Rental Housing Journal Arizona March 2016

Monthly Circulation To More Than 7,000 Apartment Owners, Property Managers, On-Site & Maintenance Personnel

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2. Renter Beware – Study Finds Craigslist Barely Half of Scam Rental Listings

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

Rental Housing Journal Arizona March 2016 - Vol. 8 Issue 3

Circulated to over 10,000 apartment owners,on-site and maintenance personnel monthly

Call 503-221-1260 for more information

Advertise inRental Housing Journal Arizona

continued on page 6

continued on page 5

continued on page 10

4. Property Managers - Work Smarter Not Just Harder

7. “Blacklisting” Residents Could Result in Lawsuits

8. CorporateHousingByOwer.com Reveals the Findings of Annual Survey

9. Ask the Secret Shopper –Curb Appeal

Commercial Real Estate ExpertsModerate Expansion, Easing Prices Expected in 2016

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

and stable leasing demand should help keep commercial real estate activity expanding in 2016, according to the

authors of an annual report published jointly by Situs Real Estate Research Corporation (RERC), Deloitte and the National Association of Realtors®.

According to the report, Expecta-tions & Market Realities in Real Estate

2016—Navigating through the Cross-currents, commercial real estate activi-ty is forecast to gradually grow this year with demand for space holding steady

EPA Cracks Down OnLead Violations

Rents to Flatten in

2016

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

strapped renters.

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

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

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

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

Zillow is forecasting a decrease in the rate of rental appreciation amid a rent-

By Jo Becker, Education/Outreach Spe-cialist, Fair Housing Council of Oregon

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

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

Th ese cases show EPA is cracking down on businesses and renovators who ignore federal requirements that

have been in eff ect for several years now. Th ese requirements apply to many repairs and renovations done to painted surfaces in homes and daycare facilities built prior to 1978. Pre-78 properties are of concern, as they are a

major source of lead exposure that can cause lead poisoning, especially in our nation’s young children.

Th e RRP Rule, which is part of the federal Toxic Substances Control Act,

2

Rental Housing Journal Arizona

Rental Housing Journal Arizona · March 2016

DEAR MAINTENANCE MEN: Renter BewareStudy Finds Craigslist

Catches Barely Half of Scam Rental Listings

BROOKLYN, N.Y., March 1, 2016 /PRNewswire-USNewswire/ -- Apart-ment hunters in big cities know the drill: Th ey spot a listing for a well-priced, attractive place and make an in-quiry, only to be met with demands for an instant credit check or an upfront fee to access the full listing. Savvier home hunters spot these scams immediate-ly, but others fall through the cracks, making popular rental listing sites like Craigslist a highly lucrative spot for fraud.

A new study by researchers at the New York University Tandon School of Engineering fi nds that Craigslist fails to identify more than half of scam rental listings on the site’s pages and that suspicious postings oft en linger for as long as 20 hours before being removed—more than enough time to snare victims, especially in competitive housing markets.

Th e research team was led by Damon McCoy, an assistant professor of com-puter science and engineering, along with Elaine Shi, an assistant professor of computer science at Cornell Univer-sity, and Youngsam Park, a doctoral student at the University of Maryland. McCoy presented the fi ndings of their paper, “Understanding Craigslist Rent-al Scams” at the Proceedings of Finan-cial Cryptography and Data Security Conference in Barbados this month.

Rental scams on Craigslist and simi-lar sites are not new, but this is the fi rst systematic, empirical study of these scams. McCoy and his team analyzed more than 2 million rental listings on Craigslist over a fi ve-month period to gain an end-to-end understanding of how such scams are structured and which strategies may undermine them.

Th e researchers began by developing semi-automated detection techniques that proved highly eff ective at identi-fying potentially fraudulent listings. Th ey isolated suspected scams based on shared characteristics; for example, common email addresses, postings with email addresses previously reported in connection to scams, or listings that ap-peared on other rental sites with diff er-ent pricing or contact information.

Using an automated conversation en-gine, the team engaged some suspicious posters by email, which yielded another set of common features associated with scam communications, namely a set of keywords and personal circumstanc-es—the responders always claimed to be out of the country—as well as com-mon IP addresses and embedded links that prospective renters were asked to click.

