February, 2016 - Boulder Area Rental Housing Association

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February, 2016 - Boulder Area Rental Housing Association
February 2016
The Pest Educator!! The Four Legged Kind of Pest!!
We are pleased to introduce Adam Witte as our February BARHA
Luncheon speaker.
Boulder Area Rental Housing Association
Dwellings
Adam was an “Exotic Forest Pest Educator” at Purdue University and is
now a local expert at Taddiken Tree (one of our terrific landscape
members).
We focus heavily on what goes on inside our
buildings, but we also need to be aware of our
landscape, a huge and valuable asset to every
property.
Come and learn the facts about the emerald ash
borer that is devastating trees everywhere and
other tree pests as well. Learn what to watch for
and treatment options available.
You are welcome to bring others from your
business to this important meeting, please just be
sure to rsvp for everyone by Monday, 5:00 prior to
the luncheon and be prepared to pay $30/person in cash or check at the
door.
Attention! New Over-Occupancy Ordinance Passed
A serious problem for us is that this ordinance drops the defenses that we were able to
use to prove that we were not complicit in or knowledgeable of the over-occupancy that
was occurring. Instead the new ordinance says that owners should know about overoccupancy – that they should be aware and responsible for what is happening on their
properties. This new ordinance makes it much easier for the city to issue summonses
for occupancy violations.
Current status – I have had many conversations with City officials and Council
members about the notice posting requirement. This part of the ordinance is under
discussion and I have been assured that no enforcement of these postings will occur
until we can come to a mutual understanding about this issue.
Your emails have been very helpful in getting the attention of the City and Council.
New rules as passed:
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Every ad for rental property must include the legal occupancy for that rental unit.
NOTE: This is the issue under discussion – agreement to not enforce at this time.
The info to be included in every ad is now in effect
Every lease must clearly state the legal occupancy and tenants should initial or sign
that line of the lease specifically and also sign also where occupancy is listed on the
Rental Use Disclosure Form.
(Continued on page 3)
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February 2016
Boulder Area Rental Housing Association
Boulder’s Interest on
Security Deposits Info
Note: The interest rate is determined
by the rate in effect at the time the
security deposit money is received.
It has NOTHING to do with when
the deposit is returned. Payment of
interest on security deposits is a legal
requirement in effect for all
properties in the City of Boulder.
Jan 1 –Dec 31, 2016
.16% interest is required to be paid
Jan 1-Dec 31, 2015
.16% interest is required to be paid
Jan 1—Dec 31, 2014
.17% interest is required to be paid
Jan 1—Dec 31, 2013
.25% interest is required to be paid
Jan 1-Dec 31, 2012:
.3% interest is required to be paid
Jan 1-Dec 31, 2011:
.35% interest is required to be paid
Jan 1-Dec 31, 2010:
.43% interest is required to be paid
Jan 1—Dec 31, 2009:
1.88% interest is required to be paid
Jan 1—Dec 31, 2008:
3.69% interest is required to be paid
Jan 1—Dec 31, 2007:
3.89% interest is required to be paid
Jan 1—Dec 31, 2006:
3.01% interest is required to be paid
Jan 1 – Dec 31, 2005:
1.85% interest required to be paid
April 1 – Dec 31, 2004:
1.08% interest required to be paid
Prior to April 1, 2004:
5.5% interest required to be paid
BARHA Facebook
Page:
www.facebook.com/
barhaonline
BARHA Website:
Sheila Says . . .
Vendor Trade Show: Reminder: Our Vendor Trade Show is
coming April 14. NO registrations will be accepted prior to March 1,
but wanted to be sure everyone has this date blocked off on your
calendar! It will be our April Luncheon meeting but longer than usual
– from about 11:30-2:30.
(Continued from page 1)
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BIG change – now every property that has two or more renters
must have a rental license. This includes properties that are owned
by student’s families and their student and others tenants live there.
No longer will a property be allowed to not have a rental license
because a member of the family who owns the property lives there.
The fines for over-occupancy have changed greatly. For properties
on the Hill, Goss Grove and Martin Acres – the fine for the first
violation is $500 – the second violation is $750 and the third is
$1000.
Fines for other parts of the city are: First violation - $150, second
$300 and third - $1000.
Another big change --- it is now up to the owner/manager of a
legally non-conforming property (one whose occupancy is
grandfathered at a higher rate than would be allowed today) to
prove to the city that this is a legal non-conforming property. The
city is not issuing any license for higher occupancy without the
owner proving the legal higher occupancy has been proven. For
many owners, this is going to be a difficult thing to prove and
could ultimately devalue the property. Also, any transfer of such a
property or any listing for sale or rent must declare the nonconforming status occupancy limit of the property.
I’ll keep you informed as discussions move forward. Thanks again to
each of you for sending the emails. Sheila
Urge your friends and
associates to join BARHA.
