Arizona Rental Rental Housing Journal - February 2015

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February 2015 - Vol. 7 Issue 2Rental Housing Journal Arizona

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

By Denise M. Holliday &Allyssa B. Birnley,Hull, Holliday & Holliday, PLC

Whether you have a doubt on whether or not an ac-tion qualifies as an imme-

diate, or if your situation qualifies as a fair housing issue, etc., Attor-neys Denise M. Holliday & Allyssa B. Birnley of Hull, Holliday & Hol-liday, PLC agree that the best course of action when in doubt is “call your attorney”. Rental Housing Journal asked Attorney Holliday & Birnley:

As an Arizona landlord tenant attorney, if you were to give three pieces of advice to landlords and property managers, what would they be?

Attorney Denise M. Holliday advises:

1. Make sure you keep up-to-date on the laws. Most lawsuits arise out of misunderstandings, not intentional acts.

2. Use a well-respected and stan-dardized lease, forms and property management agree-ment. These have been modified through the years to help keep

2. Instant Tenant Screening Reports & FCRA Accuracy Requirement 3. Afraid to Admit that You Don’t Understand Social Media?4. Dirty Little Secrets of Family Business

5. 5 Basic Fundamentals For Property Managers and Landlords7. Staying Safe While Showing Property9. The Coach – Your Voice Carries The Words of 10,000 Leases!10. Secret Shopper

It appears that real estate invest-ment has headed south for the winter, this according to year-

end data compiled by Local Market Monitor, the national real estate fore-caster, and HomeVestors of America (the "We Buy Ugly Houses"® peo-ple) with Texas, North Carolina and Florida ending 2014 as sure bets for single-family investment property markets.

"The real estate markets that made the top 20 list for investing were cho-sen based on population growth and it's near cousin, job growth - both conditions ideal for investing in sin-

A Dozen States Dominate Top Year-End Real Estate Markets

www.rentalhousingjournal .com

...continued on page 4


By Alan Langston,Executive Director AZREIA

Friends of mine recently became a reluctant landlord. While they have another single fam-

ily rental, a townhome purchased as a place for a family member to rent became a rental on the open market. They decided to rent the unit as a short-term vacation rental. Having started my own real estate invest-ment portfolio over 30 years ago with a vacation rental, they were picking my brain about that type of property.

There have been a lot changes in the vacation rental business over the last few years. The advent of Vacation Rental By Owner (VRBO) and other similar services has made it much easier to market the property. I am a routine user of VRBO, having used the service to rent properties all over the world. I like renting a house with

nice furnishings, in a nice area for much less than a hotel room. I really like dealing directly with the owners when finalizing a transaction to rent their property. I mentioned to my

friends that the best experiences we had with VRBO included when the property had information packets and even small signs displayed around the property that helped us

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Vacation Rentals – Make It Simple for Your Guests

2 RENTAL HOUSING JOURNAL ARIZONA • FEBRUARY 2015

RENTAL HOUSING JOURNAL ARIZONA

Tenant screening reports typi-cally include a consumer cred-it report from one of the three

major credit bureaus, a civil (evic-tion) records search and a criminal records search. More comprehensive tenant screening reports may include employment verifications, rental ref-erences and a recommendation based on the landlord's rental criteria.

Tenant screening companies are specialized "Consumer Reporting Agencies" (CRA's) - as defined (and regulated) by the Fair Credit Reporting Act [15 U.S.C. § 1681e] - commonly referred to as the FCRA.

Section 607(b) of the FCRA requires that...

"Whenever a consumer reporting agency prepares a consumer report it shall follow reasonable procedures to assure maximum possible accu-racy of the information concerning the individual about whom the report relates."

The Consumer Financial Protection Bureau is tasked with enforcement of the FCRA. Much of the focus is on accuracy, of course, since the CFPB recognizes (as Congress did when crafting the FCRA) that the banking system and,

arguably, the economy "...is depen-dent upon fair and accurate credit reporting".

The three major credit bureaus have taken considerable fire from regulators (the Federal Trade Commission and the CFPB) as well as the media (60 Minutes - for exam-ple) - regarding the accuracy of con-sumer credit reports and the han-dling of disputes. Here is an excerpt from a previous article on the sub-ject:

"The anecdotes are compelling. Our hearts go out to those whose credit is negatively impacted as a result of identity theft or a mistake on the part of the creditor (or Furnisher as defined by the Fair Credit Reporting Act). But what is the true scope of the problem - what is the error rate and extent to which these errors negatively impact the cost and availability of consumer credit?

The FTC issued its fifth interim Report to Congress regarding credit report accuracy in December 2012 as required by the FACT Act. The study sampling was 1,001 consum-ers and 2,968 reports (roughly three per consumer). The study found

that 6.6% of reports examined con-tained errors that when corrected resulted in a score increase - but only 2% of those had a score increase of 25 points or more. Only 2.2% of reports examined had credit score increases sufficient to move them to a lower credit risk classification - reduce their borrowing costs."

So it might be argued that 98% of credit scores reflect the appropriate risk classification - which is not good enough, of course, if you are one of the 2%. We can and should try to do better, but the data does put the problem (and the likelihood of fur-ther improvements) in perspective.

