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What is this thing called Marketing?

Let's first look at what Webster has to say about the meaning of "marketing" - (1) the act or process of buying and selling in a market; and (2) the commercial functions involved in transferring goods from producer to consumer.  A more commercial definition of marketing that might be found in a high school or college text could read something like this: "creating a sale with the consumer for your product and/or service."

         Then, let's look at Webster's definition of "promoting" - (1) to forward or further, to encourage, to advance; (2) to raise to a more important rank, to contribute to the progress or growth of, to urge adoption of or advocate; and (3) to attempt to sell or popularize by advertising or by securing financial support.  Again, a more commercial definition of promoting might be something like: "bringing the consumer to your product and/or service."

         These definitions tell us that we need to be involved in both promoting and marketing!  It is the act of promoting that creates enthusiasm and brings us the traffic.  It is the act of marketing that defines the sale of a home or signing of a lease.  Without both of these tools in your toolkit, you would have a really hard time filling, re-filling, or upgrading your community.

Deciding Why you Want to Market

Do you want to promote because you have a new development?  Or will it be to fill vacancies within an existing community, or to upgrade (and turn around) an older community?  Each of these three stages of a community requires a different marketing plan, a different focus, different promotional strategies, and differing amounts of involvement.

Marketing has been the subject of many volumes of material, college courses, high school courses, and numerous articles in literally thousands of magazines. There are many facets of marketing for whatever business you try to promote.  It depends on the type of market you are in, the general state of the economy at the time you decide to start a promotion and marketing program, whether you are creating a demand or meeting a need, and several other variables.

Who are your Partners in Marketing?

Media Sources

• Motif
• Residents
• Employees
• Retailers
• Curb Appeal
• Vendors
• Personal Development
• Professionalism
• Industry Knowledge
• Civic Involvement

The Mental Picture of Marketing

Every minute of every day in every dealing you have with each person, you are promoting yourself, the company you represent, your community, and the industry as a whole.  Picture a diagram that consists of a huge wheel.  There is a hub in the very center. It is a small circle.  You are this hub.  Radiating outward from this hub are eleven spokes that then connect with a huge wheel on the outside.  Each of the eleven spokes is one of the areas of promotion we are going to discuss in this handbook.  The huge wheel on the outside is your market: the general public, the planning and zoning officials. 

In other words, this huge wheel is a never-ending stream of potential customers.  This huge wheel also makes up the members of the general public at large.  Everyone has an opinion.  On this huge wheel, everyone has an opinion about manufactured housing and manufactured home communities.  Part of a successful promotion and marketing program is to create more and more favorable opinions of the general public that is part of that huge wheel. 

When the one of the eleven spokes joins the wheel, a direct line of vision, understanding and agreement is created between the hub (you) and the wheel (your market).  Both ends of the spoke (you in the hub and the general public on the wheel) then see things the same way.  The conduit that enables this "coming together" of opinion is the spoke that links you in your hub with your potential customer on the huge wheel.  When this happens, you have successfully created a promotion (being noticed) that may result in effective marketing (a sale or lease).   The other positive side effect is usually the creation of a more favorable image of the manufactured housing industry as a whole.

When the public that is represented by the wheel is comprised of elected officials, your promotional efforts may result in positive zoning decisions or approval of expansion plans for a new community.  When that public represents your customer, you will have created a sale of a home or a lease of a homesite.  We need all kinds of people from this public arena on our side.

This illustration gives you a visual image of the way a successful promotion can take you where you have never been before - or leave you spinning around in circles.  You are in the center ring.  Take charge of your promotional efforts.  Create new markets.  Realize new growth opportunities.  Change the image of manufactured housing.  It all starts with you!

A successful promotion and marketing program will affect your staff, your community, your residents, their friends, their co-workers and families, the surrounding business community, and the industry as a whole in a positive way.  It will help change the perception of manufactured housing in the eyes of the uneducated public, the elected officials, and increase the number of homeowners.  Your successful promotion and marketing program will generate a continued bottom-line growth for your community and your company while providing housing that is perceived as a true value by your customers.

