The Landlord Times On-Site June 2013

25
The Landlord Times and Apartment News sat down with vet- eran apartment bro- ker and investor, Joseph Chaplik to discuss Arizona, Or- egon and the state of the apartment investment market. THE LANDLORD TIMES: Give us a brief history of your career. How did you get into the apartment bro- kerage business? JOSEPH CHAPLIK: Previously I was a Vice President of a telecommu- nication company and started buying apartments when I relocated to Port- land. The level of professionalism by the other brokers was not impressive, so I decided to start my own company. I wanted to provide a higher level of professionalism, integrity and service to the apartment investors, which I thought they deserved. Today we represent close to 1/3 of the trans- actions; more and more clients have The City of Seattle is providing the public a closer look at the energy use of City-owned buildings in a new report, “Seattle Municipal Buildings 2011 - 2012 Energy Use Performance Report.” The report describes City efforts to evaluate the energy efficiency of 6.2 million square feet of City-owned and oper- ated building space, a process that the City is also requiring owners of mid-sized and large privately owned buildings to do every year. The report also details actions the City is taking to improve the energy effi- ciency of its facilities. “We hope that sharing the City’s results from evaluating our build- ings’ energy use encourages other owners to do the same,” said Jill Simmons, Director of the Office of Sustainability & Environment. “Taking a close look at the energy performance of our facilities helps identify cost-effective opportunities to save energy and free up taxpayer resources for other important City services.” To lead by example, City depart- ments were directed to go beyond the minimum requirements of the energy benchmarking program and publicly disclose the City’s bench- marking results. Private owners in Seattle are required to disclose their Seattle Discloses Energy Use of City-Owned Buildings Continued on page 3 Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327 Please note any problems below and notify us at: PO Box 30327 Portland, OR 97294-3327 My name was misspelled Remove my name from the On-Site mail list Change of address: PRSRT STD US Postage PAID Seattle, WA Permit #741 Current Resident or SEATTLE • TACOMA • OLYMPIA • EVERETT O N - S ITE Published 22 Years June 2013 www.TheLandlordTimes.com Vol. 22 Issue 6 17,000 PAPERS MAILED MONTHLY TO PUGET SOUND APARTMENT OWNERS, PROPERTY MANAGERS & MAINTENANCE PERSONNEL Published in association with: Washington Apartment Association, IREM & Washington Multifamily Housing Association Professional Publishing, Inc Continued on page 7 Page 16 Institute of Real Estate Management Page 14 NATIONAL MORTGAGE SETTLEMENT PROVIDES MORE THAN $1.1 BILLION.. NEW IREM® WHITEPAPER EXAMINES EFFECTIVE COMMUNICATION AS... WMFHA WORKING FOR YOU Washington Apartment Association Chapter 27 Page 6 Highlighting the economic strength of the apartment industry in front of Congress, Tom Bozzuto, Chairman and CEO of the Bozzuto Group, represented the National Multi Housing Council (NMHC) and the National Apartment Association (NAA) before a House Energy and Commerce Subcommittee recently. “The apartment industry is a com- petitive and robust $1.1 trillion industry that helps 35 million renters live in a home that’s right for them. In an environmentally sound way, we help build vibrant communities by offering housing choice, support- ing local small businesses, creating millions of jobs and contributing to the fabric of communities across the country,” said Bozzuto, who is also chairman of NMHC. $1.1 Trillion Apartment Industry Highlights Multifamily Job Growth for Congress Continued on page 5 6 Questions with Joseph Chaplik City Leads by Example by Reporting Building Energy Use Get Social With The Landlord Times

description

The On-Site is the journal for the Seattle / Tacoma area multifamily and property management industry.

Transcript of The Landlord Times On-Site June 2013

Page 1: The Landlord Times On-Site June 2013

The Landlord Times and Apartment News sat down with vet-eran apartment bro-ker and investor, Joseph Chaplik to discuss Arizona, Or-

egon and the state of the apartment investment market.

THE LANDLORD TIMES: Give us a brief history of your career. How did you get into the apartment bro-kerage business?

JOSEPH CHAPLIK: Previously I was a Vice President of a telecommu-nication company and started buying apartments when I relocated to Port-land. The level of professionalism by the other brokers was not impressive, so I decided to start my own company. I wanted to provide a higher level of professionalism, integrity and service to the apartment investors, which I thought they deserved. Today we represent close to 1/3 of the trans-actions; more and more clients have

The City of Seattle is providing the public a closer look at the energy use of City-owned buildings in a new report, “Seattle Municipal Buildings 2011 - 2012 Energy Use Performance Report.” The report describes City efforts to evaluate the energy efficiency of 6.2 million square feet of City-owned and oper-ated building space, a process that the City is also requiring owners of mid-sized and large privately owned buildings to do every year. The report also details actions the City is taking to improve the energy effi-ciency of its facilities.

“We hope that sharing the City’s results from evaluating our build-

ings’ energy use encourages other owners to do the same,” said Jill Simmons, Director of the Office of Sustainability & Environment. “Taking a close look at the energy performance of our facilities helps identify cost-effective opportunities to save energy and free up taxpayer resources for other important City services.”

To lead by example, City depart-ments were directed to go beyond the minimum requirements of the energy benchmarking program and publicly disclose the City’s bench-marking results. Private owners in Seattle are required to disclose their

Seattle Discloses Energy Use of City-Owned Buildings

Continued on page 3

Professional Publishing, IncPO Box 30327Portland, OR 97294-3327

Please note any problems below and notify us at:

PO Box 30327Portland, OR 97294-3327

❑ My name was misspelled❑ Remove my name from the

On-Site mail list❑ Change of address:

PRSRT STDUS Postage

PAIDSeattle, WAPermit #741

Current Resident or

SEATTLE • TACOMA • OLYMPIA • EVERETT

ON-SITE Published 22 Years

June 2013www.TheLandlordTimes.com Vol. 22 Issue 6

17,000 PAPERS MAILED MONTHLY TO PUGET SOUND APARTMENT OWNERS, PROPERTY MANAGERS & MAINTENANCE PERSONNEL

Published in association with: Washington Apartment Association, IREM & Washington Multifamily Housing Association

Professional Publishing, Inc

Continued on page 7

Page 16

Institute ofReal EstateManagement

Page 14

NATIONAL MORTGAGE SETTLEMENT PROVIDES

MORE THAN $1.1 BILLION..

NEW IREM® WHITEPAPER EXAMINES EFFECTIVE

COMMUNICATION AS...

WMFHAWORKING FOR YOU

Washington Apartment Association

Chapter 27

Page 6

Highlighting the economic strength of the apartment industry in front of Congress, Tom Bozzuto, Chairman and CEO of the Bozzuto Group, represented the National Multi Housing Council (NMHC) and the National Apartment Association (NAA) before a House Energy and Commerce Subcommittee recently.

“The apartment industry is a com-petitive and robust $1.1 trillion industry that helps 35 million renters live in a home that’s right for them. In an environmentally sound way, we help build vibrant communities by offering housing choice, support-ing local small businesses, creating millions of jobs and contributing to the fabric of communities across the country,” said Bozzuto, who is also chairman of NMHC.

$1.1 Trillion Apartment Industry Highlights Multifamily

Job Growth for Congress

Continued on page 5

6 Questions with Joseph

Chaplik

City Leads by Example by Reporting Building Energy Use

Get Social With The Landlord Times

Page 2: The Landlord Times On-Site June 2013

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been gravitating to our company for our quality care.

TL: You now serve four markets... give a brief state-of-the union on mul-tifamily real estate in your new mar-ket, Phoenix, AZ.

JC: We just opened our newest of-fice in the Phoenix market this year and have been making great prog-ress. The cap rates are around 7% and higher for the B and C quality build-ings and locations. The price per unit is significantly lower than other mar-kets, and the vacancy rates are moder-ate around 6-8%. For the individual experienced investor, this market has tremendous upside in value with pur-chasing a rougher property and trans-forming it into a stable building.

TL: How about Portland? What is your forecast for the next couple years?

