valley rental housing journal november 2014

8
Advertise in Rental Housing Journal VALLEY Circulated to over 6,000 Apartment owners, On-site, and Maintenance personnel monthly. Call 503-221-1260 for more info. Rental Housing Journal Valley EUGENE • SALEM • ALBANY • CORVALLIS V Professional Publishing Inc. PO Box 6244 Beaverton, OR 97007 PRSRT STD US Postage PAID Portland, OR Permit #5460 Current Resident or WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC 3. Dear Maintenance Men: 4. Partnering With Suppliers and Contractors 5. How to Lose an Eviction Case 6. Shoptalk I n 2013, Energy Trust of Oregon incentive programs saved over $1,000,000 for multifamily prop- erty managers and owners. Successful property management requires developing a capital plan and budget that will sustain the building structure, support its func- tion for years and enhance the bot- tom line for all shareholders. Having a structured and consistent approach is critical. Budgets typically include a rea- sonable estimate of known operating expenses, as well as a plan for future capital purchases. The operating expenses portion of the budget may include varying degrees of manage- ment and maintenance of the prop- erty including; but not limited to, utility and equipment expenses. The goal of many multifamily property owners and managers is to reduce their community expenditures while seeking alternatives that may assist them with reaching their budgetary goals. Additionally, savvy condomini- um/townhome owners look for ways to decrease their monthly util- ity expenses, and understand the importance of being financially pre- pared when the unexpected happens and a faulty appliance, or water heater, needs to be replaced. Energy Trust understands these budgetary challenges, and we have developed tools and programs that may help reduce operating costs and monthly expenses. We provide and install no cost high-performance lighting, showerheads and faucet aerators to simply help reduce ener- gy consumption and to realize imme- diate savings for your managed communities. Proper capital planning requires the time-consuming collection of detailed data on a building’s condi- A Proper Capital Plan and Budget May Save Thousands of Dollars Each Year November 2014 By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon H istory of Lead Regula- tion The evolution of regula- tory changes regarding lead hazards in housing has been interesting to observe. Initially, the Environmental Protection Agency (EPA) required housing providers – sales agents, landlords, etc. – to disclose to poten- tial buyers and occupants that resi- dences built prior to 1978 may con- tain lead-based paint before the con- sumer was obligated by contract. This put housing providers in the role of consumer advocate and I person- ally spent years as a sales agent, like you, distributing the required “Protect Your Family from Lead In Your Home” brochures ; explaining the mandated disclosure form , and then retaining the completed forms for three years. This was, essentially, the only requirement of housing providers for nearly two decades – there was, and is, no requirement to test for the pres- ence of lead nor to remediate (remove) it. In 2008, the EPA passed the Renovation, Repair and Painting (RRP) regulation that impacts resi- dences, layering on top of the ’96 law. It required those doing work that disturbs at least six square feet of painted surfaces inside pre-’78 homes (or 20 square feet on the exterior) pro- vide residents with the “Renovate Right” brochure and complete anoth- er accompanying disclosure form. Building on the ’08 regulation, two years later the EPA went on to stipu- late that those doing such work must be certified (or hire someone who is) and follow specific work practices to prevent lead contamination. The fol- lowing work methods are specifically prohibited because they have been proven to create significant levels of lead dust: dry sanding or scraping, removing paint by torching or burn- ing, the use of heat guns over 1100°F, and machine-sanding or grinding without HEPA equipment. Specialized paint strippers are avail- able instead; some even render lead non-hazardous further decreasing risk to workers and residents. Safe work practice requirements include, among other things, posting of sig- nage during the project; the use of plastic sheeting to seal and prevent contamination outside the work area; and proper disposal of lead-based paint waste. The Pre-History We’ve all heard the “before 1978” line, but it turns out the year a resi- dence was constructed offers a fairly precise likelihood of whether or not Lead In Review By Cliff Hockley, President, Bluestone & Hockley Real Estate Services. R ecently our maintenance team replaced about 40 single pane windows with new vinyl double pane windows at a 10-plex we own in Portland. Fortunately, two programs exist to help us fund the project. The first is a state-run program through the Oregon De- partment of Energy, and the other is a program available through the nonprofit organization Energy Trust of Oregon. Since this simple process saved us money, I thought I would share the information. Oregon Department of Energy Program The Oregon Legislature realigned the energy tax credits (with the dis- solution of the BETC, see ORS 469 B.30) in 2013 to include the Small Premium Projects (SPP), which ben- efits landlords of smaller properties. Funded at a level of $1,000,000, this tax credit program is geared to proj- ects costing less than $20,000. Administered by the Oregon Department of Energy: (www.oregon.gov/energy/BUSINESS/ Incentives/docs/EIP_SPP.pdf) The SPP has been funded to oper- Get Oregon Tax Credits, Help the Environment, and Reduce Your Energy Bills on Your Small Rental Properties Replace Those Windows! ...continued on page 7 ...continued on page 2 ...continued on page 8

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Valley Rental Housing Journal is published monthly in conjunction with Multifamily NW and Lane Rental Owners Association for apartment owners, multifamily investors, landlords, property managers and other real estate professionals. RHJ is the business journal for the rental housing industry in the Willamette Valley.