And, by the same token, an unsuccessful promotion and marketing program - or the total lack of one - can keep your community frozen in time.  It can perpetuate a negative image of the industry.  It will hamper your efforts in expansion, fill or upgrade.  It will prevent you from reaching the highest level of personal and professional excellence that is obtainable.  To be more blunt, the lack of a promotion and marketing program that does good means you, your community, and the industry will suffer.  It means that more people will neither believe nor share the positive messages the industry has to offer.

Key Concepts to a Successful Marketing Program 

• A successful promotion is a successful perception of value
• Every day is Open House
• Curb appeal is your job
• Use white classifieds
• Use reverse classifieds
• Create a comparison grid for your community
• Look at your community honestly - through the eyes of a video
• Enforce your Guidelines for better curb appeal
• Remember that word-of-mouth is your best advertising
• Utilize business cards in new and creative ways
• Everyone forms an opinion and every opinion matters
• We are no better than others perceive us to be
• Help retailers understand the values of your community
• Allow them to use the amenities
• Invite them to activities
• Offer a special tour for new salespeople
• Allow them to install model homes
• Hang a lifestyle picture in their sales office
• Visit on a regular basis
• Use custom labels for bags of donuts or candy
• Color code a map with vacant sites and sizes of homes
• Send gift certificates to a salesman's spouse
• Call to thank them for sending prospects
• Consider using resident referrals
• Free rent
• Certificates for dinner
• Mention in the newsletter
• Create a win-win promotion
• Give a shed, plants, gift certificate from nursery, deck, patio furniture, lawn mower, lawn care for six months, snow removal for a season, sod for the lawn, reduced water bill for watering
• Take brochures to area businesses
• Join the chamber of commerce and volunteer on committees

Answer. The hazard tree legislation is relatively new; it was passed by the Oregon Legislature in 2013. Here is a summary:

1. Definitions.

• "DBH" means the diameter at breast height, which is measured as the width of a standing tree at four and one-half feet above the ground on the uphill side.

• "Hazard tree" means a tree that:
  • Is located on a rented space in a manufactured dwelling park;
  • Measures at least eight inches DBH; and
  • Is considered, by an arborist licensed as a landscape construction professional pursuant to ORS 671.560 and certified by the International Society of Arboriculture, to pose an unreasonable risk of causing serious physical harm or damage to individuals or property in the near future.

1. Habitability. A rented space is considered uninhabitable if the landlord does not maintain a hazard tree required by the 2013 Act.

1. Resident Duties re Trees Located on Space. A resident shall maintain and water trees, including cleanup and removal of fallen branches and leaves, on the rented space for a manufactured dwelling except for hazard trees.

• "Maintaining a tree" means removing or trimming a tree for the purpose of eliminating features of the tree that cause the tree to be hazardous, or that may cause the tree to become hazardous in the near future.
• "Removing a tree" includes:
  • Felling and removing the tree; and
  • Grinding or removing the stump of the tree.

4. Landlord Duties re Hazard Trees.

• Landlord shall maintain a hazard tree that was not planted by the current resident if the landlord knows or should know that the tree is a hazard tree;
• Landlord may maintain a tree on the rented space to prevent the tree from becoming a hazard tree;
  • Landlord must provide residents with reasonable written notice and reasonable opportunity to maintain the tree themselves.
• Landlord has discretion to decide whether the appropriate maintenance of a hazard tree is removal or trimming.
• Landlord is not responsible for:
  • Maintaining a tree that is not a hazard tree; or
  • Maintaining any tree for aesthetic purposes.
• A landlord must comply with the access provisions of ORS 90.725 before entering a resident's space to inspect or maintain a tree. [Generally, 24-hour notice. - PCQ]
• Subject to the preceding, a resident is responsible for maintaining the non-hazard trees on the resident's space at the resident's expense.
  • The resident may retain an arborist licensed as a landscape construction professional pursuant to ORS 671.560 and certified by the International Society of Arboriculture to inspect a tree on the resident's space at the resident's expense;
  • If the arborist determines that the tree is a hazard, the resident may:
    • Require the landlord to maintain the tree as a hazard tree; or
    • Maintain the tree at the resident's expense, after providing the landlord with reasonable written notice of the proposed maintenance and a copy of the arborist's report.

1. Tree Obstructing Removal of Home From Space. If a manufactured home cannot be removed from a space without first removing or trimming a tree on the space, the owner of the home may remove or trim the tree at the owner's expense, after giving reasonable written notice to the landlord, for the purpose of removing the home.