JC: We have been operating in Portland for 9 years and the market is strong. Investors have a high de-mand for rental properties and there is a low supply of buildings. This situa-tion should remain the same well into 2015, and rents should be increasing annually. Vacancy rates are histori-cally low in this area, around 3.5%. Portland and Salem are great areas for apartment ownership due to this

dynamic. What we are currently see-ing is developers building new class A apartments with high rents. As the new projects complete, the market will dilute with the renting demand. In select markets, apartment investing will still be a solid choice with good re-turns. As new projects complete and demand higher rents, the class B and C properties will demand increases in rents as well.

TL: If you could give a couple of key pieces of fundamental advice to new or prospective apartment inves-tors, what would they be?

JC: My advice is to make sure that you ask the right questions of anyone that you choose to work with. En-sure that they have experience and are experts in the multifamily indus-try. Buyers buy on returns and sellers sell on price. However, if you are a seller, be realistic with the sale price. If you are told your property is worth an extremely high price and are of-fered lower commission than usual, the broker is probably desperate for deals. Beware of this tactic, and get a second opinion. Brokers often try to buy listings by over-pricing the prop-erty, which only hurts the seller with lost time and a negative marketing impact.

TL: What advice would you give veteran investors?

JC: Most veterans know this, but work with experts and respect qual-ity work and confidential information from brokers. If you feel that your broker only calls you when he needs you to sell, call other firms to build more relationships. A broker/client relationship should be year-round and offer many other services to the client.

TL: What advice would you give to prospective sellers to ready their properties (physically and/or finan-cially) for sale?

JC: The best advice I can give is to attend our seminars on this exact topic. You should be communicating

with your broker year-round so that when it’s time to sell, your property is already conditioned for the top of market price.

Joseph Chaplik, PresidentJoseph Bernard Investment Real Estate

(866) [email protected]

Joseph Chaplik is the President of Jo-

seph Bernard Investment Real Estate, an award-winning brokerage firm in Oregon, Washington, and Arizona. His company was recently named the 56th Fastest Growing Private Company in Oregon, and has been named a finalist for the Oregon Ethics in Business Award. Mr. Chaplik has 18 years of executive lead-ership experience and has been involved with real estate for eleven years.

On-Site Northwest • June 2013 3

6 Questions ...continued from front page

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Page 5: The Landlord Times On-Site June 2013

The summer season is coming and that brings the annual chal-lenges of managing and maintaining air conditioning units, along with resident requests for installing air conditioning units. There is still time, this is your year to be proac-tive!

D: Suzy Leaser received a call from a resident on a 100 degree day that their air conditioner was not working. She also mentioned that they were elderly. Suzy explained to the resident that she knows how that goes, the office air conditioner wasn’t working as well and she couldn’t stand it, so she called A1 Air Conditioning service to come fix theirs. Suzy confessed it was hard to work in this heat.

They hadn’t had the air condi-tioners checked out for the year and prior to summer. Suzy assured the elderly resident that her mainte-nance team was working on other more important issues at the moment but would get to their work order when they could.

Suzy, seriously, WHAT WERE YOU THINKING? There are several problems with your response. As a courtesy, and to better anticipate maintenance costs, you ought to have a policy that your maintenance verify that the air conditioning units are in working order prior to the hot weather. The policy avoids the worst case scenario of multiple residents’ air conditioning units out during a heat wave.

Suzy, you have the responsibility to repair or replace an amenity that was original and a part of the lease of the unit. Air conditioning during hot weather is likely to rank as the highest priority to the resident. A resident’s health can be at risk dur-ing a heat wave.

Residents are how our business thrives and we should provide them with exceptional customer service. Remember, they can live anywhere and they chose to live in your com-munity. Making mistakes in priori-tizing repairs can be costly. Local apartment and rental housing asso-ciations often offer educational opportunities in this market to learn best practices for work orders and efficient management of your prop-

erty. Below Zach outlines great prac-t ica l ideas for a l lowing the installation of air conditioners.

Zach, can you share your mainte-nance team perspective and how it relates to the office team?

Z: Sure Dana, first you ought to have a Summer Preventative Main-tenance Schedule (see last month’s article). The maintenance staff should be inspecting and getting the A/C units in order in April or May getting ready for hot summer weather. This preventative approach will indentify which are not work-ing properly and when to order the proper parts or schedule a vendor to repair or replace. Remember that the goal is to be proactive rather than reactive.

With regard to A/C’s in general; if the unit was designed into the building (PTAC) or through the wall unit then onsite staff should be trained to repair and maintain the units. If no A/C’s were included in the original design of the property then a specific A/C protocol needs to be established by the property management company. Here are some things to consider:1. Proper A/C size for the electrical

circuit (6000BTU max for most apartment circuits)

2. Proper unit style for window con-figuration (a top down window A/C will not work in a side slid-ing window)

3. Who will install the A/C unit (vendor or maintenance staff)

4. How will it be installed (bracket, not attached to building)

5. Proper window void coverage (cardboard, plexiglass, plywood)

6. Who will repair it if it breaks?7. Who is responsible if it leaks?8. Who will remove it?9. Who will store it during the off

season (or can it stay up year round)?

Every company will address this complex issue a bit differently. My recommendation is to let outside vendors handle installation and removal in order to decrease the lia-bility of your maintenance staff breaking, dropping or damaging residents A/C units. If you are going to have site staff install and remove then some training should be pro-vided as to how to best perform installation in order to decrease lia-bility to the company and keep the employees safe. Whether you per-form this customer service via on-site staff or vendor have a clear protocol including the above items and clear answers up front so resi-dents and management are all on the same page. Your local apartment association may offer forms to cover this situation.

By Dana Brown and Zach Howell

What Were You Thinking Moments!DZ&DANA BROWN AND ZACH HOWELL

4 On-Site Northwest • June 2013

Continued on page 5

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On-Site Northwest • June 2013 5

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D & Z would like to give away free class registrations to our readers from Multifamily NW. It is easy to qualify, just send in a funny story of what were you thinking moments that we can share in our article and you will go into a drawing to win a free class valued at $125 each. The contest will run through the end of June and the winner will be announced in the July issue of The Landlord Times. Send entries to [email protected].

Dana Brown and Zach Howell have been working and training Managers and Maintenance staff in the property management industry for 20 + years. They are excited to give back and share the crazy stories that can only happen in our industry. We would love it if you would share your stories and “WHAT WERE YOU THINKING” moments with us as well as questions that you need answers to. Dana can be reached at: [email protected]. Zach can be reached at: [email protected]

It takes at least 300,000 new apart-ments each year to meet demand, but less than half that number was delivered in 2012. Highlighting a $72 million apartment construction proj-ect in Baltimore’s Union Warf, Bozzuto drew the connection between job creation, manufacturing and multifamily development.

“This building required enough concrete to fill 240 swimming pools. End-to-end, the lumber used would span about 331 miles and the dry-wall could cover more than 42 foot-ball fields. In addition, we will use 204,000 lbs. of granite, 290,000 bricks, more than 7,000 gallons of paint, 1,700 appliances and 3,500 cabinets,” said Bozzuto. “A significant percent-age of these construction materials were manufactured in America, with more than 25 percent being sourced within 500 miles of the project site.”

“The apartment industry can be a robust economic engine that pro-vides lasting job growth and spend-ing nationwide,” Bozzuto added. “With up to seven million new rent-er households forming this decade—

almost half of all new households—the dollars and jobs we add to the economy will only grow in magni-tude.”

For more than 20 years, the National Apartment Association (NAA) and the National Multi Housing Council (NMHC) have partnered on behalf of America’s apartment industry. Drawing on the knowledge and policy expertise of staff in Washington, D.C., as well as the advocacy power of 170 NAA state and local affiliated associations, NAA and NMHC provide a single voice for devel-opers, owners and operators of multi-family rental housing. Apartments and their 35 million residents support more than 25 million jobs and contribute $1.1 trillion to the economy. To learn more about apartments, visit www.weareapartments.org. For more infor-mation, contact:

NMHC at (202) 974-2300 or [email protected] or www.nmhc.org.

