Don`t miss the April Deadline for the EPA`s New
Transcription
Don`t miss the April Deadline for the EPA`s New
AptJ-FEB10 2/24/10 2:28 PM Page 1 Visit us on our website: www.apt- assoc.com February 2010 Volume 39 Number 2 Don’t miss the April Deadline for the EPA’s New Federal Lead Renovation, Repair and Painting Requirements See page 9 AptJ-FEB10 2/24/10 2:28 PM Page 2 Page 2 / Apartment Journal / February 2010 AptJ-FEB10 2/24/10 2:28 PM Page 3 February 2010 / Apartment Journal / Page 3 AptJ-FEB10 2/24/10 2:28 PM Page 4 Contents F e b r u a r y FEATURES 8 March 25th – General Seminar After the Rains Are Over... How’s Your Property? 20 Do You Know Who Your Residents Are? By Mike Lapsley We’ll have an expert water intrusion specialist to show you how to find potential problems and an attorney to answer your liability questions. Using criminal screening to qualify prospective tenants protects you and your other renters. 9 New Federal Lead Renovation, Repair and Painting Requirements By Marjorie Xavier The April 22nd deadline is almost here to conform to new EPA regulations. 10 Apartment Owners: Have You Planned Properly to “Keep It All in the Family?” By Philip Kavesh Your Living Trust may not distribute your property to your children the way you intended. Check out these options. 12 Ditch That Rent Check: A World of Online Payment Options 2 0 1 0 22 A Date with a Queen Visit the British Isles – Summer 2010 Join us this summer for a spectacular 13-night cruise around the British Isles, including England, Ireland, Scotland and Normandy. 30 Building the Future of the Multihousing Industry The NAA Education Conference and Exposition in New Orleans, June 24-26, is a good way to get information and learn strategies to increase profits. COLUMNS By Jim Semick The use of paper checks is declining. Begin to familiarize yourself with the various forms of electronic banking. 24 26 14 Green Incentives for Residential Property Managers 28 Using Service Requests for all vendors can help you monitor repairs and the quality of service. 18 Mold Clearance Inspection: Buyer Beware! By Jason Harris Be sure to have a mold clearance inspection done after mold remediation, and use a different contractor for the inspection. Page 4 / Apartment Journal / February 2010 Sacramento Report by Ron Kingston Offering “green” features can help to attract conscientious, responsible tenants and can benefit both owner and renter. By Douglas D. Chasick Legal Corner Q & A by Stephen C. Duringer By Marc Courtenay 16 Financial Focus: Market-Ready Apartments Dear Maintenance Men by Jerry L’Ecuyer and Frank Alvarez PLUS... 6 34 CAM classes Apartment All Stars 35 Advertisers Index 36 Spotlight on New Members 40 Free Toilets from the Water District 42 Classified Ads Official California Apartment Journal AptJ-FEB10 2/24/10 2:28 PM Page 5 February 2010 / Apartment Journal / Page 5 AptJ-FEB10 2/24/10 2:28 PM Page 6 Page 6 / Apartment Journal / February 2010 AptJ-FEB10 2/24/10 2:28 PM Page 7 17 License # 771970 February 2010 / Apartment Journal / Page 7 AptJ-FEB10 2/24/10 2:28 PM Page 8 R EE A FRMIN SE March 25th CH 2 PP CAM CE / Us GENERAL SEMINAR After the Rains Are Over... How’s Your Property? • NOW is the time to look for possible leaks • NOW is the time to stop mold in its tracks • NOW is the time to implement new lead policies (deadline = April 22) An expert water intrusion specialist will show you what to look for when inspecting your own property and an attorney will answer your questions about your liability. Don’t miss this informative meeting – the property you save will be your own! Thursday, March 25, 2010 7:00 p.m. Petroleum Club 3636 Linden Avenue, Long Beach Sorry, but we can only guarantee seats for those members who call ahead and make reservations. Ample free parking is available in the lot next to the Petroleum Club. Reservation Hotline: 562-426-7785 Page 8 / Apartment Journal / February 2010 AptJ-FEB10 2/24/10 2:28 PM Page 9 New Federal Lead Renovation, Repair and Painting Requirements By Marjorie Xavier he “Lead: Renovation, Repair and Painting Program” rule, which will take effect in April 2010, prohibits work practices creating lead hazards. Requirements under the rule include implementing lead-safe work practices and certification and training for paid contractors and maintenance professionals working in pre-1978 housing, child-care facilities and schools. Beginning October 22, 2009, contractors were to take EPA-accredited training before beginning renovation, repair or painting projects as defined in the RR&P rule. T “The [new] rule covers all rental housing and non-rental homes where children under six and pregnant mothers reside.” To further protect children from exposure to lead-based paint, the U.S. Environmental Protection Agency (EPA) has issued new rules for contractors who renovate or repair housing, child-care facilities or schools built before 1978. Under the new rules, workers must follow lead-safe work practice standards to reduce potential exposure to dangerous levels of lead during renovation and repair activities. “While there has been a dramatic decrease over the last two decades in the number of children affected by lead poisoning, EPA is continuing its efforts to take on this preventable disease,” said James Gulliford, EPA’s Assistant Administrator for Prevention, Pesticides and Toxic Substances. “These new rules will require contractors to be trained and to follow simple but effective lead-safe work practices to protect children from dangerous levels of lead.” The rule covers all rental housing and nonrental homes where children under six and pregnant mothers reside. The new requirements apply to renovation, repair or painting activities where more than six square feet of lead-based paint is disturbed in a room or where 20 square feet of leadbased paint is disturbed on the exterior. The affected contractors include builders, painters, plumbers and electricians. Trained contractors must post warning signs, restrict occupants from work areas, contain work areas to prevent dust and debris from spreading, conduct a thorough cleanup, and verify that the cleanup was effective. Lead is a toxic metal that was used for many years in paint and was banned for residential use in 1978. Exposure to lead can result in health concerns for both children and adults. Children under six years of age are most at risk because their developing nervous systems are especially vulnerable to lead’s effects and because they are more likely to ingest lead due to their more frequent hand-to-mouth behavior. Almost 38 million homes in the United States contain some lead-based paint, 24 million have deteriorated paint. Four million children live in these homes. A source of lead poisoning is lead paint and lead-contaminated dust from deteriorated paint. These new requirements are key components of a comprehensive effort to eliminate childhood lead poisoning. For more information on this new program visit: www.epa.gov/lead. For copies of the educational brochures, call 1-800-424-5323. February 2010 / Apartment Journal / Page 9 AptJ-FEB10 2/24/10 2:28 PM Page 10 Apartment Owners: Have You Planned Properly to “Keep It All in the Family”? By Philip Kavesh ost apartment owners have worked very hard over the years managing their properties, paying down the mortgages and increasing the cash flow income. Plus, they know real estate has long-term appreciation potential. They want to pass along all these economic benefits to their children (or other loved ones). So, they get a Living Trust that appears to clearly distribute their properties to their intended heirs—but will it work as intended when the time comes? For example, the parents’ Living Trust may say that their three children are to share their estate equally. Does this mean that each child will get an equal share of each property? Or, will certain properties be allocated to certain children and who will make that decision? Conflict can arise over these issues. If two or more children will own property together, there are even more conflict issues to address. How will management decisions (like refinancing, selling and exchanging for a new property) be made? Although the children may get along well while the parents are still living, when the parents are gone and it’s all about money and control, there can be significant disagreements. This could wind up forcing them to sell the property. Even if all of the beneficiaries who own portions of a property agree with respect to its management, a sale could easily be forced on them by others. What many apartment owners don’t realize is that, even a beneficiary who only owns a small percentage of a property can demand a “partition and sale”. This could happen because that beneficiary is influenced by his or her spouse, who wants the cash to spend, or because a third party forces him or her to sell, like in a divorce, lawsuit or bankruptcy. One often recommended way to solve these issues is to have property held in trust after the parents’ death, with the Trustee in charge being one or more of the bene- M “If two or more children will own property together, there are even more conflict issues to address.” Page 10 / Apartment Journal / February 2010 ficiaries who are best capable of and willing to manage the property. This could be done in an irrevocable trust setup during lifetime to receive gifts of the property or an irrevocable trust that springs out of a Living Trust after the parents pass away. Unfortunately, this may not be the best solution because a Trustee does have certain “fiduciary” duties and obligations to the beneficiaries, and the beneficiaries also have certain rights, that could perpetuate potential conflict. A better way to “keep it all in the family” may be to utilize a legal business