1. Use of Landscape Professional. The landlord or resident that is responsible for maintaining a tree must engage a landscape construction professional with a valid landscape license issued pursuant to ORS 671.560 to maintain any tree with a DBH of eight inches or more.

1. Access to Resident's Space [ORS 90.725].

• An "emergency" includes but is not limited to:
  • A repair problem that, unless remedied immediately, is likely to cause serious physical harm or damage to individuals or property;
  • The presence of a hazard tree on a rented space in a manufactured dwelling park.
• An "unreasonable time" refers to a time of day, day of the week or particular time that conflicts with the resident's reasonable and specific plans to use the space.
• "Yard maintenance, equipment servicing or grounds keeping" includes, but is not limited to, servicing individual septic tank systems or water pumps, weeding, mowing grass and pruning trees and shrubs.
• A landlord or a landlord's agent may enter onto a rented space to:
  • Inspect or maintain trees;
  • A landlord or the landlord's agent may enter a rented space solely to inspect a tree despite a denial of consent by the resident if the landlord or the landlord's agent has given at least 24 hours' actual notice of the intent to enter to inspect the tree and the entry occurs at a reasonable time.
  • If a landlord has a report from an arborist licensed as a landscape construction professional pursuant to ORS 671.560 and certified by the International Society of Arboriculture that a tree on the rented space is a hazard tree that must be maintained by the landlord under this Act, the landlord is not liable for any damage or injury as a result of the hazard tree if the landlord is unable to gain entry after making a good faith effort to do so.
• If the resident refuses to allow lawful access, the landlord may obtain injunctive relief to compel access or may terminate the rental agreement pursuant to ORS 90.630 (1) and take possession in accordance with the Oregon eviction statutes. In addition, the landlord may recover actual damages.

8.Statement of Policy. It shall include the facility policy regarding the planting of trees on the resident's rented space. [See ORS 90.510]

Discussion. As you can see from the above, the definition of a hazard tree relates to whether it poses an unreasonable risk of serious physical harm or damage to individuals or property in the near future. The size of the tree alone, i.e. exceeding eight inches or more DBH, does not, in itself, make it a hazard tree; there must be potential for injury or damage in the near future.

Secondly, you will note that the hazard tree statutes make no distinction as to what part of the tree causes damage or injury. Although I had some involvement, along with John Van Landingham and others, in the creation of the legislation, speaking for myself, I was focused on the tree or branches falling on a home or resident. I was not thinking about damage from root systems.

Third, a landlord's removal obligation for hazard trees speaks to felling and removing them, and removing or grinding the stumps. Again, speaking only for myself, I was not thinking about tree roots that might remain after the stump is removed. (As a layperson, I think of the stump as the unremoved portion of the downed tree, and that portion below ground necessary to return the ground to its original level, sans the tree. But I certainly didn't focus on requiring that landlords remove root systems.

All of this is to say that my reading of the hazard tree statutes seems to make no distinction between damage above or below ground. Moreover, I suspect we would agree that damage to the foundation of a resident's home, could fall within the definition of what constitutes a hazard tree.

Remember that pursuant to ORS 90.730(4), the failure to maintain a hazard tree can constitute a habitability violation for which a tenant could bring a claim against their landlord.

Conclusion. Unfortunately, it appears to me that absent some language in the hazard tree statutes indicating an intent to exclude that portion of a tree below ground, i.e. its root system, a case could be made that remediating the damage caused by a hazard tree to a resident's home, or the cost to relevel it, is on your shoulders.

This does not mean, however, that the root systems of all felled hazard trees need to be removed. Once the tree is downed, and the trunk removed, the root system will not (as I understand it[1]) continue to grow. That being the case, if the roots are not posing a danger to a resident's space or the common area, there should be little reason to remove it.

The take-away here, is that landlords should be proactive in assessing hazard tree issues. This may include inspection of resident spaces. And when evaluating risk, landlords should look down, as well as up.

One interesting question, which I will not opine on here, is what a landlord should do about an otherwise healthy tree that is least eight inches DBH, if its root system poses, or could pose, a risk of damage to a resident's home. Must the tree be removed now?

[1] I suspect the major exception is bamboo trees, whose root systems seem to have a zombie-like life of their own.