NAA at (703) 797-0616 or [email protected] or www.naahq.org/govern mentaffairs

Please Visit us atwww.TheLandlordTimes.com

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Page 7: The Landlord Times On-Site June 2013

6 On-Site Northwest • June 2013

President • Barry Blanton VP Finance • Mark Grey Past President • Faye Crow VP Membership • Glen Bachman VP Communications • Christy Mays

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listed for virtually all job descriptions is good communication. A new white paper just published by the Institute of Real Estate Management (IREM®), explores just what it takes for real estate managers and practitioners in other fields to become effective com-municators, and therefore better lead-ers.

Titled simply “Leadership Development: Effect ive Communication,” the publication is the third in a series of IREM® white papers that will examine various leadership-related topics. It acknowl-edges at the outset that the ability to communicate with others is one of the toughest skills to master, particu-larly because the meaning of any communication is determined by the person receiving it, not the person delivering it. Consequently, the same message can mean different things to different people. Observing that per-haps the simplest definition of effec-tive communication is when every-one receiving information ascribes to it the same meaning that was intend-ed by the sender, the white paper goes on to address:

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The Institute of Real Estate Management (IREM®) is an interna-tional community of real estate managers dedicated to ethical business practices, maximizing the value of investment real estate, and promoting superior manage-ment through education and information sharing. An affiliate of the National Association of REALTORS®, IREM is the home for all industry professionals connected to real estate management – and the only organization serving both the multi-family and commercial sectors.

We believe that good management matters, and that well-managed proper-ties pay dividends in terms of value and in the quality of life for residents, tenants and customers. We believe in professional ethics. We believe in the power of knowl-edge and the importance of sharing it.

IREM offers a variety of membership types for professionals of every experience

level, from on-site managers to high-level executives. Our credentials, earned by meeting high standards of education, experience, and ethical business practices, include: Certified Property Manager® (CPM®), Accredited Residential Manager® (ARM®), Accredited Commercial Manager (ACoM), or Accredited Management Organization® (AMO®).

Since 1933, IREM has set the standard for best practices in real estate manage-ment. Today, IREM® membership includes nearly 18,000 individuals and 550 corporate members. To learn more about the IREM and its chapter network, call (800) 837-0706, ext. 4650 (outside the U.S. call (312) 329-6000) or visit www.irem.org.

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On-Site Northwest • June 2013 7

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building’s energy use with tenants, buyers, lenders and other qualified parties upon request. The City build-ing report includes office buildings, libraries, fire and police stations, community buildings and more.

The assessment found that City-owned downtown buildings (City Hall, Justice Center, Seattle Municipal Tower, Central Library) are more energy efficient than the national average. The Seattle Municipal Tower has an EPA ENERGY STAR score of 93 out of 100 (50 is average), mean-ing it is more energy efficient than 92 percent of similar buildings nation-wide. More than 3,000 people work at this 62-story high rise that uses about 40 percent less energy than a typical building of its size. Regularly monitoring and quick action to address in energy use helps the City keep the building performing at the top of its class. For example, continu-ous energy tracking led managers to reduce weekend heating and light-ing when fewer people use the build-ing.

On the whole, the City’s extensive public library system uses about 42 percent less energy than other U.S. libraries. Seattle’s libraries use about 61 kBtus (thousand British thermal units) of energy for each square foot of space, whereas U.S. libraries on average use about 104 kBtu per square foot.

City building energy use was com-pared to that of similar buildings throughout the nation – information provided by the U.S. EPA’s ENERGY STAR program and the Energy Information Agency’s Commercial Building Energy Consumption Survey (CBECS). Private building owners can also use ENERGY STAR and CBECS data to see how their buildings stack up to others nation-ally.

“We applaud the City for taking a detailed assessment of the energy performance of its buildings and sharing this information with the public. Seattle 2030 District members share building energy performance within our organization allowing participants to compare results, share best practices and make our build-ings perform at higher levels of effi-ciency. The City’s disclosure of its data is a welcome step in providing useful information from which the market can learn," said Brian Geller, Executive Director of the Seattle 2030 District. The Seattle 2030 District is a collaboration of leading building owners and managers, including the City of Seattle, in downtown Seattle committed to significantly reducing environmental impacts within the built environment.

While this is the first time City building energy use has been made

public, the City has a long history of monitoring and improving the ener-gy efficiency of its facilities, includ-ing recent energy efficiency upgrades at 17 City facilities. One upgrade—a chiller at Seattle Center’s central plant that cools more than one mil-lion square feet of space—is project-ed to cut electricity use by 13 percent. This and other energy conservation efforts have saved the City and tax-payers $1.25 million since 2008.

The City is currently developing a comprehensive Resource Conservation Management Plan to build on its energy efficiency track record. The Plan will outline strate-gies to improve the energy efficiency of City’s building portfolio by 20 percent by 2020 (from a 2008 base-line).

As of April 1, owners of all com-mercial and multifamily residential buildings 20,000 square feet or larger are required to annually benchmark and report energy use to the City. Already, more than 90 percent of large building owners (50,000 square feet and above) have reported their building’s energy use.

For more information on Seattle’s Energy Benchmarking and Reporting Program and free benchmarking sup-port, visit: www.seattle.gov/energy-benchmarking or call (206) 727-8484.

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Page 9: The Landlord Times On-Site June 2013

Dear Maintenance Men:I have a three-vehicle carport

that has no electricity or wiring whatsoever. I plan to have wiring installed for lighting purposes and to add garage doors (w/ automatic openers) to close off the carport. Since I am engaging in this project, I figured this was a great time to prepare the carport/garage for future and potential electric car use. What specific items should I keep in mind for this upgrade, e.g. volt-age/amps, location of outlet (driver/passenger side; front or rear of car; distance)? Will the car come equipped with an extended charg-ing cord or would I need to supply one? Ruben

Dear Ruben:In a past article we wrote about elec-

tric charging stations in the garage. Part of the article is below: “Electric cars make a lot of sense for those com-muting thirty or forty miles a day. Many of the new electric cars coming out will allow charging from a 110 volt/15amp outlet. But, that is marginal at best. We would recommend installing at minimum, a dedicated 240 volt/40 amp outlet in each stall or garage. Opti-mally if you are going through the

expense of running 240 volts, back it up with at least 80 to 100 amp service. This will allow for future expansion and eas-ily charge two 40 amp electric cars at one time. The outlet station should be no more than 25 feet from the vehicle. This is pretty heavy duty electrical work and we would recommend you use a qualified electrician who understands what you want to do.”

A station using 110/120volt is know as a Level 1 EVSE Charging Station. A Level 1 station is the minimum needed to recharge an electric vehicle and may take anywhere from 10 hours to 24hours to fully recharge a vehicle depending on battery capacity.

220/240volt station is known as a Level 2 EVSE Charging Station. A Level 2 station will require a 220/240 outlet for operation. The Level 2 station will charge a typical electric vehicle in six to eight hours.

Greater or faster charging power will require a larger electrical service not typically found in residential buildings.

Electric cars are a relatively new and emerging technology and jumping too early on the bandwagon may be costly. That being said; wiring existing garages, carports with 220/240 capacity is a good idea. Installing the actual charging station should be on a wait and see basis. Keep in mind, Level 1 & 2

Charging Station range in cost from $1000 to $2500 on up not including the cost of installation. The best location for a charging station is hard to answer, as each electric vehicle will be different. At this time, most vehicles seem to use the old gas tank port as an electrical recep-tacle and that port could be on either side of the vehicle. A front or rear port is also possible. For ease of installation and standardization, we would recommend a front of vehicle install of the charging station. The charging stations come with an adequate cord length for most vehicle applications. EV Chargers will charge any car with the SAE J1772 standardized plug which all new cars in the US are using. If you have Nissan Leaf, Mitsubishi i-Miev, or Chevy Volt, all you need is a 240V 15A device, since these cars only have a 3.3kW/h inverter built in. This website has a lot of useful information. http://www.plugin-recharge.com/2011/08/residential-evse-roundup.html

