Arizona Rental Housing Journal June 2015

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June 2015 - Vol. 7 Issue 6 Rental Housing Journal Arizona WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC A MONTHLY CIRCULATION TO MORE THAN 10,000 APARTMENT OWNERS, PROPERTY MANAGERS, ON-SITE & MAINTENANCE PERSONNEL I ’m sure that most landlords know the value of an in-depth screening process when decid- ing to approve or deny a tenant. You would be surprised how many land- lords that I talk to actually skip this step and just trust what is written on a tenant’s application. It seems to be most prevalent among investors that manage their own properties and ei- ther don’t want to take the time or simply don’t know where to order the background reports necessary. In my opinion this is the most costly mistake that any landlord can make. If an applicant has a criminal record or a bad rental history you can rest assured that they won’t tell you this on their application. They’re gambling on the fact that you might not follow up with a detailed screen- ing. Typically this happens when they know that the owner of the rental is the same person that is managing the property. These ten- 3. 6 Keys to Maximize Leasing Results 4. Knowing the Limits on Collection Practices for Property Managers 6. More Consumers Positive On Housing, But Not Quite Ready to Leave the Sidelines 7. Behind the Leasing Desk 10. Ask the Secret Shopper 11. Summer Maintenance Checklist Coffee – More than Just a Drink When Motivating Your Team Advertise in Rental Housing Journal Arizona Circulated to over 10,000 Apartment owners, On-site, and Maintenance personnel monthly. Call 503-221-1260 for more info. www.rentalhousingjournal.com ...continued on page 5 W henever a landlord has to go to court against a resi- dent, one factor crucial in winning is to have the correct docu- mentation. Cases can be won or lost depending upon your notices, let- ters, repair invoices, photographs and other written evidence. This ar- ticle will provide a general overview of written evidence as it relates to landlord and tenant issues. Giving a Renter Notice A notice to your renter of a viola- tion of your lease, or community policies or the Arizona Residential Landlord and Tenant Act is the first step before taking any potential court action. If the notice is based upon complaints from other residents, properly document these alleged violations. Have the person who is complaining provide you with all the details in writing. This way, if the resident later decided not to cooper- ate or testify, you still have docu- mented your basis for giving notice. Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007 PRSRT STD US Postage P A I D Sound Publishing Inc 98204 What Does a Messy Car Have to Do With a Bad Tenant? Can I Get a Witness? Notices, Documents and The Courts M any U.S. homebuyers can break even in less than two years if they buy a home in- stead of renting it, but financial bar- riers and preference are big factors in the decision to continue renting. • Homebuyers can break even on a home purchase in less than two years in 66 percent of U.S. metro areas, according to the Zillow fourth quarter Breakeven Horizon report. • Twenty percent of renters say they prefer to rent than buy. More than half (53 percent) say financial limitations keep them from buy- ing. • The point at which homebuy- ers can expect to break even on a home purchase - Zillow's Break- even Horizon - lengthened in many markets in 2014 as home value growth flattened. Home Buying Pays Off Fast, but Hurdles Remain for Renters continued on page 7 ...continued on page 2

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RHJ is the business journal for the AZ multifamily and residential property management industry.

Transcript of Arizona Rental Housing Journal June 2015

June 2015 - Vol. 7 Issue 6Rental Housing Journal Arizona

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC

A Monthly CirCulAtion to More thAn 10,000 ApArtMent owners, property MAnAgers, on-site & MAintenAnCe personnel

I’m sure that most landlords know the value of an in-depth screening process when decid-

ing to approve or deny a tenant. You would be surprised how many land-lords that I talk to actually skip this step and just trust what is written on a tenant’s application. It seems to be most prevalent among investors that manage their own properties and ei-ther don’t want to take the time or simply don’t know where to order the background reports necessary.

In my opinion this is the most costly mistake that any landlord can make. If an applicant has a criminal record or a bad rental history you can rest assured that they won’t tell you this on their application. They’re gambling on the fact that you might not follow up with a detailed screen-ing. Typically this happens when they know that the owner of the rental is the same person that is managing the property. These ten-

3. 6 Keys to Maximize Leasing Results4. Knowing the Limits on Collection Practices for Property Managers6. More Consumers Positive On Housing, But Not Quite Ready to Leave the Sidelines

7. Behind the Leasing Desk 10. Ask the Secret Shopper11. Summer Maintenance ChecklistCoffee – More than Just a Drink When Motivating Your Team

Advertise in Rental Housing Journal ArizonaCirculated to over 10,000 Apartment owners, On-site, and

Maintenance personnel monthly.

Call 503-221-1260 for more info.www.rentalhousingjournal .com

...continued on page 5

Whenever a landlord has to go to court against a resi-dent, one factor crucial in

winning is to have the correct docu-mentation. Cases can be won or lost depending upon your notices, let-ters, repair invoices, photographs and other written evidence. This ar-ticle will provide a general overview of written evidence as it relates to landlord and tenant issues.

Giving a Renter NoticeA notice to your renter of a viola-

tion of your lease, or community policies or the Arizona Residential Landlord and Tenant Act is the first step before taking any potential court action. If the notice is based upon complaints from other residents, properly document these alleged violations. Have the person who is complaining provide you with all the details in writing. This way, if the resident later decided not to cooper-ate or testify, you still have docu-mented your basis for giving notice.

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What Does a Messy Car Have to Do With

a Bad Tenant?

Can I Get a Witness? Notices, Documents and The Courts

Many U.S. homebuyers can break even in less than two years if they buy a home in-

stead of renting it, but financial bar-riers and preference are big factors in the decision to continue renting.

• Homebuyers can break even on a home purchase in less than two years in 66 percent of U.S. metro areas, according to the Zillow fourth quarter Breakeven Horizon report.

• Twenty percent of renters say they prefer to rent than buy. More than half (53 percent) say financial limitations keep them from buy-ing.

• The point at which homebuy-ers can expect to break even on a home purchase - Zillow's Break-even Horizon - lengthened in many markets in 2014 as home value growth flattened.

