According to the California Apartment Association (CAA), several new laws will impact multifamily housing this year. To help keep you informed of the changes, here’s a list of what you can expect.

Assembly Bill No. 60 – After January 1, 2015, the Department of Motor Vehicles will issue driver licenses to individuals who do not provide a social security number on their application, but provide satisfactory proof that their presence in the U.S. is authorized under federal law.

The DMV may also issue a license to an individual if they are unable to show proof of legal residence. The applicant may sign an affidavit attesting they are ineligible for a SSN and unable to show proof of legal residence.

It is a violation of the law to discriminate against an individual because they hold or present the license. The bill also prohibits using the license to consider citizenship or immigration status on the basis of criminal investigation, arrest, or detention. Click here for more information about AB 60.

While this change is new to the DMV, the multifamily housing and tenant screening industries already familiar with disregarding an individual’s citizenship status. Assembly Bill No. 976, Section 1940.3 prohibits landlords from inquiring about the citizenship status of a tenant, prospective tenant, occupant, or prospective occupant of a residential property. Click here for more information about AB 976, Section 1940.3.

Senate Bill No. 745 – All smoke alarms sold in California after July 1, 2014 will have a non-replaceable, non-removable battery capable of powering the smoke alarm for at least 10 years. The amendment does not apply to smoke alarms that have been ordered by, or are in the inventory of an owner, managing agent, contractor, wholesaler, or retailer on or before July 1, 2014, until July 1, 2015.

Beginning January 1, 2015, all smoke alarms must display the date of manufacture on the device, provide a place on the device where the date of installation can be written and incorporate a hush feature to be approved and listed by the State Fire Marshal. Click here for more information about SB 745.

Senate Bill No. 612 – A tenant may notify landlords that he or she, or a household member, was a victim of domestic violence, sexual assault, stalking, human trafficking, or abuse of an elder or dependent adult, and intends to terminate the tenancy.

To terminate the lease, the notification must be written and include one of the following attached to the notice:  A copy of the restraining order, emergency protective order or protective order from the courts; a copy of the police report; or documentation from a qualified third party, such as a doctor. Click here for more information about SB 612.

Assembly Bill No. 227 – This bill limits penalties to $500 for businesses that correct specified Proposition 65 violations, within 14 days of a notice of violation. These violations include exposure to chemicals known to the state to cause cancer or reproductive toxicity, such as engine exhaust and exposure to secondhand tobacco smoke on premises. Click here for more information about AB 227.

Senate Bill No. 254 – Establishes the Used Mattress Recovery and Recycling Act and requires the mattress recycling organization to develop a state plan for recycling used mattresses by January 1, 2015. Retailers by July 1, 2014 are required to give customers the option of having a used mattress picked up, at no additional cost, at the time the new mattress is delivered or at least give the option for free drop-off of the used mattress. Click here for more information about SB 254.

Assembly Bill No. 1092 – The Building Standards Commission is required to adopt building standards for the installation of future electric vehicle charging infrastructure for parking spaces in multifamily dwellings and nonresidential development. Click here for more information about AB 1092.

Assembly Bill No. 10 – Minimum wage will increase to $9 per hour on July 1, 2014 and $10 per hour on January 1, 2016. Click here for more information about AB 10.

With all the benefit of smoke-free rental housing, you may have decided a smoking ban is right for you.  There are several how-to guides to lead you through the process, but there are a few things you should know before you adopt your smoking ban:

1. To be enforceable, the no-smoking policy must be outlined in the lease agreement. Many landlords choose the easy option of attaching a Smoke-Free Lease Addendum to their existing lease. We’ve provided a sample of such an addendum in our post How to Draft a Non-Smoking Lease Agreement.  Note that the addendum is signed by the tenant.

But don’t stop there.

In addition to adding that lease addendum, it is important to re-read your lease agreement and all other attachments, looking for contradictions or omissions. For example, does your lease also provide for a smoking lounge or permissible places to smoke?  Does that contradict the Smoke-Free Addendum? If so, the contradiction must be resolved or the policy may fail.

