on-site rental housing journal april 2015

Rental Housing Journal On-Site April 2015 - Vol. 9 Issue 04

WWW.RENTALHOUSINGJOURNAL.COM PROFESSIONAL PUBLISHING, INC

PUBLISHED 21 YEARS

17,000 PaPers Mailed Monthly to Puget sound aPartMent owners, ProPerty Managers & Maintenance PersonnelPublished in association with: Washington Apartment Association, IREM & Washington Multifamily Housing Association

3. Tenant Screening Between a Rock and a Hard Place

4. Taking A Pulse Check On Your Attitude5. Accelerating Housing Costs Have Renters Feeling the Squeeze

8. Multifamily Apartment Marketing: Are You Missing Out On New Leases?

Property Management of Section 8 and Housing Choice Voucher Programs

9. Ask The Secret Shopper

11. Legislative Session Update from Olympia

12. Ed-Con WmFHA 2015 Education Conference and Exposition

16. Behind the Leasing Desk18. Rental Boom is Boon to Seattle Economy, Contributing $15.5B Locally in 2013

22. Student Loan Debt Affects Real Estate Investments in a Big Way

...continued on page 17

Market Regains Momentum after Winter Slowdown

By Derek P. Leuzzi

The Rental Registration and Inspection Ordinance (RRIO) was estab-lished by the Seattle City Council in fall

2012. The ordinance requires Seattle landlords to register their rental unitsin cases where the property has five or more units the deadline was March 31, 2015. Every unit that

is rented in Seattle must be regis-tered according to the published schedule, with some notable excep-tions including com-mercial lodging and adult family homes. See the website for details on exceptions.1

Safety and MaintenanceThe ordinance is an effort to

improve the housing conditions within the city and ensure basic safe-ty and maintenance. Every unit available for rent will be inspected

over the next 10 years to ensure habitabil-ity. Inspections will be con-ducted by a professional and the results will be kept on file at the Depart-ment of Planning and Development.

Next StepsLandlords must ensure all hous-

ing units are up to code and well-maintained. The checklist used by the inspector is available online and

Seattle Landlords: Deadline to Register Your Rentals is Here

continued on page 7

Seattle

The latest Apartment Insights nonrandom survey shows rents increasing $28 per unit and vacancy dropping to 4.46%, according to Tom Cain of Apartment Insights. The data are from his Seattle firms 1st quarter statistics and trends on 50+ unit properties in the King/Snohomish market.

VACANCY: 4.46% The vacancy rate for our nonran-

dom survey of conventional, stabi-lized 50+ unit properties in the King/Snohomish market is 4.46%. This is down slightly from last quarter's 4.55%. It was 4.3% a year ago.

The overall vacancy rate which continued on page 6

By Mike Scott

The market vacancy rate is 3.5% in the Puget Sound region, down from 3.8% last fall and close to the 3.6% level it was at a year ago. The market rate excludes vacancies in new proper-ties in lease-up. Counting those, the gross vacancy rate is 4.7%, the same as it was last fall. Thats not bad, especially considering developers opened more than 5,000 new units in the past six months.

Our current five-year forecast, published in December, expected the market rate to be 3.8% now and the gross rate to be 4.7%. The fore-cast also expected vacancies to stay low through the summer and then start to climb due to pressure from all the new construction scheduled to open this year and beyond. We will update our forecast in April.

These are some of the findings of our spring survey of 20-unit and larger apartments in the Puget Sound region, published in the

Apartment Rental Market Trends

for the Puget Sound Region

King, Pierce, Snohomish, Kitsap, and Thurston

counties

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By Paul Prudente, Moco Inc,MyScreeningReport.com

The RockA failure to adequately screen

prospective residents can have a devastating impact on the bottom line NOI & equity.

Further, there is a well-established duty to exercise care in screening prospective residents. A failure to do so has resulted in disaster followed by substantial civil penalties.

The Hard PlaceThere has never been a more hos-

tile legal and regulatory environ-ment when it comes to tenant screen-ing.

First, there is a large and evolving body of law regulating consumer reporting (including tenant screen-ing). There is, of course, the federal Fair Credit Reporting Act (FCRA) as amended by the FACT Act. States often have their own consumer reporting statutes which may or may not align neatly with the FCRA. Bottom line these laws impose spe-cific requirements on landlords (End-users as defined in the FCRA) as well as consumer reporting (tenant screening) agencies. A failure to comply can result in lawsuits or reg-ulatory action!

Then there is Title VIII of the Civil Rights Act (as amended) which pro-hibits discrimination in housing based on race, religion, national ori-

gin, gender, disability and family status. State law often expands on the list of protected groups. Landlords know better than to inten-tionally violate fair housing law. It is the emergence of the disparate impact form of discrimination that poses the greatest risk these days.

The disparate impact legal theory holds that a so-called facially neu-tral business practice that has a disproportionate impact on protect-ed individuals may form the basis of a Title VIII (fair housing) claim. A good example might be the practice of denying tenancy based on records of arrest alone (versus convictions). Another is to deny tenancy for any and all criminal convictions regard-less of the nature of the offense or

when it occurred. It is well estab-lished that such practices have a disparate impact based on race & national origin.

The Good NewsThe good news is that it is possi-

ble to thoroughly vet prospective residents and to mitigate the risk of legal or regulatory action. Heres how:

1. Limit consideration of criminal records to convictions (versus records of arrests). Develop a list of serious offenses that are truly pertinent to the tenancy. Consider only those where the date of final disposition antedates the report less than seven years.

2. Develop and consistently follow formal (and objective) rental cri-teria. A critical step in develop-ing criteria is deciding what is acceptable in terms of credit, rent-al history, criminal and eviction history, length of employment and income within the context of what is reportable.

3. Use a well-designed (and legally compliant) application to rent.

Tenant Screening Between a Rock and a Hard Place

Landlords are truly caught between a rock and a hard place when it comes to tenant screening.



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Hard times that sap your ener-gy and leave you frustrated are an inevitable part of life.Maybe you lost a job. Maybe your

finances took a turn for the worse. Maybe your personal life is in disar-ray or a health problem emerged forcing a lifestyle change.

Such setbacks can leave people feeling afraid, uncertain, angry or unsatisfied, says Darlene Hunter, a renowned speaker and author of Win-Ability, Navigating through Lifes Challenges with a Winning Attitude, (www.darlenehunter.com).

Overcoming those emotions, she says, comes down to a persons mindset and perspective.

Your attitude is a critical factor that can either hold you back or help you move forward, Hunter says. Everyone needs to take the time to do a pulse check on where they are in their thinking. Is it positive or negative?

A positive attitude comes easily when life is rosy. The real trick is persevering when things go awry so you can continue to strive toward your goals.

The important thing to remem-ber is that we cannot give up just

because things do not work out the way we want, Hunter says. We must be persistent and press our way through to the end.

Hunter offers five tips that can help change your thinking, which in turn will change your behavior and, ultimately, change your results.

Be a planner. To live your dream, you need to know what you want and have a plan for getting there. Planning your day, week and month are critical ingredients to living your dream and purpose, Hunter says. The how and why elements are important factors in planning, as they guide you in the direction you want to go.

Be goal oriented. Once you set goals, the next step is to work on completing them. Thats why its important to set goals you can accomplish. Each time you can check a goal off your list, you are one step closer to what you ulti-mately want to achieve. The sense of accomplishment that comes from reaching even the smallest goals will help you keep moving and striving to get your desired end, Hunter says.