Dear Maintenance Men:The concrete and brick sidewalk

leading into my building has accu-mulated unsightly chewing gum. My power washer doesn't remove it. How can I get that stuff cleaned up? Once clean, is there any surface treatment to prevent gum from

sticking? Korey

Dear Korey:There are a number of ways to remove gum from a brick or concrete sidewalks. Spray the gum with an aerosol freezing agent or place dry ice on the gum for a few minutes. The gum will become very brittle and should be easier to pry off the surface with a putty knife or scraper. It may take a few tries to remove all the gum. If there is any gum remaining, spray WD-40 or vinegar and let it soak to dissolve the remaining gum. Use a scraper or stiff brush to remove the rest of the gum. After all the gum is removed, use a power sprayer to deep clean and remove any gum residue. If you still have discoloration on the con-crete, use muriatic acid & water mix-ture to bleach the concrete. To keep the gum from sticking to the concrete or brick sidewalks in the first place; use a waterproofing sealer on the sidewalk to reduce the likelihood of the gum sticking to the surface. Dear Maintenance Men:

A resident had a flood in his unit and could not immediately get hold of the resident manager. It was almost an hour after the incident

By Jerry L'Ecuyer & Frank Alvarez

Dear Maintenance Men:

8 On-Site Northwest • June 2013

ON-SITE

Continued on page 9

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Page 10: The Landlord Times On-Site June 2013

On-Site Northwest • June 2013 9

Dear ...continued from page 8

ON-SITE

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before a plumber could solve the problem. Because the resident manager can not be expected to be at the building 24 hours a day, seven days a week; is it wise to show my tenants how to shut down the water and gas in case of an emergency? Mark

Dear Mark:Regardless of the size of the property;

an emergency procedures policy should be in place. Part of the procedure should include posting basic water, gas and electrical shutdown procedures in the laundry room, mailbox area and in the move-in packet of each resident. Include the shut-off locations and instruction on how to accomplish the shutdown along with emergency telephone numbers for the plumber, gas company & electrician. Be sure all the shut-off locations are clear of debris, bushes and are accessi-ble. Replace any old or worn out valves that could fail in an emergency situa-tion. All water gate valves should be

replaced with ball valves for a positive shut down.

QUESTIONS? QUESTIONS? QUESTIONS?

We need more Maintenance Ques-tions!!!

To see your maintenance question in the “Dear Maintenance Men:” column, please send submission to: [email protected] Please “Like” us on Facebook.com/Buf-faloMaintenance

Please call: Buffalo Maintenance, Inc for maintenance work or consultation. JLE Property Management, Inc for management service or consultationFrankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01216720Certified Renovation Company Websites: www.BuffaloMaintenance.com & www.ContactJLE.com www.Facebook.com/BuffaloMainte-nance

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Page 11: The Landlord Times On-Site June 2013

10 On-Site Northwest • June 2013

35

market conditions change, many leasing

consultants are eager to use rent con-cessions and other incentives to entice people to rent at their commu-nities. Yet even when there are few vacancies, it’s hard to break the habit of readily promoting a “bargain,” rather than the value received for the price. The following concern was recently brought to my attention by a property management company:

Q: My leasing staffs have become so conditioned to using rent conces-sions and other types of incentives at the first sign of an occupancy prob-lem, I think they are actually selling the concessions, rather than the avail-able apartments. Even when we only have a few vacancies, they immedi-ately want to resort to the use of concessions, rather than get creative to sell the value of their product. What can we do to get out of this vicious cycle, especially if this is what our competition is doing?

A: This is a very “sore” subject as concessions are meant to solve the very problem they create: rent loss. To further add insult to injury, rent concessions and deposit incentives will ultimately devalue a community over time. The rental market goes through cycles, just like everything else. If you teach your employees how to sharpen their leasing skills and offer rewards for NOT using concessions, then you will enable them to “ride out the storms.” You can also network with the competi-tion in your area. If your rents are all approximately the same price per square foot and no one is “giving away the farm,” then everyone will have some “honest” competition. If you lose a prospect to the communi-ty down the road, then find out why and figure out what you can do about it. (i.e. If they have an exercise room and you don’t, maybe you can work out a deal for your residents with a local health club, etc.)

Quality promotions, like open houses, prize drawings, parties, etc., can increase traffic and boost employ-ee morale. However, rent reductions

and low move-in costs will ultimate-ly have a negative impact on your existing residents and compromise the quality of your resident profile. Sure. You might move in MORE people with all the “deals,” but how long can they afford to stay once the rent goes back up? Higher turn-over affects the stability of the “commu-nity” environment you have created, and also increases the “wear and tear” on your apartments. Plus, how will these “shorter term” residents pay to restore the apartment to its original condition on the way out, if they didn’t have to pay a full deposit on the way in? Concessions cannot take the place of skillful leasing. They are merely a “quick fix,” which create problems and challenges of their own. You must invest in quality training and come up with creative incentives to motivate your leasing staffs. In addition, you will have to educate other property management companies in your area on the value of “fair” competition in order to “level the playing field.” This will pay off in higher occupancies and increased revenues for EVERYONE!

Are you dealing with a unique challenge or unusual situation at your community that you would like to see addressed next month? The Secret Shopper would like to invite you to send in your questions, as other people may be dealing with the same or similar issues. - You will remain as anonymous as the Secret Shopper! Please ASK THE SECRET SHOPPER by making contact via e-mail. Your questions, comments and suggestions are ALWAYS wel-come!

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Page 12: The Landlord Times On-Site June 2013

On-Site Northwest • June 2013 11

ON-SITE

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While researching unique per-spectives on move-ins and move-outs in the property management world, I kept attempting to resort to a metaphor. Then I came across the origin of the word “metaphor” itself, which means “to carry” in Greek. In the context of a typical metaphor, the “carrying” is referring to the sense of one word to a different word, but I figured there were other ways to ma-nipulate the idiom. So after repeating “Moving tenants in and out of apart-ment complexes is like…” over and over in my head with no accurate figure of speech coming to mind, I started thinking of all the ways that “carrying” is associated with mov-ing. Not only for the obvious reasons of moving boxes in and out, but in the mindset of a landlord, transfer-ring and carrying out promises, pa-pers and the term of the lease.

What every owner or property manager of an apartment building needs to do first is establish move-in and move-out procedures. The only way to successfully move tenants in and out with the least amount of con-flict is to enforce a set of procedures applicable to all. Having concrete guidelines to address all that comes up when a unit turns will facilitate smooth transitions. The move-out and move-in procedures will require checklists to ensure that the person overseeing the transition has a list to refer to when inspecting.

Let’s start with a typical move-out. When a tenant gives notice, utilize the amount of notice that is currently required in the market. Twenty days is plenty of time to co-

ordinate with them a pre-move-out inspection which will not only ben-efit them, but benefit you in the long run as well. Come prepared with a “make ready checklist.” Schedule the necessary vendors (a carpet cleaner is almost always required.) Are the drapes gross and dusty? Do the cur-rent tenants want to/have time to clean them? Have they offered to do the nitty-gritty cleaning and have you highlighted how clean it has to be? If you thoroughly describe the condition that the apartment has to be in, it will ensure that nothing slips through the cracks upon move out. You don’t like having to clean more than you anticipated and do so in too short of an amount of time, just as much as past tenants despise receiv-ing deposits back which are half of what they were expecting.

Conduct the move-out inspection WITH the tenant present. Close re-spective utility accounts. Seattle City Light provides a straightforward website and by just clicking the few buttons necessary, it saves the hassle for you and the tenant in the long run as well. CHANGE THE LOCKS! This is an important turnover task because no matter how friendly and moral driven a tenant may seem, they could have given a key to a friend over the past nine years of their ten-ancy, so who knows who could have access to that given unit! Ensure that the smoke detectors are working and have battery life. Lastly, spruce up the unit to prepare for walkthroughs. The past tenants should have left it in immaculate condition but if there’s anything that catches your eye, take

the time to make those small adjust-ments because they will make a dif-ference from the eye of a prospective tenant.

After you have conducted walk-throughs and found the tenant of your dreams with a check in their hand and a green thumbs up on their application, you are ready to perform the correct steps for moving in a ten-ant. Schedule the move-in with them so that you accommodate their needs and show that you are available to welcome them into their new home. On the day that they settle in, open up their utility account to ensure that there are no date conflictions with the respective unit’s meter readings. On that same day take care of everything to do with the lease. Ensure that they have signed in all the necessary ar-eas and have fully studied the terms and lease in its entirety. During their move-in walkthrough, require that they complete their move-in inspec-tion form, so that you are not held liable for anything that they hadn’t caught after they have already moved in. Once all of the above steps are complete, bring out those shiny keys that you are now able to confidently place in their hands. The jingle you’ll hear will symbolize success ringing in both of your ears.

