The maintenance checkup this week involves 6 sink and garbage disposal maintenance tips for your rentals- and your tenants – from Keepe because recently has been getting many repair jobs concerning sink and bathroom repairs.
In California, a job order came in about the main faucet in a kitchen sink that had been leaking. Additionally, the built-in sprayer had been pulled out to clean the sink and wouldn’t retract, so the faucet and sprayer had been deconstructed for cleaning.
In the end, our maintenance person was able to fully replace the faucet and supply line, stopping the leak. Notice the before-and-after pictures below.
6 sink and garbage disposal maintenance tips
Don’t pour grease down the drain; it will often solidify and clog the sink.
Make sure not to leave food scraps in the sink. Clean it regularly so that it doesn’t accumulate waste or start to smell.
Use lemons and limes in your garbage disposal. They are a great way to naturally clean it and leave it smelling fresh.
Using hot water can go a long way to unclog and clean sink drains.
When running the garbage disposal, use cold water to help break up the food particles instead of letting them coat the drain.
Try to limit the amount of food you put down the garbage disposal to keep it as clean as possible
Odd Job of The Week
This week, Keepe got a job request in the greater Seattle area for a garbage disposal that “seemed to have a loose gear that was causing it to make crunching/screeching sounds.”
The tenants had already tried to reach in to see if something was stuck in the disposal, but hadn’t been able to find anything rattling around in it. The maintenance person was able to find the source of the noise… a loose penny!
The penny had somehow managed to get stuck inside the garbage disposal. Once removed, the was as good as new.
The penny here found in the tenant’s garbage disposal.
Other recent rental property maintenance Keepe posts you may have missed:
Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes a network of hundreds of independent contractors and handymen available for maintenance projects at rental properties. Keepe is available in the Greater Seattle area, Greater Phoenix area, San Francisco Bay area, Portland, San Diego and is coming soon to an area near you. Learn more about Keepe at https://www.keepe.com
Pet owners like to check on their pets on camera when they are away from home, and 73 percent check their pet cameras while on vacation, according to new research.
The survey, commissioned by Comcast and conducted by Wakefield Research, also found:
Pet owners love furry distractions. Nearly 3 in 4 (73%) pet owners who check their pets on camera do so while on vacation to sneak a peek at their pet(s) whenever possible. Nearly 3 in 5 (59%) have checked while at a party or social event; more than 2 in 5 (44%) have checked during a workout; during a meeting (38%); while talking on the phone (38%); and while out on a date (32%).
Pet(s) are more entertaining than family and friends. More than two-thirds (68%) of respondents reported checking in on their pet(s) more often than on social media to see what their family and friends are up to. More than 4 in 5 surveyed (84%) also reported they have shared video clips of their pet(s) on social media platforms.
Pet(s) lives are not so secret. Eighty-eight percent of respondents have checked in on their pets and caught them doing something naughty, such as sitting in a forbidden place (39%); making excessive noise (36%); eating human food that has been left out (33%); damaging furniture or accessories (30%); hiding or moving objects around the home (30%); relieving him/herself on the floor or on the furniture (26%); or getting stuck somewhere (17%).
Pet owners want ways to find videos of their pet(s) quickly. Nearly two-thirds (65%) of respondents said that because their cameras only have live feed, it is a bigger hassle to search hours of video of their pet(s) with no way to filter them, than it is to not have any clips of pets at all. They would like a filter feature to help them find clips faster.
Pets on camera give a sense of comfort and relief
Jill Rappaport, award-winning animal advocate, network journalist, best-selling author, and proud parent to six rescues (four of which are seniors), said, “My camera gives me a great sense of comfort and relief in knowing my fur angels are safe at all times. I feel the extra eye on them can be a lifesaver and it gives me needed insurance when I can check in on them from anywhere, at any time. Camera technology has really evolved and is an amazing way for pet owners to check in, especially for people with puppies who need constant monitoring or senior pets that often have health issues.” Click here for more pet care tips from Jill Rappaport.
To make it easier for Xfinity customers to keep tabs on their pets, Comcast has launched a new ‘”pet filter”’ feature on its Xfinity Camera. The filter uses artificial intelligence to quickly sort through hours of footage to identify just those with pets in them (out of the more than 100 motion-triggered video clips a typical camera can generate each day). Click here for more information on Comcast’s AI technology.
