March 2020
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 Landlording 101...................page 4 Dear Maintenance Men................. .....................................................page 5 How To Avoid My Top 7 Landlord Mistakes..................................page 7 Does Your Insurance Policy Include Mold Coverage?.............................page 8 Education Calendar.......page 9 Exchanging into a Delaware Statutory Trust.................page 10
Spring Vendor Fair
Where: Celebrate Catering & Conference Center When: Thursday, March 19, 2020 Price: FREE to Members Location:15555 SW Bangy Rd. Lake Oswego, OR 97035
COME NETWORK WITH THE RHA AFFILIATE VENDOR MEMBERS, LEARN ABOUT THEIR SERVICES AND HOW THEY CAN ASSIST YOU WITH YOUR RENTAL PROPERTY RAFFLE PRIZE DRAWINGS 50/50 CASH PRIZE DRAWING
*If you are an Affiliate member and interested in securing a table at the Vendor Fair, please email specialprojects@rhaoregon.org
Come see the following Vendor Fair participants Liveable Garcia Group Junk-N-Joe Johns Waterproofing Company Contract Furnishings Mart Cobalt, P.C. Energy Trust of Oregon Apollo Drain Showdigs National Tenant Network
DATE
EVENT
LOCATION
TIME
03/11
Board Meeting
RHA Conference Annex
4:00pm
03/19
Spring Vendor Fair
Celebrate Catering & Conference Center
6:00pm
03/21
Mentor Round Table
RHA Conference Annex
11:00am
04/8
Board Meeting
RHA Conference Annex
4:00pm
04/22
Dinner Meeting
Oswego Lake Country Club
6:00pm
04/23
Mentor Round Table
RHA Conference Annex
6:00pm
Stegmann Insurance LegalShield Prolift Garage Doors Landlord Reference.com Real Estate Roofing,INC Goosehollow Window Company,INC Water Bear Restoration Pacific Ductless Service Master
INFORMATION
DATE
CLASSES
LOCATION
TIME
INSTRUCTORS
03/03
How to use Landlord-Reference.com
Join.me
7:00pm
Robert Collier w/ Landlord-Reference
03/06
Online Tenant Screening Class
WebEX
7:00pm
Marcia Gohman w/ National Tenant Network
03/10
Online Tenant Screening Class
RHA Conference Annex
11:00am
Marcia Gohman w/ National Tenant Network
03/11
How to use Landlord-Reference.com
Join.me
7:00pm
Robert Collier w/ Landlord-Reference.com
03/12
Tenant Screening Best Practices
RHA Conference Annex
6:30pm
Amber Clark w/ The Garcia Group
03/17
How to use Landlord-Reference.com
Join.me
7:00pm
Robert Collier w/ Landlord-Reference.com
03/19
Tenant Screening Best Practices
RHA Conference Annex
11:30am
Amber Clark w/ The Garcia Group
03/20
Online Tenant Screening Class
WebEX
11:00am
Marcia Gohman w/ National Tenant Network
03/24
Legislative Update
RHA Conference Annex
6:30pm
Charles Kovas w/ Charles Kovas Law
03/24
Online Tenant Screening Class
WebEX
7:00pm
Marcia Gohman w/ National Tenant Network
03/26
How to Use Landlord-Reference.com
Join.me
7:00pm
Robert Collier w/ Landlord-Reference.com
04/03
Online Tenant Screening Class
WebEX
7:00pm
Marcia Gohman w/ National Tenant Network
04/07
Online Tenant Screening Class
WebEX
11:00am
Marcia Gohman w/ National Tenant Network
04/09
Tenant Screening Best Practices
RHA Conference Annex
6:30pm
Amber Clark w/ The Garcia Group
04/16
Assistance Animals, Disability and Fair Housing
RHA Conference Annex
11:30am
Diane Hess w/ Fair Housing Council of Oregon
04/17
Online Tenant Screening Class
WebEX
11:00am
Marcia Gohman w/ National Tenant Network
04/21
Successful Real Estate Investing
RHA Conference Annex
6:30pm
Cliff Hockley w/ Bluestone & Hockley Real Estate Services
04/28
Online Tenant 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 March 2020
www.rhaoregon.org
President’s Message Ken Schriver, RHA Oregon President
An old English proverb about the weather tells us “March comes in like a lion and goes out like a lamb.” From my viewpoint as a landlord, it looks like March will be arriving like a lion with respect to the political and legal storms here in Oregon, and especially in Portland. As I write this, Multifamily NW, another organization that supports landlords in the region, has filed suit against the City of Portland to halt the implementation of the so-called Fair Access in Renting, or FAIR Ordinances, which would regulate Security Deposits and Application & Screening procedures. These rules are scheduled to go into effect on March 1, 2020. As an organization, RHA Oregon supports Multifamily NW in their lawsuit, and we are encouraging our members to support MFNW as individuals as