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October 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 How to Retire from Managing Property................................ page 4 Think like a Tenant......... page 5 You get what you inspect................................... page 6 Dear Maintenance Men.......................................... page 8 Tips for Communicating................. page 11
SATURDAY, OCTOBER 19, 2019 9:00AM-5:00PM See back cover for more details
RHA
Calendar of Events RHA Oregon Dinner Meeting
Where: Contract Furnishings Mart Gresham When: TUESDAY October 15, 2019 Price: FREE MEMBERS ONLY EVENT Location: 3108 NE 181st Ave. Gresham, OR 97230 Time: 6:00 pm Menu: Oktoberfest FeastCatering Provided by: Altengartz German Bratwurst Bratwurst Veggie Brats Buns and all the fixings German Potato Salad 3 Bean Salad Green Bean Casserole Beverages: beer, wine, soda, water
R S V P e a r l y, l i m i te d s p a c e av a i l a b l e . Come join us for fun, food, drinks, and raffle prizes.
To register or for more information visit https://rhaoregon.org/event/october-2019-dinner/
CFM was founded by a builder as a solution to the many problems associated with dealing with typical floor covering retailers such as inconsistent pricing; inexperienced, commissioned sales staff; limited selection, and never knowing what crew would show up to install your job. CFM answered these problems by: • Providing a single price for all trade customers • Employing well-trained, long-term salaried sales professionals • Maintaining 14 large, clean, well-lit showrooms displaying the most current product selections in all categories • Assisting you to build a long-term relationship with the right installer for all of your floor covering needs. As lifetime residents of the Northwest, we understand the diverse needs of this unique region. We feature the largest selection of products priced with minimum mark up, so you can feel confident your costs will be kept low on every job. Roll and volume pricing benefits are always passed along to the customer. We go to great lengths to keep our showrooms up to date with the latest flooring styles.
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DATE
EVENT
LOCATION
TIME
10/9
Board Meeting
RHA Conference Annex
4:00pm
10/15
Dinner Meeting
CFM Gresham
6:00pm
10/24
Mentor Roundtable
RHA Conference Annex
6:00pm
11/9
Board Retreat
RHA Conference Annex
9:00am
11/16
Mentor Roundtable
RHA Conference Annex
11:00am
11/20
Dinner Meeting
TBA
6:00pm
INFORMATION
Members Only FREE Dinner Meeting
DATE
CLASSES
LOCATION
TIME
INSTRUCTORS
10/4
Screening Class
WebEx
11:00am
Marcia Gohman w/National Tenant Network
10/8
Screening Class
RHA Conference Annex
11:00am
Marcia Gohman w/National Tenant Network
10/10
Fire Prevention & Safety
RHA Conference Annex
6:30pm
Kim Kosmas w/ Portland Fire & Rescue
10/17
Water Intrusion Problems
RHA Conference Annex
11:30am
John Lombardi w/John’s Waterproofing
10/18
Screening Class
WebEx
7:00pm
Marcia Gohman w/National Tenant Network
10/19
Landlording 101 (see back cover for more information)
Holiday Inn- Wilsonville
9:00am
Mark Passannante w/Broer & Passannante
10/22
Mold Prevention & Remediation
Standard TV & Appliance
6:30pm
Mike Gardner w/ Real Estate Mold Solutions
11/5
Screening Class
RHA Conference Annex
11:00am
Marcia Gohman w/National Tenant Network
11/7
Landlording 102
RHA Conference Annex
6:30pm
Jeffrey Bennett w/ Warren Allen LLP
11/8
Screening Class
WebEX
11:00am
Marcia Gohman w/National Tenant
11/14
Property Tax Appeals
RHA Conference Annex
11:30am
Steve Anderson w/First Class Properties
11/19
Screening Class
WebEx
7:00pm
Marcia Gohman w/National Tenant Network
11/22
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 OCTOBER 2019
www.rhaoregon.org
President’s Message Dramatic Changes
When we lived in Tennessee, the arrival of fall was accompanied by a much more dramatic change in the landscape than we experience here in Oregon. The transition of the deciduous forests from a carpet of green to the warm orange, deep reds, and brilliant yellows is a sight that everyone should see. Of course, there’s no place like Oregon with its verdant evergreen forests. And we do have our share of changing colors among the street trees and landscapes in Portland’s diverse neighborhoods. But if you’ve never visited the Smoky Mountains in the fall, I encourage you to put it on your bucket list.