The Justice Department announced today that Thomas Mere, the owner and operator of Mere's Mobile Home and Recreational Vehicle Park in North Fort Myers, Florida, has agreed to pay $40,000 to resolve allegations that he discriminated against African Americans in violation of the Fair Housing Act.  The settlement, which is in the form of a consent order, must still be approved by the U.S. District Court for the Middle District of Florida.

The government's complaint, also filed today, alleges that the defendant falsely told African Americans that no mobile homes, recreational vehicles or recreational vehicle lots were immediately available for rent, but told similarly-situated white persons that they were, in fact, available for rent.  According to the complaint, the defendant encouraged prospective white renters to consider residing at Mere's Park and discouraged African Americans from residing there by, for example, referring African Americans to another mobile home and RV park, making discouraging comments about units that were available for rent and failing to provide African Americans complete and accurate information about available units and lots.  The lawsuit is based on the results of testing conducted by the department's Fair Housing Testing Program, in which individuals pose as renters to gather information about possible discriminatory practices. 

Owners of rental properties cannot pick and choose residents based on race or color

Wells Fargo has released the 13th Edition of its Manufactured Home Community Financing Handbook created by Tony Petosa (tpetosa@wellsfargo.com), Nick Bertino (nick.bertino@wellsfargo.com), and Erik Edwards (erik.edwards@wellsfargo.com) of Wells Fargo Multifamily Capital.  The latest edition of the financing handbook (attached above) features a new section on Fannie Mae and Freddie Mac's Duty to Serve plans specific to the manufactured housing sector.

For more information about financing for Manufactured Home Communities and Apartments, contact:

Tony Petosa

Nick Bertino

Erik Edwards

(760) 438-2153

(760) 438-2692

(760) 918-2875

tpetosa@wellsfargo.com

nick.bertino@wellsfargo.com

erik.edwards@wellsfargo.com

The Oregon Building Codes Division (BCD) will launch a new online Manufactured Home Ownership Document System (called MHODS") on Wednesday

Wells Fargo has released the 13th Edition of its Manufactured Home Community Financing Handbook created by Tony Petosa (tpetosa@wellsfargo.com), Nick Bertino (nick.bertino@wellsfargo.com), and Erik Edwards (erik.edwards@wellsfargo.com) of Wells Fargo Multifamily Capital.  The latest edition of the financing handbook (attached above) features a new section on Fannie Mae and Freddie Mac's Duty to Serve plans specific to the manufactured housing sector.

Hard copies of the handbook will be available at the 2019 MHI Congress & Expo (5/6/18-5/8/18) in New Orleans.  Come visit us at booth 137!

For more information about financing for Manufactured Home Communities and Apartments, contact:

Tony Petosa

Nick Bertino

Erik Edwards

(760) 438-2153

(760) 438-2692

(760) 918-2875

tpetosa@wellsfargo.com

nick.bertino@wellsfargo.com

erik.edwards@wellsfargo.com

Consignments. First, it gave a name to the process; consignment". It is defined as follows: "...an agreement in which a tenant authorizes a landlord[2]to sell a manufactured dwelling or floating home on behalf of the tenant who owns the dwelling or home in a facility that is owned by the landlord and for which the landlord receives compensation."

The owners and managers of a single-family rental home in Idaho recently agreed to pay $15,000 to settle allegations that they violated fair housing law by refusing to rent the large home to a married couple because they have more than four children.

The federal Fair Housing Act makes it unlawful to deny or limit housing because a family has children under the age of 18, make statements that discriminate against families with children, and impose different rules, restrictions, or policies on them.

The settlement resolves a HUD charge, alleging that the homeowners discriminated against a family attempting to lease their 2,600 square foot, four-bedroom rental home because they have seven minor children. Specifically, HUD’s charge alleges that when the couple met with the property manager about renting the home, he told them that the owners had set a limit of four children for the home. The charge also alleges a policy restricting the number of children was written in the rental contract.

“Persons attempting to provide a home for their family should not have their housing options limited because they have children,” Anna María Farías, HUD’s Assistant Secretary for Fair Housing and Equal Opportunity, said in a statement. “Today’s action will hopefully serve as a reminder to all housing providers of the importance of meeting their obligations to comply with the requirements of the Fair Housing Act.”

