metro rental housing journal - march 2015

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC PORTLAND/VANCOUVERPublished in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association

March 2015Rental Housing Journal Metro

3. Strong Job Growth Foreshadows Solid Full-Year Economic Growth

Vender Spotlight: NoAppFee.com

5. April Showers, Bring May Flowers... and Moss

6. President’s Message: The Word on the Street

8. Screening Without Social Security Numbers: There are Options!

9. Seeking Customer Loyalty? Build Good Business Relationships

10. PAROA – Mind Your Business – Navigating Section 8 Forms and Processes

11. 5 Innovation Killers that Lurk Within Businesses

12. Strong Job Growth Foreshadows Solid Full-Year Economic Growth

14. National Survey Reveals 2015 Moving Plans For Renters

15. Property Management:

16. SECRET SHOPPER Q&A

17. Commercial Markets Poised for Growth Despite Weaker Global Economy

18. New Residential Water Heater Efficiency Standards

19. Spring Maintenance Checklist

20. Inexpensive Ways to Attract Good Residents

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

Maintenance personnel monthly.

Call 503-221-1260 for more info.

By: Anita Risberg, CCIM OmniVest LLC Commercial & Investment Real Estate

2015 promises to be another good year in the multifamily sector. The market is support-

ing increasing rents and property values. Sellers are enjoying lower cap rates on dispositions and buy-ers are seeing low interest rates for acquisitions.

Looking back at 2014 we can see a

positive trend for the upcoming 12 months of 2015. In 2014 Salem-Keizer continued to experience a decrease in vacancy rates. The vacancy factor has adjusted from 3.85% in 2013 to 2.90% by fall of 2014.

Average rent in Salem-Keizer for a 2 bedroom 1 bath unit with no amenities built 1990 or newer was $577.00. With amenities the rent was $691.00. Likewise average rent in Salem-Keizer for a 2 bedroom 1 bath unit with no amenities built after

1990 was $602.00. With amenities the rent was $654.00. Landlord conces-sions have decreased.

Although not as popular in Salem/Keizer as it is in Portland, some landlords are starting to bill back to tenants charges for water, sewer and garbage. In properties where landlords have been success-ful in billing utilities to tenants, the overall cost for these utilities has decreased. Tenants appear to be

January's fastest grow-ing rental markets in-cluded 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 per-cent.

In January, national home values rose at a slower pace, up 5.4 per-cent year-over-year, the ninth straight month of

slowing growth.

Median rents contin-ued rising nationwide in January, with rental appre-ciation in some small and even struggling housing markets catching up to the country's hottest areas, according to Zillow's January Real Estate Market Reportsi.

In Kansas City, for example the Zillow Rent Index (ZRI)ii grew 8.5 per-cent year-over-year in January, more than twice the national pace and fast-er than markets where rapidly growing rents are

Multifamily Markets Salem-Keizer 2014 Recap Summary

Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007

PRSRT STDUS Postage

PAIDPortland, OR Permit #5460

Portland Among Fastest Growing Rental Markets

Strong job growth is sustaining considerable demand for apart-ments in the metro and pushing

up rents. By the end of 2015, nearly 14,000 new units will have been add-ed to rental stock over the past four years, yet market wide vacancy will remain below 4 percent for the fourth consecutive year. A large portion of apartment demand is coming from young professionals desiring to live in an urban environment. The higher cost of city living, however, is gen-erating the need for more affordable housing options, including micro apartments. Micro units, which are typically less than 400 square feet, will soon be available in Northwest Portland, downtown and in the Hol-lywood District. At the other end of the spectrum, condo construction has resumed in the Pearl District. The well-appointed units will increase competition for nearby luxury rent-als. Apartment construction is also picking up in suburban areas, espe-cially where employment, transit, restaurants and shopping are close by.

Marcus Millichap.com

...continued on page 4

After Four Years of Elevated Construction,

Vacancy Will Finally Rise in Portland


2 Rental Housing Journal Metro • March 2015

RENTAL HOUSING JOURNAL METRO



IT’S JUST SMART BUSINESS

CASE STUDIES ABOUT MULTIFAMILY PROPERTIES

Energy Trust has helped hundreds of multifamily property owners and managers get more from their energy by saving them thousands in operating costs and improving their bottom line.

“We’ll save over $12,000 in energy bills each year because we upgraded to energy-ef cient

exhaust fans. Plus, Energy Trust of Oregon gave us $19,000 in cash incentives just for

upgrading. Our rst-year of energy savings, combined with Energy Trust cash incentives,

paid for our project costs.

Jeff Hart, senior maintenance specialist

College Housing Northwest • Portland, Oregon ”+Get more from your energy. To learn more visit www.energytrust.org/multifamily or call 1.877.510.2130.

Serving customers of Portland General Electric, Pacifi c Power, NW Natural and Cascade Natural Gas.



















































Rental Housing Journal Metro • March 2015 3


by Rix Quinn

Tyrone Poole stood in line, waiting for admit-tance to a Portland,

Oregon homeless shelter. He looked around and won-dered, “What in the world am I doing here?”

How he got there was a series of odd events. How he got out, and rebuilt his career, is a great American success story.

From constructing to firefighting

From his earliest days, Tyrone says, he was an ener-getic worker. His mom – an artist who created blueprints for a large building firm – helped him get a good con-struction job right out of high school.

“Soon I was making $17 an hour, much more than some of my friends who made minimum wage,” Tyrone says. “My next step was to train to be a mechanic, who made $20 an hour.

“One of my friends had a relative who worked as a fire-fighter, and really loved it. He encouraged me to take the entrance tests.

“I got admitted to the fire academy. But something ter-rible happened during my training.”

Rehabilitation“I was working with some

faulty training equipment several feet above the ground,” Tyrone remembers. “I took a bad fall. I tore liga-ments and muscles in my left leg and thigh, and destroyed the lymph nodes in that leg.

“I’ll be wearing compres-sion stockings on that leg for

the rest of my life, because I can’t fight infections. I was in rehab several months learn-ing to adjust to this.

“After the injury, a career with the fire department was impossible. I got a small insurance settlement. But I had to give up my apartment, and my car was repossessed,” Tyrone continues.

A ‘nightmare’ experience

“How did I end up at a shelter? I was actually throw-ing up at a bus stop because I had been on my feet too long, and had lost too much blood in my leg. I was light- headed and nauseous.

“I laid on the bus bench, and put my leg up on the arm of the bench. The police came, and thought I was drunk and trying to sleep there.

“They were going to take me to detox, but I told them what the problem was, and they asked me where I want-ed to go. I had no place to go.

“So, they took me to a shelter. That was the lowest point in my life. From a great job with a bright future, I’d moved to no job and no place

to live. “I was depressed and

angry, because I was a hard worker and eager to learn. Then I discovered something that changed my life.”

From homelessness to hope

“I made an important dis-covery during my first few days in the shelter. Most of the people were not druggies and alcoholics. They were just in a bad financial position.

“Some were there due to domestic violence or abuse problems. Some had been denied for food stamps. But the bottom line was: we all wanted out!

“So – because I wrote pret-ty well – I volunteered to work there as a housing coun-selor, writing letters to apart-ment complexes requesting housing. I became good at developing ‘award letters,’ helping folks find housing, and I was able to move out…but I continued to work as a counselor.

“My first step was to find out why people were being denied. Those reasons ranged from utility debt to property debt to no rental history to criminal charges.

“Working with families, I leaned all sorts of ways to give them second-chance opportunities. Then I wrote a workbook for the shelter about it. The book was a good idea, but new credit system changes demanded some-thing more dynamic, more omnipresent…like a web site.”

Bringing landlords and renters together

Working closely with the

city of Portland, Tyrone Poole developed a remarkable sys-tem that’s growing every day.

“NoAppFee.com removes the cost of multiple applica-tion fees for housing searches. Applicants pay a small one-time user fee that’s returned in the form of a discount cer-tificate off the first month’s rent. That fee is returned upon accepting a property match,” Tyrone explains.

“The program crosschecks the renter’s background with every single rental criteria, and tells each applicant which apartments are a match.

“Landlords quickly find tenants that match their crite-ria, without the hassle of con-ducting background and credit checks and interview-ing multiple unqualified ten-ants.

“Every day, we find thou-sands of families in shelters who qualify for housing. Now, with this computerized system, we can help both the renters and the landlords.”

Nationwide potential?Tyrone says that one day

he hopes NoAppFee.com can benefit the nation’s housing crisis, and build better lives for thousands who live in shelters.

