Colorado Rental Housing Journal - April 2015

8
Advertise in Rental Housing Journal Colorado Circulated to over 6,000 Apartment owners, On-site, and Maintenance personnel monthly. Call 503-221-1260 for more info. April 2015 - Vol. 7 Issue 4 Rental Housing Journal Colorado DENVER • COLORADO SPRINGS • BOULDER MONTHLY CIRCULATION TO MORE THAN 7,000 APARTMENT OWNERS, PROPERTY MANAGERS, ON-SITE & MAINTENANCE PERSONNEL www.rentalhousingjournal.com • Professional Publishing, Inc 2. Commercial Markets Poised for Growth Despite Weaker Global Economy Student Loan Debt Affects Real Estate Investments in a Big Way 3. Multifamily Apartment Marketing: Are You Missing Out on New Leases? Taking a Pulse Check on Your Attitude 6. Ask Tbe Secret Shopper Behind the Leasing Desk www.rentalhousingjournal.com Professional Publishing, Inc., PO Box 6244 Beaverton, OR 97007 PRSRT STD US Postage P A I D Sound Publishing Inc 98204 V eros Real Estate Solutions (Veros), an award-winning industry leader in enter- prise risk management, collateral valuation services and predictive analytics, reports that the residential market is gaining momentum with a greater percentage of markets ex- pected to increase in value over the next 12 months, moving upwards to 86% from last quarter's 82%. The lat- est VeroFORECAST also found two interesting market areas, one on each coast, that reflect both the predicted top and bottom growth areas in the residential market. The national forecast grew to +3.2% annual appreciation, increas- ing over the previous VeroFORECAST rate of 2.4%. It is the eleventh con- secutive quarter in which the index T he nation's economy is grow- ing at its fastest rate since 2000, which spells great news for residential property investors for the year ahead. The latest data from HomeVestors (the "We Buy Ugly Houses®" people) and Local Mar- ket Monitor, the national real estate forecaster, shows excellent condi- tions from coast to coast, whether the property is for rental or resale. "The Top 10 markets for real es- tate investment all have a common thread: a fast growing economy, which means more jobs and more renters," said Ingo Winzer, president and founder of Local Market Moni- tor. "This also means that rent and property values will be increasing in many markets because housing con- struction has been at very low levels for years and can't possibly catch up with the increased demand." Topping the Best Markets list once again are Texas cities: Houston (1), Austin (2) and Dallas (3), with Den- ver (4) and Orlando (5) rounding out the top 5, all which have seen sub- stantial job and population growth. "Texas continues to be a sure bet when it comes to real estate invest- ing. Lower oil prices may slow some areas, but the diversified economy and pent up demand for real estate will help to mitigate the impact on Colorado Markets Showing Increasing Signs of Strengthening, Says Veros' Latest 12-Month Forecast Update ...continued on page 5 Denver Metro Among Ten Best Markets for Real Estate Investing ...continued on page 8 By John Wilhoit Jr M any people believe that property management is an old-line business that moves slowly. If you believe that then your team is already half a mile behind in a one mile race. In other words; you are toast because the competition is using all the best prac- tices at their disposal to make sure they close every new prospect that steps on their property. If your on-site team is “under- trained” consider revising your pro- cedures to get quality marketing in motion in real-time. In other words, implement best practices with the end goal in mind; closing more (lease) sales. Following are three areas to implement improvements. Leasing and Sales staff training. All of your marketing falls down if once the prospect come to your door there is no one there to greet them and begin the process of becoming a new resident. Your team must know how to implement the leasing sales process and engage accordingly. The process must be seamless. Gaps in training lead to fewer closed leases. Market surveillance (knowing competitive assets). Full time prop- erty management businesses under- stand that market dynamics change at a velocity much faster than the casual observer believes. Utilizing current market information means keeping continually in the loop on pricing and incentives offered by competitors. Knowing, really know- ing, the attributes and pricing of directly competitive assets is para- mount to understanding your place within the market. Absorption (unit counts). Being up-to-date with changes to unit counts in your marketplace (and submarket) is imperative. With new construction, absorption is an abso- lute number but there is more to unit counts. Assure that your team is aware of current and pending chang- es to the competitive marketplace. Gaining a new lease is a process. Preparedness is the initial stanza of the process; prepared leasing staff, sales material, office reception, ready units, grounds. These are all part of your property presentation towards making the sale and gaining a new resident. Published courtesy of Multifamilyinsight.net Multifamily Apartment Marketing: Are You Missing Out On New Leases?

description

RHJ is the business journal for the Colorado multifamily and residential rental housing industry.

Transcript of Colorado Rental Housing Journal - April 2015

Page 1: Colorado Rental Housing Journal - April 2015

Advertise in Rental Housing Journal Colorado Circulated to over 6,000 Apartment owners, On-site, and

Maintenance personnel monthly.

Call 503-221-1260 for more info.

