Apartment News - June/July 2017

AMA celebrates 25th Annual Tribute Awards Robert Hicks returns to AMA Executive Committee

Q&A with Lorna Walker, Republic Media

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818 N. 1st St., Phoenix, AZ 85004 Phone: 602-296-6200 Fax: 602-296-6178

EXECUTIVE COMMITTEE Amy Smith Montoya, Chair, Bella Investment Group Robert Hicks, Vice Chair, Alliance Residential Company Nicole Wray, Treasurer, Greystar Real Estate Partners Wendy Weiske, Secretary, Dunlap & Magee Property Management Chris Evans, Imm. Past Chair, HSL Asset Management Mike Rochon, AMC Exec., Distinctive Carpets, Inc.

BOARD OF DIRECTORS Jen Ambrosius, Rentpath Tyler Anderson, CBRE Elizabeth Beaulieu, Quarterpenny Management Krisanne Beckstead, Picerne Real Estate Group Chapin Bell, P.B. Bell Companies Lesley Brice, MC Residential Reid Butler, Butler Housing Company Nichole Carboun, Weidner John Carlson, Mark-Taylor Residential Bry Carter, Apartments.com Powered by Costar Scott Clark, Law Offices of Scott M. Clark, P.C. Keri Conyers, Alliance Residential Scott Cook, Shelton-Cook Real Estate Services, Inc. Kimberly Fitch, Nicolosi & Fitch, Inc. Tim Furnas, Valley Wide Security Shelly Griggs, Baron Adam Greco, Burns Pest Elimination - AMC

Tom Simplot President & CEO tsimplot@azmultihousing.org Erika Kowalski Director of Operations ekowalski@azmultihousing.org Phone: 602-296-6210 Michelle Rill Director of Membership, Events & Education mrill@azmultihousing.org Phone: 602-296-6205 Lauren Romero Tucson Area Association Executive lromero@azmultihousing.org Phone: 520-323-0643 Fax: 520-447-7747 Todd Bradford Membership Benefit Services Manager tbradford@azmultihousing.org Phone: 602-377-2553 Stephanie Garcia Events and Education Assistant sgarcia@azmultihousing.org Phone: 602-296-6202 Sharon Hosfeld Manager of Community Outreach & Smoke-Free Community Coordinator shosfeld@azmultihousing.org Phone: 602-296-6214

www.azmultihousing.org

Scott Hines, PEM Real Estate Group Denise Holliday, Hull, Holliday & Holliday Charles Huellmantel, Mesa Housing Associates David Kotin, Kay-Kay Realty Lesa LaRocca, Avenue 5 Residential Pam McCarthy, Fairfield Residential Omar Mireles, HSL Asset Management April Morris, Cox Communications Melanie Morrison, MEB Management Services Gloria Munoz, Maricopa County Housing Kim Pacheco, Scotia Group Management Kevin Ransil, JLB Partners/JLB Residential Erica Reinke, Camden Property Trust Rich Renta, Weidner German Reyes, Tiempo, Inc. John Rials, Greystar Real Estate Partners Lisa Rosenfeld, HSL Asset Management Mark Schilling, MEB Management Services Andrina Shields, Greystar Real Estate Partners Christine Shipley, Dunlap & Magee Michelle Sinclair, MC Residential Dallin Tippetts, Rainforest Plumbing & Air Bob Venberg, PEM Real Estate Group Luis Verger, Shelton-Cook Real Estate Services Debbie Willis, P.B. Bell Companies

Deanna Jordan Manager of Membership and Business Development djordan@azmultihousing.org Phone: 602-296-6212 Amanda Perkumas Assistant to Tucson Area Association Executive aperkumas@azmultihousing.org Phone: 520-323-0643 Heather Sanabria Member Services Adminstrator hsanabria@azmultihousing.org Phone: 602-296-6209 Kyle Simplot Accounting & Operations Administrator kyles@azmultihousing.org Phone: 602-296-6207 Valarie Waldvogel Events and Education Coordinator vwaldvogel@azmultihousing.org Phone: 602-296-6203 Cassidy Campana Apartment News Editor & Communications Consultant cassidy@arizonastrategies.com Phone: 602-770-6014

Answering the call for leadership The timing for taking on a leadership role may not always come when we hope or expect. Many of us work from strategic plans, some through succession planning, others simply hoping to get noticed by those that can promote them. And then, sometimes life and business just happen and we must adapt. These times can, and I dare say should, be looked at as opportunities to challenge our own ideas of what we thought possible!

There are so many ways to serve within the AMA that can help you develop a strong network within our leadership. We have been challenged to draw on that bench of current and past leaders for additional support. It’s been an important reminder of the critical importance of cultivating talent and training them for the future.

Our growing Flagstaff membership offers another opportunity to take on a leadership role. The AMA Flagstaff Mixer drew an enthusiastic group. We had several leaders volunteer to launch a Flagstaff Coalition Committee. Our members there also expressed interest in more networking and education programming for Northern Arizona. I hope you will read through the Flagstaff Mixer recap for more information on those efforts as well.

AMA Tribute finalists demonstrate their leadership within their organizations every day. Based on their talents and style, they have earned this recognition and this month we celebrate each finalist for their contributions!

Congratulations to all the Tributes finalists!

— Amy Smith Montoya, AMA Board Chair, Bella Investments

Celebrating AMA’s continued growth Thanks to growth and construction and our members' recruiting efforts, the AMA now has more than 2,000 members and more than 242,000 units in membership! This maintains our position as the fifth largest trade association in the state and one of the 10 largest affiliates of the NAA. One of our major initiatives for the AMA has been to build a more robust presence in northern Arizona, and we continue to offer more in Tucson for our very active membership. The Flagstaff networking mixer brought together management companies and associate members and there was a buzz of momentum in the room.