well. If you attended one of RHA’s workshops or our February dinner meeting covering this topic, you are certainly aware as to why landlords are so upset about these ordinances, which appear to be motivated more by a desire to punish small landlords and drive them out of business than to help bridge the housing affordability gap in Portland and the surrounding Metro area. As I write this, the Portland Housing bureau has published an eightpanel brochure describing the rules for Security Deposits, and a 20-page booklet describing the Application & Screening rules. When the explanation of a single rule exceeds the length of an entire lease agreement, the system is broken. Enough is enough! Even as the Portland Housing Bureau attempts to implement these ordinances by micromanaging the business of being a landlord or property manager, there are myriad unanswered questions and unintended consequences, which these ordinances do not address. A lawsuit to stop this process is both timely and appropriate. If there is a silver lining to the gathering storm clouds, it appears that landlords won’t be fighting against bad regulatory legislation at the state level this year, as the debate over cap-and-trade legislation will likely consume the short session that ends on March 7. However, housing issues and rent regulation are almost certain to reappear in the 2021 session. Now is the time to prepare. Fortunately, organizations like RHA Oregon and Multifamily NW have members that are willing to step up when the going gets tough. Whether you are a member of one or both organizations, or neither, there are some specific ways that all landlords can help in current and future fights: 1.Make a contribution to the Multifamily NW Defense fund; there is a “Donate” button on their website under Advocacy/Defense Fund. Donations are confidential. 2.Make a contribution to RHA Oregon; designate it for landlord advocacy. 3.Join the RHA Oregon Member Advocate Subcommittee which is organized under the Legislative Committee. Contact the RHA office and let them know if you are willing to write letters or present public testimony. 4.Support and vote for city council candidates and state legislators that are willing to listen to the positions of landlords. 5.Share your story of being a good landlord, and how these regulations are impacting you personally, by sending an e-mail to MyHousingStory@multifamilynw.org. 6.Join, follow, and like our organizations on social media! Be sure to find us on Facebook, Twitter, LinkedIn, and Google. I hope you will join me and other landlords both large and small as we work to stem the tide of bad regulatory legislation. www.rhaoregon.org
RENTAL ALLIANCE UPDATE March 2020
3
LANDLORDING 101 All Day Class Saturday April 11, 2020 9 - 5:00pm (includes lunch)
Spend an entire day with landlord attorney and co-creator of RHA Oregon’s forms,
Mark Passannante
You’ll come away from Landlording 101 with a deeper understanding of rental housing law, how the laws work from the landlord and the tenants’ perspectives, better management strategies, and a book of sample forms and notes from all of the questions you always wanted to ask an attorney, and a lot more you’d never thought of. COST: $120 Member, $170 Non-member Register by close of business Monday April 6, 2020 to receive an early registration discount of $20 AT: The Monarch Hotel Clackamas 12566 SE 93rd Ave Clackamas OR 97015 ~ Six Continuing Education credits are available with this seminar ~
Register by: Visiting: https://rhaoregon.org/calendar/2020-04/ Emailing: Info@rhaoregon.org Calling: (503)254-4723 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. Walk-ins will only be accommodated once the class has started and only if space is available. 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. 4
RENTAL ALLIANCE UPDATE March 2020
www.rhaoregon.org
Dear Maintenance Men by Jerry L’Ecuyer & Frank Alvarez
