Seattle and Portland In Top 5 Cities in U.S. for Most Green Apartment Rental Units

April 2, 2019

Seattle and Portland are in the top five cities in the United States with the most green apartment rental units, according to a new study by RentCafe.

The study shows that while green-apartment growth has slowed slightly recently, it is still up 300 percent over the past 10 years.

Seattle has the most green buildings of any city

The Emerald City stays true to its colors with around 22% of all Seattle apartments being sustainable. With almost 20,000 green certified units in 94 residential buildings, Seattle has the largest number of green buildings of any city in the United States.

Portland right behind Seattle in green building

Portland, OR makes other cities green with envy with the second largest residential green share in the country after Seattle — about 20% of what has been built there since 2009 is sustainable. As of 2018, the city offers more than 11,500 green apartments in 75 sustainable residential buildings.

“When discussing ideas for a healthier environment, we cannot overlook the part green-certified buildings play among verifiable eco-friendly solutions that reduce carbon emissions and waste, while using less energy and water. As commercial buildings embrace more resource-efficient options, it was only a matter of time before green construction development would contribute to the multifamily sector next,” RentCafe says in the report.

“In order to see how sustainable the U.S. rental market really is, we analyzed the evolution of green construction over the past decade, between 2008 and 2018. By examining Yardi Matrix‘s national inventory, we considered buildings of 50+ units that have already achieved or are proposed for LEED certification, the most widely used international sustainable building rating system. The verification system introduced in 2000 by the Leadership in Energy and Environmental Design confirms whether a building has been developed under eco-conscious principles or not.”

Green apartment rental study highlights:

Ten years ago, only 5% of new apartments were green-certified, approx. 11,200. The number of sustainable rentals increased each year, peaking at 50,300 LEED-certified units in 2016, which accounted for 16% of the residential construction that year.
Since then, the number of sustainable units has dropped, seeing a 6% year-over-year decline in 2018, when about 15% of the apartments delivered had LEED certification. While the present is greener than the past, we cannot yet talk about a constant year-over-year increase in energy-efficient housing.
Which cities show significant eco-friendly development? Chicago leads the way with 20,600 green units delivered last year, followed closely by Seattle, with 19,800, which also boasts the largest number of LEED-certified buildings in the nation, 94.
Washington, D.C. follows up with 13,200 units. Its metro area, though, has the best offer for eco-conscious renters, with no more than 7 cities in the list of best ratios of people-to-green units.
Which is the greenest state? This title goes to California, which has the highest number of green residential units – 55,100. Texas and Washington also show significant green apartment development.

Sustainable building construction and certification went down in the past two years, naturally following the deceleration trend in overall apartment construction, but never below the 42,000 mark. For example, even the -9% year-over-year drop registered in 2017 translated into 45,600 new buildings that got a green certification by the end of the year.

Read the full report from RentCafe here.

Methodology:

Property and rent data was compiled from Yardi Matrix, our sister company that specializes in multifamily market research.
Property and rent data as of January 2019.
We consider “green buildings” multifamily projects that are LEED-certified or proposed for LEED certification.
LEED-certification was cross-checked with USGBC’s public records; updates may occur.
Study includes only large-scale apartment buildings of 50 units or more.
Average rent comparisons were performed in U.S. cities with at least 5 green multifamily buildings and 500 units.

1031 Exchange Investors Are Choosing DST Properties for Passive Real Estate Ownership

Jason Salmon

April 2, 2019

Kay Properties and 1031 and 1033 exchanges and eminent domain options details

1031 Exchange Basics

Per section 1031 of the Internal Revenue Code, real estate investors—under specific guidelines—may potentially defer their capital gains tax, depreciation recapture tax, and other taxes (each investor should consult their own CPA/attorney since every situation is unique). Upon the sale of investment real estate, the proceeds would go to a Qualified Intermediary, then the investor must purchase real estate of equal or greater value and has 45 days to “identify” replacement property with a concurrent 180-day timeline to close.

IRS/DSTs

Through what’s known as the Internal Revenue Service’s Revenue Ruling 2004-86, DSTs have been recognized as vehicles for investors looking for like-kind real estate as 1031 exchange replacement property with the ability to conduct another 1031 exchange upon the sale of the DST property.

Passive Real Estate Investing

For many real estate investors that have had their lives consumed with being pinned to real estate property management and/or asset management responsibilities, DSTs offer the opportunity to be passive and diversified—via the 1031 exchange into multiple DSTs/multiple geographic areas/multiple property types. Diversification does not guarantee profits or protect against losses.

