News & Events February 2018

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Proud member of GNAA

2018 Board of Directors Chairman Andrew Klahn, CAPS®, NALP®, HCCP®, CAM®

Vice-Chairman Zac Ward, CPM® Secretary/Treasurer Stacey Holt, CAM® Immediate Past Chairman Lisa Swick, CAPS® Managers Representative Katherine Morrow, CAM® Maintenance Representative Dale Smith, CAMT®, CPO® Associates Representative Valerie Hirsbrunner, CAM® Management Directors Anne Adams, CAM®, NALP® Kitty Barry, NAAEI-AIT® Brigitte Byron, CAM® Tracey Crowe Tina Hamor Sully Lemmons Bret Marchbanks, CAM® Stephanie Liston Melanie Schlachter, CAM® Lori Torres, CAM® Maintenance Directors John Johnson, CAMT®, CPO® Diane Mason, CAMT®, CPO® Associate Directors Jack Abernathy, CAS® Jill Carpenter, CAS® Jennifer McCoy, Esq. Loyd Owen Lacey Smithson, NALP® MDHA Representative Norman Deep Legal Advisor M. Wesley Hall

GNAA News & Events / February 2018

Contents

Chairman-Elect Stephanie Burns, CAM®, NALP®, CAPS®

President Diane Carter

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9

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13

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Director of Communications & Marketing Scott Meert

Finance Connie Morris

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Statistics Bobbi Turner, ARM®

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Member Services Lori Ladnier

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Thank you to our cover sponsor:

TAA Update 2018 Legislative Session The Origins of Valentine’s Day A Bit of History Feature New Year, New Tennessee Laws Tax Update The Tax Cuts and Jobs Act It’s the Law The Tenant’s “I Didn’t Pay My Rent” Maintenance Defense

Association News

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Director of Education & Events Ginny Johnson

Active Past Chairmen Mary Bradley Brad Cather, CPM®, HCCP®, SHCM® Kirby Davis Faye Ellis, CPM® Diana English Andy Gass, ARM® Barbara Haynes Shelley James, CAM®, CAPS®, CPM® Tammy Lee, CAM® Chari Lewis, CAM®, CAPS®, CPM® Stacy L. Molen, CAM® Harold Morris, CPM® Nancy Morris Linda Page, CPM®, ARM® Ellen Parker Judy Rose, CPM® Susan Sherfield, CPM® Rita Wilkinson, CPM®, ARM® Joyce Wolfe

Features

February Managers Luncheon Social Media Marketing: What You Need to Know Certified Pool-Spa Operator Training Program Scholarship Available for This Class!

Hands-On Training Class Get Your Punch List Done!

Membership Connection Stay Connected!

2018 GNAA Presidential Golf Scramble Sign Up Today!

2018 Education Conference Keynote Speaker: Eddie George February Networking Opportunities Associates, Managers & Maintenance Luncheons Maintenance Mania Gear Up! Calendar Something Special Noted on the Calendar Celebrating 50 Years of GNAA Reprint from The Tennessean from 1973

2018 Education Schedule Which classes are right for you? Look for the registration badge to find the course you’re looking for.

L

AM

MG

PS

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LEASING

ASSISTANT MANAGER

MANAGER

PORTFOLIO SUPERVISOR

SUPPLIER

MAINTENANCE

Course

Dates

Member Cost*

January 23 - 25 (8:30am-5:00pm) TBD- Presentations

$675

Assistant Manager Crew: The Art of Collections (3 CECs)

January 30 (9:30am-12:30pm)

$99

Hands on Training – 5 Basic Punch List Items (3 CECs)

February 8 (8:30am-12:30pm)

$99

February 22-23 (8:00am-5:00pm)

$400

HVAC Hands-On Training Low Voltage, Electrical Controls & Diagrams (6 CECs)

March 8 (9:00am-5:00pm)

$135

2018 Education Conference Music City Center

April 5 (9:00am – 4:00pm)

$299 per person Call GNAA for group pricing

HVAC/EPA Certification

May 17 (9:00am-5:00pm)

$145

HVAC Hands-On Training Refrigerant Charging and Troubleshooting (6 CECs)

May 31 (9:00am-5:00pm)

$135

HVAC/EPA Certification

July 12 (9:00am-5:00pm)

$145

Selling to Multifamily (3 CECs)

July 26 (8:30am-12:30pm)

$99

Train the Trainer

September 5-7

$199

Legal Conference (3 CECs)

September TBD

$149

September 24-28 (9:00am-5:00pm)

$899

November TBD (9:00am-5:00pm)

$300

National Apartment Leasing Professional* (NALP®)

Certified Pool Operator* (CPO®)

Certified Apartment Manager* (CAM®) Low Income Housing Tax Credit Conference

*Non-Members of GNAA should call (615) 365-3047 for non-member pricing. Scholarships available for CAM , CAPS , CPO and NALP certification courses. ®

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®

®

Don’t have the staff coverage to attend as much off-site training as you’d like? Looking for a way to provide quality training to your employees on a tight budget? GNAA’s Online University programs are the ideal solution! For more information, or non-member prices, call the GNAA office at 615-365-3047. Download registration forms (as available) from our website at www.gnaa.org. Registration must be made for each class and payment is due prior to course date.