For this creative thinker, a career setback became a life-changer. And for thousands of Oregon families, Tyrone’s work has been a life-saver.

For more details on the com-pany, call Tyrone at 503-421-

0566, or e-mail him at [email protected]. Or, go online to

www.noappfee.com.

Portland Housing Counselor Creates ‘Matching Service’ for Renters and Landlords

A 21st century approach: NoAppFee.com

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."

SOURCE Fannie Mae

Strong Job Growth Foreshadows Solid Full-Year Economic Growth

recruitPDX offers professional recruiting services for the Nortwest Business Culture.

SalesManagementAdministrationAccountingFinance

[email protected]

Is your company searching for top talent?

Robust Hiring and Firming Income Growth Expected to Boost Housing Recovery



Portland Among ... continued from front page

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 historical 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 December, 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 opposed to historic norms of around 25 per-cent. 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 increasingly unaffordable rents make it difficult to save for a down payment on a home. The rental mar-ket 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 home-ownership, creating more vacancies in existing developments. But nei-ther 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.

Metro Area Jan.2015 ZRI YoY ZRI change Jan.2015 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%

Your Multi-Family andCommercial Specialists

PaintingWood Repairs & ReplacementWrought Iron Fabrication& Welding RepairsDecks & Waterproo�ingStucco Repairs & ApplicationFence Repairs & InstallationProperty Inspections& Scope of Work Creation

www.empirepainting.com1-888-278-8200



April Showers, Bring May Flowers... and MossBy Brandon Vaughn, All-Clean! SoftWash

Known by many property managers as the scourge of the Northwest, roof moss can be a formidable enemy. Every year,

despite the brushing, and pounds of Moss-Off applied - the moss returns, seemingly stronger than ever.

And it's more than just an aes-thetic problem. "Moss can be detri-mental to asphalt shingle perfor-mance," says a maintenance bulletin from ARMA (Asphalt Roofing Manufacturer's Association). "Moss build-up can cause lateral water movement resulting in moisture damage to the roof deck or may even cause leaks."

So why is moss so prolific in the Northwest? About 40 years ago, roofing manufacturers began adding

limestone filler to roofing shingles, to help weigh them down and cut down the cost of using more expen-sive ceramic. The downside is that black algae and moss now feed on this limestone filler. Combined with our constant rain, we have the per-fect damp environment where moss, algae and lichen can really grow.

The Bigger ProblemRoof manufacturers know that

the moss plant's root systems can cause significant granule loss, lead-ing to premature roof failure. It's for this reason that manufacturers will actually void the warranty on roofs that have been neglected.

However, there is a bigger prob-lem. Most of methods used to remove moss in the Northwest, also void the roof warranty.

Brushing, scraping, pressure washing, even a low-pressure rinse of the moss, can void roof warran-

ties. The reason for this is premature granule loss. "We have seen granule loss from pressures as low as 150 PSI in previous claims," says a technical coordinator with GAF Roofing.

While brushing, scraping or rins-ing the moss may provide an imme-diate result, the damage done can take years of the lifespan of a roof. It's a short term solution to a long term problem. Frayed shingle edges, granule loss, pock marks - all hall-mark signs of damage caused by manual moss removal. And the very next year, the moss will re-grow, requiring more brushing or scraping,

causing more damage.So the question remains, how can

one effectively treat this moss with-out voiding the warranty?

Winning The BattleFirst off, one needs to think of

moss like a pest, not as a dirty stain that can be scrubbed or blasted away. Interestingly enough, Oregon requires companies who treat moss on roofs to be licensed with the Oregon Pesticide Division.

One common method used and recognized as a pesticide for roof

continued on page 5



President: John Sage • President Elect: Ron Garcia • Past President: Elizabeth Carpenter • Vice President: Robin LashbaughSecretary: Lynne Whitney • Treasurer: Elaine Elsea • Office Manager: Cari Pierce

10520 NE Weidler Portland, OR 97220 (503) 254-4723 • fax (503) 254-4821 [email protected] • www.rhaoregon.org.

John Sage RHAOregon PresidentPresident’s Message:

Recently, I volunteered to help with the Homeless Street Count in Multnomah County.

The count is conducted to gather the most accurate data for the delivery of services to the homeless. The fed-eral government picks one night out of the year; this year it was the night of Wednesday January 28th. The vol-unteers are instructed to ask the first question on the survey which is, “Did you or will you spend the eve-ning of Wednesday January 28th outside? Of course there are many variables to that answer and to what qualifies as having spent that night outside. But if they had, then there were a lot more questions to be asked if they were willing to partici-pate. There are volunteers that go out to different areas of the county and the survey is conducted over several days. That is the short ver-sion to explain what the Homeless Count survey does. An explanation of how it is conducted and why can’t begin to tell you the effect that it can have on those who volunteer to make it happen.

Since I was familiar with JOIN, I

chose my volunteer shift at their location. I arrived at 10:00 am on Thursday January 29th. RHA Oregon has partnered with JOIN and has been serving lunches to the homeless at JOIN once a month for the last year. RHA Oregon also sponsored a family with children, moving them from the streets into a home. I have had the opportunity to volunteer my time at JOIN. I have met some inter-esting people, both volunteers and individuals who were there to use the services that JOIN provides. Everyone is always polite, helpful and really appreciative that you are there to help and give of yourself. However, I had never really had the opportunity to have a meaningful conversation with any of the indi-viduals that I had met for the brief moment while they passed thru the line to get lunch. Usually it is just a quick “Hello”, or even just momen-tary eye contact and a nod of the head. So I really was looking for-ward to the chance to get to find out more about these people. And to be honest I was a little apprehensive as to what it could be like to ask some

of the rather personal questions that were part of the survey.

Anyway to make a long story short, I spoke with many interesting and thoughtful people that day. There were various reasons that led them to the life that they are leading. Some had been on the streets from a very young age and others only recently. There were families with children; some with younger chil-dren and some with teenagers. They have the same concerns that we do. How can I improve my life? What will tomorrow bring? How is my family doing? Are the Federal, State and Local governments listening to what my concerns are for our coun-try?

As I left after having completed my small part, I reflected on the interactions and conversations that I had that day. What was the effect that this would have on my opinions and actions in the years to come? Well, I’m not sure that I will ever be able to give it a simple answer. What I do know is that once you have spent time talking and getting to know another’s struggles, you have

a whole different filter from which to view your own world. In some ways the world gets a little smaller and larger at the same time.

Which leads to my last point: Our State legislative session has started in Salem this month. As always, we are getting reports from Cindy Robert, our lobbyist for RHA Oregon, about upcoming bills. Cindy does a great job keeping us informed about those bills, which can have an effect on how we conduct our business as property owners. I would encourage you to check your emails and read the UPDATE for important informa-tion. Also, please make sure that we have your current email address for alerts and calls to action that may be coming. With 1800 members we can be a strong voice in the state for our industry, but only if we are taking the opportunity to make our voice heard.

Sincerely, John Sage

President RHA OregonStegmann Insurance Agency Inc.

The Word on the Street



William MaxwellAssociate

National Multi Housing Group(503) 200-2063

[email protected]

Offices Throughout the U.S. and Canada www.MarcusMillichap.com

To access the largest exclusive inventory of propertiesor for confidential property evaluation, contact:

Marcus & Millichap was founded on the premise of making a market for each property we represent. Our proactive and targeted marketing campaigns, combined with unparalleled relationships with private and institutional investors, enable us to close more transactions than any other source. We provide:

n Unrivaled Transaction Expertise

n In-Depth Local Market Knowledge

n Industry’s Largest Sales Force

n Largest Pool of Investor Relationships

Creating and Preserving Wealthfor Our Clients, One Transaction at a Time

more mindful of usage and report plumbing problems and leaks more frequently.

With regard to sales activity, Salem/Keizer has enjoyed an increase in investor activity. Competition for apartment assets in Portland and elsewhere are driving investor demand to secondary and tertiary markets. Pricing seems to be less volatile in smaller markets out-side major metropolitan areas. The overall days on market as well has continued to decrease.

Addition Property Statistics

• The average number of days va-cant for 2014: spring 18 days and fall 49 days.

• The average rent per square foot: $1.00. Up from 2013.

• Landlords are billing back 56% of the tenants for utilities in the properties surveyed.

• Tenant paid utilities: Water 56.6%, Heat 98.5%, Garbage 51.9%

• Percentage of Landlord’s offer-ing incentives: 22.7% Spring 2014, decreasing to 16.3% Fall 2014.