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Page 1: Valley Rental Housing Journal November 2014

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

Maintenance personnel monthly.

Call 503-221-1260 for more info.

Rental Housing Journal Valley

EUGENE • SALEM • ALBANY • CORVALLIS

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

Professional Publishing Inc.PO Box 6244Beaverton, OR 97007

PRSRT STD US Postage PAID Portland, OR Permit #5460

Current Resident or

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC

3. Dear Maintenance Men:

4. Partnering With Suppliers and Contractors

5. How to Lose an Eviction Case

6. Shoptalk

In 2013, Energy Trust of Oregon incentive programs saved over $1,000,000 for multifamily prop-

erty managers and owners.Successful property management

requires developing a capital plan and budget that will sustain the building structure, support its func-tion for years and enhance the bot-tom line for all shareholders. Having a structured and consistent approach is critical.

Budgets typically include a rea-sonable estimate of known operating expenses, as well as a plan for future capital purchases. The operating

expenses portion of the budget may include varying degrees of manage-ment and maintenance of the prop-erty including; but not limited to, utility and equipment expenses. The goal of many multifamily property owners and managers is to reduce their community expenditures while seeking alternatives that may assist them with reaching their budgetary goals.

Additionally, savvy condomini-um/townhome owners look for ways to decrease their monthly util-ity expenses, and understand the importance of being financially pre-pared when the unexpected happens

and a faulty appliance, or water heater, needs to be replaced.

Energy Trust understands these budgetary challenges, and we have developed tools and programs that may help reduce operating costs and monthly expenses. We provide and install no cost high-performance lighting, showerheads and faucet aerators to simply help reduce ener-gy consumption and to realize imme-diate savings for your managed communities.

Proper capital planning requires the time-consuming collection of detailed data on a building’s condi-

A Proper Capital Plan and Budget May Save Thousands of Dollars Each Year

November 2014

By Jo Becker, Education/Outreach Specialist, Fair Housing Council of Oregon

History of Lead Regula-tion

The evolution of regula-tory changes regarding lead hazards in housing has been interesting to observe. Initially, the Environmental Protection Agency (EPA) required housing providers – sales agents, landlords, etc. – to disclose to poten-tial buyers and occupants that resi-dences built prior to 1978 may con-tain lead-based paint before the con-sumer was obligated by contract. This put housing providers in the role of consumer advocate and I person-ally spent years as a sales agent, like you, distributing the required “Protect Your Family from Lead In Your Home” brochures ; explaining the mandated disclosure form , and then retaining the completed forms for

three years. This was, essentially, the only

requirement of housing providers for nearly two decades – there was, and is, no requirement to test for the pres-ence of lead nor to remediate (remove) it.

In 2008, the EPA passed the Renovation, Repair and Painting (RRP) regulation that impacts resi-dences, layering on top of the ’96 law. It required those doing work that disturbs at least six square feet of painted surfaces inside pre-’78 homes (or 20 square feet on the exterior) pro-vide residents with the “Renovate Right” brochure and complete anoth-er accompanying disclosure form.

Building on the ’08 regulation, two years later the EPA went on to stipu-late that those doing such work must be certified (or hire someone who is) and follow specific work practices to prevent lead contamination. The fol-lowing work methods are specifically

prohibited because they have been proven to create significant levels of lead dust: dry sanding or scraping, removing paint by torching or burn-ing, the use of heat guns over 1100°F, and machine-sanding or grinding without HEPA equipment. Specialized paint strippers are avail-able instead; some even render lead non-hazardous further decreasing risk to workers and residents. Safe work practice requirements include, among other things, posting of sig-nage during the project; the use of plastic sheeting to seal and prevent contamination outside the work area; and proper disposal of lead-based paint waste.

The Pre-HistoryWe’ve all heard the “before 1978”

line, but it turns out the year a resi-dence was constructed offers a fairly precise likelihood of whether or not

Lead In Review

By Cliff Hockley, President, Bluestone & Hockley Real Estate Services.

Recently our maintenance team replaced about 40 single pane windows with new vinyl

double pane windows at a 10-plex we own in Portland. Fortunately, two programs exist to help us fund the project. The first is a state-run program through the Oregon De-partment of Energy, and the other is a program available through the nonprofit organization Energy Trust of Oregon. Since this simple process saved us money, I thought I would share the information.

