on-site (seattle) rental hosuing journal june 2014

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3. 7 Fun Tenets of Business that You Can Apply to Life

5. Experts on… The Ultimate Set of Property Management Tools

7. Dear Maintenance Men:

9. Fair Housing = Great Customer Service

10. Shoptalk

11. The Coach, Ernest Oriente

12. Online Property Manager Service Replaces Fax at Tacoma Public Utilities

14. WMFHA - Mid Year Review

18. Insight Into a Successful Apartment Management Company

22. How Financial Spring Cleaning Can Lead to a Richer Long-Term Outlook

23. Pacific Crest’s 1st Annual Beat-the-Bridge to Beat Diabetes Run!

24. Energy Efficient Window Shades and Blinds

25. 4 Ways to Make Your New Home More Eco-Friendly

26. What Americans Want in Apartment Landscaping

One important place to find savings is in your electrical/lighting Budget. Every year

we waste over 57% of the energy we import or generate in the form of leaks and unused heat. Inefficient lighting, especially the incandescent kind, greatly contributes to this while providing poor lighting quality.

Both incandescent and fluorescent bulbs, in a variety of applications, give off more energy in heat than they do in lumens, effectively drain-ing power while trying to do their job. Commercial owners, especially those in the office and retail sectors, spend over 34% of their energy cost on simply powering their lights, and this does not account for the repair and replacement of the fixtures and ballasts. As energy costs continue to rise, even in the Pacific Northwest where we enjoy cheap energy, small increases in the cost per kWh can mean hundreds more on your energy bill. Switching to a more efficient and durable light source, like LED light-ing, will reduce energy consumption, increase the lifetime of your lighting assets, and reduce your environmen-tal impact so your property can run smoother, simpler and brighter.

Longevity: Longevity is the first category to

explore when comparing lighting methods. In a test reported in the 2011 Energy Efficiency Annual Report by

continued on page 16

Four Tips to Plan and Maintain a Waterwise Multifamily Lawn

Well-maintained lawns cre-ate a sense of community pride and add value for

tenants as an oasis for outdoor rec-reation. With water use often dou-bling in the dry summer months due to outdoor watering, lawns also of-fer great potential for landlords and property managers to save time, money and water by making simple and easy improvements.

Grass typically uses two to three times more water than other plants. What’s more, up to 30 percent of the water used on lawns can be lost to evaporation, run off, overspray and overwatering.

With forecasters predicting a par-ticularly hot and dry summer this year—and with national Smart Ir-rigation Month coming up in July—now is a great time to focus on making your property’s lawn more waterwise.

“Thoughtful planning, smart watering and routine maintenance keeps lawns waterwise and attrac-tive, even in 90 degree temperatures,” said Lindsey Berman, Conservation Program Manager for the Regional Water Providers Consortium.

The Regional Water Providers Consortium—a group of 20+ local water providers plus Metro—offers the following four tips for creating and maintaining waterwise lawns for multifamily properties.

1. Analyze residents’ needs. Whether installing a new lawn or redoing a portion of an ex-isting lawn, it’s important to

analyze residents’ needs and expectations. Does the commu-nity need a large recreational area for kids and pets, or is the outdoor space primarily orna-mental? Are existing lawn areas easy to water and maintain? For example, is grass the best choice for narrow borders or parking strips?

2. Select the right grass. If you’re planting a new lawn, se-lect a grass type that best meets desired aesthetic and mainte-nance needs. Cool season grass-es are ideal for the Portland area because they are adapted to our region’s climate. An “ecolawn” is an alternative to conventional lawn grass, combining grasses with selected broadleaf plants such as herbs or flowers to produce an ecologically stable mixture of plants that require

less maintenance than a typical lawn. Download the Consor-tium’s “Planting & Maintaining Your Lawn” brochure (conserve-h2o.org) for more information to help identify which lawn type best meets the property’s needs.

3. Water wisely. The most com-mon landscape problem is over-watering. Overwatering can lead to shallow-rooted lawns, increased leaching of fertilizers and nutrients, and increased potential for disease problems. A well-planned, well-designed and well-timed irrigation sys-tem saves money, saves water and promotes lawn health. Wa-ter before 10 a.m. or after 6 p.m. to minimize evaporation. As a rule of thumb, an established lawn requires about one inch of

continued on page 6

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7 Fun Tenets of Business that You Can Apply to Life

Within the first five years of a small-business venture, about half do not survive,

according to the government’s Small Business Administration. And after 10 years, only a third are still around.

“Successful entrepreneurship hits the bull’s eye of the American dream, but most simply do not make it,” says veteran Texas businessman David M. Smith, author of “The Texas Spirit.”

“You don’t have to have extrava-gant wealth or a degree from Har-vard to make it; a successful business requires essentially the same thing for a successful life – perspective.”

Smith reviews some common de-nominators for success.1. Aim at nothing and you always

hit it. “If you’re like me – perhaps with a touch of ADD and some-one who wants to do too many things than you have time for – this is a helpful aphorism,” Smith says. Not every idea that comes to mind should be pursued; be very selective with your time, and when you go after something, go full-throttle.

2. You cannot win on the defensive in business or any other endeavor. Don’t think in terms of defense; instead, think of counterattack. To take a defensive position on any-thing means that you have con-ceded at least some of your posi-tion.

3. Work toward optimal employ-ment for everyone in your com-pany. “At least once a year, I have a one-on-one discussion with ev-ery person in our companies – a renegotiation to hopefully renew employment for a longer period,” he says. “This adds an important personal touch and attention to detail.” Of course, the same ap-proach will offer an excellent return in your personal relation-ships, too.

4. Keep in mind Union Pacific’s motto: “Safety is my responsibil-ity.” Safety should always rank high in your priorities; it’s easy to take it for granted until a catastro-phe happens. Texmark celebrates

more than 25 years without a production-halting accident – a remarkable record in the industry.

5. Organize projects, planning and profit action with at least three people, but never more than five. You need a point person for the meeting and at least two com-patible partners – more than five people gums up the process. Meet weekly; the point man should set priorities and is most responsible for action.

6. People chemistry is more impor-tant than process chemistry. Just as you must have a process for making chemicals built around operating conditions that are best

for the desired chemical prod-ucts, so too should you have the right chemistry of people working together. The right chemistry is trickier than you think.

7. Promote voluntary participation regarding medical benefits and thrift and savings plans. It’s al-ways best to put individuals in charge of their health and financial destiny – to let people consciously choose their plans. Monolithic systems arbitrarily imposed by institutions are the beginning of stagnated individual responsibil-ity. About David M. Smith David M. Smith is the author of

“The Texas Spirit,” www.TheTex-asSpiritBook.com (2014; Halcyon Press). He’s the founder and owner of Chemical Exchange, Inc. and Tex-mark Chemicals of Galena Park, Texas. An El Paso native, he attended the University of Texas in Austin. Early in his career, he moved east to Houston and established himself in the petrochemical industry. His new book, “The Texas Spirit,” features a series of essays about the ways in which the United States can benefit from Texas’ example, including eco-nomic models and moral fiber.

p

Straight-Talking Texas Entrepreneur Offers Principles that Transcend Industry

www.apartmentadvantage.comGreater Seattle/Tacoma .........................................425-456-3663Greater Portland/Vancouver ................................503-644-8233

The multi-family industry continues to grow in the Northwest, and one of its leaders is Becki Beusch, President and owner of Apartment Advantage Staffing and Seattle Apartment Finders.

“No one wakes up planning a career in the apartment industry,” Beusch jokes with her colleagues. “But I fell into it through a friend, and love working in all areas of the housing market.”

Beusch – whose college training in marketing and branding led to an early career in retail as a personal

shopper for major department stores including Nordstrom -- has been in the property management industry 25 years.

In this interview, we asked her to focus on starting Apartment Advantage Staffing, a temporary staffing agency which began in 2003.

Becki, what made you decide to start Apartment Advantage Staffing?

Apartment Advantage Staffing grew from a need we experienced at my other business, Seattle Apartment Finders, a corporate rental agency. During the recession following September 11, 2001, many apartment communities scaled back their staff, and we found it hard to get an appointment to take our clients to look at apartments.

I met with one of our clients, a property management VP, and asked what she saw as a solution. She said she wished there was a temp agency that trained leasing agents who could be hired to supplement their staffs as needed.

The idea of Apartment Advantage Staffing was born in 2003 in Seattle, and in 2007 we opened our Portland/Vancouver office. We were amazed at our overnight success. We listened to what our clients wanted and needed, and structured our plans based on that.

Quality service is always at the forefront of our mission. It’s one thing to be the largest in the industry, but another to be the best. We like to think we are both.

But there are many employment agencies. What makes Apartment Advantage different?

