Journal of Property Management March/April 2020 Reboot+Renew Addressing 21St Century Challenges

Journal of Property Management March/April 2020 Reboot+renew Addressing 21st century challenges

›› 4 tips to attract new tenants ›› The compassionate property management approach to opioids ›› Japan rebuilds in the wake of a natural disaster Experience JPM® in a whole new way Read JPM on the go from your devices anywhere, any time at jpmonline.org

Contents March/April 2020

Features 22 16 Opioids in your property? By John Salustri

22 REME Awards: Taking a star turn 26 Fresh perspectives on prospective tenants By Nancy San Pedro, CPM

JPM Online Check out JPM’s brand new magazine website at jpmonline.org. Departments 06 Committee central 10 Global practices 04 14 Technology Dashboard Treasure hunting, the rental 20 2021 IREM Officer & deal-breaker and why experience RVP nominees slated reigns supreme 30 Talent management 32 Property spotlight 34 IREM Foundation 36 Government affairs 38 New certification recipients 42 Member updates 36

REM-008 43 On the road

Cover image: iStock.com/bernardbodo irem.org/jpm | | 1 Mar.Apr 2020 / Vol. 85, No. 2

President | Cheryl Gray, CPM

President-Elect | W.A. “Chip” Watts, CPM, CCIM

Secretary/Treasurer | George D. Griffin III, CPM, CCIM

CEO/Executive Vice President Denise Leduc-Froemming, CAE, MBA, CPA | [email protected]

Vice President, Knowledge Solutions Wendy Becker, J.D. | [email protected]

Vice President, Marketing and Business Development Donna August | [email protected]

Production Editor/Circulation Beth Smukowski | [email protected]

Director, Corporate Business Development/Advertising Sales Brian Lozell, CPM | [email protected]

JPM®, Journal of Property Management (JPM® ISSN 0022-3905) is published bi- monthly by the Institute of Real Estate Management, 430 N. Michigan Ave., Chicago, IL 60611. Internet: www.irem.org. This publication is provided as a medium for the expression of individual opinion concerning management practices and procedures. The articles and advertisements printed herein do not necessarily represent the endorsement of the Institute of Real Estate 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 assume no responsibility for claims made in advertisements or for opinions and statements Access to the latest expressed in articles. IREM®, Certified Property Manager®, CPM®, Accredited Residential Manager®, ARM®, Accredited Management Organization®, AMO®, Income/Expense Analysis®, Technology, Trends, & Expense Analysis®, MPSA®, and JPM® are registered marks of the Institute of Hot Topics whenever Real Estate Management. Reprints: Material in this publication may not be reproduced in any form you need it. without written permission of the publisher. For volume reprints or e-prints, email [email protected].

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Publication Management 847-205-3000 | glcdelivers.com Prefer real-time interaction? Check out our upcoming ACCELERATORS: Live Webinars schedule at irem.org/webinars President’s letter

Spring—a time of new possibilities

We’re entering the spring season, a time where dormant plant and animal life wakes up from hibernation and begins to regenerate, and we’re surrounded by invigorating growth. The property management world is never dormant—we were getting ready for spring Cheryl Gray, CPM since at least last autumn. Still, the energy brought on by the season’s renewal can inspire us, too. What’s going on in our practices that could use some new life, a refresh, a kick-start?

What about the people who work for us, our staff and IREM President Cheryl Gray, CPM, with her granddaughters at the 2019 IREM contractors? They’re actually doing a great job, but Global Summit Inaugural Gala maybe there’s something to be done to motivate them even more, or even just to support the fine work they’re the IREM Foundation using seed money from my husband, already doing. And while we often jump right to mone- Rick, and I, you may be able to reduce some of the risk that tary rewards as the answer, for many people, it’s often not keeps you from trying a new sustainability approach. The money that makes the difference. In the Talent Management article on P 34 will fill you in on Elaina’s story, the fund and column on P 30, several IREM members share approaches how it could support your sustainability initiatives. that have worked for them to keep workers happy and engaged throughout the year. Perhaps you’ll find some new And speaking of technology, there’s always something ideas there to try out in your own office. new to check out in the technology arena—new skills and products to either create better business processes, upgrade You could be inspired by the revitalization of Nature that existing ones or take on tasks to free up your time for other takes place in spring, which could lead you to think about activities that need your attention. If you’re looking for ways the sustainability strategy of your portfolio. You have all to invigorate your business with the latest advancements kinds of ideas about how to take advantage of new technolo- in property technology, please join me at Realcomm, the gies to reduce your environmental footprint, but their being annual conference that focuses on innovations in prop- new and perhaps untested could also make them financially tech. As we did last year, IREM will be collaborating with risky. So you’re reluctant to give them a try. Sustainability is Realcomm on a special Property Manager Technology & an area I have an extra personal Innovation Forum pre-conference event at Realcomm on connection with for several June 2 in Miami. I look forward to learning with you and To learn reasons; one of note is thanks sharing best practices at this event—as technology con- more about to a person who’s been both tinues to impact and inspire how we approach real estate Realcomm and the an industry professional and a management at the dawn of the new decade and beyond. pre-conference passionate protector of the envi- event, refer to the ad ronment—the mother of the on P 41 or visit irem. lovely girls with me in the photo org/2020realcomm above, my daughter, Elaina. for more information. Through a fund bearing her Cheryl Gray, CPM I hope to see you there. name that was established by IREM President

irem.org/jpm | | 3 dashboard The experiential advantage A competitive customer experience is no longer a nice-to-have. Consumers are demanding the best the internet has to offer—and companies that deliver are seeing better business results. Over the past year, experience-driven businesses grew revenue 1.4 times faster and increased customer lifetime value 1.6 times more than other companies. And the real estate sector is no exception. According to a recent Deloitte survey, 92% of commercial real estate executives plan to maintain or increase their experience-related technology investments in 2020.

Sources: Forrester, “The Business Impact of Investing in Experience;” Deloitte, “2020 Commercial Real Estate Outlook” High rise Connected living Oregon passed a measure in 2019 that Apartment renters expect limits post-inflation rent increases to 7%. seamless connectivity across The National Apartment Association living areas—from their unit released a study detailing how the same to the pool, and everywhere 7% limit would impact four U.S. cities that in between. have considered rent control. 91.2% of apartment residents Potential loss in property values say reliable cell reception is $655.6 million important $487.8 $462.2 million million $213.9 44% won’t rent without it million

Source: NMHC/Kingsley Associates, 2020 Apartment Resident Preferences Report Seattle Chicago Denver Portland

Source: National Apartment Association iStock.com/gradyreese Image:

4 | ® | Mar.Apr 2020 Treasures ripe “Only those who will for discovery The Urban Land Institute’s (ULI) 2020 Real risk going too far Estate Trends report predicts that flexibility and a willingness to rethink growth strategies can possibly find out will be key to success in a time of economic how far one can go.” uncertainty. — T.S. Eliot, author “Throughout this period of extended economic growth, real estate development has been dominated by creative mixed-use projects that have revived many urban areas,” said ULI Global Chairman W. Edward Walter. “Going ways asset forward, those who continue to innovate with spaces that can be easily be repurposed as managers cities evolve will have a competitive edge.”

make hold/sell The report listed the following cities—which recommendations have populations over 1 million and double- digit growth rates—as treasures ripe for 6 discovery as the next decade begins. Identification of the linkages between hold/sell recommendations and • Jacksonville, Fla. • Cape Coral/ budgeting decisions • Salt Lake City Fort Myers/ • Columbus, Ohio Naples, Fla. Calculation of estimated returns on • Cincinnati • Boise, Idaho investment at different exit points • Louisville, Ky. • Spokane, Wash. • Pittsburgh • Des Moines, Iowa Narrative accounts describing • Greenville, S.C. • Tacoma, Wash. the consistency of a hold/sell • Oklahoma City • Jersey City, N.J. recommendation with the underlying investment strategy

Unique hold/sell recommendations over the short-, medium-, and long-term

Formalized recommendations incorporated into the annual or quarterly reporting process

Ad hoc recommendations driven by changing market or property conditions

Excerpt from: Dustin C. Read, PhD/JD, What Real Estate Asset Managers Do, available at irembooks.org.

Image: iStock.com/Sean Pavone iStock.com/Sean Image: Source: Urban Land Institute, “Emerging Trends in Real Estate® 2020”

irem.org/jpm | | 5 committee central Image: iStock.com/FatCamera Image: A question of ethics Demystifying the process of reviewing ethical violations By David Barrow, CPM, and Regina (Reggie) Mullins, CPM

t’s three o’clock on Friday and mind if I leave a little early? I need to it’s beautiful outside. Crisp blue pick up my son so we can get on the Isky, mid 70s. The long weekend is road for our camping trip.” going to be beautiful, too. You were just thinking about heading out a “Sure, I was just thinking about doing little early to get started when a the same thing myself,” you say. light knock on your door brings you back to the familiar view of email Patrick says, “Thanks, I’ll see on your monitor. Your assistant, you Monday.” Patrick, slowly opens the door and walks in. You look at the envelope and notice it’s from IREM. Curious, you open it. “Hello Patrick, what can I do for you?” As you remove the contents and start More information about you say. reading the first page of the letter the Code(s) and the hearings marked “personal and confidential,” process is available at He smiles and hands you an envelope, you feel like you just swallowed a ball irem.org/ethics. “This just arrived for you. Also, do you of hot lead.

6 | ® | Mar.Apr 2020 and convincing” proof that a specific published discipline, that information … I am writing to inform you that article(s) of the Code(s) was violated by becomes public knowledge. an ethics complaint has been filed the member/AMO firm (“Respondent”). against you… “A complaint? What Article of the IREM Code Against me? Who reported me? I know of a situation in which is cited the most in complaints? Why? I haven’t done anything a fellow IREM member may Article 10. Compliance with Laws and unethical. WHAT DO I DO NOW?” have violated the IREM Code, Regulations is the most cited article although I was not personally in complaints since 1978. The Pledge, As an IREM member, finding out involved. What should I do? which includes a member’s promise you are the Respondent in an ethics As an IREM member, it’s your duty to maintain high ethical and moral complaint can be unsettling and under Article 7. Duty to Report in the standards, and to act with honesty, intimidating—particularly with all IREM Code to report behavior and integrity and industriousness, is the of the unknowns. But as an IREM activities that may be in violation of second most cited. member, you should know that the the Code(s) by filing a complaint. IREM ethics enforcement process The complaint must provide evidence I submitted a complaint but have provides for due process, is fair and facts that a violation may since resolved the issue with the and is extremely confidential. It’s have occurred. Respondent. Can I withdraw my also designed to hold members complaint? accountable if their actions are Will the member I file a Once a complaint has been filed, it determined to be unethical and complaint against know that may only be withdrawn if the Inquiry in violation of the IREM Code of it was me? Board accepts the withdrawal. Even if Professional Ethics (IREM Code) or Yes, but only if the Inquiry Board the matter has been settled through the AMO Code of Professional Ethics opens an investigation or determines other forums, the Inquiry Board may (AMO Code). The process from start that the complaint has merit on its forward the complaint—in which case to finish is a very structured one. face and that a possible violation may the chair would become the Com- Understanding the full process— have occurred, and then forwards the plainant—if there is probable cause from finding out a complaint case to the Hearing Board for a hear- that a violation of the Code(s) may has been filed and merits further ing. If the Inquiry Board determines have occurred. review, to a possible hearing, to an the complaint does not have merit, it appeal—can be helpful. Here are will be dismissed and the Respondent My complaint clearly showed some frequently asked questions that will not be notified that a complaint the Respondent did something address important information for was even filed. wrong. Why would it be both Complainants and Respondents. dismissed? Can I find out if I or another If the Inquiry Board dismisses a Who can file a complaint? member or AMO firm has been complaint, it does not mean they Anyone—a fellow member, an involved in an ethics complaint? don’t believe the Complainant. employee, a tenant, a resident, an IREM does not disclose the names of Rather, it means they did not find owner—can file a complaint against any Complainants or Respondents, or probable cause that violation of an IREM member or AMO firm. whether or not a complaint has been the Code(s) may have occurred. filed. However, if an IREM member or Many complaints suggest business Can a complaint be filed AMO firm is found in violation of the or personal disputes rather than anonymously? Code(s) and the Hearing Board imposes unethical behavior. As a matter of due process, the party who files a complaint (“Complainant”) needs to be identified. If the complaint As an IREM member, you should know has merit on its face and is forwarded by the Ethics Inquiry Board (“Inquiry that the IREM ethics enforcement process Board”) to the Ethics Hearing and provides for due process, is fair and is Discipline Board (“Hearing Board”) for a hearing, it is the responsibility of the extremely confidential. Complainant to provide “clear, strong

