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51 Ways to Increase Your Rental Property Cash Flow

3. Landlord–Tenant Q&A: Fair Housing

4. Fair Housing Facts & Tips

5. Legislative Roundup

7. Dear Maintenance Men – Water Heaters, Paint Prepping and Swimming Pools

8. Ask the Secret Shopper – Ready Vacants

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

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Rental Housing Journal On-Site March 2016

9. Residential Property Management –A Great Career Opportunity

10. Rents to Flatten in 2016

11. Why Buy Earthquake Insurance?

15. Maintenance Summit Education Conference and Tradeshow

continued on page 11


continued on page 6

4Q15 Market Overview

Multifamily Housing Update

Seattle, WA

Payroll Job SummaryTotal Payrolls 1,624.1mAnnual Change 45.0m (2.9%)RCR 2016 Forecast 33.0m (2.1%)RCR 2017 Forecast 35.5m (2.2%)RCR 2018 Forecast 32.3m (1.9%)RCR 2019 Forecast 23.2m (1.4%)RCR 2020 Forecast 20.1m (1.2%)Unemployment (NSA) 4.7% (Dec.)

4Q15 Payroll Trends and ForecastU.S economic growth ground near-

ly to a halt during 4Q15, and the high fl ying Jet City labor market was not immune to its centripetal force. Pay-roll growth ebbed to a 45,000-job, 2.9% year-on-year rate, slowest since spring 2014. Much weaker expansion in the construction, manufacturing and tech-heavy information services sectors was principally responsible as these indus-tries slowed to a 2,200-job collective annual growth rate from 2Q15’s 14,100-job pace. Signs of soft er growth in the tech services niche also were evident. By contrast, momentum accelerated in the government and socially-funded

Commercial Real Estate Experts

Moderate Expansion, Easing Prices Expected in 2016

Despite various global and do-mestic hurdles hindering eco-nomic growth, steady job gains

and stable leasing demand should help keep commercial real estate activity expanding in 2016, according to the authors of an annual report published jointly by Situs Real Estate Research

Corporation (RERC), Deloitte and the National Association of Realtors®.

According to the report, Expecta-tions & Market Realities in Real Estate 2016—Navigating through the Cross-currents, commercial real estate activi-ty is forecast to gradually grow this year with demand for space holding steady

across all commercial sectors. While commercial property values and price gains are expected to fl atten aft er sur-passing 2007 peaks in some major mar-kets, investors will still benefi t from the strong income fl ows generated from new and existing leases.

EPA Cracks Down OnLead Violations

Late last year the Environmental Protection Agency (EPA) an-nounced it took action against 75

renovation contractors and others to protect people from harmful lead dust and debris exposure, as required by fed-eral Lead-based Paint Renovation, Re-pair, and Painting (RRP) regulations.

Th ese cases show EPA is cracking down on businesses and renovators who ignore federal requirements that have been in eff ect for several years now. Th ese requirements apply to many repairs and renovations done to painted surfaces in homes and daycare facilities built prior to 1978. Pre-78 properties are of concern, as they are a major source of lead exposure that can cause lead poisoning, especially in our nation’s young children.

Th e RRP Rule, which is part of the federal Toxic Substances Control Act, is intended to ensure that owners and

occupants of pre-1978 “target housing” and “child-occupied facilities” receive information on lead-based paint haz-ards before renovations begin, that in-dividuals performing such renovations are properly trained and certifi ed, and that renovators follow specifi cally pre-scribed lead-safe work practices to re-duce the potential for exposure to lead for all, including workers.

Renovators are required to give the pamphlet to property owners and oc-cupants within 60 days before start-ing a renovation. Housing providers, similarly, have obligations to notify residents prior to covered repairs and renovations, to share informational lit-erature with them, including a disclo-sure form, and to be lead-safe certifi ed or hire a contractor who is.

To protect yourself and your invest-ment, it’s important, that you assure the contractors you hire are in fact lead-safe

certifi ed and complying with the EPA’s safe work practice requirements. To learn more about what repairs are cov-ered and what these work-safe practices are, visit http://www.epa.gov/sites/pro-duction/fi les/documents/renovateright-brochure.pdf.

Th e EPA reported that rough two-thirds of the cases they recently settled involved failure to obtain EPA certi-fi cation prior to conducting renova-tions. Over half the cases were relat-ed to violations of required safe work practice standards.

Th e EPA states its aim in seeking pen-alties against RRP violators is to help deter other violations and to level the playing fi eld for companies that do fol-low the law. Such fi nes and settlements help eliminate the fi nancial advantage a

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3



Landlord–Tenant Law Q&AFair Housing

QWhat rules do I need to follow to com-

ply with anti-discrimination policy re-lated to military personnel tenants?

ATwo of the most important rules re-

lated to tenants in the military have to do discrimination when screen-ing for tenancy and allowing tenants in the military to break a rental or lease agreement.

Th e Washington Law Against Dis-crimination prohibits housing discrim-ination on the basis of military sta-tus—including honorably discharged veterans. As a protected class, military personnel may not be treated diff er-ently or denied access to housing be-cause of their military status. See: RCW 49.60.222. Penalties may apply for re-peat off enders.

Tenants in the military and their de-pendents may terminate a tenancy for a specifi ed time without penalties if the tenant receives reassignment or deploy-ment orders. Th e tenant is required to provide notice of the reassignment or deployment orders to the landlord no later than seven days aft er receipt. A month-to-month tenant in the armed forces may terminate a lease with less than 20 days’ notice if reassignment or deployment orders do not allow for twenty days. See: RCW 59.18.200(1)(b).

by Evan L. Loe� er,Loe� er Law Group PLLC

Q.We want to change our 16-unit apart-

ment complex to a “no pets” property. What if one of the tenants has a service animal?

A.Washington State law says, “A land-

lord’s no-pet policy cannot be applied to the dog guide or service animal of a person with a disability.” Service animals are considered part of the tenant—not a pet—so think of a guide dog as a furry set of eyes. If the animal is trained to assist a tenant with his or her disability the landlord must provide a reasonable accommodation. Th is may include allowing the tenant to keep the animal. Keep in mind, however, the animal is not a pet. Th e landlord may not charge a pet deposit for a reasonable accommodation.

Th e law regarding companion ani-mals and emotional support animals is constantly changing. It is best to

consult with a lawyer or other legal re-source to ensure compliance.

Q.My tenants are threatening to fi le a

harassment suit because I entered the unit to inspect. What is harassment and how do I protect myself?

A.Harassment is a gross misdemean-

or, so it is a criminal matter. A private person may not bring a civil action for harassment. A person is guilty of ha-rassment who threatens to cause bodi-ly injury, threatens to cause damage to personal property, threatens physically restrain a person, or threatens to take an action intended to substantially harm someone. See: RCW 9A.46.020(1)(a).

A tenant may, however, ask a civil court for an “anti-harassment” order against a landlord if the landlord is reg-ularly intruding on the tenant’s right of

privacy. If the landlord violates the or-der, criminal charges may be brought. If you receive a restraining order or an-ti-harassment order, contact your attor-ney immediately.

To avoid any such dispute, landlords must be aware of their rights of entry. Th e law allows a landlord access to the leased premises with at least 48 hours’ prior notice for the purposes of inspec-tion or repairs or 24 hours’ notice for the purposes of showing the premises to a prospective purchaser or renter. (No prior notice is required in the event of an emergency.) Th e notice should be in writing, provide the date and ap-proximate time of entry, and provide contact information so the tenant may notify the landlord if the access needs to be rescheduled. If the landlord abus-es the right of entry, or if the tenant refuses access unreasonably, fi nes may be assessed and, in extreme cases, the tenancy may be terminated.

Do you have a landlord-tenant law question you’d like to see answered in this column? Send it to Landlord-Tenant Answers at fax@loeffl erlegal.com.

Evan L. Loeffl er is the principal attorney at the Loeffl er Law Group PLLC, a Seattle-based fi rm emphasizing landlord-tenant relations and litigation throughout Washington State. He is a regular author and speak-er on issues related to landlord-tenant law. www.loeffl erlawgroup.com

4



Fair Housing Facts & TipsThe Fair Housing Act protects

people from discrimination when they are renting, buying,

or securing fi nancing for any housing transaction. Th e Fair Housing Act spe-cifi cally cover’s discrimination because of race, color, national origin, religion, sex, disability and the presence of chil-dren. (Provided by HUD)

Fair housing laws prohibit illegal housing discrimination.

Discrimination is illegal in any housing situation if it is based on, or adversely aff ects, a “protected class.” Th at is, if someone is denied a home, is treated diff erently, or is harassed be-cause of one of the reasons listed below, it is illegal.

Consistency is Key!1. Remember to be consistent within

your daily job performance & In-teractions when dealing with res-idents, prospective residents and their guests

2. Never make assumptions regardinga. Disabilitiesb. If an animal is a companion or petc. Treat everyone the same!

Discrimination is sometimes deliber-ate or unintentional due to lack of Fair Housing knowledge toward residents, prospective residents & their guests that fall into any protected class category

More oft en than not discrimination occurs during the leasing process while dealing with prospective residents. BE CAREFUL!