“We developed this feature to help our customers quickly filter motion-triggered events by people, vehicles, or pets because we wanted to bring them the video clips that matter most even faster,” said Dennis Mathew, Vice President and General Manager of Comcast’s Xfinity Home. “It’s an intelligent home-security solution that enables our customers to easily check in on their loved ones from anywhere, anytime.”
About the Survey
The survey was conducted by Wakefield Research among 1,000 U.S. adults, ages 18+, who are cat and/or dog owners who use a camera to monitor their pets. It took place between April 24th and May 7th 2019, using an email invitation and an online survey.
The apartment elevator maintenance checklist is this week’s maintenance tip from Keepe.
Elevators can be a complicated species of equipment, and signs of damage might be difficult to find, so here is a checklist to use.
Regular inspections are an important component of a safe, reliable elevator operation. This apartment elevator maintenance checklist includes the most important items to consider when inspecting elevators.
Inside of the Car:
Ensure the doors can open and close without any issues or obstructions
Also, look for signs of damage on the ceiling, handrails and walls
Inspect any lighting issues, including in the control panel and position-indicator lights, and replace any burned-out lights
Make sure that the door moves smoothly and does not slam or bounce
Examine the elevator going up and down and check leveling accuracy and speed so you can determine if adjustments are needed
Confirm that the emergency stop button is functioning correctly
Confirm that the emergency phone connects quickly to 911 or the fire department
Outside of the Car:
Replace any lights that have burned out
Inspect the door panels and clearances for any obstruction
Test the smoke detector and fire alarm system
Machine Room:
Make sure the room does not contain any material unrelated to the elevator
Check components for leaks, unusual vibration or wear
Inspect electrical components for overheating or failure
Check oil levels and ensure all systems are properly lubricated
Examine electrical wiring for signs of fraying or defects
Make sure there is adequate headroom for technicians
Remove anything that interferes with or obstructs access to the equipment
Top of the Car:
Ensure that the emergency exit hatch is easily accessible
Test the brakes and inspect them to ensure they are in good condition
Check cables for signs of wear or damage
Look for signs of rodents or vandalism
Clean any debris from the top of the car
Inspect any visible components such as guide rails and leveling devices
Ongoing maintenance is crucial to keep your elevator running safely and smoothly. Also, as you can see, there is a lot to check on during an apartment maintenance maintenance maintenance appointment.
So as a property manager, use this guide to stay on top of major signs of damage that may arise in your property.
Remember to check outside the elevator car to be sure lighting is adequate and safe.
Other recent rental property maintenance Keepe posts you may have missed:
Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes a network of hundreds of independent contractors and handymen available for maintenance projects at rental properties. Keepe is available in the Greater Seattle area, Greater Phoenix area, San Francisco Bay area, Portland, San Diego and is coming soon to an area near you. Learn more about Keepe at https://www.keepe.com
Portland multifamily rent growth has cooled due to more than 5,000 units coming online in 2018 with rents increasing only 1.9% year-over-year through February, below the 3.6% national average, according to the spring report from Yardi Matrix.
However, the outlook is good.
“Backed by solid job growth and in-migration boosted by a healthy quality of living, Portland’s multifamily market continues to be strong,” the report says.
“Oregon has attracted national attention due to its enaction of statewide rent-control limits,” the report says. “The law limits rent increases to 7% plus inflation and capital expenses and applies to properties older than 15 years. Although the immediate impact might be slight, the concern is that it will lead to tighter limits down the road,” the report says.
Portland multifamily rent growth to rise 1.9 percent in 2019
Economic growth is healthy.
“The metro added 27,500 positions in 2018, a 2.4% year-over-year employment growth rate. The construction boom taking place in the metro is supported by the office sector, which has more than 2.4 million square feet of space under construction,” the Yardi Matrix report says.
“With more than 9,320 units underway and some 6,900 units expected to be delivered this year, there are major concerns about oversupply, but a strong occupancy rate is indicating that there is a rapid absorption of new deliveries and demand for housing outpaces supply. The high occupancy rate and steady rent growth are drawing investors to the metro.
