Bay State Apartment Owner 4Q 2011

FOURTH QUARTER 2011

National Apartment CAREER MONTH a Huge Draw for the

Industry

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COVER FOURTH QUARTER 2011

National Apartment CAREER MONTH a Huge Draw for the Industry

Bay State Apartment Owner is the official publication of the Rental Housing Association. ©2011 The Warren Group Inc. and the Rental Housing Association. All rights reserved. The Warren Group is a trademark of The Warren Group Inc. No part of this publication may be reproduced in any manner without the express written consent of the publisher.

A division of the

Greater Boston Real Estate Board

One Center Plaza, Mezzanine Level Boston, MA 02108 Phone: 617-423-8700 Fax: 617-338-2600

RHA Officers President: President Elect: Secretary: Executive Director:

Richard Henken Karen Fish-Will Lynn Bora John E. Lafferty

National Apartment Career Month a Huge Draw for the Industry 08 The need for qualified, reliable maintenance technicians and leasing consultants is real, but the applicants are hard to find.

The National Apartment Association Education Institute has the answer.

CONTENTS

Published By 280 Summer Street, Boston, MA 02210 Phone: 617-428-5100 Fax: 617-428-5118 www.thewarrengroup.com

President’s Message

04

Chairman CEO & Publisher President Group Publisher & Editor in Chief

Executive Director’s Message

The Conference is Coming, the Conference is Coming!

06

Finance & Administration Controller / Director of Operations

Photo Gallery

07

Jeffrey E. Lewis

Editorial Custom Publications Editor Associate Editor

Christina P. O’Neill Cassidy Norton Murphy

Feature

12

Advertising & Circulation Publishing Division Sales Manager Advertising Account Manager Advertising, Marketing & Events Coordinator

RHA Calendar

15

Design & Production Creative Director Senior Graphic Designer Graphic Designer

Timothy M. Warren Timothy M. Warren Jr. David B. Lovins Vincent Michael Valvo

George Chateauneuf Mark Schultz Emily Torres John Bottini Scott Ellison Ellie Aliabadi

RHA Continues to Lead

EXPO 2011

Smoke-Free Homes Good for Business, Good for Health

President’s Message

BY RICHARD J. HENKEN

RHA Continues to Lead

A

s I approach the end of my term as president of the Rental Housing Association, I can look back upon a year of significant achievements for the RHA and look forward to the realization of new opportunities in the year ahead. Both our achievements and the realization of our potential in the future come as a result of the collective efforts of the membership, the support of the staff, and the leadership of the board and its executive committee.

Perhaps the most noticeable success in 2011 was Expo 2010,

Erland

our 11th RHA Fall Conference and Exposition. Our vendor members continued to demonstrate their support of the RHA, increasing the number of exhibit booths from 65 to 77. On the industry side, support from our leadership, and the incredible efforts of our volunteer committee, resulted in an explosion in the number of attendees, skyrocketing from 550 in 2010 to 650 in 2011.

Several factors made that growth happen. First and foremost, the RHA delivers on its promise to exhibitors that the show will be a significant business opportunity.

The exposition is visited by all segments of our industry, maintenance team members, leasing

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Fourth Quarter 2011

professionals, site and regional managers, senior executives and owners.

The RHA also delivers on the promise to make the fall conference a meaningful event for industry members. A variety of speakers with topics geared to the various membership segments provided both education and entertainment. Personal and professional excellence was recognized with our awards ceremony. And to close the day, the industry’s best multi-family networking event was enjoyed by all the attendees.

While it is easy to recognize a successful huge event such as the conference, there were many other, equally significant, achievements over the year.

In July, we hosted our first business exchange, where participating vendor members were assured one-on-one conversation with a purchasing decision maker from our industry members. The event supported the NAA PAC, helping RHA to meet its NAA PAC goal. And speaking of PAC activity, the RHA was the first division of the Greater Boston Real Estate Board to achieve its 2011 GBREB PAC goal, exceeding it by 20 percent!