month per property learning and implementing the changes these new laws and ordinances have or will impose on your business. For example, you might increase your reserves to prepare for the day that you may need to pay relocation assistance. You need to build the new $60 per year per unit registration fee into your cost structure. As the US-China trade war continues, you probably should be increasing your reserves to cover the increased costs of appliances, floor covering, and other items. By the time the new security deposit ordinance is put into effect next March, you will need to have a depreciation schedule for every component of every property. As to the new screening ordinance, interim rules are supposed to be published this month; look to the RHA calendar for courses that will cover this material. However, I expect that many landlords will choose not to do their own screening any longer – the liability is simply too great. Of course, all of these will significantly increase the costs landlords incur. Again, if you are running your operation as a business, you will pass most of these costs on to your tenants. Like many landlords, I have not always been rigorous in implementing annual rent increases. But I am now. You should be, too.
This fall, I am reminded that the business of being a landlord in Oregon, and especially a landlord in Portland, is changing as dramatically as the colors of the fall foliage. Based on feedback from the staff at RHA Oregon’s offices, there are hundreds, and likely thousands, of landlords that are still unaware of all the new laws and ordinances that are affecting our business. More and more often, we advise these landlords that they should probably consult their attorney. Why? Because no, you cannot raise your rents this year more than 10.3%. You do have to pay relocation costs to your tenants if the property is in the city of Portland and you did not file for one of the very limited exemptions before you signed the lease. And no, you may not turn As surely as the trees change colors in the fall, our down an applicant because they intend to pay using a business is changing. Those who weather these changes “Section 8” voucher. will be in a good position in the long run. Others will decide it isn’t worth the hassle. We are already With even more rules and ordinances set to go into seeing an increase in sales of rental properties, and effect next March, the time has arrived to ask yourself conversion of older homes that had been used as plexes whether you want to continue to be a landlord. If you back into single-family owner-occupied homes. This are willing to run your rental property operation as is an unfortunate consequence of the heavy-handed a small business, you are in a great position to watch regulatory environment in which we now operate, your investment grow as demand for rental housing and it will almost certainly increase housing costs and increases. If you are going to stay in the business, you reduce the diversity of our neighborhoods. Next month should either delegate management of your properties I’ll share my thoughts about how to change this trend. to a competent, licensed, professional property manager or be prepared to spend the extra 5 – 10 hours per Ken Schriver, RHA Oregon President www.rhaoregon.org
RENTAL ALLIANCE UPDATE OCTOBER 2019
3
How to Retire from Managing Your Rental Property with a Delaware Statutory Trust by Roger W. Bowlin, Real Estate Transition SolutionS Real estate ownership presents a tremendous opportunity for indi viduals to grow their net worth through time, value-add work, and smart management. Every year, we work with dozens of owners who have acquired and managed multiple investment properties, often while maintaining their day-jobs. Eventually, real estate may end up serving as these owners “Personal Property Pension Plan,” providing them with financial security and income to live on during their retirement years. As investment property owners age, their objectives and risk tolerance change. During the retirement years we regularly hear owners emphasizing cash flow/income and preservation of value, while reducing, or even eliminating, the time required to manage the property. Some owners move to third-party management of their properties. Unfortunately, third-party management may dilute cashflow and this solution still does not address the fact that a significant portion of an owners’ net worth may be concentrated in a single property type such as rental homes or multi-family and in a single market, often the Portland area. When suitable, Delaware Statutory Trusts (DST) properties may be one solution designed to address “retiring” owners’ objectives. Delaware Statutory Trusts (DSTs) are portfolios of institutional quality property that owners can exchange their investment property into on an entirely tax-deferred basis. DSTs are structured by real estate firms with significant experience and strong operational resumes. Due to the fact that DSTs have relatively low minimum investments of $100k, owners can exchange the proceeds from a single property into multiple DSTs – creating a diverse portfolio of properties composed of multiple trust sponsors, property types, and property locations – thus serving to help reduce the risk inherent in concentrated assets.