“With demand high, we expect rents to rise 1.9% in 2019,” the report says.
Portland multifamily rent trend
Rents in Portland have decelerated in recent months, according to the report, which shows:
Year-over-year, rents were up 1.9% through February, though down 70 basis points from December. February’s rent growth was 170 basis points below the national average, and Portland’s $1,382 average rent was below the $1,426 U.S. average. Occupancy for stabilized properties decreased by only 10 basis points year-over-year through January, indicating that demand continues to be strong in the face of an influx of new supply.
Affordability has been a major issue in Portland, and the working-class Renter-by-Necessity segment led rent gains. RBN properties increased rents by 2.5% year-over-year, to an average of $1,226. Lifestyle units rose 1.7%, to an average of $1,540. With the bulk of deliveries in the upscale segment, the need for RBN assets is likely to remain robust.
The Pearl District ($1,960) and Downtown Portland ($1,956) had the most expensive rents in the metro, while the Hazeldale (15.1%), Stafford (10.4%), Kelly Creek (7.3%) and Madison South (6.2%) submarkets saw the largest year-over-year increases. Oregon’s recently applied statewide rent-control limits, which allow a rent growth of 7% plus the rate of inflation (exempting properties less than 15 years old), may further limit rent increases. Yardi Matrix expects Portland rents to rise 1.9% in 2019.
Portland apartment supply
Portland’s multifamily pipeline has been robust in recent years, and that is expected to continue, the report says:
More than 9,000 units are under construction, with some 6,900 units likely to be delivered this year. Although construction is expected to decrease – new permits for multifamily development are hitting the cycle low after the inclusionary housing passed in 2017 – demand for housing remains robust, especially for affordable units.
Roughly 5,100 units were completed in 2018, a major increase from the 3,887 units delivered in 2017. Despite the large new supply, occupancy for stabilized properties increased by only 10 basis points compared to last year—95.3% as of January, indicating that demand remains strong, keeping up with the consistent incoming inventory.
Most projects are geared toward the northern area of Portland. The Kerns/Buckman and Piedmont submarkets are the busiest, with more than 2,500 units currently under construction. Killian Pacific’s Goat Blocks, a 347-unit community in the Kerns/Buckman submarket, was the largest project in the metro.
More than 9,000 units are under construction, with some 6,900 units likely to be delivered this year.
Yardi Matrix is a business development and asset management tool for investment professionals, equity investors, lenders, and property managers who underwrite and manage investments in commercial real estate. Yardi Matrix covers multifamily, industrial, office and self storage property types. Email [email protected], call 480-663-1149 or visit yardimatrix.com to learn more.
About Yardi
Yardi develops and supports industry-leading investment and property management software for all types and sizes of real estate companies. Established in 1984, Yardi is based in Santa Barbara, Calif., and serves clients worldwide. For more information on how Yardi is Energized for Tomorrow, visit yardi.com.
The National Multifamily Housing Coalition (NMHC) and the National Apartment Association (NAA) have launched a new website called Growing Homes Together (www.growinghomestogether.org) to provide an online resource for housing-affordability solutions at the state and local levels, according to a release.
“Families are struggling to afford housing costs and communities are looking for solutions to end the affordability crisis that do not involve outdated policy solutions or overregulation,” said Doug Bibby, NMHC President, in the release.
“Our goal with Growing Homes Together is to highlight the policy solutions that will make a meaningful impact on people’s lives, provide roadmaps to reducing barriers to address housing shortages, and demonstrate the progress that is possible when local, state and federal governments come together with advocates, residents and industry leaders in the interest of all American families.”
The housing coalition said a growing number of Americans – at all income levels – are struggling to find housing they can afford, creating a strain on those families.
Growing Homes Together online hub outlines three key steps to alleviate this burden:
Address the tremendous shortage of homes and remove barriers to adding more supply.
Develop and implement creative, public-private partnership opportunities to bring price points down and create more affordable housing.
Use targeted subsidies to help families that are in the most need right now.
The site includes state- and community-specific facts and data, historical perspectives on housing policy, details on legislation under consideration across the country, and resources for those who may want to get involved.
