When I was a kid I was a huge fan of the television show Tour of Duty which chronicled the life of a platoon of American soldiers in the Vietnam War. The show made no attempt to glamorize war, to justify the war or even to provide an explanation of why our nation was there in the first place; it’s goal was simply to tell the story of the often forgotten people who were charged with fighting it.

In one episode the men of Bravo Company were assigned the task of relocating villagers to a new village that was considered more “secure.” Some of these people had lived their entire lives in that village and were now being forced to leave the only life they knew. The journey to the new village would take a few days as they all crossed miles of jungle.

In the middle of the relocation process the soldiers came under enemy attack. When the fighting seemed heaviest and escape seemed remote, the men received an order to save their lives by “leaving the villagers” where they were and to get out. The young lieutenant turned off the radio, told his men the radio was “broken” (so the order couldn’t be confirmed) and the soldiers finished their mission of getting the villagers to their new home safely.

Reality Check

When the men arrived at the village, one of the higher officers ripped the men a new one for their “stunt” of turning the radio off and disregarding the order to ditch the villagers. The colonel said something like, “You don’t risk your life for something of no strategic value!” To which one of the privates in the platoon replied,“People are strategic … sucka…!”

The colonel demanded to know who said that and one by one, the men of the platoon said “I did, sir!” and they all closed ranks, looking at the colonel (with a ton of disdain) as the show faded out.

Love it!!

People Are Your Biggest Asset

I just did two corporate training events for clients on both coasts over the past few weeks. (In fact I’m on an airplane right now coming back home from one of them!) And I can tell you that both companies are intensely committed to their people; and not just to train them so that they’ll make their companies more money (which of course, is a goal…and a good one!) but because they were genuinely interested in helping their people succeed.

I could tell the difference. Big time. 

The people I interacted with and spent time with all seemed excited, engaged and really into what they were doing. I met someone today who was with his company for 20 years! And when he spoke of the people he worked with and worked for, he glowed.

How much do you think his company has made from his efforts, just by investing in him both as a person and an employee?

People Are the Difference

Did you watch the Super Bowl this past February? The Seattle Seahawks beat up the Denver Broncos in a way I think few people imagined. Were the Seahawks just that much better from a personnel perspective? I don’t think so—but I think the Seahawks were more inspired.

Inspired people do inspiring work. Uninspired people do uninspired work.

Which one would you rather have?

And you can’t inspire (most) people with only a spreadsheet, new software or a bunch of fancy algorithms and analytics. You inspire people by engaging and pursuing their hearts. You may think that’s a bunch of “feel good” fluff but it doesn’t change the fact that it’s true. I encourage you to try it…and when you do, you’ll experience that people really ARE strategic…and can be YOUR secret weapon.

Rommel Anacan | Company Website | LinkedIn Connect |Rommel is the president of The Relationship Difference; a corporate training, motivational speaking and consulting firm.  He is a multi-family housing veteran, having worked at all levels of the industry from onsite to corporate, where he developed a reputation for solving common industry challenges in an uncommon way.

shared post from Class A Management

Healthy in 2014. That’s the report from Fannie Mae on what’s to be expected of the Multifamily Property Market in the coming year. It’s a trend we saw in 2013, even at times when it was least expected. In fact, the Federal National Mortgage Association reported continued rent growth and sustained occupancy levels through the end of the year, a time when both have a tendency to dip.

Keeping with the trend, Fannie Mae says 2014 holds much of the same, with both tenants and property owners demonstrating a continued demand for the industry. The best news? Looking at the graph provided by the agency, vacancies from now until 2018 are predicted to see very little change, with the first multi-year sustained vacancy rate since 1995.

What’s the Driver?

Wondering about the source of this trend? Job growth, of course, takes the bulk of the credit. The following numbers have been forecast by Fannie Mae’s Economic & Strategic Research Group:

• 6.4 percent unemployment rate by the end of 2014
• 1.9 percent increase in nonfarm payroll in 2014 and up to 2.0 percent in 2015
• An increase in household formations is expected to increase demand for rental units

Some More than Others

As Fannie Mae details—and from what we know to be true—not all areas of the country have seen or will continue to see this positive trend. In fact, particular areas of the country that ‘carrying’ others—bringing up the average for the whole.