Ultimately, moving is a metaphor in and of itself. A landlord is transfer-ring and carrying out their promise to each tenant as they come and go. The relationships that you build with your residents begin with their expe-rience upon move-in and are “carried out” when it comes time for them to leave. Tenants will have a lasting im-pression on their living experience with a certain company or individual so being overly thorough through-out each tenancy life cycle can only benefit. To quote a current relevant movie and book, as a landlord you might occasionally feel discouraged as Gatsby did at the end of his novel: “So we beat on, boats against the cur-rent, borne back ceaselessly into the past.” Follow these steps on moving tenants in and out of your units and turnovers will become as smooth as if you are floating with the current rather than against it.

Lauren Ginder, Pacific Crest

Property Management Lauren can be reached at

206-812-9144 or via email at: [email protected].

www.pacificcrestpm.com

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Page 13: The Landlord Times On-Site June 2013

12 On-Site Northwest • June 2013

ON-SITE

The sun is out and you’re prop-erty is no longer hidden, and, due to your busy schedule during the Fall and Winter months, your rental property may have become a mag-net for crime or suspicious activity. It’s time to ask yourself, “Is my property’s exterior appearance invit-ing to criminals, deadbeats or other unsavory characters?” Unfortu-nately, many landlords surrender a majority of the control of their prop-

erties exterior upkeep to tenants. However, a landlord is obligated to make sure the aesthetic and physical nature of the property is attractive to honest renters and unattractive to dishonest tenants. Landlords can do their part by taking on a few house-keeping items to help prevent crime from happening at the apartment or rental home, and to keep the neigh-borhood a desirable place to live.

The idea is simple; natural sur-

veillance. Natural surveillance, a term coined by Crime Prevention Through Environmental Design, known as CPTED (pronounced “Sep Ted”); a field of knowledge devel-oped to demonstrate that the archi-tecture of some buildings deters crime while that of others encour-ages it. This concept includes exte-rior illumination, landscaping, and general property maintenance. Replace any missing or burnt out light bulbs. Install motion-detecting fixtures if none exist. Trim all shrubs to allow visibility from both inside and outside the unit and in such a way as to not promote humans to hide behind them. Prune any tree branches hanging below 6’. Clear the property paths of any debris to the entrance of the home and install a stone walkway or something simi-lar to deter wandering. Make it clear to visitors where they are expected to enter the rental property from and have a freshly painted front door to welcome them. Main-tain the fence in good repair; address graffiti immediately, replace broken sections as needed, keep pets in but leave gaps to maintain visibility. Make sure address numbers are clearly posted for potential renters

or apartment residents to easily find the home as well as for emergency vehicles. “No Trespassing” signage is agreeably unattractive, but that’s the point of them! Simple signage is virtually effortless yet loudly con-veys to others that you mean busi-ness in maintaining your real estate investment.

Taking care of these basics will make at least a psychological impression that someone cares. Crime is less likely to occur if crimi-nals feel like they may be seen. Pro-tect against neighborhood decay. Remember, your investment prop-erty is an extension of you.

Katie Poole – Hussa is a Licensed Property Manager, Continuing Educa-tion Provider and Principal at Smart Property Management in Portland, OR. She can be reached with questions or comments at [email protected].

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Excuse of the Day"I got into a car accident going to the city this morning because I was texting:( lesson learnt- It's gonna cost me over 2K since I

have no insurance. My bichon will need an X-ray. God will provide."

I'm sorry to hear that, let me know if I can help. I hope it doesn't cost you too much. (My heart said ok you can pay this months rent in

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the other hand why should I help irresponsible people?

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John Nuzzolese, Landlord Protection Agency 877-984-3572, www.TheLPA.com

Page 14: The Landlord Times On-Site June 2013

Moving to a new house, condo, or apartment this spring? Before filling your home with furnishings, there's something you might want to do first: paint. Experts of every stripe - from realtors to authorities on painting -- say that one of the very best times to do interior painting is just before moving into a new home. Here are six reasons why, according to Debbie Zimmer, paint and color expert for the Paint Quality Institute:

Reason #1

It's easy now. Interior painting is a very simple project - and not at all physically demanding -- when you can move freely within a room. Why wait till later when you may have to move heavy furniture from side to side, or work around big items, to do your painting?

Reason #2

It saves time. Painting can take a lot longer when you have to cov-er and uncover things, move them back and forth, and take down and re-hang artwork. It's better to paint just before moving and short-circuit these time-consuming and unpro-ductive steps.

Reason #3 It can save you money - lots of it.

If you're using a professional paint-ing contractor, he or she can complete the work far faster in rooms that are empty. That's extremely important, since time charges for labor typically account for 80% of the cost of paint-ing, according to Zimmer. "Bottom line: Calling in a contractor before moving into a home can drastically lower the cost of painting the space," she says.

Reason #4

It safeguards your furnishings. No matter how carefully you or your contractor work, there is always the chance of a paint spill, or a few stray flecks finding their way onto a prized possession. Painting before bringing in your furnishings keeps these items out of harm's way.

Reason #5

It can simplify interior decorating. Don't yet have your furnishings? There's no better way to set the stage for your décor than by adding a fresh paint color scheme before decorat-ing. Doing so greatly simplifies the selection of new furniture, carpeting, and accents, allowing you to choose

just the right tints, tones, and shades to make your new home picture per-fect.

Reason #6It feels good. Adding a new coat

of paint makes any home seem clean-er, fresher, more welcoming, and best of all. . .more "yours". To keep your paint job looking great, Zimmer recommends the use of top quality 100% acrylic latex paint; it will pro-duce a more stain resistant finish that will look new-home fresh for years to come.

As you can see, there are a lot of good reasons to think about paint-ing even before you move into your new abode. If you're sold on the idea, you can find all sorts of color tips and how-to information at blog.paintquality.com or on the Paint Quality Institute's website at www.paintquality.com.

About the Paint Quality Institute (SM). Since 1989, The Paint Quality Institute (SM) has been educating people on the advantages of using quality interior and exterior paints and coatings. The Paint Quality In-stitute's goal is to help educate con-sumers, contractors and designers by

providing information on the virtues of quality paint as well as color trends and decorating with paint through a variety of instructional platforms and conferences, and traditional and new media vehicles. More informa-tion can be found at www.paintqual-ity.com.

Debbie Zimmer, PQI Director of Communications and Alliances Dow

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town Road, PO Box 904, Spring House, PA 19477. Office: 215-619-1683.

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Six Reasons to Paint Before You Move InThe guide to successfully turning units

On-Site Northwest • June 2013 13

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Page 15: The Landlord Times On-Site June 2013

he Washington Multi-Family Housing Association is cele-

brating our 10th Year Anniversary this month with a remembrance of our past and excitement of our future.

Interviewing key early contribu-tors to the formation of our associa-tion, one theme prevailed, and that was the passion, vision and commit-ment of those who worked tirelessly to form and grow our association those many years ago. The synergy of that early group of people, pow-ered by the desire to: develop an association that can enhance the careers of those in the industry; pro-mote the businesses of those who serve the industry; and improve the lives of those we serve, was a labor of love for the talented people involved.

From our humble beginnings, working out of the garage of one of our founding members, our early affiliation with the National Apartment Association allowed us the opportunity to offer dynamic educational courses, provide legisla-tive advocacy, and enhance profes-sionalism for our membership. Our

membership grew over time, from 20,000 units and 140 members in our first year to over 110,000 units and 830 members today.

This year, we have listened to our members and expanded our educa-tional opportunities, from our Certified Apartment Manager (CAM) courses to our Certificate for Apartment Maintenance Technicians (CAMT) designation as well as add-ing marketing and affordable hous-ing training options. We have increased our networking and infor-mation sharing events to assist our industry partners to reach their tar-get market. We have been more deliberate and consistent in our com-munication. Our primary goal is to ensure we are delivering quality and value to our members and the indus-try.