McCoy and his collaborators detect-ed and analyzed about 29,000 fraud-ulent listings in 20 major cities, ulti-mately mapping the listings into seven distinct scam categories, most of which involved credit card payments.

One of the most common was a cred-it report scam, in which a fraudulent poster instructs a would-be tenant to click a link and purchase a credit report. Th e scammer gets a referral commis-sion from the credit reporting site even though there is no property for rent.

In another scheme, the “cloned list-ing” scam, rental listings from other sites are duplicated and posted on Craig-slist at a lower price. Scammers make money by requesting a rent deposit via wire transfer from prospective tenants. By responding to these ads and analyz-ing IP addresses and banking wire in-formation, the researchers learned that most of these schemes originate in Ni-geria and are administered by a small group of “scam factories.”

Another pervasive scam involved “re-altor service” companies, in which vic-tims are asked to pay both an upfront fee and a monthly membership fee to access listings of pre-foreclosure rentals or rent-to-own properties. In the ma-jority of cases, the companies leading the scams have no connection to the properties listed.

Th e researchers compared their tally of fraudulent postings with the num-ber of ads fl agged as “suspicious” by Craigslist, fi nding that the site caught only 47 percent of those determined to be fake. Additionally, they learned that for some of the most common scams—particularly the “cloned listing” scam, 40 percent of those ads remained active and unfl agged for 20 hours before be-ing detected by Craigslist. On average, Craigslist fl agged fraudulent ads 10 hours aft er posting.

Th e team emphasizes that the tech-niques they developed to identify and understand the structure of these schemes can be used to improve the safety of rental site ads.

“Th is is the fi rst study to really un-pack these rental scams and uncover their vulnerabilities,” said McCoy. He explained that most schemes that uti-lize credit cards are based in the United States and should be vulnerable to dis-ciplinary or regulatory action. He also highlighted that the common charac-teristics of scam ads should make them easier to detect. “We’ve shown that rental scams are oft en built on the same foundation—there are common tem-plates, emails, IP addresses and other red fl ags that can be used to develop more sensitive detection techniques in the future,” he said.

Th e cities included in the study are: Austin, Boston, Charlotte, Chicago, Columbus, Dallas, Detroit, El Paso, Houston, Indianapolis, Jacksonville, Los Angeles, Memphis, New York, Phil-adelphia, Phoenix, San Antonio, San Diego, San Francisco, and Seattle.

SOURCE NYU Tandon School of Engineering

3



DEAR MAINTENANCE MEN: By Jerry L’Ecuyer & Frank Alvarez

Water Heaters, Paint Prepping and Swimming Pools

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

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

Fred

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

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

Equally important is checking the “Anode Rod”. Th e anode rod is a long sacrifi cial zinc or magnesium rod that protects the metal tank from corrosion.

Th is rod should be checked yearly and replaced every 3 to 5 years. Th e rod can be found at the top of the tank and is held in place by a hex bolt head. To check the rod, turn off the water supply and let the water cool. With a wrench, turn the hex bolt at the top of the tank and lift the rod out. If the rod is smooth and white in color, it is fi ne and can be reinserted ready to be inspected again

in a years’ time. If the rod is corrod-ed, brown, or looks like a rusted nail or missing all together; it is time to re-place it. (Actually, it is well past time to replace it.) A new anode rod can be found at any plumbing supply house. If you have a low ceiling above the water tank, ask for a fl exible rod to ease the installation. Smear Tefl on pipe thread sealant on the threads of the new rod

before you install it. Don’t use tape, since it can reduce the eff ectiveness of the rod. Keep in mind that replacing the anode rod on a regular basis (every 3 to 5 years) could easily double the life of your water heater.

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

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

Marty,

Dear Marty:One item on your paint prep work

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

Th e best way to remove the mildew safely is to use a power washer with a soapy solution that contains a mil-dewcide. Once the building is cleaned properly with the power washer, regu-

continued on page 6

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Each of us accomplishes our work one day at a time. We work hard, yet it’s easy to forget that we have

untapped intelligence and ingenuity to achieve a better life for ourselves and our dependents. When asked the secrets of personal and professional success, most of the world’s wisest people focus on the differences between working harder and working smarter. Working smarter comes first.