Another significant achievement was the creation of the NextGen Network. NextGen targets industry members with 10 or fewer years of experience in the apartment industry. NextGen networking events have been a successful way for the RHA to grow membership, provide programs and services which are relevant to our younger colleagues, and to identify and grow our future leaders. The committee has worked tirelessly to launch this critical new initiative, and plans for additional events and education programs will be rolled out in 2012.

In a similar vein, the RHA has also taken the first steps in par-

ticipating in the National Apartment Association Education Institute’s (NAAEIs) Apartment Industry Careers Initiative, through a program being developed in conjunction with Bay State College and their DECA program. RHA members have already participated in the DECA Professional Day, judging student case analyses presentations. Future activities will include addressing classes offered by the Business Department at Bay State College, hosting job shadowing opportunities at industry member companies, and ultimately, internships for college students.

We have had success with our advocacy efforts, hosted successful golf, Red Sox and Celtics outings, and as I write this, our President’s Awards Dinner is shaping up as an appropriately successful capstone to our year.

My thanks to my leadership team, committee chairs, and the Board of Directors for their support and leadership. It has been an honor to serve, and I look forward to remaining an active and contributing member to RHA as it continues to lead the multi-family industry in Massachusetts n Richard J. Henken is president of Schochet Associates/ Federal Management Co., Inc. and 2011 president of the Rental Housing Association.

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Executive Director’s Message

BY JOHN E. LAFFERTY

The Conference is Coming, the Conference is Coming!

I

t may not be the cry uttered by Paul Revere, but we are eager to spread the word about the upcoming 2012 National Apartment Association Education Conference and Exposition, June 28 to 30, at the Boston Convention and Exposition Center! Over 5,000 industry professionals from across the country, are expected to attend, I am writing this column shortly after a November meeting of the 2012 NAA Conference Committee, and I must tell you, the excitement about holding this event in Boston is palpable among the committee members.

You might be asking, what’s the excitement all about? Let’s start with the speakers: the NAA has lined up soccer start Mia Ham and Red Sox legend Nomar Garciapara for the Friday session. Thursday, they will feature nationally acclaimed broadcast journalist Tom Brokaw.

Over 90 topics have been submitted for the breakout sessions. Those will be whittled down to a selection of 45 sessions, presented in two tracks on Thursday, two tracks on Friday, and one track on Saturday. In addition to the break-out session, the conference will also feature “thought leaders” Bert Jacobs of Life is Good; motivational speaker Connie Podesta; and the renowned Dan Thurmon, whose presentations never cease to amaze,

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Fourth Quarter 2011

inform and entertain the audience.

There is more to the conference. In addition to the outstanding speakers and education, over 600 exhibit booths have been committed to, and it’s still early in the booth sale process. NAA has secured the Bank of America Pavilion for the signature opening party. Room blocks have been arranged at 10 hotels, resulting in a great selection for location, pricing and brand.

NAA is also encouraging attendees the make this a family trip to Boston.

Discounted hotel rates for dates prior to and following the conference have been arranged. NAA has created a dedicated conference website and will post information on local activities and near by destinations for those planning an extended visit.

RHA will be playing a key role in the conference, with Bill Wollinger chairing the group registration sub-committee and I will chair the conference host sub-committee.

Bill and his group will be promoting the considerable discounts available to companies bring groups of five or more.

I will be responsible for recruiting and coordinating approximately 160 volunteers, who will provide directions to our guests at the hotels and convention center and introduce speakers during the conference.

What can you do to get in on the excitement? If you want to volunteer and make a positive impact on an attendee’s conference experience, please contact me. If you are interested in receiving a discounted conference registration, go to the NAA website, where you can receive the early-bird discount until the end of January.

Most importantly, if you want to be part of the biggest national apartment industry event of 2012, plan to join us at the 2012 NAA Education Conference and Expo. n John Lafferty is the executive director of the Rental Housing Association, a division of the Greater Boston Real Estate Board.

Photo Gallery Rental Housing Association EXPO 2011 September 27, 2011

Fourth Quarter 2011

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By Kristin Cantu

J

ob stability is one of the biggest concerns facing Americans today. What many of them may not know is that there is a current need in the apartment industry for qualified professionals, including maintenance technicians, leasing consultants and people to move in within a management career track.