Oregon Department of Energy Program

The Oregon Legislature realigned the energy tax credits (with the dis-solution of the BETC, see ORS 469 B.30) in 2013 to include the Small Premium Projects (SPP), which ben-efits landlords of smaller properties. Funded at a level of $1,000,000, this tax credit program is geared to proj-ects costing less than $20,000. Administered by the Oregon Department of Energy:(www.oregon.gov/energy/BUSINESS/Incentives/docs/EIP_SPP.pdf)

The SPP has been funded to oper-

Get Oregon Tax Credits, Help the Environment, and

Reduce Your Energy Bills on Your Small Rental Properties

Replace Those Windows!

...continued on page 7 ...continued on page 2

...continued on page 8

Page 2: Valley Rental Housing Journal November 2014

2 Rental Housing March Valley • November 2014

RENTAL HOUSING JOURNAL VALLEY

lead is present in its layers of paint.

According to HUD’s Office of Healthy Homes and Lead Hazard Control, homes built:

• before 1940 have a 87% chance of containing at least some lead paint,

• between 1940 and 1960 have a 69% chance of containing leaded paint,

• between 1960 and 1978 have a 24% chance of containing lead paint, and those

• after 1978 are unlikely to have lead-based paint.The reason being is that lead com-

pounds were historically added to paint as pigments, or used to improve opacity and durability. These pig-ments were implicated in child poi-sonings as early as 1904, when lead toxicity in several Australian children was traced to their porch paint. Within a few years, several nations in Europe and elsewhere began banning lead in certain household paints. Here in the U.S., a voluntary standard limited lead in interior paints in 1955, but we didn’t ban it until 1977 and even then certain levels of lead were allowed. In 2009, the legally allow-able concentration was reduced

While we were slow to enact pro-tective legal measures, some coun-tries aboard are still manufacturing and selling leaded paint. In many developing nations paint with stag-gering levels of lead are, or have until recently been, sold freely in their mar-ketplaces. Inertia is largely to blame according to Jack Weinberg of International POPs Elimination Network, a coalition of environmen-tal and health groups working to ban lead-based paint. “Lead-based pig-ments are marginally cheaper… and some argue they are more durable, more protective, or have better colors, but these claims are highly debatable and, I think, don’t hold up,” Weinberg says. “In the absence of a legal require-ment, a lot of companies just do it.”

As a result, we’ve seen foreign-made painted products reach our shores. In 2007, news broke that imported Asian toys were coated with lead paint, sparking public ire. We are, in fact, exposed to lead in many ways – through the air, water, food, contaminated soil, dust and, yes, deteriorative paints used on products such as those Asian toys. The Secretary of Health and Human Services labeled lead the "number one environmental threat to the health of

children in the U.S." back in 1991 and, of all the possible sources, old lead-based paint is the most significant source of lead exposure in the U.S.

The last drop of lead-based resi-dential paint was manufactured in the U.S. decades ago yet we are still struggling to overcome our historic use of these products. As of 2006, an estimated 22% of U.S. homes – 23.2 million of them – contained lead-based paint hazards. Calculations suggest that as many as 535,000 young children could have unsafe blood lead levels as a result.

Recent CasesThe issue of lead hazards is alive in

U.S. homes and in our courtrooms. Costly legal battles aimed, ultimately, at protecting our children through disclosure and proper work habits catch housing providers who do not comply with such requirements. There are, too, legal efforts at making U.S. companies that once sold lead-based paints accountable.

A couple recent and noteworthy examples:

• In December 2013, a California judge ordered three paint companies to pay $1.1 billion in a case that took 13 years to reach trial and alleged the manufacturers knew lead made their paint products harmful to children as early as the 1890s but still marketed and sold it to consumers without health warnings.

• In April 2014, Lowe’s settled with the EPA to the tune of $500,000 after an investigation found a handful of the big box store’s contractors were not complying with RRP requirements. The settlement also stipulates that Lowe’s will create a new compliance and training program at its 17000+ U.S. stores.

• There have also been numerous cases of housing providers being fined or sued when out of compliance with various aspects of lead-based paint in housing regulations, including here in Oregon.

The Lead-Fair Housing Nexus In an informal study of local hous-

ing providers a few years ago, the FHCO found that over a third still don’t realize it is illegal under the federal Fair Housing Act to deny housing simply because there are children in the household – even in pre-1978 properties. Neither the

potential risk to occupants if they do not know how to live ‘lead safe’ nor the concern for liability should a child be poisoned is a justification for vio-lating fair housing laws.