Answer. This is a good question, but one that requires an understanding of several different issues.

You will notice that Form 47 for maintenance and clean up does not attempt to terminate the tenancy. It is merely a notice, or reminder. You may issue it as frequently as necessary, and even though you are aware of the default, you may continue to accept rent without it constituting a waiver to later issue a curable 30-day notice of termination for the same non-compliance.

Oregon landlord-tenant law expressly allows a landlord to accept rent after becoming aware of certain violations. See, ORS 90.412(4)(d). In summary, they include:

1. Disrepair or deterioration of the manufactured dwelling; and
2. A failure to maintain the rented space.

And ORS 90.412(5)(a) provides that for "ongoing violations" (e.g. failure to maintain the space or failure to repair the home), a landlord's written warning notice (e.g. Form 47), remains effective for 12 months and may be renewed with a new warning notice before the end of the 12 months. This has the effect of preserving the landlord's right to take action at some time in the future, while accepting rent during the interim. Thus, Form 47 is a less aggressive version of a 30-day notice of termination of tenancy under ORS 90.630 (for space maintenance issues), or ORS 90.632 (for repairs to the exterior of the home).

To reiterate: If the violation relates to the space, and the resident has consistently refused to clean it up, Form No. 47 is appropriate. The resident must do so within 30 days, or the tenancy will automatically terminate; if the violation relates to the home, and the resident has refused to perform the necessary repair, Form No. 55 is appropriate. This form is similar to the 30-day notice for space maintenance, but provides additional time for compliance depending on the nature of the repair, e.g. painting, which may not be feasible during the winter months.

When is Form 47 appropriate? In almost all instances when the violation is not something you want to immediately terminate the tenancy for, this is the better choice. If it becomes necessary to issue a curable 30-day notice of termination under ORS 90.630 for a failure to maintain the space (MHCO Form 43), or a curable 30-day notice of termination for damage or deterioration to the home (MHCO From 55) under ORS 90.632, you want to have one or more (preferably more) MHCO Form 47s in the resident's file, so it shows that you tried to work with the resident but they ignored you.

Remember, judges don't like terminating tenancies in manufactured housing communities, as it essentially forces the homeowner to vacate and sell their home (since the cost or ability to relocate it may be problematic based upon a lack of financial resources or the home's age).

Also, when the resident is elderly and on a fixed income, most landlords and managers would prefer not to terminate his or her tenancy based upon, say, the condition of the home, preferring instead to wait until it is sold or inherited by a family member.

Lastly, think of it this way: Once you issue a 30-day notice to terminate a tenancy, what are you going to do if the resident ignores you? You really have no choice but to proceed with eviction. And until you do so, you cannot accept rent from the tenant beyond the last day of the termination period. So when issuing a 30-day notice of termination, you are drawing a line in the sand, and your options become more limited. Again, would you not rather be in court on a notice of termination after having given the tenant three form 47s that were ignored? That way the judge knows that you tried to work with the resident, and that he or she brought the termination upon themselves.

The Manufactured Housing Landlord Tenant Coalition met earlier this week to continue negotiations on a variety of issues.  Here is a summary of what is moving, what is not and what still needs to be discussed as we prepare for the 2015 Oregon Legislative Session.

Abandoned Manufactured Home and Back Taxes

The coalition further discussed the abandoned home back tax" issue that MHCO negotiated with the Oregon Tax Assessors earlier last month.  The Oregon Department of Revenue expressed concerns about the agreement specifically as it impacts tax revenue from the Oregon Senior Deferral program.  The Oregon Department of Revenue typically has liens on 40 abandoned homes a year.  Moving forward the coalition will need to identify back taxes that are owed to the State of Oregon and back taxes owed to Oregon Counties.  We hope to have proposed language addressing this issue ready next month. 

One additional concern expressed by a MHCO Board Member was clarification of when the community owner acquires the title of the abandoned home.  Community owners will be reluctant to make the necessary improvements in an abandoned home if there is any question regarding the transfer of title.  The general consensus is that this needs to happen early in the process and be defined in statute.

Overall we are pleased that all parties remain committed to eliminating the community owner's responsibility to pay back taxes on an abandoned home. 

Changes to Annual Special Assessment on Park Residents and Community Registration Fee

As we have mentioned in earlier Legislative Updates