entity, like a family limited partnership (FLP) or limited liability company (LLC), to hold the real estate. The parents will be the managers of the entity during their lifetime, but if they pass away or are unable to act because of illness or disability, then just the one or two loved ones (or third party) that may be capable of managing the family business will do so. The other “silent” family members, may receive their share of any economic benefits that are distributed, but will not be able to dictate decisions such as buying, selling, refinancing, or distributing profits, etc. This not only prevents one beneficiary from forcing the others to sell, but also helps protect the underlying real estate if any one of the beneficiaries has a divorce, lawsuit, bankruptcy or other legal problem, because any third parties who try to get their hands on their interests will not have the right to force a liquidation or distribution of profits. continued on page 33 AptJ-FEB10 2/24/10 2:28 PM Page 11 LA CARPETS, FLOOR & PAINTING (formerly Ricardo’s Painting) Carpet Cleaning, Maintenance & Supplies — APARTMENT INTERIOR CEILINGS PAINTING ROOM SIZE WALLS RUG SHAMPOO ROOM SIZE CLEANING & SHAMPOO CLEANING ONLY SHAMPOO ONLY $80 $90 $100 $120 $140 $60 $60 $70 $80 $90 $70 $70 $80 $80 $90 — KITCHEN CABINETS CLOSETS OUTSIDE PAINT SINGLE $115 $60 $15 $10 INSIDE PAINT 1 BED - 1 BATH $135 $70 $20 OUTSIDE VARNISH for each 2 BED - 1 BATH $155 $80 $25 STUDIO OR LOFT 2 BED - 2 BATH $180 $80 $25 closet WOOD WINDOWS (each) 3 BED - 2 BATH $195 $90 $30 EXTRAS: Plastering, 2 Coats, Custom Color, Shutter Door, Old or Large Apartment, Occupied or Furnished Apartments. Priming Walls. (Prices are based on Navajo/Swiss Coffee) — 1 2 2 3 CLEANING SINGLE BED - 1 BATH BED - 1 BATH BED - 2 BATH BED - 2 BATH & $35 $35 $60 $50 $10 — REFRIGERATOR $10 LOUVER WINDOWS (set) $10 BLINDS (set) $10-Sml/ $15-Lrg STUDIO APT. $20 EXTRAS: EXTREMELY DIRTY APT.,TRASH OUT, OCCUPIED OR FURNISHED APT. Visit Our Showroom at 8742 Imperial Highway, Downey, California 90242 In Business Since 1989 • Quality Work is our Business • Apartments are our Specialty Free Estimates W, ES LO RIC L P Y W IN RD LO N V -GUANT All All Work Work Guaranteed Guaranteed O GH ISTA U ES L A C ARP E T Floor & Painting TO IP R R Completely Installed! Carpet & Installation Includes 40 Sq. yards Of Carpet. Doors, Metals Included. No Carpet Padding Included. OOM 3-R -LOOP EL 00 LEV 380. t Value $ a • Gre Proof Stain V SPE INYL CIA Bath LS! f r om $ KITC 99 . 50 HEN from $149 50 . Cell 562-244-8612 • Fax 562-861-9746 Bonded & Insured • Credit Cards, Checks Accepted – FINANCING AVAILABLE – OM 3-RO LORED O TI-C40.00 L U M re $4 sy Ca • Ea Wear g n o L 562 3 SOF ROOM T SA Adds Warm XONY th & $ 480 00 Comfo rt 861.4804 OPEN MON-FRI 8 AM TO 6 PM • SAT 8 AM - 6 PM • SE HABLA ESPANOL February 2010 / Apartment Journal / Page 11 AptJ-FEB10 2/24/10 2:28 PM Page 12 Ditch That Rent Check: A World of Online Payment Options By Jim Semick ure, the lowly check will be with us for a while. But that doesn’t mean that you can’t help send checks the way of the dodo bird. According to a Federal Reserve System study, check usage is in steep decline, and checks now represent only 30 percent of all non-cash payments. Electronic payments are now the clear winner with consumers. But for many property managers, checks continue to be business as usual. If you are like most property managers in the U.S., you have explored online payments, but have not made them a core part of your operation. Even if you have implemented check scanning, there is a cost to every check you handle – moving more of your resident payments online can save your property management business time and money every month. If you haven’t yet made the move to electronic payments, ACH and Credit Cards are great ways to go checkless. There are many services that can help you implement a solution quickly and begin offering online payment options to your residents. ACH (Automated Clearinghouse) ACH is an electronic funds transfer from the resident’s checking or savings account to your operating account. Residents pay their rent directly online or through a transaction that you initiate. You typically receive funds 48-72 hours after the resident pays. You can get ACH processing from many payment processing companies or directly from your bank. If you get the ACH service from a payment processing company, the resident (or you) pays a convenience fee typically ranging from $1.00 to $3.00. The advantage of picking up the tab is that you get more residents signing up for the program, and thus greater savings for you by handling fewer checks. S “...check usage is in steep decline, and checks now represent only 30 percent of all non-cash payments.” Page 12 / Apartment Journal / February 2010 Online payments shouldn’t be expensive however. You can find solutions with a low transaction fee structure and low monthly fee. Another important factor in your decision: Your payment solution should seamlessly integrate with your accounts receivable system. Any savings you get from online payments will be wasted if you are stuck entering payments by hand into your system. Your bank can offer you ACH services at a low cost, but the hassle and time implementing this yourself will reduce any savings you might realize. You will need to have a software solution that can create an electronic file in the correct format and then upload that file directly to the bank for processing. Credit Cards There are a variety of ways you can use credit cards in your operation. Many property managers accept cards for deposits and application fees only, while others will gladly accept them for rent. The challenge with credit cards is the high transaction fees that must be paid by you or the resident. For rent payments, these fees can be significant, running $10 to $30 or more. A resident who is faced with a steep late fee from you may gladly pay the credit card fees instead. While you can become a credit card merchant and process the payments continued on page 33 AptJ-FEB10 2/24/10 2:28 PM Page 13 February 2010 / Apartment Journal / Page 13 AptJ-FEB10 2/24/10 2:28 PM Page 14 Green Incentives for Residential Property Managers By Marc Courtenay here has never been a better time for creative ways to attract and retain the kind of residents you want to rent or lease your properties. Appealing to thoughtful, conscientious and responsible people is actually easier than you think. When I was a practicing counselor (I have an M.S. in Psychology with an emphasis in Marriage, Family and Child Counseling) I noticed that people who were passionate about conservation, protecting the environment and social responsibility were usually also the types who were financially more careful, cleaner and often more socially responsible. Later in life when I owned my own residential rental properties, I noticed that the folks who paid their rent on time and took good care of their dwellings often also had “green” interests. T “Appealing to thoughtful, conscientious and responsible people is actually easier than you think.” In other words, they would be involved in recycling, eating organic food, using nontoxic forms of pest control and conserving energy in their apartment or house. Yes, I know there are always exceptions to the rule, but my experiences taught me that people who we refer to as “Green” or “Greenies” made good residents. They would respond positively to certain features and incentives that property managers and owners offered to them. Some examples of “green” features that would benefit both the owner and the renter would include: thermal windows, insulating window fixtures (such as pull-down shades that insulate from external heat and cold while also helping keep the interior at a desired temperature), energy efficient furnaces, air conditioners, appliances and solar energy. If you, as an owner and/or property manager, are willing to make these kind of “green” improvements to your properties, by all means advertise proudly to potential residents and your current ones, too. Page 14 / Apartment Journal / February 2010 Again, conversation-oriented personalities are the types that appreciate such thoughtfulness. They often respond with loyalty and by taking care of their homes and apartments. Solar energy (such as solar-generated hotwater) is more lucrative for landlords than homeowners. Why? The Federal Tax Credit for Solar Energy is capped for personal residences at $2000, but there is no cap for “investment” properties. In addition, landlords can depreciate the value of their solar installations over a shortened period of five years. Finally, landlords can take a 50 percent Bonus Depreciation for items purchased and placed in service during 2008 and 2009 (expires 2009). See www.depreciationbonus .org for details. The “science” of being an effective Residential Property Manager changes with the times and the priorities that our society establishes. Part 1 of this article covers ways in which property managers attract and retain residents with green incentives. Today’s homeowners and home-renters are motivated to save energy and be “earth friendly.” That is why the “Green” revolution has become so popular. Whether it’s about conserving energy, recycling, saving money or feeling good about our environment, people of all ages are motivated. They like to know that they live and work in buildings that are healthy as well as economical. continued on page 45 AptJ-FEB10 2/24/10 2:28 PM Page 15 One Call Does It All List h is W ’s r e g a n a M Monday AJCS12DC Tenant moves out nces Remove old applia Tuesday elivered & New appliances d installed on time, on budget Paint & clean lease Wednesday New tenant signs Thursday Relax Friday New tenant move Saturday Relax s in