A PA R T M E N T JUNE 2011
mu nit y's
y e Co tation
our pu m
On lin e R
Managing and cleaning Up
unwanted “Graffiti” on the Web
A PA R T M E N T CONTENTS
THE VOICE OF THE
DENVER MULTIFAMILY HOUSING INDUSTRY
5 From the President
June 2011 • Volume 24 Number 6
Protecting Your Community’s Online Reputation
15 Ask the Lawyer
A Tool to Maintain Your Online Reputation
Managing Your Online Reputation
Tributes 2008 Revisited: Part One
Community Interiors: Tributes Presenting Sponsor
DESIGN, PRODUCTION, SALES & ADVERTISING
Christopher Dean Alliance Wine Tasting Fundraiser
firstname.lastname@example.org 27 Resident Retention
Focus on the Meat & Potatoes of Retention
COMMUNICATIONS COMMITTEE CHAIRS
Melissa Robbins, Joel Sandoval
Lynett Brockman, Nancy Burke, Drew Hamrick, Brandon
Upcoming AAMD Events Departments
Hegland, Wendy Jenkins, Betty Knecht, Jen Piccotti, Cherie 6 June Awards 3 Leadership
Shaw, Lori Snider
10 Tributes 2011 7 Eye on the Industry
ADVERTISING 13 Calendar 8 Association News
Please contact Christopher Dean or Julie Evans-Schmitt
at 303.329.3300 for more information about advertising 13 Education Calendar 29 AIMS Update
in Trends. Deadline for contracts and artwork are the first
Monday of the month prior to publication.
18 Economic Conference 32 Advertising Directory
32 New Members
Trends will consider printing any article written by an
AAMD member that applies to the Denver multi-family
industry, is 500-1200 words, does not promote any single
company or product. AAMD reserves the right to edit
any article without notification. Due to space, not all
articles submitted will be printed. CONTACT AAMD
MAILING ADDRESS: Executive Vice President: Mark Williams, email@example.com
3773 Cherry Creek North Drive Vice Pres. of Government Affairs: Nancy Burke, firstname.lastname@example.org
Suite 1001 Vice Pres. of Member Services: Julie Evans Schmitt, email@example.com
Printing: Siler Printing, Denver, CO Vice Pres. of Events & Education: Betty Knecht, firstname.lastname@example.org
Denver, CO 80209
Apartment Trends (USPS 018-233) is published 11 times a year (monthly except for Accounting Manager: Earlease Alexander, email@example.com
the combined November/December issue) by The Apartment Association of Metro
Denver, 3773 Cherry Creek North Drive, Suite 1001, Denver, CO 80209. Periodicals PHONE: 303.329.3300 Office Manager: Wenonah Clayton, firstname.lastname@example.org
Postage Paid at Denver, CO. POSTMASTER: Send address changes to Apartment
Trends c/o The Apartment Association of Metro Denver, 3773 Cherry Creek North FAx: 303.329.0403 Communication & Marketing Mgr: Christopher Dean, email@example.com
Drive, Suite 1001, Denver, CO 80209. Subscription included in membership dues.
Apartment Trends is published as a service to its members and all segments of
Manager of Education Services: Wendy Jenkins, firstname.lastname@example.org
the apartment industry by The Apartment Association of Metro Denver. Any MEMBER WEBSITE: Programs & Events Manager : Julie Marie Martinez, email@example.com
reproduction or copying in whole or in part, without permission, is prohibited.
Articles and events herein do not necessarily have the endorsement of AAMD but www.aamdhq.org CAA Affiliate Coordinator: Meghan Storrie, firstname.lastname@example.org
may be presented to give readers a diversity of views and activity updates. 3773
Cherry Creek North Drive, Suite 1001, Denver, CO 80209, Phone (303) 329-3300,
Fax (303) 329-0403, E-mail: email@example.com, Web: www.aamdhq.org. AAMD is
a tax-exempt professional trade association representing the multifamily housing
industry in the metropolitan Denver area. AAMD is affiliated with The Colorado FACEBOOK TWITTER LINKEDIN
Apartment Association (www.caahq.org) and The National Apartment Association www.facebook.com/aamdhq www.twitter.com/aamdhq www.linkedin.com/groups?gid=875627
248 Fans 91 Followers 223 Members
www.aamdhq.org JUNE 2011 • TRENDS | 1
PRESIDENT PRESIDENT-ELECT VICE PRESIDENT SECRETARY
Cherie Shaw Meredith Wright Mike Papantonakis Don Werner
Greystar Real Estate Partners Echelon Property Group Nina Property Investors Metrex Property Group
TREASURER SUPPLIER AT LARGE PAST PRESIDENT ExECUTIVE VICE PRES.
Rocky Sundling Foy Bailey Jennifer Nessett Mark Williams
Camden Property Trust Community Interiors Sares-Regis Group AAMD
2010-2011 BOARD OF DIRECTORS
President Cherie Shaw, Greystar Real Estate Partners
President - Elect: Meredith Wright, Echelon Property Group
Vice President: Mike Papantonakis, Nina Property Investments
Treasurer: Rocky Sundling, Camden Property Trust
Secretary: Don Werner, Metrex Property Group
Supplier At Large: Foy Bailey, Community Interiors
Past President: Jennifer Nessett, Sares Regis Group
Executive Vice President: Mark Williams, AAMD
Owner Director: Gayle Gahagan, Corum Real Estate Group
Owner Director: Pat Hutchison, Legacy Partners
Owner Director: Jennifer Routon, Echelon Property Group
Supplier Director: Dan Flanagan, BluSky Restoration
furniture flexibility for your life
Supplier Director: Mark Tschetter, Hopkins Tschetter Sulzer, P.C.
JLAC President: Lauren Brockman, Orion Real Estate Group
JLAC Pres. Elect: Brandon Rich, Greystar Real Estate Partners
Education President: Heather Campbell, Riverstone Residential
Education Pres. Elect: Garrett Faillaci, RedPeak Properties
Networking President: Vickie Breaux-Michaud, All Set Restoration
Networking Pres.-Elect: Joel Sandoval, Valet Waste
Suppliers Council President: Megan Dyk, Apartment Book
Suppliers Council Pres-Elect: Jon Butters, Arbor Carpet
IROC President: Deanie Kennedy, IPM Colorado
Tens of thousands of people every year make CORT the most trusted source for their NAA Region VIII VP: Rex Gambrell, Corum Real Estate Group
CAA President: Dana Lowry, Grand West Properties
temporary furniture solutions. Moving for a New Job? Heading Off to School? 2010-2011 COMMITTEE CHAIRS
Landing a Temporary Assignment? Making a Fresh Start? Alliance Chair:
Mike Zoellner, RedPeak Properties
Terry Simone, MultiFamilySolutions
Ambassadors Chair Larissa Ouellette, BluSky Restoration
Ambassadors Vice: Jody Robinson, Career Strategies
Chili Cookoff Chair: Chip Kabrud, Mac-Gray
CORT makes living smart easy...
Chili Cookoff Vice: Amie Harmon, RediCarpet
Communications Chair: Melissa Robbins, Greystar Real Estate Partners
Communications Vice: Joel Sandoval, Valet Waste
Charity Auction Chair: Mary Wessler, ConAm Colorado, Inc.