Be driven for results. When you are driven, Hunter says, you have a compulsive and urgent desire to accomplish what you are seeking, whether its a bonus, a promo-tion, additional knowledge in a particular area or some other goal. The important factor is to always know what you are seek-ing. Results-driven people focus on meeting objectives and deliv-ering on the goals they set.

Have a winning attitude. You must be determined, dedicated and devoted to succeed. You should never give up on your goals and dreams simply because something goes wrong or you are not getting where you hoped to be fast enough, Hunter says.

Be focused. When you are focused, you have a clear percep-tion and understanding of what you want to accomplish and where you need to go to get there. Think about long-distance run-ners who will run a 26-mile mara-thon, Hunter says. They find their pace and then they stay with it. They may get weary and tired, but they find their zone and stay focused and concentrate on what

is needed to get to the end.Plenty of stories can be told

about people who failed in the begin-ning, but made it to the top of their profession because they did not give up after being told they werent good enough, Hunter says.

The ability to keep trying and pushing no matter how many fail-ures or obstacles you hit is the power of perseverance and is what Win-Ability is all about.

Darlene Hunter, (www.darlenehu-nter.com), is president of Darlene

Hunter & Associates, LLC, a motiva-tional / inspirational speaker, author,

life and business coach, and award-win-ning radio talk show host. Her new

book, Win-Ability, Navigating through Lifes Challenges with a

Winning Attitude, is her fourth on the theme of perseverance. She is the host of The Darlene Hunter Show, winner of

the Fishbowl Radio Network 2013 Distance Show Of The Year Award. Hunter has been a top performer in

management for more than 30 years.

Taking A Pulse Check On Your AttitudeA Change In Thinking Can Lead To A Change In Behavior And Results, Says Sought-After Speaker



Accelerating Housing Costs Have Renters Feeling the Squeeze

WASHINGTON, March 16, 2015 /P R N e w s w i r e / -- The gap between rental costs and household income is widening to

unsustainable levels in many parts of the country, and the situation could worsen unless new home construc-tion meaningfully rises, according to new research by the National Association of Realtors.

NAR reviewed data on income growth, housing costs and changes in the share of renter and owner-occupied households over the past five years in metropolitan statistical areas1 across the U.S. The findings reveal that renters are being squeezed in many metro areas throughout the country due to the disproportionate growth in rental costs to incomes. New York, Seattle and San Jose, Calif.are among the cities where combined rent growth is far exceeding wages.

Lawrence Yun, NAR chief econo-mist, says the disparity between rent and income growth has widened to unhealthy levels and is making it harder for renters to become home-

owners. "In the past five years, a typical rent rose 15 percent while the income of renters grew by only 11 percent," he said. "The gap has wors-ened in many areas as rents continue to climb2 and the accelerated pace of hiring has yet to give workers a meaningful bump in pay."

According to Yun, the share of renter households has been increas-ing and homeownership is falling. Those financially able to buy a home in recent years were insulated from rising housing costs since most take out 30-year fixed-rate mortgages with established monthly payments. Furthermore, a typical homeowners' net worth climbs because of upticks in home values and declining mort-gage balances. The result has been an unequal distribution of wealth as renters continue to feel the pinch of increasing housing costs every year.

"Meanwhile, current renters seek-ing relief and looking to buy are fac-ing the same dilemma: home prices3 are rising much faster than their incomes," adds Yun. "With rents tak-ing up a larger chunk of household incomes, it's difficult for first-time buyers especially in high-cost areas

to save for an adequate downpay-ment."

NAR's research analyzed changes in the share of renters and home-owners, mortgage payments, medi-an home prices, median household income for renters and the rental costs in 70 metro areas.

The top markets where renters have seen the highest increase in rents since 2009 are New York (50.7 percent), Seattle (32.38 percent), San Jose, Calif., (25.6 percent), Denver (24.14 percent) and St. Louis (22.26 percent).

Looking ahead, Yun says a way to relieve housing costs is to increase the supply of new home construc-tion particularly to entry-level buy-ers. Builders have been hesitant since the recession to add supply because of rising construction costs, limited access to credit from local lenders and concerns about the re-emergence of younger buyers. Yun estimates housing starts need to rise to 1.5 mil-lion, which is the historical average. Housing starts have averaged about 766,000 per year over the past seven years4.

"Many of the metro areas that

have experienced the highest rent increases are popular to millennials because of their employment oppor-tunities," adds Yun. "With a stronger economy and labor market, it's criti-cal to increase housing starts for entry-level buyers or else many will face affordability issues if their incomes aren't compensating for the gains in home prices."

The National Association of Realtors, "The Voice for Real Estate," is America's largest trade association, representing 1 million members involved in all aspects of the residential and commercial real estate industries.

Regional median home prices are from a separate sampling that includes rural areas and portions of some smaller metros that are not included in this report; the regional percentage changes do not necessar-ily parallel changes in the larger metro areas. The only valid compari-sons for median prices are with the same period a year earlier due to seasonality in buying patterns. Quarter-to-quarter comparisons do not compensate for seasonal chang-


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Momentum after Winter Slowdown ...continued from front page

Publisher Will Johnson [email protected]

Designer Steve Olsen [email protected]

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Will Johnson [email protected] Terry Hokenson [email protected]

includes properties in lease-up increased from 6.44% to 6.59%. King has a vacancy rate of 4.29%, down from 4.47%, and Snohomish County bumped up to 5.11% from 4.83%.

For the second straight quarter, the University District has the lowest vacancy rate, 2.36%. Ballard still has the highest vacancy rate at 7.73%, but it saw the greatest improvement of any submarket. The vacancy rate here was in the 10% range the two previous quarters. Areas above 6% are Seattle's First Hill, East Bellevue and South Everett.

RENTAL INCENTIVES: $15 (1.1%)

Rental incentives eased this quar-ter from $17 to $15 per month. In the two-county area 26.2% of the proper-ties are offering incentives, up from 24.8% last quarter.

ABSORPTION: +1,290 Units Overall, there were +1,290 units

absorbed this quarter, down from +1,658 units in the fourth quarter. The greatest absorption occurred in Kent with over 150 units.

RENTS: $1,341 per Unit $1.60 per Square Foot

Rents climbed $28 to $1,341 per unit, a significant increase of 2.1%. However, this came on the heels of a $5 drop last quarter.

At the top of the chart are the

downtowns of Seattle and Bellevue, where rents are $2,084 ($2.53 sf) and $1,961 ($2.22 sf) per month, respec-tively. These submarkets were among those experiencing the strongest increases. The other is Ballard. Rents here increased to $1,682 ($2.43 sf). However, rents in Ballard had declined over the past two quarters.

Renters can still find average rents for under $1,000 in SeaTac and Des Moines.

NEW CONSTRUCTION There are currently 19,560 units

under construction, just above the 19,280 last quarter and 14,884 units a year ago. Forty-six percent of these are in the city of Seattle, 24% on the Eastside, 22% in South King, and 8% in Snohomish County. Seattle's share of new construction has been in decline for some time. Even though at 46% Seattle is about double that of the Eastside and South King, it is way down from its 73% share two years ago.

Featured in the photo, the 386-unit Premiere on Pine in downtown Seattle opened in the first quarter. It was developed by Holland Partner Group and is managed by Holland Residential.

There are 12,392 units that have either opened or are under construc-tion with a 2015 completion date. If they are all up and running this year, it will break the record set in 1989.