RVM1435 KIVA KITCHEN & BATH ORANGE COUNTY (949) 221-0600 • 17138 Von Karman Ave., Irvine, CA 92614 • Fax: (949) 660-8050 INLAND EMPIRE (909) 433-3990 • 2273 La Crosse Ave., #105 • Colton, CA 92324 • Fax: (909) 433-3991 • (888) 266-7993 EL CAJON (619) 579-7711 • 680 Bradley Avenue • El Cajon, CA 92020 • Fax: (619) 579-1745 • (800) 957-3776 SAN DIEGO (800) 840-0961 • 3341 Hancock Street • San Diego, CA 92110 • Fax: (619) 297-9944 February 2010 / Apartment Journal / Page 15 AptJ-FEB10 2/24/10 2:28 PM Page 16 Financial Focus: Market-Ready Apartments By Douglas D. Chasick ne of the biggest expenses many of us have each month is getting vacant apartments ready for move-in. Here are some areas to examine to make certain you aren’t spending more money than you have to. O “The SR’s allow us to track each job, in each apartment, 1. How do we schedule and monitor the work? The easiest way is to issue a Service Request (SR) to each vendor for each unit. If we have one vendor that does “turn-key” work (painting, cleaning and carpet shampoo), we can issue one SR for each apartment. If we have a separate vendor for painting, another for cleaning and a third for carpet shampoo, we issue a SR to each vendor for a total of three SR’s for that apartment. The SR should include the price as agreed in the vendor’s contract, and any extra work we approve will be noted on the SR. our invoice In addition, an SR should be issued to our service staff for any repairs/adjustments needed. (REMEMBER: A Service Request should be issued EVERY TIME we ask someone in our Service Department TO DO ANYTHING! It’s the only way we can monitor and analyze efficiency and workload.) approvals.” I’ve had the most success scheduling the work in the order of most-to-least mess makers: and give us a reference for 1. “Trash out” the apartment—remove all the junk! 2. Service the apartment—upgrades, repairs and adjustments 3. Painting 4. Cleaning 5. Carpet Shampoo 6. Final Inspection by Manager, touch-up by Service if required. It may sound like a lot of paper, but it’s not. The SR’s allow us to track each job, in each Page 16 / Apartment Journal / February 2010 apartment, and give us a reference for our invoice approvals. 2. How do the vendors gain entry into the unit? I know it never happens on our properties, but there are still places where vendors are given master keys! This is a serious NO-NO! We have two choices: we can unlock the unit for the vendor, and lock it when they are finished. Or, the vendor can be given a key to each individual unit they work on, with a limit of two to four keys at any one time. The vendor must sign a key log, and return the keys prior to getting any more keys. “Won’t the vendor be able to make a copy of the individual apartment keys we give them?” Sure! No big deal, though, because our Service Technicians ALWAYS change the locks AFTER all the vendors are finished, right? 3. How do we approve invoices for payment? The first step is to schedule our inspection of the work performed at the time the vendor tells us the work is complete. This eliminates any complaints from the painter that the cleaner messed up the paint, or from the cleaner that the carpet shampoo vendor dumped dirty water into the clean bathtub. Pull the SR for that apartment and inspect the unit WITH the vendor. If everything is OK, mark the SR “OK”! File the SR in an “open invoice” file, the vendor’s file or in the unit service file. continued on page 39 AptJ-FEB10 2/24/10 2:28 PM Page 17 February 2010 / Apartment Journal / Page 17 AptJ-FEB10 2/24/10 2:28 PM Page 18 Mold Clearance Inspection: Buyer Beware! By Jason Harris o, you have a mold problem that has been addressed and you want to know if it is okay to move occupants back into the area? Get a clearance inspection. But not from the company who did the work! For the purpose of this article, postabatement, post-remediation, and clearance are synonymous terms. Essentially, it means check the mold remediation after it has been done. As a general rule, owners can solve a mold problem in-house if the total repair cost is $500 or less, and/or the affected area is less than ten (10) square feet. Otherwise, the work should be done by a mold remediation company that is licensed and insured. In either case, a clearance inspection should be done to verify the mold has been adequately removed prior to reconstruction. It will also satisfy disclosure requirements for buyers in the event the property is sold, and most tenant concerns. The clearance inspection will demonstrate your due diligence to have the problem handled properly in the event of a formal complaint or lawsuit. The purpose of a mold clearance inspection is to provide a limited investigation report based on the remediation activity performed at the site by an independent mold remediation contractor. A post remediation inspection, both visual and analytical, is performed to ensure a return to a pre-mold contaminated environment. The post remediation inspection is based on the following four (4) criteria: 1. Absence of visible dust, debris and moisture within the containment area(s): 2. Absence of visible fungal growth within the containment area(s); 3. Moisture content of lumber and other construction materials are within normal limits inside the containment area(s); and 4. Balance of the airborne fungal spores found inside the containment area(s) when compared to fungal spores found outside the containment area(s), based S “...a clearance inspection should be done to verify the mold has been adequately removed...” Page 18 / Apartment Journal / February 2010 on total spore count and/or hierarchy of spores detected. If all four (4) of these criteria are met, then the mold remediation efforts are considered to be acceptable (PASS) and no further remediation is recommended. If any of the four (4) criteria are not met, then the mold remediation efforts are considered to be unacceptable (FAIL) and further remediation is recommended. In the event the containment area fails inspection, a re-inspection is generally recommended. If so, the inspection company should be willing to perform the re-inspection at a lower price since there is less work involved with verifying the recommendations have been implemented. It should also give the customer a level of confidence the inspection company’s motivation is not to keep re-inspecting to generate additional revenue. When a mold remediation contractor says they will do their own clearance testing there is a conflict of interest. Not all remediation projects require clearance testing, but some form of post-remediation verification should be performed and it should be done by someone working for the building owner, not for the contractor who did the work. Clearance testing services assure that the contractor has adequately cleaned the remediation work area to standard industry acceptance criteria. The remediation company has a vested interest in passing any type of clearance inspection because it costs more time and money to continue working on your project if it fails inspection. So, they want to keep third parties away from the work being done so they can wrap up, get paid and move on. Any cost savings they are offering you to perform the clearance is already built into the cost of the repair either through the initial estimate or subsequent change orders. By hiring a “Test Only” company, that means hiring one that only performs inspections, testing and consulting. This is an important continued on page 37 AptJ-FEB10 2/24/10 2:28 PM Page 19 INTERIOR & EXTERIOR PAINTING — APARTMENT INTERIOR PAINTING — ROOM SIZE WALLS CEILINGS CLOSETS SINGLE $115 $60 $20 1 BED - 1 BATH $135 $70 $25 2 BED - 1 BATH $155 $80 $35 2 BED - 2 BATH $180 $90 $40 3 BED - 2 BATH $210 $100 $45 KITCHEN CABINETS INSIDE PAINT OUTSIDE PAINT OUTSIDE VARNISH WOOD WINDOWS SHUTTERS BATHROOM VANITY IN/OUT STUDIO ESTIMATES NEEDED FOR: Additional Coats, Custom Colors, Latex Enamel Finish, Plaster Repairs, Dry Wall Repair, Old Bld/Larger Apts., Condominiums/Townhouses, Occupied/Furnished, High Walls/Loft $50 $50 $60 $10 $10 $15 $50 — CLEANING & RUG SHAMPOO — ROOM SIZE 1 2 2 3 CLEANING & SHAMPOO CLEANING ONLY SHAMPOO ONLY $80 $100 $105 $120 $140 $50 $60 $70 $80 $90 $40 $50 $60 $60 $70 SINGLE BED - 1 BATH BED - 1 BATH BED - 2 BATH BED - 2 BATH REFRIGERATOR $10 LOUVER WINDOWS $10 VERTICAL & MINI BLINDS (set) Small – $10 Large – $15 STUDIO APT. $20 EXTRAS: TRASH OUT, OCCUPIED OR FURNISHED APT. — APARTMENT BUILDING EXTERIOR PAINTING — CLEANING ONLY CARPET SHAMPOO • Excellent Preparation Before Painting SIZE PRICE 4 UNIT From: $1,700 AND UP • $40 Plastering, Patching, $30 Sanding, FURNISHED (PER ROOM) Scraping $10 8 UNIT From: $2,900 AND UP 12 UNIT From: $3,500 AND UP $50 $40 $15 $60 $45 16 UNIT Materials (Sinclair $45 or Dunn-Edwards) $25 From: $4,300 AND UP • Quality $70 $20 • Windows, Puttying, Caulking and Priming — RESIDENTIAL HOUSE PAINTING (1 STORY) — INTERIOR PRICE EXTERIOR PRICE SIZE 2 BEDROOM $550 – up From: $1,300 and up 3 BEDROOM $750 – up From: $1,600 and up 4 BEDROOM $850 – up From: $1,900 and up INTERIOR PRICES INCLUDE: CARPET SHAMPOO FURNISHED (PER ROOM) Walls and closets—Flat paint $10 $30 Kitchen,$40 bathroom, doors—Oil $15 base paint 1 coat of paint $45 $20 FREE ESTIMATE Tel (323) 644-0644 Fax (323) 644-0699 FOUR SEASONS PAINTING & MAINTENANCE CO. STATE LIC. 560467 • BONDED • INSURED February 2010 / Apartment Journal / Page 19 AptJ-FEB10 2/24/10 2:28 PM Page 20 Do You Know Who Your Residents Are? By Mike Lapsley hile the subject of “criminal screening” may sound cold or even offensive to some, it’s important to remember that all of us, property owners and residents, want safe and peaceful places to live. In the multifamily industry, criminal screening has become one of the most important components