colorado rentla housing journal - march 2015

Advertise in Rental Housing Journal Colorado Circulated to over 6,000 Apartment owners, On-site, and

Maintenance personnel monthly.

Call 503-221-1260 for more info.

March 2015 - Vol. 7 Issue 3Rental Housing Journal Colorado

DENVER • COLORADO SPRINGS • BOULDER

Monthly CirCulation to More than 7,000 apartMent owners, property Managers, on-site & MaintenanCe personnel

www.rentalhousingjournal.com • Professional Publishing, Inc

2. Commercial Markets Poised for Growth Despite Weaker Global Economy3. New Residential Water Heater Efficiency Standards

4. Inexpensive Ways to Attract Good Residents6. Secret Shopper7. Spring Maintenance Checklist Strong Job Growth Foreshadows Solid Full-Year Economic Growth

www.rentalhousingjournal .com

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- January's fastest growing rental markets included Denver, Colo., Kansas City, Nashville, Tenn., Portland, Ore., and Charlotte, N.C.

- U.S. rents were up 3.3 percent year-over-year in January, near the historical norm. But rents are rising much more rapidly in some markets. Annual rental appreciation peaked after the housing bust in September 2012 at 6.3 percent.

- In January, national home values rose at a slower pace, up 5.4 percent year-over-year, the ninth straight month of slowing growth.

Median rents continued ris-ing nationwide in January, with rental appreciation

in some small and even struggling housing markets catching up to the country's hottest areas, according to

The economy is poised for a pickup in growth in 2015 amid a strengthening employ-

ment sector, rising income growth, and declining commodity prices, ac-cording to Fannie Mae's Economic & Strategic Research (ESR) Group. The labor market has started the year on an upbeat note and is expected to lift consumer confidence, in turn help-ing to boost consumer spending, manufacturing activity, and the pace of the housing recovery. Economic growth may face some headwinds as a strong U.S. dollar weighs on the trade deficit. However, the economy is expected to climb to 2.9 percent for the full year, up from 2.5 percent growth in 2014.

"Our forecast calls for an increase in economic growth to 2.9 percent for 2015, which is a slight downward adjustment from our prior forecast but solid improvement nonetheless," said Fannie Mae Chief Economist Doug Duncan. "Although we are beginning this year at a more modest pace compared to the above-trend numbers seen at mid-year 2014, the country's aggregate income has ben-efitted from the improving labor

Denver Among Fastest Growing Rental Markets

...continued on page 5

– Pete Bialick

A growing number of market-rate and affordable housing providers are adopting re-

strictions on smoking in their build-ings and property. At mysmokefree-housing.com there are more than 3,300 Colorado multiunit residential buildings listed that have imple-mented no-smoking policies, includ-ing buildings managed by 33 pub-lic housing authorities. A growing number of these properties like Shea and McWhinney have implemented smoke-free policies that cover the en-tire property. In addition, a growing number of companies like Aimco, Amli, Echelon, and Red Peak are opening properties that are entirely smoke-free.

What is driving the trend? First, there is market demand for

smoke-free housing. Most Colora-do residents, including low-income populations, do not allow smoking in their homes and prefer to live in a non-smoking building. Resident support for smoke-free policies is high according to a recent American Lung Association in Colorado study of three public housing authorities. The study found that 93.5% of the nonsmokers and 84.6% of the smok-ers supported an existing smoke-free policy. Furthermore, 87.8% of the residents said that if they were to move it was important to move to a non-smoking building.

Second, property managers are finding that smoke-free policies re-duce the costs of cleaning, painting,

The Smoke-Free Housing


Strong Job Growth

Foreshadows Solid Full-Year

Economic Growth Robust Hiring and Firming Income Growth Expected to Boost Housing

Recovery


Rental Housing Journal Colorado • March 20152

RENTAL HOUSING JOURNAL COLORADO

2

A stronger labor mar-ket and

stable U.S. economy should keep com-mercial real estate demand on the rise,

but the pace of growth will likely be hindered by overseas weakness, ac-cording to the National Association of Realtors® quarterly commercial real estate forecast.

Lawrence Yun is chief economist and senior vice president of research at the National Association of Realtors(r). Yun oversees and is responsible for...