In Tucson, the popular golf tournament brought out a huge crowd of members. We’ve added a team member in Tucson to support Lauren’s work there. Amanda Perkumas brings a wealth of administrative and business talents to the team.

Once a year, we all gather together for the Annual Tribute Awards Dinner to celebrate those professionals, volunteers and developments that make the multifamily communities shine. I’m excited to see 1,400 faces in this crowd as we celebrate the very best of our industry!

— Tom Simplot, President and CEO, Arizona Multihousing Association

June/July 2017 | Apartment News

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June/July 2017 www.azmultihousing.org

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MEB’S BAM PROGRAM:

‘Watering the Desert’ HICKS RETURNS TO AMA EXECUTIVE COMMITTEE The AMA is proud to welcome Robert Hicks, executive vice president at Alliance Residential Company, back to the AMA Executive Committee.

He will serve as the interim vice chair for the board, replacing Dale Phillips who resigned in April.

In related news, John Carlson of Mark-Taylor nominated Linda Coburn, asset manager, for the Board of Directors vacancy. Over the past 10 years, Coburn has been a strong AMA advocate and a member of numerous committee. The AMA is honored to welcome her to the Board. Amy Smith and Chris Evans will continue to serve in their leadership roles to allow other new members of the executive committee to train for their new leadership positions on the AMA Board. Nicole Wray of Greystar will ascend to the vice chair role next year. The AMA thanks Dale Phillips for his many years of dedicated service to the Board.

NICOLOSI & FITCH HONORED

BY TUCSON’S SAAF The Southern Arizona AIDS Foundation (SAAF) recently recognized its generous volunteers at 2017 Annual Volunteer Appreciation Event in Tucson. Nicolosi & Fitch, Inc. was honored as the Outstanding Care Services Collaborator for their work coordinating housing to help to ensure that people living with HIV/AIDS have access care and services to maintain their health.

WELCOME AMANDA PERKUMAS TO TUCSON AMA The Tucson AMA office is growing again to meet the needs of the active Tucson membership.

Amanda Perkumas has been hired as the Assistant to the Tucson Area Association Executive, Lauren Romero.

Amanda brings considerable skills and background in bookkeeping, banking and administration to the Association.

Most recently, she worked as a payroll supervisor. A longtime Tucson resident, she earned her bachelor’s degree in business management from University of Arizona. Married and a mother of two, Amanda stays busy with her family, and enjoys crocheting in her free time. Welcome to the AMA, Amanda!

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Apartment News | June/July 2017

MEB will be celebrating their 20th anniversary next year. In 2014,​MEB wanted to expand their community service efforts to a broader audience while focusing on one particular aspect of need — homelessness. It was at this time MEB adopted the BAM [Big Audacious Miracle] for everyone to have ​a home.

This year, MEB is kicking off their 2017 BAM efforts with a huge water drive. The goal is to donate at least 40,000 water bottles to local non-profits by May 31st through their “Watering the Desert” campaign. MEB currently manages approximately 20,000 units and this

equates to 2 bottles per apartment being to be donated.

It is not only MEB team members working towards this goal, they have engaged their vendor partners and clients as well. During their grand opening at Stone Ridge apartments in Bullhead City, Ariz.,​ they included making Bags of Hope (bag filled with nonperishable food and a water bottle)​​ as a part of the grand opening. Since the beginning, MEB’s business practice has always included being a good neighbor and giving back to the community.

AMA to offer mental health first aid training The AMA will be partnering with USA Mental Health First Aid to provide training to local community managers on how to help residents or visitors who are experiencing a mental health crisis. This national training provides the skills and background on how to address someone in a difficult situation get the help they need. Fortunately, there’s finally a more serious and caring conversation around mental health. Millions suffer with various mental health issues. Community managers and security staff may encounter someone having a drug overdose or experiencing suicidal thoughts. The training will teach professionals how to apply an action plan that assesses risk and helps find the appropriate medical or safety professional to help them.

In more urban areas, some communities see transient individuals coming into their communities and many of them need to be connected to the right mental health resources. This training will also assist managers in understanding the needs of these individuals and helping them get support, while protecting their residents. Look for this training in the Fall from the AMA.

HSL's Nelson Heads to Maintenance Mania Finals

Jesse Nelson of HSL will be competing as a finalist in the national Maintenance Mania competition at the NAA conference in Atlanta on Friday June 23rd. This is Jesse’s second trip to the finals, and HSL’s third time to be represented. Jesse has put in a lot of hard work to get there, and HSL and the AMA are proud to support him. HSL has been a steadfast supporter of the competition, going so far as to set up a practice room for AMA members to hone their skills for the competition. Congratulations Jesse and thank you HSL!

www.azmultihousing.org

thank you, dale

Thank you, Dale Phillips, for 22 years of service to Mark-Taylor. Your belief in us and focus on our culture has contributed to our brand leadership and company success.

We salute you as a champion of our industry and wish you best of luck in your new venture.

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Legislature adjourns FY2018 budget set, AMA priority bills signed into law

BY COURTNEY LEVINUS & JAKE HINMAN

Courtney LeVinus is a principal with Capitol Consulting and Jake Hinman leads legislative affairs for the firm.

They can be reached at 602-712-1121.

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fter 122 days, the Arizona legislature adjourned sine die on May 10, 2017. A total of 1,079 bills were introduced this year and roughly a third of those bills were approved by the legislature. While 300 new laws passed in 100-plus days would seem a bit counterintuitive in a GOP-controlled legislature, many of the new laws were aimed at rolling back regulation and/or clarifying existing law.

The relatively quiet Session — at least compared to the last few years — finally ended after the lawmakers and the Governor reached an agreement on the $9.82 billion state budget.