irem.org/jpm | | 7 committee central

When should I expect Upon receipt of the Notice, the Respon- the Hearing Board, and may or may notification regarding the dent has 30 days to provide a written, not be published. complaint I filed? detailed response to the complaint. You’ll receive confirmation that your This response serves as the primary Who can appeal the decision complaint has been filed once received basis for the Respondent’s case and is of the Ethics Hearing & by IREM Headquarters. The process of provided to the Complainant and the Discipline Board? evaluating complaints can be exten- Hearing Board prior to the scheduled Within 15 days of receipt of the Hear- sive and includes detailed review of hearing, so it’s very important that it ing Board’s decision, the adversely the alleged violation(s), examination thoroughly addresses the allegations. impacted party (the Appellant) may of supporting evidence, and lengthy request an appeal. The Request for deliberations amongst the Inquiry If I’m the Respondent and don’t Appeal must clearly state why the Board before making a determination. submit a response when notified decision of the Hearing Board should The Inquiry Board meets approxi- of a complaint, what happens? be modified, reversed or remanded mately once a month. If a response is not filed within the and is solely based on the arguments 30 days, it may be assumed that the and facts presented during the hear- What decisions can the Respondent does not wish to contest ing. The Ethics Appeal Board’s (“Appeal Inquiry Board make regarding the allegations. The hearing will move Board”) decision is final and binding. a complaint? forward for the Hearing Board to The Inquiry Board reviews all com- make its decision. Can the Complainant request plaints to determine whether there is an appeal if they believe probable cause to believe that a violation When and where are the Respondent’s discipline of the Code(s) may have occurred. The hearings held? wasn’t enough? Inquiry Board can do one of the follow- Hearings are typically scheduled Discipline imposed by the Hearing ing: request additional information from during the annual IREM meeting Board cannot be appealed. the Complainant and/or Respondent in the fall. Virtual hearings may be and open an investigation; dismiss the scheduled if the annual IREM meeting complaint; or forward the complaint to is more than six months away. the Hearing Board for a hearing. Who participates in a hearing? My complaint was forwarded for The chair of the Hearing Board, a a hearing. Does this mean the Hearing Panel (comprised of 7-10 Respondent is guilty? Hearing Board members), the IREM It’s important to understand that no Ethics Administrator, IREM legal David Barrow, CPM, is the head of the one is “guilty” or “not guilty,” as IREM counsel, a court reporter, the Com- commercial real estate division for Dodson is not a court of law. Rather, IREM plainant, the Respondent, and any Commercial in Richmond, Va. He is also the members can be found in violation witnesses and/or legal representation 2020 vice chair of the IREM Ethics Committee and has served as chair of the Region 3 or not in violation of the Code(s). of the parties. Hearings typically last Education Committee and president of the When a complaint is forwarded to about 90 minutes. Central Virginia Chapter. the Hearing Board for a hearing, it’s up to its members to make the What is the potential discipline determination whether a violation for a violation? actually occurred. If the Hearing Board finds the Respon- dent in violation, the Hearing Board I am the named Respondent in a may impose discipline but is not obli- complaint. What happens next? gated to do so. Discipline may consist Upon a complaint being forwarded to of a letter of censure, or suspension or the Hearing Board, the Complainant termination of membership. A letter Regina (Reggie) Mullins, CPM, CCIM, is a and Respondent are sent an “Offi- of censure may be conditioned on the director for Cushman & Wakefield, AMO, in cial Notice of Ethics Hearing,” which Respondent completing education Arlington, VA. She is a past IREM president and is currently an IREM instructor as well as includes the date and time for the requirements, public service or other a member of the IREM Foundation board of hearing and a copy of the full complaint. action that is determined relevant by directors and IREM Ethics Discipline Committee.

8 | ® | Mar.Apr 2020 Learn on the go with the new IREM® Learning app

Don’t let your busy life prevent you from expanding your knowledge. Our new IREM Learning app helps you get the courses, assignments, and exams you need to get done on time simply by using your phone or tablet. Course content is even downloadable for offline access.

Download today, or visit irem.org/IREMLearningapp for more info.

For those who manage to make a difference.™ global practices

Ishinomaki: an old locomotive that was moved from its original place by the tsunami Image: iStock.com/egadolfo Image: Period of adjustment A major earthquake nine years ago continues to change property management practices in Japan By Michiyo Matsumoto, CPM

n Japan, 2019 was a year full of It suffered the most damage of any natural disasters: Historically city in Japan during the Great East Istrong typhoons and torrential Japan Earthquake and tsunami in rain caused widespread landslides March 2011. Of the city’s 74,000 exist- and flooded rivers across the country. ing buildings, 76.62% suffered some Nearly nine years The road to recovery continues to be form of damage, and 20,039 were later, property long and arduous for municipalities completely destroyed. with damaged buildings. management Nearly nine years later, property man- companies in The 2011 experience of Ishinomaki agement companies in Ishinomaki are City, located in northern Japan, still recovering from the direct and Ishinomaki are still provides insight into how a natural indirect effects the disaster had on the recovering from the disaster can affect the real estate city’s real estate market. market, public housing laws and the direct and indirect property management industry, and Public vs. private housing effects the disaster how companies can recover afterward. It is critical to take into account how public housing laws affect the market had on the city’s Effects of the disaster after disasters. From 2011 to 2016, the real estate market. Ishinomaki is the second largest city occupancy rate in Ishinomaki City was in Miyagi Prefecture after Sendai. over 95% due to the demand created

10 | ® | Mar.Apr 2020 by the disaster. Following the disaster, Private management companies can 21% of households moved into post- remain competitive by focusing on the disaster public housing. This munici- right market. For households above a Households that were pal housing owned by the government certain level of income, it’s more expen- dual-income before the was made available only to those sive to rent post-disaster public housing directly impacted by the disaster. In than a private residence. It’s critical to disaster have reduced 2019, regulations on who could apply have housing that they want to live in. the number of hours for public housing in Ishinomaki City they work to suppress were lifted, and access to public hous- At our company (Matsumoto Sangyo ing was made available to the general Inc.), we are focusing on 3- and 4-bed- their income in order to public—not just to those households room apartments, not the 2-bedroom lower housing costs. impacted by the 2011 disaster. Man- units that are often found in public agement companies began losing their housing. We’ve also been working to share of the market to the government attract higher income tenants. Overall, instead of competing against each the luxury apartments and single- other for potential renters. family homes they rent (with monthly rents of 90,000-120,000 yen or After the disaster, 4,446 govern- $850-1,100) make up only 0.5% of the ment-owned public housing units market, but there is less competition were built throughout the city. These because other companies have fewer buildings are not managed by private of these units. management companies, but rather by corporations designated by the Public Attrition of property managers Housing Act. Private building mainte- and market challenges nance companies can bid on the system Even before the disaster, Ishinomaki maintenance work at post-disaster pub- didn’t have many companies providing lic housing, but designated companies property management services, but take care of all property management after the disaster there has been an and asset management work. increase in companies that provide only leasing services or brokerage.

Furthermore, the lower a household’s Only 15 of the 113 real estate compa- Ishinomaki, six months after income is, the lower the rent will be, nies are in the property management the 2011 tsunami which has been linked to a drop in the labor force; households that were dual-income before the disaster have reduced the number of hours they work to suppress their income in order to lower their housing costs.

Today in Ishinomaki City, a family with a household income of four million yen (approx. $37,000) can rent a three-bedroom public housing unit for 36,000 yen (approx. $330) a month. Market rate for comparable units is 80,000 yen (approx. $740). Given these numbers, it’s difficult to imagine the household opting to live in a privately owned building. Currently, the occupancy rate for private housing in the

city is less than 70%. iStock.com/krestafer Image:

irem.org/jpm | | 11 global practices

business, and most of these only do Industrial, manufacturing and freight collection and leasing. companies also reacquired areas hit by After disasters, the tsunami because their businesses managers should Management fees have fallen as the were tied to industrial ports. vacancy rate has increased. Com- become experts on the panies blame the lack of human People want to live where there are city recovery plan and resources for neglecting periodic stores and shopping centers, so this all related laws. inspections of properties, ignoring served as indirect business opportuni- income and expenses, and omitting ties for residential managers. management plans for renovations and improvements; the concept of Matsumoto Sangyo Inc. is 52 years maximizing the value of a property old, and we’ve taken the disaster as an is getting lost in the shuffle. opportunity to diversify the location of our real estate holdings throughout The result is that buildings are begin- Japan. Unlike specialized businesses ning to deteriorate, and more and in major metropolitan areas, local real more are going vacant. The brokerage estate companies are expected to be business is following the same path full service, ranging from leasing and as leasing after a long period of high brokerage to development and manage- demand due to the earthquake, ment. We have overcome difficult times which made it easy and affordable by responding to all of our clients’ needs. to find buyers. What next? As the population ages, another major In 2020, IREM Japan will hold its challenge will be to stop the growth of Annual Meeting and Award Ceremony vacancies that have come about from in Sendai, the largest city in Miyagi the rising number of single-person Prefecture. Attendees will have the elderly households. opportunity to see firsthand how the disaster affected the city and what the Don’t lose sight of commercial response has been. As we approach real estate! the ninth anniversary of the earth- Demand doesn’t go away when a disas- quake, we continue to struggle with ter hits. The disaster also caused major population decline. shifts in commercial real estate. After disasters, managers should Major corporations closed branches become experts on the city recovery and offices and acquired properties in plan and all related laws. What are the alternate areas to consolidate. Prop- best tax strategies for owners? Are the erty and casualty insurance companies managers familiar with public assis-

Michiyo Matsumoto, and life insurance companies moved tance? Do they know where new rental CPM, is the CEO to relocate especially quickly, as did housing will be built? Which buildings of Matsumoto large car dealerships. will be renovated and which demol- Sangyo Inc., based ished? How should owners repay in Ishinomaki City. She started On the other hand, shopping centers, current debt? Should it be refinanced? in the property smaller shops and restaurants made management industry the completely opposite decision based CPMs should provide owners with after the bubble burst in Japan, on a trade area study. Even in disaster answers to these questions along and in her current areas that were covered by 10 feet of with their usual sound advice, just, role has helped her tsunami, they decided to repair and in this case, formulated for disaster company grow after the Great East Japan open stores or acquire land as long as recovery—this is the key to competing Earthquake. they expected to have a customer base. in the new market.