New Construction ProjectsTenant demand for apartments

has continued to be strong. Developers have continued to begin new construction of apartment prop-erties in the Salem-Keizer markets. The following projects are a sample of the new projects being built: 108 units on Wiltsey Road, 134 units breaking ground on Davis Rd, 168 units on the former Boise Cascade site, 178 units off Gaffin Road and 204 units in Independence. There are 180 units proposed for Keizer Station. Absorption of new units is expected to be strong.

Sales Comps for 2014: Salem-Keizer 17 closed sale transactions. The following are a sample of trans-actions for 2014: Cambridge East and Stone Ridge Apartments, 226 units, $43,000.00 per unit, high level of deferred maintenance and high vacancy, sold for $9,718,000.00. Amber Manor Townhomes, 51 units, sold for $100,000.00 per unit or $5,100,000.00. Whitman Park Apartments, 92 units, sold for $46,904 per unit or $4,315,200.00. Logan Place, 86 units sold for $50,000.00 per unit or $4,300,000.00. Lastly Silverwood Apartments, 44

units sold for $68,182.00 per unit or $3,000,000.00.

2014 cap rates for recorded sales range from 6.44% to 8.0%. This is lower than 2013. Favorable interest rates and financing packages are fueling investor demand for quality multifamily properties. As investors and institutions chase and acquire Class A assets in the major metro-politan areas, the availability of these types of assets is decreasing. Competition for quality assets is high. Investors are beginning to look at secondary and tertiary markets to buy quality assets for their portfoli-os. This is a trend that is occurring nationwide. For the owners of large

properties of 100 plus units, who have been considering a sale, this is an optimum time to offer your prop-erty for sale.

For more details on individual sales comps or property data, please feel free

to call Anita Risberg, CCIM at 503-559-8513 or email at adrisberg@ccim.

net.

Multifamily Markets ...continued from front page

FULL SERVICE RESIDENTIAL PROPERTY MANAGEMENT OF HOMES, CONDOMINIUMS AND TOWNHOUSES

Serving the greater Portland Metro Area.PHONE: 503-232-5990

www.rappoldpropertymanagement.coEmail: [email protected]

Rappold Property Management, LLC


RENTAL HOUSING JOURNAL METROThe Fair Housing Council Of Oregon1221 SW Yamhill St., #305, Portland 97205503/453-4016www.fhco.org

Screening Without Social Security Numbers: There are Options!

By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon

FHCO often receives questions from both housing consumers and housing providers about

tenant screening for applicants who do not have a Social Security num-ber (SSN). With President Obama’s immigration action, approximately 4 million U.S. residents who are currently undocumented will have the opportunity to apply for work permits and SSNs. The campaign around Measure 88 (the “driver card” measure) also brought discus-sions of immigration in Oregon to the forefront last this fall.

Whatever your personal political position is on these recent events, the fact remains that many Oregon hous-ing seekers do not have an SSN, and many will still not even when the President’s programs are activated.

The fact is that the Fair Housing Act and Oregon anti-discrimination law apply to everyone present in the US, regardless of immigration status.

FHCO recognizes the importance of thorough tenant screening. Did you know that criminal history infor-mation can be acquired without an SSN and, of course, current and past landlords can provide rental history and references? Applicants may be able to provide other information such as proof of "x" number of recent months’ paid utility bills, rent, or other regular monthly bills that can show a pattern of timely payment.

Individuals who do not qualify for an SSN may often have an ITIN (Individual Taxpayer Identification Number). This number allows for reporting to the IRS and in some cases for opening other accounts. After having consulted with screen-ing companies and the credit bureaus, it does not appear that this will allow a credit report to be pulled in the same way that an SSN does.

What we suggest when an appli-cant has no SSN is to say “show me

what you can” rather than a flat “no.” At that point, your screening company should be able to give you an informed estimate about how much time and money an evaluation could cost. Costs may vary so shop your screening company. Once you have a cost estimate, inform the con-sumer and, if you wish and do so consistently, you may then pass this cost on to them if they want to con-tinue with the application.

NOTE: This is a deviation from offi-cial FHCO opinion in the past that higher costs for manual screening with-out a SSN should not be passed on to the applicant. At this point there isn’t local or federal case law to provide guidance;

however, we feel our current position is a reasonable balance between consum-ers’ rights and housing providers’ con-cerns. Case law has well established that it is inappropriate and illegal for a hous-ing provider to charge someone to have an assistance animal, or a change to a guest policy to have a caregiver visit however many days a week, etc. With respect to screening a tenant without SSN; however, we are not talking about a disability-related modification / accom-modation.

1Federally protected classes under the Fair Housing Act include: race, color, national origin, religion, sex, familial status (children), and disability. Oregon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Additional protected classes have been added in par-ticular geographic areas; visit FHCO.org/mission.htm and read the section entitled “View Local Protected Classes” for more information.

It is still our position that a refusal to review alternative documentation when a SSN is not available will

"The FHA and Oregon anti-discrimination law apply to everyone present in the

US, regardless of immigration status.

"A refusal to review alterna-tive documentation when a SSN is not available will

have a negative & disparate impact on individuals whose national origin is not the US, thereby having a disparate im-pact on that protected class.

continued on page 13

moss is zinc or copper sulfate. Zinc or copper sulfate can be a great pre-ventative if applied annually to the roofs, and should be considered as a regular maintenance method to keep roofs moss free. However it works poorly at removing moss that is actively growing.

To completely remove the moss the first time through, ARMA recom-mends a "SoftWashing" treatment. If treated and killed properly, roof moss will weather off the roof natu-rally, typically within 6 months, without any need for brushing, scraping or rinsing. This method is the gentlest way of removing moss - guaranteeing not to cause any roof damage. Thus the reason why the roof manufacturers recommend it.

And because the solution can be pumped upwards of 30' by a techni-cian with a hose and pump system, many roofs can actually be treated without walking on the roofs.

The best time of year to treat moss is in early spring before the moss begins to flourish with the spring rains. Once treated and killed, the pounding of the rains actually help speed up the moss decomposition and weather it off the roof quicker.

Moss can be a tough enemy, but with the right strategy and tools in your arsenal, controlling it will pay off in the long run. Proper roof main-tenance and cleaning can prolong the lifespan of a roof by double. Considering roof replacement is one of the most expensive maintenance items a property will encounter, some proactive maintenance is a worthwhile investment that will yield great returns.

April Showers... and Moss ...continued from page 5

Advertise in Rental Housing Journal METROCirculated to over 20,000 Apartment owners, On-site, and maintenance personnel monthly.

Call 503-221-1260 for more info.



16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 503-213-1281, 503-213-1288 Fax www.multifamilynw.orgScott Arena

President, Multifamily Northwest

Seeking Customer Loyalty? Build Good Business Relationships

Property manage-ment professionals operate within an

industry based upon the delivery of sound and consistent customer service. We believe that when most effective, good customer service results in profitability and cli-ent retention. As such, we are con-stantly striving to deliver top-level customer service through our sys-tems and practices. Ultimately we trust that this will lead to customer satisfaction. But is customer satisfac-tion enough to propagate long-term business growth and sustainability? Recent studies indicate that satisfac-tion alone will not lead to the ulti-mate goal: customer loyalty.

So we have customer satisfaction on one side of the coin and customer loyalty on the other. What is the dif-ference between these two concepts? Both relate to customer service but they are VERY DIFFERENT. Despite differences, the two are interdepen-dent. Both relate to customer reten-tion and both are driven by customer experiences.

Customer satisfaction is simply a customer’s sense of being satisfied. When content with service that is

consistent and meets expectations, they are happy. But satisfaction does not always equate to long-term devo-tion. Satisfied customers will stay – but only until a better alternative presents itself – even if their expecta-tions are being exceeded. There is no emotional connection or investment – and, as such, no commitment.

By contrast, customer loyalty is what drives customers to maintain your services, keep returning, and stay through thick and thin. Too many times we make the mistake of confusing satisfied customers with loyal ones. Much research over the years has indicated no connection exists between customer satisfaction and customer loyalty. None. Simply because a customer indicates high levels of satisfaction does not mean they are or will be loyal to you. Customer loyalty is anchored in emotional connection. They are invested, heart and mind, in what you are as a company and how they are a part of it. A sense of partnership replaces the customer definition. They are “all in” and committed to you.

