Metro ( Portland ) Rental Housing Journal January 2015

WWW.RENTALHOUSINGJOURNAL.COM • PROFESSIONAL PUBLISHING, INC PORTLAND/VANCOUVERPublished in association with: METRO Multifamily Housing Association; Rental Housing Association of Oregon; IREM & Clark County Rental Association

January 2015Rental Housing Journal Metro

2. Commercial Property Winterization6. RHA Oregon Looking Forward to a New Year! 8. Staying Connected in a World of Change9. Fair Housing Enforcement10.U.S. Investors Favor Renting Over Flipping According To

Auction.com Real Estate Investor Activity Report12. Innovators Beware: Dangerous Intersection Ahead15. Multifamily Green Light16. Secret Shopper17. Property Management Reference Checks…Are They Really Necessary?

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

Maintenance personnel monthly.

Call 503-221-1260 for more info.

Even first-time buyers with low down-payments can expect to pay just 17 percent of their

income toward mortgage payments as rents soar

• Home buyers should expect to spend 15.3 percent of their in-comes on mortgage payments for a typical home. Renters should expect to pay twice as much -- 29.9 percent of their median incomes -- to rent.

• Likely first-time, 23-to-34-year-old buyers should expect to spend 17.4 percent of their monthly income on house payments. Historically, they spent about 22.5 percent of their income to pur-chase a home.

• It was 30.8 percent more afford-able to buy a home in the third quarter than it was in the pre-bubble years (1985 -1999). It was 19.8 percent less affordable to

rent, compared to the pre-bubble years. It's more affordable to buy a

home now in most U.S. metros than it was 15 years ago, even for millen-nials putting down less money on a home, according to a Zillow analysis of third quarter income and home value data. Renters, however, con-tinue to pay an increasing share of their income to their landlords as

...continued on page 7

Five Tips to Full OccupancyBy John Wilhoit Jr.

In multifamily property manage-ment, there is always more to do, but there are certain things that

must be done. In the effort to main-tain full occupancy, these five tips are in the “must be done” category.1. Renewals!

The straightest line to maintain-ing high occupancy in multifamily is focusing consistent attention on renewals. Ignoring this makes main-taining full occupancy near impossi-ble.2. Be Ready! Never show a unit to a potential ten-ant that is not ready to occupy. This includes “almost ready” and “gonna be ready next week” multifamily units. It’s either ready to occupy or… wait.3. Know Thy Competitors!

Know where you can compete and where you cannot. Wendy’s res-taurant has tried many times to get

in on McDonald’s breakfast revenue. They just cant do it. Know thy com-petitors and what concessions they are offering in the present tense. Leasing agents should know ameni-ties of competitor properties and how/where your property can out-perform. Example: older units almost always have greater square feet than newer product. Accentuate the positive!

4. Social media is a main-stay! Integration of Internet based adver-tising/media is a must no matter how small the multifamily market. The renter market is younger people (still). Young people are glued/stuck/fastens to their smart phones…. smart phones with con-nectivity to available apartment

Buying Twice as Affordable as Renting Says Zillow Study


Professional Publishing, IncPO Box 30327Portland, OR 97294-3327

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PAIDPortland, OR Permit #5460

By Devan Gilbert, Staff Writer, Rental Housing Journal

Rumor has it in the marketing and advertising world that print advertisements are out-

dated and inefficient. The numbers, however, say otherwise. It’s time to squash this misinformation and get to the truth about the power of the print.

The younger generation doesn’t read print anymore:

False. Many like to claim that print advertising is incapable of reaching the younger generation, but research proves differently. While social media is an effective way to target the 18-30 year old demograph-ic, it is not the only way.

National Public Radio reported a study that found a quarter of 18-24 year olds had read a newspaper within the past 24 hours. The New York Times announced that 10 per-cent of its hard copy subscribers are between the ages of 18 and 24. According to Mediamark Research and Intelligence, magazine reader-ship has increased by 4.3 percent in the past five years. The Association of Business Information and Media Companies reported that 96 percent of business-to-business clients still read print publications. If businesses made the fateful decision to disre-gard print advertising all together, they would be disengaging from a

Is Print Advertising

Dead? The Evidence Says No!


2 Rental Housing Journal Metro • January 2015

RENTAL HOUSING JOURNAL METRO

By Cliff HockleyPresident, Bluestone & Hockley Real Estate Services

It was cold, re-ally cold. Let’s just say that it

was below freezing. News reports had been reporting for hours that the roads were icy and that everyone would be better off staying home.

Our property managers and maintenance team had been prepar-ing for days for this cold snap. Property inspections had been scheduled to make sure that all rent-ed and vacant commercial spaces we managed would be weatherized.

Nevertheless we had a few prob-lems.

First off, the ice storm downed tree branches and trees. This meant that many of our buildings lost power (and no power means no heat and a higher likelihood of frozen pipes). At one of our smaller two-story buildings the waterlines in the attic were not insulated and broke. When the thaw came a couple of days later, water was everywhere and we had to relocate a couple of tenants for a week until we dried things out.

Finally, to add insult to injury, a riser froze in the sprinkler room of one of our retail strip shopping cen-

continued on page 3

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Commercial Property WinterizationHow to Prevent Winter Emergencies

The Real Deal: A Worst-Case Scenario

Rental Housing Journal Metro • January 2015 3


Winterization ...continued from page 2

ters. When that began to thaw out we had a huge problem with flood-ing and no fire protection. The Fire Marshal learned about this (because an electronic monitoring alarm went off) and insisted that we post a 24-hour fire watch.

Did I mention that these events occurred after we prepared all of our properties for the cold snap and went through our checklist ahead of time?

Before the StormFor reference, I have summarized

that checklist for use at your proper-ties.Winterization Checklist

• Fire sprinkler systems:

• Dry systems: check operation of air compressors/gauges and verify the system is completely drained down. Note: if a water flow fire alarm is received on a dry system and not due to an actual fire, the water flow is oftentimes caused by a compressor failure and therefore the system will need to be drained down once the compressor is repaired or replaced.

• Wet sprinkler systems: check to ensure they have antifreeze

in them.

• Vacant tenant spaces:

• Those with operable HVAC systems: set the thermometer to at least 40 degrees.

• Those without operable HVAC systems: provide space heaters to maintain a temperature of at least 40 degrees.

• Fire riser/valve rooms: verify that the heat is turned on to at least 40 degrees to prevent freezing pipes.

• Irrigation system: verify that the landscape contractor has fully drained down the system to pre-

vent freezing pipes.

• Exterior water faucets (hose bibs): shut off the water source, drain and cover with insulated covers.

• Basement crawl spaces: inspect to ensure exposed domestic wa-ter lines are insulated to prevent freezing. Close any openings ex-posed to the outside, consider in-sulation, and/or a heat source.

• Canopy/soffit crawl spaces: in-spect to ensure that exposed do-mestic water lines are insulated to prevent freezing. Close any openings exposed to the outside, consider insulation, and/or a heat source. Refer to the above regard-ing canopy fire sprinklers.