April 2015 - Vol. 7 Issue 4Rental Housing Journal Colorado

DENVER • COLORADO SPRINGS • BOULDER

Monthly CirCulation to More than 7,000 apartMent owners, property Managers, on-site & MaintenanCe personnel

www.rentalhousingjournal.com • Professional Publishing, Inc

2. Commercial Markets Poised for Growth Despite Weaker Global EconomyStudent Loan Debt Affects Real Estate Investments in a Big Way

3. Multifamily Apartment Marketing: Are You Missing Out on New Leases?Taking a Pulse Check on Your Attitude6. Ask Tbe Secret ShopperBehind the Leasing Desk

www.rentalhousingjournal .com

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Veros Real Estate Solutions (Veros), an award-winning industry leader in enter-

prise risk management, collateral valuation services and predictive analytics, reports that the residential market is gaining momentum with a greater percentage of markets ex-pected to increase in value over the next 12 months, moving upwards to 86% from last quarter's 82%. The lat-est VeroFORECAST also found two interesting market areas, one on each coast, that reflect both the predicted top and bottom growth areas in the residential market.

The national forecast grew to +3.2% annual appreciation, increas-ing over the previous VeroFORECAST rate of 2.4%. It is the eleventh con-secutive quarter in which the index

The nation's economy is grow-ing at its fastest rate since 2000, which spells great news

for residential property investors for the year ahead. The latest data from HomeVestors (the "We Buy Ugly Houses®" people) and Local Mar-ket Monitor, the national real estate forecaster, shows excellent condi-tions from coast to coast, whether the property is for rental or resale.

"The Top 10 markets for real es-tate investment all have a common thread: a fast growing economy, which means more jobs and more renters," said Ingo Winzer, president and founder of Local Market Moni-tor. "This also means that rent and property values will be increasing in many markets because housing con-struction has been at very low levels for years and can't possibly catch up with the increased demand."

Topping the Best Markets list once again are Texas cities: Houston (1), Austin (2) and Dallas (3), with Den-ver (4) and Orlando (5) rounding out the top 5, all which have seen sub-stantial job and population growth.

"Texas continues to be a sure bet when it comes to real estate invest-ing. Lower oil prices may slow some areas, but the diversified economy and pent up demand for real estate will help to mitigate the impact on

Colorado Markets Showing Increasing Signs of Strengthening,

Says Veros' Latest 12-Month Forecast Update

...continued on page 5

Denver Metro Among Ten Best Markets for Real Estate Investing

...continued on page 8

By John Wilhoit Jr

Many people believe that property management is an old-line business that

moves slowly. If you believe that then your team is already half a mile behind in a one mile race. In other words; you are toast because the competition is using all the best prac-tices at their disposal to make sure they close every new prospect that steps on their property.

If your on-site team is “under-trained” consider revising your pro-cedures to get quality marketing in motion in real-time. In other words, implement best practices with the end goal in mind; closing more (lease) sales. Following are three areas to implement improvements.

Leasing and Sales staff training.

All of your marketing falls down if once the prospect come to your door there is no one there to greet them and begin the process of becoming a new resident. Your team must know how to implement the leasing sales process and engage accordingly. The process must be seamless. Gaps in training lead to fewer closed leases.

Market surveillance (knowing competitive assets). Full time prop-erty management businesses under-stand that market dynamics change at a velocity much faster than the casual observer believes. Utilizing current market information means keeping continually in the loop on pricing and incentives offered by competitors. Knowing, really know-ing, the attributes and pricing of directly competitive assets is para-mount to understanding your place

within the market.Absorption (unit counts). Being

up-to-date with changes to unit counts in your marketplace (and submarket) is imperative. With new construction, absorption is an abso-lute number but there is more to unit counts. Assure that your team is aware of current and pending chang-es to the competitive marketplace.

Gaining a new lease is a process. Preparedness is the initial stanza of the process; prepared leasing staff, sales material, office reception, ready units, grounds. These are all part of your property presentation towards making the sale and gaining a new resident.

Published courtesy of Multifamilyinsight.net

Multifamily Apartment Marketing: Are You Missing Out On New Leases?

Page 2: Colorado Rental Housing Journal - April 2015

Rental Housing Journal Colorado • April 20152

RENTAL HOUSING JOURNAL COLORADO

2

WASHINGTON, March 16, 2015 /P R N e w s w i r e / -- The gap between rental costs and household income is widening to unsus-

tainable levels in many parts of the country, and the situation could worsen unless new home construc-tion meaningfully rises, according to new research by the National Association of Realtors®.

NAR reviewed data on income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years in metropolitan statistical areas1 across the U.S. The findings reveal that renters are being squeezed in many metro areas throughout the country due to the disproportionate growth in rental costs to incomes. New York, Seattle and San Jose, Calif.are among the cities where combined rent growth is far exceeding wages.

