Journal of Property Management July/August 2021 Vol. 86, No. 4

A deep dive into budget forecasting

Invaluable predictions

› Managing distressed properties › Tokyo prepares to host the Olympics › A preview of the 2021 IREM Global Summit in Las Vegas For those who manage to make a difference.™

Contents July/August 2021

Features 06 06 From struggling to prospering By Regina Mullins, CPM, CCIM

12 Invaluable predictions By Salvatore Dragone, CPM, ARM, CCIM

18 Rural spotlight By Barbara Jaco, CPM

24 Together we thrive: 2021 IREM Global Summit By Lucinda Lilley, CPM, CAPS, GRI Sustainability certification for your entire portfolio 04 Departments The IREM® CSP Volume Program allows Why certify your property? Dashboard 28 Global practices you to certify the environmentally- Hotel reuse, tips for retaining talent, and the growth of discount stores friendly conventional and medical office • Get recognized as a sustainable property by IREM. buildings, multifamily and senior housing • Get credit for portfolio-level sustainability 30 Technology communities, and shopping centers in programs and gain access to customized your portfolio. You can also obtain a certification materials 32 IREM Foundation gap analysis on corporate sustainability • Enhance external sustainability reporting, such as programs through the Volume Program programs like GRESB, CDP, and RobecoSAM CSA, enrollment process, which results in for your company or clients 34 Committee central streamlined CSP applications for you and your team. 32

REM-016 36 New certifications To learn more and enroll, visit irem.org/csp-volume-program.

Cover image: iStock.com/Drazen_ irem.org/jpm | | 1 President’s letter

Welcome to the July/August edition fundamentals remain the same. In the feature on P18, IREM July.August 2021 / Vol. 86, No. 4 of JPM! In this issue, we’re going to Federal Housing Administration Board Member Barbara start off with a quick refresher of Jaco, CPM, highlights these differences and similarities the fundamentals. As professional as she shares her passion for managing affordable rural

President | W.A. “Chip” Watts IV, CPM, CCIM real estate managers, we are driven housing in the U.S.

President-Elect | Barry Blanton, CPM to meet the goals and objectives of the property owner. That’s Real One of the advantages of holding IREM certification is the Secretary/Treasurer | Renee M. Savage, CPM, CCIM Estate Management 101, right? level of professionalism that the designations signify: There CEO/Executive Vice President Denise Leduc-Froemming, CAE, MBA, CPA | [email protected] But how do we do it? Throughout is no way to earn certification without first meeting strict

Vice President, Knowledge Solutions this issue, we’ll explore ways that requirements in the areas of education and experience and Wendy Becker, J.D. | [email protected] Chip Watts, CPM, CCIM property managers can meet and pledging to adhere to a code of professional ethics. This Vice President, Marketing and Business Development exceed owners’ goals and expectations, as well as identify unwavering commitment Donna August | [email protected] new opportunities to drive value. to professionalism is Production Manager supported by IREM’s Jared Kimball | [email protected] The theme of this edition is financial management. In Membership & Director, Corporate Business Development/Advertising Sales We can observe Brian Lozell, CPM | [email protected] addition to managing the physical site, one of our primary Credentialing Committee. responsibilities is to apply financial controls to manage The committee ensures an emerging JPM®, Journal of Property Management (JPM® ISSN 0022-3905) is published funds and accounts. And whether math was our favorite we remain aligned with trend of real bimonthly by the Institute of Real Estate Management, 430 N. Michigan Ave., subject in school, excelling in our profession means being the times and places Chicago, IL 60611. Internet: www.irem.org. This publication is provided as a estate managers medium for the expression of individual opinion concerning management in which we’re living practices and procedures. The articles and advertisements printed herein good with numbers. In fact, we can observe an emerging do not necessarily represent the endorsement of the Institute of Real Estate trend of real estate managers increasingly taking on asset and managing. In the increasingly Management or of the majority of its members excepting such statements that are so designated. The editors exercise only a general supervision of the material and management functions, further expanding their toolkits. Committee Central column assume no responsibility for claims made in advertisements or for opinions and taking on asset ® statements expressed in articles. on P34, you can read how management IREM Skills ® ® ® ® IREM , Certified Property Manager , CPM , Accredited Residential Manager , With each beautiful summer day that passes, we move IREM’s Membership & ARM®, Accredited Management Organization®, AMO®, Income/Expense Analysis®, ® ® ® functions, further On-demand Courses Expense Analysis , MPSA , and JPM are registered marks of the Institute of a little closer to everyone’s favorite time of year: budget Credentialing Committee Real Estate Management. season! All kidding aside, the administrative operation continues to move our expanding their Reprints: Material in this publication may not be reproduced in any form without written permission of the publisher. For volume reprints or e-prints, and maintenance of properties are just a couple of the organization closer to the toolkits. email [email protected]. many ways we meet the goals and objectives of property more “normal” end of our Copyright ©2021 by the Institute of Real Estate Management. All rights reserved. Periodical postage paid at Chicago, Illinois, and at additional owners. Successful real estate management involves new normal. mailing offices. Subscription rates: $62.95 for one year; single copy $8.53. Remittances, undeliverable copies, and subscription orders should be sent to diligently planning a property’s future by developing and the JPM® offices. implementing operational and fiscal programs to enhance Last year we switched gears and entered a whole new world Build property management ® Postmaster: Send address changes to JPM , Journal of Property Management, the asset’s value. Join Sal Dragone, CPM, ARM, CCIM, as of remote gatherings when the 2020 IREM Global Summit Fifth Floor: 430 N. Michigan Ave. Chicago, IL 60611. Printed in U.S.A. skills and get up to date on he takes us on a deep dive into the world of budget became the 2020 Virtual IREM Summit. This year, we’re Institute of Real Estate Management Diversity Statement | IREM practices diversity. We are an inclusive organization that embraces and values differences forecasting on P12. back in person as we head to the desert oasis of Las Vegas emerging topics in as little as and welcomes individuals of all races, genders, creeds, ages, sexual orientations, gender identities, and national origins and individuals with disabilities, providing for the 2021 IREM Global Summit. Read all the exciting an hour. an equal opportunity environment among its members, vendors, and staff. Bringing to life the untapped potential of a struggling details for this year’s Summit on P24. I look forward to Institute of Real Estate Management Sustainability Statement | property can also be an exciting and rewarding seeing you there! The Institute of Real Estate Management (IREM) is dedicated to supporting real estate management strategies that advance an environmentally sustainable opportunity to drive value. Last summer, IREM launched and economically prosperous future. a new certificate program on how to manage distressed Until Vegas, I’ll catch up with y’all in the next issue of JPM! properties. In our feature on P6, instructor Regina Mullins, iit ire.orondeand to lern CPM, CCIM, explores the unique circumstances that go into ore n reiter toy managing these often-misunderstood assets.

Around the world, IREM members manage different types of assets in different geographies. Managing a residential building in a city center may require a different approach Publication Management W.A. “Chip” Watts IV, CPM, CCIM 847-205-3000 | glcdelivers.com than managing a property in a more rural setting, yet the IREM President

irem.org/jpm | | 3 dashboard Retaining Hotels reimagined talent Strength of Because of the demands of the the dollar An undersupply of housing and high hotel vacancy rates have property management profession, made multifamily housing an obvious reuse of hotel and motel the field is no stranger to While some space. According to a recent National Association of Realtors employee turnover. According

(NAR) report reflecting projects that its members were involved to figures from the National iStock.com/NicolasMcComber Image: retail chains with, of the 187 hotel or motel conversions Apartment Association, the from 2018–2020, 60% were redeveloped annual turnover rate of multifamily employees stands at 33%, continue to as market-rate multifamily housing, Other conversions were higher than the average national rate of 22% across all industries. workforce housing, housing for for health facilities, such For employers, turnover can be stressful, time consuming, and struggle, veterans, or housing for healthcare as hospitals or quarantine expensive. AppFolio interviewed various real estate experts about discount stores workers. How about the rest of those facilities, retail establishments, how to make employees happy and retain your best talent. hotels? Around 12% of the conversions industrial use, or, in some • Identify what motivates them. Beyond salary and benefits, get to in the U.S. were for homeless shelters, 11% were cases, the structures were even know your employees individually to see what makes them feel for senior housing or assisted living, and converted into ranch land or valued and seen, such as praising them publicly or giving them are thriving. 8% were for student housing. other types of developments. a few extra hours off work for priorities in their personal life. • Be a mentor. Take time to get to know about each of your Nearly half employees’ career goals, and see what guidance they need from you. • Adapt to changing expectations. Learn more about generational of the 3,597 differences. Millennials and Gen Z employees may value different things than Gen Xers. large retail • Let them be heard. Prioritize open and effective communication chain store so that issues are caught early and motivation remains high. • Prevent burnout. Property managers have a never-ending openings

Image: iStock.com/Julia Garan iStock.com/Julia Image: to-do list. Invest in these employees by offering professional Source: National Association of Realtors, “Case Studies on Repurposing Hotels/Motels into Multifamily Housing” development to help them meet the needs of the day-to-day in announced an effective and healthy way. this year are Sublease slowdown Source: AppFolio, “Five ways to boost employee retention in property management” “As long as retail tenants for Dollar Compared to 2020, sublease space is entering Securing leases General, Dollar are willing to change the office market this year at a much In real estate, few topics are more top-of-mind than lease and adapt to the slower rate, according to a new report from securitization. For expert advice, IREM's “From the Front Lines“ Tree, and podcast team talked with Marissa Limsiaco, co-founder and president new buying habits of Cushman & Wakefield. of financial services company Otso. The episode covers issues like risk Family Dollar and reward in the post-COVID-19 world, how landlords can mitigate stores, the Americans, the right About 11.7 million square feet of vacant the risks, and maintaining existing tenancies. retail will not die. sublease space was listed in the first quarter latest figures “Real estate is pretty simple, right? It’s filling up that of this year. This was a decrease from the People want to have space, and what are you doing to fill up from Coresight 16.4 million square feet of subleasable space Listen To a shopping that space? Sometimes I think you get lost to the Research show. read added in the fourth quarter of 2020, and an in the Excel sheet and, at the end of the whole interview more of Mindy’s even steeper decrease from the 19.4 million experience.” day, you forget that the most important at irem.org/ Source: CNN, “Nearly 1 in 3 new —Mindy Gronbeck, CPM, IREM insights, visit square feet in the third quarter. learning/ stores opening in the US is a Dollar General.” senior vice president the IREM blog. thing is having that tenant occupy that from-the- Source: GlobeSt.com, “The rate of sublease space entering the market is slowing.” space,” Limsiaco says during the episode. front-lines.

