The Landlord Times - Valley - August 2013

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While demand for apartment homes remained strong, rising inter- est rates exerted negative pressure on the industry’s ability to secure debt financing according to the National Multi Housing Council’s (NMHC) July Quarterly Survey of Apartment Market Conditions. Only the Market Tightness Index (55) remained above the breakeven line of 50 this quarter. Sales Volume (46) and Equity Financing (49) dipped, with Debt Financing dropping sharp- ly to 20. “Debt costs for apartment firms have been rising. In addition to the 90 basis point increase in interest rates from the April survey, spreads over Treasuries have also gone up, likely dampening transactions some- what. Rates are still low by historical standards, however, and at current levels should not put too big a crimp Experian® RentBureau®, the leading provider of rental payment history data to the multifamily in- dustry, recently released the find- ings of an analysis examining the financial risk posed by residents and the most effective screening met- rics to employ to avoid lost revenue from risky residents. The analysis, Risk versus reward: identifying the highest-quality resident using rental payment history, provides unique, industry-specific insights regarding the use of rental payment data in con- junction with credit scores in screen- ing to produce a superior prediction of a resident’s propensity to default. The analysis also includes first-of-its- kind data regarding late payments, nonsufficient funds (NSF), write-offs and rental collections. Here’s a look at the top seven takeaways from the analysis that offer multifamily own- ers and property managers a look into the best applications of resident payment history data: 1. Complement traditional credit scoring: The use of rental payment data in conjunction with credit scores in the screening process pro- duces a superior prediction of a resident’s propensity to default. To improve rent default rates and bet- ter assess an applicant’s risk, own- ers and property managers are best served by utilizing rental payment A total of 255 metropolitan areas across 49 states and the District of Columbia qualified to be listed on the National Association of Home Builders/First American Improv- ing Markets Index (IMI) for July, re- leased recently. This is down slight- ly from the 263 metros that made the list in June, but is more than tri- ple the number of metros that were on it in July of 2012. The IMI identifies metropolitan areas that have shown improve- ment from their respective troughs in housing permits, employment and house prices for at least six con- secutive months. Six new markets were added to the list and 14 were dropped from it in July. Newcomers include the geographically diverse metros of Cumberland, Md.; Sag- inaw, Mich.; Farmington and Las Cruces, N.M.; Kingston, N.Y.; and Olympia, Wash. “This is the sixth straight month in which at least 70 percent of all U.S. metros have qualified for the Improving Markets Index,” ob- served NAHB Chairman Rick Jud- son. “The relative stability of the 255 Metros Listed as Improving Housing Markets in July Continued on page 3 EUGENE • SALEM • ALBANY • CORVALLIS V ALLEY August 2013 www.TheLandlordTimes.com Vol. 17 Issue 8 MONTHLY CIRCULATION TO MORE THAN 5,000 APARTMENT OWNERS, PROPERTY MANAGERS, ON-SITE & MAINTENANCE PERSONNEL Published in association with: METRO Multifamily Housing Association & Rental Owners Association Professional Publishing, Inc PRESIDENT'S MESSAGE Page 2 Page 4 A MESSAGE FROM YOUR PRESIDENT Professional Publishing, Inc PO Box 30327 Portland, OR 97294- 3327 Current Resident or PRSRT STD US Postage PAID Portland, OR Permit #5460 Continued on page 7 Continued on page 7 Top Seven Reasons to Use Rental Payment History Data Get Social With The Landlord Times Second Quarter Apartment Markets Mixed in Latest NMHC Survey

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The Landlord Times Valley is the business journal for the Willamette Valley multifamily and rental housing industry. We are published monthly in conjunction with Multifamily Northwest and Lane County Renal Owners Association.

Transcript of The Landlord Times - Valley - August 2013

Page 1: The Landlord Times - Valley - August 2013

While demand for apartment homes remained strong, rising inter-est rates exerted negative pressure on the industry’s ability to secure debt financing according to the National Multi Housing Council’s (NMHC) July Quarterly Survey of Apartment Market Conditions. Only the Market Tightness Index (55) remained above the breakeven line of 50 this quarter. Sales Volume (46) and Equity Financing (49) dipped, with Debt Financing dropping sharp-ly to 20.