Do your house rules include the smoking ban?

Review your remedies in the lease.  You need to have the right to evict a tenant who violates the smoking ban.  Be aware of any policies that require a warning before you take action against a tenant, particularly if that warning must be made in writing.

2. While the heart of the smoke-free policy is in the lease, in practice, it is easier to enforce those provisions if you make the non-smoking policy crystal clear to tenants from the very start.

Include “no-smoking” in your rental ads to discourage applicants who aren’t sure they can comply with the policy. List your vacancies in smoke-free rental listing databases to increase the odds of finding applicants who embrace the smoke-free policy.

Reiterate the smoking policy when you speak with prospects.

Include no-smoking signs around the property.

3. A sample smoke-free lease addendum may only cover tobacco smoke — cigars, pipes and cigarettes. If you want to include smoking cannabis or other “herbal” cigarettes, it is best to be clear in the addendum.

Enlist the help of a landlord attorney if you want to be sure your new lease is ironclad.

American Apartment Owners Association 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.

The owner and manager of an apartment complex in Kansas City, Missouri have agreed to pay $20,000 to resolve a complaint that they discriminated against a tenant with a disability.

The allegations stem from the tenant’s request to have a live-in caretaker.

According to the charges, the landlord’s policies required a tenant to remain in an apartment for six months before adding another person to the lease. The tenant told the apartment management company that her sister was willing to move into the apartment and provide the necessary care. The woman’s doctor documented her need for the accommodation, but the management company denied her request.

HUD, which pursued the claim, further alleged that the woman was forced to vacate her apartment and move to different housing out of state because of the management company’s refusal to grant her request.

The Fair Housing Act requires housing providers to make reasonable accommodations in their rules, policies, practices or services when needed to provide persons with disabilities an equal opportunity to use or enjoy a dwelling.

“When it comes to residents with disabilities, the rigid application of the same rules you apply to others can result in the denial of housing opportunities,” said Bryan Greene, Acting Assistant Secretary for Fair Housing and Equal Opportunity.

The owner and management company have agreed to pay the woman $20,000, adopt and implement a reasonable accommodation policy, and provide fair housing training for all employees that interact with tenants.

American Apartment Owners Association 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.

What’s in store for multifamily in 2014? That’s the billion-dollar question. To come to some sort of understanding about what the future holds, ironically, we need to take a look back at 2013.

• The demand for multifamily rentals in 2013 was unprecedented and housing providers had a hard time keeping up. The first and second quarters of 2013 saw a growth in new construction. And as these projects got underway they added new jobs in the construction segment at a rate of around 1,110 jobs for every 1,000 apartment units built.

• By the third quarter of 2013, 90% of U.S. cities have reported a boost in real estate prices across the board, outpacing previous national averages.

• One of the elements fueling growth is the recent boost in job growth, with the overall unemployment rate falling to 7% as of November. This means less people living with their parents or in other emergency housing and more qualified renters in the market for an apartment.

2014 AND BEYOND

Back to our original question—what’s in store for multifamily in 2014? Using the data from 2013, we’ve put together a list of trends to help keep you ahead of the curve.

Renting will become even more appealing. Housing prices and mortgage rates are going up, causing fewer people to buy. On the other hand, the increase in multifamily construction will add to the supply of apartments in 2014. With many of these being located in fast-growing cities, these apartments will likely be favored over single-family homes for many young adults.

People love their pets. Between now and 2018, the number of pet owners is estimated to increase by around 12% from 82.5 million to 92 million. Instead of banning pet ownership, you can tap into this growing trend and welcome pet owners to your community.

Tablets and smartphone sales are increasing. According to Forbes, 87% of electronic device sales will be tablets and smartphones. Remarkably, these mobile devices are slated to outsell desktop and laptop computers in 2014. Accommodate mobile prospects and applicants with On-Site’s mobile optimized online leasing tools.