As of the time of writing this article, Kay Properties has over 35 DST offerings available to our clients from over 20 companies that most would consider sophisticated real estate asset managers. As such, real estate sectors represented include, but are not limited to healthcare, multifamily, net-leased real estate (NNN), industrial/distribution, and office, student housing and self-storage.

It is important to note that these real estate management companies do not call for investors’ funds, then go out to buy properties. Rather, they’ll typically acquire the real estate first—thereby helping to reduce investor 1031 exchange closing risk—and the DST can be comprised of multiple properties or just a single asset.

DSTs come either with or without debt, so investors conducting a 1031 exchange may find the non-recourse financing already in place useful for the purposes of their transaction. Others might seek out debt-free DSTs as 1031 replacement property if they sold real estate that was unencumbered by debt and do not want the added risks of using financing with real estate investing.

The minimum investment size for 1031 exchange investors is typically $100,000, so in many cases investors can diversify into multiple DST offerings–depending on the size of their transaction.

Several factors have contributed to the industry’s growing popularity including the passive nature of the DST structure in conjunction with the real estate portfolio strategy (by investing with varied DST sponsor companies/asset-managers, locations and property types), and the ability to close quickly. Accredited investors find DSTs to be quite accessible compared to the search for high-quality real estate, negotiating with sellers and having to potentially put all their eggs in one basket. We’re pleased to be able to offer DSTs to our clients with the goal to streamline their 1031 exchange process..

About Kay Properties and Investments, LLC:

Kay Properties and Investments, LLC is a national Delaware Statutory Trust (DST) investment firm with offices in Los Angeles, San Diego, San Francisco, Seattle, New York City and Washington DC. Kay Properties team members collectively have over 114 years of real estate experience, are licensed in all 50 states, and have participated in over $9 billion of DST real estate. Our clients have the ability to participate in private, exclusively available, DST properties as well as those presented to the wider DST marketplace; with the exception of those that fail our due-diligence process. To learn more about Kay Properties please visit: www.kpi1031.com

This material does not constitute an offer to sell nor a solicitation of an offer to buy any security. Such offers can be made only by the confidential Private Placement Memorandum (the “Memorandum”). Please read the entire Memorandum paying special attention to the risk section prior investing. This email contains information that has been obtained from sources believed to be reliable. However, Kay Properties and Investments, LLC, WealthForge Securities, LLC and their representatives do not guarantee the accuracy and validity of the information herein. Investors should perform their own investigations before considering any investment. IRC Section 1031, IRC Section 1033 and IRC Section 721 are complex tax codes therefore you should consult your tax or legal professional for details regarding your situation. This material is not intended as tax or legal advice.

There are material risks associated with investing in real estate, Delaware Statutory Trust (DST) properties and real estate securities including illiquidity, tenant vacancies, general market conditions and competition, lack of operating history, interest rate risks, the risk of new supply coming to market and softening rental rates, general risks of owning/operating commercial and multifamily properties, short term leases associated with multi-family properties, financing risks, potential adverse tax consequences, general economic risks, development risks and long hold periods. There is a risk of loss of the entire investment principal. Past performance is not a guarantee of future results. Potential cash flow, potential returns and potential appreciation are not guaranteed. For an investor to qualify for any type of investment, there are both financial requirements and suitability requirements that must match specific objectives, goals and risk tolerances.

Securities offered through WealthForge Securities, LLC. Member FINRA/SIPC. Kay Properties and Investments, LLC and WealthForge Securities, LLC are separate entities. This email, including attachments, may include non-public, proprietary, confidential or legally privileged information. If you are not an intended recipient or an authorized agent of an intended recipient, you are hereby notified that any dissemination, distribution or copying of the information contained in or transmitted with this e-mail is unauthorized and strictly prohibited. If you have received this email in error, please notify the sender by replying to this message and permanently delete this e-mail, its attachments, and any copies of it immediately. You should not retain, copy or use this e-mail or any attachment for any purpose, nor disclose all or any part of the contents to any other person. For your protection, please do not transmit orders or instructions by email or include account numbers, social security numbers, credit card numbers, passwords, or other personal information.

Portland Rents Increased Significantly Over the Past Month

By The Editors

April 1, 2019

Portland Rents Increased Significantly Over the Past Month

Portland rents have increased 0.4% over the past month, but are down slightly by 0.3% in comparison to the same time last year, according to a new April report from Apartment List.

Currently, median rents in Portland stand at $1,120 for a one-bedroom apartment and $1,330 for a two-bedroom.

Second straight month for Portland rent increases

This is the second straight month that the city has seen rent increases after a decline in December of last year. Portland’s year-over-year rent growth leads the state average of -1.3%, but trails the national average of 0.9%.