The $9.82 billion spending plan for FY2018 marks another consecutive year of fiscal growth and structural balance for the state. Unlike the federal government, Arizona’s Constitution all but requires the state budget to be balanced. According to the Arizona’s Joint Legislative

Apartment News | June/July 2017

Budget Council, “The Arizona Constitution does not contain a specific requirement that the Legislature adopt a balanced budget each year,” but that “the Constitution makes it difficult or impossible to finance a longterm deficit.”

The Budget includes a $171 million carryover from FY2017 and projects $9.68 billion in revenue. The $9.68 billion revenue projection marks the first time that the state has regained pre-recession revenue levels. In FY2007, the state collected $9.62 billion in revenue until plummeting to $6.29 billion in FY2010.

Much of the new spending for FY2018 will be used for the state’s education system.

In January, Governor Doug Ducey announced an ambitious 15-point plan to improve the state’s education standing by increasing funding in many key areas. The legislature passed the Budget with many of the governor’s priorities including, most notably, $34 million to be used for teacher raises, $27 million to be appropriated to the state’s three universities to provide more bonding authority for new infrastructure projects, $38 million per year to create

a performance-based funding program to provide $400 per student for high-performing schools in low-income areas and $250 per student to high-performing schools in higher-income areas, and $8 million for early literacy programs.

The Budget also includes nearly $162 million for one-time spending items. Most notably, the Budget provides almost $63 million for the School Facilities Board for the construction of six new schools, and $30 million in Highway User Revenue Funds (HURF) to counties that had their monies swept in during the Great Recession.

AMA bills to go in effect in August As we reported in the last edition of Apartment News, the AMA was successful in passing two key pieces of legislation this year. The bills will go into effect on the General Effective Date for all legislation passed by the Arizona Legislature, August 9, 2017 (unless enacted with an emergency clause or alternative date).

The AMA’s first bill, HB2039, will authorize apartment managers to provide unlimited finder/ referral fees (in the form of rent credits) to their residents. Prior to the bill’s passage, managers were limited to providing only a $200 rent credit to residents up to five times per year.

The new law maintains all of the existing restrictions that prohibit the lessee/tenant from showing a residential dwelling unit and discussing the leasing terms and conditions with a prospective lessee, and prohibiting the lessee/tenant from participating in the negotiation

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of a lease with a prospective lessee/tenant.

The AMA’s second bill, HB2237, will prohibit any court or agency from requiring specific forms for notices or pleadings in eviction actions.

The AMA sought this legislative solution after a Court-appointed commission proposed an amendment to court rules to require all landlords and tenants to use court-created forms for all notices and pleadings.

Had the legislature not intervened with this new law, landlords’ rights and remedies provided by state law would have been subverted by technical deficiencies created by the court-mandated forms.

matters in court. The plaintiffs demanded settlements ranging anywhere from $2,500 to an upwards of $10,000.

As a result of the lawsuits, Arizona Attorney General Mark Brnovich stepped-in and finally put an end to the plaintiff’s scheme.

In order to avoid future “drive-by” lawsuits, a broad coalition from the business community, including the AMA, was able to pass SB1406 reforming the AzDA. The new law will provide the business an opportunity to cure any alleged violation to the Act prior to a complaint being filed, and will provide penalties for vexatious litigants.

AMA joins business community to curb drive-by lawsuits

AMA helps preserve key development tool

After a rash of vexatious “drive-by” lawsuits plagued the Valley last year related to alleged violations to the Arizonan’s with Disabilities Act (AzDA), the state’s version of the federal American’s with Disabilities Act (ADA), the AMA joined a business coalition to pass SB1406 in order to put an end to the unscrupulous lawsuits.

This issue surfaced last year when thousands of businesses received notice that they were in violation of the AzDA requirements related to parking lots, including striping, signage and access. Many of the complaints were over mere inches, including allegations that signage was placed either two inches too low or too high.

Most, if not all, of the businesses, fearing the repercussions from long drawn-out lawsuits, opted to settle the cases instead of fighting the

The AMA also played some defense in 2017, especially with the introduction of HB2213. The bill, as introduced, was intended to reform the state’s critical Government Property Lease Excise Tax (GPLET) incentive program.

A GPLET is a tax incentive agreement negotiated between a private party and a local government. It was established by the State of Arizona in 1996 as a way to stimulate development in commercial districts by temporarily replacing a building’s property tax with an excise tax.

GPLET is levied on property that is owned by a city, town, county or stadium district and leased to a private entity. The tenant, or prime lessee, pays an excise tax based on size and use instead of property tax based on value. In 2010, the state reformed GPLET and restricted leases to 25 years, including an eight-year

abatement.

Over the past several years, the use of GPLET has received increased scrutiny, especially its use in multi-family projects in downtown Phoenix and Tempe. Proponents of HB2213 argued that GPLET is a tax giveaway that, in their view, should be significantly limited or otherwise eliminated.

On the other hand, the AMA contends that cities and towns have very few tools in the toolbox to entice large employers and/or housing providers to a city’s central core. One could argue that the downtown resurgence in the city of Phoenix in the last few years could not have been realized without the use of the

GPLET tool.

The bill, as originally introduced, would have substantially impacted future projects seeking a GPLET incentive and would have likely made the incentive obsolete by redefining where and when GPLETs could be utilized.

The AMA, and the other stakeholders involved, were, able to negotiate with the bill’s proponents to maintain many of the key existing provisions and to preserve existing projects. While we did reach a compromise this year, we fully anticipate that future reform bills will be pursued by the same proponents.

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‘Let’s go to court!’

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Think about it before you act

BY ANDREW M. HULL, ESQ.