Th e information and purpose of leas-ing and Fair Housing is not to scare you out of the industry. It is an extremely important part of the job performance and expectation. Fair Housing classes will give you the understanding of pit-falls of falling into possible discrimina-tion in Fair Housing. It also prepares and gives the tools necessary to help avoid complaints.

Here are a few examples that oc-cur during leasing:

Example: Oh my, your children are beautiful! I have the perfect home for you on the ground fl oor by the play-ground! I am so excited to show you this apartment

Intention: More than likely the leas-ing associate has the best intentions for the prospective residents, it is still DIS-CRIMINATION.

Perception: Th is is discrimination in the form of Steering, and could prompt a complaint.

Correct Action: Anyone applying for an apartment can live in any available unit and must be show the same apart-ments as anyone applying

Prevention: EDUCATE, EDUCATE, EDUCATE! It is necessary to make cer-tain that the associates working for you are knowledgeable and trained to mini-mize the risk to you and your company

Discrimination is Discrimination! Unfortunately, even the best of in-

tentions of the leasing consultant can put them, the owner and Management Company at risk. Make no mistake,

Fair Housing and discrimination is real and happens.

Ignorance Of The Law Is No Excuse!Learn about the Federal, State and

Local protected class on Th e Fair Hous-ing website http://fh co.org

My best advice is Document, Document, and Document!

DocumentationHow does documentation have the

potential for a complaint?Example: You may have a star on

one guest card and not another or you may have written she is so sweet make a great resident!

Intention: You really liked that pros-pect and really thought they would make a great resident and noted as much on their guest card

Perception: Th is could be construed as discrimination base on the fact that these types of doodles and or com-ments were not present on all guest cards. Th ese guest cards would be brought into question should a com-plaint be fi led

Remember not to doodle or make marks on applications, guest cards or any paperwork related to prospect or resident

Fair Housing Laws apply to:• Owner / Agents• Property Management Companies• Maintenance, Leasing &

Administrative staff • Outside Vendors such as

Landscapers, Painters,

• Exterminators, Insurers, etc.• Real Estate Agents,

Brokers, Lenders• Homeowners & Condo

Associations• Individuals, Corporate

& Business Owners• Architects, Builders,

Developers, Engineers• Responsibility is non-delegable• Ignorance of the law is no excuse

A couple of thoughts, ask your as-sociates and how they would address these scenarios in the leasing process? (In red are common answers and or thoughts your will receive from the well intentioned leasing associates and are discriminatory, in my experience during training)

• Women with 2 young children? Do not make assumptions!

. Th is women and children will be quite, I can put them upstairs

• Married couple with 2 teen aged boys?. Th ose boy are going to be trouble

• Married couple with 1 teen aged girl?. Quite residents

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Legislative Round UpWith approximately three

more weeks of work in this year’s regular session, legis-

lators and pundits are narrowing in to the critical needs of the state, in order to end the 64th legislature. We will see both houses produce supplemental budgets this week, with Democrats likely pur-suing new revenue through the elimi-nation of tax exemptions. Republicans in the Senate have vehemently opposed the raising of any new taxes, and have pushed resolutions requiring two-thirds majority to eliminate a tax exemption. At the same time, any hope of new tax revenue through a carbon tax, is gone for this year. While nobody has seen the new revenue projections, rumors are abound that the state is looking at a $200 million shortfall in health care funding from last year.

After the policy cutoff, Landlords are only left with a few policy bills in play for this legislature. The house ver-sion of the Source of Income discrim-ination, HB 1565 is awaiting a hearing from Senate Human Services Commit-tee. RHA and its industry allies agreed to work with stakeholders to increase the availability of subsidized housing, instead of creating a new cause of ac-tion. They now met twice with Housing Authorities, with another scheduled meeting in late April. The last meeting was with a statewide sampling of public housing, and did not include the tenant advocates. The most interesting take-away was that some housing authorities

know and admit that when they issue a section 8 voucher, that many of those individuals are automatically disquali-fied from renting the housing author-ities own unit due to civil, credit, or criminal history. While it is politically convenient to say that voucher holders can’t find housing because of the econo-my and discrimination, even the advo-cates concede that they are giving out vouchers to individuals who have little hope of finding a workable unit.

Senator Fain’s housing affordability tax exemption legislation continues to move through the legislature, now with increased attention from media around the state. City of Seattle lobbyists con-tinue to defend their unwillingness to pursue more aggressive policies in the face of overwhelming opposition in the legislature. While most Washingto-nians understand that policies must be

crafted in accordance with all members of our representative body, some Seattle politicos cannot understand the culture outside their own city, and continually demand for progress on rent control in Olympia. Now that we are finally past the policy cutoff, those voices must pivot their complaints to new venues, and will be looking to integrate their housing needs perspective into the upcoming election cycle. Fain’s bill SB 6239, will likely pass quickly in the next few weeks.

Good news on the squatters bill 5894, sponsored by Sen. Tim Sheldon. The bill passed out Ina struck party line out of the Senate and has a hearing to-morrow morning (2-23) at 10 AM. Ya-kimaValley landlords will be present to testify. I have a meeting with Democrat leaders tomorrow after the hearing to review amendment language, that will

hopefully give us a bill that can get to the Governor’s desk.

Finally, a bill that would allow local governments to implement a $20 in-crease on civil filing fees in superior court has passed the house and awaits action in the Senate. The fees would pay for increases in dispute resolution pro-grams, which do not provide RHA any value, but do reduce the general operat-ing costs of courts. Because of the pos-itive fiscal impacts of these programs, the bill is supported by some Republi-cans who normally oppose court-fund-ing increases. RHA is working along-side judges and other business interests to stop the bill from passing the Senate.

National Housing Conference NotesAlso, the National Housing Confer-

ence held a webinar to discuss the up-

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health care and education services sec-tors, where year-on-year job gains ad-vanced about 10% to an 11,400-job rate.

Sluggish 2H15 global and domestic growth gave rise to a material down-ward tilt in RED Research’s base line U.S forecast for 2016. Quarterly average GDP growth now is expected to evolve at about 1.8%, down nearly –0.3% from the November projection. Growth is expected to be especially weak during 1H16 (1.6%). Our model estimates a 2% chance of negative SAAR GDP growth 2015 vs 2016.

RCR still expect Seattle job growth to top the national average, but job creation in 2016, and in the near reces-sionary 2019-2020 period is likely to be unusually slow. Job growth in each of the next three years will most likely hover in the high-1% to low-2% range; however, the forecast out-years may fall considerably lower than this.

Occupancy Rate SummaryOccupancy Rate (Reis) 94.7%RED 50 Rank 39th

Annual Chg. (Reis) -0.6%RCR YE16 Forecast 93.6%RCR YE17 Forecast 94.6%RCR YE18 Forecast 94.5%RCR YE19 Forecast 94.2%RCR YE20 Forecast 94.3%

4Q15 Absorption and Occupancy Rate Trends

Seattle renters absorbed a healthy 5,832 vacant apartments in 2015, in-cluding a 17-year high fourth quarter net of 2,257 units, according to Reis, yet

it was not enough to keep pace with a torrent of supply. Developers complet-ed 7,531 units last year and 2,806 units during 4Q15. As a result, occupancy slipped -20 basis points sequential-ly and -60 bps year-on-year to 94.7%. With a slowing economy and even more supply projected for 2016, con-ditions are likely to grow worse before they improve next winter.

Axiometrics surveys of 505 larger, stabilized properties found a higher 95.1% rate, down only -10 bps y-o-y. Th e total market rate was 94.7%. Class-C (95.4%) recorded highest occupancy for the second consecutive quarter, top-ping former champ class-B by 20 bps. Class-A trailed on 94.5%. North and West Seattle posted the highest rates (96.1%); supply-heavy Kirkland and Downtown lagged.

Th e RCR SEA demand model relies on supply growth (+), S&P500 returns (+), vacancy (+) and rent (+), job (+) and home price (-) growth as independent variables. Th e 94.7% adjusted R2 model sees weaker 1H16 absorption, deluged by record supply, but gradually improv-ing conditions aft er. Occupancy is like-ly to dip to 93.6% before recovering.

E� ective Rent SummaryMean Rent (Reis) $1,313Annual Change 8.3%RED 50 Rent Change Rank 2nd

RCR YE15 Forecast 2.5%RCR YE16 Forecast 4.1%RCR YE17 Forecast 4.3%RCR YE18 Forecast 2.9%RCR YE19 Forecast 2.4%

4Q15 Eff ective Rent TrendsReis surveys found continued strong

rent momentum in the Seattle rental market during 4Q15, recording average sequential and year-on-year growth of $13 (1.0%) and $101 (8.5%), respectively, to $1,313. Comparable 4Q14 sequential and 3Q15 y-o-y gains were 1.2% and 8.5%. Sequential gains exceeded 1% in every submarket save Renton, while three submarkets (Downtown, Kirk-land and Tukwila) topped 6%.