Lawrence Yun, NAR chief econo-mist, says the disparity between rent and income growth has widened to unhealthy levels and is making it

harder for renters to become home-owners. "In the past five years, a typical rent rose 15 percent while the income of renters grew by only 11 percent," he said. "The gap has wors-ened in many areas as rents continue to climb2 and the accelerated pace of hiring has yet to give workers a meaningful bump in pay."

According to Yun, the share of renter households has been increas-ing and homeownership is falling. Those financially able to buy a home in recent years were insulated from rising housing costs since most take out 30-year fixed-rate mortgages with established monthly payments. Furthermore, a typical homeowners' net worth climbs because of upticks in home values and declining mort-gage balances. The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing housing costs every year.

"Meanwhile, current renters seek-ing relief and looking to buy are fac-ing the same dilemma: home prices3 are rising much faster than their incomes," adds Yun. "With rents tak-ing up a larger chunk of household

incomes, it's difficult for first-time buyers – especially in high-cost areas – to save for an adequate downpay-ment."

NAR's research analyzed changes in the share of renters and home-owners, mortgage payments, medi-an home prices, median household income for renters and the rental costs in 70 metro areas.

The top markets where renters have seen the highest increase in rents since 2009 are New York (50.7 percent), Seattle (32.38 percent), San Jose, Calif., (25.6 percent), Denver (24.14 percent) and St. Louis (22.26 percent).

Looking ahead, Yun says a way to relieve housing costs is to increase the supply of new home construction – particularly to entry-level buyers. Builders have been hesitant since the recession to add supply because of rising construction costs, limited access to credit from local lenders and concerns about the re-emergence of younger buyers. Yun estimates housing starts need to rise to 1.5 mil-lion, which is the historical average. Housing starts have averaged about

766,000 per year over the past seven years4.

"Many of the metro areas that have experienced the highest rent increases are popular to millennials because of their employment oppor-tunities," adds Yun. "With a stronger economy and labor market, it's criti-cal to increase housing starts for entry-level buyers or else many will face affordability issues if their incomes aren't compensating for the gains in home prices."

The National Association of Realtors®, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Regional median home prices are from a separate sampling that includes rural areas and portions of some smaller metros that are not included in this report; the regional percentage changes do not necessar-ily parallel changes in the larger metro areas. The only valid compari-sons for median prices are with the same period a year earlier due to

Commercial Markets Poised for Growth Despite Weaker Global Economy

...continued on page 7

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Student Loan Debt Affects Real Estate Investments in a Big Way

Sally did everything right. She was accepted into her first choice college and received a

first rate education to pursue her dream career. She filled out the stu-dent loan applications like everyone told her to; after all, she couldn’t af-ford the $90,000 degree without it. When she graduated, she started out entry level in her chosen field, mak-ing near minimum wage which just covered her rent (with three room-mates) and living expenses. She de-

ferred payment on her student loans for 2 years but after watching the in-terest inflate her debt up to $170,000 she had to move back in with her parents to concentrate on paying it off before it got any worse.

Then her boyfriend proposed to her. He talked about wanting to buy a house and have a family, the whole American dream, but though he knew she lived with her parents in order to pay off her student loans, he didn’t know the extent of her situa-

tion. She knew her debt would make buying a house impossible, so she called her loan provider to see if she could get her interest reduced. They said no, she already had .25 for direct deposit taken. Her interest was 8%. She could barely make the minimum required monthly payment to take care of the interest let alone get down to the principal. Worst of all, when she told her fiancé this, he withdrew his offer; he didn’t want her bad debt

ruining his good credit.According the National

Association of Consumer Bankruptcy Attorneys, seven out of ten college seniors who graduated in 2012 had student loan debt, with an average of $29,400 per borrower. Currently 29 million of 86 million Americans aged 20 – 39 have some level of student debt, which translates into 16.8 mil-lion households. Because federal law

By Clifford A. Hockley, President Bluestone & Hockley Real Estate Services

If your target market includes the rental housing industry in the Denver Metro Area, you will not find a more efficient,

cost effective way to reach your target.

Serving the Denver Metro Multifamily Housing Industry

More than 7,000 Distributed Monthly

Please call & consult your Account Executive for

more Details 503-221-1260

Publisher Will Johnson • [email protected]

Designer Steve Olsen • [email protected]

Advertising Sales Will Johnson • [email protected]

Terry Hokenson • [email protected]

www.rentalhousingjournal.com

The statements and representations made in advertising and news articles contained in this publication are those of the advertiser and authors and as such do not necessarily reflect the views or opinions of Professional Publishing, Inc. The inclusion of advertising in this pub-lications does not, in any way, comport an endorsement of or support for the products or services offered. Metro Apart-ment Manager is produced monthly and is published by Professional Publish-ing Inc. PO Box 6244 Beaverton, OR 97007. (503) 221-1260 - (800) 398-6751 © 2015 All rights reserved.