12 | ® | Mar.Apr 2020

technology

Among your many considerations in this moment is how technology systems will help or hinder your response to the hurricane. Is that technology another important concern—or does it give you hope that your company can handle the emergency ahead? Several technologies have changed the way companies prepare for and respond to disasters.

Let’s look at some of these technologies and how they can help respond to the hurricane in our scenario.

The Cloud Cloud-based systems offer significant benefits in the face of disasters. They are less vulnerable to damage than traditional solutions, which don’t provide the redundancy of distributed architecture. During storms, fires, earthquakes and other disaster events, local infra-

Image: iStock.com/dusanpetkovic Image: structure is often devastated. Even if those onsite servers tucked in a corner room of your company’s office remain Technology in the unscathed, power and cable infrastruc- face of a disaster ture often become damaged. Emergency and disaster planning How it can help—or hinder—your response considerations should be part of the equation as your company considers By Greg Cichy, CPM which aspects of technology infrastructure to move to the cloud.

magine this scenario: Your com- The hurricane hits landfall as a Cat- pany manages a diverse portfolio egory 3 storm with high winds and Iof medical office buildings, mixed- You have 24 hours storm surge. Your company’s key sys- use properties and student housing to get ready. tems and data are safe in a data center in the greater metropolitan area of a a thousand miles from the coast. You medium-sized coastal city. A tropical access everything you need to manage storm builds in the Atlantic during A maintenance problem pops up and your properties—property manage- a particularly busy time of the year, keeps you occupied over the next day, ment software, work order system, as students return to the local uni- so when you receive an alert on your document management, access con- versities in the area and the annual phone about the approaching hurri- trol—when you are able to get Wi-Fi budgeting process is about to kick off. cane, you are caught by surprise. at an inland coffee shop, where the damage is less severe. You keep an eye on the weather—not The Category 4 storm is now projected too concerned, as the forecast indi- to hit your coastal city and dump Internet of Things (IoT) cates the storm will stall and lead to a a record amount of rainfall on the IoT is changing real estate manage- few days of moderate rainfall, at worst. region. You have 24 hours to get ready. ment. It is also changing disaster

14 | ® | Mar.Apr 2020 management. The sensors of an IoT insurance adjuster and tree removal normal operations as electricity. system and the data they gather can company, and repairs move forward. If we can count on power already provide real-time, hyper-local informa- working at our properties, we can tion on weather, occupancy, building Microgrids reduce costs and decrease response entry points, HVAC performance and Microgrids provide local power gen- times during disasters. indoor air quality. eration, rather than relying on vast utility networks. Microgrids at the In the hurricane scenario, a mixed-use A disaster can throw building opera- property level are typically renewable property you manage is located by a tions out of whack, to say the least. If energy systems, such as combined large, regional hospital. A microgrid you and your team can identify issues heat and power (CHP) or solar, which in the area keeps the power on at your as they happen, or quickly pinpoint may be used in conjunction with property, while hundreds of thousands them when the immediate emer- onsite battery storage. utility customers remain without gency is over, you will have a leg up in energy for a week. returning to normal operations. These site-based systems are likely not useful in the event of a disaster, Other technologies After the storm, the IoT-enabled build- due to damage and power surges. Other technologies are playing ing management system at one of the However, public-private partnerships significant roles in disaster planning medical office buildings you manage are experimenting with larger, local and response. Emergency response catches an indoor air quality issue— microgrids as resilience and disaster teams use technology to organize and soaring CO2 rates in one zone of the management tools. coordinate their activities. Artificial building. The system automatically intelligence is helping government adjusts ventilation to compensate, and The organizations involved in these agencies and municipalities better your engineering team discovers some efforts are placing the microgrids in predict disaster impacts. Social net- damaged dampers. These dampers are areas of vulnerable facilities or popu- works have been crucial in accounting quickly replaced, bringing the system lations—by hospitals and schools, for for friends, family and co-workers. back to working order and CO2 levels example. The properties in the area of within normal limits. these microgrids will benefit from this No matter the technology, disasters local power generation in the event can and will inflict some amount of Drones of a disaster, so keep an eye on this damage on your business and prop- Drones are working in many emerging technology and any microg- erties. They may even result in death industries to improve access to hard- rid programs in your area. and injury. This is perhaps the most to-reach areas, provide imagery for crucial benefit of technology—the different purposes, detect security “Microgrids provide security, savings right technologies can free you up to issues and gather data. There are com- and sustainability that benefit focus on the safety and well-being of panies that target their drone services properties not only during power your staff and occupants, along with to the real estate management indus- outages, but also during normal the recovery process ahead. try for property inspections, aerial conditions,” says Geoff Oxnam, CEO photos, security assessments and a of American Microgrid Solutions range of other services. in Easton, Md. “They are playing an increasingly important role as the In our scenario, the storm causes a power grid evolves.” tree branch to fall into a student living community in your portfolio, damag- The broad deployment of microgrids ing the siding and roof. To determine would be valuable development in the extent of the damage, you call the keeping the lights on, which is so drone services firm your company has important during a disaster event. At Greg Cichy, CPM, is managing director of real estate management services for the Washington partnered with. They use a drone to my company (Colliers International, D.C. metro area at Colliers International, AMO, inspect the damage and discover that AMO), our emergency response in Washington D.C. His IREM roles have included some repairs will be necessary, but the professionals often travel with gen- leadership positions such as president of the West Central Maryland Chapter and regional vice integrity of the building envelope is erators because nothing has as big president, and he is currently chair of the IREM intact. The firm sends images to the of an impact on our ability to restore Technology Advisory Board.

irem.org/jpm | | 15 feature | opioids Opioids in your property? Vigilance and compassion are key

By John Salustri

No one is immune. alcohol and prescription meds. “Age, Opioid abuse has entre to every family, social status, economics and even life every business, every building. Prop- priorities all play a part,” says Minerd, erty managers, of course, are charged who has 29 years of law enforcement with the safe, clean management of behind him. their clients’ assets, and the first line of defense here is vigilance. But abuse is not always a case of addiction or a crime of profit. “Some- Opioid use is property specific, says one goes to the dentist and comes Rick Minerd, the Columbus, Ohio- back with a prescription,” he says. based business development manager “The person they’re sitting next to and consultant at Safe Passage Con- might have a headache, and—we see sulting. (IREM members might recall this all the time—someone shares that Safe Passage representatives their prescription medications with spoke at last year’s Global Summit in someone else in the office. People San Francisco, where they addressed don’t realize that this is also illegal.” the topic of active shooters.) (See sidebar on P 18.)

But he is quick to add that catego- Taking a broader view rization is tough, and broad-brush Minerd suggests that it’s unwise to assumptions are dangerous. Street- silo opioids out in terms of an abuse level drugs might be seen more crisis. “The best way to look at it frequently in retail settings, where would be through the broader lens there’s high turnover, or in areas of of substance abuse and addiction,” lower economic advantage. Office set- Minerd says. “Twelve percent of kids

tings might be more prone to abuse of throughout the country live with a iStock.com/filadendron Image:

parent who suffers from some type starting with cameras, lights and of substance abuse, whether it’s drugs alarms, in addition to a physical The person they’re or alcohol.” human presence, is key. But security sitting next to might alone isn’t enough. Policy development In buildings of multiple access, is also needed. “We work with compa- have a headache, whether it’s an office, retail setting nies all the time to develop protocols and—we see this all or multifamily property, there are for dealing with abuse and prevention the time—someone physical signs of issues, especially from a human resources perspective when it comes to opioids. Stairwells, as well as a security perspective,” he shares their prescription restrooms and parking lots are always says. Even a concierge can serve as a medications with primary points of illicit activity, he first line of defense. “Greeting people someone else in says, and there are signs that can with a ‘May I help you’ oftentimes indicate trouble at a property. Para- makes all the difference in creating the office.” phernalia left behind in any of those a safe environment.” —Rick Minerd, Safe Passage places and the presence of people Consulting or vehicles that don’t belong on the Andrew Swinkoski, ARM, LEED® Green premises can all be signs of trouble. Associate™, knows first-hand what to look for. His career has been built Start—but don’t stop— in Section 8 government-subsidized with security housing, and he specializes in “manag- Whatever the drug of choice, Minerd ing troubled assets,” he says. Before he says that a strong security strategy, started his own firm, he was managing

An opioid primer

More than 10 million Americans as well as fentanyl and methadone, including the costs of healthcare, lost older than 11 misused opioids in 2018, according to the Center. productivity, addiction treatment and according to a recent CNN report. criminal justice involvement. That includes 9.9 million users of pre- The Center makes it clear that natural scription pain relievers and more than does not mean safer. Indeed, according The critical issue, of course, is not so 800,000 heroin users. to the Centers for Disease Control much in definitions as much as what’s and Prevention (CDC), the latest sta- being done about it. According to the Heroin is an opiate, a class of drugs tistics reveal that: More than 70,000 National Institute on Drug Abuse, the naturally derived from the poppy plant, “drug overdose deaths occurred U.S. Department of Health and Human which also includes morphine and in the United States in 2017. The Services is focusing on five priorities: codeine. Opioids refers to all drugs, nat- age-adjusted rate of overdose deaths ural and concocted in a lab, that, says increased significantly by 9.6% from • Improving access to treatment and the Center on Addiction, “bind to the 2016 (19.8 per 100,000) to 2017 (21.7 per recovery services; brain’s opioid receptors, the parts of the 100,000). Opioids—mainly synthetic • Promoting use of overdose-reversing brain responsible for controlling pain, opioids (other than methadone)—are drugs; reward and addictive behaviors.” currently the main driver of drug over- • Strengthening our understanding of dose deaths. Opioids were involved in the epidemic through better public So while all opiates are opioids, not all 47,600 overdose deaths in 2017 (67.8% health surveillance; opioids are opiates. The larger cate- of all drug overdose deaths).” • Providing support for cutting-edge gory also includes synthetics such as research on pain and addiction; and prescription painkillers hydrocodone The CDC estimates that the economic • Advancing better practices for pain (Vicodin) and oxycodone (OxyContin), toll comes to $78.5 billion annually, management.