National office vacancy rates are forecast to slightly decrease 0.1 per-cent over the coming year as improved hiring increases the demand for office space. The vacan-cy rate for industrial space is expect-ed to decline 0.4 percent and retail space 0.3 percent as manufacturers boost production for goods and ser-vices and consumers slightly acceler-ate their spending. A swath of new apartment construction coming onto the market is forecast to lead to an

uptick (0.1 percent) in the multifam-ily vacancy rate.

Lawrence Yun, NAR chief econo-mist, expects commercial real estate activity to hold steady heading into the spring. "The demand for leases and new construction projects is expected to slowly climb as busi-nesses add to their payrolls and con-sumers reap the benefits of cheaper gas and any accompanying wage growth from a tighter labor market," he said. "Furthermore, multifamily housing continues to be the top-per-forming sector with current rental demand exceeding supply – leading to rent growth that is easily outpac-ing inflation in many metro areas throughout the country."

Although economic conditions are improving at home, Yun says weaknesses in the global economy will likely impact exports. "Sluggishness overseas alongside a strengthening U.S. dollar will widen the trade deficit and slow economic growth potential," he said. "However, GDP is forecasted to come in around 3 percent in 2015 – the highest since the recession. Improvements in hous-

ing and commercial real estate mar-ket activity will measurably help economic growth."

NAR's latest Commercial Real Estate Outlook1 offers overall projec-tions for four major commercial sec-tors and analyzes quarterly data in the office, industrial, retail and mul-tifamily markets. Historic data for metro areas is provided by REIS Inc., a source of commercial real estate performance information.

In partnership with Deloitte and RERC Situs, NAR released an annual joint report earlier this month – Expectations & Market Realities in Real Estate 2015 – which forecasts for an expected increase in commercial real estate value and pricing in 2015.

Office MarketsOffice vacancy rates are forecast

to slightly decline from 15.8 percent in the first quarter to 15.7 percent in the first quarter of 2016.

The markets with the lowest office vacancy rates in the first quarter are Washington, D.C., at 8.7 percent; New York City, 9.0 percent; Little Rock, Ark., and Seattle at 11.5 per-

cent; and San Francisco, at 12.0 per-cent.

Office rents are projected to increase 3.3 percent in 2015 and 3.6 percent next year. Net absorption of office space, which includes the leas-ing of new space coming on the mar-ket as well as space in existing prop-erties, is likely to total 47.7 million square feet this year and 58.3 million in 2016.

Industrial Markets Industrial vacancy rates are

expected to fall from 8.7 percent in the first quarter to 8.3 percent in the first quarter of 2016.

The areas with the lowest indus-trial vacancy rates currently are Orange County, Calif., with a vacan-cy rate of 3.4 percent; Los Angeles, 3.7 percent; Miami and Palm Beach, Fla., both at 5.4 percent; and Seattle, at 5.6 percent.

Annual industrial rents should rise 3.0 percent this year and 3.1 per-cent in 2016. Net absorption of indus-trial space nationally is expected to total 102.2 million square feet in 2015 and 104.8 million square feet next year.

If your target market includes the rental housing industry in the Denver Metro Area, you will not find a more efficient,

cost effective way to reach your target.

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The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this pub-lications does not, in any way, comport an endorsement of or support for the products or services offered. Metro Apart-ment Manager is produced monthly and is published by Professional Publish-ing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

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Commercial Markets Poised for Growth Despite Weaker Global Economy


Rental Housing Journal Colorado • March 2015 3


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Octoberp September

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By Heather Hill and Jason Campbell

On April 16, 2015, all residen-tial water heaters manufac-tured for sale in the United

States will be required to meet new efficiency standards as the third phase of a nationwide energy con-servation effort takes effect.

The National Appliance Energy Conservation Act regulates the ener-gy consumption of certain house-hold appliances including furnaces, boilers, refrigerators and water heat-ers. According to the Appliance Standards Awareness Project, water heating represents 20% of the total annual household energy consump-tion in the US, and on average 57% of this energy is lost in inefficient

heaters. The US Department of Energy (DOE) released its first man-datory standards in 1990.The second phase, enacted in 2004, tightened standards the most significantly of the three phases, and was estimated to avoid 316.8 million metric tons of carbon dioxide emissions. The 2015 standards will avoid 172.5 million metric tons of emissions, equivalent to the annual greenhouse gas emis-sions of about 33.8 million cars, according to the DOE.