Space is limited and there are Absolutely No Cancellations or Refunds. Schedule & pricing subject to change.

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February Managers Luncheon Social Media Marketing: What You Need to Know!

Speaker: Dee Wilson, Freeman Webb How many times have you walked into a place of business to drop off flyers and candy and thought to yourself, “What am I doing?� Marketing your business has taken a completely different turn; with the world at our fingertips flyers have become a marketing tool of the past. Only twelve years ago major businesses in the area of your community would welcome your information. It was not uncommon for someone in the human resources department to hand out your information to new hires if they were looking for a place to live. It was a beautiful relationship between an apartment community and a major business. Today as technology has evolved, most companies will not accept your information, as most of their employees will use the internet to search for their apartment needs.

In recent years SEO (Search Engine Optimization) has been the preferred method of searching for an apartment. Prospects can explore your community by viewing images, reading reviews and even taking virtual tours. In the event a prospect drives by a community, they will most likely still search that community using SEO before ever visiting. Then just like that‌prospects started to realize how much they could learn about your community from your social media sites!

February Managers Luncheon Wednesday, February 14 GNAA Office 12:00 p.m.

Currently social media is becoming the leading source of traffic and advertisement for many communities. Not only can a prospect get a one-on-one feel for what it is like to be a resident, they can also see your resident interactions.

Prospects are going to social media sites for real-life opinions from past and present residents. So what does your social media say about your community? How do you maintain a relationship for a successful marketing program using social media? Join us on Wednesday, February 14 and I will show you why I love Social Media Marketing. Let me help you fall in love with Social Media Marketing too!

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Law Office

Hall & Associates M. Wesley Hall III

Nathan C. Lybarger

CONSTRUCTION AND REPAIR SERVICE, INC. Locally Owned and Operated Since 1990 Commercial • Industrial • Residential Free inspection, consultation and recommendation w w w. r e l i a b l e r o o f i n g . n e t

LandlordAdvocate® 223 Madison Street • Suite 212 • Madison, TN 37115

6 1 5 . 8 6 8 . 4 1 0 1 • Fa x 6 1 5 . 8 6 8 . 3 8 9 3

Nashville: 615-333-3653 Fax: 615-333-6245 Murfreesboro: 615-895-7042

399 Haywood Lane Nashville, TN 37211

Eddie M. Patterson, Owner

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TAA Update

2018 Legislative Session The second session of the 110th General Assembly convened on Tuesday, January 9, 2018. With several new members added to the State Senate and another arriving soon, the Lt. Governor had to reassign several members on committees to account for the absence of former Senators Doug Overbey, Jim Tracy and Mae Beavers.

Overbey and Tracy resigned to assume positions in the Trump administration, and Beavers did so to focus on her Gubernatorial campaign. Art Swann was appointed to the Senate by the Blount County Commission to fill out the remainder of Senator Overbey’s term. Former State Representative Mark Pody narrowly won a special election to fill the seat vacated by Senator Beavers. For Senator Tracy’s seat a special election is underway to determine who will replace him. Additionally, as part of the reorganizing, Senator Frank Niceley joins the Commerce Committee, and Senator John Lundberg joins the Education Committee.

The start of the new session also marks the first opportunity for elected officials, state employees and government affairs professionals to really get acquainted with the Legislative branch’s new office space. The business of the State Legislature will no longer be conducted in the Legislative Plaza; rather, the newly renovated Cordell Hull Building will be the new home for members of the General Assembly. If you come to Nashville, the new offices are located two blocks north of the entrance to the former Legislative Plaza.

Speaker Harwell had a similar challenge, namely that two of her House members (Representatives Pody and Swann) joined the upper chamber. Representative Swann’s absence created a vacancy in a consequential chairmanship. To fill that vacancy, Speaker Harwell chose to elevate Representative John Hosclaw to Chairman of the critically important Business and Utilities subcommittee.

As before, Blount County chose to appoint Jerome Moon to fill the remainder of the House term. Wilson County also took the opportunity to appoint Clark Boyd to fill the remainder of now Senator Pody’s previous House term.

There is one other new face in the State House, Kevin Vaughn (R-Collierville) who was elected shortly after the last session concluded. Vaughn will be the most senior mid-term freshman in the General Assembly.

Given that both the Speaker of the House and the House Minority Leader are fully engaged in their own gubernatorial campaigns, an early to mid-April adjournment is expected. Despite the early adjournment predictions, there is no shortage of filed legislation.

by Catie Lane Bailey Senior Policy Advisor/Attorney, Waller

In recent years, Tennessee lawmakers have been focused on issues such as economic growth and keeping taxes low, but this year they have something else on which to focus – Tennessee’s growing opioid crisis. It is highly anticipated that the legislature will consider the recommendations of the Opioid Abuse Task Force that were recently released.