During the legislative session, over 20 of our members and staff traveled to Olympia to meet with our state legislators to discuss our positions on pending bills and to solicit support for legislation favor-able to our industry. Delegates of WMFHA also traveled to Washington D.C. to meet with our congressmen

and women to create partnerships and relationships with our Senators and House of Representative mem-bers from Washington State in order to educate them on the importance of the apartment industry to the national economy and the need for thoughtful legislation conducive to our industry’s growth.

In February, we held our 3rd annual Emerald Awards gala, honor-ing the best of the best in the indus-try and paying recognition to the individuals who make our industry strong. The lifetime achievement award was bestowed upon Mr. John Goodman, founder of Pinnacle, today one of the largest management companies in the country.

Our March Membership Meeting included an economic forecast update by economist Matthew Gardner. Matthew provided outstanding information including market trends and employment dynamics to the large crowd in attendance.

In April, we focused on educa-tional hands-on training for our maintenance service team members at our annual Maintenance Summit trade show featuring the Maintenance Mania competition. Attendees chose from a variety of maintenance classes to enhance their knowledge and career skills and to learn ways to save money for their owners. Maintenance Mania winner Angel Munoz from CTL Management will represent Washington in the national competition in San Diego this month.

Our Education Conference and Exposition in May brought together management personnel for a fun and

informative day with national and local speakers on such topics as rep-utation management, generational differences and unique marketing principals. The day culminated with our Think Tank brainstorming ses-sion, with dynamic and interactive solutions to challenges and problems brought forth by attendees. The ideas generated during this brainstorming event were published and will help management personnel solve their everyday problems.

During our June Membership Meeting, Sunny Kobe Cook provided inspirational advice on growing your business, building relationships and brand marketing effectiveness. We honored all of our past association presidents and board members, as well as our founding members, and reminisced about milestones and accomplishments during the history of our association.

As our association embarks on our second decade as an organiza-tion serving the rental housing indus-try, we look forward to improving our technology, refreshing our web-site and exploring ways to be more efficient and service oriented. We are an association lead by our members, for the benefit of our members, with a goal to improve the industry we all care about and make a positive impact upon the quality of life in our community. Thank you all for your continued support. We are honored to be your association and excited about growth in the future.

14 On-Site Northwest • June 2013

Please Visit us at

www.TheLandlordTimes.com

WMFHA – Working For YouT

Executive Director • Jim Wiard President • Jay Olson Vice President • Joe Manca Past President • Cassandra Haavisto

Secretary • Gail Duke Treasurer • Brett Stevens Vice President of Suppliers Council • Barry Savage

WASHINGTON MULTI-FAMILY HOUSING ASSOCIATION

18300 Cascade Ave. S., Suite 130Tukwila, WA 98188

(425) 656-9077(425) 656 9087 (fax)

[email protected]

Happy 10th Anniversary

To

The Washington Multi-Family Housing Association

WWW.WMFHA.ORG

A proven leader in advocacy and education for the multi-family housing industry, WMFHA has become a strong, vital trade organization thanks to leaders and innovators who are passionate and committed to the success of multi-family professionals. Membership in WMFHA provides opportunities for business growth, personal and career enrichment, and allows avenues to give back to the industry and community. Join WMFHA today and leverage the influence and stability of membership in the National Apartment Association. Your involvement is critical as they embark on their next chapter.

BEST WISHES TO WMFHA!!

7/1/13.

Page 16: The Landlord Times On-Site June 2013

Following the strongest cement consumption gains in seven years in 2012, cement consumption growth will continue in 2013 with a 6.2 per-cent increase. According to the latest forecast from the Portland Cement Association (PCA), the majority of market recovery will occur in the second half of 2013.

"Recessions correct imbalances generated during boom periods," Ed Sullivan , PCA chief economist said. "Few economists doubt the genera-tion of a large pent-up demand dur-ing the past several years. The ques-tion is, when the economy will unleash its potential for strong growth?"

The recession has created a pent-up demand not just for consumer products but also construction. For example, PCA expects housing starts, to reach nearly 1 million in 2013. Multifamily construction also con-tinues to grow at a strong pace and this trend should continue as favor-able fundamentals fuel the sector.

Multifamily starts recorded a 55 per-cent gain in 2011 and 36 percent growth in 2012. PCA expects an addi-tional growth of 29 percent in 2013 to 318,000 units.

"Although nonresidential and res-idential will be in full recovery in 2013, public construction will act as a drag on cement consumption this year," Sullivan said. "However, as the economy gains momentum in 2014, job gains will strengthen states' fiscal conditions and support stron-ger construction spending."

The accelerated consumption pre-dicted during the second half of 2013 should carry into the following year. PCA projects an increase of 9.2 per-cent for 2014.

PCA also upwardly revised its long-range projections for 2015-2017. Annual growth during that period is expected to be as high as 11.1 per-cent. PCA predicts cement con-sumption levels will reach 120 mil-lion metric tons by 2017.

About PCAThe Portland Cement Association rep-

resents cement companies in the United States and Canada. It conducts market development, engineering, research, edu-cation, and public affairs programs. More information on PCA programs is avail-able at www.cement.org.

Note to editors: For additional infor-mation, contact Patti Flesher at

[email protected]. Portland Cement Association. www.cement.org

PCA Remains Optimistic; Expects Strong Growth in Cement

Strong Economic Momentum Expected to Spillover to Construction

ON-SITE

15On-Site Northwest • June 2013

www.TheLandlordTimes.com

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16 On-Site Northwest • June 2013

President • Rob Trickler Past President • Judith Violette 1st Vice President • Darlene Pennock Treasurer • Gina deWeber Secretary • Donna Lee Smitt

WASHINGTON APARTMENT ASSOCIATION

1500 Water St. SW, #5, Olympia, WA 98501 • (360) 951-1426 • www.waapt.org

The nation's largest mort-gage servicers have distributed $1,168,242,476 in direct relief to 15,508 distressed homeowners in Washington state or about $75,332 per homeowner as part of the Na-tional Mortgage Servicing Settle-ment according to an update re-leased today by Joseph A. Smith, the Settlement administrator.

The Settlement was reached over a year ago when HUD, the Depart-ment of Justice and 49 state attor-neys general reached an agreement with nation's five largest, mortgage servicers - Bank of America, Wells Fargo, Citibank, J.P. Morgan Chase and Affinity (formerly GMAC) - to address mortgage loan servicing and foreclosure abuses.

Nationally, the Settlement Ad-ministrator also reported today, as of March 31st the five servicers have distributed $50.63 billion in direct relief to over 620,000 homeowners, or roughly $81,000 per homeowner under the Settlement. The Adminis-

trator's update report can be found at https://www.mortgageover-sight.com/map-reports/updated-consumer-relief/

The assistance provided by the servicers included modifications of 1st and 2nd mortgages, forbearance agreements, short sales and deeds-in-lieu of foreclosure. The report demonstrates significant progress on the broadest and most robust principal reduction program in the nation's history. New York hom-eowners have received more than $1.9 billion in consumer relief.

"One year in," said HUD Secretary Shaun Donovan, "it is clear that this historic settlement is making a pro-found difference on lives and com-munities. We have far surpassed expectations in our efforts to assist struggling Americans. Due to the ef-forts by 49 bipartisan state attorneys general and the federal government, hundreds of thousands of people are able to stay in their homes or avoid foreclosure, preventing the erosion

of the social fabric of our commu-nities. As a result of the settlement, over 620,000 homeowners have re-ceived on average more than $81,000 in benefits thus far."

"The Monitor's latest update reaf-firms a simple truth: that large-scale principal reduction is an important tool in preventing foreclosures. We look forward to reviewing the Moni-tor's compliance reports next month. We will also continue to keep a close eye on the banks to ensure they live up to their end of the deal when completing their consumer relief requirements and their progress on implementing new and improved servicing standards," Donovan con-cluded. " We will not stop until ho-meowners get a fair shake."

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD is working to strengthen the housing mar-ket to bolster the economy and protect consumers; meet the need for quality

affordable rental homes: utilize hous-ing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does busi-ness. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www.facebook.com/HUD. or sign up for news alerts on HUD's News Listserv.

