Rental Housing Journal On-Site April 2016

Advertise in Rental Housing Journal On-SiteCirculated to over 20,000 apartment owners, on-site and

maintenance personnel monthly.

Call 503-221-1260 for more information

Text 51WAYS to 44222to receive the FREE e-book

51 Ways to Increase Your Rental Property Cash Flow

(And 10 Ways to Ruin It)

3. Attract Tenants With SimpleEco-Friendly Upgrades

5. Common Tenant Complaints and How to Handle Them

6. Window Film - How Its Proper Use Can Help You Make Money

7. Increasing Your Property’s Bottom Line

17,000 Papers Mailed Monthly To Puget Sound Apartment Owners, Property Managers & Maintenance PersonnelPublished in association with Washington Association, IREM & Washington Multifamily Housing Association

www.rentalhousingjournal.com • Professional Publishing, Inc

Rental Housing Journal On-Site April 2016

9. Grassroots Legislative Advocacy Update

10. Top 10 Questions Regarding Music Licensing for Rental Properties

11. Are You Investing in Real Estate to Go Green or Make Green?

14. How Wireless Security is Changing the Real Estate Industry

continued on page 8

continued on page 12

continued on page 4

More and more landlords are going smoke-free in Wash-ington state. A recent survey

of landlords and owners of multi-unit properties across the state revealed that 75 percent have adopted a no-smoking policy at one or more of their prop-erties and 62 percent report having a no-smoking policy at 100 percent of their properties. Th e chief reasons why landlords adopt no-smoking policies are because it’s better for their bottom line and it protects tenant health.

Landlords’ top benefi ts for going smoke-free:

Cost savings. Ninety-six percent of landlords cite reduced cleaning and turnover costs as a benefi t to going smoke-free. No-smoking policies cut cleaning and turnover costs—such as new paint and new carpets—associ-

ated with smoke damage. It can cost more than $3,500 to update a smoked-in unit compared to less than $600 for a non-smoking unit. Going smoke-free also protects the resale value of a property.

Preventing property damage. No-smoking policies protect buildings from property damage and cigarette fi res. Nearly four in 10 landlords sur-veyed reported property damage due to improperly discarded cigarettes, and nearly 15 percent report having had a cigarette-related fi re at their property.

Protecting employee and tenant health. Adopting smoke-free policies can help protect employees and ten-ants from the harmful health eff ects caused by secondhand smoke. Today, nearly one-in-fi ve of all deaths that

A Majority of Washington Landlordand Owners Have A No-Smoking Policy

Statewide survey reveals that cost savings, tenant health are landlords’ top reasons to go smoke-free

Frances Limtiaco, Washington State Department of Health

Market Off to Good StartSeattle - Th e latest Apartment In-

sights survey shows rents increasing 1.7%. Th e vacancy rate fell to 4.21% according to Tom Cain of Apartment Insights. Th e data are from his Seattle fi rm’s 1st quarter statistics and trends on 50+ unit properties in the King/Sno-homish market

Seattle 1Q16Vacancy: 4.21% Th e vacancy rate for our nonran-

dom survey of conventional, stabilized 50+ unit properties in the King/Sno-homish market is 4.21%. Th is is down from 4.32% last quarter. It was 4.46%

HUD Seeks to End

Discrimination Against Tenants

withCriminal Records

The U.S. Department of Housing and Urban Development (HUD) published guidelines in April,

2016, for the proper consideration of applicants’ criminal records when con-sidering them for housing. HUD notes that because a disproportionate amount of people with criminal records are mi-norities, a blanket policy of refusing to rent to anyone with a criminal history may violate the Fair Housing Act.

Much like the 1991 HUD memoran-dum regarding occupancy standards (the “Keating Memo”) this new doc-

By Evan L. Loe� er

16. Ask the Secret Shopper –Children & Pets

17. Dear Maintenance Men –Maintenance Tools & City Inspections

19. Crowdfunding and Peer2Peer Lending For Real Estate Investors – The Disruptors We Want!

at One of Th eir Properties

Prof

essio

nal P

ublis

hing

Inc.

,PO

Box

624

4Be

aver

ton,

OR

9700

7

PRSR

T ST

DU

S Po

stag

eP

AI

DSo

und

Publ

ishi

ng In

c98

204

MILLWORK CHANGEOVERS – REHAB SPECIALIST

Quick TurnQuick TurnQuick TAround Service100% Satisfaction

GuaranteedNo job too Large or Too Small

Remember, we paintHallways & Cabanas

100% Satisfaction 100% Satisfaction 100% Satisfaction 100% Satisfaction GuaranteedGuaranteedGuaranteedGuaranteed

No job too Large or Too SmallNo job too Large or Too SmallNo job too Large or Too SmallNo job too Large or Too SmallRemember, we paintRemember, we paintRemember, we paintRemember, we paintHallways & CabanasHallways & CabanasHallways & CabanasHallways & Cabanas

180$ 205$ 220$ 245$

70$ 115$95$85$85$85

What can we What can we What can we paint for youpaint for youpaint for you

Call Interland Design!Call Interland Design!

Time to Think ExteriorTime to Think ExteriorTime to Think Exterior

2

Rental Housing Journal On-Site

Rental Housing Journal On-Site · April 2016

Serving Pierce, Thurston & South King Counties

Family Owned Providing Trustworthy Service

with IntegrityThat’s why Spartan Services stands out from the crowd.

Talk to an Expert!

[email protected]

• Plumbing Repairs

• Sewer & Drain Cleaning

• Installation & Repair of Water Heaters

• Underground Pipe & Sewer Locating

• TV Inspection of Sewer Pipes

• High Pressure Water Jetting

• Bathroom & Kitchen Remodels

• Repair & Replacement of Sewer & Water Lines

• Commercial & Residential Resolutions for the Biggest and Messiest Projects

Super Service Award for 8 years

• TV Inspection of Sewer Pipes

Serving Pierce, Thurston & South King Counties

Talk to an Expert!

[email protected]

Beat the summer rush!Call or email us for a quote today

(206) [email protected]

- Sealcoating- Asphalt Repair

- Striping- Concrete

#beattheheat

3



The multifamily housing indus-try is expected by many to con-tinue growing throughout the

year, which means strategic upgrades to your property can help prepare you for increased demand and set you apart from competitors.

Approximately 65 percent of renters consider energy-effi cient features when deciding what apartments to rent, ac-cording to Th e Center for Climate and Energy Solutions. Th ese upgrades will also cut operational costs associated with water usage, heating, cooling and other energy, helping both you and your residents save money.

Consider these simple, eco-friend-ly upgrades before the summer sea-son begins.

Save EnergySeal and insulate: Sealing gaps and

cracks will help keep money in rent-ers’ pockets. Maintenance can start by properly insulating needed areas around windows and doors. Seal cracks and gaps with caulk, spray foam and weather stripping. Th is simple project can reduce energy bills by up to 30 per-cent and ensure that air remains inside the units.

Upgrade thermostats: Allow resi-dents to moderate electricity and gas usage by upgrading to programmable and / or WiFi-enabled thermostats. Th e thermostat can adjust to their schedule

manually or automatically through a convenient app on their smartphone. Tenants will save an average of 10 to 12 percent on heating and 15 percent on cooling bills, and you may be able to

off set part of your investment by taking advantage of rebates.

Switch to LEDs: Increase savings easily by converting to LED lighting,

Attract Tenants with Simple Eco-Friendly Upgrades

By Scott Matthews, Director, Strategic Accounts, � e Home Depot

continued on page 8

Credit is subject to approval. Rates and programs are subject to change; certain restrictions apply. All rights reserved. #1 claim based on 2015 FDIC data. ©2016 JPMorgan Chase & Co. All rights reserved. Chase is a marketing name for certain businesses of JPMorgan Chase & Co. and JPMorgan Chase Bank, N.A. Member FDIC. PA_14_098

Contact Todd Sechrist, Client Manager at (206) 500-4634 or [email protected]

Great rates for Seattle apartment building owners.

Bringing you low fees, great rates, and local market expertise.

LOW F E ES | G R EAT RATES | S TR E A M LI N ED P ROCESS

How did Chase become the nation’s leader in multifamily lending? With great rates, low fees and a deep understanding of the local market—in communities just like yours. If you have a 5 or more unit apartment building to purchase or refi nance, call us today to learn how we can put our resources to work for you.

Toll Free: (800) 526-0955www.hainsworth.biz

HAINSWORTHLAUNDRY COMPANY

Increase Your Laundry Room Capacity by as much as 50%And Save Up To 50% on Utility Costs

Coin • CardRent • Lease

Life’s Good

4



HUD Seeks to End Discrimination ...continued from page 1

ument provides general guidance for how to consider whether a housing pol-icy violates federal law. The memo is not law in itself, but it interprets how the law may apply to certain situations. As with any new guideline, the legal rami-fications will develop on a case-by-case basis as matters are heard in court and the guidance is considered.

According to the new guidelines, turning down tenants solely based on their criminal history may violate the Fair Housing Act. While the Act does not list people with criminal records as a protected class, HUD notes that mi-norities have disproportionately high rate of arrests and convictions. For this reason, while in some cases a landlord may refuse to rent to a party with a criminal record, the policy should not be applied automatically without fur-ther consideration.