Axiometrics market analysis of sta-bilized same-store assets uncovered a 9.2% y-o-y average advance, up from 8.6% in the prior quarter. Class C prop-erties continued to rack up impressive growth, rising 11.1% to class-B’s 9.8% and class- A’s 4.7%, leading among classes for the eighth consecutive quar-ter. Ten submarkets chalked down dou-ble-digit growth, led by Kent (15.4%), while supply heavy Downtown (4.7%), North (6.5%) and Kirkland (4.2%) lagged materially.

Th e relationship between supply and rent is becoming clearer. Th e RCR rent model incorporates it with a sharply negative coeffi cient for vacancy rate. Th e model also uses job (+), income and home (+) price growth and BAA-rated bond yields (-) as independent variables to achieve a 97.1% ARS (SE=0.36%). Th e model forecasts a sharp deceleration in 2016 to 2.5%, followed be a nice re-bound in 2017-2018.

Trade & Return Summary$5mm+ / 80-unit+ Sales 26Approximate Proceeds $1,179mmAverage Cap Rate (FNM) 4.8%Average Price / Unit $219,661Expected Total Return 5.9%RED 46 ETR Rank 33rd

Risk-adjusted Index 4.42RED 46 RAI Rank 19th

4Q15 Property Markets and Total Returns

Th e metro property market main-tained a blistering pace as 26 invest-ment sales were recorded during 4Q15, up from 25 and 24 in 3Q15 and 2Q15, respectively. Totals sales also advanced, rising from $1.1 billion in 3Q to $1.2bn. Th e average price of traded units de-clined -9.8% to $219,661, attributable to an increase in the average property age from 23 years to 25, and possibly a small up-tick in average cap rate. Pri-vate equity and fund manager inves-tors continued to dominate the ranks of buyers, although a large public REIT also participated, closing on a class-B+ Capitol Hill mid-rise priced at ~$495/sf, according to CoStar. RCR estimate a pro forma cap rate in the low-4% area.

Recent construction trophies contin-ued to trade in the 3.9% - 4.3% range. Class-B suburban gardens are priced at yields about 50 bps behind, although Redmond and Bellevue assets are val-ued at trophy property levels. Class-B-/C properties mostly command 5.5% to 6% yields.

For valuation purposes, RCR left the purchase cap proxy stable at 4.75%. Property values are projected to fall -3% in 2016, before recovering lost ground next year. Unlevered total returns are projected to average 5.9% over a 5-year hold, down from 7.7% last quarter due to our outlook for weaker job- and stron-ger supply-growth. Th e 33rd ranked R46 total return estimate compares to a 6.7% group mean.

4Q15 Market Review ...continued from page 1

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DEAR MAINTENANCE MENWater Heaters, Paint Prepping and Swimming Pools


Dear Maintenance Men: I just replaced a water heater and boy

are they expensive! What are some tried and true ways to extend the life you a water heater or recommended preventive maintenance tips? Since I’m starting with a new heater I want to make this one last as long as I can.

Fred

Dear Fred:Th ere are a number of things you can

do to extend the life of a water heat-er, be it gas, electric, new or old. At least once a year, plan on fl ushing the tank to remove calcium deposits. First shut off the gas or breaker, let the wa-ter cool. Drain the tank and fl ush with a steady stream of water from the cold water inlet and let the water and debris drain from the drain valve until the wa-ter runs clear. If you have a 100 gallon or larger tank, use the clean out port to remove the calcium deposits. Remov-ing the deposits keeps your water heater from working overtime. Th e more de-posits in the tank, the harder the burner needs to work to keep the water hot.

Equally important is checking the “Anode Rod”. Th e anode rod is a long sacrifi cial zinc or magnesium rod that protects the metal tank from corrosion. Th is rod should be checked yearly and replaced every 3 to 5 years. Th e rod can be found at the top of the tank and is

held in place by a hex bolt head. To check the rod, turn off the water supply and let the water cool. With a wrench, turn the hex bolt at the top of the tank and lift the rod out. If the rod is smooth and white in color, it is fi ne and can be reinserted ready to be inspected again in a years’ time. If the rod is corrod-ed, brown, or looks like a rusted nail or missing all together; it is time to re-place it. (Actually, it is well past time to replace it.) A new anode rod can be

found at any plumbing supply house. If you have a low ceiling above the water tank, ask for a fl exible rod to ease the installation. Smear Tefl on pipe thread sealant on the threads of the new rod before you install it. Don’t use tape, since it can reduce the eff ectiveness of the rod. Keep in mind that replacing the anode rod on a regular basis (every 3 to 5 years) could easily double the life of your water heater.

Dear Maintenance Men:I am getting ready to paint my prop-

erty and noticed a lot of mold or mil-dew in the shaded areas. I am worried that scraping these areas when we prep for paint will cause the mold spores to spread. What do you recommend we do as prep for painting?

Marty,

Dear Marty:One item on your paint prep work

will be fi nding the cause of the mold or mildew in this part of the build-ing. Check for excess moisture in the ground, walls or even a poorly placed sprinkler head. Trim any bushes or trees that stop air fl ow or cause too much shade in these areas.

Th e best way to remove the mildew safely is to use a power washer with a soapy solution that contains a mil-dewcide. Once the building is cleaned properly with the power washer, regu-lar prep work can begin and the prop-erty painted.

Dear Maintenance Men:I have just purchased an apartment

property with a swimming pool. Th e pool is in very poor condition and I

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SK THE SECRET SHOPPERReady Vacants

While market conditions re-main strong, there may be times when you fi nd yourself

in a situation where you have no apart-ments to show. Maybe you don’t have a model or you’re in a make ready pro-cess with the vacant apartments that are available. Here is the question:

QI know I shouldn’t show an apart-

ment that isn’t ready, but I hate to ask someone to come back. Everyone is so busy I just don’t think they’ll make the time to come back for another visit. What can I do?

AFirst of all, you do not have to show

an apartment in order to rent one. While many people are “visual” and having a model or vacant apartment to show may seem like an advantage, it is not the only sales tool you have at your

disposal. Here is what can happen when there is no apartment available to show:

With a diagram of a 2 bedroom, the consultant “walked me through” the apartment as though we were inside. She used the terms “you” and “yours” during the entire “visual” tour. She pointed out the various storage areas, and also showed me the shelf and cabi-net over the washer and dryer. Th e con-sultant used descriptive words like “oak cabinetry” and “spacious breakfast bar.” She mentioned the wood-burn-ing fi replace and vaulted ceilings, and pointed out the fi replace and indicated where the ceiling begins to get higher. Th e consultant also helped me visualize what type of furniture would fi t in each room.

When the apartment “presentation” was completed, the consultant walked me over to the location of the upcom-ing apartment. She pointed out and described the amenities we saw along

the way and discussed the proximity of each one to the apartment. She in-dicated where I and my guests could park. Standing outside the apartment, the consultant pointed out other ad-vantages to this location. She drew my attention to the private patio, nearby fountain and lush landscaping. She also mentioned the friendly neighbors up-stairs and next door.

Once the leasing consultant con-fi rmed I was pleased with what I had learned about the apartment and com-munity, she asked if I would like to put a hold on the apartment until it was ready to view. When I declined, she told me she understood my hesitation since I had not actually seen the apart-ment. However, she reminded me it was the only one she had coming available; without a deposit she couldn’t hold it for me. As I continued to hesitate, she told me my deposit would be fully re-fundable if I did not like the apartment once I saw it.

As you can see, having no apartment to show did not hamper the leasing consultant’s ability to sell AND close the sale! In fact, it was quite the oppo-site: She became even more creative in selling her product! She had the oppor-

tunity to go the extra mile and “create a visual,” and she took advantage of it. Th e prospective renter in this situ-ation got a more comprehensive tour when there was no apartment available to show!

Remember: You only get one chance to make a good fi rst impression. Sell-ing what you have to off er will increase your leasing ratio. Rather than demon-strating a dirty apartment or asking the client to come back, put your product knowledge to the test: Give a thorough presentation with whatever sales tools you have at your disposal, and then close the sale. Once you rent that last vacant apartment sight unseen, you will have the confi dence to prelease all those upcoming notices . . .

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

Almost 250 people gathered at the beautiful Davenport Grand Hotel in Spokane on February 25th for the first annual Eastern Washington Emerald Awards! At this elegant luncheon event, ten Emerald trophies were awarded in eight categories. Please join us in congratulating the following 2016 Emerald Award Recipients.

Leasing Agent/Assistant Community Manager of the Year Presented by Zillow Group Rentals

Desiree Vick - Greystar

Maintenance Technician of the Year Presented by Compass Construction Jeff Hill - Black Realty Management

Industry Partner of the Year

Presented by Washington Multi-Family Housing Association Aalpine Services Co.