of DSTs can be found within our free downloadable “Guide to Investing in DSTs” on our website: www. Re-transition.com Ownership of Delaware Statutory Trust property presents many of the same risks inherent in owning real estate as an asset class, including but not limited to lack of liquidity, interest rate risk, financing risk, structuring costs and fees, market conditions, etc. However, 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 (if married) for the last three years. It is important to consider all risks when determining suitability of an investment. Delaware Statutory Trusts are a popular option that may be used to address the changing nature of investment property owners’ objectives and market conditions. Our firm, Real Estate Transition Solutions, works diligently to understand investment property owners’ goals and objectives, followed by educating owners on various solutions that we believe best position them to help realize their objectives, and finally assisting in the implementation of the plan developed with the owner. Priorities change as we age. As an owner, it is important to consider what your priorities are and be realistic about what the future might hold. Our firm is built on decades of experience working with investment real estate and real estate owners. If you would like to have a conversation about your objectives and the properties owned, don’t hesitate to reach out and schedule a complimentary consultation - you can call us at 206-686-2211 or email info@re-transition.com. We also invite you to attend our FREE Fall 2019 Investment Property Owner Education Lunch: 1031 Exchange Basics in Portland. This complimentary, informative education lunch will provide you with an overview of 1031 Exchanges, why they are used and how they work, the benefits vs. risks, and what property types qualify. If you are interested in attending our FREE 1031 Exchange education lunch and would like for more information, please email Nancy Duckett at nduckett@re-transition. com.
Delaware Statutory Trusts enable owners to reap all the potential benefits real estate owners know and enjoy, which may include: • Regular cash flow/income potential • Continued tax-deferral through 1031 exchanges • Potential for appreciation • Sheltering income from taxes through depreciation • Assisting to hedge against inflation • Receiving a full “step-up in tax basis” upon the death of an owner Roger W. Bowlin – Founding Partner of Real Estate Transition Solutions, provides exit strategy analysis, execution, income and Furthermore, DSTs have the potential to be an effective estate equity replacement options for investment property owners. If you planning tool as they require no active management and can be have questions relating to your investment property ownership, passed along to beneficiaries through completion of a simple please email info@re-transition.com or call (206) 686-2211. and straight forward form. Further detail on the characteristics 4
RENTAL ALLIANCE UPDATE OCTOBER 2019
www.rhaoregon.org
Qualifying Repair/Renovation Landlord Exemption Under SB 608: Think Like a Tenant? By Brad Kraus, reprinted from the Rental Housing Journal
Senate Bill 608 is in full force and effect. Many Landlords are wrestling with SB 608’s language and meaning, along with its effect on Landlords’ rights, if any they still have. Many Landlords’ biggest fear over SB 608 was its purported elimination of Landlords’ rights to serve NO Cause Notices of Termination. While SB 608 has significantly undermined Landlords’ rights to serve No Cause Notices, certain exemptions remain which still allow for No Cause Notices. One such exemption – the Repair/Renovation Exemption- functions by placing Landlords in the intriguingly awkward position of arguing that their premises are uninhabitable. In other words, it causes Landlords to think like a Tenant, when assessing the magnitude of their habitability problems during the repairs and renovations. If you’re thinking, “I’ve had tenants raise habitability allegations in an effort to avoid paying rent.” You’re already familiar with habitability disputes. Oregon’s “habitability statue” lists several items that, if substantially lacking, render the premises uninhabitable. For example, if there’s no water supply, no functional roof, no