The guidelines note that there is a dif-ference between an arrest and a convic-tion. An arrest may occur if a police offi-cer forms the belief that someone needs to be detained for their own safety, for the safety of others, or for the investi-gation of a crime. A conviction may oc-cur only after a party has been formally charged with a crime and had an op-portunity to defend himself or herself in a court of law. A judge or a jury must determine that it is beyond a reasonable doubt that the individual committed the crime. Both arrests and convictions may appear on a criminal history.

HUD takes the position that a policy of excluding individuals because of a prior arrest without a conviction is dis-criminatory. Quoting the U.S. Supreme

Court, HUD states, “[t]he mere fact that a man has been arrested has very little, if any, probative value in showing that he has engaged in any misconduct.” In other words, an arrest is not, by itself, proof of a crime. A housing provider who categorically denies housing to a person because of an arrest on their re-cord violates the Fair Housing Act.

Convictions, on the other hand, are different. HUD states in the memo, “In most instances, a record of conviction (as opposed to an arrest) will serve as sufficient evidence to prove that an in-dividual engaged in criminal conduct.” Even so, a blanket policy of excluding all people with a criminal conviction probably violates the Fair Housing Act. The landlord with a policy of exclud-ing applicants with a criminal history must be able to point to a “substantial, legitimate, nondiscriminatory interest” served by the policy. The landlord must also be able to prove that the policy achieves those goals. A housing policy must take into consideration the na-ture and severity of the crime, and the amount of time that has passed since the criminal conduct occurred

Whether the discrimination is acci-dental or intentional, during screening or just at the inquiry stage, the landlord or property manager is still at risk of a discrimination lawsuit. The best prac-tices are:

• Do not impose blanket bans on renting to those with criminal history or arrest records.

• If there is evidence of a conviction, consider the nature and severity

of the crime and how long ago the criminal conduct took place.

• Ensure everyone who interacts with applicants is trained well on current Fair Housing policies.

• Keep screening policies pertaining to arrest records and criminal history specifically related to safety of persons and property. The policy must distinguish between criminal conduct that indicates a demonstrable risk to resident safety and property and criminal conduct that does not.

• Obtain and use a standard screening policy in compliance with Fair Housing and HUD regulations, and apply it equally to anyone who applies. You may want to consult an attorney or housing specialist to develop a rental criteria relating to criminal conduct.

Keep in mind that HUD has not stat-ed that criminals are a protected class. HUD recognizes that housing provid-ers have an interest in providing safe housing to all their tenants. These new guidelines do not require landlords to rent to convicted felons, but do require landlords to examine the criminal his-tory (if any) of its applicants with more care than before. Naturally, there will be applicants who refuse to provide details about their criminal history or provide inaccurate information revealed by a screening company. An incomplete or inaccurate application may be denied.

Following best practices will save you thousands of dollars in litigation

and court costs, so it is well worth the effort. If in doubt about a policy, con-tact your legal resource for help deal-ing with tricky questions related to this new HUD guidance and the Fair Housing Act.

Evan L. Loeffler is the principal attorney at the Loeffler Law Group PLLC in Seattle, Washington. His firm’s practice emphasiz-es landlord-tenant relations. www.loefflerlawgroup.com

I would like: PRINT E-MAIL

Editions: ARIZONA COLORADO PORTLAND, OR SALEM/EUGENE, OR SEATTLE/TACOMA UTAH

NAME

ADDRESS

CITY STATE ZIP

V I S A M A S T E R C A R D

C A R D N U M B E R E X P . C V VN A M E O N C A R DB I L L I N G A D D R E S S

*Print subscriptions $25/year $15 each additional market E-mail subscriptions $15/year$8 each additional market

I am an:OWNER INVESTOR PROPERTY MANAGER VENDOR OTHER

OR MAIL A CHECK TO: Rental Housing Journal

PO Box 30327Portland, OR 97294-3327

PublisherWill Johnson – [email protected]

Designer/EditorKristin Flores – [email protected]

Advertising SalesWill Johnson – [email protected]

Terry Hokenson – [email protected] Surratt – [email protected]

Rental Housing Journal On-Site is a monthly publication published by Professional Publishing Inc., publishers of Real Estate Opportunities in

Investing & Real Estate Investor Quarterly

w w w . r e n t a l h o u s i n g j o u r n a l . c o m

The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this publications does not, in any way, comport an endorsement of or support for the products or services offered. To request a reprint or reprint rights contact Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

5



Common Tenant Complaints and How to Handle Th em

Being a landlord inevitably in-cludes dealing with tenant com-plaints. Managing those com-

plaints promptly and eff ectively is essential for your relationships with the tenants, the security of your property and last but not least – for your land-lord’s reputation. If you approach the problems in a professional manner, you are defi nitely going to lessen the chance of some legal issues as well.

Here are the 4 most common tenant complaints and a few useful tips on how to deal with them. Some of them can occur during the tenancy period, but others you can easily foresee and han-dle in advance.

The property is not clean enoughAbsolutely no tenant will be pleased

by the thought that they will have to start cleaning the property from the

very second they move in. In fact, few people will be willing to rent a place where domestic cleaning hasn’t been done since forever. So it is a great idea for you to give your rental property a good cleaning before the new tenants come and avoid starting your relation-ship making the wrong impression. In case you are not capable of taking proper care of the hygiene, maybe you should hire a professional cleaning company at least a week before the scheduled moving day. Make sure no stains and dust will greet your tenants as they go through the door.

Something does not work properlyAppliances and facilities just stop

working sometimes; it happens no matter that no one wants it. Test all do-mestic appliances in advance to prevent complaints from your new tenants. In

case the same person has been renting your property for a certain period of time, make sure you respond imme-diately to their signal. A clogged sink or an oven which cannot heat may be or not be your tenant’s fault, but you have to handle the matter in both cas-es. Check the issue as quickly as you can and make an appointment with an expert if you are not capable of dealing with the problem by yourself. Warn the renter when to expect a plumber for ex-ample and pay for the service. You can fi gure out who is fi nancially responsible aft er the specialist has done their job and things are under control again.

Pest complaintsRegardless of how clean the tenant

keeps your property, unfortunately pests can always invade it due to many reasons other than irregular cleaning. If the adjacent apartments, for example, have been infested with mice or bugs, this can turn out to be a great problem. As a decent landlord, you should react immediately to such complaints. Th e best thing you can do when it comes to pest control is to hire an exterminator to handle the pests in your property. It will be wise of you to schedule a second appointment aft er 7 – 10 days and thus ensure the safety of both your property and tenants.

Inoperative keysIf you are not a fi rst-time landlord,

you should not at all be surprised by such a complaint from your tenants. Keep an extra set of keys at your dis-posal for emergency situations. Should you fi nd that the lock is hard to open, it would be wise to change it as soon as possible or you may have to change the whole door if somebody gets locked inside eventually. Buying an installing a new lock promptly will make things much easier for you and your tenants. Do not forget to change the locks every time when a tenant ends your contract is an additional security measure.

Doing your best to help your tenants will always be appreciated, so do not hide when they complain about some-thing. Aft er all, renting a property is a kind of a job and you will have to do it well if you want to get your rent on time.

B&W

6



It’s somewhat of a secret that window fi lm has more than one application. If used correctly and installed by a

professional, window fi lm can deliver huge savings to building owners, espe-cially in warmer climates.

Over ten years ago we purchased a small offi ce building to move our busi-ness into. We moved in March, and as spring transitioned into summer and the sun came out more oft en, our space started heating up. Th e air condition-ing system (about 6 rooft op and ground based split units), could not handle the load and labored to cool down the building. Th e employees complained about the heat, and the high electric bill added insult to injury.

Installing new HVAC units would have been very expensive and the roof was not designed to support the addi-tional weight. We looked for another answer and found one at the booth of a window fi lm vendor during a vendor open house hosted by the Institute for Real Estate Management.

Th eir display was very simple. It con-sisted of a piece of glass with window fi lm on one half of the glass. A heat lamp was positioned on one side of the glass and two thermometers were posi-tioned on the other side, one parallel to

the clear glass and the other one next to the glass covered in the fi lm. It became clear in a moment that the window fi lm reduced the heat load signifi cantly.

According to tests conducted by win-dow fi lm manufacturers, the fi lm re-duces heat loads from 25 to 85 percent. (Results vary depending on manufac-

turer and type of fi lm; research prod-ucts carefully to identify the best fi lm for your need.)

Th e location of the window fi lm is also a factor. Installing fi lm on win-dows that face east, south and west are typically more eff ective than on the shady north side of a building, and if

your building is already well shaded, window fi lm may not help at all.

Of course window fi lm can be used in residential (single family and mul-tifamily) applications as well. Say you wanted to renovate an apartment com-

Window FilmHow its proper use can help you make money

By Cli� Hockley, President, Bluestone & Hockley Real Estate Services


B&W

Professional Online Presence

Applicants Fill Out Application Online

No Need to Handle Application Fees!