That’s why I’m proposing that you start a “Working Smarter, Not Just Harder” folder on your desktop, lap-top, or tablet. Fill it with links or con-tent from the articles and ideas that kick start your inner genius. This folder should contain articles that ignite your determination and imagination, too. Here’s a link to an article which was written to galvanize your self-improve-ment strategy. If you didn’t read that article when it was first published, no problem! Read it right now from top to bottom. Seize the moment, carpe diem and glean all you can from it!

Need an article about how to be more successful with the management of your most priceless commodity–time? Take a look at this article with an eye for improving time management skills.

As you accumulate your folder full of information about working smarter, make sure you organize it to meet your needs. Place them in some kind of or-der that matches your personal goals or desires.

Now it’s time to make a date with yourself as often as possible to review your Working Harder folder. Once a week should be a minimum, and twice a week is optimum. My suggestion is you complete your work week with a personal review. Take a few notes about the areas of your life that you enthusi-

Property Managers – Work Smarter Not Just Harder

By Marc Courtenay

“It’s not enough to be busy. So are the ants. The question is what are we busy about?” –Henry David Thoreau

astically want to make progress. Then rest your weary mind for a day. Okay, maybe you should rest your mind for a couple of days. Have some fun, com-mune with nature, do something that is extra-relaxing and don’t think about work at all.

Then, when you begin your work week, make it a habit to consult your folder. Spend 15-20 minutes scanning the powerful articles you’ve collected for the purpose of choosing your focus for the week. The point is to look for de-finitive ways you can delegate, organize,

streamline and improve your methods for accomplishing your work. Don’t be hard on yourself, feel encouraged, and be proactive.

Now you’re ready for my #1 way to work smarter and not just harder: Al-ways begin each work day by doing the most important tasks first.

Put another way; accomplish your most important work as early in your day as possible. That’s when you have the most energy and mental clarity. You’ll also feel a great sense of relief. This way you’ll find it easier to follow an important rule that I invite you to adopt as your own. Never, ever check your email until you’ve accomplished your most important tasks of the day. Why not? Because email messages are a time-suck that often ends up distract-ing you. Before you know it you’re de-voting your day to other people’s prior-ities instead of your own.

Working smarter and not just harder is the key to personal and professional success, good health, and more oppor-tunities to be “busy about” enjoying your life. Go for it!

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

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

To protect yourself and your invest-ment, it’s important, that you assure the contractors you hire are in fact lead-safe certifi ed and complying with the EPA’s safe work practice requirements. To learn more about what repairs are covered and what these work-safe practices are, visit http://www.epa.gov/sites/production/fi les/documents/reno-vaterightbrochure.pdf.

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

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

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

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

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

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

Federally protected classes under the Fair Housing Act include: race, color, national origin, religion, sex, familial

status (children), and disability. Or-egon law also protects marital status, source of income, sexual orientation, and domestic violence survivors. Addi-tional protected classes have been add-ed in particular geographic areas; visit www.FHCO.org for more information.

EPA Cracks Down on Lead Violations ...continued from page 1

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Commercial Real Estate Experts ...continued from page 1 Dear Maintenance Men ...continued from page 3

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

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

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

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

Continuing on the same slow trajec-tory seen for many years, the U.S. econ-

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

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

SOURCE National Association of Realtors

lar prep work can begin and the prop-erty painted.

Dear Maintenance Men:I have just purchased an apartment

property with a swimming pool. Th e pool is in very poor condition and I am debating fi lling it in and putting in grass over the top. What is the proce-dure for fi lling in a pool?

Rena

Dear Rena:In our opinion a fi lled in apartment

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

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

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

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“Blacklisting” Residents Could Result In Lawsuits

A situation came up that involved a resident who “watched” the on-site maintenance staff. Man-

agement believed the individual was “a little mentally ill and maybe dangerous to the staff.” Additionally, the individ-ual would not let staff members enter his apartment, but said people did enter during the day when he wasn’t there and took personal items.

Management inquired on a way of legally “blacklisting” individuals who exhibit such behavior.

Legal IssuesThe above scenario presents a variety

of legal issues.Both Federal and Arizona laws pro-

hibit discrimination because of a hand-icap of a resident, a person residing with him or her, or any individual associated with that person.