“Debt costs for apartment firms have been rising. In addition to the 90 basis point increase in interest rates from the April survey, spreads over Treasuries have also gone up, likely dampening transactions some-what. Rates are still low by historical standards, however, and at current levels should not put too big a crimp

Experian® RentBureau®, the leading provider of rental payment history data to the multifamily in-dustry, recently released the find-ings of an analysis examining the financial risk posed by residents and the most effective screening met-rics to employ to avoid lost revenue from risky residents. The analysis, Risk versus reward: identifying the highest-quality resident using rental payment history, provides unique, industry-specific insights regarding the use of rental payment data in con-junction with credit scores in screen-ing to produce a superior prediction of a resident’s propensity to default. The analysis also includes first-of-its-kind data regarding late payments, nonsufficient funds (NSF), write-offs and rental collections. Here’s a look at the top seven takeaways from the analysis that offer multifamily own-ers and property managers a look into the best applications of resident payment history data:

1. Complement traditional credit scoring: The use of rental payment data in conjunction with credit scores in the screening process pro-duces a superior prediction of a resident’s propensity to default. To improve rent default rates and bet-ter assess an applicant’s risk, own-ers and property managers are best served by utilizing rental payment

A total of 255 metropolitan areas across 49 states and the District of Columbia qualified to be listed on the National Association of Home Builders/First American Improv-ing Markets Index (IMI) for July, re-leased recently. This is down slight-ly from the 263 metros that made the list in June, but is more than tri-ple the number of metros that were on it in July of 2012.

The IMI identifies metropolitan areas that have shown improve-ment from their respective troughs in housing permits, employment and house prices for at least six con-secutive months. Six new markets were added to the list and 14 were dropped from it in July. Newcomers include the geographically diverse metros of Cumberland, Md.; Sag-inaw, Mich.; Farmington and Las Cruces, N.M.; Kingston, N.Y.; and Olympia, Wash.

“This is the sixth straight month in which at least 70 percent of all U.S. metros have qualified for the Improving Markets Index,” ob-served NAHB Chairman Rick Jud-son. “The relative stability of the

255 Metros Listed as Improving Housing Markets in July

Continued on page 3

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEYAugust 2013www.TheLandlordTimes.com

Vol. 17 Issue 8

MONTHLY CIRCULATION TO MORE THAN 5,000 APARTMENT OWNERS, PROPERTY MANAGERS, ON-SITE & MAINTENANCE PERSONNEL

Published in association with: METRO Multifamily Housing Association & Rental Owners Association

Professional Publishing, Inc

PRESIDENT'S MESSAGE

Page 2

Page 4

A MESSAGE FROM YOUR PRESIDENT …

Professional Publishing, Inc PO Box 30327 Portland, OR 97294-3327 Current Resident or PRSRT STD US

Postage PAID Portland, OR Permit #5460

Continued on page 7

Continued on page 7

Top Seven Reasons to Use

Rental Payment

History Data

Get Social With The Landlord Times

Second Quarter Apartment Markets Mixed in Latest NMHC Survey

Page 2: The Landlord Times - Valley - August 2013

President's Message

2 The LandlordTimes - Valley • August 2013

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

President • Paul Hoevet Past President • Jeff Denson Vice President • Pam McKenna Secretary • Kirsten Bailey Treasurer • Chris Hermanski

MULTIFAMILY NW

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

PAUL HOEVET Multifamily NW President

Hello Everyone,I hope that all of you are enjoy-

ing this beautiful summer we a hav-ing. So far, 2013 has proven to be a very busy year for our Industry. The same can be said for the Oregon Leg-islature. They wrapped up the 2013 session on July 8th. The session wit-nessed many bills passed and many defeated that have a direct effect on the Rental Housing Industry.

Multifamily NW tracked and ad-vocated on over four dozen bills that, one way or another would have impact on our industry. The Association’s advocacy efforts have never been more focused. Through the hard work of the Government Affairs Committee, Executive Direc-tor Deborah Imse, the Multifamily NW staff, and our Government Re-lations Consultant Gwenn Baldwin, Multifamily NW was able to influ-ence the outcome of many bills this year. For a summary of the 2013 Legislative priority bills that the As-sociation worked on this year, please visit www.multifamilynw.org, click on Government Affairs, and read the 2013 Legislative Update.