Dear Maintenance Men: I have a hard of hearing resident. She uses a Ring Doorbell w/ camera but it doesn’t always alert her when someone is at the door. I thought of a door bell with a flashing light. I know these types of doorbell exist but I can’t find one that directly replaces my door bell with a bell and flashing light. There are several available that run on a battery and require another doorbell button to be added. With these I worry the battery will die and I will be constantly changing it. Do you know of a flashing light/doorbell which would directly replace my existing doorbell? Thanks for your help, John Dear John: There are currently several different options on the market for you to choose from both hardwired and battery operated. Quality battery operated devices use a 10 year, sealed lithium battery which helps to avoid constant change-outs. The installation of an Audio/ Visual Door Alert for the Hearing Impaired comes in handy for knowing when to answer the door. Just as important, the installation of Audio/Visual CO and Smoke Alarms are critical for knowing when a Hearing Impaired person should exit the door in an emergency. For hardwired devices; Edwards-Signaling Corp makes a Hotel Room Annunciator Kit that easily replaces your existing door bell and chime system for single button function and operates using your existing 24v transformer. (However, we recommend the use of the transformer included in the kit.) The chime is replaced with the combination signaling horn and strobe light. Harris Communications also manufactures a very inexpensive Doorbell Strobe Signaler that readily connects to any 24v transformer and you simply replace it for your chime. For battery operated or wireless doorbells and Audio/ Visual “chimes”, Nutone and scores of other companies manufacture battery operated doorbell buttons to replace your existing one and come with one or multiple Audio/ Visuals alarms which plug into any 120v outlet. They are sold in kits and can purchased for one room or the entire dwelling. When dealing with a battery operated system, chose a quality over price. For Fire, Life and Safety devices, Kiddie, First-Alert and Gentex manufacture great combination Smoke and CO Detectors. They are ADA compliant Hearing Impaired www.rhaoregon.org
devices and can be purchased as either battery operated or hardwired. The best part is, they are available at any big box hardware store. Note: The big take away from this particular question is, anytime you are presented with maintenance issues that may lead to ADA requirements or “Reasonable Accommodations”, consider your approach and performance very carefully which includes consulting with professionals. ADA requirements are very specific in regards to the installation and locations of devices and equipment. Dear Maintenance Men: Now that winter is over, do you have a spring time list of maintenance tips? Bill Dear Bill: What a great question! Yes we do have a few tips. 1: We like to start at the top and check the roof for any winter time damage. Check the flashing, roof transitions and fascia boards. Don’t forget to check any downspouts and drain covers. 2: Check all the windows and make sure they are well sealed. Clean out the weep holes in any aluminum window frames and caulking on wooden windows. This is a good time to put a drop of grease on the moving parts of the crank out windows. Check screens for holes and replace any missing screens. 3: Check the proper operation of all smoke and carbon monoxide alarms. Keep note of the original install date and the date each alarm was checked thereafter for your records. 4: Check the building’s siding, brick and stucco walls for cracks, peeling paint and rot. 5: Clean out air conditioning filters and vents. Remove any lint, dust and dirt from around A/C coils. 6: Check sidewalks, stairs, decks, balconies and ramps for cracks, lifting and possible water intrusion. 7: Turn on and check all lawn sprinkler valves and look for broken heads, pipes and errant concrete watering. 8: Inspect water heaters and boilers for proper operation. 9: Check and adjust any exterior lights and timers. 10: Check on your residents and ask for any feedback on anything that might need repair. They live at the building day in and day out. Their input can be quite valuable in terms of preventive maintenance and resident relations.
(continued on page 6) RENTAL ALLIANCE UPDATE March 2020
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Thank you
2020 Spring Vendor Fair Sponsors
ServiceMaster Johns WaterProofing WaterBear Restoration ..................................................................................................................................................................................................................