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Property managers can stabilize distressed From struggling to properties and turn them into high-value assets. By Regina Mullins, CPM, CCIM prospering

Managing distressed properties can be rewarding for a dedicated and professional real estate manager who seeks a challenge. No one-size-fits-all solution exists, so the manager’s role never becomes stale. Each asset is unique, and every aspect of that asset’s operations, including marketing, leasing, staffing, and financing, needs to be reviewed, analyzed, and coordinated with the owner. Image: iStock.com/scanrail Image:

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be in a location with poor visibility, or a multifamily • Accountants property may have only studio and one-bedroom units in a • Appraisers multigenerational neighborhood. An asset that was properly • Brokers designed for the market when developed can become • Vendors obsolete as users’ needs and preferences change and new • Local government officials trends and amenities are introduced. (economic development offices and real estate tax authorities) Properties that are neglected and poorly maintained, with • Local judges excessive deferred maintenance, or those where customer • Developers service to their tenants/residents is considered a low priority, will lose their ability to compete in the market. “If a real estate manager or “Sometimes owners get in a situation where deferred management firm wants to get Properties maintenance was much more than anticipated,” Forsyth involved in managing distressed says, “causing the property to become distressed.” properties, I’d recommend can become getting in touch with financial distressed by Assets can also become distressed when the property has institutions, banks, and being either a large debt service and experiences difficulty in making mortgage lenders,” John Hatton, loan payments, with the NOI declining due to drops in CPM says. “I’d also consider over- or under- rental rates and/or unexpected vacancies. “Properties can attorneys who specialize in leveraged. become distressed by being either over- or under-leveraged,” distressed real estate.” —Richard Forsyth, Forsyth adds. CPM, CCIM Owners of distressed Potential indicators of difficulties that may signal an properties Image: iStock.com/sl-f Image: asset’s decline include job layoffs, plant closings, retail Distressed properties can have several store closings, and a slowdown in the sales of single- types of owners. They could include One aspect that all distressed properties have family homes. From a real estate management viewpoint, the existing owner of the asset, the in common is the planning process necessary indicators may include higher vacancy rates, a slowdown existing owner and a representative to turn them around. A distressed property Some distressed properties have in rent collections, and unexpected move-outs and/or of the owner’s lender, just the lender requires a comprehensive management plan inherent flaws in their original evictions. Construction of new properties may be put (in the case of either a deed in lieu that will address all the challenges inherent on hold or cancelled. of foreclosure or an uncontested in transforming the property into a viable product concepts or designs. A foreclosure), court-appointed investment for its owners and a valued asset multifamily property may have only Managing distressed properties receiverships, or investors seeking to to the community. Regardless of the various reasons that lead to properties buy distressed properties and turn studio and one-bedroom units in a becoming distressed, qualified real estate managers can be them around for a profit. What is a distressed property? multigenerational neighborhood. assigned the responsibility of developing a plan to restore Distressed properties often result from a these assets to financial stability. Effective and open communication downturn in the real estate market or an is critical for owners of distressed economic recession. One example is the 2008- There is opportunity in managing distressed properties. properties, who can be challenging 2009 financial crisis. “There was an oversupply of product,” Properties also become distressed when they are developed Owners are looking for seasoned real estate management clients. “Highly leveraged properties Richard Forsyth, CPM, CCIM, explains. “Leasing activity in neighborhoods with insufficient demand, the wrong professionals to offer solutions and provide value in the in a down market are particularly declined. Developers and investors couldn’t meet their demographics to support them, or when the property’s midst of challenging circumstances. The professionalism, difficult,” Forsyth says. “Owners debt obligations, which led to lender foreclosures—and design does not meet the needs of the intended users. attitude, and education that these property managers want to reduce operating expenses, receivership business for property management professionals.” Developers will often use the land they own to develop display may end up being the deciding factors that position including property management fees, buildings because of easy access to financing, rather them for success in managing distressed properties. and defer needed maintenance in Even when the economy is thriving, there are other reasons than because of validated demand for the proposed order to preserve some cash flow.” that a property can be classified as distressed. Overbuilding improvements and diligent rental surveys. Experts in managing distressed properties have a large can still prevent some properties from achieving lease-up network for sources of business opportunities. This network Creating a plan and identifying projections, and they may become nonconforming with the Some distressed properties have inherent flaws in their to source management opportunities for distressed the problem parameters of their financing agreements. This could result original product concepts or designs. For example, an properties may include First, you need a multidisciplinary in the buildings becoming distressed properties, with a risk office building in an up-and-coming neighborhood may • Local real estate attorneys team to address various elements of of takeover by their lenders. have the wrong size floor plates, a shopping center may • Commercial loan officers a property’s construction, operation,

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marketing, and overall market some challenges? How are the amenities and parking at the results that can be achieved with per window was 30 minutes. By utilizing conditions. This group will also help the property? Are operational policies and procedures in such a plan. A 19-story office building this method versus the traditional window define what actions are needed to place and being followed? Is the staffing adequate—too built in 1974 was acquired by a large replacement method, a savings of $5 million achieve the owner’s goals. The team many or too few? Does the property have a leasing plan institutional company in 2016. was achieved. Since making the upgrade, could involve an internal operations in place? The occupancy was 52% with energy costs have been reduced by $0.60 per squad of architects, contractors, seven tenants. Very few upgrades square foot. consultants, leasing brokers, and Once these questions have been answered, it’s time to had been completed. The property mortgage brokers. tackle the ownership and financial issues. These can include had a 550-space garage attached Restroom and floor elevator lobbies were the • Lack of operating capital to the building with elevator next issue to tackle. The action plan outlined the A real estate manager will begin the • Diversion of cash flow transportation to all levels. Windows completion of four floors per year. The number planning process for the distressed • Lack of clear directions were the original single-pane glass of restrooms and lobbies renovated increased property by defining the problem. • High tenant delinquencies installed during construction, which during the COVID-19 pandemic, as most tenants The next There may be more than one challenge. • Below-market rent affected the energy efficiency of were working remotely. The fitness center and few years It could be that inadequate cash flow • High operating expenses the property. The roof was 22 years its equipment have been upgraded. A conference might be the result of low occupancy. • Inadequate cash flow old, and none of the restrooms had center has been added, along with a tenant will be huge. Upon further • Reduced market value of property been renovated. The property had socializing area. The roof was also replaced, Landlords investigation, the low • Overpayment for existing asset enough cash flow to pay all operating as major leaks were developing. Even all the haven’t been occupancy could be • High interest rate on debt expenses with some money for elevator cabs have been renovated. collecting With a forward- due to deferred distribution to ownership. maintenance that Once the issues have been identified, prioritization becomes Initial asking rents were $36/sf, while the rents, so thinking owner has resulted in poor key to beginning a path back toward meeting the owner’s An action plan was created, and market rents were $42/sf. After all the there will be and a team of curb appeal or even goals. It doesn’t make sense to prioritize addressing an implementation began in earnest improvements, current asking rents are mortgage professionals, poor visibility of issue that will have little or no impact in achieving in 2017. The garage was updated $44/sf. Although the COVID-19 pandemic the property. financial stability. with paint, signage, new elevator slowed some of the leasing progress, current defaults. much can be lobbies, new insulation, and asbestos occupancy is expected to be at 83% by the end —John Hatton, CPM accomplished, Are the challenges The seasoned professional will concentrate resources— abatement. In addition, a new pathway of 2021. Turnaround of the distressed property related to physical money, effort, and time—on those issues that will make was created to enhance the route into is well underway. and a distressed issues? Are they the biggest impact on the distressed property. Physical the building. property can be structural or and operational problems may be the quickest and easiest With a forward-thinking owner and a team of professionals, design issues? issues to resolve, provided cash is available for the action At the same time, the second entry much can be accomplished, and a distressed property can turned into a Environmental issues items. However, money must be spent wisely to achieve from a plaza at the fifth-floor entry be turned into a viable, stabilized investment. It takes time, viable, stabilized such as asbestos or the greatest return on the investment. Management was created with pavers, landscaping, money, patience, and a group of visionaries. mold can cause major and leasing issues can involve an assessment of the and outdoor furniture. The following investment. challenges. Is a poor effectiveness of the staffing in place, marketing programs, year, the fifth-floor elevator lobby If you’re up for the challenge, there will always be tenant mix creating and other areas. was renovated with glass, stone, opportunities to manage distressed properties. Those and marble flooring. This renovation opportunities will only grow amidst the long-term recovery Ownership questions are best discussed eliminated an awkward entry that from the impacts of the COVID-19 pandemic. “The next few in one-on-one meetings, which can in turn included stairs and one broken years will be huge,” Hatton says. “Landlords haven’t been become an opportunity for the manager door. There is now a revolving door collecting rents, so there will be mortgage defaults.” to discover previously unknown issues. with two side entry doors for Financial issues may involve negotiating handicap entry. While the economic circumstances accompanying this with the lender to seek mortgage category of opportunity are unfortunate, real estate forbearance or a temporary loan adjustment. Window replacement was of the managers who excel at communication, work well with a This could allow time for filling vacancies utmost concern. Ownership did diversified team, possess the ability to analyze a problem, or increasing property cash flow so that the not want to inconvenience existing and make a game plan are in a position to benefit from property can meet debt service coverage or tenants with long-term moves. A taking on the challenge. any other requirements of the lender. new product was located that could be installed on the interior without Regina Mullins, CPM, CCIM, is a director at Cushman & Wakefield, Making the case utilizing scaffolding on the exterior AMO, in the D.C. metro area and served as IREM president in 2008. The following is an example of a distressed and without removal of the original In addition to leading courses as an IREM instructor, she is also a

Image: iStock.com/Rossella De Berti iStock.com/Rossella Image: property with an action plan outlined and windows. Average replacement time director of the IREM Foundation.