Advocacy is the most important thing any of us can do to both pro-mote and protect and the Rental Housing Industry. Every year there

are many groups that champion many bills that directly impact our industry. These groups operate at the local, state, and federal level. Now that we are once again affiliated with the National Apartment Association, our voices will be louder on the fed-eral stage. NAA is very busy lobby-ing in Washington D.C. on behalf of the Rental Housing Industry. They have effectively organized their affil-iates in a manner that has increased our influence in the nation’s capitol.

We need to do the same thing here in Oregon. As the number one voice of the Rental Housing Industry in the state, Multifamily NW has an excellent opportunity to increase our advocacy efforts in Salem and local municipalities across the region. We need all of our members to be in-volved in the legislation, ordinances, and rules written and passed that af-fect the health and vitality of our In-dustry.

I would like to see us grow and strengthen our Political Action Com-mittee. I would like to see us plan and execute a Lobby Day in Salem, where we would have a large contingency of members meet with lawmakers in Salem and share our stance on issues that impact us. I would also like to see us increase our advocacy efforts

at the City Council level. All of this takes one thing that we all cherish…time.

Please consider giving some of your time to this very important cause. Make our voice heard. The dividends will be immense for all

of us. For more information on how you can get involved in Multifamily NW’s advocacy efforts call us at 503-213-1281 or toll-free at 800-632-3007.

August 14, 20136:30 PM - 8:00 PM

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August 15, 20139:00 AM - 1:00 PM

ELEVATE: Managing the Bottom Line

August 19, 20139:00 AM - 2:00 PM

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ELEVATE: Oregon Landlord/Tenant Law Part 2

August 23, 20138:00 AM - 12:00 PM

ELEVATE: Maintenance for Administrators

August 23, 2013

9:00 AM - 1:00 PMELEVATE: Advanced Tax Credit Work-

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September 13, 201312:00 PM - 1:00 PM

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September 16, 20139:00 AM - 2:00 PM

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Multifamily NW 2013 Events: MARK YOUR CALENDAR!

visit www.multifamilynw.org for more dates

Page 3: The Landlord Times - Valley - August 2013

in apartment activity going forward,” said Mark Obrinsky, NMHC’s Senior Vice President for Research and Chief Economist. “Underlying demand trends remain strong, and we are approaching the cusp of a meaning-ful increase in supply that will hope-fully be enough to meet the current need for apartment homes.”

Key findings include:• Construction costs are rising

nationwide. More than two-thirds (68 percent) of respondents indicated that construction costs had increased by more than 5 percent since last year. Another 29 percent indicated construction costs had increased over a year ago, but by less than 5 percent. [Note: These figures exclude the 16 percent of respondents who answered “don’t know.”]

• Market Tightness Index edged up to 55 from 54. Just 14 percent noted looser conditions in the mar-kets they were familiar with. This represents the 13th time in the last 14 quarters in which the index was over 50.

• The Sales Volume Index dropped from 55 to 46. This was the second time in the last three quarters in which the Sales Volume Index was below 50, though just by a little. Over the last eight quarters, the index has averaged 52, suggesting a small pickup in volume over that time.

• The Equity Financing Index

dropped 7 points to 49. This was the first sub-50 reading in the last four years. Forty-nine percent viewed equity financing as unchanged. Twenty-one percent of respondents viewed equity financing as more available while 22 percent viewed equity financing as less available.

• Debt Financing Index dropped sharply to 20 from 59. Two-thirds (67 percent) of respondents indicated that debt financing conditions had worsened since April, and 21 percent considered conditions unchanged. Only 8 percent of respondents thought debt financing conditions had improved – the lowest figure since October 2008.

Full survey data are available at www.nmhc.org/goto/61291.

About the survey: The July 2013 Quarterly Survey of Apartment Market Conditions was conducted July 8-July 15, 2013; 70 CEOs and other senior executives of apartment-related firms nationwide responded.

Based in Washington, D.C., NMHC is a national association representing the interests of the larger and most promi-nent apartment firms in the U.S. NMHC’s members are the principal offi-cers of firms engaged in all aspects of the apartment industry, including owners, developers, managers and financiers. One-third of Americans rent their hous-ing, and over 14 percent live in a rental apartment. For more information, con-

tact NMHC at 202/974-2300, e-mail the Council at [email protected], or visit

NMHC’s web site at www.nmhc.org.