Andrew M. Hull, Esq. is an attorney with Hull, Holliday & Holliday, PLC. He can be reached at 602-230-0088

n my landlord/tenant practice, it is not uncommon for a client or potential client to state, “let’s go to court — I can’t lose” or words to that effect. What most people don’t understand is going to court can be risky, expensive and normally not a sure thing. Landlords should be aware of what they are getting into when they decide to go to court.

The two most common court actions or lawsuits involve either an eviction or a civil suit for rent and/or property damages to the rental unit or defending a claim by a former tenant over the return of their security deposit. The following overview should help clear up any confusion between the two types of lawsuits.

Eviction State law limits an eviction (or

what is more properly called a special detainer/ forcible detainer action) to the legal removal of a resident from rental property. It is a speedy remedy that allows a landlord to present its case to a judge in a very short period of time. This usually is within a week after filing with the appropriate court.

The legal issues for a judge to decide are very narrow. The main issue is identifying the party entitled to possession of the apartment.

The secondary issue is determining the amount of owed rent, if any. The court restricts owed rent to the amount due for the month in question plus any prior months.

possession of the unit.

Landlords can bring a civil lawsuit after an eviction or after a resident prematurely vacates the apartment under A.R.S. § 33-1373. The suit is for all rents owed until the lease expires or management re-rents the unit. Included in this are any concessions, lease break fees and property damages beyond normal wear and tear. Management should itemize all damages and give the resident credit for any refundable deposits. If the landlord re-rents the apartment before the lease expiration date, he or she should adjust the amounts of charges owed by the resident.

Civil suit

Understanding the differences

A civil suit, on the other hand, is not a good-looking wardrobe or fancy coat and pants. It is a separate lawsuit brought by a landlord following an eviction or a resident’s breach of the rental agreement. Since the law limits evictions to residents still in possession of a unit, management cannot file such an action if the resident moves out of the rental property.

Keep in mind Arizona Residential Landlord and Tenant Act (ARLTA) A.R.S. § 33-1310(3) specifically states that a landlord is in possession of a unit after the resident returns all keys and physically vacates it. Therefore, if management does not have a vacating resident’s keys and is not sure whether the individual is still residing in the unit, an eviction is proper. It should not file an eviction if it knows the resident vacated and is in

A civil lawsuit differs greatly from an eviction case. The filing court fees are higher and the time to bring the case to trial is longer. Since the resident must be personally served with the civil lawsuit, it is imperative that the landlord have the individual’s new address or current place of employment. While landlords may publish the lawsuit in the newspaper, this is time-consuming and open to a possible challenge from the former renter at a later date.

Once the former resident receives the lawsuit, he or she has 20 days to respond and deny the allegation. At this point, management will have to file a disclosure statement informing the court of the facts of the case, legal theories, list of witnesses and what they will say, and copies of all pertinent documents.

The court may require both

The views expressed here are generalized advice or information. Fact-specific questions should always be referred to legal counsel. Statements and opinions expressed in these legal columns are solely those of the author or authors. This advice does not necessarily represent the views or opinions of the Arizona Multihousing Association.

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Apartment News | June/July 2017

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parties to appear for a settlement conference. If both parties cannot resolve the case, the court will set a trial date. Civil cases can take many months to conclude.

Therefore, landlords might wish to consider turning their delinquent accounts over to a collection agency to pursue.

Considerations What landlords should also be aware of are the following considerations. First, you lose the case and the tenant has hired an attorney. The losing party will be required to pay all reasonable attorney fees to the prevailing party. Attorney fees can be quite high.

Second, there is no guarantee of success if you go to court.

Judges vary on their legal positions and many issues and must decide cases not only on they law but also the facts as determined by the judge. Witnesses may or may not be considered creditable or believable by a judge. The burden of proof is by a preponderance of the evidence so if a tenant has six (6) witnesses to the landlord’s two (2), the judge may rule the weight of the evidence goes to the tenant.

To sum all this up, it is prudent to know the risks, know the strength of your case (witnesses, invoices, photos, pieces of damaged carpet, etc.) and know the potential cost. Even if you win, can you collect? Food for thought.

Arizona Air-Scent congratulates all the nominees and winners of the 2017 AMA Tributes Awards!

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an air of legitimacy. Some are easy to review and discard, but a couple tend to slip through the cracks. A regularly reoccurring transmission is the “Yellow Pages” scam, and sadly property management firms keep being victimized by it.

How it works

Seeing yellow!

P

Beware of the Yellow Pages scam

BY PAUL A. HENDERSON, ESQ.

Paul A. Henderson is an attorney with the Law Offices of Scott M. Clark, P.C.. He can be reached at 602-957-7877.

roperty management is a paper-intensive business. Lease contracts, residency verifications, notices, applications — even in the most digital-friendly leasing office, there is still plenty of paper in use. Your fax machines continuously spit out sheets of messages, too — and that is yet more paper consumed.

When large numbers of faxes come in, it isn’t a surprise that a portion of those transmissions are advertisements and, had they been emails, “spam.” Email spam tends to be easily identified and discarded, but faxbased scamming carries with it

The premise is rather simple: you receive a fax from a seemingly-reputable vendor who wants you to update the information they have on file for you.

You are asked to complete the form, sign it, and then fax it back. Supposedly that will be the end of it, because you are apparently only updating your directory listing for the yellow pages, and apparently you already have a relationship with them.

The scammers are clever.

They never inform you that a pre-existing relationship is in place, and they declare clearly that this is a “Directory Listing Order Form,” while burying the pricing terms in small font on the bottom. Once your team fills it out and returns it, you start receiving bills for their “service.”

They do have a listing online, so they are technically performing, but you are assuredly not receiving services equal to the price they are charging you.