in accomplishing this goal. Criminal screening protects your residents and your property. It’s also a key marketing point to let applicants know that they’ll be living in a safe environment. Plus, in some cases, you may need to conduct criminal screening to comply with state and federal regulations. However, unlike credit checks, this sort of screening is still in its infancy. So how do you know if your criminal screening policy is effective, yet fair and consistent? Consider the following tips. Carefully Define Your Criminal Criteria Determine what offenses are unacceptable. For example, you may identify specific types of misdemeanors, such as those that are violent toward people, or felony convictions within the last five to 10 years. Educate Yourself on Discrimination Laws Remember, look only at the facts. Don’t make assumptions based on things like a name or a personal characteristic. Consistency protects you, so treat all applicants equally. For example, you can’t reject someone based on a criminal screening if you’re not screening everyone. Make sure your policies are documented and that they fall within all federal, state, and county guidelines. Check out www.hud.gov/offices/ fheo/FHLaws/index.cfm for more information. Verify That You Have the Right Applicant W “Criminal screening protects your residents and your property.” You should always verify the applicant’s Page 20 / Apartment Journal / February 2010 identity before you even begin the process of criminal screening (or credit checks). For example, say your applicant’s name is Chris Smith. Your applicant might be female and the record that comes up might be for a male. Methods for verifying an applicant’s identity include checking governmentissued IDs, such as driver’s licenses, social security cards or passports. Cross checking can also be valuable. It is important to be able to cross check references before you even see the requested records, as well as do an address search so you can learn about identities instantly. Streamline By Using a Third Party Set specifications with your screening partner to filter results based on your specific criteria. This helps take the burden off your leasing agents and lets them focus on the job they do best—attracting residents. Choose a screening partner who can help you interpret results and whose service provides a recommendation to accept or decline the applicant. Know the Rules for Your Specific Properties For affordable properties, for example, certain rules exist for resident selection. Owners must develop and make public written selection policies. These policies must include any preferences in the admission of residents. The restriction or continued on page38 AptJ-FEB10 2/24/10 2:28 PM Page 21 (New modern, standard-size apartment prices. Prices for Navajo White) Since 1983 / Lic. B536821 INTERIOR PAINTING, CLEANING & TRUCK MOUNTED SHAMPOO ROOM SIZE SINGLE 1 BED & 1 BATH 2 BED & 1 BATH 2 BED & 2 BATH R.P. $115.00 $135.00 $155.00 $180.00 CEILINGS CLOSETS CLEANING HYDRO-JET SHAMPOO $60.00 $70.00 $80.00 $90.00 $20.00 $25.00 $35.00 $40.00 $60.00 $60.00 $70.00 $80.00 $70.00 $70.00 $80.00 $80.00 Old-style apartments, condos, houses & duplexes-estimates only. EXTERIOR PAINTING Complete preventative preparation against moisture and water leaks • Water Blasting • Patching • Caulking • Quality workmanship • Quality materials R.P.=REGULAR PAINTING INCLUDES: Flat walls, enamel-doors, kitchen & Bathroom (ceiling included) PAINTING EXTRA CHARGE: Studio/Loft, kitchen cabinet, shutter doors, extensive plastering, 2 coats, custom color, large-size rooms, occupied, wood windows, panel doors, cabinet or door varnish. CLEANING EXTRA CHARGE: Blinds, refridgerator, trash take-out, louver windows, Ceiling Fan. ACOUSTIC REMOVAL • Remove Acoustic • Create a Texture • Plastering INSURED & BONDED 167531/2 Parkside Avenue, Cerritos, California 90703 Tel: (714) 638-7500 • (562) 408-2500 Fax: (562) 483-6007 We have built up good credit over 25 years February 2010 / Apartment Journal / Page 21 AptJ-FEB10 2/24/10 2:28 PM Page 22 A Date with a Queen Visit the British Isles – Summer 2010 t is the land of legend, of knights, of Camelot. A place of hills so green you would think the word was invented to describe it. It is the past haunts of the likes of Shakespeare, James Joyce and Robert Burns. It is a place with history so rich it is almost tangible, a history mixed with successful invasion, honorable rebellion and an example of cultures thriving side by side. It is unique and fascinating. It is the British Isles. I “Whether staying with the group or exploring on your own, these three days are sure to delight.” We are very excited to offer AACSC members the very first SUMMER Seminar-atSea departure. We will christen this first summer trip with a spectacular 13-night, circle-the-British-Isles adventure, visiting England, Ireland, Scotland, and even stopping in France for the chance to spend time in historic Normandy. The British experience starts in Los Angeles. You fly from LAX on British Airways direct to London. Our home away from home in this city of cobblestone streets and doubledecker buses will be the stunning Renaissance Chancery Court. We’ll spend three nights in this historic hotel, located near Covent Garden and London’s West End. The Chancery Court is listed on Conde Nast magazine’s 2009 Gold List as one of the best places to stay in London. In this 5-star retreat, we will feel a connection with the city’s past but also have a great location for exploration. We start the adventure with a city tour, including the London Eye. There will be additional non-structured walking tours available for all to join as we explore a number of London’s interesting sites, such as Buckingham Palace and the Tower of London. Be sure to join us for an optional full-day tour to the English countryside featuring a visit to historic Bath and the stunning Cotswold Region with its fairy tale villages, picturesque fields and hedgerows. Page 22 / Apartment Journal / February 2010 Whether staying with the group or exploring on your own, these three days are sure to delight. The stay in London will include the hotel, all transfers, a half-day city tour, welcome dinner and Windsor Castle. We’ll tour Windsor Castle, the Queen’s summer home, on the way to Southampton to board our ship. After the tour, we’ll continue on for a meeting with the new Queen—Cunard Line’s beautiful new liner, the Queen Victoria. We will spend 10 nights aboard this wonderful ship that represents a modern version of a classic liner with stunning public areas from bow to stern. Our 10 nights aboard Queen Victoria start by sailing across the English Channel to Cherbourg, France. A pivotal city in the DDay invasions, this quaint little seaside village is the jumping off point for touring the beaches of D-Day. After a day in Cherbourg, we sail northwest and visit our first port of call in Ireland. We spend the day in Cork on the southern coast, a city located on an island created by the dividing of the River Lee. Our Irish experience continues as we sail for our next port, Dublin. The capital of Ireland and its largest city, Dublin was once a Viking settlement. It is officially known in Irish as Baile Átha Cliath. The English name comes from the Irish Dubh Linn meaning “black pool.” At the end of a full day, we set sail across the AptJ-FEB10 2/24/10 2:28 PM Page 23 channel and back to England and the port of Liverpool. Founded as a borough in 1207, it was not granted city status until 1880. Of course, the city was made famous to the world because of a fourmember musical group, the Beatles. This city boasts many wonderful UNESCO heritage sites. Again, we cross the channel as we work our way up the coast, this time to Northern Ireland and the city of Belfast. The city’s name comes from the Irish Béal Feirste, meaning “mouth of the sandbars.” Its notoriety comes from the troubled conflicts between the Catholics and the Protestants, mainly in the 1970s and culminating in the 1990s. Frommer’s famous guide book series listed Belfast as one of the top 12 places to visit last year. Edinburgh was well established by the 12th century and today is spectacular, with a feel of a very medieval city and a skyline dominated by Edinburgh Castle. This city is sure to be a highlight of the trip. Mix in a couple days at sea and you have one fabulous cruise. In the next issue, we will talk more about the ship and what makes this new Cunard liner so special. As always, we will have two industry-related seminars while on board the Queen Victoria. Don’t forget to consult your accountant regarding possible tax benefits of combining business with pleasure due to our Seminar-at-Sea Program. It just gets better as we sail across to the west coast of Scotland, and the city of Glasgow. Situated on the River Clyde, the site of Glasgow has been used as a settlement since pre-historic times. It is Scotland’s second largest bishopric, and truly became important in the 10th and 11th centuries. Mark your calendar for July 19, 2010, for the British Isles on the beautiful Queen Victoria. We expect this special cruise and pre-program to fill up fast, so don’t wait! The cruise starts at $2,995 per person for 10 nights, and the 5-Star 3-night pre-program in London at $1,299 per person. We have special group airfare from Los Angeles available on British Airways. We set sail and crest the very northern end of the British Isles, working our way south to the legendary city of Edinburgh, the capital of Scotland. A settlement from the Bronze Age, Visit www.AssociationAtSea.com for lots of pictures of the hotel and Queen Victoria. We look forward to you joining us this summer in London! Call us at 866-944-3036. February 2010 / Apartment Journal / Page 23 AptJ-FEB10 2/24/10 2:28 