...continued on page 4

Page 3: Colorado Rental Housing Journal - April 2015

Rental Housing Journal Colorado • April 2015 3

RENTAL HOUSING JOURNAL COLORADO

By John Wilhoit Jr

Many people believe that property management is an old-line business that

moves slowly. If you believe that then your team is already half a mile behind in a one mile race. In other words; you are toast because the competition is using all the best prac-tices at their disposal to make sure they close every new prospect that steps on their property.

If your on-site team is “under-trained” consider revising your pro-cedures to get quality marketing in motion in real-time. In other words,

implement best practices with the end goal in mind; closing more (lease) sales. Following are three areas to implement improvements.

Leasing and Sales staff training. All of your marketing falls down if once the prospect come to your door there is no one there to greet them and begin the process of becoming a new resident. Your team must know how to implement the leasing sales process and engage accordingly. The process must be seamless. Gaps in training lead to fewer closed leases.

Market surveillance (knowing competitive assets). Full time prop-erty management businesses under-

stand that market dynamics change at a velocity much faster than the casual observer believes. Utilizing current market information means keeping continually in the loop on pricing and incentives offered by competitors. Knowing, really know-ing, the attributes and pricing of directly competitive assets is para-mount to understanding your place within the market.

Absorption (unit counts). Being up-to-date with changes to unit counts in your marketplace (and submarket) is imperative. With new construction, absorption is an abso-lute number but there is more to unit

counts. Assure that your team is aware of current and pending chang-es to the competitive marketplace.

Gaining a new lease is a process. Preparedness is the initial stanza of the process; prepared leasing staff, sales material, office reception, ready units, grounds. These are all part of your property presentation towards making the sale and gaining a new resident.

Published courtesy of Multifamilyinsight.net

Multifamily Apartment Marketing: Are You Missing Out On New Leases?

Hard times that sap your ener-gy and leave you frustrated are an inevitable part of life.

Maybe you lost a job. Maybe your finances took a turn for the worse. Maybe your personal life is in disar-ray or a health problem emerged forcing a lifestyle change.

Such setbacks can leave people feeling afraid, uncertain, angry or unsatisfied, says Darlene Hunter, a renowned speaker and author of “Win-Ability, Navigating through Life’s Challenges with a Winning Attitude,” (www.darlenehunter.com).

Overcoming those emotions, she says, comes down to a person’s mindset and perspective.

“Your attitude is a critical factor that can either hold you back or help you move forward,” Hunter says. “Everyone needs to take the time to do a pulse check on where they are in their thinking. Is it positive or negative?”

A positive attitude comes easily when life is rosy. The real trick is persevering when things go awry so you can continue to strive toward your goals.

“The important thing to remem-ber is that we cannot give up just because things do not work out the way we want,” Hunter says. “We must be persistent and press our way through to the end.”

Hunter offers five tips that can help change your thinking, which in turn will change your behavior and, ultimately, change your results.

• Be a planner. To live your dream, you need to know what you want and have a plan for getting there. “Planning your day, week and month are critical ingredients to living your dream and purpose,” Hunter says. The “how” and “why” elements are important fac-tors in planning, as they guide you in the direction you want to go.

• Be goal oriented. Once you set goals, the next step is to work on completing them. That’s why it’s important to set goals you can accomplish. Each time you can check a goal off your list, you are one step closer to what you ulti-mately want to achieve. “The sense of accomplishment that comes from reaching even the

smallest goals will help you keep moving and striving to get your desired end,” Hunter says.

• Be driven for results. When you are driven, Hunter says, you have a compulsive and urgent desire to accomplish what you are seeking, whether it’s a bonus, a promotion,

additional knowledge in a particu-lar area or some other goal. The important factor is to always know what you are seeking. Results-driven people focus on meeting objectives and delivering on the goals they set.

Taking a Pulse Check on Your AttitudeA Change In Thinking Can Lead To A Change In Behavior And Results, Says Sought-After Speaker

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Page 4: Colorado Rental Housing Journal - April 2015

Rental Housing Journal Colorado • April 20154

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Student Loan Debt ..continued from page 2

treats student debt as non-discharge-able in bankruptcy proceedings, bor-rowers can be burdened with this debt for a lifetime even if circum-stances make it unlikely that the bor-rower will ever be able to repay. Asking nicely won’t make it go away.

How does this affect real estate investors?

In a 2014 blog post, Rick Palcios Jr. and Ali Wolf of John Burns Real Estate Consulting, LLC, estimated that 414,000 real estate transactions would be lost in 2014 due to student debt. At a typical sales price of $200,000 for an entry level home, they calculated that out to $83 billion in lost sales volume or 8% of the total marketplace demand. (8% of 20 -29 year olds usually buy a home each year, which would be equal to 1.35 million transactions a year.)

They calculated that 5.9 million households under the age of 40 pay over $250 a month in student loans as compared to 2.2 million in 2005. As a percentage, that is from 22% in 2005 to 35% in 2014. In that same eleven year timeframe, student debt increased from 241 billion to between $1.1 and $1.2 trillion dollars, which is even greater than current credit card debt.

