November 08 Ciaa Newsletter

“Our Profit is Your Success”

November 2008

An Affiliate Of

2008 TRADE SHOW “WOW!”…”ONE OF THE BEST INDUSTRY TRADE SHOWS!”…”I DO THIRTY TRADE SHOWS A YEAR; THUMBS UP!”…”THANK YOU SO MUCH!”…”I FOUND A FEW NEW VENDORS TODAY!” We started the day with a terrific seminar presented by national speaker and educator Cynthiann King. “Team Building for Busy People” was attended by dozens of property management professional and vendors. Cynthiann’s presentation got everyone involved with interactive activities. It’s a good bet that Cynthiann will be back next year with more exciting education. It was a very energizing seminar and the CIAA Board of Directors was thrilled to be able to offer this at no cost to our members! Then, at 3:00, the Second Annual CIAA Vendor Trade Show “Tropical Trade WindsWins” blew into Des Moines and left behind balloons, prizes, new business for vendors and property management professionals excited about their new vendors. Thirty vendors of various trades hosted over 100 attendees at the event held at the Airport Holiday Inn’s poolside atrium. Property managers, maintenance technicians, leasing consultants, management executives and property owners browsed and chatted with companies offering services in information technology, apartment cleaning, furniture rentals, carpet and vinyl sales, applicant screening, advertising, a bedbug-sniffing dog and many more! Ryan Ekern from Olde English Village, the Peterson Companies won the grand prize this year – a $1,500 travel voucher! Okay Ryan, are you heading off to a relaxing tropical retreat? Disneyworld? Alaska? Congratulations, and have a great time! Michelle Ogden of Simply Clean won “Best Booth” and will proudly display the traveling plaque in her office. If you didn’t get to join us this year for the Trade Show, we hope to see you at the Third Annual CIAA Trade Show in Fall 2009!

Inside Your Newsletter: Committee Updates 2008 CIAA Board Members Letter from the President Trade Show Highlights New Members

Announcements, Promotions, Postings Vendor Spotlight - Apartment Finder Vendor Listings November meeting registration

Winter Social registrations: Vendor Sponsorship and Maintenance Olympics Article: “Prospects with Foreclosures: Caution” NAA Connect

Upcoming Events General Membership Meeting Wednesday, November 12 Airport Holiday Inn, Noon Guest Speaker: Mike Triplett of The Hultman Company, CIAA’s Lobbyist Registration attached Vendor Council Thursday, November 20 Chicken Coop, Noon Winter Social and Maintenance Olympics December 10th Airport Holiday Inn Registrations attached

November 4

Committee Announcements Vendor Council Maintenance Olympics/Vendors Holiday Social Wednesday, December 10 ~ 6 - 9 pm ~ Airport Holiday Inn Watch your favorite Maintenance teams compete for the gold! Refreshments, food, games, and prizes! Vendor Council Meeting, November 20 ~ Chicken Coop, Noon Topics: Vendor Social/Maintenance Olympics/sponsorship opportunities (see attached form) 2008 Trade Show: Share your thoughts and successes

Education Committee Coming March 2009 - Certified Apartment Maintenance Technician This is a five day course. Exact dates, times and cost TBD. Look for a registration form in the December newsletter. Click on the logo to the left for information from NAA’s website.

Legislative Committee Iowa Supreme Court Ruling Affects Apartments The Iowa Supreme Court recently ruled that apartments statewide should continue to be taxed as commercial property even though condominium owners enjoy a significantly lower residential tax rate. The decision follows a legal dispute between the Iowa Department of Revenue and a regional property firm, which contended that the current tax structure is a violation of the state constitution's "equal protection" clause that bans discrimination. The Iowa Supreme Court rejected this argument, partly because condo owners have greater rights and responsibilities with their property. Justice David Baker wrote: "We determine that any similarities between apartments and condominiums are insufficient to consider them 'similarly situated' for equal protection analysis. Although condominiums may be marketed and leased like apartments and are similar in structural design and in the rules applied to residents, unlike apartments, each condominium unit is treated as a separate real estate parcel and could be marketed as a single-family unit."