PM Page 24 By Jerry L’Ecuyer and Frank Alvarez Dear Maintenance Men: “Patience is king I have a problem. How do I get rid of a smart rat? The rodent has decided that living in one of my unit’s garages rentfree is the way to go. He is starting to eat into my tenant’s belongings and just creating a mess. The longer he lives there the dumber I feel. Victor Dear Victor: when trying to trap a rat.” Rats do seem quite clever at times. One thing you need to know about rats is that they are not risk takers. In the rat’s mind putting a trap out in the middle of the garage will be regarded as too risky to investigate. Rodents will run along walls, rafters and other low exposure areas. Put the traps along these routes about ten feet apart. A good bait to use is peanut butter. Patience is king when trying to trap a rat. Place all your baited traps, but Do Not set them for a day or two. Let the rat nibble at the bait danger free. This last part is the hardest to do. But, patience will win out. If you rush ahead and set the traps and the rat triggers one without being caught, he will remember! Also, avoid using traps designed for mice; it will only annoy the rat and he will be smarter for it. Using poison is another option. Anticoagulant poison is very popular. This poison causes the rat’s blood to thin. It will also make him thirsty and when he drinks water, he will bleed internally. When using this option, be sure to leave a saucer of water near the poison. The poison normally comes in bars that can be broken up into pieces. Remember rats hoard, so just because the poison is gone, does not mean they ate it. Put more until Page 24 / Apartment Journal / February 2010 they stop taking it. The local hardware store should carry this product, but it is best to go to a farm supply store. They will have the best supply. Be careful with placement, so other animals do not eat this poison or use an approved dispenser found at your local hardware or farm supply store. Again, patience is rewarded. Before using poison bait, use crunchy peanut butter to let the rats get used to the bait for a few days. Then add the poison bait with a little bit of peanut butter. We have found through desperation, that rats really hate Talk Radio. Turn on a radio to a talk station over night. Be sure to leave the rat an escape route out of the garage. It’s been known to work!! If you need maintenance work, consultation or management for your building or project, please feel free to contact us. We are available throughout Southern California. For an appointment, please call Buffalo Maintenance, Inc. at (714) 956-8371 and JLE Property Management, Inc. at (714) 778-0480. Jerry L’Ecuyer is the owner of JLE Property Management, Inc. and Buffalo Maintenance, Inc. and is a licensed contractor and real estate broker. He is currently on the Board of Directors, Chairman of the Education Committee and President of the Apartment Association of Orange County. Jerry has been involved with apartments as a professional since 1988 and can be reached at (714) 778-0480 or jerry@JLE1.com. Frank Alvarez is the Operations Director for Buffalo Maintenance, Inc. He has been involved with apartment maintenance and construction for over 18 years. He is also a lecturer and educational instructor. Frank can be reached at (714) 956-8371 Frankie@ContactBuffalo.com Please view our web sites at: www.JLE1.com and www.BuffaloMaintenance.com AptJ-FEB10 2/24/10 2:28 PM Page 25 CENTRAL ROOFING APARTMENTS LARGE AND SMALL… CENTRAL ROOFING DOES IT ALL!! OVER A DECADE OF UNCOMPARABLE QUALITY, PERFORMANCE & SERVICE RE-ROOFING • MAINTENANCE • REPAIR • ENERGY EFFICIENT COATING SYSTEMS • SHINGLES, MODIFIED, B.U.R., ROCK & MORE • MAINTENANCE & REPAIR • UP TO 10 YEAR LABOR WARRANTY ON ALL RE-ROOFING • UP TO 20 YEAR NDL WARRANTIES • COMPLIMENTARY ESTIMATES • CERTIFIED APPLICATORS • $2 MILLION LIABILITY INS AND WORKERS’ COMP. CALL 800-881-8834 or 310-527-6770 www.centralroof.com Ment ion Lic.# 684960 555 West 182nd St. Gardena, CA. 90248 thi for a Disco s Ad unt!! February 2010 / Apartment Journal / Page 25 AptJ-FEB10 2/24/10 2:28 PM Page 26 By Stephen C. Duringer “A thoughtful review of all applicants and their qualifications will allow you to select the most qualified tenant.” Q: I will probably have a vacancy coming up at the end of this month. I started advertising the unit and I put a sign in the window. Luckily, I’ve already received quite a few applicants. There are a few that sort of qualify, and I guess I could rent to one if I had to, but I’d like to continue with the ad and get a few more prospects to choose from. The thing is, one of the applicants is getting pushy. She calls me several times a day, says that she knows she is qualified, that I have to rent to her because the unit is still available and she was the first to apply. Truth is, she probably does qualify, but I’m just not sure. I haven’t actually denied her nor have I accepted her, I just need more time. Do I have to rent to her because she was first to qualify? A: No, there is no requirement to rent to the first person to meet your criteria. You are free to continue and accept additional applications from other candidates. From the pool of applicants you may select the best and most qualified applicant, without regard to timing of receipt of the application. Often an owner will have a single vacancy and have many qualified applicants to choose from. A thoughtful review of all applicants and their qualifications will allow you to select the most qualified tenant. Don’t let the pushy prospect bully you into making a premature decision. Q: Most of my rental units are large and each one has an enclosed yard. I think that tenants with dogs tend to stay longer because not many buildings accept pets, so I allow my tenants to have certain types of pets. I recently received a letter from a resident complaining that another resident’s dog Page 26 / Apartment Journal / February 2010 growled and seemed to lunge at her little toy poodle. Now, I like dogs, but not necessarily toy poodles, strange little things. I think that the poodle probably started it, but I don’t know for sure. Any way, no harm done, no bites, no blood. Should I be concerned? A: Yes. Although you are not the owner of the dog, and would not directly be responsible for any injuries that may result from a vicious dog attack, you may be held responsible based upon a theory that you, as a landowner, allowed a dangerous condition, the vicious dog, to remain on your premises. Once you are on notice of any dangerous propensity, either a bite or even an aggressive growl, you must take action to eliminate the threat of injury. Many juries will extend liability beyond the dog’s owner to the landlord if the landlord knew or should have known of the dog’s dangerous propensities, yet took no action to eliminate the danger. The foregoing is presented in a general nature to address general legal issues. Specific inquiries regarding a particular situation should be addressed to your attorney. The Duringer Law Group, PLC is one of the largest and most experienced landlord tenant law firms, specializing in evictions and in the collection of debt, representing landlords throughout Southern California. The firm may be reached at 714.279.1100 or 800.829.6994 or 877.387.4643. Visit our website at www.DuringerLaw.com for the latest in forms, or for copies of “Eviction and Debt Collection, a Landlord’s Guide,” and “Asset Preservation Strategies.” AptJ-FEB10 2/24/10 2:28 PM Page 27 2010 BOARD OF DIRECTORS AACSC STAFF Editor and Publisher Nancy Ahlswede We wish to thank our volunteer Board of Directors for their time and dedication to the Apartment Association, California Southern Cities. President Vice President of Administration Vice President of State Governmental Affairs Vice President of Local Governmental Affairs Secretary Treasurer Parliamentarian Immediate Past President Management Service Council Product Service Council Education Co-Chairs IPPAC Chair Board Members Todd Brisco Elaine Hutchison Carol Chen & Kari Negri Marial Sanders Brad Ward Kurt Wood Paul Menezes Malcolm Bennett Lucille Aresco-Crowley Bill Moseley Brandon Grey & Burt Sirota Evelyn Arnold Will Allen Terry Geiling Ed Arnold Kyle Kazan Lorrie Baldwin Janet Lee Christine Baran Bob Luskin Becky Blair John McGoff Mike Brassard Isidro Menezes Sharon Coughlin Allen Wood Design & Layout Nova Graphic Services Manager of Sales Tom Heller Advertising Phyllis Jaffe Association Staff Nancy Ahlswede, Executive Vice President Larry Ahlswede Diane Jenkins Oliver John Baptiste Terri Shea Denise Blair Luci West Diane Dagestino Legislative Advocate California Political Consulting Group (Sacramento) Ron Kingston Serving the Long Beach Area Since 1972 – Keeping It Flowing for You! Plumbing & Heating Repairs Drain Cleaning Piping • Installations Fast, Friendly Service! OCAJ President OCAJ Vice President OCAJ Secretary OCAJ Treasurer Clive Graham Leonardo Wilborn Steve Bogoyevac Kirk Davey (562) 599-0106 (562) 425-2373 Visit us at: www.petes-plumbing.com 3099 E. Pacific Coast Hwy., Signal Hill, CA 90755 Licensed & Bonded Contractor • State License No. 277178 February 2010 / Apartment Journal / Page 27 AptJ-FEB10 2/24/10 2:28 PM Page 28 By Ron Kingston he Governor unveiled an $82.9 billion state spending plan. The plan purports to not increase taxes, proposes pay cuts for state workers, reduces services to the poor and relies on increased federal government subventions. services for each dollar California residents send to Washington. Now it is the public’s turn to decide if the budget proposal does not increase taxes. The proposed budget for the next fiscal year that begins July 1, 2010 would: • Temporary increases of the sales and income taxes that were implemented last year would be allowed to expire on June 30 and on December 31, respectively. Last year, the voters rejected proposals to extend the 1-cent sales tax hike and .25 percent income tax until 2012. • The state’s current six percent sales tax on a gallon of gas would be eliminated and replaced by a 10.8 cent increase in per-gallon excise taxes. Administration officials estimate the overall impact would be a 6-cent per-gallon reduction in gas prices. This would allow the state to cut the T Governor Arnold Schwarzenegger also declared another fiscal emergency and called for a special session of the Legislature, designed to keep a projected $19.9 billion budget deficit from growing by an additional $2.4 billion. The Governor’s proposed three-part deficit-closing budget solution: $8.5 billion in spending cuts, $4.5 billion in “revenue shifts” (some of the revenue shifts were rejected by the voters last year), and $6.9 billion in additional money from the federal government. The Governor railed against federal tax subvention policies and practices that only provide 78 cents in BB ridges linds • License #651739 • Insured Serving So. Cal. Since 1967 , Inc. 