With a turnover rate between 30 percent and 35 percent for maintenance technicians and leasing consultants in the apartment industry, there is a great need for people, said Maureen Lambe, executive vice president of the National Apartment Association Education Institute (NAAEI). The industry is constantly looking to develop new pipelines of skilled talent.

So how do those in the apartment business successfully promote careers within their industry? The NAAEI’s National Apartment Careers Month, which began in 2010, has proven to be an effective method. The organization’s aim is get the word out about apartment careers and also to help recruit and train people for the industry.

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This February will be the NAAEI’s third National Apartment Careers Month. While it can attract those already in the apartment industry, it mostly seeks to find people without previous apartment industry experience that may have certain core competencies already to fill muchneeded roles.

“We felt it was important to focus attention on the fabulous apartment careers that we have to offer,” said Lambe. “What we’ve asked is that all of our members, our member companies and our local apartment associations to be active during that month in doing outreach with high school students, college students, military, veterans, as well as military spouses to make people aware of the wonderful career tracks that we offer in apartment management, maintenance and leasing.”

The NAAEI provides materials, such as brochures and informative DVDs, to those looking to participate in February’s career month. It has also made the website, www. apartmentcareerhq.org, available to member companies in order to help them in their apartment career

National Apartment CAREER MONTH a Huge Draw for the

Industry

outreach. Job shadowing can also be “a great way to focus on providing students and others with opportunities to spend a day in the life of an apartment employee and learn first-hand about the types of jobs we have and what they entail,” Lambe said.

Susan Sherfield, chair of the NAAEI’s Apartment Career Committee, got involved in the organization 12 years ago when she discovered “the tremendous opportunities in the industry that so many people didn’t know about,” she said. Her involvement in the organization has been both for her “own development and to spread the word that there is this wonderful career opportunity [out there].”

Sherfield’s committee is responsible for promoting careers and finding ways to bring people into the industry. Apartment Careers Month is “the one month where we really try to blitz the whole country, working through local and state affiliates and different companies that are represented throughout the country to really promote careers in our industry,” Sherfield said.

Denise Hrabosky, education and membership director for North Carolina’s Piedmont Triad Apartment Association, has had huge successes in participating in high school and college career fairs during the last two years.

“It’s been a great response ... very, very positive,” Hrabosky said.

“People, especially at that age, they don’t even know that there’s such a career field in the apartment industry.”

Hrabosky also uses NAAEI’s marketing materials for the events, including the DVD, which is played throughout the career fairs she attends. The Piedmont Triad Apartment Association has also found that having giveaways with prizes and candy contributes to peaking interest. “We make it as fun as we can,” Hrabosky said.

Wanting to promote apartment industry careers as well, Miki Wilson, Baltimore region vice president for Home Properties, contacted her company’s human resources department and asked if they could designate Baltimore as the first region to promote career

month for the company. Last February, Wilson used the NAAEI career toolkit and hosted a job fair as the company’s first initiative.

One of Home Properties’ goals was to create awareness of the opportunities in the industry with community colleges and trade schools. It promoted the career fair through its website, resident bulletin board and Craigslist.

“We’re a growing company and I had a number of immediate positions that we wanted to fill,” Wilson said. “The job fair was extremely successful. I had over 90 attendees in one day. From that job fair we filled about 12 positions.”

When it comes to espousing the advantages of working in the apartment industry, NAAEI’s Lambe says there are many, including the extreme flexibility that can come with it.

“Every day is different and it’s a portable career. If you have a good attitude, take advantage of training opportunities … you can take that career as a leasing consultant or a maintenance technician and you can really move up and not only Fourth Quarter 2011

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BAY STATE APARTMENT OWNER

9

take on more responsibility, but also see a wonderful progression in salary,” Lambe said.

Finding the right person is also key. Lambe believes that having a good attitude and being a people person are the top qualities needed, in addition to being comfortable working as a member of a team.

“If you don’t enjoy people and you don’t enjoy making people happy, it’s probably not the career for you,” Lambe said.