Rents rising across cities in the Portland Metro

While rent decreases have been occurring in the city of Portland over the past year, cities in the rest of the metro are seeing the opposite trend.

Rents have risen in 9 of the largest 10 cities in the Portland metro for which Apartment List has data. Oregon as a whole logged rent growth of -1.3% over the past year.

Here’s a look at how rents compare across some of the largest cities in the metro.

Hillsboro is the most expensive of all Portland metro’s major cities, with a median two-bedroom rent of $2,030; of the 10 largest Oregon metro cities that the company has data for, 9 have seen rents rise year-over-year, with Springfield experiencing the fastest growth (+2.7%).
Beaverton, Vancouver, and Eugene have all experienced year-over-year growth above the state average (2.0%, 1.7%, and 1.3%, respectively).

Portland rents more affordable than many similar cities nationwide

As rents have fallen slightly in Portland, many comparable cities nationwide have seen prices increase, in some cases substantially. Portland is also more affordable than most other large cities across the country.

Portland’s median two-bedroom rent of $1,330 is above the national average of $1,170. Nationwide, rents have grown by 0.9% over the past year compared to the 0.3% decline in Portland.

While rents in Portland fell slightly over the past year, many cities nationwide saw increases, including Phoenix (+3.6%), Austin (+3.1%), and Las Vegas (+3.1%).

Renters will find more reasonable prices in Portland than most similar cities. For example, San Francisco has a median 2BR rent of $3,100, which is more than twice the price in Portland.

Eugene rents up slightly over the past month

Eugene rents have increased 0.7% over the past month, and are up slightly by 1.6% in comparison to the same time last year.

Currently, median rents in Eugene stand at $830 for a one-bedroom apartment and $1,100 for a two-bedroom.

This is the third straight month that the city has seen rent increases after a decline in December of last year. Eugene’s year-over-year rent growth leads the state average of 0.7%, as well as the national average of 1.3%.

Salem rents also up

Salem rents have increased 1.3% over the past month, and have increased slightly by 1.4% in comparison to the same time last year.

Currently, median rents in Salem stand at $840 for a one-bedroom apartment and $1,100 for a two-bedroom. This is the third straight month that the city has seen rent increases after a decline in December of last year. Salem’s year-over-year rent growth leads the state average of 0.7%, as well as the national average of 1.3%.

Corvallis rents remain flat

Corvallis rents have remained flat over the past month, however, they are up marginally by 0.7% year-over-year. Currently, median rents in Corvallis stand at $820 for a one-bedroom apartment and $1,020 for a two-bedroom. Corvallis’ year-over-year rent growth is level with the state average of 0.7%, but lags the national average of 1.3%.

HUD Charges Facebook With Fair Housing Discrimination Over Targeted Advertising Practices

By The Editors

March 28, 2019

Justice Department Sues Owner, Manager of Rental Properties for Sexual Harassment of Female Tenant

Facebook’s targeted advertising platform violates the Fair Housing Act by “encouraging, enabling, and causing” unlawful discrimination by restricting who can view housing ads, the U.S. Department of Housing and Urban Development (HUD) charged in a release.

“Facebook is discriminating against people based upon who they are and where they live,” HUD Secretary Ben Carson said in the release. “Using a computer to limit a person’s housing choices can be just as discriminatory as slamming a door in someone’s face.”

HUD has also alerted Twitter and Google that it is scrutinizing their practices for possible housing discrimination, a sign that more technology companies could be ensnared in a government probe of their lucrative demographic ad targeting tools, according to the Washington Post.

Read HUD’s Charge against Facebook.

Today’s action follows HUD’s investigation of a Secretary-initiated complaint filed on August 13, 2018. HUD alleges that Facebook unlawfully discriminates based on race, color, national origin, religion, familial status, sex, and disability by restricting who can view housing-related ads on Facebook’s platforms and across the internet. Further, HUD claims Facebook mines extensive data about its users and then uses those data to determine which of its users view housing-related ads based, in part, on these protected characteristics.

“Facebook is discriminating against people based upon who they are and where they live,” said HUD Secretary Ben Carson. “Using a computer to limit a person’s housing choices can be just as discriminatory as slamming a door in someone’s face.”

HUD General Counsel Paul Compton added in the release, “Even as we confront new technologies, the fair housing laws enacted over half a century ago remain clear—discrimination in housing-related advertising is against the law.

“Just because a process to deliver advertising is opaque and complex doesn’t mean that it exempts Facebook and others from our scrutiny and the law of the land. Fashioning appropriate remedies and the rules of the road for today’s technology as it impacts housing are a priority for HUD,” Compton said.