We have preliminary information for the next two years. We are track-ing 12,192 units that are either under way or scheduled for a 2016 comple-tion. For 2017 the number is 5,911 units.

The grand total for all of the units in various stages of the pipeline is 53,790 units. This is up from 52,668 units last quarter and 46,755 units a year ago.

OBSERVATIONS After a weak fourth quarter, first

quarter results show the market's continuing strength. The vacancy rate declined to 4.66% and rents surged $28 per unit.

We were surprised and impressed with the performance of the Ballard area. There have been more units built in this submarket relative to the existing stock than in any other sub-market. Yet, the vacancy rate dropped 275 basis points to 7.73% and rents increased nearly 5% after two quar-ters of no growth. The overall vacan-cy rate which includes properties in lease-up is still very high at 17.69%.

There is one statistic that we always mention but doesn't get much attention. It is worth highlighting this quarter. The overall vacancy rate that includes properties in lease-up is currently 6.59%. While it is up from just 6.44% last quarter, this vacancy rate hasn't been this high in four years.

2015 is potentially a record-break-ing year for new construction. Last year's job growth was a hefty 3%. Projections for this year are in the 2.5% range, which will still create plenty of demand for apartments. Another plus for the rental market is the scarcity of homes on the market for first-time home buyers. Also, since home values increased 6% over the past year, they are less afford-able.

Our outlook for 2015 is still the same as it was last quarter. Income streams will slow a little but the mar-ket will be solid.

Tom Cain of Apartment Insights Washington is a member of the non-profit Central Puget Sound Real Estate Research Committee in charge of providing apartment rent and vacancy data. Tom has been a mem-ber of the Committee for over 25 years, and has been researching apartment market trends in the Seattle area since 1978. His company surveys the five counties in Central and South Puget Sound.

This article highlights survey results that subscribers can access from an

online database of all 50u+ properties. Apartment Insights also provides cus-

tomized rent reports and market reports. HYPERLINK "http://www.

apartmentinsightswa.com/"www.apart-mentinsightswa.com 206-632-2220

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is similar to a move-in checklist. Owners will be notified when a proper-ty has been selected for inspection. Owners may hire either a City inspector or qualified private inspec-tor to conduct inspections for a fee. The approximate inspection fee is $130 for the property including the first unit, and $25 for each additional unit on the same property.

One of the effects of the new ordi-nance is that illegal units including unauthorized mother-in-law or accessory dwelling units will be found and shut down. Landlords are strongly advised to confirm their rental units are legal and properly zoned. A landlord may be required to pay relocation assistance if a prop-erty is determined to be illegal or uninhabitable.

Non-ComplianceThere is a $20 late fee and the

potential for significant monetary penalties for not registering rental units in compliance with the new

ordinance. Tenants will now be able to research and find out if a unit is habitable, legal, and registeredand report to the City if the rental is not in compliance. Further, land-lords may be prohibited from evicting ten-ants if the rental is unregistered with the Department of Plan-ning and Development, regardless of whether just cause exists.

Registration Fees and Dead-lines

The cost to register the first rental unit for five years is $175.00. Each additional unit costs only $2.00 to register, with a modest per unit dis-count after 10 units. Rental registra-tions must be renewed every five years. Every rental must be regis-tered, so if you add a unit, you must also add a registration.

Properties with five or more units should already be registered as of March 31, 2015. For properties with 1-4 units, there is a registration dead-line schedule based on ZIP codes available online.

For tips or help on how to comply with this ordinance, contact the Seattle Department of Planning and Development or your legal resource.

1www.seattle.gov/dpd/codes-rules/codes/rentalregistration/

Checklist: http://www.seattle.gov/dpd/cs/groups/

pan/@pan/documents/web_information-al/s048492.pdf

Registration table by zip code for units 1-4:

http://www.seattle.gov/dpd/cs/groups/pan/@pan/documents/web_

informational/s047748.pdf

For more information visit: http://www.seattle.gov/dpd/codesrules/

codes/rentalregistration/

Derek Leuzzi is an associate at the Loeffler Law Group PLLC. Mr. Leuzzis

practice emphasizes landlord-tenant relations and real estate litigation. He received his law degree from Gonzaga University School of Law in 2012. He has published articles on topics related

to environmental, construction and real estate law.

Register Your Rentals...continued from front page

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NEW PRODUCT!

By John Wilhoit Jr

Many people believe that property management is an old-line business that moves slowly. If you believe that then your team is already half a mile behind in a one mile race. In other words; you are toast because the competition is using all the best prac-tices at their disposal to make sure they close every new prospect that steps on their property.

If your on-site team is under-trained consider revising your pro-cedures to get quality marketing in motion in real-time. In other words,

implement best practices with the end goal in mind; closing more (lease) sales. Following are three areas to implement improvements.

Leasing and Sales staff training. All of your marketing falls down if once the prospect come to your door there is no one there to greet them and begin the process of becoming a new resident. Your team must know how to implement the leasing sales process and engage accordingly. The process must be seamless. Gaps in training lead to fewer closed leases.

Market surveillance (knowing competitive assets). Full time prop-erty management businesses under-

stand that market dynamics change at a velocity much faster than the casual observer believes. Utilizing current market information means keeping continually in the loop on pricing and incentives offered by competitors. Knowing, really know-ing, the attributes and pricing of directly competitive assets is para-mount to understanding your place within the market.

Absorption (unit counts). Being up-to-date with changes to unit counts in your marketplace (and submarket) is imperative. With new construction, absorption is an abso-lute number but there is more to unit

counts. Assure that your team is aware of current and pending chang-es to the competitive marketplace.

Gaining a new lease is a process. Preparedness is the initial stanza of the process; prepared leasing staff, sales material, office reception, ready units, grounds. These are all part of your property presentation towards making the sale and gaining a new resident.

Published courtesy of Multifamilyinsight.net

Multifamily Apartment Marketing: Are You Missing Out On New Leases?

By Marc Courtenay

If youre looking for residents who have incentives to pay their rent on time each month look no further. Those who qualify for fed-erally sponsored housing assistance programs backed by the only organi-zation that can legally print moneythe federal governmentawaits you!

The oldest program has been

around nearly 80 years! Section 8 of the Housing Act of 1937, authorizes the payment of rental housing assis-tance to private landlords on behalf of approximately 3.1 million low-income households. It operates through several programs, the larg-est of which, the Housing Choice Voucher program, pays a large por-tion of the rents and utilities of about 2.1 million households. The US

Department of Housing and Urban Development (HUD) manages the Section 8 programs.

One property manager I inter-viewed who participates in the Housing Choice Voucher program said she feels secure knowing the government funds will be deposited in her clients bank account every month. She explained the HUD-managed program was meant to pay for a portion of the rents and utili-

ties of those in its care. But often, as she explained, payments are greater than competitive rental prices.

A Real-Life Example of How Section 8 Renters Pay Off for Landlords

Instead of renting a recently vacated house on the open market, the property manager encouraged her landlord-client to offer it to the local Section 8 housing authorities.

Property Management of Section 8 and Housing Choice Voucher Programs

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Rock and a Hard Place ...continued from page 3The application does two things for you. It collects the informa-tion you need to begin the screen-ing process and it provides (the applicant with) the disclosure and authorization wording required by state and federal consumer reporting law.

4. Provide a copy of your criteria with the application so the applicant knows up front whether they qualify or not. It is not only the right thing to do. It saves time and money for you and your applicant!

