. Do you have any good tricks for getting this done? Ken Dear Ken: Indeed we do. Lip stick or shoe polish is the answer. After the dead bolt lock is installed in the door and with the door open, extend the bolt. Now, dab the end of the bolt with lip stick or shoe polish and return 4
RENTAL ALLIANCE UPDATE December 2019
the bolt to the unlocked position. Close the door and attempt to lock or extend the bolt into the frame. Open the door and on the frame should be the exact location of the latch plate bolt hole. Using a one-inch wood bit, bore a hole 1.5 inches deep. If your wife will not let you use her lipstick, here is an alternate method. Cut a one-inch thick dowel rod three inches long, insert a small finish nail into the end of the dowel rod, and be sure to center the nail. Cut the head of the nail off. With the dead bolt lock removed from the door, insert the dowel rod into the latch hole in the door with the nail end facing out. Close the door and with your finger, push the dowel rod into the doorframe. Pull the rod out and your drilling site is marked exactly. One last item, if you are doing a number of doors, it may be worth purchasing a doorknob drilling jig. It will contain all the tools needed for professional door lock drilling and installation. The kit typically costs about $30 on up; a professional version can cost between $200 & $400. If you are doing more than a few doors, buying a professional door drilling kit will pay for itself just in the time and frustration is saves. Dear Maintenance Men: I have started a kitchen-remodeling project in my apartment building and need some ideas for under kitchen cabinet lighting. I don’t want to use fluorescent fixtures, as they are very bulky and the light is harsh. Jackie Dear Jackie: Try using “Rope Light” for accent lighting in some units. Rope light is very flexible and has a life expectancy of 25,000 hours. It can be installed behind the lip under the upper cabinets or if you have space above the cabinet, just lay it on the top. Rope light produces a nice subdued light, not too bright. Other areas where rope light can be installed are closets, inside cabinets, in the garden, (it is very tough material), under the roof eave to accent the building etc. The problem with rope lights is that you can go crazy with it, there are so many applications. Rope light can be found at most hardware stores and it comes in rolls as long as 150 feet or in small sections of 10, 12, 24 and 48 foot. We recommend getting the LED rope lite as the rope does not get hot with use. (continued on page 5) www.rhaoregon.org
Maintenance Men Cont. CONTINUED FROM PAGE 5 WE NEED Maintenance Questions!!! If you would like to see your maintenance question in the “Dear Maintenance Men:” column, please send in your questions to: DearMaintenanceMen@gmail. com Bio: If you need maintenance work or consultation for your building or project, please feel free to contact us. We are available throughout Southern California. For an appointment please call Buffalo Maintenance, Inc. at 714 956-8371 Frank Alvarez is licensed contractor and the Operations Director and co-owner of Buffalo Maintenance, Inc. He has been involved with apartment
maintenance & construction for over 20 years. He is also a lecturer & educational instructor and Co-Chair of the Education Committee of the Apartment Association of Orange County as well as being Chairman of the Product Service Counsel. Frank can be reached at (714) 956-8371 Frankie@BuffaloMaintenance. com For more info please go to: www. BuffaloMaintenance. com Jerry L'Ecuyer is a real estate broker. He is currently on the Board of Directors and Past President of the Apartment Association of Orange County .and past Chairman of the association’s Education Committee. Jerry has been involved with apartments as a professional since 1988.