That basically means that those that sought shelter in the halls of

academia during the economic downturn, often have no way to pay it back. Even with a college educa-tion and a decent job, some of these college graduates live with as much expendable income as those under the poverty line since all their wages go to living expenses and to pay down their student debt.

We know that home builders are selling fewer homes. As investors, we want to know how long this will go on and how this will impact the demand for alternate living arrange-ments.Bear in mind

The percentage of students who cannot pay their student loans have a huge impact on American society and economic growth:

• They can’t afford to buy a car, and their credit may be too bad to finance one.

• They are hesitant to marry, because they don’t want to assume liability for unpaid student loan debt or they don’t want their future spouse and household to be burdened by the debt.

• They are hesitant to have children, because they can’t afford to raise them or put them through school. (The last thing they want is to have their children pay their stu-dent loan debt as well.)

• They are putting off medical care because they don’t have the money to pay the deductibles or even afford insurance premiums.

• They can’t buy a house, not only is their credit bad but they cannot afford the house payments, not to mention the down payment required to close.

Where does this take us?We have already seen a boom in

apartment construction. It is esti-mated that this boom will continue through 2015 as young people con-tinue to move in together to save money. Many of those tenants don’t have a car and want to live in the downtown of a large city where they can walk or bike everywhere they need to go.

At some point, high downtown rents will force those with student loan debt out of the city center, because the rents needed to fund new construction will not be afford-able. The Y generation will then need a car, a small used car with high gas mileage, or find a place with easy access to public transportation.

As they move to potentially lower rent apartments in the suburbs, their peers without student loan debt will be buying homes and home builders will see some increased demand.

Another option for the future

would be to encourage the federal government and Sallie Mae, (one of the major holders of student loan debt,) to refinance loans at lower interest rates and to forgive late pen-alties and interest rate hikes since, as they say, you can’t squeeze water from a stone.

Credit unions are showing some interest in helping the Y generation recapitalize their debt, but they are very cautious, and should be given that many of these student loans are delinquent and their holders have low credit scores.

If the Y generation can refinance this debt, then the opportunity exists that within 5 – 7 years a new cohort of buyers might end up in the hous-ing marketplace. In the meantime the members of this debt-ridden gen-eration are renting apartments and houses together, fueling the apart-ment building boom.

Page 5: Colorado Rental Housing Journal - April 2015

Rental Housing Journal Colorado • April 2015 5

RENTAL HOUSING JOURNAL COLORADO

has shown forecast appreciation, with the pace now indicating an upward trend. This insight comes from the company's most recent VeroFORECAST, a national real estate market forecast for the 12-month period ending March 1, 2016, updated quarterly and cover-ing 967 counties, 333 metro areas, and 13,549 zip codes.

Reminiscent of Dickens' classic story, VeroFORECAST revealed a "Tale of Two Coasts" in the forecast's

top and bottom residential markets. Six out of the "Top 10" appreciating markets are located within a 75-mile radius in the Bay Area of California. Conversely, six of the "Bottom 10" are located within a 100-mile radius in the Northeast coastal area.

"We continue to see the same fac-tors influencing the appreciation or depreciation of residential markets across the country," stated Eric Fox, Veros' vice president of statistical and economic modeling and devel-

oper of VeroFORECAST. "Unemployment rates, housing sup-plies, and population trends remain the primary factors affecting the housing market. Their impact is clearly reflected in the market fore-casts for these coastal areas."

*Markets demonstrated are for resi-dential real estate in metro areas (typi-

cally greater than 100,000 residents) among single-family homes in the medi-

an price tier.

SOURCE Veros Real Estate Solutions

Projected Twenty-Five Strongest Markets*1 Santa Rosa-Petaluma, CA +10.0%2 San Francisco-Oakland-Fremont, CA +9.9%3 Denver-Aurora-Broomfield, CO +9.3%4 San Jose-Sunnyvale-Santa Clara, CA +9.2%5 Austin-Round Rock-San Marcos, TX +8.8%6 Santa Cruz-Watsonville, CA +8.7%7 Vallejo-Fairfield, CA +8.6%8 Salinas, CA +8.5%9 Boulder, CO +8.4%10 Dallas-Fort Worth-Arlington, TX +8.0%11 Port St. Lucie, FL +8.0%12 College Station-Bryan, TX +8.0%13 Portland-Vancouver-Hillsboro, OR-WA +7.6%14 Houston-Sugar Land-Baytown, TX +7.6%15 Fort Collins-Loveland, CO +7.5%16 Coeur d'Alene, ID +7.5%17 Bend, OR +7.4%18 Merced, CA +7.4%19 Greeley, CO +7.3%20 Medford, OR +7.2%21 Reno-Sparks, NV +7.1%22 Modesto, CA +7.0%23 Naples-Marco Island, FL +6.9%24 Stockton, CA +6.9%25 Carson City, NV +6.9%