Sharing quality content increases loyalty. More and more people are going mobile. Mobile devices and cellular data networks are going to keep getting faster to meet demand. Take advantage of the technology by posting high-resolution images and videos. Doing so can help generate a more active following and a higher ROI for your marketing efforts. By the way, On-Site can help. Our websites feature HD professionally hosted video tours.

Use the right tools and stay ahead of the competition. With the continuing construction projects, industry experts project that some of the largest metro areas will see big profits from rent growth. Seattle takes the cake, with many reporting it will see the biggest percent change in rentals as the city continues to grow. The San Francisco and San Jose Bay Area is on track to increase rent pricing by around 4.7% next year as the unemployment rate in the area dropped from 6.9% to 6.1%. Around the country, we’ll see an average 3% increase in rent pricing in 2014 as well (normally double the rate of inflation).

The bottom line is that the rental market is going to get very competitive in 2014. Stay ahead of the competition by putting tools in place that make it easy for renters to do business with you. On-Site’s full-featured leasing platform allows renters to shop for an apartment, apply, qualify and e-sign their lease in one continuous, online checkout process, optimized to run on the smart phones and tablets favored by millennial renters.

About On-Site.com | Founded in 1999 in Silicon Valley, On-Site set out to use the Internet to revolutionize the business of apartment management.

On-Site has grown to become the gold standard in the apartment business. We are self-funded and profitable, with growth fueled by award-winning marketing, leasing and mobile tools. We allow apartment operators to maximize occupancy, enhance quality control, maintain compliance and ensure consistent success at all levels of property operations.

Leasing apartments is a skill for property management professionals. To forecast the results, there are two measurable factors: the number of leasing opportunities who make appointments or arrive at the property; and the number (percent) that commit to lease.

Explaining the financial impact of vacant apartments and the recovery period will assist in creating a sense of urgency for the staff to secure leases and move ins.

With average rents of $600, every day an apartment remains vacant, the property loses $20. This doesn’t seem to be an amount of lost revenue to cause concern. The same twenty dollars increases to $140 each week. With ten vacant apartments, the loss is $200 each day, totaling $6000 per month. The property quickly has accumulated 3000 days of vacancy loss.

Facing this inventory of vacant apartments and several pending move outs; employing an occupancy matrix can forecast the timing to restore the desired occupancy. Part of this analysis includes the historical trend of prospective leasing visits received each week or month, and the number of sales/leases secured. A property supporting 20 leasing opportunities and securing 4 leases, has a closing ratio of 20%. With no changes or adjustments; to overcome ten vacant apartments would take more than 2 months, resulting in more than $10,000 of vacancy loss.

To increase move ins, the property needs more leases. This can be achieved by either increasing the number of leasing opportunities coming to visit the property or increasing the number of individuals who make the decision to lease.

Doubling the volume of visits to the property to 40 individuals will result in 8 leases. With this increased traffic, adding some closing tools; complimentary carport for a month, discounted security deposit, a structured follow up effort, the closing ratio could grow to 30%. This results in 12 leases. Occupancy can be back on track within thirty days instead of sixty, recovering a potential $6,000 into the revenue stream.

Without an adjustment to the number of visits or the leases secured, the number of vacant apartments lingers on resulting in a financial drain on the property. Setting goals for prospective leasing visits, securing commitments to lease and completing the move ins, will put the property on road to occupancy recovery.

Lori Hammond | Company Website | LinkedIn Connect | Lori has 30+ years’ experience in the Property Management Industry, working with both market rate and affordable housing.  Lori has been privileged to work with some tremendous industry leaders during employment tenures with Oxford Management, NHP Management, AIMCO, Alliance Residential, Boston Capital, The Sterling Group, P.K. Housing and currently Management Resources Development.

As the year comes to a close and a new one is set to begin, it’s a good idea to make sure your tenant leases are in order.

