Feedback from the membership regarding these issues, or any other issue not mentioned here, is welcomed and encouraged. Member participation in local government affairs is vital to letting government know RHA and rental property owners/operators are an important group in the State that provides a vital service to our communities. Contact Sean at 206-905-0609 · smartin@rha-ps.com. Seattle: Criminal records & employment Councilmember Bruce Harrell is proposing legislation which could prohibit the denial of employment applications based on previous criminal convictions. An updated draft of legislation received was made available mid-March and RHA, along with other employers and groups, is continuing to have meetings with Councilmember Harrell and others to express our displeasure with the legislation. As currently written the legislation targets a July 1, 2013 effective date and would:

· “Ban the box“ to get rid of “Have you been convicted“ checkboxes on applications for employment.

· Prohibit adverse action from being taken against an applicant solely on the basis of an employee's or appli cant's arrest record.

· Prohibit a criminal background check from being run until “after the employer has completed an initial screening of applications or resumes to eliminate unqualified applicants.“

· Allowing denial of application for reason of criminal conviction only when that conviction gives the employer a “legitimate business reason“ for taking such action.

This legislation is likely a precursor to similar legislation targeted at rental housing in 2013, and landlords should take note of the issue and contact council to oppose it.

This item was previously discussed in 2011 and lumped protections for individuals with criminal records together in both housing and employment scenarios. Under that proposal a housing provider and/or employer would not have been permitted to refuse an applicant based on criminal history, with exceptions given to violent crimes. Several public forums were held, and RHA met with councilmembers and Seattle's Office for Civil Rights (SOCR) to voice our opposition. Status: Discussion on-going.

Seattle: Rental housing inspections A new, mini-stakeholder process started Thursday, March 14th conducted by DPD to determine how to structure registration fees and determine costs. DPD is estimating it will need to collect between $9-10 million in fees every five years in order to fund the program. Ideas for types of registration include: · Base fee + per unit fee · Flat per unit fee · Flat per property fee · Tiered fees based on number of units owned This group is scheduled to meet two more times thru-early April to hash out an equitable way to structure this part of the ordinance. After that the next group will meet to determine what inspections will actually look for, and how to structure a tiered points system for determining whether a unit passes or fails inspection.

Compliance deadlines for registration of rental properties are: · July 1, 2014 · 10+ unit properties · January 1, 2015 · 5 ­ 9 unit properties · December 31, 2016 · 1 ­ 4 unit properties Seattle: Unreinforced masonry policy commission A draft of the Unreinforced Masonry Policy Committee recommendations report is now available online. The URM Policy Committee awaits the outcomes of a benefits-cost analysis being performed by CollinsWoerman and Gibson Economics. That study is anticipated to be completed in June 2013. The Policy Committee will then reconvene to consider the outcomes of the analysis and confirm or amend their recommendations.

The issue of seismic retrofits to unreinforced masonry buildings in the City of Seattle was last discussed in 2008, and ultimately tabled due to lack of funding for the costs associated with seismic retrofits. RHA is participating on the stakeholder committee, which kicked off with its first meeting on March 8, 2012, and continued meeting through October 2012 to discuss all aspects of a new program that would address safety concerns with approximately 820 unreinforced masonry buildings in the City. Items for discussion include: thresholds for retrofits, financing options, timeline for compliance, incentives, and enforcement. Pierce County No new issues at time of press. No new issues at time of press. Napavine: Utility billing accounts shifting to landlords?

In late-March city staff presented a report to Council offering two solutions aimed at eliminating the number of delinquent utility accounts in the city. One option was to increase the water deposit to $400, from $200.
The second option was to place all accounts in the homeowner's nameonly, making them the solely responsible party. Council decided to put together a focus group with landlords, council, and staff, and bring more information back to a future council meeting.

Bellingham: Council re-opening discussion of rental housing inspections Bellingham Councilmember Jack Weiss announced at the City's January 28th council meeting that he would like to re-open discussions of exploring a mandatory licensing and inspections program in the City of Bellingham. Seattle's adoption of a mandatory inspections program was endorsed by Bellingham's Planning Committee as a model to pursue.

A February 25th Planning Committee meeting was to feature brief discussion of the issue, but no formal legislation exists at present as interested parties have just begun discussing points of contention.

RHA has reached out to Council, as well as local landlords, to provide complete information on the issue and will pursue alternative solutions that do not punish good landlords for the sake of catching a few bad landlords. u

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Thank you for coming. So, are these truly shocking accusations true? Are you both on steroids?
According to our Apartment Development Report, developers will add 5,600 units in the Belltown/Downtown/South Lake Union market in the next three years. That's a 70% increase in the number of 20-unit and larger market rate apartments. When you look at long term development trends, this growth rate looks shocking.