A much bigger issue in our view - one that has recently gotten the attention of the CFPB - is the accu-racy of non-credit (notably public records) data. The CFPB recently settled claims with two CRA's - for returning erroneous criminal find-ings (false positives) which nega-tively impacted job seekers. The employers were targeted as well - for failing to follow the pre and post adverse action notification require-ment - which, had they been fol-lowed, may have mitigated the dam-age.

The problem is the lack of reliable personal identifiers in the public record - forcing us to search on name alone in the case of civil (or eviction) records - name and data-of-birth in the case of criminal records. The problem is most acute, obviously, when dealing with common names. False positives have been (and con-tinue to be) a significant problem as a result.

While much has been written regarding the impact of inaccuracy on consumers, very little has been written regarding the impact of false positives on landlords and employ-ers. Yet erroneous public records hits can be quite damaging t - caus-ing them to deny residency or employment to otherwise well quali-fied applicants. Equally important, of course, is the potential for under-reporting - which can have a decid-edly negative impact on the business or a property.

Under-reporting is a bi-product of over-reliance on instant (database) public records searches. Don't get me wrong. Database products are quite useful - in the hands of a skilled investigator - who has the

Instant Tenant Screening Reports & FCRA Accuracy Requirement


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By Marsha Friedman

I talk to a lot of business owners and authors who don’t “get” so-cial media. A year or two ago when I’d speak

with them, most were quick to say they didn’t understand it and didn’t need to.

Today what I hear is: “I know I’m supposed to be doing that, so I have a Facebook account.” Or, “Yeah, I’ve got my teenaged nephew taking care of that.”

Unfortunately, simply posting occasional announcements about upcoming sales or telling people why they should use your service or read your book is not social media marketing and it’s not helping you. In fact, if that’s all you’re doing, it could be hurting you.

What’s worse, you’re not taking advantage of what could become the most powerful tool in your market-ing arsenal. Why?

Social media is the world’s big-gest cocktail party and everyone’s there – including your competitors and your potential customers.

I first heard the cocktail party analogy from marketing guru David Meerman Scott, who used it in his best-seller, The New Rules of Marketing & PR, published in 2007. It immediately clarified for me why social media networks are marketing gold.

Imagine walking into a network-ing party at a hotel. People are roam-ing around, engaging with folks they know and being introduced to those they don’t know. They’re talking about the economy, the weather, the price of milk.

You get into a nice chat with someone and he asks what you do for a living. If it were me, I’d say, “I’ve got a national PR company that specializes in publicity.” The person might say, “Wow, I’ve got a friend interested in that. Let me introduce you!”

The friend may or may not be present at this cocktail party.

But if that same conversation hap-pened on a social network like Facebook, that friend and dozens more would be so close by. They may actually be “listening” to your con-

versation. That’s what makes social media so much more valuable as a marketing tool. You can be exposed to thousands more potential custom-ers than you would through tradi-tional networking channels.

How does that happen? Social media users stay connected by “fol-lowing” one another.

If I’m following you, I can see your conversations. Post something clever and I might share it with my followers, who may also share it with their followers.

Before you know it, you and your brilliance may be exposed to hun-dreds of thousands of strangers. Some of them will become your fol-lowers and, voila! You have a grow-ing audience.

But it won’t happen if you don’t have a plan and don’t apply cocktail party rules of etiquette. What works on social media – and what doesn’t – are the same things that work (and don’t) when you’re networking at that hotel conference room party:

Go in with a plan. If you’re going to a party to network, you

have goals. Maybe you want to find prospective clients or get people interested in your upcoming project. You identify your target demograph-ics and learn which influencers will be at the party, such as the local media, politicians and celebrities. On social media, the world’s biggest cocktail party, making the right moves gets a bit more complicated and involves some strategizing. (My company now offers customized strategy plans that can be easily implemented by casual or newbie social media users.)

Don’t stand in the middle of the room saying the same thing over and over. Repeatedly posting the same thing, like “Come in for our big sale tomorrow” or “We won Business of the Year!” is like going to a party and saying the same thing over and over. People will run from you. Instead, engage in conver-sations on a variety of topics. They can be related to your business or book, but in a tangential way. Someone who sells jewelry, for

Afraid to Admit that You Don’t Understand Social Media?

View Those Sites As A Cocktail Party Where The Rules of Networking Etiquette Apply

continued on page 11

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Correction:On page 7 of the December 2014,

edition of the Arizona Rental Housing Journal, Volume 6, issue 12, the following sentence was pub-lished, “Keep in mind the act or breach of contract must occur on the premises for the immediate eviction notice to be valid.” This statement should be corrected. The Paragraph should read, “Keep in mind that the act or breach of contract must occur on or near the premises for the immediate eviction notice for the notice to be valid. It must be some-thing that jeopardizes the health, safety and welfare of the communi-ty, its residents, vendors and/or employees.”

That having been said, the last two items under “breaches that are not grounds for the notice” need to be moved up to list of “breaches that are grounds for an immediate eviction”. The statement regarding a resident’s guest causing damage or other problems which the renter has knowledge of, and has signed a crime-free lease addendum would be grounds for an immediate termi-nation as well as off-site arrest for criminal activity.

Andrew M. HullHull, Holliday & Holliday, PLC

www.doctorevictor.com602.230.0088

vis i t us atwww.rentalhousingjournal .com



Q & A ...continued from front page

you out of trouble and clarify everyone’s obligations and rights.