Nationwide criminal + evictions records

Quick turn around time

Credit score – full credit reports available

Personal + professional assistance

T (206) 283 - 0816 | (800) 335 - 2990

A Full Service Tenant Screening& Credit Reporting Company

– Credit Reports Start at $25

NEW PRODUCT!

7



Owning and managing multi-family properties has its challenges. Two of the most

important - keeping residents happy so they keep paying rent (aka - your direct revenue stream and job security) and simultaneously pleasing the property owner (which almost always results in what shows up on the bottom line each month and at the end of the year). In this article, we won’t be covering resident re-lations, but will be focusing on shining in the owner’s eyes and increasing your property’s bottom line. Whether you work for the owner or are the owner, consider these tips to decreasing ex-penses and increasing revenue - result-ing in a healthier NOI come year end.

Outside ServicesIn the day in the life of property man-

agement, any number of things can go wrong! Th ey can also go right. Smooth operations don’t necessarily equate to a profi table property. One of the key areas to look at is how much you are spend-ing in outside services. Th is means your maintenance team, plumbers, electri-cians, groundskeepers, painters, carpet cleaners, and so forth. Having good quality people you can rely on and trust is important. But also, having those same people reliably deliver services

at a price your current revenue stream can aff ord and support on an ongoing basis. I like to get at least three quotes for every project or service job I’m plan-ning to give to someone. Th at way, you have a better chance of knowing what rates and pricing is competitive in the market for whatever service you need. Now, if you lock in great pricing for your “go-to” people, and you work well

together - perfect! Keep it moving that way. But if performance is down and the cost is too steep, it may be time to start looking for someone new. By the time you add up all the labor, materi-al costs, taxes to services rendered it’s possible to have bitten off more than you can chew! If so, dial it back and implement some immediate changes. I like to keep my options open, and not

get stuck in long term contracts in the event something goes wrong and I’m not happy with either the service or the end price showing up on the bill. Th e larger the property (in units), the easier it is to slip on these expenses because gross revenue coming in looks good as a big round number. But when you start deducting everything coming in, it may not look so good any more.

Maximize RentsCollecting rent on time from every

resident at your complex aff ects cash fl ow and is vital to the fi nancial health of your property. But it’s not just col-lecting that rent and depositing it in the bank that counts. It’s how much you collect (along with your vacancy rate) that is signifi cant. Th is is where we look at factors that can draw greater rents to a property that may be underperform-ing fi nancially. So how can that be ac-complished?

Part of it has to do with local market conditions and the time of year, we’d be foolish to say otherwise. But the other parts are having a unit that is desirable to live in in the fi rst place, along with good old fashioned salesmanship - a warm personality and an on your game

Increasing Your Property’s Bottom Line

by Tami Cox


B&W

8



occur in Washington are caused by cigarettes when accounting for sec-ondhand smoke. Almost all landlords surveyed know that breathing second-hand smoke is either somewhat or very harmful and nearly 94 percent cite pro-tecting their employees’ and tenants’ health as a benefi t to going smoke-free.

Smoke-free policies are compre-hensive

Th e smoke-free policies that land-lords have adopted are quite compre-hensive. Among landlords who have a no-smoking policy in place, more than nine in 10 report that their policy in-cludes both tobacco and marijuana. Furthermore, the majority cover all inside areas of their buildings—95 per-cent cover common indoor areas and 88 percent cover private units. More than 76 percent of policies include common outdoor areas like pools and playgrounds, and 65 percent include decks and porches.

Market demand for smoke-free housing is high—and free resourc-es are available to support policy implementation

While the percentage of landlords who have adopted a no-smoking poli-cy is positive news, more than 400,000 renters in Washington are still poten-tially exposed to the harmful eff ects of secondhand smoke within their apart-ment building because their landlord hasn’t adopted a no-smoking policy. In Washington, the demand for smoke-free housing comes from landlords and tenants alike. About 92 percent of all renters prefer smoke-free hous-

ing, including 75 percent of people who smoke.

With a few simple steps, landlords and owners have a unique ability to help create happier and healthier apart-ment communities—all while improv-ing their bottom line. Visit the link below for more information on how to implement a smoke-free policy.

ht tp://w w w.doh.wa.gov/Youan-dYourFamily/HealthyHome/Smoke-freeHousing/Landlords

Th ere’s also evidence that no-smok-ing policies help tenants quit tobacco. If your tenant is looking for informa-tion about free quit support, resources are available at www.quitline.com or by calling the Washington State To-bacco Quit Line (1-800-QUIT-NOW, 1-877-2NO-FUME in Spanish).

For more information, contact Fran-ces Limtiaco, Washington State De-partment of Health, at [email protected].

No-Smoking Policy ...continued from page 1 Eco-Friendly Upgrades ...continued from page 3

which uses approximately 84 percent less energy than incandescent bulbs and lasts 25 times longer. Install LED lighting in interior fi xtures, pathways, hallways and parking garages. Also consider decorative LED options for communal areas. LED technology is in-tegrated in a variety of lightbulbs and fi xtures, allowing for an easy transition and customization for the property.

Invest in HVAC: Switch to high-effi -ciency, ENERGY STAR®-certifi ed units and reduce air-conditioning energy us-age by up to 50 percent. Maintain the longevity by cleaning the evaporator coils and drain channels to prevent po-tential clogging. Th ese practices will re-duce unnecessary wear and tear on the AC unit. Take extra steps to improve the air quality for residents by having maintenance change air fi lters regular-ly, at least every 1-3 months.

Conserve WaterTend to the bathroom: Reduce wa-

ter usage by updating toilets, shower-heads, faucets and additional bathroom accessories with WaterSense-labeled products, which are approximately 20 percent more effi cient. Excessive water usage can be a sign of leaky plumbing, so inspect plumbing fi xtures for leaks annually to avoid water damage and potentially high out-of-pocket costs.

Update water heaters: Upgrade water heaters to newer units that are compliant with more energy effi cient standards that went into eff ect in 2015 – some of which can have the output of a 50-gallon unit with the footprint of a 30-gallon unit. Th is is an excel-

lent option when hot water is needed and space is limited. Insulate the water heater with a blanket for extra savings.

Maintain the landscaping: Maintain a green space and reduce water usage with a low-water-use landscaping or xe-riscaping plan. Mulch and drought-tol-erant plants, such as conefl owers, day-lilies or butterfl y weeds, can help reduce and / or minimize excessive watering. Adding decorative gravel and well-aer-ated soil will enhance a walkway or landscape bed, while also conserving water and adding nutrients to the green space. Improve water effi ciency even further with smart irrigation technolo-gy. Smart controllers can reduce annual bills as much as 15 percent by watering plants only when necessary.

By Scott Matthews, Director, Strategic Accounts, � e Home DepotScott is responsible for managing national accounts and e-commerce while overseeing business-to-busi-ness relationships. During his 25 years at The Home Depot, he has served in a variety of roles and capac-ities, including Regional Pro Sales Manager, District Manager and Store Manager.

B&W

9Rental Housing Journal On-Site · April 2016

The Washington Multi-Family Housing Association supports our members through formal

and grassroots advocacy eff orts. We are the eyes, ears and voice of the industry locally and at the federal level.

As an affi liate of the National Apart-ment Association, we have opportuni-ties to become involved on various is-sues throughout the country. Policies emanating from both Washington, D.C. and our state capitol will play a key role in either assisting or hindering our industry from being able to continue to provide safe and decent housing to America’s workforce and to help create vibrant communities.

Together with NAA, WMFHA in-vests in political capital, or how well we, together, infl uence decision-mak-ing with the resources we use to advo-cate and encourage our state legislators, local elected offi cials, and Congress to address the long-term needs of the apartment industry.

WMFHA was heavily involved in this year’s state legislative regular ses-sion. Th e regular session was short; 60 days short. Th e Governor called a special session immediately aft er the end of the regular session, requiring legislators to hash out an agreement on a supplemental budget. Th ey did so in about 20 days.

Th e supplemental budget includes a $125,000 line item to compensate land-lords up to $5,000 for damages and/or unpaid rent caused by a former hous-ing choice voucher tenant. To claim the compensation, a landlord must obtain a judgment in the county where the property is located.

During the regular session, legisla-tors passed what is commonly referred to as the Omnibus Landlord Tenant Bill (Senate Bill 6413). Th e bill is the result of a compromise between landlords and tenant advocates aft er more than fi ve years of stalled legislative action.

Most importantly, the bill provides an increase in time a landlord has to return a security deposit and account-ing from 14 to 21 days. Th is substan-tially increases the time a landlord has to obtain vendors and repair any damage caused by the former resident before providing an itemized list of de-ductions and any remaining balance of the security deposit to the former tenant. Th is was a huge win for land-lords across the state.

Th e bill also provides landlords the option of accepting a comprehensive re-usable tenant screening report. Tenant advocates have previously fl oated sim-ilar legislation for at least the previous fi ve years, each time proposing that acceptance of comprehensive reusable tenant screening reports be mandatory. Th is new law makes acceptance of the comprehensive reusable tenant screen-ing reports discretionary but does con-tain two mandatory provisions land-lords must affi rmatively take.