Because we’re specific to the apartment industry, we consider our Team to be career counselors, promoting the great opportunities of our industry. Our focus is on education, quality training, and career advancement.

We have a program, Career Advantage Academy, we started in 2007. We consider this one of our greatest achievements. Since the recession happened shortly after, it allowed us to train and employ individuals who were unemployed, and helped people support their families during those uncertain years.

Many wonderful property management professionals graduated from this program, and now have a career in the apartment industry, including several who have been recognized by the Ace Awards in Portland and the Emerald Awards in Seattle.

At the Emerald Awards in February, a manager in Seattle noted in her winning acceptance speech that she could not have won without the help of Apartment Advantage at her community. We were absolutely humbled by her recognition of our services as a contributor to her success.

Can you tell us more about the Academy? At this time of year in particular, we are excited to have a fresh new

group of college graduates join us in our Academy. Once our new graduates complete their formal classroom program, they are partnered with one of our Star Trainers -- our senior leasing and maintenance agents -- at the site level for hands-on training.

Here’s an interesting statistic: our average “temp” employee has been with us for three years or longer, and many have been with us seven or eight years.

Becki, tell us how you got into this business.That is the one thing we all laugh about…how we came to be in

apartment industry. Most happened upon this great industry completely by accident.

I worked in retail, and was referred by one of my associates who had a friend in the property management industry. I started out as an outside sales rep for a large supplier. Many of my former on-site clients are now

running the property management companies with whom I work today. Those partnerships have been invaluable to our success.

A nice thing about our industry is that it is recession-proof! There will always be a need for renters, and there will always be a need for people to work in the rental industry.

Did you have a mentor?Yes. It was our Vice-President at Archstone Communities, Mike Bissell.

Mike always said, “Do the right things, and everything else will follow.” By that he meant getting back to the basics of good smart business; always be fair, diligent, and transparent in your business practices.

That’s Property Management 101: take care of your clients, both internal and external. Mike’s background – like mine -- is marketing, so we tended to approach strategies in the same way. He was big on branding and protecting your brand.

It sounds like you learned a lot during your time at Archstone. Yes, they were growing nationwide -- and then globally -- in the 1990’s.

Most of our Apartment Advantage corporate and training staff were associates who came from Archstone Communities.

Archstone had exceptional training, and both our Seattle and Portland trainers came from this program after long careers in property management. We are very proud of our excellent Team and their passion for training and education.

As I look back on my early years in retail, I have to say that working at Nordstrom provided great training in customer service. They really were the leaders in that field, and I was able to learn many valuable skills that remain relevant today.

Can you share some unusual stories from your company?We are often called into emergency and unforeseen situations. Several

years ago, one of our maintenance technicians went out to the community of a new client. He called us to say that everyone at the site was carrying a gun.

He asked, could he go home and get his gun? Needless to say, we pulled him off the assignment immediately!

Another time, we sent out a new agent for a concierge assignment. When we asked her how things went, she said it was great fun.

She said she picked up the manager’s dry-cleaning, bought wine for her dinner party for later that evening, and picked up the manager’s dog from the groomer.

Then, later we found out that the manager had also asked our maintenance tech to pick up her children from day care during a previous assignment.

I had to have a chat with that manager. She laughed, and said maybe she was taking too many liberties with the concierge position!

I understand your company is very active in charitable and professional activities in Seattle and Portland.

Yes, we are very dedicated to giving back to the community through several ambitious charitable organizations. We have raised many tons--literally--of food for the local food banks each year. Both offices participate in the local apartment association service committees and are active in fundraising and volunteer work.

This year I am also the chair for the Washington Multi-Family Housing Association (WMFHA) Service Committee in Seattle. We are looking forward to establishing a set of charities and volunteer opportunities for our state members to participate in, and to expand our reach through service to the community.

I believe we also have a responsibility to support our industry and mentor our new members. I was on the WMFHA Board of Directors for 6 years, and I have been on the Pacific Northwest Relocation Council Board of Directors for 12 years.

How did you feel when Apartment Advantage won the Emerald Award in 2012?

To be recognized by your industry peers is the absolute greatest honor of all. Our Team was so thrilled to have received the WMFHA Emerald Award in Seattle for Industry Partner of the Year in 2012.

Becki Beusch’s Apartment Advantage Staffing provides temporary staffing to the industry

Becki Beusch

®

Visi t us atwww.RentalHousingJournal .com



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Rental Housing Journal posed this question independently to four industry experts: “If

you were to look into the toolbox of a successful property manager, what 3 tools would you expect to see?”

Here’s what they all had to say…

Kate Good:Flexibility - Due to the fact that

there is a lot about the role of a manager you cannot control, flex-ibility will keep you on a success-ful path. I have encountered people who are too rigid to be flexible and they end up being rather miserable to be around. This has lasting effects on the people around you and will show up in their attitude. A manager must demonstrate their ability to do a great job no matter what lands in your lap.

Awareness - All problems can be solved. Sometimes you will need to think through the problem and other times you will go around the problem. Having an awareness that others have encountered what you have, there are resources and exper-tise at your fingertips, will help you be a standout. Step up to help so that you can standout as a superstar.

Expertise – Never stop learning because nothing stays the same. Even the most seasoned people know that they don't know everything. Being an expert means that you are always in a state of growth even for the things you have mastered.

Greg Knakal:The ability to multitask and pri-

oritize. -- There’s always a lot to do and not enough time, so you have to know what to do, what’s important and when things need to get done. Make it happen.

The 4 Ps – People, product, price and promotions.

Understanding the goals of the investor – Know what your owners want and want to get out of their properties and operate the property with those goals in mind.

Katie Poole-Hussa:A Working Advertisement – Po-

tential renters are faced with weed-ing through hundreds of property ads online to find the perfect place to move. Not only should your adver-tisements for vacant units "sell" the

Experts on… The Ultimate Set of

Property Management Tools

continued on page 18

Conserving Energy for a Sustainable Future

Up to 70% for lighting, 20% for

windows and 50% for insulation?Yes, please.

Seattle City Light rebates cover everything from common area lighting to pool and security lighting, including LED options. Take advantage of window and insulation rebates to further reduce your electric bills, increase tenant satisfaction and safety for years to come.

We’ll visit your multifamily property to identify energy inefficiency and water waste —- then help you pay for cost-saving upgrades.

Ready to start saving?

Contact an Energy Advisor at (206) 684-3800 [email protected] or visit seattle.gov/light/multifamily to start saving.



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Lawn..continued from front page

water per week—more during the peak of summer and less during spring and fall. Check out the Weekly Watering Num-ber at www.conserveh2o.org to see how much to water your plants and lawn each week.

4. Maintain. Routine mainte-nance such as mowing, fertil-ization, moss control, weeding, aerating and dethatching will keep lawns healthy. Make every drop count by checking your ir-rigation system regularly; even small leaks can waste hundreds of gallons of water.

Conserving water makes eco-nomic and environmental sense, and helps our region meet our long-term water supply needs. Property man-agers care for much of the region’s

landscape; by creating and main-taining a waterwise lawn, you will create a beautiful landscape for your tenants and help to preserve a valu-able community resource.

About the Regional Water Providers Consortium

The Regional Water Providers Consortium (a group of 20+ local water providers plus the regional government

Metro) is committed to good steward-ship of our region’s water through

conservation, emergency preparedness planning, and water supply coordina-

tion. The Consortium provides resourc-es and information to help individual

and commercial customers save water. www.conserveh2o.org

www.rentalhousingjournal .com



Dear Maintenance Men:I am about to under-take a landscape rehab

project at my building. My problem is that I have a 25-foot King Palm in the way. Can this palm be moved? I’ve also heard that landscape companies will pay for good-sized palms or at least remove the tree for free. Is this true?John

Dear John:Good question. We contacted a

couple of local tree and palm experts in our area. They said King Palms do not travel well and if they are laid down on their sides for transport, they have a low survival rate. For that reason most tree companies will not pay for or remove a King Palms for free. The cost of hiring a crane truck and crew for transplant, most likely will be more than the palm is worth. If it were us, we would try to find a way to include the palm in our new landscape plans or pay for a tree removal service.

Dear Maintenance Men:I have a funny problem with the au-tomatic vehicle gate at an apartment building we manage. It gets stuck open at odd times for no reason. I have sent the handyman to repair the gate, but he found nothing wrong with it. Manual

Dear Manual:Double check all the gate systems

are working properly. Chances are the problem might be a stuck re-mote control unit in one of the resi-dent’s car. What happens is the con-trol button is stuck on and when the resident comes home, the gate opens automatically and chances are they are parking close to the gate. When they leave the property and get out of range of the gate receiver, the gate returns to normal operation. Finding the defective remote control unit will require a bit of detective work. You will want to determine the range of the controller, and then talk to the owners of the cars parked within the range. Another possibility may be that the remote receiver is failing. The gate will open when cars exit by driving over the gate “loops”, but will be unable to re-enter with their remote control units. The receiver is located near the gate motor assembly and can easily be replaced.