What drives customer loyalty? One could argue that business rela-

tionships are an essential compo-nent. These are the relationships that go beyond the standard mindset of “get the sale and just maintain the account”. The types of relationships that foster and nurture loyalty are those that are built with care, effort and sense of purpose. The following are five steps that can help individu-als and organizations build strong relationships that breed loyalty:

-Be likable. Go out of your way to be friendly and helpful. Customers and clients want to be around people that make them feel good and posi-tive. Be real. Have a sense of humor and connect on more than just a busi-ness level. Use discretion, but con-nect with positive interaction. Ask about hobbies, trips, interests, family, etc. Find common ground, build chemistry, and connection will fol-low.

-Earn respect with professional-ism. Clients should look with admi-ration upon how you work, how you behave, and how you treat others. Are you competent? Organized? Do you follow-up? Are you among the

best in your profession? Endeavor to earn and maintain respect through steady disciplined practices.

-Be admirable in all you are as a person- not just who you are at work. Clients establish long-term devotion to people with whom they are proud to associate. Are you liv-ing a life worthy of other’s respect? How do you spend free time? Family events? Charity work? Relationships migrate to a deeper level when out-side interests and causes are shared and intersect.

-Be honest and forthcoming. Always. If a problem arises, catch it early. Communicate the details to a client or customer- and have a solu-tion ready. Apologize when neces-sary. Business practices move quick-ly and are subject to both visible and unforeseen events. Anticipate it. Deception or dishonesty will only lead to suspicion and destroy trust. Avoid short cuts. Make smart deci-sions. Honesty in business dealings will earn you respect, devoted cli-ents….and loyalty.

M041 OR Notice of Tampering with Alarm/Detector

This form was created to specifically to communicate tenant non-compliance regard-ing Smoke or Carbon Monoxide Alarms/Detectors. When ten-ants sign the Smoke/Carbon Monoxide Addendum they agree and acknowledge their responsibility to regularly test alarms, replace batteries when needed and to inform the land-lord immediately in writing with any malfunction. Tampering, disarming, or removing batteries are subject to a $250 fine per alarm, per occurrence. This statutory set fine is meant to be a deterrent from tampering and to empha-size safety dangers and liability risks of noncompliance.

WARNING: Your Rental Agreement, the rental rules and regulations, and the landlord-tenant laws require all residents to followbasic rules to protect the safety of all residents, prevent damage to property and retain a quality rental community. It has cometo our attention that you have removed or tampered with one or more properly functioning smoke alarm(s), smokedetector(s) or carbon monoxide detector(s).

Date & time of discovery of removal/tampering:__________________________________________________________________________________________________________________________________________________________________________

Location of removal/tampering:____________________________________________________________________________________________________________________________________________________________________________________________________________

Describe removal/tampering:_________________________________________________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

_______________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________________

Total number of alarm(s)/detector(s) that you removed or tampered with:__________________________________________

You must pay a noncompliance fee of $__________________________________________ per alarm/detector (not to exceed $250.00).

The total fee for the above listed noncompliance(s) is $__________________________________________. Payment is due immediately. Make paymentto Owner/Agent.

This notice was served on the date set forth above (check which applies):

c Personally on the Resident at ________________________________

c If the written Rental Agreement allows, posted on the main entrance to the dwelling unit and mailed first class mail

c Mailed first class mail only

You are required to discontinue the conduct listed above. Failure to pay any noncompliance fee, or any reoccurrence of thenoncompliance listed above, may result in termination of your tenancy.

DATE __________________________________________ PROPERTY NAME / NUMBER ___________________________________________________________________________________________________________________________________________________________________

RESIDENT NAME(S) ___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

___________________________________________________________________________ ___________________________________________________________________________ ___________________________________________________________________________

UNIT NUMBER ___________________________________ STREET ADDRESS ___________________________________________________________________________________________________________________________________________________________________________

CITY ___________________________________________________________________________________________________________________________________________________ STATE ___________________________________ ZIP _____________________________________________________________

ON SITE RESIDENT MAIN OFFICE (IF REQUIRED)

Form

M04

1 O

R C

opyr

ight

© 2

013

Mul

tifam

ily N

W® .

NO

T TO

BE

REP

RO

DU

CED

WIT

HO

UT

WR

ITTE

N P

ERM

ISSI

ON

. Rev

ised

11/

27/2

013.

THANK YOU FOR YOUR COOPERATION OWNER/AGENT ____________________________________________________________________________________________________________________

ADDRESS ____________________________________________________________________________________________________________________

____________________________________________________________________________________________________________________

TELEPHONE ____________________________________________________________________________________________________________________

X

OREGONNOTICE OF TAMPERING WITH ALARM/DETECTOR

TIME (am / pm)

Form of the Month

Multifamily NW

Upcoming Educational Opportunities 2/24/2015 NALP: Marketing & Maintaining Your Community

2/25/2015 Basic Electrical for Spanish Speakers

2/26/2015 CAM Human Resources Part 2

3/05/2015 New Hire Training (Portland, OR)

3/11/2015 CAM: Marketing

3/11/2015 Fair Housing 150

3/13/2015 It's the Law Lunchtime Series - Fair Housing Fundamentals: A Crash Course on Claims Avoidance

3/16/2015 NALP: Why Your Competition Matters

3/18/2015 Special Invite-Only Luncheon - "Follow You Anywhere: A tribute to the excellence exhibited by ACE Award nominees"

3/19/2015 Portland Maintenance Fair

3/25/2015 CAM: Property Maintenance for Managers

3/30/2015 Unit Inspections & Turnover Techniques

16083 SW Upper Boones Ferry Rd. Ste. 105 Tigard, OR 97224 ph: 503-213-1281 fax: 503-213-1288 [email protected]

Mark your calendar for the Spring 2015 Apartment Report Breakfast on Wednesday, April 15, 2015 at the

Multnomah Athletic Club from 7:30am-9:00am. Our distinguished panel of speakers will review the results of the latest Apartment Survey and share their valuable insights concerning various metropolitan markets. Multifamily NW would like to express appreciation to everyone who participated in the latest survey. Your cooperation makes this the most comprehensive study of its kind in the area.

Individual Registration Member $40 Non-member $50

Register at multifamilynw.org

Time: 7:30am to 9:00am Date: April 15, 2015 Location: Multnomah Athletic Club 1849 SW Salmon St. Portland, OR 97205

Please note registration begins at 7:00am and the breakfast promptly at 7:30am. Registration is required—seating is limited. Registration fees are non-refundable. Registrations within 5 days of the event are subject to availability and an additional $10 charge.

Apartment Report Breakfast

Sponsored by:




*Complete selection of user friendly property management forms, available pre-printed or online

*Effective legislative advocacy and monitoring

*Networking opportunities with other local landlords, managers and other industry leaders

*Educational programs and seminars on property management, landlord/tenant laws, on property management, landlord/tenant laws,

fair housing, evictions and more

Membership Inquiries – [email protected]

Phone 503-542-5120Fax 503-281-5644

Mon - Fri 8:00AM to 5:00PM

Servicing the Property Management Industry for over 30 Years

LOWEST PRICES GUARANTEED!

LARGEST SELECTION...

APPLIANCES • mATTRESSES • HDTVs

Pat Jennings33 years experience

Tony Kavanagh40 years experience

• Knowledgeable, experienced staff• Personal account managers• 7 day delivery & set-up• Free haul away of old appliances • Coin-Op laundry/Commercial Grade • Special pricing on mattresses and HDTVs

President - Christian Bryant, Vice President - Michael Ross, Secretary - Jill Maricich, Treasurer - Maren WintersPortland Area Rental Owners Association

www.PortlandAreaROA.comMembership questions - 503-364-5468

Email inquiries - [email protected]

By Guest Editor Cj Mann, Section 8 Housing Inspector and ROA Board Member

A single adult, over the age of 65 and living on Social Securi-ty benefits; a parent with two

children under the age of six; a vet-eran that has served and sacrificed; a student trying to get the education needed to get a good job; a disabled individual or couple struggling to make ends meet on Social Security disability payments; and families with children, fraught with the stress of paying bills, affording food, utili-ties, rent, and day-to-day expenses – this is the population of people that our agency serves. The Housing and Community Services Agency (HAC-SA) is part of the vital safety net that thousands of your neighbors depend on for their economic survival.

The most recent US Census esti-mated that one in four families here in Lane County are considered “low income.” That is, their income falls substantially below the median household income for their local

area. A direct result of the anti-pov-erty efforts nationwide beginning in the 1960’s, HACSA, has been con-tracting with the federal agency, Housing & Urban Development (HUD) to administer the Section 8 housing assistance program for decades. We began building and purchasing our own rental units for the Public Housing portion of our services way back then, and current-ly own and manage more than 1,000 units throughout Lane County. But our housing is not enough; we also rely heavily on private landlords like you. The Section 8 voucher program provides more than $10 million in rental payments to approximately 900 private landlords renting to more than 2,500 tenant families.