5. Use a reputable and legally com-pliant tenant screening company lean on them for help with (FCRA) compliance, process and forms. Consumer reporting law is complex, at times ambiguous and often conflicted. Tenant screening companies live and breathe this stuff on a daily basis. No sense reinventing the wheel!

6. Issue Written Notices of Adverse Action immediately upon deni-al or conditional approval of an applicant. Make sure that your tenant screening company responds quickly and respectfully

to requests for copies or disputes regarding the content (of tenant screening reports).

So while it may be true that we find ourselves between a rock and a hard place these days. It is also true that by following a few best practices we can thoroughly screen prospec-tive residents without running aground!

Paul Prudente is vice president and general manager of Moco, Incorporated, a specialized consumer reporting agen-cy focused on delivery of quality tenant

and pre-employment screening services for the rental housing industry. He has been at the helm of Moco for nearly 12

years. He is principal architect of its pioneering direct-to-consumer tenant

screening facility marketed under the MyScreeningReport.com brand

developed in collaboration with the low income housing community and

designed to address the needs of a grow-ing independent rental owner market-

place.

The importance of teamwork can not be overstated or emphasized enough. Yet sometimes boundaries are so clearly drawn regarding the role or job description of each staff member, that those who desire to go the extra mile are forced to remain at the starting line and watch prospects and residents fall through the cracks.

I was recently asked the following

question which brings up the issue of maintenance and leasing staffs getting involved with each others job duties:

Q: Is it appropriate for mainte-nance staff members to get involved in the leasing process and how far should they go?

A: This is a very important sub-ject, and it brings up another ques-

tion: Is it appropriate for leasing/office employees to get involved in some aspects of maintenance and how far should they go?

As property management compa-nies have to make difficult budget decisions. Some budget cuts have involved a reduction in leasing and maintenance personnel. The result is less office coverage and slower response time to resident requests, as one or two team members are trying

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In order to continue our strong commitment to the multifamily industry and represent our mem-bers through legislative advocacy, the Washington Multi-Family Hous-ing Association continues to work hard for you.

The Government Affairs team at WMFHA has been tracking legisla-tive issues in Olympia the past three months. Through the efforts of our lobbyists and volunteer members, we have testified at several public hearings, either for or against pro-posed legislation, to ensure our members needs and the industrys interests are considered carefully by lawmakers.

In February, our association mem-bers and staff joined a coalition of other state housing associations and interested parties in our annual Day

on the Hill Lobby Day in Olympia. Over 75 advocates from our

industry met with our local legisla-tors to educate them on the critical work we do to create vibrant com-munities through providing safe, affordable, quality housing.

Every year, poor legislation is introduced that would create hard-ships on multifamily owners, man-agers and residents alike, and our goal is to explain to our public offi-cials the importance of our industry to the local and state economy, and our perspective on bills introduced that session.

Here is a summary of legisla-tive issues effective April 7, 2015:

Only one bill relating directly to landlord issues remains in play in Olympia.

SB 5538: Procedures for Dealing with Deceased Tenants Property. This bill creates procedures for deal-ing with the personal property of a deceased tenant who is the only occupant of a rental unit. The Senate bill passed by a vote of 47 0. The House Judiciary Committee passed an amended version of the bill. We continue to work with tenant advo-

cates to come up with language that all parties can accept. WMFHA posi-tion: Support.

The Following Landlord Bills Are Dead For This Session: HB 1257: Portable Tenant

Screening. This bill defined a comprehensive screening report. If a landlord is presented with the opportunity to access such a report on-line, the landlord must either accept this report or pay for any additional report the landlord wants to use. The House bill was amended to change the effective date to May 1, 2017 and passed the full House. The bill was not given a hearing in the Senate. WMFHA opposed the bill because of the complexities of the screening process and the mandate this would have enacted.

SB 5221: Allows for Disposition of Tenants Property after Eviction. The bill allowed a landlord to dispose of any tenant property that has been removed from the unit during a physical eviction after a 5-day waiting period. The bill passed the Senate

by a vote of 47 0 but did not get reported out of the House Committee. WMFHA supported this bill.

HB 1460 / SB 5376: Prevents Screening Companies from Disclosing Eviction Lawsuits in Limited Circumstances: The Senate bill was amended. It provided that screening companies would be prevented from disclosing the existence of a filed eviction lawsuit that has been sealed by a court order. There is no direction provided in the bill to govern rules or procedures for sealing such court files. The House bill is dead. WMFHA opposed because of the lack of guidelines for sealing.

HB 2051 / SB 5377: Requiring 90-days Notice for Rent Increases of 10% or More. Seattle already has an ordinance that requires 60-days notice for a rent increase of 10% or more in any 12-month period. These bills would have authorized but not require a city to adopt a law that could require 90-days notice for such a rent increase. They would

Legislative Session Update from Olympia

continued on page 15



Registration, Breakfast, Networking And Trade

Show: 8:00am 8:30am

Special Keynote Address

8:35am - 9:20am

Your Determination = Your Destination

Toni Blake

Passion, drive and a standard of excellence determine how far an individual goes in life. Your level of success is a direct result of your per-sonal determination. What is your finish line? What is your job? When are you finished? Join Toni for an inspirational journey of excellence and establish foundations for your new finish line.

Class Session

One: 9:30am - 10:30am

Mastering Magical

PersuasionTraci Brown

Room 405:

Discover the secrets of how to strategically use your body language to persuade & influence. Increase your bottom line & get lots more of what you want.

Do you know how to instantly read your clients? Can you tailor your body language and arguments

to fill their unconscious needs? This Talk Will Teach You How!

Your clients are always communi-cating with you. Do you know what theyre saying? You are always com-municating with your clients. Do you know what message youre sending?

Its true. You are unconsciously communicating all the time in any situation: Networking Sales Meetings Negotiations With Your Kids or Spouse

Its your responsibility to hear what others are telling you and then give them your message in the way they need to hear it. The end result is a person thats open to whats being said and easily influenced because deep unconscious needs are being met and objections are eliminated or bypassed.

This program is fun and includes lots of exercises. Participants will leave more flexible in their commu-nication: seeing the world with new eyes and listening with new ears. These skills will assist you in the office and in your personal life.

Youll learn: How to get people to like you

using only body language How to read body language Three questions you can ask

anyone to instantly connect with them

Four Magic Words and Phrases to persuade anyoneAnd MUCH more

Jumping Over Renewal Objections in a Single

Bound!Jen Piccotti

Senior V.P of Education & Consulting, SatisFacts Research

Room 406:

Raising rents at renewal can be challenging, especially in todays market of higher than average rent increases. In today's market, most residents expect that another year at your community will include a rent increase, so if you are encountering major objections it may be time to examine the issue more closely. Learn the latest metrics on what drives these objections and a 6 STEP PLAN to successfully negotiate a renewal discussion!

Tradeshow and Networking:

10:30am 11:00am

Class Session

Two: 11:00am - 12:00pm

Body Language ConfidentialTraci Brown

Room 405:

Reinvent the way you look at people and learn to interpret their body language. Develop the skills to quickly respond to hidden cues in any critical situation. In this fun, interactive and informative talk, youll learn how to read body lan-guage and use specific verbal lan-guage so that you can instantly cre-ate deeply connected relationships: Accelerate your networking Interview powerfully Increase sales Make anyone really comfortable

around you Elegantly persuade others.

Youll be able to recognize and appropriately respond to the hidden messages others are always sending and ensure that youre sending the right message. Youll be able to respond to once hidden clues so you can get the hidden messages and close the sale at the price you want.