Our strength is in our numbers!
www.BARHAonline.org
Boulder Area Rental Housing Association
February 2016
3
Recruitment Underway for
Advisory Boards and
Commissions: Boulder County invites
residents to voice opinions, provide
guidance
Boulder County is seeking volunteers who would
like to voice their opinions and help guide decisions
on matters such as fire codes, aging, mosquito
control, and more.
The county is recruiting residents to serve on
advisory boards and commissions. Advisory boards
and commissions provide recommendations to the
Boulder County Commissioners and give residents
the opportunity to have their voices heard within
Boulder County government. The county, in turn,
benefits from this citizen input.
To view descriptions of the various boards and
commissions or to fill out an application, visit the
Advisory Boards and Commissions page of the
Boulder County website. The deadline to submit
applications is Friday, Feb. 12.
For more information, call the Boulder County
Commissioners’ Office at 303-441-3500.
Boulder’s Short-Term Rental
Ordinance in Effect,
Applications Available
The city's short-term rental ordinance took effect on
January 4, and allows Boulder homeowners to apply
for a license to rent their primary residence for less
than 30 days at a time. Application packets are
available online and must be submitted to the
Planning and Development Services Center at least
two weeks before a property can be rented or
advertised. More information is available on the
short-term rentals website.
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February 2016
Boulder Area Rental Housing Association
Boulder Area Rental Housing Association
February 2016
5
Welcome to BARHA!
New Owner Members:
Element Properties LLC
Scott Holton
1539 Pearl St. Boulder, CO 80302
303-752-8046
[email protected]
New Vendor Members:
Drain O Rooter
Melissa Blissett
P.O. Box 1448
Wheat Ridge CO 80034
Ph. 303-595-3000
Fax 303-432-3445
[email protected]
www.rainorooter.com
Drain O Rooter offers
comprehensive maintenance, installation, drain
cleaning, and repairs for all your sewer needs.
Platinum Renovations and Consulting
Mark Hohlen
730 Umatilla St
Denver, CO 80204
303-424-0818
[email protected]
www.Platinumreno.com
Platinum Renovations and Consulting specializes in
multi-family unit renovations. They have completed
an average of 1300 units per year across the front
range. They are general contractors with a class B
license capable of capital improvement projects,
commercial, tenant finish and ground up projects.
They also have a wholesale cabinet division.
Your Advertisement
Could be Here!!
Contact Sheila at 303.494.9048
for advertising rates.
6
February 2016
Boulder Area Rental Housing Association
Tenants File More and More
Small Claims Lawsuits: You
Need to Know Your Options
Thank you to Mark Tschetter of Tschetter Hamrick
Sulzer Law Firm for the use of this article.
A tenant has sued you in small claims court. What
do you do? You have three options. First, you can
defend yourself. Second, you can consult with us
on how to defend the case, and then handle the case
yourself. Third, you can retain us to defend the case
for you. Often you’ll need to decide quickly
because of time constraints. If you want us to
represent you in small claims court, a Notice of
Representation has to be filed at least seven days
prior to the trial. This rule is absolute and the
Courts will not make any exceptions. If you contact
us less than seven days prior to trial (the court
date), the Court will not let us represent you. In
most counties, the Notice of Representation
requires your original signature and it must be
manually filed, i.e. someone must take the
document to the court, along with payment of fees
and file with the clerk’s office. For these reasons, it
is advised that if you want attorney representation
the sooner you let us know the better.
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You should consider several factors in determining
whether to involve us in a small claims case. How
much money is your tenant or former tenant suing
you for? If the tenant is seeking $3,500 or more,
you should strongly consider having an attorney
represent you because the case can be defended for
less than this amount. On the other hand, if the
tenant is seeking $500, the cost of defense
(attorneys’ fees) will be higher than the amount
sought. Basic economics dictate that you shouldn’t
pay more in attorney fees than the amount that the
tenant is claiming in their small claims case, or any
case for that matter. No set dollar amount
automatically dictates that you should have
attorney representation. However, generally, the
more damages a tenant seeks, the more you should
lean to involving us. We can’t guarantee the court
will award attorneys’ fees or that you will be able
to collect them, but we do try to get an award of
(Continued on page 9)
Boulder Area Rental Housing Association
February 2016
7
Michelle Welsh Agency
3002 Bluff St., Ste. 300
Boulder, CO 80301
Office: 303.444.0990
[email protected]
Proudly serving the Boulder and Denver Metro area for over 26 years
Business * Home * Auto * Life
Apartment Complexes * Renter’s Policies * Suppliers Coverage
American Family Mutual Insurance Company and its Subsidiaries,
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Home Office – Madison, WI 53783 07497 11/12
8 February 2016
Boulder Area Rental Housing Association
8
policies. Because our participation
is limited in these counties,
retaining us to consult is likely to
get you the same result for
substantially less money. Even if a
small claims court will let us fully
participate, often an hour of
consultation with us will meet your
The county in which you’re being
needs. If the case isn’t complicated,
sued is another factor that you
you may just need to be briefed on
should consider. Some counties do
the law, and some advice about
not allow attorneys to fully
presenting the case. The
represent their clients in a small
consultation is billed hourly, and
claims case, and thus you lose
provides you with face-to-face
many of the benefits of having an
attorney time for reviewing all of
attorney represent you. For
your documents and equipping you
example, in the past, the Jefferson
with the legal expertise to defend
County Small Claims Magistrate
your case. This option is excellent
did not allow us to cross-examine
for the smaller dollar amount cases
any of the witnesses nor were we
because your attorneys’ fees will be
allowed to ask basic questions. The
nominal. Overall, this option is also
Court allowed us to participate only
appropriate for clients who want to
in an advisory role. The court
handle the case themselves, or for
insisted that our client present the
courts that severely limit the
case. We were not allowed to
advantages of having an attorney.