The law defines “handicap” as a phys-ical or mental impairment substantially limiting one or more of the individual’s “major life activities.” This could in-clude emotional disturbances or atten-tion deficit disorder, a record of having such impairment, or being regarded as having such impairment.

Fair Housing ramifications jump out first and foremost.

Singling out an individual who falls within a protected class would be grounds for a charge of discrimination.

Additionally, “blacklisting” someone who fits this description would be dis-crimination based on profiling.

Blacklisting is simply dangerous, and management should avoid it. Think about the consequences of blacklisting someone and finding out there is no justification or basis for it. Unless you like to defend lawsuits and potentially pay thousands of dollars in damages, stay away from participating in this type of activity. The simple answer and solution is to screen all residents, have reasonable and justifiable rental crite-ria, and rent to persons who qualify un-der your guidelines.

The next part of the scenario sug-gests that the resident may be danger-ous. The general rule is that a landlord cannot discriminate against current or prospective renters because of a handi-cap. The Law does not prohibit refusal to rent to an individual with a handi-cap “whose tenancy would constitute a direct threat to the health and safety

of other individuals or whose tenan-cy would result in substantial physical damage to the property of others.”

Proof Needed To Deny ResidencyIn order for management to refuse to

rent to an individual whose handicap poses a threat to others on the property, it must be able to prove the following:

• The handicapped person’s residen-cy poses a direct threat and a sig-nificant risk of harm.

• There is evidence of past overt acts or current conduct of that person. Assumptions and subjective fears or speculations are not sufficient.

• Management cannot overcome the threat posed by making “reason-able accommodation.”

The final part of the scenario raises questions about dealing with the res-ident’s conduct on the premises. The fact that the resident may “watch” the maintenance staff and not let anyone

into his apartment is not something management can easily deal with. The accusation of people allegedly taking items out of the apartment is just as dif-ficult. Unless the renter makes a threat or alteration to the apartment, such as changing the locks, there is not a lot that a landlord can do.

There are some possible actions to consider. The first would be to not re-new the resident’s lease at the end of its term. Keep in mind, however, that the resident could claim discrimination. In this case, management would have to document its file with adequate sup-porting reasons not to renew.

Management could also suggest to the resident that he file a police report on the alleged taking of items from his unit. If other residents complain about the individual, document those in writ-ing. Finally, consider serving him an access notice to inspect his apartment to make sure no unauthorized alter-ation or damages occurred.

As Elvis Presley sang in his hit song, “Suspicious Minds”, “we’re caught in a trap with no way out.” Management should be very sensitive when dealing with these kinds of issues.

Andrew M. Hull, Esq.Hull, Holliday & Holliday, PLCwww.doctorevictor.com602.230.0088

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CorporateHousingByOwner.com Reveals Th e Findings Of Annual Survey

Exodus from Vacation Rentals; Airbnb beats Homeaway; Craigslist beats Facebook and the Value of Corporate Housing Rentals

CHBO reports the 7th annual CHBO Corporate Housing Real Estate survey and fi nds corpo-

rate housing furnished landlords say 2016 is the year of division. Monthly corporate housing rentals, a $2.7 billion industry, is not the same as vacation

rentals and should not inadvertently be lumped into that lodging segment.

To see the diff erence between corpo-rate housing and vacation rentals, just look at the renter’s length of stay. Th e fi nding of this report states that 6 out of 10 respondents say their last tenant

stayed for three months or longer. Fif-teen percent (15%) say their last tenant stayed for one year or longer. At an all-time high in 2015, 78% of respondents say they would only rent their property for 30 days or more.

According to Th e Corporate Housing Providers Association (CHPA), “Corpo-rate housing is fundamentally diff erent from other types of short-term rentals. Th is well-organized industry provides a valuable service to businesses, employ-ees and others in need of temporary housing while having a sizable econom-ic impact on the communities where it operates. It is important that policy-makers and offi cials understand the industry’s importance and are cogni-zant of its particular characteristics and value when creating and implementing short-term rental policies.”