Simple oversights or non-compliance can lead to headaches, lawsuits, and if you’re not careful, thousands of dollars of losses.

Here are a few items you need to review:

1. Security Deposit Terms
Security deposits are perhaps the biggest bone of contention for both landlords and tenants.

One of biggest issues that often comes up is the actual amount of the deposit. Make sure that you are not overcharging tenants for their security deposit, or you could end up in hot water.Each state has very specific laws that regulate security deposits. It is worth a quick check to make sure your state has not changed their laws over the last year, and double check that you are compliant with any limitations written into the law.

Another hot button is when the security deposit needs to be returned. Make sure your policy is in line with state law.

If you allow pets, be sure to clearly stipulate whether a separate pet deposit is required, what the deposit covers, and when it will be returned upon acceptable surrender of the unit.

Be careful to check that your security deposit is clearly delineated from other fees that you may be charging, especially the non-refundable fees.

2. Who is Actually Living in Your Unit?
It is extremely common for tenants to flow in and out of a unit, without the landlord’s knowledge. One tenant moves on, and another one takes their place…but nobody notifies you.

In order for you to be able to enforce the provisions of your lease, every adult tenant in the unit needs to be listed on the lease.

So, it probably can’t hurt to send a friendly end-of-year notice to your tenants, confirming who is supposed to be living in the unit, based upon the names on the lease.

If you suddenly learn that the tenants have changed, you should run a tenant check on the new tenants and amend your lease to reflect the changes (assuming the results of the tenant background check are acceptable).

3. The Potential for Crime
Make sure your lease is compliant with the laws of your state in regard to criminal behavior.

Many cities and states are enacting ordinances that make landlords responsible for tenant crimes and other actions. It is not uncommon for these laws to require landlords to take legal action against a tenant in order to avoid hefty fines on the landlord.

In light of this reality, it is especially important to confirm that the tenants who signed the lease originally (those who passed a criminal background check) are still the same tenants that occupy the unit.

If not (and if they have unacceptable criminal backgrounds), you could find yourself in a heap of trouble if they commit a crime in your unit.

About the American Apartment Owners Association

American Apartment Owners Association offers discounts on products and services for all your property management needs. Find out more at www.joinaaoa.org.

By: Jason Randall | VP Product Management AppFolio

It wasn’t long ago when “mobile devices” and “property management” wouldn’t have been used in the same sentence. But as tablets and smartphones have grown both in power and capability, they’ve transformed the field of property management.

If a renter is searching for their next rental home, they’ll likely open up their smartphone, tablet or laptop and start investigating properties. Renters have the power to search by neighborhood, read online reviews, look into crime reports and view 3D previews of available units – all on their mobile devices.

Los Angeles Area Map Search with Crime Filer

Once they find a potential home, they can use their mobile devices to fill out applications, scan drivers’ licenses and send it off to the property management company – all without ever setting foot on the property. And after they’re moved in, they’re just as likely to use a mobile device to make rent payments, enter maintenance requests and communicate with property managers.

Property managers have also benefited greatly from the convenience and flexibility that mobile devices offer. Mobile apps and management portals let property managers screen prospective residents and access client accounts without even visiting their offices, resulting in expedited background checks and quick resolution to billing questions. And since long-distance residents can now apply for rentals remotely, property managers have a larger pool of potential renters. Property managers can use mobile payment apps for both accepting and processing payments, freeing them up to pursue other business.