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Invaluable iStock.com/SARINYAPINNGAM Image: Each year, we as real estate managers spend countless hours perfecting our budgets for the coming year. We pour over contracts and leasing projections, trying to estimate material costs and staffing needs. predictions For the most part, the results are A deep dive into budget forecasting straightforward and respectable, but then the inevitable happens: real life. By Salvatore Dragone, CPM, ARM, CCIM

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In 2020, real life became somewhat based on a variety of factors such as leases in place, future method will result in expenses. Applying a percentage to unreal, and most budgets weren’t absorption, economic climate, inflation, general services, a competent budget, those expenses for future years isn’t worth the paper they were written on. taxes, and financing. Over the years, or at least the recommended, as the expense likely But not every year is like 2020. I have estimated beginning of one. won’t reoccur. In other years, a bad winter or hot “If I had to pick one line item that new managers summer can wreak havoc on any struggle with when it comes to budget forecasting,” that projects run In either situation, A better option is to look at historical budget. When you encounter such Wendy Dutenhoeffer, CPM, says, “it‘s understanding about $0.15/sf. I always perform data based on a grouping of projects a year, as we all did in 2020, you the revenue line items and how vacancies, concessions, the calculation and instead of a particular line item. For quickly understand why forecasting— escalations, other income, and lease renewal dates factor I use this then step back to example, I oversee the management of and reforecasting—your budget into the correct calculations for budgeted revenue.” information to compare the entire about 15 million square feet of office is an important aspect of any forecast to prior space. Over the years, I have estimated well-run property. Jay Kacirk, CPM Emeritus, CCAM, with Eugene Burger better gauge periods. This is that projects run about $0.15/sf. I Management Corporation, sees new managers struggle the number of how we can see the use this information to better gauge First, the basics with expense considerations. “Areas related to budgeted projects that I big picture. Simply the number of projects that I can We’ll start with the terms. maintenance are a challenge for many. This usually applying percentage accomplish in any given year. I also improves with time as you get to know a property, but can accomplish increases or know that it represents about 2% of A forecast is typically associated with a new manager doesn‘t always have that perspective.” in any given year. decreases may seem my operating expense budget—a good the first attempt of predicting income reasonable based metric to remember. If during the year and expenses based on historical or Assuming historical information is available, the first on a trend at the my expenses begin to trend higher or known data of a specific property steps typically are to look back 12 to 24 months and account level, but lower, the number of projects can help or budget. A reforecast is typically begin the process of evaluating past expenses to forecast sometimes when everything is added up, the results are me bring a budget back in line. associated with updating the forecast future expenses. This can be done by using methods such skewed. “Budgeting requires both a view from 10,000 feet, for the same specific property or as percentage trending. With this method, you analyze or big picture, and one from ground level, in the weeds,” Now that your budget is done, and budget. My experience has been the year-over-year or period-over-period increases and/ Dutenhoeffer says. “If new budget managers fail to look you have forecast the expenses for that most managers use the term or decreases in certain expenses. Having identified the from both altitudes, they cannot clearly see where they are the coming year, your job is done, “forecast” when creating budgets and “trend” in these changes, you can then apply it as either a going.” right? Of course not, you’re a property “reforecast” when projecting a budget’s percentage or whole number to future periods of the same manager—the job is never done. Over changes over the course of a year or corresponding length. Many repairs and maintenance items are one-time projects the next few months (typically on a other time period. or at least not completed annually. One example is electrical quarterly basis), you should perform Examples of line items where this method is effective infrared testing, which is generally completed every three to a reforecast of your budget to ensure The first time that a manager may be include property taxes, landscaping, fire protection, and five years. Your historical expenses may have one-time large your management efforts are resulting required to forecast is when they’re other non-occupancy-related expenses. If these expenses projects, such as seal coating a parking lot or renovating a in income and expenses representative creating a budget for any future have increased by 2% on average over prior years, then cooling tower. A very snowy winter may also create anomalous of your original budget. period. While the term “zero-based it would be reasonable to assume that the trend would budgeting” can sound smart or clean, continue. You can inflate current-year expenses by 2% to the reality is that almost nothing is create a future-year budget. zero-based. At a minimum, you’ll have pricing for services in place If these expenses are related to occupancy, there will be that you’d most surely rely upon. some variability, and extracting simple trend lines will Still, when creating a budget, you’re not work. For example, suite cleaning, utilities, and even forecasting income and expenses management fees involve other factors that will affect their future values. Simply applying a percentage increase could result in a significant under- or over-forecasting If I had to pick one line item that of expenses. new managers struggle with when In this case, apply a percentage it comes to budget forecasting, it's multiplier to base costs, and then calculate a variable amount related to understanding the revenue line occupancy. When taken together with

items. —Wendy Dutenhoeffer, CPM leasing absorption assumptions, this iStock.com/PeopleImages Image:

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original budget, it is a beginning, and any results should “Communicate regularly next year. Most tenants close their be communicated to the ownership as part of your regular with your clients about books on Dec. 31, and unless they Considering that projects updates. No matter what reforecast you’re creating, you’ll these variances, and get anticipated a year-end reconciliation, typically require higher cash need to pay particular attention to leasing and occupancy, them to understand the they will not have accrued for it. When as they will greatly influence many of your expenses, need to fund important they get that big bill, they are not too needs or capital, planning and particularly management fees and utilities, which can make projects. That may mean happy. In most cases, they will have to executing them is critical to up as much as 30% of your overall expenses. capital contributions in find the money in their current year some cases, which property budget, taking away from some other cash flow projections. Stage 2: Second-quarter reforecast managers generally don‘t planned expenses. Giving your tenants The next milestone, and a very important one, is the second- like to ask for, but it is an a heads-up may seem hard at first, quarter reforecast. For many, this is the basis of next year’s important aspect of the but trust me when I tell you, it is a lot We can break this process down into budget. Unlike the first-quarter go-round, this reforecast The key is job when necessary for better than surprising them later. four stages. should be considered a “hard“ reforecast. communication. the preservation of the asset or for stabilizing an Stage 4: Year-end reconciliation Stage 1: First-quarter reforecast I require my managers to not only reforecast income and all When emergency investment‘s performance The year-end reconciliation is no I call this the “soft” reforecast, as expenses, but to submit a full-blown report. Time is set aside situations or over time.” longer a forecast or reforecast, it’s early in the year and you have with ownership to dive deep into the forecasted income and any unbudgeted but rather the final stage in your only limited information. “The first- expenses to ensure we’re on track, make decisions that will Other frequently forecasting or reforecasting exercise. quarter reforecast is always the most get us back on track, or simply approve any large variances. expenses arise, overlooked items with It’s the scorecard for the work that challenging since there is not a lot notify your great cash-flow was done throughout the year, both in of history for the current year,” says Those large variances can lead to difficult conversations owner as soon as consequences are tenant operating and adjusting your income Lynne Miller, CPM, RPA, LEED AP with owners. “Be prepared, do your research, review the possible to avoid improvements and leasing and expense projections. If you stayed O+M, with Charles Dunn Real Estate numbers, and consider the effect of alternatives,” Miller says. commissions, specifically on top of your income and expenses, Services. “In addition, unanticipated “The key is communication. When emergency situations or surprises. when the latter are your year-end actuals shouldn’t be increases might occur, but notices of any unbudgeted expenses arise, notify your owner as soon scheduled to be paid out. a surprise for your ownership, your — Lynne Miller, CPM, RPA, the increases might not be provided as possible to avoid surprises.” LEED AP O+M, Charles Dunn tenants, or yourself. until later in the year.” Real Estate Services We use the current year Particular attention is given to operating projects and capital budget and second- In the end, forecasting and The key to the first-quarter reforecast projects. The second-quarter reforecast is critical in deciding quarter reforecast as benchmarks for the future budget reforecasting your budget is a critical is to set yourself up for the remainder whether remaining projects are still feasible or must be (for example, 2021 budget vs. 2021 reforecast vs. 2022 part of managing your property, along of the year, allowing you to easily pushed to the next year. Doing an analysis of whether you budget). Over the course of the next few months, the with your stakeholders’ expectations. update the actuals, while reforecasting can complete projects is frequently overlooked. Projects can reforecast and the next period’s budget are updated A diligent process builds confidence in the remaining months of the year. take time to develop and, in many cases, are delayed due to simultaneously, ultimately resulting in a new budget and your relationships with ownership and It’s probably been about six months outside forces, such as material costs or lack of labor. the third-quarter reforecast. your tenants, allowing you to make since you created the budget. By now, Considering that projects typically require higher cash needs proactive adjustments rather than although the picture isn’t entirely clear, or capital, planning and executing them is critical to cash Stage 3: Third-quarter budget reactive excuses. you should have a better handle on flow projections. The third-quarter reforecast and the months following leasing and other income generators. it are critical for a few reasons. First, it’s your last chance Salvatore Dragone, CPM, ARM, CCIM, You may want to make a case with your owner for moving to make changes before the end of the year. It’s also your is the senior vice president and director While this exercise may not result in a forward on some projects, “even when net operating last chance to communicate to ownership any anticipated of property management for Rubenstein reforecast greatly different from your income is significantly lower than budgeted,” says Kacirk. variances that may greatly affect cash flow. Finally, it’s Partners in Philadelphia. In addition to your last chance to communicate any large variances serving IREM as both a course instructor to your commercial tenants in preparation for the and webinar presenter, he is on the board of year-end reconciliation. directors of BOMA Areas related to budgeted maintenance are a challenge Philadelphia and is For me, the ability to communicate with my commercial an adjunct instructor for many. This usually improves with time as you get to tenants any anticipated year-end reconciliation is critical at Drexel University, know a property, but a new manager doesn‘t always have in ensuring strong landlord-tenant relationships. There where he sits on that perspective. are not many things worse than having to tell a tenant that the Real Estate they owe a substantial amount of year-end reconciliation and Development —Jay Kacirk, CPM Emeritus, CCAM, Eugene Burger Management Corporation payments when we’re already two or three months into the Advisory Board.

| | 16 | ® | July.Aug 2021 irem.org/jpm 17 feature | rural housing What’s at stake for these affordable housing communities across America Rural By Barbara Jaco, CPM

Social gatherings spotlight can be awkward, even for extroverts. When I meet someone new, the topic of what we each do for a living is the question that follows the formal introduction. When asked, I respond with a large enthusiastic smile: “I manage affordable housing in rural areas across the Southeast!” Next comes the predictable pregnant pause, the head tilt, and the forced smile.