The LandlordTimes - Valley • August 2013 3

EUGENE • SALEM • ALBANY • CORVALLIS

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The 2013 Oregon Legislative Session came to a close on July 8th, and several successful bills may directly affect your rentals. Look for ORHA sponsored educational work-shops in the coming year that will maximize your understanding of how these bills will directly impact you. In the meantime, here are sum-maries of the major bills affecting landlords in Oregon. To read the full text of each bill or for more informa-tion, be sure to visit the Oregon Legislature’s bill website at http://www.leg.state.or.us/bills_laws/. As always, contact your local ORHA chapter with comments or ques-tions.

Senate Bill 91• Landlord Tenant Coalition

“Omnibus” Bill, has many compo-nents.

• Will take effect January 1, 2014.• Allows landlords to require

Renters’ Insurance under certain circumstances:

› May require Renters’ Insurance in an amount not to exceed $100,000 per occurrence or the amount customary in the rental area, whichever is greater› Disclosure of insurance require-ment must be made to tenant

prior to tenancy (and presum-ably included in rental agree-ment). Amends application screening law to require disclo-sure of any Renters’ Insurance requirements› May require documentation of insurance be produced prior to taking occupancy of rental› May require insurance of an existing month-to-month tenan-cy, in which case landlord gives 30 day notice of change of terms. If tenant does not comply, may serve notice of termination but tenant may cure by obtaining required insurance› May require tenant periodically produce documentation that insurance is current› In order to require Renters’ Insurance, landlord must also obtain liability insurance for the rental and must produce docu-mentation of insurance to tenant upon request. If insurance is required, disclosure of landlord’s insurance and documentation obligations must also be includ-ed in rental agreement.› Neither landlord nor tenant may “harass” each other for insurance documentation› Landlord cannot require tenant

obtain insurance through a par-ticular company, and cannot demand to be made an addi-tional insured› Cannot demand tenant waive their subrogation rights› Landlord can only make claim against tenant’s insurance policy if: tenant is legally liable for dam-ages; damages are beyond nor-mal wear/tear; claim is greater than the amount of the security deposit; landlord provides copy of claim to tenant at time it is filed. Tenant may be awarded actual damages plus $500 for frivolous claims by landlord. › Landlord cannot require Renters’ Insurance if household income of tenant is equal to or less than 50% of area median income, property is federally subsidized or receives certain blocks grants.

• Processing applications – landlords cannot consider prior FED/Evictions if:

›FED dismissed or judgment in favor of applicant prior to sub-mission of application. (This provision does not apply to FED’s still pending at time application submitted.)›FED judgment against appli-cant five years or more prior to submission of application.

• Processing applications – landlords cannot consider arrests if:

›Arrest did not result in a con-viction. (This provision does not apply if charges for arrest are not dismissed at time of appli-cation.)

• Processing applications – landlords MAY consider criminal convictions or charging history if the convic-tion or charge is for conduct that is:

›Drug-related crime›Person crime›Sex offense›A crime involving financial fraud, including identity theft and forgery

›Any other crime if the conduct for which the applicant was convicted or charged is of a nature that would adversely affect property of the landlord or a tenant or the health, safety or right to peaceful enjoyment of the premises of residents, the landlord or the landlord’s agent

• Clarifies that written temporary occupancy agreement may be made between landlord, tenant & temporary occupant. Clarifies that:

› Temporary occupant does not have tenancy rights› Temporary occupancy agree-ment may be terminated by tenant at any time without cause and by landlord only for cause for material violation of the agreement (with no right to cure violation). No written notice of termination to tempo-rary occupant is required. › Landlord may screen tempo-rary occupant for conduct and criminal record. Cannot screen for credit history or income.› Temporary occupant treated as squatter if doesn’t leave after agreement terminated› Tenancy cannot consist of one sole temporary occupant.

• Clarifies landlord may claim from the security deposit only the amount reasonably necessary; Damages for which a landlord may recover include:

› Carpet that was cleaned [immediately] or replaced after the previous tenancy or the most recent significant use of the carpet and before the ten-ant took possession› Loss of use of the dwelling unit during the performance of necessary cleaning or repairs, for which the tenant is respon-sible if the cleaning or repairs are performed in a timely man-ner.