• Snow plowing/sanding/shovel-ing/de-icing service: contact the landscaping and/or parking lot sweeping companies to arrange for sidewalk, parking lot and drive lane snow services. Define the scope/level of service ahead of time and arrange for auto-deploy-ment.

• Store snow shovels, a supply of granular de-icer and a spreader onsite so that the maintenance staff is able to clear snow on the sidewalks.

• Roof drains/downspouts: ensure that roof drains and downspouts are clear and in working order so that snow melt is able to appropri-ately drain from the roofs.

• Disconnect all outside hoses: any-time outside weather is freezing all hoses on the outside of the building should be disconnected.

How to RespondOnce the snow and ice hits, ten-

ants may be calling to report broken pipes, property conditions and other issues. It is important to have an office open and staff on standby to receive those calls and coordinate additional services. Verify that your snow service vendor has in fact dis-patched a crew to your property. Maintenance staff needs to be prepo-sitioned with snow blowers, chain-saws and vehicles with studded tires allowing them to travel to properties so they can provide the required ser-vice. You may want to consider hav-ing a supply of sleeve clamps or “Shark Bite” couplings on hand for repairing pipe breaks in addition to a heat gun to melt frozen pipes.

If the snow is very heavy and icy crews need to be dispatched to clear the snow from buildings with flat roofs, in particular the drains need to be cleared so the water can drain off the roof as the snow melts instead of leaking into the tenant spaces. This is important because the weight of snow and ice can stress the roofs and cause them to cave in. Additionally, you also need to keep the air han-dlers clear of snow. If snow blocks the air flow it stresses the compres-sors and then you can’t generate heat either.

continued on page 4



homes.5. Two-way communication! Leasing Agents are far from order takers- they are the front line repre-senting your asset. A potential ten-ant coming to your Leasing Office is looking for a place to live and insight on the lifestyle represented. A big part of leasing, then, is to dia-logue and convey to potential ten-ants what they are buying.

This is accomplished best by cre-

ating two-way communication. Leasing Agents should be asking open-ended questions that draw information from potential tenants to better understand their needs and wants. This allows Leasing Agents to provide information on features and benefits offered by the develop-ment that meet potential customers lifestyle desires. People may look for features, but they buy benefits. The only way to know what benefits

they are looking for is to ask.

Multifamily Insight is dedicated to assisting current and future multifami-

ly property owners, operators and investors in executing specific tasks

that allow multifamily assets to operate at their highest level of efficiency. We

discuss real world issues in multifamily management and acquisitions. This blog is intended to be informational

only and does not provide legal, finan-

cial or accounting advice. Seek profes-sional counsel. We discuss best practic-

es in multifamily management and methods related to how to buy apart-

ment complexes. Our focus is sharing strategies and tactics that can be imple-mented and measured. For more infor-

mation, visit: http://www.Multifamilyinsight.com

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PreparationPreparation is the name of the

game. The more you inspect, plan and prepare for catastrophe the more likely it is that you and your proper-ties will survive them with minimal damage. Make sure your documen-tation is well organized with prop-erty maps, and the locations of water shut offs and roof drains are easily available for you and your staff to access. Also, make sure to have 24-hour maintenance staff, plumb-ers, electricians and emergency response contractors’ phone num-bers in your cell phones to speed up your response. Finally, you will need easy access to your property insur-

ance agents just in case you have a loss and need repair approvals and checks right away.

Clifford A. Hockley is President of Bluestone & Hockley Real Estate

Services, greater Portland’s full service real estate brokerage and property man-

agement company. Founded in 1972, Bluestone & Hockley’s staff totals near-ly 110 employees, including 20 licensed brokers. The company’s property man-

agement division serves commercial buildings, apartments, condominium

associations and houses in the Portland / Vancouver metro area, while the bro-kerage division facilitates both leasing

and sales of investment properties throughout Oregon and Washington.

Cliff earned a degree in Political Science from Claremont McKenna

College and holds an MBA from Willamette University. He is a Certified Property Manager and has achieved his

Certified Commercial Investment Member designation (CCIM).

Bluestone & Hockley Real Estate Services is an Accredited Management Organization (AMO) by the Institute of Real Estate Management (IREM).

Cliff is a member of the Institute of Real Estate Management and was named

Certified Property Manager of the year in 2001 and 2003. Cliff is a frequent contributor to industry newsletters. Bluestone & Hockley offers custom-

ized brokerage, property and asset man-agement, as well as maintenance servic-

es to property owners and investors throughout the Portland/Vancouver

metro area. The company’s full-service approach benefits busy property owners

and investors, who know they can count on Bluestone & Hockley for high quality real estate services start to fin-

ish.

Winterization ...continued from page 3

Five Tips ...continued from front page

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Print Advertizing Dead ...continued from front page

massive list of potential clients. Multimedia is the only way to get

readers to spend with my company.False. A December 2012 Valassis

survey was conducted, focusing on the connection between print adver-tisements and the spending habits of the generations born in the 1980s and 1990s. Here is the break-down of the results.

• Over half said they would spend less money if they didn’t look at print ads.

• 91 percent said they used coupon cutouts from print advertisements to save money.

• 51 percent admitted that print ads inspire their spending habits.

• 30 percent said they refer to online websites seen in print ads to obtain more information

• 87 percent use print to choose a restaurant. Print ads make it easy to target

certain demographics. Instead of throwing an advertising banner on Facebook or Twitter, you can send magazines, flyers or catalogs to homes in certain areas. Nordstrom, a billion dollar company, still spends a pretty penny on print advertising. Strategically, different versions of catalogs are printed and are distrib-uted according to how much a spe-cific customer spends annually and which departments they shop in. Nordstrom is able to target where and who its catalogs should be

mailed out to. Finding the appropri-ate audience for a company’s adver-tising is made easy with print result-ing is less wasteful marketing spend-ing and increased profits for a com-pany.

Why should I use print ads? Large companies aren’t using them anymore.

False. Nordstrom isn’t the only company not falling for the rumors. In 2011 Nike spent $113 million on advertising that did not involve the Internet. Google spent $1 million on non-internet advertising that year as well. We all know these companies have some of the most brilliant mar-keting teams in the world, which is exactly why they are still using print advertisements. Madison Hildebrand, a star of the Bravo show, “Million Dollar Listings,” has had massive success as a Realtor and is well-known by most television view-ers and Internet users. However, it should not be assumed that every potential client uses the Internet or watches cable TV. Mr. Hildebran knew this and recently advertised himself in a four-page spread in Homes and Land magazine. If busi-ness thriving people and companies are still using print advertisements then why shouldn’t everyone else?

What makes print ads “work”?

Great question. As stated before, print is easy to target. People also

tend to pay more attention to mate-rial they are subscribed to rather than a pop-up ad or an ad interrupt-ing their music on Pandora. Websites tend to be skimmed quickly, adver-tising on TV or on the Internet is only there as long as it is paid to be there. A magazine tends to find a home on a coffee table or in a den-tist’s office where it is picked up and sifted through by dozens of people over several months. The Internet these-days is full of scams and fake “news”. Print advertisements are more trustworthy to potential cus-tomers. The Internet has helped bring us a fast-paced world. Many people turn to the Internet to accom-plish something quickly and effi-ciently, but that is not necessarily the best place for an advertisement. Can you recall the last advertisement that popped up on your computer screen? What about the company that was advertising itself? Most likely not, and you are not alone. These ads don’t pique most people’s attention. It is not uncommon for somebody to unwind by reading a magazine or newspaper. In a relaxed environ-ment is where information, in this case an advertisement, will be noticed.