3. When in doubt, pick up the phone and call a lawyer. Those few moments can save you thou-sands of dollars.

Attorney Allyssa B. Birnley recommends:

1. Document everything! Keep a good ledger, take pictures, log all conversations with tenants, and put all agreements in writing. A well documented file makes life easier for (and us).

2. Make policies and stick to them. Make sure the staff receives the same training and that there is consistency in enforcing the poli-cies.

3. If you are not sure how to handle a situation, call your attorney before you take action, not after. We are here to help and it is much easier to prevent a potential prob-lem than to have to deal with it later.

Dirty Little Secrets Of Family BusinessPassing Leadership Role To Next Generation Is Tricky If Path Not Carefully Planned

After years of hard work, you’ve built the family busi-ness into a great success and

you take pride in meeting the chal-lenges that each day brings.

At some point, though, the day arrives when it’s time to turn the reins over to the next generation.

That can be an exciting moment or an anxiety-ridden one, depending on what has gone on before to pre-pare for the momentous occasion.

“Laying the path to a successful family-business transition requires a bit of threading the needle,” says Henry Hutcheson, author of the book “Dirty Little Secrets of Family Business”.

“On the one hand you don’t want to paint an overly rosy picture to the next generation. That could create a sense of entitlement and the false perception that running a business is easy and all you need to do is count the money and show up every now and then to check on things.”

At the same time, he says, if you put too much emphasis on the diffi-culties of running a business and the stresses that come with it, your sons and daughters might not clamor to be first in line to take over.

Ideally, it’s best to think ahead and start grooming the next genera-

tion long in advance, Hutcheson says. Give them summer jobs while they are in high school and college so they can start testing their abili-ties.

When they join the family busi-ness full time, find initiatives for them to work on that involve group dynamics. But also hand them indi-vidual projects where they hold sole responsibility for the results.

“It’s critical when you are select-ing the next leader to realize that it’s not all about who will lead,” Hutcheson says. “It is also about ensuring that those who are not selected are in support of the deci-sion and can work as a team with the new leader.”

Hutcheson says there are four key ingredients to developing the right person to take over the family busi-ness.

• Independence. Next genera-tion leaders must have confidence in themselves, their thoughts and their beliefs. “Much of this can be devel-oped while working in the family business by constructing and lead-ing significant projects,” Hutcheson says. But one shortcut to accomplish this is to work for some other com-pany early on. Many multi-genera-tion family businesses like to make

that a requirement for family mem-bers.

• Competence. This is more than just being able to do the work. It means developing bottom-up expe-rience. Not just being the accountant, but being able to reconcile the accounts and perform the journal entries. Not just being sales and mar-keting manager, but having been on a quota and worked the trade shows. Experience doing some of the day-to-day grunt work can pay divi-dends down the line.

• People skills. “It’s not enough to just be smart and confident,” Hutcheson says. “You need to be able to work with people.” He notes that in the book “Emotional Intelligence,” Daniel Coleman out-lines two studies that measured the success of a batch of high school valedictorians and Harvard gradu-ates. Those who were able to per-ceive the emotional state of others and react to it appropriately proved to be the most successful.

• No special privileges. The per-son in line to take over the family business needs to be willing to show up to work on time, stay late, take on special projects and be measured by the same metrics as everyone else. “This will show that you are part of

the team and that you want to be judged on the merits of your work, not your bloodline,” Hutcheson says. It will also help the next gen-eration gain the respect of co-work-ers.

Henry Hutcheson is president of Family Business USA and specializes

in helping family and privately held businesses successfully manage transi-tion, maintain harmony, and improve operations. His newest book is “Dirty

Little Secrets of Family Business: How to Successfully Navigate Family

Business Conflict and Transition” (http://dirtylittlesecretsoffamilybusi-

ness.com). He’s also quoted in “Kids, Wealth, and Consequences” and “Sink

or Swim: How Lessons from the Titanic Can Save Your Family Business.”

Hutcheson grew up working for his family’s business, Olan Mills Portrait

Studios. He studied psychology and has an MBA from Columbia Business

School, and is a popular speaker at pro-fessional, university and corporate-

sponsored events.




5 Basic Fundamentals For Property Managers and Landlords

By Will JohnsonPublisher

Interacting with the people who make our industry go is one of the most rewarding and interest-

ing aspects of my job as Publisher of Rental Housing Journal. From the top executives at large manage-ment companies and apartment as-sociation leadership, to on-sites and leasing agents, to independent rental owners and industry suppliers, I’ve gleaned a lot of wonderful and sage advice about how to best run a busi-ness in the rental housing industry. Because of my position as publisher at RHJ, I am given the opportunity to pass much of this information along to others.

While there are certainly com-plexities and nuances to being a property manager or landlord that are unique to this industry, the fun-damentals of the business look a lot like any other business. Whether you’re an executive or a newbie, it’s easy to get distracted with the back-ground noise and circumstances of the daily grind, and it’s always important to remind yourself of the fundamentals.

1. Be OrganizedOrganization and the tools to be

organized and manage your time can be very different depending on your position and the size of your company. If you’re an independent landlord, a datebook and a spread-sheet might be enough to keep your business straight and organized. If you’re part of a larger organization, you probably need a more complex system.