1. Landlords must indicate in their screening criteria whether they ac-cept comprehensive reusable tenant

screening reports. Th e law already provides that prior to accepting any information about a prospec-tive tenant, a landlord is required to notify prospective tenants what information may be accessed by the landlord, what criteria may re-sult in denial of an application and what consumer reporting agency is used, in order for the prospective tenant to obtain a free copy of the consumer report. Th e law will now require landlords to include in the written screening criteria whether they accept a comprehensive reus-able tenant screening report. Th ere is a penalty associated with failing to identify whether a landlord ac-cepts a comprehensive reusable tenant screening report.

2. Landlords must indicate on their property’s website home page whether they accept comprehen-sive reusable tenant screening re-ports. Just as any property’s web-site is required to include the Fair Housing logo, the home page of a property’s website must indicate whether they accept a reusable tenant screening report. WMF-HA recommends the required lan-guage appear with or near the Fair Housing logo on each property’s home page.

Finally the bill provides a method for a tenant to limit dissemination of a prior unlawful detainer action upon a motion to a judge and a showing that an unlawful detainer action was not fi led with good cause, including procedural and factual defects in the underlying cause of action. Th is bill was signed on March 29th by the Governor and will go into eff ect on June 9, 2016.

As the multifamily industry begins to digest recent Guidance published by the Dept. of Housing and Urban De-velopment (HUD) pertaining to tenant screening and an individual’s prior conviction history, Seattle moves full-steam ahead with its own legislation to limit a landlord’s use of criminal con-victions in tenant screening.

It is yet to be determined what this proposed legislation will look like, but according to the City, the proposed leg-islation is on track to be presented to the City Council later this year.

HUD guidance abolishes blanket exclusions for individuals with a crim-inal record. Th is means that any policy that automatically denies a prospective tenant residency based on their prior criminal history could result in claim and fi nding of discrimination.

Th e HUD guidance also limits the use of arrest records (as opposed to con-viction records) in any tenant screen-ing process and implies that a denial on the basis of a prior arrest, without a conviction, may result in a fi nding of discrimination.

Th ese new remarks by HUD in re-sponse to disparate impact theory could have a devastating impact upon the housing industry, as we contin-ue to grapple with the need to protect

residents and staff and to provide safe housing for our many renters.

WMFHA staff and board mem-bers traveled to Washington D.C. last month to visit with our Members of Congress. During meetings with Sen-ator Maria Cantwell, Sen. Cantwell ex-pressed her passion to urge Congress to increase federal resources for aff ordable housing through expanded funding of the Low Income Housing Tax Credit (LIHTC) program.

Senator Cantwell called for a 50 per-cent expansion of the LIHTC and re-forms to better target the lowest income populations with LIHTC projects. Cantwell’s proposal would fi nance ap-proximately 400,000 additional units of aff ordable housing nationwide over the next decade, with approximately 35,000 units in Washington State (roughly 4,200 more units than is possible under current levels of LIHTC fi nancing).

Since its creation 30 years ago, the LIHTC has fi nanced nearly 3 mil-lion homes across the United States, leveraging more than $100 billion in private investment. It has developed 75,400 aff ordable housing units in Washington State, and supports ap-proximately 70,000 jobs each year in Washington State.

As more and more people move to Washington State to enjoy the econom-ic diversity, outstanding lifestyle, good job opportunities and desirable cli-mate, that increased demand for rental housing has created a supply-demand crunch that has lead to housing aff ord-ability concerns.

More development of housing of all types is needed to keep up with that de-mand. Public policies that discourage new development of housing are coun-terproductive and can add to the hous-ing shortage.

WMFHA continues to assist and support public policy while represent-ing the interests of our members and the residents we serve. We thank all of our members who provide guidance and their grassroots advocacy support.

For more information about the Washington Multi-Family Housing Association, our educational opportu-nities, networking events or legislative eff orts, or to sign up for membership, go to www.wmfh a.org or call us at 425-656-9077.

Grassroots Legislative Advocacy Update

711 Powell Ave. SW, Suite 101Renton, WA 98057(425) 656-9077 • (425) 656-9087 (fax)admin@wmfh a.org

Executive Director - Jim Wiard Board President - Brett Stevens Vice President - Becky SandersTreasurer - Sheri Druckman Secretary – Laura McGuire Vice President of Suppliers Council - Rob Pendleton

Immediate Past President - Kris Buker

™

Go to savingwater.org or call 206-615-1282 for details and more rebate information. Certain restrictions apply.

Apartment/Condo Owners$200 TOILET REBATES

LIMITED TIME ONLYl Save 15% to 35% on water billsl Increase property valuel Reduce maintenance

CUT $100’s Off Your Water Bill

10



If you manage a property where mu-sic is played in a common area like a clubhouse, pool or fi tness center,

you need to be aware of copyright im-plications. As a copyright attorney, I have helped my property management clients comply with public broadcast-ing licensing requirements, which can be surprisingly complicated. Here are some of the most common questions and answers.

Q: What is copyright?A: Th e Copyright Act gives artists,

authors, composers and publishers the exclusive right to reproduce and pub-licly perform their work. A small busi-ness, including an apartment manage-ment company, that plays music using any type of device engages in a “public performance” under the terms of the Copyright Act. Th erefore, unless the apartment complex is exempt, it needs permission to play the music. If work is reproduced or publicly performed without proper permission, the conduct may constitute copyright infringement and subject the infringer to damages.

Q: I got a letter from ASCAP. What is ASCAP?

A: ASCAP, BMI and SESAC all are “Performing Rights Organizations,”

or “PROs,” that collect copyright roy-alty income on behalf of songwriters and music publishers when a song is publicly broadcast.

Q: I already subscribe to ASCAP, but now I got a letter from BMI? Aren’t we covered already?

A: Most songwriters are members of one of the three PROs. Accordingly, a subscription to one PRO provides a li-cense to some, but not all, of the music

that would be played on a radio. If you need one subscription, it’s likely you need all three.

Q: Is our clubhouse really “pub-lic?” Aren’t these private areas not subject to public performance re-quirements?

A: Th e copyright laws give copyright owners the right to control public (but not private) performances of copyright-ed material. According to the statutory

defi nition, a sound recording is per-formed publicly when played “at a place open to the public or at any place where a substantial number of persons outside of a normal circle of a family and its so-cial acquaintances is gathered.” Th ere are certainly arguments that common areas within an apartment community are not “public” for purposes of creating public performance liability. No court has ever published an opinion ruling on the question of whether community rooms, swimming pools or exercise ar-eas are “public.” Pending resolution of these questions, most property manag-ers choose to pay the PRO fees in order to avoid the risk of being sued and held liable for copyright infringement.

Q: Do I need to worry about these issues if we exclusively use Pando-ra at our pool and in our gym? We never use the radio.

A: Pandora has partnered with Mood Media to provide rights to Pandora mu-sic such that the business owner does not need to separately obtain PRO rights. If you obtain a license from Mood Media, you should not need a separate license from a PRO for Pandora music.

Top Questions Regarding Music Licensing for Rental Properties

By Amanda Hyland


11



There are countless ways to make your rental properties more en-ergy effi cient. High effi ciency

appliances, high effi ciency heating and cooling systems, solar, the list goes on and on. Most of you probably did not purchase investment real estate with the intent of saving the planet. One big question that you need to ask yourself when making your property greener is “How is this going to make me more green ($)?” Any money that is spent im-proving your property should increase the overall value or lower your monthly expenses or both.

Are you looking to increase the value of your property? According to a repu-table local appraiser there are very few green upgrades that will increase the value of the property itself. “Vinyl win-dows may be one of the best upgrades you can make,” said the appraiser “ten-ants like them because it saves money on heating. Plus it will add to the ap-praised value.” I asked her to what lev-el solar panels, tankless water heaters, and high effi ciency furnaces add to the value of real estate. Her answer was “none”. Every buyer expects applianc-es, furnaces, and water heaters to be in working order. It does not matter if they are high effi ciency as long as they work.

Appliances and heating/cooling sys-tems may not add value to your prop-erty at sale but may add value to your bottom line. Th e potential savings on owner paid utilities such as gas, elec-tric, and water/sewer might make some “green” upgrades worth the investment. As a landlord you should consider in-vesting in upgrades that either make or save you money. If you are paying the utility bill for units being heated during Oregon winters, putting in a high effi ciency furnace might be a good long term investment for you. If you do not pay for the utilities, you will be spending money on upgrades that will only save tenants’ money unless you plan on passing that expense on to the tenant in the form of a rent increase or utility bill back.

Most small plexes are not separately metered for water and sewer and the owner is likely responsible for the wa-ter/sewer bill. If that is the case making small changes like low fl ow toilets, low fl ow shower heads, and low fl ow faucet aerators could save you a substantial amount of expense on your water bill over time. Another consideration is low maintenance landscaping. Grass may look good but does come with added upkeep. Look at your annual landscape expense for the last few years. You may fi nd that lower maintenance landscap-ing which consists of native plants, shrubs, and trees will save you money over time.

Th ink about your short and long term fi nancial goals and ask yourself if making “green” improvements to your properties is putting more “green” into your pocket.