Volunteer of the Year

Presented by Washington Multi-Family Housing Association Michele Davis - ForRent Media Solutions

Curb Appeal

Presented by Washington Multi-Family Housing Association Island View Apartments - Avenue5 Residential

Community of the Year

Presented by ForRent Media Solutions Lofts at Innovation Center - Prodigy Property Management

Maintenance Supervisor of the Year

Presented by Alliance Flooring 1-175 Units: Alan Christensen - Madrona Ridge Residential LLC.

176+ Units: Tom Clark - Greystar

Community Manager of the Year Presented by RentPath

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9Rental Housing Journal On-Site · March 2016

Residential Property Management

In February, the Washington Multi-Family Housing Association was honored to hold their annual

Emerald Awards celebration in the Seat-tle/Bellevue area and in Eastern Wash-ington in Spokane, attended by 1,250 total industry members.

Th e Emerald Awards provided com-panies with an ability to recognize their most accomplished employees and ris-ing stars. Employee recognition and a simple acknowledgment of a job well done are unfortunately too oft en over-looked in our industry.

WMFHA received over 350 nomi-nations for these prestigious industry awards. 40 awards were given out to industry representatives, such as for Community Manager of the Year, Leas-ing Consultant of the Year, Mainte-nance Technician of the Year, and may other recognition awards.

Th e camaraderie, support and con-gratulations extended to the award nominees, fi nalists and eventual award recipients transcended company pride and brought our entire industry to-gether for the purpose of celebrating the industry we love and giving back to others who share the same aspirations.

Our front-line employees, from groundskeepers and maintenance ser-vice technicians to leasing agents, as-sistant managers and community man-agers, are the faces and voices of our industry. Th ey are the ones who meet and serve our residents and prospective residents. Th ey support their families and aspire to build a long term careers in property management.

Th is is a service industry – a people business. Everyone needs a good, safe, quality home to live in, raise a family, grow a stable career, enjoy their pas-

sions and contribute to a community. Th e rental housing industry helps peo-ple live in a home that’s right for them.

In April, WMFHA will hold its fi rst ever Career Fair, allowing job seekers an opportunity to meet with companies looking to bring new talent to our in-dustry. April has been designated Res-idential Property Management (RPM) Careers Month, and April 5th will be National Apartment Housing Day.

Th ere has never been a better time to start a career in residential property management. Demand for rental hous-ing is growing rapidly, and so is the need for talented, creative, and passion-ate people to help build strong commu-nities. RPM is a meaningful, robust, dynamic, and highly professional fi eld, dedicated to helping people choose and enjoy the housing lifestyle that’s right for them.

At our EdCon Education Confer-ence and Exhibition in March, one of the classes will be presented by several leaders in our industry. Th e class will be providing insight into how a com-pany can create a culture of employee appreciation and development. Em-ployees and their “human capital” are a companies’ greatest resource, but need to be managed with a strategic goal outcome to contribute to the success of each employee, thereby ensuring suc-cess for the company.

Companies need to invest in their employees’ growth and knowledge. WMFHA’s April Maintenance Summit education conference and trade show for apartment maintenance service professionals allows an opportunity for participants to expand their skill base and better serve their owners and res-idents. Companies that support their

employees’ skill development and pro-fessionalism reap the rewards of a high-er performing employee and lower em-ployee turnover.

In conjunction with the National Apartment Association Education In-stitute, WMFHA provides several na-tional designation programs such as Certifi ed Apartment Manager (CAM), National Apartment Leasing Profes-sional (NALP) and Certifi ed Apart-ment Portfolio Supervisor (CAPS).

Earning a designation provides the skills, knowledge and credentials to create career advancement opportuni-ties. Companies that support their em-ployees’ attendance at these educational classes see greater productivity and en-hanced bottom line return.

Many professional property manage-ment companies have employee reten-tion policies that allow for educational reimbursement dollars for employees who advance their careers by taking professional classes such as those that WMFHA provides. We recommend that you review your company em-ployee manual to see if such fi nan-cial reimbursement policies exist for your benefi t.

Th is month, a contingent of WMFHA members and staff traveled to Wash-

ington D.C. to meet with our Members of Congress and discuss issues of im-portance to our industry. We advocat-ed for sound policies that promote the ability of our properties to serve our residents.

Senator Maria Cantwell was partic-ularly supportive. She expressed her gratitude for the great work we are do-ing, particularly in eff orts to expand aff ordable housing, house veterans and their families, and to work with the homeless agencies in cities plagued by high homeless population.

Th e eff orts of our collective con-tributions to the fabric of society are understood and appreciated by many key policymakers, but unfortunately, not all lawmakers. We will continue the grassroots advocacy eff orts on be-half of everyone supporting quality rental housing.

Remember to thank your on-site employees, as oft en as possible, for the great work they are doing.

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.

A Great Career Opportunity

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

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Rents to Flattenin 2016

Aft er years of record rent appre-ciation, Zillow’s rental forecast shows relief in sight for cash-

strapped renters.

• National median rent at the end of 2015 was $1,381, and is expected to increase slightly to $1,396 over the next 12 months.

• Th e slowdown in rents means that, by the end of the year, they will be rising at a slower pace than incomes in many markets.

• In December, home values rose 4 percent to a Zillow Home Value Index of $183,500.

Rent appreciation will level off over the next 12 months, slowing to an an-nual rate of 1.1 percent by December 2016, according to the new Zillow® Rent Forecasti. Th e national Zillow Rent In-dexii at the end of 2016 is projected to be $1,396 -- compared to $1,381 in De-cember 2015.

Zillow is forecasting a decrease in the rate of rental appreciation amid a rent-al aff ordability crisis that has renters in some markets spending almost half of their income on rent. Some of the fast-est growing metros had double-digit annual rental appreciation at the end of 2015.

Zillow expects rental appreciation to slow down most signifi cantly in Nash-ville, Tenn., San Francisco, Portland,

Ore. and Denver. Rents in San Fran-cisco saw 12.5 percent appreciation in 2015. Zillow forecasts rent in San Fran-cisco will grow half as fast in 2016 -- 5.9 percent.

Even with the slowdown, rents will remain unaff ordable in many of the major markets across the U.S., espe-cially on the West Coast. Renters in San Francisco and Los Angeles can expect to spend 40 percent of their income on a rental paymentiii.

“Hot markets are still going to be hot in 2016, but rents won’t rise as quickly as they have been,” said Zillow Chief Economist Dr. Svenja Gudell. “Th e slowdown in rental appreciation will provide some relief for renters who’ve been seeing their rents rise dramatically every single year for the past few years. However, the situation remains tough on the ground: rents are still rising and renters are struggling to keep up.”

Th e slowdown in rental appreciation indicates that supply of new multi-fam-ily homes is catching up to demand. Substantial new housing supply is be-coming available in Atlanta, Denver, Portland, Seattle, and other markets.

Th e Zillow Home Value Index rose 4 percent year-over-year in Decem-ber 2015, to $183,500, according to the Zillow® December Real Estate Mar-ket Reportsiv.


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Th e fi ft h annual release of the joint report draws on the three organiza-tions’ respective research and expert analysis and off ers an objective outlook on commercial real estate through fore-casts and commentary on the current economy, capital markets and com-mercial real estate property markets. A research-based assessment of the offi ce, industrial, apartment, retail and hotel property sectors is also provided.

“Historically low interest rates, es-pecially in treasuries, combined with commercial real estate’s stable prices and value make this asset an attractive investment,” says Ken Riggs, president of Situs RERC. “Looking into 2016, the commercial real estate market should moderate, which could stabilize prices.”

Vacancies are expected to contin-ue to decline slightly in 2016 for all property types, except in the apart-ment sector, where they are forecast to increase modestly by the end of the year as more new project completions come onto the market. Continued job growth, demand exceeding supply and limited new construction (outside of multifamily) should lead to rising rents and steady investor returns, which overall will shift away from capital ap-preciation as price growth levels off in many markets.

Continuing on the same slow trajec-tory seen for many years, the U.S. econ-omy – facing headwinds from a rising dollar, fi nancial market volatility and geopolitical concerns – is forecast to grow at a rate of 2 percent to 3 percent in 2016, which is stronger than most global economies and enough to gen-erate around two million net new jobs over the next year. Defl ationary pres-sures related to low gasoline and energy prices are expected to diminish by mid-2016, in part because of robust growth in apartment rents.

“Supported by solid hiring in most parts of the country, the demand for ownership and rental housing will con-tinue to increase in 2016 despite an-other year of meager economic expan-sion,” says Lawrence Yun, NAR chief economist. “While supply shortages will weigh on housing aff ordability and push home prices and rents higher, the housing sector will keep the U.S. econ-omy afl oat and lead the residential in-vestment component of GDP growth by up to 10 percent this year.” SOURCE National Association of Realtors

Commercial Real Estate Experts ...continued from page 1Why Buy

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

Many of our clients have asked us over the years if they should purchase earthquake

insurance. Th is is a diffi cult question to answer specifi cally because every prop-erty is constructed diff erently (i.e. wood, masonry, concrete, metal) and is locat-ed on diff erent soil(i.e. clay, rock, sand). Th e height of the building also makes a diff erence. Imagine the impact on a one story building versus a thirty story un-reinforced masonry building. Th e age of the building, and the code requirements in every state and city, need to be taken into consideration as well.