Home Buying Pays Off Fast, but Hurdles Remain for Renters

continued on page 7

...continued on page 2

2 RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA

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Also, document your file by noting the date, time and substance of the complaints.

If you are receiving letters from a resident, make sure you answer the letters. Keeping a paper trail can be very crucial if your situation ever reaches the court.

Be specific in your notice to your residents. For example, a noncom-pliance letter notice under A.R.S. § 33-1368(a) requires that the landlord “specify the acts and omissions con-stituting the breach.” Don’t say, “excessive noise from the apart-ment.” Specify, “On June 10, 2014 at 1 a.m., your stereo was so loud your neighbors couldn’t sleep.” Don’t say, “Violation of paragraph 10 of your lease.” Spell out the offense. You must provide sufficient details

so the resident has enough informa-tion to know what he or she is being accused of.

Make sure you give the right kind of notice that the situation calls for. For example, you would not want to give a renter an immediate eviction notice for alleged drug trafficking if you do not have proof but only a suspicion based upon complaints of excessive traffic. In this case, you would use a noncompliance notice for “excessive traffic in and out of your apartment at all hours of the day and night staying for short peri-ods of time and disturbing the peace and quiet of other residents.”

Prompt, personal delivery of notices to someone in the apartment old enough to understand what they are receiving, certified mail, or regis-

tered mail are the only legal means of service under state law.

Getting a WitnessIf you have to go to court, make

sure you have eyewitnesses with personal knowledge of the accusa-tions.

Letters from residents or even affidavits are not admissible because they are hearsay and you cannot ask questions of a piece of paper. The normal exception is business records, and the judge determines how much weight, if any, to give to the docu-ments.

If a witness will not voluntarily come to court, you can have the court issue a subpoena, which requires the person to appear and testify. A subpoena is a valid reason

for a witness to be excused from work.

The landlord also needs to prop-erly document any damages to the apartment caused by the resident. The move-in/ move-out checklist identifies the apartment condition at the start and end of tenancy. If dam-ages are found, photograph them and have them viewed by people who saw the apartment at move-in so they can compare the condition at move-out.

By Andrew HullHull, Holliday, & Holliday, PLC

Can I Get a Witness? ...continued from front page

vis i t us atwww.rentalhousingjournal .com

RENTAL HOUSING JOURNAL ARIZONA • June 2015 3

RENTAL HOUSING JOURNAL ARIZONA

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By Tami Cox

In a competitive leasing market, it's important to stay on top of your game if you want to mini-

mize vacancy rates. Regardless of whether you are new to leasing or have been doing it for years, try these proven strategies to gain better results from your leasing efforts on multi-family properties:

1. Know your market - When was the last time you not just pulled rental comps, but actually visited properties in the direct vicinity of the property to be leased? Do you know what the "other" guys units look like? What a prospective tenant is getting for their money? Are your rents in line with the current market for the same bedroom/bathroom configuration and square footage? How friendly is the leasing staff out there? Are your competitor's build-ings well maintained or going down-hill fast? How can you lease what you have if you never leave your desk when doing your "market research"? This may seem time inten-sive and tedious. But even a day or two spent on such activities will be worth it.

2. Be responsive to leads - I don't know about you, but one of the most irritating things as a person looking for a new place to call home is if you reach out to a place you're interested in, and they don't call you back! I consider this to be unprofessional,

and surprisingly, there are a lot of these property managers and leasing agents out there. Maybe they don't care about leasing their units? Maybe they have so much money to throw around that how long their units sit vacant doesn't matter. Or, maybe they are just too overwhelmed with responsibilities to be effective. This is how you win and your competitor loses out. Be that contact person that cares about every inquiry. You never know who that lead may become to you in your circle of influence - your next tenant or an amazing network-ing contact! Even if nothing fizzles out from it, determine to be a profes-sional who gives every lead equal respect and attention.

3. Arrive ahead of your prospect for showings - this is important. Units get hot and they get cold, depending on your geographic loca-tion and climate. No one wants to see an apartment and shiver or sweat as they do! A definite negative strike against you from the onset. And have you gone around and turned all the lights on in the rooms? So people can actually see the layout and wall colors and so forth in the best possi-ble way? If you stumble to find a light switch when showing a unit, that makes you look like you've never been there and a potential ten-ant doesn't get a warm fuzzy that you know what you're talking about when they ask questions about liv-ing there. They count on you to point

out the features that they are just see-ing for the first time. If you don't even know them, well - why would they lease from you? The more money you are asking them to cough up each month for that unit, the bet-ter you need to know it - inside and out!

4. Create the feeling of home - I can tell you, small details matter. Larger properties know this and that's why they pay stagers to come in and make a model feel like some-one lives there - in a hotelish sort of way. Every prospect knows it's been "staged" when they walk in. But they don't care. It helps them visualize what the unit will look like with real live furniture in it. Now if you have a smaller property and full staging isn't feasible or an option, at least do something to add the feeling and atmosphere of home. It's not expen-sive, and a trip out to your local department and/or building supply store will do the trick. Consider pick-ing up a few low cost but eye catch-ing pieces to be focal points that fit with the style of the room and your unit to be leased. Things such as a flowering potted plant, an attractive candle with a scent most people will like (that you can light just before the showing to freshen the smell of the unit), a seasonally attractive front door mat welcoming visitors, and so

forth. I like to leave the flowers as a house warming gift to the new ten-ants, they love it! You can decide how simple or elaborate you want to get. But trust me, leasing success is in the small details your competitor doesn't think matter. You don't have to lease a 300 unit building to do such things. In fact, the smaller your building, the more important getting a new tenant in quickly becomes to your bottom line.