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The question that we MUST ASK: do you think for a moment that local governments wouldn’t seek to impose a local tax increase to make up for the lost revenue? • The 200,000 some odd state employees who currently take three unpaid days off each month would go back to work full time. The “furlough program” would be replaced by a 5 percent pay cut, a five percent increase in contributions to retirement plans and a directive to all state departments to cut overall payroll by 5 percent. • Retain most elementary and high school funding with the exception of cutting $1.2 billion from school administrative costs. University of CA and state colleges would see the most increase in funding. • Prison costs would be cut by $1.2 billion. • As far as direct cost impact to property owners, the Governor proposes, as he as done in the past, to impose a $200 million fee (many refer to it as a tax) to pay for the state emergency response capabilities for CAL FIRE, the Military Department, and assistance to local first response agencies. Every property owner would pay a 4.8 percent surcharge on property insurance policies. Concerning the state Legislature, not only can we expect approximately 1500 bills being introduced this year, we should be active in over 50 of those bills pertaining to landlord and tenant issues. And those issues will be far and wide. We can expect some of the most significant landlord and tenant legislation in years to be introduced this year. Most notably, there should be an attempt to reverse a very recent court case that was a significant loss for cities and low-income advocates and a win for rental property owners and developers. Ron can be reached at: Ron@ CALPCG.com. February 2010 / Apartment Journal / Page 29 AptJ-FEB10 2/24/10 2:28 PM Page 30 Building the Future of the Multihousing Industry he recovery has been a long time coming. The recession left a mark and now many companies are deciding what strategies to employ to increase profits. The successful companies are the ones whose people are learning about and implementing innovative tactics, investing in professional development and training, streamlining operations with new products and services, and opening their minds and processes to change. One way multihousing professionals can get the training they need on subjects that are impacting their daily life is by attending the 2010 NAA Education Conference & Exposition, June 24–26, in New Orleans. In California, issues such as selling strategies, vacancies, water rates, energy conservation, maintenance, natural disasters, fair housing, and finances, all affect the bottom line and are forefront in the minds of multihousing professionals. “In today’s market, it’s important to learn how to ‘sell the units’ as opposed to taking orders. Our industry needs more professional salesmanship in leasing and closing the deal,” says Burt Sirota from Apartment Finders and the education co-chair for T the Apartment Association, California Southern Cities. With that in mind, the education session, The Science and Psychology of Leasing, offered at the 2010 NAA Conference is a perfect opportunity for industry professionals to learn how to improve performance. The session takes leasing to another level—one that approaches leasing for what it truly is—a sales process. Among other tactics, attendees will learn techniques to create greater closing confidence on the part of both the leasing professional and the prospective renter. Sirota also mentions, “High vacancies and the need to retain the residents we have” as important issues facing multifamily housing industry. With an investment of a few days of training on these issues, managers, executives, and owners can gain new insights and practical tips that can translate into novel business practices and higher profits. In the conference session titled, Increasing NOI and Asset Value: The Case for Attention to Retention, a panel will discuss the impact of cap rates on asset values, the real cost of turnover and real positive gain from reducing turnover, which metrics should be monitored, what matters most to residents when making their lease renewal decision, and how it all translates to growing NOI and asset value. In another session, attendees will learn to Capture Renters & Retain Residents through Popular New Media Channels. With vacancies on the rise, it’s more critical than ever to incorporate new technology and media channels into the marketing mix to keep vacancies filled. Attendees will walk away with a comprehensive understanding of how to reach new renters as well as how to build stronger connections with current residents—and turn them into ambassadors for their apartment community—through the most popular social networking sites. continued on page 34 BATHTUBS SINKS “You have tried the rest, now use the best!” BEAUTIFUL APTS. RENT FASTER! WE FINISH AND RESTORE: • Bathtubs JAY’S TUB RENEWAL Authorized Kott Koatings Dealer • Showers • Sinks (213) 505-5231 • S/Pans • Counters Page 30 / Apartment Journal / February 2010 Backed by 50 Years Experience AptJ-FEB10 2/24/10 2:28 PM Page 31 BATHTUBS SINKS SHOWERS Porcelain & Fiberglass Repairs & Refinishing One-piece Wall Surround Counter Tops Refinished For guaranteed repairs, call EVICTIONS (Residential and Commercial) 150 $ Uncontested* Plus Costs** BATH CRAFTERS (949) 552-7831 Lic. #568241 Allen Bezuidenhout, Bonded 00 * Please call for rates on contested matters ** Costs include all filing, service, clerk, sheriff and court-related expenses. C. TIMOTHY LASHLEE SUPPORT OUR ADVERTISERS Attorney at Law 2750 Bellflower Blvd., Ste. 204 Long Beach, CA 90815 (562) 938-7393 Serving Southern L.A. County and Orange County for over 25 years. 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YOU ION F O R U LTAT S CON 310 Web site: www.landlordlegal.com (562) 426-3837 (800) 894-2284 Contractor's license: B1-506485 Each DIAL ONE Company Is Independently Owned & Operated. Page 32 / Apartment Journal / February 2010 AptJ-FEB10 2/24/10 2:28 PM Page 33 Apartment Owners: Have You Planned ... In summary, an FLP or LLC provides numerous benefits for owners of rental real estate and their families: liability protection; proper succession management; the ability to gift interests in these entities at a significant valuation discount and also possibly obtain a valuation discount for estate tax purposes of any interests still owned by the parents at death; and finally, “keeping it all in the family” with a minimum of conflict. Obviously, this is a very quick discussion of FLPs Ditch That Rent Check ... continued from page 10 and LLCs. For example, which type of entity is better? And, which state it is better to have the FLP or LLC set up in (regardless of where the real estate is located)? These and other issues we will address in future articles. This is the first in a series of articles by attorney Philip J. Kavesh, California State Bar Certified Specialist in Estate Planning, with over 30 years of experience. He can be reached at phil.kavesh@kaveshlaw.com or 1-800-756-5596. continued from page 12 directly from your office, the easiest way to accept credit cards is to partner with a service that will administer the program and collect the transaction fees directly from the resident. These services will often offer an online portal for your resident to pay directly online. Of course, the check will be with us for the foreseeable future, but there are many options that can help you streamline your process today and reduce the pain of rent week. The choice you make depends on the options you want to offer your residents, how much you want to pay for offering that convenience, and whether you want your operation or the resident to pick up the cost. Jim Semick is the Director of Customer Development at AppFolio where he is responsible for software market development, new property management software technology, and working with property managers to provide input into the AppFolio Property Manager product. Appliance Replacement SPECIALISTS! As Easy As Ordering Pizza! FREE Delivery NEXT DAY Delivery FREE Hook-up 30-DAY Billing 125 W. Victoria Street, Long Beach, CA Telephone (310) 635-6300 • Toll Free (888) 852-8122 Built-in Appliance Specialist Since 1941 February 2010 / Apartment Journal / Page 33 AptJ-FEB10 2/24/10 2:28 PM Page 34 Building the Future ... continued from page 30 Water and energy conservation are also hot topics, especially in California. Several conference sessions will focus on increasing water efficiency to reduce operational costs, water efficiency strategies for your property, and proven no- and