18 | ® | Mar.Apr 2020 a property in the Midwest, in which continues to build, and eventually you he found drugs in most units. “It’s not start wanting pain meds when you’re uncommon from my experience.” It opened my eyes and not even in pain.” It even begins to trick the mind into believing you’re There’s significant irony in that my understanding in pain, he adds. statement, an irony that also folds of what people and into a scenario that demonstrates the communities go Realizing he was on a dangerous path, need for compassion—a subject we’ll through when there’s he consulted with his doctors. “We had explore shortly. a long meeting, and we decided that that sort of addiction.” we were going to gradually decrease Swinkoski expands on Minerd’s obser- the dosage and the frequency.” —Andrew Swinkoski, ARM, vation by distinguishing between use LEED® Green Associate™, Integra and sale. Addiction in your community, Affordable Management Gradually decreasing the potency he says, is a much more difficult situa- of medication made him feel like he tion to detect than dealing. If someone wasn’t taking anything at first. “My is selling, Swinkoski agrees with body had become accustomed to the Minerd: “You can identify that from same dosage for years.” traffic, security cameras, complaints But, Swinkoski continues, he is bound from residents and the local commu- by Fair Housing regulations, and any Swinkoski made another important nity, as well as unit inspections,” he help he might offer “cannot go above decision in the hospital. That was says. “Generally, the majority of the and beyond what I would do for every- when “the idea and the concept of time, the neighbors know and file one else. I have to be able to give it to Integra occurred. The company was complaints in the office.” everybody. That’s a sensitive issue.” formed and the groundwork was done remotely from the hospital bed.” Annual unit inspections, required A different kind of for government-subsidized housing, firsthand perspective The process of detoxification wasn’t are scheduled and as such can be Swinkoski, who is also an ARM easy or short. But today, he reports less effective in cases of abuse than representative governing councillor he takes no meds whatsoever, a rare surprise inspections. Nevertheless, in and serves on IREM’s Legislative and occurrence for people in his situation. his experience, he has come across Public Policy Board, knows whereof The company he launched manages prescription bottles with the labels he speaks. In 2015, after handling Section 8 housing. “It’s going fantas- removed and large amounts of pills in drug issues in the properties he tically. We have 18 properties spread bags, both major indicators. managed, he was struck by a car, throughout the country, with more And that’s when the authorities get and then run over, while on his to come.” involved. “Then, you have to call the motorcycle. He spent almost three police, who’ll confiscate the drugs years in the hospital. He took something else with him and search the unit,” he says. Under when he left the hospital: “It opened regulations spelled out by the U.S. “As I awoke from a coma, I found they my eyes and my understanding of Department of Housing and Urban were giving me massive amounts of what people and communities go Development, “that leads to filing evic- opioids and other pain medications,” through when there’s that sort of tion paperwork immediately.” he recalls. These included propofol, addiction. It allows you to pick up on the same drug that is reported to certain behaviors you wouldn’t other- But use is a more delicate situation. have contributed to the death of wise notice.” “It’s tricky,” says Swinkoski, who today Michael Jackson. is founder and managing partner Vigilance is key. But vigilance with of Integra Affordable Management, “Doctors prescribed strong pain compassion, as Swinkoski says, allows LLC, in Chicago. “If someone in your medications, which interact with managers to see the human side of property is using, the best thing is to your system,” Swinkoski recalls. Even the problem. have resources and literature available though the effects are short-lasting, along with community contacts they the feeling of alleviating pain “is some- John Salustri is a contributing writer can reach out to.” thing you begin to look forward to. It for JPM.

irem.org/jpm | | 19 special | Officer & RVP nominees

Birmingham, Ala., home of 2021 President W.A. “Chip” Watts, CPM, CCIM Image: iStock.com/Sean Pavone iStock.com/Sean Image: Officer & Regional Vice President nominees slated

The IREM Nominating Committee has announced its slate of nominees for 2021 IREM Officers to serve with 2021 President W.A. “Chip” Watts IV, CPM, CCIM, of Watts Realty Co., Inc., AMO, in Birmingham, Ala. For the one-year term that begins at the conclusion of the 2020 annual IREM meeting through the conclusion of the 2021 annual IREM meeting, the nominees are:

Nominees for 2021 IREM Officers

2021 President 2021 President-Elect 2021 Secretary/Treasurer W.A. “Chip” Watts IV, CPM, CCIM George D. Griffin III, CPM, CCIM Renee M. Savage, CPM, CCIM Watts Realty Co., Inc., AMO Houston Housing Authority, AMO Capital Growth Properties, Inc., AMO Birmingham, Ala. Houston La Jolla, Calif.

20 | ® | Mar.Apr 2020 Nominees for 2021-2022 Regional Vice Presidents In addition, the IREM Nominating Committee has announced its slate of nominees for 2021-2022 Regional Vice Presidents. For the two-year term that begins at the conclusion of the 2020 annual IREM meeting through the conclusion of the 2022 annual IREM meeting, the nominees are:

Region 2 Christine E. Lacy, CPM Region 5 Debbie K. Prejeant, CPM Region 6 Anne C. Ficeli, CPM Inglis Housing Corporation Latter & Blum Property Management, PURE Real Estate Philadelphia Inc., AMO Management Services New Orleans Grand Rapids, Mich.

Region 8 Angelina M. Scarcelli, CPM Region 11 William Sheridan, CPM Region 12 Jason J. Jackson, CPM, ARM Colliers International, AMO Sfinvest, AMO Kiemle Hagood Las Vegas Chico, Calif. Spokane, Wash.

The election of IREM Officers and Regional Vice Presidents will take place at the Governing Council meeting held in conjunction with the IREM Global Summit in Toronto, on October 23, 2020. IREM bylaws provide for additional nominations for Officer and Regional Vice President positions. Any additional nominations must be made by a petition signed by at least 15 members of the Governing Council and delivered to the IREM CEO/Executive Vice President at least 10 days in advance of the date set for the election.

Region 13 Amy L. Hedgecock, CPM Fowler & Fowler Realtors High Point, N.C. We are also pleased to announce Barry G. Blanton, CPM that the IREM Nominating Blanton Turner, AMO Committee has chosen Seattle Barry Blanton, CPM, to be the 2021 IREM Secretary/Treasurer Nomi- nee. He will be slated for election as the 2022 Secretary/Treasurer at the 2021 IREM Global Summit.

irem.org/jpm | | 21 feature | REME Awards

Three REME Award winners demonstrate notable innovation and social initiative

REM’s REME Awards celebrate achievements in real estate management in several categories, including ICorporate and Social Responsibility. IREM found two organizations that presented such compelling projects in this category that both were acknowledged with REME Awards. And, in the Corporate Initiatives category, IREM recognized a China-based company, the first REME Award for the nation.

Corporate Initiative Award: Shenzhen UNOVA Business Management Co., Ltd.

In March of 2018, Shenzhen UNOVA Business Management Co., Ltd., acquired a management and operations contract for a 15,000-square-meter space in a commercial annex in its home city of Shenzhen in southeastern China. UNOVA performed a major renovation, converting it into a co- working and retail space in the heart of Shenzhen’s central business district.

According to Jessie Hou, general manager, the renovated space, which opened in February 2019, is designed to welcome businesses and individuals primarily in marketing and creative fields. UNOVA saw that most existing co-working office space was very formal and tailored to meet the needs of traditional businesses. UNOVA’s hope was that a more relaxed and inviting space would have greater appeal to a The renovated younger demographic and those in burgeoning business sectors like social media, marketing, media arts and other space, which opened creative ventures. in February 2019, is designed to With an 80% occupancy rate achieved within three months of their soft opening, it’s clear they’ve succeeded. welcome businesses and individuals UNOVA offers two types of working spaces—fully furnished, primarily in independent office space, and communal, co-working space. marketing and In addition, there’s a hotel-style front desk and reception area with a 100-square-meter LED screen that features creative fields. the tenants’ company logos. Meeting rooms are available —Jessie Hou, general manager, for presentations or training, and there are 20 rooms Shenzhen UNOVA Business designated exclusively for videoconferencing and client Management Co., Ltd.

22 | ® | Mar.Apr 2020 Taking a starturn Image: iStock.com/xavierarnau Image:

irem.org/jpm | | 23 feature | REME Awards negotiations. Business support for tenants is available echoed throughout the space, destroying the sense of calm at the business center, which goes beyond receiving expected in a medical office. package shipments and faxes by offering business consulting services. After hiring an architectural firm, Sicoli oversaw the start of the structure’s renovation in March 2017. The initial Another feature that defines this facility is the inclusion challenge was the removal of the old structure. To keep the of retail businesses such as cafes, salons and gymnasiums offices open during construction, scaffolding was erected available not only to tenants, but also to the public. along the interior walls of the atrium. Because the atrium floor is over a parking garage, engineers did not think it safe To fill the enterprise’s technology gap, UNOVA partnered to bring in cranes or other heavy equipment to remove the with co-working space operator Distrii to provide the latter’s atrium covering. advanced intelligent office app, allowing tenants to reserve and interact with smart meeting rooms and intelligent work Over the course of just one month, the polycarbonate roof- stations, and to control office access. The app also has human ing was cut into chunks and brought down. Workers then resource functionality for tenants to clock in and out and to had to cut apart each of the 1,300-pound steel beams into communicate with other businesses in the building. manageable pieces that could be lowered on ropes by hand to the floor. In the end, seven tons of steel was shipped off Additional features include four living rooms, each with a for recycling. different theme; a communal bar and kitchen; 10 detached phone booths; a mini-library; and custom, modern furniture. The new covering installed is an attractive white textile fabric supported by a tensile structure. Similar coverings have As a more welcoming sort of co-working space in the region, been used around the world in airports and sporting venues, UNOVA hopes to become the recognized brand for this and the textile is valued for its versatility and sustainability. business model and has plans to replicate it in other cities During installation, leftover fabric remnants were fashioned across China—among them Beijing, Shanghai and Hang- into tote bags for tenants and visitors, rather than sent to zhou—as well as internationally. an incinerator.

Corporate and Social Responsibility The new fabric structure overlaps the existing building Award: Southwest Clinical Center roofs but is open along the edges to allow heat to escape and provide for better air circulation. Moreover, the fabric Brasília, the capital city of Brazil, is a unique urban environ- makes an ideal canvas for lighting effects; Sicoli notes that ment with thoughtful city planning and striking modern different colored lights are illuminated to mark health architecture that have made it a United Nations World observances, such as pink lights in October for breast can- Heritage site. cer awareness and blue in November for prostate cancer.

In this city of remarkable buildings, there is a unique gem—the Southwest Clinical Center, which opened in 2003 and is home to nearly 100 medical professional offices. Marcelo Sicoli has served as the center’s general manager for eight years.

In 2010, it became clear that the roof covering the building’s central atrium was in need of a serious renovation. The atrium’s polycarbonate plastic covering was broken and discolored, having collected dust and grime that could not be washed off. Even though it was hazy, the plastic roofing created a greenhouse effect, generating serious heat spikes that taxed air conditioning systems. In addition, during strong October rains, the roof leaked and Southwest Clinical Center in Brasilia, Brazil every raindrop generated thunderous plinks that

24 | ® | Mar.Apr 2020 The project was a finalist in the 2017 World Demolition a recreation area (like a youth playground) and the other Summit—the only commercial building to enter the provides commercial grade fitness equipment for their worldwide demolition competition usually dominated by on-site wellness center.” Having access to these amenities construction and demolition contractors. In the same year, encourages residents to be active and live a healthy lifestyle. the building was awarded first prize for Best Resources Project by Facilities Management from the Chartered Insti- With their footprint sitting along the coast, CAHEC’s port- tution of Wastes Management in the United Kingdom. folio is always challenged with hurricanes, tornadoes and sometimes ice. To address this problem, their Foundation Corporate and Social Responsibility also offers a Disaster Relief Initiative to help residents in Award: CAHEC a time of crisis. Properties are eligible to apply for grants of up to $3,000 to provide immediate resources—like food, As one of the largest nonprofit regional equity syndicators water and temporary shelter—to impacted residents. “We in the U.S., CAHEC secures funding to invest in afford- reach out to properties if we know there’s a possibility that able housing for low-income seniors, families and people they’ve been affected, especially during hurricane season,” living with special needs. With more than 700 properties Lee says. “We’re always looking for ways to help our resi- comprising more than 32,000 units, CAHEC provides safe, dents, and this is just a small way we can help them get back affordable housing for low-income residents throughout on their feet and let them know we care.” the southeast and mid-Atlantic states. Beyond housing, their philanthropic entity, the CAHEC Foundation, provides life-changing opportunities to residents with a focus on wellness and education.