Dear Maintenance Men:I am in the process of installing new dead bolt locks on a number of doors at my building. These doors have never been drilled for dead bolts before. The prob-lem I’m running into is how to line up where to drill for the latch plate in the doorframe. Do you have any good tricks for getting this done?Ken

Dear Ken:Indeed we do. Lip stick or shoe

polish is the answer. After the dead bolt lock is installed in the door and with the door open, extend the bolt. Now, dab the end of the bolt with lip stick or shoe polish and return the bolt to the unlocked position. Close the door and attempt to lock or ex-tend the bolt into the frame. Open the door and on the frame should be the exact location of the latch bolt hole. Using a one-inch wood bit; bore a hole 1.5 inches deep to complete the installation.

Another method is to cut a one-inch thick dowel rod three inches long, insert a small finish nail into the end of the dowel rod, and be sure to center the nail. Cut the head of the nail off. With the dead bolt lock removed from the door, insert

the dowel rod into the latch hole in the door with the nail end facing out. Close the door and with your finger, push the dowel rod into the doorframe. Pull the rod out and your drilling site is marked exactly. One last item, if you are doing a number of doors, it may be worth purchasing a doorknob drilling jig. It will contain all the tools needed for professional door lock drilling and installation. The kit typically costs between $50 for a home improvement store kit and up to $400 for a professional kit. The $50 kit if fine if only have a cou-ple of doors to drill, however, if you have a lot of dead bolts to install, the professional kit is worth the money in the time and frustration it saves.

Please send us your Maintenance Questions!!! To see your maintenance

question in the “Dear Maintenance Men:” column, please send submission

to: [email protected] Please “Like” us on Facebook.com/

BuffaloMaintenance Bio: Please call: Buffalo Maintenance, Inc for mainte-

nance work or consultation. JLE Prop-erty Management, Inc for management service or consultation Frankie Alvarez at 714 956-8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645,

EPA Real Estate lic. #: 01460075 Certi-fied Renovation Company Websites:

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ContactJLE.com www.Facebook.com/BuffaloMaintenance

p

By Jerry L'Ecuyer & Frank AlvarezDear Maintenance Men:

Continued on page 12

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Apex 203 Units Tacoma,WA Sold: April 2014 Price: $26,500,000

Cherry Creek 2252 Units Tacoma, WA Sold: April 2014 Price: $18,225,000

Forest Meadows 107 Units Oak Harbor, WA Sold: November 2013 Price: $4,895,000

Hanna Heights 35 Units Tacoma, WA In Escrow Unpriced Offering

The Winthrop 194 Units Tacoma, WA In Escrow Unpriced Offering

Emerald Pointe Land 5.5 Acres of Land Puyallup, WA Available

The Milan30 Units Bremerton, WA In Escrow

Apex 203 Units

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Price: $26,500,000

Cherry Creek 252 Units


Price: $18,225,000

Forest Meadows 107 Units

Oak Harbor, WA Sold: November 2013 Price: $4,895,000


The Winthrop 194 Units

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Emerald Pointe Land 5.5 Acres of Land Puyallup, WA In Escrow

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Apex 203 Units


Price: $26,500,000



Price: $18,225,000






Unpriced Offering


Price: $2,100,000



Unpriced Offering



Unpriced Offering


Unpriced Offering

Apex 203 Units


Price: $26,500,000



Price: $18,225,000






Unpriced Offering


Price: $2,100,000



Unpriced Offering



Unpriced Offering


Unpriced Offering

Apex 203 Units


Price: $26,500,000



Price: $18,225,000






Unpriced Offering


Price: $2,100,000



Unpriced Offering



Unpriced Offering


Unpriced Offering

Apex 203 Units


Price: $26,500,000



Price: $18,225,000






Unpriced Offering


Price: $2,100,000



Unpriced Offering



Unpriced Offering


Unpriced Offering

Apex 203 Units


Price: $26,500,000



Price: $18,225,000






Unpriced Offering


Price: $2,100,000



Unpriced Offering



Unpriced Offering


Unpriced Offering

Apex 203 Units


Price: $26,500,000



Price: $18,225,000






Unpriced Offering


Price: $2,100,000



Unpriced Offering



Unpriced Offering


Unpriced Offering

Apex 203 Units


Price: $26,500,000



Price: $18,225,000






Unpriced Offering


Price: $2,100,000



Unpriced Offering



Unpriced Offering


Unpriced Offering

Jim Jensen, Senior Vice PresidentOffice: 253-509-7157Fax: 253-509-7158Email: [email protected]

Silver Ridge 44 Units Tacoma, WA Available Unpriced Offering

Bremerton Gardens 183 Units Bremerton WA Available Unpriced Offering

We would like to thank our clients for representation

on these multi-family transactions.



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Fair Housing = Great Customer ServiceMultifamily profes-sionals understand the basics of fair housing and adhere to fair housing prac-tices. An increasing

number of property management firms now require fair housing training before a new employee is allowed to start leasing. Mandatory training for office and maintenance employees is a good start but it only scratches the surface. Ongoing and consistent training is required to ensure employees are fully aware and are compliant with all fair hous-ing laws.

The bigger challenge is the ex-ecution of consistency in every com-munication, in the way each person is treated and with what pricing is offered. Do you complete an online guest card for EVERY person that calls or visits the community? Do you respond to every lead that comes through email? Do you jump up for every prospect that walks through the door? Do you treat every phone call in the same manner and with the same respect? Chances are the answer is unfortunately “Not every time”.

If you are having a busy day or a bad day and you rush through the tour instead of taking the time to tour the prospect through all the

amenities, you could be sending the wrong message. If you are distracted on a phone call and don’t ask all your questions off of your guest card, you could be sending the wrong message. Sometimes the prospect that comes through the door is someone you re-ally connect with. Getting to know them and building rapport comes easy and you are willing to go above and beyond to find them a home in your community. But what happens when the next prospect comes in and they are not friendly, a bit on edge and argumentative? You don’t build rapport with them and quite frankly aren’t excited about having them as a future resident because they appear to be a handful. Are you willing to go above and beyond for that prospect too?

Do you judge people based on the way they talk, the kind of car they drive, the way they are dressed or perhaps where they work? Do you treat someone who is highly edu-cated differently than someone with a GED? Perceived social status can profoundly influence the way people interact.

How can you remedy your unfa-vorable subjective perception of oth-ers? Everyone has a personal outlook based on how you were raised and what you were exposed to. Anais Nin said “We don’t see things as they

are; we see things as we are”. Chal-lenge your perspectives, and work towards seeing things from others viewpoint. Taking a higher level or big picture view of things can have a positive impact on us and those around us. Great customer service is making everyone feel welcome at your community.

We are all human and the pres-sures of life affect us such as family life, financial stress, being tired or sick and pressures to perform. This makes it all the more important to develop policies to create consisten-cy in documentation, leasing calls, tours and follow up, and resident rules and regulations. Educate and develop your teams to have a big picture view and to remove personal perspective. Create the same experi-ence for every person that comes in contact with your community, not simply to protect from a Fair Hous-ing claim but because it is good cus-tomer service and it’s the right thing to do.

Discrimination on any level is un-acceptable and in the housing indus-try we have a moral and legal obli-gation to use the same policies and offer the same opportunities for ev-eryone. Fair Housing education has never been more important and Mul-tifamily NW has increased course of-ferings with over 21 classes in mul-

tiple regions. You can download the Multifamily NW Fair Housing Best Practices document from our web-page at multifamilynw.org. Multi-family NW also offers rental forms to help all landlords operate within the law. Take advantage of all the rental forms and course offerings and make education a priority for your organi-zation.

p

Vis i t us atwww.RentalHousingJournal .com



The telephone is your single most important leasing tool and it’s probably the easiest

“tool” to operate at your community, but is everyone answering it when it rings? Many apartment communi-ties are spending time and money on designing creative, effective ads and signage to make their phones ring. Yet, believe it or not, many leas-ing people are still choosing not to answer their telephones. Worse yet, those who are relying on voice mail to take messages, are not always returning calls in a timely manner or even at all. I cannot tell you how many shopping reports I received last month with remarks like this:

“If I had really been looking for a new home, I would have given up trying to reach someone here. The phone went unanswered as I at-tempted to make contact numerous times, and no one returned my call when I left a message.”