Maintenance Men Cont. CONTINUED FROM PAGE 5
Dear Maintenance Men: We have wood floors in our units and want to know how best to refinish them. We have several vacancies coming up and the floors look well lived in. Mark Dear Mark: Wood floors take the most abuse of any wood product. The floors need to be protected from scratches, spills, foot traffic and any grit and dirt on the surface. Polyurethane finishes provide a hard, durable finish that wood floors require. Polyurethane is easy to apply, however it is best to use a natural bristle brush rather than a foam pad. The foam pad will leave air bubbles in the finish. Sand properly to remove any loose finish; this will allow the new finish to adhere properly. When applying the polyurethane finish, allow the first coat to dry overnight, and then sand it lightly with a 220-grit sandpaper. Always apply a second coat and we recommend a third coat to ensure the best protection and look for your wood floors. 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. Frankie is President of the Apartment Association of Orange County and a lecturer, educational instructor and Chair of the Education Committee of the AAOC. He is also 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 a Director Emeritus 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. 6
RENTAL ALLIANCE UPDATE March 2020
www.rhaoregon.org
How To Avoid My Top 7 Landlord Mistakes By Larry Arth Learning from your mistakes so you can master your business is the key to your success. You can learn from other people’s mistakes, so I would like to share mistakes that I have either personally made or have watched investor-clients make. So here is how to avoid my top 7 landlord mistakes. No. 1 – Being too quick to fill a vacancy. I often see new landlords and investors fall prey to this one. I, too, many years ago made these bad judgment calls (never again). It is easy to drop your standards when a unit is about to become vacant. Emotions take over and a prospect comes to you waving cash at you. Sure, they do not represent the perfect tenants. Or their income is lower than you as a landlord might require. But they are nice people and they have the cash for the deposit and first month’s rent. Besides, I think, “I will start negative cash flow next week if I do not rent to them.” Three months later, I struggle to collect rent and month after month is a fight to get paid. I tell myself, “I wish I held out for better tenants.” Like so many others, I have learned it is far better to have a few weeks of vacancy while finding the best tenant than to hurry and rent to a bad apple. No. 2 – Treating tenants as an income source instead of valued customers. Having an investment property business and managing tenants as a landlord is no different than any other business. We need to work hard to obtain customers and treat them well so they will return. I was a landlord at the age of 18 and to me then, tenants were my income source. I have since learned this valuable lesson that indeed they are an integral part of the business and need to be treated as valued customers. I do continue to see investors and landlords treat tenants as an income source instead of a valued customer. Tenants needs to be nurtured so they feel like valued customers and are willing to return at time of lease renewal. Failing to clearly define rules and boundaries I have learned that the first week or two of being a landlord and having tenants is that boundaries automatically are set. The big question is, “Who is setting the boundaries?” My experience tells me that when you give them a chance, many tenants will immediately push the boundaries to see what they can get away with. So either you are setting precedents to the rules, or they are. I create a list of expectations that is given to them at move-in when you do the walk through inspection. This list should outline the parts from the lease on policy and procedures which includes what they do as a tenant and what you do as a landlord. www.rhaoregon.org
No. 3 – Landlords or property managers trying to become friends with their tenants. I do see a lot of landlords try to be friends with their tenants. You want to like and trust each other but you are in a business relationship and it should stay that way. Developing a close relationship makes it difficult to manage from a logical business person’s perspective. Emotional-based decisions have very little place in running an effective business. No. 4 – Failing to keep property maintained. I look at hundreds of properties each year, and I continue to see a large number in disrepair. When talking with sellers the common theme is they want to increase cash flow and do so by ignoring repairs or simply doing inexpensive “bandages” on a property. In reality it creates unhappy tenants who move frequently, which actually results in lower cash flow. The repairs themselves that get ignored devalue the property. My experience as an investor and landlord tells me that to maintain maximum cash flow you want to maintain a property in great condition. No. 5 – Missing opportunities on multiple-year leases. As landlords and investors, you all know that tenant turnover is the single largest expense we encounter. You do not have to continue to carry that burden. This is an expense you want to address and fix not just accept it. I have found great success in offering two- and three-year leases. It immediately goes to identify tenants who want to stay long-term. I have even used escalators to increase rental rates each year. Both ways your cash flow will be more