Moreover, you lock yourself into a two-year contract … with the obligation to pay the first year in advance.

Practice diligence The only way to defend yourself against this scam, and others like it, is diligence. If you receive a fax that requests you to update

your information and you did not request the company provide their services, you may be the target of a scam. Don’t fill out forms you do not recognize, and most definitely do not send them back. If you have questions about the validity, check with your supervisors or call your attorneys. Asking a question is never the wrong answer, but making a guess may land you in hot water.

If you do end up filling out that form and returning it, there is very little chance you will be able to resist the later demands.

Most communities’ budgets do not have a spare $1,200 or more just to pay off tricksters, but you will have to force it into your budget if you let yourself become a victim to these people.

Caller beware Sadly, scammers don’t simply rely upon faxes. There are plenty of anecdotal examples of the telephone call that leads off with “Can you hear me?” – and when you say “yes,” you end up having your acknowledgment spliced into a recording for a contract.

Whether or not this is true, scammers do rely upon the telephone. The IRS will never make a cold-call to you, and your bank will never call you to verify your account information. Always be critical of callers, and if the call sounds fishy, it probably is.

Remember, your best resource is your attorney. If you have an issue, and you need assistance, do not hesitate to call us. We are always glad to provide a sounding board and a critical ear for analysis, and there is no such thing as a “stupid question.”

The views expressed here are generalized advice or information. Fact-specific questions should always be referred to legal counsel. Statements and opinions expressed in these legal columns are solely those of the author or authors. This advice does not necessarily represent the views or opinions of the Arizona Multihousing Association.

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Apartment News | June/July 2017

www.azmultihousing.org

WINNERS

Best Use of Theme: Blue Steel/Mike’s Swat Team Best Costumes: CORT Most Interactive Booth: Williams, Zinman & Parham, P.C. People’s Choice: Law Offices of Scott M. Clark, P.C.

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GALORE

Almost 1,000 attended AMA Trade Show

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attleship, Hunger Games, Are Your Smarter Than a 5th Grader, Sorry and many more popular games entertained guests over the twoday AMA Education Conference and Trade Show.

Many of the trade show vendors took full advantage of the fun theme and got creative to engage the more than 1,000 attendees. From casino games, to movie themes to board games, attendees were treated to a variety of chances to win and work with AMA Associate members. One of the most popular booths included a real-life money booth where dollar bills

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flew around contestants as they grabbed for money.

Education Conference attendees heard from keynote speaker Phoenix’s Police Chief Jeri Williams who spoke on her priorities for the department.

She leads the largest police force in the state with more than 2,900 police officers, 900 civilian employees and a budget of more than $600 million. AMA members and apartment communities have the opportunity to work with police departments around the state through the community coalitions and crime free programs.

From Top: Most interactive, Best Costume, Best Use of Theme winners at the AMA Education Conference and Trade Show, held May 10-11 at the Phoenix Convention Center.

June/July 2017 | Apartment News

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25 th

ANNIVERSARY

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Apartment News | June/July 2017

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AMA celebrates leaders and communities at annual Tribute Awards gala

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early 1,400 multifamily industry leaders packed the Phoenix Convention Center in early May to celebrate the 25th Anniversary of the AMA Tribute Awards.

Representing communities from around Arizona, nearly 100 finalists advanced to the stage during the gala to dance to Justin Timberlake’s Can’t Stop the Feeling. This marked the first time in the Tribute Awards 25 year history that every finalist appeared on stage, before the announcement of the winners, so all of the evening’s guests could recognize and celebrate these professionals. Emceed by Toni Blake, the evening honored those who have excelled in all facets of the multi“Tribute”: an act, statement, or gift housing industry. that is intended to show gratitude, “It is a special honor to be able to respect, or admiration. This captures share in the recognition of these professionals who put their passion and exactly why The Tribute Awards were commitment to our industry and to the set up – to honor thehousekeepers, residents at their communities,” said maintenance, leasing, managers, AMA President and CEO Tom Simplot. supervisors, and owners who take on The AMA Tribute Awards started with over 550 nominees, pared down the tasks ofcaring for all the people to the nearly one hundred finalists, that live in these communities.I’m culminating with the evenings presenproud to be a part of this organization tation to the 24 individuals, teams and for over 34 years - to see those that properties named as Tribute Award have made a difference are honored. recipients. Congratulations to all who were a part of this evening. Nominees, —Joanne Schlueter, General Manager, finalists and winners should all be RediCarpet , 25-year Tribute Awards attendee proud of their accomplishments.

Developers Award for Best Community Design (Garden) Velaire at Aspera, PB Bell Companies Developers Award for Best Community Design (Mid/Low Rise) iLuminate, Baron Property Services Renovated Community of the Year Stone Oaks, Mark-Taylor Residential Affordable Community of the Year Aeroterra Apartments, Dunlap & Magee Property Management Inc. Volunteer of the Year – Tucson Rob Martin-Hart, Scotia Group Management Volunteer of the Year – Statewide Michelle Sinclair, MC Residential Communities Industry Partner – Statewide Scott Clark, Law Offices of Scott M. Clark P.C. Industry Partner – Tucson Kyle Kelly, Sunland Asphalt Housekeeper Christina Speaker, MC Residential Communities Maintenance Technician Benjamin Noreiga, Alliance Residential Company Maintenance Supervisor 1-125 Rigo Tovar, Greystar Real Estate Partners Maintenance Supervisor 125+ Kevin Dorris, MEB Management Services

When the Tribute Awards started 25 years ago, it was just a few categories.

Cox has filmed this event for years; it’s a nice touch that shows the professionalism of the apartment industry. One thing that I noticed this year was how many of the players have changed and moved around the industry. This gala is the one night when we see those leaders, with the owners and the on-site team members all together to celebrate.