Regardless of what tools you’re using, I suggest using the “Hit By A Bus” test to make sure nothing is slipping through the cracks. That is to ask: “If you were hit by a bus tomorrow, could someone with rea-sonable knowledge of your industry come in and run your business with little issue?”

We all may want to seem irre-placeable in our business, and cer-tainly nobody wants anyone to get hit by a bus, but if your business is organized well enough to pass this test, you are prepared to run your business efficiently yourself.

2. Educate YourselfProperty management is an

industry that requires us to continue to educate ourselves. Some certifica-

tions require people to earn continu-ing education credits, but even those of us that aren’t required to take classes need to keep up on current laws, issues and best practices.

Thankfully, there are a lot of great avenues that folks in the industry can use to keep up. In addition to Rental Housing Journal, there are a number of great publications and websites, both local and national, where you can learn on your own time. But, I am a huge advocate of rental housing and apartment asso-ciations and real estate investor groups and their role in educating the industry through classes and education events. Just about every local area has one or more local groups, but there are a number of great national organizations as well, many of which have local chapters. National Apartment Association, IREM, NARPM and ARPOLA are a few worthwhile national groups.

3. Give Great Customer Service

Sometimes, it’s difficult to remem-ber that our tenants and residents are our customers in the same way that we are customers of the stores where we shop and restaurants where we

eat. It can be very easy to forget that their rent payments pay our bills, especially when dealing with the fires and headaches involved in pro-viding homes for people. But, we have to rise above and treat our resi-dents like customers in any other business. In fact, we really need to be going above and beyond – we’re providing the most basic of human needs, after all.

Treat your residents’ concerns with your own genuine concern. Take their needs seriously, and always fulfill them within reason, landlord – tenant laws and industry best practices. Make sure your resi-dents know that you value you them. Never treat your residents less than you would treat your own friends and family. It seems simple, but when residents have their needs ful-filled and feel valued, they are more likely to renew and pay more rent.

It goes without saying for prop-erty managers that your owners are also customers. It can certainly be difficult to balance the needs and desires of both residents and owners, but a skilled, successful manager will find a way. Your career depends on it.

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gle family homes," said Ingo Winzer, president and founder of Local Market Monitor. "In all of the top 20 markets, the populations increased by more than double the national average of one percent."

The top 20 markets for real estate investing are: 1. Austin-Round Rock, TX

2. Houston-Baytown-Sugar Land, TX

3. Raleigh-Cary, NC

4. Nashville-Davidson-Murfreesboro, TN

5. Orlando, FL

6. Boise City-Nampa, ID

7. San Antonio, TX

8. Denver-Aurora, CO

9. Charlotte-Gastonia-Concord, NC

10. North Port-Bradenton-Sarasota, FL

11. Oklahoma City, OK

12. Phoenix-Mesa-Scottsdale, AZ

13. Seattle-Bellevue-Everett, WA

14. Dallas-Plano-Irving, TX

15. Oakland-Fremont-Hayward, CA

16. Fort Worth-Arlington, TX

17. Las Vegas-Paradise, NV

18. Salt Lake City, UT

19. San Jose-Sunnyvale-Santa Clara, CA

20. San Francisco-San Mateo-Redwood City, CA

"Texas has always been a sweet spot for real estate investing. Its economy is strong, and only getting stronger. This is spurring population and job growth, especially among younger workers looking for work in retail, business and tourism. They are looking to rent, not buy a home," noted David Hicks, HomeVestors co-president.

Along with job growth and popu-lation growth, relatively low home prices is a factor making investments in single-family homes as rental properties a low risk opportunity in some markets. The average home prices in the top 10 markets are under $300,000, although the mar-kets listed among the top 20 range from $166,000 to $844,000.

Despite high home prices, a few California markets made the top 20, including Oakland-Fremont-Hayward (15), San Jose-Sunnyvale-Santa Clara (19) and the San Francisco Bay area (20).

"There is definitely opportunity to strike gold in the California market for real estate investing. With some notable exceptions, they're growing again - both in jobs and in popula-tion - as is clear by double-digit home price increases," explained HomeVestors co-president Ken Channel. "But investors in these mar-

kets are likely to see more of their gain come from price appreciation and less from a long-term rental stream, because most of these mar-kets are no longer under-priced."

About the Quarterly Data:The data identifies markets that

will be good rental markets and where home prices are likely to increase at a good rate over the next few years. Criteria include markets where:

• The population has been grow-ing at above-average rates (4% or better) with growth coming from people moving there in search of jobs;

• The current rate of job growth of 2% or better; and

• There is low unemployment, so that new jobs will be filled by people who move there, not by unemployed people who are already there.

Markets are excluded that:

• Have a small population because they don't have stable economies.

HomeVestors of America, Inc.Dallas-based HomeVestors of

America, Inc. is the largest professional house buying franchise in the U.S.,

with over 56,000 houses bought since 1996. HomeVestors recruits, trains and

supports its independently owned and operated franchisees that specialize in building businesses based on buying,

rehabbing, selling and holding residen-tial properties. Most commonly known as the "We Buy Ugly Houses®" com-pany, HomeVestors strives to make a

positive impact in each community. In 2013, for the eighth consecutive year, HomeVestors was among the presti-

gious Franchise Business Review's "Top 50 Franchises," a distinction

awarded to franchisors with the highest level of franchisee satisfaction. For more

information, visit www.HomeVestors.com. In 2014 HomeVestors was recog-nized as the 25th fastest growing fran-

chise by Entrepreneur Magazine and number 126 in the Franchise 500 by

Entrepreneur Magazine.