We’ve seen a number of cases across the country like this. Many of them, like the non-compliance cases, have resulted in very expensive rul-ings or settlements that went beyond regulatory requirements and obligat-ed those specific housing providers to remediate the lead in their properties.

Why It MattersIt’s the law and shirking these fed-

eral requirements can result in hefty fines, rulings or settlements. That is obvious, but the impetus for expand-ing U.S. regulation around lead-based paint, and the true motivation behind the obligations on the housing indus-try are two-fold:

1. Our kids are at considerable risk from lead hazards.

2. Household lead is a considerable contamination source.Lead is a harmful environmental

pollutant. Once airborne, lead parti-cles or microscopic dust settle around our homes; they get into our bodies as we breathe or swallow. The risk to children is compounded by the fact that they (and pets, too) are often on the floor where lead dust often settles and are inclined to put their hands and other objects that may be covered in unseen dust in their mouths.

Often, lead exposure has no observable symptoms and goes unrecognized but exposure, even at low concentrations and particularly in early childhood, can cause pro-found neurobehavioral problems including life-long lowered intellec-tual performance and behavioral changes. Lead exposure is associated with a multitude of conditions includ-ing Alzheimer’s and cardiovascular disease.

If it’s your child or grandchild who is poisoned, the impact is tragi-cally powerful. But even if someone you love isn’t poisoned by lead, it truly affects us all. One estimate sug-gests the U.S. forfeits $50.9 billion in economic activity annually because of IQ points lost to lead exposure. Globally, 49% of all children and 42% of adults have elevated blood lead levels, contributing to 600,000 new cases of intellectual disabilities every year, according to the World Health Organization.

One study found that with each IQ point lost, a child who has been poi-soned by lead loses an estimated 2% of their lifetime earning potential. The population-wide loss of IQ points resulting from lead exposure costs low- and middle-income countries $977 billion annually in decreased productivity. "That economic drag amounted to 1.2% of global gross domestic product in 2011, yet the cost is nearly invisible unless you crunch

the numbers according to the lead author of the study, Leonardo Trasande, an associate professor at New York University.

“If a child comes back with one IQ point loss, the parent doesn’t notice. But if 100,000 kids come back with one less IQ point, the economy notic-es,” Trasande says, adding that for some countries, the average number of IQ points lost to lead exposure is much higher than 1. Clearly, the num-bers justify devoting money and effort to the issue.

When you consider these personal and economic factors along with the fact that lead-based paint is the most significant source of such exposure and the majority of our housing stock is covered in it, you can see the justifi-cation for evolving U.S. regulatory emphasis on lead hazards in housing.

One also begins to appreciate the crucial role housing providers can (and are obligated to) play in prevent-ing unnecessary risk and loss to household residents. What’s more, housing providers can (and are obli-gated to) keep themselves and those who work on their properties safe by assuring lead-safe work practices and proper protective gear are used, because adults, too, are at risk of lead poisoning.

Living Lead SafeOne can live (and work) lead-safe,

even in pre-’78 properties! Of the housing providers we surveyed, 83% wanted to learn more about the issue and educate consumers about it. To help facilitate these good intentions, we’d like to introduce you to a non-profit partner of ours in Portland, Community Energy Project.

As a former Realtor®, I can tell you their “Living Lead Safe” work-shop is an excellent presentation for company meetings, as well as client or resident gatherings. It takes about an hour and I can tell you it is mind blowing! Visit www.communityener-gyproject.org/services/lead-poison-ing-prevention-workshops to learn more.

This article brought to you by the Fair Housing Council; a civil rights organization. All rights reserved © 2014. Write [email protected] to

reprint articles or inquire about ongoing content for your own publication.

To learn more… Learn more about fair housing and / or sign up for our free,

periodic newsletter at www.FHCO.org.Qs about this article? ‘Interested

in articles for your company or trade association? Contact Jo Becker at jbeck-

[email protected] or 800/424-3247 Ext. 150Want to schedule an in-office fair

housing training program or speaker for corporate or association func-

tions? Visit www.FHCO.org/pdfs/classlist.pdf

please v is i t us at www.rentalhousingjournal .com

Lead In Review ...continued from front page

503-391-6274CCB# 155631

Service Area: Salem, Albany, Eugene & Portland

• Patching & Repairs• Seal Coating

*Free Prompt Estimates

• Driveways• Parking Lots

Page 3: Valley Rental Housing Journal November 2014

Rental Housing Journal Valley • November 2014 3

RENTAL HOUSING JOURNAL VALLEY

Dear Maintenance Men,It won’t be long before we need to

change our clocks for Daylight Saving. I’m a bit concerned about the lights at my apartment building. I have various fixtures, sensors and timers, not one of which turns on the lights at the same time. Some don’t turn off or on at all. Any suggestions?