According to Stefanie Lee, community relations specialist, CAHEC has been funding these initiatives for residents since 1999. “We’re proud to have invested over $15 million to help our residents and their communities succeed,” she says. Lee reports that CAHEC relies on the property managers who talk with residents every day to identify unmet needs. “We ask managers, developer partners and residents for feedback to ensure we offer initiatives that best suit their current needs,” she says. “If a CAHEC Foundation volunteers participate in Giving Tuesday, hosted by With more than program is outdated or not the Food Bank of Central & Eastern North Carolina 700 properties working, we have no problem making adjustments, Being socially responsible is not only an institutional com- comprising more phasing out initiatives or mitment at CAHEC, the company volunteers year-round, than 32,000 developing new ones.” too. The Raleigh, North Carolina-based staff spends over 1,000 hours per year volunteering with other community units, CAHEC Long-time partners are nonprofits, an effort supported by CAHEC’s principle of provides safe, already familiar with Social Responsibility. Their “Team Outreach” initiative CAHEC’s wellness and edu- encourages employees to volunteer outside of the office affordable cational initiatives, such as together, which provides team-building opportunities while housing for their Post-Secondary schol- serving their community. arships, Youth Leadership low-income Initiative, Nutrition Assis- To the casual observer, it might seem that providing afford- residents tance programs and grants able housing would be enough of a service to any community. surrounding wellness. But CAHEC doesn’t see it that way. “The whole reason we do throughout the “Each CAHEC-sponsored what we do is for the residents,” says Lee. “We know there southeast and property is eligible to apply are hardworking families in our footprint that deserve a safe, mid-Atlantic for one of our two wellness affordable place to call home. And we know the additional grants,” reports Lee. “One opportunities we provide through the CAHEC Foundation states. grant provides funding for are going to help our families even more.”

irem.org/jpm | | 25 feature | marketing

Fresh Trade iStock.com/FG Image: perspectives on prospective tenants

Novel ways to look at Attracting new tenants has always been an integral part of any successful property management marketing and leasing to program. However, the traditional methods of differentiating your property—superior customer service, curb appeal and attract new occupants promotional offers, for example—are no longer sufficient to attract and retain tenants. With more prospective tenants By Nancy San Pedro, CPM filtering for apartment communities online, differentiation has taken on an entirely new profile. Here, we explore some of the new marketing practices in multifamily units.

26 | ® | Mar.Apr 2020 The self-guided tour Cross-promotion with retailers Large mixed-use communities often have several retailers The opportunity to personally interact with prospective ten- that address tenants’ needs. Partnering with retailers often ants and provide tailored tours has always been the primary provides a mutually beneficial relationship. Retailers get the method for signing leases. However, staffing adequately to added foot traffic from residents, while residents get to par- be able to provide tours is challenging when the demand is ticipate in exclusive deals. Sophisticated retailers can direct unknown. Overstaffing increases expenses at a time when such specials to traditionally slow times so they aren’t sac- margins are becoming increasingly thin. Understaffing, rificing full-priced customers in order to participate in the though, may result in poor first impressions and lost pros- program. For example, if Tuesday evenings are slow for your pects. That’s why self-guided tours can be a boost. restaurant tenant, they may consider offering happy hour deals exclusively to residents during that time. In theory, there are an unlimited number of slots during the workday (generally 8:00 a.m. to 6:30 p.m.), as there does not need to be a dedicated leasing agent available for each tour. Prospective tenants expect instantaneous responses to their inquiries and such tours allow for this spontaneity without delay. Staffing needs are more predictable as prospective tenants need only check in with the leasing staff prior to beginning a tour. The tour can be tailored specifically to meet the time constraints of the tenant, and exceptionally long tours do not derail future appointments of the leasing staff.

However, multifamily living is not exclusively about renting Rentea iStock.com/Dan Image: apartments. More and more tenants are searching for apartments that meet not just their housing needs but Looking for a unique idea for your next tenant event? provide a true community where they can thrive. That Consider using the opening of a new retail store or restau- includes places that offer social interaction, environmentally rant as the next location for your tenant event. Have a soft friendly living and charitable events that give back to the opening at your new restaurant for tenants only. It’s a great neighborhood. Self-guided tours, while convenient, prevent way to host a tenant mixer while providing support for your the ability to accurately address the needs of prospective commercial tenants. renters if we don’t have the opportunity to interact. With self-guided tours, we sacrifice the opportunity to connect Navigating the restaurant and retail environments is increas- with people and showcase superior customer service that is ingly difficult for commercial tenants. Providing them a small often a differentiating factor in attracting a tenant. marketing platform directed toward residential tenants allows them to truly benefit from the mixed-use environment. As self-guided tours are relatively new, it’s unclear how This also gives insight into why large mixed-used landlords they will fare against traditional touring methods and are choosing unique retailers over traditional uses (banking, which method will result in a higher rate of closings. Per- dry cleaning, salons, etc.). Creating a unique retail environ- haps self-guided tours will be a nice supplement, but not ment is yet another differentiating factor that may set you replacement, of traditionally guided tours. This will allow apart from the competition. potential lessees to self-filter for a method that best works for them. One unintended consequence of marketing to tenants is the possibility that such offerings start to feel like spam. Membership To combat this, consider: • The frequency with which you market. Is monthly neces- Cultivating a community for tenants is much more than sary or is quarterly sufficient? hosting the occasional happy hour. Budgeting for a quar- • Giving tenants the option to opt in for emails on terly tenant event has given way to more sophisticated retail exclusives. interactions. In many ways, large apartment communities • Using only physical advertisements (promotions in the are a club with exclusive offerings for their members. elevator or at the mailroom).

irem.org/jpm | | 27 feature | marketing

• Placing one-time specials (a free Pilates class, half-off din- restaurant or niche coffee shop is an amenity in its own ner, for example) in the welcome packet so residents are right that also serves to attract tenants. familiar with onsite retailers. • Having a landing page on your website showcasing exclu- Short-term rentals sive retail partnerships so residents can peruse at their leisure in lieu of email promotions. New developments can often take a year or two to fully lease up. This runway has created a niche in apartment housing, Access to amenities within the club including Lyric, Stay Alfred and Domio to name a few that Landlords who have many apartment communities in close operate in this space. Developers are leasing full floors on a proximity may choose to allow residents to access ameni- long-term basis to operators who cater to short-term rent- ties in other buildings. For example, one apartment may ers—think consultants in town for a month or vacationers have an exceptional pool while another community may on an extended stay. These renters want the home experi- house a significantly larger gym. By combining assets, land- ence they can’t get in a hotel, and higher-end apartments fit lords use all the amenities within a trade area and cater to that niche perfectly. Their offerings are consistent, and the a wider variety of tenants. standards are on par with a hotel. However, the apartment setup allows for greater flexibility, offering kitchen, laundry, Mixed-use considerations bedrooms and greater square footage. In exchange, developers get the rental income during lease up as well as the foot Retail development traffic and exposure to short-term renters who may turn Retail space in apartment communities was often an after- into long-term prospects. thought in development, with proper infrastructure being postponed until a commercial lease was signed. However, Housing short-term rentals within the same footprint as as competition for residents becomes more intense, retail traditional apartment leases may have some unintended often emerges as a differentiating factor. As a result, more consequences, though: purposeful retail spaces are being created during the development phase. This means costly infrastructure, such as • Less control over who has access to the building. With ventilation, grease interceptors and greater electrical capac- frequent turnover, staff must be vigilant about key card / ity to accommodate restaurants, is being put into place to fob access. shorten delivery time for tenants, thereby accelerating rent • “Training” short-term renters to work exclusively with commencement dates. Additionally, such retail spaces are the operator (versus taxing the onsite property manage- more “restaurant ready,” something that typically com- ment staff). mands higher rents. • Greater wear and tear on the apartments. With such short-term rentals and frequent Mom-and-pop vs. national tenants turnover, common areas may quickly In crafting the perfect retail mix, landlords are often choos- adopt a lived-in feeling despite it ing between mom-and-pop operations or large, national being a new development. That credit tenants. While national credit tenants pose less credit could lead to more costly operating risk, mom-and-pop operations help create communities and/or capital expenses. and more unique offerings for tenants. However, mom- and-pop tenants often mean more costly buildouts (with (For a first-hand perspective on manag- landlords shouldering the lion’s share) in order to create ing short-term rental properties, turn to Nancy San Pedro, unique spaces. Nevertheless, living above a neighborhood the Property Spotlight column on P32.) CPM, is the director of retail for California at Equity Residential The rental environment is changing in Agoura Hills, By combining assets, landlords with the lines being blurred between Calif. She is an IREM short-term, long-term, hotels and instructor and has taken on many roles use all the amenities within a the multifamily experience. Efforts to in the Institute, trade area and cater to a wider attract new renters have given way to including chair of the innovation and unique marketing that Diversity Advisory variety of tenants. Board and president has completely altered the landscape of the Los Angeles for multifamily. Chapter.

28 | ® | Mar.Apr 2020 2020 IREM® REME Awards Recognizing those inspiring the profession’s future

IREM is now accepting submissions for the 2020 REME (Real Estate Management Excellence) Awards. Will you be the next CPM® or ARM® of the Year? Or will your company become the next AMO® of the Year or be our first winner of the IREM Innovator Award?

Apply today at irem.org/events/reme-awards and find out!

Sponsor Media Partners talent management The royal treatment How employee engagement can affect the bottom line By Tegan Jones

veryone wants to be appreciated. Whether it’s for working long Ehours, going above and beyond for customers or finding ways to work more efficiently, acknowledging employees who consistently bring their A-game goes a long way. And in a tight talent market, keeping team members engaged can have a big impact on the bottom line.

It’s a job seeker’s market, and an abun- dance of open positions has turnover rates skyrocketing. According to the Work Institute, more than 27 out of every 100 U.S. employees left their jobs voluntarily in 2018—a figure that’s 88% higher than it was in 2010. That’s putting pressure

on companies to keep employees happy undefined iStock.com/undefined Image: and engaged. “We have five generations in the workplace. So the same old, “[Employees] can go back to their desks, unhappy about same old doesn’t work anymore,” says Harmon. “We have to something that just happened, and send their resume out talk about what excites them, what motivates them, what to 10 new companies,” says Kathy Harmon, CPM, ARM, and they like to do.” president and CEO of MyCoach, LLC in Minnetonka, Minn. Even when companies keep the lines of communication Although compensation plays a big part in an employee’s open, it can take some experimentation to figure out what decision to stay in a position, how valued they feel also tips works. For instance, Schneidau launched an employee-of- the scales. Rewarding and recognizing people who do good the-year program to motivate his top performers, but he work can help make the hard days easier—especially in the decided to cancel that initiative after he saw that it had world of property management, where the phone only rings some unintended consequences. when something goes wrong. “I realized that when you’re saying this one person is “When the trash is emptied every day, nobody calls and says, employee of the year, it’s really a negative message,” he ‘Good job.’ When it’s not emptied, we get called,” says Philip says. “You’re recognizing them for working hard, but you’re Schneidau, CPM, president of Woodbranch Management Inc. telling the others at the same time, ‘You’re not working in Houston. “And because of that, the need to keep a positive hard enough.’” atmosphere is probably a little bit higher.” Rather than giving a few top performers big rewards in Finding what works hopes of spurring some friendly competition, Schneidau There’s no one-size-fits-all approach to making employees now takes a more holistic approach, opting for rewards that feel valued. And the rewards people find meaningful are the whole team can enjoy. changing along with workforce demographics. That means leaders must listen to their teams to create recognition “I’ve got a lot of really good people, and I’m proud of all of programs that are meaningful to their staff. them. They should all be patted on the back,” he says.