• Clarifies landlord may charge a tenant up to $250 unless the State Fire Marshal assesses the tenant a

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Page 5: The Landlord Times - Valley - August 2013

Dear Maintenance Men:I manage a number of properties that use a master key system. Do you have a plan or solution to pre-vent vendors from losing master keys? This is becoming a problem and an expensive risk. Janet

Dear Janet:Never, ever, ever give a master key to a vendor or anyone else not employed by your company. If the building is on a budget and cannot afford state of the art systems for key control or access, try this simple and cost effective approach:

Install a temporary lockbox with the unit key inside and hang the lockbox on the door knob or a water pipe near the unit. Any locksmith and even some hardware stores sell these boxes. If a vendor needs access to a unit, give him access to the lockbox only. Should they lose the key, you are only out the cost of a key. Save yourself a trip and install the lockbox when you visit the property for the move out inspection. Note: The locks should be changed or re keyed after completion of work.

If your vendors need access to a unit where on site personnel is available, the unit must be opened by your employee or provide the vendor with the unit key only, not the master.

If your main office is centralized and your portfolio is dispersed throughout a particular region with buildings under 16 units (which do not require onsite managers) appointments should be made in advance and coordinated between the vendor and the resident (keeping you in the loop). This will put the burden of entry, missed appointments, etc. on the resident and the vendor, freeing up your valuable time.

If entry is needed due to an emer-gency, you should respond to the build-ing to assess damages or necessary mitigation at the same time allow entry. Take a lock box with you and a unit key incase the repairs will be prolonged and access will be needed by others.

Never give a master key to a vendor!

Dear Maintenance Men:I have a conundrum! I am thinking of charging an automatic cleaning

fee to my new residents. (Of course, after executing a fully signed disclo-sure with the new resident at the time of contract signing.) The issue has arisen because when a resident moves, they expect their cleaning deposit to be returned if they clean the unit. However, I find I must clean again at my expense as the unit is really never clean enough. Is the automatic cleaning deposit a good idea or will the residents just leave the unit in far worst condi-tions, since they feel they have already paid for the cleaning? KellyDear Kelly:Due to the fact that individual units may differ in the size, construction, appliances, finishes amenities etc., estab-lishing a one size fits all cost or fee may hurt you in the long run. People have different ideas of what “clean” is and this is why property owners and manag-ers must set the standard of how clean the unit must be. Give the resident a description of what management consid-ers a clean unit to be and have the new resident fill out and sign a move-in inspection form as to the move-in condi-tion of the unit. When you are given a notice to vacate, inspect the unit and document the conditions. Do not dis-cuss the cost or what you will be charg-ing or deducting from the security deposit with the resident at the time of the inspection. However do let the resi-dent know what is expected when the unit is returned and supply the name of your preferred cleaning service. The rational in supplying the name of your cleaning service for your tenant’s use is that the cleaning service knows what is expected and how management wants the units cleaned. Upon move out; if the vacant unit does not meet that standard; charge the resident a cleaning fee, backed up with vendor receipts and take pic-tures of the substandard unit should the matter go to court. Keep in mind that there are always costs in turning a unit such as normal wear and tear, smoke/Co2 alarm batteries and other cost of doing business associated with being an owner or manager of an apartment building.

Dear Maintenance Men:I have rented a unit to a retired building contractor and he has offered to do work around the build-ing in exchange for a rent reduction. He says he knows what he is doing and the arrangement will benefit both of us in the form of lower rent for him and lower apartment main-tenance costs for me. He views it as a win win for both of us. Is this a good idea?Gloria Dear Gloria:This is a management and maintenance question all in one! Both will have the same answer and it is a firm NO! You will lose all leverage over the work since you are not directly paying for the work and you are blurring the lines between resident and landlord. Do you evict the tenant because he did a bad job install-ing a garbage disposal unit or because he is short on his rent? It would be bet-ter that your resident work for someone else and keep your maintenance and rent separate. Also, please keep in mind the liability and workman’s compensa-tion issues that may be involved by hir-ing a resident to do work at your building.