New advertising techniques are always better.

Wrong again. “Out with the old, in with the new” shouldn’t apply to everything. People may argue that spreads with advertisements are flipped past, happens to the hun-dreds of emails consumers receive a day titled “Cyber Monday sale” “Going, going, gone” or “All orders over $50 take $5 off!” They go direct-ly into the deleted items folder. Although the saying “print is dead”

has been echoing through the adver-tising world, research shows differ-ently. Penn State conducted a study, that concluded that print ads stick with customers more than online ads. Print is also an advertising tech-nique that can stimulate multiple senses. Take sample perfume ads in magazines, or shopping catalogs, or sample textures in home improve-ment magazines and pamphlets. A potential customer is not going to be feeling, or smelling anything through the Internet. By stimulating senses, an advertisement becomes more interesting and memorable.

Internet and multimedia advertising is important

True. Although print advertising continues to prove itself in the mar-keting world, other forms of adver-tising are important as well. Many print ads include the company’s website to provide more informa-tion. Integrated marketing programs have been proven to be extremely successful if correctly executed and almost always involve print ads.

The use of print advertising is increasing.

True. The biggest myth of all is that print advertising is quickly slip-ping through the cracks. This couldn’t be more wrong. According to Media Radar, the medical and pharmaceutical, home furnishings, technology, and beverages categories have all published more print ads than the year before. Ralph Lauren, Chanel, Calvin Klein and Louis Viton amongst other luxury brands have dramatically increased their print ad spending since 2012.

BREAKING NEWS!!

Effective January 1, 2015, Jancyn is acquiring Shoptalk and they will serve your employee evaluation needs. It has been my extreme pleasure to work with all of you over the past 20 years. Yet, it is now time for me to move onto my next great adventure. I am willing to offer leasing training on a limited basis, as an independent consultant. However, I will no longer be involved in secret shopping. For now, your contact at Jancyn will be Vicki Dempsey, VP of Sales & Marketing and a managing owner. You can reach Vicki at: 408-267-2600 ext. 300 or [email protected]. I will be working closely with the Jancyn team to help ensure a smooth transition.

Thank you for trusting me with your employee evaluations over the years, and now with the transition moving forward. Wishing you joy, peace, and prosperity in 2015!

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President Elizabeth Carpenter • President Elect John Sage • Past President Phil Owen • Vice President Robin Lashbaugh • Secretary Lynne Whitney • Treasurer Elaine Elsea • Office Manager Cari Pierce

10520 NE Weidler Portland, OR 97220 (503) 254-4723 • fax (503) 254-4821 [email protected] • www.rhaoregon.org.

Liz Carpenter RHAOregon PresidentPresident’s Message:

January is here already and the start of a new year for all of us. This is the time of year where most of us look back on the past year and reflect on our accomplishments and plan for the coming year. I have been looking forward to the New Year with excitement. As the President Elect of RHA Oregon in 2014, I was on the front lines as we made chang-es to our organization to get us poised for the future. The amount of time and effort that each of your board members put forth shows their dedication and passion for RHA Oregon and for all of us as rental property owners. When we had our board retreat in November to plan for the coming year, the excitement and passion was a pres-ence that you could feel in the room. This excitement and passion gives me what can only be described as a “Warm and fuzzy feeling for the future”.

As we start the New Year, I am taking over as President of RHA Oregon from President Elizabeth Carpenter. She has done a great job of leading us thru a time of change

for our organization and I have been privileged to be right there with her to learn and observe. My heartfelt thanks to her for the time and com-mitment that she has given to RHA Oregon. The foundation that was laid by her leadership holds great promise for our future growth. Your board of Directors also bring a wide variety of knowledge, talent, and passion to the table each and every meeting. Their support and commit-ment will make my job an easy one. Our Office staff are knowledgeable, talented and excited about working with our members and board to con-tinue RHA Oregon as a premier organization supporting rental prop-erty owners. Thanks to Teresa Carlson, Suzanne Fullerton, and Pam Van Loon for their dedication and work and to Office Manager Cari Pierce. Cari has already became an invaluable asset to me. Their skills are on display daily at the RHA Oregon office.

So what does the future hold for RHA Oregon? That is the million dollar question and one of the most exciting things about being a part of

this organization. We don’t know everything that may be coming our way as rental property owners this next year. Will there be more changes in law that effect how we do busi-ness? Will the current laws and rules become clearer in how they are applied? Thankfully, we have some-one keeping us informed about what is going on and what could be com-ing up at the legislature. Of course I’m talking about our lobbyist Cindy Robert. What a great job she does for us throughout the year. Thank you Cindy!!!

Before I forget, be sure to check out and attend RHA Oregon educa-tion classes that are offered several times each month and in several locations for your convenience. Katie Poole-Hussa is taking over as Chair of the education committee, so I am really excited about what we will be offering for classes in the coming months. Be sure to check our web-site, www.rhaoregon.org for class offerings, times and locations.

Not to be missed either is the New Member/Mentor sessions. These sessions are held every fourth

Thursday of the month. Do you want to know how to get the most out of your membership? Are you a new rental owner who has questions about being a rental property owner? Come to our next session on January 22 at RHA Oregon office starting at 6pm.

Well, since my space is limited I will have to wrap this up for now. Just wanted you all (My Southern Upbringing coming out), to know that I am very grateful to be on the board and working with a great bunch of creative, talented, and pas-sionate people in the coming year.

Sincerely John Sage

RHA Oregon Looking Forward to a New Year!



Zillow Study ...continued from front page

rents soar and incomes remain flat.On average, U.S. home buyers

making the nation's median income and purchasing the typical U.S. home spend 15.3 percent of their income on their monthly house pay-ment, down from the historical norm of 22.1 percent during the pre-bubble period from 1985 to 1999. On aver-age, U.S. renters spent 29.9 percent of their monthly income on rent in the third quarter of 2014, up from 24.9 percent historically.

Younger buyers, earning less money in many areas and making smaller down payments on a home, should expect to spend slightly more of their income on mortgage pay-ments – 17.4 percent. Homes for younger buyers remain affordable thanks to continued low mortgage interest rates and their tendency to shop for less expensive homes.

Continuously rising rents across the country could drive more people into the home-buying market, but they also make it more difficult for first-time buyers to save for a down payment. Washington, DC renters can expect to spend 27.1 percent of their income on rent, up from 16.2 percent historically. In Miami, rent as a percentage of income has risen

from 26.5 percent before the bubble to 44.5 percent currently.