2008 Board Members and Committees President

Rick Koontz, Signature Place

Vendor Council Co-Chairs

Public Relations Committee Chair

Tom Newton, Gorman Roofing Mary Spain, Apartment Finder

Jennifer O’Brien Konior, TAB Properties

Melissa Johnson, Olde English Village

Education Committee Chair

Trade Show Committee Chairs

Vice President

Mary Spain, Apartment Finder

Andrea Larson, Olde English Village Meredith Goodwin, Triple Crown Mary Spain, Apartment Finder

Past President

Jennifer O’Brien Konior, TAB Properties

Treasurer Lori Young, BH Management Secretary

Heather Benton, Bridlewood Apartments Page 2

Legislative Committee Chair Rick Koontz, Signature Place Membership Committee Chair Position currently vacant

Interested in the Membership Committee? Contact a board member for details! Website: www.ciaahq.org

Letter from the President Politics as Usual In a huge blow to the Iowa Multi-family industry, the Iowa Supreme Court upheld a lower court ruling allowing condominiums that are rented exactly the same as apartments to be taxed at a much lower rate. Even though the condominiums are advertised as apartments with leases as opposed to an owned home, the Supreme Court decided that the dissimilar treatment between apartments and condominiums does not violate constitutional equal protection clauses. Unfortunately for renters and owners of multi-family properties that weren’t able to convert to condominiums before loopholes were closed, we are still at a monetary disadvantage in being able to provide quality, affordable housing and still be able to remain in business. With the shrinking economy and looming recession, now more than ever it is important to stabilize the disparate tax system. The economy affects renters as well as homeowners in their ability to pay for their housing needs. Dale Hyman, an administrator for the revenue department said “if it’s going to be addressed, it should be done by the Legislature.” Well, we’re going there. Again. This will be the main focus of the Legislative Committee in 2009. There is still no end to the rollbacks for homeowners, and only in select cases, renters. What is sad to me is that when owners of multi-family properties try to fight for these lower real estate taxes, uninformed citizens look at them as greedy landlords who just want to make more money off the backs of their residents, when in fact, those same people would eventually see a decrease in the rent they pay. Many people choose to rent their homes, and they should not be subjected to additional costs related to an unfair tax system. It will take a concerted effort from all of us to make this happen. We aren’t going to give up until the Legislature brings the fair change in the system. This issue has been in the forefront since 2005, and I just believe the complacency on the part of the Legislature has gone on too long and it’s time for change. Rick Koontz, CIAA President Signature Place Apartments

Trade Show - A Day of Fun and Education

Cynthiann King’s “Team Building for Busy People” was a big hit with all who attended “Best Booth” winner Michelle Ogden

Rick Koontz, CIAA President presents the Grand Prize $1,500 vacation to Ryan Ekern from Olde English Village

Click here to see more pictures from the Trade Show!

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Welcome New Members Welcome to our new Members and Vendor Members. It is a honor to have you join our growing organization.

New Property Members Crowne Point Apartments

New Vendor Members Carpet Source Coinmach Corporation

Announcements, Positions and Postings Cort Furniture welcomes Amanda Berg as its newest Account Executive servicing Iowa and Nebraska.

specialized training to detect bed bugs.

Meet A.Q. Allstate Pest Control’s newest employee, Abby Janssen. Abby comes to us with 800 hours of

Hubbell Apartment Living would like to welcome Heather Benton as Onsite Manager at Rosemont Place Apartments, Wendy Sherrill as Process Specialist, and Joshua Huber & Anthony Weaver as Maintenance Technicians. Lindsey Ritland has been promoted to Onsite Manager at Somerset Apartments. Congratulations Lindsey!

TMG Management has added Crowne Point in West Des Moines to its portfolio, and welcomes manager Carla Hornsby to the TMG Management team.

TAB Properties recently acquired High Pointe in Norwalk, and welcomes long-time High Pointe maintenance technician, Austin Pettit to the TAB team

Signature Place welcomes Steven Wilson and Justin Leinen to their maintenance team.

ONSITE MANAGERS, LEASING Hubbell Apartment Living is currently seeking motivated, high energy people to join our onsite management and leasing teams. Please visit our website at www.hubbellrealty.com to view current openings and apply online. Please send new hires, promotions, and job postings to [email protected] for inclusion in the newsletter Page 4

Email: [email protected]

Vendor Spotlight The Apartment Finder The Apartment Finder is the preferred choice of apartment shoppers, and now the most recognized media brand in the Industry. We offer an integrated media solution to your advertising needs with both print and web advertising. You constantly get the best of “online and on land” distribution. It is widely known that shoppers use print advertising and on line advertising evenly, so why not have it all at a price you can afford? With over 114 print publications advertising our website daily, driving traffic to our website, we are not surprised to be the most recognized and used media source. Our ads are full of the richest content available to you as an advertiser, driving more qualified traffic to your office, and creating business opportunities for you daily. What is really amazing is that you can buy the integrated package most often at a less expensive price than online ads alone. If renters are looking for apartments an average of 24 days, let’s make sure they bump into your community as many times as possible, in as many media avenues as possible. To learn more about how you can spend less per lease at your community contact Mary Spain, Senior Publisher at 515-327-0606, or email [email protected].

Need a Vendor? Call a Member First! A+ Lawn & Landscape

Hard Tops of Des Moines

Abendroth & Russell, P.C.

ICS Advanced Technologies

A.Q. Allstate Pest Control

Jetz Service Co.