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

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EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

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Page 6: The Landlord Times - Valley - August 2013

strong rental markets, many leasing employees are faced

with the wonderful challenge of being 100% leased. Some apartments are being rented “sight unseen,” and perhaps there are only a few days in any given month where vacant apart-ments are available to look at before the new residents move in. For com-munities that have rented and done away with their model apartments, many leasing consultants are now in situations where they have nothing to show, even if they have unrented notices. The following question expresses this dilemma and the leas-ing consultant’s frustration:

Q: Our property consistently stays full and we typically rent our notices almost as soon as they come in. When people call to inquire about an apartment and I don’t have any-thing available to show, I will usually refer them to our web site or recom-mend that they call back at a later date. I don’t want to waste their time if I don’t have anything available. However, lately some callers have been pretty insistent about wanting

to come by even when I don’t have an apartment they can see. Should I really be trying to set appointments when all I can do is hand out a floor plan and give a property tour?

A: This is a challenge, and yet a unique and incredible opportunity for you to highlight and sell many other aspects of your community that you might not normally focus on during an apartment tour. EVERY caller should be extended an invita-tion to visit your community, wheth-er you have an apartment to show or not. While a web site is just one of many “sales tools” at your disposal, it is not the only tool you have. What about your property and the many community benefits you have to offer? Even if you work at a smaller community, you still have numerous benefits to sell. Perhaps it’s the loca-tion of your building and the many area conveniences, which no one will truly appreciate unless they make a visit and drive through the neighbor-hood. Maybe you have an outstand-ing maintenance staff that is highly visible that a prospective resident

would observe hard at work when visiting your community. What about your friendly residents who are out and about? The ones who smile and cheerfully say “Hello” to everyone they meet. Have you ever considered your existing residents as a “sales tool?” Then, last, but certainly not least, there is YOU!! No web site or other form of “inanimate” advertis-ing can take the place of a warm, friendly and VERY enthusiastic per-son who is excited about their prod-uct and what they are doing.

Of course it’s much “easier” to just refer someone to a web site or encourage them to check back with you when you have no apartments to show. After all, it does “appear” that you are trying to be “helpful.” What if you extended an invitation to visit instead? You would definitely have to expend some extra time and energy and get creative to sell your product in a new and exciting way without a “visual.” Perhaps your enthusiastic personality could describe and demonstrate with such animation that you could create your own “visual?”

Of course you want to be honest about your apartment availability and not get your prospects so “worked up” that you sell them on renting an apartment that is not available for their time frame. On the other hand, maybe there is some flexibility with their move date. Remember: Part of your job as a sales person is to convince the customer that what you have to offer is worth waiting for. . .

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6 The LandlordTimes - Valley • August 2013

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

2013 ...continued from page 4

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civil penalty for the conduct (tam-pering with smoke alarm)

• Amends non-compliance fees – may be assessed for violations of written rules or policies for:

› late payment of utility or service charge› failure to clean up pet waste from part of premises other than dwelling unit› failure to clean up garbage, rubbish or waste from part of premises other than dwelling unit› parking violations› improper use of vehicles on premises› smoking in clearly desig-nated non-smoking unit or area of premises› unauthorized pet capable of causing damage to persons or property› Landlord must give written warning notice of initial vio-lation that includes possible fees if the same or similar violation occurs within one year. Within one year of warning notice, may assess $50 fee for 2nd same/similar violation and $50 fees plus 5% of current rent for subse-quent same/similar viola-tion.

• Housekeeping clarifications – daily notices end at midnight of the end of the last day of the notice, and

hourly notices begin at 11:59 pm of the day post and mailed and end “x” hours later.

• Clarifies landlord must provide a carbon monoxide alarm when located within a structure that contains a carbon monoxide source and the dwelling unit is connected to the room in which the carbon monoxide source is located by a door, ductwork or a ventilation shaft.

• Provides that tenant may give landlord 60 day notice to vacate if they are notified property is in foreclosure.

Landlord has 30 days after notice to prove no longer in foreclosure, if applicable.• Clarifies landlords are responsible

for abandoned property• Clarified payment of rent gives

tenant right not just to occupy but to “use the premises”

• Multifamily NW gave up on including the ‘guest’ issue as part of negotiations, and we expect to deal with that topic in future leg-islative sessions.