5. Display unit details and your contact information - I'm shocked at how often this is overlooked. If I'm going to buy a house, it's common for realtors to display information on the kitchen counter or somewhere obvious to visitors regarding the home they are looking at. Because they know it's competitive out there, and they want to sell that house and build a network of contacts. Why wouldn't you put the same effort in if you were leasing? A prospective ten-ant may look at several properties the same day, and how will they keep them all straight if they have nothing physical to take with them as a reminder of that unit and have a way to follow up with you if they want to lease it? Creating a flyer for each unit you have to lease is a smart move. And having business cards along with it helps as well. Don't

6 Keys to Maximize Leasing Results

continued on page 10

4 RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA

ants typically won’t even apply to a company like mine (www.CBPropertyManagement .com) because they know that doing a detailed screening is simply our job and there is no way that we will skip that step.

Screening doesn’t start when the application is turned in, it actually starts during the very first communi-cation with that tenant. More impor-tantly during the showing. You should always be present for show-ings and never just give out the key or a lock box code. If you aren’t pres-ent then you obviously risk vandal-ism, but you also miss out on the ability to start the screening process. Keep in mind that your ultimate decision of whether to approve or deny a tenant should be made after getting the whole picture of who they are and how responsible of a life they have lived. Some negatives can be overlooked if there are a lot of other positives.

Having a conversation with some-one while walking through the unit can give you a very good feeling of what their demeanor and behavior is. You also get to enlist a couple little “tricks” if you meet with them in person. One being at the end of the showing, be sure to walk them out to their car. As far as they are concerned you are simply being polite and hav-ing a conversation with them. If you are renting a non-smoking unit and they say they don’t smoke then you will be able to verify this if you are within a few feet of their car door when they open it. Most smokers will smoke in their car and you will be able to smell it. Also take a peek inside their car through the windows as you are standing there. If it is messy with fast food wrappers and other garbage throughout the vehicle then they will most likely keep their home in this same condition. Obviously this isn’t a reason to deny them, but it just adds to the total pic-ture you are creating of them while going through the screening process. We may overlook this if everything else checks out or if they happen to have a job that requires them to be in

their vehicle for long periods of time. Once they turn in an application

don’t skip the step of ordering their background reports. It is actually a lot easier than you might think. If you do a simple search on any search engine website for “tenant screen-ing” you will be given numerous choices. Personally I only like to use these companies to get the credit, criminal, and civil court reports. This will tell you if they pay their bills on time, have a criminal record that you should be concerned about, or have been a party to an eviction in civil court.

When it comes to the credit report I would suggest not putting too much emphasis on the actual score and look at their actions. Some of our absolute best tenants are ones that went through a foreclosure during the down economy over the last 7 years. Instead of looking at the score, look at why their score is low and what their actions have been since the last delinquent payment or col-lection was posted. If you see a col-lection account it will show when their last recorded payment was and if they are up on their payments. If it doesn’t then you can always ask for payment verifications from the applicant. Everyone has made mis-takes or possibly just lost a job at some point and couldn’t pay their bills. The important thing to find out is if they took responsibility for their actions and have handled it respon-sibly by attempting to get the debt paid off.

When it comes to criminal reports you should use your best judgement. Obviously some things are way more concerning as a landlord than others. If they have violent crimes on their record and they are moving into a multi-unit building we try to avoid them as they may pose a threat to their neighbors. You also want to look out for dishonest crimes like fraud and anything that would give you reason to not trust them.

The civil report will let you know if they have been a party to a lawsuit or eviction in the past. If there is an eviction then you definitely want to

get that landlords opinion of what happened. In most cases you won’t want to rent to that tenant, but in some cases it was simply a matter of the tenant losing their job and not being able to afford rent any more. The main deciding factor for me is whether the tenant made good on the money owed to that landlord and if there was any intentional damage caused to the unit. If they have made good on paying that landlord the money owed or they have a payment plan and haven’t missed any pay-ments then they might still be accept-able.

Then there is the previous land-lord interviews. Be sure to check with both the current landlord and the one previous. Unfortunately not all landlords are honest and the cur-rent landlord may tell you they are perfect tenants in an attempt to get rid of some bad tenants. The previ-ous landlord has no skin in the game and will most likely be honest with you if they had a bad experience with your applicants. The main ques-tions you should ask are about their ability to pay rent on time, if they had to post any adverse action notic-es, and if they would re-rent to these tenants if they applied for their unit again. Also be sure to find out if there was any damage to their unit when these tenants moved out and how they handled it if there was money owed by them.

The main thing to remember when screening a tenant is that no matter how busy you are it will be well worth taking the time to be very detailed. Document everything that you base your decision on. If you deny them and they want to chal-lenge it then you should be able to prove that you had grounds to do so. Within our company we end up only doing 1-2 evictions every year even though we manage properties in Portland, Salem, Eugene, and all of the surrounding areas. The main rea-son is that we do a very detailed screening and tenants know up front that if there is something negative in their background we will most likely find out about it.

Happy Screening!

Christian BryantPortland Area Rental Owners

Association (www.PortlandAreaROA.com)

Coldwell Banker Property Management (www.

CBPropertyManagement.com)

Messy Car ...continued from front page

RENTAL HOUSING JOURNAL ARIZONA • June 2015 5

RENTAL HOUSING JOURNAL ARIZONA

By Marc Courtenay

One of the challenges in the management of rental prop-erties involves collecting

from residents behind on rent pay-ment. Knowing the laws which gov-ern the methods used for collection is a vital first step.

We can debate how far we’d push the envelope to make sure the rent is collected, but the key to avoiding legal trouble is awareness and com-pliance with federal, state and local regulations.

A good place to begin is the fed-eral government’s “Fair Debt Collection Practices Act” which is enforced by The Federal Trade Commission (FTC). You can go directly to their web page on this topic for details.Two relevant declarations that motivated Congress to enact this legislation speaks volumes:

1. There is abundant evidence of the use of abusive, deceptive, and unfair debt collection practices by many debt collectors. Abusive debt collection practices contrib-ute to the number of personal bankruptcies, to marital instabil-ity, to the loss of jobs, and to inva-sions of individual privacy.