In addition to spreading the word during career month, the NAAEI is working very closely with community and technical colleges across the country to offer its Certificate for Apartment Maintenance Technicians (CAMT) program, which is an accredited certificate program from the American National Standards Institute (ANSI). The national organization has been attending two community college association meetings annually where representatives from community colleges across the country express their students’ needs.

“There’s a great need for maintenance technicians,” Lambe said. “Community colleges today are charged not only with offering forcredit education for students who want to graduate with a two-year degree, but they have a workforce education and continuing education mission that they must undertake and the CAMT course works well as part of that workforce education initiative that so many of them are 10

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involved with.”

“I’m there to let the community college know about the opportunities to partner with NAAEI and our affiliates,” Lambe said. “When I learn that the college is interested and wants to move forward, I bring in the local apartment association and get them involved because at the end of the day it’s going to be that local apartment association that needs to develop and maintain that relationship with the local community college.”

The Texas Apartment Association, which also has programs in several community colleges, founded its education association nearly a decade ago to promote the residential property management industry for the state of Texas, said Jackie Rhone, vice president at large and executive committee board member.

“We’re trying to entice people to choose the apartment industry as a viable career option, Rhone said.

Through the Texas Apartment Association’s education initiative, a minor in residential property management has been created at the University of North Texas College of Business. The association holds student mixers and has management companies talk to the students about coming into the rental housing industry. It also offers scholarships every semester.

The association has given away $70,000 in scholarships so far.

The Texas Apartment Association is also reaching out to current and

former military personal and their spouses through career fairs, Rhone said. “We’ve found is it’s a really good fit.”

One of the best selling points of a career in the apartment industry is that it has proven to weather a recession better than most.

“We’ve had bad times, but at the end of the day people will always need someone to manage their real estate,” Rhone said. “It’s about as recession-proof as you can get. It’s always a long, viable career option.”

Rhone added: “It’s an evergrowing industry. People will always need a place to live. Even in the worst of times, our business is a thriving business.”

“Apartments are not going to go away,” Home Properties’ Wilson said. “The media is telling us more and more people [are] choosing apartments out of need, but more and more it’s a lifestyle decision and a decision of choice. [Because of this], the ability to have career advancement is just much more attainable than many, many other industries.”

In addition to students and military personnel, the NAAEI is looking to recruit people who want a career change, Lambe said. One of its most successful programs has been with Maryland’s Montgomery College, which has offered the CAMT course five times over the last year.

“What we’ve found is there are a lot of people who are underemployed or who are recent immigrants who have great technical skills,” Lambe

said. “It’s been a great opportunity to take those people who have those skills and bring them into the CAMT program so they will learn about the apartment industry and learn the necessary skills to be successful.”

She added: “Once these people get jobs, what we’ve found is they have a great attitude. Hopefully they will take advantage of any education that is offered by the apartment companies they work for.”

Part of NAAEI’s efforts are also focused towards people who may be looking for a career change either because they’re not happy in their current career path or because of changes as a result of the economy and downsizing, Sherfield said.

“It’s about anybody that has management skills and is looking for a way of using them,” Sherfield said. “I’ve seen a lot of people in retail or restaurant management or hotel management, but it’s the skills that they have that are very transferable to property management.”

Lambe said that even though there are a number of people who have taken advantage of apartment industry courses, there still tends to be a reluctance to hire someone who doesn’t have apartment industry experience.

“If I had a message for the owners and managers out there, [it] would be to consider transferrable skills,” she said. “Open your mind.

Look for people that have skills. If you find someone who has a great attitude and has those basic skills

and in some cases have even homed those skills taking apartment industry courses, consider hiring them over someone who maybe has been in the industry and moved around because they weren’t a great employee.”

Sherfield, who has been in the apartment business for 24 years, still loves her job. “I’m still

committed to it and I had no idea 24 years ago that when I took a job it was going to turn into such a fulfilling or rewarding career path.

Part of the reason I’m so committed to it is that I think of it partially as giving back to the industry that has given me so much.” n Kristin Cantu is a freelance writer.