The mandatory standards dictate that manufacturers meet the maxi-mum energy efficiency levels techni-cally feasible and economically justi-fied. The DOE conducts product reviews and updates the standards on a regular schedule. Note, that

while the manufacturers cannot make any water heaters with the old standards after the April date, they will be allowed to continue to sell the old inventory until the supply is exhausted. As of the date of this post, manufacturers have not released the compliant replacement heaters for their obsolete products. Though energy efficient models do exist in the marketplace, they have been built and promoted as specialty products and priced accordingly. Conversely, the replacement heaters will represent the new normal.

What is changing?The Energy Factor (EF) represents

the ratio of useful energy output from the water heater to the total

amount of energy used to operate it. The higher the EF rating, the more energy efficient is the water heater. The type of fuel, volume and mechan-ics of the heater all factor into its rat-ing and coinciding standard. For example, tabletop and instantaneous electric heaters already meet the EF standards and thus no changes will take place for those heaters.

The new requirements will most significantly affect gas-fired and electric heaters over 55 gallons as well as all instant gas heaters. The chart below outlines how the stan-dards apply to each style of heater.

New Residential Water Heater Efficiency Standards

OLD STANDARDProduct Volume EFGas-fired 20-55 gallon .67Gas-fired 55-100 gallon .67Oil-fired 0-50 gallon .59Electric 20-55 gallon .97Electric 55-120 gallon .97Tabletop 20-100 gallon .93Instant Gas 0-2 gallon .62Instant Electric 0-2 gallon .93

NEW STANDARDProduct Volume EFGas-fired 20-55 gallon .675Gas-fired 55-100 gallon .8012Oil-fired 0-50 gallon .68Electric 20-55 gallon .960Electric 55-120 gallon 2.057Tabletop 20-100 gallon .93Instant Gas 0-2 gallon .82Instant Electric 0-2 gallon .93

DIFFERENCEEF.005.1312.09-.011.0870.200

Manufacturers can employ new technologies such as heat pumps, which help reduce energy use by 50%, to upgrade electric water heat-ers. Condensing technologies can reduce energy use in gas storage containers by 25%. The low-tech solution, adding more insulation, may cause more complications. While adding 1 inch of insulation would increase EF by .05, it would

also broaden the heater by 2 inches in diameter. Knowing that water heater installations in multi-family structures are space defined, manu-facturers may also reduce tank capacities to allow NAECA-compliant units to fit in predeter-mined spaces, as the floor plans and common plumbing designs typically found in multifamily units will pre-vent relocation of the water heater.

What will this cost property owners?Since manufacturers have yet to

release the new heaters, the only cer-tainty for the owners of properties with large-volume gas or electric heaters is that those manufactured after April 16th will save money in operating costs. However, the improved technologies are likely to come with a higher price tag, as any new technology improvement usu-

ally does. Following the last major efficiency upgrade in 2004, prices for the new standard equipment increased 8-12%.

The DOE estimated the following cost implications for the 2015 stan-dards:

Product EF Average Cost Cost Increase Cost Savings* Payback PeriodGas-fired .62 (40 gal) $1,072 $92 $6 2 yearsGas-fired .76 (56 gal) $1,261 $805 $77 9.8 yearsElectric .95 (50 gal) $554 $140 $10 6.9 yearsElectric 2.0 (56 gal) $729 $974 $626 6 yearsOil-fired .62 (32 gal) $1,974 $67 $295 .5 yearsInstant Gas .82 (0 gal) $1,779 $601 $6 14.8 years


The cost savings refer to the costs of owning and operating the product after considering both the increased installed price and the lifetime oper-ating costs.

Maintenance costs may also increase due to the complex design of the new technology and the inte-gration of electronics, blowers, fans, condensers, etc. Anyone who servic-es water heaters may also struggle with a learning curve.

Considerations Residential property owners need

to review their options carefully when replacing a large volume water heater in the near future. Don’t wait until the heater fails to plan for its successor. Being aware of the condi-tions of the current heater, including its footprint, both physical and car-bon, can save property owners head-

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In the world of investing there’s an old adage: “Money goes where it’s treated best”. The same could

be said for the best residents. As the world of rental properties become more competitive a new adage is “Good residents move to where they are treated best”. A “good resident” is one that has an outstanding credit history, takes good care of the places they rent, and tends to stay put for an extended period of time. Proper-ty managers want to find and keep them.