And Ballard will more than double its size in the next three years. Developers expect to open 2,000 units. In the past 16 years they only opened fewer than 600 units there. These are just two of many examples of neighborhoods that appear to be on steroids.

Suburban to urban A fundamental shift taking place. More consumers want to live in urban areas. In the last big building boom in the late 1980s almost 90% of the development was in the suburbs. Suburban development makes up only 44% of the activity now. That's why these urban development trends look frightening. We haven't seen this before, at least not in these neighborhoods. But we have seen it elsewhere.
What can history tell us?

Juanita grew by 160% in the three years from 1985 to 1987. Vacancies climbed steadily as property managers dealt with all the new supply. But then the market adjusted and vacancies fell again, and fell quickly. Let's look at another neighborhood. The number of apartments in Redmond almost doubled in just three years. And the stock almost tripled in six years.

That's a dramatic increase. As a result, vacancies shot up quickly. But then then they fell, almost as quickly. The bottom line: Supply trends are important. And they can look scary sometimes, especially when viewed in isolation. But supply is just one factor. You need to look at other factors that will determine the health of a neighborhood, like the shift from suburban to urban we just talked about.

Important considerations We also need to look at everything that impacts demand, including the impact of jobs, GenY consumers, and the exploding Geezer population. Plus, at least right now, apartment development is providing the lion's share of all housing development in this market. That's unusual, but condominium development is virtually nonexistent and single family development is well below its normal level.

And some of our previous articles over the past couple of years looked at other trends that have a huge impact on apartment demand. One major trend includes the shift from a McMansion mentality to an iHome mentality. Another important trend is the evolution of consumer goals. We discussed it in a tongue-incheek way by showing how housing consumer goals have shifted away from the suburban home with a white picket fence, seen in shows in the 1950s and 60s like Leave it to Beaver, towards an active urban lifestyle in an apartment like television portrays in shows like Seinfeld, Friends, the Big Bang Theory, and others.

Dupre + Scott Apartment Advisors, Seattle WA (http://www.duprescott.com) · The company provides research on apartment market and investment trends in the Puget Sound region. © 2013 by Dupre + Scott. All rights reserved.

The news is reporting an improving housing market after six years with an average nationwide decline of 34%, it seems home prices have bottomed out and are beginning to rise. In my opinion, however, the real attraction of an investment in rental property is not the possibility that the property will appreciate in value. The real attraction is in the cash flow it will provide far into the future. The more cash flow you have, the more financially secure you will be.

The best way for your rental property to achieve steady, dependable cash flow is by having quality tenants. The tenant is what creates a positive return or is what can create the hardship in owning rental property. If you are a seasoned investor, you've probably rented to a tenant who was less than desirable. This tenant might have caused problems for you by not paying rent on time, not taking care of the property or by not respecting their neighbors. My husband Craig and I have two rules when looking for a new tenant.

First, don't rush in reaction to an applicant's deadlines.

Second, don't rent to someone because you feel sorry for them. Those are two guaranteed ways of making a mistake when choosing a tenant.

Taking a smart businesslike approach in selecting tenants is a must to protecting your investment and saving you money and aggravation. Here are some other tips to follow to find a quality tenant.

· A well maintained property is more likely to attract a prospective tenant who wants to keep it that way. If you expect your tenant to care for the property then you need to give them a well-cared for unit. Inform all prospective tenants about their responsibility in taking care of the property before they submit their application.
· It is now the law that if you collect a tenant screening fee, you must let the prospect know up front what the tenant screening criteria* will be.

Use this to your advantage. Ensure you have thoughtfully put together your screening criteria and don't deviate from that standard. · Let the prospects know that you are looking for someone who can follow the rules of the property and ensure they receive the written rules of the property upfront. If you have quiet hours on your property then it is in your best interest to let the prospect know.

· Have a no-nonsense approach when dealing with prospective tenants.

This lets the prospect know this is a business to you and you are not looking for a friend. Also, bad tenants typically look for a landlord they can walk all over. Don't be afraid to sound stern right from the start.

· Ensure the new tenant sees you documenting the condition of the rental unit. Have a very thorough inspection report and support it with documenting photos. Include the photos with the report. Also, be sure to document both the inside and outside of the property. The more details you provide, the more you will be able to recover from any damages caused by the tenant.