speak. When a court adopts and
enforces these types of Small
Frequently, small claims cases
Claims Court policies to discourage involve tenant files that have
attorney representation on small
already been placed with a
claims cases, you are better off if
collection agency. If you are sued
you not represented by an attorney. in small claims court, you should
Policies vary by county depending always first determine if the file is
on the magistrate or judge currently at a collection agency. If a small
assigned to the Small Claims Court. claims case involves a collection
When contacted about a small
agency file, you should promptly
claims case, we will advise you
contact the collection agency and
about current policies in the county determine if the collection agency
where the tenant filed the case.
is going to handle the small claims
case. Most collection agencies will
You will incur significantly less in
not handle a small claims trial. If
attorneys’ fees if you elect to
the file has been placed with a
consult with us about a small claims
collection agency, and the
matter. The consultation involves
collection agency isn’t going to
reviewing the file, meeting with
handle the small claims case, you
you to discuss applicable law,
should recall the file from the
strategy and key legal arguments.
collection agency. Regardless of
The consultation option makes
what the collection agency tells
more economic sense when a
you, you have this right. If an
county has strict small claims
(Continued from page 7)
attorneys’ fees added to the
principal judgment in small claims
cases that we handle. The amount
of money at stake aside, some
clients feel more comfortable if we
handle the case.
Boulder Area Rental Housing Association
agency won’t defend the small
claims case and gives you a hard
time about recalling the file, you
should look for a new collection
agency. You should always recall
the file in writing, and issue clear
instructions to the collection agency
to cease any efforts to collect the
debt. You should order the
collection agency to cease
collecting the debt because the debt
will now become a counterclaim in
the small claims case. You should
bring the tenant’s balance as a
counterclaim in the small claims
case to resolve all legal issues with
the former tenant in one case.
Asserting a counterclaim in a small
claims case also gives you leverage
to get the tenant to settle, and may
ultimately reduce any judgment
awarded in favor of the tenant.
Regardless of attorney involvement,
you should always determine
whether to object to the small
claims magistrate. Magistrates
preside over small claims courts in
most counties, unless an Objection
to Magistrate is filed. Pursuant to
Colorado statute, you have the right
to have any case heard by a judge.
Similar to the Notice of
Representation, you must file an
Objection to the Magistrate at least
seven days prior to trial. Whether to
object to the magistrate is a key
decision. Pro-tenant bias is a clear
reason to object. Unfortunately,
some small claims magistrates are
notoriously known for being protenant. Our clients have regaled us
with countless tales of small claims
magistrates disregarding the law to
somehow find for the tenant. One
story clearly comes to mind; the
Landlord sent the tenant a security
(Continued on page 10)
February 2016
9
called, and then have us only
expertise and personal knowledge
deposit disposition within the sixty- contribute twenty minutes of value. of the facts. The landscape guy
day requirement of the lease.
should testify about the cost of the
Because small claims court is a
However, the magistrate found that
lawn replacement and provide his
gamble with no reliable or
since the lease had gone month-toexpert opinion that the lawn needed
predictable results, you should
month the Landlord was required to
to be replaced. Before and after
always seriously evaluate
send the disposition within thirty
pictures carry significant weight,
settlement, especially on lower
days, even though the lease stated
i.e. the beautiful green lawn when
dollar cases. You should always
that the original lease provisions
the tenants moved in versus the
consider settlement in these cases
were still in effect. Small Claims
brown lawn scattered with weeds
even if the tenant is totally wrong.
magistrates change frequently. If
when the tenants moved out. Some
If you waste $500 of your time to
you are unfamiliar with the
courts won’t award damages based
prevent paying a tenant $200, this
reputation of a particular magistrate
on estimates because you’re not out
is a net loss. Your time, and your
in a jurisdiction, contact us.