For those property management companies who regularly evaluate their employees with a shopping program in order to “perfect their performance,” they are also testing

to make sure someone is simply an-swering the phone and returning calls! Of course having difficulty making contact with the leasing of-fice is merely an inconvenience for the Secret Shopper, as I am only PRE-TENDING to need an apartment. What about REAL renters out there? What do you suppose happens to them? My guess is they are living in your neighborhood, perhaps in an apartment at the community next door because someone answered the phone on the day they were looking for a new home.

The question that keeps coming up over and over again from prop-erty managers and owners is this:

Q: How can I get my leasing people to convert more of their tele-phone traffic into actual visits and then rentals?

Then there’s the question from the leasing consultants and manag-ers who primarily work alone due to budget constraints and the size of their communities:

Q: I know my supervisor is con-cerned about the office coverage

and my ability to always answer the phone, but since I work by myself I have to take care of everything out on the property and also run all the errands. I just can’t be in the office all day, every day. What can I do?

A: It sounds like the people be-hind these questions/concerns all have the same goal in mind, but have yet to devise a plan in order to achieve their objective. While the day to day operations of caring for each community and its residents must be carried out, there will be no new residents to take care of without ac-tive leasing. The most obvious solu-tion is as simple as forwarding your office calls to a cell phone. By having calls forwarded and being prepared to quote information about your available apartments, you can eas-ily set appointments while you are out walking a vacant apartment or running a bank deposit. Of course you will have to always be prepared with something to write on and pos-sibly take a message if a call comes through when you are unable to talk. However, in receiving a “live voice,”

rather than a message, your call-ers are more likely to give you their name and number for a call back rather than leave you a voice mail. Of course if you aren’t in a position to answer your phone, how about regu-larly checking for messages AND re-turning calls? While you’re at it, how about also checking for e-mails from prospective renters. – Most of you can do that with your phone too!

A: To those property managers and owners who already have their managers forwarding calls to a cell phone, but are not seeing a high per-centage of callers being converted into visitors, maybe your employ-ees need an “incentive” as extra motivation to work harder on set-ting appointments, rather than just answering questions and giving out information when the phone rings. It could be something as simple as a Starbucks gift card in the dol-lar amount of the number of callers turned into visitors and something more for every visitor who becomes a resident. (Of course a guest card

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Once you have hired a new property management Su-perStar, the next step is criti-

cal. It’s now time to welcome this SuperStar into your property man-agement company in a way that will accelerate their success and make a lasting first impression. Read the three steps outlined in this article to learn special tips for welcoming a new SuperStar and how to organize a positive and productive first week.

Organizing their arrival: When organizing the arrival of a new Su-perStar, preparation must begin at least one week before their first day of employment with your prop-erty management company. This preparation might include gather-ing the following: a company direc-tory/handbook, a telephone/fax/address/E-mail list, a cell phone with fresh batteries, personalized business cards, a computer with all the necessary software already loaded for them, a folder with any corporate or medical/health forms they will need to complete on their first day and any property manage-ment forms or special business tools

they will need. Here are some addi-tional ideas: stock their office/desk with enough office supplies for a full month, a company credit card, easy-to-follow directions for common of-fice tools like the telephone, fax ma-chine, computer scanner, E-mail and the copy machine, a day planner or new calendar logged with important events or meetings, and maybe a nice company mug to say “welcome aboard”.

Tip From The Coach: Remember, the preparation that is done prior to the arrival of your new property management SuperStar will make for a smooth first day and ensure that training can continue on the second day, with no interruptions. To ensure that each SuperStar receives the best welcome aboard, review each of the items listed in the above paragraph and create an internal checklist spe-cifically customized for your prop-erty management company. The for-mat and flow of this first week will make a big impact with new Super-Stars, but you only get one chance to make a first impression—so make it count!

Planning their first day: Wow! What a great plan to welcome your new SuperStar, right? So what’s missing? Assign a person in your property management company who will be fully responsible for wel-coming each new SuperStar in a way that is consistent with your company culture and high standards. Start by selecting a SuperStar on your current team and assign him or her to be a welcome mentor for your new Su-perStar during their first week. This person can show your new Super-Star around your property manage-ment company, make introductions to your residents, go to lunch with them the first few days, and explain the company hierarchy and proce-dures. Most importantly, this men-tor can answer the many questions all new SuperStars will have.

Tip From The Coach: On the first day you can help your new Super-Star gain acceptance among the team by quoting him or her about a new idea or suggestion they shared with you. This demonstrates that you val-ue their feedback and will be quick to give them credit. This also shows

your current team that the new Su-perStar on their team can make valu-able contributions to the success of your property management compa-ny and will accelerate the acceptance process.

Scheduling the first week: As the hiring manager you are also respon-sible for meeting with your new Su-perStar at the start of their first day to share with them the written plan you have for their first week. This writ-ten plan should include a specific agenda, detailing their exact train-ing steps and who will be assisting them in their learning. In addition, this plan must include a space for each of you to sign and date every step in their training plan as they are being accomplished. This is an im-portant check-and-balance, because it communicates to your new Super-Star that they are responsible for the success of their training and you are equally responsible for the comple-tion of a comprehensive training program.

Tip From The Coach: At least for the first week, meet with your new

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Tacoma Public Utilities now of-fers an easy, convenient way for property managers and

owners of residential property to manage their power and water util-ity accounts. A new website, MyT-PU.org/PropertyManager, provides property and tenant information 24/7, making account management very simple.

You can view current occupants

and - with the click of a button - start or stop water and/or power when tenants move in and out. You can also see any pending move-in or move-out activity and view your bills and the balances on your accounts.

On the Property Manager website, you can:

• Complete move-in and move-out requests

• Access current occupant names and move in dates

• View pending move-in and move-out activity

• View current balance and last bill for your own accounts (not for tenant accounts)

• Receive email confirmations of move ins and move outs

• Contact TPU’s Customer Ser-vices office with any questions or concerns

On July 1, the website replaces the fax as the way you can complete your property transactions with TPU; re-quests will not be accepted by fax af-ter July 1.

How do I get started? Visit MyTPU.org/PropertyMan-

ager to begin registration by com-pleting a Property Manager Access Agreement. You will also need an ac-tive Landlord Service Continuation Agreement (see more below). Once you’ve completed and returned the agreement, an agent will register your account and provide you with access to use the site. If you need

help with that, please call us at (253) 441-4627.

Can I manage all of my utili-ties on this site?

At this time, you can manage your Tacoma Power and Tacoma Water utilities – not garbage, surface water or wastewater.

What can I view on my account pages?

You’ll be able to see a detailed list of each unit associated with the address, including the name of the current occupant, the start date of the service in the current occupant’s name, and any pending move in or move out, among other things.

How do move-ins work on the website?

You can complete a move-in up to 30 days in advance. As soon as your request is completed online, the ac-count will be automatically opened for the new tenant on the selected date. The current occupant (owner or tenant) will be moved out one day before the scheduled move-in.

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Mid Year Review• Executive Director – Jim Wiard • President – Gail Duke – Vice President – Kris Buker • Secretary – Becky Sanders

• Treasurer – Brett Stevens • Vice President of Suppliers Council – Barry Savage • Immediate Past President – Jay Olson18300 Cascade Ave. S., Suite 130

Tukwila, WA 98188(425) 656-9077

(425) 656 9087 (fax)[email protected]

By Jim Wiard

It’s already June and the year seems to be flying by. 2014 has been a record year for WMFHA.

We are very excited about the growth of our membership, the quality of our many programs and our ability to serve our industry and the com-munity.

The year started out with our an-nual “Day on the Hill” event, where-by WMFHA members were joined by members of other housing organiza-tions to travel to Olympia and meet with our legislators to educate them on our industry and how vital it is that our interests be known and un-derstood by lawmakers.

A smaller group of members joined us in Washington D.C. in March to meet with our members of Congress to build relationships with our Congressmen and Senators. Those relationships are important to us as we become an important re-source for our elected officials in our nation’s capitol.

Our Government Affairs staff and respected lobbyists continue to skill-fully address head on any issues which arise in Olympia or Seattle which might adversely affect our in-dustry or membership. Our relation-

ships with policymakers are vitally important and we welcome partici-pation from our concerned members. Grassroots advocacy continues to be a strong focus for our organization.

The elegant Emerald Awards cele-bration in February was attended by a record 900 multifamily profession-als and family members as we hon-ored recipients of our annual indus-try awards. The ability to recognize individuals and companies at this event who are truly making a differ-ence is always heartwarming, and in February, we also celebrate National Apartment Careers Month.

Our quarterly Membership Meet-ing in March, featuring Mike Scott of Dupre+Scott, was tremendously in-formative on regional market trends and data, and our recent June Mem-bership Meeting, featuring Denny Fitzpatrick from Hotel 1000 discuss-ing the secret to exceptional service, was a huge hit.