States Dominate ...continued from front page



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Staying Safe While Showing Property


As people go about their every day lives, it is common to for-get the potential dangers that

surround us. Recent tragedies serve as a reminder to the real estate com-munity that the career can also come with dangerous consequences, and real estate professionals must remain mindful of their safety at all times.

In October of 2014, Beverly Carter, a 49-year-old wife and real estate agent was found murdered in a shal-low, makeshift grave near Little Rock Arkansas. Although Carter took many standard safety measures including leaving her purse in the car to avoid being a victim of theft and informing her husband of her location, she was still a target. Her killer’s cold-blooded response to the murder, “She was just a woman who worked alone -- a rich broker.”

Across the country in Portland, Oregon, a mother working at a local apartment complex was a victim in what still seems to be a random act of violence. The 29-year-old was stabbed after dark and the killer has yet to be caught.

While statistically women work-ing in property management and real estate report far more violent crimes than men, it is never safe to assume that men are always safe.

Heather Blume, a property manage-ment trainer believes the same rule applies to clients while touring homes and apartments. “Women can attack you just as easily as men can. White women just as easily as Hispanic or African American men. Just as we don't make assumptions about whether or not to rent to peo-ple based on fair housing, you must not make assumptions of your safety based on appearance.”

Although realtors and property managers aren’t quite the same, both are responsible for touring their

properties with strangers, which is where the job gets dangerous. It goes without being said that it’s difficult to be fully prepared to face a poten-tially life threatening situation, but there are steps you can take to be better educate yourself on how to exit those situations, or hopefully avoid them all together.

Property Managers who are showing apartments or condomini-ums can sometimes get a little peace of mind knowing there is an office filled with colleagues not too far away. A luxury most real estate

agents showing a home do not get. Having a “code” with colleagues is a good way to ask for help when a dangerous situation is arising. Blume and her colleagues use the “red fold-er tactic.” If a manager ever feels unsafe during a showing they can call the office and ask for the red folder to be brought to the showing, which singles that something doesn’t seem right but there is no immediate threat. If the manager asks for the Yellow folder the threat is higher and someone needs to join the showing or call back frequently to check in.

While some safety precautions are specific to either a Realtor or a Property Manager, like the “red fold-er tactic”, there are quite a few that should be used by both. Katie Poole-Hussa from Smart Property Management in Portland, Oregon, broke down what she thought were five very important safety rules to remember:

• Take photo ID's from all persons looking at a vacant unit. If there is an onsite leasing office, keep pho-to ID's in the office as a method of tracking if need be. If you do not have access to a leasing office for safe-keeping, make sure that you tell someone who, what, and



A monthly circulAtion to more thAn 10,000 ApArtment owners, property mAnAgers, on-site & mAintenAnce personnel. to Advertise with us cAll 503-221-1260.

Arizona

4. Surround Yourself With Great People

You’re only as good as your peo-ple. How many times have we heard this business cliché? For me, in one form or another, it’s thousands. Yet, only because it’s true.

Great leaders wouldn’t be great without talented and dedicated peo-ple behind them. If you’re an owner or manager, make sure you recruit, hire and retain people that are will-ing and capable to take your busi-ness where you want it to go. Make sure that your employees are both willing and able to perform the tasks you give them and make your com-pany perform to the level you want it to. Don’t skimp.

Always work toward goal align-ment within your organization. For instance, if the goal for your compa-ny is to provide quality housing at a premium price, make sure everyone, from owner to manager to leasing agent to maintenance is doing their part and playing their role in order to achieve that goal.

The same can be said for the industry suppliers and vendors you choose to work with. Whether you’re screening candidates, turning an apartment or installing a play-ground, the people you’re contract-ing with are representing you. Make sure they’re aligned with the goals of your business and delivering the ser-vice and image that you desire.

5. Keep Your Mind On Your Money (And Your Money On Your Mind)

I’m dating myself, but Snoop Dogg had it right. When the rubber meets the road, we’re all in this busi-ness for the money. There may be other, more altruistic, motives, but few people would take on the head-aches of property management if it weren’t paying the bills. So, work your business with the bottom line in mind.

This does not mean that you should go cheap on expenses, or get greedy when driving revenue. Your decisions on both should be mea-sured, balancing both short and long-term benefit. For instance, you might save money in the short term by doing a minimal clean and repair apartment turn, rather than a major update of the unit. But, if the other communities in your area are new or investing in major updates, that might not be the smart play. Conversely, if your building is already performing well, reasonably updated and the competition isn’t pushing the envelope, it might be worth rethinking the complete remodeling of your clubhouse. Whatever you do, just make sure you’re putting thought into the short and long term effects of your deci-sions on your bottom line.

Will JohnsonRental Housing Journal

[email protected]

5 Basic Fundamentals ...continued from page 5

time, tools and skills necessary to avoid underreporting and false posi-tives. It is a sole reliance upon data-base solutions that is problematic - due to a lack of consistency and availability of court records and the aforementioned lack of personal identifiers. Exclusive reliance on database products - without the attention of a skilled investigator - inevitably results in under (or over) reporting. Over reporting suggests the CRA is either clueless or willful in their non-compliance. Under-reporting suggests an acute aware-ness of the risk by the CRA - who then over-filters the data - resulting in missed records.