Charity Auction Vice: Scott Kirkwood, Berkshire Property Advisors
Economic Conf. Chair: Rocky Sundling, Camden Property Trust
Furniture Housewares Home Accessories Electronics
Economic Conf. Vice: Mark Tschetter, Hopkins Tschetter Sulzer
• • • Finance Chair: Rocky Sundling, Camden Property Trust
Finance Vice: Meredith Wright, Echelon Property Group
Golf Tournament Chair: Lyn Jacobs, Arbor Carpet
Golf Tournament Vice: Brandon Rich, Greystar Real Estate Partners
June Awards Chair: Jennifer Nessett, Sares-Regis Group
Maintenance Olympics Chair: Ed Schell, HD Supply
Showroom & Clearance Center Rental Showroom Maintenance Olympics Vice: Mike Colton, Greystar Real Estate Partners
Maintenance Olympics Vice: Todd Bowen, Legacy Partners
600 S Havana Street 1885 W 120th Ave, #200 Membership Chair: Abby Germano, Echelon Property Group
Membership Vice: Helen McMahon, RealPage
Aurora, CO 80012 Westminster, CO 80234 Membership Vice: Jenny Jacobs, Standard Interiors
303.344.5114 303.920.9117 Public Relations Chair:
Public Relations Vice:
Mike Gosline, Metrex Property Group
Karen Gladney, POWER Leasing
Spring Clean Chair: Stacy Valentine, Equity Residential
Spring Clean Vice: Wayne Baker, Shaker Painting
Trade Show Chair: Parke Pettegrew, Carmel Partners
CORT.com I 888-360-CORT Trade Show Vice: Christina Steeg, Simpson Property Group
www.aamdhq.org JUNE 2011 • TRENDS | 3
FROM THE PRESIDENT
Cherie Shaw, Greystar Real Estate Partners
board installation dinner
Recaping the 2010-2011 Year
hank you to the entire AAMD Membership for your
continued support and contributions to our industry
in the past year. I’m proud to report that we had a very
campaign funds, and contributed over six times any amount
AAMD ever contributed before! We proudly have an 87%
success rate at contributing to elected candidates in the state of
productive fiscal year which allows us to exceed several of our Colorado who support the apartment industry!
goals and set some new (all time) AAMD records!
From a legislative perspective AAMD and CAA had an
We are extremely excited to announce that later this excellent year protecting our industry. One of many examples
month, AAMD will be recognized throughout the upcoming was the defeat of House Bill 1214 which would have made
National Apartment Association Conference in Las Vegas as apartment energy audits mandatory, costing up to $500
the 2011 Paragon Award winner for Education. Specifically per unit for the audit. Defeating this bill saved the industry
this award recognizes our Educational accomplishments as upwards of $52,000,000! AAMD also helped to prevent the
well as our program training over 350 individuals on the new adoption and implementation of rental housing inspection
EPA Lead Paint regulations, which AAMD continues to offer. and registration programs in at least two Metro Denver
Congratulations to Wendy Jenkins, Manager of Education; municipalities this year. Again, these are just a few good
Betty Knecht, VP of Events & Education; as well as the entire examples of our membership dues at work!
AAMD Education Advisory Council, under the leadership of
Parke Pettegrew and Heather Campbell. Finally, we were very active in 2010 and 2011, hosting
several charity events to raise and donate over $40,000 and
Our year was filled with successes. We drew record hundreds of volunteer hours for Family Homestead and their
attendance at the 2011 Maintenance Olympics (over communities. AAMD also made significant contributions to
850 registered) and at the 2010 Chili Cookoff (over 1,000 the relief efforts in response to the Japan earthquake and
registered). As of this writing, we have sold a record number of tsunami crisis, as well as the recent tornado and flooding crisis
booths for our Education Conference and Trade Show and we in the Southeast. We are very excited to have made generous
are expecting a record number of attendees as well. donations to those in need within our community and beyond!
JOIN US FOR AN EVENING TO
In 2010-2011 the AAMD Membership reached an all-time I want to reiterate my thanks to everyone who assisted me
2011 rock star
high with 451 Owner/Management companies representing and the AAMD for a truly outstanding and productive year! I
ACHIEVEMENTS OF THE 2010- over 155,000 units, and nearly 500 Supplier Members! At want to give special thanks to my family and husband Kevin
THE 2011-2012 BOARD
VOLUNTEERS AND INSTALL renewal time last year, we retained over 90% (another record) for his ongoing support, as well as my deep appreciation to the
IENDS, FOOD & WINE.
OF DIRECTORS AMONGST FR
of the previous year’s membership! Greystar family who also supported me during my year as AAMD
President. Finally, as my term comes to a close I want to wish the
Several new programs and partnerships were initiated this
thursday june 16, 2011
best of luck to Meredith Wright and new Board of Directors (pg.
2010-2011 PRESIDENT 2011-2012 PRESIDENT year, including our new Online CAA Lease system, our new 9) as they continue to lead the Association’s successes.
infinity park of glendale
Cherie Shaw Meredith Wright resource website, ProApartments.com, and AAMD offered the
CAPS (Certified Apartment Portfolio Supervisor) program for
presentedby the first time in over 15 years, in which 27 people were certified
with this top NAA designation.
Our efforts in the 2010 Election were also exceptional
making a very measureable impact. We raised significant
www.aamdhq.org JUNE 2011 • TRENDS | 5
EYE ON THE INDUSTRY
Your community can be seen by Lynett Brockman, Lynett Brockman & Associates
over 850,000 employees. Movers and Shakers About ABC Apartment Solutions: By
offering a free benefit or discount program
Erik Hagevik joins the Holland to preferred employers and their employee
Residential team with over 16 years of base, ABC showcases communities on-line
development experience in the Rocky that provide discounts to participating
Mountain Region. Erik’s broad background employers. This is achieved through a variety
includes the completion of multi family of green communications such as postings
resident and mixed use projects as well as on internal company intranet sites, company endorsed and
land acquisitions for office and retail. He has distributed e-newsletters and benefit platforms. Multi-family
been responsible for all aspects of development including owners and operators who are looking to improve their
site acquisition, development, finance, marketing, leasing , in-house outreach marketing results are out sourcing their
investment sales and asset management. Erik is a member “old school” Preferred Employer Programs to ABC Apartment
of AAMD, United States Building Councils and a pending Solutions for a more effective program without sacrificing
member of Urban Land Institute (ULI). Look for Erik out and resident service at the community level. For a list of current
about – Looking for great sites to develop! participating employers and an on-line brochure visit www.
abcapartmentsolutions.com or call 800-944-2222. ABC’s
Christina Alderson has joined Forum very high energy, Founder, Amanda Brown-Ciccolella is
Real Estate as Portfolio Manager. Christina’s looking forward to serving the Colorado markets and excited
√ Save time and money by outsourcing your Preferred portfolio will include 3 lease ups. Yes, three! to have Tina paving the way.
Employer Marketing to ABC Apartment Solutions. Forum Real Estate has also welcomed
George Bernath as Regional Maintenance
Supervisor, Anita Broussard as Business
√ Compliment your existing marketing program. Manager and Rhonda Hunter has come on board as Legacy Partners Vice President, Patricia Hutchison has
Operations Assistant! We’ll see more from the Forum team announced that her team has four new communities in their
soon... perhaps even some new development!
√ Keep your staff where they need to be, on-site taking portfolio! The four communities, Osage 100 Apartments,
Thunderbird Apartments, Eagle’s Nest and Hill House will
care of your residents. Jon Troshynksi has joined Karndean
combine to make “The Boulder Legacy Apartments”. One
International as Regional Area Manager.
more small city under the leadership of Legacy Partners
Karndean is a global leader in the supply
√ Reach prospects when they are looking - during business of commercial vinyl flooring – Vinyl that
faithfully replicates the look and feel of Apartment Realty Advisors (ARAusa) has announced the
hours. Get more eyes on your community though an natural materials! Contact your AAMD close of three sales in April of 2011!
employer endorsed discount program before they look flooring vendor for more information. Jon
• The Dakota at Governor’s Ranch
will partner will all of you to get the best product as well as
elsewhere. quick delivery to your floor covering team to install. Sale Price $24,550,000 ($99, 797 / unit)
• Flats at Whisper Sky
Welcome to new member Apartments, Etc. which offers Sale Price $35,400,000 ($166,981 / unit)
services to market your communities with a new approach,
Be Seen – strategically combining high tech with face to face.