—David Lederman, Area Sales Manager, CSC Serviceworks Inc., 25-year Tribute Awards attendee

Leasing Consultant Michael Wise, Alliance Residential Company Assistant Manager Liz Landes, Shelton-Cook Real Estate Services Community Manager 1-125 RJ Brady, Mark-Taylor Residential Community Manager 125+ Jessica Karl, Weidner Apartment Homes Property Supervisor Stacey Searl, Weidner Apartment Homes Regional Maintenance Supervisor Richard Leytem, HSL Asset Management

Following their panel interviews for the Tribute awards, nearly every finalist had an opportunity to sit down with AMA President Tom Simplot for a short video for the AMA You Tube Channel. Over the past few weeks, thousands of friends and colleagues have viewed these profiles to learn more about these outstanding professionals. For the first time, the AMA hosted an online contest to see which finalist earned the most views.

www.azmultihousing.org

VIDEO WINNERS 1st Place: Jamie Tadeo, Leasing Consultant of the Year - QuarterPenny Management - Silverado Apartments - 2,604 views.

2nd Place: Marcella Herrera, Housekeeper of the Year - Mark-Taylor Residential: San Travesia - 1,925 views 3rd Place: Daisy Pagan, Leasing Consultant of the Year- Greystar: Scottsdale Gateway - 690 views

Best Team & Community prior 1998 Scottsdale Springs, Greystar Real Estate Partners Best Team & Community 1998-2008 Belara, Fairfield Residential Best Team & Community 2009-2016 San Norterra, Mark-Taylor Residential Community Manager OTV Khara House, Bella Investment Group Maintenance Supervisor OTV Justin Nichols, HSL Asset Management Best Team & Community OTV Silverado Apartments, Quarterpenny Management

June/July 2017 | Apartment News

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WINNERS

1st Place: Kelly Martin, Joellyn Buck, Allen Glidewell, Keoki Enlow 2nd Place: Matt Koglmeier, Kelly Wiegel, Wink Rodriguez, Bob Lebsack

Tucson Golf Tourney is 'Super!'

The AMA-zing/COX Communications Tucson Golf Tournament was a “Super� event at Randolph Golf Course on April 21st. One hundred and thirty two golfers joined more than 45 sponsoring companies for a day of Super Hero Fun. Marvel superheroes mingled with DC Comic favorites as companies hosted exciting themed golf tees.

Special thanks to the Title Sponsor, Cox Communications, for their support of this event.

SPONSORS: COX Communications, Ace Asphalt, ATI Restoration, AZ Smoke Free Living, Belfor, Burns Pest Elimination, Capitol Floors Inc,

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Apartment News | June/July 2017

Carpenter, Hazlewood, Delgado & Bolen, Carpeturn.com, CertPro Painters, Criterion Brock, CSC ServiceWorks, Distinctive Carpets, ForRent.com, Interstate Restoration, Koglmeier Law Group, Law Offices of Scott M. Clark, Nicolosi & Fitch, Northwest Exterminating, NPM Staffing, PPG Paints, Quarterpenny Management, Redi Carpet, RentPath, Roofing Southwest, Sherwin-Williams, Silverado Rooter & Plumbing, Southwest Solutions, Tucson Appliance, Valley Wide Security, WASH Multifamily Laundry Systems, Westcoat Specialty Coating Systems, and Wilmar.

3rd Place: Dustin Howell III, Todd Norton, Nadina Dalton, Jose Mills Most Honest Score: Elena Douglas, Shantea Chavez, Anthony Flores, Paul Tejeda Best Use of Theme: Kyle Kelly, Graham Swanson, Jeffrey Chavez, John Kline

www.azmultihousing.org

Big Hearts Tucson honored by "Our Family" The AMA Big Hearts committee was recognized as a Legacy Donor at Our Family Services Spring Luncheon for their partnership with the organization for more than 10 years. AMA received an original drawing of a saguaro cactus drawn by a child from The Reunion House.

Big Hearts Tucson continued their fundraising at their Annual Kick Off Party in April with record attendance.

Flagstaff AMA networking growing The Association recently hosted its first networking mixer in Flagstaff at the Little America Hotel.

More than 30 regular members attended, representing communities around Flagstaff. Four sponsors and several association members also joined in the networking and planning for the future of this dynamic group. AMA Board Chair and Bella Investment Group Managing Partner Amy Smith Montoya led the meeting and welcomed representatives from MEB, Aspen Place (EPC Real Estate Group), MC Companies and more.

AMA President Tom Simplot gave an update on AMA programs and an overview of the benefits of participating in AMA’s PAC, AMAPAC. Together, Tom and Amy also talked about the NAA and its political action committee, NAAPAC. The evening included a roundtable discussion of how this networking group could grow in the future and the kinds of programming that members would appreciate. There was a strong

consensus from this Flagstaff Coalition that networking, motivation programming and education would be valuable to these members. More than 10 members volunteered to help launch the Flagstaff Coalition Committee in the area with the support of the AMA. Plans are underway for another networking event later this summer so please check out the AMA website for details. In October, there will be another mixer scheduled for members and prospects. If you are interested in participating in steering the future of the AMA in Northern Arizona, please contact Michelle Rill at the AMA.

In support of the 2017 Tribute Awards Winners,

Congratulations!