Stew Hansen’s Dodge City-Jeep

American Family Insurance

Johnstone Supply

Stitzell Electric Supply Co.

Lawns Plus

Sudzy’s Carpet Cleaning

Apartment Finder

Marsden Building Maintenance

Tenant Data

Big Green Umbrella Media

Nationwide Office Care

Waste Connections

Bragg Handywork

On the Spot Carpet & Tile

Waste Management

Carpet Pro - Baker Interiors

Performance Leasing

Wayout Consulting Services

Carpet Source

Phillips Floors

Coinmach Corporation

Qwest

Cort Furniture Rental

RealPage, Inc.

The Des Moines Register

Red Capital Group

DeWitt Painting

Reliable Construction

Diamond Vogel Paints

Shelton Painting

First Advantage SafeRent Furniture Options

Sherwin Williams Floor Coverings

Gorman Roofing Services

Simply Clean

Jared Frank Agency

State Farm Insurance Glen Waterhouse III

All Vendor Member contact information can be found on the CIAA website: www.ciaahq.org

To Become A Vendor Member Contact: Tom Newton at 515-883-0838

[email protected]

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Membership Meeting Registration November 12th, 12 Noon Airport Holiday Inn, Fleur Drive “Our Profit is Your Success!”

2009 LEGISLATIVE SESSION Guest Speaker - Mike Triplett, Hultman Company (CIAA Lobbyist) Discussion will include the recent Iowa Supreme Court ruling on the issue of real estate taxes and what that means going forward. Bring your questions and concerns as this will be the start of the Legislative Committee’s planning session. Legislative activities can be a fascinating subject, so come have a nice lunch and learn about how Iowa’s government works and how you can be part of the action!

Cost: $17.00 includes lunch, tax, and gratuity Lunch will be a hot turkey sandwich, mashed potatoes and gravy, green beans, salad, and pumpkin pie.

Make checks payable to CIAA Fax your reservations to Mary Spain at (515) 327-9104 No later than 12:00 pm on Monday, November 10th Please remember that CIAA is a non-profit association and does not up charge for these events. We have to pay for the number of lunches reserved. Therefore, no-shows will be billed. We appreciate your support and understanding. Registration Form: Name:

Name:

Name:

Name:

Company / Property Name: Address: Phone:

City: Fax:

Zip Email:

VENDOR SPONSORSHIP

MAINTENANCE OLYMPICS TEAM SIGNUP

COMPANY SIGNUP

Company Name:

Company/Property:

Phone:

Phone:

Email:

Email: We would like to submit the following 2-person team(s):

We would love to help make the Holiday Social a success! Gold Sponsor ($150.00)

Team Name: 1. 2.

Silver Sponsor ($75.00) Bronze Sponsor ($50.00) Vendor cost for event: is $25.00. This is the last Vendorsponsored event and your chance to say “Thanks” to the property members!

Team Name: 1. 2. Team Name: 1. 2. Team Name: 1. 2.

Fax your registration to Tom Newton at 515-278-5562

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Prospective tenants with foreclosures: Caution advised By Scott McBroom, Account Manager and Jim Baker, Sales Executive First Advantage SafeRent With home foreclosure rates still at an all-time high, many multifamily property owners are tempted by the prospect of an influx of renters. While "the more the merrier" works in a lot of industries, the apartment industry is not one of them. The surest way to risk net operating income (NOI) levels is to overlook high-risk renters by relaxing your screening methods. Property owners and managers who rent to those with a recent foreclosure on their credit history are likely to increase their financial risk affecting their bottom line. Most likely, the financial woes of these former homeowners will follow them from their houses to their rental units increasing the risk for the property owner. Because houses are most people's greatest asset, owners in even the deepest economic trouble will typically continue to pay their mortgage while they let other bills slide. So when they lose their home, there is a good chance they still owe money on their car, student loan or credit cards. As they accrue interest and late fees, these debts will almost inevitably prevent this population from being good renters. Long-term rental strategy works best Property owners may be tempted to overlook the financial hardships of this new and growing applicant pool in an effort to raise short-term yield. This may lead them to soften the criteria for renters in order to quickly hang a "no vacancy" sign on the door. Property owners who rely on a rule-of-thumb method of applicant screening can let their sympathy for the people who lost their homes cause them to relax their screening process. Because the rule-of-thumb method is subjective and easy to manipulate, owners can simply minimize or even eliminate the weight of recent foreclosures during the screening process in their quest for a short-term, high yield. This approach is more than financially risky -- it may be legally questionable. The Fair Housing Act requires that no group be singled out for either discrimination or special treatment. When recent foreclosures are overlooked, it gives that group of applicants an unfair advantage over everyone else. Fair Housing lawsuits are not trivial; the U.S. Department of Justice has assessed fines of hundreds of thousands of dollars for violations. Instead, property owners should focus on a long-term strategy to increase NOI through the attraction and retention of tenants that meet their rental obligations. Reliable, statistically validated applicant screening Rather than manually adjusting scores or eliminating variables, owners and managers should use tools based on science to evaluate applicants. The key is to consistently apply a statistically validated scoring model that will rank applicants in risk-order, enabling properties to accept applicants that pose the lowest risk first, and determine the conditions on which they will be approved. A scientifically based tool is not only more accurate, it eliminates the emotional factors that can enter into the screening process, especially when it comes to rating someone else’s financial hardships. An objective, outcome-based statistical model also makes it possible to adjust scoring characteristics for the entire applicant pool in response to market dynamics, not intuition. As the market fluctuates, property