IMMEDIATE
RESPONSE Sean & Shelby Goforth 503-517-9027
junkawayhauling@gmail.com Your items picked up are recycled and/or donated Shelby Cell: 971.998.4654 Sean Cell: 971.808.6387 PORTLAND
VANCOUVER
Christmas Safety Tips for Landlords and Their Tenants by Sharon Vornholt
Landlords are always concerned about safety issues in their investment property. But there is no better time than during the holidays, to remind your tenants of some basic steps they can take to keep themselves and the property they live in safe. Holiday decorations present many “opportunities” for landlords to encounter additional liability. Indoor Christmas Lights Indoor Christmas lights should be replaced every three to four years for safety however most of us tend to keep them a lot longer than that. Those tiny wires can be easily damaged from normal use. Before you put any lights on the tree, they should be inspected for broken and cracked sockets, frayed, bare or damaged wires and loose connections. Never use more than three strings of lights per extension cord as this presents a definite fire hazard. Christmas lights are relatively inexpensive so go ahead and change them out every few years for fire safety reasons. Be sure to remind your tenants to always turn off the Christmas lights when they leave. Exterior Christmas Lights Tenants that decorate their homes with exterior lights can expose their landlord to some serious liability. Many people are injured from roof falls and shocks every year when they get up on the roof to decorate. Just walking on the roof in very cold conditions can damage the shingles on the roof. When using exterior Christmas lights, always be sure that the lights and any extension cords are certified for exterior use and that they are plugged into GFCI protected outlets. Chimneys and Fireplaces As a landlord, if you have a property with a wood burning fireplace, be sure to have the flue cleaned annually. Creosote occurs naturally from burning wood. If it gets to be a quarter inch thick or thicker inside the chimney, it’s a fire hazard as it can ignite and cause a chimney fire. Be sure to caution your tenants not to throw wrapping paper in the fireplace. Those materials tend to get very hot as they burn and they can cause flash fires. Candles People love candles, but candles pose a serious fire risk if they are not handled properly. Most fires started by candles are a result of them being forgotten or being placed too close to something that is flammable. With a little caution, most all fires started by candles could be prevented. Facts and Figures The US Consumer Product Safety Commission (CPSC) has some sobering statistics I would like to pass onto everyone that has rental property. o Christmas trees are responsible for 300 fires annually which result in 30 injuries, 10 deaths and $10,000,000 in www.rhaoregon.org
(continued on page 10) 5
RENTAL ALLIANCE UPDATE December 2019
What is “Exchange Insurance” and How Can it Be Used? Roger W. Bowlin – Founding Partner at Real Estate Transition Solutions
Real estate investors regularly hear the adage “money is made on the buy” preached by fellow investors, brokers and experts alike. If so, how does it make sense that market conditions can both simultaneously support the sale of a property and an exchange into a similar property? Logically it seems that either the market supports a sale or a purchase but not both. Simply put, how can you expect to make money trading apples for apples?
The reality is that the market can support both a sale and purchase, but the level of support depends on how you choose to define “similar property.” “There are ways to capitalize on 1031 Exchange opportunities within the same geographic area and property type” states Spencer Clark, Director of Marcus & Millichap’s multi-family group. “For instance, exchangers can find replacement property in neighborhoods that are lagging behind the rest of the city’s appreciation curve or they can find a property that presents a value-add opportunity and is not fully stabilized. However, many investors are hunting for properties with upside potential and purchasing these properties can be competitive.” While opportunities exist, these inter-market replacement properties can be easily bid up to the point in which they no longer make financial sense. Cash investors can choose to sit on the sidelines until the market cools, but exchangers who sell their relinquished property, due to significant appreciation, are on a much tighter acquisition timeline. What is an investor to do when they are hunting for competitive local replacement properties and have not been able to close on a property before the end of their 45-day identification period? “All too often we see clients enter the exchange process with the intent of sourcing a property within the 45day identification period, then due to the competitive market and limited inventory, either settle for a sub-par property or opt to pay the tax” says Kyle Williams, Vice President of qualified intermediary firm IPX 1031. “Our recommendation is almost always to identify and gain control of your replacement property ahead of time or identify a secure backup property.” [Author’s note: 1031 exchange rules allow for identification of up to three replacement properties or an unlimited number of properties with an aggregate value not to exceed 200% of the relinquished property – not all properties identified must be purchased].