30 | ® | Mar.Apr 2020 A daily habit “I try to assess people’s skills and what their ambitions are, Some companies will lean on annual bonuses or holiday parties and I try to channel their strengths in those directions,” she to thank their teams for a year’s worth of hard work. But these says, “because the more they know, the more productive one-time rewards don’t necessarily keep people motivated as and empowered they become, and the better they’ll feel the months wear on. That’s why Schneidau offers daily and because they’re getting ahead.” weekly benefits to help people get through the doldrums. From free sodas in the fridge, to donuts on Fridays, to office toys Peralta mostly works with independent contractors, rather that encourage employees to have a little fun, Schneidau says than full-time employees, so she also uses referrals to providing consistent perks has helped keep turnover rates low. reward people who consistently hit the mark. She says her service providers, from cleaning services to locksmiths, “We try to focus more on what we can do year-round than any work hard to earn those referrals because they help drive one program that makes a statement in particular,” he says. long-term business growth. “To me, that’s worth more than any bonus,” she says. Harmon agrees that the little things often have the biggest impact. Surprising someone with lunch from their favorite Measuring up restaurant or a $2 lottery ticket can do a lot to brighten Regardless of what type of rewards a business might offer, their day. Even a handwritten note highlighting something leaders need to clearly communicate how they’re measuring they did well can be a memorable and meaningful way to team member success. Sometimes, employees fall short recognize an employee’s value. simply because they don’t know how they’re being assessed.

“I think surprise is part of the key,” she says. “It needs to be “Put it in writing,” says Peralta. “Sit down and have clear con- something that’s not expected.” versations. Follow up with memos or texts so that you have a written record of what was discussed and agreed upon.” Many companies will offer a bonus as an incentive to encourage workers to meet ambitious performance goals. To avoid spending time and money on incentive programs But bonuses can quickly become an expected part of an that aren’t increasing engagement, Harmon also suggests employee’s compensation package, rather than a reward for taking the temperature of the team on a regular basis. In going above and beyond. For instance, if someone knows addition to asking people to share their thoughts on what’s their bonus could be as much as 20% of their salary, they working, what’s not and what improvements could be made, will be disappointed by a bonus of only 5% or 10%. she says leaders need to spend time in the general work- space to gauge overall employee morale. “It ends up being punitive rather than rewarding,” Harmon says. “And they end up being disincentivized for the upcoming year.” “Listen to how happy people are. Do they laugh? Do they seem to get along? How much do they volunteer to help Karoline Peralta, ARM, asset and property manager for Vir- somebody else on their team when they sense that there’s a tue Properties in Boston, says mentorship and professional deadline to be met? All of that stuff can give you hints as to development help keep her teams engaged. how engaged your people are with the job,” she says.

Ultimately, rewards and recognition efforts should help build a positive company culture and encourage collabo- ration. While friendly competition can be fun, companies You’re recognizing should avoid pitting team members against each other. them for working Rather, rewards should inspire people to pull together to hard, but you’re help the company meet its goals.

telling the others “A great culture will encourage that,” Harmon says. at the same time, “If people feel personally valued for their talent and ‘You’re not working contributions, they’ll put forth as much effort as is needed hard enough.’ to succeed.”

—Philip Schneidau, CPM Tegan Jones is a contributing writer for JPM.

irem.org/jpm | | 31 property spotlight

Solitude Resort in Big Cottonwood Canyon, The rise of Utah, just outside Salt Lake City short-term rentals Why short-term rentals are becoming more sought after than ever before By Jeff Bettinson, CPM

spent 18 years managing all types of properties, from office Istrip centers, grocery-anchored spaces, various types of offices, power centers and most recently a regional mall in Utah. I had the opportunity to strike out on my own by purchasing a franchise from iTrip Vacations, a short-term rental management company based in Nashville, Tenn., with over 80 franchises and over 3,000 properties managed across the U.S. and Canada.

You might be thinking that short-term rental management is more closely The family room, a perfect gathering spot, in an iTrip Vacations property in Sandy, Utah related to the hospitality industry, and why would an article on short-term time and again is crucial to having a rentals be included in JPM? I would successful business. make the argument that all property The fastest management is part of the hospitality And just look at some of the amenities growing segment industry, given that the definition of now being offered in office buildings— of hosts is women hospitality is “the quality or disposi- everything from workout and game tion of receiving and treating guests rooms to restaurants and bike storage. over the age of 60. and strangers in a warm, friendly and Those sound a lot more like things you generous way.” find at a resort, yet they’re becoming more desirable and more available in There are over 2 In every company I’ve worked for, cus- commercial properties. million people a tomer service has been the top priority for property management. To create Shopping centers and retail stores night staying in an environment where shoppers, are now all about creating an expe- Airbnb-hosted employees and guests of tenants walk rience, offering valet parking, free onto the property and feel welcome, Wi-Fi, comfortable resting areas, free properties. safe, comfortable and eager to return events and much more. The goal?

32 | ® | Mar.Apr 2020 To welcome shoppers in the warm, with tenants. But one significant dif- friendly and generous way that ference is that you don’t have to worry defines hospitality. about collections. Also, if the tenant is In 2017, undesirable, you only have to tolerate Homeaway Evolution propelled them for a short time, or you can legally by the internet remove them from the premises with- predicted the A short-term or vacation rental is out the hassle of eviction if they do not short-term rental anything rented for less than 30 days. obey house rules. Short-term rentals, whether a cabin, industry would beach house or something else, have One more major difference is the double by 2025. been around for many years. In fact, amount of time spent on rate manage- the very first vacation rental dates ment. This is where the link to back to the 1600s, when Louis VIII the hospitality industry is strongest. Currently there used the Palace of Versailles as Setting your nightly rate and for- are over 650,000 a hunting lodge. But urban listings getting about it is not an effective have exploded with the advent of rate-management strategy. Knowing listings on websites such as VRBO (the first what your competition is doing and Airbnb in the online listing site, created in 1995), how you are priced is critical, as is Airbnb (not on the scene until 2008), knowing what the occupancy of the United States. Homeaway, Tripadvisor, Booking.com area is at all times during the year. and many others. Keeping track of the high occupancy times to take advantage of supply Many hosts, as those offering prop- and demand and adjusting your rate erties for short-term stays are called, accordingly will increase your revenue. are do-it-yourself types who manage their own properties. But professional For example, in September, Salt Lake management companies such as iTrip City is host to a large convention for Vacations have grown more com- a direct sales company that fills up monplace with professional investors. hotels. Rates for short-term rentals are These investors are becoming more typically more than three times higher interested in this asset class, which during the convention than the normal often produces returns that typically nightly rate for the year. surpass those of long-term rentals. What advantage does a professional Not without obstacles property management company like The biggest challenges facing the iTrip Vacations bring to the table short-term rental market appear to versus a DIYer? Digital marketing be in establishing city regulations campaigns, SEO strength, artificial and ordinances, as well as HOA rules, Jeff Bettinson, intelligence and turn-key automated which serve groups with opposing CPM, is a real estate professional with processes, pricing strategies, and viewpoints. The pull between prop- over 19 years of adaptation of technology to increase erty rights and city and neighborhood experience, and is bookings and revenue are just a few of planning is quite evident. And while currently the owner of an iTrip Vacations the advantages. many people enjoy traveling and franchise in Utah, using online rental services, there is managing vacation Although similar… a strong component of people who rental properties Short-term rental management is not do not want it in their backyards. for clients along the Wasatch Front. all that different from managing larger But the business model isn’t going He is also an IREM assets. The skill and knowledge bases away anytime soon. As it develops, its instructor and chair are very similar, encompassing con- inclusion and effect on the property of the Institute’s Education and tract negotiation, vendor management, management landscape will continue Knowledge Products customer service and communicating to develop. Committee.

irem.org/jpm | | 33 IREM Foundation

Left: Elaina and Cheryl; Below: Cheryl, Elaina and family

Funding the future Elaina Tattersdale believed just one person could make a difference. A new fund in her name aims to inspire that passion in others. By Matt Schur

t had long been Elaina Tatters- initiatives. “My husband and I wanted dale’s dream to create a more a way to ensure her memory lived on Isustainable world. After spending for something she was passionate several years working in real estate, about, so that her desire to improve the 35-year-old mother of two wanted the environment lives on as does to start doing more environmentally her name.” friendly work. But in June of 2019, she was diagnosed with stage 4 The IREM Foundation will begin colon cancer. awarding grants that drive sustainability within the commercial real Her parents, IREM president Cheryl estate industry later in 2020. For Gray, CPM, and Cheryl’s husband, more insight, JPM spoke directly with Rick Gray, CPM, set aside money for Cheryl about her family’s vision for advanced treatments. But the disease Elaina’s Sustainability Fund. acted quickly; Elaina died 77 days after being diagnosed. “As we talked How will the fund work? For more information as a family, it was important for us to Cheryl Gray: The purpose is to review about Elaina’s Sustainability honor her and create something that any applications that come in for Fund, including how to make a had meaning to her,” Cheryl says. funding that are generally supportive donation or apply for a grant, visit to advancing sustainability. And when irem.org/elaina. Donations can also Cheryl and Rick never got the chance I say sustainability, I mean things that be made via a check mailed to: to use the money they set aside for will improve the environmental foot- IREM Foundation, 430 N. Michigan treatments. To honor Elaina, they print. So it could be reducing demand Ave, Chicago, IL 60611. Please include instead donated $50,000 to the IREM for resources or utilities. It could be “Elaina’s Fund” in the memo of Foundation to create a fund that a more sustainable building material, the check. will award grants for sustainability planting more trees around your

34 | ® | Mar.Apr 2020 building or an innovation that needs continue to advance our performance to have some funding to support an in this space in the real estate industry. Think small experiment. We have left it fairly broad. The buildings that are being built But it is intended to be something that today would have been considered 91% recognizes leadership and is either “green” in more revolutionary ways 15 Of plastic isn’t recycled innovative or might not otherwise get to 18 years ago. Things are improving off the ground. and changing, but the majority of 35% existing buildings need modifications Estimated current recycling rate Can you walk us through how to make them more environmentally in the United States this might work in theory? friendly. Unfortunately, sometimes the Let’s assume a firm wants to under- return on investment is not always 348 take a study to implement new obvious. But if you do nothing, then Terawatt-hours could be saved technology that will improve air qual- nothing changes. through widespread use of LED ity. Because the technology has never lighting in the U.S. by 2027 been tried before, they want to take a What is it about property (compared to no LED use), the floor and do before-and-after measure- managers that makes them so equivalent of the output of 44 ments. It may not be something they valuable in this fight? large electric power plants have in their budget, but it’s innova- Property managers impact the lives of tive and something that will improve all people through the spaces where $30 billion occupant wellness. Through the IREM we live, work and play. Property man- Projected savings from Foundation, they would be able to agers have a responsibility to ensure widespread use of LED lighting apply for money for that initiative. that these spaces positively influence by 2027 the wellness and the lives of those who Why was sustainability so use them. important to Elaina? Sources: Science Advances, United States Environmental Protection It was always important to her. She We are there day in, day out. We’re Agency, U.S. Department of Energy talked about it a lot with us. Elaina the fixers, the problem solvers, and in was just an old soul—she was very many cases, the innovators. There’s considerate of a lot of things and of an opportunity for us to affect all of people. She was very aware of the those things by how we operate, how portfolio. Think about one thing that consequences individuals have and we repair it, how we maintain it, how would be worth your time to try to the impact we have on the world. She we replace it and by making those do, and that is one thing better than always valued initiatives like recycling selections on what is done. where you were. It’s about advanc- and energy conservation. And I think ing and continuing to move forward, for her personally, she felt that there What will be the fund’s impact? rather than thinking, “I need to eat the may not be an obvious, immediate I think it’s twofold. It’s allowing people elephant in one bite.” impact to the actions we take today, access to funds to take a risk and also but there would be in the future. So showcasing an individual or a group Looking ahead, what do you we have to start talking about it and that may have done something inno- hope to see happen? changing our practices now. vative. The fund gives them visibility I have a lot of hope that we’re going to others in their industry so more to see some great things, but I’m also From a broader perspective, how people can be encouraged to imple- realistic enough to say, we’ll start can this help the industry? ment sustainability initiatives. slow, and we’ll learn as we go. But it’s There are still naysayers. There are comforting to know that not only will still financial impediments. But there’s What advice would you give to my daughter’s name be memorialized a way for us to recognize individuals someone applying? in something that she was passionate who may be a little bit ahead of their Don’t think you have to start big. Don’t about and our family believes in, but time. You have to be able to experi- think you have to come up with a also that we’re supporting the IREM ment and keep moving the needle. And massive program around advancing Foundation and all the great work that that’s what the fund is intended to do: sustainability in your building or your they do.

irem.org/jpm | | 35 government affairs

evict a tenant in order to raise the rent for a new resident.