I am familiar with the preconceived notions that people have when they picture affordable housing. While they usually envision the distinctly urban housing projects that for many years represented the public’s idea of what public affordable housing looked like, I am proud to educate them on the wonders of rural affordable housing and the many unique characteristics of these homes. Most of my adult life has been spent developing and managing these communities, and I am passionate about the government programs that make them possible.

Our properties are special and home to amazing people with unique life stories. My career has

been dedicated to the management iStock.com/georgeclerk Image:

| | 18 | ® | July.Aug 2021 irem.org/jpm 19 feature | rural housing

and ownership of such affordable mortgages made in the 1960s with their expiring terms? • Transfer ownership (which communities, with a heavy emphasis An increase in rents and a displacement of residents. In the then obtains amortized on one housing program: Farmers 1980s, owners of Section 515 loans started prepaying their financing) Home Administration Section 515, mortgages, converted their communities to market-rate • Recapitalize with additional now known as the USDA Office of housing, and were no longer restricted to the RD rules and and/or refinanced debt from Rural Development (RD). RD 515 regulations. By the 1990s and into the 2000s, properties were a new lender is among the few rental housing clearly showing their age and needed funds for renovation. • Foreclosure production programs specific to rural communities. To understand Realizing the affordable housing crisis was only getting worse, Past, present, future America’s affordable rural housing federal agencies including RD contended with owners to The Housing Assistance Council communities in 2021, we first must stop mortgage payoffs. Owners fought back through filing performed a study in 2018 that look at their history. lawsuits. While these owners did not have their prepayment estimated that by the year 2027, rights restored, a 9–0 ruling by the U.S. Supreme Court stated 815 properties and 20,000 units Deep roots that Congress had abrogated the contracts that had been will leave the program due to In 1946, following the effects of The signed by the government and owners (Franconia Associates v. maturing mortgages. After Great Depression, the Farmers Home United States). Owners could sue for damages to seek monies 2027, maturities will continue, Administration (FmHA) was approved that they could have received if the properties had been sold. putting another 93,000 units by Congress as a financing tool Properties with RD 515 mortgages prior to Dec. 15, 1989 were at risk. designed to reestablish self-sufficiency. determined eligible for mortgage prepayment, leaving the The FmHA was renamed several existing housing stock at risk of rapid loss. While Section 515 has financed times before becoming USDA Rural over 533,000 units across Woodside — Bishopville, SC

Development (RD). In the 1960s, the Adaptative response 28,000 properties since its Management Boyd Image: War on Poverty brought In the late 1980s, stakeholders joined forces to preserve inception, its current portfolio about new ideas on how affordable and subsidized housing for low-income households has shrunk to just 13,000 properties. Tenants living within the residents and/or community, the owner then has to provide housing for by utilizing available refinancing structures and the Low- these properties are some of the most vulnerable renters four options the poor. This included Income Housing Tax Credit (LIHTC). The LIHTC has stood in the nation—67% are disabled or seniors, and the average • Prepay the loan (subject to RD use restrictions) moving away from the test of time and proven to be a triple-win proposition household income is $13,600. • Appeal RD’s decision through USDA’s appeals process government-owned housing by (i) providing developers with an additional “source” of • Keep the property in the RD program and toward public-private project financing, (ii) securing for investors a dollar-for-dollar To begin the process of prepayment, the owner must make • Offer the property for sale at market rate to a nonprofit partnership arrangements reduction on future federal tax liability, and (iii) requiring a formal request to RD, and the agency in turn notifies the or public agency, which must in turn keep the property in which the private sector that affordability be maintained for upwards of 30 years. tenants that the owner has applied to remove the property for low- and very low-income tenants for the property’s would build and manage from the program. Understandably, tenants often react with remaining useful life affordable housing, and in From a policy perspective, the initiative—spawning out panic. Some take steps to move even before discussions the process, crucially, benefit of President Ronald Reagan’s 1986 tax reform—has been begin. RD also provides notices to the public and nonprofits If an owner wishes to keep a property in the RD affordable To date, we have from federal tax incentives. the most successful and bipartisan affordable rental that have asked in advance to receive such notices on its housing stock but needs to recapitalize or request the redeveloped and housing production program in U.S. history, assisting in Preservation Information Exchange website. If the property reamortization of existing 515 debt, there are options to preserved 369 Section 515 Rural Rental the development and preservation of nearly 3.5 million is eligible for prepayment, RD must offer owner incentives consider. These include Section 538 guaranteed rental Housing was established affordable units across America’s vast countryside. to remain in the program. These incentives can include housing loans, Multi-Family Preservation and Revitalization properties [13,000 in 1963 and has financed additional project-based rental assistance, an equity loan, (MPR) demonstration program financing, the RD units] across 12 nearly 28,000 rental Conversely, industry headwinds are multi-layered and permission to obtain a third-party equity loan, and an Preservation Revolving Loan Fund (PRLF), and additional states, investing properties consisting troubling. No new USDA-RD direct-financed rental housing increase of the return on the owners’ investment (which is project-based rental assistance. Reamortization under over $1.6 billion in of over 530,000 affordable has been developed in a decade, and the existing housing otherwise restricted by the program). If the owner accepts new rates and terms for the existing 515 loan provides units. Also included under stock is reaching the end of the affordable road. In fact, a the offer, they must maintain affordability for at least a significant advantage over replacing the debt because development costs RD’s financing umbrella whopping 90% of all RD 515-financed properties are now 20 more years. the RD loan remains in place and the property retains its with an average of are general water and more than 20 years old. eligibility for project-based rental assistance. RD is willing $35,000 per door sewer projects as well as If the owner rejects RD’s incentive offer, then RD must to amortize even small loans reaching the end of their housing for non-farmers When an RD 515 loan nears maturity or is eligible for make two determinations: Will minority residents (on the maturity date. in hard costs. in rural areas. prepayment, an owner has several options to choose from waiting list or in the community) be disproportionately • Pay off at maturity affected by the loss of the affordable units, and is there RD has the authority to make deals work, in good faith, —Tanya Eastwood, Greystone Affordable Fast forward a bit: What • Pursue RD’s prepayment process (resulting in myriad adequate comparable replacement housing available for with the objective to move the needle toward longer-term Development happened to those outcomes) current residents? If RD finds there is an adverse impact to preservation. Therefore, the recent reorganization of RD

| | 20 | ® | July.Aug 2021 irem.org/jpm 21 feature | rural housing

owners of RD 515 properties in the country, was faced with BJ: What was the ultimate goal of RD’s recent for thousands of families Sandy Bay — daunting preservation roadblocks and a large portfolio of major restructuring? across the country. They Kingstree, SC RD assets. What began as a happenstance meeting between NB: The objective was to modernize a program built on provide activities for Greystone Bank President Bob Barolak and BMI President a 1970s servicing model, and to do so in a way that would children, socialization for Ken Wheat turned into a long-term partnership of 515 provide agency flexibility to attract capital into our rural seniors, and a sense of preservation and good business. markets. With aging owners and maturing mortgages, the community for everyone. agency had to restructure in order to evaluate the portfolio, For example, when COVID- I recently caught up with Tanya Eastwood, president and and then place our focus where needed most. 19 caused school closures, CEO of Greystone Affordable Development. Under her many children in our rural leadership, Greystone helped pioneer the preservation BJ: What changes will impact management agents properties were faced with of rural affordable housing and has closed more RD and owners in the near future? a lack of access to reliable preservation deals than any other organization in the NB: Our goal is to streamline and simplify rather than internet access for online Our goal is to United States, with no signs of stopping. I asked her about burden management agents and owners with meaningless classes. Our properties streamline and the success of this RD partnership and where she sees it work. This is a federal program, and requirements should reacted with mobile Wi-Fi, simplify rather heading in the near future. be standardized and each have a purpose. We use the making online school than burden “no worse test“ in our decisions, which means if a new possible for countless Image: Boyd Management Boyd Image: “To date, we have redeveloped and preserved 369 properties requirement places a burden that is worse than before, children who may have management has matched those negotiations and [13,000 units] across 12 states, investing over $1.6 billion in we won’t do it. otherwise missed out on agents and loan processing with well-trained, development costs with an average of $35,000 per door in hard an entire year of education. owners with experienced RD personnel. Prior to costs,” Eastwood says. “We have active pipeline transactions in BJ: The average RD 515 property is only 32 units, restructuring, negotiations and loan various stages in 15 states.” which isn’t a typical model for attracting capital. Among their many other meaningless work. processing resided with RD state What ideas are being discussed to energize the essential functions, property —Nancie-Ann Bodell, USDA and county personnel, who may Voices from the field flow of preservation capital? managers throughout our Rural Housing Service or may not be equipped to handle The question for all of us to consider, then, is how do we NB: We want everyone to know that RD is open for business rural portfolio are dedicated complex transactions. Restructuring preserve Section 515 rural housing and protect vulnerable and open to all ideas. RD 515 is the only program dedicated to the resident experience. Whether is designed to eliminate the learning residents while being fair to owners, investors, and any solely to rural rental housing, and our mission is to preserve it’s potluck dinners, holiday parties, curve and make all possible servicing other stakeholders? this very special market of rural affordable housing. or a simple hello, they treat these tools available for preservation. RD properties as more than just apartment is making it known, “We are open for Nancie-Ann Bodell, deputy administrator of Multifamily communities; they embrace them business. Let’s make a deal!” Housing at USDA’s Rural Housing Service, has a plan and was I also spoke with Colleen M. Fisher, who has been the as homes. quick to positively respond to my inquiry for an interview. executive director of the Council for Affordable and Rural Businesses have heard the Housing (CARH) since 1996. CARH represents the interests Better understanding call, even before the RD Barbara Jaco: We love the Rural Development 515 of stakeholders in the building, development, management, Now when you hear the term restructuring. Large and program and the residents we serve. That said, our and ownership of housing in rural America. “affordable housing,” do you still think of small, property managers industry is on edge with concern that government your nearest major city’s massive and owners alike have restructuring will gobble up the RD 515 program, BJ: Colleen, what can members of our industry public housing projects developed continually been able to merging it into—and managing it like— the U.S. do that will help wave the flag for preservation? back in the ‘60s and ‘70s? Or do you identify and capitalize on Department of Housing and Urban Development Colleen M. Fisher: Congress needs to understand picture rural neighbors gathering the many solid investment (HUD). Are these concerns merited? the complexities of and fund housing for rural areas. for a Thanksgiving meal, judging a opportunities present Nancie-Ann Bodell: We recognize RD 515 is a unique Preservation is expensive and takes money from both the Halloween costume contest, or sitting in the rural affordable program, and that is important to preserve. This program private and public sectors. The best thing our industry can for a game of backgammon? That is housing market. will not be merged with HUD. We see a bright line drawn do is to get members of Congress to visit the RD properties, what is at risk as we face the many Preservation is between these two housing programs, and it would be so they can see firsthand the quality housing and the very aforementioned challenges. It is expensive and One of the most successful very difficult if not impossible to actually merge them. special bond between the residents, site managers, and undoubtedly an uphill battle, but one takes money from RD 515 preservation models However, there are processes that HUD adopted that can maintenance technicians. worth fighting. both the private began as an experiment in be duplicated to gain efficiencies and solve problems. As 2006 in a small conference stakeholders see these implemented, they respond with Home, safe and sound Barbara “Babbie” Jaco, CPM, is vice and public sectors. room at Boyd Management, the merger concerns. One example where we can utilize a Once we understand the underlying programs that make president of CAHEC Management, Inc. in Inc. (BMI) in South Carolina. HUD practice at RD is through the utilization of third-party these projects possible and the challenges facing our —Colleen M. Fisher, Columbia, South Carolina. She also serves Council for Affordable and WWJ, LLC, an affiliate of inspectors, whereby the process is more efficient and industry, it is then most important to recognize what is as a member of IREM’s Federal Housing Rural Housing BMI and one of the largest cost-effective. at stake. Our properties provide more than just shelter Advisory Board.