Everything from website syndication and SMS applications
• Settler’s Creek
Sale Price $30,500,000 ($133,188 / unit)
Increase your visibility with a Featured Ad to outreach marketing, newsletters and more.
Development Director, Lee Ferguson of Forest City
Joining Apartments, Etc as Vice President Enterprises has announced the construction of two new
and be the first community seen by of Business Development is Sherri communities Metro Denver. By the time this article is
Champignon. Sherri brings 10 years of published, Forest City will have begun construction on “The
Preferred Employers marketing and advertising experience as Novella Apartments” at MLK and Roslyn within the Stapleton
community. “Novella” will include 85 luxury apartment
well as market knowledge. Sherri is looking
forward to making your business successful homes with 44 attached garages. The community was
Contact us today to get started or through getting more leases signed! developed within 6 months from the initial concept! Novella
will have easy access to the planned Light Rail Station and
for a complete list of Employer Partners Tina Dombovy Christensen brings ABC many other points of interest and service. Coming soon
Apartment Solutions to the Colorado – Novella Phase II which will include an additional 140
1-800-944-2222 market. Tina joins the ABC team as National
Sales Director and brings 11 years experience
Forest City has also scheduled construction to begin in June
in both property management and as a
www. marketing and advertising vendor/partner. 2011 on “Eastbridge Apartments”. This 118 Unit community
includes 84% covered parking. The building of the community
abc was timed to take advantage of the current Anschutz Medical
Campus expansion and Veterans Hospital construction.
www.aamdhq.org JUNE 2011 • TRENDS | 7
ASSOCIATION NEWS ASSOCIATION NEWS
AAMD Announces 2011- 2011-2012 AAMD Board of Directors
Networking Person 2012 Election Results
of the Year Congratulations to our new AAMD
Board members recently elected by
Council President elects will hold a one
year non voting term on the Board as they
Voting Executive Committee
the membership. The new owner/ prepare to lead their respective council.
management directors are: Heather Congratulations to the following Council
Campbell (Riverstone Residential); Peggy President elects:
Panzer (Orion Real Estate Group); and • Joint Legislative Advisory Council (JLAC):
Parke Pettegrew (Carmel Partners). The Mike Papantonakis (Nina Investments)
newly elected supplier directors are:
Megan Dyk (Apartment Book) and Lyn • Education Advisory Council (EAC):
Jacobs (Arbor Contract Carpet). Each of Lillian Mumford (ConAm Colorado),
these industry leaders will serve a 2 year • Networking Council: Merideth Wright Rocky Sundling Deanie Kennedy Don Werner Parke Pettegrew Mark Tschetter Cherie Shaw
Echelon Property Group Camden Property Trust IPM Colorado Metrex Property Group Carmel Partners Hopkins Tschetter Sulzer Greystar Real Estate Partners
voting term on the Association’s Board. Joni Gambrell (Corum Real Estate), President President - Elect Vice President Treasurer Secretary Supplier At Large Past President
Following the election, the current • Suppliers Council:
AAMD Board approved the Fiscal Year Jessica Jacobson (RediCarpet) and
2012 Executive Officers to serve in the • Independent Rental Owner (IROC):
coming year as outlined on the next page. Jason Busboom (Busboom Group)
Also elected to the AAMD board via our The following council members were
Joel Sandoval congratulates Vickie Breaux-Michaud. Council elections are: also elected:
• Joint Legislative Advisory Council (JLAC):
At the Networking PowerMixer on • Suppliers Council:
May 5, AAMD President Cherie Shaw Brandon Rich (Greystar Real Estate),
Vickie Breaux-Michaud (All Set Restoration)
presented the Networking Person • Education Advisory Council (EAC): Keely Cox (Schultz Industries)
of the Year Award to Vickie Breaux- Garrett Faillaci (RedPeak Properties), Allison Zelinger (cBeyond)
Michaud of All Set Restoration. Gayle Gahagan Heather Campbell Peggy Panzer Megan Dyk Lyn Jacobs
• Networking Council: Corum Real Estate Group Riverstone Residential Orion Real Estate Apartment Book Arbor Carpet
Vickie has become progressively Joel Sandoval (Valet Waste), • Networking Council: Owner Director Owner Director Owner Director Supplier Director Supplier Director
more active within the AAMD over the Stacey Baldwin (Hans Nielsen)
last four years. • Suppliers Council: Lillian Mumford, (ConAm Colorado)
Jon Butters (Arbor Carpet) and Kristina McDonald (BluSKY Restoration)
With a bubbly personality and • Independent Rental Owner (IROC): Allyse McKenner, (Sares-Regis Group).
fabulous fashion sense, she is always DJ Longo (Terra Firma Investment Group).
an enjoyment to work with and to On behalf of the Nomination task force
make your day all the brighter. She AAMD Council Presidents are we’d like to thank all of the candidates in
walks in the room, bringing a zest for this years election for being a part of this
life that is contagious to everyone, automatically elected to one year voting
terms on the Board. In addition our important process. Brandon Rich Garrett Faillaci Joel Sandoval Jon Butters DJ Longo
making meetings productively Greystar Real Estate Partners RedPeak Properties Valet Waste Arbor Carpet Terra Firma Investment Group
enjoyable and events all the more fun JLAC President Education President Networking President Suppliers Council IROC President
and successful. President
Vickie is currently serving on six
AAMD committees and one, soon to
be two Councils, volunteering time to
plan and execute events.
Non-Voting Board Members
Her enthusiastic leadership has
resulted in a record year for the Power
Lunch program, shattering attendance,
sponsorships and revenue records.
Vickie is such fun and so appreciated
for all the work she does to represent
our industry that it was a pleasure to
present her with this award, at the Rex Gambrell Jennifer Nessett Mark Williams
Mike Papantonakis Lillian Mumford Joni Gambrell Jessica Jacobson Jason Busboom
end of year Networking PowerMixer Nina Investments ConAm Colorado Corum Real Estate RediCarpet Busboom Group Corum Real Estate Group Sares-Regis Group Apartment Association Metro Denver
on May 5, recognizing her constant JLAC President Elect Education President Elect Networking President Elect Suppliers Council IROC President Elect NAA Region VIII Vice CAA President Executive Vice President
enthusiasm, commitment and The 2011-2012 Networking Council is introduced at the April PowerLunch. From left, Joel Sandoval, Joni Gambrell,
President Elect President
leadership in the AAMD. Stacey Baldwin, Lillian Mumford, Kristina McDonald and Allyse McKenner
8 | TRENDS • JUNE 2011 www.aamdhq.org www.aamdhq.org JUNE 2011 • TRENDS | 9
Thank You to
12-Year Sponsor and Leader of
NOVEMBER 11, 2011 Ed presents the “We Hammered
‘Em” Award to Legacy Partners. The
award goes to the top performing
management company in the
PRESENTED BY PLATINUM SPONSORS GOLD SPONSORS
Maintenance Olympics Chairman, Ed Shell speaks
to over 800 attendees at the 2011 Maintenance
Olympics. The record setting event organized in
Denver in 1999 with less than 100 people and has
grown into one of AAMD’s premier events, as well
as a National program throughout the country led
by HD Supply.
The HD Supply Team has been a staple at every Maintenance Olympics for
all 12 years as Presenting Sponsor.
www.aamdhq.org JUNE 2011 • TRENDS | 11
FITNESS FACILITY EPA RENOvATOR COuRSE Multiple Dates an
INTO A REVENUE- May 26 or June 29 • 7:45am - 5:00pm dhq.org for
GENERATING MACHINE! Proctor: Gobbell Hays Partners, Inc.