What’s interesting is comparing the metropolitan areas expected to see positive job growth with those that aren’t. For instance, Cleveland, St. Louis, Detroit, Philadelphia, Boston, and Washington, D.C. are forecast to miss the mark on unemployment. This is while areas such as Austin, Houston, Dallas, Orlando, Louisville, Palm Beach, and Portland make the top of the list for most promising economies.

To owners and managers in the aforementioned cities expected to see growth, the question is clear: How are you going to differentiate your property to ensure your piece of this action?

Each April, HUD observes Fair Housing Month, in honor of the 1968 Fair Housing Act that prohibits housing discrimination based on race, color, national origin, religion, sex, disability, and family status.

This year, HUD is encouraging rental applicants and tenants to exercise their rights under the Act.

In addition to the legal protections provided under the Fair Housing Act prohibiting housing discrimination based on race, color, national origin, religion, sex, disability, and family status, approximately 20 states, the District of Columbia, and more than 150 cities, towns and counties across the nation also prohibit discrimination against lesbian, gay, bisexual, and transgender (LGBT) individuals and families.

In 2012, HUD published new regulations to ensure that the Department’s core housing programs are open to all eligible persons, regardless of their sexual orientation or gender identity.

Twelve states and the District of Columbia, as well as several counties and municipalities
protect persons against housing discrimination based on their source of income.

A review of recent prosecutions shows confirms that HUD is making good on its promise to
pursue cases where tenants with disabilities have been denied companion animals, and
families denied housing on occupancy limits. A new ruling also clarifies that, while a
policy may not be discriminatory on its face, a landlord may still be prosecuted if that
policy causes a more subtle, “disparate” impact.

Landlords should take the time to review leasing policies for possible discrimination.
Some common areas to avoid include:

Rental ads that discourage protected tenants from applying;
Steering a protected tenant towards or away from a particular property;
Occupancy limits based on 2-per bedroom have come under scrutiny — avoid turning away
families if the property has a “bonus” room, loft, office or den that could easily be converted into a sleeping area.
Denying companion animals for tenants with disabilities, or applying any pet policies in that situation.

American Apartment Owners Association | Company Website | Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing.

A Pittsburgh landlord recently was thrown in jail for six months because of his “nuisance” rental.

According to a news report, neighbors and police “suspected” the property was being used as a drug house. Police say they’ve been called to the house dozens of times over the past few years. Officers did find drug paraphernalia on at least one call, and have responded to drug overdoses in the area.

In response to complaints, a judge previously ordered the landlord to evict all of his tenants, pay a $10,000 fine to the city for the nuisance, and repair the house.

However, when the case was reviewed, the court found that the landlord had not fully complied with the order. Now, the landlord will serve a six month jail sentence for contempt of court — unless he complies with the order.

Meanwhile, police have boarded up the building, and city officials are considering demolishing the property, according to the report.

It is unclear in this case whether the tenants were charged with crimes, or if the complaints of neighbors — that tenants were awake and “active” at 5:00 am, or that tenants were “making money” at the property, would have been sufficient evidence to convict each of them of these alleged crimes.

A number of cities across the country have recently enacted similar “nuisance” laws requiring landlords to evict tenants for disruptive behavior or suspected criminal activity. Unfortunately, this can be a daunting task if there is no evidence of an individual tenant’s wrongdoing. Often, police do not charge individuals or issue tickets at the scene, choosing instead to pursue the landlord, who then may have to reconstruct the event and attempt to evict each of the tenants for cause. That places landlords in a no-win situation, especially when fines are being levied daily.

However, there are steps that landlords can take to avoid renting to nuisance tenants:

Be careful who you allow in the property; always screen each adult occupant, including a criminal background check.

Adopt a crime-free lease policy that tracks your local nuisance laws. Make sure you have the ability to evict a tenant who violates the policy, even if you can’t prove they violated the law. Local police may participate in landlord training programs that help reduce crime in the area.