April is National Fair Housing Month and in addition to important fair housing training, we also had fun with a month long Facebook campaign. Also, in an effort to give back to our on-site maintenance ser-vice technicians, we held our annual Maintenance Summit education con-ference and trade show, where ser-

vice personnel learn valuable on the job skills in a hands-on informational format. This unique event continues to grow in scope and influence each year.

Our management personnel mem-bers were treated to an exceptional EdCon, our education conference and trade show, in May. With a fun Wizard of Oz theme, national key-note speakers and trainers wowed the audience with topical and use-ful information to enhance the skills and motivation of on-site employees. Our own version of a brainstorming session addressed the most pressing challenges and concerns in our in-dustry today and everyone left with multiple take-aways.

Training and educational opportu-nities to date have included National Apartment Association designations such as the Certified Apartment Manager (CAM) course, the Certified Apartment Supplier (CAS) course for our industry partners, and the Certi-fied Apartment Portfolio Supervisor (CAPS) course for regional manager designation. In June we will hold the Specialist in Housing Credit Man-agement (SHCM) course for the first time, offering valuable education for affordable management staff.

Growth of our association has ex-

ploded this year, as we reach close to 1,000 members representing over 125,000 apartment homes. The value of membership in WMFHA is cur-rently being demonstrated during our Membership Drive campaign as we seek new property management companies and industry supplier companies to join with us to create a stronger voice for the industry and broaden our impact on the profes-sionalism and growth of multifamily management.

And in the midst of all of our legis-lative advocacy, our excellent educa-tional programs, and our wonderful-ly fun and informative networking events, we updated our brand mes-sage, created a new, modern logo, en-hanced our database and launched a new website at www.wmfha.org.

We are privileged to be able to represent the apartment industry and will continue to do all we can to serve our constituents and the com-munities called home for so many of our residents.

For information on joining the Washington Multi-Family Housing Association, visit www.wmfha.org and review all that we have to offer. We thank everyone for your support.

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Shoptalk ...continued from page 10

system and/or telephone log would have to be in place for verification purposes. . . .)

If the day-to-day responsibilities of managing your community make you repeatedly absent from your leasing office, consider forwarding your calls to a cell phone. This will minimize the inconvenience to your prospective renters and anyone else that might be trying to get a hold of you, as well as make you readily available in the event of an emergen-cy. By the way: It’s just as important to answer the calls marked “private” as it is to pick up when the calls are routed through an ad source or you see your supervisor’s phone number come up on your caller ID! – It just may be the Secret Shopper calling . . .

Are you dealing with a unique challenge or unusual situation at your community that you would like to see

addressed next month? The Secret Shopper would like to invite you to

send in your questions, as other people may be dealing with the same or similar issues. - You will remain as anonymous

as the Secret Shopper! Please ASK THE SECRET SHOPPER by mak-

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How will I know whether my move-in transaction is com-pleted?

You’ll see a confirmation message on the screen, along with an option to send an email confirmation to you and the tenant.

How do move-outs work on the website?

You can complete a move out up to 30 days in advance. As soon as your request is completed online, the account in the current tenant’s name will be scheduled for closure on the selected date. The service will then be moved back to the owner’s name on the day after the current tenant’s account is closed.

If I need help getting started or while I’m completing a move-in or move-out, what should I do?

If you need help getting started, please call (253) 441-4627. If you’re having trouble navigating the web-site or completing a transaction after you’ve logged in, send TPU’s Cus-tomer Services’ group an email by clicking “Send us a message.” From there, you can type in your question.

Is the site is secure?Yes. You will see the “https” in

the website address. The "s" means transmitted information is secure.

Tacoma Public Utilities incorpo-

rated enhanced security measures to ensure your sensitive data is pro-tected. When you make a payment through Quick Pay with your Visa or MasterCard, Property Manager will direct you to our secure online payment partner, Trust Commerce, which will process your payment quickly and securely.

What is a Landlord Service Con-tinuation Agreement?

A Landlord Service Continuation Agreement (LSCA) ensures utility service(s) remain active and billed to the owner while the property/unit is vacant. The owner/agent agrees to notify Tacoma Public Utilities (TPU) with changes in occupancy before they occur. The owner/agent also agrees to notify TPU of any sale of a property listed in a LSCA agreement so that it can be removed.

If you would like more information about obtaining a LSCA, please contact

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LED ...continued from front page

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the New England Gas Company, the Phillips Ambient LED 12.5 watt A19 indoor bulb, a common LED light, was tested against the CFL GE En-ergy Smart 13 watt bulb. Although the two bulbs compared favorably in energy efficiency, the LED lasted 17,000 hours longer than the CFL. You would need three CLF bulbs to match the longevity of the 25,000 hour lifetime of the LED. When fac-toring in replacement cost, which can mean hiring a professional at $30-$60 an hour, the CLF become much more costly than advertised. LEDs range from 25,000 hrs. – 90,000 hours in lifetime, no other single lighting method comes close.

Energy Savings:The primary reason for switching

to LEDs is to save on your daily en-ergy consumption and cost. Accord-ing to the U.S. Commercial Buildings Energy Consumption and Intensity Trends report retail locations using over 40% of their energy consump-tion on lighting, business and build-ing owners need to make a change. However many commercial owners have yet to make a switch because of the relamping cost, especially since many owners just switched from incandescent to florescent bulbs in the last five years. The reduction in consumption can reduce the utility bill while increasing the value of the building. Let’s take a large depart-ment store, which uses 300 250 watt

halide high-bay fixtures. In one hour this store will use 75,000 watts on these lights. If these were replaced with 400 24 watt LED high bays, the store would use 10,000 watts in that hour. If these lights are on 14 hours a day, with a cost of $0.10/watt the store would be saving $32,000 on energy every year. LEDs are 80% efficient, which means they convert more energy into light, reducing waste and consumption. Control sys-tems can also be put in place so the lights can be dimmed, brightened, or turned off based on specific pref-erences. In addition an asset boost is possible. In a 200,000-square foot of-fice building that pays $2 per square foot in energy costs, a 10% reduction in energy consumption could be an additional $40,000 of NOI. At a cap rate of 8% this could mean an asset value boost of $500,000. The energy savings don’t stop at the lighting when LEDs are installed. Because less heat is generated, HVAC sys-tems don’t have to compensate for the heat generated by light bulbs in your office and have more power available to deal with the 90 degree summer heat.

Lighting is Better and Brighter

Although the lighting debate fo-cuses on the environment, cost, and energy efficiency it’s important to in-clude quality of lighting. Quality of light is often determined by the color

temperature, measured in kelvins, and the color rendering index (CRI), which indicates how accurately the light renders colors. These are im-portant because color temperature changes based on the application, i.e. retail lighting, kitchen lighting, classroom lighting etc, and CRI de-termines if the enlightened colors will appear correctly to the human eye. LED lights have an advantage in both of these areas because they are adjustable and can be manufactured for specific color temperature while also ensuring colors are well lit. With increased control over temperature and CRI owners can provide better lighting for each application they need. These applications can range from office and parking lot lighting to retail and restaurant lighting, yet each needs different intensity and temperature to create an atmosphere or to improve safety and visibility.

Tax and Government Incentives:

Most owners are still worried about initial implementation cost. However, there are a number of pro-grams offering incentives and rebates for making important lighting up-grades. Lightingtaxdeductions.com and Energy Trust of Oregon’s Light-ing Incentives Sheet, allows owners to supplement the cost of their up-grades either upfront or through tax

deductions. In addition The Energy Policy Act of 2005 provided energy efficient commercial buildings a tax reduction program for lighting sys-tems that exceeded lighting code standards (Energy Policy Act Tax De-duction Information). Each of these programs are very specific, depend-ing on the type of building, the light-ing applications, and the costs they will cover, but they are incredibly helpful is getting your project off the ground despite high costs.

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LED ...continued from page 16

to implement stringent lighting stan-dards aimed at efficiency. The bill called for certain inefficient lighting to be phased out by manufacturers and suppliers. As of Jan. 1st, 2014, 75 watt and 100 watt incandescent bulbs were cut from manufactur-ing, thus, forcing consumers to find more energy efficient options. Re-bates still remain to make retrofitting easier but as energy efficient lights become standard these rebates will be phased out as well, so don’t miss your chance.

Environmental Plus:Although saving energy is a plus

for the environment, efficient light bulbs are not made out of thin air. Many light bulbs( including flores-cent bulbs) are produced with and contain harmful chemicals like mer-cury and lead. Sophisticated recy-cling techniques are needed to make sure these metals don’t enter our wa-ter ways, where they could be very harmful. LED bulbs on the other hand, contain no mercury and aren’t considered a hazardous product, making them far easier to recycle. Many hardware stores and manu-facturers have recycling programs especially for these lights. Accord-ing to the U.S. Energy Information Administration most of the nation, 70% of our electricity is generated through coal or natural gas switch-ing to energy efficient lighting will reduce our need for these environ-mentally harmful energy sources. In Oregon our power is generated

through hydro-electric and natural gas, with some of slack picked up by Coal and Biomass, meaning that even little changes can remove coal from our consumption profile.