Most importantly, building owners want to know what risks their buildings face located in the Cascadia subduction zone, a seismic area that encompasses the coastal areas of Northern California to Vancouver Island and inland to I-5.

The Impending RiskIn the cover story in the July 2015

edition of the New Yorker Magazine titled,“Th eReally Big One: An earth-quake will destroy a sizeable portion of the coastal Northwest.”Author Kath-ryn Schulz pointed out, “we now know that the odds of the big Cascadia earth-quake happening in the next fi ft y years are roughly one in three. Th e odds of the very big one are roughly one in ten.”

Chris Goldfi nger, professor and pale-oseismologistat Oregon State Universi-ty, is an expert in seismic and tectonic studies and one of the main sources of the New Yorker article. In 2011, he also

authored a comprehensive study on the Cascadia subduction zone for the US Geological Survey based on 13 years of research that exposed a pattern of earthquakes refl ected in the region’s earthquake history.

“Over the past 10,000 years, there have been 19 earthquakes that extend-ed along most of the margin, stretching from southern Vancouver Island to the Oregon-California border,” Goldfi nger noted in a 2012 OSU news release on the paper. “Th ese would typically be of a magnitude from about 8.7 to 9.2 – really huge earthquakes. We’ve also determined that there have been 22 additional earthquakes that involved just the southern end of the fault,” he added. “We are assuming that these are slightly smaller – more like 8.0 – but not necessarily. Th ey were still very large earthquakes that if they happened to-day could have a devastating impact.”

Jay Patton, a co-author on the study, added, “By the year 2060, if we have not had an earthquake, we will have exceeded 85 percent of all the known intervals of earthquake recurrence in 10,000 years. Th e interval between earthquakes ranges from a few decades to thousands of years, but we already have exceeded about three-fourths of them.”Th e last major earthquake along the Cascadia subduction zone was es-timated to have occurred in approxi-mately 1700.

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4Q15 Market Review ...continued from page 6

The information contained in this report was prepared for general information purposes only and is not intended as legal, tax, accounting or financial advice, or recommendations to buy or sell currencies or securities or to engage in any specific transactions. Information has been gathered from third party sources and has not been independently verified or accepted by RED Capital Group. RED makes no representations or warranties as to the accuracy or completeness of the information, assumptions, analyses or conclusions presented in the report. RED cannot be held responsible for any errors or misrepresentations contained in the report or in the information gathered from third party sources. Under no circumstances should any information contained herein be used or considered as an offer or a solicitation of an offer to participate in any particular transaction or strategy. Any reliance upon this information is solely and exclusively at your own risk. Please consult your own counsel, accountant or other advisor regarding your specific situa-tion. Any views expressed herein are subject to change without notice due to market conditions and other factors.


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Maintenance Summit EducationConference and Trade Show Exhibition

Hosted by the Washington Multi-Family Housing AssociationFeaturing the Maintenance Mania® competition

Wednesday, April 27th, 2016 • 8:30AM – 4:00PMTukwila Community Center – 12424 42nd Ave. S, Tukwila, WA 9818

2016 Maintenance Mania EventsThere are eight events that are standard for all Maintenance Mania® programs. Each race is open to every Maintenance Mania® participant.

1. AO Smith Water Heater Installation

2. CFG Faucet Installation

3. Fluidmaster Duo Flush Toilet Conversion

4. Kidde Fire & Carbon Monoxide Safety Installation

5. Frigidaire Ice Maker Installation

6. Kwikset Key Control Deadbolt Test

7. Seasons Ceiling Fan Installation

8. Motorola and Niagra Conservation Race Car Competition

*To qualify for the National Championship, you must complete all eight events


WFMHA’s 2016 Maintenance Summit Education Conference & Tradeshow Exhibition

2016Maintenance

SummitFeaturing the Maintenance

ManiaCompetition!

EDUCATION – TRAINING – TRADE SHOW – MAINTENANCE COMPETITION

ONE LOW PRICE GETS YOU INTO EVERYTHING!! – $89 | Members $109 | Non-MembersHot breakfast & lunch included!!

Join your service team peers for a day of hands-on education and skill building classes in plumbing, electrical repair, appliance repair, pools, painting techniques, moisture detection, management skills and More!

Make your way around the trade show fl oor and visit with the best products and services vendors in the industry.

Support your industry and others in your profession. Learn new valuable ser-vice techniques that can be implemented at your property to benefi t your owner and residents.

Ask any property manager and they will tell you—Service Teams are the back-bone of the multifamily industry. Day-in and day-out, our Maintenance Techs, Groundskeepers, Lead Techs and Maintenance Supervisors keep our residents happy and our properties running smoothly.

In recognition of the valuable role they play, the National Apartment Associa-tion (NAA) commenced its nationwide maintenance competition, Maintenance

Mania®, and the Washington Multi-Family Housing Association said, “Bring on the heat!”

Th e day concludes with the Maintenance Mania competition, with an oppor-tunity to qualify for the national Maintenance Mania competition in Las Vegas at the National Apartment Association Education Conference. Racing against the clock, you will compete against each other to see who is the fastest in eight main-tenance-focused challenges. Th e fi nale of the event concludes with a race car com-petition, where the competitors build a model car using at least one maintenance product or part and race it down a pinewood derby-style track. Cash prizes are off ered for top times, including a $750 bonus for the best overall time.

“Maintenance professionals are essential to the success and viability of the mul-tifamily housing industry,” said NAA President Doug Culkin, CAE. “NAA is ex-tremely proud to be able to shine a light on such an outstanding group of individuals through the Maintenance Mania® program.”

Event TimelineTime Event Room Class Speaker

8:00 – 8:30 Registration/Breakfast8:30 – 9:00 Trade Show Floor Opens

9:00 – 10:00 Technical Courses Meeting Rm A Basic Pool Maintenance and Equipment Dave Alfano, HD SupplyClassroom B Plumbing Repair Techniques & Tips Lance Shippy & Chris Blamire, Roto RooterSocial Hall Debunking the Myths about Mold and Mildew

Banquet A/B/C Whirlpool Appliance Repair (Refrigerator) Randy Kruger and John Ybarra, Whirlpool Corporation

10:00 – 10:30 Visit the Trade Show Floor10:30 – 11:30 Technical Courses Meeting Rm A Safety On Site Dave Alfano, HD Supply

Classroom B Emerging Technologies in Electrical: GFCIs and AFCIs in Apartment Homes Dane Sydow, Essex Property Trust

Social Hall Disaster Preparedness Raejean Kreel, Tukwila Fire Dept.

Banquet A/B/C Whirlpool Appliance Repair (Washers/Dryers) Randy Kruger and John Ybarra, Whirlpool Corporation

11:30 – 12:00 Visit the Trade Show Floor12:00 – 12:30 Lunch12:30 – 1:30 Technical Courses Meeting Rm A Service Team and Offi ce Team Coordination

Classroom B Touchdowns in Leadership Jessica Fern, FPISocial Hall Tips & Tricks Of Th e Trade

Banquet A/B/C Whirlpool Appliance Repair (Dishwasher & Ranges)

Randy Kruger and John Ybarra, Whirlpool Corporation

1:30 – 2:00 Visit Trade Show Floor2:00 – 4:00 Maintenance Mania Competition

4:00 Awards, Prizes, Wrap Up

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Class Descriptions & Speakers2016 Maintenance Summit Education Conference and Tradeshow Exhibition

9:00 a.m. – 10:00 a.m.Meeting Room ABasic Pool Maintenance

Basic pool maintenance with a strong emphasis on pool safety. Attendees should come away with an understand-ing of pool and spa liability prevention and operator and resident safety. Per-fect for new maintenance personnel with a basic exposure to pool care and safe operation.

Dave Alfano, HD Supply – Regional Trainer

David Alfano has over 35 years’ experience in facilities

maintenance. Managed a crew of eight employees and over saw various subcon-tractors in the refurbishment of 6,587 apartment units in a 10-year program, which was completed in eight. David was recognized as employee of the year in southern California in 1998 and his property was also recognized as property of the year for that same year. He was a Maintenance Supervisor for multiple apartment communities in Washington State which consisted of 594 units. Da-vid was recognized by the Washington Apartment Association as the Mainte-nance Supervisor of the year for 2003. He was a Regional Maintenance Super-visor for over 10 years for a local property management fi rm with 30 properties in their portfolio; he was instrumental with setting up training programs and assist-ing in coordinating property capital proj-

ects and renovations while he was there. David is NSPF Certifi ed Pool Operator (CPO) and Lead Paint Removal & Re-mediation EPA Certifi ed. He is excited to share his experience in multifamily facili-ties maintenance.

Classroom BPlumbing Repair Tech-niques & Tips

Water Heater repair tips, tricks and best practices. Th ere will be a “Stump the Professional Plumbers” segment, so bring your questions, plumbing con-cerns and fi nd the right answer from two seasoned industry professionals.