(DSTs) as “Exchange Insurance.” DST owned real estate is approved by the IRS as replacement property for 1031 Exchanges purpose – however within this application, what truly sets DST ownership apart is that the real estate can be identified and closed on in a matter of days, assuming the acquisition is suitable for the investor. The close process does not contain any “contingencies” as the underlying property within the trust as well as the financing and tenanting are already secured, thus the property begins its cash flow potential from the day of the closing. DSTs identified as “exchange insurance” help alleviate the timing pressure that can force an investor into making poor replacement property decisions or, even worse, paying considerable tax (capital gains, depreciation recapture, Obamacare tax) upon the sale. To learn more about Delaware Statutory Trusts (DSTs), including how they work, risks vs. benefits, and available options, visit our website at www.re-transition.com and download our FREE guide, “Investing in Delaware Statutory Trusts”. If you are considering selling your investment property and would like to learn more about tax-deferred 1031 Exchanges and Delaware Statutory Trusts, give us a call at 206-6862211 or email us at info@re-transition.com. One of our 1031 Exchange advisors will be happy to chat with you and can even schedule a complimentary phone consultation to go over your specific situation and provide available options best suited for you. Roger W. Bowlin – Founding Partner of Real Estate Transition Solutions, provides exit strategy analysis, execution, income and equity replacement options for investment property owners. If you have questions relating to your investment property ownership, please email info@ re-transition.com or call (206) 686-2211.
Enter the concept of utilizing Delaware Statutory Trusts 6
RENTAL ALLIANCE UPDATE December 2019
www.rhaoregon.org
10 Tips to Winterize Your Home
mixing with the moisture in the crawlspace.
1.Disconnect exterior hoses from their fixtures, even frost free hose bibs will collect water in the pipe that can freeze and lead to breakage.
6.Install storm doors and windows. These heavy-duty windows and doors help to keep the cool air outside and trap the warm air indoors. The time spent is worth the money saved. If storm windows are not in the budget, you can get inexpensive window plastic to provide that thermal layer.
2.Change out your furnace filters. When these filters are full of dirt they restrict the air movement and inattention to warming your home as well, they will use more energy than a clean filter. 3.Weather seal windows and doors to prevent drafts in your space. Some people make interesting looking draft snakes with faces and the like. Getting rid of these drafts can save you up to 30% on your energy usage in the winter. Double side foam will create a tight seal around doors. 4.Wrap or insulate heating and water pipes to prevent freezing as well as reduce the amount spent to heat your water. This will also reduce air cooling as the air moves through the pipes since the cold air under the home is not in contact with it. 5.Ensure your ducts are sealed and do not have any holes or gaps. Studies show that 10 to 30 percent of heated or cooled air escapes through from ducts. It will also help prevent mold since it stops warm air from entering and --------------------------------------------------------ATTENTION: New changes to bylaws effective February 2020
7.Take caution when closing your vents in the winter as you could be trapping existing moisture in your crawlspace which could then lead to mold, mildew and dry rot. This should only be done if you are concerned about your water pipes freezing. If you do close your vents, remember to reopen them when winter is over. 8.If you live on an incline or sloped lot, salt your stairs and walkway to prevent or minimize the risk of injury. 9.Double check your gutters before winter to ensure they are still clean and ready for winter. 10.Have extra supplies in the event of an outage or heavy storms such as extra food and water. 10. Have extra supplies in the event of an outage or heavy storms such as extra food and water.
Reprinted with permission of the Apartment Owners Association of California (AOA)
Amendment to RHA By-Laws As currently stated; ARTICLE V – OFFICERS AND BOARD OF DIRECTORS Section 12. There shall be at least 15 and not more than 20 members of the Board of Directors which shall include all of the elected officers, the Immediate Past President, and at least one Affiliate and no more then four Affiliates. Proposed change; ARTICLE V – OFFICERS AND BOARD OF DIRECTORS Section 12. There shall be at least 15 and not more than 20 members of the Board of Directors which shall include all of the elected officers, the Immediate Past President, and at least one Affiliate and no more than six Affiliates. www.rhaoregon.org
RENTAL ALLIANCE UPDATE December 2019
7
Considering Selling
Your Investment Property? Considering a
1031 Exchange? ASK US ABOUT:
1031 Exchange Solutions Real Estate Investing Seminars and Workshops Passive Investment Opportunities – No More Tenants Toilets and Trash! Delaware Statutory Trust (DST) Properties Triple Net Leased (NNN) Properties 721 Exchange UPREIT Properties – How to 1031 Exchange into a Real Estate Investment Trust (REIT) Opportunity Zones Preferred Return Investment Opportunities
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8
This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax and legal professional for details regarding your situation. This material is not intended as tax or legal advice. There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. Securities offered through WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities. Preferred return is not guaranteed, and subject to available cash flow. www.rhaoregon.org