"Despite rising home values, home ownership remains very acces-sible for buyers that can scrape together a down payment – even if that down payment is relatively modest – find a home to buy and secure financing," said Zillow Chief Economist Dr. Stan Humphries. "But what keeps me up at night is the fact that it still remains so difficult for so many potential buyers to make those

particular stars align, largely because renting is so unaffordable these days. It's very difficult to come up with a down payment when so much of your monthly paycheck – especially on an entry-level salary – is going to your landlord instead of into your savings. Buying conditions are get-ting better every day, and in time the allure of fixed housing payments and building wealth through home equity will draw more buyers out of rentals and into home ownership."

Home ownership rates in the U.S. have steadily declined, even as the housing market has recovered, in part because millennials have delayed their entry into the housing market. But it is likely that by the end of 2015, millennials (aged 23-34) will overtake Generation X as the biggest group of U.S. home buyers, a transition aided by widespread home affordability.

Metro Area Q3 2014 Me-dian Household Income

Zillow Home Value Index

% of monthly income devoted to mortgage payments in Q3

% of monthly income devoted to mortgage payment for first-time home-buyers in Q3

% of monthly income devoted to rent in Q3

United States $53,620 $176,500 15.3% 17.4% 29.9%New York, NY $69,337 $381,600 25.6% 30.6% 40.5%Los Angeles, CA $60,650 $531,000 40.8% 50.7% 47.9%Chicago, IL $62,652 $188,200 14.0% 16.2% 31.5%Dallas, TX $61,310 $148,400 11.3% 14.5% 27.7%Philadelphia, PA $64,823 $202,700 14.6% 18.1% 28.8%Houston, TX $59,953 $150,300 11.7% 15.0% 29.4%Washington, DC $92,610 $359,300 18.1% 24.0% 27.1%Miami, FL $47,896 $205,200 19.9% 21.2% 44.5%Atlanta, GA $59,927 $151,900 11.8% 15.2% 24.1%Boston, MA $75,059 $362,700 22.5% 26.3% 34.1%San Francisco, CA $77,409 $689,900 41.5% 43.3% 45.9%Detroit, MI $52,694 $113,500 10.0% 10.6% 24.1%Riverside, CA $54,085 $277,900 23.9% 28.8% 36.4%Phoenix, AZ $53,487 $193,700 16.9% 20.9% 27.3%Seattle, WA $70,352 $333,700 22.1% 27.3% 30.8%Minneapolis, MN $69,569 $213,100 14.3% 17.7% 26.1%San Diego, CA $63,607 $466,100 34.1% 42.9% 42.5%St. Louis, MO $54,746 $129,100 11.0% 12.5% 24.1%Tampa, FL $46,050 $145,400 14.7% 14.7% 32.4%Baltimore, MD $72,010 $241,800 15.6% 19.0% 28.5%Denver, CO $64,120 $271,200 19.7% 25.4% 32.9%Pittsburgh, PA $51,668 $123,800 11.2% 11.7% 26.6%Portland, OR $60,071 $274,100 21.2% 28.3% 30.5%Sacramento, CA $59,161 $325,800 25.6% 31.1% 32.2%San Antonio, TX $51,884 $144,300 12.9% 15.1% 29.6%Orlando, FL $48,905 $168,100 16.0% 19.7% 32.1%Cincinnati, OH $55,093 $135,900 11.5% 13.9% 26.0%Cleveland, OH $49,842 $120,600 11.3% 13.9% 27.7%Kansas City, MO $58,212 $137,400 11.0% 13.2% 24.2%Las Vegas, NV $51,609 $181,600 16.4% 19.3% 27.5%San Jose, CA $99,230 $813,500 38.2% 43.7% 37.9%Columbus, OH $55,836 $144,300 12.0% 14.1% 27.0%Charlotte, NC $55,332 $155,900 13.1% 15.3% 26.3%Indianapolis, IN $55,238 $128,100 10.8% 13.5% 25.8%

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Staying Connected in a World of ChangeAs I begin my ten-

ure as 2015 Board President for Multifamily NW, I reflect back upon a career of 23 years in

the real estate management industry. I cannot help but think how so much has changed – and yet some things remain consistent to this day. I have witnessed an incredible evolution in technology and its impact upon how we perform our jobs, deliver service, transmit information/data…and simply communicate between with one another. Today presents a differ-ent world in so many ways.

Now, perhaps more than ever, as professionals we must keep pace with a rapid rate of development and change that is re-defining tools that help us perform our daily tasks and attain business objectives. As such we have come to rely upon new

ways of communicating and con-necting.

When I began my career in 1991, the telephone was still a primary device of connecting. Mobile phones were still in a stage of relative infan-cy – anyone recall the “brick” phone? Email was just being introduced – but we still relied heavily on voice-mail. I recall my first flip-phone with the retractable antenna. A couple years later I discovered Palm Pilot – great for organizing, but no phone! Then the Blackberry offered some-thing amazing: combing a phone and e-mail! All this paled in com-parison to the “smart phone” of today: phone, email, texting, music, photos, and, of course, apps! All revolutionary advances that changed, and continue to change, the way our culture communicates. Changing the way we “connect.”

Today we co-exist in a world of

“screens.” From ultra-television to iPads to iPhones to iWatches, our world of communication and man-aging our daily lives is becoming - though much faster – somewhat smaller, insular, and less interactive in ways.

Along with staying current with such advances, we must not lose sight of “how” we connect.

In this wave of development and tech advancement, it is critically important to remember those basics that do not change and remain cru-cial axioms to this day…and hope-

fully always will.Communication is “connection”

and we must use this tool wisely. Whether motivating our employees, greeting customers or servicing cli-ents, we cannot discount the power of a handshake, a hand-written note, or a sincerely voiced commitment. No form of electronic “talking” can convey all that is transmitted with a “tone of voice,” body language or even a simple facial gesture. We may be the most “tech savvy” culture in

Scott Arena President, Multifamily Northwest

continued on page 11

The Consistency Guest Card is a great form for landlords, busy with pro-spective renters regularly inquiring about vacancies. Diligent use of this form is a smart tool to keep track of potential applicants and provide the level of infor-mation that highly quali-fied applicants expect. Additionally this form helps ensure that all inter-actions with potential rent-ers follow the same tem-plate. This form allows for the easy organization and written proof of how all applicants are asked the same questions or given the same instructions over the phone, experience matching property tours, and receive identical rent and deposit quotes. The audit trail this form creates can be very useful support-ing and demonstrating your lawful application process should it ever be questioned.

DATE __________________________________________ TIME __________________________________________ LEASING CONSULTANT ______________________________________________________________________________________________________________________

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CONSISTENCY GUEST CARDWELCOME CONVERSATION PHONE / IN PERSON

Applicant names______________________________________________________________________________________________________________________________________________________________

How soon do you need an apartment?________________________________________ How many people will this be for?_____________________________________

Where are you living now? Address:__________________________________________________________________________________________________________________________________

Any pets?__________________ Type_____________________________________________________________ Weight_______________________________ Age________________________________

What size apartment/how many bedrooms are you looking for?___________________________________________ How many baths?______________________

Is there a particular rent range?___________________________________________ What is important to you in your new home?_____________________________

______________________________________________________________________________________________________________________________________________________________________________________

How many cars do you have?_____________________________ Why are you moving?______________________________________________________________________________

How did you hear about us? c Print ad c Internet c Drive by c Resident referral

c Used approved script to describe community amenities

c Brochure/application was offered/given to applicants

Price quoted________________________ Deposit or deposit range quoted________________________

Different rent or deposit rates quoted? c Yes c No If yes, explain:

_________________________________________________________________________________________________________________

c Revenue Management System c Other________________________________________________

May we have a phone number and email of where you can be reached?