2. It is the purpose of this title to eliminate abusive debt collection practices by debt collectors, to insure that those debt collectors who refrain from using abusive debt collection practices are not competitively disadvantaged, and to promote consistent State action to protect consumers against debt collection abuses.The complete text of the Fair Debt

Collection Practices Act (FDCPA) is found here. It’s challenging to read but it does cover in detail the inten-tions and protocols of the FDCPA.

Then there are state and local regulations to know about. The good news is that each state and many municipalities have updated online explanations of these laws. Most are common sense but the details are where managers and their staffs can get entangled.

This topic was recently discussed

at the PropertyManagers.com dis-cussion page on LinkedIn. The ques-tion of what constitutes being “too aggressive” was raised in regards to Community Management Associations (CMA). The feedback turned in the direction of how it applies to property managers.

One property manager responded by writing, “Aggressive to me would entail going door to door instead of the normal practical methods of get-ting tenants to pay on time. Are there other ways to promote timely pay-ments?”

That’s the main question, and responding to it another manager wrote, “Depending on the property, door knocking, notices, phone calls and e-mail generally work.

“Using the threat of an eviction after say the 10th or 15th (after prop-er 3 or 5 day notices have been deliv-

ered) has proven most effective for myself as they do not want that on their record, the associated court costs due to dismiss the eviction or the ruined rental history. Being con-sistent on this and requiring signed arrangements are usually an effec-tive strategy”, he concluded.

This topic reminds us of how important it is to screen applicants thoroughly. Once you’ve found qual-ified residents consider having a question-and-answer discussion concerning timely payments.

Many property managers have a one-page “collections agreement” that clearly spells out what will hap-pen if the resident is late on paying rent. The manager has them sign it and gives them a copy.

Make sure you know your rights as a property manager, and make sure if you use a “collections agree-

ment” the wording is legally sound and in harmony with the laws.

There are also collection agencies and “debt collection specialists”.

One that I corresponded with wrote, “Collection agencies must have licenses in most states. In my company, everybody (including myself) must take courses and get designations from the ACA and other trade organizations. Nobody in my organization talks to a debtor without taking the course, passing the exams, and getting the designa-tions.”

If you have suggestions and expe-rience on the subject of effective and legal collection practices please leave them in the comments section. It’s a need-to-know topic for all property managers.

Knowing the Limits on Collection Practices for Property Managers

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6 RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA

Results from Fannie Mae's April 2015 National Hous-ing Survey™ show some im-

provement in housing sentiment, but likely not enough to trigger any breakout improvements in housing market activity this year. Among those surveyed, the share saying they would prefer to buy a home if they were to move increased to 63 per-cent in April, following a drop of six percentage points in February and March. In addition, average home price growth expectations continued their steady climb from late last year, with respondents now saying home prices will increase by 2.8 percent during the next 12 months. However, the share who believe this is a good time to buy a home decreased by four percentage points as consumer concerns regarding high home pric-es surged for a second consecutive month, matching renewed concerns regarding the state of the economy. These data points as a whole mirror Fannie Mae's Home Purchase Senti-ment Index (expected to be released this summer), which has remained largely flat since last fall, further sug-gesting that housing growth may re-main subdued in 2015.

"The spring and summer home buying season has gotten off to a stronger start, reflected in some of the improvement in consumer hous-ing sentiment," said Doug Duncan, senior vice president and chief econ-omist at Fannie Mae. "The share of consumers who intend to own rather than rent their next home rebounded after a two-month slide. Meanwhile, home price growth expectations strengthened to the strongest pace since last October. Nevertheless, con-sumers continue to express concerns about the recent weakening econom-ic conditions and high home prices. These combine to depress the share of consumers believing it is a good time to buy a home. When we con-sider both the continued caution of consumers and the positive start to the year, we believe that these results support our expectation that 2015 will be a year of modest growth in housing activity."

Survey HighlightsHomeownership and Renting

• The average 12-month home price change expectation rose to 2.8 percent.

• The share of respondents who say home prices will go up in the next 12 months fell to 46 percent. The share who say home prices will go down fell to 7 percent.

• The share of respondents who say mortgage rates will go up in the next 12 months stayed constant at 52 percent.

• Those who say it is a good time to buy a house fell to 63 percent, while those who say it is a good time to sell remained at 46 percent – tying last month's survey high.

• The average 12-month rental price change expectation rose to 4.1 percent.

• The percentage of respondents who expect home rental prices to go up rose to 54 percent.

• Those who think it would be easy to get a home mortgage increased by 2 percentage points to 52 percent, while those who think it would be difficult remained at 46 percent.

• The share who say they would buy if they were going to move rose 3 percentage points to 63 per-cent, while the share who would

rent fell to 32 percent.

The Economy and Household Finances

• The share of respondents who say the economy is on the right track decreased by 1 percentage point to 42 percent, while those who say the economy is on the wrong track rose by 1 percentage point to 49 percent.

• The percentage of respondents who expect their personal finan-cial situation to get worse over the next 12 months fell to 10 percent – matching the survey low.

• The share of respondents who say their household income is significantly higher than it was 12 months ago rose 2 percentage points to 24 percent.

• A new survey low, 29 percent of respondents say their household expenses are significantly higher than they were 12 months ago. A survey high, 60 percent say their expenses are the same.

SOURCE Fannie Mae

Survey Results Suggest Continued Modest Housing Growth in 2015

More Consumers Positive On Housing, But Not Quite Ready to Leave the Sidelines

The Professional Approach to Apartment Inves ng

480.305.5600 | www.josephbernard.net

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RENTAL HOUSING JOURNAL ARIZONA • June 2015 7

RENTAL HOUSING JOURNAL ARIZONA

forget to make a simple sign in sheet for visitors - include spaces for name, number of adults, desired move in date, any pets, email, and telephone numbers for contact. This gives you a record of who saw the unit and a handy reference to follow up. Even if they don't lease this particular unit, you may have others that you can lease to them as they become avail-able.