Following the bill filing deadlines, the Tennessee Apartment Association’s Government Relations team will work diligently to identify proposed legislation that either directly or indirectly affects the multifamily housing industry. Once those bills have been identified, TAA will work with the Board of Directors to determine positions on legislation and necessary action items to communicate those positions to legislators. Weekly reports that identify and summarize bills of interest being heard in the following week’s committee meetings will be distributed to TAA members as a way to keep you updated on legislative activity. If you would like to receive those updates, please contact the TAA staff.

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CPO®

Certified Pool-Spa Operator® Training Program

The World’s Most Recognized Pool and Spa Training Program Designation provided by the National Swimming Pool Foundation

Thursday, February 22 and Friday, February 23, 2018

8:30 am - 5:00 pm

Located at the GNAA Office

Member Cost: $400 Non-Member Cost: $535

Scholarship available for this class!

Apply today at gnaa.org.

Thank You 2018 Education Sponsors!

Brookside Properties Elmington Property Management • Ferguson Facilities Supply • First Call • Freeman Webb Companies Langley & Taylor Pool Corporation • Law Office of Hall & Associates • Law Office of Jennifer McCoy • L.I.C.R.A - Nashville Lighthouse Property Management • Lincoln Property Company • Valet Living • Wheeler, Inc.

We’ll Evict ‘Em with a Quickness!

We’re Fast • We’re Friendly • We Get You Paid

• • • •

Same day filing of all detainer warrants No annoying paperwork No nickel-and-diming No know-it-all attorneys telling you how to run your business

Telephone: (615) 500-8577 Fax: (866) 381-5292 jennifer@jennifermccoylaw.com

www.jennifermccoylaw.com 8 GNAA

The Origins of Valentine’s Day courtesy of The History Channel

Every February 14, across the United States and in other places around the world, candy, flowers and gifts are exchanged between loved ones, all in the name of St. Valentine. But who is this mysterious saint, and where did these traditions come from?

Find out about the history of this centuries-old holiday, from ancient Roman rituals to the customs of Victorian England.

The Legend of St. Valentine

The history of Valentine’s Day – and the story of its patron saint – is shrouded in mystery. We do know that February has long been celebrated as a month of romance, and that St. Valentine’s Day, as we know it today, contains vestiges of both Christian and ancient Roman tradition. But who was Saint Valentine, and how did he become associated with this ancient rite?

The Catholic Church recognizes at least three different saints named Valentine or Valentinus, all of whom were martyred. One legend contends that Valentine was a priest who served during the third century in Rome. When Emperor Claudius II decided that single men made better soldiers than those with wives and families, he outlawed marriage for young men. Valentine, realizing the injustice of the decree, defied Claudius and continued to perform marriages for young lovers in secret. When Valentine’s actions were discovered, Claudius ordered that he be put to death.

Other stories suggest that Valentine may have been killed for attempting to help Christians escape harsh Roman prisons, where they were often beaten and tortured. According to one legend, an imprisoned Valentine actually sent the first “valentine” greeting himself after he fell in love with a young girl – possibly his jailor’s daughter – who visited him during his confinement. Before his death, it is alleged that he wrote her a letter signed “From your Valentine,” an expression that is still in use today.

Although the truth behind the Valentine legends is murky, the stories all emphasize his appeal as a sympathetic, heroic and – most importantly – romantic figure. By the Middle Ages, perhaps thanks to this reputation, Valentine would become one of the most popular saints in England and France.

Origins of Valentine’s Day: A Pagan Festival in February While some believe that Valentine’s Day is celebrated in the middle of February to commemorate the anniversary of

Valentine’s death, others claim that the Christian church may have decided to place St. Valentine’s feast day in the middle of February in an effort to “Christianize” the pagan celebration of Lupercalia. Celebrated at the ides of February, or February 15, Lupercalia was a fertility festival dedicated to Faunus, the Roman god of agriculture, as well as to the Roman founders Romulus and Remus.

To begin the festival, members of the Luperci, an order of Roman priests, would gather at a sacred cave where the infants Romulus and Remus, the founders of Rome, were believed to have been cared for by a she-wolf or lupa. The priests would sacrifice a goat, for fertility, and a dog, for purification. They would then strip the goat’s hide into strips, dip them into the sacrificial blood and take to the streets, gently slapping both women and crop fields with the goat hide. Far from being fearful, Roman women welcomed the touch of the hides because it was believed to make them more fertile in the coming year. Later in the day, according to legend, all the young women in the city would place their names in a big urn. The city’s bachelors would each choose a name and become paired for the year with his chosen woman. These matches often ended in marriage.

Valentine’s Day: A Day of Romance

Lupercalia survived the initial rise of Christianity but was outlawed at the end of the 5th century, when Pope Gelasius declared February 14 St. Valentine’s Day. It was not until much later, however, that the day became definitively associated with love. During the Middle Ages, it was commonly believed in France and England that February 14 was the beginning of birds’ mating season, which added to the idea that the middle of Valentine’s Day should be a day for romance.