heating, or no electricity (see the theme here?), the premises likely are unsafe or unfit for occupancy. Think of habitability strategies from Tenants perspective: if the rented premises substantially lacks water, heat, electricity, etc., a Tenant could successfully (a) contend that the premises isn’t habitable, and (b) avoid owing you rent for the timeframe during which the premise was uninhabitable. Many Landlords encounter habitability defenses in their evocation actions. However, Senate Bill 608’s repair/renovation exemption flips the habitability script, by requiring Landlords –not Tenants – to make the Tenant-like argument that the premises are ( or will be) uninhabitable. Fortunately, seasoned Landlords can use their habitability knowledge in order to salvage No Cause Notice termination strategies under SB 608. SB 608’s Repair/Renovation Qualifying Landlord Exemption requires that the Landlord “intends to undertake repairs or renovations to the dwelling unit within a reasonable time and: (a) The premises is unsafe or unfit for occupancy; or (b) The dwelling unit will be unsafe or unfit for occupancy during the repairs or renovations.” The statute’s operative words, “unsafe’ and “unfit” are not defined. Alas, your habitability knowledge can supplant those definitional gaps by knowing what it takes to meet the statutory threshold: The more your repairs/renovations make the place uninhabitable, the more likely you are to defeat a Tenant’s argument that you didn’t qualify for the Repair/Renovation Qualifying Landlord Exemption. In other words, the worse off your property is (or will be), the better off your Exemption argument will be. Remember that SB 608 is state law and does not universally preempt local jurisdiction laws. For example, Portland has its own rules, requirements, and exemptions that often differ from those crafted by the state legislature. Accordingly, regardless of your right to serve No Cause Notices under SB 608’a Repair/Renovation Landlord Exemption, make sure you comply with local laws. The penalties for failing to serve valid notices that fall neatly within the Repair/Renovation Landlord Exemption can be costly, so understand your rights, know when to think like a tenant, and contact a skilled Landlord/Tenant attorney, should you have any questions.
FIND EVICTIONS STRESSFUL?
503-‐242-‐2312
Full FED Service First Appearances evict@landlord-‐solutions.com Small Claims
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RENTAL ALLIANCE UPDATE OCTOBER 2019
5
You get what you inspect… property owners should not ignore their properties. From Bluestone and Hockley
September 10, 2019
Joe and his sister, Madison, flew in from Alaska to inspect their investment properties. They were meeting with their property manager to review their investment portfolio. They inherited a portfolio of investment property from their parents and had been happily receiving monthly checks for the past five years. Lately, the monthly checks had been getting smaller and Madison suggested to her brother, “Maybe we need to go down and check on our investments.” The portfolio was a mix of industrial and apartment properties spread throughout the Portland, Oregon metro area. Their parents had started out small and over 40 years had amassed a large $35 million collection of both large and small properties. They still owned the first house their parents bought as a rental and the last investment, a 100,000 square foot industrial park. Touchdown The plane touched down hard on the asphalt. The pilot must have served in the navy before becoming a commercial airline pilot, as it seemed like he was trying to land on the deck of an aircraft carrier. Madison mumbled, “I am glad we survived that.” Joe grunted, “Me too”. They got off the plane, collected their luggage, found the rental car and drove directly to the property manager’s office. At the office, Victoria, the Vice President of Operations, greeted them. First order of business was to review the trailing 12-month financial statements and compare the actual financials to the budgets that had been drafted the previous year. As they poured through the documents, Joe said, “It would be easier to understand the numbers if we had the actual bills to review and could see vendor comments, rather than just reviewing