Chris Blamire, Roto-Root-er Services Co – Plumbing Manager

Chris has been in the Seat-tle/Tacoma area as the Plumbing Man-ager for Roto-Rooter for the last 17 years. He has a vast knowledge in Service, Commercial and New Construction Plumbing. Chris is a Licensed Journey-man Plumber in Washington State and Canada.

Lance Shippy, Roto-Rooter Services Co. – Commercial Manager

Lance has been in the service plumbing industry

for the last 20 years in the Seattle/ Ta-coma area. He has specialized in ser-vice plumbing and excavations repairs. Lance is a Licensed Journeyman Plumb-

er in Washington State and a Licensed Gas Flex installer.

Social HallDebunking the Myths about Mold and Mildew

Th is course will discuss industry specif-ics of how to properly deal with moisture problems, the inevitable fungal growth, and fallout from worried residents. Let’s be honest, the majority of mold and mil-dew issues start with the environment the residents are creating in their homes. With that said we must be sensitive to their needs and concerns. Th is course will explain sources of mold and mil-dew, diagnose why it’s there, give service team members techniques to deal with residents, and ultimately manage the oc-currence properly in order to protect the property, employer, and client.

Banquet Room A/B/CWhirlpool Appliance Re-pair (Refrigerator)

In this class you will learn to diag-nose all typical refrigerator failures including the self-defrosting system, fan motors, thermostats, and compres-sor components to name a few. We will discuss in detail maintenance and proper use and care for tenants to pro-mote longevity of many of the compo-nents requiring cleaning on a regular basis. Basic understanding of a Volt/Ohm meter will be discussed to aid the

attendee in understanding fundamen-tal meter reading skills.

Randy Kruger, Whirlpool Corporation – District Ser-vice Manager

Randy has over 30 years experience in the appliance industry. Randy started his career as an electri-cian in the United States Navy. Aft er leaving the Navy, he worked for a Facto-ry Service company and an independent service company as a fi eld technician. In 1990, he started working as a fi eld ser-vice technician for Whirlpool Factory Service. During the time at Whirlpool, Randy has held several diff erent posi-tions of increased responsibilities; Tech-Line Consultant, Regional Service Man-ager, Senior Account Manager, and now District Service Manager for Oregon, Washington, Idaho, and Alaska. Part of the job responsibilities of a District Service Manager is to provide technical training to service technicians in the re-gion. Randy has a thorough understand-ing of the appliance industry and very strong technical/diagnostic skills

John Ybarra, Whirlpool Corporation – Field Service Trainer

John has over 30 years experience in the appliance industry. He fi rst worked in his family’s appliance store as he was growing up. He left the family business and worked for an independent service


16 Rental Housing Journal On-Site · March 2016


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provider before joining Whirlpool Corpo-ration in 1994 as a Factory Service Tech-nician. For a brief period, John worked for Maytag Factory Service as a Lead Technician before rejoining Whirlpool as a Master Technician for the Whirlpool Tech-Line. In 2012, he was promoted to District Service Manager, covering Cali-fornia & Nevada. John has very strong technical and diagnostic skills. He is cur-rently working with an elite Field Service Training Team within Whirlpool, respon-sible for the delivery of training to their authorized service network and trade customers.

10:30 a.m. – 11:30 a.m.Meeting Room A Safety On Site:

Th e highest priority of a maintenance associate is safety! Th is class is a good introduction to OSHA and the regu-lations they have designed to keep the maintenance industry safe and service personnel healthy. Common sense ap-plications will be discussed in: S.D.S sheets; chemical storage and use; mov-ing heavy equipment properly; crime and security issues; protective equip-ment usage; Lockout/Tagout; blood borne pathogens; ladders and their use; and natural safety issues.

Dave Alfano, HD Supply – Regional Trainer

David Alfano has over 35 years’ experi-ence in facilities maintenance. Managed a crew of eight employees and over saw various subcontractors in the refurbish-ment of 6,587 apartment units in a 10-year program, which was completed in eight. David was recognized as employee of the year in southern California in 1998

and his property was also recognized as property of the year for that same year. He was a Maintenance Supervisor for multiple apartment communities in Washington State which consisted of 594 units. David was recognized by the Washington Apartment Association as the Maintenance Supervisor of the year for 2003. He was a Regional Mainte-nance Supervisor for over 10 years for a local property management fi rm with 30 properties in their portfolio; he was instrumental with setting up training programs and assisting in coordinating property capital projects and renovations while he was there. David is NSPF Certi-fi ed Pool Operator (CPO) and Lead Paint Removal & Remediation EPA Certifi ed. He is excited to share his experience in multifamily facilities maintenance.

Classroom BEmerging Technologies in Electrical: GFCIs and AF-CIs in Apartment Homes:

A big part of maintenance profession-al’s role is to ensure the safety and com-fort of residents in their homes. In this session we will discuss the applications and functions of GFCI and AFCI devic-es in the multi-family environment.

Dane Sydow, Essex Proper-ty Trust – Learning and De-velopment Manager

Dane started his career in residential property management in the mid 90’s as a Porter at a mid-rise lease up community in Seattle, WA. Since then he has served the residential property man-agement community in a variety of ca-pacities. From Maintenance Supervisor

to Maintenance Recruiter to his current position of Learning and Development Manager with Essex Property Trust, he has exhibited an undying passion for putting people in touch with the resources that will have a positive impact on their career growth.

Social HallDisaster Preparedness:

Learn eff orts to take to build a plan for responding to any emergency situ-ation that might aff ect your property, your staff or your residents. Prior plan-ning and preparedness may be the most critical step to handling any emergency circumstances that might arise.

Raejean Kreel, Tukwila Fire De-partment – Emergency Management Specialist

Banquet Room A/B/CWhirlpool Appliance Re-pair (Washers/Dryers):

In this class the participant will learn the basics of cleaning and repair of the unitized laundry center. Cleaning of lint from the dryer vent and strategic parts of the dryer to maintain safe op-eration will be covered along with oth-er maintenance critical to maintaining longevity. Repair and replacement of parts with high failure rates will be covered in detail. Complete disassem-bly of a laundry unit will take place for a fi rst hand real world experience for the participant.

Randy Kruger, Whirlpool Corporation – District Service Manager

Randy has over 30 years experience in the appliance industry. Randy started his career as an electrician in the Unit-

ed States Navy. Aft er leaving the Navy, he worked for a Factory Service compa-ny and an independent service company as a fi eld technician. In 1990, he started working as a fi eld service technician for Whirlpool Factory Service. During the time at Whirlpool, Randy has held sev-eral diff erent positions of increased re-sponsibilities; Tech-Line Consultant, Re-gional Service Manager, Senior Account Manager, and now District Service Man-ager for Oregon, Washington, Idaho, and Alaska. Part of the job responsibilities of a District Service Manager is to provide technical training to service technicians in the region. Randy has a thorough un-derstanding of the appliance industry and very strong technical/diagnostic skills.

John Ybarra, Whirlpool Corporation –Field Service Trainer

John has over 30 years experience in the appliance industry. He fi rst worked in his family’s appliance store as he was growing up. He left the family business and worked for an independent service provider before joining Whirlpool Corpo-ration in 1994 as a Factory Service Tech-nician. For a brief period, John worked for Maytag Factory Service as a Lead Technician before rejoining Whirlpool as a Master Technician for the Whirlpool Tech-Line. In 2012, he was promoted to District Service Manager, covering Cali-fornia & Nevada. John has very strong technical and diagnostic skills. He is cur-rently working with an elite Field Ser-vice Training Team within Whirlpool, responsible for the delivery of training to their authorized service network and trade customers.




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12:30 p.m. – 1:30 p.m.Meeting Room A Service Team and O� ce Team Coordination:

Th e purpose of this presentation is to help you defi ne your idea of a high-per-forming offi ce team, get you focused, passionate, and cohesively working to-gether because you are one team.

Th is class will help you to create a high-functioning, quality service, uni-fi ed team, all driven by communication and support of each other, what we like to call teamwork!

Classroom BTouchdowns in Leadership:

Learn how the game of football re-lates to your property maintenance world. Be a team captain at your prop-erty to motivate and drive your team for success. Tackling challenges, hus-tling to solve problems, passing assign-ments to beat the clock combine for a winning formula. Authoritative and infl uential leadership is essential in any career path – come be captivated, moti-vated and activated.

Jessica Fern, FPI Manage-ment – Training & Develop-ment Manager

Jessica has 7 years of experi-ence in the Multi-Family Housing Indus-try and is the current Training and De-velopment Manager for FPI Management Inc. Jessica trains employees in multiple states on sales, customer service, leader-ship, operations, management, budget compliance, and has just developed and rolled out an 8 hour Maintenance Train-ing course. Jessica has specifi c education

and passion for Leadership, and takes a special interest in the Maintenance aspect of the industry.