RENTAL ALLIANCE UPDATE December 2019
Property Management: People Just Don’t Understand By Katie O’Neal Property Manager, Acorn Property Management
If you’re a property manager, you’ve probably talked to at least one person who thinks you have the easiest job in the world. You go to work every day, sit back and collect rents and, on the rare occasion when a property repair is requested, you dip into an endless supply of funds to make the improvements quickly and easily. If only it was so simple much of the time! The vast majority of people have little idea what it takes to manage a property in a way that supports both the tenants’ and the owners’ varying needs. No matter how hard a property manager works, it’s just not possible to keep everyone – both the tenants and the owners – happy all the time. And when those interests are at odds, it can be quite challenging for the property manager. For instance, a property manager has a fiduciary responsibility to an owner, so on the one hand, the property manager is always representing the owners’ interests. On the other hand, without happy tenants, there is quite simply no rental property business. So, in reality, both tenants and owners are property managers’ clients. And, boy is there a lot to manage. From managing owners’ assets, to the property itself and the need for repairs, to managing tenants’ behavior and expectations, to accounting for financials, a professional property manager has to stay on their toes. Then there’s the really tough jobs, such as issuing rent increases, terminating tenancies, and telling a tenant that a requested improvement or rent concession won’t be approved. Many tenants really do think property managers represent owners who have no limit to the amount of money they can put into the property. And try to tell them it’s just not time to repaint the unit or upgrade the kitchen or change the landscaping. Owners have to be judicious about the cost-benefit analysis of any strictly unnecessary property improvements and that can be a challenging message for a property manager to deliver to tenants. So the real job for a property manager is holding the balance between owners and tenants. Routine inspections are great example of when this might come into play. Your tenants, upon inspection, give you a laundry list of upgrades they think they’re entitled to in exchange for their rent. You might find yourself telling a tenant that an owner simply can’t afford a requested upgrade. While this might seem like a straight-forward message to you, the tenant may have their hopes up and be genuinely disappointed. Finding a way to deliver the message so that the tenants understand the perspective of the owners can go a long way towards bridging the communication gap here. Help your tenants understand that you aren’t the ultimate decision maker and that you are sometimes in the middle too. Helping both sides understand the others’ perspective can be one of the most important and most rewarding parts of your job. www.rhaoregon.org
And talking about communication gaps, let me warn you about one of the toughest challenges a property manager may face: the “communication triangle”. This happens when, rather than allowing the property manager to be the communication messenger between the owner and the tenants, an owner inserts themselves in the middle and bypasses the property manager. In that case, the owner reaches out directly to the tenants to have a conversation. Property managers see this particularly often with owners who used to manage their own properties or owners who do their own maintenance. This communication triangle is problematic, increases liability, and on many levels is to be avoided at all costs. Property managers who find themselves in a communication triangle with owners and tenants frequently find that decisions or promises have been made without their knowledge. There’s nothing worse than issuing a pet violation notice, only to have the tenant call you after you’ve served it and say “the owner said I could.” Or how about an owner telling a tenant something will be done within the next three days, but forgetting to tell you about it! Avoid this triangle up front by educating your owners about it when you sign the property management agreement. And if you find out it’s happened during your management of the property, do not under any circumstances ignore it or hope it will go away. Because you know what? If it happens once, it will almost certainly happen again. Which brings us to the grand-daddy of owner-tenant triangles, the one that keeps all property managers awake at night – that owner who thinks “it’s my property, so therefore I can go over anytime, day or night, for any reason, and with no notice.” If you’ve managed property for any length of time, you will eventually run into this owner. The owner who doesn’t understand that they’ve hired you not just to find good tenants, not just to collect rent, not just to protect the property’s condition, but to protect them from themselves too. That part of what they’re paying for when that property management fee is assessed each month is a property manager who understands landlordtenant law. A good owner will not just accept, but will actually expect, their property manager to say, “whoa, Mr. Owner, hold on there a minute. What you’re about to do (or just did) is against landlord-tenant law and let me tell you why…” A good property owner should understand that this, in fact, is one of the most valuable services you’re selling them. Helping owners and tenants understand you, and each other, can be one of the most challenging aspects of your job. But the good news is, it’s also one of the most satisfying.