the reports”. Victoria obliged and got the files of actual bills for Joe and Madison to review. One hour and a lunch later, Madison threw in the towel. “Please Joe, can we look at the properties now?!?” Joe looked at Victoria and agreed, it was time to go on the road. Road trip They hopped into the rental car and stopped at the original investment house. The tenants were taking good care of this property and nothing was obviously amiss. The roof had been replaced the previous year and it was a quality job, with the exception that the gutters had not been reinstalled. Victoria said she would investigate it. Next, they drove to a close-by 10 plex. This building had a flat roof. Joe asked Victoria to call one of her roving maintenance technicians so he could inspect the roof. While waiting, they toured all the units. Much to Victoria’s chagrin, some units had deficiencies. In one of the apartments, the carpeting was totally destroyed, in another unit the shower was dripping, and a handle was missing on the tub. The tenant had jerry-rigged a set of pliers so they could take a shower. 6
RENTAL ALLIANCE UPDATE OCTOBER 2019
The next unit had cockroaches jumping at them from behind the water heater. Not all the units had problems and after they were done with the 10 plex, Joe and Madison took Victoria aside and asked her when the last time was one of her staff had inspected the property. She looked at her notes, “Two years ago”. “No wonder we have problems renting units,” Joe commented. Then he and Madison asked Victoria to make the necessary repairs. “Let’s go look at the commercial properties,” Madison suggested. The first stop was a six-tenant retail center. The landscaping was overgrown, the parking lot needed seal coating and striping, not to say anything about the two large potholes and the sidewalk that needed to be “hot water” power washed to get rid of all of the chewing gum stuck to the surface. Joe said to Victoria, “I am not impressed.” They drove to the 100,000 square foot industrial building. It needed a paint job and when Joe got on the roof it was obvious that it had not been cleaned or the HVAC units serviced in three years. They met the tenant at the property. He complained that the offices were very hot and if the cooling could not be fixed, they were going to move out. “No wonder our checks are shrinking,” Joe said to Madison and Victoria as they got back into the car. “Nothing is repaired at the properties”. Victoria piped up, “We are operating according to the budget that you approved”. “Clearly, we should have visited sooner,” quipped Madison back at Victoria. Resolution Upon returning to the management office, Joe and Madison asked for use of a conference room to plan their next move. A half an hour later, Victoria joined them. They had made a few decisions. First, if they had visited sooner, things would not have deteriorated to this point. Next, they told Victoria that they wanted to see repair bids within the next 30 days, to repair all the problems discovered during their inspection. They planned on being back in three months to make sure progress had been made at all of the properties. They also changed their guidelines to the property manager prioritizing that the properties would be well maintained before they received their client draws. Finally, communication was improved to meet monthly via video conference, so they could make quick and accurate judgments between property visits. Joe and Madison made it clear to Victoria that things needed to improve and that they would be taking a more active role in the day-to-day management of the properties. Victoria was relieved because it had been difficult to operate the properties according to the approved budgets without input from the owners. On the ride back to the airport, both Joe and Madison knew they had blown it big time – visiting more often and nurturing their properties had to be a priority. It was important to be able to pass this gift on to their children. They agreed, if they wanted to increase their cash flow, taking better care of their inheritance was the best place to start. www.rhaoregon.org
Considering Selling Your Investment Property? Considering a
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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.