consistent and your tenants who desire to stay will know what the future has in store for them as opposed to wondering what is going to happen on their move-in anniversary. You also want to treat these tenants well so they continue to renew leases. No. 6 – Being too quick to hire a property manager That was my No. 1 mistake. That’s it, doesn’t sound so bad does it. Well it had some serious ramifications. Being a “hands on” man in my earlier years of investing I managed my own properties. This is, for many, a mistake. Being a seasoned investor I will never manage my own properties again. No. 7 – Being a landlord instead of being an investor. This one may be subjective but it comes from my experiences working with hundreds of investors. I find a common denominator separates the most (continued on page 11) RENTAL ALLIANCE UPDATE March 2020
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Does Your Insurance Policy Include Mold Coverage? Reprinted with permission from Apartment Owners Association
Mold has the potential for being time-consuming discover. It causes health problems and puts property owners at risk of losing tenants. The property could be considered uninhabitable and tenants have the option to break their lease, or worse, sue. What Causes Mold? Moisture causes mold. Oftentimes, mold can stem from a leaky pipe, moisture seeping in from the outdoors through leaking windows or doors, and from poor ventilation. Contractor Magazine says that signs that mold might be present are standing water, water condensation, water staining, strange colors, growth on building materials, increased humidity, water damage, confined spaces, health issues and a musty smell. A musty smell is a good sign there is mold somewhere in the home. Call a mold tester if you smell a musty smell to find where the mold growth is hidden. How Do You Remediate Mold? Probuilder recommends this seven-step process to remediate mold. 1.Find the source of the moisture and fix it. 2.Isolate the problem; cover the doors and windows around the contaminated area so it cannot grow to become a bigger problem. Use polyethylene sheets with duct tape to seal the space. 3.Mist the contaminated area to remove dust from the air. 4.Remove contaminated materials. 5.Clean with a wire brush and appropriate detergent for mold. 6.Dry the area that has been cleaned. 7.Replace all materials that needed to be removed.
What Are Your Responsibilities as a Property Owner? Nolo.com says that mold is the cause of millions of dollars in lawsuits against landlords. However, currently, there are no federal laws regarding mold responsibility for landlords. Some states are making local laws regarding mold. But, even without laws, landlords are still often responsible for mold issues because of their requirement for providing a habitable home. The landlord is responsible for fixing issues that may cause the mold like leaks, plumbing issues, or flooding. A tenant can sue a landlord for failing to fix any of these issues resulting in mold growth. However, if the mold is caused by an action the tenant took, like not keeping the property clean, they are responsible. Landlords and tenants should work together to prevent mold. Property owners need to maintain their property and tenants need to inform landlords of issues immediately so they can be remediated. Does Homeowner’s Insurance Cover Mold? In most cases, mold is not covered by a standard homeowner’s insurance policy and a typical business owner’s policy for an apartment owner or property manager. The mold itself is usually not covered, but if an accident such as a burst pipe caused the mold, then remediation may be covered. There are mold riders that can be purchased and added on to your policy in some states. They can be expensive though. They could add $500 to $1,500 to your homeowner’s policy each year. The cost for a stand-alone mold policy for a landlord or apartment owner typically starts at $5,000 to $10,000 annually. In Conclusion The Centers for Disease Control says that mold can cause respiratory issues, chronic nasal stuffiness, coughing, eye irritation, and skin irritation. Address mold immediately upon finding it. It spreads quickly and gets worse over time. The best solution is for property owners to have open communication with their tenants and maintain their properties. Keep the property well maintained and encourage tenants to inform you of issues immediately so they can be resolved before mold growth happens. And, always understand what your insurance policy covers. If your property is in a high-risk environment for mold growth, look for a mold rider for your homeowner’s insurance. Keep in mind, most apartment and landlord policies exclude mold coverage and require you to obtain a separate mold insurance policy. GS Insurance Solutions, Inc. is a full-service insurance and risk management brokerage specializing in the apartment and property management industry. GS Insurance Solutions is the exclusive endorsed broker for the Apartment Owners Association of California. For more information on the full area of products and services we offer tailored to your specific needs, please call our team at (650) 282-3014 or email us at hello@gsisol.com Reprinted with permission of American Apartment Owners Association offers products and services for landlords related to your rental housing investment, including rental forms, tenant debt collection, tenant background checks, insurance and financing. Find out more at www.joinaaoa.org. 8
RENTAL ALLIANCE UPDATE March 2020
www.rhaoregon.org
FIND EVICTIONS STRESSFUL?