Sponsor of the: Best Team & Community 1998 - 2008 Winner: Belara

Sponsor of the: Developer’s Award for Best Community Design- Garden Winner: Velaire at Aspera

Sponsor of the: Leasing Consultant of the Year Sponsor of the: Community Manager Winner: Michael Wise Outside the Valley Winner: Khara House AR-0008690817-01

Sponsor of the: Regional Maintenance Supervisor Winner: Richard Leytem

Real Estate School Exam Pass Rates

Classes held at La Quinta Inn & Suites, 102 N. Alvernon Way Tucson, AZ 85711 Unless noted, classes cost $20 (non-members $40)

Tucson Fair Housing July 21, 9 a.m.- noon

Jumpstart to Leasing Aug. 10, 9 a.m.- noon Led by Bry Carter from Apartments.com this class will cover: how renters search for apartments, the customer’s expectations, phone and email and follow-up techniques, how to lead a tour, how to present yourself in the workplace and, most importantly, how to give excellent customer service.

A

t the most recent quarterly meeting with Arizona Real Estate Commissioner Judy Lowe and members of the AMA, the issue of property management content in CRE classes was discussed. As part of that conversation, the issue of exam pass rates was raised, prompting a Freedom of Information request to the ADRE by the AMA. The AMA has now received the pass rates for all real estate schools in Arizona for the year 2016 and for January 2017. The following is what the AMA has gleaned from the documents about exam pass rates for just the month of January 2017.

Arizona School of Real Estate & Business The Arizona School of Real Estate & Business is the largest such school in the state, with 288 exams taken in January. First time takers of both the sales and brokers exams had a pass rate of 73 percent.

Bowl-A-Round with the AMA

Arizona Academy of Real Estate

June 15, 5-7:30 p.m. Fiesta Lanes, 501 W. River Rd., Tucson Free for regular members (Assoc. sponsorships sold out)

The second largest school, defined by how many individuals took exams, was the Arizona Academy of Real Estate. That school reported a broker pass rate of 60% for first

2017 AMA Tucson/ ATI Restoration Reverse Trade Show July 13, 1:30-7 p.m., Hilton Tucson East Cost: Per Associate Team of two – $195 (before June 30); $220 (after June 30).

AMCF Big Hearts Gaslight Theatre FUNdraiser

Hogan School of Real Estate In southern Arizona, the Hogan School of Real Estate posted a pass rate of 100% for the broker exam and 84 percent for associates.

Tucson School of Real Estate The Tucson School of Real Estate posted a pass rate of 57 percent for sales associates taking the exam for the first time, and a pass rate of 46 percent for those who repeated the exam. No students from this school took the brokers exam in January.

One month of test scores do not accurately reflect the success rate of a school, so the AMA will now be tracking exam pass rates on a monthly basis. That information will be printed in the Apartment News moving forward. For a complete set of ADRE documents with pass rates for all real estate schools in Arizona, please contact Valarie Waldvogel at the AMA at vwaldvogel@ azmultihousing.org.

Classes held at the AMA Office, 818 N. 1st St., Phoenix 85004 Unless noted, classes cost $20 (non-members $40)

AZ Landlord Tenant Class 2017 Lunch & Learn – Conversion Tracking July 18, 11:30 a.m.–1 p.m.

Cost: $25 ($45 non-members)

Path to Rent

July 20, Spider Guy at 7 p.m.

Cost: $25 per person

July 26, 11:30 a.m.-1 p.m.

Cost: $25 ($45 non-members)

Tucson Education Conference & Trade Show

Phoenix Fair Housing

Sept. 15, 9 a.m.– 4 p.m., Westin La Paloma Presented by Koglemeier Law Group

2017 Lunch & Learn – Marketing and SEO

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time takers, and a sales associate pass rate of 72 percent. The overall pass rate for all exams taken in January for this school was 52 percent.

Aug. 9, 9 a.m. – noon

Sept. 6, 11:30 a.m.–1 p.m.

Cost: $25 ($45 non-members)

Apartment News | June/July 2017

Sept. 19, 9 a.m. – noon

2017 National Apartment Leasing Professional Sept. 25-29, 9 a.m. – 5 p.m.

Leasing professionals are the first people prospective residents meet, and often their only gauge of the property staff. This course is designed to teach these professionals skills to help them become top producers. Cost: $375 ($475 non-members)

AMC Meeting/Golf Lottery July 20, 3-5 p.m., Location TBD

AMCF Big Hearts Bowl-a-thon Aug. 4, Brunswick Zone Mesa

Phoenix Dinner Meeting Sept. 20, 5-8 p.m., Phoenix Country Club Cost: $69 ($89 non-members)

P&P Sept. 22, Hyatt Regency Phoenix Cost: $125/$165 non-mbr.

Table (8): $800/$1200 non-mbr.

www.azmultihousing.org

ALL ABUZZ

Mark-Taylor hosts a ‘Hyve’ of activity and fun for AMC

BY ADAM GRECO

W

alking into Tempe’s Hyve, one immediately gets the impression that this is a community that’s welcoming and active. The modern design of the clubhouse, complete with a coffee bar and relaxation area, feels like the coolest living room in town.

Residents can experience a luxury resort lifestyle complete with towel service at the pool, a yoga deck, touch screen fitness equipment and more. For those who want to dig into their community, there’s even a resident maintained vegetable and herb garden.

Amenity-rich property AMC members had the opportunity to tour this extraordinary property with manager Ciera Moraga. Mark-Taylor took over management of the Hyve in late 2016, following their opening in 2015.

Following a rebranding and the integration of their signature resident relations, the community boasts 96-percent occupancy in the 296-unit development. Moraga shared how Mark-Taylor’s resident relations programs and their approach to customer service set them apart as a management company. The Hyve’s

www.azmultihousing.org

amenity rich community near downtown Tempe is target to young tech working, building on the city’s success in attracting quality jobs to the area.