While diving into current events and celebrity body language playing Tracis new game show segment, Body Language Blitz, youll compete against other audience members as you learn:

The real meaning behind a handshake

How to interpret body language and respond appropriately

How to strategically use others body language so theyre open to you and your ideas

Closing In a Flash!...On the First Visit!!

Toni BlakeRoom 406:

The days of closing a lease on the prospects first visit may seem like Supermans Kryptonite, but in this class youll learn how to POWER UP and sign more leases at the initial visit.

The rental housing market is as competitive as its ever been. Although were working harder for leases, if you have the right people, the right training, and the right atti-tude, Toni will help you develop a winning strategy, gain more confi-dence and know your prospects wants and needs. Its all about get-ting that application and deposit!

Tradeshow, Lunch and Networking:

12:00pm 1:00pm

Class Session Three:

1:00pm - 2:00pm

Crack the Code of Lies

Traci BrownRoom 405:

Detecting lies is crucial in busi-ness and life. This program uses video from current events to demon-strate techniques. And to apply the learning, well play Two Truths and a Lie. Detecting lies is crucial in business and life.

Do you know if your clients really like your proposal? Do they like the job you did? Are they telling you the

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... continued on page 13



truth about their budget? Are they telling you all of their needs? Are the people youre interviewing inflating their resume? And most importantly, did your kids eat those chocolate donuts that were on the counter or did the dog?

You Will Learn: How to instantly tell if someone

is lying Which lies are important How to elegantly uncover the

truth

CUSTOMER SERVICE: Building Meaningful

MomentsToni Blake

Room 406:

LIFE is about building more than just apartments and amenities its about building meaningfulmoments.

This seminar moves beyond com-pany focus, it lets people know that great customer service is a personal

choice. It is not just what you do it is WHO YOU ARE. Toni will help you to discover your innate ability for diplomacy, negotiating, and dem-onstrating extreme confidence through personal excellence. This seminar speaks to the heart of cus-tomer service compassion, under-standing, and integrity. Toni will share innovations, techniques, pro-cedures, powerful social trends and give your entire team deeper more powerful tools for successful rela-tionships.

Toni will inspire your team to find the heart within each situation and communicate a sense of pride and superior service. In challenging times like these, it is not what hap-pens to us, it is what we do about it. Knowledge is power and experience is the greatest teacher. Dont miss

this life-changing educational experience designed to take your staff to the next level and

surpass the expectations of todays resident.

Tradeshow, Snack Treats And Networking:

2:00pm - 2:30pm

Afternoon Bonus

Session: 2:30pm - 4:30pm

Center Hall A:

Brainstorming Event!!Toni BlakeCenter Hall A:

Sponsored by our friends atBuy Rite Carpets

Led by our national speakers Toni Blake, Traci Brown and Jen Piccotti, our Think Tank Team will guide you through several rounds of collabora-tive idea generation for todays busi-ness challenges.

If you have a problem - you will leave with several solutions! This is not your average sit back and lis-ten workshop; this is a roll up your sleeves, we are in this together B R A I N S T O R M I N G EXTRAVAGANZA!!!

Event Time Speaker Class Room

Registration 8:35-9:20am Registration, Breakfast, Networking and Trade Show

Special Keynote Address

8:35-9:20am Toni Blake Your Determination = Your Destination

Hall A

Session One

9:-10:30am Traci Brown Mastering Magical Persuasion

405

Jen Piccotti Jumping Over Renewal Objections In A Single Bound!

406

Networking 10:30-11:00am Tradeshow and NetworkingSession Two 11:00-12:00pm Traci Brown Body Language

Confidential405

Toni Blake Closing In A Flash!...On The First Visit!!

406

Networking 12:00-1:00pm Tradeshow, Lunch And NetworkingSession Three

1:00-2:00pm Traci Brown Crack The Code Of Lies

405

Toni Blake Customer Service: Building Meaningful Moments

406

Networking 2:0-2:30pm Tradeshow, Snack Treats And NetworkingBonus Session

2:30-4:30pm Toni Blake Think Tank Brainstorming Event!!

Center Hall A

SUPER POWERS..UNITE!! 2015 Think Tank!

You won't want to miss our 3rd annual Think Tank

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Afternoon Bonus Session: 2:30 p.m. - 4:30 p.m.

Center Hall A: Think Tank Brainstorming Event!!

Led by our national speakers Toni Blake, Traci Brown and Jen Piccotti, our Think Tank Team will guide you through several rounds of collaborative idea generation for todays business challenges. If you have a problem - you will leave with several solutions! This is not your average sit back and listen workshop; this is a roll up your sleeves, we are in this together BRAINSTORMING EXTRAVAGANZA!!

The 2015 Think Tank is Sponsored by our friends at:

GOT TO OUR WEBSITE TO SUBMIT A TOPIC FOR THE 2015 THINK TANK.

Toni Blake - TotallyToni.com Trade Show Exhibitors

SUPER POWERS..UNITE!! 2015 Think Tank!

You won't want to miss our 3rd annual Think Tank

WMFHA's very own brainstorming extravaganza!

Afternoon Bonus Session: 2:30 p.m. - 4:30 p.m.

Center Hall A: Think Tank Brainstorming Event!!

Led by our national speakers Toni Blake, Traci Brown and Jen Piccotti, our Think Tank Team will guide you through several rounds of collaborative idea generation for todays business challenges. If you have a problem - you will leave with several solutions! This is not your average sit back and listen workshop; this is a roll up your sleeves, we are in this together BRAINSTORMING EXTRAVAGANZA!!

The 2015 Think Tank is Sponsored by our friends at:

GOT TO OUR WEBSITE TO SUBMIT A TOPIC FOR THE 2015 THINK TANK.

Toni Blake - TotallyToni.com

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Speaker ProfileToni Blake has

long been recog-nized as a leader in multifamily m a n a g e m e n t training. Her cut-ting-edge con-cepts will keep you in front of the

market instead of always struggling to keep up. This doesnt mean you have to jump on board with every new trend that comes along, but it does mean your marketing strategy must relate to todays consumer to be effective. Toni takes the guess-work out of it by giv-ing you key market tools infused with solid fundamentals.

Toni is a popular international speaker, consultant, author and come-dienne inspiring thousands of multi-family apartment industry profession-als every year. With over 30 years of training experience, her laugh while you learn approach has made Toni one of the most sought-after experts in

her field. As a published author, Tonis ideas have been published in dozens of trade magazines and blogs across the country. In November 2008, Toni was awarded the Multifamily PRO Industry Legend Award. She was selected by the National Apartment Association as one of the industriess Marketing Gurus and is recognized for her research and innovative con-cepts in customer service, sales, mar-keting and social media. Toni was honored at the very first Multifamily PRO Peoples Choice Awards win-ning awards for Educational Excellence and Imagination and Innovation. She currently serves as President of TotallyToni.com. Toni lives in Northern Colorado with her husband.

An industry favorite for meetings, conferences, award dinners and pri-vate consultations, you will always enjoy Toni Blake!


ed-con..continued from page 12

Trade Show Exhibitors :

AC Moate Affordable Housing Risk Pool Program American Floors and Blinds Apartment Advantage Apartment Magazine Buy Rite Carpet Wholesaler Columbia Recovery Group











Toni Blake has long been recognized as a leader in multifamily management training. Her cutting-edge concepts will keep you in front of the market instead of always struggling to keep up. This doesnt mean you have to jump on board with every new trend that comes along, but it does mean your marketing strategy must relate to todays consumer to be effective. Toni takes the guess-work out of it by giving you key market tools infused with solid fundamentals.