Phone:_______________________________________________________________________________________________________

Email:________________________________________________________________________________________________________

Recorded visit into log: Call________________ Visit________________ Prospect #_________________________ Date_______________________ Initial_______________________

Apt # shown_______________________ If not shown, reason:______________________________________________________________________________________________________________

Follow-up date within 24 hours?________________________ Second follow-up date:________________________ Third follow-up date:________________________

Leased apt #_______________________ Quoted monthly rent_______________________ Specials quoted_______________________________________________________________

If not leased, give reason__________________________________________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________________________________________

______________________________________________________________________________________________________________________________________________________________________________________

INTERNAL NOTES

PHONE CALLS

How soon can you come and see metoday? Time__________________________

If you are shown an apartment youlike, are you prepared to fill out anapplication? c Yes c No

Do you know where we are located?Do you need driving directions?

Remember, please bring a copy of agovernment issued ID.

Consistency Guest Card – M163 OR-WA

Multifamily NW

Events CalendarJanuary 6, 2015 9:00 AM - 1:00 PM New Hire Training (Portland, OR)

January 7, 2015 6:30 PM - 8:00 PM Landlord Study Hall - Show Me the Money (Portland, OR)

January 9, 2015 12:00 PM - 1:00 PM January It's the Law Lunchtime Series - Mold: How to Handle Tenant's Demands (Portland, OR)

January 15, 2015 8:00 AM - 12:00 PM Fair Housing Fair (Portland, OR)

January 20, 2015 8:00 AM - 12:00 PM Mold Awareness & Remediation (Portland, OR)

12:00 PM - 1:00 PM PDX Membership Luncheon - Marijuana Legalization: What it means for you and your property (Portland, OR)

January 21, 2015 9:00 AM - 2:00 PM CAM: Legal Responsibilities (Portland, OR)

January 23, 2015 9:00 AM - 12:00 PM NALP: Leasing and the Internet (Portland, OR)

January 29, 2015 8:00 AM - 12:00 PM Safety and OSHA Preparedness (Portland, OR)

February 2, 2015 1:00 PM - 5:00 PM Oregon Landlord/Tenant Law Class Part I (Portland, OR)

February 3, 2015 9:00 AM - 2:00 PM CAM: Risk Management (Portland, OR)

February 4, 2015 9:00 AM - 12:00 PM Emergency Readiness (Portland, OR)

February 5, 2015 11:00 AM - 2:00 PM Forms and Notices (Portland, OR)

Who is your “Best of the Best?”

The ACE Awards are coming. ACE nominations open on January 5, 2015.

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

When I’m out in the field teaching fair housing classes I’m often asked

what the consequences of a fair housing violation is. Following is a primer on the subject. You can get a visual perspective on the process by viewing our Enforcement Flow Chart at www.FHCO.org/pdfs/EnfFlowChart.pdf but following is a more detailed outline.

The federal Fair Housing Act makes any denial of or differential treatment in housing based on the following protected classes illegal: race, color, national origin, religion, sex, familial status (children) and disability. Oregon law also prohibits discrimination based on marital sta-tus, (legal) source of income (includ-ing, now Section 8 and other housing subsidies), and sexual orientation and gender identity. (Visit FHCO.org for further information on the area you live or own properties.)

It should be noted that one need not intend to discriminate for their words, actions, or advertising to have an illegally discriminatory affect. That is, affect not intention is

the barometer in a fair housing case.

How is the Fair Housing Act Enforced?

Often the Fair Housing Council of Oregon (FHCO) is the first line of defense. We receive fair housing-related inquiries and complaints from across the state. Each call is processed and assistance provided whenever and wherever possible. We offer information and referral to appropriate resources if an inquiry is not related to fair housing.

As a private nonprofit, we serve as a fair housing resource in Oregon but we are not an enforcement agen-cy, per se. If an inquiry appears to be a bona fide allegation of fair housing discrimination, we assist in whatev-er way the inquirer desires. We might help mediate the issue or con-tact the housing provider to advo-cate on the individual’s behalf; we may help the victim file a formal complaint or conduct an investiga-tion using witness interviews, test-ing, etc.

Testing is a nationally recognized and court-tested practice aimed at identifying whether or not illegal housing discrimination has occurred. Both complaint-based and audit test-ing is done by FHCO. Testing is used to identify ordinary the busi-

ness practices (of a company, an indi-vidual, etc.) and whether or not these practices constitute a violation of the laws.

Other enforcement-related activi-ties may involve filing a complaint with a regulatory agency; either on our own behalf or in assisting a housing consumer who claims a fair housing violation has been commit-ted against them. At times, we also file lawsuits with private attorneys. That said, more than 75% of the bona fide fair housing complaints we receive annually are resolved infor-mally and never make it to the for-mal complaint process.

What Happens After a Complaint or Lawsuit is Filed?

Fair housing complaints can be filed with the Dept. of Housing and Urban Development (HUD) or a state agency such as the Bureau of Labor and Industries (BOLI) in Oregon. A complainant has up to one year from the date of the last alleged incident of illegal discrimi-nation to file a claim. Alternatively, one may file a suit in court up to two years after the last incident.

If filed with a government agency, that office (HUD or BOLI) will initi-ate an investigation to determine if

there is evidence of illegal discrimi-nation or will attempt to conciliate the complaint with the parties involved. If conciliation fails, the agency will move to determine whether or not “reasonable cause” exists to believe that fair housing laws have been violated.

If the government agency finds “no reasonable cause,” the complaint is dismissed. However, if evidence of a violation is found, a hearing will be scheduled before an Administrative Law Judge (ALJ). If either party elects to proceed with the case in federal court, then either the U.S. Dept. of Justice (DOJ) or the state attorney general will represent the case on behalf of the regulatory body. The decisions of the ALJ or the federal district court are subject to review by the U.S. Court of Appeals.

If the complainant prevails in the case, s/he may be awarded compen-satory damages. These can include any out-of-pocket costs the com-plainant spent while obtaining alter-native housing and any additional costs, including rent, associated with that housing. Emotional distress damages for such things as humilia-tion, mental anguish or other psy-chological injuries may be levied and are in addition to out-of-pocket loss-es.

Fair Housing Enforcement


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Auction.com, LLC, the na-tion's leading online real estate marketplace, today

announced the findings from its No-vember Real Estate Investor Activ-ity Report™, a nationwide survey of real estate investors bidding on properties offered for auction dur-ing the month. This research pro-vides insight into real estate invest-ment trends on both a national and regional level. Survey data collected from investors bidding on property online and at live events across the country reveals that buying property

to hold and rent is currently favored over flipping nationwide, although investor intent varies considerably by vehicle (online or live event) and investor profile.