| | 22 | ® | July.Aug 2021 irem.org/jpm 23 feature | Global summit

ne of the foremost benefits of belonging to While the face time in Las Vegas will IREM will IREM is the chance to connect with real estate be invaluable, committee and board continue O management professionals who know what you’re members who are still unable to travel dealing with and understand the highs and lows of being for business, or are uncomfortable to consult a property manager. traveling, will have the option of with the joining their meetings virtually. I have found that being a part of this community is an Red Rock indispensable part of my IREM experience, lifting me Note that this virtual option is Casino through the most difficult times and leading to growth available only for committee and Resort & Together as a real estate manager, leader, and person. board meetings. Other essential Spa on our elements of the Summit, including That’s why coming together live and in person at the 2021 keynote speakers and education procedures, IREM Global Summit at the Red Rock Casino Resort & Spa sessions, will be exclusively in person. as we all we thrive in Las Vegas from Oct. 11–14 will be so special. know how 2021 IREM President Chip Watts, CPM, CCIM, has rightly Recovery is coming. According The 2021 IREM Global seized on a theme of resiliency through togetherness. He's to officials, we’ll have made great quickly called on us to realize the importance of our work as real progress in vaccinations by the time guidelines Summit heads to Las Vegas estate managers, which has become even more evident over we meet in Las Vegas. Your safety and can evolve. the course of the global pandemic. well-being are a top priority, and we By Lucinda Lilley, CPM, CAPS, GRI are committed to putting additional The 2021 IREM Global Summit in Las Vegas is our safety measures in place to ensure a opportunity to recapture that sense of togetherness as we smooth on-site experience. lead the organization through an exciting period of rapid industry change. The Summit is our chance to thrive. IREM will continue to consult with the Red Rock Casino Resort & Spa on Influence our procedures, as we all know how As always, the business of IREM has a prominent place quickly guidelines can evolve. The on the agenda, as all of our committees and boards resort has a strong commitment will convene. to guest safety, with standards and protocols that meet or exceed the The Summit helps put IREM on firm footing for what lies ahead. Today, the industry is Red Rock Casino Resort & Spa at a critical point, with so many changes rapidly brought about by the pandemic, the acceleration of automation technology, and other underlying factors. We invite you Image: iStock.com/Onfokus Image: to seize this opportunity to connect with like-minded individuals who are passionate about real estate management and to take the chance to put your best volunteering foot forward to help shape the future of IREM and the real estate management industry.

I’m constantly reminded, particularly at the Global Summit, that we can extend our influence from the local level to the national—and all the way to the international—level. I get such inspiration connecting with my global IREM friends as we work together to shape the industry Image: iStock.com/Onfokus Image: around the world. iStock.com/4kodiak Image:

| | 24 | ® | July.Aug 2021 irem.org/jpm 25 feature | Global summit

And for our closing keynote, we’re thrilled to Register for slots, bingo (eight one-hour scholarships and grants are doing so much to move the have Liz Bohannon, founder of Sseko Designs, the Summit at sessions daily at the Red Rock industry forward. an ethical fashion brand that works to irem.org/events/ Bingo Lounge), or just take in educate and empower women. Liz will share global-summit. the action. The Summit culminates with the Inaugural Gala, where how you can’t dismiss someone’s success by we’ll celebrate Barry Blanton, CPM, and usher him in as calling it “beginner’s luck.” What if the very How does bowling sound? Red Rock Lanes is a luxury casino 2022 IREM president. The celebration will also feature fact that they were a beginner is what gave bowling center with 72 lanes, a game room, and private VIP the REME Awards—a chance to recognize real estate them the advantage to succeed? suites to make for a memorable experience. management excellence among our peers. Will you be among those honored? It's also important to mention the Celebrate opportunities that you will have to learn Did you think we’d miss the celebrations? Not a chance. Serving as chair of the Conference Advisory Board this year from IREM's industry sponsors and other It’s Las Vegas, after all! is such an exciting opportunity, particularly as we’re able service providers. You'll have chances to to return to an in-person event. Let’s embrace Chip Watts’ connect with them to find new solutions We’ll kick off the Summit with the Opening Premier Party valuable message of resiliency and togetherness and make Image: iStock.com/pixelfit Image: for your businesses. poolside, honoring 2021 IREM President Chip Watts. The the most of this meaningful event as the IREM community Networking highest standards set by federal, state, night will be filled with great food, drinks, and dancing. comes together to thrive again. and local authorities. Network And back by popular demand, we’ll feature a live performance is a big Networking is a big part of the IREM Global Summit from the Nashville-based Chris Weaver Band, the musical Lucinda Lilley, CPM, CAPS, GRI, is chair of the part of Learn experience. I always look forward to connecting with act that appeared at the 2019 IREM Global Summit in IREM Conference Advisory Board. She is a vice the IREM IREM will hold a number of stellar members from around the world, especially other IREM San Francisco. president of FBS Property Management, AMO, in Global education sessions for those who instructors and my fellow CPMs who lead their AMO firms. Southern California. She was president of IREM’s attend in person. The sessions will Of course, I also enjoy meeting new friends—that’s part of And, there will be opportunities to explore all of the San Diego Chapter in 2019 and 2020 and serves Summit cover timely topics relevant to today’s the Summit fun! great things the IREM Foundation is doing. Learn how on the IREM Ethics Committee as well as the experience. opportunities and challenges, delivered you can support the Foundation at a time when its IREM Ethics Hearing & Disciplinary Board. by industry-leading presenters. The Red Rock Casino Resort & Spa has lots of dining and gathering areas for ad hoc meetings or catching up with And, there are three keynote speakers IREM friends. Las Vegas has become quite the culinary you don’t want to miss—they'll truly destination in recent years, and the Red Rock is on top of its inspire you! game with many tiers of dining options. Among the resort’s outstanding restaurants are upscale steak and sushi; a First, we're excited to welcome as our noodle bar that blends Chinese, Japanese, Vietnamese, and opening keynote Risha Grant, founder Thai cuisines; and casual Italian fare at Osteria Fiorella from Looking to fill an open position? and CEO of Risha Grant LLC, an James Beard award-winning chef Marc Vetri. Find your next applicant on the IREM® Job Board award-winning diversity consulting and communications firm. With Want to explore your bold side? Consider the adventures passion, persistence, and knowledge, available just outside the resort. The Red Rock is nestled Risha has worked with governors, NBA in ancient sandstone cliffs, where you can arrange to go teams, mayors, and CEOs of Fortune horseback riding, river kayaking, or bike riding. 500 companies to reduce bias and advance understanding of diversity The resort has some other fabulous amenities. You’ll find and inclusion. gaming, of course, where you can try your hand at blackjack,

Next, we'll be joined by Jon Acuff. In every element of work and life, goals matter. Jon will share what it takes to turn a chronic starter into a consistent finisher. He's a New York Times-best-selling author of seven books, including his Wall Street Journal No. 1 bestseller, Finish: Give Yourself the

Gift of Done. iStock.com/rez-art Image:

Visit careers.iremjobs.org/employers to post your open position(s) today! Packages now start at just $150. 26 | ® | July.Aug 2021 global practices

Building on the past Finally, the Village Plaza, one of The Village Plaza Olympic legacy The number of rental housing starts is also low compared the main facilities in the Olympic to the high-growth period from the 1960s to 1970s and the and Paralympic Village, was will be taken Looking at the effects of the 2020 Olympic Games on Tokyo’s local real estate market prosperity of the bubble period in the 1980s. In fact, the constructed from wood donated down after the number is unchanged from where it was at the time of the by 63 municipalities across competition, and By Kiyoshi Inomata, CPM, CCIM 1964 Olympics. Japan. The plaza will be taken down after the competition, the wood will Google search for Considering that Japan's population has increased from 97.8 and the wood will be returned be returned to “Olympics abandoned Wood detail on the million to 125.6 million, and that many houses in Japan have to municipalities to be reused National Stadium in Tokyo municipalities to be A buildings” brings up a short construction cycle and are designed to be rebuilt in various local structures reused in various over 1.4 million results. Esti- every 30 years, the decision to host the Olympics does not commemorating the games. mates for the 2016 Summer appear to have had a major influence on current rental local structures Olympics show that hosting the housing starts. What’s next for Tokyo commemorating games cost Brazil as much as $13 “The Olympic effect” clearly varies the games. billion, yet less than a year later, On the other hand, several transportation infrastructure by host city. Studies show prices the site of the Olympic Park was maintenance and connection issues have seen major in London increased between abandoned, with weeds growing progress. Access from international airports to the 2.1% and 3.3% after the announcement that it would host in between sections of concrete surrounding areas has improved, as have the connections the 2012 Games, and some properties close to Olympic sites in the plaza. from areas along Tokyo Bay (where piers, warehouses, and increased by as much as 5%. office districts are concentrated) to the suburbs (where This is just one example. There residential areas and industrial parks are located). Chronic It also varies based on the timing of when the Olympic are structures in countries traffic congestion caused by bypass roads in the city center Games fall within the current cycle of the host city’s real around the world that are quickly is also improving. This only serves to make the city a more estate market. Historically, cities with a growing market abandoned and fall into disrepair attractive target for investment and is expected to remain have enjoyed positive effects on prices due to hosting, after hosting the Olympic Games. a factor in driving further population concentration in the while those with decreasing demand have been left with