In addition, the site will feature critical background information about the housing crisis, the latest news and perspectives about housing affordability, and the facts and figures that policymakers, advocates, renters and developers need in order to develop and deliver meaningful solutions that provide relief for families struggling to afford their rent.
Growing Homes Together also provides context around failed or outdated laws. Specifically, the site highlights the harms associated with rent control, a form of government-enforced price control first enacted in the post-WWII economy to help returning soldiers. Rent-control policies no longer help lower-income populations, as they originally were intended to do. They actually exacerbate housing shortages, and disproportionally benefit higher-income households.
Growing Homes Together advocates for a wider range of housing options, giving Americans greater choice, and proactive policy solutions that do what they are intended to do: make housing more affordable.
Growing Homes Together launches with detailed information about how rent control affects 14 states across the country, including the housing solutions under consideration in those states. The initial states profiled on the site include: California, Colorado, Florida, Illinois, Maine, Massachusetts, Minnesota, Nevada, New Jersey, New York, Oregon, Rhode Island, Washington and Wisconsin, with more states coming soon.
The site also features ways for concerned citizens to get involved by joining an email list and following Growing Homes Together on Twitter and Facebook.
Based in Washington, D.C., the National Multifamily Housing Council (NMHC) is the leadership of the trillion-dollar apartment industry. The council brings together prominent apartment owners, managers and developers, who help create thriving communities by providing apartment homes for 39 million Americans. NMHC provides a forum for insight, advocacy and action that enables both members and the communities they help build to succeed. For more information, contact NMHC at 202/974-2300, e-mail the Council at [email protected], or visit NMHC’s web site at www.nmhc.org
The average U.S. multifamily rent has risen $14 over the last three months, “which is a decent performance but far short of the levels of recent years,” according to the May report from Yardi Matrix.
“Year-to-date through May, rents were up 1.2%—again, good but not up to the recent past. In fact, over the last six years, only in 2017 (1.7%) did rent growth fail to reach 2.0% year-to-date through May,” the report says.
Multifamily rents grow slowly
U.S. multifamily rents increased by $5 in May to $1,442. Because rents increased less than they did in the same month in 2018, year-over-year growth fell 50 basis points from April to 2.5%.
Although rent gains are in line with the long-term average, 2019 is shaping up to be weaker than the last few, much more robust, years. Year-over-year rent growth has dropped 80 basis points over two months and 110 basis points over three months.
After sharing the spotlight with Las Vegas last month as the top metros, Phoenix pulled ahead in May atop our list of major metros with a 6.8% growth rate. Las Vegas is second at 6.6%, followed by Sacramento (4.1%) and Atlanta (3.9%).
Phoenix apartment complex where Yardi Matrix says “Phoenix pulled ahead in May atop our list of major metros with a 6.8% growth rate.”
2019 could be shaping up to be a weak year for multifamily rents
“This is notable because the bulk of rent growth tends to occur in the first half of the year. If the past is any guide, 2019 would be hard-pressed to continue the bullish outcomes of the last six years if things don’t improve quickly,” the report says.
Year-over-year rent growth tops in Phoenix and Las Vegas
Demand in the desert continues to show up in the year-over-year numbers, according to the report.
Rents increased 2.5% year-over-year in May, down 50 basis points from April and 80 basis points from March. The year-to-date increase of 1.2% is the slowest rate of growth since 2011.
The Renter by Necessity category (3.0%) continues to grow at a faster rate than the Lifestyle category (1.7%). Only eight metros top the 2.5% overall national average in Lifestyle rents, but 22 metros top 2.5% growth in RBN rents.
Phoenix (6.8%) overtook Las Vegas (6.6%) in May to lead the rankings. The metros are No. 1 and No. 2 in both Lifestyle and RBN rent growth, and both have increased occupancy rates of stabilized properties by 20 basis points over the past year (Las Vegas to 95.0% and Phoenix to 95.5%) despite adding a significant amount of new supply. Meanwhile, Houston (0.4%) and Seattle (0.8%) have the weakest growth.
Phoenix apartment complex where Yardi Matrix says “Phoenix (6.8%) overtook Las Vegas (6.6%) in May to lead the rankings.”