States of transition Both acts by state legislators in these New rental laws prompt questions and challenges two larger-than-life rental states have sent real estate property owners and By Dawn Carpenter, CPM managers everywhere into a time of uncertainty, claiming foul against private property rights, as other states look to follow suit.

From the East… Let’s start by breaking down the changes to New York’s rental law. The act protects all potential tenants who submit an application for housing throughout the state. The amended law now says that “no landlord shall refuse to rent or offer a lease to a potential tenant on the basis that the potential tenant was involved in a past or pending landlord-tenant action.” In addition, application fees are now capped at $20, and late fees have been restricted to a five day stay from due date and capped at $50 or 5% of the monthly rent, whichever is less. Returns on security deposits must now take place within 14 days of the tenant vacating the rental unit, with a written explanation for any amount of the security deposit that has been retained.

Now let’s talk about the amended New York eviction requirements. If the tenant does not pay rent when it is due, the landlord can give the tenant a notice informing them that they have 14 days to either pay rent in full or move out of the rental unit. If the Image: iStock.com/becon Image: tenant takes neither of these actions, ew York’s governor, the honorable Andrew Cuomo, the landlord can file an eviction law- signed into law the Statewide Housing Security & suit with the court at the end of the 14 NTenant Protection Act of 2019 last June. The act is days. However, tenants who petition one of the strongest tenant protections laws in the country. the court and ask for more time when their landlord starts an eviction case A few months later, the California State Assembly passed against them automatically get 14 Assembly Bill 1482, which caps rent increases at 5% annually, more days. And when the marshal plus inflation, until January 1, 2030. It also bans landlords comes to evict them, they get 14 days from evicting people for no reason, meaning they cannot there, too, instead of 72 hours.

36 | ® | Mar.Apr 2020 There were also changes to the major 2020 through December 2029. While IREM members: Do you or capital improvement requirements. the law didn’t take effect until Janu- your chapter have an advocacy Individual apartment improvements ary 1, it applies to rent increases on success story you would like to share? (IAIs), which permitted property or after March 15, 2019, to prevent IREM wants to hear about it! owners to increase rents based on landlords from raising rents before improvements made to individual the caps went into place. Whether it’s just a couple of units, are now capped at $15,000 sentences or an article with all every 15 years. Major capital improve- The California legislation also the details, send your stories to ments (MCIs), which allowed property addressed eviction laws. In the past, [email protected], and owners to increase rents based on the if a property owner wanted to sell they could get published in a future costs of building improvements, are their unit or make major renovations, edition of the Government Affairs now capped at 2%. owners had an opt-out provision Digest, distributed monthly in the lease known as “no-fault just and available to IREM members Lastly, there are no exemptions for cause.” The new law states that the at irem.org. owner-occupied, 1-to-3 family units. landlord will still have the right of a Security deposits have been capped at “no-fault just cause” eviction, but this one month’s rent, and there is no more can only be enforced if that tenant vacancy and income deregulation on has occupied the unit for less than rent stabilized or controlled units. one year. All other evictions must be Furthermore, all condo conversions “just cause” evictions. However, the must have a buy-in of 51% of tenants landlord may need to offer the tenant versus the previous 15%. relocation assistance (i.e. buyout) of one month’s rent. Wondering how landlords in New York will continue to invest or hold their The new law will not affect all Califor- investments? There will be difficult nia properties like the new law in New decisions to be made by many land- York. Properties built within the last lords operating in the state over the 15 years are exempt from the new law, next few years, and their decisions will as are owner-occupied properties with affect other real estate practitioners. no more than two rooms or units. In California, there have been specula- However, there has been legal reaction tions that owners and managers may to the New York legislative changes. file a lawsuit against the state oppos- A group of landlords and five real ing the new requirements. estate groups, including the New York State Association of REALTORS® There is no doubt that as real estate along with the National Association professionals, we promote and abide of REALTORS®, have signed onto a by the local and federal laws that gov- lawsuit against the state citing that ern Fair Housing, and we want tenants New York’s new rent law violates the to be treated in a fair and just manner. U.S. Constitution’s Fifth Amendment, However, with these laws now in effect which includes a clause that bars the in New York and California, it is only taking of private property without a matter of time before many more Dawn Carpenter, “just compensation.” states look to implement more strin- CPM, is president gent tenant protection guidelines. and corporate real …to the West estate broker for Dawning Real Estate, Although not as lengthy as New York’s It is a new world for us in the real AMO, in Staten rent control legislation, California estate management industry as we Island, N.Y. She is passed a measure last October which learn to navigate the new tide while also a senior vice president on IREM’s limits rent increases to 5% (plus local helping our clients maintain their 2020 Executive inflation rates) annually from January investments. Committee.

irem.org/jpm | | 37 Congratulations to our new certification recipients!

New CPMs North Carolina Japan Renee N. Carlton, CPM, ARM, Yuko Ogo, CPM, Kanagawa California Charlotte Thomas Fallon, CPM, San Diego Tara D. Lafler, CPM, Matthews South Africa Stacey Neville, CPM, San Diego Erica M. Robinson, CPM, Raleigh Peter Lesibi Sekgobela, CPM, Thomas N. Peterson, CPM, San Diego Julia V. Pererva, CPM, Waxhaw Johannesburg

Florida Oregon New ARMs John Jessup, CPM, Deland Amanda Clark, CPM, Portland Alex Ling, CPM, Gainesville Alabama South Carolina Marvin F. Oates, ARM, Tuscaloosa Georgia Bill A. Burgess, CPM, Greenville Julie Petrie, CPM, Atlanta Claire C. Moyers, CPM, Mount Pleasant Alaska Kenisha Franklin, CPM, Lithonia Joseph H. Coon, ARM, Anchorage Tennessee Anna Grant, ARM, Anchorage Illinois Kristin Leffew, CPM, Chattanooga Daniel L. Gregoire, ARM, Anchorage David Feller, CPM, Chicago Gina Fortune-Harmon, CPM, Texas Arizona Downers Grove Brian D. Hawthorne, CPM, Austin Ashlie M. Frago, ARM, El Mirage Alison Mevis, CPM, Austin Elizabeth T. Montano, ARM, Tucson Indiana Genevieve A. Mulville, CPM, Austin Megan A. Nagel, CPM, ACoM, Courtney D. Pogue, CPM, Dallas California Indianapolis Melanie M. Hodge, CPM, Friendswood Jessica Molina, ARM, Canyon Country Chaneen M. Coates, CPM, Houston Anton Russell, ARM, Claremont Kentucky Magdalena Gonzales, CPM, Houston Mirna R. Leon, ARM, Monrovia Eric Fegan, CPM, Crescent Springs Shandy Kellams, CPM, Houston Tabitha Alcaraz, ARM, San Diego Brittney Wacasey, CPM, Justin Stephen Beitinger, ARM, San Diego Massachusetts Laura Bennett, CPM, Rockwall Holly Miller, ARM, San Diego Susanna B. Curreri, CPM, Braintree Lissette Badillo, CPM, San Antonio Joni L. Jackman, CPM, ACoM, Colorado Edgartown Virginia Trivonda Richmond, ARM, Ryan A. Underwood, CPM, ARM, Colorado Springs Minnesota Arlington Sabrina Duran, ARM, Denver Heather McKinzie, CPM, Minnetonka Erin L. Nicholls, CPM, Madison Patricia Moore, ARM, Denver Elizabeth Swan, ARM, Denver Mississippi Washington Craig H. Kirkland, CPM, Madison Courtney Parker, CPM, Redmond Connecticut Jackie A. Lavoie, ARM, Groton New Jersey Canada Terrence Vogenberger, CPM, Michelle Trothen, CPM, District of Columbia Jersey City Guelph, Ontario Shadaryl M. Jones, ARM

New York Singapore Florida Warren Mitchell, CPM, Bronx Jonathan Tomlinson, CPM Alexandra Kisch, ARM, Palm Coast Summerna Khan, ARM, Nevada Temple Terrace Carlos Vinatea, CPM, Las Vegas

38 | ® | Mar.Apr 2020 Congratulations to our new certification recipients!

Georgia Michigan Pennsylvania Tyisha Phillips, ARM, Atlanta Erica Shelby, ARM, Clinton Township Cindy Geib, ARM, Lancaster Irving Jules, ARM, Columbus Bianca Anderson, ARM, Detroit Matthew Oberkofler, ARM, Pittsburgh Cynthia (Silva) Rolf, ARM, Columbus Norma L. Sheffield, ARM, Ludington Alicia Williams, ARM, Columbus Lawrence Zane, ARM, Plymouth Rhode Island Lori A. Bowers, ARM, Fort Benning Flora L. Amable, ARM, Providence Heather Clark, ARM, Fort Benning Mississippi Jessica A. Polak, ARM, Providence Noelle Keith, ARM, Fort Benning Jonathan A. Lisnoff, ARM, Starkville Chelsea Matheric, ARM, Fort Benning Tennessee Maggie Portillo, ARM, Fort Benning New Jersey Cori Binkley, ARM, Ashland City Desiree Redding, ARM, Midland Jessica Tiplady, ARM, Cape May Susan Bell, ARM, Cordova Anu Chauhan, ARM, Jersey City Hawaii Ann L. Romano, ARM, Vineland Texas Jefflynn P. Wilson, ARM, Honolulu Kimberly Jenkins, ARM, Williamstown Lea A. McGlynn, ARM, Dallas Richard Harmon, ARM, Lihue Kristen R. Cseresznye, ARM, Little Elm New York Iowa Cynthia Chiu, ARM, Brooklyn Virginia Allison E. Larson, ARM, Boone James A. Willis, ARM, Cohoes Ryan A. Underwood, CPM, ARM, Mike B. Berkowitz, ARM, New York Arlington Illinois Dominique Goyette- Nadeau, ARM, Rosibel Almendares, ARM, Herndon Linda Soriano, ARM, Addison New York Linsey Degrafft, ARM, McLean Matthew J. Russas, ARM, New York Maryland Soonjae Yoo, ARM, New York Washington Justin Price, ARM, Baltimore Tyrell Johnson, ARM, Poughkeepsie Julia Lopez, ARM, Issaquah Kelley Sawyer, ARM, Baltimore Brittany Weeks, ARM, Rochester Caitlin Avramides, ARM, Monrovia Wisconsin Spencer P. Fried, ARM, Silver Spring Ohio Jamie P. Nelson, ARM, Madison Amber Bingham, ARM, Upper Adam M. Greaser, ARM, Cincinnati Marlboro Gerry P. O’Neil, ARM, Columbus Brazil Sara Francis, ARM, Gahanna Luciana Maria Moura Vitorelli, ARM, Massachusetts Cynthia Fullen, ARM, Groveport Rio de Janiero Tikki Stracuzzi, ARM, Boston Ashley C. Block, ARM, Reynoldsburg Michelle A. Archer, ARM, Braintree Penny E. Brady, ARM, Braintree Lisa Carinelli, ARM, Braintree Carolyn L. Fagan-Rayner, ARM, Braintree Maritza Matos-Alicea, ARM, Braintree Julie L. Moulder, ARM, Braintree Luisa Wrencher, ARM, Brockton Nora M. Catalano, ARM, Dorchester Lilyan Fu, ARM, Somerville Image: iStock.com/piranka Image:

irem.org/jpm | | 39 Congratulations to our new certification recipients!