One inexpensive way to do this is to reward their good track record. This is an effective method to rein-force positive behavior as well. Offer an end-of-the-year “rebate” to resi-dents who have an excellent record of paying rent on-time. You might also consider a “thank you incen-tive” at the end of their annual lease or start date. More owners are will-ing to consider offering an at least a 3% annual discount to prospects who either pay a year’s worth of rent or pay on a semi-annual basis. That’s better than the yield of a 10-year bond!

Also make it a policy to discour-age your owner-clients from renting to relatives or friends. Unless you don’t need the rent or the relation-ship reconsider such decisions which

invariably backfire. One of my read-ers reminded me of this important, prudent policy when she wrote, “Five years ago I made a mistake let-ting my daughter move in to one of my rental units. “Half the time I am pulling and fighting for her to pay the $1000.00 rent for a two bedroom apt. I am planning to evict through a court order.” A no-cost preventive policy would have saved a small for-tune.

Here are some other ways to attract good renters to fill any vacancies you have.1. Make the bathrooms look spar-

kling clean, sanitized, updated. Replace discolored caulking, grouting, rust, and deteriorating plumbing. Be sure the lighting is more than adequate.

2. One manager suggested tile backsplash be installed in kitch-ens and bathrooms. She said, “It looks awesome, cleans easily, protects walls, adds color/inter-est, reduces painting.”

3. Old English scratch cover and polish make wood cabinets, wood floors look new again. Replace damaged areas, burns, stains, or other unsightly areas of the kitchen counters. You’ll

recoup the cost with a justifiable rental rate plus attract more of the good residents.

4. Units that smell naturally pleas-ant are more inviting. A reader shared that they like to use sub-tle air fresheners/deodorizers with neutral smells like “clean laundry”, a very subtle pine, cin-namon, or gingerbread to make it feel homey. The key is to always keep the scent subtle. An overwhelming scent can be just as offensive as an unpleasant one.

5. Paint the unit numbers on desig-nated parking spots. Make cer-tain the parking area has good security lighting which also per-tains to halls, landings, and all common areas.

Outstanding residents will want to live where they are treated best. If you want to attract and keep them go out of your way as property man-agers to make them feel appreciated.

by Marc CourtenayPublished Courtesy of PropertyManager.com

Inexpensive Ways to Attract Good Residents



Zillow's January Real Estate Market Reportsi.

In Kansas City, for example the Zillow Rent Index (ZRI)ii grew 8.5 percent year-over-year in January, more than twice the national pace and faster than markets where rap-idly growing rents are an old story, including Seattle, Boston and Los

Angeles.Two years ago, when West Coast

rents were already soaring, rental growth in St. Louis was flat and even falling. But between January 2014 and January 2015, rents there rose 4.2 percent. The fastest growing rent in the country in January 2015 was in San Francisco, where median rent

was up 15 percent year-over-year for the fourth month in a row.

U.S. rents were up 3.3 percent year-over-year in January, near the histori-cal norm. The fastest growing rental markets in January included Denver, Colo., Kansas City, Nashville, Tenn., Portland, Ore., and Charlotte, N.C.

Nationally, the Zillow Rent Index rose 3.3 percent year-over-year in January, and 0.4 percent from De-cember, to a median of $1,350. For years, demand for rentals has driven up rents, and income has not kept pace. Currently, Americans should expect to spend roughly 30 percent of their incomes on rentiii as op-posed to historic norms of around 25 percent. And the problem is far from over, according to more than 100 housing experts surveyed in the lat-est Zillow Home Price Expectations Surveyiv. More than half said they expected rental affordability to con-tinue to be a problem for at least two more years.

"Rental appreciation has been a freight train these past few years, chugging along without any appre-ciable slowdown. Since 2000, rents have grown roughly twice as fast as wages, and you don't have to be an economist to understand why that is hugely problematic," said Zillow Chief Economist Dr. Stan Humphries. "More than one-third of Americans are renters, and today's renters are tomorrow's buyers. For many cur-

rent renters, buying a home could mean both a lower and more stable monthly payment, but rising and in-creasingly unaffordable rents make it difficult to save for a down payment on a home. The rental market used to be and should remain a stepping-stone to homeownership. But given how widespread rental affordability problems have become, the rental market could be acting more like a barrier to buying. More supply will help ease the crunch, both from new construction and as current renters transition into homeownership, cre-ating more vacancies in existing de-velopments. But neither will happen overnight."

Nationally, home value growth continued to level off in January. The U.S. Zillow Home Value Indexv rose 0.2 percent from December and 5.4 percent year-over-year, to a median value of $178,500. Home values are expected to grow another 1.9 percent through January 2016, according to the Zillow Home Value Forecastvi. By the end of the year, Zillow expects growth in rents to outpace growth in home values.