Respondents who indicated that they were making a one-time pur-chase preferred a hold-to-rent strat-egy, as did – to a lesser extent – respondents identifying themselves as full-time "real estate investors." Meanwhile, flipping was favored by the majority of respondents indicat-ing that they were working on behalf of another investor.

U.S. Investors Favor Renting Over Flipping According To Auction.com Real Estate Investor

Activity ReportInvestment Strategies Vary by Region, Vehicle and Investor Profile According to November Survey Results

National Findings: Investor IntentInvestor Profile Flip Rent UndecidedOne-time purchase 24.4% 72.2% 3.3%Real Estate Investor 46.7% 50.4% 2.9%Working on Behalf of Another Investor

60.4% 36.8% 2.8%

TOTAL 46.6% 50.5% 2.9%

Auction.com's findings based on responses given at online auctions show that investors bidding online generally tend to hold properties to rent rather than flipping them. This data also suggests that purchasing property to rent is more prevalent in

the Midwest and South, whereas there appears to be a higher propen-sity for flipping among real estate investors in the Northeast. The flip vs. rent split is nearly even in the West, with a very slight preference toward renting.

Conversely, investors bidding at live events appear to be more likely to flip the properties they purchase, but there were very strong regional variances. November survey data collected at live events in states where Auction.com is active revealed that flipping was favored overall,

with only Georgia, Tennessee and Texas bucking the trend. Meanwhile, respondents at live events in the Western states such as California, Arizona and Nevada showed an overwhelming preference toward flipping.

November Online Investor Data: Intent of All Investors SurveyedRegion Flip Rent Undecided West 49.5% 50.5% 0%Midwest 43.5% 51.8% 4.7%South 40.5% 57.1% 2.4%Northeast 54.1% 41.9% 4.1%Nationwide 43.3% 54.0% 2.7%


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Stay Connected ...continued from page 8

history but we are still living, think-ing “beings.” Human connection is not a technical procedure. It’s an emotional one. We have more com-munication options available to us today than ever before. But we must choose the method that best suits the message. Sometimes, voice-to-voice or face-to-face does the job best!

My message to all members as this New Year begins is do your best to stay “connected.” But balance your methods of connecting. We text, we email…sometimes when we shouldn’t (keep both hands on that wheel as it helps ensure career lon-

gevity and good health!).Despite what you might hear,

there’s not an “app for everything.” Stay connected with your human side. Some things never change.

Best wishes for a healthy, produc-tive, successful and progressive 2015!

By Scott Arena President

Multifamily NorthwestExecutive Vice President of Quantum Residential, Inc.

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Named Oregon and SW Washington’s SBA’s Rising Star Award Winner for 2014

By: Neal Thornberry, Ph.D.

Innovation is not for the faint of heart, as Galileo learned when he said that the Earth revolved

around the sun. He was scorned, threatened with death and eventu-ally put under lifetime house arrest.

Innovators are not always wel-come guests even within their own organizations, and their challenges are heightened by a dangerous orga-

nizational intersection: where Complexity meets Wackiness. The more complex an organization, the more difficult it is for the innovator to figure out where to go with a good idea and how to weave it through the organization to implementation and eventually value creation.

Growing organizations cannot avoid complexity. They add process-es and people, divisions and special-ists. Since we can now measure almost everything, they often believe

if one measurement captured in a report is good, then more are better.

One company, with whom I worked, learned that its sales people were losing a month of selling each year because of the time spent filling out reports required by the finance department. This example of com-plexity gone awry drove the organi-zation into Wackiness -- sacrificing revenues for reports.

There are many other examples of Wackiness getting in the way of innovation – and examples of stealth innovators circumnavigating them. One of my favorites is the tale of Jim Repp, head of Jeep design at the old Daimler Chrysler Corp.

Jim knew that many Jeep lovers spent thousands of dollars upgrad-ing their Wranglers for serious off-roading. This gave him the great idea

for a mass-produced Jeep with all the upgrades built in at half the cost. When he shared his idea with mar-keting, they said there was no mar-ket for that type of vehicle and besides, you’re an engineer, not a marketer.

Undeterred, Jim and a small band of innovators I call Innovation Judo masters built a secret prototype. They took it out on the Rubicon Trail in California for off-road trials and invited the senior executives to watch. Jim’s prototype outperformed the other Wranglers and, as crowds gathered around it, the executives saw their enthusiasm. They immedi-ately authorized production of what is now a best-selling icon, the Jeep Wrangler Rubicon.

Fortunately for Chrysler and other companies, there are a few pas-

Innovators Beware: Dangerous Intersection Ahead

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November Live Event Investor Data: Intent of All Investors Surveyed State Flip Rent Undecided Arizona 66.7% 19.0% 14.3%California 65.6% 32.2% 2.2%Georgia 41.9% 54.3% 3.9%Idaho 69.2% 30.8% 0%Nevada 88.9% 11.1% 0%Tennessee 39.4% 60.6% 0%Texas 38.7% 60.0% 1.3%Washington 62.5% 37.5% 0%Nationwide 49.3% 47.6% 3.1%

"Real estate investors appear more likely to flip a property in those regions where home values are higher," said Auction.com Executive Vice President Rick Sharga. "Higher prices can translate to a faster and potentially more significant short-term return on investment. The hold and rent strategy seems most popu-lar in markets where home prices are lower, allowing investors to charge a more competitive monthly rental

rate and still produce reasonable returns over an extended period of time."

Flipping was also the more popu-lar strategy among investors pur-chasing multiple properties per year – particularly institutional investors (those indicating that they purchase 50 or more properties per year). This was true for both online auctions and live events.

November Online Auction Investor Data: Intent By Purchase ProfilePurchase Profile Flip Rent Undecided0-1 Property/Year

30.0% 65.6% 4.4%

2-49 Properties/Year

52.8% 45.5% 1.7%

50+ Properties/Year

60.0% 40.0% 0%

November Live Event Investor Data: Intent By Purchase ProfilePurchase Profile Flip Rent Undecided0-1 Property/Year

41.3% 56.3% 2.5%

2-49 Properties/Year

49.8% 48.0% 2.2%

50+ Properties/Year

55.4% 38.6% 6.0%

Auction.com, LLC, is the nation's leading online real estate marketplace.

Founded in 2007, the company has sold over $26 billion in residential and com-mercial real estate assets. Auction.com has over 900 employees and headquar-

ters in Irvine and Silicon Valley, California as well as offices in Austin

and Plano, Texas, Atlanta, Denver, New York and Miami. Visit www.auc-

tion.com for more information.SOURCE Auction.com, LLC

Flipping was also the more popular strategy among investors purchasing

multiple properties per year – particu-larly institutional investors (those indi-

cating that they purchase 50 or more properties per year). This was true for

both online auctions and live events.

Renting Over Flipping ...continued from page 10



Inovators Beware ...continued from page 12

sionate innovators like Jim who won’t let go of their idea no matter what. They’ve developed a special set of skills (I call them Innovation Judo) that allow them to bypass those blocks.