Research shows a fitness center The EPA requires that individuals and companies responsible for maintenance
is an essential amenity for your repairs and remodeling of painted surfaces in dwellings built before 1978
MUST be certified in this 8-hour course. Not sure if you should be certified?
business. Whether your current
Contact Wendy at AAMD 303-329-3300.
facility needs an upgrade or a
Avoid costly fines and enroll today!
complete overhaul, Push Pedal Pull
has the equipment and expertise to
create an exciting workout facility that Who Should Attend:
sets you apart from your competition! Persons who perform services for compensation- including maintenance
personnel, property owners and service contractors
Without obligation, we can recommend
the best equipment for your budget, your VISIT WWW.AAMDHQ.ORG TO REGISTER
users and your space to help you turn your
faciity into a revenue generating machine!
Call us today for a free liability assessment! CERTIFIED POOL OPERATOR (CPO)
June 16-17 (2-day class)• 8:30am - 5:00pm
Visit us at the AAMD Expo Booth #424 Cost: $250.00 (Early Bird Special!)
www.pppcommercial.com Instructor: Jason Allen, Carmel Partners
Keeping your pool, sauna or spa in top working condition ensures the
longevity of your asset and the safety of your residents. As a Certified Pool Operator®
(CPO) the persons responsible for maintaining your pool, sauna or spa will have a better
understanding of the laws and basic upkeep techniques of pool and spa operations.
Who Should Attend:
Maintenance and Grounds Technicians, Supervisors & Property Owners
VISIT WWW.AAMDHQ.ORG TO REGISTER
Friday, June 3 Friday, August 12
Spring Clean Golf Tournament
Thursday, June 16 Thursday, August 25
June Awards Business to Business Exchange
Thursday, July 21 Saturday, October 15
Paul Frassanito: 720-347-7253 Summer Economic Conference Chili Cook-Off
Colorado’s Exclusive Dealer Friday, November 11
Mark your Calendars
Melissa Ward: 303-241-9004
NEBRASKA • NORTH DAKOTA • SOUTH DAKOTA • MINNESOTA • IOWA • OKLAHOMA • WISCONSIN • COLORADO • WYOMING
12 | TRENDS • MAY 2011 www.aamdhq.org www.aamdhq.org JUNE 2011 • TRENDS | 13
Y our Commu nity's Online Here's a Tool to Maintain
BY LORI SNIDER
The Lori Snider Company
R eputation BY DREW HAMRICK
of view. Why are they so mad? Why are
they willing to spend extensive time and ith the explosion of internet sites that
energy proclaiming how incompetent
you are? Who's the Bigger allow tenants to voice their opinions
about their landlords and their
It’s simple - some don’t feel heard,
and some don’t like what they heard.
Person? properties, landlords are increasingly becoming
victims of untrue disparaging statements.
If they don’t feel heard, why not? Is When an individual trashes you and
your integrity, your first reaction might Obviously, some tenants have legitimate, well thought out
communication breakdown at your concerns and complaints. However, very few forums for such
community commonplace? Do residents be to grab the boxing gloves, yell “Oh no
ever feel like they have been left you did not!” and run at them swinging. complaints have any method of testing for accuracy, allowing for
“hanging”? If they received an answer a fair response or for the removal of comments that turn out being
Not a good idea, as you have just unsubstantiated. Even when the site does have a mechanism for a
they did not want to hear, how was stooped to their level. It will make you
it delivered? Are residents expecting response (like the Better Business Bureau) responses can be time
feel better for a moment until they
a level of service that is impossible consuming and expensive.
punch back and suddenly all you have
to deliver, given variables at the accomplished is your own version of
community? Why do so many refer to Published tenant complaints can have dramatic negative
a VH1 reality show. Lots of clawing, effects on a property, as they can influence the leasing decisions of
the office staff as “rude and uncaring?” screaming and finger pointing, and in
the end, you lose. A better move would
perspective applicants and can cause owners to second guess their
oday, most first impressions are Take a hard look at your operation hired management company.
and the way you deliver. Where is be to acknowledge the commentary, i.e.
made online. A prospective
resident searches, (for the the missing link causing the negative “I am sorry you have had parking We are all familiar with first amendment freedom of expression
purpose of this essay); perception? Even if most of it is issues and can understand your which includes the right to express many things (including things
“Apartments Denver” and a myriad of slander, try to find the real issue that is frustration at not being able to find that are ultimately incorrect). However, we also have the right
ILS’s, apartment websites and, (always sometimes lurking below the surface. a parking space. As you have posted to agree to limit those expressions. Confidentiality agreements
on the first page) the inevitable ratings Stay away from being defensive, and anonymously, I don’t know where your between employer and employee, as part of settlement
and review sites appear. Once on a acknowledge that they have a right to apartment is, and in order to best help
their feelings, unrealistic as you might agreements or for use in intellectual property transactions are
review site, based on a community’s you, may I contact you off line at your
ratings, the client may visit…or quickly in-depth dissertation on why they believe them to be. common place. There is nothing that prevents a landlord and a
hate the community they live at, and convenience? Or, if you prefer, we are tenant from entering into such an arrangement.
disappear. open every day from 9 until 6 pm and
then proclaims it to the world, and the
our phone number is .......... . We will do
The time and effort individuals are
spending on sites like Apartmentratings.
management company says nothing.
They are completely invisible and Say It To My Face whatever we can to help you.”
A lease addendum does just that. This addendum may not be for
everyone. Clearly, it will smack some tenants as being unfair and
com detailing their experience, (most of therefore not part of any conversation.
Gossip, rumors, did you ever notice Stay calm, cool and collected…and perhaps unacceptable. As with all transactional points, the landlord
which involves trashing the community Why not? Why are we ignoring these
the most outlandish claims against be the bigger person. will have to grapple with whether the protection provided by this
and management staff in explicit detail) sites? They’re not going away, and they addendum is worth the potential of losing an applicant from time to
someone usually develop when they
is appalling, and threatens the integrity certainly aren’t doing the consumer any time.
are not there to defend themselves?
of the site. good given their current scope. In fact,
It’s easy to talk about somebody
Yet, on almost every page I
they are turning the consumer off all
together by making our industry appear
behind his or her back. But say it to
their face...now that is another story.
Leave them with To increase its marketability and enforceability, the addendum
creates obligations for the landlord as well as for the tenant. There
review, the only people talking are
the disgruntled residents, (or family
members of disgruntled residents),
What’s a savvy property manager
Think about the playground. Johnny
isn’t there, and the other kids do a lot
Nowhere to Hide may be times that this addendum will create liability for a landlord
where it otherwise would not exist for the mistaken publication of
and occasionally a prospective resident to do? of talking about Johnny. But if Johnny One of the attractions to individuals information.
whose observation of the horrific walks up, the talking stops. If residents hell-bent on destroying you is that
that vent on these sites know you are the review sites offer the cover of Nevertheless, those landlords who have been plagued by
commentary has spurred them to speak
on the lack of useable information
provided, and proclaim the residents a
Reality Bites. there and present, are they as likely to
be as vicious? Probably not, and they
may think twice before making broad,
anonymity. They can say whatever they
want, because nobody knows who
they are. Until the FTC develops rules
inaccurate and sometimes erratic publication of
unfair statements about their properties may want
bunch of whiny babies. Perception is 99% reality, and the this tool. Having the ability to make tenants who are
exaggerated statements. You’re not on testimonials and disclosure to force trying to damage their business reputation move
disgruntled resident has an outlet there to call them out, but you are there, individuals to clarify who’s behind the
The result is a whole lot of to proclaim their (skewed or not) away will restore some leverage to the landlord.
screaming and trash-talking and and they know it because you regularly recommendation or conversation sans
perspective. Instead of being defensive, respond, acknowledge their feelings ambiguity, your goal will be to draw Drew Hamrick is an attorney who has provided legal
very little relevant information. The try to look at it from the resident’s point
resident spends an hour creating an and work to find solutions. them out of cover. representation to AAMD, CAA and many of its members for more
than 20 years. You can reach him at firstname.lastname@example.org
www.aamdhq.org JUNE 2011 • TRENDS | 15
“I understand your frustration over the water leak that
". . . don't Spend All Your Time at these
forced us to strip your floor bare of carpet and leave you
like that for 8 days, and have reviewed all of my service
requests in an attempt to determine who you are and why
we would have erred this enormously, but I have not found
any record of such action. We definitely want to speak to
you about this and get it solved. Please contact us at your
earliest convenience at.............”