6. Be a friendly face - Again, this may not sound like the leasing strat-egy of the century, but you'd be sur-prised at how far being "friendly" can get you! Who wants to deal with

cranky management? The tone you set with your attitude and demeanor at the onset of the leasing relation-ship can make the difference in whether or not a prospect leases with you or your competitor. You've heard the old adage, "People do busi-ness with people they like", right? That still holds true. A friendly, per-sonable leasing professional will get better results than one who's not. Even if you've had a bad day, shake it off before you show up at that appointment. It's you on stage first, then the unit you're leasing. In that order.

These six simple techniques will help you lease your units more quickly. Provided your rent rates are priced right for your market, and you have value to offer a prospect. There are more, and cumulatively, they all add up. But you can maxi-mize your leasing results with a little more effort and attention to detail. You may not become the star leasing agent or property manager of the year, but when preserving and grow-ing an asset - cash flow is king. Without leased units, you have no cash flow. Decide today to step up your game and stand out from the

competition. Your operating account will thank you (and hopefully, so will the building owner)!

Tami Cox is a Business Consultant and multiple business owner with over 15 years of experience in the commer-

cial real estate market (finance back-ground). She helps business owners, investors, and entrepreneurs nation-

wide to become more profitable, put sys-tems in place to run their businesses

more efficiently, and reach their goals. For more information and to request her

services, visit her website at www.siz-zlinghotbusiness.com.

Behind the Leasing Desk with Heather Blume

6 Keys...continued from page 4

Dear Heather,I have worked for the same property

management company for several years and have worked my way into a good salary, benefits, and a Manager in Training role. With this role comes great responsibility, including taking on the challenge of supervising employees. The downside to this role is that I don't really have the autonomy to really fix some issues that drive me crazy within my office and for the most part, my hands are tied when it comes to disci-plinary action issues because that is my

manager's responsibility. You see, I have a coworker that has a variety of health issues and it is known within the office and management, so therefore, we have to accommodate. I have no problem with this for the most part. My issue is that she calls out a lot. When I say a lot, I mean it is to the point of being predict-able. Even my maintenance staff make jokes about her calling out so much. For instance, I will get a text that tell me how she's not feeling well and how it's ruining her weekend. First off, this is rather annoying because I frankly don't

care what she is doing on her days off. Secondly, this irritates me even more because in my eyes this is a set up for the inevitable call out for her return to work from her weekend break. Not only that but she won't hesitate to share with you that she suffers from several ailments at the same time and all of the details of them ...I am not trying to belittle her health conditions but I honestly have never met anyone with more issues that prevents them from working in my life! I have brought these frustrations to my manager's attention many times. The

response I get is very HR (which I understand) and it's typically some-thing like "you have to accommodate by giving breaks during the day or allowing her to go home early or come in late". Seriously?! Can't I just get a Leasing Agent that shows up and isn't a Web MD nightmare? Although her call outs have been less frequent than before, it's still predictable and if she does show up, she is so loopy from her medications it makes it difficult to work with her. My manager has told me to send her home if she comes to work loopy but frankly, I

...continued on page 8

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48-HOUR NOTICE OF ENTRYTENANT(S): ____________________________________________________ DATE:________

ADDRESS: ____________________________________________________ UNIT: _________

CITY: _________________________________________ STATE: __________ ZIP: _________48-HOUR NOTICE OF ENTRY

Pursuant to RCW 59.18.150, this is your 48 hour notice that your landlord or their agents will be

entering the dwelling unit and premises located at (Address)______________________________________________________________________________on between the hours of and . (Date) (Time) (Time)The entry will occur for the following purpose:______________________________________________________________________________

______________________________________________________________________________

Landlord Phone

Method of Service: Personal Service: Post and Mail: ** Add one additional day for compliance if served by post and mail.

WA-RTG-40 Washington

©2009 NO PORTION of this form may be reproduced without written permission.

CHECK-IN/CHECK-OUT CONDITION REPORTTENANT(S): __________________________________________________________________ADDRESS: ________________________________________________UNIT: ______________CITY: ___________________________________ STATE: ________ ZIP: _________________Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor IN Out In Out In OutLIVING AREAS KITCHEN BEDROOM 3Walls Walls Walls

Windows Stove/Racks WindowsBlinds/Drapes Refrigerator Blinds/DrapesRods Ice Trays RodsFloor Shelves/Drawer FloorCarpet/Vinyl/Wood Disposal Light FixturesLight Fixtures Dishwasher Doors/WoodworkDoors/Woodwork Counter Tops LocksLocks Cabinets CeilingsCeilings Sink Electric OutletsElectrical Outlets FloorGarbage Cans WindowsTV Antenna/Cable Blinds/Drapes BATH ROOMFireplace

Towel BarsCleanlinessSink & Vanity

ToiletBEDROOM 1 BEDROOM 2 Tub/ShowerWalls Walls Fan (Exhaust)Windows Windows FloorBlinds/Drapes Blinds/Drapes Electric OutletsRods Rods Light FixturesFloor FloorLight Fixtures Light Fixtures Essential ServicesEssential ServicesDoors/Woodwork Doors/Woodwork PlumbingLocks Locks HeatingCeilings Ceilings ElectricityElectrical Outlets Electric Outlets Hot Water

Smoke Detectors

OR-RTG-20 Oregon

©2011 NO PORTION of this form may be reproduced without written permission.