Burt

Dear Burt:There are two ways to effectively

control exterior lighting: 1. A timer clock.2. A photocell for detecting light

and darkBoth time clocks and photocells

have been around forever. We prefer to activate landscape lighting with a photocell as it is virtually mainte-nance free. A photocell will ensure the property has light only when it is needed and turn off automatically with the approach of daylight. Be sure the photocell located where it can “see” ambient light and not near an artificial light source.

A time clock needs constant atten-tion in order to keep up with the changing seasons and adjustments for longer or shorter nights. There is nothing more frustrating than seeing the property all lit up at 5pm and it only gets dark at 7pm or even worse; the lights turn on at 7pm and it has been dark since 5pm. Remember: the safety of your residents is at its great-est risk when it is dark and the lights are out.

Dear Maintenance Men:I’m getting ready to have one of my

rental units painted and the painter typically sprays the walls and ceiling as opposed to rolling on the paint. I’m a bit worried about my smoke and CO Detectors. I’m I being overly cautious?

George

Dear George:Overly cautious? No! We think

you are right to worry. The paint and construction dust can contaminate the smoke/CO detectors and lessen their sensitivity. It is important to either cover the detectors in a protec-tive plastic bag or remove them dur-ing the painting and construction work. While you are there, check the batteries and dates of installation. If

you remove the detectors during painting, don’t forget to reinstall them before the next resident moves in.

Dear Maintenance Men:Garbage deposals are getting me

down! I am forever getting calls to unblock them or replace rusted ones. They seem to be a source of constant problems. Are there any alternatives?

John

Dear John:The first issue may be education.

When a new resident moves into a unit; explain how to use the garbage disposal, what should and should not be put through the unit. Show them what to do if the disposal jams and where and how to use the un-jam key. (The un-jam key should be attached to the side of the disposer.) The same information should be dis-tributed to all existing residents as well.

To answer your question about an alternative to a garbage disposal: We recently met with a small Southern California company that makes an item to eliminate the garbage dis-posal unit altogether. The product is called SemperScreen and it looks just

like a standard sink drain strainer. The difference is in the strainer itself. The strainer is a fine stainless steel mesh permanently attached which will only allow water to drain and keep debris from going down the drain and into the pipes. In other words, the new drain strainer is used to replace the garbage disposal unit. Because it is permanently installed, the residents cannot remove it. The garbage disposer is removed the SemperScreen replaces it. This prod-uct can be found at: www.semper-screen.com .

Please call: Buffalo Maintenance,

Inc for maintenance work or consul-tation. JLE Property Management,

Inc for management service or con-sultation Frankie Alvarez at 714 956-

8371 Jerry L’Ecuyer at 714 778-0480 CA contractor lic: #797645, EPA Real

Estate lic. #: 01460075 Certified Renovation Company Websites:

www.BuffaloMaintenance.com & www.ContactJLE.com www.

Facebook.com/BuffaloMaintenance

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

By Jerry L'Ecuyer & Frank AlvarezDear Maintenance Men:

Page 4: Valley Rental Housing Journal November 2014

4 Rental Housing March Valley • November 2014

RENTAL HOUSING JOURNAL VALLEY

16083 SW Upper Boones Ferry Road, Suite 105, Tigard, OR 97224 503-213-1281, 503-213-1288 Fax www.multifamilynw.org

Partnering With Suppliers and Contractors

By Pam McKenna

As I walked through the booths at the Spectrum Trade Show, I was struck by the

vast amount of knowledge and ex-perience that these industry partners

bring to our business. It underscored how crucial this partnership compo-nent is to our success. The challenge can be in choosing the right supplier, understanding how to manage the process and defining the scope of work. This can often be overwhelm-ing but with a few simple steps and procedures in place you can set a standard for your community that will help you alleviate a lot of the

stress. Step one – set up your approved

vendor list ahead of time. Don’t wait until something goes wrong to engage your suppliers. Create a list of the categories of supplies and ser-vices you will eventually need to order, including emergency services. Once you have created this list you can start the process of locating the right supplier or contractor.

Step two – do your research. Multifamily NW offers a great solu-tion called MUM (members using members) Being a member with Multifamily NW gives you access to a list of industry supplier members that are in good standing with the association and the members. Being a member you also have access to other members in the industry that can provide references or feedback on suppliers. Through word of mouth you can discover the best companies for customer service and quality work.

Step three – protect your property from liability. Set minimum insur-ance requirements to protect the

property owner from potential liabil-ity resulting from labor, deliveries, and other exposures related to hav-ing contractors on site. Consider using a compliance organization that will track your vendor list ensuring every participating vendor is up to date on their insurance coverage and their credentials meet your stan-dards.