The Fair Housing Act prohibits discrimination in housing and in housing-related services, including online advertisements, based on race, color, national origin, religion, sex, disability, or familial status.

According to HUD, Facebook enabled advertisers to exclude people whom Facebook classified as parents, non-American-born, non-Christian, interested in accessibility, interested in Hispanic culture or a wide variety of other interests that closely align with the Fair Housing Act’s protected classes.

Showing ads only in certain neighborhoods

HUD is also charging that Facebook enabled advertisers to exclude people based upon their neighborhood by drawing a red line around those neighborhoods on a map. Facebook also allegedly gave advertisers the option of showing ads only to men or only to women.

HUD asserts that Facebook also uses the protected characteristics of people to determine who will view ads regardless of whether an advertiser wants to reach a broad or narrow audience. HUD claims Facebook combines data it collects about user attributes and behavior with data it obtains about user behavior on other websites and in the non-digital world.

Facebook then allegedly uses machine learning and other prediction techniques to classify and group users to project each user’s likely response to a given ad, and in doing so, may recreate groupings defined by their protected class.

By grouping users who have similar attributes and behaviors (unrelated to housing) and presuming a shared interest or disinterest in housing-related advertisements, Facebook’s mechanisms function just like an advertiser who intentionally targets or excludes users based on their protected class, HUD charges.

HUD seeks to address unresolved fair housing issues regarding Facebook’s advertising practices and to obtain appropriate relief for the harm Facebook caused and continues to cause.

In August 2018, the Department of Justice, joined by HUD, filed a statement of interest in the U.S. District Court for the Southern District of New York (SDNY) on behalf of a number of private litigants challenging Facebook’s advertising platform. Read SDNY’s statement of interest.

HUD’s charges will be heard by a United States Administrative Law Judge unless any party to the charge elects to have the case heard in federal district court. If an administrative law judge finds after a hearing that discrimination has occurred, he may award damages for harm caused by the discrimination. The judge may also order injunctive relief and other equitable relief, as well as payment of attorney fees. In addition, the judge may impose fines to vindicate the public interest. If the matter is decided in federal court, the judge may also award punitive damages.

Persons who believe they have experienced discrimination may file a complaint by contacting HUD’s Office of Fair Housing and Equal Opportunity at (800) 669-9777 (voice) or (800) 927-9275 (TTY).

Confused Over Service, Assistance Animals And Emotional Support Animals?

By The Editors

March 26, 2019

Apartment emotional support dog and nearby tenant with dog allergy

The Grace Hill training tip of the week focuses on the confusing issue and definitions of service animal, assistance animals and emotional support animals.

By Ellen Clark

You probably hear the terms service animal, assistance animal, and emotional support animal a lot. But do you really know what these terms mean? If not, you are not alone!

There are three laws that relate to rental housing and service and assistance animals:

- The Fair Housing Act (FHA)

- Section 504 of the Rehabilitation Act of 1973 (Section 504)

- The Americans with Disabilities Act (ADA).

The FHA applies to almost all rental housing. Among other things, it prohibits discrimination based on disability and requires housing providers to make reasonable accommodations for people with disabilities, such as making an exception to a no-pet policy or a breed restriction.

Housing that receives federal financial assistance from the U.S. Department of Housing and Urban Development (HUD) must also comply with Section 504. Like the FHA, Section 504 prohibits discrimination based on disability and requires housing providers to make reasonable accommodations for people with disabilities.

Whereas the FHA and Section 504 prohibit discrimination in housing, the ADA prohibits discrimination based on disability in all areas of public life, including schools, transportation, and all public and private places that are open to the public.

What does this mean for you in relation to support animals?

The ADA requires you to let service dogs accompany their owners in any area of the community that is open to the public, such as the leasing office.

These laws use different terms and definitions, which can be confusing.

The ADA uses the term “service animal” and defines it specifically as a dog trained to do work or perform tasks for people with disabilities.

The FHA and Section 504 use “assistance animal” as a broad term to describe any animal that works, provides assistance, or performs tasks for the benefit of a person with a disability or provides emotional support that alleviates one or more symptoms or effects of a person’s disability. Under the FHA and Section 504, service animals, emotional support animals, and companion animals are all considered assistance animals. An assistance animal may be any type of animal and is not required to have specific training.

The ADA uses the term “service animal” and defines it specifically as a dog that has been individually trained to do work or perform tasks for people with disabilities. Emotional support animals, companion animals and animals other than dogs (and sometimes miniature horses) are not considered service animals under the ADA.