Chris is Small Plex Broker at SMI Commercial Real Estate, LLC . Please contact Chris if you would be inter-ested in receiving SMI’s free bi-annual newsletter which includes the most compre-hensive rent and vacancy survey in the mid-valley, the SMI Apartment Update.

503.390.6060. [email protected]

Are You Investing in Real Estate toGo Green or to Make Green?

and income property clients. Contact us today to learn how we can ease responsibilities tied to your home or real estate assets and provide a superior, seamless and happy experience. Trust, integrity and building happiness drive everything we do. Contact us today!

20 0 W EST M ERCER STR EE T, SU ITE 51 0S E AT TLE , WA S H I N GTO N 98 1 19

PROPERTY MANAGEMENT | REAL ESTATE BROKERAGECONSULTING | PRIVATE HOME MANAGEMENT

NEW DEVELOPMENT SERVICES

L I V E H A P P I L Y .

12



a year ago.King has a vacancy rate of 4.23% and

Snohomish County a 4.13% rate. King County can take sole credit for the overall vacancy rate decrease, since the rate in Snohomish actually increased a tenth of a percent. Th e overall vacancy rate which includes properties in lease-up fell from 6.83% last quarter to 6.34%.

Four submarkets are just under 3%. Th ese include Des Moines, North King County, Tukwila, and the area north and east of Everett.

On the high side, Seattle’s U. District popped up to 6%. Th is is due to one property with half the units undergoing a major renovation. Four submarkets are in the fi ve percent range. Th ese are Bellevue East, Eastside South, Down-town Seattle and South Lake Union.

Incentives Rental incentives dropped $3 this

quarter to $12 per month. In the two-county area 19% of the properties are off ering incentives, down from 20% last quarter.

Absorption: +1,792 Overall, there were +1,792 units ab-

sorbed this quarter, up from +1,614 units in the fourth quarter. A surpris-ing number were in the Seattle First Hill submarket, which absorbed 476 units.

Rents: $1,485 per Unit $1.78 per Square FootRents climbed $25 to $1,485 per

month and $1.78 a square foot, an in-crease of 1.7% over the last quarter. Over the past 12 months rents in-creased 10.7%.

Last quarter we pointed out that

rents dropped an average of $59 per unit in four out of the fi ve most ex-pensive submarkets, indicating price resistance. Overall rents increased $9 in the fourth quarter. Th ese submar-kets are the downtowns of Seattle and Bellevue, Seattle Belltown and Samma-mish-Issaquah. All but Belltown saw an increase this quarter, but rents in all of these submarkets are still below the lev-el of six months ago.

Rents in the Seattle U. District sub-market showed the greatest increase. But this must be discounted because a large newer property with high rents moved from lease-up to stabilized sta-tus, and skewed the results upward. Rent levels accelerated in the Eastside North and Eastside South submarkets. Located on either side of Bellevue, rents here increased 5% and 6.1%, re-spectively.

New ConstructionTh ere are currently 21,633 units un-

der construction, about the same as last quarter. It’s 2,100 units more than a year ago. Fift y-eight percent of these are in the city of Seattle, 24% on the Eastside, 11% in South King, and 7% in Snohomish County.

Th ere are 13,140 units that have either been built or are under construction for completion in 2016. On the surface it looks like it could be the record-break-ing year we expected for 2015 which didn’t happen. But with the construc-tion delays we have been seeing, it’s cer-tainly not a sure thing.

Featured in the photo, the 219-unit Reserve at Renton opened this quar-ter. It is managed by Indigo Real Es-

tate Services.We have preliminary information

for the next two years. We are tracking 12,337 units that are scheduled for a 2017 completion. For 2018 the number is 4,182 units.

Th e grand total for all of the units in various stages of the pipeline is 60,717, slightly less than last quarter, but up from 53,790 a year ago.

ObservationsFirst quarter results indicate that 2016

will be another strong year. Rents are up 1.7% and the vacancy rate dropped to 4.21%.

It seems certain that the number of new units that will actually be complet-ed this year will exceed last year’s 9,000 units. Th is will take some of the pres-sure off rent increases. But as we saw last year, our vibrant growth enabled the rental market to fl ourish despite the competition from all these addi-tional units.

We found an interesting statistic that speaks to Seattle’s growth potential this year from job search site, Simply Hired. It found the number of job openings in the greater Seattle area increased 3.85% month-over-month in February, mak-ing it the second-hottest job market in the country.

Another set of February statistics about the single-family market bode well for the apartment industry. Th ese are from a Seattle Times analysis of data from the Northwest Multiple List-ing Service. Th e gauge of supply hit its lowest level since at least 2003. King and Snohomish each had less than a month’s supply in February.

Th is tight supply among other factors caused home prices in the city of Seat-tle to surge 24% to $644,950 in the past year. Seattle condo prices leaped 33.4%. Home prices rose 19.8% in King and 8.8% in Snohomish County.

In past cycles of rapid rental growth, the lure of home ownership caused ten-ants to leave the rental market. Th is would tend to lessen the demand for apartments. Th e current environment of high home prices and low inventory will keep more pressure on rents.

Last quarter we expressed concern about where the market might be head-ed in light of a surprising decrease of rents in the high-priced submarkets. In light of what has happened this quarter, our concern has been assuaged.

For decades Tom Cain has support-ed a variety of industry organizations and events with his data and exper-tise as a foremost expert in the apart-ment industry. His company surveys the fi ve counties in Central and South Puget Sound.

Th is article highlights survey results that subscribers can access from an online database of all 50u+ properties. Apartment Insights also provides cus-tomized rent reports and market re-ports. www.apartmentinsightswa.com 206-632-2220

Market Off to Good Start ...continued from page 1

igabit Internet

We pioneered the idea that residential customers in multi-family properties can gain access to the same superior quality internet service as the biggest companies in the world and we’ve provided that service in Seattle since 2008.

Wave G, formerly called CondoInternet, offers symmetrical speeds and local customer service plus game-changing performance beyond traditional ISPs.

Partner With Wave G to BringGigabit to Your Building

1-844-77-WAVE-G gowave.com/G

Let us be your Connection for Next Generation FiberWhat’s in it for you?

• Free managed WiFi available in common areas

• Free internet service available for building management & staff

• Sponsored on-site events to educate residents & build community

• No service or marketing exclusivity required

• No cost to the building to offer our service

Learn how you can partner with Wave G.

now available to175 buildings in Seattle and counting.

13



14



The real estate industry has long been faced with a problem: “You can’t be everywhere at once.” It

feels impossible to monitor your prop-erty and staff , without forgoing your other tasks. But now, with new wireless technology there is fi nally a solution. A professionally monitored wireless secu-rity system gives real estate profession-als essential insights into their units. More and more real estate professionals are using wireless alarm systems, to pro-tect vacant homes, keep an eye on their staff , prevent water damage and provide extra value to their tenants.

Keep an Eye on Vacant Properties:When you’re not around, what’s hap-

pening to your properties? You hope that the answer is “Nothing”, but you worry. What if someone has broken into your home? Between squatters and copper thieves, there are many reasons to be concerned. Copper theft can cause tens of thousands of dollars in damage. In the old days, a wired security system was the only option, but the contract and need for a landline phone usual-ly made this a non-starter for a vacant property. With a professionally mon-itored wireless security system at the property, you can keep this worry at bay. When your property is monitored, if you ever have a break-in, the police

will be on their way immediately. Th e siren will sound, and the would-be-bur-glars won’t have time to steal from you.

And when you’re selling the proper-ty, a security system is an easy way of letting realtors in and out. You can set up a specifi c PIN for them, and you’ll be able to see when they come, and how long they stay! With a home security system, you’ll know that the property is

protected by more than just a lock box and a lock.

Know when your maintenance staff comes and goes:

With an alarm system, you can cre-ate custom PINs that will let you know when contractors enter and exit. Many of the property managers we spoke with told us that they use this feature to

make sure work that needs to get done gets done. Know who has come and gone from what apartment or home easily. You can make sure that your maintenance needs are addressed, that your staff is doing its diligence, and just in case, you have a record of it all!

How Wireless Security isTransforming the Real Estate Industry


NewWindows

are aGREAT

Investment!

Energy-effi cient windows will give you the competitive edge to improve occupancy rates.

Beautiful new windows from Milgard windows will increase tenant satisfaction by lowering their utility bills, increasing their comfort and reducing outside noise.

Milgard windows are virtually maintenance-free to save you time and money.

If you have an electrically-heated 5+ unit building in Tacoma Power or Seattle City Light’s service area, be sure to ask us about new window rebates!

New Energy-Effi cientWindows Attract

New Tenants!

SRC WINDOWSA SOLID ROCK COMPANY

“We were very pleased with their work and would defi nitely use them again.”

– Ed and Sharon Bezy via Angies List

Call orE-MAILTODAY

FOR A FREE, NO OBLIGATION ESTIMATE

[email protected]

Call orE-MAILTODAY

LICENSED, BONDED, INSURED • REGISTERED UTILITIES CONTRACTOR • MEMBER: RHA, MBA, BBBWA Contractors Lic. #SRC••981KM

15



Before

After

WE Save your Cabinets and Protect your Investment

YOU Save Time and Money!