Keep a close eye on the property by performing regular property inspections. If you suspect drugs or other dangerous activities, call the police rather than trying to solve the problem yourself.

Get to the know the neighboring property owners, or at the very least, make sure they have your phone number in case they see something suspicious going on at the rental. You don’t want to be the last to know.

American Apartment Owners Association | Company Website |  Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing.

Requiring residents to carry renters insurance is one of the most valuable property management levers that you have at your disposal. Unfortunately, a recent Insurance Information Institute (III) poll indicates a major discrepancy in the number of homeowners that have insurance at 96 percent compared to an estimated 35 percent of tenants who had renters insurance in 2013.

Inform and Empower Residents by Encouraging Renters Insurance

We all know that most anything can occur anytime – so why is there so much tenant hesitancy to invest in renters insurance? The core of the quandary is likely lack of knowledge on behalf of the tenant, many of whom believe that the contents of their abode are covered by your property insurance policy, which, as property managers know, is not the case.

Here are the facts. Your owner’s policy covers the structure but not renters’ possessions and, if the unit becomes uninhabitable, you aren’t responsible to provide a accommodations. Another simple fact is that renters insurance is actually fairly inexpensive. Arm yourself with accurate and current info, so you know how to approach potential residents about the importance of protecting their interests with proper coverage.

The Cost of Losing Everything

Certainly, those precious keepsakes, photos, and mementos can never truly be replaced, but a little cash replacement value can go a long way when all of a tenant’s belongings are lost due to a fire, windstorm, or other unpredictable act of nature. Furnishings, bedding, and incidentals such as medications and clothing are replaceable through renters policies, but coverage limitations will depend on the policy type the tenant chooses. Print up this handy Renters Insurance Checklist from the III, and offer it to new and potential tenants during the application process, because the cost of losing everything is incalculable.

Dispelling the Myth that Renters Insurance is Expensive

Many tenants often don’t want the hassle of one more bill, but renters insurance can be had for less than $200 per year nationwide according to estimates from the National Association of Insurance Commissioners. Discounts are available for many reasons including renters combining multiple policies, having good credit, being a senior or active military, and for having a long-term relationship with an insurer.

As a property manager and owner, you can do your part to foster insurance discounts for yourself and your tenants by providing:

• Security Systems
• Smoke Detectors
• Deadbolt Locks
• Ample Exterior Lighting
• Property Security

Renters Insurance Benefits are Immediate Following a Disaster

Renters policies also provide displaced tenants with funds to cover temporary living arrangements and associated expenses. Today, most reliable insurers can make almost immediate arrangements to offer a stipend for a hotel or temporary housing arrangements for policyholders, which can be a huge burden on any family. Without renters insurance coverage, they may be out on the streets – something many people just don’t have the foresight to consider when opting out of renters insurance.

Don’t make renters insurance optional, – require your tenants to purchase coverage – or at least highly encourage them to do so.

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money.  Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Landlords all across the country are fed up with crime in rental properties, and all the associated costs. Many communities are now pushing landlords to adopt crime-free rental policies. Usually, this means landlords would go to training sessions hosted by the local police department, and allow in-depth inspections of their properties.

The goal in mind for landlords is attracting higher quality tenants who will help to maintain a higher quality rental property, which in turn keeps profits up. A crime-free property accomplishes that goal.

Landlords can learn how to prevent and identify crime directly from a crime prevention officer while completing a training session. It is very difficult for the untrained eye to spot signs of serious crimes like drug sales or manufacturing.

Local police departments are eager to assist landlords wishing to help lower crime in the neighborhood. For example the Salem, Oregon police department is actively registering property managers for its annual landlord training in April. This is a two-day intensive class focusing on local rental laws and crime prevention, with topics like drug recognition in and around rental properties. The cost of this two day workshop is about $70 per person.

This demonstrates a growing trend; landlords who care want advice on how to prevent crime in the rentals. Cities strive to provide that training.

The only downside is the fees.

In addition to tuition, property owners may have to pay an annual licensing fee for each unit, and inspection fees on an as-needed basis. It’s possible for a community to adopt a policy that forces all landlords to attend the training sessions, willing or not.