-of-pocket yet. Receipts and
staff’s time are valuable. The
invoices with proof of payment are
Ted Nugent would love small
golden advantage of settling is
always the strongest and safest
claims because it’s usually a free- certainty. You’ll have no idea how
evidence of actual out-of-pocket
for-all. The tenant tells their story. the small claims roulette will turn
damages.
You tell your story. Almost all
out. If you settle, at least you know
documents are admitted into
what you get. If you can get the
Be realistic about your damages. If
evidence. The only evidence rule
tenant to drop his case in exchange you overreach, even on some
enforced in small claims is
for you dropping your collection
damages, you can substantially hurt
relevance, however, there is no
action against him, you might be
your credibility on all damages.
guarantee that a small claims court better off in some cases. You
Small claims court is unpredictable.
will enforce even this rule, or keep should always consider dollar
The small claims magistrate or
out irrelevant evidence. Similar to amount and collectability in
judge ruling against you is much
magistrates, judges hearing small
deciding to settle a small claims
more predictable if you overreach.
claims cases are unpredictable at
case. Lower dollar amounts owed
If your carpet is 10 years old, you
best. The law is clear. Even if a
by a tenant or non-collectability
won’t get full replacement value
judge hears a small claims case, the (regardless of amount owed) are
(likely nothing) even if the tenant
small claims’ rules of evidence
both strong indicators that you
caused huge stains. If the tenant’s
apply. Again, these rules are
should settle the small claims case. dog or cat peed all over the carpet
extremely informal. However,
If you settle a small claims case on and destroyed it, you should always
some judges take the position that your own, don’t hesitate to contact preserve and bring a small carpet
when you request a judge, the
us if you need help in writing the
sample to bolster your photos.
county court rules of evidence
settlement.
Similarly, if your tenant lived in the
apply. If the county court rules
property for four years, the Court is
If you are going to trial on your
apply, you need to meet technical
not likely to award painting
own (Han Solo), you need to
legal requirements to get evidence
damages even if the tenant’s kids
evaluate your evidence and the
admitted. Finally, keep in mind that
used the wall as their personal
strongest way to present your
some small claims courts set very
canvas. Small claims courts rarely
evidence. Even in small claims
limited and strict time frames for
award damages for your time and
court, third party (e.g. vendor)
cases. For example, the tenant gets
effort (labor). Thus, you’re not
witnesses always carry more weight
ten minutes, and you get ten
going to get damages for the time
than you do. For example, the
minutes to respond. Another reason
your son spent watering the lawn to
contractor who replaced the lawn
to go with the consultation option.
try to save it, especially if you
will, generally, have more
It makes no sense to pay us two
didn’t pay him. In our experience,
credibility than you. If a witness is
hours of drive time, an hour to sit
you will almost never get the full
going to testify, you should always
around waiting for the case to be
take full advantage of the witness’s
(Continued on page 11)
(Continued from page 9)
10
February 2016
Boulder Area Rental Housing Association
(Continued from page 10)
amount you are asking for from a former tenant
in small claims court. Keep this in mind when
evaluating your settlement position.
Small claims court is similar to Judge Judy or
the People’s court with Judge Marilyn Milian.
It’s not the Microsoft Anti-Trust Trial. Each side
tells their story. Both sides show the court their
documentary or physical evidence. Depending
on the Court, the judge or magistrate will allow
each party to ask the other party questions. Some
Courts will only allow a narrative from each
side, with the magistrate or judge asking all of
the questions. After hearing each side and
looking at each side’s documents, the Court
determines the winner. This is the whole
shooting match.
You can increase your chances of winning in
small claims court in a number of ways. First,
promptly evaluate your options. Don’t wait until
the last minute to decide if you want an attorney
involved, or to object to the magistrate. If you
delay, you are likely to blow the deadlines for
exercising these options. Obviously, don’t miss
the court date if you are handling yourself. This
happens more often than you would think. If you
do miss the court date, contact us immediately.
No guarantees, but we can try to get you another
chance. Second, be realistic in evaluating
whether it’s worth fighting in the first place, and
what you are likely to win if you prevail. Your
time is valuable. If the case doesn’t involve a lot
of money or if the tenant isn’t collectable, the
winning move is to settle. Realistically evaluate
your damages when deciding to settle. Third, if
you are going to fight, make sure that you don’t
bring a knife to a gunfight. Make sure that you
have the necessary documents and witnesses to
present to the Court. Always remember that we
are here to assist you in evaluating your small
claims problems, but you have to contact us
before you lose the right to get us involved.
Thank you to Mark Tschetter of Tschetter
Hamrick Sulzer Law Firm for the use of this
article.
Boulder Area Rental Housing Association
February 2016
11
The Rookie Landlording Mistake Most New Investors Make
So, you just bought a rental house
or small multifamily property.
Congratulations! Now what? Well,
you need to probably fill that
vacant unit with a nice family who
is going to pay top dollar on time
each month, never complain
unnecessarily, and treat your
property with respect.