Our cost effective upgrades will positively affect your bottom line.

Fast Clean Easy

No Paint No Mess One Day

Contact us today!206-450-7000www.SeattleCabinetRenovations.com

16



Many apartment communities strive to create a welcoming offi ce environment in order

to put prospective residents at ease. From aromatic scents and freshly baked cookies to a warm fi re, these comforts communicate a feeling of “home.” How-ever, when managers have an offi ce con-nected to their apartment or even inside their apartment home, sometimes the lines between the professional offi ce and an employee’s personal space can blur.

QI supervise several apartment build-

ings in which many of my managers work out of an offi ce attached to or in-side their apartment. Some of these em-ployees have young children and pets. Oft en when I call these properties, I hear a dog barking or a child crying, and not always in the background. Sometimes I am even put on hold while the man-ager deals with an urgent child-relat-ed matter. I am concerned about these situations and how they are aff ecting residents and prospective renters. How-ever, I’m not quite sure how to deal with this issue since these managers have a personal residence attached to or com-bined with their offi ce.

AYou have a valid concern and it needs

to be addressed. Yet, much respect and consideration are required when deal-ing with people regarding their pets and children. - ESPECIALLY their children! However, your employees must be made to understand you have certain expectations regarding offi ce protocol during business hours. If your employees are regularly allowing their children or pets to be in the leasing of-fi ce during these hours, then this is a disruption to the leasing process and an inconvenience to your residents or pro-spective renters.

Regarding pets, this could end up becoming a liability for your company, community and/or owner. Many peo-

ple have pet allergies and/or phobias. When someone is looking for an apart-ment, they do not expect to enter a leas-ing offi ce; which is a “place of business,” and fi nd themselves confronted by a dog. Th ey also aren’t thinking they have to be prepared with a medication to counteract their body’s response to an extreme cat allergy. Th ey are expecting a professional business setting where they plan to get information about rent-ing an apartment.

As with any other offi ce policy or procedure, something in writing re-garding these issues will help your em-ployees know what the expectations are. It might seem like “common sense” to you for your managers to keep their personal lives separate from their pro-

fessional lives. On the other hand, when people “live where they work,” it’s not always easy to keep the lines clearly de-fi ned; these managers have an obliga-tion to their families as well as to their residents and employer.

No matter what type of situation you are dealing with on site, it’s important to keep the lines of communication open. Th is will ensure the onsite managers understand your expectations and help reassure them you are committed to providing the support they need. Th at way, they can handle their responsibili-ties at work, as well as at home, and put appropriate distance between the two. Aft er all, employee turnover can have an even greater impact on the dynam-ics of your community and bottom line, than apartment turnover.

If you are interested in leasing train-ing or have a question or concern you would like to see addressed, please reach out to me via e-mail. Otherwise, please contact Jancyn for your employ-ee evaluation needs: www.jancyn.com

ASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica Former owner of Shoptalk Service Evaluations Consultant to Jancyn Evaluation ShopsE-mail: [email protected] © Joyce (Kirby) Bica

SK THE SECRET SHOPPERChildren & Pets

17



Dear Maintenance Men:I am going to university and want

to use my DYI skills to supplement my income. Being that I live in a college town, there are a lot of rentals aimed at students. Since students are sometimes hard on their living quarters and move a lot, I fi gured there might be a main-tenance market for repairs and making rooms and rental units rent ready. I don’t have a lot of money to invest in tools and want your recommendation for the minimum I might need tool wise to get started?

Bryan

Dear Bryan:Good thinking Bryan, you might just

be on to something; students can be a bit hard on rental units! Keeping in mind that as a college student yourself, you have limited funds, so other than a cordless drill, we will leave power tools out of the picture. Th e majority of the repairs will involve drywall, plumbing and cleaning. Other than light bulbs, leave the electrical to the pros.

Basic Tools• Retractable utility knife• 5 in 1 paint scraper• Drywall saw• Drywall mud and tape• Bucket• Hacksaw• Claw hammer• Tape measure 25’• Caulking gun• 6 way screwdriver• Adjustable wrench• Channelock tongue & groove pliers • Small hand snake for bathroom sinks. • Toilet plunger• Broom and dust pan• Gloves• Flashlight• Safety glasses• Step stool• Cordless drill/screwdriverTh is is a limited tool set used for

light duty work. Try to buy quality tool. Many can be found at garage sales for a fraction of the retail price. With these tools, you will be able to change a faucet, repair drywall holes, unclog bath sink drains, caulk bathtubs, haul trash etc.

Dear Maintenance Men,I am planning major remodel work to

my 4plex and need some advice. My con-tractor has told me not to worry and he will have everything under control but I know that city inspections can cause se-rious delays if we are not ready for them or do something wrong. I am not an expert or experienced in construction, what should I watch for as far as the ac-tual inspections are concerned?

Bob-

Bob,It is not oft en we are able to share our

experience on the actual General Con-tracting and building side of our busi-ness so, thank you for your question.

We have listed the top reasons why professionals do not pass inspections taken from a 2015 JLC (Journal of Light Construction) survey.

Foundation: Improper reinforcement or support of rebar

Wall Framing: missing fi re-blocks, hold down straps etc.

Floor framing: missing anchor bolts, sheeting nails missing joist.

Trusses: bracing not installed, im-properly connected to wall plate

Roofi ng: over driving of nails in shingles, missing nails, incorrect felt

Window and Door: improper fl ash-ing, inadequate fi re rating, improper weather stripping

Handrail: Improper height or spacing

Plumbing: missing nail plates, im-proper pipe support

Electrical: missing grounds, GFCI protection, labeling of circuits

Decks: deck not built according to the plans, improper handrail installation

Dear Maintenance Men:I have been contemplating the pur-

chase of a high pressure sprayer for my employees to use in maintaining and cleaning around my apartment build-ings. Because these pressure washers produce a powerful stream of water, I am worried about my employees hurting themselves or damaging the building. What size machine do you recommend and how safe are they to use? Should I rent one fi rst?

Julia

Dear Julia:As with any large ticket items it is al-

ways prudent to “try before you buy”. Fortunately there are a variety of rental places to choose from which carry all sizes, makes and models.

A rental yard will oft en use the best and longest lasting machines. Most times these companies can provide you with the best information on the prod-ucts in regards to maintenance, wear & tear, life expectancy and performance.

In regards to workers safety, look at the operators manual for the best ad-vice on personnel safety wear and use. Th ese machines can produce a very powerful jet of water capable of ripping through clothing, skin and even break small bones. You should always wear goggles, leather gloves, and steel toe leather work boots with nonskid soles.

Stucco & wood siding is especially susceptible to damage when using a power washer. Use the lowest setting and wide spray nozzle to avoid damage. Lightly mist stucco surfaces if cleaning is your objective. Keep nozzle adjusted to spray not stream and approx. 2’ to 3’ away from the surface.

As with most things, proper train-ing will help insure safe usage of power tools.

Bio:Please call: Buff alo Maintenance, Inc for mainte-nance work or consultation. JLE Property Management, Inc for management ser-vice or consultationFrankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real Estate lic. #: 01460075Certifi ed Renovation Company www.Buff aloMaintenance.com www.ContactJLE.comwww.Facebook.com/Buff aloMaintenance

By Jerry L’Ecuyer & Frank Alvarez

DEAR MAINTENANCE MENMaintenance Tools & City Inspections

B&W

18



Increasing Your Property’s Bottom Line ...continued from page 7

professional approach that nails it when it comes to leasing.

First, the unit itself. It’s not just about doing a turn, where a little paint and cleaning are enough anymore. If you have an established property, chances are pretty great you’re competing in your local market with brand new de-velopments that have a “newness” you don’t. Residents like shiny and clean and smelling good and new, in addition to everyday function, location, amenities. Amenities actually have far less impact that they used to. Residents care about them, but not as much as they do about the unit they live in and call “home”. Let me ask you, what are you doing to make it feel like home to a prospect? Their home, not yours. Go shopping. Buy some simple staging items to spruce up the kitchen counter. Get a plant, a place at, some candies, make it look like an inviting presence which you then leave behind as a house warming gift. Put your sign in sheet next to it with your business cards. But the core of the unit has to “sing” rent me! Is it spotlessly clean? Did you replace anything old and worn out? Spend the money and upgrade all the appliances to stainless steel. Mist resident prefer the stainless. White can be okay, but still look dated. Black, makes the room look small and closed off. Go the extra mile and get an interior designer in to help you spec out the unit turn with the goal of maximiz-ing rents with a new lease. Don’t lock in a one year lease that’s going to end at a time of year undesirable for leasing. Be open to adjusting the lease term to say 7 months, or 10 months. Whatev-

er works so you expire at peak leasing times. The exterior has to be impeccable as well. Always have your cleaning crew on top of every detail when you’re about to lease a vacant unit. It matters. These are just a few of the things you can do aesthetically to improve your units in such a way as to draw bigger rents.