Kimberly Smith, CEO of CHBO says, “there continues to be a strong need for professional corporate housing real estate rentals from independent prop-erty owners and managers. And per-sonally, I believe the clients who need this type of lodging are very diff erent from those who want a shared rental or an extended stay hotel. Th ink about the diff erence between buying a new car from a dealership versus buying a used car from an individual. Th ese are transactions for two types of customers with very diff erent needs. Likewise, a

continued on page 11

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SK THE SECRET SHOPPERCurb Appeal

It’s that time of year when drive by traffi c can slow down, as one gray, rainy day blends into another. Oc-

casional sun breaks do little to brighten up your community, but rather expose areas with built up dirt and left over dead leaves. In some neighborhoods dense with apartment buildings, there is nothing to separate one group of gray or brown buildings from the next; they just blend into the dreariness of the day. Several smaller apartment communities on a block could actually be mistaken for one larger community to people who are driving by. Th e question is:

QWhat can I do to make my commu-

nity stand out from all the others in the area?

ATh e fi rst thing to take a close look at

is the signage you are using. Th is may seem very basic, but are the signs you are using clearly visible? Can they be seen from a distance, in ALL direc-tions, and are your signs CLEAN? Are your signs placed in such a way that it’s clear they are identifying YOUR build-ing, and not the one next door? Is your signage creative and colorful? If adver-tising a promotion, are you using clev-er, eye-catching signs, banners, and/or balloons? Once a visitor drives into

your community will they be able to fi nd the rental offi ce? What about man-agers and assistants who work out of their apartment homes? If this is you, are there well placed directional arrows and appropriate signs so prospective renters can easily fi nd your apartment?

Th e second thing to carefully assess is the cleanliness of your community. Th is time of year is especially chal-

lenging because of the unpredictable weather. One day it’s pouring down rain giving you water and mud issues to contend with, followed by a sunbreak so you have just enough time to clean up the mess before the next downpour! Th is is also the time of year when weeds begin making their appearance in the shrubs and fl owerbeds. Th ey are look-ing for the sun too, even though it’s not exactly gardening season yet! However, with “all hands on deck,” this seem-ingly impossible goal of a clean prop-erty is completely realistic. It can be accomplished if all staff members are willing to take on responsibility for the outward appearance of the communi-ty. For maintenance staff , that would be washing down gutters, downspouts and siding, and power washing to keep sidewalks and other areas from taking on the dreaded “green hue” that is so

unattractive this time of year. For of-fi ce staff and visiting property manag-ers, that would mean picking up litter when you see it, as well as pulling an occasional weed, and keeping fl owers cleaned up.

Speaking of fl owers . . .

Do you have any? If you don’t have colorful plants or fl owers, how are you brightening up your community to en-hance its curb appeal? Is there a fresh-ly painted fence or curbing that diff ers from your neighbors? What about the use of fl ags or balloons to highlight the entrance to your community? If you use balloons, do you keep them prop-erly infl ated? Nothing communicates apathy and a lack of attention to detail like defl ated (dead) balloons!

No matter what you have going for you on the “inside” of your communi-ty, no one will ever fi nd out if you can’t draw them in from the “outside.” If the basics aren’t handled at the curb, your prospective renters won’t make it to the front door.

Clear, clever signage + clean, colorful curb appeal = countless cars carrying customers!

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

ASK THE SECRET SHOPPER

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

9



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Rents to Flatten in 2016 ...continued from page 1

al affordability crisis that has renters in some markets spending almost half of their income on rent. Some of the fast-est growing metros had double-digit annual rental appreciation at the end of 2015.

Zillow expects rental appreciation to slow down most significantly in Nash-ville, Tenn., San Francisco, Portland, Ore. and Denver. Rents in San Fran-cisco saw 12.5 percent appreciation in 2015. Zillow forecasts rent in San Fran-cisco will grow half as fast in 2016 -- 5.9 percent.

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

“Hot markets are still going to be hot in 2016, but rents won’t rise as quickly as they have been,” said Zillow Chief Economist Dr. Svenja Gudell. “The slowdown in rental appreciation will provide some relief for renters who’ve

been seeing their rents rise dramatically every single year for the past few years. However, the situation remains tough on the ground: rents are still rising and renters are struggling to keep up.”