Your writing should contain a neutral tone and an
Sites, but don't be invisible"
Digital laundry innocent look. Your goal is simply to understand and
help. apartment and you probably won’t have
any issues, but it is first-come, first-serve.
time for a lease quiz. If you decide to
give notice at the end of your lease,
that while you want everything to be
perfect, sometimes it just isn’t. We
is here. TM At this point, you may receive additional fire.
Again, simply seek to understand, and suggest a civil
There is additional parking in front of the
clubhouse if you should ever need it.”
what do you need to do? Why is it
important to have renter’s insurance?”
etc. Every good teacher knows to
will not be able to live up to every
expectation. Don’t beat yourself up, but
be accountable for service delivery.
Sharing in this regard requires a reinforce learning. Don’t assume they
“Again, I understand your frustration and promise high degree of emotional intelligence understand. Make sure they do. Then watch your scores rise.
to hear you out one-on-one. Please contact us at your and extensive training, but the time
earliest convenience.” investment will be worth the reward. Don’t spend all your time at these
Change Point.® The next generation Make sure your leasing professionals sites, but stop being invisible. Focus
Lori Snider is a national
in laundry payment. What this says to others viewing the site is, “Maybe clearly understand and can explain the most of your attention on defining the
this person is a lunatic. The management company lease and the expectation regarding it. expectation and treating your residents
This revolutionary Internet-enabled payment and seems to be trying to work with them. Hmmm.” There is nothing wrong with stating, really, really well. Remember that the consultant and author
complainers, justified or not, are the who regularly provides
monitoring system offers benefits for both residents guest commentary to
“Since this is a legal document minority. Let the happy people know
and property management. To see a short video on between you and XYZ Apartments, we industry publications.
they can go there and comment when
Change Point ®, visit macgray.com/changepoint
Educate and Communicate both have obligations to fulfilling it. Let’s
they have a positive experience. Get
a stamp that says, “Pleased with the
Visit her blog, www.
Many of the “complainers” at these sites seem to service, pleased with us? Let the world
Explain the consequences for lease com to learn more.
have an unrealistic expectation regarding apartment know at apartmentratings.com.” Focus
break, etc. I used to give my clients a
1- 8 8 8- M A C- G RAY life. Complaints regarding noise, crime and the behavior on service, consistency in delivery and
brief quiz at the end, by saying, “OK,
of others can stem from a misunderstanding regarding communication training. Understand
expectations. If you have, for example, a parking issue
at your community, teach the leasing team to define
reviewed Rr the expectation without damaging the benefit. Try
something like this -
“How is the parking?”
For this building, parking during the day will most
Building positive reviews on: likely not be a challenge. One of the wonderful things
Apartmentratings.com Google Local about this apartment is that it has a fabulous golf course
view. That means there is only parking on one side of the
City Search Yelp! building, limiting close-in access. You may find that in the
RenterReviewed.com evening hours you may need to park in the lot one building
over. I know a view is important to you - are you willing
to make the accommodation for the peace, quiet and
environment or should we consider other options where
Call Brandon today to claim your listing more parking is available?”
720.363.5078 Teach your people to share the benefit in not having
Brandon@RenterReviewed.com parking close-by. There are many scenarios
that might be played out on
this topic alone, dependent
Check out our mobile app
on community, amenities,
text APTS to 82257 for a special invitation. etc. Find what is good
and build on that, rather
than skirting the issue
or making broad
statements that don’t
RentApartments.info answer the question
By Apartment Guyz
We do, call 303.649.0705 “There is one space
designated for every
16 | TRENDS • JUNE 2011 www.aamdhq.org www.aamdhq.org JUNE 2011 • TRENDS | 17
PP_Denver_No Iphone_7.5X4.75:Layout 1 1/28/10 1:54 PM Page 1
Extremely Powerful Platforms. Managing Your Online
Highly Effective Strategies. Reputation
In Print Online In the Community BY BRANDON HEGLAND & MAGGIE CHAMBERLAIN
High quality combination of Our leading website helps you Our turn-key social media RenterReviewed.com
print + internet advertising leverages exercise a targeted campaign brings residents together online,
our leading prospect-focused distribution, to Internet shoppers - helping to improve retention.
ithout a well executed reputation management program negative reviews
on land and online. when you need flexibility.
are sure to drive up marketing costs, increase vacancy loss, hinder ability to
increase rents, and make sales more difficult for leasing. Positive reviews create
value and make it possible for rent increases and higher retention. We don’t
live in a 5-star world, so it’s okay to have a mixture of positive and negative reviews. It keeps
the conversation genuine and the right mix provides honest feedback while bolstering trust.
To preserve, restore, or build a good reputation, start with great on-site customer
service and encourage renters to write reviews. You’ll be rewarded with higher rents,
lower marketing costs, better retention, less vacancy, lower employee turnover, and most
We may only be a year old, but we
importantly you will be able to identify and fix legitimate issues.
know what it takes to make a great
Apartment Book Magazine aptbook-colo.com Community Sherpa A key component to successful reputation management is listening to what your company. In tough times only the
INTEGRATED MEDIA ONLINE MEDIA SOCIAL MEDIA customers are saying and responding in quickly and in a positive manner. Set up Google strong survive and the strong don’t
• Prospect-focused • Robust Internet presence
alerts for your property name so anytime something is posted about your property you are get that way by accident.
• Supports resident
distribution on landand online • Immediate impact, minimal retention and referrals sent an email by Google. It’s free, low tech, and dependable. It takes all the right ingredients;
• Lowest cost per lead
• Highest volume of leads
production lead time • Enhances SEO for your website careful planning, the right people and
• Targeted Reach • Turn-key solution for low, flat fee It’s important to note that most reviewers are notified when their review is commented hard work. We call those guiding
on. Designate a skilled reputation manager and give that person 30 minutes a day to values. We know ours and we are
Consumers prefer us. Advertisers rely on us.
To get started, contact your Denver Apartment Book representative at 303-371-8406 or email us at email@example.com
Google search your property, read your reviews, decide how to respond to reviews, take putting them to good use.
action, and continually educate themselves on reputation management trends. If 30 We aren’t ashamed of our age or
minutes a day is too taxing for a team already stretched thin, you could consider third party what makes us strong.
Give us a chance to flex our muscles
You can also reduce online complaints by making it easier for renters to contact upper for you. Just ask our extensive base
The Real Deal
management or your designated reputation manager with issues. Consider the cost of of excited repeat customers-
an unhappy renter in marketing dollars if they are posting rants on every reviews website WE ARE SERVICE WITH
available and decide when it is more cost effective to let a renter out of a lease or even MUSCLES!
encourage them to move to a property better suited for them.
Positive reviews create value and make rent increases possible. When a consumer does • Lighting
a search for a hotel, they immediately look at the star rating. The vast majority of consumers
Is the Economy Bluffing?
gladly pay more to stay in a 4 or 5 star hotels vs. a 2 or 3 star rated hotel. The same train of
• Energy services
thought directly applies to renting an apartment.
• 24 hour emergency
Positive reviews are useful marketing and closing tools. Inspire buyer confidence at service
every touch point. Showcase your community’s positive feedback in marketing material • Flexible scheduling
and have positive examples of third party reviews to hand out and and in email link format
to insert into emails and text messages.
Within the apartment industry, competitors are closely monitored. Rents and specials
are analyzed and help management determine rental rates. Adding average competitor star
rating to a competitive market analysis and striving to outperform your competitors is an
effective way to charge more rent than the guy next door, retain fee management contracts, 1860 W. Hamilton Place
and incite new management opportunities.