Toni is a popular international speaker, consultant, author and comedienne inspiring thousands of multifamily apartment industry professionals every year. With over 30 years of training experience, her laugh while you learn approach has made Toni one of the most sought-after experts in her field. As a published author, Tonis ideas have been published in dozens of trade magazines and blogs across the country. In November 2008, Toni was awarded the Multifamily PRO Industry Legend Award. She was selected by the National Apartment Association as one of the industriess Marketing Gurus and is recognized for her research and innovative concepts in customer service, sales, marketing and social media. Toni was honored at the very first Multifamily PRO Peoples Choice Awards winning awards for Educational Excellence and Imagination and Innovation. She currently serves as President of TotallyToni.com. Toni lives in Northern Colorado with her husband. An industry favorite for meetings, conferences, award dinners and private consultations, you will always enjoy Toni Blake!

Traci Brown - Body Language Trainer Persuasion and body language expert, speaker and author, Traci Brown speaks globally and energizes audiences world-wide with eye-opening, simple & memorable techniques that can be applied immediately to your career and your personal life. She is a frequent guest on TV interpreting the body language in current events. Youll see the world with new eyes and

Toni Blake

TIMELINE



Speaker Profile ...continued from page 13Persuasion

and body lan-guage expert, speaker and author, Traci Brown speaks globally and energizes audi-ences world-wide with eye-

opening, simple & memorable tech-niques that can be applied immedi-ately to your career and your personal life. She is a frequent guest on TV interpreting the body language in cur-rent events. Youll see the world with new eyes and remember the tools she shares. Traci enjoys using the body language and unconscious persuasion skills she teaches in her presentations in all sorts of business negotiations and has even adapted the skills to talk herself out of an embarrassing number of traffic tickets.

Becoming a body language expert and a professional speaker on the sub-ject is not something that Traci Brown would have ever guessed shed be doing. Her first career was bike racing. She raced for 12 years and had quite a successful career winning three US Collegiate Cycling Championships and earning a spot on Team USA. Through sports she became keenly aware that the mind was the primary factor which determined her success. After disappointing results with tradi-tional sports psychology, she discov-ered Neuro Linguistics (NLP), Hypnosis and Hawaiian Huna. Her results changed not only her perfor-

mance, but her life. Upon retirement from racing, she got trained in these disciplines and still coaches clients one on one to create great change in their lives.

The first thing taught in NLP was body language, persuasion and how to create deep unconscious connection with others. After years of using these skills working with clients and talking them out of their problems and also teaching NLP Practitioner Certification trainings, a client asked her to put together a program for lawyers on how to pick a jury and persuade them based on body language. She very reluctantly said yes. Much to her sur-prise, there was so much interest in the program that she began presenting to all kinds groups across the country including sales teams and associa-tions. Participants liked walking out of the presentation with immediately usable persuasion and body language skills and gave the program rave reviews.

Traci holds a business degree from the University of Colorado and is a certified master practitioner of Neuro Linguistics.

Jen Piccotti, Senior Vice President of Education and C o n s u l t i n g , S a t i s F a c t s Research

Jen heads up client support for SatisFacts,

including developing dynamic, practi-cal and effective educational programs and resources, conducting resident feedback analysis, directing customer experience re-design, and providing digital strategy coaching. Jen has over two decades of customer loyalty and process efficiency experience.

A noted author, keynote speaker and highly followed blogger in the multifamily industry, Jen has spoken at such events as the NAA Education Conference, NAA Education Institute (NAAEI), AIM: Apartment Internet Marketing, and the Multifamily Social Media Summit. She has served as chair of the Service Quality Division for the American Society for Quality (ASQ), and CallSource has named her

"quality assurance guru of multifami-ly." Previously, Jen was Quality Manager for Shea Properties where she oversaw loyalty programs, pro-ductivity studies, process improve-ment initiatives, QA training, custom-er surveys and organizational commu-nication for both the multifamily and commercial divisions. Jen received her undergraduate degree from Boise State University, and holds a Master of Science - Quality Assurance from California State University, Dominguez Hills.

Join us at Ed-Con!!!

Class Session Two: 11:00 a.m. 12:00 p.m.

Room 405: Traci Brown

Title: Body Language Confidential

Reinvent the way you look at people and learn to interpret their body language. Develop the skills to quickly respond to hidden cues in any critical situation. In this fun, interactive and informative talk, youll learn how to read body language and use specific verbal language so that you can instantly create deeply connected relationships:

Accelerate your networking Interview powerfully Increase sales Make anyone really comfortable around you Elegantly persuade others.

Youll be able to recognize and appropriately respond to the hidden messages others are always sending and ensure that youre sending the right message. Youll be able to respond to once hidden clues so you can get the hidden messages and close the sale at the price you want.

While diving into current events and celebrity body language playing Tracis new game show segment, Body Language Blitz, youll compete against other audience members as you learn:

The real meaning behind a handshake How to interpret body language and respond appropriately How to strategically use others body language so theyre open to you and your ideas

Room 406: Toni Blake Title: Closing In a Flash!...On the First Visit!! The days of closing a lease on the prospects first visit may seem like Supermans Kryptonite, but in this class youll learn how to POWER UP and sign more leases at the initial visit. The rental housing market is as competitive as its ever been. Although were working harder for leases, if you have the right people, the right training, and the right attitude, Toni will help you develop a winning strategy, gain more confidence and know your prospects wants and needs. Its all about getting that application and deposit!

Traci Brown

remember the tools she shares. Traci enjoys using the body language and unconscious persuasion skills she teaches in her presentations in all sorts of business negotiations and has even adapted the skills to talk herself out of an embarrassing number of traffic tickets. Becoming a body language expert and a professional speaker on the subject is not something that Traci Brown would have ever guessed shed be doing. Her first career was bike racing. She raced for 12 years and had quite a successful career winning three US Collegiate Cycling Championships and earning a spot on Team USA. Through sports she became keenly aware that the mind was the primary factor which determined her success. After disappointing results with traditional sports psychology, she discovered Neuro Linguistics (NLP), Hypnosis and Hawaiian Huna. Her results changed not only her performance, but her life. Upon retirement from racing, she got trained in these disciplines and still coaches clients one on one to create great change in their lives. The first thing taught in NLP was body language, persuasion and how to create deep unconscious connection with others. After years of using these skills working with clients and talking them out of their problems and also teaching NLP Practitioner Certification trainings, a client asked her to put together a program for lawyers on how to pick a jury and persuade them based on body language. She very reluctantly said yes. Much to her surprise, there was so much interest in the program that she began presenting to all kinds groups across the country including sales teams and associations. Participants liked walking out of the presentation with immediately usable persuasion and body language skills and gave the program rave reviews. Traci holds a business degree from the University of Colorado and is a certified master practitioner of Neuro Linguistics.

Jen Piccotti, Senior Vice President of Education and Consulting, SatisFacts Research

Jen heads up client support for SatisFacts, including developing dynamic, practical and effective educational programs and resources, conducting resident feedback analysis, directing customer experience re-design, and providing digital strategy coaching. Jen has over two decades of customer loyalty and process efficiency experience.