Social HallTips & Tricks Of � e Trade:

Th is course will go through the ba-sics of the tricks every maintenance person should know in order to man-age their day more effi ciently. From the best wall patch, door patch, popcorn ceilings, plumbing fi xes, and basic best practices for saving time and money. We also cover some great products on the market that may or not be known to your maintenance team. Th ese tips and tricks come from a wide variety of sources inside and outside of the indus-try. It is sure to be a fun, interesting, and informative class for all.

Banquet Room A/B/CWhirlpool Appliance Repair (Dishwasher & Ranges):

All new dishwashers have internal in-herent energy reduction changes based on DOE regulations. During this class you will learn how these changes are implemented into the new dishwasher wash system. We will also cover dish and glassware cleaning complaints, and how to determine component fault and diagnosis.

Randy Kruger, Whirlpool Corporation –District Service Manager

Randy has over 30 years experience in the appliance industry. Randy started his career as an electrician in the Unit-ed States Navy. Aft er leaving the Navy, he worked for a Factory Service compa-ny and an independent service company as a fi eld technician. In 1990, he started

working as a fi eld service technician for Whirlpool Factory Service. During the time at Whirlpool, Randy has held sev-eral diff erent positions of increased re-sponsibilities; Tech-Line Consultant, Re-gional Service Manager, Senior Account Manager, and now District Service Man-ager for Oregon, Washington, Idaho, and Alaska. Part of the job responsibilities of a District Service Manager is to provide technical training to service technicians in the region. Randy has a thorough un-derstanding of the appliance industry and very strong technical/diagnostic skills.

John Ybarra, Whirlpool Corporation – Field Service Trainer

John has over 30 years experience in the appliance industry. He fi rst worked in his family’s appliance store as he was growing up. He left the family business and worked for an independent service provider before joining Whirlpool Corpo-ration in 1994 as a Factory Service Tech-nician. For a brief period, John worked for Maytag Factory Service as a Lead Technician before rejoining Whirlpool as a Master Technician for the Whirlpool Tech-Line. In 2012, he was promoted to District Service Manager, covering Cali-fornia & Nevada. John has very strong technical and diagnostic skills. He is cur-rently working with an elite Field Ser-vice Training Team within Whirlpool, responsible for the delivery of training to their authorized service network and trade customers.

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Legislative Roundup ...continued from page 5 Dear Maintenance Men ...continued from page 7

coming years housing budgets and pro-grams. It was a very broad discussion about national housing trends, but was still a good perspective of where Wash-ington’s housing politics sit within the nation. Below are some notes from the discussion:

In the Housing Landscape for 2016 a few comments that seem to be consis-tent with what we have experienced, or at least been hearing in Wash-ington State.

Millions of low to moderate in-come-working households spend more that half of their income on housing. More households are renting, leading to escalating rents and greater aff ord-ability challenges.

Lower-income and minority house-holds are signifi cantly more likely to be cost burdened than higher-income and Caucasian households.

Th e highest shares of cost burdened working households live in high-cost markets on the coasts. Seattle was not mentioned specifi cally.

Federal policies are critical for ad-dressing the high demand for aff ord-able housing, but current resources are

insuffi cient to meet needs. At the state and local level, tax policies, zoning and land use regulations can provide in-centives and reduce costs for creating more aff ordable housing. Th is is the position that many private sector resi-dential developers have been saying for years. Seattle has its own special regu-latory issues. Strategies need to stress the importance of place to ensure that individuals and families have access to opportunity.

Bottom line 80% of HUD’s budget is rental assistance programs like Hous-ing Choice Vouchers, Public Housing, Project-based rental assistance, Home-lessness Programs, etc... Although there is hope for more money to assists increase rental assistance in the federal budget, the partisanship over the bud-get probably will not yield any more that the same spending levels of the last biennium.

Bill HinkleHinkle and Associates, LLC

am debating fi lling it in and putting in grass over the top. What is the proce-dure for fi lling in a pool?

Rena

Dear Rena:In our opinion a fi lled in apartment

swimming pool is a good apartment swimming pool and an excellent use of dirt! First, before fi lling in a pool, check with your city or county, permits and procedures may diff er. Drain all of the water out of the pool and pour concrete into the skimmer, main bot-tom drain and into any pipes leading into the pool. Th is will stop any water or creatures from using the pipes as a runway into the pool equipment area. If your pool is surrounded by concrete, try to save the water fi ll line into the pool, it can be used as a future sprin-kler water line. Using a jackhammer, poke a number of holes in the bottom of the pool to help in drainage. Th ese holes should be at least twelve inched wide and all the way through the pool bottom. Keep in mind the pool bottom can be a foot thick or more. Leave all the jackhammer debris in the bottom of the pool; it will help in future drain-age. If your coping around the pool is in good condition, you can leave it, but we recommend that it be removed.

Th e coping can easily be detached by sledge or jackhammer. Just let the cop-ing fall into the pool it will also help in drainage. One half to three quar-ters of the back fi ll material should be sand or gravel at the bottom of the pool. Th e balance of the fi ll should be clean dirt and topsoil level with the existing grade. Water the dirt as you back fi ll the pool to help in compressing the soil. Th e topsoil should be pack down with a tamper. Water the soil regularly for about a week, fi lling in any low spots. Seed or landscape as you wish aft er the soil has stabilized. Lastly, contact your insurance company and tell them the good news about your newly fi lled in pool, your rates might just come down a little.

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.comwww.ContactJLE.comwww.Facebook.com/Buff aloMaintenance

[email protected]@monster-tamer.com


20



Earthquake Insurance ...continued from page 11

The Predicted ImpactWhat that mean to owners of Pacific Northwest properties is that there is a risk

and we need to prepare for it. A 2011 Cascadia earthquake study by the Federal Emergency Management Agency (FEMA) estimated that only 20 percent of the buildings located in the Portland Metro region would escape damage; the other 80 percent would suffer damage from slight to complete loss.

Table 1: Analytical Baseline Study for the Cascadia Earthquake and Tsunami (Source: FEMA, November 18, 2011)

Commercial None Slight Moderate Extensive Complete TotalMetro 6,759 10,106 12,270 4,647 461 4,242Outside Metro 14,333 7,596 11,878 7,904 3,072 44,785Total 21,092 17,702 24,148 12,551 3,533 79,027

Statewide, the report predicted that about 27 percent of commercial buildings would survive without damage, and 22 percent would suffer slight damage. The remaining buildings which would suffer moderate damage (31 percent) or exten-sive damage (16 percent)or will be completely destroyed(4 percent)will not be un-usable for commercial purposes. More importantly, the Oregon and Washington coastline will most likely be swamped with a tsunami.

It predicted that the most dangerous impact at the 9.0 scale will be felt all along the Oregon coast and be particularly devastating to the coastal communities of Crescent City, California; Cannon Beach and Warrenton in Oregon; as well as the Moclips/Westport area in Washington. It will include a tsunami and the follow-ing impacts along the I-5 corridor.

This major FEMA study also included significant details regarding the infra-structure impact of such a large earthquake:

Electric power: Extensive electric power outages would be experienced through-out the region. Outages could last several weeks along coastal areas but most cus-tomers in other areas are expected to have power restored within 1 to 8 days.

Natural Gas: Damage to both the transmission and distribution pipeline net-works in the affected region could cause the majority of customers in western Washington and western Oregon to lose natural gas service. Many homes may lose all sources of heating due to the combined effects of natural gas and electric power outages.

Telecommunications: Major undersea transpacific cables are likely to be sev-ered; disrupting communication service to East Asia as well as between Alas-ka and the contiguous United States, with a two- to three-month expected res-toration time.

Transportation Fuels: A significant number of pump stations along the Olym-pic and Oregon Line refined-product pipeline system, as well as a substantial num-ber of refined product terminals in the region, are expected to sustain considerable damage; the inability to store and distribute fuels locally is likely to have a major impact on regional fuel supplies.

Road Transportation: Significant damage to roads can be expected, particu-larly those along the coast and connecting the coast to the I-5 corridor. U.S. 101 is expected to suffer substantial damage due to both ground shaking and tsunami, resulting in a limited capacity to carry traffic for several months. Nearby coastal areas may be isolated for a short period.

Water Transportation: Tsunami damage at the mouth of the Columbia River is likely to impact navigation and the ability to export agricultural commodities.

Rail Transportation: Long-term rail traffic disruptions along the I -5 corridor and a complete loss of key rail bridges in the Olympia and Seattle area and down-town Portland are expected.

Banking and Finance: Loss of major transpacific undersea cable capaci-ty would affect transoceanic commerce, settlement, and transpacific financial market exchanges.

Emergency Services: Widespread damage to police stations, fire stations, and hospitals along the coast is expected.

Health Care: The potential of 15,000 to 30,000 casualties and the expected loss due to damage of 15-27 hospitals comprising 524-1708 regular beds and 60-228 critical bed facilities concentrated near the coast would be sufficient to saturate the excess capacity of other hospitals within a 250- mile range of the worst damage.

Water and Wastewater: Disruptions to potable water supply are expected with restoration times of three weeks to seven months with the greatest damage and restoration times occurring near the coastline.