Step four – define your scope of work. A recommended way to do this for larger projects is to engage an construction project manager that can determine the extent of the work required and help to write the scope of work. If it is smaller projects, for instance exterior building window cleaning, sit down with your mainte-nance team to properly define the project to include how many stories the building is, how many exterior windows, do you expect them to clean the exterior of the balconies while completing the job, etc. Make sure to include details that may be important to note for instance if you are running a “green” building you

Pam McKennaMultifamily NW President

Evictions: Getting Rid of the Bad Tenant

Cost: Multifamily NW Members-$65

Non-Members-$105 Lunch Only-$25

Email:

[email protected] Phone: 800-632-3007

Eugene Hilton & Conference Center 66 East 6th Avenue Eugene, OR 97401

November 20, 2014

Lunch: 12:00-12:30 Class: 12:30-2:30

Join Multifamily NW and attorney Allen Gardner for an informative afternoon of learning the “ins and outs” for evicting

a bad tenant. Should you attend this class? Ask yourself the following: Do you know how to file an eviction? What do you

do if the tenant wants a trial? How do you handle common issues that are raised by tenants in FED proceedings? If you

aren’t able to confidentially answer these questions, then this class is for you.

...continued on page 7

Page 5: Valley Rental Housing Journal November 2014

Rental Housing Journal Valley • November 2014 5

RENTAL HOUSING JOURNAL VALLEY

Current Interest RatesMultifamily Mobile Home Parks Fixed rates start @ low 3%Office Retail/Industrial/MOD Fixed rates start @ mid 3%

ATTENTION COMMERCIAL PROPERTY OWNERSNeed Financing for an Investment Property?

Al Williams, American Commercial [email protected]

800.265.3860

“I listened to Al Williams.”

WARNING! Working directly with Chase Bank, Umpqua Bank, Union Bank, Opus Bank, America West, Fannie Mae, Freddie Mac, etc. can be Dangerous To Your Financial Health!You Should Be Asking Yourself These Questions: Do You Really Think Any Commercial Lender Is Working In Your Best Interests? NO ONE within those institutions is working for you. Staff employed by these lenders are making decisions based on what is in the best interests of the lender – NOT YOU!Doesn’t It Cost More to Use a Mortgage Broker? NO – in almost ALL cases I save investors thousands of dollars and weeks of frustration.

What Lending Sources Do You Use? I have access to dozens of commercial lenders with dozens of different and innovative loan products. You have choices – and are not STUCK with just one lender and whatever they have for a loan program. How Do I Reach You? I will come to you! Doubtful you will get any other banker to come right to your home or office and sit down with you to discuss financing in detail. Free Framed Print When We Meet! If you are going to need a new commercial loan anytime in the next 12-24 months, you should seriously consider moving NOW. If you are ready to start the financing process, just email me or give me a call. When we meet, I will bring as a gift a beautifully framed print of the cartoon below with your name on it – a keepsake for your home or office.

Landlords, from time to time, have to file with the appropri-ate court to evict their tenants.

This procedure is called an Eviction Action, also known as a Special or Forcible Detainer Action. Evictions are filed for nonpayment of rent, vio-lation of the lease, or failure to move after written Notice. While most of these cases are routine in nature, a landlord should be aware of follow-ing the proper procedures. Failure to do so can result in the case being dismissed and, if the tenant is rep-resented by an attorney, paying the tenant’s attorney’s fees.

Some of the more common ways to lose your case are the following. First, and foremost, is not complying with the Notice requirements of the Arizona Residential Landlord and Tenant Act. Before a landlord can even file an eviction action through the courts, the tenants must be given proper written Notice. Also, the Notice must be properly served or delivered to the tenant.

Service of a NoticeThere are only two ways to legally

serve a tenant a Notice. One is per-sonally handing the Notice to the tenant or an occupant of suitable age at the tenant’s residence. The other method is sending the Notice certi-fied or registered mail, but you can-not start the running of your Notice period until either five days after

mailing or after the tenants sign for the mailing, whichever occurs first. Posting of Notices on doors is not legal serve of Notices. Failure to legally serve the Notice will result in dismissal of the eviction.

Proper Wording of a NoticeThe language of the Notice must

also be properly worded. For instance, a five-day Notice to pay or move must identify the tenant, address of property, amount of rent past due, late charges due under the lease, and if rent is not paid, legal action will be taken to evict them. Simply writing “your rent is late, please pay” or something similar would not be adequate to inform the tenant of the allegations against them. Also, if the tenant is given a Noncompliance Notice to correct behavior or violations (e.g. unau-thorized pets or occupants, not main-taining the rental, etc.), the Notice must be very specific as to what the alleged violation is, when it occurred and any other information to inform the resident of the violation.