– Zillow

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Metro Area January 2015 ZRI

YoY ZRI Change

January2015 ZHVI

YoY ZHVI Change

United States $1,350 3.3% $178,500 5.4%New York/N. New Jersey $2,331 2.1% $382,900 3.7%Los Angeles, CA $2,460 4.9% $529,600 4.3%Chicago, IL $1,609 -0.5% $187,500 3.6%Dallas-Fort Worth, TX $1,443 4.9% $153,600 8.3%Philadelphia, PA $1,546 2.1% $203,500 4.2%Houston, TX $1,497 5.9% $154,200 12.2%Washington, DC $2,103 1.3% $363,700 3.7%Miami-Fort Lauderdale, FL $1,779 2.8% $212,400 13.2%Atlanta, GA $1,233 4.3% $154,600 10.7%Boston, MA $2,149 4.6% $365,400 3.2%San Francisco, CA $3,055 14.9% $705,900 7.3%Detroit, MI $1,096 5.0% $114,900 7.6%Riverside, CA $1,665 4.2% $284,000 9.1%Phoenix, AZ $1,225 5.3% $203,200 5.6%Seattle, WA $1,834 4.9% $340,400 6.3%Minneapolis-St. Paul, MN $1,502 -0.3% $212,600 5.9%San Diego, CA $2,293 4.5% $470,600 4.1%St. Louis, MO $1,138 4.2% $131,500 2.8%Tampa, FL $1,268 3.9% $148,500 9.3%Baltimore, MD $1,713 1.5% $244,800 2.7%Denver, CO $1,827 10.2% $286,500 14.7%Pittsburgh, PA $1,124 4.9% $125,400 4.4%Portland, OR $1,587 7.2% $278,700 5.2%Sacramento, CA $1,629 4.6% $333,400 7.4%San Antonio, TX $1,299 4.3% $145,700 5.4%Orlando, FL $1,311 2.1% $169,800 9.1%Cincinnati, OH $1,208 3.7% $137,700 4.6%Cleveland, OH $1,167 4.2% $120,500 2.2%Kansas City, MO $1,214 8.5% $138,400 5.9%Las Vegas, NV $1,196 1.6% $186,600 10.5%San Jose, CA $3,190 13.4% $842,700 10.6%Columbus, OH $1,251 2.8% $146,100 4.9%Charlotte, NC $1,235 6.1% $158,000 5.4%Indianapolis, IN $1,193 1.6% $128,200 -0.9%Austin, TX $1,657 7.0% $222,600 10.8%



Poised for Growth ..continued from page 2

Secret ShopperAsk TheNorthwestNorthwest

Many apartment communi-ties have staff changes on the weekends. Some

property management companies use part-time leasing consultants or “floaters” to fill in on the weekends or to work back and forth between two or more communities. This can be a great partnership and help keep payroll expenses down OR it can cost rentals at your community. It all depends on quality communication, as

the following question will attest:

Q: I was hired to be a “floater” at several different properties. While I love the variety, I really don’t feel like I am an important part of the staff at any of the places where I work. I am not always kept current on apartment availability or the status of different problems that come up. When I ask questions to try to keep myself informed, many times I am told: “Don’t worry about it. You’re only here on the weekends.” I feel frustrated, but don’t know what I can do.

A: It sounds to me like you are on a team that has not filled you in on the game plan! This is very unfortunate, especially in a business where there can be moment by moment changes, due to rentals, res-ident problems and maintenance emergencies. I would advise you to put your concerns in writing; in a positive manner; and share them with the manager and/or property supervisor. For those of you who actively employ “floaters” or who share employees between properties,

I would recommend leaving detailed notes on a weekly basis to recap what has happened in their absence. Of course whenever possible, these employees should be included in staff meetings and receive copies of correspondence which will keep them up to date on the happenings at each of the communities where they work.

How do you make sure that the same quality of service being pro-vided Monday through Friday car-


Retail MarketsVacancy rates in the retail market

are expected to decline from 9.7 per-cent currently to 9.5 percent in the first quarter of 2016.

Currently, the markets with the lowest retail vacancy rates include San Francisco, at 3.0 percent; Fairfield County, Conn., and San Jose, Calif., at 4.5 percent; Long Island, N.Y., 4.9 percent; and Orange County, Calif., at 5.0 percent.