(continued on page 10) www.rhaoregon.org
RENTAL ALLIANCE UPDATE OCTOBER 2019
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Dear Maintenance Men by Jerry L’Ecuyer & Frank Alvarez
Dear Maintenance Men: I need to do some caulking in my apartment unit, both inside and outside the unit. However, I am confused. There are so many kinds of caulk and I just don’t know which to buy to do the jobs I need done. Can you help explain the different types of caulk and where to use them? Frank Dear Frank: Let us try to break down the most common of caulk types and when and where to use them. 1: Acrylic Latex caulk (painter’s caulk): Inexpensive, easy to use, water cleanup. Not for use in damp locations such as bathroom or kitchen or outdoors. Designed to be painted over. 2: Vinyl Latex caulk: Easy to use, water cleanup and can be used outside. Not very flexible; use in expansion joints is not recommended. 3: Acrylic Tile Sealant: Easy to use, water cleanup. The sealant is perfect for bathroom and kitchens and other wet locations. It is mold and mildew resistant. Paintable. 4: Siliconized Acrylic Sealant: Easy to use, soap and water or solvent cleanup. Perfect for porcelain tile, metal and glass. Similar to Acrylic Tile Sealant, but tougher and longer lasting. 5: Pure Silicon: Best for non-porous surfaces. Long lasting, indoor/outdoor caulk. Super flexible and strong. Harder to use than any of the above caulks. Solvent cleanup. Mold and mildew resistant. Could smell until cured. 6: Butyl Rubber: Best use is outdoors. 8
RENTAL ALLIANCE UPDATE OCTOBER 2019
Messy to use. Perfect for sealing roofs, valleys, gutters, flashing and foundations. Moisture and movement tolerant. Sticks to anything. Cleanup with solvents. 7: Elastomeric Latex Caulk: Water cleanup. Longest lasting caulk. Great adhesion to almost all surfaces and can stretch close to 200%. Elastomeric caulk is very tolerant to wide temperature and weather extremes. It is most often used outdoors. This caulk can bridge gaps up to 2 inches wide and deep. The caulk dries very quickly; tool the caulk immediately after application. Dear Maintenance Men: I want to create a seating and relaxing area in the middle of my building’s courtyard. My thoughts are to use decomposed granite and eliminate the current grass area. How do I go about installing the surface without making a mess or a future headache for myself? Bryan Dear Bryan: Decomposed granite or DG for short is a great way to add a durable, natural and water wise surface. A few things you need to know before you get started. The key word in DG is “Decomposed”. In other words, this granite is decomposing. There are three options: raw DG for flower beds, stabilized DG for walkways and resincoated DG for driveways. For your purpose you need to use a stabilized DG for walkways. It has a binder mixed into the DG. Non-stabilized DG is much cheaper, but will of course decompose, create dust when dry and slush when wet. To properly install DG, dig down three inches overall and use a wood, rock or brick border to keep the edges of the DG from
crumbling. As an option, lay down a weed barrier cloth under the DG. Apply DG in one and a half inch layers, water down (don’t flood) and tamp or use a heavy roller to compress the DG. Wait eight hours between layers to let the DG settle. Repeat the above for each subsequent layer. When installed properly, the DG surface will be rock hard, stable, dust free and will allow water to drain. Dear Apartment Owners and Managers: We are getting close to the holidays, which means more people at your apartment buildings. Chances are, some of those residents will be inviting guests for dinner over the coming holidays. For some of these residents, this will be the first time this year they will turn on the oven! What are the odds you are just starting your own dinner or you are sitting down with your own guests when an emergency call comes to you on Thanksgiving Day from one of your residents. That call might be about a clogged sink or non-working oven with an apartment full of guests waiting for dinner. This scenario can ruin both you and your residents’ holiday. The answer is: Preventive Maintenance. Remember, the holiday season starts with Halloween and the demand on your properties only gets worse from there. Check each stove and oven for proper operation, many residents only turn on their ovens at this time of year, and the problem may be as simple as a pilot light being out. Also, check the oven’s temperature calibration with an oven thermometer. This time of year sees a higher than normal use of the plumbing, it may be a good idea to snake out or hydro jet your main plumbing lines. Also, sending a note to each tenant on the proper use of the garbage disposal will be useful. Note