Consider these important takeaways:

- You cannot deny a reasonable accommodation request because an animal does not meet the ADA definition of a service animal. Under the FHA and Section 504, reasonable accommodations must be granted for assistance animals, which include service animals, emotional support animals and companion animals.

- Residents making accommodation requests are not required to use specific terminology. If an animal works, assists, or performs tasks for the benefit of a person with a disability or provides emotional support that alleviates one or more symptoms or effects of a person’s disability, it doesn’t matter what term someone uses, it is an assistance animal under the FHA and Section 504.

ULTIMATE GUIDE TO ASSISTANCE ANIMALS IN RENTAL HOUSING

Recent training tips you may have missed:

How A No Pet Policy Can Be Discriminatory

Read Ellen’s full blog post here.

About the author:

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

Photo credit Bobbymn via istockphoto.com

A One-Size-Fits-All Approach by Governments To Multifamily Housing Does Not Work

By The Editors

March 26, 2019

A One-Size-Fits-All Approach by Governments To Multifamily Housing Does Not Work

Renting is now seen as a desirable housing choice, and government needs to help the multifamily industry with housing-finance reform to help create more affordable housing options in the future.

That was the message delivered recently by Susan Ansel, President and Chief Executive Officer, Gables Residential, to the Senate Committee on Banking, Housing and Urban Affairs.

Rental Housing Background – The Supply-Demand Imbalance

There has been a fundamental shift in our nation’s housing dynamics as changing demographics and lifestyle preferences have driven more people towards the convenience of renting, Ansel told the committee.

“This demand is fueled by several demographic factors. There are over 75 million people between 18 and 34 years old (traditionally the “prime renter” age group) who have recently entered or will soon be entering the housing market, primarily as renters.

“Similarly, nearly 93 million Americans aged 55 or older have the option of downsizing as their children leave the house, and many will choose the convenience of renting, and we are already seeing that. Over half (59.2 percent) of the net increase in renter households between 2007 and 2017 came from householders 55 years or older.

“Immigration accounts for a significant portion of apartment demand – over one in four (25.1%) apartment householders were born outside of the United States. Given these demographics, it is unsurprising that the apartment vacancy rate has remained at or below five percent for the past five years,” she told the committee.

Western states will have highest demand

The western United States, as well as states such as Texas, Florida and North Carolina, are expected to have the greatest need for new apartment housing through 2030, although all states will need more multifamily rental housing moving forward.

Across all markets, the supply of multifamily rental housing at a variety of price points will play a role in promoting economic growth, attracting and retaining talent and encouraging household stability for all American families.

32 percent of multifamily cost in local, state and federal regulation requirements

A recent study by NMHC and the National Association of Home Builders (NAHB) based on responses from a variety of multifamily developers throughout the country found that on average, 32 percent of multifamily development costs are attributable to the costs associated with complying with local, state, and federal regulations. In a quarter of the cases, that number can reach as high as 42.6 percent.

“The committee has an opportunity to examine what role the government-sponsored entities could provide in facilitating the reduction of these barriers and promoting the development of apartments for all income levels,” she said.

Principles of multifamily housing finance reform

Many factors influence the apartment industry’s health and its ability to meet the nation’s growing demand for rental housing, but the availability of consistently reliable and competitively priced capital is absolutely essential, according to the testimony before the committee.

“While our organizations remain agnostic regarding the source of our debt financing, we strongly believe capital must be consistently available across all markets and product types. In that spirit, NMHC and NAA urge the Committee to recognize the unique needs of the multifamily rental industry. We believe the goals of a reformed housing finance system should be to:

“Maintain an explicit, appropriately priced and paid-for federal guarantee for multifamily-backed mortgage securities available in all markets at all times;
“Recognize the inherent differences of the multifamily business from the single-family business;
“Promote private market competition;
“Protect taxpayers by keeping the concept of the enterprises’ multifamily first-loss risk sharing models;
“Retain the successful components of the existing multifamily programs in whatever succeeds them; and
“Avoid market disruptions during the transition to a new finance system.”

Recognize differences between multifamily and single-family businesses

“A one-size-fits-all solution will not work. The two sectors operate differently, have divergent performance records and require distinct reform solutions,” Ansel told the committee.

“The capital sources for multifamily are not as wide or as deep as those financing single-family and the loans themselves are not as easily commoditized. The GSEs’ (government sponsored enterprise) multifamily programs adhere to a business model that includes prudent underwriting standards, sound credit policy, effective third-party assessment procedures, risk-sharing and risk-retention strategies, effective loan portfolio management and standardized mortgage documentation and execution.

“Moreover, the financing process, mortgage instruments, legal framework, loan terms and requirements, origination, secondary market investors, underlying assets, business expertise and systems are all separate and unique from single-family home mortgage activities.