Average retail rents are forecast to rise 2.5 percent in 2015 and 3.1 per-cent next year. Net absorption of

retail space is likely to total 15.7 mil-lion square feet this year and jump to 20.6 million in 2016.

Multifamily MarketsThe apartment rental market

should see vacancy rates slightly increase from 4.1 percent currently to 4.3 percent in the first quarter of 2016. Vacancy rates below 5 percent are generally considered a landlord's market, with demand justifying higher rent.

Areas with the lowest multifamily vacancy rates currently are Sacramento, Calif., 2.5 percent; Orange County, Calif., 2.6 percent;

Hartford, Conn., and Oakland-East Bay at 2.7 percent; and Rochester, N.Y., at 2.8 percent.

Average apartment rents are pro-jected to rise 3.7 percent this year and 3.6 percent in 2016. Multifamily net absorption is expected to total 171,978 units in 2015 and 157,168

next year.

SOURCE National Association of Realtors

Check us out onlinewww.rentalhousingjournal.com



In spring, focus on freshening up your rental property and protect-ing the dwelling against the sea-

son's strong winds and rains. Use this time of the year to thoroughly clean and care for the home's interior.

Outdoor Tasks:1. Clean gutters and downspouts.

2. Inspect roof and chimney for cracks and damage.

3. Wash the exterior of all windows.

4. Install missing screens on win-dows and doors. Repair as need-ed.

5. Fertilize the lawn.

6. Check decks for loose boards, railings, or stairs.

7. Professionally service heating and cooling units.

8. Check the foundation for crack-ing as well as for insect damage.

9. Remove foundation vent covers and spigot covers.

Indoor Tasks:10. Test all smoke and carbon mon-

oxide detectors

11. If the basement has a sump pump, test it by dumping a large bucket of water into the basin of the sump pump. This should activate the sump pump. If it does not switch on or if it's not-pumping water, it may need to be serviced by a professional. Also, check for and remove any debris

and make sure there are no leaks.

12. Assess the need for blind repair, cleaning or replacement.

13. Repair or replace broken or miss-ing kitchen cupboard hardware.

14. Check the attic for signs of mois-ture and water stains.

15. Check walls for condensation and mildew.

16. Check electrical panel for rust, make sure circuit breakers are operating correctly.

17. Clean dryer vents.

18. Clean or replace furnace filters.Check clothes washer hoses for cracks or swelling.

19. Check all faucets for leaks or

slow drips. Detach and flush aer-ators.

20. Maintain clean drains by pouring one-half-cup baking soda fol-lowed by one-half-cup white vin-egar into each. After 10 minutes, flush with boiling water.

Katie Poole–Hussa is a Licensed Property Manager, Continuing

Education Provider and

Principal at Smart Property Management in Portland, OR. She can

be reached with

questions or comments at [email protected]

Spring Maintenance Checklist

Strong Job Growth Foreshadows Solid Full-Year Economic Growth

Robust Hiring and Firming Income Growth Expected to Boost Housing Recovery

The economy is poised for a pickup in growth in 2015 amid a strengthening employment

sector, rising income growth, and de-clining commodity prices, according to Fannie Mae's Economic & Strate-gic Research (ESR) Group. The labor market has started the year on an upbeat note and is expected to lift consumer confidence, in turn help-ing to boost consumer spending, manufacturing activity, and the pace of the housing recovery. Economic growth may face some headwinds as a strong U.S. dollar weighs on the trade deficit. However, the economy is expected to climb to 2.9 percent for the full year, up from 2.5 percent growth in 2014.

"Our forecast calls for an increase in economic growth to 2.9 percent for 2015, which is a slight downward adjustment from our prior forecast but solid improvement nonetheless," said Fannie Mae Chief Economist Doug Duncan. "Although we are beginning this year at a more modest pace compared to the above-trend numbers seen at mid-year 2014, the country's aggregate income has ben-efitted from the improving labor market, which, combined with low gasoline prices, should help drive higher auto sales and overall con-sumer spending throughout 2015."