WILLIAM MADDUx MARK SNEAD DAVID KIM GORDON VON STROH JONATHAN WOLOSHIN Englewood, CO 80110
GREYSTAR REAL ESTATE PARTNERS FEDERAL RESERVE BANK OF KANSAS CITY THE BASCOM GROUP DANIELS SCHOOL OF BUSINESS - DU UBS FINANCIAL SERVICES
Reviews are your biggest friend if you do a few things today. Implement a reputation 303-761-6176
management program or hire a third party reputation management firm, do a good job, fix Request service anytime by
problems identified in reviews, and encourage all renters to write reviews.
Brandon and Maggie are reputation managers for RenterReviewed. www.integrityele.com
com and can be reached at firstname.lastname@example.org and maggie@
2011 SUMMER ECONOMIC CONFERENCE • THURSDAY JULY 21, 2011 • MARRIOTT DTC renterreviewed.com
18 | TRENDS • JUNE 2011 www.aamdhq.org www.aamdhq.org JUNE 2011 • TRENDS | 19
Tributes 2008 Revisited: Part One We’ve got you covered!
Windows, Window Repair, Doors and More
JOANNA PuLIDO NATALIE WILSON
RedPeak Properties Riverstone Residential
Most Outstanding Community Manager Most Outstanding Regional Manager
How did being a Tributes recipient impact you personally and professionally?
Joanna Pulido: It was incredibly rewarding and motivating to read my nomination
and be recognized for my hard work. It recharged me and made me want to work even
harder. I eventually took over managing another one of our larger mid-rise buildings
and shortly after was promoted to a Portfolio Manager. I now oversee 1244 units in my
Portfolio with approximately 60 employees.
Natalie Wilson: This award is one of the highest honors I could imagine receiving. The
impact both personally and professionally has been humbling. Much like a professional
athlete or entertainer who receives a personal achievement award could only be
accomplished because of the surrounding team support.
How did you feel when you were announced as the Tribute’s recipient?
JP: Unexplainable excitement and a huge adrenaline rush. As I walked up to the stage
I was saying to myself “please don’t trip, please don’t trip, please don’t trip”. Also, after I
received my award I was in the back and I heard my team being called up for the “Best
Community Team award” I was so proud of them!
NW: I was humbled to be chosen out of all of the talent in Colorado.
THREE CONSECUTIVE GALAS
Any helpful tips for this year’s finalists as they go through the interview process?
JP: Be genuine and sincere when sharing your secret sauce with the judges!
NW: Think about what you do every day to insure your clients reach their financial goals
and your partners are successful; share those activities with the interviewers.
What was the most memorable form of recognition you received after Tributes?
JP: We had an article that came out in the paper “RedPeak salutes our Tributes winners
and finalists”. The clipping was cut out and framed for each person. Also, the personal
recognition from peers, vendors and residents was sincerely appreciated.
Community Interiors, Inc
NW: It was the pay off for all of the training, faith, support and confidence from people
4545 E 60TH AVE #200
that have worked with me over my 30 years in the industry. More importantly, it was COMMERCE CITY, CO 80022
the overwhelming pride that beamed from my parents faces. No one is successful alone. TEL 303-722-2543 FAX 303-722-3192
www.aamdhq.org JUNE 2011 • TRENDS | 21
SPOTLIGHT NEW INTEREST
Community Interiors – Tributes Community Interiors
Presenting Sponsor for third launches new weapon
consecutive gala. for faster service.
“Tributes celebrates the people in the industry and their contributions to the Community Interiors President and CEO Foy Bailey
community. It’s a great way to give back and to recognize members of the AAMD for teaches that, “in a down economy, it’s even more about
all that they’ve done,” said Foy Bailey, President and CEO of Community Interiors. exceptional customer service. The bad economy a ects
everyone; so don’t use it as an excuse. Now more than
Community Interiors, a ooring installation company based in Commerce City, CO, ever our answer is “yes we can” as we create more
will be the presenting sponsor for the 2011 Tributes gala event on 11/11/11. customized solutions while continuing to o er excellent
Once every three years, the Apartment Association of Metro Denver hosts Tributes,
the largest and most prestigious apartment industry event, to recognize and reward
AWARD WINNING business practices and great value! Always stay positive
and keep things changing: new services and new
product o erings – combined with world class service.
the people who contribute to the apartment industry’s success. Community Interior‘s
Use this time to not just build sales but to strengthen
has proudly held the title of Presenting Sponsor for the last three consecutive galas
relationships. Design and integrate new solutions that
save people time and money, especially in this
It’s not often one nds a business that is experienced,
With high aspirations for the future, and hopes to work with many companies community-oriented, locally owned, award winning and
involved in the AAMD for years to come, Community Interiors would like to operating successfully for over 18 years; but this year the
Case in point, Community Interiors has launched their
take this opportunity to cordially invite you and your guests to attend the 2011 presenting sponsor of Tributes is all of those and more.
new online ordering system, CIA (Community Interiors
Tributes gala to be held at the Sheraton Denver Downtown Hotel on 11/11/11.
Access) which enables clients to order online, track their
In 2006, Community Interiors was given orders by property, budget, forecast
an honorary Tribute for their sponsorship and pull historical reports.
and work for Tributes during 2005.
GIVING BACK Community Interiors is a model service vendor for
• Safe & Secure
• Customized Portal
Community Interiors team
the multi-family housing industry specializing in a
• Anytime Access
variety of ooring installation and custom wall
gives the Boulder Humane 25 OUT OF 100
Community Interiors was ranked 25th among the Top
painting. Community Interiors has been in business for
nearly two decades and takes pride in their customer •
retention rate, which is well above the industry norm. and Support
100 Women-Owned Businesses in 2003 and ranked 28th
Society a facelift. in 2009 by ColoradoBiz Magazine.
Vinyl ooring is the most economical
This Colorado company, and woman-owned business,
Retrieve Job Records
ooring available in housing and
stays competitive against large national brands by
In addition to servicing many Front Range businesses, Community commercial markets. Ten percent of focusing on unyielding attention to customer • Work from your own
Interiors also dedicates time for charity initiatives. The Community all ooring installed is vinyl. satisfaction, quality product, and reliable, Budget
Interiors team gave a complete make-over to the Boulder Humane customized service across Colorado’s Front Range. • Move-out Calculator
Society Gift Shop. “The whole company got involved: employees,
We’ve got you covered. Well-respected and recognized in its industry,
employees’ families, and even their pets in the renovation e orts.
Community Interiors strives for excellence in Call Community Interiors
We didn’t just do ooring – we did wall treatments, painting and
everything it does. Repeatedly recognized by today at 303-722-2543
basically gave it a whole new look and feel.”
peer groups and industry associations, to give their new weapon
Community Interiors has received numerous a test drive.
The Community Interiors team thoroughly enjoyed implementing
this project and the Director of the Boulder Humane Society said prestigious accolades that are testaments to its
sales have doubled because of the new facelift. delivery of exceptional service.
Special thanks to those who participated and
contributed to our Alliance Wine Tasting Fundraiser
BY NANCY BURKE the Alliance, took proactive steps to
back pro-business, industry-supporting
Colorado Apartment Association
candidates, which ultimately gave our
This year’s Alliance event consisted industry a more powerful voice at the
of owners and supplier members who state capitol.
understand the need to support our
Thanks again to all who helped make
the wine event a success, which in turn,
Over the past years, our industry has strengthens our political reach.
been fighting legislation, that if passed,
If you or your organization is
would be extremely detrimental to Vic Sulzer & Bryan Stern
interested in becoming a member of
our industry. Last election cycle, the
the Alliance, please call Nancy Burke or
Association, through funds raised for
Meghan Storrie at 303-329-3300.