Image: iStock.com/Ryosei Watanabe iStock.com/Ryosei Image: medium-to-long term. an oversupply. The 2020 Summer Olympics are currently scheduled to be held in Tokyo this July and There are two reasons for this. Forward thinking The Tokyo Summer Olympics may reveal how truly unique August, a year delayed from their original date due to the There are many projects at the 2021 Olympic Games Japan’s real estate market is, given the population growth COVID-19 pandemic, which could cause the games to again The first is that 30% of Japan's population is already designed to leave a legacy for future generations. that has occurred over the past 30 years. be postponed or ultimately canceled. concentrated in the Tokyo metropolitan area, the largest metropolitan area in the world with 38.5 million people. This The Olympic and Paralympic Village, for example, was The Olympics are meant to be a celebration of human spirit Whether or not the games are held, Tokyo provides an has been a remarkable trend since the mid-1990s; Tokyo has constructed on an area of land reclaimed from Tokyo Bay. and international good will. Will hosting the Olympics in interesting case study to examine how the Olympics can become so concentrated that there was very little room for Housing units in the Village will subsequently be renovated Tokyo leave a lasting legacy that yields long-term benefits, affect the real estate market. It has been seven and a half the games to have any significant effect in the first place. and turned into 1,487 rental units and 4,145 condominiums or will it leave behind the familiar bad taste of having years since Tokyo was selected as the host city and 57 years after the games are over, with an expected average of 2.6 committed massive sums of resources for just a few weeks since Tokyo last hosted the Summer Games in 1964. We can The other reason is that the 1964 Summer Games already potential buyers per unit and a maximum of 71 buyers per unit. of games, which, in the process, results in environmental start to ask whether the games will be a waste of money for resulted in a substantial development of infrastructure; thus, Unfortunately, these units have become poster children of the degradation of the surrounding areas? As is often the case, just a few weeks of celebration or whether sustainability the typical strain that an upcoming Olympics hosting would Olympics’ effect on real estate, as the postponement of the this will also be determined largely by the sustainability could become a larger focus. place on the stock of public capital has already been reduced. games has caused issues with delivery of the housing units. efforts of Tokyo itself and the countless individuals who come together to produce such a historic event. Been here before We see this in a comparison of expenses to gross domestic Efforts have also been made to promote sustainability. In 2013, immediately after Tokyo was selected as a host city, product (GDP). In 1964, the total amount spent on direct The National Stadium was built on the site of a previous Kiyoshi Inomata, CPM, CCIM, is the CEO of Tokyo-based Asset the Japan Real Estate Institute (JREI) conducted a survey expenses related to the Olympics and infrastructure Olympic venue and incorporates a large amount of small- Build Co., Ltd. In addition to his work with of investors titled “The impact of the decision to hold the development was 1 trillion yen (approximately $9.18 billion). gauge timber frequently used in Japanese houses. Such IREM as an instructor, Inomata has been Olympic Games on demand.” Most respondents agreed that This amount is about four times higher in 2021 at 4.2 trillion prominent use and display of this wood has the added featured prominently in Japanese media demand would be limited to the area around the venue and yen ($38.59 billion), but nominal GDP is 12.6 times higher; benefit of actually promoting forest conservation. The as an expert commentator as well as for Central Tokyo. In fact, no respondents believed that the Japan’s GDP in 1964 was 1.5 trillion yen ($13.78 billion) but is structure also relies on natural ventilation. The building his collaborative efforts with other local games would affect demand in other prefectural capitals, now 19 trillion yen ($174 billion). The actual relative impact was designed by renowned architect Kengo Kuma and is IREM members to inspect the many and only 7% believed that they would affect demand in the of the Olympics has fallen by one-third, dropping from 67% considered a successful implementation of sustainable buildings damaged by the country’s central area outside of the Tokyo suburbs. of GDP to 22%. development goals in a Japanese style. recent earthquakes.

| | 28 | ® | July.Aug 2021 irem.org/jpm 29 technology

Tang and Bender agree that flexibility has to Give and take extend also to those residents who have no interest in adopting electronic payments. Digital solutions make paying and collecting rent easier for everyone Offering a variety of payment “Our experience shows us that the demographic in options empowers users to software offer online resident portals and mobile our senior communities prefers to pay rent using make consistent, on-time rent apps with a variety of options for how residents can a traditional paper check,” Bender says. payments. pay their rent, whether that’s automated clearing house (ACH) transactions, or payments by credit Adds Tang, “There’s always going to be the resident —Kyle Schweikert, Rent Manager or debit card. Many programs give residents the who likes to pay by check, and we totally respect that.” flexibility of either making a one-time payment “These notifications should be customized—both in content or setting up automated monthly payments. “The A win-win and delivery method—based on the property's clientele,” he key is to make the rent payment process easy, and While offering ease for residents, electronic payment says. “It’s crucial to know whether emails, phone calls, text part of that is allowing payments to be made in options are equally beneficial for property managers, messages, or physical mail are the best means of contacting whichever format is most convenient to the tenant,” streamlining the rent collection process. delinquent renters.” Schweikert says. “Offering a variety of payment options empowers users to make consistent, “Specifically, technology promoting online payments and Whether switching from paper to digital payments or on-time rent payments.” online leasing has allowed for improved rent collection, upgrading to a new system, there will be a transition

Image: iStock.com/MStudioImages Image: improved reconciliation, and a significant improvement period. Tang’s company recently changed payment solution Property managers who have offered multiple in efficiency for our on-site associates,” Bender says. products, and residents are now in the process of being n the modern world, convenience is everything. From payment options agree that electronic payment is the clear “Without these types of technology, human error becomes registered in the new system. placing a grocery delivery order to seeing a doctor preference for the majority of renters. problematic. With the assistance of technology, human Ivirtually, consumers have come to expect services to errors can be removed, and we create an improved “There is always a reversion from online back to checks as be available at the touch of a button. Kim Bender, CPM, executive vice president of property customer service experience for the resident.” everyone is getting signed up and registering with the new management for Fairfield Residential, which has a national portal,” he says. “There is a little bit of pain, which I totally Fortunately, property management hasn’t been left behind portfolio of 43,000 multifamily units, has the numbers Tang says online payments remove the headaches of respect, but our goal is to get back to 75% of payments during this tech evolution. One example is the rent payment to show that online payments are preferred by Fairfield manual collections, such as roommates paying separately or being sent online.” and collection process, which technology has simplified for residents. “We have found that 88% of our residents who multiple money orders. “We really push for digital payments both renters and property managers. we profiled prefer to use the resident portal to pay monthly for everyone’s sanity,” he says. “Most landlords see the value Despite the adjustments, Tang says property managers rent,” Bender says. “Of the 88% using the portal, on average, of waiving the ACH fee to encourage higher adoption.” should not be intimidated by the switch to a digital rent Digital solutions now exist to replace the tedious 74% of our residents pay rent using ACH payments, 8% use collection process. managerial tasks of keeping track of multiple checks, cash credit cards, and 6% utilize MoneyGrams.” Online payment options also decrease delinquencies. payments, or money orders. And for the renter, switching “Changing payment processors is really not as complicated to electronic payments removes the stress of waiting for As the Fairfield resident app continues to advance with ease “You’re taking away an excuse for anyone who says, ‘But I as it might sound,” he says. “Just think of the cost savings in a check to clear or the worry of forgetting to make a of use, it’s gaining more popularity, she says. slipped the check under the door,’” Tang says. “You can say, terms of labor, like scanning checks—all those admin hours payment altogether. ‘I appreciate you tried to pay. Please request a stop payment, can now be focused on something that creates real value for Kelly Tang, CPM, president of IEC Property Services based in and here’s a link to where you can pay your rent.‘” the property.” Today’s successful digital solutions are “convenient, Los Altos, California, has long used technology to streamline intuitive, and easy,” says Kyle Schweikert, the business the rent-payment process for the 2,500 multifamily units In an effort to increase timely payments, Schweikert added Schweikert says that, like many technologies, digital rent analysis manager of property management software in the company’s portfolio. The rent payment solution he that some software, like Rent Manager’s, can automatically collection options have only increased in importance this company Rent Manager. Modern rent payment services and currently uses is a mobile-friendly online portal, the same alert residents that rent is nearly due and help with the past year. one that residents use for service requests. follow-up if a payment is missed. Through the portal, residents can choose their “When COVID-19 hit, online payment adoption payment method—Tang says ACH payments are became absolutely essential,” Schweikert says. We have found that 88% of most common—and choose the date when they You can say, ‘I appreciate you “Not only does it make operations more efficient would like the payment to be made. and streamline receivable collections long our residents who we profiled tried to pay. Please request a term, but it also safeguards staff and tenants by prefer to use the resident “Online payments are definitely preferred by stop payment, and here’s a link inherently promoting social distancing. Even portal to pay monthly rent. tenants, whether they be ACH, online, or debit,” he to where you can pay your rent.‘ as we achieve higher levels of pre-pandemic says. “From the resident’s perspective, they want normalcy, online payments aren’t going —Kim Bender, CPM, Fairfield Residential that payment to be cleared and not have to worry.” —Kelly Tang, CPM, IEC Property Services anywhere. The convenience is unmatched.”