So you place an ad on the various
sites or in the newspaper, or maybe
you put up a sign in the yard.
Quickly you begin receiving phone
calls, and they typically look like
this:
Landlord: Hello?
Prospect: Hi, I’m calling about
your property at 123 Main Street.
Landlord: Yes, it’s still available.
Prospect: Great! Can I schedule a
time to see it?
Landlord: Sure thing. How does
tomorrow at 6 p.m. work for you?
Prospect: That would be great. I’ll
see you then!
Landlord: Sounds good. Bye.
Did you notice the rookie
mistake in the conversation above?
Here’s what it is:
They scheduled a time to show the
property!
Wait, huh? I thought the goal was
to rent the property out quickly.
when I first got started. Maybe it’s
because I don’t like sitting on the
phone, or maybe it’s because I trust
people too much. But the fact is, I
wasted a lot of time that should
have been spent finding more real
estate deals or enjoying time with
my family.
You see, for every ten
appointments we made:
Four would be “no-shows.” They
wouldn’t call to cancel, they
wouldn’t reschedule. They just
would not show up. I would be
sitting there, twiddling my
thumbs, looking like an idiot for
twenty minutes hoping they were
just late.
Three would show up and clearly
could never qualify. No job,
terrible credit, seventeen people
in the family for a 2-bedroom
apartment, etc. I would have to
explain to these people our
requirements and try to make it
clear that it wouldn’t work out.
Two will take an application and
never return it, probably because
they read all the information
required and realize they will
never qualify. Or perhaps they
hated the neighborhood and just
wanted to be polite.
One will show up, take an
application, and return it with the
appropriate application fee.
It is, but here’s the problem: You’ll
waste SO much time when you
don’t prequalify the tenant.
In other words, for every ten
appointments I was setting, only
Each showing takes, let’s say, one
10% ever gave me a decent
hour of your day, including travel
applicant. And even of those who
and prep time. And most of them
applied, half the time they wouldn’t
will never rent your property!
work out either. My funnel was
And don’t think I’m just picking on broken.
everyone else. I made this same
Of course, your percentages might
rookie mistake for several years
be slightly different, but the fact
12
February 2016
remains: Many, if not most, of the
people whose calls you receive will
never rent your property. So why
waste all your time showing units
to prospects who won’t work out?
The Solution: Prescreening
Rather than setting up an
appointment with each tenant, I
would suggest asking a series of
questions of the caller to get a
better idea for whether or not
they’ll qualify. These questions
don’t need to be asked in a formal,
serious manner but rather as part of
the casual conversation.
When prescreening, I like to make
sure I let the prospect know of my
minimum qualifying standards.
These standards include:
 Income must be three times the
monthly rent or greater
 No prior evictions or felonies
 Good references from previous
landlords
 600+ credit score
I try to let the tenant know of these
standards early in the conversation,
as many tenants will simply hang
up the phone (often mid-sentence)
when the words “no prior
evictions” or “good references” are
spoken. Good! I just saved myself
the trouble of showing a unit to
someone who would never qualify!
So rather than the conversation that
you just read between the landlord
and the prospect, here’s how our
typical conversations go:
Landlord: Hello, thank you for
calling Open Door Properties!
How can I help you?
Prospect: Yes, I’m calling about
your property at 123 Main Street.
Boulder Area Rental Housing Association
(Continued on page 13)
(Continued from page 12)
Landlord: Yes, it is still available. What can I tell
you about the property?
Prospect: Uh… I guess, how much is it?
Landlord: The rent is normally $800 a month for
that unit, but right now we’re having a move-in
special, and it’s only $745 for those who sign a 12month lease and meet our minimum qualifying
standards. Do you have a moment so I can explain
what those are?
Prospect: Um… sure.
Landlord: Well, we require that the tenant’s income
be three times the monthly rent. We also do a
background check to make sure there are no
evictions or felonies on the tenant’s background and
require that the tenant has a credit score of at least
600. Finally, we will call all previous landlords to
make sure you have a great rental history. Does all
that sound good to you?
CLICK.
Dun… dun… dun… another one bites the dust!
(And an hour of my time is now saved!)
Ninety percent of those who would just waste my
time will take no more than a three-minute phone
call. That’s what I call efficiency!
More Things to Discuss on the Phone
Of course, not all applicants hang up at this point.
For those who understand and agree that those
qualifying standards will work, I will then go into
more detail about the property itself. Of course, all
the information is in the advertisement, but I will
still explain the following points in detail:
 The location, in detail
 The total move-in amount needed
 The number of bedrooms and bathrooms
 The location of the property
 The timeframe we are looking at to get it rented
 Any quirky aspects about the property (no
garage, very small rooms, etc.)
It’s important to cover these issues, as many tenants
will decide that the property is not right based on
this information, saving you both a lot of time.