Projected Twenty-Five Weakest Markets*1 Vineland-Millville-Bridgeton, NJ -3.9%2 Sumter, SC -2.6%3 Salisbury, MD -2.6%4 Atlantic City-Hammonton, NJ -2.4%5 Jacksonville, NC -2.3%6 Gadsden, AL -2.2%7 Scranton—Wilkes-Barre, PA -2.2%8 Warner Robins, GA -1.9%9 New Haven-Milford, CT -1.9%10 Torrington, CT -1.9%11 Elizabethtown, KY -1.9%12 Saginaw-Saginaw Township North, MI -1.8%13 Jackson, TN -1.7%14 Hartford-West Hartford-East Hartford, CT -1.7%15 Pittsfield, MA -1.5%16 Fayetteville, NC -1.4%17 Williamsport, PA -1.4%18 Kingston, NY -1.3%19 Ocean City, NJ -1.3%20 Valdosta, GA -1.2%21 Joplin, MO -1.0%22 Greensboro-High Point, NC -0.9%23 Norwich-New London, CT -0.9%24 Dothan, AL -0.8%25 Santa Fe, NM -0.7%

Signs of Strengthening ..continued from front page

Check us out onlinewww.rentalhousingjournal.com

Page 6: Colorado Rental Housing Journal - April 2015

Rental Housing Journal Colorado • April 20156

RENTAL HOUSING JOURNAL COLORADO

Secret ShopperAsk TheNorthwestNorthwest

The importance of teamwork can not be overstated or emphasized enough. Yet

sometimes boundaries are so clearly drawn regarding the role or “job description” of each staff member, that those who desire to “go the extra mile” are forced to remain at the starting line and watch pros-pects and residents “fall through the cracks.”

I was recently asked the following question which brings up the issue of maintenance and leasing staffs

getting involved with each others’ job duties:

Q: Is it appropriate for mainte-nance staff members to get involved in the leasing process and how far should they go?

A: This is a very important sub-ject, and it brings up another ques-tion: Is it appropriate for leasing/office employees to get involved in some aspects of maintenance and how far should they go?

As property management compa-nies have to make difficult budget decisions. Some budget cuts have involved a reduction in leasing and maintenance personnel. The result is less office coverage and slower response time to resident requests, as one or two team members are trying to do the jobs of three or four people.

Providing some “basic” training to your leasing and maintenance personnel to create an “overlap” in their job responsibilities will take some of the pressure off your team

members and provide better service to prospective residents and existing residents.

If a leasing person is away from the office and a maintenance staff member encounters a prospective

resident, the maintenance person at the very least could extend a warm, friendly greeting. The visitor

could be made comfortable and offered refreshments, if available, and be given a brochure to look at while he or she is waiting. If a guest

...continued on page 8

Dear Heather,I've been in my current

job for about 6 years now and can't seem to move any fur-ther up in my company than the role of a property manag-

er. I think I'm good at my work and my employees seem to like me, but when the opportunity to move up happens, my regional always seems to find someone "better qualified." I don't want to have to leave my current company, but I feel like I've earned a promotion and I'm get-ting a little burned out where I am now.

What should I do? -Looking for a Ladder

Dear Looking for a Ladder, I think that it shows a lot of dedi-

cation to your company that you have stayed with them for 6 years. In the world of property manage-ment, that's a couple of lifetimes for some of us. It can be a very difficult experience for many of us to be passed over for promotions we think we have earned, so I want you to know what you're going through is

incredibly common. My first real question to you is, have you talked directly to your regional manager about this yet? So many times, the real problem is that we don't know what other people are thinking or wanting, and so we can't meet their needs. Everything past this point in my reply is based on speculation and experience, so take it for what it's worth.

As a former hiring manager, one of the things I can tell you is that why you're being passed over could be due to a number of reasons. Perhaps, as you've been with your company for a while, paying you to do a higher end job would be more expensive to the payroll right now, and for many companies, they just cannot afford to pay the internal pro-motion 5 or 6 thousand more a year than they would have to pay an external new hire.

Another reason you may not be getting moved up is that there's no one who can fill your shoes. If you are very good at your job, then it's hard for a regional manager to take the risk of someone new behind your desk who might not be able to do the job as well as you can. In the current market, occupancy is EVERYTHING, and if you've got it, that's not a gamble most regionals will take. The good news is that if this is the reason, then you've got a clock on the obstacle, since the economy is bound to improve AND you can mentor up your current assistant manager so that he or she could step in to your shoes more quickly.

Also, your regional manager might not yet see the skill set in you to move you up in the company. One of the easiest ways to get noticed and move up is to either volunteer for new projects that you have a skill set well suited for or to set public goals and meet them. Both are actions that regional managers respect and respond well to. Step up to the plate and mentor the younger managers in the company, or offer your marketing talents to sister prop-erties that are maybe not having as

good a run in the current market as you are.