“The National Association of Business Economists released a survey that found a growing number of prognosticators increasing the odds that a recession will start in 2020,” the report says.
“Even though a recession in the near term remains a minority opinion, however, the downside risks are growing. The biggest reason cited is trade uncertainty, with 88% of economists surveyed downgrading growth forecasts because of President Trump’s policies on trade, which include tariffs on imports from China and Mexico. The other top reasons cited for the weaker growth outlook are stock market volatility and slowing global growth,” Yardi Matrix says in the report.
Discrimination based on nonconformity with gender stereotypes is covered by the Fair Housing Act, so this week the Grace Hill training tip takes a look at the LGBT community and Fair Housing.
In recent years, the LGBT community has earned additional rights under the law in many different contexts.
From same-sex marriage recognition to restroom access corresponding to a person’s gender identity, the law is constantly evolving.
The Federal Fair Housing Act (FHA) does not specifically include sexual orientation and gender identity as protected classes.
However, discrimination against a lesbian, gay, bisexual, or transgender person may be covered by the FHA if it is based on nonconformity with gender stereotypes.
The LGBT community and the Fair Housing Act example
If a housing provider refuses to rent to an LGBT person because she believes the person acts in a manner that does not conform to her notion of how a person of a particular sex should act, the person may pursue the matter under the Fair Housing Act as discrimination based on sex.
If a property manager refuses to rent to a prospective resident who is transgender because of the prospective resident’s non-conformity with gender stereotypes, this could be discrimination on the basis of sex under the FHA.
Despite the relative lack of protection under the FHA, both the judicial system and the United States Department of Housing and Urban Development (HUD) have in recent years expanded anti-discrimination protections for the LGBT community.
The law is clearly trending towards recognizing sexual orientation and gender identity as protected classes under fair housing laws. In fact, it is already the law in many states and localities.
Every interaction with residents and prospective residents is an opportunity to comply with fair housing laws
Remember, every interaction you have with prospective and current residents is an opportunity to comply with fair housing laws and prevent discriminatory housing practices.
By treating everyone fairly, equally, and consistently, you help reduce the risk of violating fair housing laws and create a welcoming atmosphere and sense of community for your customers.
And, fair housing laws protect people from discrimination throughout all stages of your interactions, not just after they become residents of your community. From the first contact, whether by phone call, email, text, or in-person, you are responsible for complying with fair housing laws and treating all people in a non-discriminatory manner.
Even if LGBT persons are not technically considered a protected class under the laws applicable to the area your company or property is located in, there are valid reasons for maintaining a company policy prohibiting LGBT discrimination, and for ensuring employees understand that all people must be treated in a non-discriminatory manner.
Ellen Clark is the Director of Assessment at Grace Hill. Her work has spanned the entire learner lifecycle, from elementary school through professional education. She spent over 10 years working with K12 Inc.’s network of online charter schools – measuring learning, developing learning improvement plans using evidence-based strategies, and conducting learning studies. Later, at Kaplan Inc., she worked in the vocational education and job training divisions, improving online, blended and face-to-face training programs, and working directly with business leadership and trainers to improve learner outcomes and job performance. Ellen lives and works in Maryland, where she was born and raised.
About Grace Hill
For nearly two decades, Grace Hill has been developing best-in-class online training courseware and administration solely for the Property Management Industry, designed to help people, teams and companies improve performance and reduce risk.
Here are 6 ways to bug-proof your rental property and keep your tenants happy which is this week’s maintenance tip from Keepe.
Bugs are always an unwanted guest for your tenants and can create unsanitary living conditions.
Because there are so many different types of bugs, bug proofing your rental property can sometimes feel like a losing battle.
Here are 6 ways to bug-proof your rental property and hopefully these simple two-cost steps will help.
1. Seal doors
Examine the around your doors. It’s common to find small cracks large enough for bugs to get in. To keep insects from crawling underneath the door, you can install a steel or aluminum threshold under the door. For even better protection, combine the threshold with a nylon door sweep.
The sweep helps cover the gap between the threshold and the door bottom for even better protection against bugs.
2. Add screens
Especially during summer days, many tenants like to rely on natural ventilation from windows. Unfortunately, this is also the worst time for mosquitos, fleas and other insects to come into your home.