To join the program, low-income individuals apply and have their names added to our waiting list. Once their turn comes, eligible cli-ents are screened for income, crimi-nal history, and citizenship status, and then are required to attend a series of educational classes to learn the rules and regulations of the

Section 8 program, the rental pay-ment guidelines, and the basics of being responsible tenants. Upon completion of the final class the cli-ents earn their voucher.

The voucher is the family’s con-tract with the Housing Authority (HA), agreeing to follow the rules and regulations. In turn the HA agrees to make payments directly to landlords whose rental property has passed a Housing Quality Standards inspection. Prior to scheduling the property inspection, the tenant must be approved by you, their prospec-tive landlord, through whatever screening criteria you use for your tenants. If the prospective tenant is already a voucher holder HACSA will provide, at your request, the ten-ant’s current address and the name and address of the tenant’s current and prior landlords, if known.

When you are first approached by a prospective Section 8 tenant, they should have three forms in their pos-session to give to you: 1) their Voucher itself; 2) their Calculation Worksheet (which confirms the

amount of rent they can afford depending on rent amount and what utilities and appliances are includ-ed); and 3) their Request for Tenancy Approval (RTA).

Once approved, you, the land-lord, complete the (RTA) and fax or mail it to our office. If you need help filling out the form, please contact a member of the Inspection Team or the Housing Specialist listed on the voucher for assistance. After the completed form is received by the HA, the next step is the property inspection. The faster you get the form in, the sooner we can inspect. If you’re not sure that your property will pass the inspection or you want to do your best to ensure that it will, please check out our publication, “A Good Place to Live” available as a link on the ROA website (www.laneroa.com). This is a checklist of the items our team will be looking for. The Inspection Team (currently, Daniel Roth, Jon Wild and Cj Mann), makes every effort to inspect within 3-5 days of receiving the RTA. It may take a few more days if your prop-

Navigating Section 8 Forms and Processes

Mind Your BusinessTips for Better Rental Management

continued on page 19



SoldPropertiesSoldPropertiesSoldProperties

ApartmentBrokersApartmentBrokersApartmentBrokersPrePrePre‐‐‐SaleAnalysis•AssetManagementSaleAnalysis•AssetManagementSaleAnalysis•AssetManagement1031Exchanges•PropertyClinic1031Exchanges•PropertyClinic1031Exchanges•PropertyClinic

5200 SW Macadam Ave., Ste 300 • Portland, Oregon 972395200 SW Macadam Ave., Ste 300 • Portland, Oregon 972395200 SW Macadam Ave., Ste 300 • Portland, Oregon 97239p. 503.546.9390 • f . 503.546.9395 • p. 503.546.9390 • f . 503.546.9395 • p. 503.546.9390 • f . 503.546.9395 • josephbernard.netjosephbernard.netjosephbernard.net

Joseph ChaplikJoseph ChaplikJoseph Chaplik President/PrincipalBrokerPresident/PrincipalBrokerPresident/PrincipalBroker

$3,000,000$3,000,000$3,000,000‐‐‐42Units42Units42Units

$515,000$515,000$515,000‐‐‐12Units12Units12Units


ManymorepropertiesavailableonlineatManymorepropertiesavailableonlineatManymorepropertiesavailableonlineatjosephbernard.netjosephbernard.netjosephbernard.net

Oregon Washington Arizona


5 Innovation Killers that Lurk Within Businesses

The work of innovative think-ers is why the world has smartphones, laptop comput-

ers, toaster ovens and numerous other gadgets and creative ap-proaches to problem solving.

Yet groundbreaking ideas aren’t always welcome in the corporate world or within other institutions.

Instead, those who suggest a dif-ferent approach often find their ideas shot down by co-workers or blocked by an organizational system that is unwelcoming to change, says inter-national speaker and innovation consultant Dr. Neal Thornberry.

That doesn’t mean innovation can’t happen, though.

“The innovator needs to know how to operate in these less than friendly cultures without waiting for some miraculous transformation in corporate policy,” says Thornberry, author of the book “Innovation Judo: Disarming Roadblocks and Blockheads on the Way to Creativity.” (www.NealThornberry.com)

He says there are five innovation “killers” within organizations that a person with ideas can expect to con-front.

People. Sometime it’s an indi-vidual, sometimes it’s a group.

Regardless, people often resist inno-vation, and many times for illogical reasons. “The more rigid people reject innovation simply because they are uncomfortable with the new or don’t want to spend the energy to try something different,” Thornberry says. They may be quick to point out flaws in your ideas.

One way to counteract that, Thornberry says, is to be your own worst critic. Discover those flaws first and highlight them yourself. Then you can address how you plan to mitigate them, thus stealing the critics’ thunder, he says.

Politics You can usually get around one or two individuals who try to block your idea, but it’s more challenging when the organization is rife with politics. “I hate working in highly politicized organizations,” Thornberry says. “They make work a lot harder and make you spend considerable time on non-value-add-ing activities.” In fact, Thornberry devotes an entire chapter in his book to “Right Mindedness” so that inno-vators practicing his seven secret judo skills are not seen as innovating for personal gain or exploitation, but as enablers of company success.

Organizational design An out-of-whack organizational design usually is not generated on purpose or with malice, Thornberry says. Instead it develops over time, with one well-intentioned move after another leading to unintended con-sequences. Often the result is a pro-liferation of controls, along with structures and processes that create barriers to innovation.

When an idea is blocked by layers

of decision-making, one solution is to use leverage, Thornberry says. Enlist the aid of a customer who would benefit from the innovation, he says, because paying customers have huge leverage.

Company values Here the innovator has both a challenge and an opportunity. Many companies articulate their values, but don’t always live by them. “The upside for




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."

SOURCE Fannie Mae



Screening Without... continued from page 8

have a negative and disparate impact on individuals whose national origin is not the US, thereby having a dis-parate impact on that protected class. Therefore, a policy or practice of not accepting applicants because they do not have a SSN is not appropriate. That said, we feel that passing on actual additional costs of screening in a situation like this as a legitimate business expense that could be passed on to the applicant.

It should be noted that we never recommend folks (whether they are immigrants or not) lie or use a false identification number. If applicants provide false information, they risk denial (or eviction) on the basis of having lied on the application.

Technologies are changing, as are bank and lender policies, and it is important to be open to the opportu-nities that this may present for improved screening of individuals without SSNs. A presumption that those without a social security num-ber cannot use a bank or get certain loans or credit cards is incorrect. There are both large national banks and smaller community credit unions that work with these indi-viduals. Additionally, individuals without a SSN are able to request a copy of their own credit report through Experian (one of three main credit bureaus). Experian will attempt to use data points such as name, date of birth, current and last addresses, and any transactions with

an ITIN, to provide the individual with a report. The individual can then present this to a prospective landlord who is willing to accept a self-requested report.

Housing providers need to be careful, too, of assumptions about household make-up based on race or national origin. If a landlord has a problem with residents who do not comply with the rental contract, they should deal with that appropriately under landlord / tenant law. Landlords should not assume “cer-tain kinds of people” have larger or extended families that will exceed reasonable occupancy policies, or be louder or cause greater damage to the property than other households, etc. and base their rental decisions on such assumptions. Landlords should, instead, set reasonable occupancy standards (http://www.fhco.org/occupancy.htm) and enforce them equally across all of their units with all applicants and tenants. Landlords should not presume “those people” (insert any protected class you wish) would necessarily behave inappro-priately or violate contract terms. Enforcement of rules should be con-sistent, based on the behavior the housing provider is concerned about and, when the rules are violated, the situations should be handled consis-tently.

We will continue to consult with other fair housing organizations and industry groups to assure we remain

confident that our position on non-SSN-screening is reasonable.

If you have questions about a situa-tion you have encountered, please con-

sider us a resource and contact us! Start on our website at www.FHCO.

org/national_origin.htm, as well as www.FHCO.org/hs_provider_info.htm.

This article brought to you by the Fair Housing Council; a civil rights organization. All rights reserved © 2015. Write [email protected] to

reprint articles or inquire about ongo-ing content for your own publication.

To learn more… Learn more about fair housing and / or sign up for our

free, periodic newsletter at www.