Valentine greetings were popular as far back as the Middle Ages, though written Valentines didn’t begin to appear until after 1400. The oldest known Valentine still in existence today was a poem written in 1415 by Charles, Duke of Orleans, to his wife while he was imprisoned in the Tower of London following his capture at the Battle of Agincourt. (The greeting is now part of the manuscript collection of the British Library in London, England.) Several years later, it is believed that King Henry V hired a writer named John Lydgate to compose a Valentine note to Catherine of Valois.

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Feature

New Year, New Tennessee Laws On January 1, Tennesseans rang in 2018. Did you know that the new year also means 16 new laws have officially gone into effect in Tennessee.

Some of these new laws are extremely technical, like Senate Bill 0128, which addresses the electrical safety code governing electrical supply stations and lines. Some, on the other hand, could have a direct impact on your day-today life. These laws include regulation on cell phones in school zones, headlights, free speech on higher education campuses and handgun permitting.

Cell Phones In School Zones Senate Bill 0954

This bill makes talking on a handheld cell phone in a school zone while the warning lights are flashing punishable by a fine of up to $50.

Handgun Permits House Bill 0689

This bill creates an exemption to the firing range portion of the training required to get a handgun carry permit if the applicant can prove they successfully passed small arms training or combat pistol training in any branch of the United States armed forces.

Barbers

Senate Bill 0032

This bill allows a barber to perform services in a home for anyone. In the past, a barber could only come to a person’s house to cut their hair if they were ill. However, a residential barber certificate is required to perform these services.

Campus Free Speech School Transportation House Bill 0322

This bill establishes a school transportation supervisor program to oversee transportation services for school districts and charter schools. The bill also requires new school bus drivers to complete a training program before they can drive a school bus and requires a bus driver to be at least 25 years old before they can get an initial bus driver license.

Senate Bill 0723

This bill recognizes students’ right to free speech and directs institutions of higher education to give students the freedom to speak, write, listen, challenge, learn and discuss any issue, as long as they don’t violate the First Amendment. The bill also directs institutions not to deny student activity fees to student organizations based on the viewpoints of the organization. And an institution can’t bar guest speakers invited to campus by students or faculty just because the speaker’s speech might be considered offensive or otherwise disagreeable. continued on p. 12

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Disabled Persons Senate Bill 0597

This bill gives a competent adult with a functional disability, or a caregiver of a minor child or incompetent adult, to direct and supervise a paid personal aide to perform health maintenance tasks. Health maintenance tasks are tasks that a person without a functional disability or a caregiver would normally do for themselves.

Weird Tennessee Laws Still In Effect 1.

Skunks may not be carried into the state.

2.

More than 8 women may not live in the same house because that would constitute a brothel.

3.

It is illegal to use a lasso to catch a fish.

4.

Driving is not to be done while asleep.

5.

It is legal to gather and consume road-kill.

6.

It is illegal for a woman to call a man for a date. (Dyersburg)

7.

You may not have more than five inoperable vehicles on a piece of property. (Fayette County)

8.

In front of their buildings, all businesses must have a “hitching post.” (Knoxville)

9.

It’s illegal for frogs to croak after 11 PM. (Memphis)

Marijuana Jurisdiction House Bill 1291

This bill removes the Alcoholic Beverage Commission’s jurisdiction over enforcement of criminal offense involving marijuana.

Headlights

Senate Bill 0194

This bill amends a current bill to prohibit any vehicle with steady-burning lights to have any color light, other than white or amber, whether they are steady or flashing. Exceptions include emergency vehicles, school buses, mail carriers and authorized law enforcement vehicles.

Alarm Systems House Bill 1392

This bill allows a homeowner to cancel a contract for alarm services that is longer than two years by giving 30 days notice to the alarm system contractor if the homeowner has to sell the property for medical reasons.

Prescription Drugs Senate Bill 0429

This bill authorizes the Board of Pharmacy to create a voluntary prescription drug donation repository program to allow people to donate prescription drugs and supplies to be used by eligible individuals.

The drugs have to be in their original sealed, tamper-evident packaging and must be inspected before they are dispensed by a licensed pharmacist.

Thank you to our friends at WKRN for sharing this list with us! If are really interested in the formal summaries of each new law, visit https:// wdef.com/wp-content/uploads/2017/12/New-Tennessee-Laws-2018Effective-January-1st.pdf.

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10. No person may keep a cheetah as a pet. (Nashville) 11. Anyone rollerblading may not tie himself or herself to a moving vehicle on a highway. (Nashville) 12. No person may roller skate and listen to a personal CD player at the same time.

(Nashville) 13. Throwing stones is prohibited as it might break a window. (Nashville) 14. All persons riding scooters must ride in single file. (Nashville) 15. An ordinance forbids anyone to sing the song “It Ain’t Goin’ To Rain No Mo’.” (Oneida)

Get your punch list done!

February 15, 2018 • 8:30 a.m. - 12:30 p.m.

Located at the GNAA Office

Speaker: Shane Gates, Chadwell Supply

Cost $99 per person*

Approved for 3 Continuing Education Credit Hours *Non-member price is $198 per person

Thank You 2018 Education Sponsors!