For example, a few weeks ago we rented out a unit
to some college-aged guys. Although we explained
everything in detail to them about the property, when
(Continued on page 16)
Boulder Area Rental Housing Association
Background Screening
Online Rental Applications and Lease Agreements Now Available!
Available Services
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Credit Reports
National Criminal
Searches
Reference Verifications
Eviction Records
Employment Verifications
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Sex Offender Reports
Civil Record Searches
Employment Screening
Business Reports
Custom Reports
Visit our website for
access to free rental and
employment forms!
303-420-1212
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February 2016
13
23rd
14
February 2016
Boulder Area Rental Housing Association
Boulder Area Rental Housing Association
February 2016
15
(Continued from page 13)
it came time to move in, the gentlemen showed
up to the lease signing with no money. “We
have to pay the rent AND the deposit? We
thought that the deposit was optional?!” They
left angry and never did move into the unit, and
we lost hours of time with these jokers. Maybe
we were not clear enough on this, or maybe they
were just idiots. I don’t know. But this kind of
thing happens a lot, and wasted time for my
team is lost dollars from my bank account.
If They Still Want to See the Property
After all this is said and done and the tenant still
wants to see the property, we are happy to show
it to them! BUT… not yet.
Typically, we ask the tenant to drive by the
property first and check it out if they have not
yet, knowing that people are particular about
neighborhoods. If they want to get a personal
tour, they can call back and set up an
appointment.
After the tenant has driven by and STILL wants
to see inside the house, then and only then will
we schedule a showing. But after all this, we
still encounter no-shows fairly often so we have
begun doing group showings. Yes, that means
we schedule multiple appointments at the same
time (or within ten minutes of each other)
to save time and increase both efficiency and
competition among the applicants.
When my wife and I first became landlords, we
spent hours and hours filling a vacant unit.
Today, it can usually be done with just one
single appointment and less than an hour of
work.
Contact Megan Percy or
Nicole Mansour at
303.666.0500
16
February 2016
Of course, at the end of the day, you’ll still
encounter tenants who will waste your time.
However, by following the tips in this post,
you’ll save yourself hours of work with every
vacancy you encounter, which means more
money in your pocket and less stress in your
life.
Boulder Area Rental Housing Association
Local Real Estate Transactions
The buyer of Boulder's Canterwood Apartments is a
mystery no more: Resource America (NASDAQ:
REXI), an asset management company based in
Philadelphia, paid $65M for the 216-unit complex, the
third highest price per unit deal this year.
Filings with Boulder County on Tuesday listed RRE
Canterwood Holdings LLC as the buyer, and Resource
Residential, the property management arm of Resource
Real Estate, announced Friday on its website that it had
taken over management of the Canterwood property.
The deal is one of several local, record-setting
transactions in Colorado this year.
In September, Longmont's Ironhorse Apartments sold
for $50 million, seven months after completion, setting
the per-unit record for a suburban, garden-style
complex at $227,272 per apartment. (Garden-style
refers to complexes in which each unit has an exterior
entrance. Canterwood is also a garden-style, one of the
fastest-growing categories in multi-family.)
Superior's Horizon at Rock Creek sold in April for $255
million — the largest apartment complex transaction in
state history.
Both the Longmont and Superior properties sold to
multi-billion dollar real estate investment companies
with dozens of complexes across the country.
Resource's real estate arm owns two other properties in
Colorado — SkyView Apartment Homes in
Westminster and Verona Apartment Homes in Littleton
— and 60 other complexes throughout the U.S.,
according to their website.
"It feels like we have a lot of big money coming into
Colorado over what we did, say, 20 years ago," said
Stan Urban, Boulder branch manager for Land Title
Guarantee, although he cautioned that he doesn't have
the data to support that perception.
One thing is clear, though, both to Urban and
everybody else who is paying attention: Prices for, and
interest in, apartment complexes are going up.
The Colorado Real Estate Journal reported in October
that year-to-date sales volume is approaching the $4
billion mark, which would exceed 2014's record $3.6
billion in sales — despite a dearth in new construction.
Boulder Area Rental Housing Association
February 2016
17
Property Managers’ Money Saving Strategies for 2016
As one year ends and another begins, property managers throughout the nation are becoming more aware of
strategies to cut costs and increase profits. Here are some timely tips and ideas.
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Revisit your most time-consuming operations to discover how technology can improve efficiencies. Speak
to both your inside and outside technology field reps for helpful ideas.
Re-examine your business plan. When you entered the world of property management you had goals to
reach and aspirations to fulfill. Now’s the time to assess how you’re doing.
Find motivated mentors (see point #9). If you want to be more professionally successful and financially
efficient, find an experienced mentor in a related field and ask for their advice.
Make sure your operating and cash accounts are accruing some interest. Even in today’s no-interest
banking environment you can find interest-bearing accounts. An example is Discover Bank’s online
saving account which currently pays nearly 1% with no holding periods.