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

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

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

United States $183,500 $1,381 $1,396 1.1%New York/Northern New Jersey $381,200 $2,384 $2,400 0.7%Los Angeles, CA $554,700 $2,491 $2,561 2.8%Chicago, IL $193,000 $1,633 $1,611 -1.4%Dallas-Fort Worth, TX $177,200 $1,500 $1,532 2.1%Philadelphia, PA $203,100 $1,558 $1,550 -0.5%Houston, TX $170,100 $1,579 $1,619 2.5%Washington, DC $357,800 $2,107 $2,118 0.5%Miami-Fort Lauderdale, FL $225,700 $1,822 $1,886 3.5%Atlanta, GA $160,000 $1,274 $1,280 0.5%Boston, MA $382,900 $2,247 $2,309 2.7%San Francisco, CA $785,800 $3,338 $3,536 5.9%Detroit, MI $121,800 $1,132 $1,128 -0.4%Riverside, CA $298,200 $1,691 $1,723 1.9%Phoenix, AZ $216,000 $1,249 $1,266 1.4%Seattle, WA $368,700 $1,931 $2,018 4.5%Minneapolis-St. Paul, MN $214,300 $1,500 $1,511 0.8%San Diego, CA $499,900 $2,316 $2,348 1.4%St. Louis, MO $141,000 $1,123 $1,115 -0.7%Tampa, FL $160,100 $1,296 $1,302 0.5%Baltimore, MD $242,300 $1,714 $1,702 -0.7%Denver, CO $320,800 $1,952 $2,031 4.0%Pittsburgh, PA $126,700 $1,090 $1,079 -1.0%Portland, OR $310,200 $1,689 $1,753 3.8%Charlotte, NC $157,800 $1,221 $1,250 2.4%Sacramento, CA $331,500 $1,599 $1,654 3.4%San Antonio, TX $148,000 $1,301 $1,306 0.4%Orlando, FL $180,600 $1,343 $1,373 2.2%Cincinnati, OH $141,800 $1,225 $1,243 1.5%Cleveland, OH $124,300 $1,124 $1,117 -0.6%Kansas City, MO $146,600 $1,199 $1,228 2.4%Las Vegas, NV $199,800 $1,212 $1,191 -1.8%Columbus, OH $150,900 $1,271 $1,289 1.4%Indianapolis, IN $130,100 $1,181 $1,138 -3.6%San Jose, CA $933,000 $3,431 $3,699 7.8%Austin, TX $242,900 $1,683 $1,741 3.4% Source Zillow

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CorporateHousingByOwner.com Reveals ...continued from page 8

relocating professional who has a high paying, high pressured job and needs to relocate his or her family of fi ve to a new city is looking for corporate hous-ing from a professional.”

Rental Success Starts With Under-standing Data and Trends

2016 is the year of recognition for cor-porate housing real estate as a lucrative investment niche answering the needs of a mobile workforce and others seek-ing quality monthly residential rentals. Th e outlook for the coming year held strong with 21% predicting 2016 will fi nancially be “much better than last year.” Of those investors, 90% say their investment real estate is profi table and 45% are so positive they plan on buying more investment real estate.

Mrs. Smith says, “Corporate housing is coming into its own, gaining recog-nition and also gaining investors who see the revenue potential.” She believes Airbnb brought to the forefront the val-ue to renters, the fun and even the “sex appeal” of what is means to immerse yourself in a community and now rent-ers are discovering the corporate hous-ing industry has been providing quality rentals for decades and takes the guess-ing game out of a community rental.

In this year’s fi ndings, CHBO learned that Airbnb continued to beat Ho-meAway as one of respondents’ “most used” marketing sources and for the fi rst time also beat them as the source for the “most renters.” Surprisingly Craigslist regained some traction, just as Facebook lost ground in all 3 mar-keting categories.

Our biggest surprise this year was that everyone spent less on marketing their corporate housing rental. In fact 63% (up from 55% in 2014) spent less than $500 on marketing their rental, however they were also less satisfi ed with their results. In 2015, respondents saying my property is “always rented” went down to 41% from 48% in 2014.

Whether you’ve owned or managed a corporate housing rental for 10+ years or you’re new to the industry, CHBO reports that success starts with under-standing trends. Just because something has worked in the past doesn’t mean it will work in the future. If you pay at-tention to the trends and avoid getting stuck doing the same thing over and over, you greatly increase your opportu-nities for rental (and fi nancial) success.