A noted author, keynote speaker and highly followed blogger in the multifamily industry, Jen has spoken at such events as the NAA Education Conference, NAA Education Institute (NAAEI), AIM: Apartment Internet Marketing, and the Multifamily Social Media Summit. She has served as chair of the Service Quality Division for the American Society for Quality (ASQ), and CallSource has named her "quality assurance guru of multifamily." Previously, Jen was Quality Manager for Shea Properties where she oversaw loyalty programs, productivity studies, process improvement initiatives, QA training, customer surveys and organizational communication for both the multifamily and commercial divisions. Jen received her undergraduate degree from Boise State University, and holds a Master of Science - Quality Assurance from California State University, Dominguez Hills.

Jen Piccotti



Legislative Update ...continued from page 11also increase the number of people who would qualify for relocation assistance if a property is demolished or substantially remodeled. The House bill was amended and is still alive. The Senate bill is dead. WMFHA opposed this bill.

HB 1565 / SB 5378: Makes Source of Income a Protected Class: The title of the bills has been changed from previous versions but the effect is the same. They would make Section 8 voucher holders a protected class across the state. Both bills are dead for this session but may return next year. WMFHA opposed this bill.

HB 1278: Energy Benchmarking and Disclosure: This bill mandated an energy benchmarking requirement similar to the one in existence in Seattle. Property owners would be required to supply energy data using the EPA website. WMFHA opposed this bill.

HB 1824: Long Life Smoke Detectors. This bill required retailers to only sell long life smoke detectors beginning July 1, 2017. These detectors have a lithium battery that the supporters of the bill claim will last 10 years. The bill does not

impose any duties on owners or property managers although the language might change. WMFHA was monitoring this bill.

HB 1609 / SB 5846: Creates Exemptions to Plumbing and Electrical Codes. These bills would have eliminated the need for using a licensed electrician or plumber for minor repairs or modifications. The House bill is dead but the Senate version is still alive. WMFHA supported this bill.

SB 5185: Creates a 6-Year Timeframe for Substantial Building Code Amendments. The name of the bill says it all. WMFHA supported this bill.

SB 5218: Allowing Use of Unlawful Detainer for At-Will Tenancies. Added a new section to the unlawful detainer statutes (RCW 59.12) and would require a 30-day notice to terminate an at-will tenancy. The bill was amended to address concerns raised by tenant advocates. WMFHA supported this bill.

SB 5219: Allowing a 3-day Notice to Pay Rent to Include All Fees. This would allow a landlord to include late fees and other fees such as utilities in a 3-day notice to pay rent. The bill was amended to make clear that

a 3-day notice could only be used if rent and other charges were owing. A 3-day could not be used only for other charges. WMFHA supported this bill.

SB 5220: Allowing for Money Judgments Against Tenants After Alternate Service. Modifies existing statute regarding service of eviction lawsuits by posting and mailing. This would allow for a money judgment to be entered if the tenant answers and defends against the lawsuit. WMFHA supported this bill.

HB 1866 / SB 5259: Requires Landlords to Provide Voter Registration Information to Tenants. Created a new duty for landlords to provide voter registration information to new tenants at time of move-in. The House version is alive but the Senate version is dead. WMFHA opposed this bill.

HB 1929 / SB 5446: Requiring Electric Car Charging Stations: These bills would require local governments to offer incentives to developers and owners of new and existing multifamily properties for installation of charging stations for electric cars. Both bills are still alive. WMFHA was monitoring this bill.

To review any of these bills visit www.leg.wa.gov, select Bill Search tab and enter the bill num-ber.

In March, WMFHA staff and board members attended the annual National Apartment Association Capitol Conference, culminating in a Lobby Day in our nations capitol. WMFHA members met with our states members of Congress and their legislative aides to discuss fed-eral issues of importance to our industry.

These included Immigration Reform, Tax Reform and improve-ments to the Section 8 program. We also reminded our Congressmen and Congresswomen that the apartment industry is a robust $1.3 billion industry that helps todays 37 mil-lion renters live in a home thats right for them.

Apartments are a vital housing resource, building communities by offering housing choice, supporting local small businesses, creating mil-lions of jobs, serving families and residents by providing affordable housing options, and contributing to the fabric of communities across the country.

There is historic growth in renter households in our state. Thats good news for Washington state. Meeting

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Dear Heather,I've been in my current

job for about 6 years now and can't seem to move any fur-ther up in my company than the role of a property man-

ager. I think I'm good at my work and my employees seem to like me, but when the opportunity to move up happens, my regional always seems to find someone "better qualified." I don't want to have to leave my current company, but I feel like I've earned a promotion and I'm get-ting a little burned out where I am now. What should I do?

-Looking for a Ladder

Dear Looking for a Ladder, I think that it shows a lot of dedi-

cation to your company that you have stayed with them for 6 years. In the world of property manage-ment, that's a couple of lifetimes for some of us. It can be a very difficult experience for many of us to be passed over for promotions we think we have earned, so I want you to know what you're going through is incredibly common. My first real question to you is, have you talked

directly to your regional manager about this yet? So many times, the real problem is that we don't know what other people are thinking or wanting, and so we can't meet their needs. Everything past this point in my reply is based on speculation and experience, so take it for what it's worth.

As a former hiring manager, one of the things I can tell you is that why you're being passed over could be due to a number of reasons. Perhaps, as you've been with your company for a while, paying you to do a higher end job would be more expensive to the payroll right now, and for many companies, they just cannot afford to pay the internal pro-motion 5 or 6 thousand more a year than they would have to pay an external new hire.

Another reason you may not be getting moved up is that there's no one who can fill your shoes. If you are very good at your job, then it's hard for a regional manager to take the risk of someone new behind your desk who might not be able to do the job as well as you can. In the current

market, occupancy is EVERYTHING, and if you've got it, that's not a gamble most regionals will take. The good news is that if this is the reason, then you've got a clock on the obstacle, since the economy is bound to improve AND you can mentor up your current assistant manager so that he or she could step in to your shoes more quickly.

Also, your regional manager might not yet see the skill set in you to move you up in the company. One of the easiest ways to get noticed and move up is to either volunteer for new projects that you have a skill set well suited for or to set public goals and meet them. Both are actions that regional managers respect and respond well to. Step up to the plate and mentor the younger managers in the company, or offer your marketing talents to sister prop-erties that are maybe not having as good a run in the current market as you are.

If you've found a company that you like, I encourage you to talk with your upper management. After all, there is a reason you're still work-

ing for them after 6 years, and from their point of view, they have a lot of time and energy invested in you. Ask your manager for a clear path of what it's going to take for you to move up with the company and then formulate your goals around that path. It's hard not to admire people who are willing to do what it takes to get the job done.

Don't let your burnout get the bet-ter of you and your temper. Open up your communication with your regional manager and find a new way to love your job until you can ascend within the ranks of your com-pany!

Good Luck!Heather

Frustrated with Fibbing

Dear Heather,At our property, we are asked to do

weekly shops of our competing proper-ties. I'm supposed to call them and get how much they are renting all of their apartments for, if they have any specials,

Behind the Leasing Desk with Heather Blume




Apartment Vacancy Report. The survey ended on Friday, March 20th. We proofed the data on Saturday and published the report online on Sunday. We survey the entire market and collected reliable information for 232,071 units in 2,254 properties. Thats 88% of the market.

Rent Growth SlowingThe rate of rent growth has slowed a little.