Bottom LineAll it takes is a few minutes and a

pair of eyeballs to deliver an accu-rate public records search - someone with the knowledge and tools neces-sary to run additional searches (based on alias' and address history - disclosed and undisclosed). We know from our own experience that these additional searches account for fully one third of valid hits in our tenant and employee screening reports.

Tenant and employee screening companies are required by the FCRA "...to follow reasonable procedures to assure maximum possible accuracy of the information concerning the individual about whom the report relates." Those who do not are now

paying the price as a result of legal or regulatory action or evolving reseller policy - a price previously borne by consumers and increasingly paid by landlords and employers.

Talk with your tenant and employ-ment screening company. Ask what exactly is included in the report about the source and methodology associated with their public records work. Do they put a pair of eyeballs on their reports and do those eye-balls conduct additional searches based on alias and address history - some of which is undisclosed? Ask what tools they use and what steps they take to confirm a match - avoid false positives. Ask about turn-around time, but beware of those promising instant public records searches. Quality public records results can, however, be returned quickly - often within an hour or so - quick enough, certainly, given the quality difference.

Paul Prudente is vice president and general manager of Moco, Incorporated, a specialized consumer reporting agen-cy focused on delivery of quality tenant and pre-employment screening services for the rental housing industry. He has been at the helm of Moco for nearly 12

years. He is principal architect of its pioneering direct-to-consumer tenant

screening facility – marketed under the MyScreeningReport.com® brand –

developed in collaboration with the low

[email protected]

Instant Tenant Screening ... continued on page 2

www.rentalhousingjournal .com



From the moment you spoke your first word as a small child, your voice and the words you

select are often taken for granted—a gift you use throughout your life. As leasing professionals, you know the importance of using the telephone, because this is how a majority of your future residents contact your apartment communities. In this ar-ticle, we are going to ask you to cap-ture your voice and listen closely to how you are handling each call—a powerful exercise for becoming a leasing SuperStar.

Capturing your voice and words: Let’s start by agreeing that capturing your voice and hearing the words you are using to lease apartments is an important first step. As a leasing

professional, how much would your leasing skills and closing ratios improve if you listened to 50 or even 100 of the most recent calls you received from future residents? Capturing your voice and listening to the words you are using to paint verbal pictures about your apart-ment community will have a posi-tive impact on your leasing perfor-mance and your career in the multi-housing industry. As a resident man-ager or property supervisor, imagine the powerful coaching you could do with/for your leasing teams, if you could hear the five best presenta-tions this week, given to future resi-dents?

Tip From The Coach: Using the simplest of tools, place a digital

recorder next to your telephone and start the record every time a future resident calls your apartment com-munity. This will give you the opportunity to hear your voice and listen to the words you are using to lease your apartment lifestyle. For a more powerful system, select a ven-dor who can help you automatically capture, save, and index every future resident telephone call. An impor-tant note for resident managers and property supervisors: you must receive written permission from your leasing teams to capture their voices and we recommend a system be used just for in-bound calls from future residents, as these are the calls that increase your occupancy and define property management suc-

cess. Learning from your voice-mirror:

Once you have selected a system for capturing your leasing voice, it’s now time to learn from your power-ful voice-mirror. Begin by play the recording of your calls from today and ask yourself these important questions as you listen to your voice-mirror: Can I hear the smile in my voice? Was my voice too soft or too loud? Was the speed of my voice too fast or too slow? Am I proud of the way I handled the questions asked by this future resident? If I could re-do this call with the same future resident, what single improvement would I make? Now, continue this process of capturing your calls and listening to your voice-mirror for the

Your Voice Carries the Words of 10,000 Leases!©

By Ernest F. Oriente, The Coach {Article #225…since 1995}

Staying Safe ...continued from page 7

where you will be when.

• Create a policy that no showings will be done after dark. In the Summer, maybe that time is 8pm. In the Winter, no showing will be done after 5pm.

• Use a "buddy" system. If you have someone else available to go along on the showing, then you can use power in numbers.

• When you arrive to the property, open the front door and allow the people or person to walk-thru the property on their own. Maybe you mention some points of inter-est for them to check out when they're inside, but other than that you will be waiting on the porch if they have any questions.

• Know your surroundings. Make sure that the exterior illumination is up to par and keep trees and shrubs well trimmed. Be aware of any potential hiding spots. Most importantly, use your intuition. If something doesn't seem right then it's probably not.

Jenny Johnson, a realtor also in Portland, Oregon, agrees that using a buddy system is a key factor in keep-

ing herself out of harms way, “I always have a mortgage broker or another agent do open houses with me. If there's a case I find myself alone, I always have cell phone in hand and stay close to the front door. It's important to verify all clients. Make sure they are legitimate by talking to their lender.”

Supplying pepper spray is an inexpensive way to ensure you and your employees can defend your-selves if an altercation were to occur. Doorstops to prop open front doors should be brought to every showing. It is also beneficial to know key sell-ing points of the property to point out to clients so they can guide them-selves through the showing allowing you to stay by the front door. This makes it easier to escape if there is ever a harmful situation.