Then there is salesmanship. Who you put to the task of making that first im-pression and communicating with pro-spective new residents will either ad-vance you or kill you! The longer a unit sits vacant because it doesn’t get leased is money out the door and off your bot-tom line. Find great people (or a great person) to do your leasing and reward them generously for doing so. This keeps motivation high and keeps your property showing green! Don’t assume the best person for the job is the prop-erty manager. Not always true. It could be one individual you know who has a talent for such work and all they do for you is lease. It doesn’t have to be that way. I’m just saying that who you choose

for this particular role in the operations and management of your property is absolutely key!!! A good “sales person” can convert features to benefits in ways that are received well during a showing. I like to say, if the deposit is getting col-lected and the lease inked on the first visit - you’ve got a strong closer. Getting them approved and issuing keys as well for immediate move in is icing on an already sweet cake. A rock star leaser can do that. Find that person! They are one of your property’s most valuable as-sets. A person with good salesmanship abilities can also drive rent rates up a notch, and every dollar counts on you year-end statement. Completely affects your overall property value. My sugges-tion - when you find that person, bonus them well. Give them that “carrot’!

A well prepared unit along with an exceptional leasing professional will di-rectly impact your bottom line.

Organization and Due DiligenceThis last point I’m going to mention

has everything to do with organization-al skills, keeping the property books in order, knowing where to find things, staying on top of the numbers and how your property is actually performing month to month. Don’t wait until the end of the year or tax time to get your ducks in a row and see how it all turns out. Can you spell disaster? No, some-one should be assigned the task as scru-tinizing the income and the expenses each month, and looking at what can be changed or adjusted for maximum productivity and profit. If you don’t know your numbers, or if they aren’t accurate - how can you manage your property effectively and make money? Are you using the right software pro-gram to help you with this? How long has it been since you even looked at new software options out there (with so many talented computer geeks coming up with amazing programs!) that could be better for your property manage to and portfolio tracking tasks. Or are you


B&W

Loeffler Law Group PLLC 500 Union St, Ste 1025, Seattle, 98101

T (206) 443 - 8678 www.loefflerlawgroup.com

We serve residents of King County, Washington and surrounding areas, including: Snohomish, Thurston, and Pierce Counties.

Landlord-Tenant and Real Estate Attorneys

Areas of PracticeEvictions & Notices

Landlord Tenant Relations & Disputes

Lease Drafting & Review

Real Estate Litigation

Collections & Judgment Recovery

Fair Housing Complaint Defense

Landlord-Tenant Relations and Civil LitigationThe Loeffler Law Group PLLC practices primarily landlord-tenant law and has assisted thousands of clients to resolve difficult commercial and residential legal cases involving evictions, litigation, post-foreclosure matters, leases and other landlord-tenant disputes.

Experienced Timely Effective

19



Crowdfunding and Peer2Peer Lending For Real Estate Investors

The Disruptors We Want!

If real estate investors weren’t choos-ing crowdfunding and Peer-2-Peer lending over the alternatives of Wall

Street and Big Banks this article would end right here. But it doesn’t. Crowd-funding and Peer2Peer lending are the future of the independent real estate in-dustry for one very simple reason that Wall Street and Big Banks cannot fath-om. It’s what people want.

Here’s a quaint idea that I believed as a freshly minted college graduate, and that some companies like Goo-gle or Uber deliver on a massive scale. Th e customer is King. Another way of looking at it is if people are fl ocking to the competition, then that means they don’t like what you have to off er in comparison to your off ering. Beyond obvious, yes?

Th is then begs the question, “What do people want”? When it comes to investing it’s been assumed for decades that people only want higher, safer re-turns and that’s it. For a while there, it was assumed to be irrelevant how these higher, safer returns are delivered, nor was anyone really asking “Is that really what we’re getting”? It’s when we begin to question this system that the bankers and Wall Street scratch their heads and

stare at us as if we’re crazy, laugh, and walk off ; they cannot comprehend why we’d be saying something like that.

Th is was brought home to me in an experience I had taking the ridesharing

company, Lyft . I wanted to test it to see what all the ruckus was about and when I did, it changed my life forever. I had never had been off ered, nor taken any-thing more than, a ride home in a taxi

cab. I assume this was another taxi cab. It wasn’t. It was a ride home, at 1/3rd off in a clean, well-maintained minivan


B&W

DRYERVENTCLEANING.COM 425-398-5001 DRYER VEN SOLUTIONS

Dryer Vent SolutionsSpecializing in Condominiums and Multi-Unit Apartments

Repairs Problem vents Bird nestsRe-vents Bird guards

425-398-5001 DRYERVENTCLEANING.COM

THE DRYER VENT CLEANING EXPERTS

UNDERGROUND DETECTION & INSPECTION SERVICE

• Utility Design Surveys• Ground Penetrating Radar• Structural Concrete Imaging• Leak Detection

• Metallic Line Detection• Video Pipe Inspection• Non Metallic Pipe Detection• Electrical Fault Detection

www.cnilocates.com877-826-1177

Advertise inRental Housing Journal On-Site

Circulated to over 20,000 apartment owners,on-site and maintenance personnel monthly.

Call 503-221-1260 for more informationw w w. r e n t a l h o u s i n g j o u r n a l . co m

20



Increasing Your Property’s ...continued from page 18

still on a dinosaur system, because it’s just what you’ve used for years? Th at dinosaur could be costing you money!

Th en there is the person who is ac-tually putting the numbers in. Is it getting done regularly, on schedule, and is it accurate? Or are things fall-ing through the cracks? Again, good people are an asset to you. Value and appreciate them. Train them. Create a positive work environment that makes them want to dig into those numbers and crunch them for you! Lunch now and then, Starbucks, cookies, a gift card of appreciation. I see this people side of your business (because your property is your business) as due diligence. Th ings you need to do to arrive at a specifi c outcome. Th at outcome is profi tabili-ty. We’re all about the bottom line, but what are you doing to improve it?

Taking these things into consider-ation for each of your properties will become like second nature once you get the system in place. Whether you win one property it multiples, it’s your sys-tem that you must improve to create as-sets that perform well. Th ere are many

other factors I could elaborate on, but these are some of the basics that I hope will give you a fresh perspective and jump start to putting a fi ner pencil to that operating statement. Th e one that can get you more money to buy the next property, when you need it. Because you will have proven you know how to not just repay debt service, but take a multi-family property and improve its performance over time with your top rated management skills. Investors and partners will love you, and so will your bank account!

Tami Cox is a Business Consultant and Commercial Real Estate Lender that has been working with inves-tors and business owners for over 16 years - helping them become more profi table, grow, reach their business goals, and improve their bottom line. You can learn more about her services at www.sizzling-hotbusiness.com or reach her by phone at 952-491-0030.

Wireless Security ...continued from page 14

If you and your renters agree, you can also set up a specifi c maintenance PIN. Th e maintenance PIN can be added for all units and will not be able to be seen by the tenants. Consequently, you can use the same number for each proper-ty, without security risk, by adding a maintenance PIN.

Stay on top of your pipes and plumbing:

New wireless security systems, let you monitor the environment in your properties. Worried about freezing pipes? No need with a freeze sensor. You’ll be able to access the tempera-ture at the property remotely, you nev-er need to stress, or get in your car and drive down to check the property out. Assurance at your fi ngertips.

And it’s not just the freezing pipes that a security system helps you com-bat. Never worry about whether or not the pipes burst, or if a washing machine is leaking. To the average apartment,

water can cause $11,000 or more worth of damage. Water damage is expensive and time consuming to repair, but wa-ter sensors let you know as soon as they detect even a small amount of water. Th is way you can prevent any damage from happening and move on with your day.

Provide Extra Value to Tenants:With wireless security systems, once

you buy your system, they belong to you. Th erefore, you can do anything you’d like with them. Th is includes providing systems to your tenants. It’s easy to transfer ownership. Alterna-tively, many property owners and land-lords rent the security system as part of the apartment. You can either have the tenant subscribe to the monitoring service, or you can take care of this for them! Your tenants will love the extra security that comes with your homes!

B&W

Efficiency is easyPuget Sound Energy’s Multifamily Retrofit program can save you time, energy and money. Get started today.

It’s easy:

1. Call a Program Representative at 1-866-997-9767 or e-mail [email protected] to schedule a free energy audit.

2. An energy specialist will perform the audit and see if you qualify for the direct installation program, along with making other energy efficient upgrade recommendations.

3. The audit will also identify other ‘no cost’ and ‘low cost’ retrofit incentives your properties may qualify to receive through PSE’s Multifamily Retrofit program.

The savings start here. Schedule your appointment today.

pse.com/multifamilyretrofit

21



Music Licensing for Rental Properties ...continued from page 10

Q: What about Spotify? Or Apple music?

A: If you have not negotiated a li-cense specifically for business use of the music, such as through Mood Media, you probably need a license. In fact, some exemptions that pertain to radio transmissions do not apply to stream-ing music. Any public performance of music by using streaming services re-quires a license.

Q: I heard that there are certain ex-emptions for businesses that only play the radio. If I only play the ra-dio, do I need to pay any PROs?