PET AGREEMENTTENANT INFORMATION

TENANT(S): ____________________________________________________ DATE:________ADDRESS: ____________________________________________________ UNIT: _________CITY: _________________________________________ STATE: __________ ZIP: _________

DESCRIPTION OF PET(S)

1) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ License Number: ______________

2) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ License Number: ______________

3) Type _______________ Breed _______________ Size ______ Age __ Weight ___ Color ____ Name ________ Vaccinations: Yes____ No____ License Number: ______________

Additional Security Deposit Required:$

AGREEMENTTenant(s) certify that the above pet(s) are the only pet(s) on the premises. Tenant(s) understands that the additional pet(s) are not permitted unless the landlord gives tenant(s) written permission. Tenant(s) agree to keep the above-listed pets in the premises subject to the following terms and conditions:

1) The pet(s) shall be on a leash or otherwise under tenant’s control when it is outside the tenant’s dwelling unit. 2) Tenant(s) shall promptly pick up all pet waste from the premises promptly. 3) Tenant(s) are responsible for the conduct of their pet(s) at all times. 4) Tenant(s) are liable for all damages caused by their pet(s). 5) Tenant(s) shall pay the additional security deposit listed above and/or their rental agreement as a condition to keeping the pet(s) listed above. 6) Tenant(s) shall not allow their pets to cause any sort of disturbance or injury to the other tenants, guests, landlord or any other persons lawfully on the premises. 7) Tenant(s) shall immediately report to landlord any type of damage or injury caused by their pet. 8) This agreement is incorporated into and shall become part of the rental agreement exe -cuted between the parties. Failure by tenant to comply with any part of this agreement shall constitute a material breach of the rental agreement.

_____________________________ ______________________________Landlord Tenant ______________________________ Tenant

OR-RTG-24 Oregon

©2011 NO PORTION of this form may be reproduced without written permission.

CHECK-IN/CHECK-OUT CONDITION REPORTTENANT(S): __________________________________________________________________

ADDRESS: ________________________________________________UNIT: ______________

CITY: ___________________________________ STATE: ________ ZIP: _________________Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor

Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor

Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor

Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor

Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor

Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor

Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor

Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor

Rating Scale = (E)Excellent (VG) Very Good (G)Good (F)Fair (P)Poor IN OutIn Out

In Out

LIVING AREASKITCHEN

BEDROOM 3

Walls

Walls

WallsWindows

Stove/RacksWindows

Blinds/DrapesRefrigerator

Blinds/DrapesRods

Ice TraysRods

Floor

Shelves/DrawerFloor

Carpet/Vinyl/WoodDisposal

Light FixturesLight Fixtures

DishwasherDoors/Woodwork

Doors/WoodworkCounter Tops

LocksLocks

CabinetsCeilings

CeilingsSink

Electric OutletsElectrical Outlets

Floor

Smoke DetectorsGarbage Cans

WindowsTV Antenna/Cable

Blinds/DrapesBATH ROOM

Fireplace

Towel BarsCleanliness

Sink & Vanity

ToiletBEDROOM 1

BEDROOM 2Tub/Shower

Walls

Walls

Fan (Exhaust)Windows

WindowsFloor

Blinds/DrapesBlinds/Drapes

Electric OutletsRods

Rods

Light FixturesFloor

FloorLight Fixtures

Light FixturesEssential ServicesEssential Services

Doors/WoodworkDoors/Woodwork

PlumbingLocks

Locks

HeatingCeilings

CeilingsElectricity

Electrical OutletsElectric Outlets

Hot WaterSmoke Detectors

Smoke DetectorsSmoke Detectors

WA-RTG-20 Washington

©2009 NO PORTION of this form may be reproduced without written permission.

www.rentegration.com 503-933-6437 [email protected]

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8 RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA

Reserch Report ...continued from page 7

Even though buyers in most mar-kets can break even on a home pur-chase in less than two years,i nearly half of renters in a newly released survey said their credit or finances keep them from buying a home.ii

Of renters surveyed by Zillow®, 16 percent said they can't qualify for a home loan, 18 percent said they can't afford taxes, maintenance and other costs associated with home-ownership, and 13 percent said they don't have enough savings for a down payment. About a quarter said they struggle to pay their rent.

According to the survey, 82 per-cent of renters are long-term renters, and 57 percent are long-term renters who have lived for a long time in the same home.

Just 14 percent of renters said they

aren't staying long enough in the same place to buy.

Zillow's survey sheds light on why some renters are not buying homes, despite historically low inter-est rates, prices that remain below peak levels in many areas and rising rents. Mortgage math aside, 20 per-cent of renters said they simply pre-fer to rent.

"If the buy versus rent decision were about simple math, we'd likely have millions more homebuyers in the market, because the equation is tilted heavily in favor of buying," said Zillow Chief Economist Dr. Stan Humphries. "But no matter what the numbers say, buying a home is a huge commitment. Every day, Americans make decisions to buy or rent based on any number of per-sonal dynamics, including prefer-

ence, flexibility needs, family factors and, yes, financial considerations. There is no right or wrong choice, and it's important that America's housing market maintains a number of affordable options for renters and buyers, no matter their preferences."

Over the last year, as home-price appreciation has slowed down, the length of time it takes to break even on a home purchase grew slightly in most major metros. The breakeven analysis looks at how long it takes to come out ahead on a home purchase versus renting the same home, recouping the costs of buying, including taxes and maintenance.

Among the top 35 metro areas in the U.S., Dallas-Fort Worth had the lowest breakeven horizon, at 1.2 years. Indianapolis, Ind. and Detroit were next at 1.3 years. The highest

breakeven horizons were in Los Angeles, at 5.1 years, Washington D.C. (4.2 years) and San Diego (3.8 years). The national average is 1.9 years.

Zillow's breakeven horizon incor-porates all costs associated with buy-ing and renting, including upfront payments, closing costs, anticipated monthly rent and mortgage pay-ments, insurance, taxes, utilities, maintenance, and renovation costs. The horizon also factors in home equity growth for buyers, and, for renters, income earned if they invest-ed the same amount of money into an interest-bearing account. It also factors in historic and anticipated home value appreciation rates, rental prices and rental appreciation rates.