503-‐242-‐2312
Full FED Service First Appearances evict@landlord-‐solutions.com Small Claims
DATE January 9, 2020 January 16, 2020 January 21, 2020
CLASS NAME Relocation Fees & No Cause Terminations Landlording 102 Fair Housing & Applications
INSTRUCTOR Amber Clark with The Garcia Group Jeff Bennett with Warren Allen LLP Shyle Ruder with Fair Housing Council of Oregon
LOCATION RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX
Time 6:30 - 8:00 pm 11:30 -1:00 pm 6:30 - 8:00 pm
February 13, 2020 February 20, 2020 February 25, 2020
Fair Access in Renting (FAIR) PDX Ordinance Insurance Class Termination Notices
Charles Kovas with Charles Kovas Law John Sage with Stegmann Agency Farmers Insurance Sam Johnson with Landlord Solutions
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX
6:30 - 8:00 pm 11:30 -1:00 pm 6:30 - 8:00 pm
March 12, 2020 March 19, 2020 March 24, 2020
Tenant Screening Best Practices Tenant Screening Best Practices Legislative Update
Amber Clark with The Garcia Group Amber Clark with The Garcia Group Charles Kovas with Charles Kovas Law
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX
6:30 - 8:00 pm 11:30 -1:00 pm 6:30 - 8:00 pm
April 9, 2020 April 16, 2020 April April 21, 2020
Tenant Screening Best Practices Fair Housing, Disability & Asst. Animals Landlording 101 Real Estate Investing
Amber Clark with The Garcia Group Diane Hess with Fair Housing Council of Oregon Mark Passannante with Broer & Passannante Cliff Hockley with Bluestone & Hockley Real Estate Srvcs
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX TBD RHA CONFERENCE ANNEX
6:30 - 8:00 pm 11:30 -1:00 pm 9:00 - 5:00 pm 6:30 - 8:00 pm
May 14, 2020
Risk Management
Amber Clark with The Garcia Group
RHA CONFERENCE ANNEX
6:30 - 8:00 pm
June 11, 2020 June 18, 2020 June 23, 2020
Landlording 102 Tenant Relocation & No Cause Terminations Termination Notices
An Associate with Warren Allen LLP Amber Clark with The Garcia Group Sam Johnson with Landlord Solutions
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX
6:30 - 8:00 pm 11:30 -1:00 pm 6:30-8:00 pm
July 9, 2020 July 21, 2020
Tenant Screening Best Practices Section 8
Amber Clark with The Garcia Group Charles Kovas with Charles Kovas Law
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX
6:30 - 8:00 pm 6:30 - 8:00 pm
August 13, 2020 August 20, 2020
Relocation Fees & No Cause Terminations Plumbing Basics for Landlords
Charles Kovas with Charles Kovas Law Michelle Card with Apollo Drain
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX
6:30-8:00 pm 11:30 -1:00 pm
September 10, 2020 Managing Rentals In Portland September 17, 2020 Fair Access in Renting (FAIR) PDX Ordinance September 22, 2020 Mold Prevention & Remediation
Amber Clark with The Garcia Group Charles Kovas with Charles Kovas Law Mike Gardner with Real Estate Roofing & Mold Solutions
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX
6:30 - 8:00 pm 11:30 -1:00 pm 6:30 - 8:00 pm
October 15, 2020 October 22, 2020 October 10, 2020 October 27, 2020
Cliff Hockley with Bluestone & Hockley Real Estate Srvcs Amber Clark with The Garcia Group Ron Garcia with The Garcia Group Mark Passannante with Broer & Passannante
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX TBD RHA CONFERENCE ANNEX
6:30 - 8:00 pm 11:30 -1:00 pm 9:00-5:00 pm 6:30 - 8:00 pm
Shyle Ruder with Fair Housing Council of Oregon Amber Clark with The Garcia Group
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX
6:30 - 8:00 pm 11:30-1:00 pm
RHA CONFERENCE ANNEX RHA CONFERENCE ANNEX
6:30 - 8:00 pm 11:30-1:00 pm
2020
EDUCATION CALENDAR
Real Estate Investing Managing Rentals In Portland Landlording 101 Terminations
November 12, 2020 Fair Housing & Neighbor Harassment November 19, 2020 Relocation Fees & No Cause Terminations
December 10, 2020 Landlording 102 An Associate with Warren Allen LLP December 17, 2020 How to Hire a Property Manager Cliff Hockley with Bluestone & Hockley Real Estate Srvcs * All classes subject to change, view website for all current information. www.rhaoregon.org
RENTAL ALLIANCE UPDATE March 2020
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Why Consider Exchanging into a Delaware Statutory Trust? Roger W. Bowlin – Founding Partner at Real Estate Transition Solutions
We believe investment real estate presents an opportunity for individuals to grow their net worth through time, value-add work and smart management. We have worked with dozens of clients who have acquired and managed multiple investment properties while maintaining their day-jobs. Ultimately, these real estate holdings end up serving as our client’s “Personal Property Pension Plan,” seeking to provide them with the income they need in their retirement years. This is, in large part a key component of the “American Dream” – we work hard to put away enough resources to enjoy the last 25 years of life comfortably, with sufficient money and time to enjoy friends, family, travel and whatever else may be of interest.