Thank You to our sponsors:
Lindsay Jasper, Meghan Storrie, Rep. Kevin Prida & Beau Martin
Rex Gambrell, Don Werner & Nancy Burke Joel Sandoval & Tim Babcock Foy Bailey & Christina Wheland
Gayle Gahagan & Drake Powell Nancy Burke, Karen Harvey & Sharon Ingram Nick Hodgden & Sen. Bill Cadman
www.aamdhq.org JUNE 2011 • TRENDS | 25
Focus on the “Meat and Potatoes” of
BY JEN PICCOTTI
ccording to the 2010 SatisFacts Index, when asked
what can be done to improve the community, residents
ranked “Social Activities” #29 out of 30. All this hype
about being 29th?
Consider this scenario: Ms. Jones is going on Day 3 of being
without A/C during a week-long heat wave. She has submitted
her service request online and has also called the office. As
she looks out her open window, desperately trying to catch a
breeze, she sees the property manager directing a couple of
maintenance techs on the set up of chairs and tables for this
afternoon’s resident pool party. How thrilled do you think Ms.
Jones is about the upcoming pool party? effect means it takes even longer to get to the service requests.
And then, just as the service is declining in the eyes of the
Not very. She wonders, “Why is the maintenance team
residents who are waiting for their issue to be resolved, their
gathered ‘round the pool when there is an HVAC emergency at
lease renewal letter arrives in the mail. Not good. It is critical
hand?” An intended perk has now become a slap in the face.
that perceived value by existing residents be at its highest level
Social activities should never be the meat and potatoes of when a rent increase awaits them in their mailbox.
a retention strategy. Think of them as gravy. On its own, it tastes
Look at your resident activity budget. Take a look at how
good but is not ultimately satisfying. You miss the meat and
much you are willing to spend on the second-to-last item
potatoes when they are not there. In fact, you wonder where
on your residents’ wish list. What if you re-allocated those
budgeted dollars to bring on a part time maintenance tech
Meat and potatoes consist of the residents’ ability to a.) for those heavy turnover months, with the sole purpose of
Communicate with your team quickly and easily, and b.) Get ensuring that service request resolution is not impacted by the
service requests resolved promptly the first time they report increased focus on make-readies? This allows service to remain
it. In fact, there is a direct correlation between residents’ at an all-important high, which has a significant impact when
outstanding maintenance issues and their likelihood to renew the resident gets that lease renewal letter.
their lease. The more outstanding issues on a property, the less
Once you are confident your basic service delivery is
likely the residents are to renew their lease.
performing at the highest level, then by all means bring on the
As we enter the lease expiration season, more vacant gravy! Until then, let’s serve up those meat and potatoes.
apartments mean more man hours for turnovers. The leasing
team is running at top speed and is therefore pressuring the
maintenance teams to hand over rent-ready apartments.
Jen Piccotti, VP Consulting Services,
This pressure means the focus is on turns, and yet the service
SatisFacts Research, www.SatisFacts.com and
requests from rent-paying residents don’t slow down. regular blogger at Multifamily Insiders (http://
In fact, this is also when A/C season hits, resulting in even
more work orders to compete for attention. The compounding
26 | TRENDS • JUNE 2011 www.aamdhq.org www.aamdhq.org JUNE 2011 • TRENDS | 27
How Are NAA / HMHC Defend GSE Multifamily
Potential Renters The Wall Street Journal published a
letter to the editor from NMHC Chairman
Peter Donovan on May 3. Donovan’s
subcommittee approved the United
States Covered Bond Act of 2011 (H.R.
940) by a voice vote on a bipartisan basis.
that receive a firm commitment from
HUD on or after September 1, 2011.
(Borrowers can request to use the older
letter responds to an April 21 Op-Ed It now moves to the full House Financial closing documents after September 1 if
by Peter Wallison, a senior fellow at the Services Committee. Comparable the FHA Commissioner agrees that using
American Enterprise Institute, which legislation has not been introduced in the new ones would cause financial
made the case for fully privatizing our the Senate; however, Senator Charles hardship.)
housing finance system. Schumer (D-NY) has indicated interest in
introducing a covered bonds bill. The revised closing documents reflect
NAA/NMHC’s response noted that extensive changes. Among the many
while the housing market should As mentioned in the March 22 AIMS changes, some key modifications include:
primarily rely on private capital, there Washington Update, some lawmakers expanding the definition of an eligible
is no question that for the foreseeable have focused on covered bonds, which borrower to allow a non-single-asset
future a private-market only solution is are heavily used in Europe, as a new entity in certain conditions; requiring
impractical for rental housing and will source of liquidity for the housing additional borrower liability; and
have serious detrimental consequences market. NAA/NMHC have expressed creating a two-tiered default structure.
for the 17 million Americans who rely support for the measure, but continue to Member firms that use FHA financing
on it. educate lawmakers that while covered are encouraged to review the revised
bonds could be a supplemental liquidity documents. Firms with applications
In related news, on May 2, NAA/ source, they are unlikely to provide the under consideration by FHA should
NMHC joined a coalition of 17 real estate capacity, flexibility or pricing superiority consult with their legal counsel.
organizations in running a full-page ad necessary to adequately replace any
in National Journal magazine outlining a of the U.S.’s traditional sources of For a limited time, the final
set of principles for GSE and multifamily multifamily mortgage credit. documents, as well as redlined versions
financing reform. While emphasizing showing changes made, are available on
the need to attract private money HUD’s Multifamily Closing Documents
back to mortgage finance markets, the web site. Eventually, they will be made
coalition also said “an appropriate and FHA Issues Final Multifamily Loan available in a fillable format on the
clearly defined role for the government is Closing Documents HUDclips website.
essential to preserving financial stability.”
After a two-year process involving
two rounds of comments by industry
stakeholders, on May 2, HUD published Lease-Accounting Rule Changes
Covered Bonds Bill Moves Forward new closing documents and regulatory Proposed
revisions for the FHA Multifamily Insured
Legislation to create a covered Loan Program (76 FR 24363). The new The Financial Accounting Standards
bonds market in the U.S. took one step documents must be used for mortgages Board (FASB) and the International
forward on May 3, when a key House
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28 | TRENDS • JUNE 2011 www.aamdhq.org www.aamdhq.org JUNE 2011 • TRENDS | 29
AIMS UPDATE (cont) AIMS UPDATE (cont)
Accounting Standards Board (IASB) be eligible for the domestic production upgrades. Our letter urges lawmakers On April 14, 170 members of Small Area FMR Pilot Program
continue to work on proposed lease- activities tax deduction. The deduction to instead establish a new tax credit to Congress signed a letter to EPA and
accounting rules that would have allows construction firms to deduct from address improved energy performance in the Corps expressing concern that any On April 20, HUD issued a notice
far-ranging consequences for apartment income nine percent of net receipts from existing buildings. The proposal calls for forthcoming guidance not become an soliciting metro areas to participate in a
firms. Under current law, leases are qualifying activities, such as renovating a sliding scale of tax incentives based on end-run around an official rulemaking demonstration program (76 FR 22122)
reflected on balance sheets as income
is received. Under the new proposed
and building property. demonstrable improvements in energy
performance relative to the building’s
process. EPA and the Corps have said
that they expect to initiate a rulemaking
to test setting fair market rents (FMR) for
the Section 8 voucher program at the ZIP
rules, for the first time, leases lasting
longer than 12 months (including
In a case adjudicated earlier this year,
the U.S. Tax Court held that construction
pre-renovation performance. We are
also asking Congress to make it possible
procedure sometime in the future. code level. Current FMRs are set at the
metro level, which means that few units
optional renewal periods) would have
to be placed on the balance sheet upon
firms that substantially renovated real
property are eligible for the domestic
for REITs, which have a limited ability
to benefit from tax incentives, to fully
FY 2011 Funding Maintains Section
qualify in high-cost neighborhoods within
metro areas. solutions
production activities tax deduction
If enacted, this change could have an
(Gibson & Associates v. Commissioner,
136 T.C. No. 10). The Court found that
participate in the incentive.