ConclusionFor commercial owners, energy

efficient lighting upgrades, specifi-cally LED lighting, improve your property in many ways. LED are comprehensively more energy and cost effective than comparable light-ing methods, saving on cost, energy consumption, and maintenance, while also reducing stress on other operations like HVAC. The cost of labor, including installing, replacing and repairing, will reduced, saving owners time and money that would otherwise be used to organize and pay technicians. In addition these savings increase the value of your asset, making your property more desirable for owners. Lighting that’s up to the highest efficiency stan-dards will be a great selling point for potential tenants, who are looking to save on energy costs with top of the line operations. Time is running out to take advantage of the programs and rebates that will make your LED transition easier. However, if it hap-pens today or in a year LED lights are still the best all-around lighting value and just may be the brightest idea for improving your property.

By Ari Goodblatt of Bluestone and Hockley and Jim House of LED Trail

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I recently had the opportunity to visit with Dick James, the owner of Dick James & Assoc., a well-

respected apartment management company currently managing more than 6,000 units in three States. In life, there are individuals that you meet that you appreciate for their enthusiasm about their work, treat-ing everyone in their company as “family” and taking a sincere inter-est in every employee. Dick’s web site (www.djaproperties.com) notes that “they care for every property like they own it”. He attributes his success to this mandate – plus some very basic philosophies. His answers to my questions provide insight on how a successful company works.

Jim Kasten: How did you get into managing apartments?

Dick James: I was a very active apartment broker in the Sacramento area for many years, and then I start-ed putting together a large number of partnerships that invested in and purchased apartments. I had worked with a number of management com-panies with mixed results, leading my wife and me to the decision that we thought we could do a better job

managing apartments than what we had experienced. In 1994, we de-cided to start our own management company.

The first property we started with was a 52 unit property that had about $15,000 in unpaid bills. We were told by the management company that it

was a difficult property and that we should sell it. I did not agree as I al-ways thought it was a good property with a lot of potential. We took it over without knowing much of anything about the management business. However, by making reasonable de-cisions and dealing with issues based

on our ownership experience, we had all of the bills paid within a few months and a substantial amount in savings by the end of the year.

The approach we used was simple and very basic which laid the foun-dation for our philosophy to manag-ing apartments. Based on the success of this one property, we acquired more properties and turned them around rather quickly. Our business has continued to grow, mostly from repeat clients and referrals.

JK: How many units do you currently manage and where are they? How many in metro Phoenix?

DJ: We manage close to 6,000 units located in the Sacramento area, Phoenix, Tucson and Reno, of which proximately 2,000 units are in Ari-zona. Flying my own airplane allows me to visit the properties on a regu-lar basis, as well as respond quickly if the need arises.

JK: What makes your company spe-cial?

DJ: The thing that makes our com-

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SuperStar for fifteen minutes at the end of each day. Make sure they are settling in, answer their questions, review their responsibilities and ask how their transition into your prop-erty management company is going. Remember, whenever someone new joins your company they bring fresh eyes and new ideas—so listen and watch closely to see what you can learn.

Want to hear more about this im-portant topic or ask some additional questions about how to welcome a new SuperStar? Send an E-mail to [email protected] and The Coach will E-mail you a free Power-Hour invitation.

Author’s note: Ernest F. Oriente, a business coach/trainer since 1995 [32,050 hours], serving property man-

agement industry professional since 1988--the author of SmartMatch Alli-ances™, the founder of PowerHour® [ www.powerhour.com ], the founder of PowerHour SEO [ www.powerhourseo.com ], the live weekly PowerHour Lead-ership Academy [ www.powerhourlead-ershipacademy.com/pm ] and Power Insurance & Risk Management Group [ www.pirmg.com ], has a passion for coaching his clients on executive lead-ership, hiring and motivating property management SuperStars, traditional and Internet SEO/SEM marketing, com-petitive sales strategies, and high lever-age alliances for property management teams and their leaders. He provides private and group coaching for property management companies around North America, executive recruiting, invest-ment banking, national utility bill au-diting, 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.power-hour.com/propertymanagement/employ-eepolicymanuals.html ] and social media strategic solutions [ http://www.power-hour.com/propertymanagement/social-medialeadership.html ]. Ernest worked for Motorola, Primedia and is certified in the Xerox sales methodologies. Recent interviews and articles have appeared more than 8000+ times in business and trade publications and in a wide variety of leading magazines and newspapers, including Smart Money, Inc., Business

2.0, The New York Times, Fast Com-pany, The LA Times, Fortune, Business Week, Self Employed America and The Financial Times. Since 1995, Ernest has written 225+ articles for the property management industry and created 400+ property management forms, business and marketing checklists, sales letters and presentation tools. To subscribe to his free property management newslet-ter go to: www.powerhour.com. Power-Hour® is based in Olympic-town…Park City, Utah, at 435-615-8486, by E-mail [email protected] or visit their website: www.powerhour.com

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properties, your ads should also be selling you and your company. The property amenities, pictures, and monthly costs speak for themselves. So why not elaborate on what you as a landlord, and your company, can and will do for them as a renter. List items such as your length of ex-perience, quick turnaround times in making repairs, available 24/7, etc. You're applying for a job just as po-tential renters are applying to rent.

IPhone or Like Device -- Staying connected these days has become a way of life. The new culture of ten-ants expect quick responses from their landlords. Acting quickly in most situations is pertinent. Whether you receive maintenance requests, vacancy inquiries, or your clients simply need information, respond-ing to any and all communications quickly can make or break your busi-ness.

Compassion – Even if we can't count it, we all know compassion is real. We've all felt its power and in-fluence. We also know there is more to achieving business success than market strategy and financial objec-tives. Where do these paths cross? People. Everyone has a story, and I make it a point in my business to both listen to a persons story, and take that story into consideration as the business relationship develops.

Will Johnson:

Winning Customer Service -

The property management career is largely about serving customers. On one hand, you have the property owners. They’re paying you to man-age their business efficiently, main-tain their real estate investments and earn a nice return on them. On the other hand, there are your residents. They pay you to provide them with a safe, well-maintained and enjoyable place to call home. The problem with this picture is that the wants and needs of these two separate custom-ers are different, and at times seem-ingly diametrically opposed. The best property managers I know are able to deftly balance these opposing forces by managing expectations and selling the win/win/win. Without owners, there are no homes for your tenants and you’re out of a job. With-out residents, there is no business for your owners and you’re out of a job. Your winning attitude and ability to bring balance and quality service to both, everyone’s needs are met and you not only have a job, you have a career.

Organizational Tools - No mat-ter how big or small your portfolio is, there’s a lot to juggle. Between finances and maintenance and mar-keting and day-today management duties, this is a bog job and one that requires an ability to organize your time and tasks. These tools aren’t a one-size-fits-all situation. For some folks a day-planner notebook, a ma-nila folder or three and a check reg-

istry might be enough. For others, a simple out-of-the box computer program will do the trick. Still oth-ers require big powerful enterprise software that allows you to track multiple properties across multiple owners and states while doing bud-gets, financial projections and guid-ing a satellite. The bottom line is you need organizational tools to be suc-cessful in this industry, or any other really. Know what you need to orga-nize, find a tool or tools that do the job and then use them every time. It’s that simple.

Quality Forms – Your property may have a foundation made of con-crete, but a good property manage-ment business has a foundation made of rental applications, lease agree-ments and other legal forms that are compliant with national, state and local laws. Very little can cost you and your owners more money, more quickly than legal issues with a dis-gruntled tenant. Perhaps the most common cause for drawn out legal matters are bad forms. If you’re us-ing bad forms to begin with, your business is shaky from the ground up and no matter what you do af-ter you’re at risk. To build a strong foundation, start with forms from a reliable source. A local rental hous-ing association is a great source for quality forms, also there are a num-ber of sources on-line that offer state specific forms. If you have any ques-tion whatsoever, consult a local attor-

ney specializing in landlord / tenant laws.

Kate Good is one of the most recog-nized and in demand speakers in the in-dustry. She is one of the founding part-

ners of the Apartment All Stars and has recently added Apartment Developer to her resume with the ground breaking of

800 apartments in Houston, TX. She can be reached at [email protected]

Greg Knackal has been in the Prop-erty Management industry for the last 20 years. He was the 2009 President of Multifamily NW and has been a mem-

ber of the board for the last seven years. For the last 12 years he has worked for one of the largest apartment manage-

ment companies in the state of Oregon, Princeton Property Management .Katie Poole – Hussa is a Licensed

Property Manager, Syndicated Colum-nist in the Rental Housing Industry, Continuing Education Provider and

Principal at Smart Property Manage-ment in Portland, OR. She can be

reached with questions or comments at [email protected].