When an investment property owner transitions from the 3rd to the 4th quarters of life, defined as 60-65 years and older, their investment objectives and risk tolerance change. During these years we regularly hear owners place greater emphasis on cash flow/income and preservation of value, while reducing the amount of time required to manage the property. As a result, some owners move toward third-party management of their properties. Unfortunately, third-party management can dilute cash flow and does not address the fact that a significant portion of the owners’ net worth may be held in a concentrated property type (e.g. rental homes/multi-family) in a single market (generally the Greater Puget Sound). At this point, performing a tax-deferred 1031 exchange into a diversified portfolio of Delaware Statutory Trust (DST) properties may become a very attractive option worth considering, if suitable. Delaware Statutory Trusts (DSTs) are portfolios of institutional quality property that owners can exchange their investment property into. They are structured by real estate firms with significant experience and strong operational resumes. Due to the fact that they have relatively low minimum investments of $100k and utilizing the 1031 exchange replacement property rules, owners can exchange the proceeds from a single property into multiple DSTs – creating a portfolio of diverse properties that is composed of different fund sponsors, property types and provides geographical diversification – thus serving to help reduce the risk inherent in concentrated assets. Delaware Statutory Trusts enable owners to reap all the potential benefits we know and enjoy from real estate, which may include: • Cash flow/income potential • Continued tax deferral through 1031 exchanges • Potential for appreciation • Sheltering income from taxes through depreciation • Hedging against inflation • Maintaining the opportunity for appreciation • Providing a full step-up in tax basis upon the death of an owner Furthermore, DSTs have the potential to be an effective estate planning tool as they require no active management and can be passed to beneficiaries through the processing of a single form. Ownership of beneficial interests in Delaware Statutory Trusts presents many of the same risks inherent in owning real estate as an asset class, including lack of liquidity, interest rate risk, financing risk, costs and fees, market conditions, etc. DSTs are regulated by the Securities and Exchange Commission (SEC) and are subject to extensive due diligence before being presented to accredited investors. Accreditation is necessary for investment eligibility and is defined as having a net worth in excess of $1 million, excluding your primary residence. Alternatively, accreditation can be reached through $200,000 of annual income individually or $300,000 jointly for the last three years. It is important to consider all risks when determining suitability of an investment. Delaware Statutory Trusts are a popular solution that, if suitable, can be used to address the changing nature of investment property owner’s objectives as they age. We work diligently to understand an investment property owner’s goals and objectives, then educate them on various solutions that position them to help realize their objectives. Priorities change as we age. As an owner, it is important to consider what your priorities are. Our firm is built on decades of experience with investment real estate and our team includes an on-staff CPA to help navigate the tax-code and present options that address the investment property owner’s financial and lifestyle goals. _______________________________________________________________________________________________ About Real Estate Transition Solutions Navigating the Exchange process successfully can be challenging and complex. For over 20 years, Real Estate Transition Solutions has helped investment property owners navigate and execute tax-deferred 1031 Exchanges, Delaware Statutory Trusts (DSTs), complex real estate investments, and tax planning (continued on page 11) 10