lowcost green strategies that will increase net operating income and asset value in your multifamily portfolio. Fair housing is a fundamental issue that multifamily housing professionals need to keep up-to-date on. Conference attendees will have the opportunity to learn how to create and revise policies to minimize liabilities in a fair housing complaint. And in a particularly interesting session, attendees will learn about lesser known but yet important fair housing issues—miniature horses, non-English speaking prospects and residents, and social media to name a few. The conference has something for everyone in the industry! For more information and to register for the 2010 NAA Education Conference and Exposition, visit www.naahq.org/nola. WATERPROOFING DECKING Westside Company BALCONIES - STAIRS - PATIOS - HANDRAILS PRE-CAST STAIR REPAIR DECKS • NEW • REPAIR • RESEAL Fiberglass • Urethane • Epoxy & Pebble • Plating www.westsidecompany.com FREE ESTIMATES • ALL WORK GUARANTEED • LIC #715018 1-800-838-7900 • 310-832-1114 • Support Our Advertisers FAX 310-221-0436 Law Offices of John F. Oakes A Professional Corporation Advising Business and Property Owners for Twenty-nine Years 100 Oceangate, Suite 680 Long Beach, CA 90802-4312 (562) 436-8422 Fax: (562) 495-6233 jfoakesesq@verizon.net Page 34 / Apartment Journal / February 2010 AptJ-FEB10 2/24/10 2:28 PM Page 35 Advertisers Index Appliances: Sales & Service American Appliances . . . . . . . . . . . . . . . . . . . . . . . 32 Feder’s Distributors . . . . . . . . . . . . . . . . . . . . . . . . . 3 KIVA Kitchen & Bath . . . . . . . . . . . . . . . . . . . . . . . 15 RSSA . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 43 169 COMPLETE JOB Porcelain & Fiberglass Formica Counter Tops Ceramic Tile 5 YEAR WARRANTY SINKS • SHOWERS • TUBS TUB-SO-NU (310) 834-9008 (714) 562-0108 Evening & Weekend Appts. Available City Service Paving . . . . . . . . . . . . . . . . . . . . . . . . 31 C & C Paving Co. . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Attorneys Dennis P. Block & Assoc . . . . . . . Inside Front Cover John F. Oakes . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Trutanich & Assoc . . . . . . . . . . . . . . . . . . . . . . . . . 27 Alfred Visco . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Bath & Shower Remodeling Carpentry Brent Collins Construction. . . . . . . . . . . . . . . . . . . 39 Carpets & Floor Coverings Jim’s Floor Covering . . . . . . . . . . . . . . . . . . . . . . . 46 LA Carpets, Floor and Painting . . . . . . . . . . . . . . . 11 Construction John Sears Construction . . . . . . . . . . . . . . . . . . . . 38 Decking/Waterproofing/Stairs / Magnesite Repair ABC Decking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Alex Decking . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Paradise Restoration . . . . . . . . . . . . . . . . . . . . . . . 45 Rash Yambo . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 DECKS - STAIRWAYS - BALCONIES Western Magnesite . . . . . . . . . . . . . . . . . . . . . . . . 30 Pre-Cast Stairs - Waterproofing Westside Company . . . . . . . . . . . . . . . . . . . . . . . . 34 800-215-1834 CMWS . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 34 Mold/Water Damage Restoration/Inspection Same Day Mold Testing. . . . . . . . . . . . . . . . . . . . . 38 C. Timothy Lashlee . . . . . . . . . . . . . . . . . . . . . . . . 31 WMG Contractor Warehouse. . . . . . . . . . . . . . . . . 44 Free Estimates Laundry Equipment Coastline Environmental Solutions, Inc. . . . . . . . . 41 Building Supplies Up to 10 Years Guaranteed Tweed Financial Services. . . . . . . . Inside Back Cover Landlord Legal Services . . . . . . . . . . . . . . . . . . . . 32 Tub-So-Nu . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Metal Stairs - Rails - Wood Repair ALEX DECKING & STAIRS Marcus & Millichap . . . . . . . . . . . . . . . . . . . . . . . . 13 Duringer Law Group . . . . . . . . . . . . . . . . . . . . . . . . 5 Jay’s Tub Renewal . . . . . . . . . . . . . . . . . . . . . . . . . 30 NEW AND REPAIR Investments/Loans Chase. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 39 Fiber Care Baths . . . . . . . . . . . . . . . . . . . . . . . . . . 41 Quality Work – Low Rates Huggins/Dreckman . . . . . . . . . . . . . . . . . . . . . . . . 42 West Coast Chief Repair . . . . . . . . . . . . . . . . . . . . 39 Dial One Bath Masters . . . . . . . . . . . . . . . . . . . . . . 32 Magnesite System • Fiberglass System Acri-deck System Insurance Bank of America . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Bath Crafters . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 31 DECKING & STAIRS Master Pest . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 17 Wards . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 33 Asphalt Paving BATHTUBS REGLAZED ★ QUALITY WORK ★ Exp. July 2010 Reg. Save $40 One coupon per tub Now Only $ 20900 $ Exterminators Electrical Repair & Installation European Electrical Contractor . . . . . . . . . . . . . . . 31 Reece Electric . . . . . . . . . . . . . . . . . . . . . . . . . . . . 35 Painting/Maintenance Buffalo Maintenance . . . . . . . . . . . . . . . . . . . . . . . 44 E N L Service Co.. . . . . . . . . . . . . . . . . . . . . . . . . . 21 Four Seasons Painting & Maintenance . . . . . . . . . 19 LA Carpets, Floor and Painting . . . . . . . . . . . . . . . 11 Sondance Painting. . . . . . . . . . . . . . . . . . . . . . . . . 41 Plumbing A-1 Copper Repipe . . . . . . . . . . . . . . . . . . . . . . . . 42 Albano’s Plumbing . . . . . . . . . . . . . . . . . . Back Cover Cal Coast Repiping . . . . . . . . . . . . . . . . . . . . . . . . 38 Coast Plumbing . . . . . . . . . . . . . . . . . . . . . . . . . . . . 7 Discount Drain & Plumbing. . . . . . . . . . . . . . . . . . 41 Pete’s Plumbing. . . . . . . . . . . . . . . . . . . . . . . . . . . 27 Southwest Environmental . . . . . . . . . . . . . . . . . . . 40 Superior 1 Plumbing . . . . . . . . . . . . . . . . . . . . . . . 44 Pool Service Services 4 Pools . . . . . . . . . . . . . . . . . . . . . . . . . . 31 Property Management Appleby Property Management . . . . . . . . . . . . . . . 32 Berro Management . . . . . . . . . . . . . . . . . . . . . . . . 36 Jenkins Property Management . . . . . . . . . . . . . . . 31 Merriwood Management . . . . . . . . . . . . . . . . . . . . 23 Roofing Central Roofing . . . . . . . . . . . . . . . . . . . . . . . . . . . 25 Royal Roofing Co. . . . . . . . . . . . . . . . . . . . . . . . . . 37 Security Systems Extra Eye for You . . . . . . . . . . . . . . . . . . . . . . . . . . 45 Window Coverings Bridges Blinds, Inc. . . . . . . . . . . . . . . . . . . . . . . . . 28 Magnolia Blinds . . . . . . . . . . . . . . . . . . . . . . . . . . . 38 February 2010 / Apartment Journal / Page 35 AptJ-FEB10 2/24/10 2:28 PM Page 36 Industrial LaundryRepair John Mayer 24656 Eshelman Avenue Lomita, CA 90717 (310) 798-1856 FAX (310) 534-0796 PSC Delta Mechanical Stephanie Carlson 6052 E. Baseline Road Mesa, AZ 85206 (866) 898-0008 FAX (480) 898-0005 PSC Anderson Group International Marcus Hackler 10655 W. Van Owen Burbank, CA 91505 (818) 760-4500 FAX (818) 760-4502 PSC McCormack Roofing & Window Company Bill Miller 1261 N. Hancock, #108 Anaheim, CA 92807 (714) 777-4040 PSC APPFOLIO Chris Casillas 55 Castilan Drive Goleta, CA 93117 (805) 617-2160 PSC Page 36 / Apartment Journal / February 2010 Watkins Property Management William Watkins 5925 Ball Road Cypress, CA 90630 (714) 612-5400 FAX (714) 763-2101 MSC MYNEWPLACE.COM Kirstin Williams 343 Sansome St. #700 San Francisco, CA 94104 (415) 348-2015 PSC Andy Street Owners Assoc. Ian Gee 3615 San Anseline Avenue Long Beach, CA 90808 (562) 421-1758 MSC Original Products Co., LLC Jason Fallon 10102 Empyrean Way #201 Los Angeles, CA 90067 (818) 389-3996 PSC Alpha Energy Solutions, Inc. John Sparling 1175 E. First Street Long Beach, CA 90802 (562) 608-8899 PSC Hoffman Interiors, Inc. Ken Hoffman 430 Leroy Drive Corona, CA 92881 (951) 549-9900 FAX (951) 549-9922 PSC Epertow, Inc. James Kruger 8341 Monroe Ave. Stanton, CA 90680 (714) 224-1360 PSC AptJ-FEB10 2/24/10 2:28 PM Page 37 Mold Clearance Inspection ... distinction from a “Testing and Removal” company, and it is up to you as the buyer to know that distinction. Since the mold industry is selfregulated, it is a classical case of “Caveat Emptor: Let the Buyer Beware.” Remediation companies may offer “100% Guarantee Pass Clearance” or even low-or-no-cost post-remediation verifications (PRV). But think about it, it’s like the proverbial fox guarding the hen house. Of course, the fox is going to assure nothing will happen to the hens under his watch. But if no one else is watching the fox, how do you know what’s really going on? Another analogy is the tobacco industry. For years, the tobacco companies denied any harmful affects of smoking cigarettes. They vehemently defended their position for decades until the statistics from the healthcare sector and the dreaded internal memos were discovered. Then it became obvious the tobacco industry was concerned with profit over consumer safety. Several class action lawsuits and billions of dollars later, the tobacco companies are no longer credible when it comes to selfregulation. continued from page 18 Another example: smog testing for motor vehicle registration. Auto repair shops that offered both services use to recommend costly repairs to pass smog inspection. Later it was determined auto shops were padding their profits by abusing their authority when testing, repairing, and clearing the smog compliance of many vehicles. The state stepped in and regulated this practice which resulted in “Test Only” smog check centers. This article is not a case for regulating the mold industry, but it is a reminder to use