Eliminate unneeded services. Do you really want cable TV in your office? Are your current cell and
telecommunications providers offering you the best rates? Have you priced alternatives like Consumer
Cellular versus one of the “Big 4” carriers?
If you are leasing your offices, now is an auspicious time to renegotiate the terms of the lease. It may be
worthwhile to consider buying your office space. You might save money by being your own landlord.
Whether this makes fiduciary sense or not brings me to the next point.
Schedule an “away-from-their-office-and-yours” breakfast or lunch with your CPA or tax advisor.
Mention your financial goals for the year ahead and ask for suggestions and tax-saving ideas.
If it’s time to refurbish your office avoid the temptation to buy retail. As businesses come and go there are
many motivated sellers of “almost new” furniture and equipment at a fraction of the original retail cost.
Look for clearances and watch classified ads like Craigslist.
Speaking of business mentors, connect with SCORE. It is the nation’s largest network of free, expert
business mentors. Go to score.org where you can receive customized advice on how to make your business
more profitable and cost-effective. It’s a remarkable free network of help.
Don’t forget that you’re in one of today’s best businesses. Property management and the rental income
property market are growing like never before. Look for signs like the following: The Blackrock Group, a
publicly-owned investment manager (symbol BX) recently announced the purchase of 32 multi-family
properties from Greystar Real Estate Partners for $2 billion. Why? The answers include the locations of
this acquisition comprising 10,399 rental units in states like California, Florida, New York, and
Washington. Also, the lucrative
rental housing market is
thriving. Following the deal,
Blackstone will own a total of over
57,000 apartment units. The wellknown investment firm has been on
an apartment-buying spree as it
looks to profit from rising rents.
You’re in the right business at the right
time. Manage it carefully, implement
ways to save money, lower operating
costs and make your money work hard
for you. The results will be very
rewarding.
18
February 2016
Boulder Area Rental Housing Association
"I've been doing this business for 25 years, and I've
never seen supply this tight in my lifetime," Urban
said, predicting that the low supply would continue
to result in record prices being paid for apartment
complexes.
"If there's no supply out there, the prices have got to
go up."
Capri Capital, based in Chicago, sold Canterwood
for an unnamed client. The owner of the property is
listed with Boulder County as TRM-Meredith Park
Corp., also in Chicago. The Colorado Secretary of
State's office lists Terry McKay, formerly of Capri
Capital, as the head of that company.
Source: Boulder Daily Camera – December. 23, 2015 by
Shay Castle
6 Listing Photos Renters
Need to See
Instead of curb appeal, today's renters are looking
for a home with "pixel appeal." Pull potential
renters in to your listings by giving them these 6
listing photos those potential renters need to see.
1. Know Your Primary (Or Best) Shot:
According to Michael Seiler, founder and director
of the Institute for Behavioral and Experimental
Real Estate at Old Dominion University at Norfolk,
VA, home shoppers spent 20 seconds on the first
photo in a listing.
Since people form attachments to homes based on
that first impression, a strong external or internal
photo offers the opportunity to invite someone to
their new home.
2. Keep The Porch Light On:
Welcome them home to get that powerful exterior
shot that renters instantly connect by leaving the
porch light on. Photograph the home 30 minutes to
1 hour before sunset with the interior lights on. It
gives the home a welcoming, familiar feel.
3. Room Relationships:
When taking your interior photographs, keep in
(Continued on page 21)
Boulder Area Rental Housing Association
February 2016
19
We offer the following services to help you accomplish your real estate investment goals:
 Providing complete property management solutions for all of Boulder, Longmont and the surrounding areas!
 We service all types of properties including single family homes, single condos or apartments, multi-family units and apartment
complexes.
 Tailored management services for those owners who prefer to be hands on or for those who prefer to let go of the wheel.
 Meeting with you to assess your goals in owning and renting out your real estate investment
 Review your property’s current state and determine a priority list for repairs and cosmetic updating in order to procure the highest
monthly rental amount and highest quality tenant
 Financial Management—providing monthly financial reports, detailing income & expenses, as well as end of year accounting
 In-house Maintenance to provide rapid response to any necessary repairs and keep maintenance cost down
 Project management of major projects/repairs from our network of local contractors.
 Our fee is 10% of the collected rent for the 1st property, 9% for two properties and 8% for 3 properties. We do offer incentives for
more than 3 rental units and everything is negotiable!
New Client Special! First 2 months of management fees waived for signing a 12 month management agreement!
20
February 2016
Boulder Area Rental Housing Association
(Continued from page 19)
mind that the primary objective is to convey the
feel of the home. Show potential tenants how the
rooms relate to each other by including more
than one room in an image. The master bedroom
and bathroom, the kitchen dining room, and the
entryway into the living room are all rooms that
can be photographed together (based on floor
plan, of course).
4. Hit The Highlights:
On AHRN.com, you are able to upload 10
photos make them count! In addition to a great
exterior shot, highlight the major living areas,
the backyard and any special details like a pool,
deck, or a great view.