“We strongly recommend that any reform measure include a separate multifamily title. This separate title should not only address the successors to the GSEs’ multifamily programs, but also how the transition to that new system will be handled,” she said.

Summary

“As this committee continues its important work of assessing and crafting a reformed housing-finance model, Congress must understand that a one-size-fits-all approach will not work,” Ansel said.

“The meaningful differences between the single-family and multifamily sectors, both in how they operate and how they have performed, require different solutions to avoid putting at risk the 39 million Americans who rely on the apartment industry for their housing. In keeping with principles for housing-finance reform, the apartment industry asks that you focus your efforts on the importance of a government guarantee to ensure capital is available in all markets in all economic circumstances and the important role a government guarantee plays in the development and preservation of rental housing at all income levels in America today.

“The existing enterprise frameworks for protecting taxpayers and requiring private-capital participation should serve as a guide for any discussions on a reformed system. By retaining the successful elements of the current system and providing an explicit guarantee for multifamily debt, we believe this committee can succeed in ‘doing no harm’ to our industry, a goal expressed by members on both sides of the aisle and the administration,” she said.

Read the full statement here.
Susan Ansel is Chief Executive Officer and President of Gables Residential, a private real estate investment trust (REIT) focused on development, acquisition and management of institutional quality apartment communities throughout the United States. Ms. Ansel has been with Gables Residential since its Initial Public Offering and with its predecessor Trammell Crow Residential since 1987.

A Rental Property Pool Safety Guide

By The Editors

March 26, 2019

As the weather starts to get warmer, it may be time to look at a rental property pool safety guide and what you need to know as this week’s maintenance checkup from Keepe.

And, a pool can be a great feature to keep your rental units in demand and current tenants happy. But pool and hot-tub maintenance is crucial to keep up, not just for convenience, but for safety as well. So you need to learn what types of maintenance can keep you from having a pool-related accident on your property.

Liability and fencing

Landlords are required to maintain pools and pool fencing located on rental properties.

A landlord or property manager can be held liable for tenant and non-tenant injuries. Also, if a person drowns in the pool or slips nearby, you could be responsible for the accident.

Dirty water can affect pool usability, and result in sick children or pets if access to the pool is not monitored.

Also, residential swimming pools must also be surrounded by a suitable barrier. It can be a fence or pool cover to ensure safety in the pool area, especially for children. If there is no preventative barrier, you can be held responsible for an accident, such as an unsupervised child falling into the pool.

State- and county-specific laws may vary on the specifics of the guideline, so refer to your local code to ensure you are not violating any pool fence laws that apply to your property.

Rental Property Pool Safety Guide And Maintenance

Also, poorly maintained pools can make a property less desirable and lead to numerous types of accidents.

So, keep the pool clean and safe with these tips.

Weekly tasks:

Remove debris, both from the surface of the water and the bottom of the pool
Maintain chlorine levels or salt levels
Check the water level and adjust as needed
Check the filter pressure and backwash as needed

Monthly tasks:

Test for water hardness (calcium content), pH, and dissolved solids and add chemicals as needed
Clean the pool filter
Check the operation of the pump and motor

Additional tasks, as needed:

Update pool rules and safety changes
Learn local laws and regulations surrounding pool areas
Schedule tasks and making sure maintenance services are carried out
Monitor access, chemical storage and pool furniture storage
Access the need for lifeguards and manage that staff if needed
Monitor restroom, locker and shower facilities and ensure they are clean
Monitor rule enforcement and field any complaints and issues

You can do all these chores yourself, or you can hire a handyperson to do it for you. Regardless, landlords and property managers should have a regular check-in with the pool system to ensure daily operations aren’t neglected.

A Guide To 4 Types Of Flat Roof Systems

By The Editors

March 23, 2019

The maintenance checkup this week provided by Keepe focuses on a guide to flat roof systems for your rental property.

Flat roofs can offer a clean look to an apartment building and add efficient space that tenants like.

But remember roofing is the first line of defense towards any natural disasters. Without a sturdy roof, your apartment and residents may be left at risk. If you are installing a roof on a new building or considering a replacement on an existing property, use this guide to help decide if a flat roof design fits your budget, geography, and style.

Pros of flat roof systems

Aesthetic: Flat roofs offer a clean aesthetic to a building. If your property is in the city or overlooks a beautiful landscape, a flat roof can complement the environment. Flat roofs are also a characteristic of modern design, so if your property is contemporary, this might be a priority for you and your tenants.

Useable Space: A flat roof allows for more efficient use of space both inside and out. Unlike a pitched roof, a flat roof offers rooftop space can be used as a rooftop patio, flower garden or give you the option to install solar panels out of view.