| | 30 | ® | July.Aug 2021 irem.org/jpm 31 IREM Foundation

while having fun! My hope for the future is to tap into the upcoming leaders to grow our chapter, focus on our Foundational support Fueling the Foundation members’ personal growth, and continue giving back to One member’s account of the IREM Foundation’s role in her real estate journey Along with the Western Washington Chapter, two the Foundation, which has supported so many of us in our other chapters have also committed at the $10,000 personal and professional journeys. By Sheena Boone, MBA level: Houston at $10,000 and Georgia, not to be outdone, at $10,001. I’m now two years into my CPM journey, and like my love have had many mentors of property management, I have found that same affection along the way, but the for IREM. For the last several years, I volunteered with my I single most impactful I was finally getting a chance at personal redemption, an chapter’s education committee, wanting to provide the event in my entire career opportunity to become the humble servant leader I knew same opportunities to others that I had received. In 2020, was actually being fired. resided somewhere deep inside. It was in deep conversation I served as the vice president of education, and like many As a young property with my regional and former chapter president, Sherrie others, found myself floundering through the pandemic. manager of a mid-size Clevenger, CPM, when I decided that pursuing my CPM was Fast-forward a year, and I am honored to be the 2021 multifamily community, the next step in the advancement of my career. president-elect of the Western Washington Chapter, while I was good at my job and still retaining my VP of education hat. knew it. I had no idea what I quickly became a member of IREM and, with Sherrie's it meant to be humble, and I support, applied to become a CPM candidate and set forth To make up for the struggle that was 2020, the education talked and behaved like on the journey to achieve my goal. Still bearing the burden committee has been working incredibly hard to develop I was “above” everyone of paying off student loans from my master’s degree, a phenomenal four-part “leadership of self” series with and everything. I was so grateful to learn that the IREM Foundation had the beloved Jessica Fern. I am so excited for our chapter an amazing scholarship that could help me reach my goals. to continue offering out-of-the-box education for our My ego led me to accept I was determined to obtain my CPM, and the assistance of members. Jessica is not only a phenomenal trainer, but a position with a new these scholarship opportunities would help me achieve it she is a wonderful person. She shares her journey into partnership that was not even more quickly. self-discovery on her podcast, “Living with Einstein,“ properly staffed, and there which is foundational to the series that she is developing I tanked. Instead of looking It hasn’t been easy, not at all; working full time while specifically for IREM called “Get on with your bad self! inward and recognizing that getting an education has taken careful planning and A journey into self-leadership.” my ego had accepted a job dedication, but I wouldn’t trade it for anything. I am so that was not a good fit, grateful to our IREM members for continuing to fund the In closing, let me sign off with two sentiments for you I blamed leadership for a Foundation so that professionals like me can more readily all, especially anyone who may feel they have just finished poor staffing model. No access desired education resources. The investment of one reading a description of their own story. First, if I could matter how many hours I person into another’s life is impactful in so many ways encourage anyone through actionable advice, it would be to

worked, I could not get out Images iStock.com/Morsa Image: that we may never even realize, let alone understand. get involved. Find a committee on a subject that you enjoy, of my own way, and I was and immerse yourself in both the topic and the gathering of eventually invited to resign. large role that my ego played in leading to this result I was That impact is one of the many reasons why I am proud to like-minded people who have gravitated toward that same I was devastated. I loved my company, I loved the culture, living through. I began to focus on being good at my job be part of the Executive Council of the Western Washington subject. Not only will you be doing good for IREM and your I loved the people. And now what would my colleagues think while remaining humble and continuing to be a leader. In Chapter. Western Washington recognizes the value that chapter, but you will be feeding your career and soul, too! of me, the girl who claimed to be the very best? the middle of earning my bachelor’s degree, I changed the the Foundation plays in our members’ lives. We have Second, take time out of your day’s work to reflect on your emphasis to leadership; I volunteered and began learning committed to making a $10,000 annual contribution to the journey. So often, the areas in our lives—professional and I left the industry after this incident. I was bitter, angry, and what it meant to become a true servant leader. Foundation and challenge other chapters to match this (see otherwise—that feel the most painful are holding the most still not seeing my part in the story. It took me two years, a Fueling the Foundation). For every member who receives a beautiful lessons to be learned and stories to be shared. lot of conversations with mentors and loved ones, and an After three years of working outside of property scholarship, we have helped one more professional carry the outrageous amount of painful reflection to recognize the management, pursuing my MBA, and a whole lot more foundational principles of IREM further into the world of Sheena Boone, MBA, is senior manager self-reflection, it was time to get back into property management. What could be better than that? of central services for Essex Property Trust, the industry I loved. It took some time, but a publicly traded REIT that invests It hasn’t been easy, not at all; working Essex Property Trust hired me in 2015 to Endless opportunities in apartment homes on the West Coast. full time while getting an education has manage a 442-unit community. Along with I was thrilled to learn about the IREM Foundation’s Global She is the president-elect for IREM’s the many units that I looked after, I was also Summer of Service. Not only does this opportunity strike Western Washington Chapter and is taken careful planning and dedication, responsible for a large staff. The significance at the core of my volunteer heart, but it allows me to currently working toward earning her but I wouldn’t trade it for anything. of this wasn’t lost on me for a moment: create some competition to benefit the Foundation, all CPM designation.

| | 32 | ® | July.Aug 2021 irem.org/jpm 33 committee central

is what certifications and designations are specifically managementfirms’ performance, Constantly improving designed to support. increasing quality assurance, and benefitting management firms’ clients Prior to IREM’s Membership & Credentialing Committee continues work on contemporary • In addition, IREM added a new element to the experience and tenants. COVID-19, certifications relevant to an ever-changing industry requirements for the ARM and ACoM to accommodate individuals with mixed portfolios. As it stood, individuals The Accredited Management the necessity who had these types of portfolios were unable to benefit Organization (AMO) accreditation of virtual from earning these certifications. sets the standard in property • In 2020, IREM launched a new model for the CPM management firm excellence, driven offerings process, which changed price structure and, more by a combination of rigorous was nowhere importantly, created a more linear process for earning requirements and benchmarking the CPM designation. This change was made in response standards. Firms are asked to evaluate near the to confusion in the marketplace around the CPM their companies based on standards level it is requirements, and the new price structure also serves and functions foundationally driven as a balance in providing equitable access to those by IREM’s Best Practices: Real Estate today. considering beginning the process. Management guide.

Lastly, the unintended consequences of COVID-19 have Firms that have earned the impacted certification requirements, albeit with a silver prestigious AMO accreditation lining. The Ethics for the Real Estate Manager (ETH800) are required to move through a course is only delivered in the classroom. The course is reaccreditation process every three specifically designed to be interactive and engage students years. This ensures that IREM in class discussions. Prior to COVID-19, the necessity of is holding firms accountable for virtual offerings was nowhere near the level it is today. meeting these expectations and standards as they evolve over time. Being one of the eight certification courses required to earn the CPM designation and only being offered as an in-person Being the main driver of a large course, CPM candidates were left in the unfortunate portion of the accreditation situation of having no means of accessing and completing standards, the newly revised Best

Image: iStock.com/pixelfit Image: the course during the pandemic. The Membership & Practices: Real Estate Management Credentialing Committee recognized this as a serious was released in 2020. The members REM is known for providing There are a few intended outcomes in the review process barrier for those looking to earn the designation soon. A of the Membership & Credentialing dynamic knowledge for real as well as essential questions that need to be answered. Is motion was passed to extend temporarily offering the Real Committee will conduct a thorough Iestate management professionals the process to earn the certification objective? Are there Estate Management Ethics Online (ETH001) course as an review of the AMO accreditation across the globe. Our prestigious unnecessary barriers to entry? Are there changes in the alternative until Dec. 31, 2021. This decision has allowed our to parallel any modifications to the certifications have for years been an industry that should be reflected in the certification process CPM candidates to focus on their coursework without being standards and functions to ensure it integral launch pad for many mem- and/or educational requirements? interrupted or delayed in their journey toward earning the mimics the most current version of bers’ careers in addition to driving CPM designation. this important benchmarking tool. a higher level of professional compe- Over the last several years, IREM has made modifications to tency, bringing added value to the certification requirements based on thorough review from COVID-19 has presented numerous opportunities to Standards and best practices are properties where our members live, the committee, which comprises members from diverse reexamine the accessibility of our courses. The Membership integral to our success; the other side work, and shop. backgrounds. Some recent examples of updates to our & Credentialing Committee, along with our colleagues of the coin is the value of the benefits certificate requirements include on the Ethics Committee and Education & Knowledge and services of IREM membership. To maintain the integrity and rigor Products Committee, are focusing on reviewing both One of IREM’s strategic goals is to stay associated with our certifications, a • The 2019 decision to eliminate letters of recommendation the ETH800 and ETH001 courses in 2021 to evaluate the relevant to members and customers. subjective review of the requirements for the Certified Property Manager (CPM), Accredited content and delivery methods. The future will remain Relevancy is key, especially in the and core competencies remains a Residential Manager (ARM), and Accredited Commercial virtual, at least in some capacity, but integrity and content ever-changing real estate industry. dynamic process and one that the Manager (ACoM) certifications. These were removed from are of the utmost importance. The Membership & Credentialing IREM Membership & Credentialing the process due to their subjective nature, having been Committee will continue to identify Committee has devoted considerable determined to not be an accurate tool for measuring one’s Accreditation standards should also be evaluated on ways to better engage and deliver time to over the years. competency and knowledge on a specific subject, which a continuum, stimulating improvement of real estate value to the members we serve.