House Bill 2639• “Housing Choice Act of 2013”,

AKA “The Sec¬tion 8 bill” spon-sored by Speaker Tina Kotek.

• Will take effect July 1, 2014.• Housing Choice Voucher Program

– now includes federal rent subsi-Continued on page 7

Page 7: The Landlord Times - Valley - August 2013

data along with credit scores. Renters with the highest credit scores show much lower rates of default. How-ever, within that population, those with negative rental history are more than four times as likely to default as those with positive rental history.

2. Realize better risk manage-ment: Renters, as measured by credit scores, are a higher-risk group than the U.S. population overall. Eighty-five percent of the renters in the sam-ple set are in one of the three lowest VantageScore® credit ranges (501 to 799), compared with a national aver-age of only 64 percent.

3. Gain insight into propensity to default: How an individual paid rent in the past is a good indicator of how he or she will pay rent in the future. Renters with one prior rental debt have a default rate nearly four times higher than applicants with positive rental history.

4. Avoid balances owed: Rental payment history data allows for the identification of residents who re-peatedly move out of communities owing money. These individuals are nearly six times as likely to repeat this behavior compared with a resi-dent who has consistently paid rent on time.

5. Spot serial skippers: By identi-fying prospects with multiple nega-tive prior rental payments, owners and property managers can avoid renting to individuals who likely are

serial skippers and have a 35 percent chance of defaulting again.

6. Minimize late and NSF pay-ments: Default among residents who have a history of late or NSF pay-ments escalates steadily as the num-ber of late or NSF payments increas-es. Renters with three or more late or NSF payments have a default rate more than twice as high as renters with only two or fewer late or NSF payments.

7. Achieve higher occupancies: Augmenting the lack of a credit score with rental history data can help own-ers and property managers improve occupancy while also managing risk. Unscoreable individuals with posi-tive rental history have lower overall default rates and could make strong renters for managers looking to in-crease occupancy.

To learn more about how rental pay-ment history can help your portfolio pro-tect NOI, reduce skips and evictions, and identify the highest-quality residents, download a complimentary copy of Risk versus reward: identifying the highest-quality resident using rental payment history, an analysis of the most effective screening metrics to employ to avoid lost revenues from risky residents.

VantageScore® is a registered trade-mark of VantageScore Solutions, LLC.

7The LandlordTimes - Valley • August 2013

EUGENE • SALEM • ALBANY • CORVALLIS

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EUGENE • SALEM • ALBANY • CORVALLIS

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Top Seven ...continued from front page

www.TheLandlordTimes.com

VALLEY255 Metros ...continued from front page

IMI is representative of the broad recovery underway, which is much more extensive than what we were looking at one year ago.”

“Despite slight ups and downs in recent IMI levels, an overwhelm-ing majority of U.S. metros -- in-cluding those located in almost ev-ery state -- remain solidly on the path to recovery even as the pace of their improvement is slowed by ongoing challenges related to the availability of credit, labor, lots and certain building materials,” added NAHB Chief Economist David Crowe. “Based on recent trends in home prices, housing permits and employment, the outlook for a con-tinued housing expansion remains very positive for the remainder of 2013.”

“The fact that more than two-thirds of all U.S. housing markets continue to be represented on the improving list should be a boon to consumer confidence at a time when many are looking to take ad-vantage of recently’s very favorable mortgage rates,” observed Kurt Pfotenhauer, vice chairman of First American Title Insurance Compa-ny.

The IMI is designed to track housing markets throughout the country that are showing signs of improving economic health. The index measures three sets of in-dependent monthly data to get a mark on the top Metropolitan Sta-tistical Areas. The three indicators that are analyzed are employment growth from the Bureau of Labor Statistics, house price appreciation from Freddie Mac and single-fami-ly housing permit growth from the U.S. Census Bureau. NAHB uses the latest available data from these sources to generate a list of improv-ing markets. A metro area must see improvement in all three measures for at least six consecutive months following those measures’ respec-tive troughs before being included on the improving markets list.

A complete list of all 255 metros currently on the IMI, and separate breakouts of metros newly added to or dropped from the list in July, is avail-able at www.nahb.org/imi.