FHCO.org.Qs about this article? ‘Interested in

articles for your company or trade asso-ciation? Contact Jo Becker at [email protected] or 800/424-3247 Ext. 150

Want to schedule an in-office fair housing training program or speaker for

corporate or association functions? Visit www.FHCO.org/pdfs/classlist.pdf

See you at the 2015 Maintenance Fair

Visit the City of Portland’s Multifamily Waste Reduction staff at Metro’s Recycle at Home booth.

MF NW Maintenance FairThursday, March 19, 20157:30 a.m. – 4 p.m.Portland Convention Center, 777 NE Martin Luther King Blvd.

Get free materials and support to make your job easier. Keep your garbage and recycling program working for you and your residents.

Multifamily Resource Line: 503-823-7224

Online: www.portlandoregon.gov/bps/multifamily

Email: [email protected]



PropertyManager.com a Service of AppFolio

While rents continue to rise around the country, the rate of growth is slowly

decreasing. According to CoStar, the real estate industry's leading pro-vider of information, analytics and online marketplaces, the average cost of rent nationwide increased by 0.64 percent to $1,194 a month in the fourth quarter of 2014—down from a .89 percent increase the previous quarter. At the same time, demand for apartments remains strong de-spite a slight uptick in the vacancy rate to 4.7 percent in the fourth quarter of 2014 from 4.3 percent the previous quarter. CoStar predicts new apartment supply will also peak this year at more than 300,000

units. Apartments.com conducted its annual survey of more than 5,200 renters nationwide to deter-mine how the healthy rental market would affect their moving plans this year. The survey reveals why renters are choosing to move or stay in their apartments, why more homeowners are turning to renting and the most popular apartment amenities.

Affordability, changes in marital and relationship status and wanting more space topped the list of reasons why respondents said they are mov-ing this year. Three quarters of rent-ers surveyed also indicated they are planning to spend either the same or less on rent despite current demand and increasing rents. When asked

how much renters are currently spending on rent, more than 60 per-cent said less than $1,000 a month— just under the national average—and 35 percent are spending between $1,000 and $2,000.

"With new supply slated to hit this year, it is yet to be seen whether or not this will result in decreasing rents," said Brad Long, president of Apartments.com. "While construc-tion is ramping up, demand is still strong, partly in response to many would-be homeowners turning to renting as a more viable financial option. In fact, the most popular rea-sons homeowners gave for why they are renting this year are because they lost their home to a foreclosure or

divorce (up 4.3 percent from 2014), they can no longer afford their home, or they are downsizing."

Why are people moving in 2015? And, why aren't they?

Affordability, relationship chang-es, more space and family played a big role in renters' decisions to move this year. Other reasons renters gave for moving include being closer to school, needing accommodations for senior living or retirement, and sell-ing property.

According to the survey, the top five reasons renters are moving in 2015 are:

1. More affordable apartment: 24.7 percent

2. Change in marital/relationship status (getting married/breaking up): 9.4 percent

3. Moving into a bigger apartment: 9.3 percent

4. Moving closer or farther away from family: 8.3 percent

5. Need a smaller apartment or want to live alone: 7.7 percentLocation played a strong role in

keeping renters in place, as seven out of 10 renters said they are not mov-ing this year because they like their apartment building and neighbor-hood.

When asked to check all that apply, the top five reasons renters said they are not moving in 2015:

1. I like my neighborhood: 36.9 per-cent

2. I can't afford to move: 34.9 percent

3. I like my apartment building: 34 percent

4. I already moved: 25.8 percent

5. I'm secure in my job: 13.5 percent

It should not come as too much of a surprise that bargains are biggest motivators when renters were asked to choose all that apply for getting them to leave their current apart-ment "immediately," regardless of their original moving plans.

1. Big discount (20 percent or more) on monthly rent for the full term of lease: 68.4 percent

2. Free rent for a month: 48.7 percent

National Survey Reveals 2015 Moving Plans For Renters

Affordability, Relationship Changes and More Space Top Reasons Why Renters are Moving;Despite Increasing Rents and Apartment Demand, Three Quarters of Renters Said They are Not Spending More on Rent

FAST &

FRIENDLY

NEAT &

CLEAN

SERVICE

★ ★ ★

ENSURE

YOUR

CHIMNEY

IS SAFE

AND

PROPERLY

MAINTAINED

★ ★ ★

LICENSED

BONDED

INSURED

OR #49750

WA LICENSE #

PORTCI005PZ

All Work Guaranteed and Done By Experienced Professionals

SPECIAL DISCOUNTS ON

VOLUME UNITS SERVICED

FOR CHIMNEY & DRYER VENT

CLEANINGS AND INSPECTIONS!

Call today for a

FREE ESTIMATEon all chimney repairs and cleanings:

SPECIAL D ISCOUNT

ON ANY MANUFACTURED FIREPLACE PANEL SUPPLIED AND INSTALLED.

PORTLAND CHIMNEY® (503) 256-9140

APARTMENT SERVICES:Manufactured Fireplace PanelsChimney cleaning and inspectionsChimney CapsChimney Chase coversDryer Vent cleaning and inspections

Mention this ad

10% off ...continued on page 23



INVEST IN APARTMENTS!

Jason Waxberg (503) 327-8237

136 NE 28th Avenue, Portland, OR 97232

Longview, WA - 10 Units

The Westbrook AptsLongview, WA - 65 Units

www.equitypacificrealestate.com

· Strong Cash Flow!· Excellent 1BR, 2BR & 3BR Unit Mix· Many New Upgrades Throughout· Attractive Curb Appeal

· Solid Cash Flow!· Turn-Key 10-Plex on Corner Lot· Nicely Updated Units· All Electric Individually Metered· Great Unit Mix

Higher rents and low interest rates are creating strong cash flow opporrtunities!

Call today for a market analysis on your property.

New Listing!

New Listing!

Mention this ad & receive

5% discount!

Property Management: 21 Low Cost Renewal Concessions

What is your customer acqui-sition costs? What does it costs the property to obtain

a new lease? There is advertising, overhead and staff time- all part of the expense for obtaining a new resident. Then there is the customer retention costs. This article is about retention costs and the use of concessions. I am not suggesting auto-offering conces-sions as a standard business practice. They are just another tool in our tool box for use when appropriate.

Before getting to concessions an assessment of “why” is appropriate. Why is there vacancy of X? Is your advertising and web presence in order? What is your showing-to-lease ratio? Is staff trained and up to date on tactics? Concessions for a multifamily assets are not a given. Concessions are often a function of competitive factors from competitive properties in the same submarket as the subject asset. For example, your property may have more in-place amenities than neighboring proper-ties yet have a higher vacancy rate in 2-bed’s versus 1-bed’s. In this instance, your renewal concessions will be offered only on two-bed rooms with none offered on one-bedrooms.

Gaining further insight into what your competitors are offering requires surveying those properties. This is best accomplished by a third-party service provider to assure independent outcomes. Many “gift-

card” options can be purchased at a small discount to face value if pur-chased in bulk, particularly with local vendors that offer personal ser-vices. They are gaining a new cus-tomer, after all.

There is a reason for the order of concession below; the top five add value to the property in some way; the first five concessions are either property upgrades or increase lon-gevity of in-place fixtures. This list provides you with a starting point for selecting concessions to gain renewals.1. Refresh paint or adding an accent

wall2. Replacing older living room or

dining room light fixtures3. Replacing standard light fixtures

with ceiling fans4. Carpet Cleaning5. Replace older blinds6. Car wash gift card7. Restaurant Gift Cards8. Spa treatments9. Go phones / trac phones gift

cards10. A gift to a charity selected by the

Resident11. Free parking for one month12. Dry cleaning gift card13. Dog grooming14. Cooking classes15. Hair cuts16. Shoe shines17. Movie tickets18. Specialty ice cream19. Apple Store

20. Oil change21. Wal-Mart/Target/Kohl’s/

Macy’s/22. Pizza (always popular)

When selecting local vendors for concessions, consider proximity to the multifamily asset; the closer the better as these will be perceived as having high value because the Resident will know exactly where the vendor is located.

Concession should have a similar perceived value- not necessarily an equal value.

Offer no more than two at one time. Decide on an initial set of two concessions and test for responsive-ness. Keep testing until you have two that people respond to equally well.