Tracey Hawkins, a former real estate agent now teaches self-defense classes. Hawkins believes that while obtaining a real estate license and learning how to write contracts and ethic rules it should be a requirement to learn self-defense. The National Association of Relators President, Chris Polychron, believes it may take a bit of convincing to make 50 state’s licensing boards change their regula-

tions to include mandatory safety and self defense classes, but believes it will be worth it, even to just save one life.

By Devan GilbertStaff Writer

Rental Housing Journal




In strong rental markets, many leasing employees are faced with the wonderful challenge of be-

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

presses this dilemma and the leasing consultant’s frustration:

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

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

A: This is a challenge, and yet a unique and incredible opportunity for you to highlight and sell many other aspects of your community that you might not normally focus on during an apartment tour. EVERY caller should be extended an invita-tion to visit your community, wheth-er you have an apartment to show or

not. While a website is just one of many “sales tools” at your disposal, it is not the only tool you have. What about your property and the many community benefits you have to offer? Even if you work at a smaller community, you still have numerous benefits to sell. Perhaps it’s the loca-tion of your building and the many area conveniences, which no one will truly appreciate unless they make a visit and drive through the neighbor-hood. Maybe you have an outstand-ing maintenance staff that is highly

10,000 Leases - The Coach ...continued from page 9

Secret ShopperAsk TheNorthwestNorthwest

next four weeks. Then, call us in 30 days at 435-615-8486 and tells us how your leasing skills and closing ratios improved. We want to hear your success stories!

Tip From The Coach: As a resi-dent manager or property supervi-sor, imagine how powerful it would be to have a recording collection of the best-of-the-best in telephone pre-sentations to share with a newly hired leasing professional. These powerful telephone presentations could also be shared during weekly leasing meetings so your entire team could continue to polish their skills and refine the verbal pictures they are using to invite future residents to your apartment communities. In addition, try comparing these tele-phone calls to the shopping reports

used by your company—and watch to see how the scores of your leasing teams improve.

Linking your voice with your leasing success: As an added bonus, companies like Who’s Calling® or Lead Tracking Solutions® will help you and your leasing teams auto-matically capture every in-bound telephone call from future residents and will provide you with a special index number that is spoken out by the system at the end of each call. As a leasing professional, this becomes a wonderful audio guest card which you can go back and replay right after you finish speaking with each future resident. By replaying this message right after each call, you can add any additional notes you might have missed during the original tele-

phone call. In addition, if you place this special index number on your guest card or traffic log, you can replay this saved call minutes before your appointment with each future resident! Wow! Can you imagine the response you are going to receive from future residents when you can remember the exact details of your telephone conversation from a week ago? More importantly, how will this personalized approach increase your leasing success?

Tip From The Coach: As a resi-dent manager or property supervi-sor, this special index number can serve a dual purpose. For example, your leasing professional, Mary, speaks by telephone to Rick Brown on Monday and schedules an appointment for a Friday morning leasing tour. Mary calls in sick on Friday so you can now ask Bill to cover for Mary and have him use this special index number to hear Mary’s original telephone call with Rick Brown. What a concept! Bill is right in step with Rick Brown, a future resident, and Bill has a better opportunity to lease a new apart-ment to Rick because he has the information he needs to close this sale.

Want to hear more about this important topic or ask some addi-tional questions about how to cap-ture your voice-mirror or how to link your voice with your leasing suc-cess? Send an E-mail to [email protected] and The Coach will E-mail you a free PowerHour invita-tion.

Author’s note: Ernest F. Oriente, a business coach/trainer since 1995

[33,300 hours], serving property man-agement industry professional since

1988--the author of SmartMatch Alliances™, the founder of

PowerHour® [ www.powerhour.com ], the founder of PowerHour SEO [ www.

powerhourseo.com ], the live weekly PowerHour Leadership Academy [

www.powerhourleadershipacademy.com/pm ] and Power Insurance & Risk Management Group [ www.pirmg.com ], has a passion for coaching his clients

on executive leadership, hiring and motivating property management

SuperStars, traditional and Internet SEO/SEM marketing, competitive sales

strategies, and high leverage alliances for property management teams and

their leaders. He provides private and group coaching for property manage-

ment companies around North America, executive recruiting, invest-

ment banking, national utility bill auditing, national real estate and apart-

ment building insurance, SEO/SEM web strategies, national WiFi solutions

[ www.powerhour.com/propertyman-agement/nationalwifi.html ], powerful tools for hiring property management

SuperStars and building dynamic teams, employee policy manuals [ www.

powerhour.com/propertymanagement/employeepolicymanuals.html ] and

social media strategic solutions [ http://www.powerhour.com/propertymanage-

ment/socialmedialeadership.html ]. Ernest worked for Motorola, Primedia

and is certified in the Xerox sales meth-odologies. Recent interviews and arti-

cles have appeared more than 8000+ times in business and trade publications

and in a wide variety of leading maga-zines and newspapers, including Smart

Money, Inc., Business 2.0, The New York Times, Fast Company, The LA Times, Fortune, Business Week, Self

Employed America and The Financial Times. Since 1995, Ernest has written 225+ articles for the property manage-ment industry and created 400+ prop-erty management forms, business and marketing checklists, sales letters and

presentation tools. To subscribe to his free property management newsletter go to: www.powerhour.com. PowerHour®

is based in Olympic-town…Park City, Utah, at 435-615-8486, by E-mail

[email protected] or visit their website: www.powerhour.com


vis i t us atwww.rentalhousingjournal .com



know how to find things, use the property easily and to its fullest.