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Feature

BY MARGARET REID

Smoke-Free Homes Good for Business, Good for Health

I

was looking for a new place. I went into the building, but I never saw the unit. The smell of cigarette smoke was so strong in the lobby I turned around and walked out.”

The property owner or manager lost a potential paying tenant when graphic designer, Jill Pertuso, left that Weymouth apartment building.

Even the granite counter tops and two free parking spaces could not compete with the secondhand smoke. Jill is just one of the 81 percent of the prospective tenants in Massachusetts in a recent survey who said they are less interested in a development if they smell smoke in the building.

So what is a property owner or manager to do to keep a rental business thriving? Increasingly, owners are transitioning properties to smoke-free. Just consider the trend in public housing properties.

Springfield’s public housing projects will soon be smoke-free. Next year, all Boston Housing Authority (BHA) properties with nearly 25,000 residents will go smoke-free. That will not only eliminate the ill health effects of secondhand smoke, but will also reduce the time managers now spend on smoke-related tenant disputes.

“We receive complaints and requests on a weekly basis for transfers from residents who have neighbors who smoke and who prefer to live in a smoke-free environment,” says Lydia Agro, director of communications and public affairs at the BHA. Private property owners are also on the move. New construction, of course, offers the easiest opportunity for property owners to institute smoke-free policies in their lease agreements. In Boston, for example, Archstone Avenir announced in 2009 that smoking would be prohibited in its new communities. The

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Kensington, a 27-story building now under construction, will open with 381 luxury rental apartments and be completely smoke-free.

Luxury, high-rise downtown buildings and public housing are not the only places for tenants to find smoke-free living. Median priced rental units are also available in neighborhoods across the commonwealth. The Jamaica Plan Neighborhood Development Corporation (JPNDC) and its management partner, Peabody Properties, Inc. (PPI) have selected six properties to transition to smokefree.

“PPI is supervising the SmokeFree Housing Outreach Coordinator and working with JPNDC’s Asset Manager to navigate the transition process in a resident inclusive and sensitive manner,” according to Lynne Sales, MSW, LCSW, grants and projects manager at Peabody Properties, Inc. Converting to a smoke-free policy in existing rental units and properties can be accomplished using a simple step-by-step process. The Boston Public Health Commission’s (BPHC) www.bostonsmokefreehomes. org has links to download form letters and other materials to help owners and managers through the transition. Once a building is smokefree, owners and managers can list their property on the site at no cost.

“The bottom line is smoke-free housing means fewer trips to the hospital for asthma attacks, and fewer residential fires,” said Dr. Barbara Ferrer, executive director of the Boston Public Health Commission. “Smoke-free housing policies are good for the health of a city and are increasingly becoming the new norm in Boston.”

Step 1: Educate your tenants.

In the Pioneer Valley, Michele Komosa, director of the Hampshire

County Tobacco Free Community Partnership (smokefree. hampshirecog.org), says open communication is critical. “Notifying tenants in a clear manner as to why, when and how the policy is being implemented and providing each tenant with a copy of the new policy is vital,” she says. “It is also helpful if signs are posted reminding tenants that their building is smoke-free.”

Common areas may already be protected under the Massachusetts Smoke-Free Workplace Law. Make sure they are covered by including the common area no-smoking rule in the smoke free policy.

Step 2: Implement the no-smoking policy for the entire property.

For new tenants, include a nosmoking lease addendum in all new leases.

For existing tenants, notify tenants of the change in advance and phase in the rule as residents sign lease extensions. For month-tomonth tenants, give a notice at least one month before the rule change goes into effect.

For subsidized housing: The U.S. Department of Housing and Urban Development supports smoke-free policies. There are successful examples of smoke-free housing across all kinds of subsidized housing, including public housing, rental vouchers, privately-owned affordable housing and more.

“We think that a successful process for moving to smoke-free housing must be methodical, involve the ownership and have a ‘buy-in’ by a majority of the residents to be successful,” says Susan M. Johnson, vice president at Maloney Properties, Inc. The company manages just under 10,000 apartments including properties for several neighborhood development corporations in the transition process. According to Johnson, each property should be

considered individually: “There are many options for considering smokefree housing, given the physical features of a property.”