If you've found a company that you like, I encourage you to talk with your upper management. After all, there is a reason you're still work-ing for them after 6 years, and from their point of view, they have a lot of time and energy invested in you. Ask your manager for a clear path of what it's going to take for you to move up with the company and then formulate your goals around that path. It's hard not to admire people who are willing to do what it takes to get the job done.

Don't let your burnout get the bet-ter of you and your temper. Open up your communication with your regional manager and find a new way to love your job until you can ascend within the ranks of your com-pany!

Good Luck!Heather

Dear Heather,At our property, we are asked to do

weekly shops of our competing proper-ties. I'm supposed to call them and get how much they are renting all of their apartments for, if they have any specials, what their traffic has been like, and what their current occupancy is. For 2 of my comps, this is really easy and they're really nice to me. 1 of the other ones never answers their phone, but some-times if I fax them our sheet, they will return it. The other 2 flat out refuse to give us any information or they lie to us about their stuff, even though we are willing to give them ours and we're always honest. One weekend, the big-ger one was doing a free 47 Inch TV with a new lease, and we didn't know about it! How can I get those two prop-erties to give me the information I need?

-Frustrated with Fibbing

Dear Frustrated with Fibbing, This is a song that we hear all too

often! Kudos to you on actually doing your weekly market survey/comp shops, since so many leasing consultants don't. Your dedication

Behind the Leasing Desk with Heather Blume

...continued on page 7

Page 7: Colorado Rental Housing Journal - April 2015

Rental Housing Journal Colorado • April 2015 7

RENTAL HOUSING JOURNAL COLORADO

Leasing Desk ..continued from page 6

Poised for Growth ..continued from page 2

seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal chang-es, especially for the timing of family buying patterns.

Median price measurement reflects the types of homes that are selling during the quarter and can be skewed at times by changes in the sales mix. For example, changes in the level of distressed sales, which are heavily discounted, can vary notably in given markets and may affect percentage comparisons. Annual price measures generally smooth out any quarterly swings.

NAR began tracking of metropol-itan area median single-family home

prices in 1979; the metro area condo price series dates back to 1989.

Because there is a concentration of condos in high-cost metro areas, the national median condo price often is higher than the median sin-gle-family price. In a given market area, condos typically cost less than single-family homes. As the report-ing sample expands in the future, additional areas will be included in the condo price report.

1Areas are generally metropolitan sta-tistical areas as defined by the U.S. Office of Management and Budget. NAR adheres to the OMB defini-tions, although in some areas an

exact match is not possible from the available data. A list of counties included in MSA definitions is available at: http://www.census.gov/population/estimates/metro-city/List4.txt.

2According to the U.S. Bureau of Labor Statistics, actual market rents paid by individuals who do not own the home they live in rose by 3.4 percent in January from January 2014 – the 10th consecutive month of growth above 3 percent.

3The median existing-home price for all housing types in January was $199,600, which is 6.2 percent above January 2014.

4According to U.S. Census Bureau

data from 2008-2014.

Information about NAR is available at www.realtor.org. This and other

news releases are posted in the "News, Blogs and Videos" tab on the website. Statistical data in this release, as well

as other tables and surveys, are posted in the "Research and Statistics" tab.

Photo - http://photos.prnewswire.com/prnh/20150210/174672

Logo - http://photos.prnewswire.com/prnh/20150210/174673LOGO

to being armed with the right infor-mation is commendable!

Early in my career, I had a prop-erty that refused to work with me on my comp shops. I was annoyed with them, and indeed, over time I became annoyed with the whole market sur-vey process. No matter what, every week, my surveys were incomplete because I could NOT get information from this one property. Finally, I got so frustrated that I went over there one day on my day off, scones and Starbucks in hand, and asked them why they wouldn't give me any information. When they couldn't give me a real reason (because I knew that bunk about it being "com-

pany policy" was just that - bunk), I asked them if they had any one bed-room apartments open. The leasing consultant hesitantly told me that, yes they did, and I told her I sure wished I had known that because I would have loved to send her a couple I had to turn away the day before, as my property didn't have any open one bedroom apartments. I left her my card, the Starbucks and scones, and wished them a good week. The next week when I called, they gave me the information I was looking for, because I had shown them that I could be an ally, not just an adversary.

My advice to you is this: Build

bridges with these people. Reach out to them on a personal level and a professional level, and even though they swat you away a few times, be persistent. If that doesn't work, I encourage you to use the tools at your disposal by searching Craigslist for open units with their phone num-ber. If nothing more, you'll be able to gain prices and potential specials from their postings. But before you take the sneaky route, try the more honorable method of just building the relationship. I promise you, it will yield rewards even greater than the information you're seeking now.