Will Johnson has been publishing in and providing services to the multifam-ily and residential real estate industries throughout the West for over a decade.

He has over 20 years experience in sales, sales management and training.

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pany most special is our approach to managing. Not only do we keep a simple and basic approach, we man-age as if we owned the properties, as if it were our money to spend or not spend. This concept is embraced by our managers, maintenance person-nel, and all of our supervisors. Our employees have the authority to make decisions and they know I will back them up if they make a mis-take. I have made many mistakes, so I know how important mistakes are in the learning process. As Dale Carnegie said, “The successful man will profit from his mistakes and try again in a different way”. I want our employees to build confidence and self-esteem so they have the tools they need to run their properties as if they own them. Additionally, we are a family based company and seven years ago we brought in my daughter, Michele, who has worked as a CPA. She has embraced the man-agement business and has become an integral part of our company. Her background in business and account-ing makes her an asset to our compa-ny. Also, I am personally involved in every property we manage bringing my years of experience to our busi-ness.

JK: You manage apartments in a number of cities in California, Arizona and Nevada. Is there anything unique to metro Phoenix?

DJ: While each area may have some unique characteristics, our ba-sic approach to managing enables us to effectively run a property no mat-ter where it is located. We also en-courage our employees to be warm and friendly and leave a positive first impression which leads to good re-sults no matter where you are.

JK: When you were in our office, you noted that you typically manage “B” and “C” quality properties across the Valley and currently manage communities from 52 to 336 units in size. With the increase in new “A” quality apartment construc-tion, do you think there will be signifi-cant influence on your properties?

DJ: I believe the increase in “A” quality apartments will have a posi-

tive effect on “B” and “C” quality properties. With the cost of new units being high (approximately $150,000 per unit in Phoenix and $200,000 in Sacramento), the rents of these new units will have to be much higher to accommodate the higher cost of con-struction. We have a huge back log of people that are living at home due to the current economic conditions and once those start improving and we see meaningful job growth, we will see a greater demand for rentals. So in effect, the new units are like a new Mercedes Benz but not everyone can afford a Mercedes. This will lead to more renters being interested in “B” and “C” properties. Also, many of these new properties are being built in the outlying areas, thus, making infill properties, particularly those that have been improved, more de-sirable with the ability to get higher rents.

JK: Since 2010, vacancy rates have dropped every quarter. Have you had a similar increase in occupancy and if so, have you been able to decrease conces-sions and been able to raise rents?

DJ: We have definitely seen im-proved occupancy and we have been able to reduce concessions, as well as raise rents. However, you have to take into consideration the micro-markets and the specifics of the prop-erty you are managing. If the prop-erty is a bit run down, it will take longer to respond to an improving market. With the lack of meaningful job growth in the higher paying jobs, we have done a good job of monitor-ing rents to maintain good occupan-cy while maximizing the cash flow of the property.

JK: . Since we broker apartment com-munities in metro Phoenix, if I wanted to suggest that a buyer consider Dick James & Assoc. for management - what main points should I tell the buyer?

DJ: We have a management team that embraces our philosophy of managing everything as if we owned it. We do our best to spend money in smart ways by controlling costs, yet still effectively maintaining the property. We put a big emphasis on

responding to clients and customers promptly and truthfully. Also, we get a lot of compliments on our monthly operating statement as it is very sim-ple and easy to understand. If a client has a specific need, we are happy to go out of our way to accommodate their wishes.

We tend to hire managers with good people skills and willingness and a desire to be successful, not nec-essarily with a great deal of manag-ing experience. If we hire someone with a good attitude and a desire to succeed and train them using our philosophies, we will almost always be very successful.

JK: You said that every time that you have taken over a property, as best you could recall, you were always able to lessen the expenses and increase the owner’s cash flow. Can you shed some light as to how you are able to do this?

DJ: One of the ways we control costs is to control our use of outside vendors. We hire a variety of main-tenance personnel who can do a lot of the work in-house. As an example, my maintenance supervisor in Phoe-nix and Tucson is a licensed electri-cal contractor. Anything having to do with electrical issues, he can trouble-shoot, and with the assistance of his maintenance staff, solve a problem without spending much money. We recently had a fire alarm issue in one of our properties and because it was about 40 years old, the alarm com-pany wanted to install a new system claiming they could not fix the old one which would cost about $90,000. The maintenance supervisor did re-search on the system and figured out how to fix it which ended up costing only about $5,000. Now the system works well and the fire department is more than satisfied. When faced with a problem, we are always focused on going the extra mile to make the best financial decisions for our clients to maximize their cash flow.

JK: At the end of our conversation – you mentioned that over the years you had developed Five Philosophies that have now come to be your guideline for management.

DJ: When we started our manage-

ment company, my wife was putting together the employee handbook and suggested I put something per-sonal in the handbook from me to the employees. After thinking about it, I came up with what I call my “Five Philosophies" in apartment manage-ment. Little did I realize that these philosophies would become an inte-gral part of our management compa-ny as it developed. The Five Philoso-phies have become the base we work from in managing our many apart-ment complexes. Whenever we take over the management a property that was managed by another company, there are always a few of these basic philosophies that are overlooked.

One of the reasons it works so well is that the management team only has five basic things they have to remember. Rather than loading my management team with a lot of meaningless reports and things to do, they are able to focus on what produces results. This keeps things simple and, if things are kept simple, things get done.

Jim Kasten, CCIM Dick James, CCIM

Kasten Long Commercial Group Dick James & Assoc., Inc.

2821 E Camelback Road, Ste. 600 4849 Manzanita Avenue, Ste. 91

Phoenix, AZ 85016 Carmichael, CA 95608

602 677 0655 916 332 [email protected]

[email protected]

www.DJAProperties.com The Kasten Long Commercial Group

has specialized in apartment brokerage in metro Phoenix since 1998. Agents have brokerage more than 1,000 com-munities with gross sales in excess of

1 billion dollars. The company also provides weekly updates (by e-mail) on

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How Financial Spring Cleaning Can Lead to a Richer Long-Term Outlook

3 Areas to Consider for Increased Savings

One lesson the average Ameri-can should have learned from the recent financial cri-

sis and gradual recovery is that put-ting more money into savings is, in general, good, says veteran financial expert Jeff Gorton.

“When things are fine, most of us are prone to commit less of our money to savings; when the econo-my is down, however, we realize that having money is far more important than spending it on things we don’t need,” says Gorton, a veteran Certi-fied Public Accountant and Certi-fied Financial Planner™, and head of Gorton Financial Group.

The personal savings rate in July 2005 hit an all-time low at just 2 per-cent, according to the Bureau of La-bor Statistics. But in May 2009, near the beginning of the recession, the average American’s savings rate hit a high of 8 percent.

“That rate dwindled as the econ-omy recovered, which is unfortu-nate because you can do more with accumulated money, including benefit from investments yielding compound interest, which means that interest also earns interest in an

investment,” says Gorton, who sug-gests practical ways to trim spending in the short term in order to get your financial house in order and accumu-late more money in the long term.

• Car buying says plenty about how a consumer views their money. For most Americans, the question is whether to buy new or used. The

moment you drive a brand new car off the lot after the purchase, the car’s value drastically drops. Many of the benefits you may enjoy in buying a new car can be had with a certified pre-owned car: low miles, good-as-new functionality and, usually, that new-car smell. And, a given model will have a history, so you can avoid

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Along with other friends who are suffering from diabetes, one of our own runners was sponsored for the event, Xea Newton (Eric Smith’s niece). She suffers from Type 1 dia-betes. Thanks to all of our supporters we were able to reach our fundrais-ing goal. We hope that our fundrais-ing efforts will assist in ultimately turning Type One into Type None.

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Our Pacific Crest Real Estate Team

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Energy Efficient Window Shades and BlindsBy Mary Girsch-Bock, Articles, Technology

While it’s important for renters to practice ener-gy conservation in their

apartment homes, there are numer-ous things that property managers can do in order to conserve energy on a larger scale. Remember, win-dow coverings, while decorative, also provide an important function, serving as a barrier to outside heat in the summer, while keeping heat in-side during the winter. It’s currently estimated that about 40 percent of outside heat comes through win-dows, while 10 percent of heat is lost through windows during the winter, so while it’s important to keep those shades or curtains closed, it may be time to upgrade your property with more efficient window coverings.