By installing screens on all windows and doors, your tenants can keep the ventilation of fresh air while also protecting against pests.
Screens are important to keep bugs out when tenants want fresh air.
3. Repair cracks
Because bugs are small, they are able to enter from cracks that may be nearly invisible to the rental property owner and tenants. Start by examining the exterior for any damaged, loose, missing, or rotting sections. You could be surprised by the number of openings you find.
To keep the bugs out of these cracks, use mortar or cement to patch foundations, replace damaged bricks and remove rotting wood. If there are any areas susceptible to termites, you may add cement backer board to reinforce the area and prevent termite damage. Caulk is also amazing at repairing small cracks around the exterior of your rental. Use caulk around window frames and roofs to really seal openings.
4. Store trash properly – get your tenants involved in this
As many know, bugs are attracted to trash and debris. Trash can be a gourmet meal to cockroaches and fruit flies. You need to be sure your tenants are involved in keeping the rental clean and being aware of how trash can attract bugs.
Ask your tenants to keep all food trash in the kitchen, instead of throughout the house. This will minimize the areas bugs will most likely go. Additionally, the trash should have a lid and be emptied once a day.
5. Dry up damp areas
Bugs don’t only seek food, like trash, but also water. There are many types of insects that prefer living in damp spaces. To prevent this, fix and replace any leaky faucets, drains or pipes. Inspect your air conditioner, washing machine and dryer to make sure they are all working properly.
You may also need to check the attic to make sure there are no leaks. If there are areas that feel damp, try using a dehumidifier.
6. Kill the bugs you see
Even if after bug-proofing your rental you may see bugs around so kill them immediately.
If your tenants have killed bugs, ask them to provide a photo of what they found so you can act. Of course there are many insect control products on the market, but to give yourself and your tenants peace of mind you may want to call an exterminator to take care of this problem. Your tenants will appreciate your concern and your action.
Other recent rental property maintenance Keepe posts you may have missed:
Keepe is an on-demand maintenance solution for property managers and independent landlords. The company makes a network of hundreds of independent contractors and handymen available for maintenance projects at rental properties. Keepe is available in the Greater Seattle area, Greater Phoenix area, San Francisco Bay area, Portland, San Diego and is coming soon to an area near you. Learn more about Keepe at https://www.keepe.com
Landlords again pushed back against a proposed Portland City Ordinance on tenant-screening criteria in a public hearing in late May asking for more changes and sharing concerns.
The council has set a vote on the ordinance for June 12. Commissioner Chloe Eudaly, sponsor of the measure, added an amendment to move implementation of the ordinance from October 2019 to March of 2020. The measure includes controversial rent-to-income ratios as well as criminal-background check requirements.
Some of the highlights of the landlord testimony included mom-and-pop landlords, larger corporate landlords and landlord organizations.
‘I did not know I was evil’
One landlord, Diane Ponti, told the council in the public hearing that she is a schoolteacher and that over 45 years she and her husband, also a schoolteacher, had bought nine rental properties.
“Tenants and landlords are both people. Like teaching school and grading papers, you can look at a bell curve and just like students you will find thoughtful and responsible landlords and tenants on one end of a bell curve. At the other end of the curve you frankly find tenants and landlords who give the industry a bad name.
“The proposed regulations do not take into account that most landlords and tenants fall somewhere on that bell curve as opposed to landlords at one end and tenants at the other. All landlords are evil and all tenants are good,” is what she is hearing.
“I did not know I was evil until I started reading the newspaper about how horrible landlords were. I came to this meeting with trepidation because I feel like the face of evil. I am a landlord. It is challenging to read that about myself. I care about the tenants I have rented to over the last 45 years. I care about the houses I bought and that the house is in good shape. And that my tenants and neighbors will get along.
“I have had tenants who have stayed in my homes for decades. I have had years where there have been no rent raises at all. Rents have stayed flat,” Ponti said.
One of the slides presented at the hearing on the Portland tenant screening ordinance by Jamey Duhamel, Director of Policy, for Commissioner Eudaly.