Decent tenants will not have a problem with your policies and will not feel intimidated. Be picky and have high standards. It is very difficult and often expensive to deal with a problem tenant. Making the wrong choice will reduce not only your enjoyment of being a landlord, but also your cash flow. Protect your investment--find quality tenants.

* Tenant Screening Criteria List: RHA provides a Criteria for Tenant Selection form that can be used as a reference. Members have free access to this form from the Member's Only section of the website (http://www.RHAwa.
org). If you have further questions you can contact RHA's Tenant Screening Department (206) 283-0816.
Julie Johnson is currently the Director of the Residential Group at Phillips Real Estate Services, which offers leasing, sales and property management services to 1-10 unit rental properties. With her husband, they own and manage 12 rental units. Julie is the host of the “Rental Property Coach“ Radio Show on 1590 AM, Saturday mornings at 9:00. She has taught at TRENDS Rental Housing Management Conference and Tradeshow, teaches several different seminars at RHA and hosts a local supper club for landlords. By Julie Johnson of RHA - Puget Sound.

After the beautiful summer and fall that we had this year here in the Northwest, forecasters are predicting an unusually harsh winter. If their predictions are correct, it will drastically increase the possibilities of frozen water pipes followed by bursting pipes and flooding.

As property owners and managers it's very important to plan ahead and follow the necessary steps to prevent the devastating damage that cold weather can bring.

If you have a tenant in the house, basic education on this subject is imperative so that damage, the resulting financial losses and inconvenience can be drastically reduced.

Please follow suggestions below...Do this BeFOre a major freeze occurs.

 Keep indoor temperatures at least 60 degrees. This is also important when you are out of town

When  out of town make arrange ments with your neighbors or family members to check the house often, when weather is below 32 degrees.

Have them check the pipes and furnace or other heat source as well.

Encourage your tenants to advise you or your property manager about their absences.

Water hoses must be disconnected from outside faucets. Those faucets must be covered with foam protec tors or wrapped in newspaper and then plastic.

At least one inside faucet should drip lukewarm water so both hot and cold water pipes are involved.

Pipes under kitchen and bathrooms sinks are very vulnerable, so keep cabinet doors slightly open. Warm air from the inside of the house will enter and prevent pipes from freezing.

Don't forget to pay your power bill to avoid shut-off.

In the event that pipes freeze, you can thaw an inside faucet with a good hair dryer and plenty of hot water.* * When using electrical appliances near water always use extreme caution.

Water should be shut off at the main valve. If the break is a hot water pipe the valve on a top of the water tank should be closed.

Make sure that you know the loca tion of all water shut-off valves.

Make sure that the breaker to the hot water tank is turned off.

In case of heavy snowfall, remove snow from the roof as well as shrubs to avoid breakage.

NOTES: A pipe does not necessarily burst the first time it freezes. It may take several freezes and thaws before damage occurs. One more important point: If you have a yard sprinkle system you must have it winterized by a professional company.

Following these basic guidelines will drastically diminish danger of winter damage to your home.

The law applies to all residential properties, including apartment buildings and single-family homes, as well as hotels, motels and other spaces intended for inhabitance that contain carbon monoxide sources or are situated within structures that contain one or more sources of this poisonous gas. CO sources may include, but are not limited to, heaters, fireplaces, furnaces, appliances or cooking sources using coal, wood, petroleum products, or other fuels emitting CO as a by-product of combustion. Attached garages with doors, ductwork or ventilation shafts connected to a living space also are sources of CO. Under the new law, owners of residential occupancies are required to install, repair, maintain and test CO devices.

The January deadline for these new requirements is of particular importance, as more CO deaths occur during the winter months than any other time of year, due in part to increased use of fuel-burning sources to heat rooms, according to the National Fire Protection Association (NFPA).

CO laws coupled with education and awareness will help reduce the number of accidental poisonings. Known as the “silent killer,“ CO poisoning is the number one cause of accidental poisoning in the United States--responsible for an average of 450 deaths and more than 20,000 emergency room visits each year. CO poisoning is notoriously difficult to diagnose--often until it's too late.

The symptoms mimic those of many other illnesses and include nausea, headaches, dizziness, weakness, chest pain and vomiting. In more severe poisoning cases, people may experience disorientation or unconsciousness, or suffer long-term neurological disabilities, cardiorespiratory failure or death.

Under the new law, CO alarms must be located outside of each separate sleeping area, in the immediate vicinity of the bedroom. However, safety experts, like the NFPA, recommend that CO alarms also be installed on each level of the home, including the basement.  Local building code officials will verify compliance with the law when approving permit requests for new construction and most alterations, repairs or additions to dwellings.