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Maintenance Men Cont. CONTINUED FROM PAGE 8
what they should and should not put down the disposal unit. A few items to include on this “No No” list are: banana peels, potato skins, coffee grounds and any stringy food. Also make sure they turn on the water before using the disposer and put down small amounts of food at a time. Instruct your residents to not use the disposer as a trash can and then turn it on when full. It will clog. Christmas and other holidays also mean more people than usual walking on your property. Is your property safe? What are some of the liabilities to worry about? Check trip and fall hazards. Do you have sprinkler heads sticking up above the grass near sidewalks? Use pop-up heads to solve this problem. Look for sidewalks that have been pushed up by tree roots. This can be solved with a concrete grinder or replacement of the section and removal of the tree root. Cut any low hanging tree branches and look for branches that may break in heavy winter wind or rain. Check your decking for cracks or damage and inspect the exterior stairways for wear and tear. Inspect all your garage door springs, winter wind and rain may make them heavy causing the door to close or fall unexpectedly. As a precaution, always replace both garage springs at the same time and throw away any used springs. Never install used garage springs. Check all property lighting and timers. Remember: Preventive Maintenance is cheaper than Emergency Maintenance! 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 a Director Emeritus and Past President of the ApartmentAssociation of Orange County .and past Chairman 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. Dinner Meeting Cont. CONTINUED FROM PAGE 2
With our ever-changing industry, CFM is constantly bringing in new, fashion-forward products to meet your design needs. Our showrooms display the various types of flooring—carpet, hardwood, stone, vinyl, laminate, ceramic and more, all under one roof. To ensure our customers get exactly what they need, every CFM location is staffed with experienced, friendly professionals to help walk you through the selection process. CFM is a “no pressure” sales enviroment. Our goal is to assist you in finding the right product for your application. We don’t just work in the communities we serve, we live there as well. CFM takes an active part in helping to make our towns the best place in America to live and raise a family. CFM and our employees donate time, money, and resources to numerous local charities and events. www.rhaoregon.org
RENTAL ALLIANCE UPDATE OCTOBER 2019
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NOMINATIONS OCTOBER 15, 2019 VOTE NOVEMBER 20, 2019
Election of 2020
Directors and Officers President President Elect Vice President Treasurer Secretary
Ken Schriver John Sage Phil Owen Sandra Landis Lynne Whitney
Nominations for Directors ~Two Year Term Tamara Collins Charles Kovas
Directors Continuing to Serve~ One Year Term Remaining Jerad Goughnour Jim Herman Katie O’Neal Alan Carpenter Doug Moe Jake Ramirez Violet Anderson
October dinner meeting. If you are interested in serving on the board as a director, please call John Sage at (503)667-7971 or Cari at the RHA Oregon office at (503)254-4723. The board meetings are held on the 2nd Wednesday of each month. Interested in serving on the Board? This year, we have four open seats on the board and we would like to invite interested members to participate in the organization. The board meetings are on the 2nd Wednesday of each month at the RHA Conference Annex located at 10530 NE Weidler, Portland, Oregon 97220. The board meeting starts at 4:00pm and typically last about one and a half hours. Joining the board is a great way to interact with other members and strengthen those relationships. It is a valuable way to serve your industry and have a voice on important issues that affect every one of us as rental housing providers. As a board, we are restricted to only four Affiliate members on the board at a time, so we really encourage our landlords and property managers to step up and volunteer! If you are interested in attending a board meeting or becoming part of a great board of directors, please call Office Manager Cari Pierce at (503)254-4723.
Nominations to take place
October 15, 2019 (at Dinner Meeting)
Voting will take place
November 20, 2019 (at Dinner Meeting) Call the office for reservations (503)254-4723.