Brookside Properties • Elmington Property Management • Ferguson Facilities Supply • First Call • Freeman Webb Companies Langley & Taylor Pool Corporation • Law Office of Hall & Associates • Law Office of Jennifer McCoy • L.I.C.R.A - Nashville Lighthouse Property Management • Lincoln Property Company • Valet Living • Wheeler, Inc.

Stay Connected.

Get to know other members and maximize your involvement in GNAA.

Register online at www.gnaa.org or by phone: (615) 365-3047, by fax: (615) 365-3571, or by email: loriladnier@gnaa.org.

e z i m i Max r

Please note that reservations not cancelled within three working days of the event will be billed $35 to your account if you do not attend.

Yobuership! Membership Connection Mem

Wednesday, March 28 • Lunch starts 11:00 Event takes place in GNAA Education Room

GNAA 13

Chairman & Board of Directors Dinner • J

Shelley, High 5 Residential; Lori & Brigitte, Brookside Properties; Jennifer, Law Office of Jennifer McCoy

Wes, Law Office of Hall & Associates; Mary, Arlington Properties; Dwayne, Wheeler, Inc.

John, HND Management; Ginny, GNAA

Zac, Freeman Webb; Dale, The Grove Waterford Crossing; Stacey, Bell Franklin Gateway; Properties; Stacy & Stephanie, NTS Development

Lisa, Bell Partners; Diane, GNAA

Gina & Jason, Colonial Grand Bellevue; Valerie, BG Multifamily

Lindsey, Emblem; Gina, Colonial Grand Bellevue; Sarah, Waterford Place; Robert, USS-United Structural Systems

Amber, Summerfield Place; Mike, Music City Removal

Zac, Freeman Webb, Dale, The Gr Stacey, Bell Franklin Gateway

Rob, The Hill Firm; Trent, Pet & Playground Products

Louis, The Gossett on Church; Trisha, BMB

Restoring Nashville’s Multifamily One Community

January Managers Luncheon

Anne, Arlington

Jack, ACI; Jill, CSC ServiceWorks; Loyd, Bug Solutions; Bret, Greystar; Dianne, GNAA; Diane, Vertis Green Hills; Melanie, Vintage at the Avenue

rove Waterford Crossing; Andrew, Freeman Webb;

Lisa, Bell Partners; Tammy, Lincoln Property Co.

Lisa, Regions Bank; Louis, The Gossett on Church; Amber, Summerfield Place; Jason, Colonial Grand Bellevue

Commercial

Music City Removal

y at a Time

Brad, Elmington Properties; Andy, Past Chair; Linda, Stewart’s Ferry

Nancy & Harold, Past Chairs

Stacey & Tonisha, Summerfield Place; Rob, The Hill Firm

Jennifer, Hayes House; Jeff, RG Flooring

655 N. Main Street • Goodlettsville, TN 37072 Phone: 615.873.4631 • Fax: 615.873.4634 ryan@summitpr.net

Andy, R3 Contractors; Emmie, Emblem

Tax Update

The Tax Cuts and Jobs Act

by Leigh Griffith and John Bunge, Waller Tax Attorneys For more information, visit www.wallerlaw.com

The most sweeping tax legislation enacted in three decades, informally known as the Tax Cuts and Jobs Act, was signed into law by President Trump on December 22. The legislation, which has been widely praised and assailed along party lines, permanently reduces the top corporate tax rate to 21%, revamps the taxation of international operations, and for eight years provides a “pass-through deduction” for certain partnership, S corporation, sole proprietorship, and other “pass-through” business income (such as income from LLCs taxed as partnerships) and cuts rates for individual taxpayers.

Importantly, real estate assets subject to depreciation (and which have not reached the end of their depreciation period, which is deemed to be at least ten years for these purposes) will be counted in the 2.5% of unadjusted basis calculation. Thus, for example, a building purchased for $1 million could increase the applicable deduction limitation by $25,000 per year. Land, however, would generally not be counted in the 2.5% calculation, because land is generally not depreciable.

Following is a high-level summary of key changes made by the Act to the Internal Revenue Code.

The Act allows a temporary 100% bonus depreciation for certain business assets placed into service after September 27, 2017 but before January 1, 2023; 80% bonus depreciation in the case of property that is acquired and placed in service after December 31, 2022 and before January 1, 2024; 60% in the case of property acquired and placed in service after December 31, 2023 and before January 1, 2025; 40% in the case of property placed in service after December 31, 2024 and before January 1, 2026; and 20% in the case of property acquired and placed in service after December 31, 2026 and before January 1, 2027. The 100% expensing timeframe is extended to January 1, 2024 for certain property with longer production periods. The Act also removes the requirement for bonus depreciation under pre-existing law that the original use of qualified property must commence with the taxpayer so that first-year depreciation will be allowed for used property as well as new property. This should have the effect of increasing the value of used equipment.