S. Showcase the Details:
In each shot, make an interesting feature the
focal point. For example, gorgeous bay windows
could be the hero of a living room photo. High
quality cabinetry or stone counters offer an
interesting detail in the kitchen.
6. Straight Lines:
While basic, this is an essential detail in real
estate photography- straight lines should be
straight!
Any tilt in the camera creates an "off' appearance
and can result in distorted proportions. And be
sure to boost your curb appeal before you take
those photos!
Source: Thanks to Mr. Landlord for the use of this
article.
Check Out BARHA Website:
www.BARHAonline.org
Find:
 The calendar of events
 A list of our vendor members
 The Codes of Conduct
 Current topics of interest
 And much more!
Boulder Area Rental Housing Association
February 2016
21
The Roof & Gutter Guys
We specialize in leak repairs that extend the
life of your existing roofing and gutter system.
Leak repairs, full roof replacement, wind damage,
corrective repairs, and preventative maintenance.
Gutter replacement, repair, and cleaning.
Detailed roof inspections with quick quotes
so you can start repairs immediately.
303-227-9100 / [email protected]
ESTABLISHED IN 1995
22
February 2016
Boulder Area Rental Housing Association
Boulder Area
Rental Housing Association
Board of Directors 2015-2016
President
Barbara Guthrie, Sunnyside Property Mgmt.
303.442.7773
Treasurer
Reminder . . .Mark Your Calendar
February, 2016
Thursday, February 4 – Board of Director’s
meeting at The Egg & I Restaurant in Basemar
Shopping Center, Boulder from 8:30-10:15.
Past President
Thursday, February 11– Luncheon Meeting at the
Avalon, 6185 Arapahoe, Boulder, CO 80303. Program Landscape
Care and Protection
Angela VanderMeyden – Housing Helpers
303-545-6000
March, 2016
Betty Konecne, Hometowne Management
303.499.6537
Cindy Angell, Buffalo Security
303.494.0707
Thursday, March 3 – Board of Director’s Meeting at the The Egg
& I Restaurant in Basemar Shopping Center, Boulder, from 8:3010:15.
Rick Burger, Burger Property Management
303.665.6075
Thursday, March 10 –Luncheon Meeting at the Avalon, 6185
Arapahoe, Boulder, CO 80303. Program to be announced.
Loretta Dorman, LRD Real Estate
303.449.6716
April, 2016
Board Members
Todd Greenberg. Fashion Carpet & Tile
303.473.0107
Greg Mollenkopf, Mollenkopf Property Mgmt
720.810.4626
Thursday, April 7 – Board of Director’s Meeting at the The Egg &
I Restaurant in Basemar Shopping Center, Boulder, from 8:3010:15.
Amber Naea-Wirt, Abbotts Fire and Flood
303.975.5000
Thursday, April 14 –Vendor Trade Show – 11:00-3:30 at the
Avalon, 6185 Arapahoe, Boulder, CO 80303. Registration for this
sold out event will begin in March.
Rita Nowak, Coronado Apartments
303.499.3851
May, 2016
Kary Ohan
303.589.4389
Jessica Ramer, CapRateCapital.com
303.494.2777
Ryan Schneider, Fowler Property Mgmt
303.443.6064
Thursday, May 5 – Board of Director’s Meeting at the The Egg &
I Restaurant in Basemar Shopping Center, Boulder, from 8:3010:15.
Thursday, May 12 –Luncheon Meeting at the Avalon, 6185
Arapahoe, Boulder, CO 80303. Program to be announced. This is
the last luncheon of this fiscal year.
Alisha Sill, Colorado Realty
and Property Management
303.665.7368
Heather Smart, Techem Water Services
720.420.4841
Grove Stafford, Rocky Mountain Inspections
720.563.9190
Vic Sulzer , Tschetter Hamrick Sulzer
303.699.3484
Tom Tadewald, Western Disposal
303.444.2037
Go to the BARHA “Yellow-Pages”!!!!
When you need a product or service, use the Vendor “Yellow
Pages” in this newsletter.
Our Vendors want and value your business and all have signed
the BARHA Code of Conduct.
Be sure to tell them you too are a BARHA member when you
call them!!!
Acting Secretary
Shanae Pugh, 303.579.6430
BARHA Executive Director; Sheila Horton
P. 303.494.9048 F. 303.449.7028;
E-mail: [email protected]
Boulder Area Rental Housing Association
February 2016
23
An Organization for Rental Housing Owners, Managers & Suppliers
www.BARHAonline.org
P.O. Box 17606, Boulder, CO 80308 303.494.9048
Boulder Area Rental
Housing Association
Inside This
Issue . . .
Over-Occupancy
Ordinance
Page 1
Navigating Small
Claims Court
Page 7
Rookie Landlording
Mistakes
Page 12