Best of Luck,

HeatherHeather is the Imagination In

Charge of Behind the Leasing Desk Training & Consulting Services out of

Seattle, WA. An accomplished national speaker, trainer, consultant, career

coach, and author of both books as well as countless industry related articles,

Heather holds her CAS designation, is NAA Advanced Instructor trained, and has been a member of the NAA Faculty

since 2009, serving as a WMFHA, CAM, and NALP instructor since

2009. You can check out more of her musings, podcasts, and class offerings

at www.behindtheleasingdesk.com

Cut Cost, Improve Quality ..continued from page 3

• Have a winning attitude. You must be determined, dedicated and devoted to succeed. “You should never give up on your goals and dreams simply because something goes wrong or you are not getting where you hoped to be fast enough,” Hunter says.

• Be focused. When you are focused, you have a clear perception and understanding of what you want to accomplish and where you need to go to get there. “Think about long-distance runners who will run a 26-mile marathon,” Hunter says. “They find their pace and then they stay with it. They may get weary and tired, but they find their zone and stay focused and concentrate on what is needed to get to the end.”“Plenty of stories can be told

about people who failed in the begin-ning, but made it to the top of their profession because they did not give up after being told they weren’t good enough,” Hunter says.

“The ability to keep trying and

pushing no matter how many fail-ures or obstacles you hit is the power of perseverance and is what ‘Win-Ability’ is all about.”

Darlene Hunter, (www.darlenehu-nter.com), is president of Darlene

Hunter & Associates, LLC, a motiva-tional / inspirational speaker, author,

life and business coach, and award-win-ning radio talk show host. Her new

book, “Win-Ability, Navigating through Life’s Challenges with a

Winning Attitude,” is her fourth on the theme of perseverance. She is the host of “The Darlene Hunter Show”, winner of

the Fishbowl Radio Network 2013 Distance Show Of The Year Award. Hunter has been a top performer in

management for more than 30 years.

Visi t us at www.RentalHousingJournal .com

Page 8: Colorado Rental Housing Journal - April 2015

Rental Housing Journal Colorado • April 20158

RENTAL HOUSING JOURNAL COLORADO

Ten Best Markets ...continued from front page

rental markets," noted David Hicks, HomeVestors co-president. "Places like Austin and Dallas have rapidly growing technology and financial sectors that make the oil slump less significant."

Along with job growth and popu-lation growth, relatively low home prices are factors making invest-ments in single-family homes as rental properties a nearly risk-free opportunity in some markets. All top five markets have a median home price below $300,000.

A couple of California cities broke the Top 10 list, with San Jose and Oakland at number six and eight, respectively. "California has higher home prices, but the state is growing again, both in jobs and population. Because most of these markets are no longer underpriced, investors in

these markets are likely to see more of their gain come from price ap-preciation and less from a long-term rental stream," explained HomeVes-tors co-president Ken Channel.

Seattle (7) and Portland's (10) growing technology sectors and their desirable quality of life make them valuable markets, while Miami's rap-idly growing population and high rents take the list at number 9.

"We believe 2015 bodes well for rental property investors. The econ-omy shows no sign of slowing down and consistently low home prices and population growth make invest-ing conditions ideal," said Channel.

The Best Markets Top 10 markets for real estate investing are:

1. Houston-Baytown-Sugar Land,

TX

2. Austin-Round Rock, TX

3. Dallas-Plano-Irving, TX

4. Denver-Aurora, CO

5. Orlando, FL

6. San Jose-Sunnyvale-Santa Clara, CA

7. Seattle-Bellevue-Everett, WA

8. Oakland-Fremont-Hayward, CA

9. Miami-Miami Beach-Kendall, FL

10. Portland-Vancouver-Beaverton, OR

About the Quarterly Data:The data identifies markets that

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

• The population has been growing 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.

card or visitor log is available, the maintenance person could request that it be filled out. Then, if the wait time becomes excessive and the pro-spective resident has to go, there will be a record of the visit, and a way to follow up.

Office personnel can provide this same type of support to their mainte-nance team, when they are busy turning apartments and handling

service requests. Every person work-ing in the office should know how to operate a plunger and an Allen wrench. Leasing team members must also be willing to pass out flyers, pick up litter, sweep sidewalks, maintain common areas, etc. If you are constantly paging maintenance to pass out your lease renewal letters or handle minor messes around your community, then you are delaying

the make ready process, as well as prompt service to your residents.

REMEMBER: Being part of a team means doing whatever it takes to get the job done; whether it’s your job or not!

If you are interested in leasing training or have a question or concern that you would like

to see addressed, please reach out to me via e-mail. Otherwise, please contact Jancyn for

your employee evaluation needs: www.jancyn.

comASK THE SECRET SHOPPER Provided by: Joyce (Kirby) Bica

Former owner of Shoptalk Service Evaluations

Consultant to Jancyn Evaluation ShopsPhone: 425-424-8870

E-mail: [email protected]

Copyright© Joyce (Kirby) Bica

Secret Shopper ..continued from page 6

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