Metropolitan Area Zillow Home Value Index (ZHVI)

Zillow Rent Index (ZRI)

Q4 2014 Breakeven Horizon (in years)

Q4 2013 Breakeven Horizon (in years)

United States $ 178,700 $ 1,355 1.9 2.0NY-Northern NJ $ 383,300 $ 2,348 3.4 2.8Los Angeles, CA $ 533,700 $ 2,475 5.1 1.5Chicago, IL $ 187,100 $ 1,600 2.2 1.7Dallas-Fort Worth, TX

$ 155,700 $ 1,449 1.2 1.6

Philadelphia, PA $ 202,800 $ 1,554 2.4 2.8Houston, TX N/A $ 1,502 1.5 2.1Washington, DC $ 362,800 $ 2,104 4.2 2.8Miami-Fort Lauder-dale, FL

$ 212,500 $ 1,782 1.7 1.1

Atlanta, GA $ 154,900 $ 1,238 1.5 1.1Boston, MA $ 369,100 $ 2,167 3.4 3.0San Francisco, CA $ 715,800 $ 3,088 2.6 1.9Detroit, MI $ 114,400 $ 1,105 1.3 1.2Riverside, CA $ 285,200 $ 1,670 1.5 0.7Phoenix, AZ $ 203,400 $ 1,228 2.3 2.3Seattle, WA $ 343,900 $ 1,839 1.9 1.9Minneapolis-St Paul, MN

$ 211,400 $ 1,506 2.2 2.0

San Diego, CA $ 474,100 $ 2,310 3.8 1.9St. Louis, MO $ 132,500 $ 1,141 1.6 3.8Tampa, FL $ 148,600 $ 1,272 1.5 1.0Baltimore, MD $ 244,100 $ 1,717 2.9 2.2Denver, CO $ 289,200 $ 1,834 1.6 2.1Pittsburgh, PA $ 125,300 $ 1,137 1.6 1.9Portland, OR $ 281,400 $ 1,592 2.0 2.1Sacramento, CA $ 335,700 $ 1,638 2.2 1.0San Antonio, TX N/A $ 1,305 1.6 2.7Orlando, FL $ 170,100 $ 1,311 1.6 0.9Cincinnati, OH $ 138,000 $ 1,220 1.7 2.1Cleveland, OH $ 119,700 $ 1,168 1.8 2.1Kansas City, MO N/A $ 1,223 1.6 2.7Las Vegas, NV $ 187,600 $ 1,197 1.5 1.2San Jose, CA $ 852,800 $ 3,202 2.7 2.9Columbus, OH $ 146,300 $ 1,252 2.0 1.9Charlotte, NC $ 158,900 $ 1,242 2.0 2.1Indianapolis, IN $ 129,100 $ 1,195 1.3 2.1Austin, TX N/A $ 1,669 2.1 3.0SOURCE Zillow

www.rentalhousingjournal .com

RENTAL HOUSING JOURNAL ARIZONA • June 2015 9

RENTAL HOUSING JOURNAL ARIZONA

Behind the Leasing Desk ...continued from page 7

need her in the office and can't afford to be alone in the office any more than I already am.

How do I balance my feelings of frus-tration and disbelief in her legit "sick days" and still be in compliance with the law and not on the wrong side of an lawsuit? Some days I believe she is ill and other days I think she just didn't want to get up out of bed and come to work. She has even mentioned that she knows my manager can't fire her because she could sue based on her medical issues. I know we all have a right to call out sick but I just feel like it's predictable and abusing that very policy that is meant for those that do have medical issues that truly inhibit them from work-ing normal shifts or performing daily tasks. How do I overcome these feelings of not believing her, not feeling confident in her attendance, not feeling confident that her ailments are severe enough to prevent her from working or performing her duties, and yet knowing that I have to accommodate her call outs and deal with it?

Please Help!Sick and Tired of those who are

ALWAYS Sick and Tired

Dear Sick and Tired of those who are ALWAYS Sick and Tired,

Wow! This is a really horrible sit-uation and I can imagine that you must be thoroughly frustrated, even more than your letter sounds. It's always difficult to work in an envi-ronment where you feel there is someone who is shirking their responsibilities, and working in a property management office with that sort of a person is extra hard because our days move so fast that once you get behind, you never feel like you can catch up.

First, while I very much sympa-thize with your situation, I have to concur with the "very HR" response that you've gotten so far. Employers MUST make accommodations to sick employees under federal law, but more than that, this particular employee has already placed a not-so-veiled threat against them. Whenever you have an employee who KNOWS and has the audacity to say that they know they can sue their employer upon termination, it's a very sticky situation. On one hand,

if any other employee pulled this behavior, you'd do the write ups and terminate them. On the other hand, it's going to cost you much more in the legal and public relations arena to get rid of this person than to let them half ass their job. From a com-pany view point, you're picking up the slack, so they aren't out anything and they don't have to deal with the problem.

Second, you have to make sure that even through your dissatisfac-tion with this employee that you are not making the work environment hostile so she will leave. She can sue the company for that as well, and a lot of those kinds of suits are being won currently, plus with the health issues she has, she'll have the sym-pathy on her side. Problems all around on that front.

Third, if she comes in "loopy" on her meds, you really should send her home. I know this puts additional stress on you, but remember that some states are verbal contract states and what she says in her inebriated state, you and your company can be held legally liable for. On top of which, any contract that she signs with a resident might not be valid if she, as a company representative, is in an altered state. Plus, in such a state, she could write a contract for either the wrong amount of rent or the wrong lease term, and once the resident has signed it with her, you're bound to that contract. Send her home when she's a threat to your NOI.

So let's talk about some solutions. One of the things that you men-tioned is that you can't afford to be alone in the office anymore than you already are. This may just be the background of a staffer talking, but one of the quickest ways to call attention from the corporate office to the escalated degree of the problem is to call your local staffing agent when she calls out, or when you have to send her home sick. The cor-porate office might not notice the stress that it puts you under to not have her there, but they WILL notice the stress that staffing costs put on your budget. This is a risky solution, however, so it might be worth it to just contact your office about ASKING for staffing. It will have a similar effect, and won't potentially

get you in as much trouble as just calling a staffing agent without approval will.

Now here's the good news - People who are frequently absent or who do not seem to connect with their workplace rarely stay there long term, so she may be on her way out. Also, if she's made the lawsuit statement, that might be what she's really looking for, and when you do not provide her with the grounds to sue, she'll move on and look for another rube to play this game with.