A: If you are playing music from the radio, including satellite radio like Siri-usXM, your property might fall into an

exemption. As noted earlier, streaming music does not provide any exceptions.

Q: How do I know if I fall into the radio performance exemption?

A: Congress exempted certain types of businesses from compliance with the copyright laws, so long as certain con-ditions are met. Areas less than 2,000 square feet are exempt. Areas larger than that are exempt if ALL of these re-quirements are met: (1) No TV is larger than 55 inches, (2) there is no more than one TV in any room, (3) no more than four televisions are in the establish-ment, (4) no more than six speakers are in the establishment and (5) no more than four speakers are in any room.

Q: I’ve decided to pay ASCAP the licensing fee. How do I know if I’m getting a fair deal? Can I negoti-ate with the representative for a lower rate?

A: Apartment complexes are charges fees based on the number of units in the community. These rates are set by the courts and are the same for everyone. For example, for 2016 ASCAP charges $351 annually to provide a license for a community with less than 150 units, and $421 to provide a license for a community with 151 to 500 units. Dis-counts are typically offered to property managers who enter into licenses for multiple communities.

Q: I received a letter from BMI demanding that I pay fees. Can I ignore it?

A: Yes, but you are putting your com-pany at risk of getting sued for copyright infringement. Although it is not neces-sarily likely that a lawsuit would occur, it would expose the infringer to signif-icant risk. The law allows the copyright owners to sue for statutory damages in a range between $750 and $30,000 per individual copyrighted work infringed, i.e., for each song played. The liability to the property management company will be much greater in court than the licensing fees the PRO requested.

I have helped clients with other chal-lenging questions as well. For example, some property owners are concerned about fee calculation on properties with high vacancy rates. Other own-ers are concerned about public areas that are not used. Another interesting question is what to do when the cardio equipment in the gym features individ-ual televisions. Do these count towards the four televisions? These are all tricky questions without black and white an-swers. Consult an attorney before en-tering into a licensing agreement or de-ciding that no agreement is necessary.

Amanda Hyland is an attorney with Taylor English Duma LLP in Atlanta. She counsels clients on a vari-ety of intellectual property matters, including trade-mark registrations. She may be reached at [email protected].

Transforming the Multifamily Laundry Room Experience with Technology

800.421.6897 ext 1600

Learn more about how technology can

transform your laundry room.

www.washlaundry.com/technology

You may not think of laundry as a high-tech industry, but at

WASH we’ve invested millions in technology to transform

the laundry room experience for our customers. The result

is intelligent systems that enable:

• Real-Time Connectivity• Remote Laundry Monitoring• Quick Service• Easy Payment

WS16-098 WASH Tech Ad 10x7_5 4c.indd 1 7/23/15 1:28 PM

22



Window Film ...continued from page 6

plex in Phoenix and the windows are 25 years old. Rather than buy new win-dows, you can use window fi lm and market the advantage of lower electri-cal bills to potential tenants. Owners of residential buildings in hot climates are responsible for maintaining the air conditioning units, so reducing the so-lar heat load with window fi lm makes a lot of sense since it relieves stress on air conditioners.

Secondary benefi ts of window fi lmAlthough reducing a building’s solar

heat intake is the primary purpose of window fi lm, it has other advantages as well. It relieves the stress and resulting wear and tear on the cooling unit, and reduces the need for individual fans, saving energy and money. Most of these fi lms also almost completely (up to 99

percent) reject UV rays, extending the lifetime of carpeting and furniture in addition to mitigating the harmful ef-fects UV rays on people. As the tech-nology as developed, many fi lm man-ufacturers have marketed other dual benefi ts their product.

Security and windstorms: Th e 3M company has developed a fi lm se-ries that will work eff ectively in wind storms of up to 185 miles per hour and will resist breaking and entering, if in-stalled by an experienced and certifi ed installer. Th is micro layered technology is typically blast and tear resistant (see their website for examples).

Anti Graffi ti / Surface Protection Se-ries: 3M also off ers products that are graffi ti and scratch resistant. Th ey can be either 4 or 6 millimeters thick and off er protection from taggers in high

risk areas by using an invisible sacri-fi cial layer to protect glass from acid etchings, scratches and tagging. Th is layer can also protect window surfaces from regular wear and tear.

Th is product solved a recurring tag-ging problem we had at a commercial building we manage in a high risk area. Vagrants had repeatedly defaced the windows using keys and other mate-rials. We replaced the windows twice before discovering this window fi lm. Th at was eight years ago. Th e surface is scratch resistant and has held up well. Th ough there is evidence of attempts of attacks to the surface since the in-stallation, the perpetrators eventually became frustrated by the lack of results that they stopped attacking the build-ing altogether. If, perchance, they have some success, we can always strip off

the fi lm and replace it rather than in-stalling a new window.

Th e fi lm off ers the added benefi ts of heat load protection (these windows are on the south side), and privacy. Th e window fi lm is dark and refl ec-tive which makes it diffi cult to look into the space, (preventing a thief from “casing the joint” by looking through the windows.)

Saving you moneyIn select situations, window fi lm can

be used to reduce heat load, the stress on HVAC systems, electrical bills, glare and crime. It also distributes light bet-ter in some applications. As you trou-bleshoot operational problems and/or attempt to reduce energy needs, consid-er the use of window fi lms as an eco-nomical alternative to window or cool-ing unit replacements.

Note: Th ere are any more uses of window fi lms. In a future article we will address how window fi lms can be used decoratively or to increase pri-vacy in the interior of buildings with glass walls.

Text 51WAYS to 44222to receive the FREE e-book51 Ways to Increase Your

Rental Property Cash Flow(And 10 Ways To Ruin It)

“51 Ways to Increase Your Rental Property Cash Flow is full of great advice on how to get the most out of your rental properties.”

–Sam J, Smart Property Management

Contact us [email protected]

Do you need help withcontent marketing, e-mail marketing

or social media?

Inbound Marketing Certifi ed

We can help!Want to build your business?Start by building your education.

rhj.theceshop.com | 888.827.0777

An online CE platform with easy and convenient options that fit your

schedule. Enroll in your real estate continuing education courses today

and save 20% with promo code RHJ20.

23



Crowdfunding and Peer2Peer Lending ...continued from page 19

with a dental hygienist young mother of two named Denise. We chatted. I learned about her and this new way of earning extra money for raising her kids and taking care of the family a few hours at a time. In that one ride my sat-isfaction level with Yellow Cabs service dropped about 95% and I haven’t taken another cab ride since.

Th e thing is, it was more than a cab ride. It was not simply the one way delivery of a service to a customer. It was two-way. It was an interaction that made me feel like something more than “fare”. It was a ride home with another human being, who was willing to treat me as if I were a friend; we were both there to help one another, not just give to take. On top of that, the diff erences like speed of delivery and the person-al knowledge I gained from her profi le

provided me with a connection that was unprecedented in the “cab ride” scenario. I knew more about her as a person than I will ever know about any of the previous cab drivers I never knew nor will remember.

When people became aware of Uber they compared that to Yellow Cab. Yel-low Cab declared bankruptcy in San Francisco two months ago. Why? Not because they are bad at what they do. Th ey went bankrupt because the new way of getting rides made the old way totally unacceptable, unpleasant and costly. I believe this is what we are ex-periencing in the real estate investing and funding industry.

Crowdfunding and Peer-2-Peer lend-ing give people more of what they want. Th ey want to be treated with respect. Th ey want to be connected. Th ey want

the freedom to choose. Th ey want to be knowledgeable. Intelligent. In charge. For this reason, people are rejecting be-ing treated as if: all they care about is money, that they are helpless creatures, that they are devoid of the capacity to learn and that they lack sound judge-ment. Th at’s what the current model is telling us.

Technology has opened up avenues of connection and options of commu-nicating never before dreamed of. It is massively disruptive to established, commonly accepted beliefs, systems and structures that never contemplated the possibility of the level and depth of interaction and communication avail-able to each and every one of us at al-most zero cost!

Th e technology revolution has al-ready dictated that to stay competitive

we must change. We must deliver more of what people want. Much like Lyft has done with the rideshare industry, real estate borrowers and lenders are turn-ing to Crowdfunding and Peer-2-Peer lending to deliver more of what people want. Does the current establishment understand and welcome it with open arms? Of course not. Wildly disrup-tive? Yes. A threat? Yes... to the old ex-isting order and an exciting alternative for the end users. We, who can stand a little of the uncertainty that comes with the end of one age and the beginning of another are looking at an amazing op-portunity.

By Scott Whaley, President REIFADiscover all of the new technologies, strategies and ways of investing and getting funding with this new business model that has been sweeping through all industries. Now, it’s our turn. Check out REIFA and #REIFACON at www.reifacon.com or www.reifa.org.

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

Serving The Pacific Northwest

Since

Daily • Weekly • Monthly • PermanentTemporary On-Site Staff

Managers • Leasing Agents • Maintenance • Grounds Keepers

Greater Seattle-Tacoma Area

(425) 456-3663

www.apartmentadvantage.com

Greater Portland-Vancouver Area

(503) 644-8233

Need Staffing?

24



Documents

Rental Housing Journal On-Site April 2016