Directors are elected for either a oneyear or a two-year term. Nominations for an officer or director position can be made by the nominations committee or verbally at the 10
RENTAL ALLIANCE UPDATE OCTOBER 2019
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Tips for Communicating with Challenging Tenants By Holly Welles
As a landlord, you may occasionally encounter tenants who bring a range of issues with them, like missing rent payments or keeping pets when the terms of their lease don’t allow it. You don’thave to dread dealing with problematic renters, though — especially if you put precautions in place to stop bad behavior before it starts. When communicating with challenging tenants, you should practice patience, professionalism and understanding.It may be tempting to ignore a situation,but this only exacerbates tension and makes the renter likely to move. And although having them move out may sound pleasant, you lose money in the process. Make effective communication your first line of defense before resorting to drastic strategies. If you need guidance on preventing escalation with difficult tenants, check out the five tips below. 1. LAY DOWN CLEAR GROUND RULES You know how difficult it can be to deal with unclear guidelines. How can anyone follow rules that aren’t spelled out? Save your tenants the stress and confusion of accidentally breaking the rules by clearly outlining your property standards. There’ll be fewer chances for them to say they broke your policies because they misunderstood them. And if they still don’t follow guidelines, you can point out in the contract where they went wrong. You’ll need to be consistent with rule enforcement and introduce penalties for each breach of contract. If your tenants realize they can get one over on you, they’ll do so. Show there are consequences to inappropriate actions — introduce late fees into your lease contracts. Don’t set an unreasonable amount, but make sure it’s enough to encourage them to pay on time. 2. USE DIGITAL AVENUES Tenants should have multiple ways to contact you — such as emailing, calling or text messaging. Some properties have Facebook pages or Google accounts where they can answer questions and respond to reviews. If you implement different platforms for communicating with tenants, give your hourly availabilities www.rhaoregon.org
for each, so they know which to use when. For example, you don’t want someone calling your phone late at night unless it’s an emergency. Similarly, you want to avoid tenants inundating you with concerns during your breaks. Create a suggestions/ complaints form on your website and check it regularly so you can answer any issues. When figuring out new ways to reach your renters, consider the makeup of your audience. For example, 65 percent of millennials and members of generation Z prefer digital communication over faceto-face interaction. Many of your renters may be in this age range — meet them in the middle and communicate in ways that seem natural to them. 3. BE PATIENT WITH TENANTS Some of your tenants may be the more actively disruptive type, while others create monetary issues like forgetting to send a check or approve an e-payment for rent. Both situations can be frustrating, but you should handle them professionally. Never approach people right off the bat with hostility or tension. People respond better to civility — few will heed the words of someone who insults them or shows an explosive temper. Explain what they’ve done wrong and when you need them to fix it. After you’ve given multiple warnings with no success, it may be time to hand out an eviction notice. Eviction is a lengthy legal process, so be sure this is the route you want to take before starting. Don’t hold it over your tenants’ heads as a threat, and don’t initiate it for minor issues. 4. SET DEADLINES Set definitive deadlines and don’t waver on them. If the rent needs to be in by a specific date each month, make this clear in the contract. Whether you set a grace period is up to you, but once the rent is late, it’s time to take action. Don’t wait to address the problem, because the tenant may assume you’ve forgotten or haven’t noticed. This inaction will make them more likely to do it again because they know there are no consequences for it. Set deadlines for yourself as well. Act quickly on concerns, questions and requests — this shows you care about your renters and want to help solve their problems. People won’t seek the assistance of someone they know doesn’t deliver. You want your tenants
to know you aren’t that person. Even if their issue seems minor to you, it’s significant to them. 5. FOSTER RESPECTFUL RELATIONSHIPS Whether you like them or not, you and your tenants must have a level of mutual respect for your professional relationship to succeed. They should know what you expect while they occupy your property, and what will happen if they disrespect it. Likewise, it’s up to landlords to treat their tenants with decency. Unless they’re engaging in illegal activities or disturbing the premises, avoid prying into their personal lives or dropping by their place without notice. This behavior will make them feel like they’re under surveillance and may even risk legal action. No one likes the feeling of being spied on, and if they think they have no privacy on your property, they may decide to take their money elsewhere. Communicating with challenging tenants. Create a property where tenants are glad to rent by setting reasonable policies and allowing open commuication. Remember to handle situations as they come and take the appropriate actions when necessary. Communicating with challenging tenants takes patience, but you will do well if you run your property with strict, but kind, policies. Holly Welles writes about real estate market trends from a millennial perspective. She is the editor behind The Estate Update, a residential real estate blog, and keeps up with the industry over on Twitter @HollyAWelles
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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
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RENTAL ALLIANCE UPDATE OCTOBER 2019
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