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strategies. Our team of dedicated 1031 Exchange consultants will help you select and acquire Exchange properties that seek to meet both your financial and lifestyle objectives. To learn more about Real Estate Transition Solutions, visit our website at www.re-transition.com. If you are considering selling your investment property and have any questions regarding 1031 Exchanges and Delaware Statutory Trusts, contact us to schedule a complimentary 1031 Consultation to discuss your investment property, objectives, and tax-deferral options. Our consultations can be done over the phone or in person at our offices located in Mercer Island, WA and in Portland, OR. To schedule your free consultation, simply call 206-686-2211 or click here. Roger W. Bowlin – Founding Partner of Real Estate Transition Solutions, provides exit strategy analysis, execution, income and equity replacement options for investment property owners. The information herein has been prepared for educational purposes only and does not constitute an offer to purchase or sell securitized real estate investments. DST 1031 properties are only available to accredited investors (typically have a $1 million net worth excluding primary residence or $200,000 income individually/$300,000 jointly of the last three years) and accredited entities only. If you are unsure if you are an accredited investor and/or an accredited entity, please verify with your CPA and Attorney. There are risks associated with investing in real estate and Delaware Statutory Trust (DST) properties including, but not limited to, loss of entire investment principal, declining market values, tenant vacancies and illiquidity. Because investors situations and objectives vary this information is not intended to indicate suitability for any particular investor. This material is not to be interpreted as tax or legal advice. Please speak with your own tax and legal advisors for advice/guidance regarding your particular situation. Real Estate Transition Solutions offers securities through Concorde Investment Services, LLC (CIS), member FINRA/SIPC. Advisory services through Concorde Asset Management, LLC (CAM), an SEC registered investment adviser. Real Estate Transition Solutions is independent of CIS and CAM. _______________________________________________________________________________________________
How To Avoid My Top 7 Landlord Mistakes CONTINUED FROM PAGE 7
successful investors from the ones who struggle to advance. The most successful investors spend their time investing instead of being landlords. As a licensed real estate broker, I am always asked if I will manage my client’s property. I always state that managing property is a fulltime position. To be effective at it, you need to devote fulltime attention to it. Perhaps one of the biggest mistakes is trying to be effective as a part-time landlord.
both foreign and domestic to realize their investment potential. He analyzes locations across the country for economic strength and the locations that yield the largest most sustainable return on investment. Within these locations he seeks out and gathers the best teams to deliver sound, high performing and most importantly sustainable turnkey investment. He works with investors to ride the wave of each area-specific market surge. Larry’s primary focus is offering (Non Listed) safe and sustainable turnkey investments to the passive investor.
“To achieve your dreams you must embrace adversity and make failure a regular part of your life. If you’re not failing, you’re probably not really moving forward.” This is my favorite quote from the book, “Failing Forward: Turning Mistakes into Stepping Stones for Success” by John Maxwell. I invite you to share some mistakes you have made or have seen others make. Together we can all do as the book states: we can “Fail Forward” and hopefully avoid my top 7 landlord mistakes. Summary of how to avoid my top 7 landlord mistakes, 1.Being too quick to fill a vacancy 2.Treating tenants as an income source instead of valued customers 3.Trying to become friends with tenants 4.Failing to keep property maintained 5.Missing opportunities on multiple-year leases 6.Being too quick to hire a property manager 7.Being a landlord instead of being an investor About the Author: Larry Arth is the founder and CEO of Equity Builders Group, a Florida based Real Estate investment Group. As a 36 year veteran to real estate investing, Larry understands that we are now in a global economy and as times have changed, investment strategies must change as well. Larry is an international recognized consultant and speaker and assists hundreds of investors per year, www.rhaoregon.org
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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.