There may be a difference in response rates due to the season or weather. People love cooking classes during cold months and car washes in summer, for example. Residents will give to a charity during the holi-days or select the spa treatment to give as a gift. There is no reason to guess when you can test. Testing will lead you to the right offers at the right time.

by John Wilhoit Jr. Published courtesy of

MultifamilyInsight.com

Customer Loyalty? ...continued from page 8

-Maintain the relationship even after the business relationship ends. Even after a contract or service agree-ment ends (assuming upon good terms) stay in touch and communi-cate with the customer. Although your services may not be required now, let them know you are always available when needed in the future. Do not allow the relationship to dis-integrate simply because the “busi-ness benefit” has disappeared. This a valuable time to show a client your devotion goes beyond just seeking remuneration for services. This dem-onstrates commitment and a willing-ness to be ready for service when needed down the road.

In summary, good relationships with clients that are built upon a foundation of trust will help you weather the ups-and-downs of busi-ness cycles and minimize conflicts when problems arise. Such relation-ships are catalysts in a well-rounded life and successful career. Remain faithful to your principles, don’t compromise by seeking short cuts, heed your moral compass, and you will be rewarded with happy cus-tomers who are not only satisfied…they are loyal.



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-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

GOLF CAR SALES & SERVICE503-647-5001 - 800-331-9910

----------PACIFIC NW YAMAHA GOLF &

UTILITY VEHICLES

Selling New & Used Utility & Leasing VehiclesProviding Service & Repair on ALL Major Brands

Specializing in 4-30 Unit Apartments

Thinking of sellingyour apartment?

Call Patrick at 503-953-0672

Serving Multnomah County, Washington County, Clackamas County, and Clark County

Thinking of Buying

another apartment?

BU

YER PROGRAM

APARTMENT

www.PortlandApartmentProperties.com



Commercial Markets Poised for Growth Despite Weaker Global Economy

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 vacancy rate for industrial space is expected to decline 0.4 per-cent and retail space 0.3 percent as manufacturers boost production for goods and services and consumers slightly accelerate their spending. A swath of new apartment construction coming onto the market is forecast to lead to an uptick (0.1 percent) in the multifamily 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 weak-nesses in the global economy will likely impact exports. "Sluggishness overseas alongside a strengthening U.S. dollar will widen the trade defi-cit and slow economic growth poten-tial," he said. "However, GDP is fore-casted to come in around 3 percent in 2015 – the highest since the recession. Improvements in housing and com-mercial real estate market 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 multi-family 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-


EFFECTIVE PROPERTY MANAGEMENT THROUGH FORMS

LANDLORDING 101INSTRUCTOR MARK PASSANNANTE, ATTORNEY AT LAW

Come hear the venerable Mark Passannante, past President of RHA Oregon and rental property owner himself give step-by-step instruction, from the application process through terminating of tenancy, learn all the essentials of property management through a framework of forms geared for Oregon law. This class is an excellent training foundation for beginners and serves as an exceptional review of current laws and management for experienced landlords.

Do I have to have a screening criteria?What should I have on my applicant screening criteria?

Do I have to send out a denial to every applicant I screen? Can my tenant deny me entry even when I have given proper 24-hour notice to enter? Is charging a pet deposit on a service animal legal? Is there a legal deadline for the Final Accounting Form? How much of security deposit is enough? How do I screen Section 8 applicants for income?

Pre-registration is required. If you register for a class and then do not cancel at least 48 hours before the class and/or do not show you will be charged the full price of the class.

Six Continuing Education credits are available with this seminar ~

Call NOW to register! (503) 254-4723

All Day Seminar 9am - 4:30pm (lunch included) April 25, 2015 @ The Monarch Hotel, 12566 Southeast 93rd Avenue, Clackamas OR 97015 COST: Members $120 per person or Non-member $170 per person* Register by April 20th and receive a $20.00 discount

Brought to you by:

Have legal rental questions? Get your answers here!

1/8 Page4 7/8” x 3 5/8” bwOn-Site4

ON-SITE-NW SEATTLEVALLEY, METRO, ARIZONA APT. NEWSSalsbury IndustriesFeb, Apr, Jun, Aug, Oct, Dec

1010 East 62nd Street, Los Angeles, CA 90001-1598Phone: 1-800-624-5269 • Fax: 1-800-624-5299

1/8 Page4 7/8” x 3 5/8” bwOn-Site3a

ON-SITEVALLEY, METRO, ARIZONA APT. NEWSSalsbury Industries

Jan, Mar, May, Jul, Sep, Nov,

The Industry Leader in Quality

Order Factory Direct!Contact Us Today for a Free Catalog!

1010 East 62nd Street, Los Angeles, CA 90001-1598Phone: 1-800-624-5269 • Fax: 1-800-624-5299

Octoberp September

p



LANDLORD-FRIENDLY RENTAL FORMS

Now 4 Convenient Ways to Get Forms

1. Visit www.rhaoregon.org, go to the “tools” page for hard copy forms mailed to you

2. Visit www.rhaoregon.org, go to the tools page for individual fillable forms that you can download in PDF directly to your computer.

3. Call 503-254-4723 and order forms over the phone with one of our friendly representatives.

4. Come visit us at 10520 NE Weidler St. Portland, OR 97220 for fast and friendly service.

RHAOregon Rental Housing Alliance Oregon

www.rhaoregon.org10520 Portland, OR 97220

503-254-4723

Attorney Drawn Forms for all Your Rental Needs!

89169-rhoa-forms-2014-10.indd 1 10/2/14 2:53 AM

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

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



503-281-6390Cell (503) 349-7208 • Lic - Bond - Ins

Diversif iedCleaning Services

Specializing In Apartments, Estate & One-Time Move-Outs

• Janitorial Service• Complete Estate &

House Cleaning• Floor Maintenance• Capets/Windows

• Move-In/Move Out• Gutter Cleaning• Power Washing• Common Areas

erty is outside the metro area or in outlying areas such as Florence or Oakridge.

You will be notified promptly if your property does or does not pass the inspection. If deficiencies are noted, it is then your choice to cor-rect them or not. Depending on the type or severity of the repair, the Inspection Team will either conduct a second inspection, or will agree to accept invoices, work orders, pho-tos, and receipts for materials and labor attached to a signed statement of completion.

Once the unit is approved, you are then required to send the Agency copies of the standard lease docu-ments signed by the tenant: the rent-al agreement, proof of the tenant’s receipt of the Lead-Based Paint pam-phlet, Smoke and Carbon Monoxide Alarm acceptance form, Mold and Mildew agreement, and any other standard Oregon Landlord-Tenant forms that will be enforced during the lease term. Having this informa-tion on file, will help the assigned caseworker, known as a Housing Specialist, work with both you and the tenant, to provide guidance dur-ing the term of the lease. Housing Specialists may not give legal advice, or their interpretation of Oregon’s Landlord-Tenant Act, but can assist you with questions regarding the agency’s procedures and policies.

The eight specialists and their con-tact information can be accessed on the Housing Agency website at www.hacsa.org.

So, you have an approved tenant, your unit has passed inspection, and you have submitted the required paperwork; rental assistance pay-ments known as HAP monies will then be directly deposited into your chosen banking institution. The cli-ent, the landlord, and the Housing Agency will all have signed con-tracts that link us together in provid-ing safe and affordable housing as our families strive for economic security. In addition to housing a qualified, paying tenant, you benefit from prompt direct deposit of HA rent payments, market-rate rent, and annual housing quality inspections. In addition, you are also able to access the Housing Choice Act miti-gation fund should you experience damage from a Section 8 tenancy above and beyond the amount of their security deposit.

And just like any other tenant, upon occasion there are issues with a Section 8 tenant. If there are prob-lems, nothing in the HAP contract prohibits you from pursuing any and all legal avenues at your dis-posal. This includes a tenant’s failure to pay their portion of the rent, unlawful occupants or pets, damage to the property, disturbance of the

peaceful enjoyment of others, etc. You may take any action, up to and including eviction, in accordance with the law and the terms of the lease. One caveat: You are required to send copies of any notices served upon the tenant to their Housing Specialist at the time you serve the notice upon the tenant.

Thank you for your interest in the Housing Choice Voucher program known as the “Section 8” or “Voucher” program. If you would

like know more about the program or renting to a family with a voucher, please contact us at 541-682-3755. Together, we can work to make this a positive experience for all.

Navigating Section 8 ...continued from page 10

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

W W W . M Y S C R E E N I N G R E P O R T . C O M 8 7 7 - 7 0 1 - 0 0 4 4

Signs UpNo Charge!

Invitesapplicant to apply

LANDLORD LANDLORDAPPLICANT

Signs Upand orders report

Viewsand shares report

Logs Inand views report

Acceptsapplication

Streamline the tenant screening process – we provide the tools necessary to authenticate one another, order and share reports, all from your MyScreeningReport.com dashboard.