one company to inspect and a separate company to remediate. Now that you have been educated there is a lesser likelihood of recurring problems, occupant health and safety can be optimized, and the legal aspects of the situation are addressed objectively. The above article was produced by Same Day Mold Testing. The company offers fast, affordable results for owners and occupants concerned about the indoor environment of their structures. The company was established in 2005 to serve owners, managers, and tenants in the arena of mold contamination. If you suspect a mold problem contact our office to schedule an appointment (888) 882-7719. February 2010 / Apartment Journal / Page 37 AptJ-FEB10 2/24/10 2:28 PM Page 38 Do You Know Who Your Residents Are? ... preference must cite the supporting documents to ensure non-discrimination. Be Consistent Limit access to staff who have been fully trained in order to eliminate inconsistencies. To ensure consistency, provide written, step-by-step instructions for staff. Use standard forms so that each applicant is subject to the same practices and will receive the same consideration. Use objective criteria. Follow a formal written process for collecting information. Owners should be careful continued from page 20 about using informal gossip about an applicant. Such information is discriminatory and will affect applicants inconsistently, since the owner does not collect this for all applicants. Remember, information collected from the criminal screening process enables property owners to make informed and objective decisions. An effective screening policy will also ensure fair, consistent and equal treatment of applicants. Last, but certainly not least, criminal screening will help created a safe place for residents to live and peace of mind for you. BUILDING CONTRACTOR Have you received a Letter of Substandard from the LB Building Dept? • 32 Years Exp. • FREE consultation • Resolved 100s of cases WE CAN OHN SEARS CONSTRUCTION, INC. HELP! JSince 1977 Lic.#360625 562-522-5020 _________________________ Certified Mold Inspection: $169 _________________________ Includes: Excellent Value! Certified Inspection & Report, Moisture & Humidity Readings Easy to Read Professional Report Call to Schedule an Appointment Available 7 Days a Week Mold Testing Samples Starting at $75 Accredited Lab Analysis & Report “Same Day Specialists!” www.samedaymoldtesting.com Serving Owners, Managers and Tenants Since 2005 (888) 882-7719 Page 38 / Apartment Journal / February 2010 AptJ-FEB10 2/24/10 2:28 PM Page 39 Financial Focus ... continued from page 16 When we receive the invoice, we pull the SR’s listed and check them against what we’re being charged for. Was the work ordered? Is it at the agreed upon price? Did we approve any extra work? (There should be no surprises here if we have included prices for overtime and extra work in our contract, and if we approved any extra work BEFORE it’s done.) Since we have already inspected the work and marked the SR “OK”, we can approve the invoice for payment. Obviously, with this system, we wouldn’t pay for any work that we didn’t issue an SR for, or any extra work that we didn’t preapprove. A little time spent setting up a system like this will save A LOT of time down the road. The “paper trail” of Service Requests virtually eliminates any double-billing or extra charges and allows us to monitor our progress daily. Douglas D. Chasick, CPM®, CAPS, CAS, Adv. RAM, CLP, is The Apartment Doctor™, a Multifamily speaker and consultant with over 30 years experience in the apartment industry. He specializes in restoring rental health to ailing apartment communities and management companies. Doug is also the Multifamily Distance Learning Consultant for CallSource®. You can reach Doug at 888-222-1214, by writing to Doug@Aptdoctor.com, or by visiting his website, www.NOINews.com February 2010 • Volume 39 • Number 2 Published exclusively for the Apartment Association, California Southern Cities by OCAJ, Inc. (a wholly owned subsidiary of the Apartment Association, California Southern Cities) 333 W. Broadway, Suite 101, Long Beach, CA 90802. Published monthly. Subscriptions are $49.95 per year. Periodicals postage paid at Long Beach, CA and additional mailing offices. All rights reserved. Reproduction in whole or in part without written permission is prohibited. Publisher assumes no responsibility for articles or for content of advertisements. Postmaster: Send Form 3579 to Official California Apartment Journal, 333 W. Broadway, Suite 101, Long Beach, CA 90802, ISSN 0191-6335. The contents of this publication represent the opinions of the individual authors and contributors only and do not, except where expressly stated, represent the official position of the Apartment Association, California Southern Cities. A Non-Profit Organization 333 W. Broadway, Suite 101 Long Beach, CA 90802 (562) 426-8341 • (562) 424-3764 Fax Reservation Hotline: (562) 426-7785 VISIT US ON OUR WEBSITE: http://www.apt-assoc.com E-MAIL US AT: info@apt-assoc.com FORMS VIA FAX-ON-DEMAND: (562) 426-8297 FOR ADVERTISING RATES AND INFORMATION CALL (562) 426-8341 AIR CONDITIONING, HEATING & APPLIANCES Owner Hands-On Quality Assured STAIRS • BALCONIES Structural & Cosmetic Repairs Staircases • Decks • Waterproofing Patio Covers • Facia Boards Termite and Rotten Wood Replacement Doors and Windows We Sell New & Used Appliances Free Estimate • Fully Insured Brent Collins 714-612-8747 Fax: 714-891-7064 Established 1980 St. Lic. # 426137 February 2010 / Apartment Journal / Page 39 AptJ-FEB10 2/24/10 2:28 PM Page 40 Page 40 / Apartment Journal / February 2010 AptJ-FEB10 2/24/10 2:28 PM Page 41 February 2010 / Apartment Journal / Page 41 AptJ-FEB10 2/24/10 2:28 PM Page 42 ELECTRICIANS Father & Son Electricians. Family owned & operated since 1989 – Lic #612858. Fast, friendly service. Specializing in multi-unit buildings. 562.843.2860, 562.843.2837 www. fathersonelectric.com FLOORING Carpet – Dri Dek – Laminate VCT Wood. Free estimate – Free gift. Carpet 4U, 9303 Alondra Blvd., Bellflower, 562.866.2195 INSURANCE Does Your Insurance Agent Have Your Back? Call Huggins/Dreckman Insurance 562.594.6541 x21. Karen Can Protect Your Apartments & Page 42 / Apartment Journal / February 2010 Save You Time & Money. Local Agents Covering Los Angeles/ Orange Counties SCREENS Window/Door Screens. The rental industry’s professional mobile screen service. “We Come To You”. The Screen Machine, 562.572.2908 Joe TOWING SERVICE Budget Towing & Impound Service. We remove vehicles off your property within minutes at no cost to you! Free towaway signs, 866.543.2869 WASHER/DRYER SERVICE We have a history of dependable service, tenant satisfaction and customer profitability, and you can take that to the bank. Call us today for a free analysis at 800.225.6145 Ext. 16 WINDOW COVERINGS 3 DAY BLINDS Window Covering Specialists. Call 562.879.2598 for a FREE estimate. Nancy.littleton@ 3day.com, www.3day.com INSURANCE Up to 45% OFF Apartment Building Insurance. 800.979.7283. Since 1985 (Lic #OG00686) as seen in Forbes AptJ-FEB10 2/24/10 2:28 PM Page 43 February 2010 / Apartment Journal / Page 43 AptJ-FEB10 2/24/10 2:28 PM Page 44 Page 44 / Apartment Journal / February 2010 AptJ-FEB10 2/24/10 2:29 PM Page 45 Green Incentives ... continued from page 14 So it came as no surprise when I saw an apartment building which had several vacancies with a big sign that read “We Help You Conserve Energy, Save Money and Go Green”. I called the property manager to find out what this was all about. It turns out that when residents move in they receive a supply of energy-saving compact fluorescent light bulbs. Included is a box of floodlights (the size that replaces 120-watt lights) that only use 23 watts of energy. This is a great way to make a resident’s move-in day extra special. The manager told me (and I’ve since confirmed) that four of these 23 watt bulbs will save the resident around $465 over the life of the bulbs versus the 120 watt bulbs. In fact over the lifetime of the four bulbs in the package, the user will save 3,880kWh of electricity, which is enough energy to light the average home for approximately two years. On the box of bulbs given to each resident it reads: Help the environment by reducing greenhouse gases. By using these lights you’ll be saving over 2,930 pounds of coal from being burned or preventing over 6,270 pounds of carbon dioxide from entering the atmosphere. The greenhouse gases saved using the bulbs in this package are the equivalent to planting over 65 trees. This makes residents feel good knowing they are helping to do their part while they save money in energy and the cost of bulbs. The property owner also is willing to replace these bulbs (which have an average life of 10,000 hours) at no cost to the resident. They buy the bulbs at Costco and the local utility company gives them a rebate on every box they buy. Everyone comes out ahead. Anything that gives residents a sense of pride about where they live and saves them money is a real plus and a good way to retain them. Source: www.PropertyManager.com, Service of AppFolio Waterproof & Decorative Deck Coatings Repair, Replace, or Reseal High Performance Materials • Staircases • Landings • Walkways • Patios • Slip Resistant • Texture Patterns • Decorative Colors • Fiberglass Coatings • Balconies • Pool Decks • New Construction Quality Workmanship • Professional Service • Competitive Price/Free Estimates PARADISE RESTORATION SYSTEMS Licensed • Bonded Insured • BBB Member FREE ESTIMATES CALL (951) 847-0105 www.paradise-restoration-systems.com February 2010 / Apartment Journal / Page 45 AptJ-FEB10 2/24/10 2:29 PM Page 46 Page 46 / Apartment Journal / February 2010 AptJ-FEB10 2/24/10 2:29 PM Page 47 AptJ-FEB10 2/24/10 2:29 PM Page 48