Pass-Through Qualified Business Income Deduction

For tax years beginning after December 31, 2017 and before January 1, 2026, an individual (or trust or estate) taxpayer may deduct 20% of the domestic qualified business income of a pass-through entity or a sole proprietorship subject to various restrictions and limitations. One general limitation is that the deduction is not available for income from a “specified service” business (generally professional, banking, and investment services). A second general limitation is that the deduction is limited to such taxpayer’s proportionate share of the greater of (i) 50% of W-2 income wages paid to employees or (ii) 25% of the W-2 wages paid to others plus 2.5% of the unadjusted basis of business assets. For taxpayers with $157,500 or less of adjusted gross income ($315,000 if married filing jointly), the two limitations described above do not apply.

100% Expensing of Business Investment

Additionally, for tax years beginning after December 31, 2017, the §179 dollar limitation on expensing depreciable continued on p. 17

16 GNAA

business assets is increased from $500,000 to $1 million and the phaseout threshold is increased to $2.5 million.

The sweeping tax legislation permanently reduces the top corporate tax rate to 21%, revamps the taxation of international operations, and for eight years provides a “pass-through deduction” for certain business income and cuts rates for individual taxpayers.

Of particular interest to real estate investors, the expensing described above also applies to certain improvements to non-residential real estate. As to the §179 deduction, certain qualified real property, roofs, heating, ventilation and air-conditioning property, fire protection and fire and security alarm systems are included as eligible property that could be subject to full expensing for non-residential real estate. Additionally, the Act modifies the depreciation of real property improvements through the definition of “qualified improvement property.” Generally, interior, nonstructural building improvements (including leasehold improvements) made after a building is initially placed in service will qualify as “qualified improvement property,” meaning the improvement costs would be subject to the initial 100% bonus depreciation described above, as to nonresidential real estate.

Limitation on Net Interest Expense Deduction

Beginning in 2018, the Act limits the deduction amount that taxpayers may take for business interest in a taxable year to an amount that does not exceed the sum of the taxpayer’s business interest income for the taxable year, 30% of the taxpayer’s adjusted taxable income for the taxable year and the corporation’s floor plan financing interest for the taxable year. The Act allows any disallowed business interest to carry forward to succeeding years. With respect to partnerships, the interest expense limitation is determined at the partnership level with allowed business interest expense flowing through to the partners as nonseparately stated partnership income or loss. Any business interest expense in excess of the limitation is allocated to the partners and carried forward by the partners to be offset only against the partner’s share of future taxable income of the partnership that is unused to offset business interest expense, i.e., if 30% of the partnership’s adjusted taxable income exceeds the partnership’s business interest expense over its business interest income. The Act contains complex provisions related to partnerships, which are designed to prevent taxpayers from double counting the same income in computing their business interest income limitation for business interest from other sources.

This deduction limitation does not apply to taxpayers having $25 million or less in average, annual gross receipts.

The Act defines business interest as interest paid or accrued on indebtedness that is allocable to a “trade or business” and is not to include investment interest.

Additionally, certain types of businesses may be excluded from the 30% interest limitation, including a real property trade or businesses that make an irrevocable election. If a real property business elects out of the 30% interest limitation, then that business is also required to use the “Alternative Depreciation System” (“ADS”) to depreciate its assets, which generally means longer depreciation periods and none of the bonus depreciation described above.

Like-Kind Exchanges

Like-kind exchanges under §1031 were preserved for real estate but eliminated for all other types of property.

Corporate Tax Provisions

For companies with audited financial statements the Act’s changes will require adjustments for deferred tax assets and liabilities. The data and calculation of the needed changes is such that the SEC in SAB 118 released December 22, 2017, announced public companies filing fourth-quarter 2017 financial statements may take a reasonable period to determine the effects of the Act. The SEC will accept a reasonable estimate in the financial statements reported as a provisional amount during the measurement period and subject to adjustment until the accounting under ASC 740 is complete.

Corporate Rate Reduction and AMT Repeal

The Act adopts a flat corporate tax rate of 21% and repeals the corporate alternative minimum tax for tax years beginning after December 31, 2017. continued on . 18

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Reduction in Dividends Received Deduction

The Act reduces the dividend received deductions for dividends received by corporations after December 31, 2018 from 70% to 50% for general, non-qualifying dividends and from 80% to 65% for dividends received from 20%-owned corporations.

Expansion of Cash Basis Method of Accounting

Under current law, corporations (and certain partnerships with corporate partners) with average gross receipts of more than $5 million over a three-year period, with limited exceptions, are prohibited from using the cash method of accounting. Beginning in 2018, the Act increases the gross receipts limit for purposes of this test to $25 million.

Temporary Employer Credit for Paid Family and Medical Leave

The Act adds an employer credit for paid family and medical leave, effective for years between December 31, 2017 and December 31, 2019. This credit is based on a percentage of the wages paid to “qualifying” employees who are on family and medical leave for up to 12 weeks.