The NFPA also recommends replacing alarms once they reach the end of the manufacturer's suggested useful life or expiration date--an average of five to seven years. For building owners who already have alarms but may not know their age or condition, this new legislation serves as a reminder to update their properties accordingly creating added Protection for Tenants and Homeowners:

The following is an overview of the new regulations:

• CO alarms must be located outside of each separate sleeping area, in the immediate vicinity of bedrooms.
• Where a tenancy exists, the tenant must maintain the CO alarms as specified by the manufacturer, including the replacement of batteries.
  

Single-station CO alarms must be listed as complying with ANSI/ UL 2034 and be installed and maintained in accordance with NFPA 720 and the manufacturer's instructions.

Exemptions:

-Owner-occupied single-family residences legally occupied before July 26, 2009 are exempt from these requirements. However, for any owner-occupied single-family residence that is sold on or after July 26, 2009, the seller must equip the residence with carbon monox ide alarms in accordance with the requirements of the state building code before the buyer or any other person may legally occupy the resi dence following such sale.

-Individual sleeping units in R-1 and R-2 occupancies, which include col lege dormitories, hotels, boarding houses and residential treatment facility occupancies, that do not themselves contain a fuel-burning appliance, fuel-burning fireplace or an attached garage are exempt from these requirements, provided the following conditions are met: ¾ The unit is not adjacent to any room which contains a fuel burning appliance, fuel-burning fireplace or an attached garage.

-¾ The unit is not connected by duct work or ventilation shafts to any room containing a fuel-burning appliance, fuel-burning fireplace or an attached garage.

-¾ The building is provided with a common area CO alarm system.

As the most trusted and recognized brand name in home safety, First Alert is committed to educating the public about the dangers of fire and CO poisoning. For additional information on carbon monoxide safety, visit http:// http://www.firstalert.com/. For more detail on Washington's CO alarm requirements, as well as how to detect and what to do in case of CO poisoning, visit the Washington State Department of Health website, at http:// http://www.doh.wa.gov/YouandYourFamily/ HomeSafety/Contaminants/CarbonMonoxide.aspx. u

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http://www.firstalert.com
http://www.doh.wa.gov/youandyourfamily/homesafety/contaminants/carbonmonoxide.aspx

Information provided by The Rental Housing Association of Puget Sound.

Mandatory inspections of rental housing properties will also begin in 2014 on a random basis from the pool of registered properties, and all rental properties will be inspected at least once over a 10-year period.

While RHA successfully lobbied the Council and DPD for many technical corrections, changes to definition and procedural changes within the legislation, we do not agree that a mandatory inspections program of all properties is necessary or warranted. Thankfully, many of those changes lobbied for by RHA will ensure the program is easily compre hendible and transparent in how it will function. Of those amendments supported by RHA to be included in the legislation--that which is likely of greatest significance to rental housing owners--is a rule which will allow lender inspections, of comparable scope to those required by the City, to be used as a substitute for a mandatory third-party inspection.

RHA was also able to have a full 10 -year rev iew of the program included within the legislation to ensure that the inspections program is reevaluated and its future necessity is weighed.

RHA actively worked this issue for quite literally, years, and met with City Council, City staff, DPD, and tenant groups to find some sources of relief for the overwhelming majority of good rental properties which are going to be subjected to the burdensome new program being created. Unfortunately, perhaps the most crucial details of the legislation, the costs of registration and inspections, and what exactly the stan dards of inspections will be, are not detailed within the legislation and are being left up to Director's rule within the City's Department of Planning and Development. Final details on those two issues are likely to be unresolved until the summer of 2013.

Deadlines for registration are:

· July 1, 2014

· All properties with 10+ units must be registered

· January 1, 2015 · All properties with 5­9 units must be registered

· December 31, 2016

· All properties with 1­4 units must be registered

The new program will require:

· Registration must be renewed every five years.

· Inspections of at least 10% of all rental units will be required in any given year. · Any property subject to inspection must be inspected at least once every ten years, and on an annual basis 10% of all properties last inspected over five years ago will be re-inspected. Inspections cannot be more frequent than once every five years.
· For properties with 20 or less unit, inspections of no fewer than two units.
· For properties of more than 20 units, inspections of at least 15% of units, up to a maximum of 50 units.
· Require that inspectors verify a rental unit meets minimum require ment standards of the City's housing code related to floor area, sanitation, structural, sheltering, maintenance, heating, ventilation, electrical, emergency escape, garbage removal, extermination, keys and locks, gar bage cans, and smoke detectors."

*This article was written by Sean Martin of the Rental Housing Association of Puget Sound.