It is clear that the impact for a 9.0 earthquake will affect many businesses. Many small companies, because they lack the financial resources to survive, will be put out of business. This will have a direct impact on residential and commercial investments since businesses leasing commercial space might fail due to a lack of power, fuel, and communications. If some commercial tenants fail due to the earthquake, then many people will be left without the income to pay residential rent with.

I believe all properties should be covered by earthquake insurance. In that vein, we have included some tips to consider when shopping for earthquake insurance.

Understanding Earthquake InsuranceThere are typically three (3) main parts of the basic earthquake coverage, your

property coverage which covers your property up to a certain amount, called the limit; personal property coverage; and loss of rents coverage.

Property coverage needs to be researched, as do deductibles. In Oregon, unlike California, there is no regulated coverage and only a limited pool of providers. Choose a company that is strong,rated by A.M. Best or check with the Oregon insurance commissioner. Note that earthquake insurance may not cover landscap-ing, pools, fences, masonry, and out buildings like storage or garages. If you rent or own a condo, you do not need this coverage as long as you make sure your as-sociation has the coverage.

Loss of rents coverage should be on an ”actual loss guaranteed basis” and extend

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Rents to Flatten in 2016 ...continued from page 10

Metropolitan Area Dec. 2015 ZHVI Dec. 2015 ZRI ZRI Forecast for Dec. 2016 Forecasted Difference Between Dec. 2015 ZRI and Dec. 2016 ZRI

United States $183,500 $1,381 $1,396 1.1%New York/Northern New Jersey $381,200 $2,384 $2,400 0.7%

Los Angeles, CA $554,700 $2,491 $2,561 2.8%Chicago, IL $193,000 $1,633 $1,611 -1.4%

Dallas-Fort Worth, TX $177,200 $1,500 $1,532 2.1%Philadelphia, PA $203,100 $1,558 $1,550 -0.5%

Houston, TX $170,100 $1,579 $1,619 2.5%Washington, DC $357,800 $2,107 $2,118 0.5%

Miami-Fort Lauderdale, FL $225,700 $1,822 $1,886 3.5%Atlanta, GA $160,000 $1,274 $1,280 0.5%Boston, MA $382,900 $2,247 $2,309 2.7%

San Francisco, CA $785,800 $3,338 $3,536 5.9%Detroit, MI $121,800 $1,132 $1,128 -0.4%

Riverside, CA $298,200 $1,691 $1,723 1.9%Phoenix, AZ $216,000 $1,249 $1,266 1.4%Seattle, WA $368,700 $1,931 $2,018 4.5%

Minneapolis-St. Paul, MN $214,300 $1,500 $1,511 0.8%San Diego, CA $499,900 $2,316 $2,348 1.4%St. Louis, MO $141,000 $1,123 $1,115 -0.7%

Tampa, FL $160,100 $1,296 $1,302 0.5%Baltimore, MD $242,300 $1,714 $1,702 -0.7%

Denver, CO $320,800 $1,952 $2,031 4.0%Pittsburgh, PA $126,700 $1,090 $1,079 -1.0%Portland, OR $310,200 $1,689 $1,753 3.8%Charlotte, NC $157,800 $1,221 $1,250 2.4%

Sacramento, CA $331,500 $1,599 $1,654 3.4%San Antonio, TX $148,000 $1,301 $1,306 0.4%

Orlando, FL $180,600 $1,343 $1,373 2.2%Cincinnati, OH $141,800 $1,225 $1,243 1.5%Cleveland, OH $124,300 $1,124 $1,117 -0.6%

Kansas City, MO $146,600 $1,199 $1,228 2.4%Las Vegas, NV $199,800 $1,212 $1,191 -1.8%Columbus, OH $150,900 $1,271 $1,289 1.4%

Indianapolis, IN $130,100 $1,181 $1,138 -3.6%San Jose, CA $933,000 $3,431 $3,699 7.8%Austin, TX $242,900 $1,683 $1,741 3.4%

Source Zillow

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Earthquake Insurance ...continued from page 20EPA Cracks Down On

violator may get by underbidding com-petitors that are compliant.

You can read the full EPA me-dia release here: http://yosemite.epa.gov/opa/admpress.nsf/0/0D3D2DBE-30561BAD85257EEB00698FC7

‘Looking for a lead-safe contractor or want to become certifi ed yourself in or-der to do work on your own properties? Call the Leadline for free information at 503/988-4000.

A reminder that although lead poi-soning is especially dangerous for kids, the fear of lead poisoning or liability does not give housing providers the right to deny or discourage families with children away from pre-1978 hous-ing. Familial status is a protected class under federal fair housing law1 and do-ing anything to deny or discourage oth-erwise qualifi ed families is illegal. Visit www.FHCO.org for more information on this topic.

Th is article brought to you by the Fair Housing Council; a civil rights organi-zation. All rights reserved © 2016.

Federally protected classes under the Fair Housing Act include: race, color, national origin, religion, sex, familial status (children), and disability. Or-egon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Addi-tional protected classes have been add-ed in particular geographic areas; visit www.FHCO.org for more information.

for at least 24 months, preferably 36 months(if you can fi nd it). Th e longer the better since aft er a major earthquake you may have trouble fi nding tenants.

Other coverages to consider include building code upgrade coverage or cov-erage for limited debris removal, land restoration, and emergency repairs.

It is also important to know what your earthquake insurance policy does not cover. All insurance policies have exclusions. Have your insurance agent help you understand your policy. In general, earthquake insurance usually does not cover anything that your nor-mal building insurance policy already covers. You defi nitely need to check with your insurance agent to confi rm where fi re and liability insurance leave off and where earthquake insurance kicks in. Common exclusions include:

Fire: Even if an earthquake causes the fi re, your building insurance policy covers fi re damage.

Land: Usually, earthquake insurance does not cover damage to your land, such as sinkholes from erosion or other hidden openings under your land. You may be able to buy limited additional coverage to restore or stabilize land.

Vehicles: Earthquake insurance does not cover damage to your vehicles or your tenants’ vehicles. If you have a fl eet of vehicles that might be damaged you may want to check into additional insurance.

Flood: Even if you live near a lake that fl oods your home aft er an earth-quake, water damage from fl oods, in-cluding those caused by a tsunami, are covered by fl ood insurance, not earth-

quake insurance.When purchasing earthquake insur-

ance, you may need to buy on a second-ary market. Ask your insurance agent to scour the market and make sure that you are getting the best deal you pos-sibly can. Don’t be surprised if the de-ductibles run from 15 – 25%. Consider how much cash you will have on hand to jump start a repair process. Aft er a 9.0 earthquake it may take 6 – 8 months before the city will clear your building for occupancy.

Earthquake insurance premiums vary depending on many factors, in-cluding the age of your building, the rent collected, the location, the kind of soil, the cost to rebuild, and the deduct-ible. Don’t be shocked if it is expensive.

What else can you do to protect your property and manage your risk from a major earthquake?

• Bolt the property to the foundation.• Brace any chimneys.• Strap water heaters to the wall.• Put in automatic gas shut-off valves.• Advise tenants to screw

bookshelves and book cases into the wall.

• Research the location of the property on a local hazard map to assess your risk.

• Follow government issued earthquake proofi ng recommendations.

• Reserve funds for earthquake proofi ng capital projects.

• Tie the roof to the studs

...continued from page 1 during roof replacements.• Tie the roof structure to

the wall structure.Th e main recommendation in all

documents regarding the impending Cascadia earthquake stress preparation and planning. We may not have the power to prevent the earthquake, but we do have the knowledge and technol-ogy to reduce the damages it may in-fl ict. Even if you own one of the 20 per-cent of properties not aff ected, you still will be faced with the infrastructure problems such as a lack of power and telecommunications for days or weeks resulting in tenants unable to pay the rent. All buildings will be aff ected and all building owners need to prepare. Th e fi rst step to mitigating your risk is to buy earthquake insurance.

ResourcesThe Oregon Resilience Plan https://multco.us/em/oregon-resilience-planThe City of Portland Hazard Map: https://www.port-landoregon.gov/pbem/58572#mapsStory: Historic Earthquakes, Teara: The Encyclopedia of New Zealand http://www.teara.govt.nz/en/histor-ic-earthquakes/page-13The Really Big One: An earthquake will destroy a sizeable portion of the coastal Northwest, The New Yorker http://www.newyorker.com/maga-zine/2015/07/20/the-really-big-oneTurbidite Event History—Methods and Implications for Holocene Paleoseismicity of the Cascadia Sub-duction Zone, U.S. Geological Survey http://pubs.usgs.gov/pp/pp1661f/ 13-year Cascadia study com-plete – and earthquake risk looms large, OSU News & Research Communications http://oregonstate.edu/ua/ncs/archives/2012/jul/13-year-cascadia-studycomplete-%E2%80%93-and-earthquake-risk-looms-largeAnalytical Baseline Study for the Cascadia Earth-quake and Tsunami, Department of Homeland Se-curity https://www.bluestonehockley.com/wp-con-tent/uploads/2016/01/FEMA-earthquakestudy.pdf

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Rental Housing Journal On-Site March 2016