Mrs. Smith says corporate housing landlording is nothing new, but obvi-ously an increasingly popular option these days for the savvy real estate in-vestor. “My hope is that this report will continue to help real estate corporate housing landlords become more edu-cated, knowledgeable and profi table as it allows them to deep-dive into emerg-ing rental trends and how such trends will impact them personally.”

What You Should Know About This Report

Th is report is diff erent from oth-er property management reports be-cause it refl ects input from indepen-dent owners and property managers, rather than full-service corporate housing companies.

Our survey was open to anyone who owned or managed a furnished, month-ly residential rental in 2015 – not just to CHBO users. Our goal is to get the best snapshot of the independent corporate housing segment, so you can learn from relevant trends and be more successful.

Other key fi ndings from the sur-vey include

Rental rates rising. 39% of respon-dents — an all-time high — report charging higher or much higher rent-al rates in 2015. Th is number has been rising since 2013. We also saw a 3% de-crease in the number of respondents who say their rental rates were identical to the previous year.

Actual Rental Rates. Compared to our 2014 survey results, actual rental rates were higher in 2015. Th e one exception was for studio units, which showed a slight decrease in month-to-month rental rates. Four bedroom rentals saw the largest increase in rental rates.

Investment Real Estate Trends. Con-sistent with previous years, more re-spondents say, “Yes, I plan on buying more real estate” (45%), than “No, I’m done with real estate” (18%). Unlike previous years, however, the number of respondents who say they’re done with real estate investing rose 5%.

Corporate housing has gone to the ‘burbs. Consistent with previous years’ results, 49% of respondents say their corporate rental properties are locat-ed in urban, business districts. 44% say their properties are located in sub-urban areas.

You’ve Got Pets. We saw a slight in-crease in the number of property own-ers who accept pets compared to 2014. Now, 38% of survey respondents say they accept pets (down from the all-time high of 50% in 2011).

Reasons for Being a Corporate Hous-ing Landlord. Th e majority of respon-dents — 58% — tell us they’re landlords for “investment purposes.” With a 15% response, the second most common reason for being a landlord is renting a “primary residence.”

Renter Types. “Relocation” renters rose to 45% — up 3% over 2014. We also saw all-time highs in renters due to: “home remodels” (30%), “movies/enter-tainment” (15%) and “divorce” (20%). We’ve seen annual increases in renters due to divorce since 2010.

Security Deposits, Travel Insurance and ARDI. 88% of respondents collect a refundable security deposit — most of-ten, $500 to $1000 or one month’s rent. Th e number of respondents who collect

“no kind of deposit” hit an all-time low of 4%. 26% of respondents say they of-fer travel insurance and/or Accidental Rental Damage Insurance (ARDI) to their renters.

Credit Cards. Approximately 57% of respondents say they accept some form of credit card payment from their renters, down slightly from last year. In 2015, MasterCard and Visa tied with PayPal as the most popular credit solutions.

Internet Reservations. Once again, we asked property owners about re-al-time booking reservations (in which a property is leased through a comput-er website without any interaction be-tween the property owner and tenant). Similar to 2014, 44% of respondents say they’ve used one of these programs.

To download a free copy of all seven Corporate Housing Real Estate Reports, please visit www.CorporateHousingby-Owner.com.

About Corporate Housing by Own-er (CHBO)

CHBO is a Team of Corporate Hous-ing Professionals. CHBO works daily to support quality corporate housing rentals and qualifi ed renters fi nd solu-tions. We are focused on Corporate Housing rentals around the world and our on-line portal works to connect properties and renters as quickly as possible. CHBO was founded in 2006 out of a need to connect private home-owners and real estate investors off ering furnished, monthly rentals with cor-porate housing seekers such as travel-ing executives, relocated professionals, traveling nurses, actors, athletes and more. Th e company provides individu-al homeowners and investors resources and guidance to help them strategically manage their corporate housing rental properties as well as exposes their prop-erties to thousands of potential tenants worldwide who are seeking monthly housing options.

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Rental Housing Journal Arizona March 2016

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Transcript of Rental Housing Journal Arizona March 2016