The alternative is self-education. A central focus on crime training is screening tenants. Most seasoned landlords already know the value of properly performed background checks — and how invaluable quality tenant screening can be. Focusing on who you allow into the rental property can greatly reduce the risk of criminal activity.

American Apartment Owners Association | Company Website |  Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing.

According to a report just released by the National Low Income Housing Coalition, a renter needs to earn $18.92 an hour to afford a two-bedroom rental unit at fair market. That’s two-and-a-half times more than the federal minimum wage, and 52% higher than what was required in 2000.

The report, entitled Out of Reach 2014, reveals the drastic difference between what renters need to earn to afford rent and what the average renter actually earns. In 2014, the average renter earns $14.64 an hour. While housing costs vary nationwide, the report shows that a full-time minimum wage worker can’t afford a one or two-bedroom rental unit anywhere in the U.S.

According to Out of Reach 2014, the top five most expensive states are:

Hawaii, where renters need a wage of $31.54 per hour for a two-bedroom;
District of Columbia, $28.25 per hour for a two-bedroom;
California, where a two-bedroom requires $26.04 per hour;
Maryland, $24.94 per hour for a two-bedroom; and,
New Jersey, where renters need to make $24.92 per hour for a two-bedroom.

New York, Massachusetts, Connecticut, Alaska, and Virginia finish out the list of top 10 most expensive states in 2014.

The most expensive metropolitan area in 2014 is San Francisco, where an individual needs to earn $37.62 an hour to afford a decent two-bedroom rental unit at market rate. At the current federal minimum wage of $7.25, Out of Reach 2014 calculated that it would take more than two people working full-time minimum wage jobs to afford a decent two-bedroom rental home for their family.

Even if the federal minimum wage was raised to $10.10 per hour, as proposed by the Fair Minimum Wage Act of 2013, it won’t help in everywhere — only in Arkansas, Kentucky, and Puerto Rico.

There were over 40 million renter households in the U.S. in 2012, making up 35% of all households nationwide. This is a 1.1 million increase over the previous year and double the rate of growth in previous decades. One in every four of these renter households are extremely low income, meaning they earn less than 30% of the area median income.

The population of extremely low income renters has risen to 10.2 million, and these are the households that experience the greatest housing instability and risk of homelessness. NLIHC calculates that there are just 31 affordable and available units for every 100 extremely low income renter households. However, NLIHC says that closing this gap is achievable through funding of the National Housing Trust Fund, which could provide communities with the money to build, preserve, and rehabilitate rental homes that are affordable for extremely and very low income households.

Extensive data for every state, metropolitan area, and county in the country are available online at www.nlihc.org/oor/2014.

American Apartment Owners Association | Company Website |  Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing.

As the owner of rental properties, whether it be one or multiple units, annual inspections are a vital part of the process. Sometimes, you might have a long-term tenant that religiously renews that lease year after year – and you appreciate that. However, unless you employ a property manager to handle daily operations, property upkeep is your responsibility and you’ll need to perform the occasional inspection while a unit is still occupied.

After all, you can’t fix things when you’re unaware of their current condition, making property inspections during tenancy sometimes unavoidable. Here are some tips concerning the do’s and don’ts of approaching that annual inspection when the time rolls around, even if tenants have previously approved of your right to handle the task within your rental or lease agreement.

Do Give Notice Prior to Inspections

Unless you suspect your current tenant of violating current restrictions or policies within their lease such as unapproved residents or pets, current tenants appreciate you giving notice before inspection. Even if the worst they have to hide is dirty laundry or dust, unless you’ve stipulated the potential for surprise inspections in your lease agreement, the law mandates advanced notice unless a local law or ordinance is being broken.

Do Encourage Resident Presence During Property Inspections

More importantly, you should encourage at least one primary leaseholder to be present during your inspection. This could prevent any accusations of theft or mischief down the line, and it will also give you the opportunity to ask the tenant about any potential problems with appliances, systems, or concerns about the unit. Residnets are often very willing to open their homes to you just to catch your ear about a needed repair or suggestion.