National Mortgage Settlement Provides More Than $1.1 Billion in Relief to 15,500 Distressed

Washington State Homeowners

18

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Page 18: The Landlord Times On-Site June 2013

On-Site Northwest • June 2013 17

oday property management is a different industry than it

was 20 years ago, much different. As managers progress technologically so do their clients. These clients want 24/7 access to their property data and expect constant communication. Managers who are accountable, flex-ible and work to integrate new tech-nology into their process are poised for immediate and future success

At Bluestone & Hockley we use programs and web platforms aimed to increase transparency, communi-cation and client security. Our man-agers can spend more time improv-ing properties, decreasing vacancy and increasing value. Today’s man-ager must be trained and kept up to date on the latest updates and pro-grams. Docusign, NetVendor and RentManager are just a few of the programs Bluestone & Hockley has quickly adopted and implemented for cutting edge management.

Rent Manager: Because of The wide range of properties under the Bluestone and Hockley’s umbrella needs a highly sophisticated plat-form is needed. From commercial properties to homeowners associa-tions, Rent Manager allows B&H

property managers to restrict prop-erties to designated bank accounts, create property groups and pull cus-tomized, detailed, accounting reports based on these groups and electroni-cally file monthly financials with a few key strokes. Besides its organiza-tional skills the software saves thou-sands of sheets of papers and rooms of filing boxes, and with environ-mental concerns taking precedent this is a definite plus.

Net Vendor: How do you know the technician you hired to replace the drywall in your 100 unit complex is reliable and professional? Are they licensed and bonded? With NetVendor these questions won’t enter your mind. NetVendor filters vendors through its system checking insurance, backgrounds, and valid trade licenses. All this information assures the work will be completed by a professional and licensed tech-nician. Property Managers can also “rate” the quality of vendor, which improves the vendor selection pro-cess.

vFlyer: vFlyer is an online service for creating standardized, profes-sional-looking classified ads. Design templates are included in the service,

optimized for sites like Craigslist, Zillow and Trulia. The advanced software targets large audiences both online and offline and the posts are easily linked and can be embedded on websites and other pages.

Bake Extra Cookies: Craigslist has become a hub for rental advertise-ments and Bake Extra Cookies has the resources and knowledge to cre-ate an effective Craigslist ad. There tagline is “Get Leases By the Dozen” and they call themselves “your prop-erty advertising platform”. Their system, which provides a simple way to create successful online advertise-ments optimized for the web, is effec-tive and has become a useful tool for managers and leasing agents.

Docusign: This software service provides cloud-based electronic sig-nature technology allowing manag-ers to send secure documents at light speed. This process saves manager’s time and gives tenants and owners a convenient way to sign important documents anywhere, without the manager chasing autographs the whole day.

PayLease: With PayLease property managers have the ability to collect rent, dues and lease payments elec-

tronically. The software improves funding time so managers aren’t waiting by the mailbox to collect checks. Custom web integration is also used to embed the PayLease services into a company’s website making payment simple and fast.

CellPhones: How significant is it if all the applications listed above can be accessed on a cellphone? The min-iature computers in our pockets give property managers the ability to stay connected with their clients, check the progress of service orders, reply to e-mails, and monitor rent collec-tion all while out of the office. Mobile information and communication are big reason why the property man-agement industry has become so dynamic and multifaceted. Managers are taking on more as their ability, knowledge and connectivity develop with the advances in mobile technol-ogy.

This industry has been fast to inte-grate new developments into every operation. Adopting these programs and methods to expand a property manager’s ability to quickly market and communicate with owners, ten-ants and vendors has raised the per-

T

BLUESTONE & HOCKLEY

Elena Tangman-Wells, Executive VP, Bluestone & Hockley Real Easte Services

The Changing Landscape of Property Management

Continued on page 22

Page 19: The Landlord Times On-Site June 2013

18 On-Site Northwest • June 2013

ON-SITE

Would you like an easy way to track the performance of your prop-erty management SuperStars? Will a large on-site activity board really make a difference? You bet! This ar-ticle will give you three easy ways to improve the performance of the properties you manage because what you see is what you get!

Setting up your on-site activity board:

Start by ordering a large erasable board from your local office sup-ply store, the bigger the better (hint, a big board = assumed big results!) and mount this board on a wall eas-ily seen by your leasing team but not visible to your residents or future residents. Use this activity board to track the performance of each prop-erty, highlighting the “critical” fac-tors for success. Initially, track each property’s leasing activity, resident retention percentages, units available, the number of daily apartment tours, closing ratios of tours versus leased units and maintenance requests. This on-site activity board is also a perfect place to forecast the monthly team goals for each property you manage and gives each team member a way to see how the month is progressing. At the end of each month, schedule a regroup meeting [request article #5 for the steps to run a regroup meet-ing] to summarize the performance of the most recent month. Then, erase the board and set new individual and team goals for the upcoming month.

Tip From The Coach: After you have installed your eras-

able on-site activity board, assign a unique marker color to each person at the properties you manage. This

“pride of ownership” means that each person on your leasing team will have great enthusiasm in mak-ing sure they can see as much of their marker color on the board, as the rest of the team. Sounds crazy, but it works!

Ranking top performers: Using your on-site activity boards,

recap the monthly performance for each person at each of the properties you manage and develop a ranking report. Use this report to track the SuperStars in your property man-agement company and circulate this information company-wide. This ranking report should reward top monthly performance both individu-ally and as a team, depending on the areas you are measuring. This rank-ing report should also summarize your SuperStar performers for the month, by the quarter and year-to-date. By reflecting these three time periods, everyone is given a chance to shine and each individual within your company can see how their performance compares to the best within your property management company.

Tip From The Coach: Based on the results from your

ranking reports you can now cre-ate leasing incentive programs and build new compensation plans with much greater accuracy. In addition, your ranking reports will also be-come a powerful tool for calculating quarterly projections and developing each year’s budget. Lastly, try and keep your “critical” factors for leas-ing success on a one-page report, if possible.

Tracking your key prospects: Now, set-up a place on your on-

site activity board to track the prog-ress of key off-site marketing op-portunities. For instance, if five new residents have come from a large nearby company, ask your leasing team to put their name on the on-site activity board and leave a space to track the number of contacts being made with this company. Or, gather a sample of this month’s guest cards and see if there is a common zip code or section of town where your future residents are coming from. Then, list this zip code as a key area for your leasing team to visit when they are doing their off-site marketing.

Tip from The Coach: Be certain your leasing team works

their key prospects consistently while continuing to be “professionally per-sistent”. Ask your leasing team to work like “heart surgeons”. A heart surgeon can apply a little pressure in a small area and get giant results. The same thing will happen for your leas-ing teams when they see the results of focusing on their key prospects.

Want to hear more about this impor-tant topic or ask some additional ques-tions? Send an E-mail to [email protected] and The Coach will E-mail back to you a free invitation to be a participant on a PowerHour conference call. On this call we will discuss the type of informa-tion to put on your activity boards and how to develop a performance ranking report for the properties you manage, us-ing a one-page form.

Author’s note: Ernest F. Oriente, a business coach since 1995 [30,400 hours], a property management industry professional since 1988--the author of SmartMatch Alliances--and the founder of PowerHour...[ www.powerhour.com and www.powerhourseo.com and www.pirmg.com ], has a passion for coaching his clients on executive leadership, hiring and motivating property management SuperStars, traditional and Internet SEO/SEM marketing, competitive sales strategies, and high leverage alliances for property management teams and their leaders. He provides private and group coaching for property management com-panies around North America, executive recruiting, investment banking, national utility bill auditing [ www.powerhour.com/propertymanagement/utilitybil-laudit.html ] national real estate and apartment building insurance [ www.powerhour.com/propertymanagement/insurance.html ], SEO/SEM web strat-egies, national WiFi solutions [ www.powerhour.com/propertymanagement/nationalwifi.html ], powerful tools for hiring property management SuperStars and building dynamic teams, employee policy manuals [ http://www.power-hour.com/propertymanagement/employ-eepolicymanuals.html ] and social media strategic solutions [ http://www.power-hour.com/propertymanagement/social-medialeadership.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox sales methodologies. Recent interviews and articles have appeared more than 7000 times in business and trade publications and in a wide variety of leading magazines and newspapers, including Smart Money, Inc., Business 2.0, The New York Times, Fast Com-pany, The LA Times, Fortune, Business Week, Self Employed America and The Financial Times. Since 1995, Ernest has written 200+ articles for the property management industry and created 350+ property management forms, business and marketing checklists, sales letters and presentation tools. To subscribe to his free property management newslet-ter go to: www.powerhour.com. Power-Hour® is based in Olympic-town…Park City, Utah, at 435-615-8486, by E-mail [email protected] or visit their website: www.powerhour.com

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On-Site Northwest • June 2013 19

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The number of U.S. housing mar-kets on the mend rose by five to a total of 263 in June, according to the National Association of Home Builders/First American Improving Markets Index (IMI), released today. The list includes entrants from 49 states and the District of Columbia.