They are:

• Discipline

• Leverage

• Speed

• Openings

• Circling

• Unbalancing

• RedirectionThe Jim Repp story illustrates the

application of several of these prin-ciples. The discipline to plan for building a secret prototype; leverage in getting senior executives to sup-port his idea; utilizing the opening at the Rubicon Trail; and then using the surprise (a tactic of unbalancing) of a Jeep that looked like all the other jeeps on the trail but outperformed them.

Since it takes so long to correct the dangers at the Complexity/Wackiness intersection, identifying and supporting a few Innovation

Judo Masters can go a long way in overcoming some of the most diffi-cult barriers to innovation.

Neal Thornberry, Ph.D., is the founder and CEO of IMSTRAT, LLC a consulting firm that specializes in help-ing private and public sector organiza-tions develop innovation strategies. He serves as the faculty director for inno-

vation initiatives at the Center for Executive Education at the Naval

Postgraduate School in Monterey, Calif. Thornberry, author of “Innovation

Judo:Disarming Roadblocks & Blockheads on the Path to Creativity”

(www.NealThornberry.com), holds a doctorate in organizational psychology

and specializes in innovation, corporate entrepreneurship, leadership and orga-nizational transformation. A respected

thought leader in innovation, Thornberry is a highly sought-after

international speaker and consultant.

Fo r e c a s t e r s have begun to warn of

potential over-building in the multifamily sector,

but concerns from pundits are pre-mature. Multifamily development in the U.S. has yet to meet pent-up demand, and annualized effective rent growth was 4.1 percent in Au-gust 2014, the highest since October 2011. At the current rate of develop-ment, we anticipate production ca-pacity and demand will reach equi-librium by mid-2015. Subsequently,

the industry could enjoy up to six additional years of sustainable pro-duction, if developers and lenders carefully monitor demand and mod-ify deliveries accordingly. It has been said that multifamily is in the middle innings of an extra inning game.

Statistics on the U.S. supply of multifamily units clearly show the sector is not in danger of being over-built, although a few markets are the exceptions. Even areas such as Northern Virginia, which recently experienced oversupply conditions, are showing signs of improvement. Here are notable signs of a robust

multifamily sector:

• The national multifamily occu-pancy rate rose to 95.2 percent in August 2014 after being at 95 percent since May, according to research firm Axiometrics. Oc-cupancy rates are holding steady despite the new supply from developers.

• There is fresh demand each year for 400,000 to 450,000 units, but developers are completing only 325,000 units a year.

• 1 to 1.25 percent of the existing multifamily inventory in this

country is demolished each year, a metric that when not taken into consideration, skews perception of demand. With considerable at-tention currently on urban devel-opment, the trend will continue in the near term.

“In The Top 100 U.S. Markets, Demand for Apartments was More than Double that of the Number of Units Delivered.”

Fundamentals remain strong on

Multifamily Green LightU.S. Development Pace is Sustainable for Years to Come




As strong market conditions continue to prevail in the Pacific Northwest, many

apartment communities are main-taining high occupancy numbers, and others are full with a waiting list. Conditions are optimum for rais-ing rents and increasing property values. Residents of these communi-ties are getting an education in the high cost of relocating and are opting to stay put, even if they receive a significant rent increase.

What all this means is that those on the leasing end are in the driver’s seat: It is a seller’s market! However, just because you are full does not mean you quit selling or stop pro-viding quality customer service. Unfortunately, after several years of tough market conditions, some leas-ing staffs are ready for a break and they are taking it during regular office hours!

Based on some disturbing trends that started showing up a couple of

years ago and that are still going strong, the Secret Shopper is won-dering if some leasing consultants have the following questions:

• When I have no vacancies or unrented notices, is it really necessary for me to answer the phone, return calls or set appointments?

• When I have no apartments available to rent, do I really have to keep appointments that conflict with my lunch break?

• When my community is full and I’m having a slow day, do I really need to stay open until closing? While the above are “imaginary”

questions, I can’t help but wonder how many of these are real, unspo-ken thoughts in the minds of some leasing employees.

It may be true that the “leasing” side of the rental office becomes less

challenging when your community is 100% occupied. However, even without apartments to rent, you have an existing customer base. Your resi-dents still must be able to conduct business with you in order to renew leases, pick up packages, request maintenance service, etc. If you choose not to answer your phone, return calls or keep your office open, then you are not providing the level of customer service you promised when they were prospective renters

Regarding your 100% occupancy Congratulations! - It took a lot of hard work to get there. Of course, depending on how you treat your residents will determine if you STAY there. Oh, and one last thing: How are you coming along with your waiting list? Are you keeping in touch with the people who expressed interested in renting at your commu-nity or did you just take their name and number to “humor them?”

Remember: The future is unpredict-able, but a current, updated waiting list is a “sure thing.” Instead of “clos-ing up shop” early on a slow day, how about making some follow up calls. You and your future renters will be glad you did!

If you are interested in leasing train-ing or have a question or concern that you would like to see addressed, please

reach out to me via e-mail.

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In cases tried before an ALJ, a civil penalty of up to $16,000 may be imposed for a first violation up to $65,000 for a third violation. If the case is brought by the DOJ, civil pen-alties can be as high as $100,000.

When heard in federal court, punitive damages may be awarded. These do not reimburse the plaintiff for losses actually suffered; instead, they punish the wrongdoer. Punitive damages are awarded only if the plaintiff shows the defendant’s con-duct was “willful, wanton, or mali-cious” specifically motivated by an intent to exclude the plaintiff for illegally discriminatory reasons.

Attorney’s fees may be awarded to the prevailing party. In addition, courts may issue injunctions if they feel prompt action is necessary to prevent immediate and irreparable harm.

In cases involving illegal discrimi-nation in home mortgage loans or home improvement loans, a suit may

be filed under both the Fair Housing Act and / or the Equal Credit Opportunity Act. In this case, addi-tional agencies may be involved.

If you have questions about fair housing law, please consider us a resource and let us know! You may want to start on our website where we have not only the Enforcement Flow Chart posted but also an entire page with tons of resource docu-ments and links just for housing providers like yourself. You can find these resources at http://fhco.org/hs_provider_info.htm.

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 ongo-ing 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 asso-ciation? Contact Jo Becker at jbecker@

FHCO.org or 800/424-3247 Ext. 150Want to schedule an in-office fair

housing training program or speaker for

corporate or association functions? Visit www.FHCO.org/pdfs/classlist.pdf

Fair Housing Enforcement ...continued from page 9

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According to the Society of Human Resource Man-agement {SHRM} over 50

percent of the information presented on a resume by a job candidate may be false or misleading. These are alarming statistics, and as the execu-tive of your property management company, it continues to be increas-ingly important to understand the mindset of the job candidates that are applying for positions within your company. This article will help you and your company strengthen your reference checking process and eliminate those who will not be a perfect fit, long before a position is ever offered.