If you’re new to mobile apps, all of this might sound like behavior that’s limited to just a few tech-friendly firms and residents. But mobile apps have really gone mainstream. At AppFolio, we’ve seen firsthand the increase in mobile usage and demand with the thousands of companies who use our Web-based property management software every day. We’re tracking the rapid growth of mobile across our customer base as well as with their residents and have gathered some interesting statistics:

• The number of residents who submitted rental applications from a mobile device rose by 22.37 percent in 2013
• Residents using online “Resident Portals” from a mobile device to submit maintenance requests or payments rose from 22.61 to 27.88 percent in one year
• Residents paying their rent from a mobile device rose from 16.96% in 2012 to about 25% in 2013 – a whopping increase of 45.34 percent
• Property owners are going mobile too, with a 29 percent increase in visits from mobile devices to owner portals to receive monthly statements

At this point, there’s no doubt that smartphones and tablets are becoming embedded in every facet of property management. As the world goes increasingly digital, modern residents will expect – and even prioritize – mobile convenience when choosing between properties. Luckily, it’s a convenience that benefits property owners and managers too.

Jason Randall is the VP Product Management with AppFolio, providers of Web-based property management software . He is responsible for setting the product and market entry strategy for all AppFolio products.

The best renters, those with high credit scores and low maintenance needs, are highly sought after in the new rental market. Renters report that they don’t mind paying a premium for a home where they feel safe and comfortable, but keeping those tenants will take more than amenities. Adding bells and whistles is just as much a dead end game as lowering the rent and no property owner will survive long without a strategy to attract and hold onto the best tenants.

Great tenants are getting harder to find and the competition is heating up to find them, even if they are not in the market for a new apartment currently. Big data and aggressive marketing techniques are the hallmarks of the emerging rental market. At the recent Apartment Rental Management conference in Miami, Kelly Maguire, an executive director at SAS, clearly laid out the future of the rental market, where owners “need to be more strategically oriented, consumer focused and be more technologically advanced.”

The new renter is older and ready to settle down a bit, according to 2012 statistics from National Multi Housing Council . For those under 30, just over half, 57 percent, are renters. That percentage increases with age. From 30-44, almost two thirds are renting at 63 percent.  Those numbers jump up to 78 percent for baby boomers aged 45-64 and the really surprising number is 84 percent of seniors are now in the rental market. We can expect those to stay high or increase as the population bubble ages. The new renters are older, wiser and accustomed to being treated with respect. Here are three suggestions for making the ideal tenants feel at home for the long haul.

1. Make it personal

The rental market has moved from one of price sensitivity to value sensitivity. Renters say they want reasonable rents, but they are more concerned about how they are treated. They could easily get lower rent or more amenities elsewhere, but most stay for  the way they are treated by the staff.

The wise owners will retain these renters by personalizing the interactions, with things like thank you notes, flowers in the apartment when new tenants move in or an online presence that covers relevant activities in the neighborhood. Remember that the new renter cares about local, mobile and social information.

2. Be an early responder

The world outside is unpredictable enough. The new renter finds uncertainty about issues in their home extremely stressful. Respond quickly when they contact you and clearly communicate a policy about call back times.

Remember that tenants will be focused on results instead of explanations. Even if you only want to assure tenants that the circumstances that led to the problem won’t be repeated, don’t. Explanations tend to sound like excuses to the renter. All they really want to know is when it will be fixed.

3. Start now

Consider your lease renewals as new sales rather than administrative burdens. Good tenants are those who plan ahead, and they may well be planning for a new apartment six months before the end of their lease. Ask how they like living there and what would make their lives easier to begin discussions about renewal.

Remember that how you ask matters as much as what you say. Alex Jackiw, managing director of residential client services at McKinley, pointed out that 67 percent of clients in a recent survey chose email as their preferred method of contact from leasing offices.

Today’s advanced databases for rental management are able to handle a great deal of information about tenant preferences and interactions. Use the tools at your command to learn who your best tenants are and what they need to feel at home.

Justin Alanis | Company Website | LinkedIn Connect | Justin Alanis is the Co-Founder and CEO of Rentlytics Inc.  Rentlytics is based in San Francisco, CA providing deep analytics for apartment property owners and managers. View and analyze property operational and financial metrics more effectively and identify issues.

You probably know someone who has recently purchased a new vehicle; it’s all about the touch screen features, navigation, adjustable cup holders and maybe the average miles per gallon. No one has to tell you it has a motor, four wheels, or even a transmission.