The IMI identifies metropolitan areas that have shown improvement from their respective troughs in housing permits, employment and house prices for at least six consecu-tive months. Twenty-nine new mar-kets were added to the list while 24 others were dropped from it this month. New entrants included such geographically diverse metros as Salinas, Calif.; Sioux City, Iowa; Chicago, Ill.; Topeka, Kan.; Baton Rouge, La.; Laredo, Texas; and Philadelphia, Pa.

“This is the fifth consecutive month in which the IMI has desig-nated more than 70 percent of U.S. metros as improving,” observed NAHB Chairman Rick Judson, a home builder from Charlotte, N.C. “While that’s a good sign that the housing recovery is on solid footing, we know that various challenges are slowing its progress – including con-

tinuing issues with credit availability for builders and buyers, as well as appraisals that aren’t keeping up with the rising cost of construction.”

“As market conditions improve across most of the country, some metros have moved onto the IMI list while marginal seasonal fluctuations have nudged others off of it,” noted NAHB Chief Economist David Crowe. “This is to be expected as the recovery expands. Meanwhile, it’s worth noting that the number of improving markets is now more than three times what it was in June 2012.”

“The continued strength of the IMI is an indicator of the ongoing, positive momentum in housing mar-kets nationwide as consumers move to take advantage of historically favorable interest rates and afford-able home prices,” added Kurt Pfotenhauer, vice chairman of First American Title Insurance Company.

The IMI is designed to track hous-ing markets throughout the country that are showing signs of improving economic health. The index mea-sures three sets of independent monthly data to get a mark on the top Metropolitan Statistical Areas.

The three indicators that are ana-lyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-family housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improving markets. A metro area must see improvement in all three measures for at least six consecutive months following those measures’ respective troughs before being included on the improving markets list.

A complete list of all 263 metros cur-rently on the IMI, and separate break-outs of metros newly added to or dropped from the list in June, is available at www.nahb.org/imi.

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Housing and Urban Development (HUD) Secretary Shaun Donovan and HUD Northwest Regional Ad-ministrator Mary McBride recently announced the renewal of $636,640 to the Downtown Emergency Ser-vice Center under HUD's Housing Opportunities for People with AIDS (HOPWA). The Center's three-year renewal award was part of a national announcement providing $32.3 mil-lion in HOPWA funds to 30 projects in 20 states.

The HOPWA funds will enable the Downtown Emergency Service Cen-ter to continue providing post-incar-ceration housing and support services very low-income families experienc-

ing AIDS/HIV in Seattle through 10 facility based housing units, three respite beds serving up to 25 house-holds a year, and housing case man-agement services. The Center offers the service with support and collabo-ration from Evergreen Treatment Ser-vices, (ETS); Compass Center; King County jail; and the Washington State Department of Corrections.

"These grants will provide our lo-cal partners with crucial funding that is necessary to provide individuals and families living with HIV/AIDS a place to call home," said Secretary Shaun Donovan. "The comfort of knowing that you have a roof over your head makes a huge difference

in the wellbeing of families and gives hope to those who might otherwise end up living on the streets. For those they serve, this program is the differ-ence between a life well-lived and a life on the streets."

"The Northwest in has a long, proven track record of developing cutting-edge solutions to some of our most vexing problems. and serving some of our most vulnerable popula-tions," said HUD Northwest Region-al Administrator Mary McBride. "We are pleased to continue supporting the very good work of organizations serving people with AIDS/HIV like the Downtown Emergency Service Center."

Many of the projects receiving re-newed funding provide for special-ized models in outreach and service delivery, including efforts that tar-get help to persons who have been homeless or are at extreme risk of be-coming homeless. The awarded pro-grams are designed to increase coor-dination with the homeless assistance grant programs as well as other fed-eral resources provided at the local level. These grants offer innovations

in HIV care to increase job readiness and employment opportunities for persons in stabilized care. The grants announced today also support the Obama Administration's Opening Doors, strategic plan to prevent and end homelessness, and National HIV AIDS Strategy, that identifies Hous-ing as a key component to preventing the spread of HIV.

In addressing goals under these strategies, HUD will contribute a va-riety of housing resources to promote better integration of housing inter-ventions into comprehensive HIV care systems. Housing assistance and related services funded by HOPWA are an essential part of the compre-hensive system of care for low-income persons living with HIV/AIDS. A sta-ble home environment is also vital for these households in allowing them to access consistent medical care and maintain their health. Furthermore, secure housing can be a platform for improved quality of life.

Ninety percent of HOPWA funds are distributed by formula to cities and states based on the number of

HUD Renews Funding for Seattle's Downtown Emergency Service Center to Prevent Homelessness

Among Persons with HIV/AIDS

20 On-Site Northwest • June 2013

ON-SITE

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On-Site Northwest • June 2013 21

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AIDS cases reported to the Centers for Disease Control and Prevention. HUD's formula grants are managed by 138 local and state jurisdictions, which coordinate AIDS housing ef-forts with other HUD and communi-ty resources. Overall, these resources assist over 60,000 households annu-ally to provide stable housing and reduced risks of homelessness for those living with HIV and other chal-lenges.

HUD's mission is to create strong, sustainable, inclusive communities and quality affordable homes for all. HUD

is working to strengthen the housing market to bolster the economy and pro-tect consumers; meet the need for qual-ity affordable rental homes: utilize hous-ing as a platform for improving quality of life; build inclusive and sustainable communities free from discrimination; and transform the way HUD does busi-ness. More information about HUD and its programs is available on the Internet at www.hud.gov and espanol.hud.gov. You can also follow HUD on Twitter at @HUDnews or on Facebook at www.facebook.com/HUD. or sign up for news alerts on HUD's News Listserv.

Page 23: The Landlord Times On-Site June 2013

22 On-Site Northwest • June 2013

ON-SITE

Incentives apply to existing multifamily properties with five or more attached units located in PSE service area and dependent on installed equipment efficiency and energy type. PSE’s programs are tariffed services, and are subject to change or termination without prior notice. Always refer to our website for the latest offerings.

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formance bar and has become a part of the regular activity in this indus-try. Property managers are highly skilled professionals who now merge the latest gadgets and software with management skills and real estate knowledge. Companies who train their employees and support this wave will reap the benefits immedi-ately. This rush to technology has freed property managers to explore their field and connect with people in the field. However, the ability to grasp new technologies hasn’t trans-formed the essence of the business or real estate. Technology has changed the operations and commu-nication lines but real estate is still an industry of relationships. Software and cell phones can’t change that.

Elena Tangman-Wells, Executive Vice President, has been associated with Bluestone & Hockley since 1993. She started her real estate career with B&H

and now oversees Residential, Community Association Management and Maintenance departments-three of the six departments of the company. She has a strong background in many aspects of property management including enforcement of the landlord/tenant laws, general maintenance, financial manage-ment, and resident manager training.

As a senior member of the corporate management team, Elena’s focus has been the development of our “best prac-tices.” She sets company policies, proce-dures and training programs to insure that Bluestone & Hockley Real Estate Services stays one of Portland’s most successful property management firms. She firmly believes that the company’s mission to be “A Better Real Estate Experience” is achieved through staff education and development and a com-mitment to providing excellent customer service.

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Page 24: The Landlord Times On-Site June 2013

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On-Site Northwest • June 2013 23

Page 25: The Landlord Times On-Site June 2013

24 On-Site Northwest • June 2013

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