Tenant Screeningjust got easier...

• Sign up in minutes!• No fees, paperwork or site inspections• Quality comprehensive reports• Secure report sharing platform• Customer support 7 days a week



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 fortune.

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

Multi-Unit EfficiencyUpgrades and maintenance for

multiple unit apartment complexes• Electrical upgrades • Electrical repair

• New construction • Security lighting

• Ongoing service maintenance • Door call systems

• Voice data • Communications wiring

• Electric heat upgrades & installation

Electrical upgrades can lower ongoing costs, lowerinsurance costs and improve tenant satisfaction. WestSide Electric provides fast response, the highest level

of quality work and exceptional professionalism.

ccb: 13306

H

ERE TOMORROW

HERE TODAY

Serving Portlandand BeyondSince 1961�

� West Side Electric CompanyWestsideelectric.com

Call 503-231-1548

Serving Greater Portland, Vancouver Metro Areas

Effective January 1, 2015, Shoptalk has been acquired by Jancyn and they will serve your employee evaluation needs. It has been my extreme pleasure to work with all of you over the past 20 years. Yet, it is now time for me to move onto my next great adventure. I am willing to offer leasing training on a limited basis, as an independent consultant. However, I will no longer be involved in secret shopping. For now, your contact at Jancyn will be Vicki Dempsey, VP of Sales & Marketing and a managing owner. You can reach Vicki at: 408-267-2600 ext. 300 or [email protected]. I will be working closely with the Jancyn team as a consultant to help ensure a smooth transition. Thank you for trusting me with your employee evaluations over the years, and now with the transition moving forward!



“As a landlord myself, I understand the importance of resolving pest issues for managers, property owners and tenants.”-Eric Ufer, President Pest Solutions LLC

Pest Solutions is a FULL SERVICE pest control company that will help you with: ants, spiders, cockroaches, rodents,

bedbugs fleas and nuisance wildlife such as raccoons, skunks and unwanted bird issues.

Call us at 503-895-2510 for a free estimate today!

www.pestsolutionsllc.com

Named Oregon and SW Washington’s SBA’s Rising Star Award Winner for 2014

Move the legal responsibility from your company to ours!

Real Estate Mold Solutions.com503-232-6653

Licensed-Bonded-Insured OR#149575 WA#602655820

Protect your property and your clients…

We work specifically for Property Managers and Landlords, and understand how to work in the industry

and best serve your needs.

• Professional, free, and discreet inspections• Work guaranteed by our insurance and warranty• Custom payment plans with 0% interest• CMI & CMRC Certified-Inspection and Remediation

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.

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 per-cent; 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 high-er 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

Poised for Growth ...continued from page 17

5 Innovation Killers ...continued from page 17

innovators is that values can be used as leverage for innovation even if they aren’t true,” Thornberry says. For example, if the company declares, “The customer is No. 1,” then it becomes difficult to ignore an inno-vation that is positioned as being for the customer.

Corporate culture The corpo-rate culture essentially is how the people, politics, organizational design and values interact. “The greatest challenge to any innovator, and to embedding and sustaining innovation over the long term, is cul-ture,” Thornberry says. To make it even more challenging, often organi-zations have micro-cultures within the culture. That means, he says, you will need to adapt the use of innova-

tion judo principles depending on which micro-culture you are dealing with at any given moment.

“Innovators throughout history have faced both roadblocks and blockheads on their path to creativi-ty,” Thornberry says. “And so will you.”

But with a little courage and some counterbalancing skills, he says, these challenges can be overcome.

About Neal Thornberry, Ph.D.Neal Thornberry, Ph.D., is the

founder and CEO of IMSTRAT, LLC a consulting firm that specializes in help-ing private and public sector organiza-tions develop innovation strategies that create economic value by increasing an

organization’s effectiveness and efficien-cy. A respected thought leader in inno-

vation, Thornberry is a highly sought-after international speaker and consul-

tant. He also serves as the faculty director for innovation initiatives at the

Center for Executive Education at the Naval Postgraduate School in

Monterey, Calif. Thornberry, author of “Innovation Judo: Disarming

Roadblocks & Blockheads on the Path to Creativity” (www.NealThornberry.

com), holds a doctorate in organization-al psychology and specializes in innova-

tion, corporate entrepreneurship, lead-ership and organizational transforma-

tion.

Advertise in Rental Housing Journal METRO

Circulated to over 20,000 Apartment

owners, On-site, and maintenance personnel

monthly.

Call 503-221-1260

for more info.Call 503-221-1260

for more info.



27+ years helping Oregon property owners! licensed, bonded & insured since 1987 • ccb #53631

www.goosehwc.com

Contact us for a free estimate

503-620-0898Service metro area to Willamette Valley

Supporting our Armed Forces & Veterans

PRIVATE HOMES TO LARGE MULTI FAMILY

If your windows & doors are:• drafty/leaking • dual pane/fogged up • single pane/storm windows • maintenance headache

We will help you:• increase energy efficiency • add sound control & security • add curb appeal• increased property value • increase rent & profitability • Get cash incentives & tax credits

”As a trade ally contractor of Energy Trust of Oregon, we can help with

cash incentives and state energy tax credits to improve the energy efficiency of your home or rental property.”

Mary Mann, Owner & Estimator

WINDOWS, DOORS & INSULATION

MADE IN USA

WE SUPPORT LOCAL BUSINESS

Goose HollowWindow Co. Inc.

Windows, patio, french & entry doors, bay & garden windows & remodel openings. Green eco safe insulation. Experiences installers – excellent references.

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:

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-aches and money down the road.

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

Water Heater Efficiency ..continued from page 2



3. More space for the same amount of money: 42.3 percent

Why are previous homeowners choosing to rent in 2015?

Underscoring a growing trend, previous homeowners are turning toward renting. Slightly more than 40 percent of total survey respon-dents say they have owned in the past. Interestingly, homeownership preferences are split right down the middle in 2015.

• 49 percent of former homeowners still wish they owned a home

• 51 percent of former homeowners prefer renting

• 56 percent of renters (who have never owned a home) prefer rent-ing

• 44 percent of renters (who have never owned a home) would like to own a home right now

When survey respondents were asked to select all the reasons they prefer renting to owning, the most popular responses are ranked below:

1. No unexpected repairs – I'm not responsible for a leaky toilet, clogged sink, etc.: 69.7 percent

2. No/low maintenance – I don't have a driveway to shovel, grass to cut, etc.: 54.5 percent

3. Flexibility to move – I don't want

to feel tied down, worry about selling home, etc.: 39.3 percent

4. Renting is more affordable for me than buying: 38.4 percent

5. No unexpected tax increases for the duration of the lease: 30.7 per-cent

6. I don't want the responsibility of a mortgage (or, I cannot get one): 29.9 percent

Urban areas are currently the main focus of developers targeting young renters willing to pay a pre-mium to live in apartment commu-nities decked out with lavish ameni-ties. When asked which amenities renters are seeking during their apartment search, air conditioning and appliances topped the list.

Top five amenities renters are looking for during their apartment search:

1. Air conditioning

2. In-unit washer and dryer

3. Parking

4. Dishwasher

5. Pet-friendly community

SOURCE Apartments.com

National Survey Reveals ...continued from page 14 Do you haveBED BUGS?

• Heat Treatments kill bugs in a single, 1-day treatment that’s odorless, green, organic, non-toxic and canine confirmed for effectiveness.

• Dog Inspections – the fastest, most reliable way to locate infestations

• Preventive Treatments – keep bed bugs from spreading to adjacent rooms

• Mattress and Box Spring Encasements

• Staff Training Programs

Proactive Inspections – Smart Treatments – Staff Training

Local and Nationwide Service

Portland Eugene 503.230.0236 • 800.452.5528 541.485.4402 • 800.472.1224

www.spraguepest.com

PEST PREVENTION • BRAND PROTECTION • ENVIRONMENTAL STEWARDSHIP

Know for sure.

Bed Bug Dogs areFAST and ACCURATE!

Just 2-3 minutes per roominspections for complete

PEACE of MIND



Don’t take chances with staffing! Our temps are tested, trained, experienced, and fully insured!

Serving The Pacific Northwest

Since

Daily • Weekly • Monthly • PermanentTemporary On-Site Staff

Managers • Leasing Agents • Maintenance

Greater Seattle-Tacoma Area

(425) 456-3663

www.apartmentadvantage.com

Greater Portland-Vancouver Area

(503) 644-8233

Need Staffing?

metro rental housing journal - march 2015

Documents