Do Let Residents Understand Why You’re Doing the Inspection

Is that tile chipped in the bathroom? Is the kitchen faucet leaking? How about servicing that HVAC system? Structural integrity and appliance and systems check are a part of homeownership, whether you lease or rent it or not. Let your tenant know the reasons for your visit, and that it is a routine event both for their benefit and yours.

Don’t Take Photographs Indoors of Personal Items

You may only intend to get that sagging windowpane, but you accidentally got part of the mantle that features family photos. Unlike a vacant home, occupied rental property inspections have certain rules, and taking photos of identifiable personal items like pictures, computers, valuables, pets, or people is a no-no.

Don’t Engage in Face-to-Face Confrontations with Residents about Issues

As the owner,  steam may be coming from your ears if you make an inspection only to find your property is being neglected in some way. It’s important to visually and physically document such issues, but it’s equally essential to address such problems with your resident – in writing. Verbal confrontations could lead to your tenant skipping out on you, bad mouthing your reputation as a renter, or even legal troubles down the line. Keep your notifications formal and in writing if problems surface during your property inspection.

Whether annual, interim, or spot inspections are on the agenda for your rental properties, keep these do’s and don’t in mind to keep tenants happy and to ensure you’re acting in accordance with renter’s legal rights.

Appfolio | Company Website | LinkedIn Connect | AppFolio, Inc. develops Property Management Software that helps businesses improve their workflow so they save time and make more money.  Appfolio submits articles & blogs including topics of Resident Retention, Improved Owner Communication, Time Management, and more.

Every landlord knows that the lease controls when it comes to managing properties and settling tenant disputes.

But did you know there are two hidden rules inherent to every lease agreement, even if these rules are not written in the lease?

Habitability

In every leasing situation, verbal or written, long-term or short, good or bad, a landlord has a duty to provide habitable premises. This is true if the lease is silent on the issue, and remains true even in cases where the landlord has shifted the responsibility to the tenant or attempted to limit this duty in some way.

While there may be language in a local statute and ordinance on habitability, this rule comes from simple contract law, and that makes it very flexible. The duty of habitability covers all the day-to-day necessities, including hot and cold running water, heat, and in some cases air conditioning, safe access, reasonable security from intruders, and compliance with zoning, building and fire codes.

The gray area: the tenant’s own actions. While the landlord has the duty to keep the property habitable at all times, a tenant may be liable for costs of repairs or remediation caused by their deliberate or negligent actions, including the actions of their guests.

Quiet Enjoyment

The biggest beef tenants have against landlords is intrusion on the right to quiet enjoyment, which exists whether or not it is mentioned in a lease agreement. Quiet enjoyment, the right to live without intrusion or nuisance, encompasses everything from excessive or unannounced landlord visits to noisy neighbors.

Despite the label, it’s not just noise that violates this covenant. Secondhand smoke is a common culprit.

Tenants’ Rights

When either of these hidden duties is violated, tenants have a number of possible remedies, including withholding rent (constructive eviction), or breaking the lease entirely, with no ramifications.

In a worst case scenario, the tenant can sue for damages that may go far beyond the actual rent paid under the lease agreement, so it’s important to keep these rules in mind when making property management decisions.

American Apartment Owners Association | Company Website |  Rental property management can be very demanding. Our job is to make this day-to-day property management process smoother. AAOA provides a host of services ranging from tenant screening to landlord rental application forms and contractor directory to apartment financing.

by Vera Dordick

Every property manager knows that spending time and effort to retain residents is more cost effective than working to attract new ones: Each resident turnover is estimated to cost a property around $3,000. While much has been written about strategies for enticing residents to renew, little is said about the different challenges involved in working with residents from other cultures.

California has more foreign-born residents than any other state, putting its property managers in a unique position: Odds are quite good that they will be working with renters from other cultures. New York, Texas and Florida are the other states with high immigrant populations. According to the Public Policy Institute of California:

• One out of four immigrants to the United States resides in California. (That’s more people than the entire population of Michigan!)
• Of this population, more than half are Hispanic and 37 percent are Asian.
• Asia has surpassed Latin America as the major source of immigrants to California.