Unintended consequences for the proposed Portland tenant screening ordinance
“The proposed regulations remind me of the bank standards that were lowered in the early 2000s when people who could not really afford to buy faced foreclosure,” Ponti told the council. “These regulations with lower income requirements are going to put tenants one paycheck away from eviction when a financial crisis arises and they cannot pay their rent.
“Mom-and-pop landlords like me will sell. I read the regulations five or six times and they are confusing, they are daunting, they are scary and they are expensive. And, I think you will reduce affordable housing when landlords like me sell,” she said.
Ward Green, an attorney in Portland, said he agrees “we share a moral obligation to provide affordable housing” but doubts this package of ordinances is the way to do it. “I know I won’t be popular when I say I would like to see the political will to raise taxes, especially on wealthy Portlanders, and business. The city is doing well. Many of us are doing well.”
He suggested “we allow more density,” more ADUs, faster, cheaper building permits for people who want to construct rental properties, to create a fast track. “We need to create more housing,” he said, using the example of rearranging the deck chairs on the Titanic.
Referring to the first-come, first-served provision of the Portland tenant screening ordinance, he said letting someone come ahead of someone else in the rental process “is not going to create more housing.
“I think this ordinance is wrong. I think it is demonizing landlords. And I think it is not going to increase the number of available rentals. I think it is going to encourage some private landlords to get out of the business,” he said.
Concern about having to take tenants who may not be able to afford the rent
Landlords objected in particular to having to wait 72 hours to advertise a unit before it can be rented, as well as new caps on the income-to-rent ratio landlords can require.
Jim Rostel, sales director for Anchor Property Group, said allowing someone to pay 50 percent of their income for a rental is just setting them up for failure. His company has 2,200 units in Portland.
The ordinance sets out two and a half times the rent for cheaper units that meet a federal standard of being affordable to someone making 80% of the area median income, or two times the rent for more expensive units.
“We had discussions this morning. Do we move to another market? Do we move to Boise and build in Boise?” said Rostel of Anchor, a Portland area company that builds and manages apartments across the city.
Council should not water down consumer protections
Deborah Imse, executive director for Multifamily NW said, “While we share the city council’s goal of improving access to housing for vulnerable populations, we do not believe eliminating or watering down basic consumer financial protections is the way to accomplish that objective.
“What this proposal is doing is watering down industry safeguards that protect consumers from entering into housing contracts that they cannot afford. Contrary to the political messaging around this bill, a requirement that tenants earn three times (the) monthly rent is not designed to protect landlords. It is to prevent consumers from entering into housing contracts they cannot afford.
“When someone moves into housing that they do not have the income to support, they are far more likely to fail to make rent payments and ultimately to be evicted. We see this frequently even for tenants who earn more than three times the monthly rent. By eliminating that protection you are ensuring that the more vulnerable Portlanders will enter into housing contracts they cannot afford. That more Portlanders will be evicted. And those same exact Portlanders will then have a much harder time securing housing as a result of a ‘forlcause’ eviction. The chain of events will logically lead to more housing instability and ultimately homelessness. Please do not go down this path.
“Similarly, discretion in renting to individuals with egregious criminal backgrounds, in particular sexual offenders and violent domestic abuse crimes, is not to protect landlords. Most of our members do not reside in the communities that they operate. The discretion is to protect other tenants, including young families, seniors, and survivors of domestic abuse whose safety we also believe is incredibly important. I do believe it is important to acknowledge the deep racial disparities that exist in our criminal justice system and to also affirm that all criminal backgrounds are not equal. This is a very sensitive, difficult question that we all must work together to resolve. But this proposal addresses it in a way that is extremely unclear and essentially forces the housing provider to act as judge and jury on each individual case. It will result in improper screening in and out, and ironically could ultimately lead to more discrimination.”
She urged the council to slow things down and take a more measured approach.
And “despite the political rhetoric of the past several years, we remain deeply open to partnering with the city and stakeholders on policies that will expand housing access while protecting the right and safety of Portlanders,” Imse said.
Final public hearing on Portland tenant screening ordinance
Eudaly said no further public testimony would be taken in order not to delay any further the June 12 vote.
At the beginning of the council meeting, Eudaly mentioned a “disappointing hearing” at the U.S. Department of Housing and Urban Development, saying potential rent increases and other statements by officials, such as removing “free from discrimination” from the HUD mission statement, were troubling.