The Mark-Taylor team welcomed 75 AMC attendees for the meeting and the group was especially appreciative of their willingness to jump in a host on short notice. During the catered reception, Moraga introduced her team including Mike Pantoja, the service manager for the property and TJ Forster, an Asset Manager with Mark-Taylor. The group also had a surprise visit from the company’s senior leadership team including Linda Coburn, Asset Manager, and company President John Carlson.

Vision for the future Carlson spoke with AMC members about

the vision for Mark-Taylor’s future. Today, the Arizona-based company holds a portfolio of 14,000 units here and in Nevada.

Mark-Taylor is Arizona’s largest multifamily development company and currently manages more than $2.5 billion in multifamily real estate. He also spoke about his work with the National Apartment Association and travelling around the country with that work. He offered high praise for the relationships built and the professionalism of the AMA. Their newest development, San Portales located in Silverstone in Scottsdale will be the company’s first self-developed property that will include elevators. Most of the communities developed by the company offer garden style living.

In addition to the AMC raffle, the Hyve team also created a special trivia game for their guests and two associate members won gift cards. The winner of the lunch raffle with TJ Forster and Ciera Moraga was Joseph Reynolds at Sierra Fire and Communications.

Adam Greco is the director of commercial sales with Burns Pest Elimination. He can be reached at (602) 971-4782 and adamg@burnspestelimination.com.

June/July 2017 | Apartment News

19

Advertisting Savvy Q&A with Lorna Walker, Republic Media Real Estate & Rentals Sales Manager

Q: What drew you to Arizona and the real estate advertising business?

I truly believe if you are not learning, you are not growing — moving to Phoenix was a great opportunity to learn a whole new industry and market. I was moved (literally) to see how I could apply my years of multimedia advertising experience to the real estate/ rentals industry while getting to know the Phoenix market.

One year in- I have grown both professionally and personally and continue to learn every day. The Phoenix market is unique compared to the South Florida and Southern California markets where I was previously. The multi housing industry is robust and vibrant here and the people are especially kind and supportive — with open arms have embraced and welcomed me in.

Q: Real estate advertising has changed dramatically over the past 5 years.

What do AMA members need to know about online vs. print advertising?

For an ad to be effective, it must speak directly to the target audience. In the past 5 years, the ability to hyper-target specifically to the audience you want to reach has grown exponentially.

The concept that print/ magazine is dead as it relates

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to the rental industry is truly unfounded. The monthly AZ Rentals magazine continues to deliver strong results for B and C properties today.

Using call tracking in the ads, one management company received over 3,000 calls from the magazine/newspaper ads over the last 6 months — that is an average of 480+ calls per month!

Online advertising delivers the ability to hyper-target. We use audience segmentation data to analyze your current leasers, identify their demographic and behavioral traits and match them to look-a-likes in other zip codes in the valley to serve your ads to. There are many targeting tactics you can use to maximize your target audience reach: Content targeting: Deliver your ads on websites both in and out of network. For example, if your potential renter is an avid hiker, your ad can serve on hiking websites Geography: Targeting by zip or sub zip, city, state Behavioral targeting:

Apartment News | June/July 2017

Numerous options including age, income, ethnicity, education, real estate seekers, pet enthusiasts, shoppers, etc Geo-fencing: Using GPS technology, we create a digital fence around your competition and other buildings where your potential renter works, play (office building, mall) and serve your ads to anyone who walks into the fence. We are then able to track if that person walks into your leasing office (the conversion zone) Social media leads: The new referral platform using demographic and behavioral segmentations, your ads are served to potential renters feeds while they are in the mindset of connecting with family and friends. You can also re-target to Facebook visitors.

Website organic ranking:

Directories list claims and on page website optimization to ensure page 1 rank for relevant keywords phrases Pay per click advertising:

Reach Local, our Digital Marketing Services company is a Google certified preferred vendor and Google Best Quality Score award recipient.

This means we can efficiently optimize your advertising to ensure you pay the lowest price for the best ad spot on page 1 of search engines.

Retargeting: Once they leave your site or social media page, we retarget them with

your ads wherever they go online.

Q: How do these new marketing tools allow businesses to track their performance and outcomes?

In today’s media, everything is trackable which gives you the opportunity to tweak and adjust the campaigns quickly to deliver the best results.

In magazines and newspaper ads, call tracking allows you to see the number of calls generated from each off-line medium, listen to the calls to ensure your front desk are asking the right questions to secure the lease.

Online marketing using Google analytics and tag managers to track various actions of the potential renter, including but not limited to: >> Top websites or social media platforms driving traffic to your website >> Bounce rates — did they leave after just visiting one page on your site? >> How many pages deep/ how long did they stay on your website >> Did they connect via form fill or live chat or click to call from their mobile device?

Reach Local Reach Edge is a proprietary dashboard and mobile app that directs all actions/leads from your marketing efforts into one portal

www.azmultihousing.org

which you can manage on the go, assign leads, follow up on emails and calls, schedule drip marketing touch points as well as schedule automated messages.

Q: Where do you see changes in the media landscape ahead?

As wireless technology continues to emerge, now consumers can get what they want when the want it. This is what Google calls “Micro moments behavior” immediately turning to a device to know, go, do and buy. To win over potential renters, you must be present and useful wherever they are on the path to rent.

Q: You’re in this year’s Lyceum class with the AMA? How do you think this program

will help you when you ascend to the AMA Board of Directors?

The Lyceum class is essential to my full integration into the rentals industry in the Valley.

It provides a much-needed deeper understanding of the issues affecting the industry, from government, healthcare, social services etc. I am excited to learn more in the coming year so that I can contribute in a more meaningful way.

Q: As a native of Jamaica, what’s the thing you miss the most about living and working there?

Family. I relocated here on my own so I miss my family mostly. And of course, the food. The strongest similarity in Phoenix with Jamaica is the people — warm, kind and embracing.

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