Cost: A flat roof is significantly cheaper than a pitched roof since the surface area of a flat roof is less than that of a sloped roof. Although installation is cheaper, depending on the amount of rainfall your property’s area receives, the maintenance costs might override the initial short-term costs.

Maintenance: The flat roof design makes it easier to inspect and maintain the roof. Issues can be addressed easier, but don’t underestimate the importance of regular maintenance.

Improved Energy Efficiency: Flat roofs may be more energy efficient depending on the climate and what materials are used for the roofing system.

Cons of flat roof systems

Climate Limits: Low slope roofs have an increased tendency to collect water. If you live in a rainy or snowy climate, this option might not be ideal for your property.

Increased Maintenance: Flat roof drainage is not as effective as a pitched roof. Without regular inspection, drains can become clogged, leading to damage and leaks.

Lifespan: Standing water, debris and clogged drainage systems may shorten your roof’s lifespan to as short as 10 years if not monitored regularly. Many flat roof leaks are due to the lack of regular inspection, so be sure you have regular maintenance checks if you choose a flat roof for your property.

Types of flat roof systems

If you decide that flat roofing is right for you and your property, take the next step and consider which material is best. There are several flat roof options – here are the three most common kinds of flat roof systems.

No. 1 – BUR (Built-Up Roof)

This flat roof systems contains layers of waterproof membrane, tar and gravel to seal the flat roof surface. This flat roof system is a great affordable option, plus it has fire resistant properties that are a great safety factor multi-family property. Built-up roofs are also very sturdy and efficient insulators due to their several layers. BUR systems can last 15 – 20 years and lasts longer in warmer climates. When installing this roofing system, your property must be empty and free of tenants during installation. BUR systems cost between $5 and $7 per square foot.

No. 2 – PVC (Polyvinyl Chloride)

PVC is one of the most popular roofing materials used for flat roofs. Sheets of PVC are an attractive option for waterproof performance as well as pedestrian traffic coating. PVC allows you to turn a flat roof into a usable space – ideal for multi-family properties. This type of roofing is also easy to install and maintain. It typically costs between $5 and $8.50 per square foot.

No. 3 – EPDM Rubber (Ethylene Propylene Diene Monomer)

EPDM is made of synthetic rubber made of recycled materials. Roofs of EPDM are durable, inexpensive and have a longer lifespan than metal roofs. EPDM roofs require seaming which means that there are more chances for water to seep through seams and lead to damage. If roofs are spray-applied, then the chance of damage is significantly lower. EPDM installation costs between $4 and $8 per square foot.

No. 4 – Modified Bitumen

Bitumen roofing is another long lasting option for flat roofs. This is a single ply roofing system that is rolled onto the roof surface. These roofs can last at least 20 years due to their durability. They are ideal for extreme weather climates that have high winds, hail and heat. Bitumen roofs range from $3 – $6 per square foot.

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Rent Prices Rising Faster Than IT Wages Even in Tech Hubs

By The Editors

March 22, 2019

Rent Prices Rising Faster Than IT Wages Even in Tech Hubs

Most people think of tech jobs as providing nice high salaries, but in many tech hubs rent prices are rising even faster than the tech salaries may be able to support, according to new research.

“While there are clear advantages to living in or near a tech hub, more people relocating to these cities can put a certain pressure on the rental market, leading to rising rents,” says a new report from RentCafe.

And with a new generation of startups going public soon, things will get scorching in America’s hottest housing markets, even for renters with high-paying tech jobs, the report says.

“Over a 3-year period, rents grew faster than the wages of IT employees in 10 of the top 15 largest tech hubs, according to our latest analysis of US Census, BLS and Yardi Matrix data.” And here’s the real kicker: half of the top 10 emerging tech hubs are already seeing this trend as well.

Rent prices rising in tech hubs: Quick facts from the study

San Jose, the pride of Silicon Valley, has the largest share of IT jobs, 12%, and is one of two metros where wages of IT employees have decreased while rents soared. So much so that metro San Jose exhibits the largest gap between rent and wage growth.
Other established tech hubs where wages didn’t keep up with rents were Seattle, Atlanta and Boston.
Looking at up-and-coming metros, Charlotte ranks first with a 37.5% increase in the number of IT jobs between 2014 and 2017. And the rental market is already reacting: Prices here jumped by 7.6% since 2016, outpacing wages in terms of growth. The same scenario applies to Salt Lake City and Miami.
For those looking for more affordable emerging tech hubs, Madison and Nashville are go-to destinations, thanks to healthy growth rates in IT of 26% and 22% respectively. (Though relocating here means you have to be happy with a lower wage than in other areas.)
The ubiquitous San Francisco is again the exception that proves the rule. With the priciest apartments among all tech hubs ($3,084/month) and a strong 5.8% rent growth, The Golden City has seen its pool of IT employees increase by 19%. Moreover, it managed to boost tech salaries by 13.9%, the biggest wage growth seen by any tech hub in the top 10 over a 3-year period. However, with expected IPOs, these positive trends might turn dire for some social groups.