8 Voucher Funding By setting rents at the ZIP code
level, HUD hopes to create FMRs that
enormous impact on how multifamily
firms account for leases. First and
whether a renovation is considered
“substantial” turns on the question of EPA Issues Wetlands Guidance
On April 15, President Obama signed
a measure that will fund the government
more accurately reflect rents in specific
neighborhoods and to test whether
foremost, firms would have to modify
their lease management software to
whether: (1) the value of the property
increased materially; (2) the life of the On April 27, EPA and the U.S. Army
through September 30, 2011. While
funding for HUD programs was cut by
that expands neighborhood choice for
voucher holders. Metro areas interested in
Corps of Engineers issued a guidance
facilitate the new accounting treatment.
Second, firms would have to decide
property was significantly prolonged;
and/or (3) the property could be adapted document that sets forth the regulatory
an estimated $3 billion, the measure
did fully fund all the Section 8 vouchers
participating need to notify HUD by June 6;
final participants will be selected by July 1. residents
philosophy of the federal agencies currently in use and includes funds to
whether to use two different standards:
One for leases under a year and another
to a new use. The Tax Court’s decision
can be found here. that will support permitting decisions, cover project-based rental assistance and improve
for longer-term leases. enforcement and jurisdictional contracts. NAA’s Website: Your Resource for
determinations related to the Clean
Water Act (CWA). This latest guidance This is a significant victory in light
Comprehensive Information on Key your bottom
NAA/NMHC are closely monitoring
Building Energy-Efficiency Tax State and Local Issues
FASB/IASB’s action in this area. The
rules were originally set to be finalized Credits
supersedes earlier guidance issued in
2003 and 2008 that have been the source
of the significant funding cuts HUD
sustained. Maintaining full funding NAA’s Government Affairs offers
in June; however, FASB/IASB recently of ongoing litigation. of the voucher program will remain a members a compendium of key state
In a May 5 letter to Congress, NAA/ challenge, particularly since Congress
acknowledged that the deadline will NMHC joined a diverse group of more and local issues on NAA’s website. The • Robust credit, criminal,
not be met. Many observers believe At issue is what waters are subject to has indicated that it will be using FY 2008
than 80 stakeholders in urging Congress comprehensive, user-friendly section of
that the rules will be completed by regulation as wetlands under the scope funding levels as the basis for beginning the website includes contributions from eviction and
to add a new provision to the current of the CWA. Following Supreme Court the FY 2012 budget discussions.
December, but it is unlikely they will be energy tax incentive for energy-efficient NAA affiliates across the nation and the collections data on
made effective before 2013. Importantly, rulings raising the question, Congress has
buildings (Commercial Building Tax work of NAA Government Affairs staff. potential residents
although the Securities and Exchange unsuccessfully sought to clarify the issue
credit, Section 179(d)). As currently primarily by expanding the definition to Each issue is divided into three
Commission generally relies on FASB—a written, a property (new construction Section 8 Reform • Detailed reporting and
non-governmental body—to set include “all waters in the U.S.” NAA/NMHC sections: legislative resources, articles
or retrofit) must demonstrate a 50 and others oppose a broad expansion and reports, and maps and charts. searching nationwide
accounting standards, the SEC is the final percent improvement over a specific NAA/NMHC continue to press for
arbiter of any rules. of federal jurisdiction citing the fact that The resources include background
version of the building code to take meaningful reforms in the Section 8
states are in a better position to impose documents, legislative tracking • Flexible solutions based
advantage of the credit. Since the program. On March 17, Representative
additional regulations on “critical” waters. reports, model legislation, relevant
credit became available, however, it Absent legislation, however, property
Maxine Waters (D-CA) reintroduced on your leasing rules
voucher reform legislation (H.R. 1209) news developments, NAA reports and
Potential Tax Deduction for has proven exceedingly difficult for owners and developers remain trapped statutory reviews.
Substantial Rehab Projects building retrofits to meet these high in a system that requires one-off review
which failed to pass in the last Congress. • Fast, accurate and easy
performance standards. Thus, the The bill would make numerous program
by federal agencies of any development Currently, nine issue categories are to read results
Member firms conducting substantial credit is failing to provide the intended changes long supported by NAA/NMHC,
that could potentially be determined to available:
rehabs should be aware that they may incentive for efficient building system including streamlining the inspection
contain a wetland. • Bed bugs
process, simplifying rent determinations
• Building codes and standards
and income reviews, establishing a more
• Fair housing
reliable annual funding formula and
Let us help your company, group or club providing for additional vouchers.
Get Noticed! It also includes a provision we oppose • Landlord/tenant
Call today for that would extend a temporary provision • Licensing Your local
enacted in 2009 that requires the new • Rent control
Custom Embroidered Apparel, Uniforms, Workwear,
Screen Printing, & Advertising Promotional Products owners who purchase a foreclosed • Water billing account rep:
property to assume any existing Section
This resource is a work in progress and
8 housing assistance payment contracts.
more issue categories will be added in Tim Kosty
Reform efforts may be helped by the fact
the coming months. If you have an issue
that the Section 8 program consumes
you would like added, please contact 303.217.1894
such a large portion of the overall HUD
Phone 303-410-0005 • Fax 303-410-9420 Government Affairs. Your feedback is Tim.Kosty@lexisnexis.com
budget and reform could produce
firstname.lastname@example.org important, so please check it out— www.
significant cost savings.
11187 Sheridan Blvd., Unit 9 • Westminster, CO 80020 and let us know what you think.
30 | TRENDS • JUNE 2011 www.aamdhq.org www.aamdhq.org JUNE 2011 • TRENDS | 31
WELCOME NEW MEMBERS
Owners DELINTZ Dryer vent & Air Duct
ADVERTISING DIRECTORY Cleaning
Thank you to the following companies for their BLDG Management Co., LLC Mark Welhouse
continued support of Apartment Trends. Darren Everett 773 County Road 19
3033 E. 1st Avenue, Suite 501 Brighton, CO 80603
Denver, CO 80206 Ph: (303) 655-0600
Ph: (303) 773-3400 F: (303) 655-0601
ABC Apartment Solutions 6
F: (303) 674-6445 email@example.com
Units: 81 www.delintzcolorado.com
Alliance Insurance Group 26
King Realty Holdings, LLC Elite Electronics
Angelo & Sons 20 James King Mark Martindale
P.O. Box 44218, 3921 E. 120th Avenue
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Ph: (562) 208-7649 Ph: (720) 239-1290
Units: 7 F: (888) 455-9485
Apartment Flags by Susan 30
Apartments Etc. Inside Front Optimum Networking
Meeker, CO 81641 Jonathan Defez
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Colorado Asphalt Services 26 SRIE4@msn.com Ph: (720) 248-3580
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Community Interiors 3, 21
Cort Furniture Rental 2 Ian Andrews
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Executive Coatings 17 www.allroofingserviceco.com Renewal Restoration Inc.
Altitude Insurance Agency 4985 Ironton Street, #200
For Rent Media Solutions 28 Denver, CO 80239
10955 Westmoor Dr., Suite 400, Ph: (303) 693-5663
Integrity Electrical 19 Westminster, CO 80021 F: (303) 693-5664
Ph: (303) 379-1187 www.renewalrestoration.com
Invisible Waste 24 F: (303) 379-2130
www.altitudeinsuranceagency.com Revenue Source Group
BYE BYE BedBugs 112 29th Avenue South
Ronda Dupont Nashville, TN 37212
Mac-Gray 16 Ph: (303) 623-5756
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The Poo Crew 30
Ph: (303) 917-2859
F: (303) 485-6498
Push Petal Pull 12 BBBedbugs@Ad.com
Royal Finish Back Cover
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32 | TRENDS • JUNE 2011 www.aamdhq.org
Apartment Association of Metro Denver
3773 Cherry Creek North Dr. , Suite 1001
Denver, Colorado 80209
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