Across the board, retention experts have identified good communication as a critical factor in keeping residents. The big challenge with multicultural renters comes when your communications style is not necessarily the same as theirs. Culturally based behaviors and styles affect communication and can impact every step of the property rental and management process, from leasing to maintenance.

Culture is a loaded word that means different things to different people.  It is based on your family history, your religion, your reality and your perceptions. For example, if you have never tried an ethnic cuisine, its ingredients, flavors and textures may seem strange.  Similarly, if you don’t understand why people from a different culture behave the way they do, their actions may also seem strange, unfamiliar, or even wrong.

They aren’t “wrong.” They’re just different. This is the key concept that will be most helpful in working with people from other countries.  In a world of cultures, there is no right or wrong culture, no one culture that is “better” than another. Approaching education in cultural sensitivity with an open mind, devoid of stereotypes can help you achieve the “cultural mind shift” that your perception may not be their reality.  This will help you work efficiently and effectively with any multicultural renter.

All residents of a community want to be valued and understood, and feel comfortable living in a community. By understanding the reasons that drive their behaviors – the “why” – you will be better prepared to handle various communication styles and achieve your goals without offending. Some countries have a fluid time culture that does not place significant value on punctuality. Others do not have a history of fixed-term or fixed-price leases. Cultural differences can also impact gender relations and issues of hierarchy on both sides of your business dealings, particularly during the initial leasing process. By taking into account these differences from your very fist meeting, you will set the stage for an open and welcoming atmosphere.

Helpful tactics

Accommodating cultural differences does not have to consume a great deal of time or money as long as you are prepared. Before showing units to any potential renters, it’s a good idea (and prudent legal practice) to ask if renters have any special needs or requirements. By asking everyone, you will not stumble into issues of stereotyping or run afoul of the Fair Housing Act.

Additional challenges may arise after renters join your community. Cultural differences can create concerns over safety and maintenance, which in turn can affect your entire property.

• Some residents may not wear shoes in the home and pile them outside, creating a fire and safety hazard.
• Renters from some cultures may remove closet doors and burn incense or candles inside.
• Cooking smells can be distinctive and pervasive.
• Maintenance in some areas of the unit may become a concern, such as grease build-up in the kitchen or water damage in the bathrooms.
• Appliances may be damaged because of unintentional misuse.

In all of these cases, cultural differences are the root cause of the challenge.  Depending upon the culture of the renter, there are various ways that issues can be addressed to solve the problem without offending the client. Often, problems can be avoided by providing renters a list of leasing etiquette points that must be followed.  Essentially, it’s a list of do’s and don’ts, which can be useful for any renter.

Reminding renters that maintenance is available 24 hours a day, 7 days a week can be critical.  In some countries, maintenance service – particularly without an extra charge – does not exist. Familiarizing residents with the availability of the service can save a bundle on repair costs when the situation is one that requires immediate attention.

Sometimes, communicating with non-native English speakers can be challenging. Be mindful of the language you use in speaking with multicultural renters. Speak slowly and avoid compound words and idioms, which can be difficult for them to understand. Don’t be afraid to say you are having trouble understanding and ask someone to repeat themselves.

Interacting with multicultural residents can be an exciting and personally rewarding experience. Their traditions, stories and perspectives can enrich the lives of the entire community.  Moreover, from a business perspective, they cannot be ignored. Most all ethnic communities have an informal network that newcomers use to find sources of goods and services.  It could be damaging to a property if it were to develop a reputation as being unwelcoming to foreign-born renters.

Progressively minded property management companies will seize the opportunity to attract and retain this sizeable market segment.  Educating and training staff members to effectively communicate with multicultural renters will have an immediate and tangible effect on a rental community’s bottom line.

Vera Dordick | Company Website  |  LinkedIn Connect Tangible Development helps companies thrive in a world of flux through cultural awareness training and improved global communication skills. It offers customized consulting with special industry expertise in property management, hospitality, higher education, science and technology, health care and financial services.