Eudaly began by saying, “The federal government is not going to save us. The state government is not going to save us. The market is not going to save us. We need to take ongoing action to assert our local power on multiple fronts to solve our housing crisis.
She said robo-calls that went out in Portland during May were disappointing and spread misinformation. “I am requesting we stick to the facts and debate this on its merits.”
Economist Thomas Sowell once quipped, “The first lesson of economics is scarcity” and “the first lesson of politics is to disregard the first lesson of economics.”
With California’s recent flirtation with statewide rent control, it seems Golden State lawmakers are treating Sowell’s warning as a game plan.
The results will be predictable: less affordable housing for all.
With the exception of lawmakers and a small crew of activists, almost everyone knows that rent control has never worked. All economists know it. And it seems most Californians know it, given that the state’s voters thoroughly trounced an initiative last November that would have repealed a 1995 law that limits local jurisdictions’ ability to impose rent control.
Yet the rent control myth persists. Oregon lawmakers have manifested their faith with a new statewide rent control regime, and California lawmakers are now toying with the idea.
California’s rent control bill, AB 1482, would impose a 5 percent cap ( later amended to 7 percent) on rent increases beyond the percentage of regional inflation. That’s stricter than Oregon’s recent law, which imposed a 7 percent cap, although last month California lawmakers offered a twig-sized olive branch by exempting newer rentals.
Unfortunately, however they may tinker with the specifics, the bill won’t overcome its most fundamental flaw: ignoring the aforementioned first lesson of economics.
When politicians shove down prices a shortage results
A lower price means more people want the good while fewer people produce it. So, rent control means more demand for housing and less housing supply.
Landlords will either bow out of the market, always max out on the rent increases available to them, or ratchet up the rent immediately when a new lease begins.
Meanwhile, inflated prices will spill out into the uncontrolled market, worsening the crunch.
California rent control will mean slower development of new multifamily housing
California rent control will cause apartment investment trusts to underperform, and investment dollars that may have gone toward new construction, in anticipation of solid returns, will go elsewhere. As various states have flirted with rent control in recent months, investors already have begun to flinch. This is an ominous sign, since multifamily housing is an essential tool in easing a housing crisis.
California’s bill not only will cause a housing shortage, it also will degrade the quality of the existing housing stock.
Rent control leaves landlords with little incentive to upgrade and improve their property. Plus, landlords operate at a narrow margin. Rent controls choke that margin even more, leading landlords to forego maintenance and improvements. The legacy of rent control is a crumbling housing stock, both figuratively and literally.
The bill’s recent amendment to exempt newer housing would do little to alleviate the problem. That amendment is likely designed to maintain incentives to build affordable housing. But the rent control measure will make new housing even pricier, whether or not it’s in the grip of rent control. After all, when you squeeze prices, they’ll inflate in the uncontrolled market.
Who does rent control help?
And who does rent control help, anyway? It helps people who can fight their way into a price-controlled unit and stay put. In most cases, those people are not the poorest among us, who are often left to struggle in the uncontrolled market while the beneficiaries of the rent control regime slide along in comfortable, affordable housing that’s not subject to market prices.
There are some sad ironies behind California’s wrongheaded rent control push. Some months ago, California Gov. Gavin Newsom took an encouraging step toward the right affordable housing solution: encourage new construction.
Newsom urged local communities to remove barriers to more housing construction, threatening to strip local jurisdictions of transportation funding if they didn’t comply with a state housing quota. However, late last month Newsom indicated that he’d sign a rent control bill if it reached his desk. He can’t have it both ways — his signature on a rent control bill will offset any good his construction initiative might do.
The other irony is California’s steady refusal to listen to the advice of its own experts. In 2015, the Legislative Analyst’s Office released a study about why California has become so unlivable. Their diagnosis was simple: over regulation of real estate. Their prescription was obvious enough: build more housing. But they were speaking the language of the first lesson of economics — and we know what the first lesson of politics says about that.
About the author:
Ethan Blevins is an attorney with Pacific Legal Foundation, which litigates nationwide to achieve court victories enforcing the Constitution’s guarantee of individual liberty. Follow him on Twitter @ethanwb.