Rents rose 2.6% in the region since September and are 7.4% higher than they were a year ago. But properties didnt really raise their rents that much. One thing to be careful of now is the impact of new construction on rents. New units rent for more, distorting rent trends. We call this the skew of the new. New construction costs more and typically gets a rent premium of more than 40%.

This rent premium has not mattered much in most of the past dozen years because there has not been a lot of new construction. But right now, with all the new construction opening up this year and next year, the higher rents in new units will create an inflated rent trend.

For example, although the overall average rent rose 7.4% in the region over the past 12 months and 2.6% in the past six months, when you exclude the new units that opened this year and last year, rents rose 5.7% and 1.9% respectively. And were just beginning to see the distortion that new construction will create.

Another thing to consider is the relationship between rents and expenses. Our latest Apartment Expense Report found that total expenses rose 6.3% last year. Thats a little faster than the rent

growth were seeing right now.Demand continues to keep up with supply,

almost. Developers opened 8,919 units in the past 12 months and the market added 8,632 new renter households in the same period. Is that perfect tim-ing or what?

You can thank a strong local economy for that. Conway Pedersen Economics just reported our region added 56,000 jobs last year and they expect another 51,000 new jobs this year.

Another positive trend has been in-migration to the region. While not exactly a measure of in-migration, driver license data is close to a real time substitute. The number of people in this region who turned in out-of-state licenses is up 21% in the past 12 months compared to the previ-ous 12 months.

Expect Softening Due To New Construction

But investors should expect the market to soft-en soon. Developers will open 12,000 units this year. And theyre not done. We are counting another 11,000 units developers plan to open in 2016 followed by even more in 2017. We are track-ing a total of just over 48,000 units developers plan to open between 2015 and 2019. They proba-bly wont all happen, at least not as scheduled. There will be delays and some projects may get shelved. Even so, were looking at a lot of new units.

Can demand keep up with all this new supply? The honest answer is, who knows. In the past five years new demand averaged just over 6,000 units

a year. That wont work. But keep in mind that developers didnt build a lot in the past five years, averaging only 5,400 units a year. Its kind of hard to create demand for something

that isnt there. Looking back a little farther, demand averaged just over 11,000 units a year between 1986 and 1990.

It doesnt look like developers will set a new all-time record for annual production in the region. But thats not the case in Seattle. Development hit a record level in 2013 and then topped it last year. We expect that record to be broken again this year and this years record to be broken next year.

Last fall 72% of the survey respondents told us they planned to increase rents. Those increases would have resulted in rents increasing 2.8% in the region by this March. Excluding the rent increase distortion created by new construction, they actually increased rents 1.9%. Now they are telling us they plan to raise rents 3.1% by September.

Only one out of every seven properties we sur-veyed offer concessions, averaging $744. Thats not a lot of properties offering concessions. But the size of concessions is growing. They averaged $580 a year ago and $480 the year before that. We expect the use and size of concessions will grow significantly over the next six to twelve months.

Almost 80% of the properties surveyed pass through water and sewer charges to residents. Most of those also pass through garbage costs.

More than half the properties include at least one parking space in the rent. Paid parking rates have not changed much since last fall. For exam-ple, garage parking averages $109 a month, up from $107 in September. Parking is likely to become a more valuable commodity though, since new construction is putting in an average of less than one parking space per unit.

Mike Scott(206) 935-3458

[email protected]

Market Trends Puget Sound ...continued from front page

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that demand will create thousands of jobs. To get there, we need new pub-lic policies that support the multi-family housing industry and that dont make it harder for renters and their families to find the housing that makes sense for them and their com-munity.

In the state of Washington, there are 870,000 apartment residents in 490,000 apartment homes, creating an economic contribution of $20 bil-lion and supporting 198,000 jobs.

Job growth in this state has rebounded from the recession years, unleashing pent up demand for housing. In-migration from outside the state has dramatically increased in the last 12 months. This adds to demand for apartments. When demand exceeds supply, prices increase. When supply exceeds demand, prices decrease. Rents are going up due to forces of supply and demand. Poor public policy would be to impose artificial, government

imposed constraints on those market forces, which would result in erod-ing housing affordability, not enhanc-ing housing affordability.

We want to thank all of our mem-bers whose grassroots efforts to advocate for our industry are crucial to our success and our ability to serve others.

For non-members considering joining WMFHA, take advantage of our current Membership Drive Campaign, with discounts on mem-bership dues for new members. Call us today at 425-656-9077 to learn more about how to get involved and take advantage of the value of mem-bership in our association, or visit our website at www.wmfha.org today.

Thank you to all who make our association strong, vibrant and caring.

EQ - Apartments, Small Business18927 - 33rd Ave., West, Suite C, Lynnwood, WA 98036

1-800-803-7000Fax 425-712-1058Cell: [email protected]

TONY CONTI, CICLegislative Update ...continued from page 15



Washington, D.C.

The apartment industry emerged as one of the stron-gest sectors coming out of the Great Recession, and a new study shows just how much the Seattle economy benefited from the rental boom. In 2013 the latest numbers available apartment construction, operations and resident spending contributed $15.5 billion locally and supported more than 146,700 jobs in the metro area.

The economic data are part of new research commissioned by the National Multifamily Housing Council (NMHC) and the National Apartment Association (NAA), which looks at dollars and jobs from apartment construction, operations and resident spending, nationally, by state and in 40 specific metro areas, including Seattle. The data, based on research by economist Stephen S. Fuller, Ph.D., of George Mason Universitys Center for Regional Analysis, are available on the web-

site www.WeAreApartments.org. Nationally, the apartment indus-

try and its 36 million residents con-tributed an impressive $1.3 trillion to the U.S. economy, supporting 12.3 million jobs across the U.S. in 2013.

The study showed that in the Seattle metro area: The local economic contribution

from the apartment industry totaled $15.5 billion, supporting 146,800 jobs.

The economic contribution of local apartment construction totaled $2.3 billion.

The economic contribution of local apartment operations totaled $2.2 billion.

Apartment construction and operations supported $1.5 billion in personal earnings for local workers.

Renter spending in the Seattle metro area contributed $11.0 billion to the local economy.

The total economic contribution of the apartment industry and its residents in Washington State totaled $20.7 billion and supported 198,000 jobs.

"Seattle has a favorable economic environment and a high quality of life, which continues to attract highly educated Millennial apartment rent-ers to the citys dense urban down-town. Apartment construction remains heaviest within Seattles Capitol Hill, University, Ballard and Belltown neighborhoods, which are popular for their walkability and high concentration of area employ-ers," said Jim Wiard, Executive Director of the Washington Multi-Family Housing Association. "The rental boon both locally and nation-ally has been fueled by demo-graphic changes like the growing Millennial population and a redis-covery of metropolitan urban cores."

"Here in Seattle, we're feeling the positive economic impact of the booming apartment industry, which

is helping our city thrive," Wiard explained. "The great news about the apartment industry is that the dol-lars and jobs dont end with con-struction. The ongoing operations and resident spending make each apartment community an economic engine, supporting local jobs and making a positive economic impact in our area and in towns across the country."

"Our study showed major increas-es around apartment construction, with construction spending, eco-nomic contributions and personal earnings all rising substantially, said Fuller. The construction for multifamily apartment buildings is a significant and growing source of economic activity, jobs and personal earnings in communities nation-wide."

"According to our study findings, apartment construction has been on the rise over the past five years. In 2009, during the economic recession, there were only 97,000 construction starts, which was the lowest level

Rental Boom is Boon to Seattle Econo

on-site rental housing journal april 2015

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