| | 34 | ® | July.Aug 2021 irem.org/jpm 35 New certifications

New CPMs Kentucky Texas Fumie Oda, CPM, Aichi Florida Louisiana Lesli Lawrence, CPM, Lexington Jillian Anderson, CPM, ACoM, Houston Keiji Okuyama, CPM, Sendai Seqoiya Abrams, ARM, Jacksonville Mallory Bailey, ARM, Baton Rouge Alabama Joanna Arreguin, CPM, San Antonio Shigero Shimoda, CPM, Sakao Sabrina Belizaire, ARM, Jacksonville Erin Loupe, ARM, Baton Rouge Will Hollingsworth, CPM, Birmingham Maryland Kim Hannigan, CPM, ACoM, Houston Koichiro Takahashi, CPM, Tokyo Michelle Coleman, ARM, Jacksonville Kimberly Livingston, CPM, Laural Mullens, CPM, Waldorf Regina Loveall, CPM, Spring Takanobu Takahashi, CPM, Rosangel Escoto, ARM, Orlando Maryland Guntersville Eric Vie, CPM, New Market Melissa Montez, CPM, Houston Hamamatsu Brendale Fields, ARM, Jacksonville Shara Green, ARM, Hyattsville Justin Pirtle, CPM, Dallas Masato Takayama, CPM, Kumamoto Eveada Finklea, ARM, Jacksonville Arizona Massachusetts Grant Rodell, CPM, Austin Takatoshi Takei, CPM, Fukuoka Ashley Guider, ARM, Jacksonville Massachusetts Chianon Mutsiwegota, CPM, Kerry Dervil, CPM, ARM, Taunton Ji-Yoon Seo, CPM, Plano Masahiko Tsuruta, CPM, Fukuoka Iesha Pinkney, ARM, Jacksonville Marta Bonilla, ARM, Braintree Phoenix Kimberly Parker, CPM, ARM, Boston Amy Smith, CPM, Austin Daisuke Umehara, CPM, Kanagawa Maria Fernandez, ARM, Wellesley Soya Ushioda, CPM, Tokyo Georgia Caroline Harvey, ARM, Weymouth California Minnesota Utah Yohei Watanabe, CPM, Miyagi Madison Greer, ARM, Columbus Shane Hayes, ARM, Boston Olga Annuzzi, CPM, Belmont J. Todd Adams, CPM, Minneapolis James Johnson, CPM, North Salt Lake Atsuhiro Yamaguchi, CPM, Kurume Carmen Rivera, ARM, Columbus Lucia Brand, CPM, San Diego Emily Jacobs-Allen, CPM, Minneapolis Derek Seal, CPM, Draper Christina Welch, ARM, Columbus Michigan S. DeMarco Carter, CPM, Oakland Korea Tara Brown, ARM, Detroit Antony Chrysostom, CPM, San Jose Mississippi Virginia Soon Ho Jung, CPM, Seoul Hawaii Niquia Clark, ARM, Detroit Kirsten Coombe, CPM, San Diego Scott Overby, CPM, Ridgeland Elizabeth Karl, CPM, Arlington Dong Hoon Kim, CPM, Seoul Mark Aronson, ARM, Honolulu Andrew Haley, CPM, La Jolla Phillip Quinones, CPM, Ashburn Hyeonsu Kim, CPM, Seoul Desmond Oliveira, ARM, Honolulu Nebraska Steven Kim, CPM, Los Angeles Nevada George Smith, CPM, Virginia Beach Kyungmi Kim, CPM, Busan Vanessa Williamson, ARM, Honolulu Emily Hotka, ARM, Omaha Danielle Leonardo, CPM, Ripon Erick De La Tejera, CPM, Las Vegas Yeonil Kim, CPM, Seoul Caleb Lin, CPM, Arcadia Leslie Simmons, CPM, Reno Washington Young Sung Kim, CPM, Seoul Illinois New Jersey Ricky Platt, CPM, Pleasant Hill Garret Quaiver, CPM, Seattle Mi Jung Lee, CPM, Seoul Irina Leykin, ARM, Northbrook Rosemary Gault, ARM, Mount Ephraim Lea Quackenbush, CPM, Encinitas New Jersey Sang Hyeok Lee, CPM, Seoul Sonya Shannon, ARM, Chicago Luis Ramirez, CPM, Fullerton Jungje Jo, CPM, Montville Canada Yeong Tae Lee, CPM, Seoul New York Alexandra Whittemore, CPM, Carson Adeayomi F. Adeyemi, CPM, Winnipeg, Yun Jae Lee, CPM, Seoul Indiana Jay Gelb, ARM, Brooklyn Kayan Yeung, CPM, Alhambra New York Manitoba Geumwon Mo, CPM, Seoul Kinda Parker, ARM, Hammond Marcia Prignon, ARM, Fulton Joe Largey, CPM, Rochester Jonathan Beck, CPM, Vancouver, Jae Hyung Park, CPM, Seoul Colorado Douglas Michaelson, CPM, British Columbia Young-Deok Won, CPM, Seoul Nathan Baumgart, CPM, ARM, Denver Port Washington Seung Won Woo, CPM, Seoul Japan Florida North Carolina Yusuke Araki, CPM, Osaka Russian Federation Ormanda Doucet, CPM, ARM, Cocoa Ila Smith, CPM, Wake Forest Misako Azama, CPM, Okinawa Dexter Anton, CPM, Saint Petersburg Jill Fussell, CPM, Orlando Suzanne Turner, CPM, Greensboro Kenji Hatamoto, CPM, Kumamoto Valentin Chubarov, CPM, Moscow Lauren Gengler, CPM, Lakeland Kazuhiro Hirose, CPM, Kanagawa Tatiana Khabarova, CPM, Moscow Melissa Kosciuszko, CPM, Jacksonville Ohio Kazuyuki Houzouji, CPM, Kumamoto Dmitry Shapovalov, CPM, Moscow Sarah Dorsey, CPM, Toledo Yasuhiro Iida, CPM, Saitama Olga Volodina, CPM, Moscow Idaho Julie Simono, CPM, Columbus Shinichi Ikuta, CPM, Fukuoka Laura O'Dell, CPM, Post Falls Toshiki Kanai, CPM, Tokyo Jeff Sudmeier, CPM, ARM, Boise Oregon Iori Kawabata, CPM, Kumamoto New ARMs Jessica Neufeld, CPM, Portland Shuta Kitajima, CPM, Tokyo Illinois Shannon West, CPM, Portland Takuma Kitanishi, CPM, Ageo Alabama Erin Weber, CPM, Chicago Hiroko Kochi, CPM, Tokyo James Buttke, ARM, Oxford South Carolina Hironobu Masui, CPM, Okinawa Indiana Lisa Kneiszler, CPM, Summerville Shigeru Miyata, CPM, Kumamoto Arizona Sarah Purser, CPM, Mishawaka Daigo Mori, CPM, Saitama Chad Matthews, ARM, Tucson Tennessee Hiroshi Motomura, CPM, Kumamoto Iowa Thomas Baird, CPM, Nashville Yoshihiro Nagashima, CPM, Fukuoka California Kate Mullinex, CPM, Des Moines Brennan Chapman, CPM, Collierville Takahiro Nakamitsu, CPM, Kumamoto Christopher Carnazzo, CPM, Nicole Samson, CPM, Nashville Eiki Nishikawa, CPM, Tokyo ARM, Oakland

Kazuyuki Nomura, CPM, Kanagawa Natasha Tucker, ARM, San Diego iStock.com/kate_sept2004 Image:

| | 36 | ® | July.Aug 2021 irem.org/jpm 37 New certifications

Hawaii Caleb Kim, ACoM, Honolulu

Indiana Mason McDonald, ACoM, Fishers

Maryland Koforola Aroyewun, ACoM, Laurel Eyo Ephraim, ACoM, Upper Marlboro Janay Pinnix, ACoM, Silver Spring

North Carolina ® Mary Batten, ACoM, Holly Springs IREM Maintenance and Risk Jeff Brasel, ACoM, Greensboro Management Skill Badge Pennsylvania Elijah Miller, ACoM, Scranton Image: iStock.com/coldsnowstorm Image:

North Carolina Canada Texas Effective building maintenance starts with a skilled maintenance team. And the demand for well- Crystal Brown, ARM, Hubert Jennifer Benedek, ARM, Toronto, Ella Hanoch, ACoM, Austin trained maintenance professionals is at an all-time high. Ontario Nancy Valdez, ACoM, Fort Worth Rhode Island Stephanie Grassi, ARM, Calgary, Jenni Woodruff, ACoM, Houston As a leading provider of real estate management education, IREM has expanded its curriculum to Lara Layfield, ARM, Coventry Alberta Ashikun Hoque, ARM, Calgary, Alberta Virginia include a Maintenance and Risk Management Skill Badge. By earning this Skill Badge, your Tennessee Eromosele Okebhagbe, ARM, Calgary, Jennifer Glomb, ACoM, Virginia Beach maintenance team will learn best practices and action steps for running a comprehensive Crystal Brown, ARM, Memphis Alberta maintenance and risk management program that reduces potential loss and preserves the owner’s Annie Retuya, ARM, Calgary, Alberta Canada investment. Texas Nidhi Shah, ARM, Oakville, Ontario Sarah Topping, CPM, ACoM, Kingston, Luis Diaz, ARM, Katy Ontario Cari Gill, ARM, Round Rock Cayman Islands Earning this badge requires taking an online course and exam Victoria Williams, ARM, Austin Alexandra McRae, ARM South Africa Sean Liebman, ACoM, Johannesburg Virginia Elements of the course include: Victoria Bailey, ARM, Newport News New ACoMs New AMOs Bobby Corbett, ARM, Portsmouth Alabama California • Developing a customized maintenance and risk management program Washington Caroline Welden, ACoM, Birmingham Buchanan Property Management Co., Brittany Bellamy, ARM, Bellingham Inc., AMO, San Diego • Conducting and monitoring property inspections Ethan Gibson, ARM, Seattle California New pricing! • Maintaining building systems Allison Schumer, ARM, Snohomish Lacey DeHart, ACoM, Fresno Florida $430 members Michelle Zaidi, ARM, Kenmore Jacksonville Housing Authority, AMO, Florida Jacksonville • Developing emergency and disaster plans $510 non-members Wisconsin Daniel Mitchell, ARM, ACoM, Brianna Espinoza, ARM, Middleton Jacksonville New York Kristy Schneider, ACoM, Jacksonville Rochester Management, Inc., AMO, Brazil Rochester Experience the difference a trained maintenance team makes in optimizing Francisco Lowndes Castel-Branco, Georgia ARM, Rio De Janeiro Fontella Arnold, ACoM, Conley Pennsylvania a building’s performance. Charlsie Charles, ACoM, Atlanta Magnolia Lane Properties, LLC, AMO, Bethany Hill, ACoM, Atlanta Quarryville Learn more at irem.org/skillbadges

38 | ® | July.Aug 2021 Budgeting requires both a view from 10,000 feet, or big picture, and one from ground Whether level, in the weeds. P15 it’s potluck dinners, holiday parties, or a simple hello, they treat these properties as more than just apartment communities; they embrace them as homes. P23 Image: iStock.com/PeopleImages Image:

It takes time, money, patience, and a group of visionaries. P11

You’re taking away an excuse for I was finally anyone who getting a chance says, ‘But I at personal slipped the redemption, an check under opportunity to the door.’ P31 become the humble servant leader that I knew resided somewhere deep

Image: iStock.com/RollingCamera Image: inside. P33

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