Seattle near the top

Seattle is a top metro tech hub, where the presence of both Microsoft and Amazon has certainly helped the metro reach its high 6.8% share of IT jobs.

Salaries in the metro remain considerably high at $115,500, but so are rents, which increased by 11.7% in a 3-year period, reaching an average of $1,825 in 2019.

See the full RentCafe report here.

Methodology:

RentCafé used the ‘Computer and Mathematical Occupations’ from The Bureau of Labor Statistic database for IT jobs-related data and took into consideration the 2014 and the 2017 data at metro level (most recent BLS data). The average wages in IT jobs were calculated based on the most current wage data from The Bureau of Labor Statistics (2017) adjusted for inflation to 2019 dollars and rounded to the nearest hundreds. The rent data were provided by Yardi Matrix, a RentCafé sister company focusing on apartment market intelligence and providing up-to-date information on large-scale multifamily properties of 50 units or more in over 130 U.S. markets.

Multifamily Growth Shows No Signs of Slowing, New Report Says

By The Editors

March 21, 2019

Multifamily Growth Shows No Signs of Slowing, New Report Says

The multifamily market is entering the time of year when rent growth typically occurs and there is no indication of any slowing in the market, according to Yardi Matrix’s latest report.

“Our latest multifamily national report presents a $2 rise in average U.S. rents in February and year-over-year growth of 3.6% as evidence of the sector’s continuing strength,” the company says in the report.

“Our February survey of 127 major U.S. real estate markets shows that demand, bolstered by a strong job market, shows no signs of slowing. Rents averaged $1,426 for the month.

“The market has strength to perform well for a while, even if the economy or other commercial real estate segments slow down,” the report says. “Occupancy rates have ticked down slightly, but absorption has been no problem.”

Phoenix takes over the top spot in rent growth

Rent growth has steadily increased since bottoming at 2.2% in the fall of 2017. The consistent growth is a sign of the strength of the sector’s fundamentals and an indication that the cycle has a ways to run.
Phoenix (8.0%) has taken over the top spot in the rankings, edging out the former leader, Las Vegas (7.9%). Sacramento, Atlanta and the Inland Empire also have year-over-year growth topping 5.0%. Portland, Kansas City and Houston are the only metros below 2.0% growth year-over-year.

Multifamily continues to perform well despite a long market run

Demand has shown no signs of slowing, as the job market has remained very strong, with unemployment below 4% and wage growth accelerating to more than 3%, the report says.

Metros with strong population gains and healthy job growth have benefited the most from the demand picture. Phoenix and Las Vegas are well above the rest, with growth dominated by Southwest and West Coast markets. Other top rent-growth markets—such as Sacramento and the Inland Empire—are near the top due to the combination of robust demand and weak supply growth.

With the marketing entering the rent growth phase, all signs point to this year being no different.

Home purchases increased as some millennials start buying single-family homes

It is notable that the homeownership rate has climbed over the past year to 64.8% in the fourth quarter of 2018, from 64.2% a year earlier.

The most significant change came from 35-to-44- year-olds, whose homeownership rose 220 basis points year-over-year to 61.1% in fourth quarter of 2018.

“What’s interesting about this is that it could portend social change heralded by some analysts, who have forecast that millennials were merely delaying— not shelving—marriage and family. In this scenario, older millennials will increasingly settle down in the suburbs, have children and seek to re-create the picket-fence lifestyle of their parents. If that’s correct, there could be a weakening of demand for urban apartments, since these households will give up the more amenity-rich cities and inner-ring suburbs in favor of better schools and more privacy.

“Could this be the start of a longer-term trend? Possibly. The data would have to change more significantly and for a longer period of time before we can make any pronouncements with certainty,” the report says.

View the full Yardi Matrix multifamily national report for February 2019 for additional detail and insight into 127 major markets.

Yardi Matrix is the industry’s most comprehensive business development and asset management tool for investment professionals, equity investors, lenders and property managers who underwrite and manage real estate investments in multifamily, industrial, office and self storage. Email matrix@yardi.com, 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.

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Rent prices rising in tech hubs: Quick facts from the study

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