Katie O’Neal is a Licensed Property Manager in the State of Oregon, a Continuing Education Provider, Chair of the Education Committee for the RHA Oregon, and General Manager of the Portland Oregon branch of Acorn Property Management, LLC. She can be reached with questions or comments at 971-352-6760 or email Katie@ AcornPM.net. RENTAL ALLIANCE UPDATE December 2019
9
2020 Oregon Allowable Rent Increase Cap is 9.9 Percent The annual allowable rent increase percentage for the 2020 calendar year is 9.9 percent, down slightly from 10.4 percent in 2019, announced by the Oregon Office of Economic Analysis (OEA). Oregon’s new rent control law, SB 608, passed in February 2019, ushering in the first-in-the-nation statewide rent control. SB 608 created two major changes to the Oregon Residential Landlord Tenant Act by limiting the scope of termination notices without stated cause and implementing rent control. Each year, the OEA is responsible for calculating and publishing, by September 30, the maximum annual rent increase percentage allowed by statute SB 608 for the upcoming year. The OEA calculates this amount as 7 percent plus the Consumer Price Index (CPI) for All Urban Consumers, West Region (All Items), based on the most recent published data from the Bureau of Labor Statistics for the period September thru August. The CPI went down slightly from 3.4 percent to 2.9 percent. This results in the annual allowable statewide rent increase cap of 9.9 percent for 2020, and will go into effect on January 1st, 2020. Attorney and Rental Housing Alliance Oregon Board Member Charles Kovas cautions, “Landlords with outstanding 90-day notices should be aware that those notices may need to be hand-delivered in order to comply with the January 1st rate change.” The cap on rental increases applies to all renewals and to all rent-increase notices delivered on or after February 28, 2019. Under this law, if landlords terminate tenancy of a prior tenant with a notice of termination without cause during the first year of occupancy, the landlord may not increase rent for that unit by more than 7 percent plus CPI when the subsequent tenant moves in. The only exemptions to this maximum rent-increase limit are: 1. Properties with a certificate of occupancy less than 15 years old, or 2. Properties providing reduced rent to the tenant as part of any federal, state or local program or subsidy. For more information, contact Attorney Charles Kovas at CharlesKovasLaw@ gmail.com or call 503-496-5543.
Christmas Safety Cont. CONTINUED FROM PAGE 5
property damage. o There are 12,500 injuries every year from roof falls and shocks associated with the installation of exterior Christmas lights. o Candles start about 11,600 fires annually which result in 1200 injuries, 150 deaths and $173,000,000 in property loss. No one wants to get “that call”; the one telling you that someone has been injured on your property or that the house has sustained serious damage from a fire. Take a few minutes this busy holiday season to give your tenants a little reminder of these simple but important safety tips. Sharon Vornholt is with Innovative Property Solutions, LLC – author of LouisvilleGalsRealEstateBlog. Reprinted with permission of the Apartment Owners Association of California, Inc. http://www.aoausa.com 10
RENTAL ALLIANCE UPDATE December 2019
FIND EVICTIONS STRESSFUL?
503-‐242-‐2312
Full FED Service First Appearances evict@landlord-‐solutions.com Small Claims
www.rhaoregon.org
Wednesday December 18th 6-9pm at
Eastmoreland Golf Club
RHA Oregon’s 2019 Holiday Dinner Party
Dinner Menu Main Course Accompaniments
Dinner Price
Dessert Beverages
Gift Exchange Please bring a nice gift for the gift exchange -One per personAnd a toy for the Toy Drive
www.rhaoregon.org
To register go to: www.rhaoregon.org Email us at: info@rhaoregon.org Or call us at: 503-254-4723
RENTAL ALLIANCE UPDATE December 2019
11
RHA Oregon’s Annual Drive Toys will be given To families of Those who are homeless wiTh children Through
snowcap
help brighTen The life of a child, bring an unwrapped gifT or gifT card.
Please bring new unwrapped toys to the RHAOregon at: 10520 NE Weidler Portland, OR 97220 OR To RHA’S Holiday Dinner Party GIFTS FOR CHILDREN AGES 9 & UP ARE ESPECIALLY NEEDED