“Qualifying” employees are defined as employees who have been employed for at least one year, and who have compensation under $72,000. In order to qualify for this credit, employers must have a policy of providing at least two weeks of paid leave to qualifying full-time employees, and a pro rata amount for part-time employees. This policy must provide at least 50% of employees’ normal wages. The credit ranges from 12.5% to 25% of applicable wages, and does not apply to leave paid by state or local governments, or required by state or local law.

Net Operating Loss Deductions

For tax years beginning after December 31, 2017, nonfarm net operating business losses can generally be carried forward indefinitely but there is no carryback. With respect to a pass-through entity, the net operating loss is determined at the partner level. The net operating loss can only offset up to 80% of the taxable income of the taxpayer.

Neither the pass-through business income deduction nor the deduction for foreign-derived intangible income can create or increase a net operating loss deduction.

Employee Benefits

Retirement Plan Loans

The Act allows employees whose retirement plans terminate or who have a separation from service while they have a plan loan outstanding to roll over the plan loan to an IRA at any time until the due date for filing their tax return.

Under present law, the rollover period is 60 days from distribution.

Moving and Bicycle Commuting Expenses Employer reimbursements of qualified bicycle commuting expenses and moving expenses would be taxable income to the employee during tax years 2018 through 2025. Under current law those reimbursements are nontaxable fringe benefits.

18 GNAA

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2018

GNAA

Presidential

GolfScramble Friday, May 18, 2018

Hermitage Golf Course, President’s Reserve Registration Continental Breakfast Shotgun Start Luncheon

6:30am 6:30am 8:00am 2:00pm

Awards & Prizes Following the Scramble Thank you to our Scramble Title Sponsor!

Sherwin Williams Paint & Flooring

Cost $160 per player

Price includes green fees, cart, range balls, two putt rule, use of practice facility one hour prior to event, one toss, one putting ticket, team pictures and lunch.

Prizes for:

ill some t s e r a There ft for e l s p i h s sponsor ! Call e l b m a r sc the golf .3047 5 6 3 .

5 1 Lori at 6 tion. a m r o f n ei for mor

Hole-in-one •Closest to the pin Longest drive • Longest putt Straightest drive

Call GNAA at 615.365.3047 to sign up your foursome!

GNAA 19

20 GNAA

Educational Opportunities 2018 GNAA Education Conference

This year’s GNAA Education Conference is going to be the best yet! Not only have we moved to our new location, the Music City Center in downtown Nashville, but we have a phenomenal lineup of speakers.

The conference kicks off with our keynote speaker, Nashville’s own EDDIE GEORGE. After completing a record setting career with the Tennessee Titans, Eddie has made quite a name for himself in the business world. You won’t want to miss it!

Traci Brown

We also have three amazing breakout speakers, TRACI BROWN, MEREDITH POWELL and KEVIN HENSEL. Topics range from Liar, Liar…Pants on Fire to The G.U.I.D.E.ing Philosophy.

More to come in our special education conference article in March!

The conference wraps up with a feel-good presentation from HK DERRYBERRY and Jim Bradford.

Some of you may remember HK from a general membership meeting from last year. Make sure you share what a wonderful presentation he and Jim put on to all your friends in the industry who missed out on him the first time. Everyone will definitely leave the conference with a new perspective on things.

Meredith Powell

The conference takes place on THURSDAY, APRIL 5 with registration starting at 8:30 a.m.

Attendees receive 6 CECs and lunch is included. Special pricing is available for large groups from the same management company. Call Ginny at GNAA for more information, 615-365-3047. You can also sign up at gnaa.org. See you there!

Save the Date!

HVAC Hands-On Training

Kevin Hensel

Make sure your maintenance personnel get signed up for the HVAC Hands-On Training class, specializing in Low Voltage and Electrical Controls. This class fills up fast! It is Thursday, March 8 from 9:00 a.m. to 5:00 p.m. right here at the new GNAA Education Room. Jim Fox from HVAC Techline is the instructor, and attendees receive 6 CECs.

HK Derryberry

Shari Bryant Wins NALP Scholarship

Congratulations go out to our 2018 NALP scholarship winner Shari Bryant!

Shari is a Leasing Consultant at Keystone Farms at Brentwood, managed

by Steadfast Living. Her application scored the most points out of all the applicants, points that she accumulated through attendance at GNAA events, participation in other educational classes and her essay on what the NALP designation would mean to her. Way to go, Shari!

GNAA 21

January Associates February’s GNAA Luncheon Highlights

Networking Opportunities Associates Luncheon February 7, 2018

Hermitage Smorgasbord @ 11:30 am

Collections Tips for Associates

Jeremy, RAM Partners; Shannon & Dawn, First Call; Robert & Deborah, USSUnited Structural Systems

Speaker: Jennifer McCoy The Law Office of Jennifer McCoy

Managers Luncheon February 14, 2018

GNAA Offices @ 12:00 pm

Social Media Marketing: What You Need to Know!

Speaker: Dee Wilson, Freeman Webb

Pam, ForRent.com; Mark, The Liberty Group

Rebecca, Crawford Door; Debbie, Reliable Roofing

Thank you to our sponsors!