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

dies and other local, state, and federal assistance under state pro-tected “source of income”

• Housing Choice Landlord Guarantee Program – provides financial assistance to landlords to mitigate damages caused by sub-sidized tenants. Guarantee Program funds are distinct from State General Fund. Landlords must submit claim to program within one year of damages and must have a small claims court judgment from the county in which the rental property is locat-ed. Claims must value more than $500 but less than $5,000. ORHA lobbied hard unsuccessfully for a $10,000 limit.

• Housing and Community Services must enter into reasonable repay-ment agreement with responsible tenants for those claims paid out of the Guarantee Program.

• Statewide Housing Choice Advisory Committee will be cre-ated to advise program – made up of housing authority representa-tives, landlords and tenants.

House Bill 2562• Increases civil filing fees by a per-

centage surcharge (5%) on cases filed and creates a designated fund for revenue raised by increased fee to be used for eCourt develop-ment, enhancement and mainte-nance. Also increases prevailing party fees, which are not retained by the state.

Other Bills:House Bill 2417 - Veteran’s

Housing bill that adds $5 increase to recording fees for that cause.

House Bill 2824 – Patrol towing bill that narrows rules for non-con-sent towing. This bill passed over-whelmingly in both House and Senate.

Senate Bill 91, the Landlord Tenant Coalition “Omnibus” bill, is a direct result in part of the ORHA Legislative Planning Session that took place in Bend last fall. Before each Legislative session, ORHA holds a planning meeting where members identify their wants, needs and hopes for the upcoming Legislative session and together we work to identify the biggest priori-ties of our members. I’m pleased to say we included most of our ORHA priorities in this session’s Omnibus bill. Want to be sure your voice is heard next Legislative session?

Watch for future ORHA updates and make your plans to attend our next ORHA Legislative Planning Session.

Jim Straub, President

2013 ...continued from page 6

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5. Value - Large property management companies that use Rentegration.com for only forms generation will save time and money over other methods. Mid and small size property managers and independent rental owners can manage their entire business at a fraction of the cost of other software and forms.

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

BATH ROOM

BEDROOM 1BEDROOM 2

Essential ServicesEssential Services

WA-RTG-20 Washington

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

TENANT(S): __________________________________________________________________

ADDRESS: ________________________________________________UNIT: ______________

CITY: ___________________________________ STATE: ________ ZIP: _________________ (G)Good (F)Fair ( (G)Good (F)Fair ( (G)Good (F)Fair ( (G)Good (F)Fair ( (G)Good (F)Fair ( (G)Good (F)Fair (P)Poor P)Poor P)Poor

Out

BEDROOM 348-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.

(G)Good (F)Fair ( (G)Good (F)Fair ( (G)Good (F)Fair (

48-HOUR NOTICE OF ENTRYTENANT(S): ____________________________________________________ DADDRESS: ____________________________________________________ UCITY: _________________________________________ STATE: __________

48-HOUR NOTICE OF ENTRYPursuant to RCW 59.18.150, this is your 48 hour notice that your laentering the dwelling unit and premises located at (Address)______________________________________________________________________________

* Add one additional day for compliance if served by post and m

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.

48-HOUR NOTICE OF ENTRYTENANT(S): ____________________________________________________ DADDRESS: ____________________________________________________ UCITY: _________________________________________ STATE: __________

48-HOUR NOTICE OF ENTRYPursuant to RCW 59.18.150, this is your 48 hour notice that your laentering the dwelling unit and premises located at (Address)______________________________________________________________________________

CHECK-IN/CHECK-OUT CONDITION REPORTTENANT(S): __________________________________________________________________ADDRESS: ________________________________________________UNIT: ______________CITY: ___________________________________ STATE: ________ ZIP: _____________

G) Very Good (G)Good (F)FG) Very Good (G)Good (F)F

KITCHENWalls

Stove/Racks

Refrigerator

PET AGREEMENTTENANT INFORMATION

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

DESCRIPTION OF PET(S)

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 tenantÕ s control when it is outside the tenantÕ 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

TENANT(S): __________________________________________________________________ADDRESS: ________________________________________________UNIT: ______________CITY: ___________________________________ STATE: ________ ZIP: _____________G) Very Good (G)Good (F)FG) Very Good (G)Good (F)F

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Page 8: The Landlord Times - Valley - August 2013

8 The LandlordTimes - Valley • August 2013

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