Non-compliance by the Land-lord

Another possible way to lose your eviction case is to not do necessary or needed repairs to the premises when requested by the tenant. Landlords have a duty to make all necessary repairs and many courts may not

evict a tenant if the landlord deliber-ately or negligently does not do these repairs. Tenants can claim retaliation by the landlord for failure to make repairs and the remedy is a defense to the eviction, plus two month’s rent or actual damages, whichever is greater.

Suing After Regaining Pos-session

Other possible defenses are the tenant has moved and no longer occupies the rental. An eviction is only to regain possession of the rent-al property and if the tenant has moved and returned keys, there is no issue of who is entitled to possession for the court to determine.

Be Professional, Be Prompt, Be Prepared

An unwritten defense is not being prepared when you come to court, not having witnesses who have per-sonal knowledge of the violation, being rude or argumentative to the judge. The golden rule applies – “be professional, be prompt, and be pre-pared”.

Andrew M. Hull, Esq.HULL, HOLLIDAY &

HOLLIDAY, PLCwww.doctorevictor.com

602-230-0088

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

How to Lose an Eviction Case

www.rentalhousingjournal .com

Page 6: Valley Rental Housing Journal November 2014

6 Rental Housing March Valley • November 2014

RENTAL HOUSING JOURNAL VALLEY

Whether you have several vacancies and upcoming notices to lease or you are

down to that last “net to rent,” you must still qualify your prospects in order to ultimately secure the rental. How you remember and record the needs and preferences of your callers and visitors, is just as important as obtaining the information in the first place. Following is a question that came up on the topic of guest cards:

Q: My property supervisor is

really pushing us to use guest cards. However this whole “qualifying thing” makes me feel uncomfortable, like I am invading someone’s priva-cy. I have a pretty good memory and don’t really think it’s necessary to write down everything on a guest card. What’s the big deal anyway?

A: I commend you for being

respectful of the privacy of others. This demonstrates professionalism and consideration on your part. However, it is possible to note the preferences and personal informa-tion of your prospective renters without being intrusive. Remember

the old adage: “The shortest pencil is longer than the longest memory.” No matter what your recall ability is, you will not be able to memorize all the needs and preferences of every client, along with their name and contact information.

Try asking each one of your pro-spective renters for “permission” to question them about their needs in order to provide them with the best possible service. It might sound something like this: “Is it okay if I ask you a few questions to find out what you’re looking for in your new home? - I want to help you pick out the apartment that will best meet your needs!” Then, at the end of the phone contact or visit, once you have established a rapport, it would be perfectly natural to ask for their email, phone number or mailing address so you can keep in touch with them.

Remember: You are in the “cus-tomer service” business. You can’t meet the needs of your customers if you don’t know what they are. (Neither can anyone else in your office if your phone callers show up and you are not there.) You can’t fol-

low up on the interest of your clients either, if you don’t have their contact information. Think of a guest card as a “tool.” When used properly you will find that it is a professional, organized method for learning everything you ever wanted to know about your prospects, but were afraid to ask!

If you have a question or concern that you would like to see addressed next month or if you would like to inquire about a shopping program and leasing training, please ASK THE SECRET SHOPPER by making contact via e-mail. Your questions, comments and suggestions are ALWAYS welcome!

ASK THE SECRET SHOPPER

Provided by: SHOPTALK SERVICE EVALUATIONS

Phone: 425-424-8870E-mail: [email protected]

Web site: www.shoptalkservice.com

Copyright Shoptalk Service Evaluations

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

PROPERTY NAME

NAME

CITY STATE ZIP

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Page 7: Valley Rental Housing Journal November 2014

Rental Housing Journal Valley • November 2014 7

RENTAL HOUSING JOURNAL VALLEY

Partnering ...continued from page 4

Windows! ...continued fromfront page

may have requirements for products that can be used at your community.

Step five – take it out to bid, with a standard written scope of work, providing all suppliers the written scope. This allows for a more precise and fair bidding process relying on an “apples to apples” comparison of price based on an identical scope. Be clear on your change order process in the event that the job requires additional work.

Step six – create a bid comparison sheet. Compare the bids side by side with your property owner, your supervisor or your team. This is an efficient way to get approvals pro-cessed and documented, especially for larger projects.

Step seven – execute a contract.

This is an important document so be sure to review the contract before signing it. Have your project man-ager or legal department review the contract if necessary. Are you the right person to sign it based on your Property Management Agreement? What are the specific terms of the contract? Does it have an auto renew-al written into the contract? Often we get in a rush to push work through and can overlook unfavorable terms. Take the time to ensure what you are putting into place is the best for your property owner.