How you, as a manager in train-ing, handle a situation like this can be a defining moment for your career. You can take the path of secretly hating your coworker (and believe me, MANY of us take that path, as it's the easiest), or you can try to ignore as much of the situation as you can and realize that you can only do what you can do in any given day, or your can try to reach the employee on a personal level.

The last is the hardest to do, but also the most long term rewarding of the options presented. To open com-munication you have to re-founda-tion some modicum of trust between the two of you. I would start by giv-ing her massive positive reinforce-ment on days when she doesn't call out sick or come in loopy. Extending yourself as a mentor and trying to have a different relationship with this employee might encourage her to come to work more often and to call out less.

As for managing your feelings on the issue, my best advice to you is to step back and take some deep per-spective on the issue. I want you to ask yourself if it's really worth you caring if you believe her or not? If it's worth carrying anger and spite over something you cannot prove and something that in the long run will not make a difference? My mother once told me that you only have so many pieces in your matched set of emotional luggage, and you have to choose what's worth packing in them. You can't carry everything, so make sure that she's worth putting in there.

Good Luck to you!Heather

Heather is the Imagination In Charge of Behind the Leasing Desk

Training & Consulting Services out of Seattle, WA. An accomplished national

speaker, trainer, consultant, career coach, and author of both books as well

as countless industry related articles, Heather holds her CAS designation, is

NAA Advanced Instructor trained, and has been a member of the NAA Faculty

since 2009, serving as a WMFHA, CAM, and NALP instructor since

2009. You can check out more of her musings, podcasts, and class offerings

at www.behindtheleasingdesk.com

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10 RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA

Each apartment community has certain features and benefits, which are the selling points of

that particular community. It could be its location, friendly staff, spa-cious floor plans, beautiful landscap-ing or affordable price; just to name a few. Yet even with the most fabulous features, there will be times when the apartments you have available won’t seem to meet the needs of your pro-spective renters. The following ques-tion from a leasing consultant ad-dresses this issue:

Q: We have several vacant apart-ments right now and I know I’m supposed to try and rent all of them, but how can I rent to someone when it doesn’t seem like the apartment will really meet their needs?

A: Things are not always what they “seem.” Many times you may have the tendency to make an assumption about what you think someone needs based upon your limited perspective, frame of refer-ence or belief system. For example, you might have 2 bedrooms avail-able right now that are all located on

upper floors. If a family with small children comes in, you might auto-matically assume that they are not going to be interested because you think they won’t want to deal with the stairs. On the other hand, you could have all first floor openings and your prospective renter could be a single woman. You might think women living alone only want upper level apartments because you believe they feel safer off the ground. Therefore, when you have a single woman seeking a new home, you may not try to sell her on a first floor location because you don’t think it will meet her needs.

Until you truly get to know your prospective renters and determine what is most important to them, you really don’t know what they need. You are merely making “assump-tions.” It could be that the husband of the family mentioned above trav-els a lot. The wife may prefer an upper level apartment as she is fre-quently home alone with their small children, and would feel safer living upstairs. The single woman might have a lot of equipment that she has to bring home from work each day,

and does not want to deal with con-stantly lugging it up and down the stairs.

It’s important to remember that every person who walks through your door is as unique and special as each one of your available apart-ments. The term “one size fits all” may work when you are buying a stretchy article of clothing. However, when it comes to helping people find a new home, no apartment will fit the same two people in the same way. For those times when you have prospective renters with needs you just cannot meet, send them to a sis-ter community and/or offer to pay them a referral fee for anyone they refer who rents. Since things are not always what they seem, you never know when a prospective renter who does not end up leasing could be a source of referrals for months, or even years to come.

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

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RENTAL HOUSING JOURNAL ARIZONA • June 2015 11

RENTAL HOUSING JOURNAL ARIZONA

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Touch up peeling or damaged paint.

Check exterior caulking and apply caulk as needed.

Wash exterior windows. Remove lint from dryer ex-

haust vent with a long, flexible brush.

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Turn on the sprinkler system and check for leaks.

Open or remove storm win-dows.

Katie Poole–Hussa is a Licensed Property Manager in the State of Oregon, Continuing Education Provider, Chair of the Education Committee for the RHA Oregon, and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at katiepoolehu-

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Summer Maintenance ChecklistIn summer, complete the following projects to keep the rental property landscape lush and the home cool for your tenants.

Coffee – More than Just a Drink When Motivating Your Team

By Jackie Ramstedt, CAM, CAPS, CAS

Things I’ve learned about the power of coffee:

1. Having something hot at the beginning of the day stimulates

brain cells faster

2. Supplying for your team is a show of appreciation

3. Make sure to have decaffeinated flavors too; not everyone likes to be “wired”

4. It makes time to just “stop” what you are doing even for a minute to make it

5. Never stop “cold turkey” and forget to order more supplies

6. Remember the holiday flavors to “spice things up” a bit

7. Offer hot and cold coffees throughout the year; more re-freshing choices

8. Try and have “coffee breaks” at the same time to use that time to meet and plan

9. Don’t like coffee? Tea actually has more caffeine than coffee

10. Buy coffee mugs specifically for each team member that shows off their personality!

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Available Now3 Bedroom Single Family in New Mexico

• 2701 Casa Del Norte Court NE, Albuquerque NM, 87112

• 2,635 square ft., single story on a 0.2 acre lot

• Price per sq. ft. – $125.24

• Matheson Park Elementary, Hoover Middle School & Eldorado High School

• Master bedroom – 16.00X17.00

• 2 1/2 bath

• Country kitchen with built-in refrigerator, skylight & island

• Evaporative cooling & ceiling fans

• Forced air heating with thermal windows and doors

• 2 gas log fireplaces

• Security, smoke & fire alarm

• Sprinkler system, deck and exterior foyer

• 3 car garage & RV parking.

12 RENTAL HOUSING JOURNAL ARIZONA • June 2015

RENTAL HOUSING JOURNAL ARIZONA