If you apply this descriptive process to our apartments; how often are we focusing on the cup holders?

Are you selling the extra shelf in the refrigerator, the energy star appliances or the hundred lineal feet closet storage?  Or are you giving them the “four wheels” – Here is the kitchen, There is the closet…

Finding the “cup holders” will make you stand out from your competition.

• How many shelves are in your cabinets?
• How many racks in the oven?
• Calculate the cubic feet of storage space in the cabinets, linen closet or pantry.  Know the potential savings from the Energy Star appliances.  ([1]Energy Star)

Focusing on the cup holders for yours sales presentation creates an individualized memory for your prospect. They will leave your property remembering the special details you have described: 1200 lineal feet of closet storage, not another vanilla square with four walls and kitchen appliances.

Find a cup holder!  You’ll be surprised how many you’ll find once you start looking!

Lori Hammond | Company Website | LinkedIn Connect |Lori has 30+ years’ experience in the Property Management Industry, working with both market rate and affordable housing.  Lori has been privileged to work with some tremendous industry leaders during employment tenures with Oxford Management, NHP Management, AIMCO, Alliance Residential, Boston Capital, The Sterling Group, P.K. Housing and currently Management Resources Development.

Contrary to popular belief, public relations (PR) means more than just press coverage and media interviews. There are several aspects of PR, from press releases, to internal communications, to reputation management, and many things in between. PR builds your brand’s visibility and fosters a positive perception. In the multifamily industry, there are a variety of reasons why PR is relevant to you. Here are a few instances where PR is valuable:

Market Launch. If you are in the process of building a new apartment community, having a focus on PR is extremely valuable for the development of your brand. You’ll need to put a launch strategy in place that includes communication efforts internally as well as externally. Pitch information about your new community to local newspapers and lifestyle magazines, and consider participating in events within your neighborhood to spread the word about your new apartment community. It’s always best to begin planning a PR strategy as soon as possible, in order to build anticipation and interest before you actually begin the lease-up.

Brand Awareness. Whether your community is newly constructed or well established, you want people to know about it! It’s critical to stay at the top of people’s minds in order to build your community’s visibility in your local area. From participating in local events, to branded materials, to media coverage – it all plays a role in reinforcing the power of your presence. Scope out events or media opportunities where you’ll be able to showcase your community and draw the attention of potential renters. Occasionally, you may find that your community has important or exciting news that is worthy of writing and sending a press release to the media. MultifamilyBiz and PitchEngine both offer free press release distribution services.

Reputation Management. Managing your reputation is arguably the most important aspect of PR – regardless of whether the buzz about your community is positive or negative! You should have a social listening platform in place in order to accurately track what renters and prospects are saying about your community. If you’re receiving positive feedback, that’s great. But don’t stop there – let the positive reviewers know that you appreciate them sharing kind words about your community. A simple ‘thank you’ goes a long way! If you have any negative feedback, be sure to address the concerns of the reviewers and do what you can to correct the situation. You would be surprised at how easily you can turn a negative into a positive by showing that you truly care about the situation and are willing to work hard to fix it! Take a look at this Reputation Management eBook for more tips on how to build and maintain a positive brand reputation.

Utilize PR as a vehicle for growing your company. Every press release you send, every consumer interaction you are a part of, and every event you participate in contributes to the establishment of your brand. Always seek ways to put your community’s name out there – often, you can find PR opportunities that are no cost or very inexpensive. Try your hand at blogging, create social media pages for your community and engage with fans and followers, or cross-promote with other brands to expand awareness for your community – all are great, inexpensive forms of PR for your community!

Brittany Worrell Boyce | Company Website | LinkedIn |  Brittany is the Marketing & Communications Coordinator at For Rent Media Solutions. She specializes in creating internal and external communications for the brand, including press releases, industry articles, sales collateral, and email marketing. Brittany holds a Bachelor of Arts degree from Virginia Tech.