If you are renting short-term vaca-tion property think about imple-menting a few things to make your vacationer’s stay easier and nicer, as well as to better protect your prop-erty.

1. Provide complete and easy to understand access instructions. If you are using lock boxes or electronic entry be sure to explain how the codes should be protect-ed so they are not compromised.

2. Label the contents in kitchen cabinets and drawers. This makes it easy for your guests to find the items they need. It is amazing how much easier it is for your guest to put things back where they got them from. It also sends a subtle message about how seri-ously you inventory the contents of the unit.

3. Provide convenience items. Extra batteries for anything in the unit that is battery operated like TV re-motes and flashlights. Light bulbs for all fixtures including kitchen, baths, halls, garage, patios, etc.

Label the drawer where they are located and be sure to mention in your welcome packet.

4. Special cleaning products. Okay, so your short-term guest probably won’t clean anything, but many people rent for a month or two and they will. If anyone decides to clean anything from a spill, stain on the carpet, etc. you want them to use cleaners you know won’t damage the flooring, countertops, cabinets, paint, etc. Be sure you label where the supplies are kept and, put instructions on their use and where they are stored in your welcome packet, as well.

5. Staples. Please don’t skimp on paper towels, toilet paper, soap, etc. Even coffee and filters for a couple of days is a good thing. No, I’m not saying to eat into your margin. Just let your guests get through a day or two before having to run out for normal things.

6. Operating instruction for all appliances that may be unusual. Example: Many people have nev-er heard of an evaporative cooler

much less how to operate one. If your unit has both an evap and an A/C, be sure to explain when to use each.

7. Entertainment equipment. If you have anything other than normal TV, be sure to explain how to use the TV, satellite, surround sound, DVD, CD, IPod, etc. All of the remotes can be very confusing and if not explained clearly, your phone is going to ring.

8. Fireplaces. Guests need to know if they can burn real wood or just the fake logs, how to use a gas fireplace and/or gas lighter. Providing the number to call to see if it is a “no burn day” could prevent an unpleasant experience with authorities. Consider putting all this on a small sign close to the fireplace.

9. Label the light switches. I know it sounds silly, but if the switches aren’t intuitive, it is a nice touch.

I intentionally didn’t go into everything you need in a welcome packet, check-in/check-out proce-dures or providing a list of restau-

rants and things of interest in the area or the necessity of your guest being able to reach you quickly. This list is just intended to give you things to think about, so your phone won’t ring as much and your guest will want to return many times in the future.

Smarter investing,Alan Langston

Executive DirectorArizona Real Estate Investors

Association – AZREIAAmerican Rental Property Owners

& Landlords Association - ARPOLA480-990-7092

www.AZREIA.orgwww.ARPOLA.org

AZREIA serves its 1700+ members through chapters in Phoenix, Tucson

and Prescott providing extensive mar-ket information, education, networking

events and support. ARPOLA serves members in all 50 states providing

assistance with ownership and opera-tional aspects of rental property.

Vacation Rental ...continued from front page

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visible that a prospective resident would observe hard at work when visiting your community. What about your friendly residents who are out and about? The ones who smile and cheerfully say “Hello” to everyone they meet. Have you ever considered your existing residents as a “sales tool?” Then, last, but cer-tainly not least, there is YOU!! No website or other form of “inanimate” advertising can take the place of a warm, friendly and VERY enthusias-tic person who is excited about their product and what they are doing.

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

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

If you are interested in leasing training or have a question or con-cern that you would like to see addressed, please reach out to me via e-mail.

ASK THE SECRET SHOPPER

Provided by: Joyce (Kirby) Bica former owner of Shoptalk Service

Evaluations Phone: 425-424-8870

E-mail: [email protected]

Copyright Joyce (Kirby) Bica

instance, might share a great trick for cleaning rings.

Be genuine and show some personality. At a party, you smile, ask people questions about them-selves, maybe tell some jokes, if that’s your personality and the per-sonality you want your brand to reflect. People are drawn to people, not things, so let your humanity shine. But don’t try to be something you’re not. Other users will quickly figure it out and you – and your brand – will lose their trust.

Social media is a great way to build awareness of your brand, cul-tivate prospective customers and establish yourself as an authority. It has tremendous value for anyone with marketing needs, and it’s really not intimidating once you jump in.

Plus, it’s a whole lot more fun

than an old-fashioned networking cocktail party!

Marsha Friedman is a public rela-tions expert with 25 years’ experience

developing publicity strategies for celebrities, corporations and media

newcomers alike. Using the proprietary system she created as founder and CEO

of EMSI Public Relations, (www.emsincorporated.com), an award-win-

ning national agency, she secures thou-sands of top-tier media placements

annually for her clients. The former senior vice president for marketing at

the American Economic Council, Marsha is a sought-after advisor on PR

issues and strategies. She shares her knowledge in her Amazon best-selling

book, Celebritize Yourself , and as a popular speaker at organizations

around the country.

Social Media?...continued from page 3Secret Shopper...continued from page 3

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