Step eight – clarify the payment process. What are the terms of pay-ment for your property? Communicate this to your contractor or supplier so they understand the

process. If you are processing a draw request for capital improvements this can often delay the timing of payment. Being transparent up front is always a benefit to both parties.

Step nine – inspect what you expect. Follow up and inspect the work before signing off on the work. If you are not satisfied with the work, allow the contractor to come back and make it right. One of my biggest pet peeves is managers that want to fire a vendor for not meeting their expectations before they make them aware they aren’t happy with the work performed. Give your industry suppliers the same respect we would want to receive.

Step ten – build partnerships. Long term partnership will work in

your favor. When you have built solid relationship with an industry supplier they will better understand your expectations for future work. You will spend less time explaining what you expect the next time around. Long term partnerships build dependability, trust and confi-dence.

These steps will help in building industry partnerships resulting in better solutions and costs savings. This valuable partnership is well worth your time and energy, allow-ing you to tap into the vast knowl-edge and experiences of our great industry suppliers and contractors.

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

ate for at least the next 12 months, commencing on 1 July 2014. In order to be eligible for these tax credits you must:

1. Be a trade, business, or rental property owner with a business site in Oregon or be an Oregon non-profit organization, tribe or public entity that partners with an Oregon business or resident,

2. Own or be the contract buyer of the project, and

3. Use the equipment or lease it to another person or Business in

Oregon

In other words, rental homes, small rental properties, and busi-nesses are eligible to receive these credits.

Some of the energy efficient cate-gories that are included for residen-tial landlords are:

• LED Outdoor Lighting

• Building Envelope Thermal Improvement ( i.e. Windows)

• Solar Thermal Water Heating

• Adjustable Flow Irrigation

Pumping

• Energy Improvements to Commercial Greenhouses

• Heat Pump Service/Hot Water Heating

• Agricultural Irrigation System Improvement

• Compressed Air Systems Components

• High Performance Homebuilding

• Boiler-vent Dampers

• Premium Efficiency Electric AC Equipment

• Industrial Piping Insulation

• Direct-fired Radiant Heating in High Volume Spaces

• Ductless Heat Pumps with Variable Refrigerant Flow This program is also available to

homebuilders. They are allowed a $12,000 credit for new home con-struction if they include these energy conservation methods:

• The building shell must meet specified heat loss requirements

• The house must be verified by ENERGY STAR ® Homes Northwest program

• The HVAC system must be high performance

• A renewable energy system must be installed

Homebuilders must apply for the tax credit (not the new homeowner).

Typically you will want to prequalify your property upgrades through the SPP desk before you

start.Energy Trust of Oregon

A number of cash incentives are offered through Energy Trust of Oregon. Go to (energytrust.org) to investigate further.LED Lights:

For a limited time during 2014, Energy Trust of Oregon can help landlords save

energy and money with LED light bulbs and light fixtures. When you purchase from a distributor partici-pating in the Lighten Up with LEDs promotion, you can apply at order time to have your distributor instant-ly reduce the purchase price of quali-fying LED lamps by the Energy Trust incentive amount.

Promotion incentives are avail-able for business customers with an eligible commercial, industrial or multifamily (2+ units and for com-mon area lamp installs only) sites in Oregon that receives electrical ser-vice from Portland General Electric or Pacific Power.

For more Energy Trust Multifamily incentives log into this

website: http://energytrust.org/library/forms/

BE_MF_Incentive_Booklet.pdfThere are many ways that you can save money as you modernize and

upgrade your rental property. I encour-age you to discover the tax credits and

cash incentives that are available to you if you own property in the Portland

Metro area.

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

Page 8: Valley Rental Housing Journal November 2014

8 Rental Housing March Valley • November 2014

RENTAL HOUSING JOURNAL VALLEY

Proper Capital Plan ...continued from front page

tion and its deficiencies. Our energy advisors collect this data for you by providing a no-cost walkthrough survey and site evaluation to identi-fy building efficiency opportunities within common areas, and within owner-units, to determine where the largest savings potential exist for the complex and the owner. The benefit of engaging Energy Trust resources, services and cash incentives is through delivering substantial cost savings and efficiency gains, reduc-ing financial and operational costs, and providing long-term benefits to all shareholders.

Energy-efficient buildings pro-duce real savings, which fall directly to the owner’s bottom line. Improving buildings’ energy effi-ciency also enhances property value and significantly reduces operating costs, sometimes by as much as hun-dreds of thousands of dollars a year.

To learn about our cost-saving pro-grams and cash incentives for multi-

family properties, visit our website or contact us at multifamily@energytrust.

org.

EUGENE • SALEM • ALBANY • CORVALLIS

VALLEY

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