"We expect housing to shift up a gear in 2015 following the uneven and ultimately disappointing activi-ty last year," said Duncan. "Our fore-cast calls for a number of factors, including strong hiring and income growth, stabilized housing afford-ability, and modestly easing lending standards, to translate into improv-ing housing demand throughout the year. We continue to anticipate that the Fed will begin to hike short-term interest rates later this year, although

weak global economic growth and geopolitical headwinds will likely limit the rise in long-term interest rates. We expect total home sales to increase by approximately 6.0 per-

cent for 2015, with total single-family mortgage production climbing to approximately $1.2 trillion. Total sin-gle-family mortgage debt outstand-ing should be relatively flat this year

before picking up gradually in 2016 and 2017."

– Fannie Mae



Growth Foreshadows ...continued from front page

market, which, combined with low gasoline prices, should help drive higher auto sales and overall con-sumer spending throughout 2015."

"We expect housing to shift up a gear in 2015 following the uneven and ultimately disappointing activi-ty last year," said Duncan. "Our fore-cast calls for a number of factors, including strong hiring and income growth, stabilized housing afford-ability, and modestly easing lending standards, to translate into improv-ing housing demand throughout the year. We continue to anticipate that the Fed will begin to hike short-term interest rates later this year, although

weak global economic growth and geopolitical headwinds will likely limit the rise in long-term interest rates. We expect total home sales to increase by approximately 6.0 per-cent for 2015, with total single-family mortgage production climbing to approximately $1.2 trillion. Total sin-gle-family mortgage debt outstand-ing should be relatively flat this year before picking up gradually in 2016 and 2017."

SOURCE Fannie Mae

The Smoke Free ..continued from front page

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ries over on the weekend? What happens when a manager or leasing consultant goes on vacation or gets sick, and someone from another community fills in? Do you have an established way to communicate what is rent ready, as well as any pending resident issues? It’s hard to function as a team if all the players are not “well-equipped.” Ultimately, the ability to communicate effective-ly with part-time or weekend staff could make or break your leasing ratio for the week. After all, the weekends are typically the busiest days for apartment hunting. Are your part-timers and weekend float-ers fixing

to “fumble the ball” or have they been set up to “score rentals?”

If you are interested in leasing training or have a question or con-cern that you would like to see addressed, please reach out to me via e-mail. Otherwise, please contact Jancyn for your employee evaluation needs: www.jancyn.com

ASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica

Former owner of Shoptalk Service Evaluations

Consultant to Jancyn Evaluation Shops

Phone: 425-424-8870E-mail: [email protected]

Copyright Joyce (Kirby) Bica

Secret Shopper ..continued from page 6

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repairs, and replacement; reduces energy consumption; and may re-duce insurance costs. One public housing authority recently reported spending $5,548 to refurbish a tobac-co smoke-damaged unit. The cost to refurbish a similar non-smoking unit was less than half according to the same American Lung Association study. The Fort Collins Housing Au-thority estimated that their no-smok-ing policy will save the city $100,000.

Third, allowing smoking in mul-tiunit housing can increase the risk of fire. In Colorado residential fires caused by cigarettes in 2010 repre-sented 36% of all residential fire fa-talities, 14% of fire-related injuries, and 7% of all residential property losses. That same year two buildings owned by the Fort Collins Housing authority were burned due to a ciga-rette.

Implementing a no-smoking policy is not a difficult process with good planning. There are many free resources available to help managers and owners plan for and implement a no-smoking policy. At mysmoke-freehousing.org you will find tips on how to implement a policy; sample policies, surveys; compliance and enforcement tips; HUD toolkits and memos, free signs, health informa-tion about secondhand tobacco and marijuana smoke; educational mate-rials and other Web resources.

The tobacco-prevention team at

Denver Public Health (DPH) and other county health departments have been assisting housing provid-ers with all phases of smoke-free pol-icy implementation, free of charge. In the last year DPH staff has worked with Kappa Management to transi-tion no-smoking policies in two of their properties.

“The staff at Denver Health was very helpful and provided hands-on assistance with resources, train-ing, referrals, and dialogue with residents,” said service coordinator Mikel-Claire Penick.

On April 23, 2015 Denver Health will be hosting the 2015 Clearing the Air: Tools, Tips, and Resources for Smoke-Free Living summit at the Denver Marriott West. The free con-ference will provide sessions on the writing, implementing, supporting and enforcing smoke-free housing policies. For more information call Teddy Montoya at 303-602-3684 or send an e-mail to [email protected]

Pete Bialick is the President of the Group to Alleviate Smoking Pollu-tion and an expert on smoke-free housing. He can be reached at 303-444-9799 or by e-mail through www.gaspforair.org

colorado rentla housing journal - march 2015

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