Step 3: Enforce the no-smoking rule.

• Mail residents the rule change or bylaw amendment • Be clear about why you have a nosmoking rule • Tell residents they will be held financially responsible for violations • Treat no-smoking violations as you treat any other rule violation • Record violations in writing • Respond quickly and consistently to violations • Post “no smoking” signs in obvious places • Clean up cigarette butts and remove ashtrays • Have residents tell their guests about the no-smoking rule • Provide smokers who are interested in quitting with information on quitsmoking services

Step 4: Market your smoke-free building.

Take advantage of the high demand for smoke-free housing.

Nearly all tenants will appreciate your efforts, since over 92 percent of Massachusetts tenants believe that exposure to secondhand smoke is very harmful, or somewhat harmful, including apartment hunter Jill Pertuso. “I just wish that when I go online to search for an apartment, there was a standard icon that meant the building was smoke-free. It’s really a waste of my time to go to a building only to find out it is not smoke-free.

Why can’t it be as easy as sorting listings for pet-friendly apartments? It seems simple to me.”

Losing a potential tenant because of secondhand smoke may be bad for business, especially when free help during the process and free marketing are available. So in the long run, transitioning to smoke-free is good for business and good for tenants. n Margaret Reid is the director of the Division of Healthy Homes and Community Supports at the Boston Public Health Commission.Lisa Mastrogriovanni Grace at causemedia contributed to this article.

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January 4, 2012 Certified Apartment Manager (CAM) Designation Course Stoneham

June 2012 Rental Housing Association Spring Golf Date and location to be announced

March 2012 Massachusetts Fair Housing Date and location to be announced

June 28-30, 2012 2012 National Apartment Association Education Conference & Exposition Boston

March 15, 2012 National Apartment Association 2011/2012 Maintenance Mania® The Lantana, Randolph

July 2012 Rental Housing Association Business Exchange Date and location to be announced

March 27-29, 2012 Independent Rental Owner Professional (IROP) Boston April 2-4, 2012 National Apartment Leasing Professional Designation Course (NALP) Boston

September 28, 2012 2012 Rental Housing Association Fall Conference and Exposition Boston

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October 2012 National Apartment Association 2012/2013 Maintenance Mania® Date and location to be announced For additional information regarding upcoming RHA programs and events, please contact Josh Cooke, education and events coordinator, at 617-399-7860, or via email at jcooke@gbreb.com, or visit www.gbreb.com/rha.

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THE AMERICAN DREAM?

THE NEW AMERICAN DREAM.

America needs more housing choices.

Sometimes living the dream means rethinking it.

Renters could make up half of all new

The old American Dream of a house in the suburbs — it’s not what it used to be. households created this decade— more than seven million new renter households.

The housing crisis taught us that housing is shelter, not an investment. That awareness freed people up to choose the housing that best suits their lifestyle.

For millions, that is an apartment.

Today’s dream: housing choices that meet the varied lifestyles of our increasingly diverse population. From empty nesters to young professionals, childless couples to working class residents, our population is changing and increasingly opting for the convenience, flexibility and walkability of apartment life.

Smart choices need smart thinking — and a balanced housing policy that gives Americans the options they want.

Rethinking the American Dream.

www.naahq.org 703.518.6141

The unified voice of the apartment industry and the preeminent sources of apartment-related information.

Some things are worth planning ahead for.

Save the Date! mark your calenDar aS naa comeS to BoSton for the firSt time.

2012 naa eDucation conference & expoSition June 28–30, 2012 • BoSton, ma

Don’t miSS it!

Mark your calendars, add funds to your budget for registration and travel fees, and bookmark www.naahq.org/educonf in your favorites so you can register early and save.

Missed the 2011 naa education conference & exposition?

Purchase recordings and learn at your own pace.

The 2011 naa education conference & exposition has passed, but you can still get something out of it. Visit www.naahq.org/educonf and select your favorite from the 40 breakout sessions and purchase session recordings to listen to and watch whenever you want. It’s yours to keep—having this material on hand to reference throughout the year is some serious value.

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