Canada New Certified Sustainable Georgia Anne Biliran, ARM, Calgary, Alberta Properties (CSPs) North Point Mall, Alpharetta Tara M. Crooks, ARM, Perimeter Mall, Atlanta Winnipeg, Manitoba Arizona The Forum on Peachtree Parkway, Marvill Ramirez, ARM, Chandler Pavilions, Chandler Norcross Winnipeg, Manitoba North Mountain, Phoenix Pierre-André Leblanc, ARM, Hawaii Ottawa, Ontario California Ala Moana Center, Honolulu Jean-Maurice Deslauriers, ARM, The Shoppes at Carlsbad, Carlsbad Boucherville, Quebec Otay Ranch Town Center, Chula Vista Illinois Trina M. Flahr, ARM, Pacific Commons, Fremont 1401 South State, Chicago North Battleford, Saskatchewan Watermark Place, Fremont Cumberland Mall, Chicago Glendale Galleria, Glendale Glenbrook Square, Chicago New ACoMs Southland Mall, Hayward NEWCITY Retail, Chicago 12015 Waterfront Drive, Los Angeles North Avenue Collection, Chicago California 12025 Waterfront Drive, Los Angeles Mondial River West, Chicago Blake Crossen, ACoM, Newport Beach 12035 Waterfront Drive, Los Angeles Northbrook Court, Northbrook 12045 Waterfront Drive, Los Angeles Kansas Forty55 Lofts, Los Angeles Massachusetts Duane P. Lockyer, ACoM, Leawood Tuscany on Fig, Los Angeles 28 State Street, Boston Vivere, Los Gatos 1330 Boylston, Boston Maryland NewPark Mall, Newark Wayside, Burlington Aryn Robinson, ACoM, Bethesda Downtown Pleasant Hill, Pleasant Hill Cambridge Park Apartments, Pleasanton Gateway, Pleasanton Cambridge Nevada Stoneridge, Pleasanton CambridgeSide Galleria, Cambridge Christy J. Drawn, ACoM, Las Vegas Alhambra MOB, Sacramento West Village, Mansfield Sofi Westview, San Diego Natick Mall, Natick Texas Sofi Highlands, San Diego Reading Commons, Reading Natalie Parker, ACoM, Houston The Promenade Rio Vista, San Diego Everly, Wakefield Taylor Polaniec, ACoM, Tomball The Reserve at 4S Ranch, San Diego Avana Weymouth, Weymouth Stonestown Galleria, San Francisco Virginia Fountain Plaza, San Jose Maryland Matthew A. Grigg, ACoM, Glen Allen Sofi Riverview Park, San Jose The Mall in Columbia, Columbia Amy Foley, ACoM, McLean Town Centre at Laurel, Laurel Joshua Hughes, ACoM, McLean Colorado Towson Town Center, Towson Jessica Murphy, ACoM, McLean Clayton Lane, Denver Jena Paulenich, ACoM, McLean The Retreat at Park Meadows, Minnesota Diane L. Harris, ACoM, Mechanicsville Littleton Crystal Medical Building, Crystal Park Meadows, Lone Tree Hazelwood Medical/HeathEast New AMOs Maplewood, Maplewood Florida California Altamonte Mall, Altamonte Springs New Jersey IntersectionCRE, Inc., AMO, San Diego Berkshire Lauderdale By The Sea, Courtyard at Jefferson, Hoboken Fort Lauderdale RiverTrace at Port Imperial, Texas SoMa at Brickell, Miami West New York Procedeo, LLC, AMO, Frisco Cumberland Park Apartments, Woodbridge Center, Woodbridge Orlando Polo Lakes, Wellington New York Instrata Gramercy, New York The Capitol, New York

40 | ® | Mar.Apr 2020 Congratulations to our new certification recipients!

Promenade Nelson Apartments, The Broderick, Philadelphia Memorial Hills, Houston Riverdale The Republic, Philadelphia Willowbrook Mall, Houston Calkins 125, Rochester Shadyside Commons, Pittsburgh Lakeside Urban Center, Irving Sharples Works, West Chester The Grand at Legacy West, Plano North Carolina Montelena, Round Rock Shortbread Lofts, Chapel Hill Rhode Island Platinum Shavano Oaks, San Antonio The Residence at SouthPark, Charlotte Providence Place, Providence The Shops at La Cantera, San Antonio Lodge at Southpoint, Durham Springmarc, San Marcos Carolina Place, Pineville Texas First Colony Mall, Sugar Land Allegro Addison Circle, Addison North Dakota Hardin House, Austin Virginia Great Plains Rehab Center, Bismarck Meritage at Steiner Ranch, Austin Lincoln at Tinner Hill, Falls Church St. Alexius - Mandan Clinic North, Rollingwood I, Austin The Lofts at Park Crest, McLean Mandan Rollingwood II, Austin Settler’s Market, Williamsburg Strictly Pediatrics Specialty Center, Oregon Austin Washington NV, Portland The Quarters Cameron House, Austin Summerwalk at Klahanie, Issaquah Waterline, Portland University Park, Austin First Hill MOB, Seattle Baylor Charles A. Sammons Cancer Green Firs Towne Center, Pennsylvania Center, Dallas University Place Baederwood Shopping Center, Lakewood Flats, Dallas Jenkintown Alliance Town Center, Fort Worth Wisconsin Park City Center, Lancaster Equinox, Houston Mayfair, Wauwatosa

Join us at Realcomm 2020 June 2, 2020, Miami, Florida • Miami Beach Convention Center

We’re collaborating with Realcomm on a special pre-conference education event on June 2 for commercial and residential property managers. This half-day program will provide attendees with the knowledge and skills they need to stay on top of technology’s latest developments as they pertain to the real estate industry. The Realcomm conference takes place June 3-4.

Visit irem.org/2020realcomm for more information and to register. Member updates

IREM members Have you recently been promoted or changed jobs? Have you or your AMO firm received an award for a special achievement? Email the good news to [email protected] so JPM® can share it with your colleagues.

David R. Bales, CPM, accepted Clay Hicks, CPM, and president a new position earlier this year of the Houston-based Dinerstein with Millennia Housing Manage- Companies, was recently installed ment, based in Valley View, Ohio; as the 2020 president of the Hous- he is the firm’s new executive ton Apartment Association (HAA). vice president for operations, In his interview with the HAA operating out of Orlando, where publication Abode, Hicks says of he previously worked for Pinna- his appointment, “I’m going to ask cle Property Management, AMO. why a lot…Asking why will chal- Frank T. Sinito, CEO of lenge people to think, to innovate The Millennia Companies®, and to improve. If I can influence, states, “[Bales] will bring his even on a small scale, a culture of expert knowledge of operations, continuous improvement, I will compliance and leadership devel- feel like I’ll have done my job as opment to us as we continue to president for 2020.” build the operational capacity of our company.”

Christy Sanchez, CPM, has come After joining WPM Real Estate on board as vice president of Management, AMO, of Owings property management at The Mills, Md., as a leasing agent in Bainbridge Companies, based 2015, CPM candidate William in Wellington, Fla. Sanchez Scott Severn will now serve as the herself will be based in Austin firm’s business development coor- and oversee global operations dinator. His new role will call on of Bainbridge’s management him to use his onsite multifamily portfolio and support business experience to support the compa- development for the company’s ny’s ongoing growth and outreach third-party management division. in the community, with a focus She brings more than 20 years on expanding the breadth of the of industry knowledge to the company’s portfolio across all lines position, having most recently of business. conducted business for Alliance Residential, AMO, as a regional vice president.

The Milwaukee Business Journal has recognized Outlook Management Group LLC, AMO, in Muskego, Wis., as one of its Best Places to Work in southeast Wisconsin. The awards honor businesses that establish a positive working environment built on trust, recognition and engagement. Outstanding workplaces are selected based on the results of surveys taken by employees who rate different core areas such as alignment with goals, communications and resources, and overall job satisfaction.

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On the road 4/14-18 ARES Annual Conference March 3/19-20 Location: Fort Myers, Fla. Governance Task Force Meeting Visitor(s): Cheryl Gray, CPM 3/2-5 Location: Chicago Denise Froemming, CAE, Officer & RVP Meeting Visitor(s): W.A. “Chip” Watts IV, CPM, MBA, CPA Location: Chicago CCIM Visitor(s): All Officers Denise Froemming, CAE, MBA, CPA 4/19 2021 Officer Round-up 3/9-14 3/29-4/1 Location: Chicago South Africa Visit RLI Conference Visitor(s): W.A. “Chip” Watts IV, Location(s): Cape Town/ Johan- Location: San Antonio CPM, CCIM nesburg Visitor(s): George D. Griffin III, George D. Griffin III, CPM, CCIM Visitor(s): Cheryl Gray, CPM CPM, CCIM 4/20-22 3/10-11 Chapter Leadership Retreat Capitol Hill Fly-in April Location: Chicago Location: Washington, DC Visitor(s): All Officers Visitor(s): W.A. “Chip” Watts IV, 4/8-9 CPM, CCIM Utah Chapter Visit 4/22-23 George D. Griffin III, CPM, Location: Salt Lake City Officer & SVP Planning Meeting CCIM Visitor(s): W.A. “Chip” Watts IV, CPM, Location: Chicago CCIM Visitor(s): All Officers

Budget Better.

Your property’s data can only tell you so much. See the full picture with IREM® Income/Expense Analysis® Reports.

Learn more at irem.org/2019IncomeExpense

We’re now accepting submissions for the 2020 Income/Expense Analysis. Submit your 2019 data and receive a free 2020 report. Visit irem.org/2020IncomeExpense to learn more.

For those who manage to make a difference.™ Greeting people with a ‘May I help you’ oftentimes makes all the difference in creating a safe We have five generations in the environment. workplace. So the same old, same P 18 old doesn’t work anymore. P 30

We’re the fixers, the problem solvers, and in many cases, the innovators. P 35

The traditional methods of differentiating your property— superior customer service, curb appeal and promotional offers, for example—are no longer sufficient to attract and retain tenants. With more prospective tenants filtering for apartment communities online, differentiation has taken on an entirely new profile. P 26

I would make the argument that all property

management is part of the hospitality industry. P 32 Tinpixels Dolmatov; iStock.com/Vasyl Images:

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