One of the biggest energy savers are ‘smart shades’ that help conserve energy. And while just about any window covering is better than noth-ing, with current energy prices in-creasing, managers may want to start thinking about replacing those tra-ditional blinds and window shades with more energy efficient ones.

Here are some popular options that you may want to consider:

Energy Efficient Cellular Shades – Cellular shades help to filter out damaging UV rays. The shades con-tain cellular air pockets inside that shield living space from cold drafts in the winter months. During the summer, direct sunlight and dam-aging UV rays are blocked by blind fabric while the same air pockets that blocked cold air from entering the unit also work to trap cooled air in-side, preventing energy waste year round. Cellular shades are available in single cell and double cell design,

with double cell structure offering the most energy efficient savings possible.

Blackout Shades – The black-out shades on the market today are nothing like the old blackout cur-tains used by hotel rooms, and older apartment buildings in places like Las Vegas, where there is an active workforce around the clock. Black-out shades block 99% of incoming light and are an excellent choice for extremely sunny climates. Blackout shades are also very energy efficient,

blocking UV rays from entering the apartment.

Thermal and insulated shades – These shades are designed with up to four layers of insulation and are made to fit as closely to windows as possible. Insulating window panels also offer insulation from the heat, but typically block out most light as well. For extremely hot areas such as the south, or desert southwest, man-agers may want to consider outdoor window treatments which block the sun from penetrating windows and doors.

There are a variety of options available, some very reasonably priced, others presenting a signifi-cant investment, but either option will ultimately save both energy and utility costs.

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4 Ways to Make Your New Home More Eco-Friendly

Your new house might have a pretty big environmental foot-print. Buildings, including

homes, account for nearly 40 percent of all energy consumed in the U.S., according to the Environmental Pro-tection Agency. Now that you own your home, you can plan remodel-ing and renovation projects to make your living space more environmen-tally conscious.

Insulate Your WallsInsulate your home and use less

energy to heat and cool it. Newer homes tend to come with insulation, but they might benefit from more. Older homes tend to have less in-sulation. The Department of Energy recommends a home inspection to learn the R-value of the insulation before you add more. R-value is the resistance to heat; the job of insula-tion is to keep heat on the correct side of the wall (out in summer, in dur-ing winter). First check with your lo-cal utility company to see if it offers free home inspections for heating ef-ficiency. If not, they might have a list of recommended contractors whom you can pay to inspect your home.

Add Window TreatmentsWindow treatments can also help

you reduce your heating and cool-ing costs, while making your home look a bit more stylish. Hang roman blinds or a pair of thick curtains in your windows to block the heat in the summer and keep cold air from seeping in through the windows in winter. Keep the shades or blinds lowered or the curtains drawn in the summer to efficiently reduce heat gain. Drapes with a white backing can reduce heat gain in the summer up to 33 percent, according to the De-partment of Energy.

Choose Better MaterialsCabinets made from particle

board might be held together with a

formaldehyde-based glue, which is a carcinogen and pollutant that con-tributes to smog and reduces indoor air quality.

To reduce your exposure to form-aldehyde and other volatile organic compounds, choose cabinets and other materials that are formalde-hyde-free. If you use wood cabinets instead of particle board or fiber-board, look for woods that are certi-fied by the Forest Stewardship Coun-cil, which means the wood came from a forest that is managed in an environmentally responsible and sustainable way.

Other materials, such as flooring and counters, are available in renew-

able and sustainable sources such as cork and bamboo, as well as recycled rubber and stone.

Dispose of Appliances Properly

Upgrading the older appliances found in your new home is a simple way to improve your home’s interior and cut the amount of energy it uses. Look for new appliances that have the Energy Star label, because they use around 15 percent less energy than non-labeled appliances. When you get new appliances, don’t just chuck the old model out with the garbage. Find out the proper dispos-al procedures for your area. Older appliances, such as refrigerators, can contain hazardous materials, includ-ing mercury and oil. Some stores will pick up and dispose of old applianc-es for you, or you might be able to recycle them with your municipality.

by Aimee Miller in Greener Prop-erties from PropertyManager.com a

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As you determine ways to make your apartment com-plex more appealing to ten-

ants, you should pay attention to the latest trends when it comes to outdoor spaces. More specifically, take note of what the American So-ciety of Landscape Architects found when they conducted their Residen-tial Landscape Architecture Trends survey for 2013. Then consider using these findings to your advantage as you work to improve your property.

Opportunities to Cook and Enter-tain Outdoors Top the List

A whopping 96% of Americans surveyed said they wanted grills outside. This was closely followed by complete outdoor living spaces, including outdoor kitchens and areas to entertain guests. If your apartment complex does not yet have a built-in barbecue area, or grills at the very least, you might be missing out on tenants who value livable outdoor spaces.

Seating is equally important ac-cording to the survey results, so make sure you have tables, chairs, or even basic picnic tables set up around the apartment complex. Installing some fire pits or outdoor fireplaces may also be the key to satisfying your ten-

ants, according to 97% of the survey respondents.

Sustainability Matters When It Comes to Apartment Landscaping

More people care about sustain-able outdoor spaces than you might have thought, and that includes landscaping. In fact, about 94% of people surveyed said they liked low-maintenance landscapes. Of course, in an apartment complex, the amount of maintenance might not directly affect the tenants, but it may affect your landscaping bill. Choos-ing plants that are native to the area can reduce the amount of work re-quired to keep them healthy, and this move would please 87% of the sur-vey respondents, too.

Nearly as many people also like the idea of having gardens that grow fruits and vegetables. In fact, more apartment landscaping plans these days are featuring gardens as a ma-jor part of their sustainable outdoor spaces. You can offer one or even a few courtyard gardens, or even win-dow boxes for tenants to grow their own food. Either way, this apartment landscaping can improve the quality of life in your complex. It often even increases the length of each tenant’s stay, since many people grow quite

attached to their gardens after put-ting in hours of work to grow food.

Lighting and Installed Seating Are Also on the Minds of Many Tenants

About 95% of those surveyed claimed lighting was important to them in an outdoor space. After all, this makes it possible for tenants to cook dinner outside as the sun goes down or even simply feel safer tak-ing walks at night. Considering how much people now value sustainable outdoor spaces, you should be sure to use energy-efficient or even solar lighting with timers and sensors to

help keep light pollution to a mini-mum.

Another common desire for out-door space is the presence of in-stalled seating. This ranges from sim-ple ledges and boulders to installed benches. You can install what you think would look best in your apart-ment complex, again paying atten-tion to sustainability by using eco-friendly materials that can stand up to your city’s climate for years.

Outdoor Recreation Amenities Are Appreciated in Modern Apart-

What Americans Want in Apartment Landscaping




mentsYou might be surprised to find

that outdoor recreation amenities, such as pools and tennis courts, gar-nered only 76% of the vote in this survey. In fact, more people – about 82% – thought having weatherized chairs outside was more important. That means the ability to cook out-side and sit comfortably, perhaps in front of a fire pit, is more important to many Americans than access to a pool.

Of course, many apartment com-

plexes are still expected to have such fun amenities, especially in warmer areas. However, apparently you should focus on getting grills and seating set up first if your apartment landscaping is missing these fea-tures. After all, sustainable outdoor spaces are of great importance to many tenants.

By Tara Armbruster in Greener Properties from PropertyManager.com a

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rented through a private owner, es-pecially if your vacation will last for an extended period. A condo rental should cost you in the ballpark of $200 per night, which totals $2,800 savings for two weeks.

• Your home is probably your most significant asset if you’re like most Americans. But with that grand house on the hill comes plenty of costs, many of which you may not need. As with a luxury car, rethink-ing the amount of luxury for a home can save you big on taxes, insurance and maintenance. The cost of main-taining a large home can be put to-ward lifestyle activities, such as trav-el and hobbies.

“Of course, these are all simply suggestions; money plays a major role in how we achieve happiness, and I’ve found through years of working with clients, a few tweaks here and there frequently yields greater satisfaction with their mon-ey,” Gorton says. “You don’t have to be on autopilot with your expenses.”

About Jeff Gorton, CPA, CFP®

Jeff Gorton is a Certified Public Ac-countant and a Certified Financial

Planner™ specializing in individual tax and retirement planning as head

of Gorton Financial Group, (www.gortonfinancialgroup.com). He is also

an Investment Advisor Representative under Alphastar Capital Management,

an SEC Registered Investment Advi-sor, and has a life and health insurance license. Gorton works with individuals and their families to create and protect their financial legacies. He specializes

in working with retirees in the areas of tax planning, benefits, retirement plan-

ning, estate planning and safe money techniques. He received his BBA in Ac-counting from the University of Okla-

homa. Gorton previously worked for 10 years as the Chief Financial Officer for a large retail organization, overseeing their accounting, benefits and 401(k)

retirement plans. p

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