Some reference checking statis-tics: A recent SHRM survey at www.shrm.org was sent to 2,640 human resource members regarding refer-ence checking. The survey conclud-ed that job candidates frequently present misleading information about their length of stay with for-mer organizations, their past/cur-rent salary levels and their college credentials. More specifically, 53 percent of companies involved in this survey discovered falsified infor-mation about length of employment

from job candidates and 51 percent discovered falsified information about past salaries. In addition, 61 percent of job candidates falsify their college credentials, a credential that can be easily researched during the reference checking process.

Tip From The Coach: Based on the above survey information, con-ducting thorough reference checks must continue to be an important step in the selection and interview process of hiring SuperStars for your property management company.

Developing a reference checking process: The first step is to deter-mine how reference checks are going to be done in your property manage-ment company and to establish or strengthen your written policy for how reference checks fit into your interview process. With some of our property management clients, their human resource department handles this important step before a formal job offer is made. With other prop-erty management clients, all hiring executives handle their own refer-ence checks, based on the specific level of position being offered or the compensation range being present-ed. As for references, three or more

business references should be sup-plied by a job candidate as early in the interview process as possible. We highly recommend asking for references early in the interview pro-cess because this will give your hir-ing executives additional time to contact each organization submitted by a job candidate. This also means that your hiring executives will not be rushed to do reference checks in the final hours before making a job offer. This makes for a more thor-ough and complete reference check-ing process.

Tip From The Coach: In addition to reference checks, many property management companies are now asking permission to do background checks, credit checks and criminal checks as part of their hiring process. Based on the SHRM survey statistics above and your own professional experience, have you recently reviewed your reference checking process? This process will help to link talented SuperStars to compati-ble positions within your property management company and will reduce the chances of hiring low per-formers.

Questions to ask when calling a

reference: It has been our experience that all of our property management clients want to create their own cus-tom reference checking form. Here are some sample questions to get you started with yours: How would you characterize his/her success with your company? How would you characterize his/her energy level? How was this person viewed by his/her peers? Describe the types of decisions this person made on a daily basis? How did this person manage their time? Tell me about a disagreement or a challenging situa-tion and how this person handled it? Specifically, how was this person paid? Why did this person leave your company? Based on what you shared today, would you hire this person back?

Tip From The Coach: We know that many companies are no longer giving references on past employees based on legal and liability concerns. Most of our property management clients now ask a job candidate to sign a reference authorization form giving permission to their previous employers for a full and candid ref-erence while also waiving any legal


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Green Light ...continued from page 15

the demand side as the need for rental units continues to rise. In the top 100 U.S. markets, demand for apartments was more than double that of the number of units deliv-ered, with 55,561 units completed and 129,162 units absorbed, accord-ing to a second-quarter 2014 report from MPF Research. Job growth is expected to continue for the next five years, according to economists at Axiometrics, barring an unforeseen shock to the economy. Job growth will drive demand for multifamily projects, and as more job formation drifts to the suburbs, so will rental demand. In a somewhat surprising observation, the National Multifamily Housing Council reports that almost 50 percent of new renters are Baby Boomers, rivaling Millennials as the biggest driver of demand. Baby Boomers are becom-ing “renters by choice” who trade house and yard maintenance for convenient live/ work/play envi-ronments.

For the time being, several factors are holding the supply/demand ratio in check. The number of Millennials entering the renter pool continues to increase − a circum-stance that will not change in the near term. Millennials will constitute 24 million new households between 2015 and 2025, thus driving up demand for rentals and starter homes, according to “The State of the Nation’s Housing 2014,” a report by the Joint Center for Housing Studies of Harvard University. Immigration is also driving addi-tional household formation in ever-increasing numbers. Renter growth in 2013 remained well above the 400,000 average annual absorption rates of the last few decades, the study reports. In addition, stringent mortgage underwriting and grow-ing student debt push homeowner-ship further out for many young individuals and families.

Also curtailing supply are barri-ers to entry, which exist in coastal markets as a result of the high costs of land and construction. Artificial barriers in other U.S. markets are a consequence of zoning restrictions and public opposition to higher den-sity projects that are necessary to make some deals financially feasible.

Finally, the lack of skilled labor is putting stress on construction capac-ity, driving up labor costs and length-

ening construction timetables. Many former and would-be construction workers have been lured to the oil and gas industry by higher wages, leaving the development community without enough tradespeople. While commodity prices are increasing moderately, contractors are pushing up margins to recoup losses incurred during the recession, and the addi-tional costs will price some projects outside the realm of feasibility. The same labor dynamic is slowing the building of homes, which, conse-quently, also adds to the number of people in need of rental units.

Opportunity still abounds in the robust multifamily sector, but future projects will face greater scrutiny from debt and equity sources, par-ticularly as interest rates begin to rise. The “easy” opportunities are largely done and developers must be creative in originating the next round of development opportunities. As long as developers exercise con-straint, it appears we will have a number of years of positive invest-ment environment for multifamily.

By Mark Culwell, Managing Director, Multifamily Development

Transwestern Development [email protected]

214.534.1458



Ref. Check – The Coach ...continued from page 17

liability. In addition, we strongly advise our clients to call each refer-ence given by a job candidate and when the reference conversation is complete --- ask this person, “Is their someone else within your company who can give me an additional refer-ence on this job candidate?” Speaking to a second person within the same company is the secret to getting accurate and detailed references.

Want to hear more about this important topic or ask some addi-tional questions about how to build a custom reference checking form or to see a sample reference authorization form? Send an E-mail to [email protected] and The Coach will E-mail you a free TeleForum invita-tion.

Author’s note: Ernest F. Oriente, a business coach/trainer since 1995 [33,000

hours], serving property management industry professional since 1988--the

author of SmartMatch Alliances™, the founder of PowerHour® [ www.power-hour.com ], the founder of PowerHour

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

www.powerhourleadershipacademy.com/pm ] and Power Insurance & Risk

Management Group [ www.pirmg.com ], has a passion for coaching his clients on

executive leadership, hiring and motivat-ing property management SuperStars,

traditional and Internet SEO/SEM mar-keting, competitive sales strategies, and

high leverage alliances for property man-agement teams and their leaders. He pro-

vides private and group coaching for property management companies around

North America, executive recruiting, investment banking, national utility bill auditing, national real estate and apart-

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

www.powerhour.com/propertymanage-ment/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/socialme-dialeadership.html ]. Ernest worked for

Motorola, Primedia and is certified in the Xerox sales methodologies. Recent inter-

views and articles have appeared more than 8000+ times in business and trade

publications and in a wide variety of lead-ing magazines and newspapers, including

Smart Money, Inc., Business 2.0, The New York Times, Fast Company, The LA

Times, Fortune, Business Week, Self Employed America and The Financial

Times. Since 1995, Ernest has written 225+ articles for the property manage-

ment industry and created 400+ property management forms, business and market-ing checklists, sales letters and presenta-

tion tools. To subscribe to his free proper-ty management newsletter go to: www.

powerhour.com. PowerHour® is based in Olympic-town…Park City, Utah, at 435-615-8486, by E-mail [email protected] or visit their website: www.power-

hour.com

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Metro ( Portland ) Rental Housing Journal January 2015

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