For questions about this article, please contact [email protected] or 888.881.3400.

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owners can move scores down as inventories rise and move them up as the supply tightens. These types of adjustments increase renter quality and may lower bad debts while staying in compliance with Fair Housing regulations. Be smart. Screen every applicant. Although the foreclosure epidemic has turned former homeowners into potential renters, this is no time for property owners to look for a quick fix to fill vacancies or to be swayed by an applicant’s plight. Foreclosures may be more common in 2008, but they are no less significant than five years ago when there were far fewer of them. Subprime applicants should be screened on the same basis as any other applicant. Every leasing decision should be based on a scientifically derived screening method, not adjusting criteria to ignore recent foreclosures. Doing so may impact your long-term financial goals by making exceptions to determined levels of risk tolerance. Such adjustments are a short-term solution that may have financial implications down the road. Be smart and stay the course. When owners apply a statistically validated scoring model to each rental application, their decision-making process remains sound and impartial. Risk is minimized, NOI is maximized, and you are more likely to meet Fair Housing compliance.

For questions about this article, please contact [email protected] or 888.881.3400.

Connect With NAA Executive Panel, Crisis Management Case Study Slated for 2009 Student Housing Conference B y M i c h a e l To m p k i n s , C A P S , C P M , C C I M 2008 National Apartment Association Chairman of the Board Julian LeCraw & Co.

W

ith so many young people choosing today to pursue education at the college level, demand for quality student housing continues to grow. The 2008 NAA Student Housing Conference & Exposition attendees learned earlier this year that one of the biggest and most lucrative niche markets for rental communities is offcampus student housing. At the 2009 NAA Student Housing Conference & Exposition, individuals who are involved or interested in student housing management can share best practices, network and learn from industry leaders at The Venetian Palazzo Hotel and Resort in Las Vegas, Feb. 2-4, 2009. The conference will kick off with a Student Housing Executive Panel, moderated by Mike Peter, President and CEO, Campus Advantage; and featuring Bill Bayless, President, American Campus Communities; Mike Mouron, President and CEO, Capstone; Jim Short, President and CEO, Campus Living Village; and Tom Trubiana, Chief Investment Officer, Education Realty Trust. Other scheduled General Session presenters are Keynote Speaker Neil Howe, author of “Millennials Go To College,” who will coach attendees on the intricacies of catering to the college demographic; Chris Lee of CEL & Associates, will present relative research findings; and Dr. Richard Ferraro, Assistant Vice President of Student Affairs and Virginia Tech, who will close out the conference with a case study discussion on crisis management. Breakout education sessions will include topics in the areas of marketing, legal and fair housing, technology, turnover, recruiting, operations and behavioral control, among others. For information and to register, visit www.naahq.org/events/shc.

Green Conference Scheduled in Phoenix The 2009 NAA Green Conference & Exposition is scheduled for April 28-29 at the LEED-certified Phoenix Convention Center. The headquarters hotel is the brand-new Sheraton Phoenix Downtown Hotel, just one block from the convention center. For information and to register, visit www.naahq.org/events/green.

New CAPS Designation Program Completed The NAA Education Institute (NAAEI) has completed the new Certified Apartment Property Supervisor (CAPS) designation program. It is available for affiliate staff to share with CAPS instructors to allow them to familiarize themselves with the new program before providing CAPS instruction. The target audience for the new CAPS is those who management multiple apartment communities or have completed their Certified Apartment Manager (CAM), ARM or RAM designations and have a minimum of two years’ experience in onsite management. The five modules included in the program are Legal Responsibilities and Risk Management; Financial Management; Property Performance Management; Property Evaluation and Due Diligence; and Effective Leadership.

Income & Expenses Survey Now Available Just in time for your annual 2009 operations budget preparation, NAA’s annual Survey of Income & Expenses in Rental Communities, completed by CEL & Associates Inc., is now available online at www.naahq.org/08ies. It contains detailed data summarized for six geographic regions and for metropolitan areas with at least 10 properties reported. An executive summary of the survey appeared in the August issue of units magazine.