A-1 Concrete Leveling BG Multifamily • The Hill Law Firm L.I.C.R.A. - Nashville Music City Removal Uptown Butlers & Maids U.S.S. - United Structural Systems

Sully, Brighton Valley; Jack, ACI

Maintenance Luncheon February 21, 2018

Hermitage Smorgasbord @ 12:00 pm

Tabitha & Jeremy, BMS Cat

Preparing Pools Properly

Speaker: Tommy Eubanks, Metro Health Department

Thank you to our sponsors!

Langley & Taylor Pool Stand Up Guys Junk Removal U.S.S. - United Structural Systems Wright Construction

22 GNAA

Rob & Laura, Rent Debt Automated Collections; Andy, R3 Contractors

It’s the Law

The Tenant’s “I Didn’t Pay My Rent” Maintenance Defense There are lots of creative excuses and defenses that tenants give for non-payment of rent. The “maintenance defense” is one of the more common defenses. However, by establishing and keeping good and consistent records, the maintenance defense can be easily defeated. An example of consistence is the method you use to receive maintenance requests. If you require that a request be made in writing, be consistent. It is too late to bring that requirement into play after the tenant gets in arrears and bombards you with frivolous requests.

We have all heard “tales of old” where landlords ignored maintenance requests after the tenant became delinquent.

Even though the tenant has breached the lease contract, your duties under the contract remain in place, as do the requirements and obligations imposed by the Landlord Tenant Act. Landlords are statutorily prohibited from deliberately or negligently failing to supply essential services. Essential services are defined in the Landlord Tenant Act as “utility services, including gas, heat, electricity, and any other obligations imposed upon the landlord which materially affect the health and safety of the tenant.”

The landlord is also required by statute to “make all repairs and do

whatever is necessary to put and keep the premises in a fit and habitable condition.”

Between maintaining essential services and making repairs, one of these two sections can apply to almost every maintenance request that a landlord would ever receive. If a landlord violates either one of these duties, the remedies available to the tenant are nearly the same.

After providing written notice, the tenant may: avoid paying rent, have their security deposit refunded, terminate the lease without penalty, recover their attorney’s fees, and may recover their monetary damages. If written notice is provided, you should react immediately. There are steps that must be taken to properly defend even false accusations.

As with all maintenance requests, when they are resolved, remember “who, what, when, where, how, and why.”

Sometimes this doesn’t take more than a few words or it could require before and after pictures or videos. If you feel that the tenant is trying to create a situation, it may be necessary to send two technicians to prevent false accusations against your maintenance team.

It’s always good advice to maintain complete records, but remember that when a tenant doesn’t pay rent and is approaching eviction, your entire process could be put under a microscope.

This detailed record-keeping may also send a message to the tenant and prevent the tenant from asserting the defense altogether.

Let your records do the talking!

by Wes Hall, Esq., Law Office of Hall & Associates

GNAA 23

Gear UP for

Join us Friday, April 27, 2018!

Sign up online at gnaa.org or call us at 615.365.3047.

Other local sponsors include:

Artisent Floors • Bug Solutions • Contractors, Inc. • Ferguson Facilities Supply Law Office of Hall & Associates • L.I.C.R.A. - Nashville • Lincoln Property Company Maintenance Supply Headquarters • PPG Paints • R3 Contractors • RAM Partners • Real Floors, Inc. Wheeler, Inc. • Wright Construction

Title Sponsor

Presenting Sponsor

Event Schedule

• Registration and Practice: 12:00 p.m.

• Competition Begins: 1:30 p.m.

• Awards to follow competition

24 GNAA

Where?

Al Menah Shriners Center 1354 Brick Church Pike Nashville, TN 37207

Cost?

Competition: $25 per person Cheer on Your Team: $20 per person

PROFESSIONAL SERVICE WITH A PERSONAL TOUCH

Dwayne Rawls

(615) 860-5411 • Mobile 533-8474 Fax 860-1004

WHEELER, INC. 3868 Dickerson Pike, Suite 200 • Nashville, TN 37207

February

Sunday

Monday

Tuesday Wednesday Thursday

1

Trade Show Committee* 10am

4

5

Banquet Committee*

6

9am

11

12

Maintenance Committee*

7

Associates Luncheon

Hermitage House 11:30am

13

14

8:30am

19

Governance Committee*

3

8

Statistics Committee*

Lyceum*

9

10

16

17

23

24

8:30am

15

Hands-On Training: Punch List* Education Committee* 10am

12pm

Presidents Day

2

8:30am - 12:30pm

Managers Luncheon*

18

Directory Committee*

Saturday

8:30am

8:45am

Valentine’s Day

Friday

20

Golf Committee* 9am

21

Membership Committee*

Invitation Only 10am

Certified Pool Operator*

22

8am - 5pm

10am

Certified Pool Operator* 8am - 5pm

Board of Directors*

Maintenance Luncheon

9am

Hermitage House, 12pm

25

26

27

Day on the Hill

28

*at GNAA office

GNAA 25

1968-2018

Reprinted from The Tennessean, Aug. 12, 1973

26 GNAA

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